[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 1379 Introduced in Senate (IS)]
111th CONGRESS
1st Session
S. 1379
To encourage energy efficiency and conservation and development of
renewable energy sources for housing, commercial structures, and other
buildings, and to create sustainable communities.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
June 25, 2009
Mr. Whitehouse (for himself, Mr. Schumer, and Mr. Menendez) introduced
the following bill; which was read twice and referred to the Committee
on Banking, Housing, and Urban Affairs
_______________________________________________________________________
A BILL
To encourage energy efficiency and conservation and development of
renewable energy sources for housing, commercial structures, and other
buildings, and to create sustainable communities.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Energy Efficiency
in Housing Act of 2009''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title and table of contents.
Sec. 2. Findings and purposes.
Sec. 3. Definitions.
Sec. 4. Implementation of energy efficiency participation incentives
for HUD programs.
Sec. 5. Incentives for energy efficient mortgages and location
efficient mortgages.
Sec. 6. Mortgage incentives for energy efficient multifamily housing.
Sec. 7. Energy efficiency and conservation demonstration program for
multifamily housing projects assisted with
project-based rental assistance.
Sec. 8. Additional credit for Fannie Mae and Freddie Mac housing goals
for energy efficient mortgages.
Sec. 9. Duty to serve underserved markets for energy efficient and
location efficient mortgages.
Sec. 10. Consideration of energy efficiency under FHA mortgage
insurance programs and Native American and
Native Hawaiian loan guarantee programs.
Sec. 11. Energy efficient mortgages education and outreach campaign.
Sec. 12. Collection of information on energy efficient and location
efficient mortgages through Home Mortgage
Disclosure Act.
Sec. 13. Energy efficiency certifications for housing with mortgages
insured by FHA.
Sec. 14. Assisted housing energy loan pilot program.
Sec. 15. HOPE VI green developments requirement.
Sec. 16. Consideration of energy efficiency improvements in appraisals.
Sec. 17. Additional requirements for the Housing Assistance Council.
Sec. 18. Rural housing and economic development assistance.
Sec. 19. Revolving fund for loans to States and Indian tribes to carry
out renewable energy sources activities.
Sec. 20. Competitive grant program to increase sustainable low-income
community development capacity.
Sec. 21. Insurance coverage for loans for financing of renewable energy
systems leased for residential use.
Sec. 22. Green banking centers.
Sec. 23. GAO reports on availability of affordable mortgages.
Sec. 24. Public housing energy cost report.
SEC. 2. FINDINGS AND PURPOSES.
(a) Congressional Findings.--The Congress finds that--
(1) making the United States energy efficient is essential
for enhancing national security, fighting climate change, and
creating jobs;
(2) unchecked use of energy resources poses a significant
threat to the national security, economy, public health, and
welfare of the people of the United States, the well-being of
other nations, and the global environment;
(3) prompt, decisive action is critical to encourage energy
efficiency and conservation and the development of renewable
energy sources for housing, commercial structures, and other
buildings, and to create sustainable communities; and
(4) it is possible and desirable to reduce energy
consumption in the United States while employing--
(A) cost containment measures;
(B) periodic review of requirements;
(C) an aggressive program for deploying advanced
energy technology; and
(D) programs to assist low- and middle-income
energy consumers.
(b) Purposes.--The purposes of this Act are--
(1) to encourage the use of energy efficiency and
conservation methods in Federal housing programs;
(2) to expand the use of energy efficient mortgages;
(3) to provide for the development and installation of
renewable energy sources for housing, commercial structures,
and other buildings;
(4) to create sustainable communities;
(5) to support the creation of a stable ``green jobs''
sector by increasing demand for energy efficient products and
professionals with expertise in green building standards; and
(6) to achieve these goals while preserving the
development, benefits, and affordability of Federal housing
programs.
SEC. 3. DEFINITIONS.
In this Act, the following definitions shall apply:
(1) Energy audit.--The term ``energy audit'' means an
investment grade energy audit conducted for purposes of
paragraph (2)(B)(iii), in accordance with such standards as the
Secretary shall establish, after optional consultation with any
advisory committee established pursuant to section 7(c)(2) of
this Act.
(2) Enhanced energy efficiency standards.--The term
``enhanced energy efficiency standards'' means any one of the
following:
(A) Green building standards.--Green building
standards, as that term is defined in paragraph (3).
(B) Residential structures.--In the case of a
residential single family or multifamily structure,
standards established by the Secretary, by regulation,
that--
(i) impose requirements additional to, or
more stringent than, minimum energy efficiency
standards, as that term is defined in paragraph
(6);
(ii) in the case of a newly constructed
structure, are identical to the Energy Star
standards established by the Environmental
Protection Agency, or any successor thereto
adopted by the Secretary by regulation;
(iii) in the case of an existing structure,
require a reduction in energy consumption from
the previous level of consumption for the
structure, as determined in accordance with
energy audits performed both before and after
any rehabilitation or improvements undertaken
to reduce such consumption, that exceeds the
reduction necessary for compliance with minimum
energy efficiency standards.
(C) Nonresidential structures.--In the case of a
nonresidential structure, include such energy
efficiency and conservation requirements, standards,
checklists, or rating systems for nonresidential
structures as the Secretary determines are necessary.
(3) Green building standards.--The term ``green building
standards'' means systems and standards for residential and
nonresidential structures that are established or adopted by
the Secretary, by regulation, and that--
(A) require the use of sustainable design
principles to--
(i) reduce the use of nonrenewable
resources;
(ii) encourage energy efficient
construction and rehabilitation and the use of
renewable energy resources;
(iii) minimize the impact of development on
the environment;
(iv) improve indoor air quality;
(v) maximize water conservation; and
(vi) encourage the selection of building
materials that reduce adverse impacts on the
environment;
(B) impose requirements additional to, or more
stringent than, minimum energy efficiency standards, as
that term is defined in paragraph (6);
(C) include--
(i) the national Green Communities criteria
checklist for residential construction, which
provides criteria for the design, development,
and operation of affordable housing, or any
successor thereto adopted by the Secretary by
regulation;
(ii) the Leadership in Energy and
Environmental Design (LEED) certification for
new construction, the LEED for Homes rating
system, the LEED for Core and Shell rating
system, as applicable, or any successors
thereto adopted by the Secretary by regulation;
(iii) the Green Globes assessment and
rating system of the Green Building Initiative;
(iv) in the case of manufactured housing,
the Energy Star standards established by the
Environmental Protection Agency with respect to
fixtures, appliances, and equipment in such
housing, or any successor thereto adopted by
the Secretary by regulation;
(v) the National Green Building Standard,
only--
(I) if such standard is ratified
under the American National Standards
Institute process;
(II) upon expiration of the 180-day
period beginning upon such
ratification; and
(III) if, during such 180-day
period, the Secretary does not reject
the applicability of such standard for
purposes of this paragraph; and
(vi) any other requirement, standard,
checklist, or rating system for green building
or sustainability that the Secretary--
(I) determines is necessary for a
specific type of residential single
family or multifamily structure; or
(II) may determine to adopt or
apply not later than 180 days after the
date of receipt of any written request,
made in such form as the Secretary
shall provide, for such adoption and
application; and
(D) may be waived by the Secretary, if the
Secretary determines that waiver of such regulations
would promote enhanced energy efficiency or
conservation.
(4) HUD.--The term ``HUD'' means the Department of Housing
and Urban Development.
(5) HUD assistance.--The term ``HUD assistance'' means
financial assistance that is awarded, competitively or
noncompetitively, allocated by formula, or provided by HUD
through loan insurance or guarantee.
(6) Minimum energy efficiency standards.--
(A) In general.--The term ``minimum energy
efficiency standards'' has the meaning given that term
by regulations of the Secretary.
(B) Regulations for residential structures.--
Regulations issued by the Secretary under subparagraph
(A) shall, in the case of a residential single family
or multifamily structure--
(i) require the structure to comply with
the applicable provisions of the American
Society of Heating, Refrigerating, and Air-
Conditioning Engineers Standard 90.1-2007, or
any successor thereto adopted by the Secretary,
by regulation;
(ii) require the structure to comply with
the applicable provisions of the 2009
International Energy Conservation Code, or any
successor thereto adopted by the Secretary, by
regulation;
(iii) in the case of an existing
structure--
(I) where the Secretary determines
such action is cost effective,
require--
(aa) the structure to have
undergone rehabilitation or
improvements that are completed
after the date of enactment of
this Act; and
(bb) the energy consumption
for the structure to have been
reduced by not less than 20
percent from the previous level
of consumption, as determined
in accordance with energy
audits performed both before
and after any rehabilitation or
improvements undertaken to
reduce such consumption;
(II) if the structure has 4 stories
or more, require the structure to
demonstrate a 20 percent improvement in
the proposed building performance
rating when compared to a baseline
building performance rating resulting
from a whole building project
simulation conducted in accordance with
the Building Performance Rating Method
in Appendix G of American Society of
Heating, Refrigerating, and Air-
Conditioning Engineers Standard 90.1-
2004, or any successor thereto adopted
by the Secretary, by regulation; and
(III) if the structure has fewer
than 4 stories, require the structure
to demonstrate, by modeling based on
the Home Energy Rating System Index of
the Residential Energy Services
Network, a 20 percent improvement in
the proposed building performance
rating; and
(iv) require the structure to comply with
any provisions of such other energy efficiency
requirements, standards, checklists, or ratings
systems as the Secretary determines are
necessary for a specific type of residential
single family or multifamily structure; and
(C) Regulations for nonresidential structures.--
Regulations issued by the Secretary under subparagraph
(a) shall, in the case of a nonresidential structure
that is constructed or rehabilitated with HUD
assistance--
(i) require the structure to be not less
than 30 percent more energy efficient than
required by local residential and commercial
building codes regarding energy efficiency; and
(ii) require the structure to comply with
such additional energy efficiency requirements,
standards, checklists, or rating systems as the
Secretary determines are applicable to
nonresidential structures.
