[Congressional Record Volume 160, Number 69 (Thursday, May 8, 2014)]
[Senate]
[Pages S2879-S2886]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 3045. Mr. MENENDEZ submitted an amendment intended to be proposed 
by him to the bill S. 2262, to promote energy savings in residential 
buildings and industry, and for other purposes; which was ordered to 
lie on the table; as follows:

       On page 78, between lines 8 and 9, insert the following:

     SEC. 30_. RELEASE OF REPORT ON ENERGY AND COST SAVINGS IN 
                   NONBUILDING APPLICATIONS.

       Not later than 15 days after the date of enactment of this 
     Act, the Secretary and the Secretary of Defense shall jointly 
     publish on a public website and otherwise make available to 
     the public the report on the results of the study of energy 
     and cost savings in nonbuilding applications required under 
     section 518(b) of the Energy Independence and Security Act of 
     2007 (Public Law 110-140; 121 Stat. 1660).
                                 ______
                                 
  SA 3046. Mr. ENZI (for himself, Mr. Thune, and Mr. Barrasso) 
submitted an amendment intended to be proposed by him to the bill S. 
2262, to promote energy savings in residential buildings and industry, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       At the beginning of title V, add the following:

     SEC. 5____. REGIONAL HAZE PROGRAM.

       (a) In General.--Notwithstanding any other provision of 
     law, the disapproval, in whole or in part, by the 
     Administrator of the Environmental Protection Agency of a 
     State regional haze implementation plan addressing any 
     regional haze regulation of the Environmental Protection 
     Agency (including the regulations described in sections 
     51.308 and 51.309 of title 40, Code of Federal Regulations 
     (or successor regulations)) shall not be valid if--
       (1) the Administrator fails to demonstrate using the best 
     available science that a Federal implementation plan 
     governing a specific unit, when compared to the State plan, 
     results in at least a 1.0 deciview improvement over the State 
     plan in any single class I area (as classified under section 
     162 of the Clean Air Act (42 U.S.C. 7472)); or
       (2) implementation of the Federal implementation plan, when 
     compared to the State plan, will result in an economic cost 
     of greater than $100,000,000 in any fiscal year or 
     $300,000,000 in the aggregate over the cost of the State 
     plan.
       (b) Retroactive Application.--This section applies to any 
     disapproval by the Administrator of the Environmental 
     Protection Agency of a State regional haze implementation 
     plan that occurs after January 1, 2010.
                                 ______
                                 
  SA 3047. Mr. UDALL of Colorado (for himself, Mr. Begich, and Ms. 
Heitkamp) submitted an amendment intended to be proposed by him to the 
bill S. 2262, to promote energy savings in residential buildings and 
industry, and for other purposes; which was ordered to lie on the 
table; as follows:

       At the beginning of title V, insert the following:

     SEC. 5__. AUTHORIZATION TO EXPORT NATURAL GAS.

       (a) Decision Deadline.--The Secretary of Energy shall issue 
     a decision on any application for authorization to export 
     natural gas under section 3 of the Natural Gas Act (15 U.S.C. 
     717b) not later than 90 days after the later of--
       (1) the end of the comment period for the decision as set 
     forth in the applicable notice published in the Federal 
     Register; or
       (2) the date of enactment of this Act.
       (b) Judicial Action.--
       (1) In general.--The United States Court of Appeals for the 
     circuit in which the export facility will be located pursuant 
     to an application described in subsection (a) shall have 
     original and exclusive jurisdiction over any civil action for 
     the review of --
       (A) an order issued by the Secretary of Energy with respect 
     to the application; or
       (B) the failure of the Secretary of Energy to issue a 
     decision on the application.
       (2) Order.--If the Court in a civil action described in 
     paragraph (1) finds that the Secretary of Energy has failed 
     to issue a decision on the application as required under 
     subsection (a), the Court shall order the Secretary of Energy 
     to issue the decision not later than 30 days after the order 
     of the Court.
       (3) Expedited consideration.--The Court shall--
       (A) set any civil action brought under this subsection for 
     expedited consideration; and
       (B) set the matter on the docket as soon as practicable 
     after the filing date of the initial pleading.
                                 ______
                                 
  SA 3048. Mr. HARKIN submitted an amendment intended to be proposed by 
him to the bill S. 2262, to promote energy savings in residential 
buildings and industry, and for other purposes; which was ordered to 
lie on the table; as follows:

       Strike section 501 and insert the following:

     SEC. 5__. COMMUNITY ENERGY PROGRAM.

       Part D of title III of the Energy Policy and Conservation 
     Act is amended by inserting after section 364 (42 U.S.C. 
     6324) the following:

     ``SEC. 364A. COMMUNITY ENERGY PROGRAM.

       ``(a) In General.--The Secretary, acting in conjunction 
     with State energy offices, shall establish and carry out a 
     community energy program under which the Secretary shall make 
     grants to eligible entities to support community energy 
     systems improvement projects, including projects involving 
     energy assessments, development of energy system improvement 
     strategies, and implementation of those strategies so as to 
     reduce energy usage and increase energy supplied from 
     renewable resources.
       ``(b) Eligible Entities.--To be eligible to receive a grant 
     under this section, an entity shall be--
       ``(1) a municipality (including a town or city or other 
     local unit of government); or
       ``(2) a nonprofit institutional entity (including an 
     institution of higher education, hospital, or school system).
       ``(c) Application Requirements.--To be eligible to receive 
     a grant under this section, an eligible entity shall--
       ``(1) provide to the Secretary evidence that the entity has 
     a commitment to improving the energy systems of the entity;
       ``(2) encourage broad citizen participation in the project 
     carried out with the grant;
       ``(3) submit to the Secretary an application at such time, 
     in such manner, and containing such information as the 
     Secretary may require; and
       ``(4) meet such other eligibility criteria as are 
     established by the Secretary.
       ``(d) Types of Grants.--The Secretary shall provide to 
     eligible entities under this section--
       ``(1) planning and assessment grants to support--
       ``(A) the assessment of current energy types and uses of 
     the eligible entity;
       ``(B) the identification of potential alternative energy 
     resources to serve the energy needs of the eligible entity, 
     including energy efficiency measures and renewable energy 
     systems; and
       ``(C) the development of energy improvement project plans 
     that specify energy efficiency measures to be adopted and 
     renewable energy systems to be installed; and
       ``(2) implementation project grants to support the 
     implementation of energy system improvements, regardless of 
     whether the eligible entities received planning and 
     assessment grants for the improvements under paragraph (1).
       ``(e) Use of Grants.--
       ``(1) Planning and assessment grants.--An eligible entity 
     may use a planning and assessment grant provided under 
     subsection (d)(1)--
       ``(A) to assess energy usage across the eligible entity, 
     including energy used in--
       ``(i) public and private buildings and facilities;
       ``(ii) commercial and industrial applications; and
       ``(iii) transportation; and
       ``(B) to formulate energy improvement plans that describe 
     specific energy efficiency measures to be adopted and 
     specific renewable energy systems to be installed, including 
     identification of funding sources and implementation 
     processes.
       ``(2) Implementation project grants.--An eligible entity 
     may use an implementation grant provided under subsection 
     (d)(2) to implement energy efficiency measures, or install 
     renewable energy systems, in support of energy improvement 
     plans.
       ``(f) Federal Share.--The Federal cost of carrying out a 
     project under this section

[[Page S2880]]

     shall not exceed 50 percent of total project costs.
       ``(g) Administration.--The Secretary shall establish 
     criteria for program participation and evaluation of 
     proposals for projects to be carried out under this section, 
     including criteria based on--
       ``(1) energy savings; and
       ``(2) reductions in oil consumption.
       ``(h) Technical Assistance.--
       ``(1) In general.--To assist eligible entities in carrying 
     out projects under this section, the Secretary may--
       ``(A) provide training and technical assistance and support 
     to entities that receive grants under this section; and
       ``(B) support regional conferences to enable entities to 
     share information on energy assessment, planning, and 
     implementation activities.
       ``(2) Evaluation program.--In carrying out this section, 
     the Secretary shall develop and support use of an evaluation 
     program that measures and evaluates the energy and economic 
     impacts of projects carried out under this section.
       ``(i) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section--
       ``(1) $10,000,000 for fiscal year 2014; and
       ``(2) $20,000,000 for each of fiscal years 2015 through 
     2018.''.

     SEC. 5___. OFFSET.

