[Congressional Record Volume 156, Number 82 (Thursday, May 27, 2010)]
[Senate]
[Pages S4531-S4539]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
By Mr. BINGAMAN (for himself, Mr. Warner, Mr. Graham, Ms. Snowe,
Mr. Merkley, Mr. Brown of Massachusetts, Ms. Stabenow, Mr.
Sanders, Mr. Dodd, Mrs. Gillibrand, Mr. Carper, Mr. Pryor, Mr.
Begich, Ms. Klobuchar, Ms. Cantwell, and Mr. Harkin):
S. 3434. 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 rise to introduce the Home Star Energy
Retrofit Act of 2010 and to recognize the original cosponsors of the
bill: Senator Warner, Senator Graham, Senator Snowe, Senator Sanders,
Senator Brown of Massachusetts, Senator Merkley, Senator Stabenow,
Senator Dodd, Senator Gillibrand, Senator Carper, Senator Pryor and
Senator Harkin. This innovative 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 incorporates a two-tiered approach that will offer
flexibility to homeowners when choosing efficiency improvements 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.
In addition to the short-term rebate programs in Home Star, our
revised bill includes longer term efficiency tax policies to maintain
the momentum for energy efficient home retrofits. These performance-
based energy improvement tax credits will encourage the continuation of
Gold Star-type whole home retrofits.
HOME STAR will 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.
Mr. President, I ask unanimous consent that the text of 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. 3434
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Home Star
Energy Retrofit Act of 2010''.
(b) Table of Contents.--The table of contents of this Act
is as follows:
Sec. 1. Short title; table of contents.
TITLE I--HOME STAR ENERGY RETROFITS
Sec. 101. Definitions.
Sec. 102. Home Star Retrofit Rebate Program.
Sec. 103. Contractors.
Sec. 104. Rebate aggregators.
Sec. 105. Quality assurance providers.
Sec. 106. Silver Star Home Energy Retrofit Program.
[[Page S4532]]
Sec. 107. Gold Star Home Energy Retrofit Program.
Sec. 108. Grants to States and Indian tribes.
Sec. 109. Quality assurance framework.
Sec. 110. Report.
Sec. 111. Administration.
Sec. 112. Treatment of rebates.
Sec. 113. Penalties.
Sec. 114. Home Star Energy Efficiency Loan Program.
Sec. 115. Funding.
TITLE II--PERFORMANCE BASED ENERGY IMPROVEMENT TAX CREDITS
Sec. 201. Performance based energy improvements for nonbusiness
property.
TITLE I--HOME STAR ENERGY RETROFITS
SEC. 101. DEFINITIONS.
In this title:
(1) Accredited contractor.--The term ``accredited
contractor'' means a residential energy efficiency contractor
that meets the minimum applicable requirements established
under section 103.
(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--
(i) by the BPI;
(ii) by the North American Technician Excellence;
(iii) by the Laborers' International Union of North
America; or
(iv) in the State in which the work is to be performed,
pursuant to a program operated by the Home Builders Institute
in connection with Ferris State University, to be effective
beginning on the date that is 30 days after the date notice
is provided by those organizations to the Secretary that the
program has been established in the State unless the
Secretary determines, not later than 30 days after the date
of the notice, that the standard or certification is
incomplete; 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 102(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
107.
(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) Homeowner.--The term ``homeowner'' means the resident
or non-resident owner of record of a home.
(13) Home star loan program.--The term ``Home Star loan
program'' means the Home Star energy efficiency loan program
established under section 114(a).
(14) Home star retrofit rebate program.--The term ``Home
Star Retrofit Rebate Program'' means the Home Star Retrofit
Rebate Program established under section 102(a).
(15) 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).
(16) Natural gas utility.--The term ``natural gas utility''
means any person or State agency that transports,
distributes, or sells natural gas at retail, including
nonregulated utilities and utilities that are subject to
State regulation.
(17) Qualified contractor.--The term ``qualified
contractor'' means a residential energy efficiency contractor
that meets minimum applicable requirements established under
section 103.
