So today, I will go easy on you, and not put so much detail in my blog, and still suggest that some of you take a look at this bill, which continues to evolve this week in the House Energy and Commerce Committee.

The lack of comments about yesterday's blog is a reminder that voters love to scream and yell about the bad job being done in Washington, but few constituents really want to dig down into the details on most issues.

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SEC. 304. GREATER ENERGY EFFICIENCY IN BUILDING CODES.

`(a) Energy Efficiency Targets-

`(1) IN GENERAL- Except as provided in paragraph (2) or (3), the national building code energy efficiency target for the national average percentage improvement of a building's energy performance when built to a code meeting the target shall be--

`(A) effective on the date of enactment of the American Clean Energy and Security Act of 2009, 30 percent reduction in energy use relative to a comparable building constructed in compliance with the baseline code;

`(B) effective January 1, 2014, for residential buildings, and January 1, 2015, for commercial buildings, 50 percent reduction in energy use relative to the baseline code; and

`(C) effective January 1, 2017, for residential buildings, and January 1, 2018, for commercial buildings, and every 3 years thereafter, respectively, through January 1, 2029, and January 1, 2030, 5 percent additional reduction in energy use relative to the baseline code.

`(2) CONSENSUS-BASED CODES- If on any effective date specified in paragraph (1)(A), (B), or (C) a successor code to the baseline codes provides for greater reduction in energy use than is required under paragraph (1), the overall percentage reduction in energy use provided by that successor code shall be the national building code energy efficiency target.

`(3) TARGETS ESTABLISHED BY SECRETARY- The Secretary may by rule establish a national building code energy efficiency target for residential or commercial buildings achieving greater reductions in energy use than the targets prescribed in paragraph (1) or (2) if the Secretary determines that such greater reductions in energy use can be achieved with a code that is life cycle cost-justified and technically feasible. The Secretary may by rule establish a national building code energy efficiency target for residential or commercial buildings achieving a reduction in energy use that is greater than zero but less than the targets prescribed in paragraph (1) or (2) if the Secretary determines that such lesser target is the maximum reduction in energy use that can be achieved through a code that is life cycle cost-justified and technically feasible.

`(4) ADDITIONAL REDUCTIONS IN ENERGY USE- Effective on January 1, 2033, and once every 3 years thereafter, the Secretary shall determine, after notice and opportunity for comment, whether further energy efficiency building code improvements for residential or commercial buildings, respectively, are life cycle cost-justified and technically feasible, and shall establish updated national building code energy efficiency targets that meet such criteria.

`(5) ZERO-NET-ENERGY BUILDINGS- In setting targets under this subsection, the Secretary shall consider ways to support the deployment of distributed renewable energy technology, and shall seek to achieve the goal of zero-net-energy commercial buildings established in section 422 of the Energy Independence and Security Act of 2007 (42 U.S.C. 17082).

`(6) BASELINE CODE- For purposes of this section, the term `baseline code' means--

`(A) for residential buildings, the 2006 International Energy Conservation Code (IECC) published by the International Code Council; and

`(B) for commercial buildings, the code published in ASHRAE Standard 90.1-2004.

`(7) CONSULTATION- In establishing the targets required by this section, the Secretary shall consult with the Director of the National Institute of Standards and Technology.

`(b) National Energy Efficiency Building Codes-

`(1) REQUIREMENT-

`(A) IN GENERAL- There shall be established national energy efficiency building codes under this subsection, for residential and commercial buildings, sufficient to meet each of the national building code energy efficiency targets established under subsection (a), not later than the date that is one year after the deadline for establishment of each such target.

`(B) EXISTING CODE- If the Secretary finds prior to the date one year after the deadline for establishing a target that one or more energy efficiency building codes published by a recognized consensus-based code development organization meet or exceed the established target, the Secretary shall select the code that meets the target with the highest efficiency in the most cost-effective manner, and such code shall be the national energy efficiency building code.

