[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4785 Reported in House (RH)]

                                                 Union Calendar No. 335
111th CONGRESS
  2d Session
                                H. R. 4785

                      [Report No. 111-585, Part I]

  To amend the miscellaneous rural development provisions of the Farm 
Security and Rural Investment Act of 2002 to authorize the Secretary of 
 Agriculture to make loans to certain entities that will use the funds 
  to make loans to consumers to implement energy efficiency measures 
 involving structural improvements and investments in cost-effective, 
    commercial off-the-shelf technologies to reduce home energy use.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 9, 2010

Mr. Clyburn (for himself, Mr. Whitfield, Mr. Perriello, and Mr. Spratt) 
 introduced the following bill; which was referred to the Committee on 
 Agriculture, and in addition to the Committee on Energy and Commerce, 
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

                           September 14, 2010

       Reported from the Committee on Agriculture with amendments
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

                           September 14, 2010

 Additional sponsors: Mr. Brown of South Carolina, Mr. Wilson of South 
Carolina, Mr. Inglis, Mr. Stupak, Mr. Johnson of Georgia, Mr. Gordon of 
 Tennessee, Mr. Pastor of Arizona, Ms. Markey of Colorado, Mr. Bright, 
   Mr. Butterfield, Mr. Marshall, Mr. Roe of Tennessee, Ms. Herseth 
  Sandlin, Mr. Chandler, Mr. Filner, Mr. Ellsworth, Mr. Cuellar, Mr. 
 Walz, Mr. Bishop of Georgia, Ms. Giffords, Mr. Boswell, Mr. Rogers of 
Alabama, Mr. Thompson of Mississippi, Mr. Rogers of Kentucky, Mr. Hill, 
Mr. Salazar, Mr. Kissell, Mr. Boozman, Mr. Moore of Kansas, Mr. Wilson 
of Ohio, Mr. Boucher, Mr. Rodriguez, Ms. Hirono, Mr. Lujan, Mr. Space, 
Mr. Hare, Mr. Platts, Mr. Ross, Mr. Boccieri, Mr. Guthrie, Mr. Price of 
    North Carolina, Mr. Kratovil, Mr. Thompson of Pennsylvania, Mr. 
    Blumenauer, Mr. Dingell, Mr. Davis of Illinois, Mr. Hastings of 
Florida, Mr. McIntyre, Mr. Carnahan, Mr. Towns, Mr. Schock, Mr. Welch, 
                             and Ms. Sutton

                           September 14, 2010

     Committee on Energy and Commerce 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 March 
                                9, 2010]

_______________________________________________________________________

                                 A BILL


 
  To amend the miscellaneous rural development provisions of the Farm 
Security and Rural Investment Act of 2002 to authorize the Secretary of 
 Agriculture to make loans to certain entities that will use the funds 
  to make loans to consumers to implement energy efficiency measures 
 involving structural improvements and investments in cost-effective, 
    commercial off-the-shelf technologies to reduce home energy use.


 


    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 ``Rural Energy Savings Program Act''.

SEC. 2. RURAL ENERGY SAVINGS PROGRAM.

