1.This Act may be cited as the
Home Star Energy Retrofit Act of
2010
.
2.In this Act:
(1)The term accredited contractor
means a residential energy efficiency contractor that meets the minimum
applicable requirements established under section 4.
(2)The term Administrator means
the Administrator of the Environmental Protection Agency.
(3)The term BPI means the
Building Performance Institute.
(4)The term certified workforce
means a residential energy efficiency construction workforce that is entirely
certified in the appropriate job skills for all employees performing
installation work under—
(A)an applicable third party skills standard
established by—
(i)the BPI;
(ii)the North American Technician Excellence;
or
(iii)the Laborers’ International Union of North
America; or
(B)other standards approved by the Secretary,
in consultation with the Secretary of Labor and the Administrator.
(5)The term conditioned space
means the area of a home that is—
(A)intended for habitation; and
(B)intentionally heated or cooled.
(6)The term DOE means the
Department of Energy.
(7)The term electric utility
means any person or State agency that delivers or sells electric energy at
retail, including nonregulated utilities and utilities that are subject to
State regulation and Federal power marketing administrations.
(8)The term EPA means the
Environmental Protection Agency.
(9)Federal Rebate Processing
SystemThe term Federal
Rebate Processing System means the Federal Rebate Processing System
established under section 3(b).
(10)Gold Star Home Energy Retrofit
ProgramThe term Gold
Star Home Energy Retrofit Program means the Gold Star Home Energy
Retrofit Program established under section 8.
(11)The term home means a
principal residential dwelling unit in a building with no more than 4 dwelling
units that—
(A)is located in the United States; and
(B)was constructed before the date of
enactment of this Act.
(12)The term Home Star loan
program means the Home Star energy efficiency loan program established
under section 15(a).
(13)Home Star Retrofit Rebate
ProgramThe term Home
Star Retrofit Rebate Program means the Home Star Retrofit Rebate Program
established under section 3(a).
(14)The term Indian tribe has the
meaning given the term in section 4 of the Indian Self-Determination and Education Assistance
Act (25 U.S.C. 450b).
(15)National Home Performance
CouncilThe term
National Home Performance Council means the National Home
Performance Council, Inc.
(16)The term natural gas utility
means any person or State agency that transports, distributes, or sells natural
gas at retail, including nonregulated utilities and utilities that are subject
to State regulation.
(17)The term qualified contractor
means a residential energy efficiency contractor that meets minimum applicable
requirements established under section 4.
(18)Quality assurance program
(A)The term quality assurance
program means a program established under this Act or recognized by the
Secretary under this Act, to oversee the delivery of home efficiency retrofit
programs to ensure that work is performed in accordance with standards and
criteria established under this Act.
(B)For purposes of subparagraph (A), delivery
of retrofit programs includes delivery of quality assurance reviews of rebate
applications and field inspections for a portion of customers receiving rebates
and conducted by a quality assurance provider, with the consent of
participating consumers and without delaying rebate payments to participating
contractors.
(19)Quality assurance providerThe term quality assurance
provider means any entity that meets the minimum applicable requirements
established under section 6.
(20)The term rebate aggregator
means an entity that meets the requirements of section 5.
(21)The term RESNET means the
Residential Energy Services Network, which is a nonprofit certification and
standard setting organization for home energy raters that evaluate the energy
performance of a home.
(22)The term Secretary means the
Secretary of Energy.
(23)Silver Star Home Energy Retrofit
ProgramThe term Silver
Star Home Energy Retrofit Program means the Silver Star Home Energy
Retrofit Program established under section 7.
(24)The term State means—
(A)a State;
(B)the District of Columbia;
(C)the Commonwealth of Puerto Rico;
(D)Guam;
(E)American Samoa;
(F)the Commonwealth of the Northern Mariana
Islands;
(G)the United States Virgin Islands;
and
(H)any other territory or possession of the
United States.
3.Home Star Retrofit Rebate Program
(a)The Secretary shall establish the Home Star
Retrofit Rebate Program.
(b)Federal Rebate Processing System
(1)Not later than 30 days after the date of
enactment of this Act, the Secretary, in consultation with the Secretary of the
Treasury and the Administrator, shall—
(A)establish a Federal Rebate Processing
System which shall serve as a database and information technology system that
will allow rebate aggregators to submit claims for reimbursement using standard
data protocols;
(B)establish a national retrofit website that
provides information on the Home Star Retrofit Rebate Program,
including—
(i)how to determine whether particular
efficiency measures are eligible for rebates; and
(ii)how to participate in the program;
and
(C)make available, on a designated website,
model forms for compliance with all applicable requirements of this Act, to be
submitted by—
(i)each qualified contractor on completion of
an eligible home energy retrofit; and
(ii)each quality assurance provider on
completion of field verification.
(2)In carrying out this section, the Secretary
shall consider the model forms developed by the National Home Performance
Council.
(c)Public information campaignNot later than 60 days after the date of
enactment of this Act, the Administrator shall develop and implement a public
education campaign that describes, at a minimum—
(1)the benefits of home energy
retrofits;
(2)the availability of rebates for—
(A)the installation of qualifying efficiency
measures; and
(B)whole home efficiency improvements;
and
(3)the requirements for qualified contractors
and accredited contractors.
4.