       Section 422(f) of the Energy Independence and Security Act 
     of 2007 (42 U.S.C. 17082(f)) is amended--
       (1) in paragraph (3), by striking ``and'' after the 
     semicolon at the end; and
       (2) by striking paragraph (4) and inserting the following:
       ``(4) $200,000,000 for fiscal year 2013;
       ``(5) $190,000,000 for fiscal year 2014;
       ``(6) $130,000,000 for fiscal year 2015; and
       ``(7) $80,000,000 for each of fiscal years 2016 through 
     2018.''.
                                 ______
                                 
  SA 3049. Mrs. BOXER (for herself and Mr. Bennet) submitted an 
amendment intended to be proposed by her to the bill S. 2262, to 
promote energy savings in residential buildings and industry, and for 
other purposes; which was ordered to lie on the table; as follows:

       At the end, add the following:

                TITLE VI--PACE ASSESSMENT PROTECTION ACT

     SEC. 601. SHORT TITLE.

       This title may be cited as the ``PACE Assessment Protection 
     Act''.

     SEC. 602. PURPOSE.

       It is the purpose of this title to ensure that those PACE 
     programs which incorporate prudent programmatic safeguards to 
     protect the interest of mortgage holders and property owners 
     remain viable as a potential avenue for States and local 
     governments to achieve the many public benefits associated 
     with energy efficiency, water efficiency, and renewable 
     energy retrofits. In addition, it is essential that the power 
     and authority of State and local governments to exercise 
     their longstanding and traditional powers to levy taxes for 
     public purposes not be impeded.

     SEC. 603. DEFINITIONS.

       For purposes of this title the following definitions apply:
       (1) Clean energy improvements.--The term ``clean energy 
     improvements'' means any system on privately owned property 
     for producing electricity for, or meeting heating, cooling, 
     or water heating needs of the property, using renewable 
     energy sources, combined heat and power systems, or energy 
     systems using wood biomass (but not construction and 
     demolition waste) or natural gas. Such improvements include 
     solar photovoltaic, solar thermal, wood biomass, wind, and 
     geothermal systems. Such term includes the reasonable costs 
     of a study undertaken by a property owner to analyze the 
     feasibility of installing any of the improvements described 
     in this paragraph and the cost of a warranty or insurance 
     policy for such improvements.
       (2) Energy conservation and efficiency improvements.--The 
     term ``energy conservation and efficiency improvements'' 
     means measures to reduce consumption, through conservation or 
     more efficient use, of electricity, fuel oil, natural gas, 
     propane, or other forms of energy by the property, including 
     air sealing, installation of insulation, installation of 
     heating, cooling, or ventilation systems, building 
     modification to increase the use of daylighting, replacement 
     of windows, installation of energy controls or energy 
     recovery systems, installation of building management 
     systems, and installation of efficient lighting equipment, 
     provided that such improvements are permanently affixed to 
     the property. Such term includes the reasonable costs of an 
     audit undertaken by a property owner to identify potential 
     energy savings that could be achieved through installation of 
     any of the improvements described in this paragraph.
       (3) Enterprise.--The term ``enterprise'' means--
       (A) the Federal National Mortgage Association and any 
     affiliate thereof; and
       (B) the Federal Home Loan Mortgage Corporation and any 
     affiliate thereof.
       (4) Local government.--The term ``local government'' 
     includes counties, cities, boroughs, towns, parishes, 
     villages, districts, and other political subdivisions 
     authorized under State laws to establish PACE programs.
       (5) Non-residential property.--The term ``non-residential 
     property'' means private property that is--
       (A) not used for residential purposes; or
       (B) residential property with 5 or more residences.
       (6) PACE agreement.--The term ``PACE agreement'' means an 
     agreement between a local government and a property owner 
     detailing the terms of financing for a PACE improvement.
       (7) PACE assessment.--The term ``PACE assessment'' means a 
     tax or assessment levied by a local government to provide 
     financing for PACE improvements.
       (8) PACE improvements.--The term ``PACE improvements'' 
     means qualified clean energy improvements, qualified energy 
     conservation and efficiency improvements, and qualified water 
     conservation and efficiency improvements.
       (9) PACE lien.--The term ``PACE lien'' means a lien 
     securing a PACE assessment, which may be senior to the lien 
     of pre-existing purchase money mortgages on the same property 
     subject to the PACE lien.
       (10) PACE program.--The term ``PACE program'' means a 
     program implemented by a local government under State law to 
     provide financing for PACE improvements by levying PACE 
     assessments.
       (11) Property owner.--The term ``property owner'' means the 
     owner of record of real property that is subject to a PACE 
     assessment, whether such property is zoned or used for 
     residential, commercial, industrial, or other uses.
       (12) Qualified.--The term ``qualified'' means, with respect 
     to PACE improvements, that the improvements meet the criteria 
     specified in section 605.
       (13) Residential property.--The term ``residential 
     property'' means a property with up to 4 private residences.
       (14) Water conservation and efficiency improvements.--The 
     term ``water conservation and efficiency improvements'' means 
     measures to reduce consumption, through conservation or more 
     efficient use of water by the property, including 
     installation of low-flow toilets and showerheads, 
     installation of timer or timing system for hot water heaters, 
     and installation of rain catchment systems.

     SEC. 604. TREATMENT OF PACE PROGRAMS BY FNMA AND FHLMC.

       (a) Lender Guidance.--The Director of the Federal Housing 
     Finance Agency, acting in the Director's general supervisory 
     capacity, shall direct the Federal National Mortgage 
     Association and the Federal Home Loan Mortgage Corporation 
     to--
       (1) issue guidance, within 30 days after the date of 
     enactment of this title, providing that the levy of a PACE 
     assessment and the creation of a PACE lien do not constitute 
     a default on any loan secured by a uniform instrument of 
     Federal National Mortgage Association or Federal Home Loan 
     Mortgage Corporation and do not trigger the exercise of 
     remedies with respect to any provision of such uniform 
     security instrument if the PACE assessment and the PACE lien 
     meet the requirements of section 605;
       (2) rescind any prior issued guidance or Selling and 
     Servicing Guides that are inconsistent with the provisions of 
     paragraph (1); and
       (3) take all such other actions necessary to effect the 
     purposes of this title.
       (b) Prohibition of Discrimination.--The Director of the 
     Federal Housing Finance Agency, the Comptroller of the 
     Currency, the Federal National Mortgage Association, the 
     Federal Home Loan Mortgage Corporation, the Federal Deposit 
     Insurance Corporation, the National Credit Union 
     Administration, the Board of Governors of the Federal Reserve 
     System, and all Federal agencies and entities chartered or 
     otherwise established under Federal law shall not 
     discriminate in any manner against States or local 
     governments implementing or participating in a PACE program, 
     or against any property that is obligated to pay a PACE 
     assessment or is subject to a PACE lien, including, without 
     limitation, by--
       (1) prohibiting lending within such jurisdiction or 
     requiring more restrictive underwriting criteria for 
     properties within such jurisdiction;
       (2) except for the escrowing of funds as permitted by 
     section 605(h)(2), requiring payment of PACE assessment 
     amounts that are not due or that are not delinquent; or
       (3) applying more restrictive underwriting criteria to any 
     property that is obligated to pay a PACE assessment and is 
     subject to a PACE lien than any such entity would apply to 
     such property in the event that such property were subject to 
     a State or municipal tax or assessment that was not a PACE 
     assessment.

     SEC. 605. PACE PROGRAMS ELIGIBLE FOR PROTECTION.