    (a) Purpose.--The purpose of this section is to create and save 
jobs by providing loans to qualified consumers who will use the loan 
proceeds to implement energy efficiency measures to achieve significant 
reductions in energy costs, energy consumption, or carbon emissions.
    (b) Definitions.--In this section:
            (1) Eligible entity.--The term ``eligible entity'' means--
                    (A) any public or cooperative electric utility that 
                is eligible to borrow from the Rural Utilities Service 
                electrification program authorized under the Rural 
                Electrification Act of 1936 (7 U.S.C. 901 et seq.) that 
                serves a rural area defined by that Act;
                    (B) any current borrower of the Rural Utilities 
                Service electrification program authorized under that 
                Act; or
                    (C) any entity primarily owned or controlled by an 
                entity described in subparagraph (A) or (B).
            (2) Energy efficiency measure.--The term ``energy 
        efficiency measure'', with respect to property served by an 
        eligible entity, means a structural improvement and investment 
        in a cost-effective, commercial off-the-shelf technology to 
        reduce energy use.
            (3) Qualified consumer.--The term ``qualified consumer'' 
        means a consumer served by an eligible entity that has the 
        ability to repay a loan made under subsection (d), as 
        determined by an eligible entity.
            (4) Qualified entity.--The term ``qualified entity'' means 
        any organization that the Secretary determines has significant 
        experience in providing eligible entities with--
                    (A) advice on energy, environmental, energy 
                efficiency, and information research and technology;
                    (B) training, education, and consulting;
                    (C) guidance in energy and operational issues and 
                rural community and economic development; and
                    (D) other relevant assistance, as determined by the 
                Secretary.
            (5) Rural area.--The term ``rural area'' means any area 
        other than--
                    (A) a city or town that has a population of greater 
                than 50,000 inhabitants; and
                    (B) any urbanized area contiguous and adjacent to a 
                city or town described in subparagraph (A).
            (6) Secretary.--The term ``Secretary'' means the Secretary 
        of Agriculture, acting through the Rural Utilities Service.
    (c) Loans to Eligible Entities.--
            (1) Loans authorized.--Subject to paragraph (2), the 
        Secretary shall make loans to an eligible entity that agrees 
        that the loan funds will be used to make loans to qualified 
        consumers as described in subsection (d) for the purpose of 
        implementing an energy efficiency measure.
            (2) List, plan, and measurement and verification 
        required.--
                    (A) In general.--As a condition to receiving a loan 
                under paragraph (1), an eligible entity shall--
                            (i) establish a list of energy efficiency 
                        measures expected to decrease energy use or 
                        costs of a qualified consumer;
                            (ii) prepare an implementation plan for use 
                        of the loan funds to ensure that a loan to a 
                        qualified consumer is at least commensurate 
                        with the expected energy savings the qualified 
                        consumer shall expect to receive from the 
                        activities funded by the loan; and
                            (iii) provide for appropriate measurement 
                        and verification to ensure the effectiveness of 
                        the energy efficiency loans made by the 
                        eligible entity.
                    (B) Revision of list of energy efficiency 
                measures.--An eligible entity may update the list 
                required under subparagraph (A)(i) to account for newly 
                available efficiency technologies, subject to the 
                approval of the Secretary.
                    (C) Existing energy efficiency programs.--An 
                eligible entity that, on or before the date of the 
                enactment of this Act or within 60 days after such 
                date, has already established an energy efficiency 
                program for qualified consumers may use an existing 
                list of energy efficiency measures, implementation 
                plans, or measurement and verification systems to 
                satisfy the requirements of subparagraph (A) if the 
                Secretary determines the list, plans, or systems are 
                consistent with the purposes of sub section (a).
            (3) Loan terms for loans to eligible entities.--
                    (A) No interest.--A loan made to an eligible entity 
                under paragraph (1) shall bear no interest.
                    (B) Repayment.--With respect to a loan under 
                paragraph (1)--
                            (i) the term shall not exceed 20 years from 
                        the date the loan is closed; and
                            (ii) except as provided in subparagraph 
                        (D), the repayment of each advance shall be 
                        amortized for a period not to exceed 10 years.
                    (C) Amount of advances.--Any advance of loan funds 
                to an eligible entity in any single year shall not 
                exceed 30 percent of the approved loan amount.
                    (D) Special advance for start-up activities.--
                            (i) In general.--In order to assist an 
                        eligible entity in defraying initial start-up 
                        costs, the Secretary shall allow an eligible 
                        entity to request a special advance.
                            (ii) Amount of special advance.--No 
                        eligible entity may receive a special advance 
                        under this subparagraph for an amount that is 
                        greater than 4 percent of the loan amount 
                        received by the eligible entity under paragraph 