(a)Contractor qualifications for Silver Star
Home Energy Retrofit ProgramA contractor may perform retrofit work
under the Silver Star Home Energy Retrofit Program in a State for which rebates
are provided under this Act only if the contractor meets or provides—
(1)all applicable contractor licensing
requirements established by the State or, if none exist at the State level, the
Secretary;
(2)insurance coverage of at least $1,000,000
for general liability, and for such other purposes and in such other amounts as
required by the State;
(3)warranties to homeowners that completed
work will—
(A)be free of significant defects;
(B)be installed in accordance with the
specifications of the manufacturer; and
(C)perform properly for a period of at least 1
year after the date of completion of the work;
(4)an agreement to provide the owner of a
home, through a discount, the full economic value of all rebates received under
this Act with respect to the home; and
(5)an agreement to provide the homeowner,
before a contract is executed between the contractor and a homeowner covering
the eligible work, a notice of—
(A)the rebate amount the contractor intends to
apply for with respect to eligible work under this Act; and
(B)the means by which the rebate will be
passed through as a discount to the homeowner.
(b)Contractor qualifications for Gold Star
Home Energy Retrofit ProgramA contractor may perform retrofit work
under the Gold Star Home Energy Retrofit Program in a State for which rebates
are provided under this Act only if the contractor—
(1)meets the requirements for qualified
contractors under subsection (a); and
(2)is accredited—
(A)by the BPI; or
(B)under other standards approved by the
Secretary, in consultation with the Administrator.
5.
(a)The Secretary shall develop a network of
rebate aggregators that can facilitate the delivery of rebates to participating
contractors by—
(1)reviewing the proposed rebate application
for completeness and accuracy;
(2)reviewing measures for eligibility in
accordance with this Act;
(3)providing data to the Federal Data
Processing Center consistent with data protocols established by the Secretary;
and
(4)as soon as practicable but not later than
30 days after the date of receipt, distributing funds received from DOE to
contractors, vendors, or other persons who have been approved for rebates by a
quality assurance provider, if funding to contractors, vendors, or other
persons is required by the Secretary.
(b)To be eligible to apply to the Secretary
for approval as a rebate aggregator, an entity shall be—
(1)a Home Performance with Energy Star
partner;
(2)an entity administering a residential
energy efficiency retrofit program established or approved by a State;
(3)a Federal Power Marketing Administration,
an electric utility, or a natural gas utility that has—
(A)an approved residential energy efficiency
retrofit program; and
(B)an established quality assurance provider
network; or
(4)an entity that demonstrates to the
Secretary that the entity can perform the functions of an rebate aggregator,
without disrupting existing residential retrofits in the States that are
incorporating the Home Star Program, including demonstration of—
(A)corporate status or status as a State or
local government;
(B)the capability to provide electronic data
to the Federal Rebate Processing System;
(C)a financial system that is capable of
tracking the distribution of rebates to participating contractors; and
(D)coordination and cooperation by the entity
with the appropriate State energy office regarding participation in the
existing energy efficiency programs that will be delivering the Home Star
Program.
(c)Public utility commission efficiency
targetsThe Secretary
shall—
(1)develop guidelines for States to use to
allow utilities participating as rebate aggregators to count the energy savings
from the participation of the utilities toward State-level energy savings
targets; and
(2)work with States to assist in the adoption
of the guidelines for the purposes and duration of the Home Star Retrofit
Rebate Program.
6.Quality assurance providers
(a)An entity shall be considered a quality
assurance provider under this Act if the entity—
(1)is independent of the contractor;
(2)confirms the qualifications of contractors
or installers of home energy efficiency retrofits;
(3)confirms compliance with the requirements
of a certified workforce
; and
(4)performs field inspections and other
measures required to confirm the compliance of the retrofit work under the
Silver Star program, and the retrofit work and the simulated energy savings
under the Gold Star program, based on the requirements of this Act.
(b)An entity shall be considered a quality
assurance provider under this Act if the entity is qualified through—
(1)the International Code Council;
(2)the BPI;
(3)the RESNET;
(4)a State;
(5)a State-approved residential energy
efficiency retrofit program; or
(6)any other entity designated by the
Secretary, in consultation with the Administrator.
7.Silver Star Home Energy Retrofit
Program
(a)If the energy efficiency retrofit of a home
is carried out after the date of enactment of this Act in accordance with this
section, a rebate shall be awarded for the energy retrofit of a home for the
installation of energy savings measures—
(1)selected from the list of energy savings
measures described in subsection (b);
(2)installed in the home by a qualified
contractor not later than 1 year after the date of enactment of this
Act;
(3)carried out in compliance with this
section; and
(4)subject to the maximum amount limitations
established under subsection (d)(4).
(b)Subject to subsection (c), a rebate shall
be awarded under this section for the installation of the following energy
savings measures for a home energy retrofit that meet technical standards
established under this section:
(1)Whole house air-sealing measures, in
accordance with BPI standards or other procedures approved by the
Secretary.
(2)Attic insulation measures that—
(A)include sealing of air leakage between the
attic and the conditioned space, in accordance with BPI standards or the attic
portions of the DOE or EPA thermal bypass checklist or other procedures
approved by the Secretary;
(B)add at least R–19 insulation to existing
insulation;
(C)result in at least R–38 insulation in DOE
climate zones 1 through 4 and at least R–49 insulation in DOE climate zones 5
through 8, including existing insulation, within the limits of structural
capacity; and
(D)cover at least—
(i)100 percent of an accessible attic;
or
(ii)75 percent of a total conditioned space
floor area.
(3)Duct seal or replacement that—
(A)is installed in accordance with BPI
standards or other procedures approved by the Secretary; and
(B)in the case of duct replacement, replaces
at least 50 percent of a distribution system of the home.
(4)Wall insulation that—
(A)is installed in accordance with BPI
standards or other procedures approved by the Secretary;
(B)is to full-stud thickness; and
(C)covers at least 75 percent of the total
external wall area of the home.