       (a) In General.--A PACE program, and any PACE assessment 
     and PACE lien related to such program, are entitled to the 
     protections of this title only if the program meets all of 
     the requirements under this section at the time of its 
     establishment, or, in the case of any PACE program in effect 
     upon the date of the enactment of this title, not later than 
     60 days after such date of enactment.
       (b) Reserve Funds.--
       (1) Establishment.--A PACE program shall enroll or 
     otherwise contribute to a reserve fund maintained by a State 
     or local government authority, a purpose of which shall be to 
     make payments to reimburse PACE programs for any amounts a 
     program

[[Page S2881]]

     is required to pay, and has demonstrated has been paid, 
     pursuant to paragraph (3).
       (2) Capital sufficiency.--A reserve fund in which a PACE 
     program is enrolled or otherwise contributing to shall 
     maintain a minimum capital level in such amount as shall be 
     sufficient to ensure that an enterprise will not be adversely 
     impacted by the PACE liens securing the PACE assessments held 
     by the PACE program.
       (3) Required payments to enterprises.--A PACE program shall 
     pay to an enterprise such amounts as are necessary to cover--
       (A) in any foreclosure in connection with a residential 
     property, any loss incurred by such enterprise resulting from 
     the payment of any PACE assessment paid while the enterprise 
     is in possession of the property; and
       (B) in any forced sale for unpaid taxes or special 
     assessments in connection with a residential property, any 
     loss incurred by such enterprise resulting from PACE 
     assessments being paid before the payment of any outstanding 
     balance on the mortgage owed to the enterprise.
       (4) Applicability only to residential pace programs.--This 
     subsection, and the requirements of this subsection, shall 
     only apply with respect to residential PACE programs.
       (c) Consumer Protections Applicable to Residential 
     Property.--A PACE program shall provide, with respect to 
     residential property, for the following:
       (1) Property owner agreements.--
       (A) PACE assessment.--The property owner shall agree in 
     writing to a PACE assessment, either pursuant to a PACE 
     agreement or by voting in the manner specified by State law. 
     In the case of any property with multiple owners, each owner 
     or the owner's authorized representative shall execute a PACE 
     agreement or vote in the manner specified by State law, as 
     applicable.
       (B) Payment schedule.--The property owner shall agree to a 
     payment schedule that identifies the term over which PACE 
     assessment installments will be due, the frequency with which 
     PACE assessment installments will be billed and amount of 
     each installment, and the annual amount due on the PACE 
     assessment. Upon full payment of the amount of the PACE 
     assessment, including all outstanding interest and charges 
     and any penalties that may become due, the local government 
     shall provide the participating property owner with a written 
     statement certifying that the PACE assessment has been paid 
     in full and the local government shall also satisfy all 
     requirements of State law to extinguish the PACE lien.
       (2) Disclosures by local government.--The local government 
     shall disclose to the participating property owner the costs 
     and risks associated with participating in the PACE program, 
     including risks related to their failure to pay PACE 
     assessments and the risk of enforcement of PACE liens. The 
     local government shall disclose to the property owner the 
     effective interest rate of the PACE assessment, including all 
     program fees. The local government shall clearly and 
     conspicuously provide the property owner the right to rescind 
     his or her decision to enter into a PACE assessment, within 3 
     days of the original transaction.
       (3) Notice to lienholders.--Before entering into a PACE 
     agreement or voting in favor of a PACE assessment, the 
     property owner or the local government shall provide to the 
     holders of any existing mortgages on the property written 
     notice of the terms of the PACE assessment.
       (4) Confidentiality.--Any personal financial information 
     provided by a property owner to a local government or an 
     entity administering a PACE program on behalf of a local 
     government shall comply with applicable local, State, and 
     Federal laws governing the privacy of the information.
       (d) Requirements Applicable Only to Non-Residential 
     Property.--A PACE program shall provide, with respect to non-
     residential property, for the following:
       (1) Authorization by lienholders.--Before entering into a 
     PACE agreement with a local government or voting in favor of 
     PACE assessments in the manner specified by State law, the 
     property owner shall obtain written authorization from the 
     holders of the first mortgage on the property.
       (2) PACE agreement.--
       (A) Terms.--The local government and the owner of the 
     property to which the PACE assessment applies at the time of 
     commencement of assessment shall enter into a written PACE 
     agreement addressing the terms of the PACE improvement. In 
     the case of any property with multiple owners, the PACE 
     agreement shall be signed by all owners or their legally 
     authorized representative or representatives.
       (B) PACE improvements.--The property owner shall contract 
     for PACE improvements, purchase materials to be used in 
     making such improvements, or both, and upon submission of 
     documentation required by the local government, the local 
     government shall disburse funds to the property owner in 
     payment for the PACE improvements or materials used in making 
     such improvements.
       (C) Payment schedule.--The PACE agreement shall include a 
     payment schedule showing the term over which payments will be 
     due on the assessment, the frequency with which payments will 
     be billed and amount of each payment, and the annual amount 
     due on the assessment. Upon full payment of the amount of the 
     assessment, including all outstanding interest and charges 
     and any penalties that may become due, the local government 
     shall provide the participating property owner with a written 
     statement certifying that the assessment has been paid in 
     full and the local government shall also satisfy all 
     requirements of State law to extinguish the PACE lien.
       (3) Disclosures by local government.--The local government 
     shall disclose to the participating property owners the costs 
     and risks associated with participating in the program, 
     including risks related to their failure to make payments and 
     the risk of enforcement of PACE liens.
       (4) Confidentiality.--Any personal financial information 
     provided by a property owner to a local government or an 
     entity administering a PACE program on behalf of a local 
     government shall comply with applicable local, State, and 
     Federal laws governing the privacy of the information.
       (e) Public Notice of PACE Assessment.--The local government 
     shall file a public notice of the PACE assessment in a manner 
     sufficient to provide notice of the PACE assessment to 
     potential lenders and potential purchasers of the property. 
     The notice shall consist of the following statement or its 
     substantial equivalent: ``This property is subject to a tax 
     or assessment that is levied to finance the installation of 
     qualifying energy and water conservation and efficiency 
     improvements or clean energy improvements. The tax or 
     assessment is secured by a lien that is senior to all private 
     liens.''.
       (f) Eligibility of Residential Property Owners.--Before 
     levying a PACE assessment on a residential property, the 
     local government shall ensure that all of the following are 
     true with respect to the property:
       (1) All property taxes and any other public assessments are 
     current and have been current for 3 years or the property 
     owner's period of ownership, whichever period is shorter.
       (2) There are no involuntary liens, such as mechanics 
     liens, on the property in excess of $1,000.
       (3) No notices of default and not more than one instance of 
     property-based debt delinquency have been recorded during the 
     past 3 years or the property owner's period of ownership, 
     whichever period is shorter.
       (4) The property owner has not filed for or declared 
     bankruptcy in the previous 7 years.
       (5) The property owner is current on all mortgage debt on 
     the property.
       (6) The property owner or owners are the holders of record 
     of the property.
       (7) The property title is not subject to power of attorney, 
     easements, or subordination agreements restricting the 
     authority of the property owner to subject the property to a 
     PACE lien.
       (8) The property meets any geographic eligibility 
     requirements established by the PACE program.
     The local government may adopt additional criteria, 
     appropriate to PACE programs, for determining whether to 
     provide PACE financing to a property.
       (g) Qualifying Improvements and Qualifying Contractors for 
     Residential Properties.--PACE improvements for residential 
     properties shall be qualified if they meet the following 
     criteria:
       (1) Audit.--For clean energy improvements and energy 
     conservation and efficiency improvements, an audit or 
     feasibility study performed by a person who has been 
     certified as a building analyst by the Building Performance 
     Institute or as a Home Energy Rating System (HERS) Rater by a 
     Rating Provider accredited by the Residential Energy Services 
     Network (RESNET); or who has obtained other similar 
     independent certification shall have been commissioned by the 
     local government or the property owner and the audit or 
     feasibility study shall--
       (A) identify recommended energy conservation, efficiency, 
     and/or clean energy improvements and such recommended 
     improvements must include the improvements proposed to be 
     financed with the PACE assessment to the extent permitted by 
     law;
       (B) estimate the potential cost savings, useful life, 
     benefit-cost ratio, and simple payback or return on 
     investment for each improvement; and
       (C) provide the estimated overall difference in annual 
     energy costs with and without the recommended improvements.
     State law may provide that the cost of the audit and the cost 
     of a warranty covering the financed improvements may be 
     included in the total amount financed.
       (2) Affixed for useful life.--The local government shall 
     have determined the improvements are intended to be affixed 
     to the property for the entire useful life of the 
     improvements based on the expected useful lives of energy 
     conservation, efficiency, and clean energy measures approved 
     by the Department of Energy.
       (3) Qualified contractors.--The improvements must be made 
     by a contractor or contractors, determined by the local 
     government to be qualified to make the PACE improvements. A 
     local government may accept a designation of contractors as 
     qualified made by an electric or gas utility or another 
     appropriate entity. Any work requiring a license under 
     applicable law shall be performed by an individual holding 
     such license. A local government may elect to provide 
     financing for improvements made by the owner of the property, 
     but shall not permit the value of the owner's labor to be 
     included in the amount financed.
       (4) Disbursement of payments.--A local government must 
     require, prior to disbursement of final payments for the 
     financed improvements, submission by the property

