[House Report 118-31]
[From the U.S. Government Publishing Office]


118th Congress     }                                   {       Report
                        HOUSE OF REPRESENTATIVES
 1st Session       }                                   {       118-31

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



 
                      HOMEOWNER ENERGY FREEDOM ACT

                                _______
                                

 March 28, 2023.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

Mrs. Rodgers of Washington, from the Committee on Energy and Commerce, 
                        submitted the following

                              R E P O R T

                             together with

                             MINORITY VIEWS

                        [To accompany H.R. 1603]

    The Committee on Energy and Commerce, to whom was referred 
the bill (H.R. 1603) to repeal provisions of Public Law 117-169 
relating to taxpayer subsidies for home electrification, and 
for other purposes, having considered the same, reports 
favorably thereon without amendment and recommends that the 
bill do pass.

                                CONTENTS

                                                                   Page
Purpose and Summary..............................................     2
Background and Need for Legislation..............................     2
Committee Action.................................................     4
Committee Votes..................................................     4
Oversight Findings and Recommendations...........................     6
New Budget Authority, Entitlement Authority, and Tax Expenditures     6
Congressional Budget Office Estimate.............................     6
Federal Mandates Statement.......................................     6
Statement of General Performance Goals and Objectives............     6
Duplication of Federal Programs..................................     6
Related Committee and Subcommittee Hearings......................     6
Committee Cost Estimate..........................................     7
Earmark, Limited Tax Benefits, and Limited Tariff Benefits.......     7
Advisory Committee Statement.....................................     7
Applicability to Legislative Branch..............................     7
Section-by-Section Analysis of the Legislation...................     7
Changes in Existing Law Made by the Bill, as Reported............     7
Minority Views...................................................    18

                          Purpose and Summary

    H.R. 1603, Homeowner Energy Freedom Act, was introduced by 
Rep. Cathy McMorris Rodgers (R-WA) on March 14, 2023. This 
legislation would repeal the following sections from the 
Inflation Reduction Act (P.L. 117-169): sections 50122, 
establishing a new high-efficiency electric home rebate 
program; 50123, establishing the home energy efficiency 
contractor training grants; and 50131, to provide financial 
assistance to states and localities to adopt the latest energy 
conservation building code and so-called zero-energy building 
energy codes. The legislation also would rescind the 
unobligated balances of any amounts made available under 
sections 50122, 50123, and 50131. These programs all carry the 
underlying intent of facilitating the banning or 
discontinuation of the use of natural gas in Americans' homes.

