[House Report 108-78]
[From the U.S. Government Publishing Office]



108th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                             108-78, Part 1

======================================================================



 
          FEDERAL GOVERNMENT ENERGY MANAGEMENT IMPROVEMENT ACT

                                _______
                                

                 April 29, 2003.--Ordered to be printed

                                _______
                                

  Mr. Tom Davis of Virginia, from the Committee on Government Reform, 
                        submitted the following

                              R E P O R T

                        [To accompany H.R. 1346]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Government Reform, to whom was referred 
the bill (H.R. 1346) to amend the Office of Federal Procurement 
Policy Act to provide an additional function of the 
Administrator for Federal Procurement Policy relating to 
encouraging Federal procurement policies that enhance energy 
efficiency, having considered the same, report favorably 
thereon with an amendment and recommend that the bill as 
amended do pass.

                                CONTENTS

                                                                   Page
Purpose and Summary..............................................    10
Background and Need for the Legislation..........................    10
Hearings.........................................................    11
Committee Consideration..........................................    11
Committee Oversight Findings.....................................    11
Performance Goals and Objectives.................................    11
New Budget Authority and Tax Expenditures........................    11
Congressional Budget Office Cost Estimate........................    11
Constitutional Authority Statement...............................    15
Section-by-Section Analysis and Discussion.......................    15
Changes in Existing Law Made by the Bill, as Reported............    19

    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 ``Federal Government 
Energy Management Improvement Act''.
  (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.

                      TITLE I--FEDERAL FACILITIES

Sec. 101. Energy management requirements.
Sec. 102. Energy use measurement and accountability.
Sec. 103. Energy savings performance contracts.
Sec. 104. Federal agency participation in demand reduction programs.

                        TITLE II--FEDERAL FLEETS

Sec. 201. Waivers of alternative fueled vehicle fueling requirement.
Sec. 202. Study on reducing petroleum consumption.
Sec. 203. Hybrid vehicles.

                     TITLE III--FEDERAL PROCUREMENT

Sec. 301. Procurement of energy efficient products.
Sec. 302. Increased use of recovered mineral component in federally 
funded projects involving procurement of cement or concrete.
Sec. 303. Participation of small business concerns.
Sec. 304. Amendment to Buy Indian Act.
Sec. 305. Buy American.

                       TITLE IV--FEDERAL WORKERS

Sec. 401. Telecommuting study.
Sec. 402. Elimination of pension offset.

                      TITLE I--FEDERAL FACILITIES

SEC. 101. ENERGY MANAGEMENT REQUIREMENTS.

  (a) Energy Reduction Goals.--
          (1) Amendment.--Section 543(a)(1) of the National Energy 
        Conservation Policy Act (42 U.S.C. 8253(a)(1)) is amended by 
        striking ``its Federal buildings so that'' and all that follows 
        through the end and inserting ``the Federal buildings of the 
        agency (including each industrial or laboratory facility) so 
        that the energy consumption per gross square foot of the 
        Federal buildings of the agency in fiscal years 2004 through 
        2013 is reduced, as compared with the energy consumption per 
        gross square foot of the Federal buildings of the agency in 
        fiscal year 2001, by the percentage specified in the following 
        table:

  ``Fiscal Year                                    Percentage reduction
                2004.......................................          2 
                2005.......................................          4 
                2006.......................................          6 
                2007.......................................          8 
                2008.......................................         10 
                2009.......................................         12 
                2010.......................................         14 
                2011.......................................         16 
                2012.......................................         18 
                2013.......................................      20.''.
          (2) Reporting baseline.--The energy reduction goals and 
        baseline established in paragraph (1) of section 543(a) of the 
        National Energy Conservation Policy Act, as amended by 
        paragraph (1) of this subsection, supersede all previous goals 
        and baselines under such paragraph, and related reporting 
        requirements.
  (b) Review and Revision of Energy Performance Requirement.--Section 
543(a) of the National Energy Conservation Policy Act (42 U.S.C. 
8253(a)) is further amended by adding at the end the following:
  ``(3) Not later than December 31, 2012, the Secretary shall review 
the results of the implementation of the energy performance requirement 
established under paragraph (1) and submit to Congress recommendations 
concerning energy performance requirements for fiscal years 2014 
through 2023.''.
  (c) Exclusions.--Section 543(c)(1) of the National Energy 
Conservation Policy Act (42 U.S.C. 8253(c)(1)) is amended by striking 
``An agency may exclude'' and all that follows through the end and 
inserting ``(A) An agency may exclude, from the energy performance 
requirement for a fiscal year established under subsection (a) and the 
energy management requirement established under subsection (b), any 
Federal building or collection of Federal buildings, if the head of the 
agency finds that--
          ``(i) compliance with those requirements would be 
        impracticable;
          ``(ii) the agency has completed and submitted all federally 
        required energy management reports;
          ``(iii) the agency has achieved compliance with the energy 
        efficiency requirements of this Act, the Energy Policy Act of 
        1992, Executive Orders, and other Federal law; and
          ``(iv) the agency has implemented all practicable, life cycle 
        cost-effective projects with respect to the Federal building or 
        collection of Federal buildings to be excluded.
  ``(B) A finding of impracticability under subparagraph (A)(i) shall 
be based on--
          ``(i) the energy intensiveness of activities carried out in 
        the Federal building or collection of Federal buildings; or
          ``(ii) the fact that the Federal building or collection of 
        Federal buildings is used in the performance of a national 
        security function.''.
  (d) Review by Secretary.--Section 543(c)(2) of the National Energy 
Conservation Policy Act (42 U.S.C. 8253(c)(2)) is amended--
          (1) by striking ``impracticability standards'' and inserting 
        ``standards for exclusion''; and
          (2) by striking ``a finding of impracticability'' and 
        inserting ``the exclusion''.
  (e) Criteria.--Section 543(c) of the National Energy Conservation 
Policy Act (42 U.S.C. 8253(c)) is further amended by adding at the end 
the following:
  ``(3) Not later than 180 days after the date of enactment of this 
paragraph, the Secretary shall issue guidelines that establish criteria 
for exclusions under paragraph (1).''.
  (f) Retention of Energy Savings.--Section 546 of the National Energy 
Conservation Policy Act (42 U.S.C. 8256) is amended by adding at the 
end the following new subsection:
  ``(e) Retention of Energy Savings.--An agency may retain any funds 
appropriated to that agency for energy expenditures, at buildings 
subject to the requirements of section 543(a) and (b), that are not 
made because of energy savings. Except as otherwise provided by law, 
such funds may be used only for energy efficiency or unconventional and 
renewable energy resources projects.''.
  (g) Reports.--Section 548(b) of the National Energy Conservation 
Policy Act (42 U.S.C. 8258(b)) is amended--
          (1) in the subsection heading, by inserting ``the President 
        and'' before ``Congress''; and
          (2) by inserting ``President and'' before ``Congress''.
  (h) Conforming Amendment.--Section 550(d) of the National Energy 
Conservation Policy Act (42 U.S.C. 8258b(d)) is amended in the second 
sentence by striking ``the 20 percent reduction goal established under 
section 543(a) of the National Energy Conservation Policy Act (42 
U.S.C. 8253(a)).'' and inserting ``each of the energy reduction goals 
established under section 543(a).''.

SEC. 102. ENERGY USE MEASUREMENT AND ACCOUNTABILITY.

  Section 543 of the National Energy Conservation Policy Act (42 U.S.C. 
8253) is further amended by adding at the end the following:
  ``(e) Metering of Energy Use.--
          ``(1) Deadline.--By October 1, 2010, 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 or submetered. 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. Such data shall be 
        incorporated into existing Federal energy tracking systems and 
        made available to Federal facility energy managers.
          ``(2) Guidelines.--
                  ``(A) In general.--Not later than 180 days after the 
                date of enactment of this subsection, the Secretary, in 
                consultation with the Department of Defense, the 
                General Services Administration, representatives from 
                the metering industry, utility industry, energy 
                services industry, energy efficiency industry, national 
                laboratories, universities, and Federal facility energy 
                managers, shall establish guidelines for agencies to 
                carry out paragraph (1).
                  ``(B) Requirements for guidelines.--The guidelines 
                shall--
                          ``(i) take into consideration--
                                  ``(I) the cost of metering and 
                                submetering and the reduced cost of 
                                operation and maintenance expected to 
                                result from metering and submetering;
                                  ``(II) the extent to which metering 
                                and submetering are expected to result 
                                in increased potential for energy 
                                management, increased potential for 
                                energy savings and energy efficiency 
                                improvement, and cost and energy 
                                savings due to utility contract 
                                aggregation; and
                                  ``(III) the measurement and 
                                verification protocols of the 
                                Department of Energy;
                          ``(ii) include recommendations concerning the 
                        amount of funds and the number of trained 
                        personnel necessary to gather and use the 
                        metering information to track and reduce energy 
                        use;
                          ``(iii) establish priorities for types and 
                        locations of buildings to be metered and 
                        submetered based on cost-effectiveness and a 
                        schedule of one or more dates, not later than 1 
                        year after the date of issuance of the 
                        guidelines, on which the requirements specified 
                        in paragraph (1) shall take effect; and
                          ``(iv) establish exclusions from the 
                        requirements specified in paragraph (1) based 
                        on the de minimis quantity of energy use of a 
                        Federal building, industrial process, or 
                        structure.
          ``(3) Plan.--No later than 6 months after the date guidelines 
        are established under paragraph (2), in a report submitted by 
        the agency under section 548(a), each agency shall submit to 
        the Secretary a plan describing how the agency will implement 
        the requirements of paragraph (1), including (A) how the agency 
        will designate personnel primarily responsible for achieving 
        the requirements and (B) demonstration by the agency, complete 
        with documentation, of any finding that advanced meters or 
        advanced metering devices, as defined in paragraph (1), are not 
        practicable.''.

SEC. 103. ENERGY SAVINGS PERFORMANCE CONTRACTS.