(7) Nonresidential structures.--The term ``nonresidential
structures'' means only nonresidential structures that are
appurtenant to single family or multifamily housing residential
structures, or those that are funded by the Secretary through
the HUD Community Development Block Grant program established
under title I of the Housing and Community Development Act of
1974 (42 U.S.C. 5301 et seq.).
(8) Secretary.--The term ``Secretary'', unless otherwise
specified, means the Secretary of Housing and Urban
Development.
SEC. 4. IMPLEMENTATION OF ENERGY EFFICIENCY PARTICIPATION INCENTIVES
FOR HUD PROGRAMS.
Not later than 180 days after the date of enactment of this Act,
the Secretary shall issue such regulations as may be necessary to
establish annual energy efficiency participation incentives to
encourage participants in programs administered by the Secretary,
including recipients under programs for which HUD assistance is
provided, to achieve substantial improvements in energy efficiency.
SEC. 5. INCENTIVES FOR ENERGY EFFICIENT MORTGAGES AND LOCATION
EFFICIENT MORTGAGES.
(a) In General.--The Secretary shall establish budget-neutral
incentives for encouraging lenders to make, and homebuyers and
homeowners to participate in, energy efficient mortgages and location
efficient mortgages.
(b) Incentives.--The incentives required under subsection (a) may
include--
(1) fee reductions;
(2) fee waivers;
(3) interest rate reductions; and
(4) adjustment of mortgage qualifications.
(c) Additional Consideration.--In establishing the incentives
required under subsection (a), the Secretary shall consider the lower
risk of default on energy efficient mortgages and location efficient
mortgages in comparison to mortgages that are not energy efficient or
location efficient.
(d) Definitions.--The terms ``energy efficient mortgage'' and
``location efficient mortgage'' have the same meaning as in section
1335(e) of the Federal Housing Enterprises Financial Safety and
Soundness Act of 1992 (12 U.S.C. 4565(e)) (as added by section 8 of
this Act).
SEC. 6. MORTGAGE INCENTIVES FOR ENERGY EFFICIENT MULTIFAMILY HOUSING.
(a) In General.--The Secretary shall establish--
(1) incentives for increasing the energy efficiency of
multifamily housing that is subject to a mortgage to be insured
under title II of the National Housing Act (12 U.S.C. 1707 et
seq.) so that such housing meets minimum energy standards; and
(2) incentives to encourage compliance of such housing with
enhanced energy efficiency standards, to the extent that such
incentives are based on the impact that savings on utility
costs have on the operating costs of the housing, as determined
by the Secretary.
(b) Incentives.--The incentives required under subsection (a) may
include, for any such multifamily housing that meets minimum energy
efficiency standards--
(1) providing a discount on the chargeable premiums for the
mortgage insurance for such housing from the amount otherwise
chargeable for such mortgage insurance;
(2) allowing mortgages to exceed the dollar amount limits
otherwise applicable under law to the extent such additional
amounts are used to finance improvements or measures designed
to meet the standards referred to in subsection (a); and
(3) reducing the amount that the owner of such multifamily
housing is required to contribute.
SEC. 7. ENERGY EFFICIENCY AND CONSERVATION DEMONSTRATION PROGRAM FOR
MULTIFAMILY HOUSING PROJECTS ASSISTED WITH PROJECT-BASED
RENTAL ASSISTANCE.
(a) Authority.--
(1) In general.--For multifamily housing projects for which
project-based rental assistance is provided under a covered
multifamily assistance program, the Secretary shall, subject to
the availability of amounts provided in advance in
appropriation Acts, carry out a program to demonstrate the
effectiveness of funding a portion of the costs of meeting
enhanced energy efficiency standards.
(2) Indian housing.--At the discretion of the Secretary,
the demonstration program required under paragraph (1) may
include incentives for housing that is assisted with Indian
housing block grants provided pursuant to the Native American
Housing Assistance and Self-Determination Act of 1996 (25
U.S.C. 4101 et seq.), but only to the extent that such
inclusion does not violate such Act, regulations promulgated
pursuant to such Act, and the goal of such Act of tribal self-
determination.
(b) Goals.--The demonstration program under this section shall be
carried out in a manner that--
(1) protects the financial interests of the Federal
Government;
(2) reduces the proportion of funds provided by the Federal
Government and by owners and residents of multifamily housing
projects that are used for costs of utilities for such
projects;
(3) encourages energy efficiency and conservation by owners
and residents of multifamily housing projects and installation
of renewable energy improvements, such as improvements
providing for use of solar, wind, geothermal, or biomass energy
sources;
(4) creates incentives for project owners to carry out such
energy efficiency renovations and improvements by allowing a
portion of the savings in operating costs resulting from such
renovations and improvements to be retained by the project
owner, notwithstanding otherwise applicable limitations on
dividends;
(5) allows project owners and tenants to share the savings
in operating costs resulting from such renovations and
improvements in accordance with an appropriate ratio;
(6) promotes the installation, in existing residential
buildings, of energy efficient and cost-effective improvements
and renewable energy improvements, such as improvements
providing for use of solar, wind, geothermal, or biomass energy
sources;
(7) tests the efficacy of a variety of energy efficiency
measures for multifamily housing projects of various sizes and
in various geographic locations;
(8) tests methods for addressing the various, and often
competing, incentives that impede owners and residents of
multifamily housing projects from working together to achieve
energy efficiency or conservation; and
(9) creates a database of energy efficiency and
conservation, and renewable energy, techniques, energy savings
management practices, and energy efficiency and conservation
financing vehicles.
(c) Approaches.--In carrying out the demonstration program under
this section, the Secretary may take the following actions:
(1) Enter into agreements with the Building America Program
of the Department of Energy and other consensus committees
under which such programs, partnerships, or committees assume
some or all of the functions, obligations, and benefits of the
Secretary with respect to energy savings.
(2) Establish advisory committees to advise the Secretary
and any such third party partners on technological and other
developments in the area of energy efficiency and the creation
of an energy efficiency and conservation credit facility and
other financing opportunities that--
(A) include representatives of homebuilders,
realtors, architects, nonprofit housing organizations,
environmental protection organizations, renewable
energy organizations, State housing finance agencies,
and advocacy organizations for low-income individuals,
the elderly, and persons with disabilities; and
(B) are not subject to the Federal Advisory
Committee Act (5 U.S.C. App.).
(3) Develop a competitive process for the award of such
additional assistance for multifamily housing projects seeking
to implement energy efficiency, renewable energy sources, or
conservation measures.
(4) Waive or modify any existing Federal regulatory
provision that would otherwise impair the implementation or
effectiveness of the demonstration program under this section,
including provisions relating to methods for rent adjustments,
comparability standards, maximum rent schedules, and utility
allowances. Notwithstanding the preceding provisions of this
paragraph, the Secretary may not waive any statutory
requirement relating to fair housing, nondiscrimination, labor
standards, or the environment, except pursuant to existing
authority to waive nonstatutory environmental and other
applicable requirements.
(d) Requirement.--During the 4-year period beginning 12 months
after the date of enactment of this Act, the Secretary shall carry out
demonstration programs under this section with respect to not fewer
than 50,000 dwelling units.
(e) Selection.--
(1) Scope.--
(A) In general.--In order to provide a broad and
representative profile for use in designing a program
which can become operational and effective nationwide,
the Secretary shall carry out the demonstration program
under this section with respect to dwelling units
located in a wide variety of geographic areas and
project types assisted by the various covered
multifamily assistance programs and using a variety of
energy efficiency and conservation and funding
techniques to reflect differences in climate, types of
dwelling units, technical and scientific methodologies,
and financing options.
(B) Indian lands.--The Secretary shall ensure that
the geographic areas included in the demonstration
program under this section include dwelling units on
Indian lands (as that term is defined in section 2601
of the Energy Policy Act of 1992 (25 U.S.C. 3501)), to
the extent that dwelling units on Indian land have the
type of residential structures that are the focus of
the demonstration program.
