1.This Act may be cited as the
Recovery Through Building Renovation
Act of 2010
.
2.Building efficiency
retrofit loan credit support programTitle XVII of the Energy Policy Act of 2005
(42 U.S.C. 16511 et seq.) is amended by adding at the end the following:
1706.Building
retrofit financing program
(a)In
this section:
(1)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)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)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)
(1)Notwithstanding sections 1703 and 1705, the Secretary may
provide credit support under this section, in accordance with section
1702.
(2)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)
(1)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)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)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)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 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)
(i)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)If the Secretary adjusts the energy savings requirement,
the Secretary shall provide at least 90 days advanced public notice.
(d)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)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)
(1)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)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)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)
(1)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)Fees
collected under this section shall be subject to section 1702(h)(2).
(h)The
Secretary may delegate the underwriting activities under this section to 1 or
more entities that the Secretary determines to be qualified.
(i)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)
(1)Authorization
of appropriationsThere 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)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.
.
3.MUSH building
revolving fund
(a)In
this section:
(1)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)The
term Secretary means the Secretary of Energy.
(3)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)The
Secretary shall establish the MUSH Building Efficiency Program to provide
grants to State revolving funds to finance projects.
(c)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)
(1)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)A State receiving a grant under this section shall
not enter into any obligations with a repayment term that exceeds 15
years.
(3)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)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 appropriationsThere are authorized to be appropriated to
carry out this section such sums as are necessary.
4.Energy
efficiency support program
(a)In
this section:
(1)The
term project means an energy efficiency retrofit project that
meets the criteria described in subsection (c).
(2)The
term Secretary means the Secretary of Energy.
(b)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)
(A)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)No
eligible entity shall receive a grant under this section that exceeds a total
amount of $10,000,000.
(2)
(A)A grant under this section shall be used to finance
building retrofit projects that are expected to produce significant energy
efficiency gains.
(B)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)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 aggregationSubject 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)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 appropriationsThere are authorized to be appropriated to
carry out this section such sums as are necessary.