[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 1713 Introduced in Senate (IS)]
114th CONGRESS
1st Session
S. 1713
To require the Secretary of Energy to provide loans and grants for
solar installations in low-income and underserved areas.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
July 7, 2015
Mr. Sanders (for himself and Mr. Merkley) introduced the following
bill; which was read twice and referred to the Committee on Energy and
Natural Resources
_______________________________________________________________________
A BILL
To require the Secretary of Energy to provide loans and grants for
solar installations in low-income and underserved areas.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Low-Income Solar Act''.
SEC. 2. LOAN AND GRANT PROGRAM FOR SOLAR INSTALLATIONS IN LOW-INCOME
AND UNDERSERVED AREAS.
(a) Definitions.--In this section:
(1) Administrative expenses.--The term ``administrative
expenses'' has such meaning as may be established by the
Secretary.
(2) Community solar facility.--The term ``community solar
facility'' means a community-based distributed photovoltaic
solar electricity generating facility that, as determined by
the Secretary--
(A) is owned by a subscriber organization;
(B) has a nameplate rating of 2 megawatts or less;
(C) is located in or near a community of
subscribers to whom the beneficial use of the
electricity generated by the facility belongs; and
(D) reserves not less than 25 percent of the
quantity of electricity generated by the facility for
low-income households that are subscribers to the
facility.
(3) Grant-eligible household.--The term ``grant-eligible
household'' means a household the members of which--
(A) earn an income equal to 80 percent or less of
the applicable area median income, as defined for the
applicable year by the Secretary of Housing and Urban
Development; and
(B) reside in an owner-occupied home.
(4) Indian tribe.--The term ``Indian tribe'' means any
Indian tribe, band, nation, or other organized group or
community, including any Alaskan Native village or regional or
village corporation (as defined in, or established pursuant to,
the Alaska Native Claims Settlement Act (43 U.S.C. 1601 et
seq.)), that is recognized as eligible for the special programs
and services provided by the United States to Indians because
of their status as Indians.
(5) Loan-eligible entity.--The term ``loan-eligible
entity'' means--
(A) a nonprofit entity;
(B) a unit of State, territorial, or local
government;
(C) an Indian tribe;
(D) a rural community (as defined in section 343(a)
of the Consolidated Farm and Rural Development Act (7
U.S.C. 1991(a)); and
(E) any other national or regional entity that--
(i) deploys a safe, high-quality
photovoltaic solar electricity generating
facility for consumers under a model that
maximizes energy savings to those consumers;
and
(ii) has experience, as determined by the
Secretary, installing solar systems using a job
training or community volunteer-based
installation model.
(6) Low-income household.--The term ``low-income
household'' means a household with an income equal to 80
percent or less of the applicable area median income, as
defined for the applicable year by the Secretary of Housing and
Urban Development.
(7) Multi-family affordable housing.--The term ``multi-
family affordable housing'' means any federally subsidized
affordable housing complex in which at least 50 percent of the
units are reserved for low-income households.
(8) Photovoltaic solar electricity generating facility.--
The term ``photovoltaic solar electricity generating facility''
means--
(A) a generator that creates electricity from light
photons; and
(B) the accompanying hardware enabling that
electricity to flow--
(i) onto the electric grid; or
(ii) into an energy storage device.
(9) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
(10) Subscriber.--The term ``subscriber'' means an
electricity consumer who--
(A) owns a subscription, or an equivalent unit or
share of the capacity or generation, of a community
solar facility;
(B) has identified 1 or more physical locations--
(i) to which the subscription will be
attributed;
(ii) within the same electric utility
service territory, or within the same
geographical area, as the community solar
facility, in accordance with applicable State
and local law; and
(iii) that may change from time to time,
subject to the condition that the physical
location shall be within the geographical
limits allowed for a subscriber of the
applicable community solar facility; and
(C) confirms the status of the consumer as a grant-
eligible household for each applicable fiscal year.
(11) Subscription.--The term ``subscription'' means a share
in the capacity, or a proportional interest in the solar
electricity generation, of a community solar facility.