  (a) Permanent Extension.--Section 801(c) of the National Energy 
Conservation Policy Act (42 U.S.C. 8287(c)) is repealed.
  (b) Replacement Facilities.--Section 801(a) of the National Energy 
Conservation Policy Act (42 U.S.C. 8287(a)) is amended by adding at the 
end the following new paragraph:
  ``(3)(A) In the case of an energy savings contract or energy savings 
performance contract providing for energy savings through the 
construction and operation of one or more buildings or facilities to 
replace one or more existing buildings or facilities, benefits 
ancillary to the purpose of such contract under paragraph (1) may 
include savings resulting from reduced costs of operation and 
maintenance at such replacement buildings or facilities when compared 
with costs of operation and maintenance at the buildings or facilities 
being replaced, established through a methodology set forth in the 
contract.
  ``(B) Notwithstanding paragraph (2)(B), aggregate annual payments by 
an agency under an energy savings contract or energy savings 
performance contract referred to in subparagraph (A) may take into 
account (through the procedures developed pursuant to this section) 
savings resulting from reduced costs of operation and maintenance as 
described in that subparagraph.''.
  (c) Energy Savings.--Section 804(2) of the National Energy 
Conservation Policy Act (42 U.S.C. 8287c(2)) is amended to read as 
follows:
          ``(2) The term `energy savings' means--
                  ``(A) a reduction in the cost of energy or water, 
                from a base cost established through a methodology set 
                forth in the contract, used in an existing federally 
                owned building or buildings or other federally owned 
                facilities as a result of--
                          ``(i) the lease or purchase of operating 
                        equipment, improvements, altered operation and 
                        maintenance, or technical services;
                          ``(ii) the increased efficient use of 
                        existing energy sources by cogeneration or heat 
                        recovery, excluding any cogeneration process 
                        for other than a federally owned building or 
                        buildings or other federally owned facilities; 
                        or
                          ``(iii) the increased efficient use of 
                        existing water sources; or
                  ``(B) in the case of a replacement building or 
                facility described in section 801(a)(3), a reduction in 
                the cost of energy, from a base cost established 
                through a methodology set forth in the contract, that 
                would otherwise be utilized in one or more existing 
                federally owned buildings or other federally owned 
                facilities by reason of the construction and operation 
                of the replacement building or facility.''.
  (d) Energy Savings Contract.--Section 804(3) of the National Energy 
Conservation Policy Act (42 U.S.C. 8287c(3)) is amended to read as 
follows:
          ``(3) The terms `energy savings contract' and `energy savings 
        performance contract' mean a contract (including a utility 
        energy services contract) which provides for--
                  ``(A) the performance of services for the design, 
                acquisition, installation, testing, operation, and, 
                where appropriate, maintenance and repair, of an 
                identified energy or water conservation measure or 
                series of measures at one or more locations; or
                  ``(B) energy savings through the construction and 
                operation of one or more buildings or facilities to 
                replace one or more existing buildings or facilities.
        Such contracts shall, with respect to an agency facility that 
        is a public building as such term is defined in section 13(1) 
        of the Public Buildings Act of 1959 (40 U.S.C. 612(1)), be in 
        compliance with the prospectus requirements and procedures of 
        section 7 of the Public Buildings Act of 1959 (40 U.S.C. 
        606).''.
  (e) Energy or Water Conservation Measure.--Section 804(4) of the 
National Energy Conservation Policy Act (42 U.S.C. 8287c(4)) is amended 
to read as follows:
          ``(4) The term `energy or water conservation measure' means--
                  ``(A) an energy conservation measure, as defined in 
                section 551(4) (42 U.S.C. 8259(4)); or
                  ``(B) a water conservation measure that improves 
                water efficiency, is life cycle cost-effective, and 
                involves water conservation, water recycling or reuse, 
                more efficient treatment of wastewater or stormwater, 
                improvements in operation or maintenance efficiencies, 
                retrofit activities, or other related activities, not 
                at a Federal hydroelectric facility.''.
  (f) Review.--Within 180 days after the date of the enactment of this 
section, the Secretary of Energy shall complete a review of the Energy 
Savings Performance Contract program to identify statutory, regulatory, 
and administrative obstacles that prevent Federal agencies from fully 
utilizing the program. In addition, this review shall identify all 
areas for increasing program flexibility and effectiveness, including 
audit and measurement verification requirements, accounting for energy 
use in determining savings, contracting requirements, and energy 
efficiency services covered. The Secretary shall report these findings 
to the Committees on Energy and Commerce and Government Reform of the 
House of Representatives and the Committees on Energy and Natural 
Resources and Governmental Affairs of the Senate, and shall implement 
identified administrative and regulatory changes to increase program 
flexibility and effectiveness to the extent that such changes are 
consistent with statutory authority.

SEC. 104. FEDERAL AGENCY PARTICIPATION IN DEMAND REDUCTION PROGRAMS.

  Section 546(c) of the National Energy Conservation Policy Act (42 
U.S.C. 8256(c)) is amended by adding at the end of the following new 
paragraph:
  ``(6) Federal agencies are encouraged to participate in State or 
regional demand side reduction programs. The availability of such 
programs, including measures employing onsite generation, and the 
savings resulting from such participation, should be included in the 
evaluation of energy options for Federal facilities.''.

                        TITLE II--FEDERAL FLEETS

SEC. 201. WAIVERS OF ALTERNATIVE FUELED VEHICLE FUELING REQUIREMENT.

  Section 400AA(a)(3)(E) of the Energy Policy and Conservation Act (42 
U.S.C. 6374(a)(3)(E)) is amended to read as follows:
  ``(E)(i) Dual fueled vehicles acquired pursuant to this section shall 
be operated on alternative fuels unless the Secretary determines that 
an agency needs a waiver of such requirement for vehicles in the fleet 
of the agency in a particular geographic area where--
          ``(I) the alternative fuel otherwise required to be used in 
        the vehicle is not reasonably available to retail purchasers of 
        the fuel, as certified to the Secretary by the head of the 
        agency; or
          ``(II) the cost of the alternative fuel otherwise required to 
        be used in the vehicle is unreasonably more expensive compared 
        to gasoline, as certified by the head of the agency.
  ``(ii) The Secretary shall monitor compliance with this subparagraph 
by all such fleets and shall report annually to the Congress on the 
extent to which the requirements of this subparagraph are being 
achieved. The report shall include information on annual reductions 
achieved of petroleum-based fuels and the problems, if any, encountered 
in acquiring alternative fuels.''.

SEC. 202. STUDY ON REDUCING PETROLEUM CONSUMPTION.

  (a) In General.--The Administrator of General Services, in 
cooperation with the Secretary of Energy, shall conduct a study to 
consider the merits of establishing performance measures to guide the 
reduction of petroleum consumption by Federal fleets.
  (b) Matters To Be Addressed.--The study shall assess the feasibility 
of performance measures--
          (1) to enable agency and congressional decisionmakers to 
        establish annual and long-term performance goals to define the 
        level of petroleum consumption reduction to be achieved by 
        Federal fleets;
          (2) to improve the effectiveness and accountability of 
        Federal efforts to reduce petroleum consumption and dependency;
          (3) to enhance decisionmaking by providing objective 
        information on achieving performance objectives; and
          (4) to provide an alternative to the mandated alternative 
        fueled vehicle requirements in section 303 of the Energy Policy 
        Act of 1992 (42 U.S.C. 13212).
  (c) Report.--Not later than 12 months after the date of enactment of 
this Act, the Administrator shall submit to the Committees on 
Environment and Public Works and Governmental Affairs of the Senate and 
the Committees on Energy and Commerce and Government Reform of the 
House of Representatives a report on the study.

SEC. 203. HYBRID VEHICLES.

  (a) In General.--Section 303(b)(1) of the Energy Policy Act of 1992 
(42 U.S.C. 13212(b)(1)) is amended by striking subparagraph (D) and the 
matter after subparagraph (D) and inserting the following:
          ``(D) 75 percent in fiscal years 1999 through 2003,
shall be alternative fueled vehicles. For fiscal years 2004 and 
thereafter, of the total number of vehicles acquired by a Federal 
fleet, at least 75 percent shall be alternative fueled vehicles or 
future technology vehicles.''.
  (b) Exemption.--Such section 303(b) is further amended by adding at 
the end the following new paragraph:
  ``(4) For the period for which a Federal fleet is operating under the 
exemption provided in section 400AA(a)(3)(E) of the Energy Policy and 
Conservation Act (42 U.S.C. 6374(a)(3)(E)), and where future technology 
vehicles are available that would meet the agency's operational 
requirements for such fleet but the agency chooses not to acquire such 
vehicles, acquisitions of dual fueled vehicles for that fleet shall not 
count toward satisfaction of the requirements in this subsection.''.
  (c) Definition.--Section 301 of such Act is amended--
          (1) by striking ``and'' at the end of paragraph (13);
          (2) by striking the period at the end of paragraph (14) and 
        by inserting a semicolon; and
          (3) by adding at the end the following:
          ``(15) the term `future technology vehicle' means, for the 
        fiscal years 2004 through 2009, a qualified hybrid motor 
        vehicle, and for fiscal years after 2009, a vehicle--
          ``(A) that represents emerging technology that does not yet 
        have substantial market penetration;
          ``(B) for which Federal Government acquisitions can lead the 
        market;
          ``(C) that achieves significant reductions in air emissions 
        and oil use compared to new vehicles that do have substantial 
        market penetration; and
          ``(D) that in no event achieves reductions in air emissions 
        and oil use that are less than a qualified hybrid motor 
        vehicle,
        as defined by the Secretary through guidance;
          ``(16) the term `qualified hybrid motor vehicle' means a 
        passenger automobile, light duty truck, or medium duty 
        passenger vehicle as defined in regulations issued by the 
        Administrator--
                  ``(A) which draws propulsion energy from--
                          ``(i) an internal combustion or heat engine 
                        using combustible fuel; and
                          ``(ii) a rechargeable onboard energy storage 
                        system which operates at no less than 100 volts 
                        and which provides a percentage of maximum 
                        available power of at least 5 percent;
                  ``(B) which has received a certificate that such 
                vehicle meets or exceeds the Bin 5 Tier II emission 
                level established in regulations prescribed by the 
                Administrator under section 202(i) of the Clean Air Act 
                for that make and model year vehicle; and
                  ``(C) which achieves at least 140 percent of the 
                average 2002 model year city fuel economy for passenger 
                automobiles in the same vehicle inertia weight class, 
                if the vehicle is a passenger automobile, or for light 
                duty trucks in the same vehicle inertia weight class, 
                if the vehicle is a light duty truck, or for medium 
                duty passenger vehicles, if the vehicle is a medium 
                duty passenger vehicle, as determined by the 
                Environmental Protection Agency according to the 
                following vehicle inertia weight classes: 1,500 and 
                1,750 lbs (calculated based on the 1,750 lbs weight 
                class), 2,000 lbs, 2,250 lbs, 2,500 lbs, 2,750 lbs, 
                3,000 lbs, 3,500 lbs, 4,000 lbs, 4,500 lbs, 5,000 lbs, 
                5,500 lbs, 6,000 lbs, 6,500 lbs, 7,000 to 8,500 lbs, 
                and 8,500 to 10,000 lbs;
          ``(17) the term `percentage of maximum available power' means 
        the maximum power available from the rechargeable energy 
        storage system, during a standard 10 second pulse power or 
        equivalent test, divided by the sum of such maximum power and 
        the SAE net power of the internal combustion or heat engine; 
        and
          ``(18) the term `vehicle inertia weight class' has the same 
        meaning as when defined in regulations prescribed by the 
        Administrator for purposes of the administration of title II of 
        the Clean Air Act (42 U.S.C. 7521 et seq.).''.
  (d) Allocation of Incremental Costs.--Subsection (c) of such section 
303 is amended to read as follows:
  ``(c) Allocation of Incremental Costs.--The General Services 
Administration and any other Federal agency that procures motor 
vehicles for distribution to other Federal agencies shall allocate the 
incremental cost of alternative fueled vehicles and future technology 
vehicles over the cost of comparable internal combustion gasoline 
vehicles across the entire fleet of motor vehicles distributed by such 
agency in any fiscal year.''.