(5)Crawl space insulation or basement wall and
rim joist insulation that is installed in accordance with BPI standards or
other procedures approved by the Secretary—
(A)covers at least 500 square feet of crawl
space or basement wall and adds at least—
(i)R–19 of cavity insulation or R–15 of
continuous insulation to existing crawl space insulation; or
(ii)R–13 of cavity insulation or R–10 of
continuous insulation to basement walls; and
(B)fully covers the rim joist with at least
R–10 of new continuous or R–13 of cavity insulation.
(6)Window replacement that replaces at least 8
exterior windows or skylights, or 75 percent of the exterior windows and
skylights in a home, whichever is less, with windows or skylights that—
(A)are certified by the National Fenestration
Rating Council; and
(B)comply with criteria applicable to windows
and skylights under section 25(c) of the Internal Revenue Code of 1986.
(7)Door replacement that replaces at least 1
exterior door with doors that comply with criteria applicable to doors under
section 25(c) of the Internal Revenue Code of 1986.
(8)(A)Heating system replacement with—
(i)a natural gas or propane furnace with an
AFUE rating of 92 or greater;
(ii)a natural gas or propane boiler with an
AFUE rating of 90 or greater;
(iii)an oil furnace with an AFUE rating of 86 or
greater and that uses an electrically commutated blower motor;
(iv)an oil boiler with an AFUE rating of 86 or
greater and that has temperature reset or thermal purge controls; or
(v)a wood or wood pellet furnace, boiler, or
stove, if—
(I)the new system—
- (aa)meets at least 75 percent of the heating
demands of the home;
- (bb)has a distribution system (such as ducts or
vents) that allows heat to reach all or most parts of the home; and
- (cc)in the case of a wood stove, replaces an
existing wood stove; and
(II)an independent test laboratory approved by
the Secretary certifies that the new system—
- (aa)has thermal efficiency (with a lower
heating value) of at least 75 percent for stoves and 80 percent for furnaces
and boilers; and
- (bb)has particulate emissions of less than 4.5
grams per hour for stoves.
(B)A
rebate may be provided under this section for the replacement of a furnace or
boiler described in clauses (i) through (iv) of subparagraph (A) only if the
new furnace or boiler is installed in accordance with ANSI/ACCA Standard 5
QI–2007.
(9)Air-conditioner or heat-pump replacement
with a new unit that—
(A)is installed in accordance with ANSI/ACCA
Standard 5 QI–2007; and
(B)meets or exceeds—
(i)in the case of an air-source conditioner,
SEER 16 and EER 13;
(ii)in the case of an air-source heat pump,
SEER 15, EER 12.5, and HSPF 8.5; and
(iii)in the case of a geothermal heat pump,
Energy Star tier 2 efficiency requirements.
(10)Replacement of or with—
(A)a natural gas or propane water heater with
a condensing storage water heater with an energy factor of 0.80 or more or a
thermal efficiency of 90 percent or more;
(B)a tankless natural gas or propane water
heater with an energy factor of at least .82;
(C)a natural gas or propane storage water
heater with an energy factor of at least .67;
(D)an indirect water heater with an insulated
storage tank that—
(i)has a storage capacity of at least 30
gallons and is insulated to at least R–16; and
(ii)is installed in conjunction with a
qualifying boiler described in paragraph (7);
(E)an electric water heater with an energy
factor of 2.0 or more;
(F)a water heater with a solar hot water
system that—
(i)is certified by the Solar Rating and
Certification Corporation; or
(ii)meets technical standards established by
the State of Hawaii; or
(G)a water heater installed in conjunction
with a qualifying geothermal heat pump described in paragraph (9) that provides
domestic water heating through the use of—
(i)year-round demand water heating capability;
or
(ii)a desuperheater.
(11)Storm windows that—
(A)are installed on a least 5 single-glazed
windows that do not have storm windows;
(B)are installed in a home listed on or
eligible for listing in the National Register of Historic Places; and
(C)comply with any procedures that the
Secretary may establish for storm windows (including installation).
(c)Measures described in paragraphs (1)
through (11) of subsection (b) shall include expenditures for labor and other
installation-related costs (including venting system modification and
condensate disposal) properly allocable to the onsite preparation, assembly, or
original installation of the component.
(d)
(1)Except as provided in paragraphs (2)
through (4), the amount of a rebate provided under this section shall be $1,000
per measure for the installation of energy savings measures described in
subsection (b).
(2)Except as provided in paragraph (4), the
amount of a rebate provided to the owner of a home or designee under this
section shall be $1,500 per measure for—
(A)attic insulation and air sealing described
in subsection (b)(2);
(B)wall insulation described in subsection
(b)(4);
(C)windows or skylights described in
subsection (b)(6);
(D)a heating system described in subsection
(b)(8); and
(E)an air-conditioner or heat-pump replacement
described in subsection (b)(9).
(3)Except as provided in paragraph (4), the
amount of a rebate provided under this section shall be—
(A)$125 per door for the installation of up to
a maximum of 2 Energy Star doors described in subsection (b)(7) for each
home;
(B)$250 for a maximum of 1 natural gas or
propane storage water heater described in subsection (b)(10)(C) for each
home;
(C)$250 for rim joist insulation described in
subsection (b)(5)(B);
(D)$50 for each storm window described in
subsection (b)(11); and
(E)$500 for a desuperheater described in
subsection (b)(10)(G)(ii).
(4)The total amount of a
rebate provided to the owner of a home or designee under this section shall not
exceed the lower of—
(A)$3,000;
(B)the sum of the amounts per measure
specified in paragraphs (1) through (3);
(C)50 percent of the total cost of the
installed measures; or
(D)the reduction in the price paid by the
owner of the home, relative to the price of the installed measures in the
absence of the Silver Star Home Energy Retrofit Program.