(12) Underserved area.--The term ``underserved area'' means
a geographical area with low or no photovoltaic solar
deployment, as determined by the Secretary.
(b) Establishment of Loan and Grant Program.--
(1) In general.--The Secretary shall establish a program
under which the Secretary shall provide loans and grants to
grant-eligible households and loan-eligible entities for use in
accordance with this section.
(2) Funding.--
(A) In general.--Subject to the availability of
appropriations, the Secretary shall make grants and
issue loans in accordance with this subsection.
(B) Loans.--Subject to subparagraph (D), not more
than 50 percent of funds made available under
subparagraph (A) for a fiscal year shall be used to
provide loans to loan-eligible entities for--
(i) community solar facilities; or
(ii) multi-family affordable housing solar
installations.
(C) Grants.--After allocating amounts to carry out
subparagraph (B), the Secretary shall use the remaining
funds made available under subparagraph (A) for a
fiscal year to provide grants to grant-eligible
households--
(i) to pay the upfront costs of
photovoltaic solar electricity generating
facilities; or
(ii) for any other eligible use described
in subsection (e).
(D) Increase in grant amount.--Notwithstanding
subparagraph (A), if the Secretary determines that more
than 50 percent of the amounts described in that
subparagraph are necessary during any of fiscal years
2016 through 2030 to provide grants to encourage
innovative financing and installation models to reach
underserved markets, the Secretary may use more than 50
percent of those amounts to provide those grants.
(3) Goals and accountability.--
(A) In general.--In providing loans and grants
under this subsection, the Secretary shall take such
actions as may be necessary to ensure that--
(i) the assistance provided under this
subsection is used to facilitate and encourage
innovative solar installation and financing
models, under which the recipients develop and
install photovoltaic solar electricity
generating facilities that provide significant
savings to low-income households while
providing job training or community engagement
opportunities with respect to each solar system
installed;
(ii) loan and grant recipients shall--
(I) have installed not less than
600 kilowatts of photovoltaic solar
energy during the 2-year period
preceding the date on which the loan or
grant is provided to ensure consumer
protection; or
(II) until the goal described in
subclause (I) is achieved, enter into
partnership with an entity that--
(aa) has not less than 2
years of experience deploying
solar photovoltaic systems for
low-income households in a
manner that maximizes the
savings benefits of solar
access; and
(bb) was primarily
responsible for the
installation of at least 2
megawatts of solar energy
during the 2-year period
preceding the date on which the
loan or grant is provided;
(iii) the photovoltaic solar electricity
generating facilities installed using
assistance provided under this subsection are
safe, high-quality systems that comply with
local building and safety codes and standards;
(iv) the provision of assistance under this
subsection establishes and fosters a
partnership between the Federal Government and
grant-eligible households and loan-eligible
entities, resulting in efficient development of
solar installations with--
(I) minimal governmental
intervention;
(II) limited governmental
regulation; and
(III) significant involvement by
nonprofit and private entities;
(v) solar projects installed using
assistance provided under this subsection--
(I) shall include job training; and
(II) may include community
participation in which job trainees and
volunteers assist in the development of
solar projects;
(vi) assistance provided under this
subsection prioritizes development in--
(I) areas with low photovoltaic
penetration;
(II) rural areas;
(III) Indian tribal areas; and
(IV) other underserved areas,
including Alaskan Native and
Appalachian communities;
(vii) solar systems are developed using
assistance provided under this subsection on a
geographically diverse basis among the grant-
eligible households and loan-eligible entities;
and
(viii) to the maximum extent practicable,
solar installation activities for which
assistance is provided under this section
leverage, or connect grant-eligible households
to, federally or locally subsidized
weatherization and energy efficiency efforts
that meet or exceed local energy efficiency
standards.
(B) Determination.--If, at any time, the Secretary
determines that the goals described in this paragraph
cannot be met by providing assistance in accordance
with this subsection, the Secretary shall immediately
submit to the appropriate committees of Congress a
written notice of that determination, including any
proposed changes necessary to achieve the goals under
this paragraph.