(2) Priority.--The Secretary shall provide priority for
selection for participation in the program under this section
based on the extent to which, as a result of assistance
provided, the project will meet minimum energy efficiency
standards or enhanced energy efficiency standards.
(f) Use of Existing Partnerships.--To the extent feasible, the
Secretary shall--
(1) utilize the Partnership for Advancing Technology in
Housing of the Department of Housing and Urban Development to
assist in carrying out the requirements of this section and to
provide education and outreach regarding the demonstration
program authorized under this section; and
(2) consult with the Secretary of Energy, the Administrator
of the Environmental Protection Agency, and the Secretary of
the Army regarding utilizing the Building America Program of
the Department of Energy, the Energy Star Program, and the Army
Corps of Engineers, respectively, to determine the manner in
which such programs might assist in carrying out the goals of
this section and providing education and outreach regarding the
demonstration program authorized under this section.
(g) Reports.--
(1) Annual report.--Not later than 2 years after the date
of enactment of this Act, and for each year thereafter during
the term of the demonstration program, the Secretary shall
submit to Congress a report that describes and assesses the
demonstration program under this section.
(2) Final report.--Not later than 6 months after the
expiration of the 4-year period described in subsection (d),
the Secretary shall submit to Congress a final report assessing
the demonstration program that--
(A) assesses the potential for expanding the
demonstration program on a nationwide basis; and
(B) includes descriptions of--
(i) the size of each multifamily housing
project for which assistance was provided under
the program;
(ii) the geographic location of each
project assisted, by State and region;
(iii) the criteria used to select the
projects for which assistance is provided under
the program;
(iv) the energy efficiency and conservation
measures and financing sources used for each
project that is assisted under the program;
(v) the difference, before and during
participation in the demonstration program, in
the amount of the monthly assistance payments
under the covered multifamily assistance
program for each project assisted under the
program;
(vi) the average length of the term of the
assistance provided under the program for a
project;
(vii) the aggregate amount of savings
generated by the demonstration program and the
amount of savings expected to be generated by
the program over time on a per-unit and
aggregate program basis;
(viii) the functions performed in
connection with the implementation of the
demonstration program that were transferred or
contracted out to any third parties;
(ix) an evaluation of the overall successes
and failures of the demonstration program; and
(x) recommendations for any actions to be
taken as a result of such successes and
failures.
(3) Contents.--Each annual report pursuant to paragraph (1)
and the final report pursuant to paragraph (2) shall include--
(A) a description of the status of each multifamily
housing project selected for participation in the
demonstration program under this section; and
(B) findings from the program and recommendations
for any legislative actions.
(h) Covered Multifamily Assistance Program.--For purposes of this
section, the term ``covered multifamily assistance program'' means--
(1) the program under section 8 of the United States
Housing Act of 1937 (42 U.S.C. 1437f) for project-based rental
assistance;
(2) the program under section 202 of the Housing Act of
1959 (12 U.S.C. 1701q) for assistance for supportive housing
for the elderly;
(3) the program under section 811 of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 8013) for supportive
housing for persons with disabilities; and
(4) the program for assistance under the Native American
Housing Assistance and Self-Determination Act of 1996 (25
U.S.C. 4111).
(i) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $50,000,000 for each fiscal year
in which the demonstration program under this section is carried out.
(j) Regulations.--Not later than 180 days after the date of
enactment of this Act, the Secretary shall issue any regulations
necessary to carry out this section.
SEC. 8. ADDITIONAL CREDIT FOR FANNIE MAE AND FREDDIE MAC HOUSING GOALS
FOR ENERGY EFFICIENT MORTGAGES.
Section 1336(a) of the Housing and Community Development Act of
1992 (12 U.S.C. 4566(a)) is amended--
(1) in paragraph (2), by striking ``paragraph (5)'' and
inserting ``paragraphs (5) and (6)''; and
(2) by adding at the end the following:
``(6) Additional energy efficiency credit.--
``(A) In general.--In assigning credit toward
achievement under this section of the housing goals for
mortgage purchase activities of the enterprises, the
Director shall assign--
``(i) more than 125 percent credit, for
purchases that--
``(I) comply with the requirements
of such goals; and
``(II) support housing that meets
minimum energy efficiency standards, as
that term is defined in section 3 of
the Energy Efficiency in Housing Act of
2009; and
``(ii) credit in addition to credit under
clause (i), for purchases that--
``(I) comply with the requirements
of such goals; and
``(II) support housing that
complies with enhanced energy
efficiency standards, as that term is
defined in section 3 of such Act.
``(B) Treatment of additional credit.--The
availability of additional credit under this paragraph
shall not be used to increase any housing goal,
subgoal, or target established under this subpart.''.
SEC. 9. DUTY TO SERVE UNDERSERVED MARKETS FOR ENERGY EFFICIENT AND
LOCATION EFFICIENT MORTGAGES.
Section 1335 of the Federal Housing Enterprises Financial Safety
and Soundness Act of 1992 (12 U.S.C. 4565) is amended--
(1) in subsection (a)(1), by adding at the end the
following:
``(D) Markets for energy efficient and location
efficient mortgages.--
``(i) Duty.--Except as provided in clause
(ii), the enterprise shall develop loan
products and flexible underwriting guidelines
to facilitate a secondary market for energy
efficient and location efficient mortgages on
housing for very low-, low-, and moderate-
income families, and for second and junior
mortgages made for purposes of energy
efficiency or renewable energy improvements.
``(ii) Authority to suspend.--
Notwithstanding any other provision of this
section, the Director may suspend the
applicability of the requirement under clause
(i) with respect to an enterprise, for such
period as is necessary, if the Director
determines that exigent circumstances exist and
such suspension is appropriate to ensure the
safety and soundness of the portfolio holdings
of the enterprise.'';
(2) by adding at the end the following:
``(e) Definitions.--For purposes of this section, the following
definitions shall apply:
``(1) Energy efficient mortgage.--The term `energy
efficient mortgage' means a mortgage loan under which the
income of the borrower, for purposes of qualification for such
loan, is considered to be increased by--
``(A) not less than $1 for each $1 of savings
projected to be realized by the borrower as a result of
cost-effective energy saving design, construction, or
improvements (including use of renewable energy
sources, such as solar, geothermal, biomass, and wind,
superinsulation, energy-saving windows, insulating
glass and film, and radiant barrier) for the home for
which the loan is made; or
``(B) a ratio of income to savings determined by
the Director.
``(2) Location efficient mortgage.--The term `location
efficient mortgage' means a mortgage loan under which--
``(A) the income of the borrower, for purposes of
qualification for such loan, is considered to be
increased by--
``(i) not less than $1 for each $1 of
savings projected to be realized by the
borrower because the location of the home for
which the loan is made will result in decreased
transportation costs for the household of the
borrower; or
``(ii) a ratio of income to savings
determined by the Director; or
``(B) the sum of the principal, interest, taxes,
and insurance due under the mortgage loan is decreased
by--
``(i) not less than $1 for each $1 of
savings projected to be realized by the
borrower because the location of the home for
which loan is made will result in decreased
transportation costs for the household of the
borrower; or
``(ii) a ratio of principal, interest,
taxes, and insurance due under the mortgage to
savings projected to be realized by the
borrower determined by the Director.''.
SEC. 10. CONSIDERATION OF ENERGY EFFICIENCY UNDER FHA MORTGAGE
INSURANCE PROGRAMS AND NATIVE AMERICAN AND NATIVE
HAWAIIAN LOAN GUARANTEE PROGRAMS.
(a) FHA Mortgage Insurance.--
(1) Requirement.--Title V of the National Housing Act is
amended by adding after section 542 (12 U.S.C. 1735f-20) the
following:
``SEC. 543. CONSIDERATION OF ENERGY EFFICIENCY.
``(a) Underwriting Standards.--In establishing underwriting
standards for mortgages on single family housing that meets minimum
energy efficiency standards, as that term is defined in section 3 of
the Energy Efficiency in Housing Act of 2009, that are insured under
this Act, the Secretary shall consider the impact that savings on
utility costs has on the income of the mortgagor.
``(b) Goal.--It is the sense of the Congress that, in carrying out
this Act, the Secretary should endeavor to insure mortgages on single
family housing that meets minimum energy efficiency standards, as that
term is defined in section 3 of the Energy Efficiency in Housing Act of
2009, such that at least 50,000 such mortgages are insured during the
period beginning on the date of enactment of such Act and ending on
December 31, 2012.''.