                  Background and Need for Legislation

    H.R. 1603 removes three provisions from the Inflation 
Reduction Act (IRA) to protect consumer choice and ensure that 
home energy costs do not put homeownership out of reach for 
Americans.
    The bill would repeal a new program, in sections 50122 and 
50123 of the IRA, designed to subsidize the electrify-
everything movement. This movement seeks to end the use of gas 
appliances in the name of climate policy--limiting choices for 
how people heat and cook.\1\ The sections of the IRA for this 
program provide some $4.5 billion to states to use taxpayer 
subsidies and related training to incentivize electrification 
projects through rebate programs. The rebates subsidize the 
cost of replacing natural gas stoves with electric cooktops, 
gas heating with electric heat pumps, water heaters, and other 
related electrification products.
---------------------------------------------------------------------------
    \1\The movement is also reflecting in the Biden Administrations' 
climate policy objectives to drive electrification in the name of 
emissions reductions. See, for example, the Administration's April 2021 
submission of the United State's Nationally Determined Contribution to 
the United Nations Framework Convention on Climate Change, which 
outlines programs to support expansion of home electrification and 
adoption of energy codes for building to reduce building sector 
emissions.
---------------------------------------------------------------------------
    In a free market, which enables the free play of supply and 
demand, consumer demand and choices drive down prices of goods 
and services and drive up the quality of those goods and 
services--which reflects the genius of America's marketplace 
that has provided the abundant cornucopia of goods and services 
that make our lives better. Inserting taxpayer subsidies into 
this system deprives the public of the beneficial forces of the 
free market. It is not appropriate to force taxpayers to put a 
thumb on the scale for new electrical appliance products, which 
will only keep prices high, and the incentives for improving 
quality low.
    Under these sections of the IRA, taxpayers will support 
rebates to people who otherwise can afford more expensive 
electric appliances. The provisions allow for 50% rebates an 
electric appliances or electric heat pump installation for 
household incomes up to $213,000 in the D.C. area for example, 
nearly $250,000 in San Francisco, and similarly high levels of 
household income in other areas of the nation. These households 
typically are the drivers of demand, to be sure, but the 
subsidization undermines the free workings of the price system 
necessary to provide what the American public truly wants.
    In any case, taxpayers should not be subsidizing middle 
class energy appliance choices.
    It is also not appropriate for taxpayers to support 
incentives that really aim to support policy agendas to end 
homeowner use of natural gas. An aggressive push towards 
electrification ignores the household energy needs of 
Americans, including the significant number of households that 
rely on natural gas for heating their homes and cooking.
    The U.S. Energy Information Administration (EIA) reports 
that in 2020, 61% of U.S. households used natural gas in their 
homes.\2\ Household gas usage tops 80% in a number of states, 
including New Jersey, California, Illinois, Michigan, Colorado, 
Utah--a reflection of the economic value of natural gas to 
people, which provides more cost-effective heating than 
electrification, at $12 per million Btu versus $42 per million 
Btu for electricity, according to the Department of Energy 
estimates of residential energy costs.\3\
---------------------------------------------------------------------------
    \2\See The majority of U.S. households used natural gas in 2020, 
U.S. Energy Information Administration, March 23, 2023.
    \3\See Federal Register/Vol. 87, No. 44/Monday, March 7, 2022.
---------------------------------------------------------------------------
    H.R. 1603 is about preserving consumer choice, allowing for 
the free market to operate in the best interest of the 
homeowners, and to prevent the drive to restrict clean, energy 
secure, natural gas. Eliminating these provisions, which have 
not been implemented, does not affect more acceptable policies 
to address the efficiency needs of lower income Americans. For 
example, Congress has authorized weatherization programs for 
low-income families and tax credit programs for people to 
upgrade efficiency with materials and more efficient 
appliances. Those programs already provide some $17 billion in 
incentives, according to Congressional Budget Office 
calculations.
    H.R. 1603 also strikes provisions relating to a new program 
that provides $900 million to put pressure on states and 
localities to adopt stringent building codes that are equal or 
greater than the so-called 2021 International Energy 
Conservation Code (IECC), or so-called zero energy codes, with 
little room to meet local needs.
    According to data on state energy code adoption managed by 
the Department of Energy (DOE), 27 states have code efficiency 
levels equivalent to the 2009 IECC or older, and 7 states do 
not have any statewide energy code for residential buildings.
    Adoption of these codes would add, depending on the region, 
thousands of dollars, sometimes well over 20 thousand dollars 
to the cost of new homes. The most stringent zero energy codes 
will cost thousands more on top of this, according to available 
data from the National Association of Homebuilders (NAHB), 
which opposes the IRA provisions.
    Implementation of codes of this stringency would force 
builders and developers to give up on natural gas service and 
deprive families the choice and benefit of fuel options--for 
heating, cooking, hot water.
    Even more, such actions would push homeownership out of the 
reach of thousands of families. Testimony before the Energy and 
Commerce Committee\4\ estimated that for each $1,000 added to 
median new U.S. home prices, more than 127,000 households would 
be priced out of the market.
---------------------------------------------------------------------------
    \4\See testimony of Arn McIntyre on behalf of the National 
Association of Home Builders, before the Energy and Commerce Committee 
hearing, ``Building a 100 Percent Clean Economy: Solutions for the U.S. 
Building Sector,'' September 20, 2019.
---------------------------------------------------------------------------
    Add to this: the payoff for these co-called ``efficiency'' 
standards can range as high as 49 to 90 years, depending on the 
region of the country, according to analysis for the NAHB. This 
is not the way to provide for family prosperity.
    The Committee finds that H.R. 1603 would repeal this 
harmful policy and will return decisions to the people and 
officials who understand their community needs; it will 
preserve consumer choice, allowing for the free market to 
operate in the best interest of the homeowners, and to prevent 
the drive to restrict clean, energy secure, natural gas.

                            Committee Action

    On March 23, 2023, the full Committee on Energy and 
Commerce met in open markup session and ordered H.R. 1603, 
without amendment, favorably reported to the House by a record 
vote of 27 yeas and 22 nays.

                            Committee Votes

    Clause 3(b) of rule XIII requires the Committee to list the 
record votes on the motion to report legislation and amendments 
thereto. The following reflects the record votes taken during 
the Committee consideration:

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

                 Oversight Findings and Recommendations

    Pursuant to clause 2(b)(1) of rule X and clause 3(c)(1) of 
rule XIII, the Committee held hearings and made findings that 
are reflected in this report.

   New Budget Authority, Entitlement Authority, and Tax Expenditures

    Pursuant to clause 3(c)(2) of rule XIII, the Committee 
finds that H.R. 1603 would result in no new or increased budget 
authority, entitlement authority, or tax expenditures or 
revenues.

                  Congressional Budget Office Estimate

    Pursuant to clause 3(c)(3) of rule XIII, at the time this 
report was filed, the cost estimate prepared by the Director of 
the Congressional Budget Office pursuant to section 402 of the 
Congressional Budget Act of 1974 was not available.

                       Federal Mandates Statement

    The Committee adopts as its own the estimate of Federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act.

         Statement of General Performance Goals and Objectives

    Pursuant to clause 3(c)(4) of rule XIII, the general 
performance goal or objective of this legislation is to 
increase American Energy production and restore energy 
leadership by repealing sections 50122, 50123, and 50131 of 
P.L. 117-169.

                    Duplication of Federal Programs

    Pursuant to clause 3(c)(5) of rule XIII, no provision of 
H.R. 1603 is known to be duplicative of another Federal 
program, including any program that was included in a report to 
Congress pursuant to section 21 of Public Law 111-139 or the 
most recent Catalog of Federal Domestic Assistance.

              Related Committee and Subcommittee Hearings

    Pursuant to clause 3(c)(6) of rule XIII,
    (1) the following hearing was used to develop or consider 
H.R. 1603: On January 31, 2023, the Committee on Energy and 
Commerce held an oversight hearing, entitled: ``American Energy 
Expansion: Strengthening Economic, Environmental, and National 
Security''. The Committee received testimony from:
           The Honorable Paul Dabbar, Former U.S. 
        Undersecretary of Energy, Department of Energy;
           Donna Jackson, Director of Membership 
        Development, National Center for Public Policy 
        Research, Project 21;
           Robert McNally, President, Rapidan Energy 
        Group; and
           Ana Unruh Cohen, Ph.D., Former Staff 
        Director, U.S. House Select Committee on the Climate 
        Crisis.

