[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 878 Introduced in Senate (IS)]
114th CONGRESS
1st Session
S. 878
To establish a State residential building energy efficiency upgrades
loan pilot program.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 26, 2015
Mr. Sanders (for himself, Ms. Cantwell, Mr. Wyden, Mr. King, Mr.
Whitehouse, Mr. Markey, and Mr. Franken) introduced the following bill;
which was read twice and referred to the Committee on Energy and
Natural Resources
_______________________________________________________________________
A BILL
To establish a State residential building energy efficiency upgrades
loan pilot program.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. STATE RESIDENTIAL BUILDING ENERGY EFFICIENCY UPGRADES LOAN
PILOT PROGRAM.
(a) Loans for Residential Building Energy Efficiency Upgrades.--
Part D of title III of the Energy Policy and Conservation Act (42
U.S.C. 6321 et seq.) is amended by adding at the end the following:
``SEC. 367. LOANS FOR RESIDENTIAL BUILDING ENERGY EFFICIENCY UPGRADES.
``(a) Definitions.--In this section:
``(1) Consumer-friendly.--The term `consumer-friendly',
with respect to a loan repayment approach, means a loan
repayment approach that--
``(A) emphasizes convenience for customers;
``(B) is of low cost to consumers; and
``(C) emphasizes simplicity and ease of use for
consumers in the billing process.
``(2) Eligible entity.--The term `eligible entity' means--
``(A) a State or territory of the United States;
and
``(B) a tribal organization (as defined in section
4 of the Indian Self-Determination and Education
Assistance Act (25 U.S.C. 450b)).
``(3) Energy advisor program.--
``(A) In general.--The term `energy advisor
program' means any program to provide to owners or
residents of residential buildings advice, information,
and support in the identification, prioritization, and
implementation of energy efficiency and energy savings
measures.
``(B) Inclusions.--The term `energy advisor
program' includes a program that provides--
``(i) interpretation of energy audit
reports;
``(ii) assistance in the prioritization of
improvements;
``(iii) assistance in finding qualified
contractors;
``(iv) assistance in contractor bid
reviews;
``(v) education on energy conservation and
energy efficiency;
``(vi) explanations of available incentives
and tax credits;
``(vii) assistance in completion of rebate
and incentive paperwork; and
``(viii) any other similar type of support.
``(4) Energy efficiency.--The term `energy efficiency'
means a decrease in homeowner or residential tenant consumption
of energy (including electricity and thermal energy) that is
achieved without reducing the quality of energy services
through--
``(A) a measure or program that targets customer
behavior;
``(B) equipment or energy systems;
``(C) a device; or
``(D) other material.
``(5) Energy efficiency upgrade.--
``(A) In general.--The term `energy efficiency
upgrade' means any project or activity--
``(i) the primary purpose of which is
increasing energy efficiency; and
``(ii) that is carried out on a residential
building.
``(B) Inclusions.--The term `energy efficiency
upgrade' includes the installation or improvement of a
renewable energy facility for heating or electricity
generation serving a residential building carried out
in conjunction with an energy efficiency project or
activity.
``(6) Program entity.--The term `program entity' means a
local government, utility, or other entity that carries out a
financing program under subsection (e)(2)(A) pursuant to a
contract or other agreement with an eligible entity.
``(7) Recipient household.--The term `recipient household'
means the owner or tenant of a residential building who
receives financing under this section for an energy efficiency
upgrade of the residential building.
``(8) Residential building.--
``(A) In general.--The term `residential building'
means a building used for residential purposes.
``(B) Inclusions.--The term `residential building'
includes--
``(i) a single-family residence;
``(ii) a multifamily residence composed not
more than 4 units; and
``(iii) a mixed-use building that includes
not more than 4 residential units.
``(b) Establishment of Program.--
``(1) In general.--The Secretary shall establish a program
under this part under which the Secretary shall make available
to eligible entities loans for the purpose of establishing or
expanding programs that provide to recipient households
financing for energy efficiency upgrades of residential
buildings.
``(2) Consultation.--In establishing the program under
paragraph (1), the Secretary shall consult, as the Secretary
determines to be appropriate, with stakeholders and the public.
``(3) No requirement to participate.--No eligible entity
shall be required to participate in any manner in the program
established under paragraph (1).
``(4) Deadlines.--The Secretary shall--
``(A) not later than 1 year after the date of
enactment of this section, implement the program
established under paragraph (1) (including soliciting
applications from eligible entities in accordance with
subsection (c)); and
``(B) not later than 2 years after the date of
enactment of this section, disburse the initial loans
provided under this section.
``(c) Applications.--
``(1) In general.--To be eligible to receive a loan under
this section, an eligible entity shall submit to the Secretary
an application at such time, in such manner, and containing
such information as the Secretary may require.
``(2) Selection date.--Not later than 21 months after the
date of enactment of this section, the Secretary shall select
eligible entities to receive the initial loans provided under
this section, in accordance with the requirements described in
paragraph (3).
