[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5019 Reported in House (RH)]
Union Calendar No. 268
111th CONGRESS
2d Session
H. R. 5019
[Report No. 111-469, Part I]
To provide for the establishment of the Home Star Retrofit Rebate
Program, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 14, 2010
Mr. Welch (for himself, Mr. Ehlers, Mr. Markey of Massachusetts, Mr.
Waxman, and Mr. Cardoza) introduced the following bill; which was
referred to the Committee on Energy and Commerce, and in addition to
the Committee on Ways and Means, for a period to be subsequently
determined by the Speaker, in each case for consideration of such
provisions as fall within the jurisdiction of the committee concerned
April 29, 2010
Reported from the Committee on Energy and Commerce with an amendment,
and referred to the Committee on Oversight and Government Reform for a
period ending not later than May 3, 2010, for consideration of such
provisions of the bill and amendment as fall within the jurisdiction of
that Committee pursuant to clause 1(m), rule X
[Strike out all after the enacting clause and insert the part printed
in italic]
April 29, 2010
Committee on Ways and Means discharged
May 3, 2010
Additional sponsors: Mr. Hall of New York, Mr. Inslee, Mr. Pierluisi,
Mr. Langevin, Mr. McGovern, Mrs. Capps, Mr. Grijalva, Mr. Van Hollen,
Mr. Murphy of New York, Ms. Berkley, Mr. Sarbanes, Ms. Sutton, Mr.
Carnahan, Mr. Loebsack, Ms. Pingree of Maine, Mr. Weiner, Mr. Holt, Mr.
Courtney, Mr. Honda, Mr. Hastings of Florida, Mr. Ryan of Ohio, Mr.
McNerney, Mr. Hinchey, Mr. Braley of Iowa, Mr. Himes, Mr. Hare, Ms.
Schakowsky, Mr. Connolly of Virginia, Mr. Bishop of New York, Mr. Scott
of Georgia, Mr. Polis of Colorado, Mr. Patrick J. Murphy of
Pennsylvania, Ms. Norton, Mr. Carney, Mr. Jackson of Illinois, Mr.
Doyle, Ms. Richardson, Ms. Hirono, Ms. Matsui, and Mr. Perriello
May 3, 2010
Committee on Oversight and Government Reform discharged; committed to
the Committee of the Whole House on the State of the Union and ordered
to be printed
[For text of introduced bill, see copy of bill as introduced on April
14, 2010]
_______________________________________________________________________
A BILL
To provide for the establishment of the Home Star Retrofit Rebate
Program, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Home Star Energy Retrofit Act of
2010''.
SEC. 2. DEFINITIONS.
In this Act:
(1) Accredited contractor.--The term ``accredited
contractor'' means a qualified contractor--
(A) that is accredited--
(i) by the BPI; or
(ii) under other standards approved by the
Secretary, in consultation with the
Administrator; and
(B) effective 1 year after the date of enactment of
this Act, that uses a certified workforce.
(2) Administrator.--The term ``Administrator'' means the
Administrator of the Environmental Protection Agency.
(3) BPI.--The term ``BPI'' means the Building Performance
Institute.
(4) Certified workforce.--The term ``certified workforce''
means a residential energy efficiency construction workforce in
which all employees performing installation work are certified
in the appropriate job skills under--
(A) an applicable third party skills standard
established by--
(i) BPI;
(ii) North American Technician Excellence;
(iii) the Laborers' International Union of
North America;
(B) an applicable third party skills standard
established in the State in which the work is to be
performed, pursuant to a program operated by the Home
Builders Institute in connection with Ferris State
University, to be effective 30 days after notice is
provided by those organizations to the Secretary that
such program has been established in such State, except
to the extent that the Secretary determines within 30
days of such notice that the standard or certification
is incomplete; or
(C) other standards approved by the Secretary, in
consultation with the Secretary of Labor and the
Administrator.
(5) Conditioned space.--The term ``conditioned space''
means the area of a home that is--
(A) intended for habitation; and
(B) intentionally heated or cooled.
(6) DOE.--The term ``DOE'' means the Department of Energy.
(7) Electric utility.--The term ``electric utility'' means
any person, State agency, rural electric cooperative,
municipality, or other governmental entity that delivers or
sells electric energy at retail, including nonregulated
utilities and utilities that are subject to State regulation
and Federal power marketing administrations.
(8) EPA.--The term ``EPA'' means the Environmental
Protection Agency.
(9) Federal rebate processing system.--The term ``Federal
Rebate Processing System'' means the Federal Rebate Processing
System established under section 101(b).
(10) Gold star home energy retrofit program.--The term
``Gold Star Home Energy Retrofit Program'' means the Gold Star
Home Energy Retrofit Program established under section 104.
(11) Home.--The term ``home'' means a principal residential
dwelling unit in a building with no more than 4 dwelling units
that--
(A) is located in the United States; and
(B) was constructed before the date of enactment of
this Act.
(12) Home star loan program.--The term ``Home Star Loan
Program'' means the Home Star Energy Efficiency Loan Program
established under section 111.
(13) Indian tribe.--The term ``Indian tribe'' has the
meaning given the term in section 4 of the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 450b).
(14) National home performance council.--The term
``National Home Performance Council'' means the National Home
Performance Council, Inc.
(15) Natural gas utility.--The term ``natural gas utility''
means any person or State agency that transports, distributes,
or sells natural gas at retail, including nonregulated
utilities and utilities that are subject to State regulation.
(16) Qualified contractor.--The term ``qualified
contractor'' means a residential energy efficiency contractor
meeting minimum applicable requirements as determined under
section 101(c).
(17) Quality assurance framework.--The term ``quality
assurance framework'' means a policy structure adopted by a
State to develop high standards for ensuring quality in ongoing
energy efficiency retrofit activities in which the State has a
role, including operation of the quality assurance program,
while creating significant employment opportunities, in
particular for targeted workers.
(18) Quality assurance program.--
(A) In general.--The term ``quality assurance
program'' means a program authorized under this Act to
oversee the delivery of home efficiency retrofit
programs to ensure that work is performed in accordance
with standards and criteria established under this Act.
(B) Inclusions.--For purposes of subparagraph (A),
delivery of retrofit programs includes field
inspections required under this Act, with the consent
of participating consumers and without delaying rebate
payments to participating contractors and vendors.
(19) Quality assurance provider.--
(A) In general.--The term ``quality assurance
provider'' means any entity that is authorized pursuant
to this Act to perform field inspections and other
measures required to confirm the compliance of retrofit
work with the requirements of this Act.
(B) Certification requirement.--To be considered a
quality assurance provider under this paragraph, an
entity shall be certified through--
(i) the International Code Council;
(ii) the BPI;
(iii) the RESNET;
(iv) a State;
(v) a State-approved residential energy
efficiency retrofit program; or
(vi) any other entity designated for such
purpose by the Secretary, in consultation with
the Administrator.
(20) Rebate aggregator.--The term ``rebate aggregator''
means an entity that meets the requirements of section 102.
(21) RESNET.--The term ``RESNET'' means the Residential
Energy Services Network.
(22) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
(23) Silver star home energy retrofit program.--The term
``Silver Star Home Energy Retrofit Program'' means the Silver
Star Home Energy Retrofit Program established under section
103.
(24) State.--The term ``State'' means--
(A) a State;
(B) the District of Columbia;
(C) the Commonwealth of Puerto Rico;
(D) Guam;
(E) American Samoa;
(F) the United States Virgin Islands;
(G) the Northern Mariana Islands; and
(H) any other commonwealth, territory, or
possession of the United States.
(25) Targeted worker.--The term ``targeted worker'' means
an individual who is unemployed or underemployed and of an
employable age and a resident of an area with high or chronic
unemployment and low median household incomes, as defined by
the Secretary in consultation with the Secretary of Labor.
(26) Water utility.--The term ``water utility'' means any
State or local agency that delivers or sells water at wholesale
or retail through an engineered distribution system.
TITLE I--HOME STAR RETROFIT REBATE PROGRAM
SEC. 101. HOME STAR RETROFIT REBATE PROGRAM.
(a) In General.--The Secretary shall establish the Home Star
Retrofit Rebate Program.
