[House Report 110-297]
[From the U.S. Government Publishing Office]
110th Congress Rept. 110-297
HOUSE OF REPRESENTATIVES
1st Session Part 1
======================================================================
CARBON-NEUTRAL GOVERNMENT ACT OF 2007
_______
August 3, 2007.--Ordered to be printed
_______
Mr. Waxman, from the Committee on Oversight and Government Reform,
submitted the following
R E P O R T
together with
ADDITIONAL VIEWS
[To accompany H.R. 2635]
[Including cost estimate of the Congressional Budget Office]
The Committee on Oversight and Government Reform, to
whom was referred the bill (H.R. 2635) to reduce the Federal
Government's contribution to global warming through measures
that promote efficiency in the Federal Government's management
and operations, and for other purposes, having considered the
same, report favorably thereon with an amendment and recommend
that the bill as amended do pass.
CONTENTS
Page
Purpose and Summary.............................................. 11
Background and Need for Legislation.............................. 12
Legislative History.............................................. 14
Section-By-Section............................................... 15
Explanation of Amendments........................................ 21
Committee Consideration.......................................... 22
Roll Call Votes.................................................. 22
Application of Law to the Legislative Branch..................... 22
Statement of Oversight Findings and Recommendations of the
Committee...................................................... 22
Statement of General Performance Goals and Objectives............ 22
Constitutional Authority Statement............................... 23
Federal Advisory Committee Act................................... 23
Unfunded Mandates Statement...................................... 23
Earmark Identification........................................... 23
Committee Estimate............................................... 23
Budget Authority and Congressional Budget Office Cost Estimate... 23
Changes in Existing Law Made by the Bill, as Reported............ 30
Additional Views................................................. 36
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Carbon-Neutral
Government Act of 2007''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Findings.
TITLE I--FEDERAL GOVERNMENT INVENTORY AND MANAGEMENT OF GREENHOUSE GAS
EMISSIONS
Sec. 101. Inventory of Federal Government Greenhouse Gas Emissions.
Sec. 102. Management of Federal Government Greenhouse Gas Emissions.
Sec. 103. Pilot project for purchase of offsets and certificates.
Sec. 104. Savings Clause.
Sec. 105. Definitions.
Sec. 106. Authorization of appropriations.
TITLE II--FEDERAL GOVERNMENT ENERGY EFFICIENCY
Sec. 201. Federal vehicle fleets.
Sec. 202. Agency analyses for mobility acquisitions.
Sec. 203. Federal procurement of energy efficient products.
Sec. 204. Federal building energy efficiency performance standards.
Sec. 205. Management of Federal building efficiency.
Sec. 206. Leasing.
Sec. 207. Procurement and acquisition of alternative fuels.
Sec. 208. Contracts for renewable energy for executive agencies.
Sec. 209. Government Efficiency Status Reports.
Sec. 210. OMB Government Efficiency Reports and Scorecards.
Sec. 211. Authorization of appropriations.
Sec. 212. Judicial review.
SEC. 2. FINDINGS.
The Congress finds the following:
(1) The harms associated with global warming are serious and
well recognized. These include the global retreat of mountain
glaciers, reduction in snow cover extent, the earlier spring
melting of rivers and lakes, the accelerated rate of rise of
sea levels during the 20th century relative to the past few
thousand years, and increased intensity of hurricanes and
typhoons.
(2) The risks associated with a global mean surface
temperature increase above 2 C (36 F) above preindustrial
temperature are grave. According to the Intergovernmental Panel
on Climate Change, such temperature increases would increase
the severity of ongoing alterations of terrestrial and marine
environments, with potentially catastrophic results. Ongoing
and projected effects include more prevalent droughts in dry
regions, an increase in the spread of disease, a significant
reduction in water storage in winter snowpack in mountainous
regions with direct and important economic consequences, a
precipitous rise in sea levels by the end of the century, the
potential devastation of coastal communities, severe and
irreversible changes to natural ecosystems such as the
bleaching and destruction of much of the world's coral, and the
potential extinction of 30 percent of all living species.
(3) That these climate change risks are widely shared does
not minimize the adverse effects individual persons have
suffered and will suffer because of global warming.
(4) To preserve the ability to stabilize atmospheric
greenhouse gas concentrations at levels likely to protect
against a temperature rise above 2 C (36 F) will require
reductions of greenhouse gas emissions of 50 percent to 85
percent globally.
(5) Achieving such reductions will require a multitude of
actions across the global economy that may each address a
relatively minute quantity of emissions, but will be
cumulatively significant.
(6) With only 5 percent of the world population, the United
States emits approximately 20 percent of the world's total
greenhouse gas emissions, and must be a leader in addressing
global warming.
(7) The United States Government is the largest energy
consumer in the United States and is responsible for roughly
100,000,000 metric tons of CO2-equivalent emissions
annually.
(8) A reduction in greenhouse gas emissions by Federal
agencies would slow the increase of global emissions and hence
of global warming. In addition, Federal action would accelerate
the pace of development and adoption of technologies that will
be critical to addressing global warming in the United States
and worldwide.
(9) A failure by any Federal agency to comply with the
provisions of this Act requiring reductions in its greenhouse
gas emissions would exacerbate the pace and extent of global
warming and the harms caused by the agency beyond what would
otherwise occur. Although the emissions increments involved
could be relatively small, such a failure allowing
incrementally greater emissions would injure all United States
citizens.
(10) Improved management of Government operations, including
acquisitions and procurement and operation of Government
facilities, can maximize the use of existing energy efficiency
and renewable energy technologies to reduce global warming
pollution, while saving taxpayers' money, reducing our
dependence on oil, enhancing national security, cleaning the
air, and protecting pristine places from drilling and mining.
(11) Enhancing the accountability and transparency of
Government operations through setting milestones for agency
activities, planning, measuring results, tracking results over
time, and public reporting can improve Government management
and make Government operations more efficient and cost
effective.
TITLE I--FEDERAL GOVERNMENT INVENTORY AND MANAGEMENT OF GREENHOUSE GAS
EMISSIONS
SEC. 101. INVENTORY OF FEDERAL GOVERNMENT GREENHOUSE GAS EMISSIONS.
(a) In General.--Each agency shall, in accordance with the guidance
issued under subsection (b), annually inventory and report its
greenhouse gas emissions for the preceding fiscal year. Each such
inventory and report shall indicate as discrete categories--
(1) any direct emission of greenhouse gas as a result of an
activity of the agency;
(2) the quantity of indirect emissions of greenhouse gases
attributable to the generation of electricity used by the
agency and commercial air travel by agency personnel; and
(3) the quantity of emissions of greenhouse gases associated
with the work performed for the agency by Federal contractors,
comprising direct emissions and indirect emissions associated
with electricity used by, and commercial air travel by, such
contractors.
(b) Guidance; Assistance.--Not later than 3 months after the date of
the enactment of this Act, the Administrator shall issue guidance for
agencies for conducting inventories under this section and reporting
under section 102. Such guidance shall establish inventory and
reporting procedures that are at least as rigorous as the inventory
procedures established under the Environmental Protection Agency's
Climate Leaders program and shall define the scope of the inventories
of direct emissions described in subsection (a)(1) to be complete and
consistent with the national obligation for reporting inventories under
the United Nations Framework Convention on Climate Change. The
Administrator shall provide assistance to agencies in preparing their
inventories.
(c) Initial Inventory by Agencies.--
(1) Submission.--Not later than 1 year after the date of the
enactment of this Act, each agency shall submit to the
Administrator and make publicly available on the agency's
website an initial inventory of the agency's greenhouse gas
emissions for the preceding fiscal year.
(2) Certification.--Not later than 6 months after an agency
submits an initial inventory under paragraph (1), the
Administrator shall review the inventory for compliance with
the guidance issued under subsection (b) and--
(A) certify that the inventory is technically valid;
or
(B) decline to certify the inventory and provide an
explanation of the actions or revisions that are
necessary for the inventory to be certified under
subparagraph (A).
(3) Revision.--If the Administrator declines to certify the
inventory of an agency under paragraph (2)(B), the agency shall
submit to the Administrator and make publicly available on the
agency's website a revised inventory not later than 6 months
after the date on which the Administrator provides the agency
with the explanation required by such paragraph.
(d) Federal Land Management.--Beginning not later than 2 years after
the date of enactment of this Act, the Secretary of the Interior and
the Secretary of Agriculture shall include as a discrete category in
any inventory under this section any emission of greenhouse gas and any
biological sequestration of greenhouse gases associated with land
managed by the Bureau of Land Management or the Forest Service. Such
emissions and biological sequestration of greenhouse gases shall not be
considered for the purposes of setting or measuring progress toward
targets under section 102.
SEC. 102. MANAGEMENT OF FEDERAL GOVERNMENT GREENHOUSE GAS EMISSIONS.
(a) Emission Reduction Targets.--Not later than 18 months after the
date of the enactment of this Act, the Administrator shall promulgate
annual reduction targets for the total quantity of greenhouse gas
emissions described in section 101(a), expressed as carbon dioxide
equivalents, of all agencies, taken collectively, for each of fiscal
years 2010 through 2050.
(b) Goals.--The targets promulgated under subsection (a) shall be
calculated so as--
(1) to prevent the total quantity of greenhouse gas emissions
of all agencies in fiscal year 2011 and each subsequent fiscal
year from exceeding the total quantity of such emissions in
fiscal year 2010; and
(2) to reduce such greenhouse gas emissions as rapidly as
possible, but at a minimum by a quantity equal to 2 percent of
projected fiscal year 2010 emissions each fiscal year, so as to
achieve zero net annual greenhouse gas emissions from the
agencies by fiscal year 2050.
(c) Proportionate Share.--Each agency shall limit the quantity of its
greenhouse gas emissions described in section 101(a) to its
proportionate share so as to enable the agencies to achieve the targets
promulgated under subsection (a). The Administrator shall promulgate
annual reduction targets to be met by each agency to comply with this
subsection.
(d) Agency Plans for Managing Emissions.--
(1) Submission.--Not later than 2 years after the date of the
enactment of this Act, each agency shall develop, submit to the
Administrator, and make publicly available on the agency's
website a plan for achieving the annual reduction targets
applicable to such agency under this section through fiscal
year 2020. Not later than 2 years before the 10-year period
beginning in 2021 and each subsequent 10-year period, the
agency shall develop, submit to the Administrator, and make
publicly available an updated plan for achieving such targets
for the respective period. Each plan developed under this
paragraph shall--
(A) identify the specific actions to be taken by the
agency; and
(B) estimate the quantity of reductions of greenhouse
gas emissions to be achieved through each such action.
(2) Certification.--Not later than 6 months after an agency
submits a plan under paragraph (1), the Administrator shall--
(A) certify that the plan is technically sound and,
if implemented, is expected to limit the quantity of
the agency's greenhouse gas emissions to its
proportionate share under subsection (c); or
(B) decline to certify the plan and provide an
explanation of the revisions that are necessary for the
plan to be certified under subparagraph (A).
(3) Revision.--If the Administrator declines to certify the
plan of an agency under paragraph (2), the agency shall submit
to the Administrator and make publicly available on the
agency's website a revised plan not later than 6 months after
the date on which the Administrator provides the agency with
the explanation required by paragraph (2)(B).
(e) Emissions Management.--
(1) Requirement.--Each agency shall manage its greenhouse gas
emissions to meet the annual reduction targets applicable to
such agency under this section.
(2) Revision of plan.--If any agency fails to meet such
targets for a fiscal year, as indicated by the inventory and
report prepared by the agency for such fiscal year, the agency
shall submit to the Administrator and make publicly available
on the agency's website a revised plan under subsection (d) not
later than March 31 of the following fiscal year. The
Administrator shall certify or decline to certify the revised
plan in accordance with subsection (d)(2) not later than 3
months after receipt of the revised plan.