                        Committee Cost Estimate

    Pursuant to clause 3(d)(1) of rule XIII, the Committee 
adopts as its own the cost estimate prepared by the Director of 
the Congressional Budget Office pursuant to section 402 of the 
Congressional Budget Act of 1974. At the time this report was 
filed, the estimate was not available.

       Earmark, Limited Tax Benefits, and Limited Tariff Benefits

    Pursuant to clause 9(e), 9(f), and 9(g) of rule XXI, the 
Committee finds that H.R. 1603 contains no earmarks, limited 
tax benefits, or limited tariff benefits.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                  Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

             Section-by-Section Analysis of the Legislation


Section 1. Short title

    This section provides the short title of ``Homeowner Energy 
Freedom Act.''

Section 2. Homeowner Energy Freedom

    This section repeals the following sections from the 
Inflation Reduction Act (P.L. 117-169): sections 50122, 50123, 
and 50131 and rescinds the unobligated balance of any amounts 
made available under these sections.

         Changes in Existing Law Made by the Bill, as Reported

    With respect to the requirement of clause 3(e) of rule XIII 
of the Rules of the House of Representatives, changes in 
existing law made by the bill, as reported, this section was 
not made available to the Committee in time for the filing of 
this report.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets and 
existing law in which no change is proposed is shown in roman):

                           PUBLIC LAW 117-169




           *       *       *       *       *       *       *
           TITLE V--COMMITTEE ON ENERGY AND NATURAL RESOURCES

Subtitle A--Energy

           *       *       *       *       *       *       *


       PART 2--RESIDENTIAL EFFICIENCY AND ELECTRIFICATION REBATES

SEC. 50121. HOME ENERGY PERFORMANCE-BASED, WHOLE-HOUSE REBATES.