(b) Federal Rebate Processing System.--
(1) In general.--Not later than 30 days after the date of
enactment of this Act, the Secretary, in consultation with the
Secretary of the Treasury and the Administrator, shall--
(A) establish a Federal Rebate Processing System
which shall serve as a database and information
technology system to allow rebate aggregators to submit
claims for reimbursement using standard data protocols;
(B) establish a national retrofit website that
provides information on the Home Star Retrofit Rebate
Program, including how to determine whether particular
energy efficiency measures are eligible for rebate and
how to participate in the program; and
(C) publish model forms and data protocols for use
by contractors, vendors, and quality assurance
providers to comply with the requirements of this
title.
(2) Model certification forms.--In carrying out this
section, the Secretary shall consider the model certification
forms developed by the National Home Performance Council.
(c) Qualified Contractor Requirements.--A qualified contractor may
perform retrofit work for which rebates are authorized under this title
only if it executes a Home Star participation agreement with a rebate
aggregator affirming that it meets applicable requirements, including--
(1) all applicable State contractor licensing requirements
or, with respect to a State that has no such requirements, any
appropriate comparable requirements established under paragraph
(6);
(2) insurance coverage of at least $1,000,000 for general
liability, and for such other purposes and in such other
amounts as may be required by the State;
(3) agreeing to provide warranties to homeowners that
completed work will--
(A) be free of significant defects;
(B) be installed in accordance with the
specifications of the manufacturer; and
(C) perform properly for a period of at least 1
year after the date of completion of the work;
(4) agreeing to pass through to the owner of a home,
through a discount, the full economic value of all rebates
received under this title with respect to the home;
(5) agreeing to provide to the homeowner a notice of--
(A) the amount of the rebate the contractor intends
to apply for with respect to the eligible work under
this title, before a contract is executed between the
contractor and a homeowner covering the eligible work;
and
(B) the means by which the rebate will be passed
through as a discount to the homeowner;
(6) all requirements of an applicable State quality
assurance framework by and after the date that is one year
after the date of enactment of this Act; and
(7) any other appropriate requirements as determined by the
Secretary, in consultation with the Administrator.
(d) Administrative and Technical Support.--Subject to section
112(b) and (c), beginning not later than 30 days after the date of
enactment of this Act, the Secretary shall provide such administrative
and technical support to rebate aggregators and States as is necessary
to carry out this title.
(e) Administration.--
(1) Appointment of personnel.--Notwithstanding the
provisions of title 5, United States Code, governing
appointments in the competitive service and General Schedule
classifications and pay rates, the Secretary may appoint such
professional and administrative personnel as the Secretary
considers necessary to carry out this title.
(2) Rate of pay.--The rate of pay for a person appointed
under paragraph (1) shall not exceed the maximum rate payable
for GS-15 of the General Schedule under chapter 53 of title 5,
United States Code.
(3) Consultants.--Notwithstanding section 303 of the
Federal Property and Administrative Services Act of 1949 (41
U.S.C. 253), the Secretary may retain such consultants on a
noncompetitive basis as the Secretary considers necessary to
carry out this title.
(4) Contracting.--In carrying out this title, the Secretary
may waive all or part of any provision of the Competition in
Contracting Act of 1984 (Public Law 98-369; 98 Stat. 1175), an
amendment made by that Act, or the Federal Acquisition
Regulation on a determination that circumstances make
compliance with the provisions contrary to the public interest.
(5) Regulations.--
(A) In general.--Notwithstanding section 553 of
title 5, United States Code, the Secretary may issue
regulations that the Secretary, in the sole discretion
of the Secretary, determines necessary to--
(i) establish;
(ii) achieve full operational status within
60 days after the date of enactment of this Act
for; or
(iii) carry out,
the Home Star Retrofit Rebate Program.
(B) Timing.--If the Secretary determines that
regulations described in subparagraph (A) are
necessary, the regulations shall be issued not later
than 60 days after such determination.
(C) Exception.--(i) The Secretary shall not utilize
the authority provided under this paragraph to--
(I) develop, adopt, or implement a public
labeling system that rates and compares the
energy performance of one home with another; or
(II) require the public disclosure of an
energy performance evaluation or rating
developed for any specific home.
(ii) Nothing in this subparagraph shall preclude--
(I) the computation, collection, or use, by
the Secretary, rebate aggregators, quality
assurance providers, or States for the purposes
of carrying out sections 104 and 105, of
information on the rating and comparison of the
energy performance of homes with and without
energy efficiency features or on energy
performance evaluation or rating;
(II) the use and publication of aggregate
data (without identifying individual homes or
participants) based on information referred to
in subclause (I) to determine or demonstrate
the performance of the Home Star program; or
(III) the provision of information referred
to in subclause (I) with respect to a specific
home--
(aa) to the State, homeowner,
quality assurance provider, rebate
aggregator, or contractor performing
retrofit work on that home, or an
entity providing Home Star services, as
necessary to enable carrying out this
title; or
(bb) for purposes of prosecuting
fraud and abuse.
(6) Information collection.--Chapter 35 of title 44, United
States Code, shall not apply to any information collection
requirement necessary for the implementation of the Home Star
Retrofit Rebate Program.
(7) Effective period.--Paragraphs (1), (3), (4), (5), and
(6) shall be effective only for fiscal years 2010 and 2011.
(f) Program Review.--Not later than 180 days after the date of
enactment of this Act, the Secretary shall prepare and transmit to
Congress a State-by-State analysis and review the distribution of Home
Star retrofit rebates under this title.
(g) Adjustment of Rebate Amounts.--Effective beginning on the date
that is 180 days after the date of enactment of this Act, the Secretary
may, after not less than 30 days public notice, prospectively adjust
the rebate amounts provided for under this title as necessary to
optimize the overall energy efficiency resulting from the Silver Star
Home Energy Retrofit Program and the Gold Star Home Energy Retrofit
Program.
(h) Indian Tribe Participation.--
(1) In general.--An Indian tribe, within 30 days after the
date of enactment of this Act, may indicate to the Secretary
its intention to act in place of a State for purposes of
carrying out the responsibilities of the State under this title
with respect to its tribal lands. If the Indian tribe so
indicates, the Secretary shall treat the Indian tribe as the
State for purposes of carrying out this title with respect to
those tribal lands.
(2) Transition of responsibilities.--The Secretary may
permit an Indian tribe, after the expiration of 30 days after
the date of enactment of this Act, to assume the
responsibilities of a State under this title with respect to
its tribal lands if the Secretary finds that such assumption of
responsibilities will not disrupt the ongoing administration of
the program under this title.
(3) Cooperation.--An Indian tribe may cooperate with a
State or the Secretary to ensure that all of the requirements
of this title are carried out with respect to the tribal lands.
(i) Implementation by Secretary.--
(1) In general.--If a State has not indicated to the
Secretary within 30 days after the date of enactment of this
Act that it is prepared to carry out section 105, or if at any
later time the Secretary determines that a State is no longer
prepared to carry out section 105, to the extent that no Indian
tribe assumes such responsibilities under subsection (h) the
Secretary shall assume the responsibilities of that State with
respect to carrying out section 105.
(2) Transition of responsibilities.--The Secretary may
permit a State, after the Secretary has assumed the
responsibilities of that State under paragraph (1), to assume
the responsibilities assigned to States under section 105 with
respect to that State if the Secretary finds that such
assumption of responsibilities will not disrupt the ongoing
administration of the program under this title.
(j) Limitation.--Rebates may not be provided under both section 103
and section 104 with respect to the same home.
(k) Forms for Certification and Quality Assurance.--
(1) In general.--Not later than 30 days after the date of
enactment of this Act, the Secretary shall make available on
the website established under subsection (b)(1)(B), model
certification forms for compliance with quality assurance
requirements under this title, to be submitted by--
(A) each qualified contractor, accredited
contractor, and quality assurance provider on
completion of an eligible home energy retrofit; and
(B) each quality assurance provider on completion
of field verification required under this section.
(2) National home performance council.--The Secretary,
States, and Indian tribes shall consider and may use model
certification forms developed by the National Home Performance
Council to ensure compliance with quality assurance
requirements under this title.
(l) Public-private Partnerships.--A State that receives a grant
under this title is encouraged to form partnerships with utilities,
energy service companies, and other entities--
(1) to assist in marketing the Home Star Retrofit Rebate
Program;
(2) to facilitate consumer financing;
(3) to assist in implementation of the Silver Star Home
Energy Retrofit Program and the Gold Star Home Energy Retrofit
Program, including installation of qualified energy retrofit
measures; and
(4) to assist in implementing quality assurance programs.