(3) Offsets.--
(A) Proposal.--If no national mandatory economy-wide
cap-and-trade program for greenhouse gases has been
enacted by fiscal year 2010, the Administrator shall
develop and submit to the Congress by 2011 a proposal
to allow agencies to meet the annual reduction targets
applicable to such agencies under this section in part
through emissions offsets, beginning in fiscal year
2015.
(B) Contents.--The proposal developed under
subparagraph (A) shall ensure that emissions offsets
are--
(i) real, surplus, verifiable, permanent, and
enforceable; and
(ii) additional for both regulatory and
financial purposes (such that the generator of
the offset is not receiving credit or
compensation for the offset in another
regulatory or market context).
(C) Rulemaking.--If by 2012 the Congress has not
enacted a statute for the express purpose of codifying
the proposal developed under subparagraph (A) or an
alternative to such proposal, the Administrator shall
implement the proposal through rulemaking.
(f) Management Strategies for Large Tracts of Public Lands.--The
Forest Service, the Bureau of Land Management, the National Park
Service, and the United States Fish and Wildlife Service shall--
(1) within 2 years after the date of the enactment of this
Act, conduct studies of the opportunities for management
strategies, and identify those management strategies with the
greatest potential, to--
(A) enhance net biological sequestration of
greenhouse gases on Federal lands they manage while
avoiding harmful effects on other environmental values;
and
(B) reduce negative impacts of global warming on
biodiversity, water supplies, forest health, biological
sequestration and storage, and related values;
(2) within 3 years after the date of the enactment of this
Act, implement programs on selected land management units in
different parts of the Nation to test the management strategies
identified as having the greatest potential to achieve the
benefits described in paragraph (1); and
(3) report to the Congress on the results of the studies and
the management strategies identified.
(g) Study on Urban and Wildland-Urban Forestry Programs.--Within 2
years of the date of enactment of this Act, the Forest Service, in
consultation with appropriate State and local agencies, shall conduct a
study of the opportunities of urban and wildland-urban interface
forestry programs to enhance net biological sequestration of greenhouse
gases and achieve other benefits.
(h) Reporting.--
(1) Reports by agencies.--Not later than December 31 each
fiscal year, each agency shall submit to the Administrator and
make publicly available on the agency's website a report on the
agency's implementation of its plan required by subsection (d)
for the preceding fiscal year, including the inventory of
greenhouse gas emissions of the agency during such fiscal year.
(2) Annual report to congress.--The Administrator shall
review each report submitted under paragraph (1) for technical
validity and compile such reports in an annual report on the
Federal Government's progress toward carbon neutrality. The
Administrator shall submit such annual report to the Committee
on Oversight and Government Reform of the House of
Representatives and the Committee on Governmental Affairs of
the Senate and make such annual report publicly available on
the Environmental Protection Agency's website.
(3) Electronic submission.--In complying with any requirement
of this title for submission of inventories, plans, or reports,
an agency shall use electronic reporting in lieu of paper copy
reports.
SEC. 103. PILOT PROJECT FOR PURCHASE OF OFFSETS AND CERTIFICATES.
(a) GAO Study.--No later than April 1, 2008, the Comptroller General
of the United States shall issue the report requested by the Congress
on May 17, 2007, regarding markets for greenhouse gas emissions
offsets.
(b) Pilot Project.--Executive agencies and legislative branch offices
may purchase qualified greenhouse gas offsets and qualified renewable
energy certificates in any open market transaction that complies with
all applicable procurement rules and regulations.
(c) Qualified Greenhouse Gas Offsets.--For purposes of this section,
the term ``qualified greenhouse gas offset'' means a real, additional,
verifiable, enforceable, and permanent domestic--
(1) reduction of greenhouse gas emissions; or
(2) sequestration of greenhouse gases.
(d) Qualified Renewable Energy Certificates.--For purposes of this
section, the term ``qualified renewable energy certificate'' means a
certificate representing a specific amount of energy generated by a
renewable energy project that is real, additional, and verifiable.
(e) Guidance.--No later than September 30, 2008, the Administrator
shall issue guidelines, for Executive agencies, establishing criteria
for qualified greenhouse gas offsets and qualified renewable energy
certificates. Such guidelines shall take into account the findings and
recommendations of the report issued under subsection (a) and shall--
(1) establish performance standards for greenhouse gas offset
projects that benchmark reliably expected greenhouse gas
reductions from identified categories of projects that reduce
greenhouse gas emissions or sequester carbon in accordance with
subsection (c); and
(2) establish criteria for qualified renewable energy
certificates to ensure that energy generated is renewable and
is in accordance with subsection (d).
(f) Report.--The Comptroller General of the United States shall
evaluate the pilot program established by this section, including
identifying environmental and other benefits of the program, as well as
its financial costs and any disadvantages associated with the program.
No later than April 1, 2011, the Comptroller General shall provide a
report to the Committee on Oversight and Government Reform of the House
of Representatives and the Committee on Homeland Security and
Governmental Affairs of the Senate providing the details of the
evaluation and any recommendations for improvement.
(g) Additional Definitions.--In this section:
(1) Notwithstanding section 105(3) of this Act, the term
``Executive agency'' has the meaning given to such term in
section 105 of title 5, United States Code.
(2) The term ``renewable energy'' has the meaning given that
term in section 203(b) of the Energy Policy Act of 2005 (42
U.S.C. 15852(b)(2)), except that energy generated from
municipal solid waste shall not be renewable energy.
(h) Authorization.--Of the amount of discretionary funds available to
each Executive agency or legislative branch office for each of fiscal
years 2009 and 2010, not more than 0.01 percent of such amount may be
used for the purpose of carrying out this section. Such funding shall
be in addition to any other funds available to the Executive agency or
legislative branch office for such purpose.
(i) Sunset Clause.--This section ceases to be effective at the end of
fiscal year 2010.
SEC. 104. SAVINGS CLAUSE.
Nothing in this Act or any amendment made by this Act shall be
interpreted to preempt or limit the authority of a State to take any
action to address global warming.
SEC. 105. DEFINITIONS.
In this title:
(1) The term ``Administrator'' means the Administrator of the
Environmental Protection Agency.
(2) The term ``carbon dioxide equivalent'' means, for each
greenhouse gas, the quantity of the greenhouse gas that makes
the same contribution to global warming as 1 metric ton of
carbon dioxide, as determined by the Administrator, taking into
account the global warming potentials published by the
Intergovernmental Panel on Climate Change.
(3) The term ``agency'' has the meaning given to that term in
section 551 of the National Energy Conservation Policy Act (42
U.S.C. 8259).
(4) The term ``greenhouse gas'' means--
(A) carbon dioxide;
(B) methane;
(C) nitrous oxide;
(D) hydrofluorocarbons;
(E) perfluorocarbons;
(F) sulfur hexafluoride; or
(G) any other anthropogenically-emitted gas that the
Administrator, after notice and comment, determines
contributes to global warming to a non-negligible
degree.
SEC. 106. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated such sums as may be necessary
to implement this title.
TITLE II--FEDERAL GOVERNMENT ENERGY EFFICIENCY
SEC. 201. FEDERAL VEHICLE FLEETS.
Section 303 of the Energy Policy Act of 1992 (42 U.S.C. 13212) is
amended--
(1) by redesignating subsection (f) as subsection (g); and
(2) by inserting after subsection (e) the following new
subsection:
``(f) Vehicle Emission Requirements.--
``(1) Prohibition.--No Federal agency shall acquire a light
duty motor vehicle or medium duty passenger vehicle that is not
a low greenhouse gas emitting vehicle.
``(2) Guidance.--Each year, the Administrator of the
Environmental Protection Agency shall issue guidance
identifying the makes and model numbers of vehicles that are
low greenhouse gas emitting vehicles. In identifying such
vehicles, the Administrator shall take into account the most
stringent standards for vehicle greenhouse gas emissions
applicable to and enforceable against motor vehicle
manufacturers for vehicles sold anywhere in the United States.
The Administrator shall not identify any vehicle as a low
greenhouse gas emitting vehicle if the vehicle emits greenhouse
gases at a higher rate than such standards allow for the
manufacturer's fleet average grams per mile of carbon dioxide-
equivalent emissions for that class of vehicle, taking into
account any emissions allowances and adjustment factors such
standards provide.
``(3) Definition.--For purposes of this subsection, the term
`medium duty passenger vehicle' has the meaning given that term
section 523.2 of title 49 of the Code of Federal
Regulations.''.
SEC. 202. AGENCY ANALYSES FOR MOBILITY ACQUISITIONS.
(a) Cost Estimate Requirement.--Each Federal agency that owns,
operates, maintains, or otherwise funds infrastructure, assets, or
personnel to provide delivery of fuel to its operations shall apply
activity based cost accounting principles to estimate the fully
burdened cost of fuel.
(b) Use of Cost Estimate.--Each agency shall use the fully burdened
cost of fuel, as estimated under subsection (a), in conducting analyses
and making decisions regarding its activities that create a demand for
energy. Such analyses and decisions shall include--
(1) the use of models, simulations, wargames, and other
analytical tools to determine the types of energy consuming
equipment that an agency needs to conduct its missions;
(2) life-cycle cost benefit analyses and other trade-off
analyses for determining the cost effectiveness of measures
that improve the energy efficiency of an agency's equipment and
systems;
(3) analyses and decisions conducted or made by others for
the agency; and
(4) procurement and acquisition source selection criteria,
requests for proposals, and best value determinations.
(c) Revision of Analytical Tools.--If a Federal agency employs
models, simulations, wargames, or other analytical tools that require
substantial upgrades to enable compliance with this section, the agency
shall complete such necessary upgrades not later than 2 years after the
date of enactment of this Act.
(d) Definition.--For purposes of this section, the term ``fully
burdened cost of fuel'' means the commodity price for the fuel plus the
total cost of all personnel and assets required to move and, where
applicable, protect, the fuel from the point at which the fuel is
received from the commercial supplier to the point of use.
SEC. 203. FEDERAL PROCUREMENT OF ENERGY EFFICIENT PRODUCTS.
(a) Amendments.--Section 553 of the National Energy Conservation
Policy Act (42 U.S.C. 8259b) is amended--
(1) in subsection (b)(1), by inserting ``in a product
category covered by the Energy Star program or the Federal
Energy Management Program for designated products'' after
``energy consuming product'';
(2) in subsection (b)(2)--
(A) by striking ``in writing that'' and all that
follows through ``(A) an Energy Star'' and inserting
``in writing that an Energy Star''; and
(B) by striking ``account; or'' and all that follows
through ``requirements of the agency'' and inserting
``account''; and
(3) in subsection (c)--
(A) by inserting ``list in their catalogues,
represent as available, and'' after ``Logistics Agency
shall'';
(B) by striking ``where the agency'' and inserting
``where the head of the agency''; and
(C) by striking ``writing that no Energy Star
product'' and all that follows through ``requirements,
or'' and inserting ``writing''.
(b) Catalogue Listing Deadline.--Not later than 6 months after the
date of enactment of this Act, the General Services Administration and
the Defense Logistics Agency shall ensure that the prohibition in the
amendment made under subsection (a)(2)(A) has been fully complied with.
SEC. 204. FEDERAL BUILDING ENERGY EFFICIENCY PERFORMANCE STANDARDS.
(a) Standards.--Section 305(a)(3) of the Energy Conservation and
Production Act (42 U.S.C. 6834(a)(3)) is amended by adding at the end
the following new subparagraph:
``(D) Not later than 1 year after the date of enactment of the
Carbon-Neutral Government Act of 2007, the Secretary shall establish,
by rule, revised Federal building energy efficiency performance
standards that require that:
``(i) For new Federal buildings and Federal buildings
undergoing major renovations:
``(I) The buildings shall be designed so that the
fossil fuel-generated energy consumption of the
buildings is reduced, as compared with such energy
consumption by a similar building in fiscal year 2003
(as measured by Commercial Buildings Energy Consumption
Survey or Residential Energy Consumption Survey data
from the Energy Information Agency), by the percentage
specified in the following table:
``Fiscal Year Percentage Reduction
2010................................. 60
2015................................. 70
2020................................. 80
2025................................. 90
2030................................. 100.