(18) Quality assurance framework.--The term ``quality
assurance framework'' means a policy adopted by a State to
develop high standards for ensuring quality in ongoing energy
efficiency retrofit activities in which the State has a role,
including operation of the quality assurance program and
creating significant employment opportunities, in particular
for targeted workers.
(19) Quality assurance program.--
(A) In general.--The term ``quality assurance program''
means a program established under this title or recognized by
the Secretary under this title, to oversee the delivery of
home efficiency retrofit programs to ensure that work is
performed in accordance with standards and criteria
established under this title.
(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.
(20) Quality assurance provider.--The term ``quality
assurance provider'' means any entity that meets the minimum
applicable requirements established under section 105.
(21) Rebate aggregator.--The term ``rebate aggregator''
means an entity that meets the requirements of section 104.
(22) 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.
(23) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
(24) 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
106.
(25) 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.
(26) Vendor.--The term ``vendor'' means any retailer that
sells directly to homeowners and contractors the materials
used for the energy savings measures under section 106.
SEC. 102. HOME STAR RETROFIT REBATE PROGRAM.
(a) In General.--The Secretary shall establish the Home
Star Retrofit Rebate Program.
(b) Federal Rebate Processing System.--
(1) Requirements.--
(A) 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--
(i) 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;
(ii) 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;
(iii) make available, on a designated website, model forms
for compliance with all applicable requirements of this
title, 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; and
(iv) subject to section 115, provide such administrative
and technical support to rebate aggregators and States as is
necessary to carry out this title.
(B) Distribution of funds.--Not later than 10 days after
the date of receipt of bundled rebate applications from a
rebate aggregator, the Secretary shall distribute funds to
the rebate aggregator on approved claims for reimbursement
made to the Federal Rebate Processing System.
(C) Funding availability.--The Secretary shall post, on a
weekly basis, on the national retrofit website established
under subparagraph (A)(ii) information on--
(i) the number of rebate claims approved for reimbursement;
and
(ii) the total amount of funds disbursed for rebates.
(D) Program adjustment or termination.--Based on the
information described in subparagraph (C), the Secretary
shall announce a termination date and reserve funding to
process the rebate applications that are in the Federal
Rebate Processing System prior to the termination date.
(2) Model forms.--In carrying out this section, the
Secretary shall consider the model forms developed by the
National Home Performance Council.
(c) Administrative and Technical Support.--Effective
beginning 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 and States as is
necessary to carry out this title.
(d) 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.
[[Page S4533]]
(e) Limitation.--Silver Star rebates provided under section
106 and Gold Star rebates provided under section 107 may be
provided for the same home only if--
(1) Silver Star rebates are awarded prior to Gold Star
rebates;
(2) energy savings obtained from measures under the Silver
Star Home Energy Retrofit Program are not counted towards the
simulated energy savings that determine the value of a rebate
under the Gold Star Home Energy Retrofit Program; and
(3) the combined Silver Star and Gold Star rebates provided
to the individual homeowner do not exceed $8,000.
(f) Availability.--Not later than 90 days after the date of
enactment of this Act, the Secretary shall ensure that Home
Star retrofit rebates are available to all homeowners in the
United States to the maximum extent practicable.
SEC. 103. 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 title 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 title 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 title; 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 title 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.
(c) Health and Safety Requirements.--Nothing in this title
relieves any contractor from the obligation to comply with
applicable Federal, State, and local health and safety code
requirements.
SEC. 104. REBATE AGGREGATORS.
(a) In General.--The Secretary shall develop a network of
rebate aggregators that can facilitate the delivery of
rebates to participating contractors and vendors for
discounts provided to homeowners for energy efficiency
retrofit work.
(b) Responsibilities.--Rebate aggregators shall--
(1) review the proposed rebate application for completeness
and accuracy;
(2) review measures under the Silver Star Home Energy
Retrofit Program and energy savings under the Gold Star Home
Energy Retrofit Program for eligibility in accordance with
this title;
(3) provide data to the Federal Data Processing Center
consistent with data protocols established by the Secretary;
and
(4) distribute funds received from DOE to contractors,
vendors, or other persons.