``(3) Requirements.--In selecting eligible entities to
receive loans under this section, the Secretary shall--
``(A) to the maximum extent practicable, ensure--
``(i) that both innovative and established
approaches to the challenges of financing
energy efficiency upgrades are supported;
``(ii) that energy efficiency upgrades are
conducted and validated to comply with best
practices for work quality, as determined by
the Secretary;
``(iii) regional diversity among eligible
entities that receive the loans, including
participation by rural States and small States;
``(iv) significant participation by
families with income levels at or below the
median income level for the applicable
geographical region, as determined by the
Secretary; and
``(v) the incorporation of an energy
advisor program by, as applicable--
``(I) eligible entities; or
``(II) program entities;
``(B) evaluate applications based primarily on--
``(i) the projected reduction in energy
use, as determined in accordance with such
specific and commonly available methodology as
the Secretary shall establish, by regulation;
``(ii) the creditworthiness of the eligible
entity; and
``(iii) the incorporation of measures for
making the loan repayment system for recipient
households as consumer-friendly as practicable;
``(C) evaluate applications based secondarily on--
``(i) the extent to which the proposed
financing program of the eligible entity
incorporates best practices for such a program,
as determined by the Secretary;
``(ii)(I) whether the eligible entity has
created a plan for evaluating the effectiveness
of the proposed financing program; and
``(II) whether that plan includes--
``(aa) a robust strategy for
collecting, managing, and analyzing
data, as well as making the data
available to the public; and
``(bb) experimental studies, which
may include investigations of how human
behavior impacts the effectiveness of
efficiency improvements;
``(iii) the extent to which Federal funds
are matched by funding from State, local,
philanthropic, private sector, and other
sources;
``(iv) the extent to which the proposed
financing program will be coordinated and
marketed with other existing or planned energy
efficiency or energy conservation programs
administered by--
``(I) utilities and rural
cooperatives;
``(II) State, tribal, territorial,
or local governments; or
``(III) community development
financial institutions; and
``(v) such other factors as the Secretary
determines to be appropriate; and
``(D) not provide an advantage or disadvantage to
applications that include renewable energy in the
program.
``(d) Administrative Provisions.--
``(1) Term.--The Secretary shall establish terms for loans
provided to eligible entities under this section--
``(A) in a manner that--
``(i) provides for a high degree of cost
recovery; and
``(ii) ensures that, with respect to all
loans provided to or by eligible entities under
this section, the loans are competitive with,
or superior to, other forms of financing for
similar purposes; and
``(B) subject to the condition that the term of a
loan provided to an eligible entity under this section
shall not exceed 35 years.
``(2) Interest rates.--
``(A) In general.--Subject to subparagraph (B), the
Secretary, at the discretion of the Secretary, shall
charge interest on a loan provided to an eligible
entity under this section at a fixed rate equal, or
approximately equal, to the interest rate charged on
Treasury securities of comparable maturity.
``(B) Leveraged loans.--The interest rate and other
terms of the loans provided to eligible entities under
this section shall be established in a manner that
ensures that the total amount of the loans is equal to
not less than 20 times, and not more than 50 times, an
amount equivalent to 80 percent of the amount
appropriated for administrative and general financial
support costs pursuant to subsection (g)(2).
``(3) No penalty on early repayment.--The Secretary shall
not assess any penalty for early repayment by an eligible
entity of a loan provided under this section.
``(4) Return of unused portion.--As a condition of receipt
of a loan under this section, an eligible entity shall agree to
return to the general fund of the Treasury any portion of the
loan amount that is unused by the eligible entity within a
reasonable period after the date of receipt of the loan, as
determined by the Secretary.
``(e) Use of Funds.--
``(1) In general.--An eligible entity shall use a loan
provided under this section to establish or expand 1 or more
financing programs--
``(A) the purpose of which is to enable recipient
households to undertake energy efficiency upgrades of
residential buildings;
``(B) that may, at the sole discretion of the
eligible entity, require an outlay of capital by
recipient households in accordance with the goals of
the program under this section; and
``(C) that incorporate a consumer-friendly loan
repayment approach.
``(2) Structure of financing program.--A financing program
of an eligible entity may--
``(A) consist--
``(i) primarily or entirely of a financing
program administered by--
``(I) the applicable State; or
``(II) a program entity; or
``(ii) of a combination of programs
described in clause (i);
``(B) rely on financing provided by--
``(i) the eligible entity; or
``(ii) a third party, acting through the
eligible entity; and
``(C) include a provision pursuant to which a
recipient household shall agree to return to the
eligible entity any portion of the assistance that is
unused by the recipient household within a reasonable
period after the date of receipt of the assistance, as
determined by the eligible entity.
``(3) Form of assistance.--Assistance from an eligible
entity under this subsection may be provided in any form, or in
accordance with any program, authorized by Federal law
(including regulations), including in the form of--
``(A) a revolving loan fund;
``(B) a credit enhancement structure designed to
mitigate the effects of default; or
``(C) a program that--
``(i) adopts any other approach for
providing financing for energy efficiency
upgrades producing significant energy
efficiency gains; and
``(ii) incorporates measures for making the
loan repayment system for recipient households
as consumer-friendly as practicable.