``(II) Sustainable design principles shall be applied
to the siting, design, and construction of such
buildings. For building types for which the United
States Green Building Council Leadership in Energy and
Environmental Design (LEED) certification for New
Construction and Major Renovation is applicable, such
buildings shall be designed to meet, at a minimum, the
LEED silver level standard (or any successor standard
thereto), or if any additional capital cost is
projected to be recoverable through energy and other
operational cost savings within 10 years, the LEED gold
level standard (or any successor standard thereto).
``(ii) In addition to any use of water conservation
technologies otherwise required by this section, water
conservation technologies shall be applied to the extent that
the technologies are life-cycle cost-effective.''.
(b) Definitions.--Section 303 of the Energy Conservation and
Production Act (42 U.S.C. 6832) is amended--
(1) in paragraph (6), by striking ``which is not legally
subject to State or local building codes or similar
requirements.'' and inserting ``. Such term shall include
buildings built for the purpose of being leased by a Federal
agency, and privatized military housing.''; and
(2) by adding at the end the following new paragraph:
``(17) The term `major renovation' means the renovation of a
major component or substantial structural part of a building
that materially increases the value of the building,
substantially prolongs the useful life of the building, or
adapts the building to a new or different use.''.
SEC. 205. MANAGEMENT OF FEDERAL BUILDING EFFICIENCY.
(a) Benchmarking and Recommissioning.--Section 543 of the National
Energy Conservation Policy Act (42 U.S.C. 8253) is amended by adding at
the end the following new subsections:
``(f) Energy Performance Benchmarking.--
``(1) Requirements.--Each Federal agency shall, with respect
to each of its Federal buildings with greater than 40,000
square feet of space or greater than $75,000 per year in energy
costs, annually benchmark the energy efficiency performance of
the building and, where feasible, rate that performance
compared to similar buildings.
``(2) Benchmarking and rating tool.--A Federal agency shall
use the Energy Star Portfolio Manager Buildings Benchmark Tool
in carrying out paragraph (1). If the building is a type of
building for which that tool does not allow rating the
building's comparative performance, and the Federal Energy
Management Program has identified an appropriate tool for
rating the building's comparative performance, the agency may
use such tool to benchmark and rate the building's performance.
``(3) Use of information to enhance building management.--The
Federal facilities manager for each building subject to the
requirements in paragraph (1) shall use the benchmark
performance, rating, and annual energy costs to identify and
evaluate opportunities for improving the building's energy
efficiency performance and reducing costs.
``(4) Public disclosure.--Each Federal agency shall post the
benchmarking information generated under this subsection, along
with each building's annual energy use per square foot and
energy costs, on the agency's website. The agency shall update
such information each year, and shall include in such reporting
previous years' information to allow changes in building
performance to be tracked over time.
``(g) Recommissioning and Diagnostic Energy Audit.--
``(1) Requirement.--Each Federal agency shall each year
recommission or retrocommission, as applicable, and conduct a
diagnostic energy audit with respect to, approximately 20
percent of its Federal buildings with greater than 40,000
square feet of space or greater than $75,000 per year in energy
costs, so that all such buildings are recommissioned or
retrocommissioned, as applicable, and audited at least once
every 5 years.
``(2) Use of information to enhance building management.--The
Federal facilities manager for each building and the agency
official responsible for facilities management shall use the
information produced from the energy audits under paragraph (1)
as a management tool for prioritizing capital expenditures for
maintenance and building upgrades and allocating such
expenditures within a facility and across all of the agency's
facilities, as applicable.
``(h) Large Capital Energy Investments.--Each Federal agency shall
ensure that any large capital energy investment in an existing building
that is not a major renovation but involves replacement of installed
equipment, such as heating and cooling systems, or involves renovation,
rehabilitation, expansion, or remodeling of existing space, employs the
most energy efficient designs, systems, equipment, and controls that
are life-cycle cost effective. Not later than 6 months after the date
of enactment of the Carbon-Neutral Government Act of 2007, each Federal
agency shall develop a process for reviewing each such large capital
energy investment decision to ensure that the requirement of this
subsection is met, and shall report to the Office of Management and
Budget on the process established. This process shall incorporate the
information produced under subsections (f) and (g). Not later than one
year after the date of enactment of the Carbon-Neutral Government Act
of 2007, the Office of Management and Budget shall evaluate and report
to Congress on each agency's compliance with this subsection.''.
(b) Metering.--Section 543(e)(1) of the National Energy Conservation
Policy Act (42 U.S.C. 8253(e)(1)) is amended by inserting ``By October
1, 2016, each agency shall also provide for equivalent metering of
natural gas, steam, chilled water, and water, in accordance with
guidelines established by the Secretary under paragraph (2).'' after
``buildings of the agency.''.
SEC. 206. LEASING.
(a) In General.--Except as provided in subsection (b), effective 3
years after the date of enactment of this Act, no Federal agency shall
enter into a new contract to lease space in a building that has not
earned the Energy Star label in the most recent year.
(b) Exception.--If--
(1) no space is available in such a building that meets an
agency's functional requirements, including locational needs;
or
(2) the agency is proposing to remain in a building that the
agency has occupied previously,
the agency may enter into a contract to lease space in a building that
has not earned the Energy Star label in the most recent year if the
lease contract includes provisions requiring that, prior to occupancy,
or in the case of a contract described in paragraph (2) not later than
6 months after signing the contract, the space will be renovated for
all energy efficiency improvements that would be cost effective over a
5-year period or the life of the lease, whichever is greater, including
improvements in lighting, windows, and heating, ventilation, and air
conditioning systems.
SEC. 207. PROCUREMENT AND ACQUISITION OF ALTERNATIVE FUELS.
No Federal agency shall enter into a contract for procurement of an
alternative or synthetic fuel, including a fuel produced from non-
conventional petroleum sources, for any mobility-related use, other
than for research or testing, unless the contract specifies that the
lifecycle greenhouse gas emissions associated with the production and
combustion of the fuel supplied under the contract must, on an ongoing
basis, be less than or equal to such emissions from the equivalent
conventional fuel produced from conventional petroleum sources.
SEC. 208. CONTRACTS FOR RENEWABLE ENERGY FOR EXECUTIVE AGENCIES.
Section 501(b)(1) of title 40, United States Code, is amended--
(1) in subparagraph (B), by striking ``A contract'' and
inserting ``Except as provided in subparagraph (C), a
contract''; and
(2) by adding at the end the following new subparagraph:
``(C) Renewable energy contracts.--A contract for
renewable energy may be made for a period of not more
than 20 years. For the purposes of this subparagraph,
the term `renewable energy' has the meaning given that
term in section 203(b) of the Energy Policy Act of 2005
(42 U.S.C. 15852(b)(2)), except that energy generated
from municipal solid waste shall not be considered
renewable energy.''.
SEC. 209. GOVERNMENT EFFICIENCY STATUS REPORTS.
(a) In General.--Each Federal agency subject to any of the
requirements of this Act and the amendments made by this Act shall
compile and submit to the Director of the Office of Management and
Budget an annual Government efficiency status report on--
(1) compliance by the agency with each of the requirements of
this Act and the amendments made by this Act;
(2) the status of the implementation by the agency of
initiatives to improve energy efficiency, reduce energy costs,
and reduce emissions of greenhouse gases; and
(3) savings to American taxpayers resulting from mandated
improvements under this Act and the amendments made by this Act
(b) Submission.--Such report shall be submitted--
(1) to the Director at such time as the Director requires;
(2) in electronic, not paper, format; and
(3) consistent with related reporting requirements.
SEC. 210. OMB GOVERNMENT EFFICIENCY REPORTS AND SCORECARDS.
(a) Reports.--Not later than April 1 of each year, the Director of
the Office of Management and Budget shall submit an Annual Government
Efficiency report to the Committee on Oversight and Government Reform
of the House of Representatives and the Committee on Governmental
Affairs of the Senate, which shall contain--
(1) a summary of the information reported by agencies under
section 209;
(2) an evaluation of the Government's overall progress toward
achieving the goals of this Act and the amendments made by this
Act; and
(3) recommendations for additional actions necessary to meet
the goals of this Act and the amendments made by this Act.
(b) Scorecards.--The Office of Management and Budget shall include in
any annual energy scorecard it is otherwise required to submit a
description of each agency's compliance with the requirements of this
Act and the amendments made by this Act.
SEC. 211. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated such sums as may be necessary
to implement this title.
SEC. 212. JUDICIAL REVIEW.
(a) Final Agency Action.--Any nondiscretionary act or duty under this
Act or any amendment made by this Act is a final agency action for the
purposes of judicial review under chapter 7 of title 5, United States
Code.
(b) Venue for Certain Actions.--The United States Court of Appeals
for the District of Columbia Circuit shall have exclusive jurisdiction
over any petition for review of action of the Administrator in
promulgating any rule under title I of this Act.
(c) Limitations.--No action under chapter 7 of title 5, United States
Code, may be commenced prior to 60 days after the date on which the
plaintiff has given notice to the Federal agency concerned of the
alleged violation of this Act or any amendment made by this Act.
(d) Common Claims.--When civil actions arising under this Act or any
amendment made by this Act are pending in the same court and involve
one or more common questions of fact or common claims regarding the
same alleged Federal agency failure or failures to act, the court may
consolidate such claims into a single action for judicial review. When
civil actions arising under this Act or any amendment made by this Act
are pending in different districts and involve one or more common
questions of fact or common claims regarding the same alleged Federal
agency failure or failures to act, such actions may be consolidated
pursuant to section 1407 of title 28, United States Code.
(e) Aggrieved Persons.--A person shall be considered aggrieved within
the meaning of this Act or any amendment made by this Act for purposes
of obtaining judicial review under chapter 7 of title 5, United States
Code, if the person alleges--
(1) harm attributable to a Federal agency's failure to reduce
its greenhouse gas emissions in accordance with the
requirements under this Act or any amendment made by this Act,
or take other actions required under this Act or any amendment
made by this Act; or
(2) a Federal agency's failure to collect and provide
information to the public as required by this Act or any
amendment made by this Act.
For purposes of this section, the term ``harm'' includes any effect of
global warming, currently occurring or at risk of occurring, and the
incremental exacerbation of any such effect or risk that is associated
with relatively small increments of greenhouse gas emissions, even if
the effect or risk is widely shared. An effect or risk associated with
global warming is ``attributable'' to a Federal agency's failure to act
as described in paragraph (1) if the failure to act results in larger
emissions of greenhouse gases than would have been emitted had the
Federal agency followed the requirements of this Act or any amendment
made by this Act, as any such incremental additional emissions will
exacerbate the pace, extent, and risks of global warming.
(f) Remedy.--
(1) In general.--In addition to the remedies available under
chapter 7 of title 5, United States Code, a court may provide
the remedies specified in this subsection.
(2) Payment.--In any civil action alleging a violation of
this Act, if the court finds that an agency has significantly
violated this Act in its failure to perform any
nondiscretionary act or duty under this Act or any amendment
made by this Act, the court may award a payment, payable by the
United States Treasury, to be used for a beneficial mitigation
project recommended by the plaintiff or to compensate the
plaintiff for any impact from global warming suffered by the
plaintiff. The total payment for all claims by all plaintiffs
in any such action shall not exceed the amount provided in
section 1332(b) of title 28, United States Code. A court may
deny a second payment under this section if the court
determines that the plaintiff has filed multiple separate
actions that could reasonably have been combined into a single
action. No payment may be awarded under this paragraph for
violations of an agency's obligation to collect or report
information to the public. No court may award any payment under
this paragraph in any given year if the cumulative payments
awarded by courts under this paragraph in such year are equal
to or greater than $1,500,000.
(3) Costs.--A court may award costs of litigation to any
substantially prevailing plaintiff or to any other plaintiff
whenever the court determines such an award is appropriate.
Such an award is appropriate when such litigation contributes
to the Federal agency's compliance with this Act or any
amendment made by this Act. Costs of litigation include
reasonable attorney fees and expert fees.
