S. 2262, Shaheen-Portman Bill 2014: Energy
Savings and Industrial Competitiveness Act
Fred Sissine
Specialist in Energy Policy
May 8, 2014
Congressional Research Service
7-5700
www.crs.gov
R43524
S. 2262, Shaheen-Portman Bill 2014: Energy Savings and Industrial Competitiveness Act
Summary
S. 2262 has four energy efficiency titles, which address buildings, industry, federal agencies, and
certain regulatory measures. Title V would provide a budgetary offset for bill authorizations. The
bill was derived directly from S. 1392, often referred to as the Shaheen-Portman bill of 2013.
During the first session, floor action on S. 1392 was halted by a push for votes on controversial
non-energy amendments. Many energy amendments were also prepared for S. 1392, but floor
action stopped before formal consideration.
In the second session, anticipating the potential for further procedural battles, bill sponsors sought
to expand the S. 1392 framework. The aim of expanding the bill was to secure enough additional
votes to address the potential for a filibuster by ensuring sufficient votes for cloture on debate.
The expanded bill was introduced as S. 2074. It contains all the core provisions of S. 1392, and
the text of 10 bipartisan amendments that had been proposed for S. 1392 in floor action during
2013. The text of S. 2262 is identical to that of S. 2074, except that the amount of budget offsets
in section 501 was increased from $638 million to $720 million (for FY2014 through FY2018).
This report reviews the provisions of S. 2262, highlights the most controversial bill provision, and
identifies potential amendments to the bill.
The most controversial provision in S. 2262 is section 431. That section is an updated version of
S.Amdt. 1917 to S. 1392 (Hoeven-Manchin amendment). Section 431 would repeal an existing
requirement to eliminate fossil energy use in new federal buildings by 2030. DOE has found the
provision difficult to implement, and has not yet issued a rule to enforce it. In place of that
requirement, section 431 would tighten energy efficiency guidelines and building codes for new
federal buildings—but to a lesser degree. Supporters assert that the existing prohibition is
unworkable, citing DOE’s inability to implement it and the “more feasible” goals in section 431.
Opponents claim that the amendment would undermine federal leadership-by-example on net-
zero energy buildings and on the effort to reduce federal greenhouse gas emissions.
The American Council for an Energy-Efficient Economy (ACEEE), which has publicly stated
support for the bill, estimates an energy-saving potential of 1.8 quadrillion Btu (quads) by 2030,
with an associated cost-saving potential of $16.2 billion. S. 2262 was designed to be deficit
neutral. The Congressional Budget Office (CBO) estimates that it would provide a net decrease in
the federal budget deficit of $12 million over the period from FY2014 through FY2024.
Bill sponsors report that over 270 businesses, associations, and trade groups—from the National
Association of Manufacturers to the Chamber of Commerce—support S. 2262. The Obama
Administration expressed support for S. 1392, but it has not yet issued a Statement of
Administration Policy on S. 2262. In opposition to S. 2262, Heritage Action—an advocacy group
affiliated with the Heritage Foundation—argues that the incentives in the bill “would burden
taxpayers and consumers alike while producing no tangible benefits.”
A cloture vote brought S. 2262 up for Senate floor action on May 6, 2014. The bill sponsors—
together with leadership from both parties—are working to establish an agreement that would
limit the number and type of amendments that would be considered. Floor debate has been
focused on the potential for action on five energy-related amendments, covering the issues of
Keystone XL pipeline, liquefied natural gas (LNG) exports, power plant carbon capture
technology, social cost of carbon, and carbon tax. Action is scheduled to resume May 12, 2014.
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S. 2262, Shaheen-Portman Bill 2014: Energy Savings and Industrial Competitiveness Act
Contents
Background ...................................................................................................................................... 1
Action on S. 1392 ...................................................................................................................... 1
Action on S. 2074 ...................................................................................................................... 2
Action on H.R. 2126 .................................................................................................................. 2
S. 2262 Provisions ........................................................................................................................... 2
Overview ................................................................................................................................... 2
Tabular Summary ...................................................................................................................... 3
Most Controversial Bill Provision ................................................................................................... 7
Energy Savings Estimate ................................................................................................................. 7
CBO Cost Estimate .......................................................................................................................... 8
Support and Opposition ................................................................................................................... 8
Senate Floor Action ......................................................................................................................... 9
Floor Amendment Highlights ........................................................................................................ 10
Non-Energy Amendment: Affordable Care Act....................................................................... 10
Energy-Related Amendments .................................................................................................. 10
Keystone XL Pipeline ....................................................................................................... 10
Liquefied Natural Gas (LNG) Exports .............................................................................. 11
Power Plant Carbon Capture ............................................................................................. 11
Social Cost of Carbon ....................................................................................................... 12
Carbon Tax ........................................................................................................................ 12
Current Status .......................................................................................................................... 12
Tables
Table 1. S. 2262, Tabular Summary of Selected Provisions ............................................................ 4
Table 2. ACEEE Energy Savings Estimates for S. 2074 ................................................................. 7
Appendixes
Appendix. S. 2262 Detailed Provisions ......................................................................................... 13
Contacts
Author Contact Information........................................................................................................... 20
Congressional Research Service
S. 2262, Shaheen-Portman Bill 2014: Energy Savings and Industrial Competitiveness Act
Background
The first version of the Energy Savings and Industrial Competitiveness Act was introduced as S.
1000 in the 112th Congress. It had three energy efficiency titles, which addressed buildings,
industry, and federal agencies. Title IV provided a budgetary offset for bill authorizations. The
bill was reported by the Senate Committee on Energy and Natural Resources (SENR), but
received no further action. Early in the 113th Congress, S. 761 was introduced as a revised version
of S. 1000.1 S. 761 was then revised and introduced as S. 1392. Floor action on S. 1392 was
halted in September 2013.
Action on S. 1392
S. 1392—the Energy Savings and Industrial Competitiveness Act of 2013—was introduced on
July 30, 2013. Often referred to as the Shaheen-Portman bill 2013, it was a trimmed-down
version of S. 761 from the 112th Congress. It contained provisions for building energy codes,
industrial energy efficiency, federal agencies, and budget offsets. The bill contained voluntary
provisions and was designed to be deficit-neutral. Virtually all debate on the bill was focused on
floor amendments.