[[Page S2882]]

     owner in a form acceptable to the local government of--
       (A) a document signed by the property-owner requesting 
     disbursement of funds;
       (B) a certificate of completion, certifying that 
     improvements have been installed satisfactorily; and
       (C) documentation of all costs to be financed and copies of 
     any required permits.
       (h) Financing Terms Applicable Only to Residential 
     Property.--A PACE program shall provide, with respect to 
     residential property, for the following:
       (1) Amount financed.--PACE improvements shall be financed 
     on terms such that the total energy and water cost savings 
     realized by the property owner and the property owner's 
     successors during the useful lives of the improvements, as 
     determined by the audit or feasibility study pursuant to 
     subsection (g)(1), are expected to exceed the total cost to 
     the property owner and the property owner's successors of the 
     PACE assessment. In determining the amount that may be 
     financed by a PACE assessment, the total amount of all 
     rebates, grants, and other direct financial assistance 
     received by the owner on account of the PACE improvements 
     shall be deducted from the cost of the PACE improvements.
       (2) PACE assessments.--The total amount of PACE assessments 
     for a property shall not exceed 10 percent of the estimated 
     value of the property. A property owner who escrows property 
     taxes with the holder of a mortgage on a property subject to 
     PACE assessment may be required by the holder to escrow 
     amounts due on the PACE assessment, and the mortgage holder 
     shall remit such amounts to the local government in the 
     manner that property taxes are escrowed and remitted.
       (3) Owner equity.--As of the effective date of the PACE 
     agreement or the vote required by State law, the property 
     owner shall have equity in the property of not less than 15 
     percent of the estimated value of the property calculated 
     without consideration of the amount of the PACE assessment or 
     the value of the PACE improvements.
       (4) Term of financing.--The maximum term of financing 
     provided for a PACE improvement may be 20 years. The term 
     shall in no case exceed the weighted average expected useful 
     life of the PACE improvement or improvements. Expected useful 
     lives used for all calculations under this paragraph shall be 
     consistent with the expected useful lives of energy 
     conservation and efficiency and clean energy measures 
     approved by the Department of Energy.
       (i) Collection and Enforcement.--A PACE program shall 
     provide that--
       (1) PACE assessments shall be collected in the manner 
     specified by State law;
       (2) notwithstanding any other provision of law, in the 
     event of a transfer of property ownership through 
     foreclosure, the transferring property owner may be obligated 
     to pay only PACE assessment installments that are due 
     (including delinquent amounts), along with any applicable 
     penalties and interest, except that before imposition of any 
     penalties or fees, the PACE program shall provide an 
     opportunity to any holder of a senior lien on the property to 
     assume payment of the PACE assessment;
       (3) PACE assessment installments that are not due may not 
     be accelerated by foreclosure except as provided by State 
     law; and
       (4) payment of a PACE assessment installment from the loss 
     reserve established for a PACE program shall not relieve a 
     participating property owner from the obligation to pay that 
     amount.

                                 ______
                                 
  SA 3050. Mr. COATS (for himself, Mr. Hoeven, Mr. Toomey, Mr. Vitter, 
Mr. Risch, Mr. Crapo, Mr. Hatch, Mr. Enzi, and Mr. Sessions) submitted 
an amendment intended to be proposed by him to the bill S. 2262, to 
promote energy savings in residential buildings and industry, and for 
other purposes; which was ordered to lie on the table; as follows:

       At the beginning of title V, insert the following:

     SEC. 5__. LIMITATION ON AUTHORITY TO ISSUE REGULATIONS UNDER 
                   THE SURFACE MINING CONTROL AND RECLAMATION ACT 
                   OF 1977.

       The Secretary of the Interior may not, before December 31, 
     2017, issue or approve any proposed or final regulation under 
     the Surface Mining Control and Reclamation Act of 1977 (30 
     U.S.C. 1201 et seq.) that would--
       (1) adversely impact employment in coal mines in the United 
     States;
       (2) cause a reduction in revenue received by the Federal 
     Government or any State, tribal, or local government, by 
     reducing through regulation the quantity of coal in the 
     United States that is available for mining;
       (3) reduce the quantity of coal available for domestic 
     consumption or for export;
       (4) designate any area as unsuitable for surface coal 
     mining and reclamation operations;
       (5) expose the United States to liability for taking the 
     value of privately owned coal through regulation; or
       (6) cause further time delays to permitting or increase 
     costs.
                                 ______
                                 
  SA 3051. Mr. JOHANNS submitted an amendment intended to be proposed 
by him to the bill S. 2262, to promote energy savings in residential 
buildings and industry, and for other purposes; which was ordered to 
lie on the table; as follows:

       At the end of title III, add the following:

     SEC. 3____. REPORT ON FEDERAL AGENCY FACILITIES.

       (a) In General.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary shall submit to the 
     Committee on Energy and Commerce of the House of 
     Representatives and the Committee on Energy and Natural 
     Resources of the Senate a report on energy use and energy 
     efficiency projects at the facilities occupied by each 
     Federal agency.
       (b) Contents.--The report required under subsection (a) 
     shall include--
       (1) an analysis of energy use at each facility occupied by 
     a Federal agency;
       (2) a list of energy audits that have been conducted at the 
     facilities described in paragraph (1);
       (3) a list of energy efficiency projects that have been 
     conducted at the facilities described in paragraph (1); and
       (4) a list of energy efficiency projects that could be 
     achieved through the use of a consistent and timely 
     mechanical insulation maintenance program and through the 
     upgrading of mechanical insulation at the facilities 
     described in paragraph (1).
                                 ______
                                 
  SA 3052. Mr. SANDERS (for himself, Mr. Wyden, Mr. King, and Mr. 
Casey) submitted an amendment intended to be proposed by him to the 
bill S. 2262, to promote energy savings in residential buildings and 
industry, and for other purposes; which was ordered to lie on the 
table; as follows:

       Strike section 501 and insert the following:

     SEC. 501. STATE RESIDENTIAL BUILDING ENERGY EFFICIENCY 
                   UPGRADES LOAN PILOT PROGRAM.

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

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

       ``(a) Definitions.--In this section:
       ``(1) Consumer-friendly.--The term `consumer-friendly', 
     with respect to a loan repayment approach, means a loan 
     repayment approach that--
       ``(A) emphasizes convenience for customers;
       ``(B) is of low cost to consumers; and
       ``(C) emphasizes simplicity and ease of use for consumers 
     in the billing process.
       ``(2) Eligible entity.--The term `eligible entity' means--
       ``(A) a State or territory of the United States; and
       ``(B) a tribal organization (as defined in section 4 of the 
     Indian Self-Determination and Education Assistance Act (25 
     U.S.C. 450b)).
       ``(3) Energy advisor program.--
       ``(A) In general.--The term `energy advisor program' means 
     any program to provide to owners or residents of residential 
     buildings advice, information, and support in the 
     identification, prioritization, and implementation of energy 
     efficiency and energy savings measures.
       ``(B) Inclusions.--The term `energy advisor program' 
     includes a program that provides--
       ``(i) interpretation of energy audit reports;
       ``(ii) assistance in the prioritization of improvements;
       ``(iii) assistance in finding qualified contractors;
       ``(iv) assistance in contractor bid reviews;
       ``(v) education on energy conservation and energy 
     efficiency;
       ``(vi) explanations of available incentives and tax 
     credits;
       ``(vii) assistance in completion of rebate and incentive 
     paperwork; and
       ``(viii) any other similar type of support.
       ``(4) Energy efficiency.--The term `energy efficiency' 
     means a decrease in homeowner or residential tenant 
     consumption of energy (including electricity and thermal 
     energy) that is achieved without reducing the quality of 
     energy services through--
       ``(A) a measure or program that targets customer behavior;
       ``(B) equipment;
       ``(C) a device; or
       ``(D) other material.
       ``(5) Energy efficiency upgrade.--
       ``(A) In general.--The term `energy efficiency upgrade' 
     means any project or activity--
       ``(i) the primary purpose of which is increasing energy 
     efficiency; and
       ``(ii) that is carried out on a residential building.
       ``(B) Inclusions.--The term `energy efficiency upgrade' 
     includes the installation or improvement of a renewable 
     energy facility for heating or electricity generation serving 
     a residential building carried out in conjunction with an 
     energy efficiency project or activity.
       ``(6) Program entity.--The term `program entity' means a 
     local government, utility, or other entity that carries out a 
     financing program under subsection (e)(2)(A) pursuant to a 
     contract or other agreement with an eligible entity.

