[Congressional Record Volume 156, Number 48 (Thursday, March 25, 2010)]
[Senate]
[Pages S2121-S2127]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. BINGAMAN (for himself, Mr. Warner, and Mr. Graham):
  S. 3177. A bill to provide for the establishment of a Home Star 
Retrofit Rebate Program, and for other purposes; to the Committee on 
Finance.
  Mr. BINGAMAN. Mr. President, I am pleased to join Senator Warner and 
Senator Graham in introducing the Home Star Energy Retrofit Act of 
2010. This legislation will save consumers money, create American 
skilled labor jobs, and reduce home energy consumption.
  If enacted, HOME STAR will build on existing policies and initiatives 
that have already proved effective. The program is supported by a broad 
coalition of over 600 groups including construction contractors, 
building products and mechanical manufacturers, retail sales 
businesses, environmental groups and labor advocates.
  HOME STAR will provide point-of-sale instant savings to encourage 
homeowners to install residential energy upgrades such as air sealing, 
insulation, and high efficiency furnaces and water heaters.
  HOME STAR will have a two-tiered approach that will offer flexibility 
to homeowners when choosing retrofits to install. Under the Silver Star 
program, rebates averaging $1,000 will be offered for the installation 
of each eligible energy-saving measure such as new insulation and high-
efficiency heating and cooling systems, up to maximum of $3,000 per 
home. Under the Gold Star program, there will be performance-based 
grants of $3,000 for a 20 percent reduction in home energy consumption 
and $1,000 for each additional 5 percent of verified energy reduction 
as determined by a comparison of the energy consumption of the home 
before and after the retrofit.
  HOME STAR will also create American jobs in the construction 
industry, which has lost 1.6 million jobs since December 2007, with 
unemployment rates topping 25 percent in some regions. HOME STAR 
leverages private investment to create a strong market for home energy 
retrofits, and will put hundreds of thousands of unemployed Americans 
back to work as well as stimulating demand for building materials 
produced by American factories.
  Finally, HOME STAR will reduce home energy consumption and dependence 
on foreign oil. HOME STAR helps Americans pay for cost-effective home 
improvements, create permanent reductions in household energy bills, 
and reduce our national carbon footprint. Residential energy efficiency 
improvements covered by the HOME STAR program reduce energy waste in 
most homes by 20 to 40 percent. When combined with low-interest 
financing, these retrofits can be cash-flow positive upon project 
completion. An initiative with a potential to retrofit over 3 million 
homes, HOME STAR will achieve significant reductions in building-
related greenhouse gas emissions while generating long-term energy 
savings for American consumers and reducing energy usage by an amount 
equal to four 300-megawatt power plants.
  In the interest of time we will postpone our remarks on this 
important bill until the Senate is back in session. Meanwhile, members 
will have an opportunity to review the legislation with their 
constituents. We hope that many members of the Senate will become 
cosponsors of the bill.
  Mr. President, I ask unanimous consent that the bill be printed in 
the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 3177

       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 ``Home Star Energy Retrofit 
     Act of 2010''.

     SEC. 2. DEFINITIONS.

       In this Act:
       (1) Accredited contractor.--The term ``accredited 
     contractor'' means a residential energy efficiency contractor 
     that meets the minimum applicable requirements established 
     under section 4.
       (2) Administrator.--The term ``Administrator'' means the 
     Administrator of the Environmental Protection Agency.
       (3) BPI.--The term ``BPI'' means the Building Performance 
     Institute.
       (4) Certified workforce.--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) Conditioned space.--The term ``conditioned space'' 
     means the area of a home that is--
       (A) intended for habitation; and
       (B) intentionally heated or cooled.
       (6) DOE.--The term ``DOE'' means the Department of Energy.
       (7) Electric utility.--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) EPA.--The term ``EPA'' means the Environmental 
     Protection Agency.
       (9) Federal rebate processing system.--The term ``Federal 
     Rebate Processing System'' means the Federal Rebate 
     Processing System established under section 3(b).
       (10) Gold star home energy retrofit program.--The term 
     ``Gold Star Home Energy Retrofit Program'' means the Gold 
     Star Home Energy Retrofit Program established under section 
     8.
       (11) Home.--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) Home star loan program.--The term ``Home Star loan 
     program'' means the Home Star energy efficiency loan program 
     established under section 15(a).
       (13) Home star retrofit rebate program.--The term ``Home 
     Star Retrofit Rebate Program'' means the Home Star Retrofit 
     Rebate Program established under section 3(a).
       (14) Indian tribe.--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 council.--The term 
     ``National Home Performance Council'' means the National Home 
     Performance Council, Inc.
       (16) Natural gas utility.--The term ``natural gas utility'' 
     means any person or State

[[Page S2122]]

     agency that transports, distributes, or sells natural gas at 
     retail, including nonregulated utilities and utilities that 
     are subject to State regulation.
       (17) Qualified contractor.--The term ``qualified 
     contractor'' means a residential energy efficiency contractor 
     that meets minimum applicable requirements established under 
     section 4.
       (18) Quality assurance program.--
       (A) In general.--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) Inclusions.--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 provider.--The term ``quality 
     assurance provider'' means any entity that meets the minimum 
     applicable requirements established under section 6.
       (20) Rebate aggregator.--The term ``rebate aggregator'' 
     means an entity that meets the requirements of section 5.
       (21) RESNET.--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) Secretary.--The term ``Secretary'' means the Secretary 
     of Energy.
       (23) Silver star home energy retrofit program.--The term 
     ``Silver Star Home Energy Retrofit Program'' means the Silver 
     Star Home Energy Retrofit Program established under section 
     7.
       (24) State.--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.

