[House Report 111-594]
[From the U.S. Government Publishing Office]


111th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     111-594

======================================================================

 
   PROVIDING FOR CONSIDERATION OF THE BILL (H.R. 4785) TO AMEND THE 
  MISCELLANEOUS RURAL DEVELOPMENT PROVISIONS OF THE FARM SECURITY AND 
RURAL INVESTMENT ACT OF 2002 TO AUTHORIZE THE SECRETARY OF AGRICULTURE 
TO MAKE LOANS TO CERTAIN ENTITIES THAT WILL USE THE FUNDS TO MAKE LOANS 
    TO CONSUMERS TO IMPLEMENT ENERGY EFFICIENCY MEASURES INVOLVING 
 STRUCTURAL IMPROVEMENTS AND INVESTMENTS IN COST-EFFECTIVE, COMMERCIAL 
          OFF-THE-SHELF TECHNOLOGIES TO REDUCE HOME ENERGY USE

                                _______
                                

 September 15, 2010.--Referred to the House Calendar and ordered to be 
                                printed

                                _______
                                

   Mr. McGovern, from the Committee on Rules, submitted the following

                              R E P O R T

                      [To accompany H. Res. 1620]

    The Committee on Rules, having had under consideration 
House Resolution 1620, by a nonrecord vote, report the same to 
the House with the recommendation that the resolution be 
adopted.

                SUMMARY OF PROVISIONS OF THE RESOLUTION

    The resolution provides for consideration of H.R. 4785, the 
``Rural Energy Savings Program Act,'' under a structured rule. 
The resolution provides one hour of general debate equally 
divided and controlled by the chair and ranking minority member 
of the Committee on Agriculture and by the chair and ranking 
minority member of the Committee on Energy and Commerce. The 
resolution waives all points of order against consideration of 
the bill except those arising under clause 9 or 10 of rule XXI. 
The resolution provides that in lieu of the amendment in the 
nature of a substitute recommended by the Committee on 
Agriculture now printed in the bill, the amendment in the 
nature of a substitute printed in part A of this report shall 
be considered as an original bill for the purpose of amendment 
and shall be considered as read. The resolution waives all 
points of order against the amendment in the nature of a 
substitute except those arising under clause 10 of rule XXI. 
This waiver does not affect the point of order available under 
clause 9 of rule XXI (regarding earmark disclosure). The 
resolution makes in order only those amendments printed in part 
B of this report. Each such amendment may be offered only in 
the order printed in this report, may be offered only by a 
Member designated in this report, shall be considered as read, 
shall be debatable for the time specified in this report 
equally divided and controlled by the proponent and an 
opponent, shall not be subject to amendment, and shall not be 
subject to a demand for division of the question. All points of 
order against the amendments in part B except for clauses 9 and 
10 of rule XXI are waived. The resolution provides one motion 
to recommit with or without instructions. The resolution 
provides that the Chair may entertain a motion that the 
Committee rise only if offered by the chair of the Committee on 
Agriculture or his designee. The resolution provides that the 
Chair may not entertain a motion to strike out the enacting 
words of the bill.

                         EXPLANATION OF WAIVERS

    The waiver of all points of order against consideration of 
the bill (except for clauses 9 and 10 of rule XXI) includes a 
waiver of clause 4(a) of rule XIII, requiring a three-day 
layover of the committee report. Although the rule waives all 
points of order against the amendment in the nature of a 
substitute (except for clause 10 of rule XXI), the Committee is 
not aware of any points of order. The waiver of all points of 
order is prophylactic.

                            COMMITTEE VOTES

    The results of each record vote on an amendment or motion 
to report, together with the names of those voting for and 
against, are printed below:

Rules Committee record vote No. 493

    Date: September 15, 2010.
    Measure: H.R. 4785.
    Motion by: Mr. Dreier.
    Summary of motion: To report an open rule.
    Results: Defeated 2-6.
    Vote by Members: McGovern--Nay; Matsui--Nay; Arcuri--Nay; 
Pingree--Nay; Polis--Nay; Dreier--Yea; Foxx--Yea; Slaughter--
Nay.