(4) Exclusive remedy.--Notwithstanding any other provision of
Federal law--
(A) no plaintiff who is awarded a payment under this
subsection for a failure to perform a mandatory duty
under this Act or any amendment made by this Act may be
awarded a payment for such failure under any other
Federal law; and
(B) no plaintiff may be awarded a payment under this
subsection for a failure to perform a mandatory duty
under this Act or any amendment made by this Act if the
plaintiff has been awarded a payment for such failure
under any other Federal law.
(g) No State Court Action.--No person may bring any action in State
court alleging a violation of this Act or any amendment made by this
Act.
(h) Definition.--In this section, the term ``person'' means a United
States person. In the case of an individual, such term means a citizen
or national of the United States.
Purpose and Summary
H.R. 2635, the Carbon-Neutral Government Act, was
introduced by Rep. Waxman on June 7, 2007. H.R. 2635 promotes
federal leadership on the actions necessary to avoid a
dangerous level of global warming by making federal government
operations carbon-neutral by 2050.
The bill requires federal agencies to inventory their
greenhouse gas emissions and reduce net emissions to zero by
2050; directs EPA to set annual government-wide and agency-
specific emissions targets to achieve these reductions;
requires agencies to develop plans and publicly report progress
in meeting the targets; requires agencies to purchase low
greenhouse gas emitting vehicles; requires agencies to use the
real cost of fuel in acquisition and procurement decisions;
strengthens requirements for agencies to procure energy
efficient products; requires new federal buildings to be
designed to reduce fossil-fuel generated power consumption and
meet green buildings standards; requires federal buildings
managers to employ management strategies for enhancing energy
efficiency; and clarifies citizens' ability to enforce these
requirements in federal court.
Background and Need for Legislation
A consensus has emerged over the last several decades that
the Earth's climate is changing, the global mean temperature is
increasing, dramatic environmental impacts will occur should
the temperature of the planet continue to rise, and
anthropogenic emissions are the primary cause and driver of
global warming. Studies show that a 2 degree Celsius increase
in global temperatures could result in the extinction of nearly
30% of all living species, the bleaching of much of the world's
coral, increased risk of wider spread of certain diseases,
increased damage from floods and storms, and increased drought
in already dry regions. The Intergovernmental Panel on Climate
Change (IPCC) Working Group III (WGIII) findings suggest that
in order to prevent global temperatures from exceeding 2
degrees Celsius above pre-industrial levels it will be
necessary to reduce global emissions 50%-85% below 2000 levels.
As the world's largest emitter of greenhouse gases according to
the IPCC, the United States will need to reduce overall
emissions on the order of 80% below 1990 levels to reach global
reductions of this magnitude.
Reducing greenhouse gas emissions from United States
government operations is an important piece of the broader
effort to avoid dangerous global warming. The federal
government is the single largest energy consumer in the United
States, consuming over 1.1 quadrillion BTU of energy in FY 2005
at a cost of $14.5 billion. The preliminary estimate for FY
2006 is that the government consumed roughly 1.1 quadrillion
BTU of energy at a cost of $17.7 billion. The carbon emissions
associated with the federal government's operations are
correspondingly large, estimated at more than 99 million metric
tons of CO2 equivalent (MMTCE) in 2005. Reducing
and, by 2050, eliminating these emissions will help slow global
warming.
Setting the federal government on the path to carbon
neutrality will have other, perhaps even more significant,
benefits. Importantly, it will send a strong message to the
nation and the international community that the U.S. government
is re-engaging and will once again be a leader in fighting
global warming. Since the United States rejected the Kyoto
Protocol in 2001, we have lost credibility with other nations,
including key allies, and have lost influence in the
international negotiations to address this issue. Adopting
strong standards for the federal government provides proof to
the world that the U.S. is committed to avoiding dangerous
climate change.
In the absence of federal leadership, states, cities, and
small towns across America, as well as multi-national
corporations and small businesses, are taking action to address
global warming. These efforts are very important, and could be
enhanced with federal government support and additional federal
action. As Congress moves to adopt mandatory economy-wide
requirements for greenhouse gas reductions, committing the
government to eliminate its own emissions is a tangible
demonstration that steep reductions can and must be achieved.
Achieving a carbon-neutral federal government will also
help America transition to the clean, low-carbon economy of the
future, driving new technologies, businesses, and jobs. The
federal government owns or controls vast quantities of energy-
consuming equipment and buildings, and it makes hundreds of
billions of dollars of purchases every year. Entire industries
have developed solely to supply the government with goods and
services. Because government needs drive technology advances
and create markets for new goods, federal action can help
develop a more vibrant and cleaner economy.
Currently, there is no requirement for the federal
government to track or reduce its greenhouse gas emissions by
any specified quantity. Executive Order 13123, issued on June
8, 1999, required most federal facilities (but not other
federal sources) to reduce their greenhouse gas emissions 30%
below 1990 levels by 2010. While agencies were making progress
toward meeting this limited goal, it was revoked on January 24,
2007, by Executive Order 13423.
There is also no existing requirement for the federal
government to limit or reduce its overall energy use. The
Energy Policy Act of 2005 and E.O. 13423 have some requirements
related to federal government energy use in specific
applications. However, many of the Energy Policy Act of 2005
requirements have significant exemptions or are nonbinding, and
the executive order requirements are not legally enforceable.
For example, E.O. 13423 directs agencies to reduce their
vehicle fleets' consumption of petroleum products by two
percentage points per year, through 2015, relative to baseline
consumption in FY 2005, and increase non-petroleum-based fuel
consumption by 10% annually. With respect to buildings, EPAct
2005 section 102 requires that agencies reduce energy use per
square foot in most federal facilities by two percentage points
per year, starting in FY 2006, compared to the energy use in FY
2003, for a total of 20% less than the FY 2003 baseline use in
2020. E.O. 13423 increases this requirement to 3 percentage
points per year, compared to the FY 2003 baseline. EPAct
section 203 sets unenforceable goals for the federal government
to aim to use renewable energy to meet at least 3% of its
energy use in FY 2007-FY 2009, at least 5% in FY 2010-2012, and
at least 7.5% from FY 2013 on. E.O. 13423 directs agencies to
meet at least half of the required quantities using new
renewable generation.
In the absence of requirements to reduce total government
energy use, progress has been uneven and in recent years we
have lost ground. While federal government energy consumption
fell each year from FY 1997 through FY 2000, energy consumption
subsequently rose every year from FY 2001 through FY2004,
falling again only slightly in FY 2005. In FY 2005, federal
energy use was almost ten percentage points higher than in FY
2000, relative to a FY 1985 baseline.
Nearly two thirds of all energy consumed by the federal
government in 2005 was for fuel used for mobility. This fuel
used by vehicles, mobile off-road equipment, weapons platforms,
and mobile generation equipment emitted over 54 MMTCE.
Approximately one third of the energy consumed by the federal
government in 2005 was associated with the operation of federal
facilities. The federal government owns or leases over 500,000
facilities, or more than 3.7 billion square feet. Federal
facilities used more than 397 trillion BTU of energy and
accounted for nearly 45% of all the carbon emitted by the
federal government in 2005. These emissions are largely
attributable to fossil-based electricity generation.
In addition to the requirements for government-wide
greenhouse gas emissions reductions, the Carbon Neutral
Government Act includes specific complementary policies to
reduce fuel consumption and increase energy efficiency in
federal operations. These policies address federal vehicle
fleets, other equipment that uses petroleum derived fuel, such
as ships, tanks and planes, federal buildings, and procurement
and acquisitions.
The Carbon Neutral Government Act is critical to reducing
the federal government's contribution to global warming,
reducing the government's dependence on energy derived from
fossil fuels, enhancing energy security, and saving taxpayer
dollars spent on energy bills.
Legislative History
H.R. 2635, legislation to reduce the federal government's
contribution to global warming, was introduced on June 7, 2007,
and referred to the Committee on Oversight and Government
Reform.
The Subcommittee on Government Management, Organization,
and Procurement held a hearing on the Carbon-Neutral Government
Act on May 17, 2007. The witnesses were Emily Figdor, Director,
Federal Global Warming Program, U.S. Public Interest Research
Group; Jeffrey Harris, Vice President for Programs, Alliance to
Save Energy; and Marshall E. Purnell, FAIA, First Vice
President and President-Elect, the American Institute of
Architects.
The Committee also solicited the views of the
Administration on the proposed legislation, as well as H.R.
823, legislation authorizing government purchase of offsets and
renewable energy certificates. While the Administration
indicated that it would not be able to provide official
Administration views on the bill, staff from GSA, EPA, and DOE
met with Committee staff to provide informal suggestions and
technical advice. GSA indicated that it is capable of meeting
the requirements of the bill. EPA indicated that, with
sufficient resources, the requirements are achievable. DOE
raised concerns about the scope of the citizen suit provision,
which has been narrowed in response, and potential costs to
agencies. Each of the agencies also provided technical comments
that are addressed in the bill as reported.
The Committee held a markup to consider H.R. 2635 on June
12, 2007, and ordered the bill to be reported, as amended, by
voice vote.
Section-by-Section
Sec. 1. Short title
The short title of the bill is the Carbon-Neutral
Government Act of 2007.
Sec. 2. Findings
This section makes a series of findings regarding the
scientific consensus on the threat posed by global warming, the
impacts that have already been observed, the harm global
warming poses to individuals, the need for widespread and
cumulatively substantial greenhouse gas emissions reductions to
protect against dangerous climate change, the role of the U.S.
government in addressing this problem, and the opportunities to
reduce emissions while saving taxpayers' money and enhancing
national security through improved management of U.S.
government operations.
TITLE I-FEDERAL GOVERNMENT INVENTORY AND MANAGEMENT OF GREENHOUSE GAS
EMISSIONS
Sec. 101. Inventory of federal government greenhouse gas emissions
Section 101(a) requires each federal agency to inventory
and report its greenhouse gas emissions annually, in accordance
with guidance issued by EPA. Emissions include indirect
emissions from generation of electricity used by the agency and
commercial air travel by agency personnel, as well as emissions
associated with government work that has been outsourced to
private contractors.
Section 101(b) directs EPA to, within 3 months of
enactment, issue guidance for agencies for conducting
inventories. The guidance must sets procedures at least as
rigorous as the inventory procedures established under EPA's
Climate Leaders program, a voluntary program for industry
greenhouse gas reductions.
Under section 101(c), agencies' initial inventories are due
one year after enactment, and must be certified by EPA as
technically valid. If EPA declines to certify an agency
inventory, the agency must revise the inventory within 6
months. Inventories must be publicly reported on agencies' Web
sites.
Under section 101(d), emissions from certain federal lands
and biological sinks on such lands must be included in
inventories within two years of enactment, but are not included
in the emissions targets and reductions under section 102.
Sec. 102. Management of federal greenhouse gas emissions
This section establishes binding annual greenhouse gas
emissions reductions targets for the federal government, and it
requires agencies to develop and implement plans to meet those
targets.
Subsections 102(a), (b), and (c) require EPA, within 18
months of enactment, to set annual greenhouse gas emissions
reductions targets for all federal agencies cumulatively and
individually, based on the agencies' proportionate shares. The
targets freeze emissions in FY 2011 at FY 2010 levels and
reduce gradually to achieve zero net emissions in FY 2050. The
targets must decrease emissions each year by, at minimum, an
amount equal to 2% of FY 2010 emissions. The targets for some
years will necessarily decrease emissions by an amount greater
than 2% of FY 2010 emissions to achieve zero net emissions in
FY 2050.
Under section 102(d), agencies' plans for meeting the
targets are due within two years of enactment, and the plans
must be certified by EPA as technically sound. The plans must
identify the specific actions to be taken by the agency and
estimate the quantity of greenhouse gas emissions reductions to
be achieved through each action.