The bill was reported by the Senate Committee on Energy and Natural Resources (SENR) on a
19-3 vote. On August 1, 2013, a motion to proceed was introduced and amendments began to be
filed. On September 11, 2013, a unanimous consent agreement on the motion launched floor
action. By September 19, 2013, 125 amendments had been proposed. Of that total, 75 directly
addressed energy efficiency policy, 23 addressed “other” energy and carbon emissions policy
areas, and 27 addressed non-energy policy areas.
Amendments subject to controversy addressed five policy areas: fossil fuel use by federal
buildings, carbon emissions regulation, regional haze regulation, Keystone XL Pipeline, and the
Affordable Care Act (ACA, P.L. 111-148 as amended). Only the Keystone XL Pipeline
amendment and one ACA amendment were the subject of major floor debate on S. 1392.
• S.Amdt. 1908 on the Keystone XL Pipeline called for a Sense of Congress
resolution that would encourage the President to issue a permit needed to begin
construction. In floor debate, proponents argued that the project would create
thousands of jobs; generate tax revenues for federal, state, and local
governments; reduce dependence on oil imports from Venezuela; and gain an
“environmental advantage” from using high-tech refineries on the Gulf Coast.
Opponents contended that there would be fewer than 100 permanent jobs, most
of the oil would be exported, and there would be a “tangible risk” of a spill that
could have severe environmental impacts.2
• S.Amdt. 1866 would have amended Section 1312(d)(3)(D) of ACA and would
affect how Members of Congress, congressional staff, the President, the Vice
President, and many executive branch political appointees can obtain health
1 A House bill, H.R. 1616, was introduced as a companion to S. 761.
2 Further discussion of the Keystone XL pipeline issue is provided in CRS Report R41668, Keystone XL Pipeline
Project: Key Issues, by Paul W. Parfomak et al.
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S. 2262, Shaheen-Portman Bill 2014: Energy Savings and Industrial Competitiveness Act
insurance coverage through their federal employment.3 The sponsor of S.Amdt.
1866 requested a vote on the amendment and objected to further consideration of
other amendments, which blocked voting on all other amendments. Shortly after
floor debate began, the sponsor introduced a stand-alone bill (S. 1497) with
similar content and expressed a willingness to drop the objection, if a vote could
be “locked down” for S.Amdt. 1866—or if a vote on the proposal (S. 1497) could
be guaranteed for any other active legislation.
Despite a tentative agreement to take votes on S.Amdt. 1908 and S.Amdt. 1866, supporters of
non-energy amendments increased their requests to include four additional non-energy
amendments. The resulting impasse led to a suspension of action on September 19, 2013, with no
fixed date to resume action.
For more details on the legislative history of S. 1392, see CRS Report R43259, S. 1392, Shaheen-
Portman Bill: Energy Savings and Industrial Competitiveness Act of 2013, by Fred Sissine.
Action on S. 2074
The bill was introduced on February 27, 2014, and referred to the Senate Committee on Energy
and Natural Resources. As introduced, S. 2074 comprised all the core provisions of S. 1392, with
the addition of the text from 10 floor amendments proposed for S. 1392. Those amendments
added new sections to the bill and increased the number of bill titles from four to five.
Action on H.R. 2126
On March 5, 2014, the House passed H.R. 2126, the Energy Efficiency Improvement Act of 2014.
The bill has four provisions, which line up closely with Sections 133, 141, 303, and 421 of S.
2262.
S. 2262 Provisions
Overview
Introduced on April 28, 2014, the text of S. 2262 is identical to that of S. 2074, except that the
amount of budget offsets in section 501 was increased from $638 million to $720 million (for
FY2014 through FY2018). Table 1, below, provides an overview of the bill provisions.
S. 2262 includes core provisions from S. 1392,4 and the text of 10 proposed amendments to S.
1392 that were incorporated into S. 2074.5 The bill has five titles. Title I has six provisions that
address energy efficiency in buildings. Title II has five key sections that address energy efficiency
3 Further discussion of that amendment is beyond the scope of this report. For more information about S.Amdt. 1866,
contact Annie Mach, Analyst in Health Care Financing, Domestic Social Policy Division.
4 A detailed description of S. 1392 appears in CRS Report R43259, S. 1392, Shaheen-Portman Bill: Energy Savings
and Industrial Competitiveness Act of 2013, by Fred Sissine (Appendix A).
5 Updates to New Version of the Energy Savings and Industrial Competitiveness Act, released February 27, 2014.
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S. 2262, Shaheen-Portman Bill 2014: Energy Savings and Industrial Competitiveness Act
in industry. Title III would establish four provisions to improve energy efficiency at federal
agencies. Title IV would create seven provisions for federal agencies. Title V would provide a
budgetary offset for bill authorizations.
Tabular Summary
The following table summarizes the key provisions of S. 2262. The Appendix provides a more
detailed list of provisions in the bill.
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Table 1. S. 2262, Tabular Summary of Selected Provisions
(Core = Provisions of S. 1392; Others = Amendments Proposed to S. 1392)
S. 2262 Organization
Source of Provision
Provision Description
Title I: Buildings
Subtitle A: Building Energy Codes
Core
§101. Greater energy efficiency in building codes. Directs the Department of Energy (DOE) to update
its model building energy codes for residential and commercial buildings, in order to meet new targets
for aggregate energy savings. States, American Indian Tribes, and local governments would be
encouraged to adopt the new energy codes, and DOE would be directed to ensure compliance in
jurisdictions that adopt the codes.
Subtitle B: Worker Training and
Core
§111. Building training and assessment centers. Requires DOE to create a grant program that
Capacity Building
establishes building training and assessment centers at colleges and universities, to promote programs
to expand building energy and environmental performance.
Core
§112. Career skills training. DOE would be required to make grants to eligible nonprofit partnerships to
pay the federal share of career skills training programs that help students become certified to install
energy efficient building technologies.