(2) Reporting on defaults.--Section 540(b)(2) of the
National Housing Act (12 U.S.C. 1735f-18(b)(2)) is amended by
adding at the end the following:
``(C) With respect to each collection period that
commences after December 31, 2011--
``(i) the total number of mortgages on
single family housing that meets minimum energy
efficiency standards, as that term is defined
in section 3 of the Energy Efficiency in
Housing Act of 2009, that are insured by the
Secretary during the applicable collection
period;
``(ii) the number of defaults and
foreclosures occurring on such mortgages during
such period;
``(iii) the percentage of the total of such
mortgages insured during such period on which
defaults and foreclosure occurred; and
``(iv) the rate for such period of defaults
and foreclosures on such mortgages compared to
the overall rate for such period of defaults
and foreclosures on mortgages for single family
housing insured under this Act by the
Secretary.''.
(b) Indian Housing Loan Guarantees.--
(1) Requirement.--Section 184 of the Housing and Community
Development Act of 1992 (12 U.S.C. 1715z-13a) is amended--
(A) by redesignating subsection (l) as subsection
(m); and
(B) by inserting after subsection (k) the
following:
``(l) Consideration of Energy Efficiency.--The Secretary shall
establish a method to consider, in its underwriting standards for loans
for single family housing that meet minimum energy efficiency
standards, as that term is defined in section 3 of the Energy
Efficiency in Housing Act of 2009, that are guaranteed under this
section, the impact that savings on utility costs has on the portion of
the income of the borrower that is available to service the mortgage
debt.''.
(2) Reporting on defaults.--Section 540(b)(2) of the
National Housing Act (12 U.S.C. 1735f-18(b)(2)), as amended by
subsection (a)(2) of this section, is amended by adding at the
end the following:
``(D) With respect to each collection period that
commences after December 31, 2011--
``(i) the total number of loans guaranteed
under section 184 of the Housing and Community
Development Act of 1992 (12 U.S.C. 1715z-13a)
for single family housing that meets enhanced
energy efficiency standards, as that term is
defined in section 3 of the Energy Efficiency
in Housing Act of 2009, that are guaranteed by
the Secretary during the applicable collection
period;
``(ii) the number of defaults and
foreclosures that occur on such loans during
such period;
``(iii) the percentage of the total number
of such loans guaranteed during such period on
which defaults and foreclosures occurred; and
``(iv) the rate for such period of defaults
and foreclosures on such loans compared to the
overall rate for such period of defaults and
foreclosures on loans for single family housing
guaranteed under section 184 of such Act.''.
(c) Native Hawaiian Housing Loan Guarantees.--
(1) Requirement.--Section 184A of the Housing and Community
Development Act of 1992 (12 U.S.C. 1715z-13b) is amended by
adding at the end the following:
``(m) Energy Efficient Housing Requirement.--The Secretary shall
establish a method to consider, in its underwriting standards for loans
for single family housing that meets minimum energy efficiency
standards, as that term is defined in section 3 of the Energy
Efficiency in Housing Act of 2009, that are guaranteed under this
section, the impact that savings on utility costs have on the income of
the borrower.''.
(2) Reporting on defaults.--Section 540(b)(2) of the
National Housing Act (12 U.S.C. 1735f-18(b)(2)), as amended by
the preceding provisions of this section, is amended by adding
at the end the following:
``(E) With respect to each collection period that
commences after December 31, 2011--
``(i) the total number of loans guaranteed
under section 184A of the Housing and Community
Development Act of 1992 (12 U.S.C. 1715z-13b)
on single family housing that meets enhanced
energy efficiency standards, as that term is
defined in section 3 of the Energy Efficiency
in Housing Act of 2009, that are guaranteed by
the Secretary during the applicable collection
period;
``(ii) the number of defaults and
foreclosures occurring on such loans during
such period;
``(iii) the percentage of the total of such
loans guaranteed during such period on which
defaults and foreclosures occurred; and
``(iv) the rate for such period of defaults
and foreclosures on such loans compared to the
overall rate for such period of defaults and
foreclosures on loans for single family housing
guaranteed under such section 184A.''.
SEC. 11. ENERGY EFFICIENT MORTGAGES EDUCATION AND OUTREACH CAMPAIGN.
Section 513 of the Housing and Community Development Act of 1992
(12 U.S.C. 1701z-16 note) is amended by adding at the end the
following:
``(g) Education and Outreach Campaign.--
``(1) Development of energy efficient mortgage outreach
program.--
``(A) Commission.--The Secretary, in consultation
and coordination with the Secretary of Energy, the
Secretary of Education, the Secretary of Agriculture,
and the Administrator of the Environmental Protection
Agency, shall establish a commission to develop and
recommend model mortgage products and underwriting
guidelines that provide market-based incentives to
prospective home buyers, lenders, and sellers to
incorporate energy efficiency upgrades in new mortgage
loan transactions.
``(B) Report.--Not later than 24 months after the
date of enactment of this subsection, the Secretary
shall submit to Congress a written report on the
results of work of the commission established pursuant
to subparagraph (A) and that identifies model mortgage
products and underwriting guidelines that may encourage
energy efficiency.
``(2) Implementation.--
``(A) In general.--After submission of the report
under paragraph (1)(B), the Secretary, in consultation
and coordination with the Secretary of Energy, the
Secretary of Education, and the Administrator of the
Environmental Protection Agency, shall carry out a
public awareness, education, and outreach campaign
based on the findings of the commission established
pursuant to paragraph (1) to inform and educate
residential lenders and prospective borrowers regarding
the availability, benefits, advantages, and terms of--
``(i) energy efficient mortgages made
available pursuant to this section;
``(ii) energy efficient mortgages that meet
the requirements of section 1334A of this Act;
and
``(iii) other mortgages, including
mortgages for multifamily housing, that have
energy improvement features.
``(B) Contracting.--The Secretary may enter into a
contract with an appropriate entity to publicize and
market such mortgages through appropriate media.
``(3) Renewable energy home product expositions.--It is the
sense of Congress that the Secretary of Housing and Urban
Development should work with appropriate entities to organize
and hold renewable energy expositions that provide an
opportunity for the public to view and learn about renewable
energy products for the home that are currently on the market.
``(4) Authorization of appropriations.--There is authorized
to be appropriated to the Secretary to carry out this
subsection $5,000,000 for each of fiscal years 2010 through
2013.''.
SEC. 12. COLLECTION OF INFORMATION ON ENERGY EFFICIENT AND LOCATION
EFFICIENT MORTGAGES THROUGH HOME MORTGAGE DISCLOSURE ACT.
(a) In General.--Section 304(b)(1) of the Home Mortgage Disclosure
Act of 1975 (12 U.S.C. 2803(b)(1)) is amended--
(1) in paragraph (3), by striking ``and'' at the end;
(2) in paragraph (4), by striking the period at the end and
inserting a semicolon; and
(3) by adding at the end the following new paragraphs:
``(5) the number and dollar amount of mortgage loans for
single family housing and for multifamily housing that are
energy efficient mortgages (as such term is defined in section
1334A of the Housing and Community Development Act of 1992);
and
``(6) the number and dollar amount of mortgage loans for
single family housing and for multifamily housing that are
location efficient mortgages (as such term is defined in
section 1334A of Housing and Community Development Act of
1992).''.
(b) Applicability.--The amendment made by subsection (a) shall
apply with respect to the first calendar year that begins after the
expiration of the 30-day period beginning on the date of enactment of
this Act.
SEC. 13. ENERGY EFFICIENCY CERTIFICATIONS FOR HOUSING WITH MORTGAGES
INSURED BY FHA.
Section 526 of the National Housing Act (12 U.S.C. 1735f-4(a)) is
amended--
(1) in subsection (a)--
(A) by striking ``, other than manufactured
homes,'' each place that term appears;
(B) by inserting after the period at the end the
following: ``The energy performance requirements
developed and established by the Secretary under this
section for manufactured homes shall require Energy
Star ratings for wall fixtures, appliances, and
equipment in such homes.'';
(C) by striking ``(a) To'' and inserting the
following:
``(a) Energy Efficiency.--
``(1) In general.--To''; and
(D) by adding at the end the following:
``(2) Certification.--The Secretary shall require, with
respect to any single family or multifamily residential housing
subject to a mortgage insured under this Act, that any approval
or certification of the housing for meeting any energy
efficiency or conservation criteria, standards, or requirements
pursuant to this title and any approval or certification
required pursuant to this title with respect to energy
conserving improvements or any renewable energy sources, such
as wind, solar energy, geothermal, or biomass, shall be
conducted only by an individual certified by a home energy
rating system provider that has been accredited to conduct such
ratings by the Home Energy Ratings System Council, the
Residential Energy Services Network, or such other appropriate
national organization, as the Secretary may provide, or by a
licensed professional architect or engineer that has been
accredited as a LEED Accredited Professional by the Green
Building Certification Institute. If any organization makes a
request to the Secretary for approval to accredit individuals
to conduct energy efficiency or conservation ratings, the
Secretary shall review and approve or disapprove such request
not later than 6 months after receipt of such request.