Section 102(e) addresses emissions reductions. It provides
that if an agency fails to meet its annual target, the agency
must revise its plan to provide sufficient reductions to
achieve the targets. This section also addresses the use of
emissions offsets to help achieve the reduction targets. It
provides that if no national mandatory economy-wide cap-and-
trade program for greenhouse gases has been enacted by 2010,
EPA must provide Congress a proposal to allow agencies to use
some quantity of emissions offsets to assist in meeting their
targets. EPA must ensure that emissions offsets are real,
surplus, verifiable, permanent, enforceable, and additional for
both regulatory and financial purposes. If, by 2012, Congress
has not acted on EPA's proposal or an alternative, EPA must
implement its proposal through rulemaking.
Section 102(f) provides that agencies with large tracts of
public lands must study and report on management strategies to
enhance biological carbon sequestration and minimize harmful
effects of global warming on federal lands.
Section 102(g) requires the Forest Service to conduct a
study on the opportunities to enhance net biological
sequestration of greenhouse gases and achieve other benefits
through urban forestry programs.
Section 102(h) requires agencies to annually report to EPA,
Congress, and the public (through their websites) on the
implementation of their plans and their emissions. All
reporting under this title must be done electronically, rather
than in paper copies.
Sec. 103. Pilot project for purchase of offsets and certificates
Section 103(a) requires GAO to issue a report on markets
for greenhouse gas emissions offsets no later than April 1,
2008.
Subsections 103(a), (b), (c), (d), and (i) establish a two-
year pilot project authorizing agencies and legislative branch
offices to purchase greenhouse gas offsets and renewable energy
certificates that meet specified criteria, as detailed by EPA
in guidance.
Section 103(e) requires GAO to evaluate the results of the
pilot program and report to Congress by April 1, 2011.
Section 103(h) provides that agencies and legislative
branch offices may not spend more than 0.01 percent of
available discretionary funds on such purchases.
Sec. 104. Savings clause
This section ensures that nothing in this bill preempts or
limits State actions to address climate change.
Sec. 105. Definitions
This section defines key terms in the bill.
Sec. 106. Authorization of appropriations
This section authorizes the appropriation of such sums as
are necessary to implement this title.
TITLE II-FEDERAL GOVERNMENT ENERGY EFFICIENCY
Sec. 201. Federal vehicle fleets
This section amends section 303 of the Energy Policy Act of
1992 to require agencies to purchase vehicles for federal
fleets that have lower greenhouse gas emissions.
Amended section 303(f)(1) bars agencies from purchasing
vehicles for federal fleets that are not ``low greenhouse gas
emitting vehicles.''
Amended section 303(f)(2) provides that each year, EPA must
issue guidance identifying the makes and model numbers of low
greenhouse gas emitting vehicles. In identifying such vehicles,
the Administrator shall take into account the most stringent
standards for vehicle greenhouse gas emissions applicable to
and enforceable against motor vehicle manufacturers for
vehicles sold anywhere in the United States. The Administrator
shall not identify any vehicle as a low greenhouse gas emitting
vehicle if the vehicle emits greenhouse gases at a higher rate
than such standards allow for a manufacturer's overall fleet
average emissions for that class of vehicle.
Currently, the only applicable greenhouse gas emissions
standards are those adopted by California and other states.
Those standards will be enforceable if and when EPA grants the
waiver requested by the state of California under the Clean Air
Act.
Sec. 202. Agency analyses for mobility acquisitions
This section corrects an existing disincentive for the
Department of Defense and other agencies to purchase more
efficient equipment related to mobility (such as planes and
tanks) that would provide large cost savings. The disincentive
stems from the large discrepancy that exists between the cost
of fuel at the point-of-purchase and the cost of fuel at the
point-of-use when the fuel must be delivered and protected,
such as fuel used on a battlefield or for in-air refueling of
aircraft. The Defense Science Board and others have estimated
that the real cost of fuel in such applications can range from
$15 per gallon up to hundreds of dollars per gallon. Current
analytical models for procurement and acquisition decisions,
however, assume that the cost of fuel is the purchase price,
not the cost at the point of use. Thus, such models
dramatically underestimate the benefits of more fuel-efficient
equipment, which would reduce the amount of fuel actually used
by the equipment. Such benefits could include direct cost
savings, the ability to reallocate resources currently used for
protecting deliveries, and even reduced casualties.
Section 202(a) requires agencies that expend resources to
deliver fuel to their operations to estimate the ``fully
burdened cost of fuel,'' which is the full cost of moving and,
where applicable, protecting, the fuel.
Section 202(b) requires agencies to use these estimates in
all analyses and decisions about activities that create a
demand for fuel.
Section 202(c) mandates that any analytical tools that
require substantial upgrades to comply with this requirement be
upgraded within two years of enactment.
Sec. 203. Federal procurement of energy efficient products
This section amends section 553 of the National Energy
Conservation Policy Act to strengthen existing requirements
that agencies purchase, and GSA and DLA supply, energy
efficient products in the product categories where such
products are identified. Section 104 of EPAct 2005 currently
requires agencies only to purchase, and GSA and DLA only to
supply, Energy Star or FEMP designated products in product
categories where they are available, where such products are
cost effective, reasonably available, and meet the functional
requirements of the agency. However, GSA catalogues currently
list numerous inefficient products in product categories
covered by the Energy Star program, and GSA requires no
documentation or certification from agencies that the
exemptions apply prior to supplying inefficient products to
agencies.
Section 203(a)(2) removes the existing exemption allowing
agencies to claim that efficient products do not meet their
functional requirements. It also explicitly bars GSA and DLA
from listing products in its catalogues that fail to meet these
criteria.
Section 203(b) requires GSA and DLA to revise their
catalogues within six months of enactment to comply with the
bar on listing inefficient products.
Sec. 204. Federal building energy efficiency performance standards
This section amends section 305(a)(3) of the Energy
Conservation and Production Act to significantly strengthen the
existing performance standards for new federal buildings and
federal buildings undergoing major renovations. As amended by
section 109 of the Energy Policy Act of 2005, section 305(a)(3)
currently requires new federal buildings to be designed to
consume 30% less energy than required by code, if cost
effective.
Under section 204(a), within one year of enactment, DOE
must issue rules requiring all federal buildings that are new,
undergoing major renovations, and/or are built for the federal
government to lease, to meet new performance standards for
energy consumption. Such buildings must also be certified as
LEED silver, or where cost effective, LEED gold, under the U.S.
Green Buildings Council standards. The new performance
standards for energy consumption are based on a proposal from
the American Institute of Architects. They require a building
designed in FY 2010 to consume 60% less fossil fuel-generated
energy than a comparable building consumed in FY 2003. This
requirement is strengthened every five years, such that a
building designed in FY 2030 must consume zero fossil fuel-
generated energy.
Sec. 205. Management of federal building energy efficiency
This section amends section 543 of the National Energy
Conservation Policy Act to require agencies to apply specified
management tools to identify and prioritize opportunities to
improve the energy efficiency of large federal buildings
(greater than 40,000 square feet or with greater than $75,000
annual energy costs).
New section 543(f) requires agencies to benchmark annually
the energy efficiency performance of these buildings and rate
that performance against comparable buildings using an Energy
Star benchmark tool. This will allow agencies to use a simple
online tool to determine the baseline energy performance for
each large building and compare each building's performance to
that of buildings of a similar size and function. Agencies must
publicly disclose the benchmarking results as well as their
energy costs for each large building on the agency's Web site.
New section 543(g) requires agencies to recommission or
retrocommission and perform an energy audit of approximately
20% of its large federal buildings each year, so as to cover
each large federal building at least once every five years.
``Commissioning'' is a systematic method for investigating how
an existing building's systems are operated and maintained,
which is used to calibrate a building's energy systems for
optimal performance. Buildings that have already undergone
commissioning are ``recommissioned,'' while buildings that have
never been commissioned are ``retrocommissioned.'' Diagnostic
energy audits identify available cost effective energy savings.
New section 543(h) requires agencies to develop internal
processes to ensure that all large capital energy investments
use the most energy efficient designs, systems, equipment and
controls that are life-cycle cost effective. Agencies must
report to OMB on their process for reviewing such investments.
Section 205(b) amends section 543(e)(1), which requires
metering of federal buildings, to clarify that the requirements
include metering of natural gas, steam, chilled water, and
water. This section provides agencies an additional four years
to install such meters.
Sec. 206. Leasing
This section ensures that when agencies lease space in
existing private sector buildings, they select space in more
energy efficient buildings.
Section 206(a) requires an agency, when entering into a new
contract to lease space in a building, to lease space in an
Energy Star building. An existing building can earn the Energy
Star by benchmarking its energy performance to show that its
energy efficiency performance is in the top 25% of that of
comparable buildings.
Section 206(b) provides that an agency may be exempt from
this requirement if no space is available in an Energy Star
building that meets the agency's functional needs, including
location, or if the agency is renewing a lease for currently
occupied space. For one of these exemptions to apply, the lease
must provide that the space will be renovated for all energy
efficiency improvements that would be cost effective over the
life of the lease (or five years, if the lease is shorter than
five years).
Sec. 207. Procurement and acquisition of alternative fuels
This section bars agencies from entering into a contract
for an alternative fuel for any use related to mobility (other
than research or testing), unless the contract specifies that
the fuel's lifecycle greenhouse gas emissions from production
and combustion will be no greater than such emissions from the
equivalent conventional fuel.
Sec. 208. Contracts for renewable energy for executive agencies
This section allows GSA to enter into longer term contracts
for renewable energy. This will help agencies acquire renewable
energy from new renewable energy sources by making it easier
for such projects to obtain financing.
This section amends USC Title 40, section 501(b)(1), which
limits GSA from entering into contracts for public utilities
longer than 10 years. New section 501(b)(1)(C) allows GSA to
enter into up to 20-year contracts for renewable energy. It
defines ``renewable energy'' as that term is defined in section
203(b) of EPAct 2005, except that this definition excludes
energy generated from municipal solid waste.
Sec. 209. Government efficiency status reports
This section requires agencies to report annually to OMB
on: (1) the status of their compliance with the requirements of
the Act; (2) their implementation of initiatives to improve
energy efficiency, reduce energy costs and reduce emissions of
greenhouse gases; and (3) the resulting savings to taxpayers.
Sec. 210. OMB government efficiency reports and scorecards
This section requires OMB to annually report to Congress on
the status of agencies' compliance with the requirements of
this Act and make recommendations for any additional actions
necessary to meet those requirements. OMB must also include
agencies' compliance with these requirements in OMB's annual
energy scorecard.
Sec. 211. Authorization of appropriations
This section authorizes the appropriation of such sums as
are necessary to implement this title.
Sec. 212. Judicial review
This section strengthens citizens' ability to enforce the
requirements of this Act in court if agencies fail to comply
with its mandates.
Section 212(a) provides that agency noncompliance with the
requirements of this Act is judicially reviewable under the
Administrative Procedure Act.
Section 212(b) grants the U.S. Court of Appeals for the
D.C. Circuit exclusive jurisdiction over petitions for review
of EPA rulemakings under title I of the Act, consistent with
the approach to jurisdiction over rulemakings with national
effect under the Clean Air Act.
Section 212(c) requires a plaintiff to provide an agency
with 60 days notice of intent to sue prior to bringing an
action under these provisions.
Section 212(d) provides courts authority to consolidate
actions arising under this Act that involve common questions of
fact or common claims regarding the same alleged agency failure
to act.
Section 212(e) clarifies Congress' intent that any person
should have standing to bring suit under these provisions if
the person alleges harm attributable to an agency's failure to
comply with the Act's requirements or if the person alleges
that an agency failed to collect and provide information to the
public as the Act requires. This section defines ``harm'' to
include any effect of global warming, whether occurring or at
risk of occurring in the future, and the incremental
exacerbation of any such effect or risk that is associated with
small increments of greenhouse gas emissions. It provides that
an individual is harmed even if the effect or risk is widely
shared. It also provides that an effect or risk of global
warming is ``attributable'' to a federal agency's failure to
comply with a requirement of this Act if the failure results in
the agency emitting a larger quantity of greenhouse gases than
it would have emitted had it complied with the requirement.