Rules Committee record vote No. 494

    Date: September 15, 2010.
    Measure: H.R. 4785.
    Motion by: Dr. Foxx.
    Summary of motion: To make in order and provide appropriate 
waivers for an amendment by Rep. Barton (TX), #11, which would 
strike section 1 of the substitute, eliminating the Home Star 
Energy Efficiency Loan Program and making technical and 
conforming changes. Also would require that all items on the 
master list of residential energy efficiency measures be 
recommended by the Secretary of Agriculture.
    Results: Defeated 2-7.
    Vote by Members: McGovern--Nay; Matsui--Nay; Cardoza--Nay; 
Arcuri--Nay; Pingree--Nay; Polis--Nay; Dreier--Yea; Foxx--Yea; 
Slaughter--Nay.

SUMMARY OF THE AMENDMENT IN THE NATURE OF A SUBSTITUTE IN PART A TO BE 
                     CONSIDERED AS AN ORIGINAL BILL

    The substitute for H.R. 4785 is nearly identical to the 
rural energy efficiency loan program language ordered reported 
by the Agriculture Committee on July 14, authorizing loans from 
the Rural Utilities Service to rural electric cooperatives for 
purposes of making loans to their residential and farm 
customers for energy efficiency measures. In addition, the 
substitute adds a Home Star energy efficiency loan program that 
is nearly identical to the energy efficiency loan program 
reported out by the Energy and Commerce Committee in April as 
part of H.R. 5019. The Home Star Energy Efficiency Loan Program 
authorizes loans to the States in order for States to select 
eligible entities to provide loans to consumers for residential 
energy efficiency measures.

          SUMMARY OF AMENDMENTS IN PART B TO BE MADE IN ORDER

    1. Holden (PA): Would clarify that loan funds under the 
bill may not be used to purchase manufactured homes, makes 
technical corrections to a Comptroller General report, 
prohibits provision of funds to certain contractors and makes 
ineligible for loans certain Federal Employees. Also requires 
the Secretaries of Energy and Agriculture to take steps to 
prevent misuse of funds. Would prohibit any additions to direct 
spending in regards to provisions within this Act. Would not 
allow an entity with an ongoing capital repayment obligation to 
the Treasury due to the Troubled Assets Relief Program to 
participate in the programs within this Act. Would ensure that 
funds provided under this bill would supplement and not 
supplant other energy efficiency funding. (20 minutes)
    2. Cuellar (TX): Would direct the Secretary of Agriculture 
to provide assistance and technical advice to the qualified 
entities providing loans under this bill to increase the 
participation of economically distressed rural communities with 
unemployment rates above the national average. (10 minutes)
    3. McCarthy, Carolyn (NY): Would require that lenders 
providing loans under this Act give priority to active duty 
members of the Armed Forces and to veterans. (10 minutes)
    4. Inslee (WA): Would require the Department of Energy, in 
consultation with the Secretary of Agriculture, to consider 
passive house retrofits when identifying qualified energy 
efficiency measures. (10 minutes)

   PART A--TEXT OF THE AMENDMENT IN THE NATURE OF A SUBSTITUTE TO BE 
                     CONSIDERED AS AN ORIGINAL BILL

    Strike all after the enacting clause and insert the 
following:

SECTION 1. 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 qualifying energy savings measures pursuant to this 
        section, and who is not also a qualified consumer under 
        section 2.
          (2) 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 entity that--
                  (A) meets the eligibility requirements of 
                this section; and
                  (B) is designated by the Governor of a State 
                in accordance with subsection (f)(1),
        except that an entity that is an eligible entity under 
        section 2 shall not be a qualified financing entity.
          (3) Qualified loan program mechanism.--The term 
        ``qualified loan program mechanism'' means a mechanism 
        for the establishment and operation of a loan program 
        that is--
                  (A) administered by a qualified financing 
                entity; and
                  (B) funded in significant part--
                          (i) by funds provided by or overseen 
                        by a State; or
                          (ii) through the energy loan program 
                        of the Federal National Mortgage 
                        Association.
          (4) Qualifying energy savings measure.--The term 
        ``qualifying energy savings measure'' means a measure 
        listed under subsection (c)(1) or (2) or stipulated in 
        a whole-house analysis under subsection (c)(3).
  (b) Establishment.--The Secretary of Energy shall establish a 
Home Star Energy Efficiency Loan Program under which the 
Secretary of Energy shall offer loans at zero percent interest 
to States to support financial assistance provided by qualified 
financing entities for the installation of qualifying energy 
savings measures.
  (c) Energy Efficiency Measures and Standards.--The Secretary 
of Energy, in consultation with the Secretary of Agriculture, 
shall publish--
          (1) not later than 90 days after the date of 
        enactment of this Act, a master list of residential 
        energy efficiency measures determined to be cost-
        effective, readily available from commercial sources, 
        to be permanently installed in a residence, and capable 
        of supporting measurement and verification of the 
        energy savings that results from their adoption;
          (2) additions to such a list, approved by the 
        Secretary of Energy, of other residential energy 
        efficiency measures that are--
                  (A) recommended by the Secretary of 
                Agriculture;
                  (B) calculated to achieve sufficient energy 
                savings that they will achieve a simple payback 
                within 10 years or less; and
                  (C) permanently installed in a residence;
          (3) specifications for whole-house energy performance 
        analyses simulating energy use before and after a 
        retrofit utilizing measures from the master list 
        published pursuant to paragraphs (1) and (2) and such 
        other permanent structural measures as can be 
        demonstrated, when installed and operated as intended, 
        to improve residential energy efficiency in a manner 
        that can be determined with confidence to be cost-
        effective and to recover their own cost in energy cost 
        savings within the term of a proposed loan; and
          (4) a protocol for measurement and verification of 
        the energy savings that have resulted from any and all 
        energy efficiency measures taken with respect to a 
        residence and financed in whole or in part pursuant to 
        this title.
  (d) Eligibility of Qualified Financing Entities.--To be 
eligible to participate in the Home Star Loan 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 installations described in subsection (b);
          (2) require all financed installations to be 
        performed by contractors in a manner that meets 
        building code requirements and other appropriate 
        minimum standards;
          (3) establish standard underwriting criteria to 
        determine the eligibility of Home Star Loan 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 Home Star Loan Program in the 
                State); and
          (4) undertake particular efforts to make such loans 
        available in public use microdata areas that have a 
        poverty rate of 12 percent or more in a proportion of 
        total loans made at least equal to the proportion the 
        number of residents in such areas bears to the total 
        population of the area served by that qualified 
        financing entity.
  (e) Allocation.--In allocating 75 percent of the loan funds 
made available to States for each fiscal year under this 
section, the Secretary of Energy 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.), with 
appropriate modifications to reflect the funds to be provided 
in States for loans under section 2. In allocating the 
remaining 25 percent of the loan funds made available to States 
for each fiscal year under this section, the Secretary of 
Energy may vary the result of the formula to recognize and 
reward those States that make the best progress in providing 
loans to low-income areas pursuant to subsection (d)(4).
  (f) Qualified Financing Entities.--Before making funds 
available to a State under this section, the Secretary of 
Energy shall require the Governor of the State to provide to 
the Secretary of Energy a letter of agreement that the State--
          (1) will use the funds provided pursuant to this 
        section solely as provided in this section;
          (2) has 1 or more qualified financing entities that 
        meet the requirements of this section;
          (3) has established, or has required its designated 
        qualified financing entities to establish, a qualified 
        loan program mechanism that--
                  (A) will use a quality assurance program or 
                another appropriate methodology to ensure 
                energy savings;
                  (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;
          (4) will provide, in a timely manner, all information 
        regarding the administration of the Home Star Loan 
        Program as the Secretary of Energy may require to 
        permit the Secretary of Energy to meet program 
        evaluation requirements; and
          (5) will commit to the full repayment of the loaned 
        funds to the Secretary of Energy by a date not later 
        than 20 years from the date of the loan closing.
  (g) Use of Funds.--Funds made available to States for 
carrying out the Home Star Loan Program may be used to support 
financing mechanisms offered by qualified financing entities to 
eligible participants, including--
          (1) interest rate reductions to interest rates as low 
        as zero percent;
          (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 necessary--
                  (A) to use available funds to obtain 
                appropriate leverage through private 
                investment; and
                  (B) to support widespread deployment of 
                energy efficiency programs.
  (h) Use of Repaid Funds.--In the case of a revolving loan 
fund described in subsection (g)(3), a qualified financing 
entity may use funds repaid by eligible participants under the 
Home Star Loan Program to provide financial assistance for 
additional eligible participants for installations described in 
subsection (b) in a manner that is consistent with this 
section.
  (i) Administrative Costs.--A State may permit a qualified 
financing entity to charge interest of 3 percent to cover the 
costs of loan administration and personnel and program 
management, or for establishing a loan loss reserve.
  (j) Reporting Requirements.--The Secretary of Energy shall 
report to the Congress on the implementation of this title, 
including the energy savings and cost savings estimated to be 
achieved, not later than 1 year after the date of enactment of 
this Act, and again by not later than 2 years after the date of 
enactment of this section.
  (k) Assessment by Government Accountability Office.--The 
Comptroller General shall, by not later than 18 months after 
the date of enactment of this Act, prepare and submit to the 
Congress an analysis and report determining--
          (1) the actual taxpayer funds made available for the 
        program created in this section;
          (2) the actual amounts of such funds made available 
        to eligible participants or qualified consumers in the 
        program created in this section;
          (3) the extent of measured and verified residential 
        energy savings achieved and expected to be achieved on 
        an ongoing basis as a function of this program;
          (4) the extent to which funds were made available to 
        support commercial or industrial energy efficiency 
        measures under this program;
          (5) the extent to which funds made available were 
        expended for training, administration, program support 
        by contractors, or trade association activities under 
        this program; and
          (6) the consistency and rigor of the standards for 
        energy efficiency and for measurement and verification 
        adopted and implemented by this program.
  (l) Authorization.--There are authorized to be appropriated 
for purposes of this section $850,000,000 for each of fiscal 
years 2010 through 2014, which shall remain available until 
expended.