[[Page S2883]]

       ``(7) Recipient household.--The term `recipient household' 
     means the owner or tenant of a residential building who 
     receives financing under this section for an energy 
     efficiency upgrade of the residential building.
       ``(8) Residential building.--
       ``(A) In general.--The term `residential building' means a 
     building used for residential purposes.
       ``(B) Inclusions.--The term `residential building' 
     includes--
       ``(i) a single-family residence;
       ``(ii) a multifamily residence composed not more than 4 
     units; and
       ``(iii) a mixed-use building that includes not more than 4 
     residential units.
       ``(b) Establishment of Program.--
       ``(1) In general.--The Secretary shall establish a program 
     under this part under which the Secretary shall make 
     available to eligible entities loans for the purpose of 
     establishing or expanding programs that provide to recipient 
     households financing for energy efficiency upgrades of 
     residential buildings.
       ``(2) Consultation.--In establishing the program under 
     paragraph (1), the Secretary shall consult, as the Secretary 
     determines to be appropriate, with stakeholders and the 
     public.
       ``(3) No requirement to participate.--No eligible entity 
     shall be required to participate in any manner in the program 
     established under paragraph (1).
       ``(4) Deadlines.--The Secretary shall--
       ``(A) not later than 1 year after the date of enactment of 
     the Energy Savings and Industrial Competitiveness Act of 
     2014, implement the program established under paragraph (1) 
     (including soliciting applications from eligible entities in 
     accordance with subsection (c)); and
       ``(B) not later than 2 years after the date of enactment of 
     the Energy Savings and Industrial Competitiveness Act of 
     2014, disburse the initial loans provided under this section.
       ``(c) Applications.--
       ``(1) In general.--To be eligible to receive a loan under 
     this section, an eligible entity shall submit to the 
     Secretary an application at such time, in such manner, and 
     containing such information as the Secretary may require.
       ``(2) Selection date.--Not later than 21 months after the 
     date of enactment of the Energy Savings and Industrial 
     Competitiveness Act of 2014, the Secretary shall select 
     eligible entities to receive the initial loans provided under 
     this section, in accordance with the requirements described 
     in paragraph (3).
       ``(3) Requirements.--In selecting eligible entities to 
     receive loans under this section, the Secretary shall--
       ``(A) to the maximum extent practicable, ensure--
       ``(i) that both innovative and established approaches to 
     the challenges of financing energy efficiency upgrades are 
     supported;
       ``(ii) that energy efficiency upgrades are conducted and 
     validated to comply with best practices for work quality, as 
     determined by the Secretary;
       ``(iii) regional diversity among eligible entities that 
     receive the loans, including participation by rural States 
     and small States;
       ``(iv) significant participation by families with income 
     levels at or below the median income level for the applicable 
     geographical region, as determined by the Secretary; and
       ``(v) the incorporation of an energy advisor program by, as 
     applicable--

       ``(I) eligible entities; or
       ``(II) program entities;

       ``(B) evaluate applications based primarily on--
       ``(i) the projected reduction in energy use, as determined 
     in accordance with such specific and commonly available 
     methodology as the Secretary shall establish, by regulation;
       ``(ii) the creditworthiness of the eligible entity; and
       ``(iii) the incorporation of measures for making the loan 
     repayment system for recipient households as consumer-
     friendly as practicable;
       ``(C) evaluate applications based secondarily on--
       ``(i) the extent to which the proposed financing program of 
     the eligible entity incorporates best practices for such a 
     program, as determined by the Secretary;
       ``(ii)(I) whether the eligible entity has created a plan 
     for evaluating the effectiveness of the proposed financing 
     program; and
       ``(II) whether that plan includes--

       ``(aa) a robust strategy for collecting, managing, and 
     analyzing data, as well as making the data available to the 
     public; and
       ``(bb) experimental studies, which may include 
     investigations of how human behavior impacts the 
     effectiveness of efficiency improvements;

       ``(iii) the extent to which Federal funds are matched by 
     funding from State, local, philanthropic, private sector, and 
     other sources;
       ``(iv) the extent to which the proposed financing program 
     will be coordinated and marketed with other existing or 
     planned energy efficiency or energy conservation programs 
     administered by--

       ``(I) utilities and rural cooperatives;
       ``(II) State, tribal, territorial, or local governments; or
       ``(III) community development financial institutions; and

       ``(v) such other factors as the Secretary determines to be 
     appropriate; and
       ``(D) not provide an advantage or disadvantage to 
     applications that include renewable energy in the program.
       ``(d) Administrative Provisions.--
       ``(1) Term.--The Secretary shall establish terms for loans 
     provided to eligible entities under this section--
       ``(A) in a manner that--
       ``(i) provides for a high degree of cost recovery; and
       ``(ii) ensures that, with respect to all loans provided to 
     or by eligible entities under this section, the loans are 
     competitive with, or superior to, other forms of financing 
     for similar purposes; and
       ``(B) subject to the condition that the term of a loan 
     provided to an eligible entity under this section shall not 
     exceed 35 years.
       ``(2) Interest rates.--
       ``(A) In general.--Subject to subparagraph (B), the 
     Secretary, at the discretion of the Secretary, shall charge 
     interest on a loan provided to an eligible entity under this 
     section at a fixed rate equal, or approximately equal, to the 
     interest rate charged on Treasury securities of comparable 
     maturity.
       ``(B) Leveraged loans.--The interest rate and other terms 
     of the loans provided to eligible entities under this section 
     shall be established in a manner that ensures that the total 
     amount of the loans is equal to not less than 20 times, and 
     not more than 50 times, an amount equivalent to 80 percent of 
     the amount appropriated for administrative and general 
     financial support costs pursuant to subsection (g)(2).
       ``(3) No penalty on early repayment.--The Secretary shall 
     not assess any penalty for early repayment by an eligible 
     entity of a loan provided under this section.
       ``(4) Return of unused portion.--As a condition of receipt 
     of a loan under this section, an eligible entity shall agree 
     to return to the general fund of the Treasury any portion of 
     the loan amount that is unused by the eligible entity within 
     a reasonable period after the date of receipt of the loan, as 
     determined by the Secretary.
       ``(e) Use of Funds.--
       ``(1) In general.--An eligible entity shall use a loan 
     provided under this section to establish or expand 1 or more 
     financing programs--
       ``(A) the purpose of which is to enable recipient 
     households to conduct energy efficiency upgrades of 
     residential buildings;
       ``(B) that may, at the sole discretion of the eligible 
     entity, require an outlay of capital by recipient households 
     in accordance with the goals of the program under this 
     section; and
       ``(C) that incorporate a consumer-friendly loan repayment 
     approach.
       ``(2) Structure of financing program.--A financing program 
     of an eligible entity may--
       ``(A) consist--
       ``(i) primarily or entirely of a financing program 
     administered by--

       ``(I) the applicable State; or
       ``(II) a program entity; or

       ``(ii) of a combination of programs described in clause 
     (i);
       ``(B) rely on financing provided by--
       ``(i) the eligible entity; or
       ``(ii) a third party, acting through the eligible entity; 
     and
       ``(C) include a provision pursuant to which a recipient 
     household shall agree to return to the eligible entity any 
     portion of the assistance that is unused by the recipient 
     household within a reasonable period after the date of 
     receipt of the assistance, as determined by the eligible 
     entity.
       ``(3) Form of assistance.--Assistance from an eligible 
     entity under this subsection may be provided in any form, or 
     in accordance with any program, authorized by Federal law 
     (including regulations), including in the form of--
       ``(A) a revolving loan fund;
       ``(B) a credit enhancement structure designed to mitigate 
     the effects of default; or
       ``(C) a program that--
       ``(i) adopts any other approach for providing financing for 
     energy efficiency upgrades producing significant energy 
     efficiency gains; and
       ``(ii) incorporates measures for making the loan repayment 
     system for recipient households as consumer-friendly as 
     practicable.
       ``(4) Scope of assistance.--Assistance provided by an 
     eligible entity under this subsection may be used to pay for 
     costs associated with carrying out an energy efficiency 
     upgrade, including materials and labor.
       ``(5) Additional assistance.--In addition to the amount of 
     the loan provided to an eligible entity by the Secretary 
     under subsection (b), the eligible entity or program entity, 
     as applicable, may provide to recipient households such 
     assistance under this subsection as the eligible entity or 
     program entity considers to be appropriate from any other 
     funds of the eligible entity or program entity, including 
     funds provided to the eligible entity by the Secretary for 
     administrative costs pursuant to this section.
       ``(6) Limitations.--
       ``(A) Interest rates.--
       ``(i) Interest charged by eligible entities.--The interest 
     rate charged by an eligible entity on assistance provided 
     under this subsection--

       ``(I) shall be fixed; and
       ``(II) shall not exceed the interest rate paid by the 
     eligible entity to the Secretary under subsection (d)(2).