Subtitle C: School Buildings
Col ins-M. Udal (1912)
§121. Coordination of energy retrofitting assistance for schools. DOE would coordinate and provide
technical assistance to support efficiency retrofits and renewable energy installations in schools.
Subtitle D: Better Buildings
Bennet-Ayotte (1847)
§131. Energy efficiency in federal and other buildings. Directs the General Services Administration
(GSA) to prepare federal leasing provisions that encourage cost-effective energy efficiency measures.
§132. Separate spaces with high-performance energy-efficiency measures. Requires EERE to study the
feasibility of improving the energy efficiency of the design for new add-on (renovation) spaces that are
part of commercial buildings.
§133. Tenant star program. A voluntary certification and recognition program would be created as part
of the Energy Star program, to recognize tenants in leased commercial buildings that achieve high levels
of energy efficiency.
Subtitle E: Energy Information for
Franken (1855)
§141. Energy information for commercial buildings. Establishes “benchmarking” for federal y leased
Commercial Buildings
buildings. Requires federally leased buildings to compare energy usage data with a baseline, where
practical. Authorizes a grant program of $2.5 million per year for 5 years for utilities, regulators, and
utility partners to implement benchmarking and data disclosure for multi-tenant buildings.
CRS-4
S. 2262 Organization
Source of Provision
Provision Description
Title II: Industrial Efficiency and Competitiveness
Subtitle A: Manufacturing Energy
Core
§202. Future of industry coordination. Would reestablish and expand DOE’s industrial materials
Efficiency
program to set sustainable manufacturing goals, improve coordination of Industrial Research and
Assessment Centers (IRACs) with other federal programs, fund outreach to IRACs, and require the
Administrator of the Small Business Administration (SBA) to expedite loans recommended by IRACs.
Core
§203. Sustainable manufacturing initiative. Directs EERE to perform industrial process energy efficiency
assessments for manufacturers and conduct an industry-government partnership program on new
sustainable manufacturing and industrial technologies and processes.
Subtitle B: Supply Star
Core (edited)
§211. Supply star. A “Supply Star” program would be established within EERE to incentivize private
sector practices and products that use highly energy- and resource-efficient supply chains. The provision
from S. 1392 was revised to remove a prohibition against using climate change as a factor in certifying
businesses as having an efficient supply chain.
Subtitle C: Electric Motor Rebate
Core
§221. Electric motor rebate program. Directs DOE to create a rebate program for purchases of electric
Program
motors that cut energy use by at least 5%. Authorizes $5 million per year for two years.
Subtitle D: Transformer Rebate
Core
§231. Electric power transformer rebate program. Directs DOE to create a rebate program for energy-
Program
efficient electricity transformers purchased by owners of industrial facilities, commercial buildings, and
multifamily buildings. Authorizes $5 million per year for two years.
Title III: Federal Agency Energy Efficiency
Core
§301. Energy-efficient information technology. Requires DOE to issue guidance for federal agencies to
improve energy efficiency through the use of information and communications technologies.
§302. GSA project design updates. General Services Administration (GSA) would be authorized to use
Core
appropriated funds to update a building’s design to meet energy efficiency and other resource standards
for new federal buildings.
M. Udal -Risch (1933)
§303. Energy-efficient data centers. Similar to H.R. 540 (Eshoo-Rogers), requires OMB to col aborate
with federal agencies to promote energy-efficiency in data centers and other information technologies.
OMB would be required to track and report on each agency’s progress.
Whitehouse-Collins (1852)
§304. Demonstration program for HUD multifamily housing. Establishes a demonstration program at
HUD using energy savings contracts to perform efficiency retrofits on low-income housing.
CRS-5
S. 2262 Organization
Source of Provision
Provision Description
Title IV: Regulatory Provisions
Subtitle A: Third-party Certification
Landrieu-Wicker (1885)
§401. Third-party certification under Energy Star program. Requires the Environmental Protection
for Energy Star
Agency (EPA) and DOE to issue rules that third-party testing of energy efficiency for electronic
products shal not be required for Energy Star program partners that have complied with Energy Star
regulations for at least 18 months.
Subtitle B: Federal Green Buildings
Landrieu-Wicker-Pryor
§411. High-performance green federal buildings. Directs DOE to review green building certification
(1886)
systems to encourage the use of the most comprehensive and environmentally sound approach.
Subtitle C: Water Heaters
Hoeven-Pryor (1916)
§421. Grid-enabled water heaters. Creates an exemption for thermal storage water heaters under the
efficiency standards scheduled to go into effect in April 2015, so that large grid-enabled electric-
resistance water heaters can continue to be manufactured for use only in demand response programs.
Subtitle D: Energy Performance
Hoeven-Manchin (1917)
§431. Energy performance requirements for federal buildings. Repeals federal building fossil energy
Requirement for Federal Buildings
elimination requirement and modifies other energy-savings targets. This is an updated version of the
Hoeven-Manchin amendment.
§432. Sets revised federal building energy efficiency performance standards. Expands the scope of
existing energy efficiency standards for new federal buildings to cover major renovations.
Isakson-Bennet (1844)
§433. Enhanced energy efficiency underwriting. Directs the Department of Housing and Urban
Development (HUD) to update underwriting and appraisal guidelines to require that all home
mortgages issued, insured, purchased, or securitized by a federal agency account for energy efficiency in
the mortgage appraisal/underwriting process.
Subtitle E: Third Party Testing
Sessions-Pryor (1879)
§441. Voluntary certification programs for certain energy-using products. Requires DOE to recognize
voluntary, independent certification programs for heating, air conditioning equipment and water heating
products that meet specific qualifications.
Title V: Miscellaneous
Core (revised)
§501. Funding authorization offset. Would reduce the authorization for the Zero Net Energy
Commercial Buildings Initiative set by the Energy Independence and Security Act of 2007 (EISA, §422).
Offset increased to $720 million for FY2014 through FY2018, compared with $638 million in in S. 2074
(§501).
Source: S. 2074, S. 1392, and fact sheet summaries.
