[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 878 Introduced in Senate (IS)]

114th CONGRESS
  1st Session
                                 S. 878

 To establish a State residential building energy efficiency upgrades 
                          loan pilot program.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 26, 2015

   Mr. Sanders (for himself, Ms. Cantwell, Mr. Wyden, Mr. King, Mr. 
Whitehouse, Mr. Markey, and Mr. Franken) introduced the following bill; 
   which was read twice and referred to the Committee on Energy and 
                           Natural Resources

_______________________________________________________________________

                                 A BILL


 
 To establish a State residential building energy efficiency upgrades 
                          loan pilot program.

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

SECTION 1. STATE RESIDENTIAL BUILDING ENERGY EFFICIENCY UPGRADES LOAN 
              PILOT PROGRAM.

    (a) Loans for Residential Building Energy Efficiency Upgrades.--
Part D of title III of the Energy Policy and Conservation Act (42 
U.S.C. 6321 et seq.) is amended by adding at the end the following:

``SEC. 367. LOANS FOR RESIDENTIAL BUILDING ENERGY EFFICIENCY UPGRADES.

    ``(a) Definitions.--In this section:
            ``(1) Consumer-friendly.--The term `consumer-friendly', 
        with respect to a loan repayment approach, means a loan 
        repayment approach that--
                    ``(A) emphasizes convenience for customers;
                    ``(B) is of low cost to consumers; and
                    ``(C) emphasizes simplicity and ease of use for 
                consumers in the billing process.
            ``(2) Eligible entity.--The term `eligible entity' means--
                    ``(A) a State or territory of the United States; 
                and
                    ``(B) a tribal organization (as defined in section 
                4 of the Indian Self-Determination and Education 
                Assistance Act (25 U.S.C. 450b)).
            ``(3) Energy advisor program.--
                    ``(A) In general.--The term `energy advisor 
                program' means any program to provide to owners or 
                residents of residential buildings advice, information, 
                and support in the identification, prioritization, and 
                implementation of energy efficiency and energy savings 
                measures.
                    ``(B) Inclusions.--The term `energy advisor 
                program' includes a program that provides--
                            ``(i) interpretation of energy audit 
                        reports;
                            ``(ii) assistance in the prioritization of 
                        improvements;
                            ``(iii) assistance in finding qualified 
                        contractors;
                            ``(iv) assistance in contractor bid 
                        reviews;
                            ``(v) education on energy conservation and 
                        energy efficiency;
                            ``(vi) explanations of available incentives 
                        and tax credits;
                            ``(vii) assistance in completion of rebate 
                        and incentive paperwork; and
                            ``(viii) any other similar type of support.
            ``(4) Energy efficiency.--The term `energy efficiency' 
        means a decrease in homeowner or residential tenant consumption 
        of energy (including electricity and thermal energy) that is 
        achieved without reducing the quality of energy services 
        through--
                    ``(A) a measure or program that targets customer 
                behavior;
                    ``(B) equipment or energy systems;
                    ``(C) a device; or
                    ``(D) other material.
            ``(5) Energy efficiency upgrade.--
                    ``(A) In general.--The term `energy efficiency 
                upgrade' means any project or activity--
                            ``(i) the primary purpose of which is 
                        increasing energy efficiency; and
                            ``(ii) that is carried out on a residential 
                        building.
                    ``(B) Inclusions.--The term `energy efficiency 
                upgrade' includes the installation or improvement of a 
                renewable energy facility for heating or electricity 
                generation serving a residential building carried out 
                in conjunction with an energy efficiency project or 
                activity.
            ``(6) Program entity.--The term `program entity' means a 
        local government, utility, or other entity that carries out a 
        financing program under subsection (e)(2)(A) pursuant to a 
        contract or other agreement with an eligible entity.
            ``(7) Recipient household.--The term `recipient household' 
        means the owner or tenant of a residential building who 
        receives financing under this section for an energy efficiency 
        upgrade of the residential building.
            ``(8) Residential building.--
                    ``(A) In general.--The term `residential building' 
                means a building used for residential purposes.
                    ``(B) Inclusions.--The term `residential building' 
                includes--
                            ``(i) a single-family residence;
                            ``(ii) a multifamily residence composed not 
                        more than 4 units; and
                            ``(iii) a mixed-use building that includes 
                        not more than 4 residential units.
    ``(b) Establishment of Program.--
            ``(1) In general.--The Secretary shall establish a program 
        under this part under which the Secretary shall make available 
        to eligible entities loans for the purpose of establishing or 
        expanding programs that provide to recipient households 
        financing for energy efficiency upgrades of residential 
        buildings.
            ``(2) Consultation.--In establishing the program under 
        paragraph (1), the Secretary shall consult, as the Secretary 
        determines to be appropriate, with stakeholders and the public.
            ``(3) No requirement to participate.--No eligible entity 
        shall be required to participate in any manner in the program 