                     TITLE III--FEDERAL PROCUREMENT

SEC. 301. PROCUREMENT OF ENERGY EFFICIENT PRODUCTS.

  (a) Requirements.--Part 3 of title V of the National Energy 
Conservation Policy Act is amended by adding at the end the following:

``SEC. 552. FEDERAL PROCUREMENT OF ENERGY EFFICIENT PRODUCTS.

  ``(a) Definitions.--In this section:
          ``(1) Energy star product.--The term `Energy Star product' 
        means a product that is rated for energy efficiency under an 
        Energy Star program.
          ``(2) Energy star program.--The term `Energy Star program' 
        means the program established by section 324A of the Energy 
        Policy and Conservation Act.
          ``(3) Executive agency.--The term `executive agency' has the 
        meaning given the term in section 4 of the Office of Federal 
        Procurement Policy Act (41 U.S.C. 403).
          ``(4) FEMP designated product.--The term `FEMP designated 
        product' means a product that is designated under the Federal 
        Energy Management Program of the Department of Energy as being 
        among the highest 25 percent of equivalent products for energy 
        efficiency.
  ``(b) Procurement of Energy Efficient Products.--
          ``(1) Requirement.--To meet the requirements of an executive 
        agency for an energy consuming product, the head of the 
        executive agency shall, except as provided in paragraph (2), 
        procure--
                  ``(A) an Energy Star product; or
                  ``(B) a FEMP designated product.
          ``(2) Exceptions.--The head of an executive agency is not 
        required to procure an Energy Star product or FEMP designated 
        product under paragraph (1) if the head of the executive agency 
        finds in writing that--
                  ``(A) 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 executive agency.
          ``(3) Procurement planning.--The head of an executive agency 
        shall incorporate into the specifications for all procurements 
        involving energy consuming products and systems, including 
        guide specifications, project specifications, and construction, 
        renovation, and services contracts that include provision of 
        energy consuming products and systems, and into the factors for 
        the evaluation of offers received for the procurement, criteria 
        for energy efficiency that are consistent with the criteria 
        used for rating Energy Star products and for rating FEMP 
        designated products.
  ``(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 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 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 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.
  ``(d) Designation of Electric Motors.--In the case of electric motors 
of 1 to 500 horsepower, agencies shall select only premium efficient 
motors that meet a standard designated by the Secretary. The Secretary 
shall designate such a standard within 120 days after the date of the 
enactment of this section, after considering the recommendations of 
associated electric motor manufacturers and energy efficiency groups.
  ``(e) Regulations.--Not later than 180 days after the date of the 
enactment of this section, the Secretary shall issue guidelines to 
carry out this section.''.
  (b) Conforming Amendment.--The table of contents in section 1(b) of 
the National Energy Conservation Policy Act (42 U.S.C. 8201 note) is 
amended by inserting after the item relating to section 551 the 
following:

``Sec. 552. Federal procurement of energy efficient products.''.

SEC. 302. INCREASED USE OF RECOVERED MINERAL COMPONENT IN FEDERALLY 
                    FUNDED PROJECTS INVOLVING PROCUREMENT OF CEMENT OR 
                    CONCRETE.

  (a) Amendment.--Subtitle F of the Solid Waste Disposal Act (42 U.S.C. 
6961 et seq.) is amended by adding at the end the following new 
section:
  ``increased use of recovered mineral component in federally funded 
          projects involving procurement of cement or concrete
  ``Sec. 6005. (a) Definitions.--In this section:
          ``(1) Agency head.--The term `agency head' means--
                  ``(A) the Secretary of Transportation; and
                  ``(B) the head of each other Federal agency that on a 
                regular basis procures, or provides Federal funds to 
                pay or assist in paying the cost of procuring, material 
                for cement or concrete projects.
          ``(2) Cement or concrete project.--The term `cement or 
        concrete project' means a project for the construction or 
        maintenance of a highway or other transportation facility or a 
        Federal, State, or local government building or other public 
        facility that--
                  ``(A) involves the procurement of cement or concrete; 
                and
                  ``(B) is carried out in whole or in part using 
                Federal funds.
          ``(3) Recovered mineral component.--The term `recovered 
        mineral component' means--
                  ``(A) ground granulated blast furnace slag;
                  ``(B) coal combustion fly ash; and
                  ``(C) any other waste material or byproduct recovered 
                or diverted from solid waste that the Administrator, in 
                consultation with an agency head, determines should be 
                treated as recovered mineral component under this 
                section for use in cement or concrete projects paid 
                for, in whole or in part, by the agency head.
  ``(b) Implementation of Requirements.--
          ``(1) In general.--Not later than 1 year after the date of 
        enactment of this section, the Administrator and each agency 
        head shall take such actions as are necessary to implement 
        fully all procurement requirements and incentives in effect as 
        of the date of enactment of this section (including guidelines 
        under section 6002) that provide for the use of cement and 
        concrete incorporating recovered mineral component in cement or 
        concrete projects.
          ``(2) Priority.--In carrying out paragraph (1) an agency head 
        shall give priority to achieving greater use of recovered 
        mineral component in cement or concrete projects for which 
        recovered mineral components historically have not been used or 
        have been used only minimally.
          ``(3) Conformance.--The Administrator and each agency head 
        shall carry out this subsection in accordance with section 
        6002.
  ``(c) Full Implementation Study.--
          ``(1) In general.--The Administrator, in cooperation with the 
        Secretary of Transportation and the Secretary of Energy, shall 
        conduct a study to determine the extent to which current 
        procurement requirements, when fully implemented in accordance 
        with subsection (b), may realize energy savings and 
        environmental benefits attainable with substitution of 
        recovered mineral component in cement used in cement or 
        concrete projects.
          ``(2) Matters to be addressed.--The study shall--
                  ``(A) quantify the extent to which recovered mineral 
                components are being substituted for Portland cement, 
                particularly as a result of current procurement 
                requirements, and the energy savings and environmental 
                benefits associated with that substitution;
                  ``(B) identify all barriers in procurement 
                requirements to fuller realization of energy savings 
                and environmental benefits, including barriers 
                resulting from exceptions from current law; and
                  ``(C)(i) identify potential mechanisms to achieve 
                greater substitution of recovered mineral component in 
                types of cement or concrete projects forwhich recovered 
mineral components historically have not been used or have been used 
only minimally;
                  ``(ii) evaluate the feasibility of establishing 
                guidelines or standards for optimized substitution 
                rates of recovered mineral component in those cement or 
                concrete projects; and
                  ``(iii) identify any potential environmental or 
                economic effects that may result from greater 
                substitution of recovered mineral component in those 
                cement or concrete projects.
          ``(3) Report.--Not later than 30 months after the date of 
        enactment of this section, the Administrator shall submit to 
        the Committee on Appropriations, Committee on Environment and 
        Public Works, and Committee on Governmental Affairs of the 
        Senate and the Committee on Appropriations, Committee on Energy 
        and Commerce, Committee on Transportation and Infrastructure, 
        and Committee on Government Reform of the House of 
        Representatives a report on the study.
  ``(d) Additional Procurement Requirements.--Unless the study 
conducted under subsection (c) identifies any effects or other problems 
described in subsection (c)(2)(C)(iii) that warrant further review or 
delay, the Administrator and each agency head shall, within 1 year of 
the release of the report in accordance with subsection (c)(3), take 
additional actions authorized under this Act to establish procurement 
requirements and incentives that provide for the use of cement and 
concrete with increased substitution of recovered mineral component in 
the construction and maintenance of cement or concrete projects, so as 
to--
          ``(1) realize more fully the energy savings and environmental 
        benefits associated with increased substitution; and
          ``(2) eliminate barriers identified under subsection (c).
  ``(e) Effect of Section.--Nothing in this section affects the 
requirements of section 6002 (including the guidelines and 
specifications for implementing those requirements).''.
  (b) Table of Contents Amendment.--The table of contents of the Solid 
Waste Disposal Act is amended by adding after the item relating to 
section 6004 the following new item:

``Sec. 6005. Increased use of recovered mineral component in federally 
funded projects involving procurement of cement or concrete.''.

SEC. 303. PARTICIPATION OF SMALL BUSINESS CONCERNS.

  (a) Sense of Congress.--It is the sense of Congress that an Alaska 
natural gas transportation project will provide significant economic 
benefits to the United States and Canada. In order to maximize those 
benefits, Congress urges the sponsors of the pipeline project to 
maximize, to the maximum extent practicable, the participation of small 
business concerns in contracts and subcontracts awarded in carrying out 
the project.
  (b) Study.--
          (1) In general.--The Comptroller General shall conduct a 
        study on the extent to which small business concerns 
        participate in the construction of oil and gas pipelines in the 
        United States.
          (2) Report.--Not later that 1 year after the date of 
        enactment of this Act, the Comptroller General shall transmit 
        to Congress a report containing the results of the study.
          (3) Updates.--The Comptroller General shall update the study 
        at least once every 5 years and transmit to Congress a report 
        containing the results of the update.
          (4) Applicability.--After the date of completion of the 
        construction of an Alaska natural gas transportation project, 
        this subsection shall no longer apply.
  (c) Small Business Concern Defined.--In this section, the term 
``small business concern'' has the meaning given such term in section 
3(a) of the Small Business Act (15 U.S.C. 632(a)).

SEC. 304. AMENDMENT TO BUY INDIAN ACT.