``(3) Listing.--Each regional office of the Department of
Housing and Urban Development shall maintain a list of
individuals certified by a home energy rating system provider
that has been accredited to conduct such ratings by the Home
Energy Ratings System Council, the Residential Energy Services
Network, or such other appropriate national organizations or
professionals as the Secretary may designate. Such list shall
indicate that home energy rating system providers accredited by
the Residential Energy Services Network are preferred by the
Department of Housing and Urban Development.
``(4) Periodic examination of method.--The Secretary shall
periodically examine the method used to conduct inspections for
compliance with the requirements under this section, analyze
various other approaches for conducting such inspections, and
review the costs and benefits of the current method compared
with other methods.''; and
(2) in subsection (b)--
(A) by striking ``, other than a manufactured
home,''; and
(B) by striking ``(b) The'' and inserting the
following:
``(b) Health and Safety.--The''.
SEC. 14. ASSISTED HOUSING ENERGY LOAN PILOT PROGRAM.
(a) Authority.--Not later than 12 months after the date of
enactment of this Act, the Secretary shall develop and implement a
pilot program to facilitate the financing of cost-effective capital
improvements for covered assisted housing projects to improve the
energy efficiency and conservation of such projects.
(b) Number of Lenders.--The pilot program under this section shall
involve not less than 3 and not more than 5 lenders.
(c) Loans.--The pilot program under this section shall provide for
a privately financed loan to be made for a covered assisted housing
project that--
(1) finances capital improvements for the project that meet
such requirements as the Secretary shall establish, and may
involve contracts with third parties to perform such capital
improvements, including the design of such improvements by
licensed professional architects or engineers;
(2) has a term to maturity that is--
(A) not more than 20 years; and
(B) necessary to realize cost savings sufficient to
repay such loan;
(3) is secured by a mortgage subordinate to the mortgage
for the project that is insured under title II of the National
Housing Act; and
(4) provides for a reduction in the remaining principal
obligation under the loan based on the actual cost savings
realized from the capital improvements financed with the loan.
(d) Underwriting Standards.--The Secretary shall establish
underwriting requirements for loans made under the pilot program under
this section, which shall--
(1) require the cost savings projected to be realized from
the capital improvements financed with the loan, during the
term of the loan, to exceed the costs of repaying the loan;
(2) allow the designer or contractor involved in designing
capital improvements to be financed with a loan under the
program to carry out such capital improvements; and
(3) include such energy, audit, property, financial,
ownership, and approval requirements as the Secretary considers
appropriate.
(e) Treatment of Savings.--The pilot program under this section
shall provide that the financial benefit from any reduction in the cost
of utilities resulting from capital improvements financed with a loan
made under the program shall be shared between the project owner and
the tenants in accordance with an appropriate ratio, as determined by
the Secretary.
(f) Covered Assisted Housing Projects.--For purposes of this
section, the term ``covered assisted housing project'' means a housing
project that--
(1) is financed by a loan or mortgage that is--
(A) insured by the Secretary under paragraph (3) or
(4) of section 221(d) of the National Housing Act (12
U.S.C. 1715l(d)), and bears interest at a rate
determined under the proviso of section 221(d)(5) of
such Act; or
(B) insured or assisted under section 236 of the
National Housing Act (12 U.S.C. 1715z-1);
(2) at the time a loan under this section is made, is
provided project-based rental assistance under section 8 of the
United States Housing Act of 1937 (42 U.S.C. 1437f) for 50
percent or more of the dwelling units in the project; and
(3) is not a housing project owned or held by the
Secretary, or subject to a mortgage held by the Secretary.
SEC. 15. HOPE VI GREEN DEVELOPMENTS REQUIREMENT.
(a) Mandatory Component.--Section 24(e) of the United States
Housing Act of 1937 (42 U.S.C. 1437v(e)) is amended by adding at the
end the following:
``(4) Green developments requirement.--
``(A) Requirement.--The Secretary may not make a
grant under this section to an applicant unless the
proposed revitalization plan of the applicant to be
carried out with such grant amounts meets the following
requirements:
``(i) Residential construction.--All
residential construction under the proposed
plan complies with--
``(I) all mandatory items of the
national Green Communities criteria
checklist for residential construction
and rehabilitation and such
nonmandatory items of such checklist as
are necessary for a residential
construction to receive--
``(aa) 25 points, in the
case of any proposed plan (or
portion thereof) consisting of
new construction; and
``(bb) 20 points, in the
case of any proposed plan (or
portion thereof) consisting of
rehabilitation; or
``(II) a substantially equivalent
standard, as determined by the
Secretary.
``(ii) Nonresidential construction.--All
nonresidential construction under the proposed
plan complies with all minimum required levels
of the green building rating systems and levels
identified by the Secretary pursuant to
subparagraph (C), as such systems and levels
are in effect at the time of the application
for the grant.
``(B) Verification.--
``(i) In general.--The Secretary shall
verify, or provide for verification sufficient
to ensure, that each revitalization plan
carried out with amounts from a grant under
this section complies with the requirements
under subparagraph (A).
``(ii) Timing.--In providing for such
verification, the Secretary shall establish
procedures to ensure such compliance with
respect to each grantee, and shall submit a
report to Congress with respect to the
compliance of each grantee--
``(I) not later than 6 months after
execution of the grant agreement under
this section for the grantee; and
``(II) on completion of the
revitalization plan of the grantee.
``(C) Identification of green buildings rating
systems and levels.--
``(i) In general.--For purposes of this
paragraph, the Secretary, in consultation with
the Secretary of Energy, shall identify rating
systems and levels for green buildings that the
Secretary determines to be the most likely to
encourage a comprehensive and environmentally
sound approach to ratings and standards for
green buildings.
``(ii) Criteria.--In identifying the green
rating systems and levels under clause (i), the
Secretary shall take into consideration--
``(I) the ability and availability
of assessors and auditors to
independently verify the criteria and
measurement of metrics at the scale
necessary to implement this paragraph;
``(II) the ability of the
applicable ratings system organizations
to collect and reflect public comment;
``(III) the ability of the
standards to be developed and revised
through a consensus-based process;
``(IV) an evaluation of the
robustness of the criteria for a high-
performance green building, which shall
give credit for promoting--
``(aa) efficient and
sustainable use of water,
energy, and other natural
resources;
``(bb) use of renewable
energy sources;
``(cc) improved indoor and
outdoor environmental quality
through enhanced indoor and
outdoor air quality, thermal
comfort, acoustics, outdoor
noise pollution, day lighting,
pollutant source control,
sustainable landscaping, and
use of building system controls
and low- or no-emission
materials, including preference
for materials with no added
carcinogens that are classified
as Group 1 Known Carcinogens by
the International Agency for
Research on Cancer; and
``(dd) such other criteria
as the Secretary determines to
be appropriate; and
``(V) national recognition within
the building industry.
``(iii) Five-year evaluation.--At least
once every 5 years, the Secretary shall conduct
a study to evaluate and compare available third
party green building rating systems and levels,
taking into account the criteria listed in
clause (ii).
``(iv) Review and update.--Within 90 days
of the completion of each study required by
clause (iii), the Secretary shall review and
update the rating systems and levels, or
identify alternative systems and levels for
purposes of this paragraph, taking into account
the conclusions of such study.
``(D) Applicability and updating of standards.--
``(i) Applicability.--Except as provided in
clause (ii), the national Green Communities
criteria checklist and green building rating
systems and levels referred to in subparagraph
(A) that are in effect for purposes of this
paragraph are such checklist systems and levels
as in existence on the date of enactment of the
Energy Efficiency in Housing Act of 2009.
``(ii) Updating.--The Secretary may, by
regulation, adopt and apply for purposes of
this paragraph, future amendments and
supplements to, and editions of, the national
Green Communities criteria checklist, any
standard or standards that the Secretary has
determined to be substantially equivalent to
such checklist, and the green building ratings
systems and levels identified by the Secretary
pursuant to subparagraph (C).''.
(b) Selection Criteria; Graded Component.--Section 24(e)(2) of the
United States Housing Act of 1937 (42 U.S.C. 1437v(e)(2)) is amended--
(1) in subparagraph (K), by striking ``and'' at the end;
(2) by redesignating subparagraph (L) as subparagraph (M);
and
(3) by inserting after subparagraph (K) the following:
``(L) the extent to which the proposed
revitalization plan--
``(i) in the case of residential
construction, complies with the nonmandatory
items of the national Green Communities
criteria checklist identified in paragraph
(4)(A)(i), or any substantially equivalent
standard or standards as determined by the
Secretary, but only to the extent such
compliance exceeds the compliance necessary to
accumulate the number of points required under
such paragraph; and
``(ii) in the case of nonresidential
construction, complies with the components of
the green building rating systems and levels
identified by the Secretary pursuant to
paragraph (4)(C), but only to the extent such
compliance exceeds the minimum level required
under such systems and levels; and''.
SEC. 16. CONSIDERATION OF ENERGY EFFICIENCY IMPROVEMENTS IN APPRAISALS.