                        (1).
                            (iii) Repayment.--The repayment of the 
                        special advance shall be required within 10 
                        years after the special advance is made and, at 
                        the election of the eligible entity, may be 
                        deferred to the end of the 10-year period.
                    (E) Limitation on advances.--All advances shall be 
                made under a loan described in paragraph (1) within the 
                first 10 years of the term of the loan.
    (d) Loans to Qualified Consumers.--
            (1) Terms of loans.--Loans made by an eligible entity to 
        qualified consumers using loan funds provided by the Secretary 
        under subsection (c)--
                    (A) may bear interest, not to exceed three percent, 
                to be used by the eligible entity for purposes such as 
                establishing a loan loss reserve and to offset 
                personnel and program costs of the eligible entity to 
                provide the loans;
                    (B) shall finance energy efficiency measures for 
                the purpose of decreasing energy usage or costs of a 
                qualified consumer by an amount such that a loan term 
                of not more than 10 years will not pose an undue 
                financial burden on the qualified consumer, as 
                determined by the eligible entity;
                    (C) shall not be used to fund purchases of, or 
                modifications to, personal property unless the personal 
                property--
                            (i) is or becomes attached to real property 
                        as a fixture; or
                            (ii) is a manufactured home;
                    (D) shall be repaid through charges added to the 
                electric bill for the property for, or at which energy 
                efficiency measures are or will be implemented, except 
                that this requirement shall not be construed to 
                prohibit--
                            (i) the voluntary prepayment of a loan by 
                        the owner of the property; or
                            (ii) the use of any additional repayment 
                        mechanisms that are--
                                    (I) demonstrated to have 
                                appropriate risk mitigation features, 
                                as determined by the eligible entity; 
                                or
                                    (II) required if the qualified 
                                consumer is no longer a customer of the 
                                eligible entity; and
                    (E) shall require an energy audit to determine the 
                impact of proposed energy efficiency measures on the 
                energy costs and consumption of the qualified consumer.
            (2) Contractors.--In addition to any other qualified 
        general contractor, eligible entities may serve as general 
        contractors.
            (3) Use of other energy efficiency incentives.--Energy 
        efficiency incentives made available under any other Act, 
        including rebates, grants, or any other payments, may be used 
        to reduce the amount of a loan made under this subsection to 
        qualified consumers in order to meet the requirement of 
        paragraph (1)(B).
    (e) Measurement, Verification, Training, and Technical 
Assistance.--
            (1) Duties of the secretary.--Not later than 60 days after 
        the date of enactment of this Act, the Secretary shall--
                    (A) develop a protocol for eligible entities and 
                qualified entities to use in measuring energy 
                consumption and verifying the effectiveness of energy 
                efficiency measures;
                    (B) establish a measurement and verification 
                advisory committee consisting of representatives of 
                eligible entities and qualified entities;
                    (C) enter into one or more cooperative agreements 
                with qualified entities to provide technical assistance 
                and training to the employees of eligible entities to 
                carry out this section; and
                    (D) establish a process to compile and maintain a 
                directory of energy efficiency auditors that are used 
                by eligible entities to carry out this section.
            (2) Exception.--
                    (A) The Secretary shall not utilize the authority 
                provided under this subsection or subsection (k) to--
                            (i) develop, adopt, or implement a public 
                        labeling system that rates and compares the 
                        energy performance among qualified consumers; 
                        or
                            (ii) require the public disclosure of an 
                        energy performance evaluation or rating 
                        developed for any qualified consumer.
                    (B) Nothing in this paragraph shall preclude--
                            (i) the computation, collection, or use, by 
                        the Secretary, eligible entity, or qualified 
                        entity for the purposes aggregating information 
                        on the rating and comparison of the energy 
                        performance among qualified consumers with and 
                        without energy efficiency features or on energy 
                        performance evaluation or rating;
                            (ii) the use and publication of aggregate 
                        data (without identifying individual qualified 
                        consumers) based on information referred to in 
                        clause (i) to determine or demonstrate the 
                        performance of this program; or
                            (iii) the provision of information referred 
                        to in clause (i) with respect to a qualified 
                        consumer:
                                    (I) to the State, eligible 
                                consumer, eligible entity, or qualified 
                                entity, as necessary to enable carrying 
                                out this Act; or
                                    (II) for purposes of prosecuting 