  Section 23 of the Act of June 25, 1910 (25 U.S.C. 47; commonly known 
as the ``Buy Indian Act'') is amended by inserting ``energy products, 
and energy by-products,'' after ``printing,''.

SEC. 305. BUY AMERICAN.

  It is the sense of Congress that no purchase of supplies, other than 
for the construction, alteration, or repair of any public building or 
public work in the United States, should be made from a person or 
entity found in violation of a certificate provided by the person or 
entity pursuant to the Buy American Act (41 U.S.C. 10a-10c).

                       TITLE IV--FEDERAL WORKERS

SEC. 401. TELECOMMUTING STUDY.

  (a) Study Required.--The Secretary, in consultation with the 
Commission, the Director of the Office of Personnel Management, the 
Administrator of General Services, and the Administrator of NTIA, shall 
conduct a study of the energy conservation implications of the 
widespread adoption of telecommuting by Federal employees in the United 
States.
  (b) Required Subjects of Study.--The study required by subsection (a) 
shall analyze the following subjects in relation to the energy saving 
potential of telecommuting by Federal employees:
          (1) Reductions of energy use and energy costs in commuting 
        and regular office heating, cooling, and other operations.
          (2) Other energy reductions accomplished by telecommuting.
          (3) Existing regulatory barriers that hamper telecommuting, 
        including barriers to broadband telecommunications services 
        deployment.
          (4) Collateral benefits to the environment, family life, and 
        other values.
  (c) Report Required.--The Secretary shall submit to the President and 
the Congress a report on the study required by this section not later 
than 6 months after the date of the enactment of this Act. Such report 
shall include a description of the results of the analysis of each of 
the subjects described in subsection (b).
  (d) Definitions.--As used in this section:
          (1) Secretary.--The term ``Secretary'' means the Secretary of 
        Energy.
          (2) Commission.--The term ``Commission'' means the Federal 
        Communications Commission.
          (3) NTIA.--The term ``NTIA'' means the National 
        Telecommunications and Information Administration of the 
        Department of Commerce.
          (4) Telecommuting.--The term ``telecommuting'' means the 
        performance of work functions using communications 
        technologies, thereby eliminating or substantially reducing the 
        need to commute to and from traditional worksites.
          (5) Federal employee.--The term ``Federal employee'' has the 
        meaning provided the term ``employee'' by section 2105 of title 
        5, United States Code.

SEC. 402. ELIMINATION OF PENSION OFFSET.

  Section 161 of the Atomic Energy Act of 1954 (42 U.S.C. 2201) is 
amended by adding at the end the following:
          ``y. exempt from the application of sections 8344 and 8468 of 
        title 5, United States Code, an annuitant who was formerly an 
        employee of the Commission who is hired by the Commission as a 
        consultant, if the Commission finds that the annuitant has a 
        skill that is critical to the performance of the duties of the 
        Commission.''.

                          Purpose and Summary

    H.R. 1346, as amended, would authorize the use of 
performance contracts as a cost-effective tool for improving 
federal agency efficiency; set standards for the procurement of 
federal vehicles, such as fuel requirements; set standards for 
energy consuming products purchased by the federal government; 
and make it easier for former civil servants with skills 
critical to energy conservation to re-enter the federal 
workforce as needed.

                Background and Need for the Legislation

    The Government Reform Committee has jurisdiction over 
government management (including the management of federal 
property such as buildings and vehicles), federal procurement 
policy and civil service policy. These issues are critical to 
any comprehensive energy policy legislation considered by the 
Congress. As such, leadership requested that the Government 
Reform Committee, in addition to all other congressional 
committees with legislative responsibility over energy policy, 
submit its energy policy provisions in preparation for a 
comprehensive bill.

                                Hearings

    On March 12, 2003, the Government Reform Committee held a 
hearing entitled ``Energy Efficiency Improvements in Federal 
Buildings and Vehicles.'' The purpose of the hearing was for 
the Committee to gain a better understanding of the 
government's progress in reducing energy consumption and 
achieving more efficient use of energy in federal facilities 
and vehicles. Witnesses at the hearing included The Honorable 
David Garman, Assistant Secretary, Energy Efficiency and 
Renewable Energy, United States Department of Energy; Paul 
Lynch, Assistant Commissioner, Business Operations, Public 
Buildings Service, United States General Services 
Administration; and William Rivers, Director, Federal Vehicles 
Policy Division, Office of Government-wide Policy, United 
States General Services Administration.

                        Committee Consideration

    On March 20, 2003, the Committee met in open session and 
ordered favorably reported the bill, H.R. 1346, as amended, by 
voice vote, a quorum being present.

                      Committee Oversight Findings

    In compliance with clause 3(c)(1) or rule XIII of the Rules 
of House of Representatives, the Committee reports that the 
findings and recommendations of the Committee, based on 
oversight activities under 2(b)(1) of rule X of the Rules of 
the House of Representatives, are incorporated in the 
descriptive portions of this report.

                    Performance Goals and Objectives

    H.R. 1346 does not authorize funding. Therefore, clause 
3(c)(4) of rule XIII of the Rules of the House of 
Representatives is inapplicable.

               New Budget Authority and Tax Expenditures

    Clause 3(c)(2) of House Rule XIII is inapplicable because 
this legislation does not provide new budgetary authority or 
increased tax expenditures.

               Congressional Budget Office Cost Estimate

    In compliance with clause 3(c)(3) of rule XIII of the Rules 
of the House of Representatives, the Committee sets forth, with 
respect to H.R. 1346, the following estimate and comparison 
prepared by the Director of the Congressional Budget Office 
under section 402 of the Congressional Budget Act of 1974:

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, April 7, 2003.
Hon. Tom Davis,
Chairman, Committee on Government Reform,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 1346, the Federal 
Government Energy Management Improvement Act.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Lisa Cash 
Driskill.
            Sincerely,
                                       Douglas Holtz-Eakin,
                                                          Director.
    Enclosure.

H.R. 1346--Federal Government Energy Management Improvement Act

    Summary: H.R. 1346 would amend several standards for energy 
efficiency and conservation throughout the federal government. 
Such standards would apply to federal buildings, vehicle 
fleets, and equipment procurement. The bill also would provide 
permanent authorization to use energy savings performance 
contracts (ESPCs) and would expand their use. The expansion 
would allow agencies to use an ESPC to construct replacement 
buildings by committing to pay private contractors a portion of 
the budget savings expected from reduced operations, 
maintenance, and energy costs at such new buildings. 
Additionally, the bill would require three new studies for the 
Congress.
    CBO estimates that the indefinite authorization and 
expansion of ESPCs would increase direct spending by about $75 
million in 2004 and $2.8 billion over the 2004-2013 period. 
Additionally, CBO estimates that, assuming appropriation of the 
necessary amounts, implementing H.R. 1346 would cost $80 
million in 2004 and $400 million over the 2004-2008 period.
    H.R. 1346 contains no intergovernmental mandates or 
private-sector mandates as defined in the Unfunded Mandates 
Reform Act (UMRA). Any costs incurred by state, local, or 
tribal governments would result from complying with conditions 
of federal aid.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of H.R. 1346 is shown in the following table. 
The costs of this legislation fall within budget functions 270 
(energy) and 800 (general government).

----------------------------------------------------------------------------------------------------------------
                                                                       By fiscal year, in millions of dollars--
                                                                    --------------------------------------------
                                                                       2004     2005     2006     2007     2008
----------------------------------------------------------------------------------------------------------------
                                  CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Electricity Metering at Federal Buildings:
    Estimated Authorization Level..................................       80       80       80       80       80
    Estimated Outlays..............................................       80       80       80       80       80

                                           CHANGES IN DIRECT SPENDING

Permanent Authorization of ESPCs:
    Estimated Budget Authority.....................................       75      104      107      109      111
    Estimated Outlays..............................................       64      100      106      109      111
Expansion of ESPCs:
    Estimated Budget Authority.....................................       35       70      105      140      175
    Estimated Outlays..............................................       11       42       77      112      147
Total Estimated Direct Spending Under H.R. 1346:
    Estimated Budget Authority.....................................      110      174      212      249      286
    Estimated Outlays..............................................       75      142      183      221      258
----------------------------------------------------------------------------------------------------------------
Note.--ESPCs = Energy Savings Performance Contracts.

    Basis of estimate: For this estimate, CBO assumes H.R. 1346 
will be enacted by the end of fiscal year 2003. We assume that 
the necessary amounts will be appropriated for each year, and 
that outlays will occur at historical rates for similar 
programs.

Spending subject to appropriation

    H.R. 1346 would establish energy conservation goals and 
requirements for the government, including, where practical, 
hourly electricity metering in all federal buildings by 2010. 
The bill also would require that three studies for the Congress 
be performed by various agencies. CBO estimates that 
implementing H.R. 1346 would cost $80 million in 2004 and $400 
million over the 2004-2008 period, assuming appropriation of 
the necessary funds.
    Energy Conservation at Federal Agencies. H.R. 1346 would 
amend several energy conservation goals and requirements for 
the federal government. Most of those goals, such as reducing 
energy use by 2 percent per year relative to 2000 consumption 
and purchasing energy-efficient products when economical, are 
being done under current executive orders. Where practical, the 
bill would require that hourly electricity meters be installed 
at all federal buildings by 2010. Such meters would provide 
data at least once daily and measure hourly consumption of 
electricity. The data would be available to facility energy 
managers.
    Based on information from the Department of Energy (DOE), 
we assume that it would only be economical to meter 20 percent 
of the government's inventory of 500,000 buildings and that 
installing meters would cost, on average, $4,000 per building. 
We assume that meters would be installed in 20,000 buildings 
per year until 2008, when the project would be complete. Thus, 
we estimate that implementing the metering provisions of H.R. 
1346 would cost $80 million in 2004 and $400 million over the 
2004-2008 period.
    Based on experience in the private sector, metering the 
hourly electricity use of buildings can lead to reduced energy 
consumption and reduce costs enough to recoup the cost of 
installing meters within two to four years. It is impossible 
that this requirement could lead to a future reduction in 
appropriations for federal building energy use, but any such 
savings would depend on how metering information is used by 
federal agencies. Additionally, metering can reveal where 
energy use is high, but capital investment and other changes in 
how federal buildings consumer energy would likely be needed to 
achieve savings. In any case, any savings are not likely to be 
significant over the next five years because most of the new 
metering and required capital investment would not be completed 
until the end of the period or after 2008.
    Studies by Federal Agencies. H.R. 1346 would require three 
separate studies for the Congress. Specifically it would 
require:
           DOE to study the energy conservation effects 
        of telecommuting;
           The General Services Administration (GSA) to 
        study the effects of reducing petroleum consumption in 
        federal fleets; and
           The General Accounting Office (GAO) to study 
        the participation of small business in the construction 
        of oil and gas pipelines.
    CBO estimates that it would cost about $150,000 per study 
and that all the studies would take one year to complete. Thus, 
we estimate that implementing those studies would cost about 
$450,000 in 2004, assuming the availability of appropriated 
funds.