CRS-6
S. 2262, Shaheen-Portman Bill 2014: Energy Savings and Industrial Competitiveness Act
Most Controversial Bill Provision
So far, only one provision of S. 2262 has been a major focus of controversy. Section 431 would
repeal section 433 of the Energy Independence and Security Act of 2007 (EISA, P.L. 110-140).6
The EISA provision set a timetable to cut fossil energy use in new federal buildings (and major
federal building renovations)—with a target to eliminate fossil energy use in new buildings by
2030. The provision has proven difficult to implement, and DOE has not yet issued a rule to
enforce it. Section 431 would also modify other EISA requirements. First, the existing EISA goal
for a 36% federal energy reduction by 2015 (relative to the 2003 level) would be pushed back to
2017. Also, section 431 would direct DOE to review the results of the requirements to date and
analyze the feasibility and cost-effectiveness of further postponing energy savings targets. Section
431 would still tighten some energy efficiency guidelines and building codes for new federal
buildings.
The environmental and energy efficiency communities have split on this provision, with some in
support and some in opposition. Supporters of Section 431 claim that the existing prohibition is
unworkable, citing DOE’s inability to develop a regulation to implement the law. Opponents to
Section 431 say that the amendment would undermine federal leadership-by-example on net-zero
energy buildings and on the effort to reduce federal greenhouse gas emissions.
Energy Savings Estimate
The American Council for an Energy-Efficient Economy (ACEEE), which has publicly stated
support for the bill, used a bottom-up analysis to estimate the energy-saving potential for each
provision of S. 2074.7 Combining those estimates yielded a total estimate for the whole bill. Then,
a 5% real discount rate was applied to estimate the present value of potential energy cost savings.
ACEEE’s projections are summarized in Table 2.
Table 2. ACEEE Energy Savings Estimates for S. 2074
(al relevant provisions are identical to those of S. 2262)
Net Annual Energy
Net Annual Energy
Savings
Cost Savings
Projection Year
(in Quadrillion Btu,Q)
($ billions)
Net Jobs Created
2020 0.4 $
2.6
77,000
2030 1.8 $
16.2
192,000
Source: ACEEE, Savings and Jobs in the Shaheen-Portman Bill 2014, February 27, 2014, http://www.aceee.org/fact-
sheet/shaheen-portman.
Notes: Dol ar cost savings assume a real discount rate of 5%.
6 During the 2013 floor action on S. 1392, a previous version of this provision was referred to as the Hoeven-Manchin
amendment (S.Amdt. 1917). For more about the amendment, see CRS Report R43259, S. 1392, Shaheen-Portman Bill:
Energy Savings and Industrial Competitiveness Act of 2013, by Fred Sissine.
7 As mentioned previously, the provisions of S. 2262 are identical to those of S. 2074, with the exception of the budget
authorization offset in section 501.
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CBO Cost Estimate
The Congressional Budget Office (CBO) estimates that S. 2262 would provide a net decrease in
the deficit of $12 million over the period from FY2014 through FY2024.8 In deriving this
estimate, CBO noted that some parts of the bill would increase direct spending by requiring
Fannie Mae and Freddie Mac to revise certain standards related to underwriting mortgages.9
However, other parts of the bill would reduce direct spending by modifying existing requirements
to reduce consumption of energy generated from fossil fuels at certain federal buildings.10
Support and Opposition11
Bill sponsors report that over 270 businesses, associations, and trade groups—from the National
Association of Manufacturers to the Chamber of Commerce—support S. 2262.12 During the 2013
debate, the bill sponsors of S. 1392 cited support from 260 business, environmental, and other
organizations.13 Business supporters included the U.S. Chamber of Commerce, Business
Roundtable, and the National Association of Manufacturers. Environmental and energy
supporters included the Sierra Club, Natural Resources Defense Council (NRDC), Alliance to
Save Energy, and American Council for an Energy-Efficient Economy (ACEEE). Other
organizations in support included the Christian Coalition.
The Obama Administration has not yet issued a Statement of Administration Policy on S. 2262.
However, it did issue one for S. 1392, which expressed support for that bill. The Statement noted
that S. 1392 would: (1) complement key energy efficiency dimensions of the President’s Climate
Action Plan; (2) support the President’s goal to cut in half the energy wasted by U.S. homes and
businesses by 2030; and (3) support the Administration’s efforts to strengthen U.S.
competitiveness through research and development investments in manufacturing innovation and
productivity, such as the Department of Energy’s (DOE’s) Clean Energy Manufacturing
Initiative.14
In opposition to S. 2262, Heritage Action—an advocacy group affiliated with the Heritage
Foundation—argues that the incentives in the bill
...would burden taxpayers and consumers alike while producing no tangible benefits. They
are also duplicative of federal and state efforts... Heritage15 explains that since the efficiency
8 CBO, CBO Estimate of the Statutory Pay-As-You-Go Effects for S. 2262, the Energy Savings and Industrial
Competitiveness Act of 2014, as introduced on April 28, 2014, May 1, 2014. http://www.cbo.gov/sites/default/files/
cbofiles/attachments/s2262paygo.pdf.
9 This is apparently a reference to the provisions of section 433.
10 This is apparently a reference to the provisions of section 431.
11 This section was prepared in October 2013 to describe support and opposition to S. 1392. No changes of positions
have been noted since the introduction of S. 2074.
12 “ESIC: The First Step Toward A Comprehensive Energy Strategy,” Forbes Magazine, May 2, 2014,
http://www.forbes.com/sites/robportman/2014/05/02/esic-the-first-step-toward-a-comprehensive-energy-strategy/.
13 Statement of Senator Portman, Congressional Record, September 11, 2013, p. S6355.
14 The White House, Statement of Administration Policy on S. 1392, September 11, 2013 http://www.whitehouse.gov/
sites/default/files/omb/legislative/sap/113/saps1392s_20130911.pdf.
15 The citation to “Heritage” is apparently refers to a document published online by the Heritage Foundation at
(continued...)
