[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 3780 Introduced in Senate (IS)]

111th CONGRESS
  2d Session
                                S. 3780

    To establish a building efficiency retrofit loan credit support 
     program, a State building revolving fund grant program, and a 
              commercial and large building grant program.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 14, 2010

 Mrs. Shaheen (for herself and Ms. Landrieu) introduced the following 
bill; which was read twice and referred to the Committee on Energy and 
                           Natural Resources

_______________________________________________________________________

                                 A BILL


 
    To establish a building efficiency retrofit loan credit support 
     program, a State building revolving fund grant program, and a 
              commercial and large building grant program.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Recovery Through Building Renovation 
Act of 2010''.

SEC. 2. BUILDING EFFICIENCY RETROFIT LOAN CREDIT SUPPORT PROGRAM.

    Title XVII of the Energy Policy Act of 2005 (42 U.S.C. 16511 et 
seq.) is amended by adding at the end the following:

``SEC. 1706. BUILDING RETROFIT FINANCING PROGRAM.

    ``(a) Definitions.--In this section:
            ``(1) Credit support.--The term `credit support' means a 
        guarantee or commitment to issue a guarantee or other forms of 
        credit enhancement to ameliorate risks for efficiency 
        obligations.
            ``(2) Efficiency obligation.--The term `efficiency 
        obligation' means a debt or repayment obligation incurred in 
        connection with financing a project, or a portfolio of such 
        debt or payment obligations.
            ``(3) Project.--The term `project' means the installation 
        of efficiency or renewable energy measures in a building (or in 
        multiple buildings on a given property) that are expected to 
        increase the energy efficiency of the building (including 
        fixtures) in accordance with criteria established by the 
        Secretary.
    ``(b) Eligible Projects.--
            ``(1) In general.--Notwithstanding sections 1703 and 1705, 
        the Secretary may provide credit support under this section, in 
        accordance with section 1702.
            ``(2) Inclusions.--Buildings eligible for credit support 
        under this section include commercial, industrial, municipal, 
        university, school, and hospital facilities that satisfy 
        criteria established by the Secretary.
    ``(c) Guidelines.--
            ``(1) In general.--Not later than 180 days after the date 
        of enactment of this section, the Secretary shall establish 
        guidelines for credit support provided under this section.
            ``(2) Requirements.--The guidelines established by the 
        Secretary under this subsection shall include--
                    ``(A) standards for assessing the energy savings 
                that could reasonably be expected to result from a 
                project;
                    ``(B) examples of financing mechanisms (and 
                portfolios of such financing mechanisms) that qualify 
                as efficiency obligations;
                    ``(C) the threshold levels of energy savings that a 
                project, at the time of issuance of credit support, 
                shall be reasonably expected to achieve to be eligible 
                for credit support;
                    ``(D) the eligibility criteria the Secretary 
                determines to be necessary for making credit support 
                available under this section; and
                    ``(E) any lien priority requirements that the 
                Secretary determines to be necessary.
            ``(3) Efficiency obligations.--The financing mechanisms 
        qualified by the Secretary under paragraph (2)(B) may include--
                    ``(A) loans, including loans made by the Federal 
                Financing Bank;
                    ``(B) power purchase agreements, including energy 
                efficiency power purchase agreements;
                    ``(C) energy services agreements, including energy 
                performance contracts;
                    ``(D) property assessed clean energy bonds and 
                other tax assessment-based financing mechanisms;
                    ``(E) aggregate on-meter agreements that finance 
                retrofit projects; and
                    ``(F) any other efficiency obligations the 
                Secretary determines to be appropriate.
            ``(4) Priorities.--In carrying out this section, the 
        Secretary shall prioritize--
                    ``(A) the maximization of energy savings with the 
                available credit support funding;
                    ``(B) the establishment of a clear application and 
                approval process that allows private building owners, 
                lenders, and investors to reasonably expect to receive 
                credit support for projects that conform to guidelines; 
                and
                    ``(C) the distribution of projects receiving credit 
                support under this section across States or 
                geographical regions of the United States.
            ``(5) Minimum energy savings requirement.--
                    ``(A) In general.--In carrying out this section, 
                the Secretary shall establish an initial minimum energy 
                savings requirement for eligible projects that, to the 
                maximum extent practicable, results in the greatest 
                amount of energy savings on a per project basis.
                    ``(B) Adjustments.--
                            ``(i) In general.--Not less than once each 