Direct spending

    H.R. 1346 would provide permanent authorization for the use 
of energy savings performance contracts and expand their use. 
Overall, CBO estimates that those provisions would increase 
direct spending by $75 million in 2004 and $2.8 billion over 
the 2004-2013 period.
    Permanent Authorization of ESPCs. Currently, federal 
agencies can enter into an ESPC, a specific type of long-term 
contract, for the purchase of energy efficiency equipment, such 
as new windows and lighting. Using such equipment can reduce 
the energy costs for a facility. When using an ESPC, the 
savings from reduced energy bills are used to pay for the 
purchase of the new equipment over several years. The 
commitment to make such payments is made when the ESPC is 
entered into. Thus, consistent with governmentwide accounting 
principles, CBO believes that the budget should reflect that 
commitment as new obligations at the time that an ESPC is 
signed. Currently, agencies can use ESPCs to purchase new 
equipment over a 25-year period without an appropriation for 
the full amount of the purchase price.
    DOE estimates that agencies entered into ESPCs valued over 
$800 million since 1988. CBO estimates that, because the 
federal building inventory is aging, those contracts would 
continue to be used over time at roughly the same rate 
currently used, or $75 million in 2004 and increasing after 
that. Thus, we estimate that extending the authorization for 
ESPCs would incerase direct spending by about $64 million in 
2004 and $1.1 billion over the 2004-2013 period.
    Expanding ESPCs for Building Construction. H.R. 1346 would 
expand the use of such contracts to cover the purchase of a new 
building if the cost of the new building is less than the 
present value of estimated savings from lower costs of 
operations, maintenance, and energy consumption.
    A November 2000 report from GSA's Office of the Inspector 
General estimates that it would take several billion dollars to 
bring the federal building inventory up to appropriate 
operations, maintenance, and energy efficiency standards. Thus, 
we assume that the opportunity of cost savings that could be 
generated from reduced operations, maintenance, and energy 
expenses at new buildings would be significant. We expect that 
the new authority provided by the bill would be used only in a 
few cases in the first few years but that, as buildings 
continue to deteriorate and requirements for energy efficiency 
continue to increase, the authority would be used at an 
increasing rate.
    DOE has plans to use the new authority under this provision 
to build a new facility in New Mexico at an estimated cost of 
$35 million. While the precise number of new facilities planned 
for construction that could qualify for funding under the 
authority that would be provided by the bill cannot be 
determined at this time, CBO estimates that this new 
authoritywould be used at least 15 times over the next five years at an 
estimated cost of about $400 million over the 2004-2008 period. We 
expect that the use of the funding mechanism would grow after 2008 and 
that total spending over the 2004-2013 period would be about $1.7 
billion.
    Estimated impact on state, local, and tribal governments: 
H.R. 1346 contains no intergovernmental mandates as defined in 
UMRA. Section 302 of H.R. 1346 might impose some costs on 
recipients of federal grants by encouraging the increased use 
of certain recycled materials in federally funded construction 
projects that use cement or concrete, including highway 
construction projects. Since this provision would apply only to 
projects that receive federal funding, it is a condition of 
federal aid rather than a mandate.
    CBO cannot determine the exact costs or savings that states 
might realize as a result of this provision because of 
uncertainties in how the federal government would implement the 
new language. However, we do not expect federal agencies would 
make substantial changes to existing policies regarding the use 
of recycled materials, so the impact probably would be small. 
Those federal policies already encourage states to use recycled 
materials, and at least half of the states already have 
policies in place providing for their use in highway and 
construction projects. According to industry and government 
sources, states without such policies either already routinely 
use the materials or do not have a readily available source for 
the materials.
    Estimated impact on the private sector: This bill contains 
no new private-sector mandates as defined in UMRA.
    Estimate prepared by: Federal Costs: Lisa Cash Driskill; 
Impact on State, Local, and Tribal Governments: Greg Waring; 
and Impact on the Private Sector: Lauren Marks.
    Estimate approved by: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

                   Constitutional Authority Statement

    Pursuant to clause 3(d)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee finds the authority for 
this legislation in Article I, Section 8, Clauses 1 and 18 of 
the United States Constitution.

               Section-by-Section Analysis and Discussion


Section 1. Short title; table of contents

    This Act may be cited as the ``Federal Government Energy 
Management Improvement Act.''

                      TITLE I--FEDERAL FACILITIES

Section 101. Energy management requirements

    This section would establish percentage reductions in 
energy consumption by federal buildings for fiscal years 2004 
through 2013. In FY 2004, all federal buildings would have to 
consume 2% less energy per gross square foot, using FY2001 as a 
baseline. The percentage reduction would increase 2% every year 
through FY2013, the last year specified, when buildings would 
be required to consume 20% less than the FY2001 baseline.
    This section would provide a waiver for agency heads who 
determine that compliance with the requirements would be 
impracticable.
    Finally, this section would allow agencies to retain 
appropriated funds that were not expended due to energy 
savings. Such funds would only be available for energy 
conservation purposes.

Section 102. Energy use measurement and accountability

    This section would require all federal buildings to meter 
their energy consumption on an hourly basis by October 1, 2010. 
Six months after date of enactment of this Act, the Secretary 
would have to issue guidelines to agencies on how to meter 
energy consumption, and then agency heads would be required to 
submit their plans six months after the Secretary's issuance of 
the guidelines.

Section 103. Energy savings performance contracts

    This section would repeal the October 1, 2003, sunset on 
the use of energy savings performance contracts.
    This section would also clarify that the computation of 
energy savings in an energy savings performance contract can 
include energy savings accomplished through replacing existing 
facilities with new, more energy efficient facilities (rather 
than only energy savings due to better use of existing 
facilities). The Committee believes that savings resulting from 
the costs of operation, maintenance, or improvements must be 
based on life cycle costs. Without this definition, savings 
could be defined in many different and inconsistent ways. Using 
life cycle as the basis would allow for energy savings 
performance contracts to establish the baseline costs of 
existing buildings for facilities using the same life-cycle 
assessment method used to determine the future cost of proposed 
modifications, thus providing consistency. Life-cycle 
assessment and its application are defined as addressed in E.O. 
13101, E.O. 13123 and E.O. 13148 and is the standard 
methodology of calculating energy costs and savings.
    Finally, this section would require the Secretary of Energy 
to review the energy savings performance contract program 
within six months after date of enactment.
    The Committee believes that government facilities represent 
a significant opportunity for our country to meet national 
energy goals by improving aging and inefficient buildings and 
facilities. To help address these needs, and provide a 
financial mechanism to avoid large capital outlays for Federal 
agencies, Congress included ``performance contracts'' as part 
of the Energy Policy Act of 1992. Energy Savings Performance 
Contracts are an important and innovative tool for government 
agencies to fund energy efficiency measures. This contracting 
program allows energy and facility upgrades to paid for through 
cost savings obtained through energy and operating 
improvements. Unfortunately, not all Federal agencies are using 
this program, as the program is considered cumbersome to 
utilize. Agencies need to promote and leverage the flexibility 
of this program and recognize the distinctions between this 
contracting program and traditional contracting programs. In 
addition, there needs to be additional education of senior 
level Federal managers about this program. Like many Federal 
programs, we have learned that ``one size does not fit all'', 
and in addition the program is complex which adds to the costs. 
It is hoped that the thorough expedited review required to be 
conducted by the Secretary of Energy will identify obstacles 
and barriers to use of the program by Federal agencies, and 
that changes will allow the program to be more accessible and 
implemented more fully.

Section 104. Federal agency participation in demand reduction programs

    This section would encourage federal agencies to 
participate in State and regional demand side reduction 
programs.

                        TITLE II--FEDERAL FLEETS

Section 201. Waivers of alternative fueled vehicle fueling requirement

    This section would restate the requirement that federal 
dual fuel vehicles be run on the alternative fuel rather than 
gasoline. This section also would authorize the Secretary of 
Energy to waive this requirement for federal vehicles located 
in particular geographic areas if the alternative fuel is not 
reasonably available or the alternative fuel is cost 
prohibitive.
    In determining whether an alternative fuel is cost 
prohibitive, both the per-gallon (or gallon-equivalent) price, 
as well as the energy content of the alternative fuel, should 
be considered.

Section 202. Study on reducing petroleum consumption

    This section would task the Administrator of General 
Services, in cooperation with the Secretary of Energy, to 
conduct a study to consider the merits of establishing 
performance measures to guide the reduction of petroleum 
consumption by federal fleets.

Section 203. Hybrid vehicles

    This section would permit federal agencies to count 
acquisitions of future technology vehicles, such as fuel-
efficient hybrid electric vehicles or other vehicles, such as 
fuel cell vehicles, as defined by the Secretary, against 
alternative fuel vehicle acquisition targets. It also would 
restrict the use of dual fuel or bifuel vehicles in meeting 
agencies' alternative fuel vehicle acquisition targets where an 
agency is currently operating such vehicles on gasoline 
pursuant to a waiver under section 201, provided that future 
technology vehicles are available to the agency. The Committee 
understands that in many instances agencies acquire dual fuel 
vehicles to meet the alternative fuel vehicle acquisition 
requirements, but then run the vehicles on gasoline. This 
defeats the purposes of the requirement to promote the 
development and use of alternative vehicles, fuels, and 
infrastructure, and to reduce the use of gasoline. This section 
further would direct that the incremental cost of alternative 
fuel and future technology vehicles be distributed across the 
fleet of vehicles acquired. This section would include a 
definition of qualified hybrid motor vehicle to ensure that the 
federal government promotes development of advanced vehicles 
that not only use hybrid or other advanced technologies but 
also achieve significant reductions in air emissions and oil 
use, compared to otherwise available vehicles.

                     TITLE III--FEDERAL PROCUREMENT

Section 301. Procurement of energy efficient products

    This section would require agency heads to purchase 
products that meet the energy efficiency criteria established 
by either the Energy Star program or the Federal Energy 
Management Program of the Department of Energy, unless the 
approved product is not reasonably available or is cost 
prohibitive.