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gains do not have market value (or industries would already have adopted them), “the
government must artificially create both the demand and the supply.”16
Further, Heritage Action concluded that
As Heritage notes, only the free-market has been proven to decrease costs and increase
efficiency in energy production. The federal government’s role in energy efficiency should
be limited to providing information to [help] consumers make well-informed decisions. This
legislation allows the government to overstep its boundaries.17
Heritage Action also came out strongly against S. 1392 during floor action in 2013.18
Senate Floor Action
S. 2262 was introduced on April 28, 2014. On May 1, 2014, the Majority Leader filed a motion to
limit debate (invoke cloture) on the motion to proceed to S. 2262.19 The motion to proceed was
approved (79-20) on May 6, 2014. Floor debate continued through May 7, 2014, and was then
suspended until May 12, 2014.
Prior to floor action, press reports indicated that one non-energy amendment on the Affordable
Care Act and at least five energy-related amendments could possibly be offered.20 Included
among those five potential energy-related amendments were proposals to: (1) approve the
Keystone XL pipeline, (2) facilitate approval of liquefied natural gas (LNG) exports, (3) prohibit
EPA from requiring carbon capture technology on coal-fired power plants, (4) reduce the value of
the social cost of carbon, and (5) prevent the establishment of a carbon tax.
As of May 7, 2014, a total of 71 amendments to S. 2262 had been introduced.21 The amendments
span a broad range of energy and environmental issues. Some address the energy topics noted
above.
During debate over the bill, the Majority Leader emphasized a willingness to hold a separate vote
on the Keystone XL pipeline—but only after floor action was completed on S. 2262. The
(...continued)
http://blog.heritage.org/2014/05/02/congress-voting-efficiency-legislation-next-week-heres-bad-news/print/.
16 Heritage Action, “No” on the Shaheen-Portman Energy Efficiency Bill, May 2, 2014, http://heritageaction.com/key-
votes/shaheen-portman-energy-efficiency-bill/.
17 Heritage Action, “No”on the Shaheen-Portman Energy Efficiency Bill, May 2, 2014, http://heritageaction.com/key-
votes/shaheen-portman-energy-efficiency-bill/.
18 For details of its statement in opposition to S. 1392, see CRS Report R43259, S. 1392, Shaheen-Portman Bill:
Energy Savings and Industrial Competitiveness Act of 2013, by Fred Sissine.
19 Motion to Proceed to S. 2262, Congressional Record, pp. S2571, S2591, and S2603, May 1, 2014,
http://beta.congress.gov/crec/2014/05/01/CREC-2014-05-01-senate.pdf. Also see “Reid Sets Up Test Vote on Energy
Bill,” CQ News, May 1, 2014. http://www.cq.com/alertmatch/213183302?5&uid=news-4468189.
20 “Amendment Tussle Overwhelms Energy Efficiency Bill,” CQ News, May 1, 2014, http://www.cq.com/alertmatch/
213176187?3&uid=news-4468141.
21 The text of the amendments appears in three issues of the Congressional Record. The May 5, 2014, issue covers
amendments 2974 through 2984 (pp. S2650-S2676). The May 6, 2014, issue covers amendments 2985 through 3009
(pp. S2722-S2739). The May 7, 2014, issue covers amendments 3010 through 3043 (pp. S2799-S2823).
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Minority Leader noted that the possibility of an amendment to the Affordable Care Act had been
dropped and stressed an interest in having four or five votes on energy-related amendments.22
Floor Amendment Highlights
Some see the anticipated floor action on the energy efficiency provisions of S. 2262 as an
opportunity to create a broader energy debate.
Non-Energy Amendment: Affordable Care Act
One Senator has indicated the intent to again23 offer an amendment that would modify the
Affordable Care Act provision for Members of Congress and congressional staff and top level
officials and staff of the Executive Branch.24 Such a request could lead to a replay of a similar
amendment that halted action on S. 1392. A detailed description of that topic is beyond the scope
of this report.25 A press report indicates that, on May 1, 2014, that Senator indicated that he would
temporarily sideline that effort in return for votes on five energy proposals, including a vote to
approve the Keystone XL pipeline.26 During floor action, however, the Minority Leader noted that
the possibility of an amendment to the Affordable Care Act had been dropped.27
Energy-Related Amendments
Senate party leaders and bill sponsors are working to negotiate an agreement to limit floor action
to no more than five amendments. Various press reports have suggested that the leading
contenders for those five spots may include Keystone XL pipeline, LNG exports, power plant
carbon capture requirement, social cost of carbon, and carbon tax.
Keystone XL Pipeline
S. 228028 was introduced on May 1, 2014, to establish legislative approval for the Keystone XL
pipeline.29 In the negotiation process, some have expressed preference that S. 2280 come to the
floor for a separate stand-alone vote—before action is taken on S. 2262.30 Others apparently
22 Congressional Record, May 7, 2014, p. S2744.
23 During floor action on S. 1392, S.Amdt. 1866 (Vitter) proposed to make a similar change to the Affordable Care Act.
24 Statement of Mr. Vitter, Congressional Record, pp. S2587-S2589, May 1, 2014, http://beta.congress.gov/crec/2014/
05/01/CREC-2014-05-01-senate.pdf. Also, see “Amendments for Efficiency Debate Piling Up Again,” CQ News, April
30, 2014.
25 For more information about this topic, contact Annie Mach, Analyst in Health Care Financing, Domestic Social
Policy Division.
26 “Reid Sets Up Test Vote on Energy Bill,” CQ News, May 1, 2014.
27 Congressional Record, May 7, 2014, p. S2744.
28 For more information about this bill, see CRS Insight IN10050, Congressional Proposals to Approve the Keystone
XL Pipeline, by Linda Luther.
29 During floor action on S. 1392, S.Amdt. 1908 (Hoeven) proposed to establish a Sense of the Senate provision in
support of the Keystone XL pipeline.
30 “U.S. Senators Push to Force Approval of Keystone Pipeline,” Reuters, May 1, 2014 http://www.reuters.com/article/
2014/05/01/us-usa-keystone-senate-idUSBREA400O320140501.
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prefer to offer S. 2280 as an amendment to S. 2262.31 A third view suggests that a vote on
Keystone XL may be taken after work is completed on S. 2262.32 For details about the debate
over the Keystone XL pipeline, see CRS Report R41668, Keystone XL Pipeline Project: Key
Issues, by Paul W. Parfomak et al.