This is because any incremental additional emissions will
necessarily exacerbate the pace, extent, and risks of global
warming to some degree.
Section 212(f)(1) provides that courts may prescribe
certain additional remedies in specified cases under these
provisions beyond those available under the Administrative
Procedure Act.
Section 212(f)(2) provides that with respect to an agency's
significant violation of any substantive requirement of the Act
(but not information collection and reporting requirements), a
court may award a payment from the U.S. Treasury. This payment
is to be used in a beneficial mitigation project selected by
the plaintiff to reduce global warming, or to be used to
compensate the plaintiff for any impact of global warming shown
to be suffered by the plaintiff. The total payment for all
claims by all plaintiffs in an action under this provision is
limited to the amount provided in 28 USC 1332(b) (currently set
at $75,000). A court may deny a second payment to a given
plaintiff under this section if the court determines that the
plaintiff filed multiple separate actions that could reasonably
have been combined into a single action. Also, a court may not
award this payment in any given year if the cumulative payments
already awarded by courts under this provision in that year
total at least $1,500,000.
Section 212(f)(3) authorizes a court to award litigation
costs (including attorney fees and expert fees) when
appropriate, including when the litigation contributes to the
agency's compliance with this Act.
Section 212(f)(4) is intended to prevent plaintiffs from
``double-dipping'' by obtaining payments under both this
provision and any other federal law for the same alleged
failure by a federal agency to perform a mandatory duty under
this Act.
Section 212(g) bars an action in state court alleging a
violation of this Act.
Section 212(h) provides that only U.S. entities and
individuals may sue under these provisions.
Explanation of Amendments
The following amendments were adopted in Committee:
Mr. Waxman offered an amendment, passed by voice vote,
modifying the provisions in the bill related to judicial
review. The Waxman amendment removes the specific authorization
for citizen suits, but retains the language providing for
judicial review under the Administrative Procedure Act. It also
defines for purposes of APA review who is ``aggrieved'' by a
federal agency's failure to comply with the requirements of
this Act. With respect to the remedy provision allowing a court
to award a monetary payment, the Waxman amendment provides that
in any one year, courts may award no more than a total of
$1,500,000 in monetary payments. The Waxman amendment also
provides that the right to bring suit to enforce this Act is
limited to U.S. individuals and entities.
Mr. McHenry offered an amendment, passed by voice vote, to
require agencies to report, as part of the annual government
efficiency status reports required by the bill, on the savings
to taxpayers resulting from the improvements mandated by the
bill and the amendments made by the bill.
Mr. McHenry offered and then withdrew an amendment to title
I of the legislation providing that no agency may be required
to take or refrain from taking any action under title I if
doing so would adversely impact the agency's primary mission.
Committee Consideration
On Tuesday, June 12, 2007, the Committee met in open
session and favorably ordered H.R. 2635 to be reported to the
House by a voice vote.
Rollcall Votes
No rollcall votes were held.
Application of Law to the Legislative Branch
Section 102(b)(3) of Public Law 104-1 requires a
description of the application of this bill to the legislative
branch where the bill relates to terms and conditions of
employment or access to public services and accommodations.
H.R. 2635 would reduce greenhouse gas emissions from executive
branch agencies. The bill applies to the legislative branch in
that it would establish a pilot program to allow executive
agencies and legislative branch offices to purchase qualified
greenhouse gas offsets. The bill does not relate to employment
or access to public services and accommodations.
Statement of Oversight Findings and Recommendations of the Committee
In compliance with clause 3(c)(1) of rule XIII and clause
(2)(b)(1) of Rule X of the Rules of the House of
Representatives, the Committee's oversight findings and
recommendations are reflected in the descriptive portions of
this report, including the need for federal agencies to reduce
greenhouse gas emissions to help slow global warming.
Statement of General Performance Goals and Objectives
In accordance with clause 3(c)(4) of rule XIII of the Rules
of the House of Representatives, the Committee's performance
goals and objectives are reflected in the descriptive portions
of this report, including requiring federal agencies to reduce
net greenhouse gas emissions to zero by 2050, establishing
efficiency standards for federal buildings, establishing
minimum emissions standards for federal fleet vehicles, and
strengthening requirements for executive branch procurement of
energy efficient products.
Constitutional Authority Statement
Under clause 3(d)(1) of rule XIII of the Rules of the House
of Representatives, the Committee must include a statement
citing the specific powers granted to Congress to enact the law
proposed by H.R. 2635. Article I, Section 8, Clause 18 of the
Constitution of the United States grants the Congress the power
to enact this law.
Federal Advisory Committee Act
The Committee finds that the legislation does not establish
or authorize the establishment of an advisory committee within
the definition of 5 U.S.C. App., Section 5(b).
Unfunded Mandates Statement
Section 423 of the Congressional Budget and Impoundment
Control Act (as amended by Section 101(a)(2) of the Unfunded
Mandates Reform Act, P.L. 104-4) requires a statement on
whether the provisions of the report include unfunded mandates.
In compliance with this requirement the Committee has received
a letter from the Congressional Budget Office included herein.
Earmark Identification
H.R. 2635 does not include any congressional earmarks,
limited tax benefits, or limited tariff benefits as defined in
clause 9(d), 9(e), or 9(f) of rule XXI.
Committee Estimate
Clause 3(d)(2) of rule XIII of the Rules of the House of
Representatives requires an estimate and a comparison by the
Committee of the costs that would be incurred in carrying out
H.R. 2635. However, clause 3(d)(3)(B) of that rule provides
that this requirement does not apply when the Committee has
included in its report a timely submitted cost estimate of the
bill prepared by the Director of the Congressional Budget
Office under section 402 of the Congressional Budget Act.
Budget Authority and Congressional Budget Office Cost Estimate
With respect to the requirements of clause 3(c)(2) of rule
XIII of the Rules of the House of Representatives and section
308(a) of the Congressional Budget Act of 1974 and with respect
to requirements of clause 3(c)(3) of rule XIII of the Rules of
the House of Representatives and section 402 of the
Congressional Budget Act of 1974, the Committee has received
the following cost estimate for H.R. 2635 from the Director of
the Congressional Budget Office:
June 28, 2007
Hon. Henry A. Waxman,
Chairman, Committee on Oversight and Government Reform,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 2635, the Carbon-
Neutral Government Act of 2007.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Matthew
Pickford.
Sincerely,
Peter R. Orszag.
Enclosure.
H.R. 2635--Carbon-Neutral Government Act of 2007
Summary: H.R. 2635 would establish targets for greenhouse
gas reduction and standards for energy efficiency for the
federal government. Starting in 2010, the bill would require
federal agencies to reduce emissions of greenhouse gases in
order to achieve net zero emissions by 2050. In addition, the
legislation would:
Establish a two-year pilot program for federal
purchases of greenhouse gas offsets (as specified in the bill)
and renewable energy certificates;
Require agencies to purchase low greenhouse gas-
emitting vehicles;
Require energy-efficiency standards for new (and
renovated) federal buildings;
Permit individuals to sue the federal government
for damages (of up to $1.5 million per year) caused by global
warming; and
Authorize the Environmental Protection Agency
(EPA) to establish a carbon cap-and-trade program for use by
federal agencies.
CBO estimates that enacting this legislation would increase
direct spending by $20 million in 2008, by $340 million over
the 2008-2012 period, and by $840 million over the 2008-2017
period, mostly for the cost of entering into contractual
commitments to acquire renewable forms of energy and to achieve
reductions in energy use. In addition, we estimate that
implementing the bill would increase the federal government's
operating costs subject to appropriation by $178 million in
2008 and $1.3 billion over the 2008-2012 period, mostly to
purchase low greenhouse gas-emitting vehicles and to
participate in the pilot program for acquiring qualified
greenhouse gas offsets.
H.R. 2635 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA)
and would not affect the budgets of state, local, or tribal
governments.
Estimated cost to the Federal Government: The estimated
budgetary impact of H.R. 2635 is shown in the following table.
The costs of this legislation fall within nearly all budget
functions because the bill would affect all executive and
legislative branch agencies.
TABLE 1.--ESTIMATED BUDGETARY IMPACT OF H.R. 2635
------------------------------------------------------------------------
By fiscal year, in millions of
dollars--
---------------------------------------
2008 2009 2010 2011 2012
------------------------------------------------------------------------
CHANGES IN DIRECT SPENDING \1\Estimated Budget Authority...... 40 60 80 100 100
Estimated Outlays............... 20 40 80 100 100 CHANGES IN SPENDING SUBJECT TO APPROPRIATIONEstimated Authorization Level... 180 298 295 263 336
Estimated Outlays............... 178 296 295 263 336
------------------------------------------------------------------------
\1\ Enacting H.R. 2635 also would increase direct spending by an
estimated $100 million per year from 2013 through 2017. Changes in
direct spending through 2017 are detailed in Table 2.
Basis of estimate: For this estimate, CBO assumes that H.R.
2635 will be enacted before the start of 2008, that the
necessary funds will be provided for each year, and that
spending will follow historical patterns for ongoing and
similar initiatives. CBO estimates that enacting H.R. 2635
would increase direct spending by $20 million in 2008 and $840
million over the 2008-2017 period. In addition, we estimate
that implementing the bill would increase discretionary
spending by $178 million in 2008 and $1.3 billion over the
2008-2012 period.
Background
H.R. 2635 would establish targets for reducing the federal
government's emissions of greenhouse gases.
Greenhouse Gases. The federal government's emissions of
greenhouse gases--primarily carbon dioxide, but also methane,
nitrous oxide, and other chemicals--are the result of a variety
of processes, including the combustion of fossil fuels,
industrial activities, and natural processes. Most of the
carbon dioxide emissions in the United States result from the
combustion of fossil fuels. There is currently no requirement
for the federal government to specifically track or reduce its
greenhouse gas emissions and no reliable comprehensive data
base of direct and indirect greenhouse gas emissions that
result from the government's operations. For this estimate, CBO
estimated the federal government's greenhouse gas emissions
based on the carbon dioxide coefficients of the various fuels
consumed. The government emits at least 100 million metric tons
of carbon dioxide annually through the consumption of fossil
fuels.
H.R. 2635 would require agencies to inventory and reduce
all greenhouse gas emissions, including direct emissions (e.g.,
energy usage in buildings and vehicles) as well as indirect
emissions (e.g., emissions from the production of energy,
travel costs, and contractor-related activities). Limited
information is available on the greenhouse gas emissions of the
federal government. For this estimate, CBO assumes agencies
would reduce current energy consumption and purchase qualified
greenhouse gas offsets to achieve the required 2 percent annual
reduction in carbon dioxide emissions starting in 2011.
Methods of Compliance. Under the bill, the federal
government could lower its energy use or purchase qualified
greenhouse gas offsets or renewable energy certificates or a
combination of those approaches to reduce its greenhouse gas
emissions.
Energy Conservation Investments. Methods of lowering the
federal government's energy use could range from inexpensive
education and outreach campaigns to encourage employees and
agencies to curtail their energy use, to more costly
investments in energy conservation improvements to buildings or
in energy-efficient equipment and vehicles. Agencies typically
make energy conservation investments using appropriated funds
or by entering into energy savings performance contracts
(ESPCs).
Greenhouse Gas Offsets. Under the bill, greenhouse gas
offsets would provide a verifiable, enforceable, and permanent
reduction of greenhouse gas emissions through a reduction in
emissions or the sequestration (that is, the removal) of
greenhouse gases (for example, by the permanent storage of
carbon dioxide emissions). Such reductions in emissions or
increases in the sequestration of greenhouse gas could be
achieved by entities other than the federal government--for
example, by modifications in energy use to reduce carbon
emissions (such as switching from coal to natural gas) or
changes in the management of forest lands to increase the
sequestration of carbon. Those entities could then sell the
reductions in greenhouse gases that they have achieved to
others, such as the federal government, that are required to
reduce emissions.