SEC. 2. RURAL ENERGY SAVINGS PROGRAM.

  (a) Definitions.--In this section:
          (1) Eligible entity.--The term ``eligible entity'' 
        means--
                  (A) any public or cooperative electric 
                utility that is eligible to borrow from the 
                Rural Utilities Service electrification program 
                authorized under the Rural Electrification Act 
                of 1936 (7 U.S.C. 901 et seq.) that serves a 
                rural area;
                  (B) any current borrower of the Rural 
                Utilities Service electrification program 
                authorized under that Act; or
                  (C) any entity primarily owned or controlled 
                by an entity described in subparagraph (A) or 
                (B).
          (2) Energy efficiency measure.--The term ``energy 
        efficiency measure'', with respect to property served 
        by an eligible entity, means a fixed structural 
        improvement and investment in a cost-effective, 
        commercial off-the-shelf technology to reduce 
        residential energy use that is either--
                  (A) included in the master list published 
                under section 1(c)(1) and (2); or
                  (B) stipulated in a whole-house simulation 
                conducted pursuant to section 1(c)(3).
          (3) Farm efficiency measure.--The term ``farm 
        efficiency measure'' means an energy saving application 
        that is a fixed improvement installed in or attached to 
        a building or structure on a farm at a total loan value 
        for that farm of $50,000 or less, that is not otherwise 
        an energy efficiency measure, and that would achieve 
        energy savings sufficient to repay the cost of the 
        measure in 10 years or fewer.
          (4) Qualified consumer.--The term ``qualified 
        consumer'' means a consumer served by an eligible 
        entity that has the ability to repay a loan made under 
        subsection (d), as determined by an eligible entity, 
        and who has not accepted any loan as an eligible 
        participant pursuant to section 1.
          (5) Qualified entity.--The term ``qualified entity'' 
        means any organization that the Secretary of 
        Agriculture determines has significant experience in 
        providing eligible entities with--
                  (A) advice on energy, environmental, energy 
                efficiency, and information research and 
                technology;
                  (B) training, education, and consulting;
                  (C) guidance in energy and operational issues 
                and rural community and economic development; 
                and
                  (D) other relevant assistance, as determined 
                by the Secretary of Agriculture.
          (6) Rural area.--The term ``rural area'' means any 
        area other than--
                  (A) a city or town that has a population of 
                greater than 50,000 inhabitants; and
                  (B) any urbanized area contiguous and 
                adjacent to a city or town described in 
                subparagraph (A).
  (b) Establishment.--The Secretary of Agriculture, acting 
through the Rural Utility Service, shall establish the Rural 
Star Energy Savings Program for the purpose of making loans to 
eligible entities that agree to accept the loan funds 
authorized pursuant to this section to make loans to qualified 
consumers for the purpose of implementing residential energy 
efficiency measures or farm efficiency measures approved by the 
Secretary of Agriculture.
  (c) Loans to Eligible Entities.--
          (1) Loans authorized.--Subject to paragraph (2), the 
        Secretary of Agriculture shall make loans to an 
        eligible entity that agrees that the loan funds will be 
        used to make loans to qualified consumers as described 
        in subsection (d) for the purpose of implementing one 
        or more energy efficiency measures, or a farm 
        efficiency measure in response to an application by an 
        eligible entity.
          (2) List, plan, and measurement and verification 
        required.--
                  (A) In general.--As a condition to receiving 
                a loan under paragraph (1), an eligible entity 
                shall--
                          (i) establish a list of energy 
                        efficiency measures or farm efficiency 
                        measures expected to decrease energy 
                        use or costs of a qualified consumer 
                        from the master list published under 
                        section 1(c)(1) and (2);
                          (ii) establish a procedure to 
                        identify to the Secretary of 
                        Agriculture any specific farm 
                        efficiency measures for which the 
                        eligible entity seeks authority to make 
                        a loan;
                          (iii) prepare an implementation plan 
                        for use of the loan funds to ensure 
                        that a loan to a qualified consumer is 
                        for energy efficiency investments that 
                        will achieve savings sufficient to 
                        service the loan during the term of the 
                        loan; and
                          (iv) provide for appropriate 
                        measurement and verification as 
                        prescribed by the Secretary of 
                        Agriculture to ensure the actual use 
                        and effectiveness of the energy 
                        efficiency loans made by the eligible 
                        entity.
                  (B) Revision of list of energy efficiency 
                measures.--An eligible entity may update the 
                list required under subparagraph (A)(i) to 
                account for efficiency technologies added to 
                the master list published under section 1(c)(1) 
                pursuant to section 1(c)(2), or farm efficiency 
                measures approved by the Secretary of 
                Agriculture.
                  (C) Existing energy efficiency programs.--An 
                eligible entity that, on or before the date of 
                the enactment of this Act, has already 
                established an energy efficiency program for 
                qualified consumers may submit an existing list 
                of energy efficiency measures or farm 
                efficiency measures, implementation plans, or 
                measurement and verification systems to satisfy 
                the requirements of subparagraph (A) to the 
                Secretary of Agriculture and may use such list 