`(C) REQUIREMENT TO ESTABLISH CODE- If the Secretary does not make a finding under subparagraph (B), the national energy efficiency building code shall be established by rule by the Secretary under paragraph (2).

`(2) ESTABLISHMENT BY SECRETARY-

`(A) PROCEDURE- In order to establish a national energy efficiency building code as required under paragraph (1)(C), the Secretary shall--

`(i) not later than six months prior to the effective date for each target, review existing and proposed codes published or under review by recognized consensus-based code development organizations;

`(ii) determine the percentage of energy efficiency improvements that are or would be achieved in such published or proposed code versions relative to the target;

`(iii) propose improvements to such published or proposed code versions sufficient to meet or exceed the target; and

`(iv) unless a finding is made under paragraph (1)(B) with respect to a code published by a recognized consensus-based code development organization, adopt a code that meets or exceeds the relevant national building code energy efficiency target by not later than one year after the effective date of such target.

`(B) CALCULATIONS- Each code established by the Secretary under this paragraph shall be set at the maximum level the Secretary determines is life cycle cost-justified and technically feasible, in accordance with the following:

`(i) SAVINGS CALCULATIONS- Calculations of energy savings shall take into account the typical lifetimes of different products, measures, and system configurations.

`(ii) COST-EFFECTIVENESS CALCULATIONS- Calculations of life cycle cost-effectiveness shall be based on life cycle cost methods and procedures under section 544 of the National Energy Conservation Policy Act (42 U.S.C. 8254), but shall incorporate to the extent feasible externalities such as impacts on climate change and on peak energy demand that are not already incorporated in assumed energy costs.

`(C) CONSIDERATIONS- In developing a national energy efficiency building code under this paragraph, the Secretary shall consider--

`(i) for residential codes--

`(I) residential building standards published or proposed by ASHRAE;

`(II) residential building codes published or proposed in the International Energy Conservation Code (IECC);

`(III) data from the Residential Energy Services Network (RESNET) on compliance measures utilized by consumers to qualify for the residential energy efficiency tax credits established under the Energy Policy Act of 2005;

`(IV) data and information from the Department of Energy's Building America Program;

`(V) data and information from the Energy Star New Homes program;

`(VI) data and information from the New Building Institute and similar organizations; and

`(VII) standards for practices and materials to achieve cool roofs in residential buildings, taking into consideration reduced air conditioning energy use as a function of cool roofs, the potential reduction in global warming from increased solar reflectance from buildings, and cool roofs criteria in State and local building codes and in national and local voluntary programs; and

`(ii) for commercial codes--

`(I) commercial building standards proposed by ASHRAE;

`(II) commercial building codes proposed in the International Energy Conservation Code (IECC);

`(III) the Core Performance Criteria published by the New Buildings Institute;

`(IV) data and information developed by the Director of the Commercial High-Performance Green Building Office of the Department of Energy and any public-private partnerships established under that Office;

`(V) data and information from the Energy Star for Buildings program;

`(VI) data and information from the New Building Institute, RESNET, and similar organizations; and

`(VII) standards for practices and materials to achieve cool roofs in commercial buildings, taking into consideration reduced air conditioning energy use as a function of cool roofs, the potential reduction in global warming from increased solar reflectance from buildings, and cool roofs criteria in State and local building codes and in national and local voluntary programs.

`(D) CONSULTATION- In establishing any national energy efficiency building code required by this section, the Secretary shall consult with the Director of the National Institute of Standards and Technology.

`(3) CONSENSUS STANDARD ASSISTANCE- (A) To support the development of consensus standards that may provide the basis for national energy efficiency building codes, minimize duplication of effort, encourage progress through consensus, and facilitate the development of greater building efficiency, the Secretary shall provide assistance to recognized consensus-based code development organizations to develop, and where the relevant code has been adopted as the national code, disseminate consensus based energy efficiency building codes as provided in this paragraph.