(m) Coordination of Rebate and Existing State-sponsored Programs.--
(1) In general.--A State shall, to the maximum extent
practicable, prevent duplication through coordination of a
program authorized under this title with--
(A) the Energy Star appliance rebates program
authorized under section 124 of the Energy Policy Act
of 2005 (42 U.S.C. 15821), and any other Federal
programs that provide funds to States for home or
appliance energy efficiency purposes; and
(B) comparable programs planned or operated by
States, political subdivisions, electric and natural
gas utilities, Federal power marketing administrations,
and Indian tribes.
(2) Existing programs.--In carrying out this subsection, a
State shall--
(A) give priority to--
(i) comprehensive retrofit programs in
existence on the date of enactment of this Act,
including programs under the supervision of
State utility regulators; and
(ii) using funds made available under this
title to enhance and extend existing programs;
and
(B) seek to enhance and extend existing programs by
coordinating with administrators of the programs.
(n) Health and Safety Requirements.--Nothing in this title shall
relieve any contractor from the obligation to comply with applicable
Federal, State, and local health and safety code requirements.
SEC. 102. REBATE AGGREGATORS.
(a) In General.--The Secretary shall develop a network of rebate
aggregators that can facilitate the delivery of rebates to
participating contractors and vendors, to reimburse those contractors
and vendors for discounts provided to homeowners for energy efficiency
retrofit work. The Secretary shall approve or deny an application from
a person seeking to become a rebate aggregator not later than 30 days
after receiving such application. The Secretary may disqualify any
rebate aggregator that fails to meet its obligations under this title
in a timely and competent manner.
(b) Availability.--Not later than 30 days after the date of
enactment of this Act, the Secretary shall identify at least 1 rebate
aggregator in each State ready and able to accept rebate applications
from any qualified contractor. Not later than 90 days after such date
of enactment, the Secretary shall ensure that rebate aggregation
services are available to all homeowners in the United States at the
lowest reasonable cost.
(c) Responsibilities.--Rebate aggregators shall--
(1) review each proposed rebate application for
completeness and accuracy;
(2) review all measures for which rebates are sought for
eligibility in accordance with this title;
(3) provide data to the Secretary for inclusion in the
database maintained through the Federal Rebate Processing
System, consistent with data protocols established by the
Secretary;
(4) not later than 30 days after the date of receipt,
distribute funds received from the Secretary to contractors,
vendors, or other persons in accordance with approved claims
for reimbursement made to the Federal Rebate Processing System;
(5) maintain appropriate accounting for rebate applications
processed, and their disposition;
(6) review contractor qualifications and accreditation and
retain documentation of such qualification and accreditation,
as required for contractors to be authorized to perform
residential energy efficiency retrofit work under this title;
and
(7) maintain information regarding contractors' fulfillment
of the requirements of section 101(c).
(d) Eligibility.--To be eligible to apply to the Secretary for
approval as a rebate aggregator, an entity--
(1) shall be--
(A) a Home Performance with Energy Star partner;
(B) an entity administering a residential energy
efficiency retrofit program established or approved by
a State;
(C) a Federal power marketing administration or the
Tennessee Valley Authority;
(D) an electric utility, natural gas utility, or
water utility administering or offering a residential
energy efficiency retrofit program; or
(E) an entity--
(i) with corporate status or status as a
State or local government;
(ii) who can demonstrate adequate financial
capability to manage a rebate aggregator
program, as evidenced by audited financial
records; and
(iii) whose participation in the program,
in the judgment of the Secretary, would not
disrupt existing residential retrofit programs
in the States that are carrying out the Home
Star Retrofit Rebate Program under this title;
(2) must be able to demonstrate--
(A) a relationship with 1 or more independent
quality assurance providers that is sufficient to meet
the volume of contracting services delivered;
(B) the capability to provide such electronic data
as is required by the Secretary to the Federal Rebate
Processing System; and
(C) a financial system that is capable of tracking
the distribution of rebates to participating
contractors and vendors; and
(3) shall include in its application the amount it proposes
to charge for the review and processing of a rebate under this
title.
(e) Prompt Processing of Rebates.--Within 10 days after receiving
an application for a rebate consistent with this title, a rebate
aggregator shall submit a claim for that rebate to the Federal Rebate
Processing System. Within 10 days after the Federal Rebate Processing
System receives such a submission from a rebate aggregator, the
Secretary shall provide the funds to the rebate aggregator necessary to
pay such rebates to the qualified contractor or vendor who applied for
them and to compensate the rebate aggregator for its services in
accordance with this title. Within 10 days of being provided such
funds, the rebate aggregator shall pay the rebates to the rebate
applicant.
(f) Public Utility Commission Efficiency Targets.--The Secretary
shall--
(1) develop guidelines for States to use to allow utilities
participating as rebate aggregators to count the energy savings
from their participation toward State-level energy savings
targets; and
(2) work with States to assist in the adoption of these
guidelines for the purposes and duration of the Home Star
Retrofit Rebate Program.
SEC. 103. SILVER STAR HOME ENERGY RETROFIT PROGRAM.
(a) In General.--During the first year after the date of enactment
of this Act, a Silver Star Home Energy Retrofit Program rebate shall be
awarded, subject to the maximum amount limitations under subsection
(d)(4), to participating contractors and vendors, to reimburse them for
discounts provided to the owner of the home for the retrofit work, for
the installation of energy savings measures--
(1) selected from the list of energy savings measures
described in subsection (b);
(2) installed after the date of enactment of this Act in
the home by a qualified contractor; and
(3) carried out in compliance with this section.
(b) Energy Savings Measures.--Subject to subsection (c), a rebate
shall be awarded under subsection (a) for the installation of the
following energy savings measures for a home energy retrofit that meet
technical standards established under this section:
(1) Whole house air sealing measures, including interior
and exterior measures, utilizing sealants, caulks, polyurethane
foams, gaskets, weather-stripping, mastics, and other building
materials in accordance with BPI standards or other procedures
approved by the Secretary.
(2) Attic insulation measures that--
(A) include sealing of air leakage between the
attic and the conditioned space, in accordance with BPI
standards or the attic portions of the DOE or EPA
thermal bypass checklist or other procedures approved
by the Secretary;
(B) add at least R-19 insulation to existing
insulation;
(C) result in at least R-38 insulation in DOE
climate zones 1 through 4 and at least R-49 insulation
in DOE climate zones 5 through 8, including existing
insulation, within the limits of structural capacity;
and
(D) cover at least--
(i) 100 percent of an accessible attic; or
(ii) 75 percent of the total conditioned
footprint of the house.
(3) Duct seal or replacement that--
(A) is installed in accordance with BPI standards
or other procedures approved by the Secretary; and
(B) in the case of duct replacement, replaces at
least 50 percent of a distribution system of the home.
(4) Wall insulation that--
(A) is installed in accordance with BPI standards
or other procedures approved by the Secretary;
(B) is to full-stud thickness; and
(C) covers at least 75 percent of the total
external wall area of the home.
(5) Crawl space insulation or basement wall and rim joist
insulation that is installed in accordance with BPI standards
or other procedures approved by the Secretary and--
(A) covers at least 500 square feet of crawl space
or basement wall and adds at least--
(i) R-19 of cavity insulation or R-15 of
continuous insulation to existing crawl space
insulation; or
(ii) R-13 of cavity insulation or R-10 of
continuous insulation to basement walls; and
(B) fully covers the rim joist with at least R-10
of new continuous or R-13 of cavity insulation.
(6) Window replacement that replaces at least 8 exterior
windows or skylights, or 75 percent of the exterior windows and
skylights in a home, whichever is less, with--
(A) windows that--
(i) are certified by the National
Fenestration Rating Council; and
(ii) comply with criteria applicable to
windows and skylights under section 25(c) of
the Internal Revenue Code of 1986; or
(B) skylights that comply with the 2010 Energy Star
specification for skylights.
(7) Door replacement that replaces at least 1 exterior door
with doors that comply with the 2010 Energy Star specification
for doors.