(e)Insulation products purchased without
installation servicesA
rebate shall be awarded under this section for attic, wall, or crawl space
insulation or air sealing product if—
(1)the product—
(A)qualifies for a credit under section 25C of
the Internal Revenue Code of 1986 but is not the subject of a claim for the
credit;
(B)is purchased by a homeowner for
installation by the homeowner in a home identified by the address of the
homeowner;
(C)is identified and attributed to a specific
home in a submission by the vendor to a rebate aggregator; and
(D)is not part of—
(i)an energy savings measure described in
paragraphs (1) through (5) of subsection (b); and
(ii)a retrofit for which a rebate is provided
under the Gold Star Home Energy Retrofit Program; or
(2)educational material on proper installation
of the product is provided to the homeowner, including material on air sealing
while insulating.
(f)Qualification for rebate under Silver Star
Home Energy Retrofit ProgramOn submission of a claim by a rebate
aggregator to the system established under section 5, the Secretary shall
provide reimbursement to the rebate aggregator for reduced-cost
energy-efficiency measures installed in a home, if—
(1)the measures undertaken for the retrofit
are—
(A)eligible measures described on the list
established under subsection (b);
(B)installed properly in accordance with
applicable technical specifications; and
(C)installed by a qualified contractor;
(2)the amount of the rebate does not exceed
the maximum amount described in subsection (d)(4);
(3)not less than—
(A)20 percent of the retrofits performed by
each qualified contractor under this section are randomly subject to a
third-party field verification of all work associated with the retrofit by a
quality assurance provider; or
(B)in the case of qualified contractor that
uses a certified workforce, 10 percent of the retrofits performed under this
section are randomly subject to a third-party field verification of all work
associated with the retrofit by a quality assurance provider; and
(4)(A)the installed measures will be brought into
compliance with the specifications and quality standards for the Home Star
Retrofit Rebate Program, by the installing qualified contractor, at no
additional cost to the homeowner, not later than 14 days after the date of
notification of a defect, if a field verification by a quality assurance
provider finds that corrective work is needed;
(B)a
subsequent quality assurance visit is conducted to evaluate the remedy not
later than 7 days after notification by the contractor that the defect has been
corrected; and
(C)notification of disposition of the visit
occurs not later than 7 days after the date of that visit.
(g)
(1)During the 1-year warranty period, a
homeowner may make a complaint under the quality assurance program that
compliance with the quality assurance requirements of this section has not been
achieved.
(2)
(A)The quality assurance program shall provide
that, on receiving a complaint under paragraph (1), an independent quality
assurance provider shall conduct field verification on the retrofit work
performed by the contractor.
(B)A verification under this paragraph shall
be—
(i)in addition to verifications conducted
under subsection (f)(3); and
(ii)corrected in accordance with subsection
(f)(4).
(h)
(1)On making payment for a submission under
this section, the Secretary shall review rebate requests to determine whether
program requirements were met in all respects.
(2)On a determination of the Secretary under
paragraph (1) that a payment was made incorrectly to a party, the Secretary
may—
(A)recoup the amount of the incorrect payment;
or
(B)withhold the amount of the incorrect
payment from the next payment made to the party pursuant to a subsequent
request.
8.Gold Star Home Energy Retrofit
Program
(a)If the energy efficiency retrofit of a home
is carried out after the date of enactment of this Act by an accredited
contractor in accordance with this section, a rebate shall be awarded for
retrofits that achieve whole home energy savings.
(b)Subject to subsection (e), the amount of a
rebate provided to the owner of a home or a designee of the owner under this
section shall be—
(1)$3,000 for a 20-percent reduction in whole
home energy consumption; and
(2)an additional $1,000 for each additional
5-percent reduction up to the lower of—
(A)$8,000; or
(B)50 percent of the total retrofit cost
(including the cost of audit and diagnostic procedures).
(c)
(1)Reductions in whole home energy consumption
under this section shall be determined by a comparison of the simulated energy
consumption of the home before and after the retrofit of the home.
(2)The percent improvement in energy
consumption under this section shall be documented through—
(A)(i)the use of a whole home simulation software
program that has been approved as a commercial alternative under the
Weatherization Assistance Program for Low-Income Persons established under part
A of title IV of the Energy Conservation and Production Act (42 U.S.C. 6861 et
seq.); or
(ii)a equivalent performance test established
by the Secretary, in consultation with the Administrator; or
(B)(i)the use of a whole home simulation software
program that has been approved under RESNET Publication No. 06–001 (or a
successor publication approved by the Secretary);
(ii)an equivalent performance test established
by the Secretary; or
(iii)a State-certified equivalent rating
network, as specified by IRS Notice 2008–35; or
(iv)a HERS rating system required by State
law.
(3)The Secretary—
(A)shall continuously monitor the software
packages used for determining rebates under this section; and
(B)may disallow the use of software programs
that improperly assess energy savings.
(4)The Secretary may—
(A)establish simulation tool assumptions for
the establishment of the pre-retrofit energy use;
(B)require compliance with software
performance tests covering—
(i)mechanical system performance;
(ii)duct distribution system efficiency;
(iii)hot water performance; or
(iv)other measures; and
(C)require the simulation of pre-retrofit
energy usage to be bounded by metered pre-retrofit energy usage.
(5)The simulation tool shall have the ability
at a minimum to assess the savings associated with all the measures for which
incentives are specifically provided under the Silver Star Home Energy Retrofit
Program.
