H.R. 1420 would require federal agencies, in consultation with the Office of Management and Budget, the Department of Energy (DOE), and the Environmental Protection Agency, to implement strategies to acquire, use, and maintain information technologies expected to increase energy efficiency. The act also would direct agencies to pursue activities to enhance the energy efficiency of data centers and would specify administrative and reporting requirements.
Using information from DOE and other agencies, CBO estimates that implementing H.R. 1420 would not significantly affect the federal budget. The act’s requirements are largely consistent with existing policy and are unlikely to result in significant changes in overall federal spending related to energy-efficient technologies. CBO estimates that any increased costs associated with reporting and administrative requirements under H.R. 1420, which would be subject to the availability of appropriated funds, would not be significant in any year and over the 2020-2024 period.
H.R. 1420 could affect direct spending if agencies procure energy-efficient technologies using long-term contracts known as energy savings performance contracts (ESPCs). However, because H.R. 1420 would not change those contracts’ scope or the ability of agencies to enter into them, CBO estimates that any incremental increase in direct spending stemming from increased use of such contracts under the act would not be significant.