(c) Processing Rebate Applications.--A rebate aggregator
shall--
(1) submit the rebate application to the Federal Rebate
Processing Center not later than 10 days after the date of
receipt of a rebate application from a contractor; and
(2) distribute funds to the contractor not later than 10
days after the date of receipt from the Federal Rebate
Processing System.
(d) 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.
(e) Application to Become a Rebate Aggregator.--Not later
than 30 days after the date of receipt of an application of
an entity seeking to become a rebate aggregator, the
Secretary shall approve or deny the application on the basis
of the eligibility criteria under subsection (d).
(f) Application Priority.--In reviewing applications from
entities seeking to become rebate aggregators, the Secretary
shall give priority to entities that commit--
(1) to reviewing applications for participation in the
program from all qualified contractors within a defined
geographic region; and
(2) to processing rebate applications more rapidly than the
minimum requirements established under the program.
(g) 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. 105. QUALITY ASSURANCE PROVIDERS.
(a) In General.--An entity shall be considered a quality
assurance provider under this title 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 title.
(b) Inclusions.--An entity shall be considered a quality
assurance provider under this title 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. 106. 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);
(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 the total conditioned footprint of the
house.
(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 and seals 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--
[[Page S4534]]
(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 75 percent of the exterior windows in a home,
whichever is less, with windows that--
(A) are certified by the National Fenestration Rating
Council; and
(B) comply with criteria applicable to windows 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 the 2010 Energy Star specification for doors.
(8) Skylight replacement that replaces at least 1 skylight
with skylights that comply with criteria applicable to
skylights under the 2010 Energy Star specification for
skylights.
(9)(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; and
(bb) in the case of a wood stove, replaces an existing wood
stove with a stove that is EPA-certified, if a voucher is
provided by the installer or other responsible party
certifying that the old stove has been removed and made
inoperable;
(II) the home has a distribution system (such as ducts,
vents, blowers, or affixed fans) that allows heat from the
wood stove, furnace, or boiler to reach all or most parts of
the home; and
(III) an independent test laboratory approved by the
Secretary or the Administrator 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 3.0 grams per
hour for wood stoves or pellet stoves, and less than 0.32 lbs
per million BTU for outdoor boilers and furnaces.
(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.
(10) Automatic water temperature controllers that vary
boiler water temperature in response to changes in outdoor
temperature or the demand for heat, if the retrofit is to an
existing boiler and not in conjunction with a new boiler.
(11) 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.
(12) 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 condensing storage water heater or tankless water heater
with 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 under specification SRCC-OG-300; 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 (11)
that provides domestic water heating through the use of--
(i) year-round demand water heating capability; or
(ii) a desuperheater.
(13) 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).
(14) Roof replacement that replaces at least 75 percent of
the roof area with energy-saving roof products certified
under the Energy Star program.
(15) Window films that are installed on at least 8 exterior
windows, doors, or skylights, or 75 percent of the total
exterior square footage of glass, whichever is more, in a
home with window films that--
(A) are certified by the National Fenestration Rating
Council;
(B) have a Solar Heat Gain Coefficient of 0.40 or less with
a visible light-to-solar heat gain ratio of at least 1.1 in
2009 International Energy Conservation Code climate zones 1
through 8; and
(C) are certified to reduce the U-factor of the National
Fenestration Rating Council dual pane reference window by
0.05 or greater and are only applied to nonmetal frame dual
pane windows in 2009 International Energy Conservation Code
climate zones 4 through 8.
(c) Installation Costs.--Measures described in paragraphs
(1) through (15) 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) a heating system described in subsection (b)(9); and
(D) an air-conditioner or heat-pump replacement described
in subsection (b)(11).