     SEC. 3. HOME STAR RETROFIT REBATE PROGRAM.

       (a) In General.--The Secretary shall establish the Home 
     Star Retrofit Rebate Program.
       (b) Federal Rebate Processing System.--
       (1) In general.--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) Model forms.--In carrying out this section, the 
     Secretary shall consider the model forms developed by the 
     National Home Performance Council.
       (c) Public Information Campaign.--Not 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.

     SEC. 4. CONTRACTORS.

       (a) Contractor Qualifications for Silver Star Home Energy 
     Retrofit Program.--A 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 Program.--A 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.

     SEC. 5. REBATE AGGREGATORS.

       (a) In General.--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) Eligibility.--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 Targets.--The 
     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.

     SEC. 6. QUALITY ASSURANCE PROVIDERS.

       (a) In General.--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) Inclusions.--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.

     SEC. 7. SILVER STAR HOME ENERGY RETROFIT PROGRAM.

       (a) In General.--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);

[[Page S2123]]

       (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) Energy Savings Measures.--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) Installation Costs.--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) Amount of Rebate.--
       (1) In general.--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) Higher rebate amount.--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) Lower rebate amount.--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) Maximum amount.--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 
     Services.--A 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 Program.--On 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;

[[Page S2124]]

       (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) Homeowner Complaints.--
       (1) In general.--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) Verification.--
       (A) In general.--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) Administration.--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) Audits.--
       (1) In general.--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) Incorrect payment.--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.

     SEC. 8. GOLD STAR HOME ENERGY RETROFIT PROGRAM.

       (a) In General.--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) Amount of Grant.--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) Energy Savings.--
       (1) In general.--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) Documentation.--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) Monitoring.--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) Assumptions and testing.--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) Recommended measures.--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 Program.--On 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) Verification.--
       (1) In general.--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 required.--A 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) Homeowner Complaints.--
       (1) In general.--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) Verification.--
       (A) In general.--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) Administration.--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) Audits.--
       (1) In general.--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) Incorrect payment.--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.

     SEC. 9. GRANTS TO STATES AND INDIAN TRIBES.

       (a) In General.--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

[[Page S2125]]

     the Silver Star Home Energy Retrofit Program and the Gold 
     Star Home Energy Retrofit Program.
       (b) Initial Grants.--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) Indian Tribes.--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) State Allotments.--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) In general.--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) Noncompliance.--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) Implementation.--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 Partnerships.--A 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) In general.--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) Existing programs.--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.

     SEC. 10. QUALITY ASSURANCE FRAMEWORK.

       (a) In General.--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) Implementation.--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) Components.--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;
       (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;
       (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) Noncompliance.--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.

     SEC. 11. REPORT.

       (a) In General.--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) Contents.--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; and
       (7) the results of verification requirements; and
       (8) any other information the Secretary considers 
     appropriate
       (c) Noncompliance.--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.

     SEC. 12. ADMINISTRATION.

       (a) In General.--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) Appointment of Personnel.--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) Rate of Pay.--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) Consultants.--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) Contracting.--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) Regulations.--
       (1) In general.--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) Deadline.--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) Information Collection.--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.

[[Page S2126]]

       (h) Adjustment of Rebate Amounts.--Effective 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.

     SEC. 13. TREATMENT OF REBATES.

       (a) In General.--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) Notice.--
       (1) In general.--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) Notice in rebate form.--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 form.--A participating 
     contractor shall obtain the rebate form on a designated 
     website in accordance with section 3(b)(1)(C).

     SEC. 14. PENALTIES.

       (a) In General.--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) Civil Penalty.--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) Administration.--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) Fraud.--In addition to any civil penalty, any person 
     who commits a fraudulent violation of this Act shall be 
     subject to criminal prosecution.

     SEC. 15. HOME STAR ENERGY EFFICIENCY LOAN PROGRAM.

       (a) Definitions.--In this section:
       (1) Eligible participant.--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) Program.--The term ``program'' means the Home Star 
     Energy Efficiency Loan Program established under subsection 
     (b).
       (3) Qualified financing entity.--The 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 mechanism.--The 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) Establishment.--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 Entities.--To 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) Allocation.--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 Entities.--Before 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) Use of Funds.--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) Use of Repayment Funds.--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) Program Evaluation.--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) Credit Support.--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.''.

     SEC. 16. FUNDING.

       (a) Authorization of Appropriations.--
       (1) In general.--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) Maintenance of funding.--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) Grants to States.--
       (1) In general.--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) In general.--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

[[Page S2127]]

       (ii) determine a formula to provide the balance of funds to 
     State energy offices through a performance-based system.
       (B) Allocation.--
       (i) Allocation formula.--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) Performance-based system.--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) Quality Assurance Costs.--
       (1) In general.--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) Management.--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 
     aggregators.--The 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) Incentives.--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 Expenditures.--Of 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 Coordination.--Of 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) Indian Tribes.--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 Program.--In 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 Program.--In 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) In general.--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) Adjustment.--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 program.--If 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 program.--If 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) Financing.--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.
                                 ______