  (a) Appropriation.--
          (1) In general.--In addition to amounts otherwise 
        available, there is appropriated to the Secretary for 
        fiscal year 2022, out of any money in the Treasury not 
        otherwise appropriated, $4,300,000,000, to remain 
        available through September 30, 2031, to carry out a 
        program to award grants to State energy offices to 
        develop and implement a HOMES rebate program.
          (2) Allocation of funds.--
                  (A) In general.--The Secretary shall reserve 
                funds made available under paragraph (1) for 
                each State energy office--
                          (i) in accordance with the allocation 
                        formula for the State Energy Program in 
                        effect on January 1, 2022; and
                          (ii) to be distributed to a State 
                        energy office if the application of the 
                        State energy office under subsection 
                        (b) is approved.
                  (B) Additional funds.--Not earlier than 2 
                years after the date of enactment of this Act, 
                any money reserved under subparagraph (A) but 
                not distributed under clause (ii) of that 
                subparagraph shall be redistributed to the 
                State energy offices operating a HOMES rebate 
                program using a grant received under this 
                section in proportion to the amount distributed 
                to those State energy offices under 
                subparagraph (A)(ii).
          (3) Administrative expenses.--Of the funds made 
        available under paragraph (1), the Secretary shall use 
        not more than 3 percent for--
                  (A) administrative purposes; and
                  (B) providing technical assistance relating 
                to activities carried out under this section.
  (b) Application.--A State energy office seeking a grant under 
this section shall submit to the Secretary an application that 
includes a plan to implement a HOMES rebate program, including 
a plan--
          (1) to use procedures, as approved by the Secretary, 
        for determining the reductions in home energy use 
        resulting from the implementation of a home energy 
        efficiency retrofit that are calibrated to historical 
        energy usage for a home consistent with BPI 2400, for 
        purposes of modeled performance home rebates;
          (2) to use open-source advanced measurement and 
        verification software, as approved by the Secretary, 
        for determining and documenting the monthly and hourly 
        (if available) weather-normalized energy use of a home 
        before and after the implementation of a home energy 
        efficiency retrofit, for purposes of measured 
        performance home rebates;
          (3) to value savings based on time, location, or 
        greenhouse gas emissions;
          (4) for quality monitoring to ensure that each home 
        energy efficiency retrofit for which a rebate is 
        provided is documented in a certificate that--
                  (A) is provided by the contractor and 
                certified by a third party to the homeowner; 
                and
                  (B) details the work performed, the equipment 
                and materials installed, and the projected 
                energy savings or energy generation to support 
                accurate valuation of the retrofit;
          (5) to provide a contractor performing a home energy 
        efficiency retrofit or an aggregator who has the right 
        to claim a rebate $200 for each home located in a 
        disadvantaged community that receives a home energy 
        efficiency retrofit for which a rebate is provided 
        under the program; and
          (6) to ensure that a homeowner or aggregator does not 
        receive a rebate for the same upgrade through both a 
        HOMES rebate program and any other Federal grant or 
        rebate program, pursuant to subsection (c)(7).
  (c) HOMES Rebate Program.--
          (1) In general.--A HOMES rebate program carried out 
        by a State energy office receiving a grant pursuant to 
        this section shall provide rebates to homeowners and 
        aggregators for whole-house energy saving retrofits 
        begun on or after the date of enactment of this Act and 
        completed by not later than September 30, 2031.
          (2) Amount of rebate.--Subject to paragraph (3), 
        under a HOMES rebate program, the amount of a rebate 
        shall not exceed--
                  (A) for individuals and aggregators carrying 
                out energy efficiency upgrades of single-family 
                homes--
                          (i) in the case of a retrofit that 
                        achieves modeled energy system savings 
                        of not less than 20 percent but less 
                        than 35 percent, the lesser of--
                                  (I) $2,000; and
                                  (II) 50 percent of the 
                                project cost;
                          (ii) in the case of a retrofit that 
                        achieves modeled energy system savings 
                        of not less than 35 percent, the lesser 
                        of--
                                  (I) $4,000; and
                                  (II) 50 percent of the 
                                project cost; and
                          (iii) for measured energy savings, in 
                        the case of a home or portfolio of 
                        homes that achieves energy savings of 
                        not less than 15 percent--
                                  (I) a payment rate per 
                                kilowatt hour saved, or 
                                kilowatt hour-equivalent saved, 
                                equal to $2,000 for a 20 
                                percent reduction of energy use 
                                for the average home in the 
                                State; or
                                  (II) 50 percent of the 
                                project cost;
                  (B) for multifamily building owners and 
                aggregators carrying out energy efficiency 
                upgrades of multifamily buildings--
                          (i) in the case of a retrofit that 
                        achieves modeled energy system savings 
                        of not less than 20 percent but less 
                        than 35 percent, $2,000 per dwelling 
                        unit, with a maximum of $200,000 per 
                        multifamily building;
                          (ii) in the case of a retrofit that 
                        achieves modeled energy system savings 
                        of not less than 35 percent, $4,000 per 
                        dwelling unit, with a maximum of 
                        $400,000 per multifamily building; or
                          (iii) for measured energy savings, in 
                        the case of a multifamily building or 
                        portfolio of multifamily buildings that 
                        achieves energy savings of not less 
                        than 15 percent--
                                  (I) a payment rate per 
                                kilowatt hour saved, or 
                                kilowatt hour-equivalent saved, 
                                equal to $2,000 for a 20 
                                percent reduction of energy use 
                                per dwelling unit for the 
                                average multifamily building in 
                                the State; or
                                  (II) 50 percent of the 
                                project cost; and
                  (C) for individuals and aggregators carrying 
                out energy efficiency upgrades of a single-
                family home occupied by a low- or moderate-
                income household or a multifamily building not 
                less than 50 percent of the dwelling units of 
                which are occupied by low- or moderate-income 
                households--
                          (i) in the case of a retrofit that 
                        achieves modeled energy system savings 
                        of not less than 20 percent but less 
                        than 35 percent, the lesser of--
                                  (I) $4,000 per single-family 
                                home or dwelling unit; and
                                  (II) 80 percent of the 
                                project cost;
                          (ii) in the case of a retrofit that 
                        achieves modeled energy system savings 
                        of not less than 35 percent, the lesser 
                        of--
                                  (I) $8,000 per single-family 
                                home or dwelling unit; and
                                  (II) 80 percent of the 
                                project cost; and
                          (iii) for measured energy savings, in 
                        the case of a single-family home, 
                        multifamily building, or portfolio of 
                        single-family homes or multifamily 
                        buildings that achieves energy savings 
                        of not less than 15 percent--
                                  (I) a payment rate per 
                                kilowatt hour saved, or 
                                kilowatt hour-equivalent saved, 
                                equal to $4,000 for a 20 
                                percent reduction of energy use 
                                per single-family home or 
                                dwelling unit, as applicable, 
                                for the average single-family 
                                home or multifamily building in 
                                the State; or
                                  (II) 80 percent of the 
                                project cost.
          (3) Rebates to low- or moderate-income households.--
        On approval from the Secretary, notwithstanding 
        paragraph (2), a State energy office carrying out a 
        HOMES rebate program using a grant awarded pursuant to 
        this section may increase rebate amounts for low- or 
        moderate-income households.
          (4) Use of funds.--A State energy office that 
        receives a grant pursuant to this section may use not 
        more than 20 percent of the grant amount for planning, 
        administration, or technical assistance related to a 
        HOMES rebate program.
          (5) Data access guidelines.--The Secretary shall 
        develop and publish guidelines for States relating to 
        residential electric and natural gas energy data 
        sharing.
          (6) Exemption.--Activities carried out by a State 
        energy office using a grant awarded pursuant to this 
        section shall not be subject to the expenditure 
        prohibitions and limitations described in section 
        420.18 of title 10, Code of Federal Regulations.
          (7) Prohibition on combining rebates.--A rebate 
        provided by a State energy office under a HOMES rebate 
        program may not be combined with any other Federal 
        grant or rebate[, including a rebate provided under a 
        high-efficiency electric home rebate program (as 
        defined in section 50122(d)),] for the same single 
        upgrade.
  (d) Definitions.--In this section:
          (1) Disadvantaged community.--The term 
        ``disadvantaged community'' means a community that the 
        Secretary determines, based on appropriate data, 
        indices, and screening tools, is economically, 
        socially, or environmentally disadvantaged.
          (2) HOMES rebate program.--The term ``HOMES rebate 
        program'' means a Home Owner Managing Energy Savings 
        rebate program established by a State energy office as 
        part of an approved State energy conservation plan 
        under the State Energy Program.
          (3) Low- or moderate-income household.--The term 
        ``low- or moderate-income household'' means an 
        individual or family the total annual income of which 
        is less than 80 percent of the median income of the 
        area in which the individual or family resides, as 
        reported by the Department of Housing and Urban 
        Development, including an individual or family that has 
        demonstrated eligibility for another Federal program 
        with income restrictions equal to or below 80 percent 
        of area median income.