(4) Community solar facilities.--
(A) In general.--A community solar facility may use
a loan provided under this subsection only to offset
the costs of generation and provision of solar energy
to low-income households that are subscribers of the
community solar facility.
(B) Transfer and assignment of subscriptions.--A
subscription to a community solar facility that
receives assistance under this subsection may be
transferred or assigned by the subscriber to--
(i) any subscriber organization; or
(ii) any individual or entity who qualifies
to be a subscriber to that community solar
facility.
(C) Treatment.--
(i) In general.--No owner, operator, or
subscriber of a community solar facility that
receives assistance under this subsection shall
be subject to regulation by the Federal Energy
Regulatory Commission solely as a result of an
interest in the community solar facility.
(ii) Price of subscription.--The price paid
for any subscription to a community solar
facility shall not be subject to the regulation
of any Federal department, agency, or
commission.
(c) National Competition.--
(1) In general.--The Secretary shall select grant-eligible
households and loan-eligible entities to receive loans or
grants under this section through a nationwide competitive
process, to be established by the Secretary.
(2) Applications.--To be eligible to receive a loan or
grant under this section, a grant-eligible household or loan-
eligible entity shall submit to the Secretary an application at
such time, in such manner, and containing such information as
the Secretary may require.
(3) Requirements.--In selecting grant-eligible households
and loan-eligible entities to receive loans or grants under
this section, the Secretary shall, at a minimum--
(A) require that the grant-eligible household or
loan-eligible entity--
(i) enter into a grant or loan agreement,
as applicable, under subsection (d); and
(ii) has obtained financial commitments (or
has demonstrated the capacity to obtain
financial commitments) necessary to comply with
that agreement;
(B) ensure that loans and grants are provided, and
amounts are used, in a manner that results in
geographical diversity throughout the United States and
within States, territories, and Indian tribal land
among photovoltaic solar electricity generating
facilities installed using the assistance provided
under this section;
(C) to the maximum extent practicable, expand
photovoltaic solar energy availability to--
(i) geographical areas, throughout the
United States and within States, territories,
and Indian tribal land, with--
(I) low photovoltaic solar
penetration; or
(II) areas with a higher cost
burden with respect to the deployment
or installation of photovoltaic solar
electricity generating facilities;
(ii) rural communities;
(iii) Indian tribes; and
(iv) other underserved areas, including
Appalachian and Alaska Native communities;
(D) take into account the warranty period and
quality of the applicable photovoltaic solar
electricity generating facility equipment and any
necessary interconnecting equipment; and
(E) ensure all calculations for estimated household
energy savings are based solely on electricity offsets
from the photovoltaic solar electricity generating
facilities.
(d) Loan and Grant Agreements.--
(1) In general.--As a condition of receiving a loan or
grant under this section, a grant-eligible household or loan-
eligible entity shall enter into a loan or grant agreement, as
applicable, with the Secretary.
(2) Requirements.--A loan or grant agreement under this
subsection shall--
(A) require the grant-eligible household or loan-
eligible entity--
(i) to use the assistance provided under
this section only in accordance with this
section;
(ii) to install such number of solar
systems with such defined capacity target
(expressed in megawatts) as may be established
by the Secretary, taking into consideration the
costs associated with carrying out loan or
grant obligations in the areas in which the
solar systems will be developed;
(iii) to use the assistance in a manner
that leverages other sources of funding (other
than loans or grants under this section),
including private or public funds, in
developing the solar projects; and
(iv) to establish loan terms, if
applicable, that maximize the benefit to the
low-income households receiving solar energy
from the loan-eligible entity;
(B) require the Secretary to rescind any amounts
provided to the grant-eligible household or loan-
eligible entity that are not used during the 2-year
period beginning on the date on which the amounts are
initially distributed to the grant-eligible household
or loan-eligible entity, except in any case in which
the grant-eligible household or loan-eligible entity
has demonstrated to the satisfaction of the Secretary
that a longer period, not to exceed 3 years after the
date of initial distribution, is necessary to deliver
proposed services;
(C) for a loan provided under this section,
establish--
(i) an interest rate equal to the then-
current cost of funds to the Department of the
Treasury for obligations of comparable maturity
to the loan; and
(ii) a payout time that maximizes the
savings to customers during the effective
period of the agreement; and
(D) contain such other terms as the Secretary may
require to ensure compliance with the requirements of
this section.