                        year, the Secretary shall adjust the minimum 
                        energy savings requirement described in 
                        subparagraph (A) and any other credit support 
                        terms the Secretary determines to be necessary, 
                        including the maximum percentage of the 
                        efficiency obligation that may be guaranteed, 
                        taking into account market conditions and the 
                        available funding.
                            ``(ii) Advanced notice.--If the Secretary 
                        adjusts the energy savings requirement, the 
                        Secretary shall provide at least 90 days 
                        advanced public notice.
    ``(d) Limitation.--Notwithstanding section 1702(c), the Secretary 
shall not issue credit support under this section in an amount that 
exceeds--
            ``(1) 90 percent of the principal amount of the efficiency 
        obligation that is the subject of the credit support; or
            ``(2) $10,000,000 for any single project.
    ``(e) Aggregation of Projects.--To the extent provided in the 
guidelines developed in accordance with subsection (c), the Secretary 
may issue credit support on a portfolio, or pool of projects, that are 
not required to be geographically contiguous, if each efficiency 
obligation in the pool fulfills the requirements described in this 
section.
    ``(f) Application.--
            ``(1) In general.--To be eligible to receive credit support 
        under this section, the applicant shall submit to the Secretary 
        an application at such time, in such manner, and containing 
        such information as the Secretary determines to be necessary.
            ``(2) Contents.--An application submitted under this 
        section shall include assurances by the applicant that--
                    ``(A) each contractor carrying out the project--
                            ``(i) meets minimum experience level 
                        criteria, including local retrofit experience, 
                        as determined by the Secretary; and
                            ``(ii) beginning on the date on which 
                        credit support is issued, will comply with 
                        subchapter IV of chapter 31 of title 40, United 
                        States Code (commonly known as the ``Davis-
                        Bacon Act'');
                    ``(B) the project is reasonably expected to achieve 
                energy savings, as set forth in the application using 
                any methodology that meets the standards described in 
                the program guidelines;
                    ``(C) the project meets any technical criteria 
                described in the program guidelines;
                    ``(D) the recipient of the credit support and the 
                parties to the efficiency obligation will provide the 
                Secretary with--
                            ``(i) any information the Secretary 
                        requests to assess the energy savings that 
                        result from the project, including historical 
                        energy usage data and detailed descriptions of 
                        the building work, as described in the program 
                        guidelines; and
                            ``(ii) permission to access information 
                        relating to building operations and usage for 
                        the period described in the program guidelines; 
                        and
                    ``(E) any other assurances that the Secretary 
                determines to be necessary.
            ``(3) Determination.--Not later than 90 days after 
        receiving an application, the Secretary shall make a final 
        determination on the application, which may include requests 
        for additional information.
    ``(g) Fees.--
            ``(1) In general.--In addition to the fees required by 
        section 1702(h)(1), the Secretary may charge reasonable fees 
        for credit support provided under this section.
            ``(2) Availability.--Fees collected under this section 
        shall be subject to section 1702(h)(2).
    ``(h) Underwriting.--The Secretary may delegate the underwriting 
activities under this section to 1 or more entities that the Secretary 
determines to be qualified.
    ``(i) Report.--Not later than 1 year after commencement of the 
program, the Secretary shall submit to the appropriate committees of 
Congress a report that describes in reasonable detail--
            ``(1) the manner in which this section is being carried 
        out;
            ``(2) the number and type of projects supported;
            ``(3) the types of funding mechanisms used to provide 
        credit support to projects;
            ``(4) the energy savings expected to result from projects 
        supported by this section;
            ``(5) any tracking efforts the Secretary is using to 
        calculate the actual energy savings produced by the projects; 
        and
            ``(6) any plans to improve the tracking efforts described 
        in paragraph (5).
    ``(j) Funding.--
            ``(1) Authorization of appropriations.--There is authorized 
        to be appropriated to the Secretary to carry out this section 
        $500,000,000 for the period of fiscal years 2011 through 2020, 
        to remain available until expended.
            ``(2) Administrative costs.--Not more than 1 percent of any 
        amounts made available to the Secretary under paragraph (1) may 
        be used by the Secretary for administrative costs incurred in 
        carrying out this section.''.

SEC. 3. MUSH BUILDING REVOLVING FUND.