(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) $125 per skylight for the installation of up to a
maximum of 2 Energy Star skylights described in subsection
(b)(8) for each home;
(C) $750 for a maximum of 1 natural gas or propane tankless
water heater described in subsection (b)(12)(B) for each
home;
(D) $450 for a maximum of 1 natural gas or propane storage
water heater described in subsection (b)(12)(C) for each
home;
(E) $250 for rim joist insulation described in subsection
(b)(5)(B);
(F) $50 for each storm window described in subsection
(b)(13);
(G) $500 for a desuperheater described in subsection
(b)(12)(G)(ii);
(H) $500 for a wood or pellet stove that has a heating
capacity of at least 28,000 BTU per hour (using the upper end
of the range listed in the EPA list of Certified Wood Stoves)
and meets all of the requirements of subsection (b)(9)(v)
other than the requirements in items (aa) and (bb) of
subsection (b)(9)(v)(I);
(I) $250 for an automatic water temperature controller
described in subsection (b)(10);
(J) $500 for a roof described in subsection (b)(14); and
(K) $500 for window films described in subsection (b)(15).
(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.--
(1) In general.--A rebate shall be awarded under this
section for attic, wall, or crawl space insulation or air
sealing product if--
(A) the product--
(i) 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;
(ii) is purchased by a homeowner for installation by the
homeowner in a home identified by the address of the
homeowner;
(iii) is identified and attributed to a specific home in a
submission by the vendor to a rebate aggregator;
(iv) is not part of--
(I) an energy savings measure described in paragraphs (6)
through (11) of subsection (b); and
(II) a retrofit for which a rebate is provided under the
Gold Star Home Energy Retrofit Program; and
(v) is not part of an energy savings measure described in
paragraphs (1) through (5) in subsection (b) for which the
homeowner received or will receive contracting services; and
(B) educational material on proper installation of the
product is provided to the homeowner, including material on
air sealing while insulating.
(2) Amount.--A rebate under this subsection shall be
awarded in an amount equal to 50 percent of the total cost of
the products described in paragraph (1), but not to exceed
$250 per home.
[[Page S4535]]
(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 104, the
Secretary shall provide reimbursement to the rebate
aggregator for reduced-cost energy-efficiency measures
installed in a home, if--
(1) the measures undertaken for the retrofit are--
(A) eligible measures described on the list established
under subsection (b);
(B) installed properly in accordance with applicable
technical specifications; and
(C) installed by a qualified contractor;
(2) the amount of the rebate does not exceed the maximum
amount described in subsection (d)(4);
(3) not less than--
(A) 20 percent of the retrofits performed by each qualified
contractor under this section are randomly subject to a
third-party field verification of all work associated with
the retrofit by a quality assurance provider; or
(B) in the case of qualified contractor that uses a
certified workforce, 10 percent of the retrofits performed
under this section are randomly subject to a third-party
field verification of all work associated with the retrofit
by a quality assurance provider; and
(4)(A) the installed measures will be brought into
compliance with the specifications and quality standards for
the Home Star Retrofit Rebate Program, by the installing
qualified contractor, at no additional cost to the homeowner,
not later than 14 days after the date of notification of a
defect, if a field verification by a quality assurance
provider finds that corrective work is needed;
(B) a subsequent quality assurance visit is conducted to
evaluate the remedy not later than 7 days after notification
by the contractor that the defect has been corrected; and
(C) notification of disposition of the visit occurs not
later than 7 days after the date of that visit.
(g) 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. 107. 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 Rebate.--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 104, 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 paragraph (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.
[[Page S4536]]
SEC. 108. 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 title;
(5) coordination with existing residential retrofit
programs and infrastructure development to assist deployment
of the Home Star program;
(6) assisting in the delivery of services to rental units;
and
(7) the costs of carrying out the responsibilities of the
State or Indian tribe under the Silver Star Home Energy
Retrofit Program and the Gold Star Home Energy Retrofit
Program.
(b) 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 115.
(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 title, 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 title 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 title
to enhance and extend existing programs; and
(B) seek to enhance and extend existing programs by
coordinating with administrators of the programs.
SEC. 109. 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 title, 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; and
(D) 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. 110. 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
title.
(b) Contents.--The report shall include a description of--
(1) the energy savings produced as a result of this title;
(2) the direct and indirect employment created as a result
of the programs supported by the funds provided under this
title;
(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 title
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 title; 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. 111. ADMINISTRATION.