During floor action, one amendment was offered that would set policy for the Keystone XL
pipeline: S.Amdt. 2991 (Hoeven).
Liquefied Natural Gas (LNG) Exports
One Senator has announced plans to introduce an amendment to S. 2262 that would require DOE
to approve liquefied natural gas exports (LNG) to all World Trade Organization member
countries, including Ukraine.33 The amendment would apply to pending and future applications to
export LNG. Additionally, press reports indicate that another Senator has announced plans to offer
an amendment that would accelerate LNG exports. That amendment would be based on the
provisions of H.R. 6.34
During floor action, three amendments were offered that would affect natural gas exports:
S.Amdt. 2981 (Barasso), S.Amdt. 3038 (M. Udall), and S.Amdt. 3040 (M. Udall).
Power Plant Carbon Capture
The Electricity Security and Affordability Act, S. 1905,35 aims to block the Environmental
Protection Agency’s (EPA’s) proposed rule that would effectively require new coal-fired power
plants to install carbon capture and sequestration technology—unless certain benchmarks are
met.36 A press report indicates that there is an effort underway to attach the bill as an amendment
to S. 2622.37 Further discussion of the details of S. 1905 is beyond the scope of this report.38
During floor action, one amendment was offered that would affect power plant carbon capture:
S.Amdt. 3013 (McConnell).39
31 “Reid Open to Vote on KXL Approval Alongside Shaheen-Portman As Talks Continue,” Environment and Energy
Daily, May 2, 2014, http://www.eenews.net/eedaily/stories/1059998878/print.
32 “WGDB: Hoeven Predicts Keystone Vote Even If Energy Efficiency Bill Falters,” CQ News, May 2, 2014,
http://www.cq.com/alertmatch/213279676?2&uid=news-4468944.
33 Office of Senator John Barrasso, Barrasso Plans to Introduce LNG Amendment to Shaheen-Portman, May 1, 2014,
http://www.barrasso.senate.gov/public/index.cfm?FuseAction=PressOffice.PressReleases&ContentRecord_id=
38f3dc25-a0ab-e669-5740-5fdd553264b5.
34 “Plot Thickens Ahead of Senate Energy Debate,” CQ News, May 1, 2014.
35 S. 1905 was introduced by Senator Manchin. An identical bill, Rep. Whitfield’s H.R. 3826, passed the House March
6, 2014. The section is sometimes referred to as the Whitfield-Manchin amendment.
36 During floor action on S. 1392, S.Amdt. 1958 (McConnell) would have prohibited federal regulation of carbon from
power plants.
37 “Plot Thickens Ahead of Senate Energy Debate,” CQ News, May 1, 2014.
38 For more information about S. 1905, contact Jim McCarthy, Specialist in Environmental Policy, Resources, Science,
and Industry Division.
39 Two other amendments—S.Amdt. 2996 (Thune) and S.Amdt. 3018 (Flake)—would set limits on regulation of power
plant greenhouse gas emissions by the Environmental Protection Agency (EPA).
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Social Cost of Carbon
The social cost of carbon is a quantitative measure used in cost-benefit analyses of climate
change policies and energy efficiency rules.40 One press report suggests that there is an effort to
craft an amendment to S. 2622 that would undo a recent increase in the value of the social cost of
carbon established by the Administration for use in rulemaking decisions.41 A related provision
was proposed for S. 1392.42
Carbon Tax
There is a continuing43 debate over the potential to establish a carbon tax as a key policy for
curbing emissions of carbon dioxide, the main greenhouse gas.44 One press report suggests that
there is an effort to devise an amendment that would establish a point of order to prevent
Congress from imposing a carbon tax.45
During floor action, two amendments were offered that would establish a policy involving a
carbon tax: S.Amdt. 2982 (McConnell) and S.Amdt. 2986 (Blunt).
Current Status
The bill sponsors—together with leadership from both parties—are working to establish an
agreement that would limit the number and type of amendments that would be considered for a
vote. Action is scheduled to resume on May 12, 2014.
40 In the floor debate over S. 1392, S.Amdt. 1854 would have prohibited the use of the social cost of carbon in
regulations and other venues.
41 “Reid Open to Vote on KXL Approval Alongside Shaheen-Portman As Talks Continue,” Environment and Energy
Daily, May 2, 2014, http://www.eenews.net/eedaily/stories/1059998878/print.
42 S.Amdt. 1854 (Barrasso) to S. 1392 proposed that DOE and other agencies be prohibited from considering the social
cost of carbon in regulations and other venues.
43 During floor debate over S. 1392, S.Amdt. 1853 (Barrasso) proposed to prohibit regulations and energy taxes as a
means to control carbon dioxide emissions and other greenhouse gases.
44 In the floor debate over S. 1392, S.Amdt. 1853 would have prohibited the establishment of energy taxes as a means
to control carbon/greenhouse gas emissions.
45 “Reid Open to Vote on KXL Approval Alongside Shaheen-Portman As Talks Continue,” Environment and Energy
Daily, May 2, 2014, http://www.eenews.net/eedaily/stories/1059998878/print.
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Appendix. S. 2262 Detailed Provisions46
Title I: Buildings
Subtitle A: Building Energy Codes
Section 101. Greater Energy Efficiency in Building Codes
Strengthens national model building codes for new homes and commercial buildings by requiring
the Department of Energy (DOE) to support their development, including the setting of energy
savings targets and providing of technical assistance to the code-setting and standard
development organizations.
DOE, in consultation with building science experts and institutions of higher learning, will
produce a report on the feasibility, impact, economics and value of code improvements.
Section 304 of the Energy Conservation and Policy Act (ECPA, P.L. 94-163) is amended to
change the State certification process so that within two years after model building codes are
updated, States are to certify whether or not they have updated their building codes, and
demonstrate if the building codes have met or exceeded energy savings targets.
The legislation reserves adoption and enforcement of model building codes to the states, but
empowers DOE to offer technical assistance.
Section 307 of ECPA is amended to direct DOE to support the updating of model building energy
codes by independent codes and standards developers, and to utilize the 2009 International
Energy Conservation Code (IECC) for residences and the ASHRAE 90.1-2010 for commercial
buildings as the baseline.