                until and unless such list is inconsistent with 
                the measures published pursuant to section 
                1(c)(1) and (2).
          (3) Loan terms for loans to eligible entities.--
                  (A) No interest.--A loan made to an eligible 
                entity under paragraph (1) shall bear no 
                interest.
                  (B) Repayment.--With respect to a loan under 
                paragraph (1)--
                          (i) the term shall not exceed 20 
                        years from the date the loan is closed; 
                        and
                          (ii) except as provided in 
                        subparagraph (D), the repayment of each 
                        advance shall be amortized for a period 
                        not to exceed 10 years.
                  (C) Amount of advances.--Any advance of loan 
                funds to an eligible entity in any single year 
                shall not exceed 30 percent of the approved 
                loan amount.
                  (D) Special advance for start-up 
                activities.--
                          (i) In general.--In order to assist 
                        an eligible entity in defraying initial 
                        start-up costs, the Secretary of 
                        Agriculture shall allow an eligible 
                        entity to request a special advance.
                          (ii) Amount of special advance.--No 
                        eligible entity may receive a special 
                        advance under this subparagraph for an 
                        amount that is greater than 4 percent 
                        of the loan amount received by the 
                        eligible entity under paragraph (1).
                          (iii) Repayment.--The repayment of 
                        the special advance shall be required 
                        within 10 years after the special 
                        advance is made and, at the election of 
                        the eligible entity, may be deferred to 
                        the end of the 10-year period.
                  (E) Limitation on advances.--All advances 
                shall be made under a loan described in 
                paragraph (1) within the first 10 years of the 
                term of the loan.
  (d) Loans to Qualified Consumers.--
          (1) Terms of loans.--Loans made by an eligible entity 
        to qualified consumers using loan funds provided by the 
        Secretary of Agriculture under subsection (c)--
                  (A) may bear interest, not to exceed three 
                percent, to be used by the eligible entity for 
                purposes such as establishing a loan loss 
                reserve and to offset personnel and program 
                costs of the eligible entity to provide the 
                loans;
                  (B) shall finance only energy efficiency 
                measures or farm efficiency measures for the 
                purpose of decreasing energy usage or costs of 
                a qualified consumer by an amount such that a 
                loan term of not more than 10 years will 
                achieve a simple payback of the amount 
                invested;
                  (C) shall not be used to fund purchases of, 
                or modifications to, personal property unless 
                the personal property--
                          (i) is or becomes attached to real 
                        property as a fixture; or
                          (ii) is a manufactured home;
                  (D) shall be repaid through charges added to 
                the electric bill for the property for, or at 
                which energy efficiency measures are or will be 
                implemented, except that this requirement shall 
                not be construed to prohibit--
                          (i) the voluntary prepayment of a 
                        loan by the owner of the property; or
                          (ii) the use of any additional 
                        repayment mechanisms that are--
                                  (I) demonstrated to have 
                                appropriate risk mitigation 
                                features, as determined by the 
                                eligible entity; or
                                  (II) required if the 
                                qualified consumer is no longer 
                                a customer of the eligible 
                                entity; and
                  (E) shall require an energy audit to 
                determine the impact of proposed energy 
                efficiency measures on the energy costs and 
                consumption of the qualified consumer.
          (2) Contractors.--In addition to any other qualified 
        general contractor, eligible entities may serve as 
        general contractors.
          (3) Use of other energy efficiency incentives.--
        Energy efficiency incentives made available under any 
        other Act, including rebates, grants, or any other 
        payments, may be used to reduce the amount of a loan 
        made under this subsection to qualified consumers in 
        order to meet the requirement of paragraph (1)(B).
  (e) Measurement, Verification, Training, and Technical 
Assistance.--
          (1) Duties of the secretary.--The Secretary of 
        Agriculture--
                  (A) shall establish an implementation and 
                measurement and verification advisory committee 
                consisting of representatives of eligible 
                entities and qualified entities;
                  (B) may enter into cooperative agreements 
                with qualified entities to provide technical 
                assistance and training to the employees of 
                eligible entities to carry out this section; 
                and
                  (C) shall establish a process to compile and 
                maintain a directory of energy efficiency 
                auditors that are used by eligible entities to 
                carry out this section.
          (2) Exception.--
                  (A) The Secretary of Agriculture shall not 
                utilize the authority provided under this 
                subsection or subsection (j) to--
                          (i) develop, adopt, or implement a 
                        public labeling system that rates and 
                        compares the energy performance among 
                        qualified consumers; or
                          (ii) require the public disclosure of 
                        an energy performance evaluation or 
                        rating developed for any qualified 
                        consumer.