Section 302. Increased use of recovered mineral components in federally 
        funded projects involving procurement of cement and concrete

    This section would establish guidelines intended to 
increase agencies' use of recovered mineral components in 
cement or concrete projects (recycled cement and concrete). 
This section also would require the Administrator of the 
Environmental Protection Agency to conduct a study of the 
energy savings benefits of these procurement requirements.

Section 303. Participation of small business concerns

    This section would encourage sponsors of the Alaska 
pipeline project to maximize, to the maximum extent 
practicable, small businesses in contracting work. It would 
also authorize a GAO study on the use of small businesses in 
the pipeline project.

Section 304. Amendment to the Buy Indian Act

    This section would permit agencies to purchase Indian 
energy products and energy by-products.

Section 305. Buy American

    This section would provide a sense of the Congress that no 
purchases of supplies should be made from persons or entities 
found in violation of the Buy American Act.

                       TITLE IV--FEDERAL WORKERS

Section 401. Telecommuting study

    This section would task the Secretary with initiating a 
study of the energy conservation implications of telecommuting 
by federal employees.

Section 402. Elimination of pension offset

    This section would allow the Nuclear Regulatory Commission 
to re-hire former employees that have critical skills without 
reducing the employees' annuity payments as a result of the re-
employment.

         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):

NATIONAL ENERGY CONSERVATION POLICY ACT

           *       *       *       *       *       *       *



                   TITLE V--FEDERAL ENERGY INITIATIVES

     * * * * * * *

                    part 3--federal energy management

Sec. 541. Findings.
     * * * * * * *
Sec. 552. Federal procurement of energy efficient products.

           *       *       *       *       *       *       *


TITLE V--FEDERAL ENERGY INITIATIVE

           *       *       *       *       *       *       *


PART 3--FEDERAL ENERGY MANAGEMENT

           *       *       *       *       *       *       *


SEC. 543. ENERGY MANAGEMENT REQUIREMENTS.

  (a) Energy Performance Requirement for Federal Buildings.--
(1) Subject to paragraph (2), each agency shall apply energy 
conservation measures to, and shall improve the design for the 
construction of, [its Federal buildings so that the energy 
consumption per gross square foot of its Federal buildings in 
use during the fiscal year 1995 is at least 10 percent less 
than the energy consumption per gross square foot of its 
Federal buildings in use during the fiscal year 1985 and so 
that the energy consumption per gross square foot of its 
Federal buildings in use during the fiscal year 2000 is at 
least 20 percent less than the energy consumption per gross 
square foot of its Federal buildings in use during fiscal year 
1985.] the Federal buildings of the agency (including each 
industrial or laboratory facility) so that the energy 
consumption per gross square foot of the Federal buildings of 
the agency in fiscal years 2004 through 2013 is reduced, as 
compared with the energy consumption per gross square foot of 
the Federal buildings of the agency in fiscal year 2001, by the 
percentage specified in the following table:

  Fiscal Year                                       Percentage reduction
        2004..................................................        2 
        2005..................................................        4 
        2006..................................................        6 
        2007..................................................        8 
        2008..................................................       10 
        2009..................................................       12 
        2010..................................................       14 
        2011..................................................       16 
        2012..................................................       18 
20.   2013..................................................

           *       *       *       *       *       *       *

  (3) Not later than December 31, 2012, the Secretary shall 
review the results of the implementation of the energy 
performance requirement established under paragraph (1) and 
submit to Congress recommendations concerning energy 
performance requirements for fiscal years 2014 through 2023.

           *       *       *       *       *       *       *

  (c) Exclusions.--(1) [An agency may exclude, from the energy 
consumption requirements for the year 2000 established under 
subsection (a) and the requirements of subsection (b)(1), any 
Federal building or collection of Federal buildings, and the 
associated energy consumption and gross square footage, if the 
head of such agency finds that compliance with such 
requirements would be impractical. A finding of 
impracticability shall be based on the energy intensiveness of 
activities carried out in such Federal buildings or collection 
of Federal buildings, the type and amount of energy consumed, 
the technical feasibility of making the desired changes, and, 
in the cases of the Departments of Defense and Energy, the 
unique character of certain facilities operated by such 
Departments.](A) An agency may exclude, from the energy 
performance requirement for a fiscal year established under 
subsection (a) and the energy management requirement 
established under subsection (b), any Federal building or 
collection of Federal buildings, if the head of the agency 
finds that--
          (i) compliance with those requirements would be 
        impracticable;
          (ii) the agency has completed and submitted all 
        federally required energy management reports;
          (iii) the agency has achieved compliance with the 
        energy efficiency requirements of this Act, the Energy 
        Policy Act of 1992, Executive Orders, and other Federal 
        law; and
          (iv) the agency has implemented all practicable, life 
        cycle cost-effective projects with respect to the 
        Federal building or collection of Federal buildings to 
        be excluded.
  (B) A finding of impracticability under subparagraph (A)(i) 
shall be based on--
          (i) the energy intensiveness of activities carried 
        out in the Federal building or collection of Federal 
        buildings; or
          (ii) the fact that the Federal building or collection 
        of Federal buildings is used in the performance of a 
        national security function.
  (2) Each agency shall identify and list, in each report made 
under section 548(a), the Federal buildings designated by it 
for such exclusion. The Secretary shall review such findings 
for consistency with the [impracticability] standards for 
exclusion set forth in paragraph (1), and may within 90 days 
after receipt of the findings, reverse [a finding of 
impracticability] the exclusion. Inthe case of any such 
reversal, the agency shall comply with the energy consumption 
requirements for the building concerned.
  (3) Not later than 180 days after the date of enactment of 
this paragraph, the Secretary shall issue guidelines that 
establish criteria for exclusions under paragraph (1).

           *       *       *       *       *       *       *

  (e) Metering of Energy Use.--
          (1) Deadline.--By October 1, 2010, 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 or 
        submetered. 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. Such data shall 
        be incorporated into existing Federal energy tracking 
        systems and made available to Federal facility energy 
        managers.
          (2) Guidelines.--
                  (A) In general.--Not later than 180 days 
                after the date of enactment of this subsection, 
                the Secretary, in consultation with the 
                Department of Defense, the General Services 
                Administration, representatives from the 
                metering industry, utility industry, energy 
                services industry, energy efficiency industry, 
                national laboratories, universities, and 
                Federal facility energy managers, shall 
                establish guidelines for agencies to carry out 
                paragraph (1).
                  (B) Requirements for guidelines.--The 
                guidelines shall--
                          (i) take into consideration--
                                  (I) the cost of metering and 
                                submetering and the reduced 
                                cost of operation and 
                                maintenance expected to result 
                                from metering and submetering;
                                  (II) the extent to which 
                                metering and submetering are 
                                expected to result in increased 
                                potential for energy 
                                management, increased potential 
                                for energy savings and energy 
                                efficiency improvement, and 
                                cost and energy savings due to 
                                utility contract aggregation; 
                                and
                                  (III) the measurement and 
                                verification protocols of the 
                                Department of Energy;
                          (ii) include recommendations 
                        concerning the amount of funds and the 
                        number of trained personnel necessary 
                        to gather and use the metering 
                        information to track and reduce energy 
                        use;
                          (iii) establish priorities for types 
                        and locations of buildings to be 
                        metered and submetered based on cost-
                        effectiveness and a schedule of one or 
                        more dates, not later than 1 year after 
                        the date of issuance of the guidelines, 
                        on which the requirements specified in 
                        paragraph (1) shall take effect; and
                          (iv) establish exclusions from the 
                        requirements specified in paragraph (1) 
                        based on the de minimis quantity of 
                        energy use of a Federal building, 
                        industrial process, or structure.
          (3) Plan.--No later than 6 months after the date 
        guidelines are established under paragraph (2), in a 
        report submitted by the agency under section 548(a), 
        each agency shall submit to the Secretary a plan 
        describing how the agency will implement the 
        requirements of paragraph (1), including (A) how the 
        agency will designate personnel primarily responsible 
        for achieving the requirements and (B) demonstration by 
        the agency, complete with documentation, of any finding 
        that advanced meters or advanced metering devices, as 
        defined in paragraph (1), are not practicable.

           *       *       *       *       *       *       *


SEC. 546. INCENTIVES FOR AGENCIES.

  (a) * * *

           *       *       *       *       *       *       *

  (c) Utility Incentive Programs.--(1) * * *

           *       *       *       *       *       *       *

  (6) Federal agencies are encouraged to participate in State 
or regional demand side reduction programs. The availability of 
such programs, including measures employing onsite generation, 
and the savings resulting from such participation, should be 
included in the evaluation of energy options for Federal 
facilities.

           *       *       *       *       *       *       *

  (e) Retention of Energy Savings.--An agency may retain any 
funds appropriated to that agency for energy expenditures, at 
buildings subject to the requirements of section 543(a) and 
(b), that are not made because of energy savings. Except as 
otherwise provided by law, such funds may be used only for 
energy efficiency or unconventional and renewable energy 
resources projects.

           *       *       *       *       *       *       *


SEC. 548. REPORTS.

  (a) * * *
  (b) Reports to the President and Congress.--The Secretary 
shall report, not later than April 2 of each year, with respect 
to each fiscal year beginning after the date of the enactment 
of this subsection, to the President and Congress--
          (1) * * *

           *       *       *       *       *       *       *


SEC. 550. SURVEY OF ENERGY SAVING POTENTIAL.

  (a) * * *

           *       *       *       *       *       *       *

  (d) Report.--As soon as practicable after the completion of 
the project carried out under this section, the Secretary shall 
transmit a report of the findings and conclusions of the 
project to the Committee on Energy and Natural Resources and 
the Committee on Governmental Affairs of the Senate, the 
Committee on Energy and Commerce, the Committee on Government 
Operations, and the Committee on Public Works and 
Transportation of the House ofRepresentatives, and the agencies 
who own the buildings involved in such project. Such report shall 
include an analysis of the probability of each agency achieving [the 20 
percent reduction goal established under section 543(a) of the National 
Energy Conservation Policy Act (42 U.S.C. 8253(a)).] each of the energy 
reduction goals established under section 543(a).

           *       *       *       *       *       *       *


SEC. 552. FEDERAL PROCUREMENT OF ENERGY EFFICIENT PRODUCTS.