(a) In General.--Subject to section 115(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 title.
(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 title.
(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 title.
(e) Contracting.--In carrying out this title, 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
[[Page S4537]]
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.
(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, after not less than 30 days public
notice, prospectively 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. 112. TREATMENT OF REBATES.
(a) In General.--For purposes of the Internal Revenue Code
of 1986, rebates received for eligible measures under this
title--
(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, 25D, or 25E 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,
25D, or 25E 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 102(b)(1)(A)(iii).
SEC. 113. PENALTIES.
(a) In General.--It shall be unlawful for any person to
violate this title (including any regulation issued under
this title), other than a violation as the result of a
clerical error.
(b) Civil Penalty.--Any person who commits a violation of
this title 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
title.
(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 title.
(d) Fraud.--In addition to any civil penalty, any person
who commits a fraudulent violation of this title shall be
subject to criminal prosecution.
SEC. 114. 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 106 and 107; 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 for Financing Programs.--Section 1705 of
the Energy Policy Act of 2005 (42 U.S.C. 16516) is amended--
(1) in subsection (a), by adding at the end the following:
``(4) Energy efficiency projects, including projects to
retrofit residential, commercial, and industrial buildings,
facilities, and equipment, including financing programs that
finance the retrofitting of residential, commercial, and
industrial buildings, facilities, and equipment.''.
(2) by redesignating subsection (e) as subsection (f); and
[[Page S4538]]
(3) by inserting after subsection (d) the following:
``(e) Credit Support for Financing Programs.--
``(1) In general.--In the case of programs that finance the
retrofitting of residential, commercial, and industrial
buildings, facilities, and equipment described in subsection
(a)(4), the Secretary may--
``(A) offer loan guarantees for portfolios of debt
obligations; and
``(B) purchase or make commitments to purchase portfolios
of debt obligations.
``(2) Term.--Notwithstanding section 1702(f), the term of
any debt obligation that receives credit support under this
subsection shall require full repayment over a period not to
exceed the lesser of--
``(A) 30 years; and
``(B) the projected weighted average useful life of the
measure or system financed by the debt obligation or
portfolio of debt obligations (as determined by the
Secretary).
``(3) Underwriting.--The Secretary may--
``(A) delegate underwriting responsibility for portfolios
of debt obligations under this subsection to financial
institutions that meet qualifications determined by the
Secretary; and
``(B) determine an appropriate percentage of loans in a
portfolio to review in order to confirm sound underwriting.
``(4) Administration.--Subsections (c) and (d)(3) of
section 1702 and subsection (c) of this section shall not
apply to loan guarantees made under this subsection.''.
(j) Termination of Effectiveness.--The authority provided
by this section and the amendments made by this section
terminates effective on the date that is 2 years after the
date of enactment of this Act.
SEC. 115. FUNDING.
(a) Authorization of Appropriations.--
(1) In general.--Subject to subsection (j), there is
authorized to be appropriated to carry out this title
$5,000,000,000 for the period of fiscal years 2010 through
2012.
(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 108.
(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
(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 title.
(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
title.
(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 title.
(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 title 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.--
(1) In general.--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), $2,751,000,000 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.
(2) Products purchased without installation services.--Of
the amounts made available for the Silver Star Home Energy
Retrofit Program under this section, not more than
$250,000,000 shall be made available for rebates under
section 106(e).
(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), $1,349,000,000
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) Review and analysis.--
(A) 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 title.
(B) Rental units.--Not later than 120 days after the date
of enactment of this Act, the Secretary shall perform a
review and analysis, with input and review from the Secretary
of Housing and Urban Development, of the procedures for
delivery of services to rental units.
(2) Adjustment.--The Secretary may allocate technical
assistance funding to assist States that, as determined by
the Secretary--
(A) have not sufficiently benefitted from the Home Star
Retrofit Rebate Program; or
(B) in which rental units have not been adequately served.
(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 title in
accordance with section 114.
TITLE II--PERFORMANCE BASED ENERGY IMPROVEMENT TAX CREDITS
SEC. 201. PERFORMANCE BASED ENERGY IMPROVEMENTS FOR
NONBUSINESS PROPERTY.