(a) Appraisals in Connection With Federally Related Transactions.--
(1) Requirement.--Section 1110 of the Financial
Institutions Reform, Recovery, and Enforcement Act of 1989 (12
U.S.C. 3339) is amended--
(A) in paragraph (1), by striking ``and'' at the
end;
(B) by redesignating paragraph (2) as paragraph
(3); and
(C) by inserting after paragraph (1) the following:
``(2) that such appraisals be performed in accordance with
appraisal standards that require, in determining the value of a
property, consideration of the ongoing utility savings and
increased value from the savings that result from--
``(A) any renewable energy sources for the
property; or
``(B) energy efficiency or energy conserving
improvements or features of the property; and''.
(2) Revision of appraisal standards.--Each Federal
financial institution regulatory agency shall, not later than 6
months after the date of enactment of this Act, revise its
standards for the performance of real estate appraisals in
connection with federally related transactions under the
jurisdiction of the agency to comply with the requirement under
the amendments made by paragraph (1).
(b) Appraiser Certification and Licensing Requirements.--Section
1116 of the Financial Institutions Reform, Recovery, and Enforcement
Act of 1989 (12 U.S.C. 3345) is amended--
(1) in subsection (a), by inserting before the period at
the end the following: ``and meets the requirements established
pursuant to subsection (f) for qualifications regarding
consideration of any renewable energy sources for, or energy
efficiency or energy conserving improvements or features of,
the property'';
(2) in subsection (c), by inserting before the period at
the end the following: ``, which shall include compliance with
the requirements established pursuant to subsection (f)
regarding consideration of any renewable energy sources for, or
energy efficiency or energy conserving improvements or features
of, the property'';
(3) in subsection (e), by striking ``The'' and inserting
``Except as provided in subsection (f), the''; and
(4) by adding at the end the following:
``(f) Requirements for Appraisers Regarding Energy Efficiency
Features.--The Appraisal Subcommittee shall establish requirements for
State certification of State certified real estate appraisers and for
State licensing of State licensed appraisers, to ensure that appraisers
consider and are qualified to consider, in determining the value of a
property, any renewable energy sources for, or energy efficiency or
energy conserving improvements or features of, the property.''.
(c) Guidelines for Appraising Photovoltaic and Solar Thermal
Measures and Training of Appraisers.--Section 1122 of the Financial
Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C.
3351) is amended by adding at the end the following:
``(g) Guidelines for Appraising Photovoltaic and Solar Thermal
Measures and Training of Appraisers.--The Appraisal Subcommittee shall,
in consultation with the Secretary of Housing and Urban Development,
the Federal National Mortgage Association, and the Federal Home Loan
Mortgage Corporation, establish specific guidelines for--
``(1) appraising off- and on-grid photovoltaic and solar
thermal measures for compliance with the appraisal standards
prescribed pursuant to section 1110(2);
``(2) requirements under section 1116(f) for certification
of State certified real estate appraisers and for State
licensing of State licensed appraisers, to ensure that
appraisers consider, and are qualified to consider, such
photovoltaic and solar thermal measures in determining the
value of a property; and
``(3) training of appraisers to meet the requirements
established pursuant to paragraph (2) of this subsection.''.
SEC. 17. ADDITIONAL REQUIREMENTS FOR THE HOUSING ASSISTANCE COUNCIL.
The Secretary shall require the Housing Assistance Council--
(1) to encourage each organization that receives assistance
from the Council with any amounts made available from the
Secretary to provide that any structure or building developed
or assisted under projects, programs, and activities funded
with such amounts complies with enhanced energy efficiency
standards; and
(2) to establish incentives to encourage each such
organization to provide that any such structure or building
complies with enhanced energy efficiency standards.
SEC. 18. RURAL HOUSING AND ECONOMIC DEVELOPMENT ASSISTANCE.
The Secretary shall--
(1) encourage each tribe, agency, organization,
corporation, and other entity that receives any assistance from
the Office of Rural Housing and Economic Development of the
Department of Housing and Urban Development to provide that any
structure or building developed or assisted under activities
funded with such amounts complies with minimum energy
efficiency standards; and
(2) establish incentives to encourage each such tribe,
agency, organization, corporation, and other entity to provide
that any such structure or building comply with enhanced energy
efficiency standards.
SEC. 19. REVOLVING FUND FOR LOANS TO STATES AND INDIAN TRIBES TO CARRY
OUT RENEWABLE ENERGY SOURCES ACTIVITIES.
(a) Establishment of Fund.--There is established in the Treasury of
the United States a revolving fund, to be known as the ``Alternative
Energy Sources State Revolving Fund''.
(b) Credits.--The Fund shall be credited with--
(1) any amounts appropriated to the Fund pursuant to
subsection (g);
(2) any amounts of principal and interest from loan
repayments received by the Secretary pursuant to subsection
(d)(7); and
(3) any interest earned on investments of amounts in the
Fund pursuant to subsection (e).
(c) Expenditures.--
(1) In general.--Subject to paragraph (2), on request by
the Secretary, the Secretary of the Treasury shall transfer
from the Fund to the Secretary such amounts as the Secretary
determines are necessary to provide loans under subsection
(d)(1).
(2) Administrative expenses.--Of the amounts in the Fund,
not more than 5 percent shall be available for each fiscal year
to pay the administrative expenses of the Department of Housing
and Urban Development to carry out this section.
(d) Loans to States and Indian Tribes.--
(1) In general.--The Secretary shall use amounts in the
Fund to provide loans to States and Indian tribes to provide
incentives to owners of single family and multifamily housing,
commercial properties, and public buildings to provide--
(A) renewable energy sources for such structures,
such as wind, wave, solar, biomass, or geothermal
energy sources, including incentives to companies and
businesses to change their source of energy to such
renewable energy sources and for changing the sources
of energy for public buildings to such renewable energy
sources;
(B) energy efficiency and energy conserving
improvements and features for such structures; or
(C) infrastructure related to the delivery of
electricity and hot water for structures lacking such
amenities.
(2) Eligibility.--To be eligible to receive a loan under
this subsection, a State or Indian tribe, directly or through
an appropriate State or tribal agency, shall submit to the
Secretary an application at such time, in such manner, and
containing such information as the Secretary may require.
(3) Criteria for approval.--The Secretary may approve an
application of a State or Indian tribe under paragraph (2) only
if the Secretary determines that the State or tribe will use
the funds from the loan under this subsection to carry out a
program to provide incentives described in paragraph (1) that--
(A) requires that any such renewable energy
sources, and energy efficiency and energy conserving
improvements and features, developed pursuant to
assistance under the program result in compliance of
the structure so improved with minimum energy
efficiency standards; and
(B) includes such compliance and audit requirements
as the Secretary determines are necessary to ensure
that the program is operated in a sound and effective
manner.
(4) Preference.--In making loans during each fiscal year,
the Secretary shall give preference to States and Indian tribes
that have not previously received a loan under this subsection.
(5) Maximum amount.--The aggregate outstanding principal
amount from loans under this subsection to any single State or
Indian tribe may not exceed $500,000,000.
(6) Loan terms.--Each loan under this subsection shall have
a term to maturity of not more than 10 years and shall bear
interest at an annual rate, determined by the Secretary, that
shall not exceed the interest rate charged by the Federal
Reserve Bank of New York to commercial banks and other
depository institutions for very short-term loans under the
primary credit program, as most recently published in the
Federal Reserve Statistical Release on selected interest rates
(daily or weekly), and commonly referred to as the H.15
release, preceding the date of a determination for purposes of
applying this paragraph.
(7) Loan repayment.--The Secretary shall require full
repayment of each loan made under this section.
(e) Investment of Amounts.--
(1) In general.--The Secretary of the Treasury shall invest
such amounts in the Fund that are not, in the judgment of the
Secretary of the Treasury, required to meet needs for current
withdrawals.
(2) Obligations of united states.--Investments may be made
only in interest-bearing obligations of the United States.
(f) Reports.--
(1) Reports to secretary.--For each year during the term of
a loan made under subsection (d), the State or Indian tribe
that received the loan shall submit to the Secretary a report
describing the State or tribal alternative energy sources
program for which the loan was made and the activities
conducted under the program using the loan funds during that
year.
(2) Report to congress.--Not later than September 30 of
each year that loans made under subsection (d) are outstanding,
the Secretary shall submit a report to Congress describing the
total amount of such loans provided under subsection (d) to
each eligible State and Indian tribe during the fiscal year
ending on such date, and an evaluation on effectiveness of the
Fund.
(g) Authorization of Appropriations.--There is authorized to be
appropriated to the Fund $5,000,000,000.
(h) Definitions.--In this section, the following definitions shall
apply:
(1) Indian tribe.--The term ``Indian tribe'' has the
meaning given such term in section 4 of the Native American
Housing Assistance and Self-Determination Act of 1996 (25
U.S.C. 4103).