(e) Use.--A grant-eligible household or loan-eligible entity shall
use a loan or grant provided under this section only for the following
activities, for the purpose of developing new photovoltaic solar
projects in the United States for low-income households and individuals
who otherwise would likely be unable to afford or purchase photovoltaic
solar systems:
(1) Photovoltaic solar equipment and installation.--To pay
the costs of--
(A) solar equipment, including only photovoltaic
solar equipment and storage and all hardware or
software components relating to safely producing,
monitoring, and connecting the system to the electric
grid or onsite storage; and
(B) installation, including all direct labor
associated with installing the photovoltaic solar
equipment.
(2) Job training.--To fund onsite job training and
community or volunteer engagement, including--
(A) only job training costs directly associated
with the solar projects funded under this section; and
(B) job training opportunities that may cover the
full range of the solar value chain, such as marketing
and outreach, customer acquisition, system design, and
installation positions.
(3) Deployment support.--To fund entities that have a
demonstrated ability, as determined by the Secretary--
(A) to advise State and local entities regarding
low-income solar policy, regulatory, and program design
to continue and expand the work of the entities;
(B) to foster community outreach and education
regarding the benefits of photovoltaic solar energy for
low-income and disadvantaged communities; or
(C) to provide apprenticeship program opportunities
registered and approved by--
(i) the Office of Apprenticeship of the
Department of Labor pursuant to part 29 of
title 29, Code of Federal Regulations (or
successor regulations); or
(ii) a State Apprenticeship Agency
recognized by that Office.
(4) Administration.--To pay the administrative expenses of
the grant-eligible household or loan-eligible entity, including
preproject feasibility efforts, in carrying out the duties of
the Secretary associated with delivering proposed services,
subject to the requirement that not more than 15 percent of the
total amount of the assistance provided to the grant-eligible
household or loan-eligible entity under this section may be
used for administrative expenses.
(f) Compliance.--
(1) Records and audits.--During the period beginning on the
date of initial distribution to a grant-eligible household or
loan-eligible entity of a loan or grant under this section and
ending on the termination date of the loan or grant under
subsection (g), the grant-eligible household or loan-eligible
entity shall maintain such records and adopt such
administrative practices as the Secretary may require to ensure
compliance with the requirements of this section and the
applicable loan or grant agreement.
(2) Determination by secretary.--If the Secretary
determines that a grant-eligible household or loan-eligible
entity that receives a grant or loan under this section has
not, during the 2-year period beginning on the date of initial
distribution to the grant-eligible household or loan-eligible
entity of the assistance (or such longer period as is
established under subsection (d)(2)(B)), substantially
fulfilled the obligations of the grant-eligible household or
loan-eligible entity under the applicable loan or grant
agreement, the Secretary shall--
(A) rescind the balance of any funds distributed
to, but not used by, the grant-eligible household or
loan-eligible entity under this section; and
(B) use those amounts to provide other loans or
grants in accordance with this section.
(g) Termination.--The Secretary shall terminate a loan or grant
provided under this section on a determination that the total amount of
the loan or grant (excluding any interest, fees, and other earnings of
the loan or grant) has been--
(1) fully expended by the grant-eligible household or loan-
eligible entity; or
(2) returned to the Secretary.
(h) Regulations.--Not later than 90 days after the date of
enactment of this Act, the Secretary shall promulgate such regulations
as the Secretary determines to be necessary to carry out this section,
to take effect on the date of promulgation.
(i) Funding.--There is authorized to be appropriated to the
Secretary to carry out this section $200,000,000 for each of fiscal
years 2016 through 2030, to remain available until expended.
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