I 111th CONGRESS 1st Session H. R. 1573 IN THE HOUSE OF REPRESENTATIVES March 17, 2009 Mr. Van Hollen (for himself, Mr. Welch, Mr. Blumenauer, Ms. Giffords, Mr. Loebsack, Mr. Grijalva, and Ms. Bordallo) introduced the following bill; which was referred to the Committee on Energy and Commerce A BILL To establish the National Home Energy Savings Revolving Fund within the Department of Energy to provide amounts to units of general local government to make loans to homeowners for qualified home energy audits and certified energy savings improvements, and for other purposes.

1.

Short title

This Act may be cited as the National Home Energy Savings Revolving Fund Act.

2.

Definitions

In this Act: (1)

Home energy audit

The term home energy audit means any process that identifies and specifies the energy and cost savings that are likely to be realized through the implementation, acquisition, and installation of energy savings improvements to a residential property. (2)

Qualified home energy audit

The term qualified home energy audit means an energy audit that complies with the procedures and techniques under section 5(a)(2). (3)

Renewable energy measure

The term renewable energy measure means the appropriate installation and use of solar, wind, geothermal, fuel cell, biomass, battery storage, and other applicable renewable technologies, as determined by the Secretary. (4)

Certified energy savings improvement

The term certified energy savings improvement means an energy efficiency improvement or renewable energy measure that meets the requirements under section 5(a)(3). (5)

Secretary

The term Secretary means the Secretary of Energy. (6)

Revolving Fund

The term Revolving Fund means the National Home Energy Savings Revolving Fund established under section 3(a). (7)

Unit of general local government

The term unit of general local government means any general purpose political subdivision of a State that has the power to levy taxes and spend funds, as well as general corporate and police powers.

3.

National Home Energy Savings Revolving Fund

(a)

Establishment

There is established within the Department of Energy a revolving fund, to be known as the National Home Energy Savings Revolving Fund. (b)

Expenditures

Any amounts in the Revolving Fund may be used without fiscal year limitation to provide funds to units of general local government in accordance with section 4 for use in making loans to homeowners pursuant to section 5(a). (c)

Credits

(1)

Capitalization authorization

There are authorized to be appropriated to the Revolving Fund $5,000,000,000 for each of fiscal years 2010 and 2011. (2)

Repayment amounts

The Revolving Fund shall be credited with amounts received by the Secretary from a unit of general local government equal to loan repayment amounts due to be repaid by homeowners to whom loans are made pursuant to section 5(a).

4.

Funding to units of general local government

(a)

Application

To be eligible to receive funds under this Act, a unit of general local government shall submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require, which information shall include a description of the method required by section 5(c) for making payments due under the loan. (b)

Amounts

(1)

Allocation

Subject to the limitation under paragraph (2), the Secretary, in each fiscal year, shall provide for the allocation of amounts available in the Revolving Fund to units of general local government eligible to receive such amounts based on need among such units of general local government for amounts for loans to homeowners pursuant to section 5(a). (2)

Limitation

In any fiscal year, the aggregate amount provided from the Revolving Fund to a single unit of general local government may not exceed 2 percent of the total amount available in the Revolving Fund for such fiscal year. (c)

Repayment

(1)

Homeowner

A unit of general local government that receives funds under this Act shall require full repayment of each loan made to a homeowner pursuant to section 5(a). (2)

Unit of General Local government

Not later than 120 days after the deadline imposed by a unit of general local government for repayment by homeowners of loans made pursuant to section 5(a) in the manner provided by section 5(c), such unit of general local government shall transfer to the Secretary amounts due to be repaid, notwithstanding any default on the part of the homeowner.

5.

Loans to homeowners for qualified home energy audits and certified energy savings improvements

(a)

Loans to homeowners

(1)

In general

A unit of general local government that receives funds under this Act shall use such funds only to provide loans to homeowners for the costs of one or more of the following: (A)Conducting a qualified home energy audit (or a qualified home energy audit previously conducted). (B)The implementation of any certified energy savings improvement. (C)The acquisition of any certified energy savings improvement. (D)The installation of any certified energy savings improvement. (2)

Home energy audit procedures and techniques

The Secretary shall establish procedures and techniques for home energy audits that— (A)meet standards established by the Secretary after consultation with the State Energy Advisory Board established under section 365(g) of the Energy and Policy Conservation Act (42 U.S.C. 6325(g)); (B)establish priorities for selection of energy savings improvements based on their cost-effectiveness, payback period, and contribution to energy savings; (C)measure the energy requirement of individual dwellings and the rate of return of the total energy savings investment in a dwelling; and (D)account for interaction among energy savings measures. (3)

Certified energy savings improvements

Loan funds may be used by homeowners under this section for the implementation, acquisition, or installation of an energy efficiency improvement or renewable energy measure only if such improvement or measure— (A)has been determined, by means of a qualified home energy audit, to improve the efficiency of energy use and to reduce energy costs (as calculated on the basis of energy costs projected over time); and (B)such determination is set forth in a written report regarding such audit— (i)listing energy savings improvements in order of cost-effectiveness, payback period, and contribution to energy savings; and (ii)prepared and signed by the person conducting such audit. (b)

Eligible homeowners

To be eligible to receive a loan from a unit of general local government under this section, a homeowner shall submit to such unit of general local government an application at such time, in such manner, and containing such information as such unit of general local government may require. (c)

Payment in connection with property tax payment

A unit of general local government that receives funds under this Act shall establish a method by which a homeowner to whom a loan is made pursuant to section 5(a) may make payments due under such loan in connection with any payments submitted for any property tax assessed or collected by such unit of general local government. (d)

Repayment terms

A unit of general local government that receives funds under this Act shall establish terms for repayment of loans made pursuant to section 5(a) that comply with subsection (e) and meet the following goals in the following order of priority: (1)The terms shall provide that, on an annual basis, the aggregate amount of payments due on a loan shall be less than the aggregate amount of savings achieved by implementation, acquisition, or installation of certified energy savings improvements financed under the loan. (2)The terms shall provide that homeowners shall make repayments of such loans in such amounts as are necessary to minimize costs to the Revolving Fund established under section 3(a) and that any such repayments shall be transferred to the Secretary and credited to such Fund. (e)

Loan maturity and interest

A loan under this section shall have a term to maturity of not more than 15 years and shall not bear interest. (f)

Loan amount limitations

The total amount of all loans made pursuant to section 5(a) from a unit of general local government to a single homeowner may not exceed $10,000, except that a unit of general local government, in its discretion, may establish a loan amount limitation in a lesser amount. (g)

Principal residence requirement

A unit of general local government may make a loan under this section only if such loan will be used for eligible purposes under subsection (a) with respect to the principal residence of the homeowner who is the borrower. (h)

Information requirement

A unit of general local government that receives funds under this Act, in accordance with such standards as the Secretary shall establish, shall make available to homeowners information about loans available pursuant to section 5(a) including— (1)a description of the eligible purposes for which a loan may be used; (2)a list of home energy auditors in the area that are certified to perform qualified home energy audits; and (3)repayment procedures and terms established in accordance with subsection (d), including repayment procedures and terms if a loan is provided only for the costs of conducting a qualified home energy audit.

6.

Reports to the Secretary

For each year any loan made by a unit of general local government pursuant to section 5(a) is outstanding, such unit of general local government shall submit to the Secretary a report describing the use of funds from the Revolving Fund, identifying the number of loans provided under this Act, the repayment rate of the loans, the default rate of the loans, and any other information the Secretary determines to be appropriate.