       ``(ii) Interest charged by program entities.--A program 
     entity that receives funding from an eligible entity under 
     this subsection for the purpose of capitalizing a residential 
     energy efficiency financing program may charge interest on 
     any loan provided by

[[Page S2884]]

     the program entity at a fixed rate that is as low as 
     practicable, but not more than 5 percent more than the 
     applicable interest rate paid by the eligible entity to the 
     Secretary under subsection (d)(2).
       ``(B) No penalty on early repayment.--An eligible entity or 
     program entity, as applicable, shall not assess any penalty 
     for early repayment by any recipient household to the 
     eligible entity or program entity, as applicable.
       ``(f) Reports.--
       ``(1) Eligible entities.--
       ``(A) In general.--Not later than 2 years after the date of 
     receipt of the loan, and annually thereafter for the term of 
     the loan, an eligible entity that receives a loan under this 
     section shall submit to the Secretary a report describing the 
     performance of each program and activity carried out using 
     the loan, including anonymized loan performance data.
       ``(B) Requirements.--The Secretary, in consultation with 
     eligible entities and other stakeholders (such as lending 
     institutions and the real estate industry), shall establish 
     such requirements for the reports under this paragraph as the 
     Secretary determines to be appropriate--
       ``(i) to ensure that the reports are clear, consistent, and 
     straightforward; and
       ``(ii) taking into account the reporting requirements for 
     similar programs in which the eligible entities are 
     participating, if any.
       ``(2) Secretary.--The Secretary shall submit to Congress 
     and make available to the public--
       ``(A) not less frequently than once each year, a report 
     describing the performance of the program under this section, 
     including a synthesis and analysis of the information 
     provided in the reports submitted to the Secretary under 
     paragraph (1)(A); and
       ``(B) on termination of the program under this section, an 
     assessment of the success of, and education provided by, the 
     measures carried out by eligible entities during the term of 
     the program.
       ``(g) Authorization of Appropriations.--There are 
     authorized to be appropriated to the Secretary to carry out 
     this section--
       ``(1) $37,500,000 for energy advisor programs;
       ``(2) $25,000,000 for administrative and general financial 
     support costs to the Secretary of carrying out this section; 
     and
       ``(3) $37,500,000 for administrative costs to States in 
     carrying out this section.''.
       (b) Reorganization.--
       (1) In general.--Part D of title III of the Energy Policy 
     and Conservation Act (42 U.S.C. 6321 et seq.) is amended--
       (A) by redesignating sections 362, 363, 364, 365, and 366 
     as sections 364, 365, 366, 363, and 362, respectively, and 
     moving the sections so as to appear in numerical order;
       (B) in section 362 (as so redesignated)--
       (i) in paragraph (3)(B)(i), by striking ``section 367, 
     and'' and inserting ``section 367 (as in effect on the day 
     before the date of enactment of the State Energy Efficiency 
     Programs Improvement Act of 1990 (42 U.S.C. 6201 note; Public 
     Law 101-440)); and''; and
       (ii) in each of paragraphs (4) and (6), by striking 
     ``section 365(e)(1)'' each place it appears and inserting 
     ``section 363(e)(1)'';
       (C) in section 363 (as so redesignated)--
       (i) in subsection (b), by striking ``the provisions of 
     sections 362 and 364 and subsection (a) of section 363'' and 
     inserting ``sections 364, 365(a), and 366''; and
       (ii) in subsection (g)(1)(A), in the second sentence, by 
     striking ``section 362'' and inserting ``section 364''; and
       (D) in section 365 (as so redesignated)--
       (i) in subsection (a)--

       (I) in paragraph (1), by striking ``section 362,'' and 
     inserting ``section 364;''; and
       (II) in paragraph (2), by striking ``section 362(b) or 
     (e)'' and inserting ``subsection (b) or (e) of section 364''; 
     and

       (ii) in subsection (b)(2), in the matter preceding 
     subparagraph (A), by striking ``section 362(b) or (e)'' and 
     inserting ``subsection (b) or (e) of section 364''.
       (2) Conforming amendments.--Section 391 of the Energy 
     Policy and Conservation Act (42 U.S.C. 6371) is amended--
       (A) in paragraph (2)(M), by striking ``section 365(e)(2)'' 
     and inserting ``section 363(e)(2)''; and
       (B) in paragraph (10), by striking ``section 362 of this 
     Act'' and inserting ``section 364''.
       (3) Clerical amendment.--The table of contents of the 
     Energy Policy and Conservation Act (42 U.S.C. 6201 note; 
     Public Law 94-163) is amended by striking the items relating 
     to part D of title III and inserting the following:

              ``Part D--State Energy Conservation Programs

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

     SEC. 502. OFFSET.

       Section 422(f) of the Energy Independence and Security Act 
     of 2007 (42 U.S.C. 17082(f)) is amended--
       (1) in paragraph (3), by striking ``and'' after the 
     semicolon at the end; and
       (2) by striking paragraph (4) and inserting the following:
       ``(4) $200,000,000 for fiscal year 2013; and
       ``(5) $124,000,000 for each of fiscal years 2014 through 
     2018.''.
                                 ______
                                 
  SA 3053. Mr. KING submitted an amendment intended to be proposed by 
him to the bill S. 2262, to promote energy savings in residential 
buildings and industry, and for other purposes; which was ordered to 
lie on the table; as follows:

       On page 49, between lines 3 and 4, insert the following:

     SEC. 152. CREDITS RELATING TO BIOMASS PROPERTY.

       (a) Residential Energy-efficient Property Credit for 
     Biomass Fuel Property Expenditures.--
       (1) Allowance of credit.--Subsection (a) of section 25D is 
     amended--
       (A) by striking ``and'' at the end of paragraph (4),
       (B) by striking the period at the end of paragraph (5) and 
     inserting ``, and'', and
       (C) by adding at the end the following new paragraph:
       ``(6) 30 percent of the qualified biomass fuel property 
     expenditures made by the taxpayer during such year.''.
       (2) Qualified biomass fuel property expenditures.--
     Subsection (d) of section 25D is amended by adding at the end 
     the following new paragraph:
       ``(6) Qualified biomass fuel property expenditure.--
       ``(A) In general.--The term `qualified biomass fuel 
     property expenditure' means an expenditure for property--
       ``(i) which uses the burning of biomass fuel to heat a 
     dwelling unit located in the United States and used as a 
     residence by the taxpayer, or to heat water for use in such a 
     dwelling unit, and
       ``(ii) which has a thermal efficiency rating of at least 75 
     percent (measured by the higher heating value of the fuel).
       ``(B) Biomass fuel.--For purposes of this section, the term 
     `biomass fuel' means any plant-derived fuel available on a 
     renewable or recurring basis, including agricultural crops 
     and trees, wood and wood waste and residues, plants 
     (including aquatic plants), grasses, residues, and fibers. 
     Such term includes densified biomass fuels such as wood 
     pellets.''.
       (3) Effective date.--The amendments made by this subsection 
     shall apply to expenditures paid or incurred in taxable years 
     beginning after December 31, 2013.
       (b) Investment Tax Credit for Biomass Heating Property.--
       (1) In general.--Subparagraph (A) of section 48(a)(3) is 
     amended by striking ``or'' at the end of clause (vi), by 
     inserting ``or'' at the end of clause (vii), and by inserting 
     after clause (vii) the following new clause:
       ``(viii) open-loop biomass (within the meaning of section 
     45(c)(3)) heating property, including boilers or furnaces 
     which operate at thermal output efficiencies of not less than 
     65 percent (measured by the higher heating value of the fuel) 
     and which provide thermal energy in the form of heat, hot 
     water, or steam for space heating, air conditioning, domestic 
     hot water, or industrial process heat, but only with respect 
     to periods ending before January 1, 2017,''.
       (2) 30 percent and 15 percent credits.--
       (A) In general.--Subparagraph (A) of section 48(a)(2) is 
     amended--
       (i) by redesignating clause (ii) as clause (iii),
       (ii) by inserting after clause (i) the following new 
     clause:
       ``(ii) except as provided in clause (i)(V), 15 percent in 
     the case of energy property described in paragraph 
     (3)(A)(viii), and'', and
       (iii) by inserting ``or (ii)'' after ``clause (i)'' in 
     clause (iii), as so redesignated.
       (B) Increased credit for greater efficiency.--Clause (i) of 
     section 48(a)(2)(A) is amended by striking ``and'' at the end 
     of subclause (III) and by inserting after subclause (IV) the 
     following new subclause:

       ``(V) energy property described in paragraph (3)(A)(viii) 
     which operates at a thermal output efficiency of not less 
     than 80 percent (measured by the higher heating value of the 
     fuel),''.