[SEC. 50122. HIGH-EFFICIENCY ELECTRIC HOME REBATE PROGRAM.

  [(a) Appropriations.--
          [(1) Funds to state energy offices and indian 
        tribes.--In addition to amounts otherwise available, 
        there is appropriated to the Secretary for fiscal year 
        2022, out of any money in the Treasury not otherwise 
        appropriated, to carry out a program--
                  [(A) to award grants to State energy offices 
                to develop and implement a high-efficiency 
                electric home rebate program in accordance with 
                subsection (c), $4,275,000,000, to remain 
                available through September 30, 2031; and
                  [(B) to award grants to Indian Tribes to 
                develop and implement a high-efficiency 
                electric home rebate program in accordance with 
                subsection (c), $225,000,000, to remain 
                available through September 30, 2031.
          [(2) Allocation of funds.--
                  [(A) State energy offices.--The Secretary 
                shall reserve funds made available under 
                paragraph (1)(A) for each State energy office--
                          [(i) in accordance with the 
                        allocation formula for the State Energy 
                        Program in effect on January 1, 2022; 
                        and
                          [(ii) to be distributed to a State 
                        energy office if the application of the 
                        State energy office under subsection 
                        (b) is approved.
                  [(B) Indian tribes.--The Secretary shall 
                reserve funds made available under paragraph 
                (1)(B)--
                          [(i) in a manner determined 
                        appropriate by the Secretary; and
                          [(ii) to be distributed to an Indian 
                        Tribe if the application of the Indian 
                        Tribe under subsection (b) is approved.
                  [(C) Additional funds.--Not earlier than 2 
                years after the date of enactment of this Act, 
                any money reserved under--
                          [(i) subparagraph (A) but not 
                        distributed under clause (ii) of that 
                        subparagraph shall be redistributed to 
                        the State energy offices operating a 
                        high-efficiency electric home rebate 
                        program in proportion to the amount 
                        distributed to those State energy 
                        offices under that clause; and
                          [(ii) subparagraph (B) but not 
                        distributed under clause (ii) of that 
                        subparagraph shall be redistributed to 
                        the Indian Tribes operating a high-
                        efficiency electric home rebate program 
                        in proportion to the amount distributed 
                        to those Indian Tribes under that 
                        clause.
          [(3) Administrative expenses.--Of the funds made 
        available under paragraph (1), the Secretary shall use 
        not more than 3 percent for--
                  [(A) administrative purposes; and
                  [(B) providing technical assistance relating 
                to activities carried out under this section.
  [(b) Application.--A State energy office or Indian Tribe 
seeking a grant under the program shall submit to the Secretary 
an application that includes a plan to implement a high-
efficiency electric home rebate program, including--
          [(1) a plan to verify the income eligibility of 
        eligible entities seeking a rebate for a qualified 
        electrification project;
          [(2) a plan to allow rebates for qualified 
        electrification projects at the point of sale in a 
        manner that ensures that the income eligibility of an 
        eligible entity seeking a rebate may be verified at the 
        point of sale;
          [(3) a plan to ensure that an eligible entity does 
        not receive a rebate for the same qualified 
        electrification project through both a high-efficiency 
        electric home rebate program and any other Federal 
        grant or rebate program, pursuant to subsection (c)(8); 
        and
          [(4) any additional information that the Secretary 
        may require.
  [(c) High-efficiency Electric Home Rebate Program.--
          [(1) In general.--Under the program, the Secretary 
        shall award grants to State energy offices and Indian 
        Tribes to establish a high-efficiency electric home 
        rebate program under which rebates shall be provided to 
        eligible entities for qualified electrification 
        projects.
          [(2) Guidelines.--The Secretary shall prescribe 
        guidelines for high-efficiency electric home rebate 
        programs, including guidelines for providing point of 
        sale rebates in a manner consistent with the income 
        eligibility requirements under this section.
          [(3) Amount of rebate.--
                  [(A) Appliance upgrades.--The amount of a 
                rebate provided under a high-efficiency 
                electric home rebate program for the purchase 
                of an appliance under a qualified 
                electrification project shall be--
                          [(i) not more than $1,750 for a heat 
                        pump water heater;
                          [(ii) not more than $8,000 for a heat 
                        pump for space heating or cooling; and
                          [(iii) not more than $840 for--
                                  [(I) an electric stove, 
                                cooktop, range, or oven; or
                                  [(II) an electric heat pump 
                                clothes dryer.
                  [(B) Nonappliance upgrades.--The amount of a 
                rebate provided under a high-efficiency 
                electric home rebate program for the purchase 
                of a nonappliance upgrade under a qualified 
                electrification project shall be--
                          [(i) not more than $4,000 for an 
                        electric load service center upgrade;
                          [(ii) not more than $1,600 for 
                        insulation, air sealing, and 
                        ventilation; and
                          [(iii) not more than $2,500 for 
                        electric wiring.
                  [(C) Maximum rebate.--An eligible entity 
                receiving multiple rebates under this section 
                may receive not more than a total of $14,000 in 
                rebates.
          [(4) Limitations.--A rebate provided using funding 
        under this section shall not exceed--
                  [(A) in the case of an eligible entity 
                described in subsection (d)(1)(A)--
                          [(i) 50 percent of the cost of the 
                        qualified electrification project for a 
                        household the annual income of which is 
                        not less than 80 percent and not 
                        greater than 150 percent of the area 
                        median income; and
                          [(ii) 100 percent of the cost of the 
                        qualified electrification project for a 
                        household the annual income of which is 
                        less than 80 percent of the area median 
                        income;
                  [(B) in the case of an eligible entity 
                described in subsection (d)(1)(B)--
                          [(i) 50 percent of the cost of the 
                        qualified electrification project for a 
                        multifamily building not less than 50 
                        percent of the residents of which are 
                        households the annual income of which 
                        is not less than 80 percent and not 
                        greater than 150 percent of the area 
                        median income; and
                          [(ii) 100 percent of the cost of the 