(d)Qualification for rebate under Gold Star
Home Energy Retrofit ProgramOn submission of a claim by a rebate
aggregator to the system established under section 5, the Secretary shall
provide reimbursement to the rebate aggregator for reduced-cost whole-home
retrofits, if—
(1)the retrofit is performed by an accredited
contractor;
(2)the amount of the reimbursement is not more
than the amount described in subsection (b);
(3)documentation described in subsection (c)
is transmitted with the claim;
(4)a home receiving a whole-home retrofit is
subject to random third-party field verification by a quality assurance
provider in accordance with subsection (e); and
(5)(A)the installed measures will be brought into
compliance with the specifications and quality standards for the Home Star
Retrofit Rebate Program, by the installing qualified contractor, at no
additional cost to the homeowner, not later than 14 days after the date of
notification of a defect if a field verification by a quality assurance
provider finds that corrective work is needed;
(B)a
subsequent quality assurance visit is conducted to evaluate the remedy not
later than 7 days after notification by the contractor that the defect has been
corrected; and
(C)notification of disposition of the visit
occurs not later than 7 days after the date of that visit.
(e)
(1)Subject to subparagraph (2), all work
installed in a home receiving a whole-home retrofit by an accredited contractor
under this section shall be subject to random third-party field verification by
a quality assurance provider at a rate of—
(A)15 percent; or
(B)in the case of work performed by an
accredited contractor using a certified workforce, 10 percent.
(2)Verification not requiredA home shall not be subject to random
third-party field verification under this section if—
(A)a post-retrofit home energy rating is
conducted by an eligible certifier in accordance with—
(i)RESNET Publication No. 06–001 (or a
successor publication approved by the Secretary);
(ii)a State-certified equivalent rating
network, as specified in IRS Notice 2008–35; or
(iii)a HERS rating system required by State
law;
(B)the eligible certifier is independent of
the qualified contractor or accredited contractor in accordance with RESNET
Publication No. 06–001 (or a successor publication approved by the Secretary);
and
(C)the rating includes field verification of
measures.
(f)
(1)A homeowner may make a complaint under the
quality assurance program during the 1-year warranty period that compliance
with the quality assurance requirements of this section has not been
achieved.
(2)
(A)The quality assurance program shall provide
that, on receiving a complaint under paragraph (1), an independent quality
assurance provider shall conduct field verification on the retrofit work
performed by the contractor.
(B)A verification under this paragraph shall
be—
(i)in addition to verifications conducted
under subsection (e)(1); and
(ii)corrected in accordance with subsection
(e).
(g)
(1)On making payment for a submission under
this section, the Secretary shall review rebate requests to determine whether
program requirements were met in all respects.
(2)On a determination of the Secretary under
paragraph (1) that a payment was made incorrectly to a party, the Secretary
may—
(A)recoup the amount of the incorrect payment;
or
(B)withhold the amount of the incorrect
payment from the next payment made to the party pursuant to a subsequent
request.
9.Grants to States and Indian tribes
(a)A State or Indian tribe that receives a
grant under subsection (d) shall use the grant for—
(1)administrative costs;
(2)oversight of quality assurance
plans;
(3)development of ongoing quality assurance
framework;
(4)establishment and delivery of financing
pilots in accordance with this Act;
(5)coordination with existing residential
retrofit programs and infrastructure development to assist deployment of the
Home Star program; and
(6)the costs of carrying out the
responsibilities of the State or Indian tribe under the Silver Star Home Energy
Retrofit Program and the Gold Star Home Energy Retrofit Program.
(b)Not later than 30 days
after the date of enactment of this Act, the Secretary shall make the initial
grants available under this section.
(c)The Secretary shall reserve an appropriate
amount of funding to be made available to carry out this section for each
fiscal year to make grants available to Indian tribes under this
section.
(d)From the amounts made available to carry
out this section for each fiscal year remaining after the reservation required
under subsection (c), the Secretary shall make grants available to States in
accordance with section 16.
(e)Quality assurance programs
(1)A State or Indian tribe may use a grant
made under this section to carry out a quality assurance program that
is—
(A)operated as part of a State energy
conservation plan established under part D of title III of the Energy Policy
and Conservation Act (42 U.S.C. 6321 et seq.);
(B)managed by the office or the designee of
the office that is—
(i)responsible for the development of the plan
under section 362 of that Act (42 U.S.C. 6322); and
(ii)to the maximum extent practicable,
conducting an existing energy efficiency program; and
(C)in the case of a grant made to an Indian
tribe, managed by an entity designated by the Indian tribe to carry out a
quality assurance program or a national quality assurance program
manager.
(2)If the Secretary determines that a State or
Indian tribe has not provided or cannot provide adequate oversight over a
quality assurance program to ensure compliance with this Act, the Secretary
may—
(A)withhold further quality assurance funds
from the State or Indian tribe; and
(B)require that quality assurance providers
operating in the State or by the Indian tribe be overseen by a national quality
assurance program manager selected by the Secretary.
(f)A State or Indian tribe that receives a
grant under this section may implement a quality assurance program through the
State, the Indian tribe, or a third party designated by the State or Indian
tribe, including—
(1)an energy service company;
(2)an electric utility;
(3)a natural gas utility;
(4)a third-party administrator designated by
the State or Indian tribe; or
(5)a unit of local government.
(g)Public-Private partnershipsA State or Indian tribe that receives a
grant under this section are encouraged to form partnerships with utilities,
energy service companies, and other entities—
(1)to assist in marketing a program;
(2)to facilitate consumer financing;
(3)to assist in implementation of the Silver
Star Home Energy Retrofit Program and the Gold Star Home Energy Retrofit
Program, including installation of qualified energy retrofit measures;
and
(4)to assist in implementing quality assurance
programs.
(h)Coordination of rebate and existing
State-Sponsored programs
(1)A State or Indian tribe shall, to the
maximum extent practicable, prevent duplication through coordination of a
program authorized under this Act with—
(A)the Energy Star appliance rebates program
authorized under the American Recovery and Reinvestment Act of 2009 (Public Law
111–5; 123 Stat. 115); and
(B)comparable programs planned or operated by
States, political subdivisions, electric and natural gas utilities, Federal
power marketing administrations, and Indian tribes.