       (3) Effective date.--The amendments made by this subsection 
     shall apply to periods after the date of the enactment of 
     this Act, in taxable years ending after such date, under 
     rules similar to the rules of section 48(m) of the Internal 
     Revenue Code of 1986 (as in effect on the day before the date 
     of the enactment of the Revenue Reconciliation Act of 1990).
                                 ______
                                 
  SA 3054. Mr. FRANKEN submitted an amendment intended to be proposed 
by him to the bill S. 2262, to promote energy savings in residential 
buildings and industry, and for other purposes; which was ordered to 
lie on the table; as follows:

       At the end of title II, add the following:

                Subtitle E--Technical Assistance Program

     SEC. 241. SHORT TITLE.

       This title may be cited as the ``Local Energy Supply and 
     Resiliency Act of 2014''.

     SEC. 242. FINDINGS AND PURPOSES.

       (a) Findings.--Congress finds that--
       (1) a quantity of energy that is more than--
       (A) 27 percent of the total energy consumption in the 
     United States is released from power plants in the form of 
     waste heat; and
       (B) 36 percent of the total energy consumption in the 
     United States is released from power plants, industrial 
     facilities, and other buildings in the form of waste heat;
       (2) waste heat can be--

[[Page S2885]]

       (A) recovered and distributed to meet building heating or 
     industrial process heating requirements;
       (B) converted to chilled water for air conditioning or 
     industrial process cooling; or
       (C) converted to electricity;
       (3) renewable energy resources in communities in the United 
     States can be used to meet local thermal and electric energy 
     requirements;
       (4) use of local energy resources and implementation of 
     local energy infrastructure can strengthen the reliability 
     and resiliency of energy supplies in the United States in 
     response to extreme weather events, power grid failures, or 
     interruptions in the supply of fossil fuels;
       (5) use of local waste heat and renewable energy 
     resources--
       (A) strengthens United States industrial competitiveness;
       (B) helps reduce reliance on fossil fuels and the 
     associated emissions of air pollution and carbon dioxide;
       (C) increases energy supply resiliency and security; and
       (D) keeps more energy dollars in local economies, thereby 
     creating jobs;
       (6) district energy systems represent a key opportunity to 
     tap waste heat and renewable energy resources;
       (7) district energy systems are important for expanding 
     implementation of combined heat and power systems because 
     district energy systems provide infrastructure for delivering 
     thermal energy from a CHP system to a substantial base of end 
     users;
       (8) district energy systems serve institutions of higher 
     education, hospitals, airports, military bases, and downtown 
     areas;
       (9) district energy systems help cut peak power demand and 
     reduce power transmission and distribution system constraints 
     by--
       (A) shifting power demand through thermal storage;
       (B) generating power near load centers with a CHP system; 
     and
       (C) meeting air conditioning demand through the delivery of 
     chilled water produced with heat generated by a CHP system or 
     other energy sources;
       (10) evaluation and implementation of district energy 
     systems--
       (A) is a complex undertaking involving a variety of 
     technical, economic, legal, and institutional issues and 
     barriers; and
       (B) often requires technical assistance to successfully 
     navigate those barriers; and
       (11) a major constraint to the use of local waste heat and 
     renewable energy resources is a lack of low-interest, long-
     term capital funding for implementation.
       (b) Purposes.--The purposes of this title are--
       (1) to encourage the use and distribution of waste heat and 
     renewable thermal energy--
       (A) to reduce fossil fuel consumption;
       (B) to enhance energy supply resiliency, reliability, and 
     security;
       (C) to reduce air pollution and greenhouse gas emissions;
       (D) to strengthen industrial competitiveness; and
       (E) to retain more energy dollars in local economies; and
       (2) to facilitate the implementation of a local energy 
     infrastructure that accomplishes the goals described in 
     paragraph (1) by--
       (A) providing technical assistance to evaluate, design, and 
     develop projects to build local energy infrastructure; and
       (B) facilitating low-cost financing for the construction of 
     local energy infrastructure though the issuance of loan 
     guarantees.

     SEC. 243. DEFINITIONS.

       In this title:
       (1) Combined heat and power system.--The term ``combined 
     heat and power system'' or ``CHP system'' means generation of 
     electric energy and heat in a single, integrated system that 
     meets the efficiency criteria in clauses (ii) and (iii) of 
     section 48(c)(3)(A) of the Internal Revenue Code of 1986, 
     under which heat that is conventionally rejected is recovered 
     and used to meet thermal energy requirements.
       (2) Demand response.--The term ``demand response'' means a 
     change in electricity use by an electric utility customer, as 
     measured against the usual consumption pattern of the 
     consumer, in response to--
       (A) a change in the price of electricity during a given 
     period of time; or
       (B) an incentive payment designed to induce lower 
     electricity use when--
       (i) wholesale market prices are high; or
       (ii) system reliability is jeopardized.
       (3) District energy system.--The term ``district energy 
     system'' means a system that provides thermal energy to 
     buildings and other energy consumers from 1 or more plants to 
     individual buildings to provide space heating, air 
     conditioning, domestic hot water, industrial process energy, 
     and other end uses.
       (4) Local energy infrastructure.--The term ``local energy 
     infrastructure'' means a system that--
       (A) recovers or produces useful thermal or electric energy 
     from waste energy or renewable energy resources;
       (B) generates electricity using a combined heat and power 
     system;
       (C) distributes electricity in microgrids;
       (D) stores thermal energy; or
       (E) distributes thermal energy or transfers thermal energy 
     to building heating and cooling systems via a district energy 
     system.
       (5) Microgrid.--The term ``microgrid'' means a group of 
     interconnected loads and distributed energy resources within 
     clearly defined electrical boundaries that--
       (A) acts as a single controllable entity with respect to 
     the grid; and
       (B) can connect and disconnect from the grid to enable the 
     microgrid to operate in both grid-connected or island-mode.
       (6) Renewable energy resource.--The term ``renewable energy 
     resource'' means --
       (A) closed-loop and open-loop biomass (as defined in 
     paragraphs (2) and (3), respectively, of section 45(c) of the 
     Internal Revenue Code of 1986);
       (B) gaseous or liquid fuels produced from the materials 
     described in subparagraph (A);
       (C) geothermal energy (as defined in section 45(c)(4) of 
     such Code);
       (D) municipal solid waste (as defined in section 45(c)(6) 
     of such Code); or
       (E) solar energy (which is used, undefined, in section 45 
     of such Code).
       (7) Renewable thermal energy.--The term ``renewable thermal 
     energy'' means--
       (A) heating or cooling energy derived from a renewable 
     energy resource;
       (B) natural sources of cooling such as cold lake or ocean 
     water; or
       (C) other renewable thermal energy sources, as determined 
     by the Secretary.
       (8) Secretary.--The term ``Secretary'' means the Secretary 
     of Energy.
       (9) Thermal energy.--The term ``thermal energy'' means--
       (A) heating energy in the form of hot water or steam that 
     is used to provide space heating, domestic hot water, or 
     process heat; or
       (B) cooling energy in the form of chilled water, ice or 
     other media that is used to provide air conditioning, or 
     process cooling.
       (10) Waste energy.--The term ``waste energy'' means energy 
     that--
       (A) is contained in--
       (i) exhaust gas, exhaust steam, condenser water, jacket 
     cooling heat, or lubricating oil in power generation systems;
       (ii) exhaust heat, hot liquids, or flared gas from any 
     industrial process;
       (iii) waste gas or industrial tail gas that would otherwise 
     be flared, incinerated, or vented;
       (iv) a pressure drop in any gas, excluding any pressure 
     drop to a condenser that subsequently vents the resulting 
     heat;
       (v) condenser water from chilled water or refrigeration 
     plants; or
       (vi) any other form of waste energy, as determined by the 
     Secretary; and
       (B)(i) in the case of an existing facility, is not being 
     used; or
       (ii) in the case of a new facility, is not conventionally 
     used in comparable systems.