(8)(A) Heating system replacement of--
(i) a natural gas or propane furnace with a furnace
that has an AFUE rating of 92 or greater;
(ii) a natural gas or propane boiler with a boiler
that has an AFUE rating of 90 or greater;
(iii) an oil furnace with a furnace that has an
AFUE rating of 86 or greater and that uses an
electrically commutated blower motor;
(iv) an oil boiler with a boiler that has an AFUE
rating of 86 or greater and that has temperature reset
or thermal purge controls; or
(v) a wood or wood pellet furnace, boiler, or
stove, if--
(I) the new system--
(aa) meets at least 75 percent of
the heating demands of the home;
(bb) in the case of a furnace or
boiler, has a distribution system (such
as ducts or vents) that allows heat to
reach all or most parts of the home and
qualifies for Phase 2 of the EPA
Voluntary Program for Hydronic Heaters;
and
(cc) in the case of a stove,
replaces an existing wood or wood
pellet stove and is certified by the
EPA, and a voucher is provided by the
installer or other responsible party
certifying that the old stove has been
removed and rendered inoperable or
recycled at an appropriate recycling
facility; and
(II) an accredited independent laboratory
recognized by the EPA certifies that the new
system--
(aa) has thermal efficiency (lower
heating value) of at least 75 percent
for stoves and at least 90 percent for
furnaces and boilers; and
(bb) has particulate emissions of
less than 3.0 grams per hour for
stoves, and less than 0.32 lbs/mmBTU
for furnaces and boilers.
(B) A rebate may be provided under this section for the
replacement of a furnace or boiler described in clauses (i)
through (iv) of subparagraph (A) only if the new furnace or
boiler is installed in accordance with ANSI/ACCA Standard 5 QI-
2007.
(9) Air conditioner or air-source heat pump replacement
with a new unit that--
(A) is installed in accordance with ANSI/ACCA
Standard 5 QI-2007; and
(B) meets or exceeds--
(i) in the case of an air conditioner, SEER
16 and EER 13; and
(ii) in the case of an air-source heat
pump, SEER 15, EER 12.5, and HSPF 8.5.
(10) Heating or cooling system replacement with an Energy
Star qualified geothermal heat pump that meets Tier 2
efficiency requirements and that is installed in accordance
with ANSI/ACCA Standard 5 QI-2007.
(11) Replacement of a natural gas, propane, or electric
water heater with--
(A) a natural gas or propane condensing storage
water heater with an energy factor of 0.80 or more or a
thermal efficiency of 90 percent or more;
(B) a tankless natural gas or propane water heater
with an energy factor of at least .82;
(C) a natural gas or propane storage water heater
with an energy factor of at least .67;
(D) an indirect water heater with an insulated
storage tank that--
(i) has a storage capacity of at least 30
gallons and is insulated to at least R-16; and
(ii) is installed in conjunction with a
qualifying boiler described in paragraph (8);
(E) an electric water heater with an energy factor
of 2.0 or more;
(F) an electric tankless water heater with an
efficiency factor of .96 or more, that operates on not
greater than 25 kilowatts;
(G) a solar hot water system that--
(i) is certified by the Solar Rating and
Certification Corporation; or
(ii) meets technical standards established
by the State of Hawaii; or
(H) a water heater installed in conjunction with a
qualifying geothermal heat pump described in paragraph
(10) that provides domestic water heating through the
use of a desuperheater or demand water heating
capability.
(12) Storm windows that--
(A) are installed on at least 5 existing single-
glazed windows that do not have storm windows;
(B) are installed in a home listed on or eligible
for listing in the National Register of Historic
Places; and
(C) comply with any procedures that the Secretary
may set for storm windows and their installation.
(13) Window film that is installed on at least 8 exterior
windows, doors, or skylights, or 75 percent of the total
exterior square footage of glass in a home, whichever is less,
with window films that--
(A) are certified by the National Fenestration
Rating Council; and
(B) have--
(i) a solar heat gain coefficient of 0.43
or less with a visible light-to-solar heat gain
coefficient of at least 1.1 in 2009
International Energy Conservation Code climate
zones 1-3; or
(ii) a solar heat gain coefficient of 0.43
or less with a visible light light-to-solar
heat gain coefficient of at least 1.1 and a U-
factor of 0.40 or less as installed in 2009
International Energy Conservation Code climate
zones 4-8.
(c) Installation Costs.--Measures described in paragraphs (1)
through (13) of subsection (b) shall include expenditures for labor and
other installation-related costs, including venting system modification
and condensate disposal, properly allocable to the onsite preparation,
assembly, or original installation of the component.
(d) Amount of Rebate.--
(1) In general.--Except as provided in paragraphs (2)
through (4), the amount of a rebate provided under subsection
(a) shall be $1,000 per measure for the installation of energy
savings measures described in subsection (b).
(2) Higher rebate amount.--Except as provided in paragraph
(4), the amount of a rebate provided under subsection (a) shall
be $1,500 per measure for--
(A) attic insulation and air sealing described in
subsection (b)(1) or (2); and
(B) wall insulation described in subsection (b)(4).
(3) Lower rebate amount.--Except as provided in paragraph
(4), the amount of a rebate provided under subsection (a) shall
be--
(A) $125 per door for the installation of up to a
maximum of 2 Energy Star doors described in subsection
(b)(7) for each home;
(B) $250 for a maximum of 1 natural gas or propane
storage water heater described in subsection (b)(11)(C)
for each home;
(C) $250 for rim joist insulation described in
subsection (b)(5)(B);
(D) $50 for each storm window described in
subsection (b)(12), with a minimum of 5 storm windows
and a maximum of 12;
(E) $250 each for a maximum of 4 electric tankless
water heaters described in subsection (b)(11)(F) for
each home; and
(F) $500 for window film described in subsection
(b)(13).
(4) Maximum amount.--The total amount of rebates provided
for a home under this section shall not exceed the lower of--
(A) $3,000;
(B) 50 percent of the total cost of the installed
measures; or
(C) if the Secretary finds that the net value to
the homeowner of the rebates, as a function of the
discount the contractor or vendor provides to the
homeowner for the installed measures, is less than the
amount of the rebates, the actual net value to the
homeowner.
(e) Verification and Correction of Work.--
(1) Reimbursement.--On submission of a claim by a rebate
aggregator to the Federal Rebate Processing System, the
Secretary shall provide reimbursement to the rebate aggregator
for energy-efficiency measures installed in a home, subject to
paragraphs (2) and (3).
(2) Verification.--
(A) Percentage of retrofits verified.--
(i) In general.--Except as provided in
clause (ii), not less than--
(I) 20 percent of the retrofits
performed by each qualified contractor
under this section with respect to a
rebate described in subsection (a)
shall be randomly subject to field
verification by an independent quality
assurance provider of all work
associated with the retrofit; and
(II) in the case of a qualified
contractor that uses a certified
workforce, 10 percent of the retrofits
performed by that contractor under this
section with respect to a rebate
described in subsection (a) shall be
randomly subject to field verification
by an independent quality assurance
provider of all work associated with
the retrofit.
(ii) Exceptions.--In the case of a
qualified contractor whose previous retrofit
work--
(I) the Secretary has found to fail
to comply with the requirements of this
section, the Secretary may establish a
higher percentage of the retrofits
performed by that contractor under this
section with respect to a rebate
described in subsection (a) to be
subject to field verification by an
independent quality assurance provider;
and
(II) the Secretary has found to
successfully comply with the
requirements of this section, the
Secretary may establish a lower
percentage of the retrofits performed
by that contractor under this section
with respect to a rebate described in
subsection (a) to be subject to field
verification by an independent quality
assurance provider.
(B) Homeowner complaint.--A homeowner may make a
complaint under the quality assurance program that
compliance with the quality assurance requirements of
this title has not been achieved. The quality assurance
program shall provide that, upon receiving such a
complaint, an independent quality assurance provider
shall conduct field verification on the retrofit work
performed by the contractor. Verifications under this
subparagraph shall be in addition to those conducted
under subparagraph (A), and shall be corrected in
accordance with paragraph (3).
(3) Correction.--Rebates under subsection (a) shall be made
subject to the following conditions:
(A) The installed measures will comply with the
specifications and quality standards under this section
if a field verification by a quality assurance provider
finds that corrective work is needed. Such compliance
shall be achieved by the installing accredited
contractor not later than 14 days after the date of
notification of a defect pursuant to a warranty,
provided at no additional cost to the homeowner.
(B) A subsequent quality assurance visit shall be
conducted to evaluate the remedy not later than 7 days
after notification that the defect has been corrected.
(C) The quality assurance provider shall notify the
contractor of the disposition of such visit not later
than 7 days after the date of the visit.