(2)In carrying out this subsection, a State or
Indian tribe shall—
(A)give priority to—
(i)comprehensive retrofit programs in
existence on the date of enactment of this Act, including programs under the
supervision of State utility regulators; and
(ii)using Home Star funds made available under
this Act to enhance and extend existing programs; and
(B)seek to enhance and extend existing
programs by coordinating with administrators of the programs.
10.Quality assurance framework
(a)Not later than 180 days after the date that
the Secretary initially provides funds to a State under this Act, the State
shall submit to the Secretary a plan to implement a quality assurance program
that covers all federally assisted residential efficiency retrofit work
administered, supervised, or sponsored by the State.
(b)The State shall—
(1)develop a quality assurance framework in
consultation with industry stakeholders, including representatives of
efficiency program managers, contractors, and environmental, energy efficiency,
and labor organizations; and
(2)implement the quality assurance framework
not later than 1 year after the date of enactment of this Act.
(c)The quality assurance framework established
under this section shall include—
(1)a requirement that contractors be
prequalified in order to be authorized to perform federally assisted
residential retrofit work;
(2)maintenance of a list of prequalified
contractors authorized to perform federally assisted residential retrofit work;
and
(3)minimum standards for prequalified
contractors that include—
(A)accreditation;
(B)legal compliance procedures;
(C)proper classification of employees;
(D)use of a certified workforce; and
(E)maintenance of records needed to verify
compliance;
(4)targets and realistic plans for—
(A)the recruitment of small minority or
women-owned business enterprises; and
(B)the employment of graduates of training
programs that primarily serve low-income populations with a median income that
is below 200 percent of the poverty line (as defined in section 673(2) of the
Community Services Block Grant Act (42 U.S.C. 9902(2), including any revision
required by that section)) by participating contractors; and
(5)a plan to link workforce training for
energy efficiency retrofits with training for the broader range of skills and
occupations in construction or emerging clean energy industries.
(d)If the Secretary determines that a State
has not taken the steps required under this section, the Secretary shall
provide to the State a period of at least 90 days to comply before suspending
the participation of the State in the program.
11.
(a)Not later than 1 year after the date of
enactment of this Act, the Secretary shall submit to the Committee on Energy
and Natural Resources of the Senate and the Committee on Energy and Commerce of
the House of Representatives a report on the use of funds under this
Act.
(b)The report shall include a description
of—
(1)the energy savings produced as a result of
this Act;
(2)the direct and indirect employment created
as a result of the programs supported by the funds provided under this
Act;
(3)the specific entities implementing the
energy efficiency programs;
(4)the beneficiaries who received the
efficiency improvements;
(5)the manner in which funds provided under
this Act were used;
(6)the sources (such as mortgage lenders,
utility companies, and local governments) and types of financing used by the
beneficiaries to finance the retrofit expenses that were not covered by grants
provided under this Act;
(7)the results of verification requirements;
and
(8)any other information the Secretary
considers appropriate.
(c)If the Secretary determines that a rebate
aggregator, State, or Indian tribe has not provided the information required
under this section, the Secretary shall provide to the rebate aggregator,
State, or Indian tribe a period of at least 90 days to provide any necessary
information, subject to penalties imposed by the Secretary for entities other
than States and Indian tribes, which may include withholding of funds or
reduction of future grant amounts.
12.
(a)Subject to section 16(b), not later than 30
days after the date of enactment of this Act, the Secretary shall provide such
administrative and technical support to rebate aggregators, States, and Indian
tribes as is necessary to carry out the functions designated to States under
this Act.
(b)Notwithstanding the provisions of title 5,
United States Code, governing appointments in the competitive service and
General Schedule classifications and pay rates, the Secretary may appoint such
professional and administrative personnel as the Secretary considers necessary
to carry out this Act.
(c)The rate of pay for a person appointed
under subsection (a) shall not exceed the maximum rate payable for GS–15 of the
General Schedule under chapter 53 of title 5, United States Code.
(d)Notwithstanding section 303 of the Federal
Property and Administrative Services Act of 1949 (41 U.S.C. 253), the Secretary
may retain such consultants on a noncompetitive basis as the Secretary
considers necessary to carry out this Act.
(e)In carrying out this Act, the Secretary may
waive all or part of any provision of the Competition in Contracting Act of
1984 (Public Law 98–369; 98 Stat. 1175), an amendment made by that Act, or the
Federal Acquisition Regulation on a determination that circumstances make
compliance with the provisions contrary to the public interest.
(f)
(1)Notwithstanding section 553 of title 5,
United States Code, the Secretary may issue regulations that the Secretary, in
the sole discretion of the Secretary, determines necessary to carry out the
Home Star Retrofit Rebate Program.
(2)If the Secretary determines that
regulations described in paragraph (1) are necessary, the regulations shall be
issued not later than 60 days after the date of the enactment of this
Act.
(g)Chapter 35 of title 44, United States Code,
shall not apply to any information collection requirement necessary for the
implementation of the Home Star Retrofit Rebate Program.
(h)Adjustment of rebate amountsEffective beginning on the date that is 180
days after the date of enactment of this Act, the Secretary may adjust the
rebate amounts provided in this section based on—
(1)the use of the Silver Star Home Energy
Retrofit Program and the Gold Star Home Energy Retrofit Program; and
(2)other program data.
13.