The Federal Government's Energy Use and Carbon Dioxide
Emissions. The federal government is the largest single
consumer of energy in the United States. According to the
Department of Energy (DOE), the federal government accounts for
about 2 percent of the total energy consumed in the United
States. When measured in terms of energy delivered (net of
losses in the generation of electricity), the government used
about 1.1 quadrillion British thermal units (Btu) or quads of
energy at a cost of $14.5 billion in 2005. Federal buildings
accounted for 35 percent of the government's energy use,
vehicles and equipment used about 60 percent, and the remainder
was used in various industrial processes and support
facilities. Based on the type of energy used, CBO and others
have estimated that the federal government's activities--from
heating and cooling office buildings to operating fighter
jets--produce at least 100 million metric tons of carbon
dioxide annually.
Reducing and Offsetting Carbon Dioxide Emissions. CBO
expects that 20 percent of the reduction in greenhouse gas
emissions required of the federal government under H.R. 2635
before 2017 would stem from reducing energy use. We expect that
most emissions reduction under the bill in the initial years--
80 percent--would be achieved by purchasing greenhouse gas
offsets. That estimate reflects the fact that the energy
conservation potential of existing federal buildings is
limited--not all of the reduction in greenhouse gas emissions
required under H.R. 2635 could be obtained by making federal
buildings more energy efficient. In addition, most federal
energy use is related to vehicle and equipment operation by the
Department of Defense and other agencies for purposes that are
not likely to be significantly reduced in the next few years.
Thus, the purchase of greenhouse gas offsets is the compliance
strategy likely to be most widely adopted by federal agencies
for the first several years following enactment of the
legislation.
Direct spending
CBO expects that two provisions of H.R. 2635 would affect
direct spending; the estimated cost of those provisions are
shown in Table 2. First, the bill would require federal
agencies to reduce their greenhouse gas emissions by at least 2
percent annually to reach net zero emissions by 2050. It also
would permit individuals to sue the governmentfor its failure
to reduce those emissions. CBO estimates that enacting the bill would
increase direct spending by $20 million in 2008, $340 million over the
2008 092012 period, and $840 million over the 2008-2017 period, for the
cost of entering into long-term contracts to achieve reductions in
energy use. Those contracts are known as energy savings performance
contracts. ESPCs allow agencies to acquire energy-efficiency
investments and agree to pay private contractors for the cost of those
investments over several years using the avoided energy costs due to
the investment.
TABLE 2.--ESTIMATED DIRECT SPENDING EFFECTS OF H.R. 2635
--------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
-------------------------------------------------------------------------------------------
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2008-2012 2008-2017
--------------------------------------------------------------------------------------------------------------------------------------------------------
CHANGES IN DIRECT SPENDINGEstimated Budget Authority.................................. 40 60 80 100 100 100 100 100 100 100 380 880
Estimated Outlays........................................... 20 40 80 100 100 100 100 100 100 100 340 840
--------------------------------------------------------------------------------------------------------------------------------------------------------
Energy Savings Performance Contracts. Section 102 would
require federal agencies to reduce their greenhouse gas
emissions by freezing emissions in 2010 and then working to
steadily reduce net emissions by at least 2 percent a year to
achieve net zero greenhouse gas emissions by 2050.
The obligation to make payments under ESPCs is incurred
when the government signs a contract. Under current law,
agencies can use such contracts to acquire new energy-efficient
equipment and pay for it over a period of several years without
an appropriation for the full amount of the purchase price.
Thus, consistent with government accounting principles, CBO has
determined that the budget should reflect that commitment as
new obligations at the time that a contract is signed and that
the authority to enter into those contracts without budget
authority for the full amount of the purchase price constitutes
direct spending.
CBO examined information on past energy conservation
investments made by the federal government to estimate the cost
of reducing energy use, and thereby reducing carbon dioxide
emissions. Based on the cost of energy conservation investments
made by federal agencies over the past decade, and the
estimated energy savings achieved by those investments, CBO
estimates that lowering greenhouse gas emissions through energy
conservation investments in federal buildings using ESPCs would
cost $20 million in 2008, $340 million over the 2008-2012
period, and $840 million over the 2008-2017 period. We estimate
that this level of energy conservation investment would fulfill
about 20 percent of the greenhouse gas reduction goal under
H.R. 2635 over the 2011-2017 period.
Judicial Review. Section 211 would permit individuals to
sue the federal government in the United States Court of
Appeals for the District of Columbia Circuit for failure to
reduce its greenhouse gas emissions according to the schedule
outlined in H.R. 2635. Under the bill, if plaintiffs prevailed
in such lawsuits, payment would be made from the Treasury for
mitigation projects as recommended by the plaintiff. Under H.R.
2635, such payments could not exceed a maximum of $1.5 million
annually. CBO expects that agencies would be able to comply
with the goals of the legislation over the 2008-2017 period,
and it is unlikely that such damages would be paid from the
Treasury.
Spending subject to appropriation
CBO estimates that implementing H.R. 2635 would have
discretionary costs of $178 million in 2008 and $1.3 billion
over the 2008-2012 period, primarily for the purchase of low
greenhouse gas-emitting vehicles and for participation in the
pilot program for qualified greenhouse gas offsets (see Table
3).
Pilot Program for Purchase of Offsets and Certificates.
Section 103 would authorize the appropriation of one one-
hundreth of one percent of the discretionary funds made
available to the executive and legislative branches of the
federal government in fiscal years 2009 and 2010 to establish a
two-year pilot program to purchase greenhouse gas emission
offsets and renewable energy certificates. Renewable energy
certifications are the rights to the environmental benefits
from generating electricity from renewable energy sources.
Since discretionary funding is likely to total in the vicinity
of $1 trillion for each of the next few years, CBO estimates
that this provision would cost about $100 million in each of
fiscal years 2009 and 2010. (The precise amount of this
authorization would depend on the overall growth in
discretionary appropriations over the next few years.) CBO
expects that this pilot program would help prepare agencies to
develop strategies to reduce greenhouse gas emissions starting
in 2010.
TABLE 3.--ESTIMATED SPENDING SUBJECT TO APPROPRIATION UNDER H.R. 2635
------------------------------------------------------------------------
By fiscal year, in millions of
dollars--
---------------------------------------
2008 2009 2010 2011 2012
------------------------------------------------------------------------
CHANGES IN SPENDING SUBJECT TO APPROPRIATIONPilot Program for Purchase of
Offsets and Certificates:
Estimated Authorization 0 100 100 0 0
Level......................
Estimated Outlays........... 0 100 100 0 0
Greenhouse Gas Reductions:
Estimated Authorization 0 0 0 60 120
Level......................
Estimated Outlays........... 0 0 0 60 120
Federal Vehicle Fleets:
Estimated Authorization 135 138 140 143 146
Level......................
Estimated Outlays........... 135 138 140 143 146
Metering:
Estimated Authorization 20 20 20 20 20
Level......................
Estimated Outlays........... 20 20 20 20 20
Other Provisions:
Estimated Authorization 10 20 30 40 50
Level......................
Estimated Outlays........... 8 18 30 40 50
Other Reports:
Estimated Authorization 15 20 5 0 0
Level......................
Estimated Outlays........... 15 20 5 0 0
Total Changes:
Estimated Authorization 180 298 295 263 336
Level......................
Estimated Outlays........... 178 296 295 263 336
------------------------------------------------------------------------
Greenhouse Gas Reductions. Section 102 would require
federal agencies to reduce their greenhouse gas emissions by
freezing emissions in 2010 and then reducing emissions by at
least 2 percent each year.
In the initial years following enactment of H.R. 2635, CBO
expects that agencies would primarily rely on the purchase of
qualified greenhouse gas offsets and renewable energy
certificates to achieve the required reductions in carbon
dioxide emissions. Under the bill, such offsets could be
purchased by an agency from other federal or nonfederal
entities to help meet its own greenhouse gas reduction
requirements. Offset projects might range from buying credits
for carbon sequestration that results from planting trees to
financing energy-efficient upgrades at power plants in other
cities. A recent Government Accountability Office (GAO) report
\1\ estimates that the annual costs of such offsets range from
$5 to $25 per ton. The market for such offsets is currently in
its infancy, as few entities are actually required to reduce
greenhouse gas emissions or acquire energy from renewable
sources. If H.R. 2635 were enacted, the market for such offsets
would become more regulated, and CBO expects that with
significant additional demand the price of greenhouse gas
emission offsets would rise to at least $25 per ton. CBO
estimates that the federal government would have to purchase
carbon reduction credits for about 2.2 million metric tons
annually starting in 2010 to meet the goals of H.R. 2635. We
estimate that those offsets would cost $60 million in 2011 and
$179 million over the 2011-2012 period, assuming the
appropriation of the necessary amounts.
---------------------------------------------------------------------------
\1\ Government Accountability Office, Legislative Branch Energy
Audits Are Key to Strategy for Reducing Greenhouse Gas Emissions, GAO-
07-516 (April 2007).
---------------------------------------------------------------------------
Federal Vehicle Fleets. Section 201 would require federal
agencies to purchase light-duty and medium-duty passenger
vehicles that are low greenhouse gas-emitting vehicles. EPA
would be required each year to issue guidance identifying the
vehicles that emit low levels of greenhouse gases. Currently,
the General Services Administration (GSA) purchases around
60,000 new vehicles annually for the federal government's use.
Of that amount, approximately 45,000 vehicles are light- and
medium-duty passenger vehicles. Although there is no current
standard for low greenhouse gas-emitting vehicles, based on
information from GSA and GAO, it appears that more fuel-
efficient vehicles, including hybrid and alternative-fuel
vehicles, would probably add at least $3,000 to the price of a
standard vehicle. Using that information, CBO estimates that
acquiring low greenhouse gas-emitting vehicles under H.R. 2635
would cost about $135 million in 2008 and about $700 million
over the 2008-2012 period. The federal government also could
realize cost savings from reduced gasoline purchases if the
vehicles it purchases achieve greater gasoline mileage. CBO
expects, however, that any savings in the operating costs of
federal vehicles would not be significant over the next five
years.
Metering. Section 205 would require that all federal
agencies install meters to record the use of natural gas,
steam, chilled water, and water by October 1, 2016. Such meters
could provide data on an hourly or daily time frame to measure
consumption of electricity. The federal government operates in
more than 500,000 buildings. Many federal buildings use natural
gas, steam, chilled water, and water. Based on information from
the General Services Administration, the Department of Defense,
and the Department of Energy, CBO expects that about 20 percent
of those buildings would be economical to meter, and
implementing the metering provision would cost about $20
million in 2008 and $100 million over the 2008-2012 period.
Other Provisions. Other provisions of H.R. 2635 would
require EPA to oversee and manage the greenhouse gas emissions
of federal agencies, including establishing a carbon cap-and-
trade program for use by federal agencies. In addition, the
legislation would add significant new reporting requirements by
federal agencies on their greenhouse gas emissions and energy
use. Based on information from agencies and the cost of similar
requirements, CBO estimates that implementing those provisions
would cost $8 million in 2008 and about $150 million over the
2008-2012 period.
Other Reports. Section 102 would require the Forest
Service, the Bureau of Land Management, the National Park
Service, and the United States Fish and Wildlife Service to
conduct studies to identify management strategies to enhance
the potential for sequestration of greenhouse gases on federal
lands and to implement programs on selected sites demonstrating
sequestration strategies. Carbon sequestration is the process
by which carbon dioxide is removed from the atmosphere;
forests, oceans, and soils are natural carbon sinks (areas that
remove carbon from the atmosphere).
The studies would be completed within two years of
enactment, and the projects would be implemented the following
year. Based on information provided by the agencies, CBO
estimates that these activities would cost $15 million in 2008
and $40 million over the 2008-2010 period.
Intergovernmental and private-sector impact: H.R. 2635
contains no intergovernmental or private-sector mandates as
defined in UMRA and would not affect the budgets of state,
local, or tribal governments.
Estimate prepared by: Federal Costs; Matthew Pickford,
Robert G. Shackleton, and David Reynolds; Impact on State,
Local, and Tribal Governments: Elizabeth Cove; Impact on the
Private-Sector: Amy Petz.