        established under paragraph (1).
            ``(4) Deadlines.--The Secretary shall--
                    ``(A) not later than 1 year after the date of 
                enactment of this section, implement the program 
                established under paragraph (1) (including soliciting 
                applications from eligible entities in accordance with 
                subsection (c)); and
                    ``(B) not later than 2 years after the date of 
                enactment of this section, disburse the initial loans 
                provided under this section.
    ``(c) Applications.--
            ``(1) In general.--To be eligible to receive a loan under 
        this section, an eligible entity shall submit to the Secretary 
        an application at such time, in such manner, and containing 
        such information as the Secretary may require.
            ``(2) Selection date.--Not later than 21 months after the 
        date of enactment of this section, the Secretary shall select 
        eligible entities to receive the initial loans provided under 
        this section, in accordance with the requirements described in 
        paragraph (3).
            ``(3) Requirements.--In selecting eligible entities to 
        receive loans under this section, the Secretary shall--
                    ``(A) to the maximum extent practicable, ensure--
                            ``(i) that both innovative and established 
                        approaches to the challenges of financing 
                        energy efficiency upgrades are supported;
                            ``(ii) that energy efficiency upgrades are 
                        conducted and validated to comply with best 
                        practices for work quality, as determined by 
                        the Secretary;
                            ``(iii) regional diversity among eligible 
                        entities that receive the loans, including 
                        participation by rural States and small States;
                            ``(iv) significant participation by 
                        families with income levels at or below the 
                        median income level for the applicable 
                        geographical region, as determined by the 
                        Secretary; and
                            ``(v) the incorporation of an energy 
                        advisor program by, as applicable--
                                    ``(I) eligible entities; or
                                    ``(II) program entities;
                    ``(B) evaluate applications based primarily on--
                            ``(i) the projected reduction in energy 
                        use, as determined in accordance with such 
                        specific and commonly available methodology as 
                        the Secretary shall establish, by regulation;
                            ``(ii) the creditworthiness of the eligible 
                        entity; and
                            ``(iii) the incorporation of measures for 
                        making the loan repayment system for recipient 
                        households as consumer-friendly as practicable;
                    ``(C) evaluate applications based secondarily on--
                            ``(i) the extent to which the proposed 
                        financing program of the eligible entity 
                        incorporates best practices for such a program, 
                        as determined by the Secretary;
                            ``(ii)(I) whether the eligible entity has 
                        created a plan for evaluating the effectiveness 
                        of the proposed financing program; and
                            ``(II) whether that plan includes--
                                    ``(aa) a robust strategy for 
                                collecting, managing, and analyzing 
                                data, as well as making the data 
                                available to the public; and
                                    ``(bb) experimental studies, which 
                                may include investigations of how human 
                                behavior impacts the effectiveness of 
                                efficiency improvements;
                            ``(iii) the extent to which Federal funds 
                        are matched by funding from State, local, 
                        philanthropic, private sector, and other 
                        sources;
                            ``(iv) the extent to which the proposed 
                        financing program will be coordinated and 
                        marketed with other existing or planned energy 
                        efficiency or energy conservation programs 
                        administered by--
                                    ``(I) utilities and rural 
                                cooperatives;
                                    ``(II) State, tribal, territorial, 
                                or local governments; or
                                    ``(III) community development 
                                financial institutions; and
                            ``(v) such other factors as the Secretary 
                        determines to be appropriate; and
                    ``(D) not provide an advantage or disadvantage to 
                applications that include renewable energy in the 
                program.
    ``(d) Administrative Provisions.--
            ``(1) Term.--The Secretary shall establish terms for loans 
        provided to eligible entities under this section--
                    ``(A) in a manner that--
                            ``(i) provides for a high degree of cost 
                        recovery; and
                            ``(ii) ensures that, with respect to all 
                        loans provided to or by eligible entities under 
                        this section, the loans are competitive with, 
                        or superior to, other forms of financing for 
                        similar purposes; and
                    ``(B) subject to the condition that the term of a 
                loan provided to an eligible entity under this section 
                shall not exceed 35 years.
            ``(2) Interest rates.--
                    ``(A) In general.--Subject to subparagraph (B), the 