(a)For purposes of the Internal Revenue Code
of 1986, rebates received for eligible measures under this Act—
(1)shall not be considered taxable income to a
homeowner;
(2)shall prohibit the consumer from applying
for a tax credit allowed under section 25C or 25D of that Code for the same
eligible measures performed in the home of the homeowner; and
(3)shall be considered a credit allowed under
section 25C or 25D of that Code for purposes of any limitation on the amount of
the credit under that section.
(b)
(1)A participating contractor shall provide
notice to a homeowner of the provisions of subsection (a) before eligible work
is performed in the home of the homeowner.
(2)A homeowner shall be notified of the
provisions of subsection (a) in the appropriate rebate form developed by the
Secretary, in consultation with the Secretary of the Treasury.
(3)Availability of rebate formA participating contractor shall obtain the
rebate form on a designated website in accordance with section
3(b)(1)(C).
14.
(a)It shall be unlawful for any person to
violate this title (including any regulation issued under this Act), other than
a violation as the result of a clerical error.
(b)Any person who commits a violation of this
Act shall be liable to the United States for a civil penalty in an amount that
is not more than the higher of—
(1)$15,000 for each violation; or
(2)3 times the value of any associated rebate
under this Act.
(c)The Secretary may—
(1)assess and compromise a penalty imposed
under subsection (b); and
(2)require from any entity the records and
inspections necessary to enforce this Act.
(d)In addition to any civil penalty, any
person who commits a fraudulent violation of this Act shall be subject to
criminal prosecution.
15.Home Star Energy Efficiency Loan
Program
(a)In this section:
(1)The term eligible participant
means a homeowner who receives financial assistance from a qualified financing
entity to carry out energy efficiency or renewable energy improvements to an
existing home or other residential building of the homeowner in accordance with
the Gold Star Home Energy Retrofit Program or the Silver Star Home Energy
Retrofit Program.
(2)The term program means the
Home Star Energy Efficiency Loan Program established under subsection
(b).
(3)Qualified financing entityThe term qualified financing
entity means a State, political subdivision of a State, tribal
government, electric utility, natural gas utility, nonprofit or community-based
organization, energy service company, retailer, or any other qualified entity
that—
(A)meets the eligibility requirements of this
section; and
(B)is designated by the Governor of a State in
accordance with subsection (e).
(4)Qualified loan program
mechanismThe term
qualified loan program mechanism means a loan program that
is—
(A)administered by a qualified financing
entity; and
(B)principally funded—
(i)by funds provided by or overseen by a
State; or
(ii)through the energy loan program of the
Federal National Mortgage Association.
(b)The Secretary shall establish a Home Star
Energy Efficiency Loan Program under which the Secretary shall make funds
available to States to support financial assistance provided by qualified
financing entities for making, to existing homes, energy efficiency
improvements that qualify under the Gold Star Home Energy Retrofit Program or
the Silver Star Home Energy Retrofit Program.
(c)Eligibility of qualified financing
entitiesTo be eligible to
participate in the program, a qualified financing entity shall—
(1)offer a financing product under which
eligible participants may pay over time for the cost to the eligible
participant (after all applicable Federal, State, local, and other rebates or
incentives are applied) of making improvements described in subsection
(b);
(2)require all financed improvements to be
performed by contractors in a manner that meets minimum standards that are at
least as stringent as the standards provided under sections 7 and 8; and
(3)establish standard underwriting criteria to
determine the eligibility of program applicants, which criteria shall be
consistent with—
(A)with respect to unsecured consumer loan
programs, standard underwriting criteria used under the energy loan program of
the Federal National Mortgage Association; or
(B)with respect to secured loans or other
forms of financial assistance, commercially recognized best practices
applicable to the form of financial assistance being provided (as determined by
the designated entity administering the program in the State).
(d)In making funds available to States for
each fiscal year under this section, the Secretary shall use the formula used
to allocate funds to States to carry out State energy conservation plans
established under part D of title III of the Energy Policy and Conservation Act
(42 U.S.C. 6321 et seq.).
(e)Qualified financing entitiesBefore making funds available to a State
under this section, the Secretary shall require the Governor of the State to
provide to the Secretary a letter of assurance that the State—
(1)has 1 or more qualified financing entities
that meet the requirements of this section;
(2)has established a qualified loan program
mechanism that—
(A)includes a methodology to ensure credible
energy savings or renewable energy generation;
(B)incorporates an effective repayment
mechanism, which may include—
(i)on-utility-bill repayment;
(ii)tax assessment or other form of property
assessment financing;
(iii)municipal service charges;
(iv)energy or energy efficiency services
contracts;
(v)energy efficiency power purchase
agreements;
(vi)unsecured loans applying the underwriting
requirements of the energy loan program of the Federal National Mortgage
Association; or
(vii)alternative contractual repayment
mechanisms that have been demonstrated to have appropriate risk mitigation
features; and
(C)will provide, in a timely manner, all
information regarding the administration of the program as the Secretary may
require to permit the Secretary to meet the reporting requirements of
subsection (h).
(f)Funds made available to States under the
program may be used to support financing products offered by qualified
financing entities to eligible participants for eligible energy efficiency
work, by providing—
(1)interest rate reductions;
(2)loan loss reserves or other forms of credit
enhancement;
(3)revolving loan funds from which qualified
financing entities may offer direct loans; or
(4)other debt instruments or financial
products necessary—
(A)to maximize leverage provided through
available funds; and
(B)to support widespread deployment of energy
efficiency finance programs.
(g)In the case of a revolving loan fund
established by a State described in subsection (f)(3), a qualified financing
entity may use funds repaid by eligible participants under the program to
provide financial assistance for additional eligible participants to make
improvements described in subsection (b) in a manner that is consistent with
this section or other such criteria as are prescribed by the State.