(4) Access to home.--In order to be eligible for a discount
from a contractor or vendor for which a rebate is provided
under subsection (a), a homeowner shall agree to permit such
access to the home, upon reasonable notice and at a mutually
convenient time, as is necessary to verify and correct retrofit
work.
(f) Products Purchased Without Installation Services.--
(1) In general.--A Silver Star Home Energy Retrofit Program
rebate shall be awarded for attic, wall, and crawl space
insulation and air-sealing products that--
(A)(i) in the case of insulation, qualify for a tax
credit under section 25C of the Internal Revenue Code
of 1986, but with respect to which no claim for such a
tax credit has been made; and
(ii) in the case of air sealing products, are
sealants, caulks, polyurethane foams, gaskets, weather-
stripping, mastics, or other air sealing products
described in subsection (b)(1);
(B) are purchased by a homeowner for installation
by the homeowner in a home identified by its address by
the homeowner;
(C) are accompanied by educational materials on
proper installation of the products, including
materials emphasizing the importance of air sealing
when insulating; and
(D) are identified and attributed to that home in a
rebate submission by the vendor to a rebate aggregator.
(2) Limitation.--No rebate may be provided under this
subsection with respect to insulation or products that are
employed in energy-efficiency measures with respect to which a
rebate is provided under this section or section 104.
(3) Amount of rebate.--A rebate under this subsection shall
be awarded for 50 percent of the total cost of the products
described in paragraph (1), not to exceed $250 per home.
(g) Review.--
(1) In general.--The Secretary shall determine whether
information submitted to the Federal Rebate Processing System
with respect to a rebate was complete, and on the basis of that
information and other information available to the Secretary,
shall determine whether the requirements of this section were
met in all respects.
(2) Incorrect payment.--On a determination of the Secretary
under paragraph (1) that a payment was made incorrectly to a
party, or that sufficient information was not submitted to the
Federal Rebate Processing System to enable such determination,
the Secretary--
(A) may--
(i) recoup the amount of the incorrect
payment; or
(ii) withhold the amount of the incorrect
payment from a payment made to the party
pursuant to a subsequent request; and
(B) shall, to the extent the Secretary determines
the benefit of the rebate was not passed through to the
homeowner through a discount on the price of the
retrofit work, order the contractor or vendor to pay
the amount of rebate benefit not previously passed
through to the homeowner.
SEC. 104. GOLD STAR HOME ENERGY RETROFIT PROGRAM.
(a) In General.--A Gold Star Home Energy Retrofit Program rebate
shall be awarded, subject to subsection (b), to participating
accredited contractors and vendors, to reimburse them for discounts
provided to the owner of the home for the retrofit work, for retrofits
that achieve whole home energy savings carried out after the date of
enactment of this Act in accordance with this section.
(b) Eligible Measures.--Rebates may be provided under this section
for --
(1) any measure listed as eligible for Silver Star rebates
in section 103; and
(2) any other energy-saving measure, such as home energy
management systems, high-efficiency appliances, highly
reflective roofing, awnings, canopies, and similar external
fenestration attachments, automatic boiler water temperature
controllers, and mechanical air circulation and heat exchangers
in a passive-solar home--
(A) that can be demonstrated, when installed and
operated as intended, to improve energy efficiency; and
(B) for which an energy efficiency contribution can
be determined with confidence.
(c) Energy Savings.--
(1) In general.--Reductions in whole home energy
consumption under this section shall be determined by a
comparison of the simulated energy consumption of the home
before and after the retrofit of the home.
(2) Documentation.--The percent improvement in energy
consumption of a home under this section shall be documented
through--
(A)(i) the use of a whole home simulation software
program that has been approved under the Weatherization
Assistance Program for Low-Income Persons established
under part A of title IV of the Energy Conservation and
Production Act (42 U.S.C. 6861 et seq.); or
(ii) a equivalent performance test established by
the Secretary, in consultation with the Administrator;
or
(B)(i) the use of a whole home simulation software
program that has been approved under RESNET Publication
No. 06-001 (or a successor publication approved by the
Secretary);
(ii) an equivalent performance test established by
the Secretary, in consultation with the Administrator;
(iii) a State-certified equivalent rating network,
as specified by IRS Notice 2008-35; or
(iv) a HERS rating system approved or required by
the law of the State in which the home is located.
(3) Monitoring.--The Secretary--
(A) shall continuously monitor the software
programs used for determining rebates under this
section; and
(B) may disallow the use of software programs that
improperly assess energy savings.
(4) Assumptions and testing.--The Secretary may--
(A) establish simulation software program
assumptions for carrying out paragraph (2);
(B) require compliance with software program
performance tests covering--
(i) mechanical system performance;
(ii) duct distribution system efficiency;
(iii) hot water performance; or
(iv) other measures; and
(C) require the simulation of pre-retrofit energy
usage to be determined by metered pre-retrofit energy
usage.
(5) Recommended measures.--Software programs used under
this subsection shall have the ability at a minimum to assess
the savings associated with all the measures for which rebates
are specifically provided under the Silver Star Home Energy
Retrofit Program.
(d) Amount of Rebate.--Subject to subsection (e)(2), the amount of
a rebate provided under this section shall be--
(1) $3,000 for a 20-percent reduction in whole home energy
consumption; and
(2) an additional $1,000 for each additional 5-percent
reduction up to the lower of--
(A) $8,000; or
(B) 50 percent of the total retrofit cost.
(e) Verification and Correction of Work.--
(1) Reimbursement.--On submission of a claim by a rebate
aggregator to the Federal Rebate Processing System, the
Secretary shall provide reimbursement to the rebate aggregator
for energy-efficiency measures installed in a home, subject to
paragraphs (2) and (3).
(2) Verification.--
(A) In general.--Subject to subparagraph (B), all
work conducted in a home as part of a whole-home
retrofit by an accredited contractor under this section
shall be subject to random field verification by an
independent quality assurance provider at a rate of--
(i) 15 percent; or
(ii) in the case of work performed by an
accredited contractor using a certified
workforce, 10 percent.
(B) Verification not required.--A home shall not be
subject to field verification under subparagraph (A)
if--
(i) a post-retrofit home energy rating is
conducted by an entity that is an eligible
certifier in accordance with--
(I) RESNET Publication No. 06-001
(or a successor publication approved by
the Secretary);
(II) a State-certified equivalent
rating network, as specified in IRS
Notice 2008-35; or
(III) a HERS rating system required
by the law of the State in which the
home is located;
(ii) the eligible certifier is independent
of the accredited contractor in accordance with
RESNET Publication No. 06-001 (or a successor
publication approved by the Secretary); and
(iii) the rating includes field
verification of all measures for which rebates
are being provided.
(C) Homeowner complaint.--A homeowner may make a
complaint under the quality assurance program that
compliance with the quality assurance requirements of
this title has not been achieved. The quality assurance
program shall provide that, upon receiving such a
complaint, an independent quality assurance provider
shall conduct field verification on the retrofit work
performed by the contractor. Verifications under this
subparagraph shall be in addition to those conducted
under subparagraph (A), and shall be corrected in
accordance with paragraph (3).
(D) Access to home.--In order to be eligible for a
discount from a contractor or vendor for which a rebate
is provided under this section, a homeowner shall agree
to permit such access to the home, upon reasonable
notice and at a mutually convenient time, as is
necessary to verify and correct retrofit work.
(3) Correction.--Rebates under this section shall be made
subject to the following conditions:
(A) The installed measures will comply with
manufacturer and applicable code standards and the
specifications and quality standards under this section
if a field verification by an independent quality
assurance provider finds that corrective work is
needed. Such compliance shall be achieved by the
installing accredited contractor not later than 14 days
after the date of notification of a defect pursuant to
a warranty, provided at no additional cost to the
homeowner.
(B) A subsequent quality assurance visit shall be
conducted to evaluate the remedy not later than 7 days
after notification that the defect has been corrected.
(C) The quality assurance provider shall notify the
contractor of the disposition of such visit not later
than 7 days after the date of the visit.
(f) Review.--
(1) In general.--The Secretary shall determine whether
information submitted to the Federal Rebate Processing System
with respect to a rebate was complete, and on the basis of that
information and other information available to the Secretary,
shall determine whether the requirements of this section were
met in all respects.