                        qualified electrification project for a 
                        multifamily building not less than 50 
                        percent of the residents of which are 
                        households the annual income of which 
                        is less than 80 percent of the area 
                        median income; or
                  [(C) in the case of an eligible entity 
                described in subsection (d)(1)(C)--
                          [(i) 50 percent of the cost of the 
                        qualified electrification project for a 
                        household--
                                  [(I) on behalf of which the 
                                eligible entity is working; and
                                  [(II) the annual income of 
                                which is not less than 80 
                                percent and not greater than 
                                150 percent of the area median 
                                income; and
                          [(ii) 100 percent of the cost of the 
                        qualified electrification project for a 
                        household--
                                  [(I) on behalf of which the 
                                eligible entity is working; and
                                  [(II) the annual income of 
                                which is less than 80 percent 
                                of the area median income.
          [(5) Amount for installation of upgrades.--
                  [(A) In general.--In the case of an eligible 
                entity described in subsection (d)(1)(C) that 
                receives a rebate under the program and 
                performs the installation of the applicable 
                qualified electrification project, a State 
                energy office or Indian Tribe shall provide to 
                that eligible entity, in addition to the 
                rebate, an amount that--
                          [(i) does not exceed $500; and
                          [(ii) is commensurate with the scale 
                        of the upgrades installed as part of 
                        the qualified electrification project, 
                        as determined by the Secretary.
                  [(B) Treatment.--An amount received under 
                subparagraph (A) by an eligible entity 
                described in that subparagraph shall not be 
                subject to the requirement under paragraph (6).
          [(6) Requirement.--An eligible entity described in 
        subparagraph (C) of subsection (d)(1) shall discount 
        the amount of a rebate received for a qualified 
        electrification project from any amount charged by that 
        eligible entity to the eligible entity described in 
        subparagraph (A) or (B) of that subsection on behalf of 
        which the qualified electrification project is carried 
        out.
          [(7) Exemption.--Activities carried out by a State 
        energy office using a grant provided under the program 
        shall not be subject to the expenditure prohibitions 
        and limitations described in section 420.18 of title 
        10, Code of Federal Regulations.
          [(8) Prohibition on combining rebates.--A rebate 
        provided by a State energy office or Indian Tribe under 
        a high-efficiency electric home rebate program may not 
        be combined with any other Federal grant or rebate, 
        including a rebate provided under a HOMES rebate 
        program (as defined in section 50121(d)), for the same 
        qualified electrification project.
          [(9) Administrative costs.--A State energy office or 
        Indian Tribe that receives a grant under the program 
        shall use not more than 20 percent of the grant amount 
        for planning, administration, or technical assistance 
        relating to a high-efficiency electric home rebate 
        program.
  [(d) Definitions.--In this section:
          [(1) Eligible entity.--The term ``eligible entity'' 
        means--
                  [(A) a low- or moderate-income household;
                  [(B) an individual or entity that owns a 
                multifamily building not less than 50 percent 
                of the residents of which are low- or moderate-
                income households; and
                  [(C) a governmental, commercial, or nonprofit 
                entity, as determined by the Secretary, 
                carrying out a qualified electrification 
                project on behalf of an entity described in 
                subparagraph (A) or (B).
          [(2) High-efficiency electric home rebate program.--
        The term ``high-efficiency electric home rebate 
        program'' means a rebate program carried out by a State 
        energy office or Indian Tribe pursuant to subsection 
        (c) using a grant received under the program.
          [(3) Indian tribe.--The term ``Indian Tribe'' has the 
        meaning given the term in section 4 of the Indian Self-
        Determination and Education Assistance Act (25 U.S.C. 
        5304).
          [(4) Low- or moderate-income household.--The term 
        ``low- or moderate-income household'' means an 
        individual or family the total annual income of which 
        is less than 150 percent of the median income of the 
        area in which the individual or family resides, as 
        reported by the Department of Housing and Urban 
        Development, including an individual or family that has 
        demonstrated eligibility for another Federal program 
        with income restrictions equal to or below 150 percent 
        of area median income.
          [(5) Program.--The term ``program'' means the program 
        carried out by the Secretary under subsection (a)(1).
          [(6) Qualified electrification project.--
                  [(A) In general.--The term ``qualified 
                electrification project'' means a project 
                that--
                          [(i) includes the purchase and 
                        installation of--
                                  [(I) an electric heat pump 
                                water heater;
                                  [(II) an electric heat pump 
                                for space heating and cooling;
                                  [(III) an electric stove, 
                                cooktop, range, or oven;
                                  [(IV) an electric heat pump 
                                clothes dryer;
                                  [(V) an electric load service 
                                center;
                                  [(VI) insulation;
                                  [(VII) air sealing and 
                                materials to improve 
                                ventilation; or
                                  [(VIII) electric wiring;
                          [(ii) with respect to any appliance 
                        described in clause (i), the purchase 
                        of which is carried out--
                                  [(I) as part of new 
                                construction;
                                  [(II) to replace a 
                                nonelectric appliance; or
                                  [(III) as a first-time 
                                purchase with respect to that 
                                appliance; and
                          [(iii) is carried out at, or relating 
                        to, a single-family home or multifamily 
                        building, as applicable and defined by 
                        the Secretary.
                  [(B) Exclusions.--The term ``qualified 
                electrification project'' does not include any 
                project with respect to which the appliance, 
                system, equipment, infrastructure, component, 
                or other item described in subclauses (I) 
                through (VIII) of subparagraph (A)(i) is not 
                certified under the Energy Star program 
                established by section 324A of the Energy 
                Policy and Conservation Act (42 U.S.C. 6294a), 
                if applicable.