  (a) Definitions.--In this section:
          (1) Energy star product.--The term ``Energy Star 
        product'' means a product that is rated for energy 
        efficiency under an Energy Star program.
          (2) Energy star program.--The term ``Energy Star 
        program'' means the program established by section 324A 
        of the Energy Policy and Conservation Act.
          (3) Executive agency.--The term ``executive agency'' 
        has the meaning given the term in section 4 of the 
        Office of Federal Procurement Policy Act (41 U.S.C. 
        403).
          (4) FEMP designated product.--The term ``FEMP 
        designated product'' means a product that is designated 
        under the Federal Energy Management Program of the 
        Department of Energy as being among the highest 25 
        percent of equivalent products for energy efficiency.
  (b) Procurement of Energy Efficient Products.--
          (1) Requirement.--To meet the requirements of an 
        executive agency for an energy consuming product, the 
        head of the executive agency shall, except as provided 
        in paragraph (2), procure--
                  (A) an Energy Star product; or
                  (B) a FEMP designated product.
          (2) Exceptions.--The head of an executive agency is 
        not required to procure an Energy Star product or FEMP 
        designated product under paragraph (1) if the head of 
        the executive agency finds in writing that--
                  (A) 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 executive 
                agency.
          (3) Procurement planning.--The head of an executive 
        agency shall incorporate into the specifications for 
        all procurements involving energy consuming products 
        and systems, including guide specifications, project 
        specifications, and construction, renovation, and 
        services contracts that include provision of energy 
        consuming products and systems, and into the factors 
        for the evaluation of offers received for the 
        procurement, criteria for energy efficiency that are 
        consistent with the criteria used for rating Energy 
        Star products and for rating FEMP designated products.
  (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 
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 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 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.
  (d) Designation of Electric Motors.--In the case of electric 
motors of 1 to 500 horsepower, agencies shall select only 
premium efficient motors that meet a standard designated by the 
Secretary. The Secretary shall designate such a standard within 
120 days after the date of the enactment of this section, after 
considering the recommendations of associated electric motor 
manufacturers and energy efficiency groups.
  (e) Regulations.--Not later than 180 days after the date of 
the enactment of this section, the Secretary shall issue 
guidelines to carry out this section.

           *       *       *       *       *       *       *


            TITLE VIII--ENERGY SAVINGS PERFORMANCE CONTRACTS

SEC. 801. AUTHORITY TO ENTER INTO CONTRACTS.

  (a) In General.--(1) * * *

           *       *       *       *       *       *       *

  (3)(A) In the case of an energy savings contract or energy 
savings performance contract providing for energy savings 
through the construction and operation of one or more buildings 
or facilities to replace one or more existing buildings or 
facilities, benefits ancillary to the purpose of such contract 
under paragraph (1) may include savings resulting from reduced 
costs of operation and maintenance at such replacement 
buildings or facilities when compared with costs of operation 
and maintenance at the buildings or facilities being replaced, 
established through a methodology set forth in the contract.
  (B) Notwithstanding paragraph (2)(B), aggregate annual 
payments by an agency under an energy savings contract or 
energy savings performance contract referred to in subparagraph 
(A) may take into account (through the procedures developed 
pursuant to this section) savings resulting from reduced costs 
of operation and maintenance as described in that subparagraph.

           *       *       *       *       *       *       *

  [(c) Sunset and Reporting Requirements.--The authority to 
enter into new contracts under this section shall cease to be 
effective on October 1, 2003.]

           *       *       *       *       *       *       *


SEC. 804. DEFINITIONS.

  For purposes of this title, the following definitions apply:
          (1) * * *
          [(2) The term ``energy savings'' means a reduction in 
        the cost of energy, from a base cost established 
        through a methodology set forth in the contract, 
        utilized in an existing federally owned building or 
        buildings or other federally owned facilities as a 
        result of--
                  [(A) the lease or purchase of operating 
                equipment, improvements, altered operation and 
                maintenance, or technical services; or
                  [(B) the increased efficient use of existing 
                energy sources by cogeneration or heat 
                recovery, excluding any cogeneration process 
                for other than a federally owned building or 
                buildings or other federally owned facilities.
          [(3) The terms ``energy savings contract'' and 
        ``energy savings performance contract'' mean a contract 
        which provides for the performance of services for the 
        design, acquisition, installation, testing, operation, 
        and, where appropriate, maintenance and repair, of an 
        identified energy conservation measure or series of 
        measures at one or more locations. Such contracts--
                  [(A) may provide for appropriate software 
                licensing agreements; and
                  [(B) shall, with respect to an agency 
                facility that is a public building as such term 
                is defined in section 13(1) of the Public 
                Buildings Act of 1959 (40 U.S.C. 612(1)), be in 
                compliance with the prospectus requirements and 
                procedures of section 7 of the Public Buildings 
                Act of 1959 (40 U.S.C. 606).
          [(4) The term ``energy conservation measures'' has 
        the meaning given such term in section 551(4).]
          (2) The term ``energy savings'' means--
                  (A) a reduction in the cost of energy or 
                water, from a base cost established through a 
                methodology set forth in the contract, used in 
                an existing federally owned building or 
                buildings or other federally owned facilities 
                as a result of--
                          (i) the lease or purchase of 
                        operating equipment, improvements, 
                        altered operation and maintenance, or 
                        technical services;
                          (ii) the increased efficient use of 
                        existing energy sources by cogeneration 
                        or heat recovery, excluding any 
                        cogeneration process for other than a 
                        federally owned building or buildings 
                        or other federally owned facilities; or
                          (iii) the increased efficient use of 
                        existing water sources; or
                  (B) in the case of a replacement building or 
                facility described in section 801(a)(3), a 
                reduction in the cost of energy, from a base 
                cost established through a methodology set 
                forth in the contract, that would otherwise be 
                utilized in one or more existing federally 
                owned buildings or other federally owned 
                facilities by reason of the construction and 
                operation of the replacement building or 
                facility.
          (3) The terms ``energy savings contract'' and 
        ``energy savings performance contract'' mean a contract 
        (including a utility energy services contract) which 
        provides for--
                  (A) the performance of services for the 
                design, acquisition, installation, testing, 
                operation, and, where appropriate, maintenance 
                and repair, of an identified energy or water 
                conservation measure or series of measures at 
                one or more locations; or
                  (B) energy savings through the construction 
                and operation of one or more buildings or 
                facilities to replace one or more existing 
                buildings or facilities.
        Such contracts shall, with respect to an agency 
        facility that is a public building as such term is 
        defined in section 13(1) of the Public Buildings Act of 
        1959 (40 U.S.C. 612(1)), be in compliance with the 
        prospectus requirements and procedures of section 7 of 
        the Public Buildings Act of 1959 (40 U.S.C. 606).
          (4) The term ``energy or water conservation measure'' 
        means--
                  (A) an energy conservation measure, as 
                defined in section 551(4) (42 U.S.C. 8259(4)); 
                or
                  (B) a water conservation measure that 
                improves water efficiency, is life cycle cost-
                effective, and involves water conservation, 
                water recycling or reuse, more efficient 
                treatment of wastewater or stormwater, 
                improvements in operation or maintenance 
                efficiencies, retrofit activities, or other 
                related activities, not at a Federal 
                hydroelectric facility.

           *       *       *       *       *       *       *

                              ----------                              


        SECTION 400AA OF THE ENERGY POLICY AND CONSERVATION ACT

SEC. 400AA. ALTERNATIVE FUEL USE BY LIGHT DUTY FEDERAL  VEHICLES.

  (a) Department of Energy Program.--(1) * * *

           *       *       *       *       *       *       *

  (3)(A) * * *

           *       *       *       *       *       *       *

  [(E) Dual fueled vehicles acquired pursuant to this section 
shall be operated on alternative fuels unless the Secretary 
determines that operation on such alternative fuels is not 
feasible.]
  (E)(i) Dual fueled vehicles acquired pursuant to this section 
shall be operated on alternative fuels unless the Secretary 
determines that an agency needs a waiver of such requirement 
for vehicles in the fleet of the agency in a particular 
geographic area where--
          (I) the alternative fuel otherwise required to be 
        used in the vehicle is not reasonably available to 
        retail purchasers of the fuel, as certified to the 
        Secretary by the head of the agency; or
          (II) the cost of the alternative fuel otherwise 
        required to be used in the vehicle is unreasonably more 
        expensive compared to gasoline, as certified by the 
        head of the agency.
  (ii) The Secretary shall monitor compliance with this 
subparagraph by all such fleets and shall report annually to 
the Congress on the extent to which the requirements of this 
subparagraph are being achieved. The report shall include 
information on annual reductions achieved of petroleum-based 
fuels and the problems, if any, encountered in acquiring 
alternative fuels.

           *       *       *       *       *       *       *

                              ----------                              


ENERGY POLICY ACT OF 1992

           *       *       *       *       *       *       *


                 TITLE III--ALTERNATIVE FUELS--GENERAL

SEC. 301. DEFINITIONS.

  For purposes of this title, title IV, and title V (unless 
otherwise specified)--
          (1) * * *

