12

1 conditioning, lighting, or other energy-consuming system for 2 any building, and no other item or equipment having as one 3 of its primary purposes the generation, utilization, or conser4 vation of energy in or for any building, shall be purchased 5 from any person by any Federal agency unless such person 6 has submitted, along with or prior to the execution of the 7 purchase contract, a detailed life cycle energy cost analysis 8 with respect to such component, item, or equipment.

9 INCREASED COST LIMITATIONS TO ACCOMMODATE ENERGY

10

11

12

13

EQUIPMENT IN FEDERAL AND FEDERALLY ASSISTED

BUILDINGS

SEC. 6. (a) (1) In determining the maximum dollar amount of any Federal assistance for the construction or ma

14 jor rehabilitation of a residential, commercial, or other build15 ing, or the maximum per unit or other cost or floor area limi16 tation of any federally owned building, where the applicable 17 Federal law specifies such a maximum dollar amount or limi18 tation and the building involved is or will be furnished with 19 solar energy equipment or other special energy equipment 20 in accordance with regulations prescribed under subsection 21 (e), the maximum amount or limitation so specified which 22 would otherwise be applicable to the building shall be deemed 23 to be increased by the amount by which (as determined in 24 to be increased by the amount by which (as determined in

བ;

13

1 area of the building including such equipment (taking into 2 account design as well as actual construction or rehabilitation, 3 and all related items) exceeds the price, cost, or floor area 4 of the building with such equipment replaced by conven5 tional energy equipment.

6

(2) In addition, any excess of price or cost permitted 7 under paragraph (1) with respect to a building shall be 8 fully taken into account in determining the value or cost of 9 the building for purposes of applying any statutory provision 10 specifying maximum loan-to-value or -cost ratio, in such 11 manner as will minimize downpayments or other initial costs 12 to the person or agency constructing or rehabilitating the 13 building.

(b) As used in subsection (a)—

(1) the term "Federal assistance" includes any federally assisted mortgage loan within the meaning of

section 13 (b) of the Solar Heating and Cooling Demonstration Act of 1974, and any grant, loan, or financial assistance in any other form which is provided or made available under a Federal law or program; and

(2) the term "federally owned building" includes a new building as defined in section 3 (a) (3) of this Act, federally constructed housing within the meaning

of section 13 (c) of the Solar Heating and Cooling

Demonstration Act of 1974, and any other building (of

1

2

3

4

14

any kind) constructed by the United States or a Federal

agency or constructed with assistance provided or made available under a Federal law or program.

(c) The Administrator and the Secretary shall jointly 5 prescribe such regulations (including regulations specifying 6 the types of energy equipment which will qualify a building 7 for the benefits of this section and regulations providing 8 for the computation of the extent to which maximum dollar 9 amounts and limitations on maximum per unit, cost, or 10 floor area limitations may be increased on account of such 11 equipment) as may be necessary or appropriate to carry 12 out this section in a manner consistent with the guidelines 13 developed under section 4.

14

15

16

APPROPRIATIONS

SEC. 7. There are authorized to be appropriated such

sums as may be necessary to carry out this Act, not exceed

17 ing in the aggregate $

18 tion 4, $

19

for purposes of sec

for purposes of section 5 (a) (1),

for purposes of section 5 (a) (2), and

STATEMENT OF HON. GARY W. HART, U.S. SENATOR FROM THE STATE OF COLORADO

Senator HART. Thank you very much, Mr. Chairman. I am joined by my staff member, Mike McCabe, and will be joined by others who are present in support of this piece of legislation for your questions at the conclusion of the introductory statement.

I want to thank you for this opportunity to discuss with you and present to you the intent and provisions of S. 2095, the so-called Conservation and Solar Energy-Federal Buildings Act of 1975.

Last July, on the day I introduced this legislation, I sponsored with Senator Gaylord Nelson and Representatives Dick Ottinger and Gilbert Gude, an exhibit of solar energy equipment that was currently available for installation.