`(B) Upon a finding by the Secretary that a code developed by such an organization meets a target established under subsection (a), the Secretary shall--

`(i) send notice of the Secretary's finding to all duly authorized or appointed State and local code agencies; and

`(ii) provide sufficient support to such an organization to make the code available on the Internet, or to accomplish distribution of such code to all such State and local code agencies at no cost to the State and local code agencies.

`(C) The Secretary may contract with such an organization and with other organizations with expertise on codes to provide training for State and local code officials and building inspectors in the implementation and enforcement of such code.

`(D) The Secretary may provide grants and other support to such an organization to--

`(i) develop appropriate refinements to such code; and

`(ii) support analysis of options for improvements in the code to meet the next scheduled target.

`(4) CODE DEVELOPED BY SECRETARY- If the Secretary establishes a national energy efficiency building code under paragraph (2), the Secretary shall--

`(A) to the extent that such code is based on a prior code developed by a recognized consensus-based code development organization, negotiate and provide appropriate compensation to such organization for the use of the code materials that remain in the code established by the Secretary; and

`(B) disseminate the national energy efficiency building codes to State and local code officials, and support training and provide guidance and technical assistance to such officials as appropriate.

`(c) State Adoption of Energy Efficiency Building Codes-

`(1) REQUIREMENT- Not later than 1 year after a national energy efficiency building code for residential or commercial buildings is established or revised under subsection (b), each State--

`(A) shall--

`(i) review and update the provisions of its building code regarding energy efficiency to meet or exceed the target met in the new national code, to achieve equivalent or greater energy savings;

`(ii) document, where local governments establish building codes, that local governments representing not less than 80 percent of the State's urban population have adopted the new national code, or have adopted local codes that meet or exceed the target met in the new national code to achieve equivalent or greater energy savings; or

`(iii) adopt the new national code; and

`(B) shall provide a certification to the Secretary demonstrating that energy efficiency building code provisions that apply throughout the State meet or exceed the target met by the new national code, to achieve equivalent or greater energy savings.

`(2) CONFIRMATION-

`(A) REQUIREMENT- Not later than 90 days after a State certification is provided under paragraph (1)(B), the Secretary shall determine whether the State's energy efficiency building code provisions meet the requirements of this subsection.

`(B) ACCEPTANCE BY SECRETARY- If the Secretary determines under subparagraph (A) that the State's energy efficiency building code or codes meet the requirements of this subsection, the Secretary shall accept the certification.

`(C) DEFICIENCY NOTICE- If the Secretary determines under subparagraph (A) that the State's building code or codes do not meet the requirements of this subsection, the Secretary shall identify the deficiency in meeting the national building code energy efficiency target, and, to the extent possible, indicate areas where further improvement in the State's code provisions would allow the deficiency to be eliminated.

`(D) REVISION OF CODE AND RECERTIFICATION- A State may revise its code or codes and submit a recertification under paragraph (1)(B) to the Secretary at any time.

`(3) COMPLIANT CODE- For the purposes of meeting the target described in subsection (a)(1)(A) for residential buildings, a State that adopts the code represented in California's Title 24-2009 by the date two years after the date of enactment of the American Clean Energy and Security Act of 2009 shall be considered to have met the requirements of this subsection for the applicable period.

`(d) Application of National Code to State and Local Jurisdictions-

`(1) IN GENERAL- Upon the expiration of 1 year after a national energy efficiency building code is established under subsection (b), in any jurisdiction where the State has not had a certification relating to that code accepted by the Secretary under subsection (c)(2)(B), and the local government has not had a certification relating to that code accepted by the Secretary under subsection (e)(6)(B), the national code shall become the applicable energy efficiency building code for such jurisdiction.

`(2) STATE LEGISLATIVE ADOPTION- In a State in which the relevant building energy code is adopted legislatively, the deadline in paragraph (1) shall not be earlier than 1 year after the first day that the legislature meets following establishment of a national energy efficiency building code.