(2) Incorrect payment.--On a determination of the Secretary
under paragraph (1) that a payment was made incorrectly to a
party, or that sufficient information was not submitted to the
Federal Rebate Processing System to enable such determination,
the Secretary--
(A) may--
(i) recoup the amount of the incorrect
payment; or
(ii) withhold the amount of the incorrect
payment from a payment made to the party
pursuant to a subsequent request; and
(B) shall, to the extent the Secretary determines
the benefit of the rebate was not passed through to the
homeowner through a discount on the price of the
retrofit work, order the contractor or vendor to pay
the amount of rebate benefit not previously passed
through to the homeowner.
SEC. 105. QUALITY ASSURANCE.
(a) Quality Assurance Framework.--
(1) In general.--States that elect to carry out a quality
assurance program pursuant to subsection (b) shall plan,
develop, and implement a quality assurance framework. The
Secretary shall promptly solicit the submission of model State
quality assurance framework plans consistent with the
requirements of this section and, not later than 60 days after
the date of enactment of this Act, shall approve one or more
such model plans that incorporate nationally consistent high
standards for optional use by States. Not later than 180 days
after the date of enactment of this Act, each State electing to
develop a quality assurance framework shall submit its plan to
the Secretary, who shall then approve or reject such plan
within 30 days, providing a detailed statement of deficiencies
if the plan is rejected. If a State's plan is rejected, that
State may resubmit its plan within 30 days.
(2) Implementation.--A State shall--
(A) develop a quality assurance framework in
consultation with industry stakeholders, including
representatives of efficiency program managers,
contractors, community and workforce organizations, and
environmental, energy efficiency, and labor
organizations; and
(B) implement the quality assurance framework not
later than one year after the date of enactment of this
Act.
(3) Components.--The quality assurance framework
established under this subsection shall include--
(A) minimum standards for accredited contractors,
including--
(i) compliance with applicable Federal,
State, and local laws;
(ii) use of a certified workforce;
(iii) maintenance of records needed to
verify compliance; and
(iv) use of independent contractors only
when appropriately classified as such pursuant
to Revenue ruling 87-41 and section 530(d) of
the Revenue Act of 1978 and relevant State law;
(B) maintenance of a list of accredited
contractors;
(C) requirements for maintenance and delivery to
the Federal Rebate Processing System of information
needed to verify compliance and ensure appropriate
compensation for quality assurance providers;
(D) targets and realistic plans for--
(i) the recruitment of minority and women-
owned small business enterprises;
(ii) the employment of graduates of
training programs that primarily serve targeted
workers;
(iii) the employment of targeted workers;
and
(iv) the availability of financial
assistance under the Home Star Loan Program
to--
(I) public use microdata areas that
have a poverty rate of 12 percent or
more; and
(II) homeowners served by units of
local government in jurisdictions that
have an unemployment rate that is 2
percent higher than the national
unemployment rate;
(E) a plan to link workforce training for energy
efficiency retrofits with training for the broader
range of skills and occupations in construction or
emerging clean energy industries;
(F) quarterly reports to the Secretary on the
progress of implementation of the quality assurance
framework and its success in meeting its targets and
plans; and
(G) maintenance of a list of qualified quality
assurance providers and minimum standards for such
quality assurance providers.
(4) Noncompliance.--If the Secretary determines that a
State that has elected to implement a quality assurance
program, but has failed to plan, develop, or implement a
quality assurance framework in accordance with this section,
the Secretary shall suspend further grants for State
administration pursuant to section 112(b)(1).
(b) Quality Assurance Programs.--
(1) In general.--A State may carry out a quality assurance
program--
(A) as part of a State energy conservation plan
established under part D of title III of the Energy
Policy and Conservation Act (42 U.S.C. 6321 et seq.);
(B) to be managed by the office or the designee of
the office--
(i) that is responsible for the development
of the plan under section 362 of that Act (42
U.S.C. 6322); and
(ii) to the maximum extent practicable,
that is conducting an existing energy
efficiency program; and
(C) in the case of a grant made to an Indian tribe,
to be managed by an entity designated by the Indian
tribe to carry out a quality assurance program or a
national quality assurance program manager.
(2) Noncompliance.--If the Secretary determines that a
State has not provided or cannot provide adequate oversight
over a quality assurance program to ensure compliance with this
title, the Secretary may--
(A) withhold further quality assurance funds from
the State; and
(B) require that quality assurance providers
operating in the State be overseen by a national
quality assurance program manager selected by the
Secretary.
(3) Implementation.--A State that receives a grant under
this title may implement a quality assurance program through
the State or an independent quality assurance provider
designated by the State, including--
(A) an energy service company;
(B) an electric utility;
(C) a natural gas utility;
(D) an independent administrator designated by the
State; or
(E) a unit of local government.
SEC. 106. REPORTS.
(a) In General.--The Secretary shall submit to the Committee on
Energy and Natural Resources of the Senate and the Committee on Energy
and Commerce of the House of Representatives a report on this title--
(1) not later than 1 year after the date of enactment of
this Act; and
(2) not later than the earlier of--
(A) 2 years after the date of enactment of this
Act; or
(B) December 31, 2012.
(b) Contents.--The report shall include a description of--
(1) the energy savings produced as a result of this title;
(2) the direct and indirect employment created as a result
of the programs supported under this title;
(3) the specific entities implementing the energy
efficiency programs;
(4) the beneficiaries who received the efficiency
improvements;
(5) the manner in which funds provided under this title
were used;
(6) the sources (such as mortgage lenders, utility
companies, and local governments) and types of financing used
by the beneficiaries to finance the retrofit expenses that were
not covered by rebates provided under this title; and
(7) the results of verification requirements; and
(8) any other information the Secretary considers
appropriate.
(c) Required Information.--
(1) Requirement.--Rebate aggregators and States
participating in the Home Star Retrofit Rebate Program shall
provide to the Secretary such information as the Secretary
requires to prepare the report required under this section.
(2) Noncompliance.--If the Secretary determines that a
rebate aggregator or State has not provided the information
required under paragraph (1), the Secretary shall provide to
the rebate aggregator or State a period of at least 90 days to
provide the necessary information, subject to withholding of
funds or reduction of future grant amounts.
SEC. 107. TREATMENT OF REBATES.
(a) In General.--For purposes of the Internal Revenue Code of 1986,
rebates received under this title--
(1) shall not be considered taxable income to a homeowner;
and
(2) shall supplant any credit allowed under section 25C or
25D of that Code for eligible work performed in the home of the
homeowner.
(b) Notice.--A participating contractor shall provide notice to a
homeowner of the provisions of subsection (a) before eligible work is
performed in the home of the homeowner.
SEC. 108. HEATING AND COOLING EFFICIENCY STUDY.
(a) In General.--The Secretary shall submit to the Committee on
Energy and Natural Resources of the Senate and the Committee on Energy
and Commerce of the House of Representatives a study not later than 1
year after the date of enactment of this Act.
(b) Contents.--The study shall include a description of--
(1) the efficiency through the life-cycle of air
conditioning and heat pump products eligible under section 103;
and
(2) a comparison of the efficiency through the life-cycle
of air conditioning and heat pump products eligible under
section 103 to the efficiency through the life-cycle of air
conditioning and heat pump products not eligible under section
103.
SEC. 109. PUBLIC INFORMATION CAMPAIGN.
Not later than 60 days after the date of enactment of this Act, the
Administrator, in consultation with the States and the Secretary, shall
develop and implement a public education campaign that describes--
(1) the benefits of home energy retrofits; and
(2) the availability of rebates for the installation of
qualifying energy savings measures under the Silver Star Home
Energy Retrofit Program and for whole home energy savings under
the Gold Star Home Energy Retrofit Program.
SEC. 110. PENALTIES.
(a) In General.--The Secretary may--
(1) assess and compromise a civil penalty against a person
who violates this title (or any regulation issued under this
title); and
(2) require from any entity the records and inspections
necessary to enforce this title.
(b) Civil Penalty.--A civil penalty assessed under subsection (a)
shall be in an amount not greater than the higher of--
(1) $15,000 for each violation; or
(2) 3 times the value of any associated rebate under this
title.
SEC. 111. HOME STAR ENERGY EFFICIENCY LOAN PROGRAM.
(a) Definitions.--In this section:
(1) Eligible participant.--The term ``eligible
participant'' means a homeowner who receives financial
assistance from a qualified financing entity to carry out
qualifying energy savings measures under the Silver Star Home
Energy Retrofit Program or whole home energy savings under the
Gold Star Home Energy Retrofit Program.