(2) State.--The term ``State'' means each of the several
States, the Commonwealth of Puerto Rico, the District of
Columbia, the Commonwealth of the Northern Mariana Islands,
Guam, the Virgin Islands, American Samoa, the Trust Territories
of the Pacific, or any other possession of the United States.
SEC. 20. COMPETITIVE GRANT PROGRAM TO INCREASE SUSTAINABLE LOW-INCOME
COMMUNITY DEVELOPMENT CAPACITY.
(a) Definitions.--In this section:
(1) Eligible community development organization.--The term
``eligible community development organization'' means--
(A) a unit of general local government, as that
term is defined in section 104 of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12704));
(B) a community housing development organization,
as that term is defined in section 104 of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C.
12704));
(C) an Indian tribe or tribally designated housing
entity, as those terms are defined in section 4 of the
Native American Housing Assistance and Self-
Determination Act of 1996 (25 U.S.C. 4103)); and
(D) a public housing agency, as that term is
defined in section 3(b) of the United States Housing
Act of 1937 (42 U.S.C. 1437(b)).
(2) Low-income community.--The term ``low-income
community'' means a census tract in which 50 percent or more of
the households have an annual income that is less than 80
percent of the greater of--
(A) the median gross income for that year for the
area in which the census tract is located; or
(B) the median gross income for that year for the
State in which the census tract is located.
(3) Nonprofit organization.--The term ``nonprofit
organization'' has the same meaning as in section 104 of the
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
12704).
(b) Program Established.--The Secretary shall establish a
competitive grant program to make grants to nonprofit organizations
to--
(1) carry out a project described in subsection (c);
(2) train, educate, support, or advise an eligible
community development organization that carries out a project
described in subsection (c);
(3) provide planning and design assistance to eligible
community development organizations;
(4) make loans or grants to eligible community development
organizations; or
(5) carry out other activities consistent with this
section, as the Secretary determines appropriate.
(c) Projects.--The projects described in this subsection are
projects--
(1) that take into consideration minimum energy efficiency
standards, enhanced energy efficiency standards, and green
building standards; and
(2) that--
(A) improve the energy efficiency of residential
and nonresidential structures;
(B) promote resource conservation and reuse;
(C) include design strategies to maximize the
energy efficiency of residential and nonresidential
structures;
(D) install or construct renewable energy
improvements for residential and nonresidential
structures, including wind, wave, solar, biomass, and
geothermal energy sources; or
(E) promote the effective use of existing
infrastructure in affordable housing and economic
development activities in low-income communities.
(d) Priority.--In making grants under this section, the Secretary
shall give priority to activities that will result in compliance with
minimum energy efficiency standards, enhanced energy efficiency
standards, and green building standards.
(e) Application.--A nonprofit organization that desires a grant
under this section shall submit to the Secretary an application at such
time, in such manner, and containing such information as the Secretary
may require.
(f) Award of Contracts.--Any contract for architectural or
engineering services that is funded with amounts from grants made under
this section shall be awarded in accordance with chapter 11 of title
40, United States Code (relating to selection of architects and
engineers).
(g) Federal Share.--
(1) Amount of federal share.--The Federal share of the cost
of a project under this section may not exceed 50 percent.
(2) Form of non-federal share.--The non-Federal share of
the cost of a project under this section may be in cash or in-
kind.
(h) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary such sums as may be necessary to carry
out this section.
SEC. 21. INSURANCE COVERAGE FOR LOANS FOR FINANCING OF RENEWABLE ENERGY
SYSTEMS LEASED FOR RESIDENTIAL USE.
(a) Purposes.--The purposes of this section are--
(1) to encourage residential use of renewable energy
systems by minimizing upfront costs and providing immediate
utility cost savings to consumers through leasing of such
systems to homeowners;
(2) to reduce carbon emissions and the use of nonrenewable
resources;
(3) to encourage energy efficient residential construction
and rehabilitation;
(4) to encourage the use of renewable resources by
homeowners;
(5) to minimize the impact of development on the
environment;
(6) to reduce consumer utility costs; and
(7) to encourage private investment in the green economy.
(b) Definitions.--As used in this section, the following
definitions shall apply:
(1) Authorized renewable energy lender.--The term
``authorized renewable energy lender'' means a lender
authorized by the Secretary to make a loan under this section.
(2) Renewable energy system lease.--The term ``renewable
system energy lease'' means an agreement between an authorized
renewable energy system owner and a homeowner for a term of not
less than 5 years, pursuant to which the homeowner--
(A) grants an easement to such renewable energy
system owner to install, maintain, use, and otherwise
access the renewable energy system; and
(B) agrees to--
(i) lease the use of such system from such
renewable energy system owner; or
(ii) purchase electric power from such
renewable energy system owner.
(3) Renewable energy manufacturer.--The term ``renewable
energy manufacturer'' means a manufacturer of renewable energy
systems.
(4) Renewable energy system owner.--The term ``renewable
energy system owner'' means a homebuilder, a manufacturer or
installer of a renewable energy system, or any other person, as
determined by the Secretary.
(5) Renewable energy system.--The term ``renewable energy
system'' means a system of energy derived from--
(A) a wind, solar (including photovoltaic and solar
thermal), biomass (including biodiesel), or geothermal
source; or
(B) hydrogen derived from biomass or water using an
energy source described in subparagraph (A).
(c) Authority.--
(1) In general.--The Secretary may, upon application by an
authorized renewable energy system owner, insure or make a
commitment to insure a loan made by an authorized renewable
energy lender to a renewable energy system owner to finance the
acquisition of a renewable energy system for lease to a
homeowner for use at the residence of such homeowner.
(2) Terms and conditions.--The Secretary may prescribe such
terms and conditions for insurance under paragraph (1) as are
consistent with the purposes of this section.
(d) Limitation on Principal Amount.--
(1) Limitation.--The principal amount of a loan insured
under this section shall not exceed the residual value of the
renewable energy system to be acquired with the loan.
(2) Residual value.--For purposes of this subsection--
(A) the residual value of a renewable energy system
is the fair market value of the future revenue stream
from the sale of the expected remaining electricity
production from the system, pursuant to the easement
granted in accordance with subsection (e); and
(B) the fair market value of the future revenue
stream for each year of the remaining life of the
renewable energy system shall be determined based on
the net present value of the power output production
warranty for such renewable energy system provided by
the renewable energy manufacturer and the forecast of
regional residential electricity prices made by the
Energy Information Administration of the Department of
Energy.
(e) Easement.--The Secretary may not insure a loan under this
section unless the renewable energy system owner certifies, in
accordance with such requirements as the Secretary shall establish,
consistent with the purposes of this section, that the systems financed
will be leased only to homeowners that grant easements to install,
maintain, use, and otherwise access the system that include the right
to sell electricity produced during the life of the renewable energy
system to a wholesale or retail electrical power grid.
(f) Discount or Prepayment.--To encourage the use of renewable
energy systems, the Secretary shall ensure that a discount given to a
homeowner by a renewable energy system owner or other investor or
prepayment of a renewable energy system lease by a renewable energy
system owner does not adversely affect the mortgage requirements of
such homeowner.
(g) Eligibility of Lenders.--The Secretary may not insure a loan
under this section unless the lender making the loan--
(1) is an institution that--
(A) qualifies as a green banking center under
section 8(x) of the Federal Deposit Insurance Act (12
U.S.C. 1818(x)) or section 206(x) of the Federal Credit
Union Act (12 U.S.C. 1786(x)); or
(B) meets such other requirements as the Secretary
shall establish for participation of renewable energy
lenders in the program under this section; and
(2) meets such qualifications as the Secretary shall
establish for all lenders for participation in the program
under this section.
(h) Certificate of Insurance.--
(1) In general.--The Secretary shall issue to a lender that
is insured under this section a certificate that serves as
evidence of insurance coverage under this section.
(2) Contents of certificate.--The certificate required
under paragraph (1) shall set forth the fair market value of
the future revenue stream for each year of the remaining life
of the renewable energy system.
(3) Full faith and credit.--The certificate required under
paragraph (1) shall be backed by the full faith and credit of
the United States.
(i) Payment of Insurance Claim.--
(1) Filing of claim.--The Secretary shall provide for the
filing of claims for insurance under this section and the
payment of such claims.
(2) Payment of claim.--A claim under paragraph (1) may be
paid only upon a default under the loan insured under this
section and the assignment, transfer, and delivery to the
Secretary of--
(A) all rights and interests arising under the
loan; and
(B) all claims of the lender or the assigns of the
lender against the borrower or others arising under the
loan transaction.
(3) Lien.--
(A) In general.--Upon payment of a claim for
insurance of a loan under this section, the Secretary
shall hold a lien on the underlying renewable energy
system assets and any associated revenue stream from
the use of such system, which shall be superior to all
other liens on such assets.
(B) Residual value.--The residual value of such
renewable energy system and the revenue stream from the
use of such system shall be not less than the unpaid
balance of the loan amount covered by the certificate
of insurance.