The exhibit accomplished what the sponsors had hoped-it assembled on the grounds of the Nation's Capitol, functional, operating solar energy systems which were ready for use now and not sometime in the distant future.

Even though the summer sun may have faded since July, the energy problems that can be addressed by the use of solar energy and energy conservation measures has not diminished in its intensity.

The legislation I am here to discuss today can apply some of the vast resources of our Federal Government to these technologies and fully develop them as weapons in the arsenal against the critical energy shortage which faces our Nation.

The Conservation and Solar Energy-Federal Buildings Act of 1975, S. 2095, requires that a building financed with Federal funds utilize the most economically and technically practicable measures for energy conservation and use of solar energy.

This is to be accomplished by means of an energy use analysis which will evaluate the energy requirements and comparative costs of energysaving systems over the economic life of a Federal building. The findings from this analysis must be incorporated in the plans and specifications for the design, construction, and renovation of a Federal building and must be submitted to Congress as part of normal procurement procedures.

Included in the energy use analysis is a requirement for the evaluation of life cycle energy costs of a building. It is important to stress the adjustments to the total costs when evaluated in light of the life. cycle basis, for herein lies the key to promoting the competitive benefits of energy conservation measures and the use of solar equipment.

Life cycle costs are assessed to incorporate the total costs and benefits of the use of solar energy systems and energy conservation measures versus conventional heating and cooling systems over the entire economic life of a building.

As stated in this bill, the assessment should include such variables as rising energy costs; comparative energy systems; equipment replacement and maintenance costs; the integration of energy-related factors into the structural design; and future inflation rates.

When these variables are taken into account and compared with conventional construction and energy use practices, conservation measures and solar energy equipment become economically competitive.

The problem with building construction in the past, when energy was both abundant and cheap, was that energy alternatives and conservation were ignored. The new conditions which now face us have necessitated a curb to the waste that has been integrated into building design.

These factors have direct economic trade-offs which become apparent when evaluated in the energy use life cycle energy cost analyses of this bill. But above and beyond these mesurable elements there are values which are difficult to quantify, yet are nonetheless of vital importance to our Nation.

The benefits and costs derived from these intangible values include the preservation of material resources; the reduction in pollutants; export market potential; and the economic and national security values which would be derived from a reduction in imports of oil. These values are often of more significance than the direct economic trade-offs traditionally used as the basis for cost comparisons.

The legislation also calls for an energy inventory to be conducted of all existing Federal buildings. This inventory, accompanied by energy use analysis, is to be followed by detailed plans and specifications for incorporating energy conservation measures and solar energy into buildings under Federal control.

The Government currently owns and operates over 400,000 buildings which total 2.5 billion square feet of space to be heated, cooled, and lighted. The energy inventory assures that this tremendous resource is fully utilized.

The bill does not require that any specific energy conservation or solar energy technology be applied. It does, however, require that these technologies be utilized where technically feasible and cost effective.

In order to assist in this evaluation, the responsibility to provide relevant energy data is placed on the manufacturer of major energyconsuming equipment before a purchase agreement can be executed. This requires the submission of a detailed life cycle energy cost analysis of the system before the purchase.

The bill also specifies that guidelines for optimal energy use and implementation of the required energy use analysis be developed by the General Services Administration and the Department of Defense in consultation with each other and in accordance with relevant energy-related findings of the Federal Energy Administration and the Energy Research and Development Administration.

In order to assure that Federal buildings utilize the most effective and efficient measures for the conservation of energy and the use of solar energy where practicable, these guidelines must be updated periodically.

In drafting the bill, the guidelines were intentionally left without rigid definition because the appropriate agencies can better arrive at a formula for applying the purposes set forth in this legislation than could Congress.

However, merely because the guidelines are not spelled out, there should be no question that they should be binding and comprehensive. Once developed, these guidelines should be of such quality so as to be of benefit to the private sector as well.