(a) In General.--Subpart A of part IV of subchapter A of
chapter 1 of the Internal Revenue Code of 1986 is amended by
inserting after section 25D the following new section:
``SEC. 25E. PERFORMANCE BASED ENERGY IMPROVEMENTS.
``(a) In General.--In the case of an individual, there
shall be allowed as a credit against the tax imposed by this
chapter for the taxable year an amount equal to 50 percent of
the amount of qualified home energy efficiency expenditures
paid or incurred by the taxpayer during the taxable year.
``(b) Limitations.--
``(1) Dollar limitation.--
``(A) In general.--The amount of the credit allowed under
subsection (a) with respect to any individual for any taxable
year shall not exceed the amount determined under
subparagraph (B) with respect to the principal residence of
such individual.
``(B) Amount determined.--
``(i) In general.--Subject to clause (iv), the amount
determined under this subparagraph is the base amount
increased by the amount determined under clause (iii).
``(ii) Base amount.--For purposes of this subparagraph, the
base amount is--
``(I) $3,000, in the case of a residence the construction
of which is completed before January 1, 2000, and
``(II) $2,000, in the case of a residence the construction
of which is completed after December 31, 1999.
``(iii) Increase amount.--The amount determined under this
clause is--
``(I) in the case of a residence described in clause
(ii)(I) which has a rating system score equal to the rating
system score which corresponds to the IECC Standard Reference
Design for a home of the size and in the climate zone of such
residence, $1,000, and
[[Page S4539]]
``(II) in the case of any residence with a rating system
score which is lower than that which corresponds to such IECC
Standard Reference Design by not less than 5 points, $500 for
each 5 points by which the rating system score which
corresponds to such IECC Standard Reference Design exceeds
the rating system score of such residence (in addition to the
amount provided under clause (i), if applicable).
``(iv) Limitation.--In no event shall the amount determined
under this subparagraph exceed $8,000 with respect to any
individual.
``(2) Limitation based on amount of tax.--In the case of
taxable years to which section 26(a)(2) does not apply, the
credit allowed under subsection (a) for any taxable year
shall not exceed the excess of--
``(A) the sum of the regular tax liability (as defined in
section 26(b)) plus the tax imposed by section 55, over
``(B) the sum of the credits allowable under this subpart
(other than this section and sections 23, 24, and 25B) and
section 27 for the taxable year.
``(c) Qualified Home Energy Efficiency Expenditures.--For
purposes of this section--
``(1) In general.--The term `qualified home energy
efficiency expenditures' means any amount paid or incurred
for a qualified whole home energy efficiency retrofit,
including the cost of audit diagnostic procedures, of a
principal residence of the taxpayer which is located in the
United States.
``(2) Qualified whole home energy efficiency retrofit.--
``(A) In general.--The term `qualified whole home energy
efficiency retrofit' means a retrofit of an existing
residence if, after such retrofit, such residence--
``(i) has a rating system score of not greater than--
``(I) 100, determined under the HERS Index, in the case of
a residence the construction of which is completed before
January 1, 2000, and
``(II) the rating system score which corresponds to the
IECC Standard Reference Design for a home of the size and in
the climate zone of such residence, in the case of a
residence the construction of which is completed after
December 31, 1999, or
``(ii) achieves a degree of energy efficiency improvement
which is equivalent to the standard applicable to such
residence under clause (i), as determined by the Secretary.
For purposes of the preceding sentence, the HERS Index is the
HERS Index established by the Residential Energy Services
Network, as in effect on January 1, 2011.
``(B) Accreditation rule.--A retrofit shall not be treated
as a qualified whole home energy efficiency retrofit unless
such retrofit is conducted by a company which is accredited
by the Building Performance Institute, or which fulfills an
equivalent standard as determined by the Secretary.
``(C) Determination of rating system score or equivalent.--
``(i) In general.--Subject to clause (ii), the rating
system score of a residence, or the equivalent described in
subparagraph (A)(ii), shall be determined by an auditor or
rater certified by the Residential Energy Services Network or
the Building Performance Institute.