`(3) VIOLATIONS- It shall be a violation of this section for an owner or builder of a building to knowingly occupy, permit occupancy of, or convey the building if the building is subject to the requirements of--

`(A) a State energy efficiency building code with respect to which a certification has been accepted by the Secretary under subsection (c)(2)(B);

`(B) a local energy efficiency building code with respect to which a certification has been accepted by the Secretary under subsection (e)(6)(B); or

`(C) a national energy efficiency building code adopted under subsection (c)(1)(A)(i) or made applicable under paragraph (1) of this subsection,

if the building was constructed out of compliance with such code.

`(e) State Enforcement of Energy Efficiency Building Codes-

`(1) IN GENERAL- Each State, or where applicable under State law each local government, shall implement and enforce applicable State or local codes with respect to which a certification was accepted by the Secretary under subsection (c)(2)(B) or paragraph (6)(B) of this subsection, or the national energy efficiency building codes, as provided in this subsection.

`(2) STATE CERTIFICATION- Not later than 2 years after the date of a certification under subsection (c)(1) or the establishment of a national energy efficiency building code under subsection (b), each State shall certify that it has--

`(A) achieved compliance with--

`(i) State codes, or, as provided under State law, local codes, with respect to which a certification was accepted by the Secretary under subsection (c)(2)(B); or

`(ii) the national energy efficiency building code, as applicable; or

`(B) for any certification submitted within 7 years after the date of enactment of the American Clean Energy and Security Act of 2009, made significant progress toward achieving such compliance.

`(3) ACHIEVING COMPLIANCE- A State shall be considered to achieve compliance with a code described in paragraph (2)(A) if at least 90 percent of new and substantially renovated building space in that State in the preceding year upon inspection meets the requirements of the code. A certification under paragraph (2) shall include documentation of the rate of compliance based on--

`(A) independent inspections of a random sample of the new and substantially renovated buildings covered by the code in the preceding year; or

`(B) an alternative method that yields an accurate measure of compliance as determined by the Secretary.

`(4) SIGNIFICANT PROGRESS- A State shall be considered to have made significant progress toward achieving compliance with a code described in paragraph (2)(A) if--

`(A) the State has developed a plan, including for hiring enforcement staff, providing training, providing manuals and checklists, and instituting enforcement programs, designed to achieve full compliance within 5 years after the date of the adoption of the code;

`(B) the State is taking significant, timely, and measurable action to implement that plan;

`(C) the State has not reduced its expenditures for code enforcement; and

`(D) at least 50 percent of new and substantially renovated building space in the State in the preceding year upon inspection meets the requirements of the code.

`(5) Secretary'S DETERMINATION- Not later than 90 days after a State certification under paragraph (2), the Secretary shall determine whether the State has demonstrated that it has complied with the requirements of this subsection, including accurate measurement of compliance, or that it has made significant progress toward compliance. If such determination is positive, the Secretary shall accept the certification. If the determination is negative, the Secretary shall identify the areas of deficiency.

`(6) OUT OF COMPLIANCE-

`(A) IN GENERAL- Any State for which the Secretary has not accepted a certification under paragraph (5) by a deadline established under this subsection is out of compliance with this section.

`(B) LOCAL COMPLIANCE- In any State that is out of compliance with this section as provided in subparagraph (A), a local government may be in compliance with this section by meeting all certification requirements applicable to the State.

`(C) NONCOMPLIANCE- Any State that is not in compliance with this section, as provided in subparagraph (A), shall, until the State regains such compliance, be ineligible to receive--

`(i) emission allowances pursuant to subsection (h)(1);

`(ii) Federal funding in excess of that State's share (calculated according to the allocation formula in section 363 of the Energy Policy and Conservation Act (42 U.S.C. 6323)) of $125,000,000 each year; and

`(iii) for--

`(I) the first year for which the State is out of compliance, 25 percent of any additional funding or other items of monetary value otherwise provided under the American Clean Energy and Security Act of 2009;

`(II) the second year for which the State is out of compliance, 50 percent of any additional funding or other items of monetary value otherwise provided under the American Clean Energy and Security Act of 2009;

`(III) the third year for which the State is out of compliance, 75 percent of any additional funding or other items of monetary value otherwise provided under the American Clean Energy and Security Act of 2009; and

`(IV) the fourth and subsequent years for which the State is out of compliance, 100 percent of any additional funding or other items of monetary value otherwise provided under the American Clean Energy and Security Act of 2009.