                  (B) Nothing in this paragraph shall 
                preclude--
                          (i) the computation, collection, or 
                        use, by the Secretary of Agriculture, 
                        eligible entity, or qualified entity 
                        for the purposes of aggregating 
                        information on the rating and 
                        comparison of the energy performance 
                        among qualified consumers with and 
                        without energy efficiency features or 
                        on energy performance evaluation or 
                        rating;
                          (ii) the use and publication of 
                        aggregate data (without identifying 
                        individual qualified consumers) based 
                        on information referred to in clause 
                        (i) to determine or demonstrate the 
                        performance of this program; or
                          (iii) the provision of information 
                        referred to in clause (i) with respect 
                        to a qualified consumer:
                                  (I) to the State, eligible 
                                consumer, eligible entity, or 
                                qualified entity, as necessary 
                                to enable carrying out this 
                                title; or
                                  (II) for purposes of 
                                prosecuting fraud and abuse.
  (f) Fast Start Demonstration Projects.--The Secretary of 
Agriculture shall, not later than 90 days after the enactment 
of this section, enter into agreements with eligible entities 
(or groups of eligible entities) that have established an 
energy efficiency program described in subsection (c)(2)(C) to 
establish an energy efficiency loan demonstration projects 
consistent with the purposes of this section that--
          (1) implement approaches to energy audits and 
        investments in energy efficiency measures or farm 
        efficiency measures that yield measurable and 
        predictable savings;
          (2) use measurement and verification processes to 
        determine the effectiveness of energy efficiency loans 
        made by eligible entities;
          (3) include training for employees of eligible 
        entities, including any contractors of such entities, 
        to implement or oversee the activities described in 
        paragraphs (1) and (2);
          (4) provide for the participation of a majority of 
        eligible entities in a State;
          (5) reduce the need for generating capacity;
          (6) provide efficiency loans to--
                  (A) not fewer than 20,000 consumers, in the 
                case of a single eligible entity; or
                  (B) not fewer than 80,000 consumers, in the 
                case of a group of eligible entities; and
          (7) serve areas where 15 percent or more of consumers 
        reside--
                  (A) in manufactured homes; or
                  (B) in housing units that are more than 50 
                years old.
  (g) Additional Authority.--The authority provided in this 
section is in addition to any authority of the Secretary of 
Agriculture to offer loans under any other law.
  (h) Effective Period.--Except as otherwise provided in this 
section, the loans and other expenditures required to be made 
under this section are authorized to be made during each of 
fiscal years 2010 through 2014.
  (i) Regulations.--
          (1) In general.--Except as otherwise provided in this 
        subsection, not later than 180 days after the date of 
        enactment of this section, the Secretary of Agriculture 
        shall promulgate such regulations as are necessary to 
        implement this section.
          (2) Procedure.--The promulgation of the regulations 
        and administration of this section shall be made 
        without regard to--
                  (A) chapter 35 of title 44, United States 
                Code (commonly known as the ``Paperwork 
                Reduction Act''); and
                  (B) the Statement of Policy of the Secretary 
                of Agriculture effective July 24, 1971 (36 Fed. 
                Reg. 13804), relating to notices of proposed 
                rulemaking and public participation in 
                rulemaking.
          (3) Congressional review of agency rulemaking.--In 
        carrying out this section, the Secretary of Agriculture 
        shall use the authority provided under section 808 of 
        title 5, United States Code.
          (4) Interim regulations.--Notwithstanding paragraphs 
        (1) and (2), to the extent regulations are necessary to 
        carry out any provision of this section, the Secretary 
        of Agriculture shall implement such regulations through 
        the promulgation of an interim rule.
  (j) Audit of Program.--The Secretary of Agriculture shall 
conduct an audit of the program authorized by this section to 
ensure that the funds provided to eligible entities under this 
section are used in accordance with the purpose of this 
section.
  (k) Reporting Requirements.--The Secretary of Agriculture 
shall report to the Congress on the implementation of this Act, 
including the energy savings and costs savings estimated to be 
achieved, not later than 1 year after the date of enactment of 
this Act, and again not later than 2 years after the date of 
enactment of this Act.
  (l) Assesment by Government Accountability Office.--The 
Comptroller General shall, by not later than 18 months after 
the date of enactment of this Act, prepare and submit to the 
Congress an analysis and report determining--
          (1) the actual taxpayer funds made available for the 
        program created in this section;
          (2) the actual amounts of such funds made available 
        to eligible entities for qualified consumers in the 
        program created in this section;
          (3) the extent of measured and verified energy 
        savings achieved and expected to be achieved on an 
        ongoing basis as a function of the program created in 
        this section;
          (4) the extent to which funds made available were 
        expended for training, administration, and program 
        support by eligible entities and qualified entities 
        under the program created in this section; and
          (5) the consistency and rigor of the standards for 
        energy efficiency and for measurement and verification 
        adopted and implemented by program created in this 
        section.
  (m) Authorization.--There are authorized to be appropriated 
for purposes of this section $150,000,000 for each of fiscal 
years 2010 through 2014, which shall remain available until 
expended.