(2) Qualified financing entity.--The term ``qualified
financing entity'' means a State, political subdivision of a
State, tribal government, electric utility, natural gas
utility, nonprofit or community-based organization, energy
service company, retailer, or any other entity that--
(A) meets the eligibility requirements of this
section; and
(B) is designated by the Governor of a State in
accordance with subsection (e)(1).
(3) Qualified loan program mechanism.--The term ``qualified
loan program mechanism'' means a mechanism for the
establishment and operation of a loan program that is--
(A) administered by a qualified financing entity;
and
(B) funded in significant part--
(i) by funds provided by or overseen by a
State; or
(ii) through the energy loan program of the
Federal National Mortgage Association.
(b) Establishment.--The Secretary shall establish a Home Star
Energy Efficiency Loan Program under which the Secretary shall make
funds available to States to support financial assistance provided by
qualified financing entities for the installation of qualifying energy
savings measures under the Silver Star Home Energy Retrofit Program or
whole home energy savings under the Gold Star Home Energy Retrofit
Program.
(c) Eligibility of Qualified Financing Entities.--To be eligible to
participate in the Home Star Loan Program, a qualified financing entity
shall--
(1) offer a financing product under which eligible
participants may pay over time for the cost to the eligible
participant (after all applicable Federal, State, local, and
other rebates or incentives are applied) of installations
described in subsection (b);
(2) require all financed installations to be performed by
contractors in a manner that meets minimum standards provided
under sections 103 and 104;
(3) establish standard underwriting criteria to determine
the eligibility of Home Star Loan Program applicants, which
criteria shall be consistent with--
(A) with respect to unsecured consumer loan
programs, standard underwriting criteria used under the
energy loan program of the Federal National Mortgage
Association; or
(B) with respect to secured loans or other forms of
financial assistance, commercially recognized best
practices applicable to the form of financial
assistance being provided (as determined by the
designated entity administering the Home Star Loan
Program in the State); and
(4) undertake particular efforts to make such loans
available in public use microdata areas that have a poverty
rate of 12 percent or more in a proportion of total loans made
at least equal to the proportion the number of residents in
such areas bears to the total population of the area served by
that qualified financing entity.
(d) Allocation.--In allocating 75 percent of the funds made
available to States for each fiscal year under this section, the
Secretary shall use the formula used to allocate funds to States to
carry out State energy conservation plans established under part D of
title III of the Energy Policy and Conservation Act (42 U.S.C. 6321 et
seq.). In allocating the remaining 25 percent of the funds made
available to States for each fiscal year under this section, the
Secretary may vary the result of the formula to recognize and reward
those States that make the best progress in providing loans to low-
income areas pursuant to subsection (c)(4).
(e) Qualified Financing Entities.--Before making funds available to
a State under this section, the Secretary shall require the Governor of
the State to provide to the Secretary a letter of assurance that the
State--
(1) has 1 or more qualified financing entities that meet
the requirements of this section;
(2) has established, or has required its designated
qualified financing entities to establish, a qualified loan
program mechanism that--
(A) will use a quality assurance program
established under this title or another appropriate
methodology to ensure energy savings;
(B) incorporates an effective repayment mechanism,
which may include--
(i) on-utility-bill repayment;
(ii) tax assessment or other form of
property assessment financing;
(iii) municipal service charges;
(iv) energy or energy efficiency services
contracts;
(v) energy efficiency power purchase
agreements;
(vi) unsecured loans applying the
underwriting requirements of the energy loan
program of the Federal National Mortgage
Association; or
(vii) alternative contractual repayment
mechanisms that have been demonstrated to have
appropriate risk mitigation features; and
(3) will provide, in a timely manner, all information
regarding the administration of the Home Star Loan Program as
the Secretary may require to permit the Secretary to meet the
program evaluation requirements of subsection (h).
(f) Use of Funds.--Funds made available to States for carrying out
the Home Star Loan Program may be used to support financing mechanisms
offered by qualified financing entities to eligible participants,
including--
(1) interest rate reductions to interest rates as low as 0
percent;
(2) loan loss reserves or other forms of credit
enhancement;
(3) revolving loan funds from which qualified financing
entities may offer direct loans; or
(4) other debt instruments (excluding securitization
instruments) necessary--
(A) to use available funds to obtain appropriate
leverage through private investment; and
(B) to support widespread deployment of energy
efficiency programs.
(g) Use of Repaid Funds.--In the case of a revolving loan fund
described in subsection (f)(3), a qualified financing entity may use
funds repaid by eligible participants under the Home Star Loan Program
to provide financial assistance for additional eligible participants
for installations described in subsection (b) in a manner that is
consistent with this section.
(h) Program Evaluation.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall submit to Congress a program
evaluation that describes--
(1) how many eligible participants have participated in the
Home Star Loan Program;
(2) how many jobs have been created through the Home Star
Loan Program, directly and indirectly;
(3) what steps could be taken to promote further deployment
of energy efficiency retrofits;
(4) the quantity of verifiable energy savings, homeowner
energy bill savings, and other benefits of the Home Star Loan
Program; and
(5) the performance of the programs carried out by
qualified financing entities under this section, including
information on the rate of default and repayment.
SEC. 112. FUNDING.
(a) Authorization of Appropriations.--
(1) In general.--Subject to subsection (j), there are
authorized to be appropriated to carry out this title
$6,000,000,000 for the period of fiscal years 2010 and 2011, to
remain available until expended.
(2) Maintenance of funding.--Funds provided under this
section shall supplement and not supplant any prior or planned
Federal and State funding provided to carry out energy
efficiency programs. To the extent the Secretary finds that a
State has supplanted other such programs with funding under
this section, the Secretary may withhold an equivalent amount
of funding from allocations for the State under this title.
(b) Grants to States.--
(1) In general.--Except as otherwise provided in this
subsection, of the amount provided under subsection (a), not
more than 9 percent is authorized to be appropriated to the
Secretary for providing grants to States, to be used for--
(A) administrative costs of carrying out this
title;
(B) development and implementation of quality
assurance frameworks;
(C) oversight of quality assurance programs;
(D) establishment and delivery of financing
mechanisms, in accordance with paragraph (2); and
(E) coordination with existing residential retrofit
programs and infrastructure development to assist
deployment of the Home Star Retrofit Rebate Program.
(2) Financing.--Of the amounts allocated to the States
under paragraph (1), not less than 60 percent shall be used to
carry out section 111.
(3) Distribution to states.--
(A) Provision of funds.--Not later than 30 days
after the date of enactment of this Act, the Secretary
shall provide to the State energy offices, or such
other State entities as are designated by the Governor,
of States that are carrying out responsibilities under
section 105, 25 percent of the funds described in
paragraph (1).
(B) Allocation.--Funds described in subparagraph
(A) shall be made available in accordance with the
allocation formula for State energy conservation plans
established under part D of title III of the Energy
Policy and Conservation Act (42 U.S.C. 6321 et seq.).
(C) Fund allocation process.--The Secretary shall
allocate the remaining 75 percent of the funds
described in paragraph (1) in a manner that may vary
from the formula described in subparagraph (B) as
necessary to best support the objectives of achieving
energy efficiency gains, employment of underemployed
workers, and implementing quality assurance programs
and frameworks in participating States.
(4) Withholding of funds.--To the extent that the Secretary
assumes the responsibilities of a State under section 101(i),
the Secretary shall withhold the portion of the funds otherwise
transferrable to the State under this section that are
attributable to those State responsibilities.
(5) Indian tribes.--
(A) In general.--If an Indian tribe acts in place
of a State for purposes of carrying out the
responsibilities of the State under this title with
respect to its tribal lands pursuant to section 101(h),
the Secretary shall transfer to that Indian tribe,
instead of the State, the proportionate share of funds
otherwise transferrable to the State under this
section.
(B) Proportionate share.--For purposes of
subparagraph (A), the proportionate share shall be
calculated on the basis of the percentage of the
population of the State that resides within the tribal
lands.
(c) Quality Assurance Costs.--
(1) In general.--Of the amount provided under subsection
(a), not more than 5 percent are authorized to be appropriated
to the Secretary to be used as provided in paragraph (2), in
accordance with information provided by the State offices or
entities described in subsection (b)(3)(B) with respect to
services provided by quality assurance providers.
(2) Distribution to quality assurance providers or rebate
aggregators.--The Secretary shall use funds provided under this
subsection to compensate quality assurance providers and rebate
aggregators for services provided under this title.