(C) Revenue from sale.--The Secretary shall be
entitled to any revenue generated by such renewable
energy system from selling electricity to the grid when
an insurance claim has been paid out.
(j) Assignment and Transferability of Insurance.--A renewable
energy system owner or an authorized renewable energy lender that is
insured under this section may assign or transfer the insurance in
whole or in part, to another owner or lender, subject to such
requirements as the Secretary may prescribe.
(k) Premiums and Charges.--
(1) Insurance premiums.--
(A) In general.--The Secretary shall fix and
collect premiums for insurance of loans under this
section, that shall be paid by the applicant renewable
energy system owner at the time of issuance of the
certificate of insurance to the lender and shall be
adequate, in the determination of the Secretary, to
cover the expenses and probable losses of administering
the program under this section.
(B) Deposit of premium.--The Secretary shall
deposit any premiums collected under this subsection in
the Renewable Energy Lease Insurance Fund established
under subsection (l).
(2) Prohibition on other charges.--Except as provided in
paragraph (1), the Secretary may not assess any other fee
(including a user fee), insurance premium, or charge in
connection with loan insurance provided under this section.
(l) Renewable Energy Lease Insurance Fund.--
(1) Fund established.--There is established in the Treasury
of the United States the Renewable Energy Lease Insurance Fund
(referred to in this subsection as the ``Fund''), which shall
be available to the Secretary without fiscal year limitation,
for the purpose of providing insurance under this section.
(2) Credits.--The Fund shall be credited with any premiums
collected under subsection (k)(1), any amounts collected by the
Secretary under subsection (i)(3), and any associated interest
or earnings.
(3) Availability.--Amounts in the Fund shall be available
to the Secretary for fulfilling any obligations with respect to
insurance for loans provided under this section and paying
administrative expenses in connection with this section.
(4) Excess amounts.--The Secretary may invest in
obligations of the United States any amounts in the Fund
determined by the Secretary to be in excess of amounts required
at the time of such determination to carry out this section.
(m) Regulations.--
(1) In general.--The Secretary shall issue such regulations
as may be necessary to carry out this section.
(2) Timing.--Not later than 180 days after the date of
enactment of this Act, the Secretary shall issue interim or
final regulations.
(n) Ineligibility for Purchase by Federal Financing Bank.--
Notwithstanding any other provision of law, no debt obligation that is
insured or committed to be insured by the Secretary under this section
shall be subject to the Federal Financing Bank Act of 1973 (12 U.S.C.
2281 et seq.).
(o) Termination of Authority.--The authority of the Secretary to
insure and make commitments to insure new loans under this Act shall
terminate 10 years after the date of enactment of this Act.
SEC. 22. GREEN BANKING CENTERS.
(a) Insured Depository Institutions.--Section 8 of the Federal
Deposit Insurance Act (12 U.S.C. 1818) is amended by adding at the end
the following:
``(x) Green Banking Centers.--
``(1) In general.--The Federal banking agencies shall
prescribe guidelines encouraging the establishment and
maintenance of green banking centers by insured depository
institutions to provide any consumer who seeks information on
obtaining a mortgage, home improvement loan, or home equity
loan with additional information on--
``(A) obtaining a home energy rating or audit for
the residence for which such mortgage or loan is
sought;
``(B) obtaining financing for cost-effective
energy-saving improvements to such property; and
``(C) obtaining beneficial terms for any mortgage
or loan, or qualifying for a larger mortgage or loan,
secured by a residence which meets or will meet energy
efficiency standards.
``(2) Information and referrals.--The information made
available to consumers under paragraph (1) may include--
``(A) information on obtaining a home energy rating
and contact information on qualified energy raters in
the area of the residence;
``(B) information on the secondary market
guidelines that permit lenders to provide more
favorable terms by allowing lenders to increase the
ratio on debt-to-income requirements or to use the
projected utility savings as a compensating factor;
``(C) information including eligibility information
about, and contact information for, any conservation or
renewable energy programs, grants, or loans offered by
the Secretary of Housing and Urban Development,
including the Energy Efficient Mortgage Program;
``(D) information including eligibility information
about, and contact information for, any conservation or
renewable energy programs, grants, or loans offered for
qualified military personal, reservists, and veterans
by the Secretary of Veterans Affairs;
``(E) information about, and contact information
for, the Office of Efficiency and Renewable Energy at
the Department of Energy, including the weatherization
assistance program;
``(F) information about, and contact information
for, the Energy Star Program of the Environmental
Protection Agency;
``(G) information from, and contact information
for, the Federal Citizen Information Center of the
General Services Administration on energy efficient
mortgages and loans, home energy rating systems, and
the availability of energy efficient mortgage
information from a variety of Federal agencies; and
``(H) such other information as the agencies or the
insured depository institution may determine to be
appropriate or useful.''.
(b) Insured Credit Unions.--Section 206 of the Federal Credit Union
Act (12 U.S.C. 1786) is amended by adding at the end the following:
``(x) Green Banking Centers.--
``(1) In general.--The Board shall prescribe guidelines
encouraging the establishment and maintenance of green banking
centers by insured credit unions to provide any member who
seeks information on obtaining a mortgage, home improvement
loan, or home equity loan with additional information on--
``(A) obtaining a home energy rating or audit for
the residence for which such mortgage or loan is
sought;
``(B) obtaining financing for cost-effective
energy-saving improvements to such property; and
``(C) obtaining beneficial terms for any mortgage
or loan, or qualifying for a larger mortgage or loan,
secured by a residence which meets or will meet energy
efficiency standards.
``(2) Information and referrals.--The information made
available to members under paragraph (1) may include--
``(A) information on obtaining a home energy rating
and contact information on qualified energy raters in
the area of the residence;
``(B) information on the secondary market
guidelines that permit lenders to provide more
favorable terms by allowing lenders to increase the
ratio on debt-to-income requirements or to use the
projected utility savings as a compensating factor;
``(C) information including eligibility information
about, and contact information for, any conservation or
renewable energy programs, grants, or loans offered by
the Secretary of Housing and Urban Development,
including the Energy Efficient Mortgage Program;
``(D) information including eligibility information
about, and contact information for, any conservation or
renewable energy programs, grants, or loans offered for
qualified military personnel, reservists, and veterans
by the Secretary of Veterans Affairs;
``(E) information about, and contact information
for, the Office of Efficiency and Renewable Energy at
the Department of Energy, including the weatherization
assistance program;
``(F) information from, and contact information
for, the Federal Citizen Information Center of the
General Services Administration on energy efficient
mortgages and loans, home energy rating systems, and
the availability of energy efficient mortgage
information from a variety of Federal agencies;
``(G) information about incentives or financial
products that are available for projects that are
consistent with or certified under minimum energy
efficiency standards, enhanced efficiency standards, or
green building standards, as those terms are defined in
section 3 of the Energy Efficiency in Housing Act of
2009; and
``(H) such other information as the Board or the
insured credit union may determine to be appropriate or
useful.''.
SEC. 23. GAO REPORTS ON AVAILABILITY OF AFFORDABLE MORTGAGES.
(a) Study.--The Comptroller General of the United States shall
periodically, as necessary to comply with subsection (b), examine the
impact of this Act and the amendments made by this Act on the
availability of affordable mortgages in various areas throughout the
United States, including cities having older infrastructure and limited
space for the development of new housing.
(b) Triennial Reports.--
(1) Report required.--The Comptroller General shall submit
a report once every 3 years to the Committee on Banking,
Housing, and Urban Affairs of the Senate and the Committee on
Financial Services of the House of Representatives.
(2) Contents of report.--The report under paragraph (1)
shall include--
(A) a detailed statement of the most recent
findings pursuant to subsection (a); and
(B) if the Comptroller General finds that this Act
or the amendments made by this Act have directly or
indirectly resulted in consequences that limit the
availability or affordability of mortgages in any area
or areas within the United States, including any city
having older infrastructure and limited space for the
development of new housing, any recommendations for any
additional actions at the Federal, State, or local
levels that the Comptroller General considers necessary
or appropriate to mitigate such effects.
(3) Timing.--The first report under paragraph (1) shall be
submitted not later than 3 years after the date of enactment of
this Act.
SEC. 24. PUBLIC HOUSING ENERGY COST REPORT.
(a) Collection of Information by HUD.--
(1) In general.--The Secretary shall obtain from each
public housing agency, at such time as may be necessary to
comply with the reporting requirement under subsection (b),
information regarding the energy costs for public housing
administered or operated by the agency.
(2) Type of information.--For each public housing agency,
such information shall include the monthly energy costs
associated with each separate building and development of the
agency, for the most recently completed 12-month period for
which such information is available, and such other information
as the Secretary determines is appropriate in determining which
public housing buildings and developments are most in need of
repairs and improvements to reduce energy needs and costs and
become more energy efficient.
(b) Report.--Not later than 12 months after the date of enactment
of this Act, the Secretary shall submit to Congress a report setting
forth the information collected pursuant to subsection (a).
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