Authorizes $200 million in funding to incentivize and assist states to meet the goals and
requirements of the bill through the use of model codes.
Subtitle B: Worker Training and Capacity Building
Section 111. Building Training and Assessment Centers
Establishes a DOE program for university-based Building Training and Assessment Centers,
modeled after the existing Industrial Assessment Centers (IACs). Authorizes $10 million in
programmatic funding to train engineers, architects and workers in energy-efficient commercial
building design and operations.
46 From the Section-by-Section Summary of the Energy Savings and Industrial Competitiveness Act of 2014 (Shaheen-
Portman), released February 27, 2014.
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Section 112. Career Skills Training
Creates a DOE career skills program to provide grants to nonprofit partnerships for worker
training in for the construction and installation of energy-efficient building technologies.
Authorizes $10 million in funding to carry out this section, and establishes a 50 percent federal
cost share.
Subtitle C: School Buildings
Section 121. Coordination of Energy Retrofitting Assistance for Schools
Requires DOE’s Office of Energy Efficiency and Renewable Energy (EERE) to review all
relevant standing energy efficiency programs and financing mechanisms currently available to
schools by federal agencies, and to coordinate educational and outreach efforts to promote federal
opportunities for assistance to schools.
Authorizes EERE to provide technical assistance to states, local educational agencies, and schools
to help develop and finance energy efficiency projects. Requires EERE to cultivate and maintain
an online database for relevant technical assistance and support staff. Directs EERE to recognize
schools that successfully implement energy retrofit projects.
Subtitle D: Better Buildings
Section 131. Energy Efficiency in Federal and Other Buildings
Requires the Administrator of General Services (GSA) to develop and publish model leasing
provisions for use in federal leasing documents to encourage building owners and tenants to
invest in cost-effective energy efficiency measures.
Requires the GSA to develop policies and best practices to implement such measures for the
realty services provided by GSA to federal agencies, including periodic training of federal
employees and contractors, and to make such available to state, county, and municipal
governments that manage owned and leased building space.
Section 132. Separate Spaces with High-Performance Energy Efficiency Measures
Requires EERE to study the feasibility of significantly improving energy efficiency in
commercial buildings through the design and construction of separate spaces with high-
performance energy efficiency measures, and through encouraging owners and tenants to
implement such measures in separate spaces. Requires the Secretary to publish such study on
DOE’s website.
Section 133. Tenant Star Program
Requires EPA and DOE to develop a voluntary Tenant Star program within the ENERGY STAR
program to recognize tenants in commercial buildings that voluntarily achieve high levels of
energy efficiency in separate spaces.
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Requires DOE and the Energy Information Administration (EIA) to collect data on categories of
building occupancy that consume significant quantities of energy and on other aspects of the
property, building operation, or building occupancy determined to be relevant to lowering energy
consumption.
Subtitle E: Energy Information for Commercial Buildings
Section 141. Energy Information for Commercial Buildings
Requires a space leased by a federal agency in a building that has not earned the ENERGY STAR
label to be benchmarked under an online, free benchmarking program, with public disclosure.
Requires an agency that is a tenant of a space that has not earned the ENERGY STAR label to
provide to a building owner the energy consumption information of the space for use in meeting
the benchmarking and disclosure requirements.
Requires the DOE to conduct a study on the impact of and best practices regarding state and local
performance benchmarking and disclosure policies for commercial and multifamily buildings and
the impact of utility policies for providing aggregated information to owners of multitenant
buidlings to assist with benchmarking programs.
Authorizes the Secretary to make awards to utilities, utility regulators, and utility partners to
develop and implement programs to provide aggregated whole building energy consumption
information to multitenant building owners. Such information is needed for benchmarking multi-
tenant buildings.
Authorizes $12.5 million in programmatic funding for FY2014 through FY2018.
Title II: Industrial Efficiency and Competitiveness
Subtitle A: Manufacturing Energy Efficiency
Section 201. Purposes
Identifies the purpose of this section, including reforming and reorienting DOE’s industrial
efficiency programs; establishing consistent regulatory authority; accelerating the deployment of
more efficient industrial technologies and practices; and strengthening public-private
partnerships.
Section 202. Future of Industry Program
Streamlines efforts by directing Industrial Assessment Centers (IACs) to coordinate with the
Manufacturing Extension Partnership Centers of the National Institute of Standards and
Technology and DOE’s Building Technologies Program, and increases partnerships with the
national laboratories and energy service and technology providers to leverage private sector
expertise.
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Section 203. Sustainable Manufacturing Initiative
Requires EERE to provide onsite technical assessments to manufacturers seeking efficiency
opportunities.
Subtitle B: Supply Star
Section 211. Supply Star
Establishes a DOE pilot program modeled on and in coordination with ENERGY STAR to
identify examples and opportunities and promote practices for highly efficient supply chains.
Allows DOE to award companies financing (competitive grants/other incentives), technical
support and training to improve supply side efficiency.
Authorizes $10 million in programmatic funding for FY2014 through FY2023.
Subtitle C: Electric Motor Rebate Program
Section 221. Energy Saving Motor Control, Electric Motor, and Advanced Motor
Systems Rebate Program
Creates a DOE rebate program to incentivize purchases of new, high efficiency motor systems
that reduce motor energy use by no less than 5%.
Authorizes $5 million in programmatic funding for each of FY2014 and FY2015.
Subtitle D: Transformer Rebate Program
Section 231. Energy Efficient Transformer Rebate Program
Directs DOE to launch an incentive rebate for the purchase of energy efficient transformers for
industrial/manufacturing facilities or commercial/multifamily residential buildings.
Authorizes $5 million for each of FY2014 and FY2015.
Title III: Federal Agency Energy Efficiency
Section 301. Energy-Efficient and Energy-Saving Information Technologies
Requires the DOE, in consultation with other federal agencies, to issue recommendations to
employ energy efficiency through the use of information and communications technologies –
including computer hardware, operation and maintenance processes, energy efficiency software,
and power management tools.
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Section 302. Availability of Funds for Design Updates
Allows the General Services Administration to utilize funding to update the project design of
approved building construction to meet efficiency standards.