                                fraud and abuse.
    (f) Fast Start Demonstration Projects.--
            (1) Demonstration projects required.--The Secretary shall 
        enter into agreements with eligible entities (or groups of 
        eligible entities) that have established an energy efficiency 
        program described in subsection (c)(2)(C) to establish an 
        energy efficiency loan demonstration projects consistent with 
        the purposes of this section that--
                    (A) implement approaches to energy audits and 
                investments in energy efficiency measures that yield 
                measurable and predictable savings;
                    (B) use measurement and verification processes to 
                determine the effectiveness of energy efficiency loans 
                made by eligible entities;
                    (C) include training for employees of eligible 
                entities, including any contractors of such entities, 
                to implement or oversee the activities described in 
                subparagraphs (A) and (B);
                    (D) provide for the participation of a majority of 
                eligible entities in a State;
                    (E) reduce the need for generating capacity;
                    (F) provide efficiency loans to--
                            (i) not fewer than 20,000 consumers, in the 
                        case of a single eligible entity; or
                            (ii) not fewer than 80,000 consumers, in 
                        the case of a group of eligible entities; and
                    (G) serve areas where a large percentage of 
                consumers reside--
                            (i) in manufactured homes; or
                            (ii) in housing units that are more than 50 
                        years old.
            (2) Deadline for implementation.--The agreements required 
        by paragraph (1) shall be entered into not later than 90 days 
        after the date of enactment of this Act.
            (3) Effect on availability of loans nationally.--Nothing in 
        this subsection shall delay the availability of loans to 
        eligible entities on a national basis beginning not later than 
        180 days after the date of the enactment of this Act.
            (4) Additional demonstration project authority.--The 
        Secretary may conduct demonstration projects in addition to the 
        project required by paragraph (1). An additional demonstration 
        project may be carried out without regard to subparagraphs (D), 
        (F), or (G) of paragraph (1).
    (g) Additional Authority.--The authority provided in this section 
is in addition to any authority of the Secretary to offer loans under 
any other law.
    (h) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary $993,000,000 to carry out this section, 
which shall remain available until expended.
    (i) Effective Period.--Subject to subsection (h)(1) and except as 
otherwise provided in this section, the loans and other expenditures 
required to be made under this section are authorized to be made during 
each of fiscal years 2010 through 2014.
    (j) Reporting Requirement.--Not later than one year after the date 
of the enactment of this Act, the Secretary shall submit to the 
Committee on Agriculture, Nutrition, and Forestry of the Senate and the 
Committee on Agriculture of the House of Representatives a report 
describing the implementation of this section.
    (k) Regulations.--
            (1) In general.--Except as otherwise provided in this 
        subsection, not later than 180 days after the date of enactment 
        of this section, the Secretary shall promulgate such 
        regulations as are necessary to implement this section.
            (2) Procedure.--The promulgation of the regulations and 
        administration of this section shall be made without regard 
        to--
                    (A) chapter 35 of title 44, United States Code 
                (commonly known as the ``Paperwork Reduction Act''); 
                and
                    (B) the Statement of Policy of the Secretary of 
                Agriculture effective July 24, 1971 (36 Fed. Reg. 
                13804), relating to notices of proposed rulemaking and 
                public participation in rulemaking.
            (3) Congressional review of agency rulemaking.--In carrying 
        out this section, the Secretary shall use the authority 
        provided under section 808 of title 5, United States Code.
            (4) Interim regulations.--Notwithstanding paragraphs (1) 
        and (2), to the extent regulations are necessary to carry out 
        any provision of this section, the Secretary shall implement 
        such regulations through the promulgation of an interim rule.
    (l) Audit of Program.--The Secretary shall conduct an audit of the 
program authorized by this section to ensure that the funds provided to 
eligible entities under this section are used in accordance with the 
purpose of this section.
            Amend the title so as to read: ``A bill to authorize the 
        Secretary of Agriculture to make loans to certain entities that 
        agree that the funds will be used to make loans to consumers to 
        implement energy efficiency measures involving structural 
        improvements and investments in cost-effective, commercial off-
        the-shelf technologies to reduce energy use, and for other 
        purposes.''.
                                                 Union Calendar No. 335

111th CONGRESS

  2d Session

                               H. R. 4785

                      [Report No. 111-585, Part I]

_______________________________________________________________________

                                 A BILL

  To amend the miscellaneous rural development provisions of the Farm 
Security and Rural Investment Act of 2002 to authorize the Secretary of 
 Agriculture to make loans to certain entities that will use the funds 
  to make loans to consumers to implement energy efficiency measures 
 involving structural improvements and investments in cost-effective, 
    commercial off-the-shelf technologies to reduce home energy use.

_______________________________________________________________________

                           September 14, 2010

     Committee on Energy and Commerce discharged; committed to the 
 Committee of the Whole House on the State of the Union and ordered to 
                               be printed