(3) Compensation.--The amount of compensation provided
under this subsection shall be--
(A)(i) in the case of the Silver Star Home Energy
Retrofit Program--
(I) not more than $25 to rebate aggregators
per rebate review and processing under the
program; and
(II) $150 to quality assurance providers
for each field inspection conducted under the
program; and
(ii) in the case of the Gold Star Home Energy
Retrofit Program--
(I) not more than $35 to rebate aggregators
for each rebate review and processing under the
program; and
(II) $300 to quality assurance providers
for each field inspection conducted under the
program; or
(B) such other amounts as the Secretary considers
necessary to carry out the quality assurance provisions
of this title to optimize the overall energy efficiency
resulting from the Silver Star Home Energy Retrofit
Program and the Gold Star Home Energy Retrofit Program.
(d) Tracking of Rebates and Expenditures.--Of the amount provided
under subsection (a), not more than 2.5 percent are authorized to be
appropriated to the Secretary to be used for costs associated with
tracking rebates and expenditures through the Federal Rebate Processing
System under this title, technical assistance to States, and related
administrative costs incurred by the Secretary.
(e) Public Education and Coordination.--Of the amount provided
under subsection (a), not more than 0.2 percent are authorized to be
appropriated to the Administrator to be used for costs associated with
public education and coordination with the Federal Energy Star program.
(f) Silver Star Home Energy Retrofit Program.--
(1) In general.--Of the amount provided under subsection
(a), after subtracting the amounts authorized in subsections
(b), (d), and (e) of this section, two-thirds of the remainder
are authorized to be appropriated to the Secretary to be used
to provide rebates and other payments authorized under the
Silver Star Home Energy Retrofit Program.
(2) Products purchased without installation services.--Of
the amounts appropriated pursuant to this subsection for the
Silver Star program, 7.5 percent shall be made available for
rebates under section 103(f).
(g) Gold Star Home Energy Retrofit Program.--Of the amount provided
under subsection (a), after subtracting the amounts authorized in
subsections (b), (d), and (e) of this section, one-third of the
remainder is authorized to be appropriated to the Secretary to be used
to provide rebates and other payments authorized under the Gold Star
Home Energy Retrofit Program.
(h) Return of Undisbursed Funds.--
(1) Silver star home energy retrofit program.--If the
Secretary has not disbursed all the funds available for rebates
under the Silver Star Home Energy Retrofit Program by the date
that is 1 year after the date of enactment of this Act, any
undisbursed funds shall be made available to the Gold Star Home
Energy Retrofit Program.
(2) Gold star home energy retrofit program.--If the
Secretary has not disbursed all the funds available for rebates
under the Gold Star Home Energy Retrofit Program by the date
that is 2 years after the date of enactment of this Act, any
undisbursed funds shall be returned to the Treasury.
(i) Sunset.--With the exception of the provisions of section
102(c)(5), (6), and (7), sections 107, 110, and 111, this subsection,
and the relevant definitions in section 2 to those provisions, this
title shall cease to be effective after December 31, 2012. Nothing in
this subsection shall prevent a State from continuing to implement a
quality assurance framework established pursuant to section 105.
TITLE II--ENERGY EFFICIENT MANUFACTURED HOMES
SEC. 201. ENERGY EFFICIENT MANUFACTURED HOMES.
(a) Definitions.--In this section:
(1) Manufactured home.--The term ``manufactured home'' has
the meaning given such term in section 603 of the National
Manufactured Housing Construction and Safety Standards Act of
1974 (42 U.S.C. 5402).
(2) Energy star qualified manufactured home.--The term
``Energy Star qualified manufactured home'' means a
manufactured home that has been designed, produced, and
installed in accordance with Energy Star's guidelines by an
Energy Star certified plant.
(b) Purpose.--The purpose of this section is to assist low-income
households residing in manufactured homes constructed prior to 1976 to
save energy and energy expenditures by providing funding for the
purchase of new Energy Star qualified manufactured homes.
(c) Grants to State Agencies.--
(1) Grants.--The Secretary may make grants to State
agencies responsible for developing State energy conservation
plans under section 362 of the Energy Policy and Conservation
Act (42 U.S.C. 6322) (or such other existing State agency that
exercises similar functions as the Governor of a State may
designate), to provide owners of manufactured homes constructed
prior to 1976 funding to use to purchase new Energy Star
qualified manufactured homes.
(2) Allocation of grants.--Grants under paragraph (1) shall
be distributed to State agencies in States on the basis of
their proportionate share of all manufactured homes constructed
prior to 1976 that are occupied as primary residences in the
United States, based on the most recent and accurate data
available.
(3) Funding.--
(A) Primary residence requirement.--Funding
described under paragraph (1) may only be made to an
owner of a manufactured home constructed prior to 1976
that has been used by the owner as a primary residence
on a year-round basis for at least the previous 12
months.
(B) Destruction and replacement.--Funding described
under paragraph (1) may be provided only if the
manufactured home constructed prior to 1976 will be--
(i) destroyed (including appropriate
recycling); and
(ii) replaced, in an appropriate area, as
determined by the applicable State agency, with
an Energy Star qualified manufactured home.
(C) Limitation.--Funding described under paragraph
(1) may not be provided to any owner of a manufactured
home constructed prior to 1976 that was or is a member
of a household for which any member of the household
was provided funding pursuant to this section.
(D) Eligible households.--To be eligible to receive
funding described under paragraph (1), an owner of a
manufactured home constructed prior to 1976 shall
demonstrate to the applicable State agency that the
total income of all members the owner's household does
not exceed 80 percent of the area median income in the
applicable area, as determined by the Secretary.
(E) Leases.--To be eligible to receive funding
described under paragraph (1), an owner of a
manufactured home constructed prior to 1976 who intends
to place the new Energy Star qualified manufactured
home on property leased from another person shall hold
a lease to such property of at least 3 years in
duration.
(4) Funding amount.--Funding provided by State agencies
under this subsection shall not exceed $7,500 per manufactured
home from any funds appropriated pursuant to this section.
(5) Use of state funds.--A State agency providing funding
under this section may supplement the amount of such funding
under paragraph (4) by any amount such agency approves if such
additional amount is from State funds and other sources,
including private donations and grants or loans from charitable
foundations.
(6) Similar programs.--
(A) State programs.--A State agency conducting a
program that has the purpose of replacing manufactured
homes constructed prior to 1976 with Energy Star
qualified manufactured homes may use funds provided
under this section to support such a program, provided
such funding does not exceed the funding limitation
amount under paragraph (4).
(B) Federal programs.--The Secretary shall seek to
achieve the purpose of this section through similar
Federal programs including--
(i) the Weatherization Assistance Program
under part A of title IV of the Energy
Conservation and Production Act (42 U.S.C. 6861
et seq.); and
(ii) the program under part D of title III
of the Energy Policy and Conservation Act (42
U.S.C. 6321 et seq.).
(7) Administration.--
(A) Controls and procedures.--Each State agency
receiving funds under this section shall establish
fiscal controls and accounting procedures sufficient,
as determined by the Secretary, to ensure proper
accounting for disbursements made from such funds and
fund balances. Such procedures shall conform to
generally accepted Government accounting principles.
(B) Coordination with other state agencies.--A
State agency receiving funds under this section may
coordinate its efforts, and share funds for
administration, with other State agencies or nonprofit
organizations involved in low-income housing programs.
(C) Administrative expenses.--A State agency
receiving funds under this section may expend not more
than 10 percent of such funds for administrative
expenses.
(d) Decommissioning.--A person receiving funding under subsection
(c) may also be provided not to exceed $2,500 for the decommissioning
of the manufactured home being replaced.
(e) Authorization of Appropriations.--
(1) In general.--There are authorized to be appropriated to
the Secretary to carry out this section $200,000,000 for fiscal
year 2010 and $400,000,000 for fiscal year 2011, to remain
available until expended.
(2) Administrative expenses.--Of the amounts available each
fiscal year to carry out this section, the Secretary may expend
not more than 5 percent to pay administrative expenses.
Union Calendar No. 268
111th CONGRESS
2d Session
H. R. 5019
[Report No. 111-469, Part I]
_______________________________________________________________________
A BILL
To provide for the establishment of the Home Star Retrofit Rebate
Program, and for other purposes.
_______________________________________________________________________
May 3, 2010
Committee on Oversight and Government Reform discharged; committed to
the Committee of the Whole House on the State of the Union and ordered
to be printed