                Secretary, at the discretion of the Secretary, shall 
                charge interest on a loan provided to an eligible 
                entity under this section at a fixed rate equal, or 
                approximately equal, to the interest rate charged on 
                Treasury securities of comparable maturity.
                    ``(B) Leveraged loans.--The interest rate and other 
                terms of the loans provided to eligible entities under 
                this section shall be established in a manner that 
                ensures that the total amount of the loans is equal to 
                not less than 20 times, and not more than 50 times, an 
                amount equivalent to 80 percent of the amount 
                appropriated for administrative and general financial 
                support costs pursuant to subsection (g)(2).
            ``(3) No penalty on early repayment.--The Secretary shall 
        not assess any penalty for early repayment by an eligible 
        entity of a loan provided under this section.
            ``(4) Return of unused portion.--As a condition of receipt 
        of a loan under this section, an eligible entity shall agree to 
        return to the general fund of the Treasury any portion of the 
        loan amount that is unused by the eligible entity within a 
        reasonable period after the date of receipt of the loan, as 
        determined by the Secretary.
    ``(e) Use of Funds.--
            ``(1) In general.--An eligible entity shall use a loan 
        provided under this section to establish or expand 1 or more 
        financing programs--
                    ``(A) the purpose of which is to enable recipient 
                households to undertake energy efficiency upgrades of 
                residential buildings;
                    ``(B) that may, at the sole discretion of the 
                eligible entity, require an outlay of capital by 
                recipient households in accordance with the goals of 
                the program under this section; and
                    ``(C) that incorporate a consumer-friendly loan 
                repayment approach.
            ``(2) Structure of financing program.--A financing program 
        of an eligible entity may--
                    ``(A) consist--
                            ``(i) primarily or entirely of a financing 
                        program administered by--
                                    ``(I) the applicable State; or
                                    ``(II) a program entity; or
                            ``(ii) of a combination of programs 
                        described in clause (i);
                    ``(B) rely on financing provided by--
                            ``(i) the eligible entity; or
                            ``(ii) a third party, acting through the 
                        eligible entity; and
                    ``(C) include a provision pursuant to which a 
                recipient household shall agree to return to the 
                eligible entity any portion of the assistance that is 
                unused by the recipient household within a reasonable 
                period after the date of receipt of the assistance, as 
                determined by the eligible entity.
            ``(3) Form of assistance.--Assistance from an eligible 
        entity under this subsection may be provided in any form, or in 
        accordance with any program, authorized by Federal law 
        (including regulations), including in the form of--
                    ``(A) a revolving loan fund;
                    ``(B) a credit enhancement structure designed to 
                mitigate the effects of default; or
                    ``(C) a program that--
                            ``(i) adopts any other approach for 
                        providing financing for energy efficiency 
                        upgrades producing significant energy 
                        efficiency gains; and
                            ``(ii) incorporates measures for making the 
                        loan repayment system for recipient households 
                        as consumer-friendly as practicable.
            ``(4) Scope of assistance.--Assistance provided by an 
        eligible entity under this subsection may be used to pay for 
        costs associated with carrying out an energy efficiency 
        upgrade, including materials and labor.
            ``(5) Additional assistance.--In addition to the amount of 
        the loan provided to an eligible entity by the Secretary under 
        subsection (b), the eligible entity or program entity, as 
        applicable, may provide to recipient households such assistance 
        under this subsection as the eligible entity or program entity 
        considers to be appropriate from any other funds of the 
        eligible entity or program entity, including funds provided to 
        the eligible entity by the Secretary for administrative costs 
        pursuant to this section.
            ``(6) Limitations.--
                    ``(A) Interest rates.--
                            ``(i) Interest charged by eligible 
                        entities.--The interest rate charged by an 
                        eligible entity on assistance provided under 
                        this subsection--
                                    ``(I) shall be fixed; and
                                    ``(II) shall not exceed the 
                                interest rate paid by the eligible 
                                entity to the Secretary under 
                                subsection (d)(2).
                            ``(ii) Interest charged by program 
                        entities.--A program entity that receives 
                        funding from an eligible entity under this 
                        subsection for the purpose of capitalizing a 
                        residential energy efficiency financing program 
                        may charge interest on any loan provided by the 
                        program entity at a fixed rate that is as low 
                        as practicable, but not more than 5 percent 
                        more than the applicable interest rate paid by 
                        the eligible entity to the Secretary under 
                        subsection (d)(2).
                    ``(B) No penalty on early repayment.--An eligible 
                entity or program entity, as applicable, shall not 