           PART B--TEXT OF THE AMENDMENTS TO BE MADE IN ORDER


1. An Amendment To Be Offered by Representative Holden of Pennsylvania 
               or His Designee, Debatable for 20 Minutes

  Page 1, line 17, strike ``and''.
  Page 1, after line 17, insert the following new subparagraph:
                  (B) is not an entity that has an ongoing 
                capital repayment obligation to the Department 
                of the Treasury pursuant to the Troubled Asset 
                Relief Program (Public Law 110-343, 122  Stat.  
                3765); and
  Page 2, line 1, redesignate subparagraph (B) as subparagraph 
(C).
  Page 6, after line 18, insert the following new paragraph 
(and redesignate the subsequent paragraphs accordingly):
          (2) will use the funds provided under this section to 
        supplement and not supplant any prior or planned 
        Federal and State funding provided to carry out energy 
        efficiency programs, on the condition that, to the 
        extent the Secretary finds that a State has supplanted 
        other such programs with funding under this section, 
        the Secretary may with hold an equivalent amount of 
        funding from allocations for the State under this 
        section;
  Page 10, strike lines 5 through 7.
  Page 10, line 8, strike ``(5)'' and insert ``(4)''.
  Page 10, line 12, strike ``(6)'' and insert ``(5)''.
  Page 10, line 17, after ``this section'' insert ``, provided 
that enactment of this Act would not increase direct 
spending,''.
  Page 18, strike lines 3 through 8 and insert the following:
                  (C) shall not be used to fund--
                          (i) the purchase of a manufactured 
                        home; or
                          (ii) the purchase of any other 
                        personal property unless the personal 
                        property is or becomes attached to real 
                        property as a fixture;
                  (D) shall not be used to fund modifications 
                to personal property unless the personal 
                property--
                          (i) is or becomes attached to real 
                        property as a fixture; or
                          (ii) is a manufactured home;
  Page 18, line 9, strike ``(D)'' and insert ``(E)''.
  Page 18, line 24, strike ``(E)'' and insert ``(F)''.
  Page 20, line 8, strike ``(j)'' and insert ``(i)''.
  Page 25, line 19, after ``this section'' insert ``, provided 
that enactment of this Act would not increase direct 
spending,''.
  At the end, add the following:

SEC. 3. PROHIBITION.

  Neither the Secretary of Energy nor the Secretary of 
Agriculture shall provide any funds authorized by this Act to 
any contractor that employs an employee to work in a consumer's 
home if that employee has been convicted of, or plead guilty 
to, a crime of child molestation, rape, or any other form of 
sexual assault.

SEC. 4. FEDERAL EMPLOYEES.

  (a) A loan shall not be provided to a Federal employee under 
this Act if any of the following apply to the employee:
          (1) The employee has a seriously delinquent tax debt 
        (as determined under subsection (b)).
          (2) The employee received a payment under the Low-
        Income Home Energy Assistance Act of 1981 (42 U.S.C. 
        8621 et seq.) but was ineligible to receive the payment 
        under the criteria described in section 2605(b)(2) of 
        such Act (42 U.S.C. 8624(b)(2)).
          (3) The employee has been officially disciplined for 
        violations of subpart G of the Standards of Ethical 
        Conduct for Employees of the Executive Branch for 
        viewing, downloading, or exchanging pornography, 
        including child pornography, on a Federal Government 
        computer or while performing official Federal 
        Government duties.
  (b) For purposes of subsection (a)(1), a ``seriously 
delinquent tax debt'' means an outstanding debt under the 
Internal Revenue Code of 1986 for which a notice of lien has 
been filed in public records pursuant to section 6323 of such 
Code, except that such term does not include--
          (1) a debt that is being paid in a timely manner 
        pursuant to an agreement under section 6159 or section 
        7122 of such Code; or
          (2) a debt with respect to which a collection due 
        process hearing under section 6330 of such Code is 
        requested, pending, or completed and no payment is 
        required.

SEC. 5. WRONGFUL USE OR DIVERSION OF PROGRAM FUNDS.

  The Secretary of Energy and the Secretary of Agriculture 
shall take such steps as are necessary and appropriate, 
including requirements for the immediate repayment of Federal 
assistance, to ensure that none of the funds authorized in this 
Act are used--
          (1) in violation of law;
          (2) in a manner that creates a significant threat to 
        human health or safety;
          (3) in a manner that undercuts the integrity and 
        accountability of the program under this Act; or
          (4) for purposes other than those serving the 
        objectives of this Act.
                              ----------                              


2. An Amendment To Be Offered by Representative Cuellar of Texas or His 
                   Designee, Debatable for 10 Minutes

    At the end add the following:
  (n) The Secretary of Agriculture shall provide assistance and 
technical advice to the qualified entities providing loans 
under this bill in conducting outreach for the purposes of 
increasing participation of economically distressed rural 
communities with unemployment rates above the national average, 
or rural areas that lack basic living necessities, such as 
water and sewer systems, electricity, and safe, sanitary 
housing, in the program established under this section.
                              ----------                              


3. An Amendment To Be Offered by Representative Carolyn McCarthy of New 
             York or Her Designee, Debatable for 10 Minutes

    At the end add the following:

SEC. __. PRIORITY FOR ACTIVE DUTY MEMBERS OF THE ARMED FORCES AND 
                    VETERANS.

  In providing loans to eligible participants under section 1 
or qualified consumers under section 2, the lender shall give 
priority to members of the Armed Forces serving on active duty 
and to veterans (as defined in section 101 of title 38, United 
States Code).
                              ----------                              


4. An Amendment To Be Offered by Representative Inslee of Washington or 
                 His Designee, Debatable for 10 Minutes

  Page 4, after line 12, insert the following:

In determining which residential energy efficiency measures to 
include in the list published under paragraph (1) or (2), the 
Secretary of Energy, in consultation with the Secretary of 
Agriculture, shall consider advanced performance initiatives, 
such as the Passive House Standard as certified by the Passive 
House Institute US.

                                  
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