           *       *       *       *       *       *       *

          (13) the term ``motor vehicle'' has the meaning given 
        such term under section 216(2) of the Clean Air Act (42 
        U.S.C. 7550(2)); [and]
          (14) the term ``replacement fuel'' means the portion 
        of any motor fuel that is methanol, ethanol, or other 
        alcohols, natural gas, liquefied petroleum gas, 
        hydrogen, coal derived liquid fuels, fuels (other than 
        alcohol) derived from biological materials, electricity 
        (including electricity from solar energy), ethers, or 
        any other fuel the Secretary determines, by rule, is 
        substantially not petroleum and would yield substantial 
        energy security benefits and substantial environmental 
        benefits[.];
          (15) the term ``future technology vehicle'' means, 
        for the fiscal years 2004 through 2009, a qualified 
        hybrid motor vehicle, and for fiscal years after 2009, 
        a vehicle--
                  (A) that represents emerging technology that 
                does not yet have substantial market 
                penetration;
                  (B) for which Federal Government acquisitions 
                can lead the market;
                  (C) that achieves significant reductions in 
                air emissions and oil use compared to new 
                vehicles that do have substantial market 
                penetration; and
                  (D) that in no event achieves reductions in 
                air emissions and oil use that are less than a 
                qualified hybrid motor vehicle,
        as defined by the Secretary through guidance;
          (16) the term ``qualified hybrid motor vehicle'' 
        means a passenger automobile, light duty truck, or 
        medium duty passenger vehicle as defined in regulations 
        issued by the Administrator--
                  (A) which draws propulsion energy from--
                          (i) an internal combustion or heat 
                        engine using combustible fuel; and
                          (ii) a rechargeable onboard energy 
                        storage system which operates at no 
                        less than 100 volts and which provides 
                        a percentage of maximum available power 
                        of at least 5 percent;
                  (B) which has received a certificate that 
                such vehicle meets or exceeds the Bin 5 Tier II 
                emission level established in regulations 
                prescribed by the Administrator under section 
                202(i) of the Clean Air Act for that make and 
                model year vehicle; and
                  (C) which achieves at least 140 percent of 
                the average 2002 model year city fuel economy 
                for passenger automobiles in the same vehicle 
                inertia weight class, if the vehicle is a 
                passenger automobile, or for light duty trucks 
                in the same vehicle inertia weight class, if 
                the vehicle is a light duty truck, or for 
                medium duty passenger vehicles, if the vehicle 
                is a medium duty passenger vehicle, as 
                determined by the Environmental Protection 
                Agency according to the following vehicle 
                inertia weight classes: 1,500 and 1,750 lbs 
                (calculated based on the 1,750 lbs weight 
                class), 2,000 lbs, 2,250 lbs, 2,500 lbs, 2,750 
                lbs, 3,000 lbs, 3,500 lbs, 4,000 lbs, 4,500 
                lbs, 5,000 lbs, 5,500 lbs, 6,000 lbs, 6,500 
                lbs, 7,000 to 8,500 lbs, and 8,500 to 10,000 
                lbs;
          (17) the term ``percentage of maximum available 
        power'' means the maximum power available from the 
        rechargeable energy storage system, during a standard 
        10 second pulse power or equivalent test, divided by 
        the sum of such maximum power and the SAE net power of 
        the internal combustion or heat engine; and
          (18) the term ``vehicle inertia weight class'' has 
        the same meaning as when defined in regulations 
        prescribed by the Administrator for purposes of the 
        administration of title II of the Clean Air Act (42 
        U.S.C. 7521 et seq.).

           *       *       *       *       *       *       *


SEC. 303. MINIMUM FEDERAL FLEET REQUIREMENT.

  (a) * * *
  (b) Percentage Requirements.--(1) Of the total number of 
vehicles acquired by a Federal fleet, at least--
          (A) 25 percent in fiscal year 1996;
          (B) 33 percent in fiscal year 1997;
          (C) 50 percent in fiscal year 1998; and
          [(D) 75 percent in fiscal year 1999 and thereafter,
shall be alternative fueled vehicles.]
          (D) 75 percent in fiscal years 1999 through 2003,
shall be alternative fueled vehicles. For fiscal years 2004 and 
thereafter, of the total number of vehicles acquired by a 
Federal fleet, at least 75 percent shall be alternative fueled 
vehicles or future technology vehicles.

           *       *       *       *       *       *       *

  (4) For the period for which a Federal fleet is operating 
under the exemption provided in section 400AA(a)(3)(E) of the 
Energy Policy and Conservation Act (42 U.S.C. 6374(a)(3)(E)), 
and where future technology vehicles are available that would 
meet the agency's operational requirements for such fleet but 
the agency chooses notto acquire such vehicles, acquisitions of 
dual fueled vehicles for that fleet shall not count toward satisfaction 
of the requirements in this subsection.
  [(c) Allocation of Incremental Costs.--The General Services 
Administration and any other Federal agency that procures motor 
vehicles for distribution to other Federal agencies may 
allocate the incremental cost of alternative fueled vehicles 
over the cost of comparable gasoline vehicles across the entire 
fleet of motor vehicles distributed by such agency.]
  (c) Allocation of Incremental Costs.--The General Services 
Administration and any other Federal agency that procures motor 
vehicles for distribution to other Federal agencies shall 
allocate the incremental cost of alternative fueled vehicles 
and future technology vehicles over the cost of comparable 
internal combustion gasoline vehicles across the entire fleet 
of motor vehicles distributed by such agency in any fiscal 
year.

           *       *       *       *       *       *       *

                              ----------                              


SOLID WASTE DISPOSAL ACT

           *       *       *       *       *       *       *


                  Subtitle F--Federal Responsibilities

Sec. 6001. Application of Federal, State, and local law to Federal 
          facilities.
     * * * * * * *
Sec. 6005. Increased use of recovered mineral component in federally 
          funded projects involving procurement of cement or concrete.

           *       *       *       *       *       *       *


Subtitle F--Federal Responsibilities

           *       *       *       *       *       *       *


   INCREASED USE OF RECOVERED MINERAL COMPONENT IN FEDERALLY FUNDED 
          PROJECTS INVOLVING PROCUREMENT OF CEMENT OR CONCRETE

  Sec. 6005. (a) Definitions.--In this section:
          (1) Agency head.--The term ``agency head'' means--
                  (A) the Secretary of Transportation; and
                  (B) the head of each other Federal agency 
                that on a regular basis procures, or provides 
                Federal funds to pay or assist in paying the 
                cost of procuring, material for cement or 
                concrete projects.
          (2) Cement or concrete project.--The term ``cement or 
        concrete project'' means a project for the construction 
        or maintenance of a highway or other transportation 
        facility or a Federal, State, or local government 
        building or other public facility that--
                  (A) involves the procurement of cement or 
                concrete; and
                  (B) is carried out in whole or in part using 
                Federal funds.
          (3) Recovered mineral component.--The term 
        ``recovered mineral component'' means--
                  (A) ground granulated blast furnace slag;
                  (B) coal combustion fly ash; and
                  (C) any other waste material or byproduct 
                recovered or diverted from solid waste that the 
                Administrator, in consultation with an agency 
                head, determines should be treated as recovered 
                mineral component under this section for use in 
                cement or concrete projects paid for, in whole 
                or in part, by the agency head.
  (b) Implementation of Requirements.--
          (1) In general.--Not later than 1 year after the date 
        of enactment of this section, the Administrator and 
        each agency head shall take such actions as are 
        necessary to implement fully all procurement 
        requirements and incentives in effect as of the date of 
        enactment of this section (including guidelines under 
        section 6002) that provide for the use of cement and 
        concrete incorporating recovered mineral component in 
        cement or concrete projects.
          (2) Priority.--In carrying out paragraph (1) an 
        agency head shall give priority to achieving greater 
        use of recovered mineral component in cement or 
        concrete projects for which recovered mineral 
        components historically have not been used or have been 
        used only minimally.
          (3) Conformance.--The Administrator and each agency 
        head shall carry out this subsection in accordance with 
        section 6002.
  (c) Full Implementation Study.--
          (1) In general.--The Administrator, in cooperation 
        with the Secretary of Transportation and the Secretary 
        of Energy, shall conduct a study to determine the 
        extent to which current procurement requirements, when 
        fully implemented in accordance with subsection (b), 
        may realize energy savings and environmental benefits 
        attainable with substitution of recovered mineral 
        component in cement used in cement or concrete 
        projects.
          (2) Matters to be addressed.--The study shall--
                  (A) quantify the extent to which recovered 
                mineral components are being substituted for 
                Portland cement, particularly as a result of 
                current procurement requirements, and the 
                energy savings and environmental benefits 
                associated with that substitution;
                  (B) identify all barriers in procurement 
                requirements to fuller realization of energy 
                savings and environmental benefits, including 
                barriers resulting from exceptions from current 
                law; and
                  (C)(i) identify potential mechanisms to 
                achieve greater substitution of recovered 
                mineral component in types of cement or 
                concrete projects for which recovered mineral 
                components historically have not been used or 
                have been used only minimally;
                  (ii) evaluate the feasibility of establishing 
                guidelines or standards for optimized 
                substitution rates of recovered mineral 
                component in those cement or concrete projects; 
                and
                  (iii) identify any potential environmental or 
                economic effects that may result from greater 
                substitution of recovered mineral component in 
                those cement or concrete projects.
          (3) Report.--Not later than 30 months after the date 
        of enactment of this section, the Administrator shall 
        submit to the Committee on Appropriations, Committee on 
        Environment and Public Works, and Committee on 
        Governmental Affairs of the Senate and the Committee on 
        Appropriations, Committee on Energy and Commerce, 
        Committee on Transportation and Infrastructure, and 
        Committee on Government Reform of the House of 
        Representatives a report on the study.
  (d) Additional Procurement Requirements.--Unless the study 
conducted under subsection (c) identifies any effects or other 
problems described in subsection (c)(2)(C)(iii) that warrant 
further review or delay, the Administrator and each agency head 
shall, within 1 year of the release of the report in accordance 
with subsection (c)(3), take additional actions authorized 
under this Act to establish procurement requirements and 
incentives that provide for the use of cement and concrete with 
increased substitution of recovered mineral component in the 
construction and maintenance of cement or concrete projects, so 
as to--
          (1) realize more fully the energy savings and 
        environmental benefits associated with increased 
        substitution; and
          (2) eliminate barriers identified under subsection 
        (c).
  (e) Effect of Section.--Nothing in this section affects the 
requirements of section 6002 (including the guidelines and 
specifications for implementing those requirements).

           *       *       *       *       *       *       *

                              ----------                              


                 SECTION 23 OF THE ACT OF JUNE 25, 1910

  Chap. 431.--AN ACT To provide for determining the heirs of deceased 
    Indians, for the disposition and sale of allotments of deceased 
Indians, for the leasing of allotments, and for other purposes.

           *       *       *       *       *       *       *


  Sec. 23. That hereafter the purchase of Indian supplies shall 
be made in conformity with the requirements of section thirty-
seven hundred and nine of the Revised Statutes of the United 
States: Provided, That so far as may be practicable Indian 
labor shall be employed, and purchases of the products 
(including, but not limited to printing, energy products, and 
energy by-products, notwithstanding any other law) of Indian 
industry may be made in open market in the discretion of the 
Secretary of the Interior. All Acts and parts of Acts in 
conflict with the provisions of this section are hereby 
repealed. Participation in the Mentor-Protege Program 
established under section 831 of the National Defense 
Authorization Act for Fiscal Year 1991 (10 U.S.C. 2301 note) or 
receipt of assistance pursuant to any developmental assistance 
agreement authorized under such program shall not render Indian 
labor or Indian industry ineligible to receive any assistance 
authorized under this section. For the purposes of the 
section--
          (1) * * *

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              SECTION 161 OF THE ATOMIC ENERGY ACT OF 1954

  Sec. 161. General Provisions.--In the performance of its 
functions the Commission is authorized to--
          a. * * *

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          y. exempt from the application of sections 8344 and 
        8468 of title 5, United States Code, an annuitant who 
        was formerly an employee of the Commission who is hired 
        by the Commission as a consultant, if the Commission 
        finds that the annuitant has a skill that is critical 
        to the performance of the duties of the Commission.