                assess any penalty for early repayment by any recipient 
                household to the eligible entity or program entity, as 
                applicable.
    ``(f) Reports.--
            ``(1) Eligible entities.--
                    ``(A) In general.--Not later than 2 years after the 
                date of receipt of the loan, and annually thereafter 
                for the term of the loan, an eligible entity that 
                receives a loan under this section shall submit to the 
                Secretary a report describing the performance of each 
                program and activity carried out using the loan, 
                including anonymized loan performance data.
                    ``(B) Requirements.--The Secretary, in consultation 
                with eligible entities and other stakeholders (such as 
                lending institutions and the real estate industry), 
                shall establish such requirements for the reports under 
                this paragraph as the Secretary determines to be 
                appropriate--
                            ``(i) to ensure that the reports are clear, 
                        consistent, and straightforward; and
                            ``(ii) taking into account the reporting 
                        requirements for similar programs in which the 
                        eligible entities are participating, if any.
            ``(2) Secretary.--The Secretary shall submit to Congress 
        and make available to the public--
                    ``(A) not less frequently than once each year, a 
                report describing the performance of the program under 
                this section, including a synthesis and analysis of the 
                information provided in the reports submitted to the 
                Secretary under paragraph (1)(A); and
                    ``(B) on termination of the program under this 
                section, an assessment of the success of, and education 
                provided by, the measures carried out by eligible 
                entities during the term of the program.
    ``(g) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary to carry out this section--
            ``(1) $37,500,000 for energy advisor programs;
            ``(2) $25,000,000 for administrative and general financial 
        support costs to the Secretary of carrying out this section; 
        and
            ``(3) $37,500,000 for administrative costs to States in 
        carrying out this section.''.
    (b) Reorganization.--
            (1) In general.--Part D of title III of the Energy Policy 
        and Conservation Act (42 U.S.C. 6321 et seq.) is amended--
                    (A) by redesignating sections 362, 363, 364, 365, 
                and 366 as sections 364, 365, 366, 363, and 362, 
                respectively, and moving the sections so as to appear 
                in numerical order;
                    (B) in section 362 (as so redesignated)--
                            (i) in paragraph (3)(B)(i), by striking 
                        ``section 367, and'' and inserting ``section 
                        367 (as in effect on the day before the date of 
                        enactment of the State Energy Efficiency 
                        Programs Improvement Act of 1990 (42 U.S.C. 
                        6201 note; Public Law 101-440)); and''; and
                            (ii) in each of paragraphs (4) and (6), by 
                        striking ``section 365(e)(1)'' each place it 
                        appears and inserting ``section 363(e)(1)'';
                    (C) in section 363 (as so redesignated)--
                            (i) in subsection (b), by striking ``the 
                        provisions of sections 362 and 364 and 
                        subsection (a) of section 363'' and inserting 
                        ``sections 364, 365(a), and 366''; and
                            (ii) in subsection (g)(1)(A), in the second 
                        sentence, by striking ``section 362'' and 
                        inserting ``section 364''; and
                    (D) in section 365 (as so redesignated)--
                            (i) in subsection (a)--
                                    (I) in paragraph (1), by striking 
                                ``section 362,'' and inserting 
                                ``section 364;''; and
                                    (II) in paragraph (2), by striking 
                                ``section 362(b) or (e)'' and inserting 
                                ``subsection (b) or (e) of section 
                                364''; and
                            (ii) in subsection (b)(2), in the matter 
                        preceding subparagraph (A), by striking 
                        ``section 362(b) or (e)'' and inserting 
                        ``subsection (b) or (e) of section 364''.
            (2) Conforming amendments.--Section 391 of the Energy 
        Policy and Conservation Act (42 U.S.C. 6371) is amended--
                    (A) in paragraph (2)(M), by striking ``section 
                365(e)(2)'' and inserting ``section 363(e)(2)''; and
                    (B) in paragraph (10), by striking ``section 362 of 
                this Act'' and inserting ``section 364''.
            (3) Clerical amendment.--The table of contents of the 
        Energy Policy and Conservation Act (42 U.S.C. 6201 note; Public 
        Law 94-163) is amended by striking the items relating to part D 
        of title III and inserting the following:

              ``Part D--State Energy Conservation Programs

``Sec. 361. Findings and purpose.
``Sec. 362. Definitions.
``Sec. 363. General provisions.
``Sec. 364. State energy conservation plans.
``Sec. 365. Federal assistance to States.
``Sec. 366. State energy efficiency goals.
``Sec. 367. Loans for residential building energy efficiency 
                            upgrades.''.

SEC. 2. OFFSET.

    Section 422(f) of the Energy Independence and Security Act of 2007 
(42 U.S.C. 17082(f)) is amended--
            (1) in paragraph (3), by striking ``and'' after the 
        semicolon at the end; and
            (2) by striking paragraph (4) and inserting the following:
            ``(4) $200,000,000 for each of fiscal years 2013 through 
        2015; and
            ``(5) $166,666,666 for each of fiscal years 2016 through 
        2018.''.
                                 <all>