[SEC. 50123. STATE-BASED HOME ENERGY EFFICIENCY CONTRACTOR TRAINING 
                    GRANTS.

  [(a) Appropriation.--In addition to amounts otherwise 
available, there is appropriated to the Secretary for fiscal 
year 2022, out of any money in the Treasury not otherwise 
appropriated, $200,000,000, to remain available through 
September 30, 2031, to carry out a program to provide financial 
assistance to States to develop and implement a State program 
described in section 362(d)(13) of the Energy Policy and 
Conservation Act (42 U.S.C. 6322(d)(13)), which shall provide 
training and education to contractors involved in the 
installation of home energy efficiency and electrification 
improvements, including improvements eligible for rebates under 
a HOMES rebate program (as defined in section 50121(d)) or a 
high-efficiency electric home rebate program (as defined in 
section 50122(d)), as part of an approved State energy 
conservation plan under the State Energy Program.
  [(b) Use of Funds.--A State may use amounts received under 
subsection (a)--
          [(1) to reduce the cost of training contractor 
        employees;
          [(2) to provide testing and certification of 
        contractors trained and educated under a State program 
        developed and implemented pursuant to subsection (a); 
        and
          [(3) to partner with nonprofit organizations to 
        develop and implement a State program pursuant to 
        subsection (a).
  [(c) Administrative Expenses.--Of the amounts received by a 
State under subsection (a), a State shall use not more than 10 
percent for administrative expenses associated with developing 
and implementing a State program pursuant to that subsection.]

               PART 3--BUILDING EFFICIENCY AND RESILIENCE

[SEC. 50131. ASSISTANCE FOR LATEST AND ZERO BUILDING ENERGY CODE 
                    ADOPTION.

  [(a) Appropriation.--In addition to amounts otherwise 
available, there is appropriated to the Secretary for fiscal 
year 2022, out of any money in the Treasury not otherwise 
appropriated--
          [(1) $330,000,000, to remain available through 
        September 30, 2029, to carry out activities under part 
        D of title III of the Energy Policy and Conservation 
        Act (42 U.S.C. 6321 through 6326) in accordance with 
        subsection (b); and
          [(2) $670,000,000, to remain available through 
        September 30, 2029, to carry out activities under part 
        D of title III of the Energy Policy and Conservation 
        Act (42 U.S.C. 6321 through 6326) in accordance with 
        subsection (c).
  [(b) Latest Building Energy Code.--The Secretary shall use 
funds made available under subsection (a)(1) for grants to 
assist States, and units of local government that have 
authority to adopt building codes--
          [(1) to adopt--
                  [(A) a building energy code (or codes) for 
                residential buildings that meets or exceeds the 
                2021 International Energy Conservation Code, or 
                achieves equivalent or greater energy savings;
                  [(B) a building energy code (or codes) for 
                commercial buildings that meets or exceeds the 
                ANSI/ASHRAE/IES Standard 90.1-2019, or achieves 
                equivalent or greater energy savings; or
                  [(C) any combination of building energy codes 
                described in subparagraph (A) or (B); and
          [(2) to implement a plan for the jurisdiction to 
        achieve full compliance with any building energy code 
        adopted under paragraph (1) in new and renovated 
        residential or commercial buildings, as applicable, 
        which plan shall include active training and 
        enforcement programs and measurement of the rate of 
        compliance each year.
  [(c) Zero Energy Code.--The Secretary shall use funds made 
available under subsection (a)(2) for grants to assist States, 
and units of local government that have authority to adopt 
building codes--
          [(1) to adopt a building energy code (or codes) for 
        residential and commercial buildings that meets or 
        exceeds the zero energy provisions in the 2021 
        International Energy Conservation Code or an equivalent 
        stretch code; and
          [(2) to implement a plan for the jurisdiction to 
        achieve full compliance with any building energy code 
        adopted under paragraph (1) in new and renovated 
        residential and commercial buildings, which plan shall 
        include active training and enforcement programs and 
        measurement of the rate of compliance each year.
  [(d) State Match.--The State cost share requirement under the 
item relating to ``Department of Energy--Energy Conservation'' 
in title II of the Department of the Interior and Related 
Agencies Appropriations Act, 1985 (42 U.S.C. 6323a; 98 Stat. 
1861), shall not apply to assistance provided under this 
section.
  [(e) Administrative Costs.--Of the amounts made available 
under this section, the Secretary shall reserve not more than 5 
percent for administrative costs necessary to carry out this 
section.]