    (a) Definitions.--In this section:
            (1) Project.--The term ``project'' means an energy 
        efficiency retrofit project that meets the terms of this 
        section and criteria determined to be necessary by the 
        Secretary.
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.
            (3) State.--The term ``State'' has the meaning given the 
        term in section 412 of the Energy Conservation and Production 
        Act (42 U.S.C. 6862).
    (b) Establishment.--The Secretary shall establish the MUSH Building 
Efficiency Program to provide grants to State revolving funds to 
finance projects.
    (c) Eligibility.--To be eligible to receive a grant under this 
program, a State shall have, or propose to establish, a program to 
finance or support building improvement projects on buildings that are 
owned or controlled by--
            (1) a municipality;
            (2) a State or public university, including a community 
        college;
            (3) a school or school district, including a technical 
        school or a vocational school; and
            (4) a State, city, or other publicly owned hospital.
    (d) Terms and Conditions.--
            (1) In general.--As a condition of receiving a grant under 
        this section, a State shall--
                    (A) develop technical energy assessment report 
                guidelines for each project to be carried out under 
                this section;
                    (B) develop procedures--
                            (i) to monitor energy consumption prior to, 
                        and for at least 3 years after, the completion 
                        of each project carried out using State 
                        revolving funds;
                            (ii) to make data publicly available in 
                        aggregated summary reports regarding the 
                        performance of each project carried out using 
                        State revolving funds; and
                            (iii) to analyze energy savings, in 
                        kilowatt hours and dollars, before and for at 
                        least 3 years after the completion of each 
                        project carried out using State revolving 
                        funds; and
                    (C) incorporate training on audit techniques in any 
                guidelines or procedures developed for State revolving 
                funds that receive a grant under this section.
            (2) Maximum repayment term.--A State receiving a grant 
        under this section shall not enter into any obligations with a 
        repayment term that exceeds 15 years.
            (3) Conflict of interest.--A commissioning organization or 
        individual that receives compensation for professional services 
        relating to a project carried out under this section shall not 
        acquire any direct or indirect financial interest in the sale 
        of energy efficiency equipment or products that are directly 
        related to the project.
    (e) Report.--Not later than 1 year after commencement of the MUSH 
Building Efficiency Program, the Secretary shall submit to the 
appropriate committees of Congress a report that--
            (1) describes in detail the manner in which this section 
        has been carried out;
            (2) aggregates the project performance data of the State 
        programs receiving a grant under this section; and
            (3) includes any recommendations of the Secretary on 
        modifications that may improve the grant program.
    (f) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as are necessary.

SEC. 4. ENERGY EFFICIENCY SUPPORT PROGRAM.

    (a) Definitions.--In this section:
            (1) Project.--The term ``project'' means an energy 
        efficiency retrofit project that meets the criteria described 
        in subsection (c).
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.
    (b) Establishment.--The Secretary shall establish a program that 
provides grants to State or tribal governments to support property 
assessed clean energy bonds and other tax assessment-based financing 
mechanisms to support building retrofits that meet the criteria 
described in subsection (c).
    (c) Authorization, Terms, and Conditions.--
            (1) Authorization.--
                    (A) In general.--In carrying out this section, the 
                Secretary shall provide grants to capitalize loan loss 
                reserves for property assessed clean energy bonds and 
                other tax assessment-based financing mechanisms managed 
                by State or tribal governments.
                    (B) Maximum.--No eligible entity shall receive a 
                grant under this section that exceeds a total amount of 
                $10,000,000.
            (2) Eligible programs.--
                    (A) In general.--A grant under this section shall 
                be used to finance building retrofit projects that are 
                expected to produce significant energy efficiency 
                gains.
                    (B) Use of funds.--A State or tribal government 
                that receives a grant under this section shall use the 
                funds to provide credit enhancements or establish other 
                loan loss reserve funds approved by the Secretary.
                    (C) Conditions.--As a condition of receiving a 
                grant under this section, a State or tribal government 
                shall provide to the Secretary such assurances as the 
                Secretary determines to be necessary, including 
                assurances that the State or tribal government shall--
                            (i) provide support for each financing 
                        mechanism approved by the Secretary, including 
                        property assessed clean energy bonds and tax 
                        lien financing;
                            (ii) for each project receiving financial 
                        assistance under this section, develop 
                        comprehensive procedures for--
                                    (I) monitoring energy consumption 
                                prior to the commencement of, and at 
                                least 3 years after completion of, each 
                                project;
                                    (II) analyzing energy savings 
                                achieved, measured in kilowatt hours 
                                and dollars, prior to the commencement 
                                of, and at least 3 years after 
                                completion of, each project; and
                                    (III) making data recorded from 
                                each project publicly available in 
                                aggregated summary reports describing 
                                the performance of each project; and
                    (D) incorporate training on audit techniques in any 
                guidelines developed for the capital loan loss 
                reserves.
    (d) Program Coordination and Aggregation.--Subject to subsection 
(c)(1) and approval of the Secretary, eligible State or tribal 
governments may combine grants provided under this section to create 
multijurisdictional programs to support projects that meet the 
requirements of this section.
    (e) Report.--Not later than 1 year after the commencement of the 
program, the Secretary shall submit to the appropriate committees of 
Congress a report that--
            (1) describes in detail the manner in which this section 
        has been carried out;
            (2) aggregates the project performance data of the State, 
        local, and tribal government programs receiving funding under 
        this section; and
            (3) includes any recommendations of the Secretary on 
        modifications that may improve the grant program.
    (f) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as are necessary.
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