     SEC. 244. TECHNICAL ASSISTANCE PROGRAM.

       (a) Establishment.--
       (1) In general.--The Secretary shall establish a program to 
     disseminate information and provide technical assistance, 
     directly through the establishment of 1 or more clean energy 
     application centers or through grants so that recipients may 
     contract to obtain technical assistance, to assist eligible 
     entities in identifying, evaluating, planning, and designing 
     local energy infrastructure.
       (2) Technical assistance.--The technical assistance under 
     paragraph (1) shall include assistance with 1 or more of the 
     following:
       (A) Identification of opportunities to use waste energy or 
     renewable energy resources.
       (B) Assessment of technical and economic characteristics.
       (C) Utility interconnection.
       (D) Negotiation of power and fuel contracts, including 
     assessment of the value of demand response capabilities.
       (E) Permitting and siting issues.
       (F) Marketing and contract negotiations.
       (G) Business planning and financial analysis.
       (H) Engineering design.
       (3) Information dissemination.--The information 
     disseminated under paragraph (1) shall include--
       (A) information relating to the topics identified in 
     paragraph (2), including case studies of successful examples; 
     and
       (B) computer software for assessment, design, and operation 
     and maintenance of local energy infrastructure.
       (b) Eligible Entity.--Any nonprofit or for-profit entity 
     shall be eligible to receive assistance under the program 
     established under subsection (a).
       (c) Eligible Costs.--On application by an eligible entity, 
     the Secretary may award a grant to the eligible entity to 
     provide amounts to cover not more than--
       (1) 100 percent of the cost of initial assessment to 
     identify local energy opportunities;
       (2) 75 percent of the cost of feasibility studies to assess 
     the potential for the implementation of local energy 
     infrastructure;
       (3) 60 percent of the cost of guidance on overcoming 
     barriers to the implementation of local energy 
     infrastructure, including financial, contracting, siting, and 
     permitting issues; and
       (4) 45 percent of the cost of detailed engineering of local 
     energy infrastructure.
       (d) Applications.--
       (1) In general.--An eligible entity desiring technical 
     assistance under this section shall submit an application to 
     the Secretary at such time, in such manner, and containing 
     such information as the Secretary may require under the rules 
     and procedures adopted under subsection (f).
       (2) Application process.--The Secretary shall solicit 
     applications for technical assistance under this section--
       (A) on a competitive basis; and

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       (B) on a periodic basis, but not less frequently than once 
     every 12 months.
       (e) Priorities.--In evaluating projects, the Secretary 
     shall give priority to projects that have the greatest 
     potential for--
       (1) maximizing elimination of fossil fuel use;
       (2) strengthening the reliability of local energy supplies 
     and boosting the resiliency of energy infrastructure to the 
     impact of extreme weather events, power grid failures, and 
     interruptions in supply of fossil fuels;
       (3) minimizing environmental impact, including regulated 
     air pollutants, greenhouse gas emissions, and use of ozone-
     depleting refrigerants;
       (4) facilitating use of renewable energy resources;
       (5) increasing industrial competitiveness; and
       (6) maximizing local job creation.
       (f) Rules and Procedures.--Not later than 180 days after 
     the date of enactment of this Act, the Secretary shall adopt 
     rules and procedures for the administration of the program 
     established under this section, consistent with the 
     provisions of this title.
       (g) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $100,000,000 for 
     the period of fiscal years 2014 through 2018, to remain 
     available until expended.

     SEC. 245. LOAN GUARANTEES FOR LOCAL ENERGY INFRASTRUCTURE.

       (a) Assurance of Repayment.--Section 1702(d) of the Energy 
     Policy Act of 2005 (42 U.S.C. 16512(d)) is amended--
       (1) by redesignating paragraphs (2) and (3) as paragraphs 
     (3) and (4); and
       (2) by inserting after paragraph (1) the following:
       ``(2) Local energy infrastructure documentation.--No 
     guarantee shall be made for local energy infrastructure 
     unless the borrower submits to the Secretary--
       ``(A) an independent engineering report, prepared by an 
     engineer with experience in the industry and familiarity with 
     similar projects, that includes detailed information on--
       ``(i) how the technology to be employed in the project is a 
     proven, commercial technology;
       ``(ii) project siting;
       ``(iii) engineering and design;
       ``(iv) permitting and environmental compliance;
       ``(v) testing and commissioning; and
       ``(vi) operations and maintenance;
       ``(B) a detailed description of the overall financial plan 
     for the proposed project, including all sources and uses of 
     funding, equity and debt, and the liability of parties 
     associated with the project over the term of the guarantee 
     agreement;
       ``(C) all applicable financial statements of the borrower 
     and any non-Federal parties providing financial assistance to 
     the borrower, which shall have been audited by an independent 
     certified public accountant;
       ``(D) the business plan on which the project is based and a 
     financial model presenting project pro forma statements for 
     the proposed term of the guarantee, including income 
     statements, balance sheets, and cash flows;
       ``(E) a copy of any power purchase agreement, thermal 
     energy purchase agreement, and other long-term offtake or 
     revenue-generating agreement that will be the primary source 
     of revenue for the project, including repayment of the debt 
     obligations for which a guarantee is sought; and
       ``(F) a list of each engineering and design contractor, 
     construction contractor, and equipment supplier for the 
     project, as well as any performance guarantee, performance 
     bond, liquidated damages provision, and equipment warranty to 
     be provided.''.
       (b) Eligible Projects.--Section 1703 of the Energy Policy 
     Act of 2005 (42 U.S.C. 16513) is amended--
       (1) in subsection (b), by adding at the end the following:
       ``(11) Local energy infrastructure, as defined in section 
     243 of the Local Energy Supply and Resiliency Act of 2014.''; 
     and
       (2) by adding at the end the following:
       ``(f) Special Rules for Local Energy Infrastructure.--
       ``(1) In general.--Subsection (a)(2) shall not apply to a 
     project described in subsection (b)(11).
       ``(2) Requirements for loan guarantee.--A loan guarantee 
     shall only be made available for a project described in 
     subsection (b)(11) to the extent specifically provided for in 
     advance by an appropriations Act enacted after the date of 
     enactment of the Local Energy Supply and Resiliency Act of 
     2014.''.

     SEC. 246. DEFINITION OF INVESTMENT AREA.

       Section 103(16) of the Community Development Banking and 
     Financial Institutions Act of 1994 (12 U.S.C. 4702(16)) is 
     amended--
       (1) in subparagraph (A)(ii), by striking ``or'' at the end;
       (2) in subparagraph (B), by striking the period at the end 
     and inserting ``; or''; and
       (3) by adding at the end the following:
       ``(C) has the potential for implementation of local energy 
     infrastructure (as defined in section 243 of the Local Energy 
     Supply and Resiliency Act of 2014).''.

     SEC. 247. STATE ENERGY CONSERVATION PLANS.

       Section 362(d) of the Energy Policy and Conservation Act 
     (42 U.S.C. 6322(d)) is amended--
       (1) in paragraph (16), by striking ``and'' at the end;
       (2) by redesignating paragraph (17) as paragraph (18); and
       (3) by inserting after paragraph (16) the following:
       ``(17) programs to support the evaluation and 
     implementation of local energy infrastructure (as defined in 
     section 243 of the Local Energy Supply and Resiliency Act of 
     2014).''.

       Strike section 501 and insert the following:

     SEC. 501. OFFSET.

       Section 422(f) of the Energy Independence and Security Act 
     of 2007 (42 U.S.C. 17082(f)) is amended--
       (1) in paragraph (3), by striking ``and'' after the 
     semicolon at the end; and
       (2) by striking paragraph (4) and inserting the following:
       ``(4) $200,000,000 for fiscal year 2013;
       ``(5) $180,000,000 for fiscal year 2014;
       ``(6) $130,000,000 for fiscal year 2015; and
       ``(7) $80,000,000 for each of fiscal years 2016 through 
     2018.''.

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