           *       *       *       *       *       *       *


                             MINORITY VIEWS

    H.R. 1603, the Homeowner Energy Freedom Act, repeals three 
programs created by the Inflation Reduction Act, and rescinds 
any unobligated funds made available through these programs. 
The bill repeals $4.5 billion in funding for the High-
Efficiency Electric Home Rebate Program, $200 million in 
funding for the State-Based Home Energy Efficiency Contractor 
Training Grants, and $1 billion for Assistance for Latest and 
Zero Building Energy Code Adoption.
    We strongly reject this bill both on grounds of substance 
and process. The Committee Minority also rejects the claims and 
reasoning for this bill made in the Majority report for H.R. 
1603.
    H.R. 1603 repeals three programs established by the 
Inflation Reduction Act. While the Majority report frames these 
repeals as a protection of consumer choice, the programs 
repealed by H.R. 1603 are actually incredibly popular with 
Americans, and are urgent and necessary in our fight against 
climate change. The High-Efficiency Electric Home Rebate 
program provides funding for point-of-sale rebates for 
appliances and home upgrades. This program will help low- and 
moderate-income households electrify their homes, reduce their 
energy bills, and access the benefits of clean and efficient 
technology. Electrification and energy efficiency are important 
tools in the fight against climate change. According to the 
International Energy Agency, energy efficiency has the ability 
to achieve 40 percent of the required emissions reductions 
under the Paris Agreement.\1\ Electrification prevents against 
the indoor harmful toxins produced by fossil fuel combustion, 
which disproportionately affects low-income households.\2\ 
Additionally, Rewiring America finds that by installing a 
modern electric heat pump to replace a furnace, a heat pump for 
water heating, installing rooftop solar, and converting to an 
electric vehicle, a household will save $1,800 on energy bills 
a year.\3\ The electrification rebates repealed by H.R. 1603 
will help households access the appliances that result in these 
savings, and insulates them from the price volatility of fossil 
fuels.
---------------------------------------------------------------------------
    \1\International Energy Agency, How Energy Efficiency Will Power 
Net Zero Climate Goals (Mar. 29, 2021) (www.iea.org/commentaries/how-
energy-efficiency-will-power-net-zero-climate-goals).
    \2\We Need to Get Fossil Gas Out of Homes, For the Climate and Our 
Health, Canary Media (Feb. 9, 2023) (www.canarymedia.com/articles/
electrification/we-need-to-get-fossil-gas-out-of-homes-for-the-climate-
and-our-health).
    \3\Rewiring America, The Electric Explainer: Key Programs in the 
Inflation Reduction Act and What They Mean for Americans 
(www.rewiringamerica.org/policy/inflation-reduction-act) (accessed Mar. 
26, 2023).
---------------------------------------------------------------------------
    Along with the electrification rebates, H.R. 1603 repeals 
assistance for contractor training grants. The State-Based 
Contractor Training Grants provide assistance for job and 
workforce training in the efficiency and electrification space. 
Current trends show that 80-91 percent of employers report 
hiring difficulties in energy efficiency.\4\ There is a clear 
demand for workforce training in the industry, and H.R. 1603 
removes this necessary and important funding.
---------------------------------------------------------------------------
    \4\Department of Energy, United States Energy and Employment Report 
2022, at 136 (June 2022).
---------------------------------------------------------------------------
    H.R. 1603 also repeals assistance for building energy code 
adoption. Building energy code adoption assistance will help 
reduce emissions from residential and commercial building stock 
through energy code adoption, thus reducing energy consumed and 
lowering energy bills. The Majority claims that the adoption of 
these codes would add to the cost of new homes. These claims 
are challenged by recent findings that show that all-electric, 
single-family new construction is more economical to build than 
a home with gas appliances.\5\ These households also have 
significantly lower lifetime emissions.
---------------------------------------------------------------------------
    \5\Rocky Mountain Institute, The Economics of Electrifying 
Buildings: Residential New Construction (2022).
---------------------------------------------------------------------------
    Additionally, H.R. 1603 did not go through regular order. 
The bill did not have a legislative hearing and did not have a 
subcommittee markup. In fact, H.R. 1603 was introduced on March 
14, 2023, and the text was already included in H.R. 1, the 
Lower Energy Costs Act. We did not receive expert testimony on 
this bill, and we were not offered the opportunity to examine 
this bill through regular order.
    The Majority report argues that this bill is needed to 
protect consumer choice and keep home energy costs affordable. 
Interestingly, the Majority seems to think that the best way to 
protect consumer choice is to remove optional, point-of-sale 
rebates for low- and moderate-income households, remove 
assistance for workforce training, and remove assistance for 
building code adoption--programs that all actually enable 
access to clean and efficient technology and energy bill 
savings. The programs being repealed by H.R. 1603 are not 
mandates. They are optional programs that increase access to 
efficient appliances, reduce energy bills, improve indoor air 
quality, and reduce emissions. The Majority, by repealing these 
programs, argues that it is defending consumers, when they are 
in fact doing the opposite.
    For the reasons stated above, we dissent from the views 
contained in the Committee's report.
                                        Frank Pallone, Jr.,
                  Ranking Member, Committee on Energy and Commerce.

                                  [all]