(h)Not later than 1 year after the date of
enactment of this Act, the Secretary shall submit to Congress a program
evaluation that describes—
(1)how many eligible participants have
participated in the program;
(2)how many jobs have been created through the
program, directly and indirectly;
(3)what steps could be taken to promote
further deployment of energy efficiency and renewable energy retrofits;
(4)the quantity of verifiable energy savings,
homeowner energy bill savings, and other benefits of the program; and
(5)the performance of the programs carried out
by qualified financing entities under this section, including information on
the rate of default and repayment.
(i)Section 1705(a) of
the Energy Policy Act of 2005 (42 U.S.C. 16516(a)) is amended by adding at the
end the following:
(4)Energy efficiency projects, including
projects to retrofit residential, commercial, and industrial buildings,
facilities, and
equipment.
.
16.
(a)Authorization of appropriations
(1)Subject to subsection (j), there is
authorized to be appropriated to carry out this title $6,000,000,000 for the
period of each of fiscal years 2010 through 2012 to remain available until
expended.
(2)Funds provided under this section shall
supplement and not supplant any Federal and State funding provided to carry out
energy efficiency programs in existence on the date of enactment of this
Act.
(b)
(1)Of the amount provided under subsection
(a), $380,000,000 or not more than 6 percent, whichever is less, shall be used
to carry out section 9.
(2)Distribution to State energy
offices
(A)Not later than 30 days after the date of
enactment of this Act, the Secretary shall—
(i)provide to State energy offices 25 percent
of the funds described in paragraph (1); and
(ii)determine a formula to provide the balance
of funds to State energy offices through a performance-based system.
(B)
(i)Funds described in subparagraph (A)(i)
shall be made available in accordance with the allocation formula for State
energy conservation plans established under part D of title III of the Energy
Policy and Conservation Act (42 U.S.C. 6321 et seq.).
(ii)The balance of the funds described in
subparagraph (A)(ii) shall be made available in accordance with the
performance-based system described in subparagraph (A)(ii).
(c)
(1)Of the amount provided under subsection
(a), not more than 5 percent shall be used to carry out the quality assurance
provisions of this Act.
(2)Funds provided under this subsection shall
be overseen by—
(A)State energy offices described in
subsection (b)(2); or
(B)other entities determined by the Secretary
to be eligible to carry out quality assurance functions under this Act.
(3)Distribution to quality assurance providers
or rebate aggregatorsThe
Secretary shall use funds provided under this subsection to compensate quality
assurance providers, or rebate aggregators, for services under the Silver Star
Home Energy Retrofit Program or the Gold Star Home Energy Retrofit Program
through the Federal Rebate Processing Center based on the services provided to
contractors under a quality assurance program and rebate aggregation.
(4)The amount of incentives provided to
quality assurance providers or rebate aggregators shall be—
(A)(i)in the case of the Silver Star Home Energy
Retrofit Program—
(I)$25 per rebate review and submission
provided under the program; and
(II)$150 for each field inspection conducted
under the program; and
(ii)in the case of the Gold Star Home Energy
Retrofit Program—
(I)$35 for each rebate review and submission
provided under the program; and
(II)$300 for each field inspection conducted
under the program; or
(B)such other amounts as the Secretary
considers necessary to carry out the quality assurance provisions of this
Act.
(d)Tracking of rebates and
expendituresOf the amount
provided under subsection (a), not more than $150,000,000 shall be used for
costs associated with database systems to track rebates and expenditures under
this Act and related administrative costs incurred by the Secretary.
(e)Public education and
coordinationOf the amount
provided under subsection (a), not more than $10,000,000 shall be used for
costs associated with public education and coordination with the Federal Energy
Star program incurred by the Administrator.
(f)Of the amount provided under subsection
(a), the Secretary shall reserve not more than 3 percent to make grants
available to Indian tribes under this section.
(g)Silver Star Home Energy Retrofit
ProgramIn the case of the
Silver Star Home Energy Retrofit Program, of the amount provided under
subsection (a) after funds are provided in accordance with subsections (b)
through (e), $3,417,000,000 for the 1-year period beginning on the date of
enactment of this Act (less any amounts required under subsection (f)) shall be
used by the Secretary to provide rebates and incentives authorized under the
Silver Star Home Energy Retrofit Program.
(h)Gold Star Home Energy Retrofit
ProgramIn the case of the
Gold Star Home Energy Retrofit Program, of the amount provided under subsection
(a) after funds are provided in accordance with subsections (b) through (e),
$1,683,000 for the 2-year period beginning on the date of enactment of this Act
(less any amounts required under subsection (f)) shall be used by the Secretary
to provide rebates and incentives authorized under the Gold Star Home Energy
Retrofit Program.
(i)Program review and backstop
funding
(1)Not later than 180 days after the date of
enactment of this Act, the Secretary shall perform a State-by-State analysis
and review the distribution of Home Star retrofit rebates under this
Act.
(2)The Secretary may allocate technical
assistance funding to assist States that have not sufficiently benefitted from
the Home Star Retrofit Rebate Program.
(j)Return of undisbursed funds
(1)Silver Star Home Energy Retrofit
ProgramIf the Secretary has
not disbursed all the funds available for rebates under the Silver Star Home
Energy Retrofit Program by the date that is 1 year after the date of enactment
of this Act, any undisbursed funds shall be made available to the Gold Star
Home Energy Retrofit Program.
(2)Gold Star Home Energy Retrofit
ProgramIf the Secretary has
not disbursed all the funds available for rebates under the Gold Star Home
Energy Retrofit Program by the date that is 2 years after the date of enactment
of this Act, any undisbursed funds shall be returned to the Treasury.
(k)Of the amounts allocated to the States
under subsection (b), not less than $200,000,000 shall be used to carry out the
financing provisions of this Act in accordance with section 15.