``(ii) Secretarial determination.--At the discretion of the
Secretary, the Secretary may, in consultation with the
Secretary of Energy, determine an alternative standard for
certification of an auditor or rater for purposes of
determining the rating system score (or equivalent described
in subparagraph (A)(ii)) of a residence. If the Secretary
establishes such an alternative standard, clause (i) shall
cease to apply unless the Secretary determines otherwise.
``(D) Regulations.--Not later than December 31, 2011, in
consultation with the Secretary, the Secretary of Energy
shall prescribe regulations which specify the costs with
respect to energy improvements which may be taken into
account under this paragraph as part of a qualified whole
home energy efficiency retrofit.
``(3) No double benefit.--
``(A) In general.--No credit shall be allowed under this
section for any taxable year in which the taxpayer elects the
credit under section 25C.
``(B) No double benefit for certain expenditures.--The term
`qualified home energy efficiency expenditures' shall not
include any expenditure for which a deduction or credit is
otherwise allowed to the taxpayer under this chapter for the
taxable year or with respect to which the taxpayer receives
any Federal rebate.
``(4) Principal residence.--The term `principal residence'
has the same meaning as when used in section 121, except
that--
``(A) no ownership requirement shall be imposed, and
``(B) the period for which a building is treated as used as
a principal residence shall also include the 60-day period
ending on the 1st day on which it would (but for this
subparagraph) first be treated as used as a principal
residence.
``(d) Rating System Score.--For purposes of this section--
``(1) In general.--Subject to paragraph (2), the rating
system score shall be the score assigned under the HERS Index
established by the Residential Energy Services Network.
``(2) Secretarial determination.--At the discretion of the
Secretary, the Secretary may, in consultation with the
Secretary of Energy, determine an alternative rating system
(including an alternative system based on the HERS Index
established by the Residential Energy Services Network). If
the Secretary establishes such an alternative rating system,
the rating system score with respect to any residence shall
be the score assigned under such alternative rating system.
``(e) IECC Standard Reference Design.--
``(1) In general.--The term `IECC Standard Reference
Design' means the Standard Reference Design determined under
the International Energy Conservation Code in effect for the
taxable year in which the credit under this section is
determined.
``(2) Limitation to residences constructed after effective
date of most recent code.--No credit shall be allowed under
this section with respect to a principal residence the
construction of which is completed after the effective date
of the International Energy Conservation Code in effect for
the taxable year for which such credit would otherwise be
determined.
``(f) Special Rules.--For purposes of this section, rules
similar to the rules under paragraphs (4), (5), (6), (7), and
(8) of section 25D(e) and section 25C(e)(2) shall apply.
``(g) Basis Adjustments.--For purposes of this subtitle, if
a credit is allowed under this section with respect to any
expenditure with respect to any property, the increase in the
basis of such property which would (but for this subsection)
result from such expenditure shall be reduced by the amount
of the credit so allowed.
``(h) Election Not To Claim Credit.--This section shall not
apply to a taxpayer for any taxable year if such taxpayer
elects to have this section not apply for such taxable year.
``(i) Termination.--This section shall not apply with
respect to any costs paid or incurred after December 31,
2013.''.
(b) Conforming Amendments.--
(1) Section 26(a)(1) of the Internal Revenue Code of 1986
is amended by inserting ``25E,'' after ``25D''.
(2) Section 1016(a) of such Code is amended by striking
``and'' at the end of paragraph (36), by striking the period
at the end of paragraph (37) and inserting ``, and'', and by
adding at the end the following new paragraph:
``(38) to the extent provided in section 25E(g).''.
(3) Section 6501(m) of such Code is amended by inserting
``25E(h),'' after ``section''.
(4) The table of sections for subpart A of part IV of
subchapter A chapter 1 of such Code is amended by inserting
after the item relating to section 25D the following new
item:
``Sec. 25E. Performance based energy improvements.''.
(c) Effective Date.--The amendments made by this section
shall apply to amounts paid or incurred in taxable years
beginning after December 31, 2010.
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