Estimate approved by: Peter H. Fontaine, Deputy Assistant
Director for Budget Analysis.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, existing law in which no change is
proposed is shown in roman):
ENERGY POLICY ACT OF 1992
* * * * * * *
TITLE III--ALTERNATIVE FUELS--GENERAL
* * * * * * *
SEC. 303. MINIMUM FEDERAL FLEET REQUIREMENT.
(a) * * *
* * * * * * *
(f) Vehicle Emission Requirements.--
(1) Prohibition.--No Federal agency shall acquire a
light duty motor vehicle or medium duty passenger
vehicle that is not a low greenhouse gas emitting
vehicle.
(2) Guidance.--Each year, the Administrator of the
Environmental Protection Agency shall issue guidance
identifying the makes and model numbers of vehicles
that are low greenhouse gas emitting vehicles. In
identifying such vehicles, the Administrator shall take
into account the most stringent standards for vehicle
greenhouse gas emissions applicable to and enforceable
against motor vehicle manufacturers for vehicles sold
anywhere in the United States. The Administrator shall
not identify any vehicle as a low greenhouse gas
emitting vehicle if the vehicle emits greenhouse gases
at a higher rate than such standards allow for the
manufacturer's fleet average grams per mile of carbon
dioxide-equivalent emissions for that class of vehicle,
taking into account any emissions allowances and
adjustment factors such standards provide.
(3) Definition.--For purposes of this subsection, the
term ``medium duty passenger vehicle'' has the meaning
given that term section 523.2 of title 49 of the Code
of Federal Regulations.
[(f)] (g) Authorization of Appropriations.--There are
authorized to be appropriated for carrying out this section,
such sums as may be necessary for fiscal years 1993 through
1998, to remain available until expended.
* * * * * * *
----------
NATIONAL ENERGY CONSERVATION POLICY ACT
* * * * * * *
TITLE V--FEDERAL ENERGY INITIATIVE
* * * * * * *
PART 3--FEDERAL ENERGY MANAGEMENT
* * * * * * *
SEC. 543. ENERGY MANAGEMENT REQUIREMENTS.
(a) * * *
* * * * * * *
(e) Metering of Energy Use.--
(1) Deadline.--By October 1, 2012, in accordance with
guidelines established by the Secretary under paragraph
(2), all Federal buildings shall, for the purposes of
efficient use of energy and reduction in the cost of
electricity used in such buildings, be metered. Each
agency shall use, to the maximum extent practicable,
advanced meters or advanced metering devices that
provide data at least daily and that measure at least
hourly consumption of electricity in the Federal
buildings of the agency. By October 1, 2016, each
agency shall also provide for equivalent metering of
natural gas, steam, chilled water, and water, in
accordance with guidelines established by the Secretary
under paragraph (2). Such data shall be incorporated
into existing Federal energy tracking systems and made
available to Federal facility managers.
* * * * * * *
(f) Energy Performance Benchmarking.--
(1) Requirements.--Each Federal agency shall, with
respect to each of its Federal buildings with greater
than 40,000 square feet of space or greater than
$75,000 per year in energy costs, annually benchmark
the energy efficiency performance of the building and,
where feasible, rate that performance compared to
similar buildings.
(2) Benchmarking and rating tool.--A Federal agency
shall use the Energy Star Portfolio Manager Buildings
Benchmark Tool in carrying out paragraph (1). If the
building is a type of building for which that tool does
not allow rating the building's comparative
performance, and the Federal Energy Management Program
has identified an appropriate tool for rating the
building's comparative performance, the agency may use
such tool to benchmark and rate the building's
performance.
(3) Use of information to enhance building
management.--The Federal facilities manager for each
building subject to the requirements in paragraph (1)
shall use the benchmark performance, rating, and annual
energy costs to identify and evaluate opportunities for
improving the building's energy efficiency performance
and reducing costs.
(4) Public disclosure.--Each Federal agency shall
post the benchmarking information generated under this
subsection, along with each building's annual energy
use per square foot and energy costs, on the agency's
website. The agency shall update such information each
year, and shall include in such reporting previous
years' information to allow changes in building
performance to be tracked over time.
(g) Recommissioning and Diagnostic Energy Audit.--
(1) Requirement.--Each Federal agency shall each year
recommission or retrocommission, as applicable, and
conduct a diagnostic energy audit with respect to,
approximately 20 percent of its Federal buildings with
greater than 40,000 square feet of space or greater
than $75,000 per year in energy costs, so that all such
buildings are recommissioned or retrocommissioned, as
applicable, and audited at least once every 5 years.
(2) Use of information to enhance building
management.--The Federal facilities manager for each
building and the agency official responsible for
facilities management shall use the information
produced from the energy audits under paragraph (1) as
a management tool for prioritizing capital expenditures
for maintenance and building upgrades and allocating
such expenditures within a facility and across all of
the agency's facilities, as applicable.
(h) Large Capital Energy Investments.--Each Federal agency
shall ensure that any large capital energy investment in an
existing building that is not a major renovation but involves
replacement of installed equipment, such as heating and cooling
systems, or involves renovation, rehabilitation, expansion, or
remodeling of existing space, employs the most energy efficient
designs, systems, equipment, and controls that are life-cycle
cost effective. Not later than 6 months after the date of
enactment of the Carbon-Neutral Government Act of 2007, each
Federal agency shall develop a process for reviewing each such
large capital energy investment decision to ensure that the
requirement of this subsection is met, and shall report to the
Office of Management and Budget on the process established.
This process shall incorporate the information produced under
subsections (f) and (g). Not later than one year after the date
of enactment of the Carbon-Neutral Government Act of 2007, the
Office of Management and Budget shall evaluate and report to
Congress on each agency's compliance with this subsection.
* * * * * * *
SEC. 553. FEDERAL PROCUREMENT OF ENERGY EFFICIENT PRODUCTS.
(a) * * *
(b) Procurement of Energy Efficient Products.--
(1) Requirement.--To meet the requirements of an
agency for an energy consuming product in a product
category covered by the Energy Star program or the
Federal Energy Management Program for designated
products, the head of the agency shall, except as
provided in paragraph (2), procure--
(A) * * *
* * * * * * *
(2) Exceptions.--The head of an agency is not
required to procure an Energy Star product or FEMP
designated product under paragraph (1) if the head of
the agency finds [in writing that--
[(A) an Energy Star] in writing that an
Energy Star product or FEMP designated product
is not cost-effective over the life of the
product taking energy cost savings into
[account; or
[(B) no Energy Star product or FEMP
designated product is reasonably available that
meets the functional requirements of the
agency] account.
* * * * * * *
(c) Listing of Energy Efficient Products in Federal
Catalogs.--Energy Star products and FEMP designated products
shall be clearly identified and prominently displayed in any
inventory or listing of products by the General Services
Administration or the Defense Logistics Agency. The General
Services Administration or the Defense Logistics Agency shall
list in their catalogues, represent as available, and supply
only Energy Star products or FEMP designated products for all
product categories covered by the Energy Star program or the
Federal Energy Management Program, except in cases [where the
agency] where the head of the agency ordering a product
specifies in [writing that no Energy Star product or FEMP
designated product is available to meet the buyer's functional
requirements, or] writing that no Energy Star product or FEMP
designated product is cost-effective for the intended
application over the life of the product, taking energy cost
savings into account.
* * * * * * *
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ENERGY CONSERVATION AND PRODUCTION ACT
* * * * * * *
TITLE III--ENERGY CONSERVATION STANDARDS FOR NEW BUILDINGS
* * * * * * *
DEFINITIONS
Sec. 303. As used in this title:
(1) * * *
* * * * * * *
(6) The term ``Federal building'' means any building
to be constructed by, or for the use of, any Federal
agency [which is not legally subject to State or local
building codes or similar requirements.]. Such term
shall include buildings built for the purpose of being
leased by a Federal agency, and privatized military
housing.
* * * * * * *
(17) The term ``major renovation'' means the
renovation of a major component or substantial
structural part of a building that materially increases
the value of the building, substantially prolongs the
useful life of the building, or adapts the building to
a new or different use.
* * * * * * *
SEC. 305. FEDERAL BUILDING ENERGY EFFICIENCY STANDARDS.
(a)(1) * * *
* * * * * * *
(3)(A) * * *
* * * * * * *
(D) Not later than 1 year after the date of enactment of the
Carbon-Neutral Government Act of 2007, the Secretary shall
establish, by rule, revised Federal building energy efficiency
performance standards that require that:
(i) For new Federal buildings and Federal buildings
undergoing major renovations:
(I) The buildings shall be designed so that
the fossil fuel-generated energy consumption of
the buildings is reduced, as compared with such
energy consumption by a similar building in
fiscal year 2003 (as measured by Commercial
Buildings Energy Consumption Survey or
Residential Energy Consumption Survey data from
the Energy Information Agency), by the
percentage specified in the following table:
Fiscal Year Percentage Reduction
2010...................................................... 60
2015...................................................... 70
2020...................................................... 80
2025...................................................... 90
2030...................................................... 100.
(II) Sustainable design principles shall be
applied to the siting, design, and construction
of such buildings. For building types for which
the United States Green Building Council
Leadership in Energy and Environmental Design
(LEED) certification for New Construction and
Major Renovation is applicable, such buildings
shall be designed to meet, at a minimum, the
LEED silver level standard (or any successor
standard thereto), or if any additional capital
cost is projected to be recoverable through
energy and other operational cost savings
within 10 years, the LEED gold level standard
(or any successor standard thereto).
(ii) In addition to any use of water conservation
technologies otherwise required by this section, water
conservation technologies shall be applied to the
extent that the technologies are life-cycle cost-
effective.
* * * * * * *
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TITLE 40, UNITED STATES CODE
* * * * * * *
SUBTITLE I--FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES
* * * * * * *
CHAPTER 5--PROPERTY MANAGEMENT
* * * * * * *
SUBCHAPTER I--PROCUREMENT AND WAREHOUSING
* * * * * * *
Sec. 501. Services for executive agencies
(a) * * *
(b) Procurement and Supply.--
(1) Functions.--
(A) * * *
(B) Public utility contracts.--[A contract]
Except as provided in subparagraph (C), a
contract for public utility services may be
made for a period of not more than 10 years.
(C) Renewable energy contracts.--A contract
for renewable energy may be made for a period
of not more than 20 years. For the purposes of
this subparagraph, the term ``renewable
energy'' has the meaning given that term in
section 203(b) of the Energy Policy Act of 2005
(42 U.S.C. 15852(b)(2)), except that energy
generated from municipal solid waste shall not
be considered renewable energy.
* * * * * * *
ADDITIONAL VIEWS
H.R. 2635, the Carbon-Neutral Government Act of 2007, is a
bold effort to put the Federal Govenment in a leadership
position in mitigating the build up of carbon dioxide in our
atmosphere. We agree with Chairman Waxman that the Federal
Government must be proactive and take an aggressive leadership
role in this effort to mitigate the harmful effects of climate
change.
While H.R. 2635 was ultimately agreed to by unanimous
consent, several Members of the Committee expressed
reservations about the bill because of the ``judicial review''
provisions. Several Members of the Committee simply preferred
these provisions be stricken from the bill. In response to
these concerns, Chairman Waxman engaged in an earnest dialogue
with us to address these concerns.
While we wholeheartedly acknowledge that through this
collaborative process the ``judicial review'' provisions have
been improved in scope and application and other significant
safeguards have been put in place to protect against strategic
behavior on the part of plaintiff's attorneys, some Members
remain unenthusiastic about including the revised provisions.
We know there will be further study and consideration of
these provisions--particularly by the Committee on the
Judiciary--in light of the potential burden the bill could
place on the Federal judicial system, the ``standing'' issues
involved, and the potential precedent setting nature of the
legislation. We welcome the necessary further review and debate
by the Judiciary Committee (and others as needed) on the issues
raised by this bill.
Tom Davis,
Darrell Issa,
Brian Bilbray,
Patrick McHenry.