Section 303. Energy-Efficient Data Centers
Requires federal agencies to coordinate with the Office of Management and Budget (OMB) to
develop a strategy for implementing energy efficient and energy saving technologies and
practices, along with annual evaluation of federal data centers for energy efficiency.
Directs DOE and Office of E-Government and Information Technology to maintain a data center
energy practitioner program that leads to the certification of practitioners qualified to evaluate
energy usage and efficiency opportunities at federal data centers.
Establishes an open data initiative for federal data center energy usage data to facilitate data
center optimization and consolidation.
Section 304. Budget-Neutral Demonstration Program for Energy and Water
Conservation Improvements at Multifamily Residential Units
Authorizes a demonstration program to allow the Secretary of Housing and Urban Development
(HUD) to use budget-neutral performance-based contracts to conduct energy and water efficiency
upgrades to HUD-assisted multifamily housing units. Under the structure, private investors would
fund the upfront costs of retrofits, and HUD would reimburse them with the related savings from
reduced utility bills. The Secretary is authorized to issue contracts under the demonstration run
until September 30, 2016. Contracts issued under this program may last no longer than 12 years.
Payments will not be paid by the Secretary until utility savings have been validated by a third-
party.
The program will be targeted towards residential units in multifamily buildings participating in
rental assistance programs under section 8 of the U.S. Housing Act of 1937, the supportive
housing for the elderly program under section 202 of the Housing Act of 1959, or the supportive
housing for persons with disabilities program under section 811(d)(2) of the Cranston-Gonzalez
National Housing Act.
Title IV: Regulatory Provisions
Subtitle A: Third-party Certification Under Energy Star Program
Section 401. Third-Party Certification under Energy Star Program
Directs DOE and EPA to revise the Energy Star certification and verification requirements for
electronic products to reflect that third party testing shall not be required for program partners
that have complied with Energy Star regulations for at least 18 months.
Any exceptions granted that allow product developers to forgo third party testing would be
terminated if the partner violates the exemption rules twice during a two-year period. The
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exemption would be reinstated if developers subsequently followed Energy Star regulations for a
period of three years. The cost of this amendment would be covered by the current EPA and DOE
Energy Star budget.
Subtitle B: Federal Green Buildings
Section 411. High-Performance Green Federal Buildings
Requires DOE to conduct an ongoing review into private sector green building certification
systems and to work with other agencies to determine which certification system would
encourage the most comprehensive and environmentally sound approach to certifying federal
buildings.
Also, requires DOE to allow—in its review of green building certification systems—the inclusion
of any developer or administrator of a rating system or certification system and allows the
inclusion of responsible domestic sourcing credits and life-cycle assessment as a credit pathway
in such certification systems.
Subtitle C: Water Heaters
Section 421. Grid-Enabled Water Heaters
Allows the continued manufacture of large-capacity, grid-enabled, electric-resistance water
heaters, provided the water heaters include capabilities that intend for them to be used only in
electric thermal storage or demand response programs. Provides additional energy conservation
standards applicable to grid-enabled water heaters, and includes data reporting requirements for
manufacturers and utilities to report to DOE the number of units enrolled in electric thermal
storage or demand response programs.
Subtitle D: Energy Performance Requirement for Federal Buildings
Section 431. Energy Performance Requirement for Federal Buildings
Extends existing federal building energy efficiency improvement targets. Requires DOE to review
the results of the implementation of the energy performance requirements and to analyze the cost-
effectiveness and feasibility of extending the energy savings targets.
Requires federal energy managers to complete comprehensive energy and water evaluations every
four years, to ensure that federal buildings are performing at their optimal level of energy
efficiency, and to explain why agencies did not implement any energy- or water-saving measures
that were deemed life-cycle cost effective.
Repeals the provision of Section 433 of EISA that established a requirement that federal buildings
be designed so that the fossil fuel-generated energy consumption of each building be reduced on a
timetable to 0% in 2030.
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Section 432. Federal Building Energy Efficiency Performance Standards:
Certification System and Level for Green Buildings
Expands the scope of existing energy standards for new federal buildings to cover major
renovations.
Requires future rulemakings on federal building energy efficiency standards to include the
existing administrative requirements of the “Guiding Principles for Sustainable New Construction
and Major Renovations” for all new buildings of at least 5,000 sq. ft., unless found not to be life-
cycle cost effective.
Section 433. Enhanced Energy Efficiency Underwriting
Requires HUD to develop and issue updated underwriting and appraisal guidelines for borrowers
who voluntarily submit a qualified home energy report. The provision would cover any loan
issued, insured, purchased, or securitized by the Federal Housing Administration (FHA) and other
federal agencies, or their successors. The updated guidelines would adjust underwriting criteria
and valuation guidelines to account for expected energy cost savings as an offset to other
expenses and to account for present value of expected energy savings. If no qualified energy
report is provided, no adjustment would be made. Lenders would be required to inform loan
applicants of the costs and benefits of improving the energy efficiency of a home.
Subtitle E: Third Party Testing
Section 441. Voluntary Certification Programs for Air Conditioning, Furnace,
Boiler, Heat Pump, and Water Heater Products
Requires DOE to recognize voluntary, independent certification programs for air conditioning,
furnace, boiler, heat pump, and water heater products. Requires DOE to rely on qualified
voluntary certification programs to verify the performance rating of these products, provide
annual reports of all test results, and maintain a publicly available list of all certified models,
among other criteria.
Title V: Miscellaneous
Section 501. Offset
Amends funding authorizations for FY2013-2018.
Section 502. Budgetary Effects
States that for the purpose of complying with the Statutory Pay-As-You-Go Act of 2010, the
budgetary effect of this legislation shall be determined by reference to the latest statement titled
‘‘Budgetary Effects of PAYGO Legislation’’ for this act.
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Section 503. Advance Appropriations Required
Provides that authorization of amounts under this act and the amendments made by this act shall
be effective for any fiscal year only to the extent and in the amount provided in advance in
appropriations acts.
Author Contact Information
Fred Sissine
Specialist in Energy Policy
fsissine@crs.loc.gov, 7-7039
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