`(f) Federal Enforcement- Where a State fails and local governments in that State also fail to enforce the applicable State or national energy efficiency building codes, the Secretary shall enforce such codes, as follows:

`(1) The Secretary shall establish, by rule, within 2 years after the date of enactment of the American Clean Energy and Security Act of 2009, an energy efficiency building code enforcement capability.

`(2) Such enforcement capability shall be designed to achieve 90 percent compliance with such code in any State within 1 year after the date of the Secretary's determination that such State is out of compliance with this section.

`(3) The Secretary may set and collect reasonable inspection fees to cover the costs of inspections required for such enforcement. Revenue from fees collected shall be available to the Secretary to carry out the requirements of this section upon appropriation.

`(g) Enforcement Procedures- (1) The Secretary shall assess a civil penalty for violations of this section, pursuant to subsection (d)(3), in accordance with the procedures described in section 333(d) of the Energy Policy and Conservation Act (42 U.S.C. 6303). The United States district courts shall also have jurisdiction to restrain any violation of this section or rules adopted thereunder, in accordance with the procedures described in section 334 of the Energy Policy and Conservation Act (42 U.S.C. 6304).

`(2) Each day of unlawful occupancy shall be considered a separate violation.

`(3) In the event a building constructed out of compliance with the applicable code has been conveyed by a knowing builder or knowing seller to an unknowing purchaser, the builder or seller shall be the violator.

`(h) Federal Support-

`(1) ALLOWANCE ALLOCATION FOR STATE COMPLIANCE- Not later than June 1, 2011, and on that date in each year thereafter, the Administrator shall provide emission allowances to the SEED Account for each State that the Secretary identifies as a State from which he has accepted the State's certification under subsection (e)(5) for compliance with the then current national energy efficiency building codes. Such allowances shall be distributed from an amount of 0.5 percent of the allowances made available for each year pursuant to the American Clean Energy and Security Act of 2009 to each State in accordance with a formula established by the Secretary as follows:

`(A) One-fifth in an equal amount to each of the 50 States and United States territories.

`(B) Two-fifths as a function of the relative energy use in all buildings in each State in the most recent year for which data is available.

`(C) Two-fifths based on the number of building construction starts recorded in each State, the number of new building permits applied for in each State, or other relevant available data indicating building activity in each State, in the judgment of the Secretary, for the year prior to the year of the allocation.

`(2) ALLOWANCE ALLOCATION TO LOCAL GOVERNMENTS- In the instance that the Secretary certifies that one or more local governments are in compliance with this section pursuant to subsection (e)(6)(B), the Administrator shall provide to each such local government the portion of the emission allowances that would have been provided to that State as a function of the population of that locality as a proportion of the population of that State as a whole.

`(3) UNALLOCATED ALLOWANCES- To the extent that allowances are not provided to State or local governments for lack of certification in any year, those allowances shall be added to the amount provided to those States and local governments that are certified as eligible in that year.

`(4) USE OF ALLOWANCES- Each State or each local government shall use such emission allowances as it receives pursuant to this section exclusively for the purposes of this section, including covering a reasonable portion of the costs of the development, adoption, implementation, and enforcement of a State or local energy efficiency building code with respect to which a certification is accepted by the Secretary under subsection (c)(2)(B) or subsection (e)(6)(B), or the national energy efficiency building code.

`(i) Annual Reports by Secretary- The Secretary shall annually submit to Congress, and publish in the Federal Register, a report on--

`(1) the status of national building energy efficiency codes;

`(2) the status of energy efficiency building code adoption and compliance in the States;

`(3) the implementation of this section; and

`(4) impacts of past action under this section, and potential impacts of further action, on lifetime energy use by buildings, including resulting energy and cost savings.'.