``(4) Scope of assistance.--Assistance provided by an
eligible entity under this subsection may be used to pay for
costs associated with carrying out an energy efficiency
upgrade, including materials and labor.
``(5) Additional assistance.--In addition to the amount of
the loan provided to an eligible entity by the Secretary under
subsection (b), the eligible entity or program entity, as
applicable, may provide to recipient households such assistance
under this subsection as the eligible entity or program entity
considers to be appropriate from any other funds of the
eligible entity or program entity, including funds provided to
the eligible entity by the Secretary for administrative costs
pursuant to this section.
``(6) Limitations.--
``(A) Interest rates.--
``(i) Interest charged by eligible
entities.--The interest rate charged by an
eligible entity on assistance provided under
this subsection--
``(I) shall be fixed; and
``(II) shall not exceed the
interest rate paid by the eligible
entity to the Secretary under
subsection (d)(2).
``(ii) Interest charged by program
entities.--A program entity that receives
funding from an eligible entity under this
subsection for the purpose of capitalizing a
residential energy efficiency financing program
may charge interest on any loan provided by the
program entity at a fixed rate that is as low
as practicable, but not more than 5 percent
more than the applicable interest rate paid by
the eligible entity to the Secretary under
subsection (d)(2).
``(B) No penalty on early repayment.--An eligible
entity or program entity, as applicable, shall not
assess any penalty for early repayment by any recipient
household to the eligible entity or program entity, as
applicable.
``(f) Reports.--
``(1) Eligible entities.--
``(A) In general.--Not later than 2 years after the
date of receipt of the loan, and annually thereafter
for the term of the loan, an eligible entity that
receives a loan under this section shall submit to the
Secretary a report describing the performance of each
program and activity carried out using the loan,
including anonymized loan performance data.
``(B) Requirements.--The Secretary, in consultation
with eligible entities and other stakeholders (such as
lending institutions and the real estate industry),
shall establish such requirements for the reports under
this paragraph as the Secretary determines to be
appropriate--
``(i) to ensure that the reports are clear,
consistent, and straightforward; and
``(ii) taking into account the reporting
requirements for similar programs in which the
eligible entities are participating, if any.
``(2) Secretary.--The Secretary shall submit to Congress
and make available to the public--
``(A) not less frequently than once each year, a
report describing the performance of the program under
this section, including a synthesis and analysis of the
information provided in the reports submitted to the
Secretary under paragraph (1)(A); and
``(B) on termination of the program under this
section, an assessment of the success of, and education
provided by, the measures carried out by eligible
entities during the term of the program.
``(g) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary to carry out this section--
``(1) $37,500,000 for energy advisor programs;
``(2) $25,000,000 for administrative and general financial
support costs to the Secretary of carrying out this section;
and
``(3) $37,500,000 for administrative costs to States in
carrying out this section.''.
(b) Reorganization.--
(1) In general.--Part D of title III of the Energy Policy
and Conservation Act (42 U.S.C. 6321 et seq.) is amended--
(A) by redesignating sections 362, 363, 364, 365,
and 366 as sections 364, 365, 366, 363, and 362,
respectively, and moving the sections so as to appear
in numerical order;
(B) in section 362 (as so redesignated)--
(i) in paragraph (3)(B)(i), by striking
``section 367, and'' and inserting ``section
367 (as in effect on the day before the date of
enactment of the State Energy Efficiency
Programs Improvement Act of 1990 (42 U.S.C.
6201 note; Public Law 101-440)); and''; and
(ii) in each of paragraphs (4) and (6), by
striking ``section 365(e)(1)'' each place it
appears and inserting ``section 363(e)(1)'';
(C) in section 363 (as so redesignated)--
(i) in subsection (b), by striking ``the
provisions of sections 362 and 364 and
subsection (a) of section 363'' and inserting
``sections 364, 365(a), and 366''; and
(ii) in subsection (g)(1)(A), in the second
sentence, by striking ``section 362'' and
inserting ``section 364''; and
(D) in section 365 (as so redesignated)--
(i) in subsection (a)--
(I) in paragraph (1), by striking
``section 362,'' and inserting
``section 364;''; and
(II) in paragraph (2), by striking
``section 362(b) or (e)'' and inserting
``subsection (b) or (e) of section
364''; and
(ii) in subsection (b)(2), in the matter
preceding subparagraph (A), by striking
``section 362(b) or (e)'' and inserting
``subsection (b) or (e) of section 364''.
(2) Conforming amendments.--Section 391 of the Energy
Policy and Conservation Act (42 U.S.C. 6371) is amended--
(A) in paragraph (2)(M), by striking ``section
365(e)(2)'' and inserting ``section 363(e)(2)''; and
(B) in paragraph (10), by striking ``section 362 of
this Act'' and inserting ``section 364''.
(3) Clerical amendment.--The table of contents of the
Energy Policy and Conservation Act (42 U.S.C. 6201 note; Public
Law 94-163) is amended by striking the items relating to part D
of title III and inserting the following:
``Part D--State Energy Conservation Programs
``Sec. 361. Findings and purpose.
``Sec. 362. Definitions.
``Sec. 363. General provisions.
``Sec. 364. State energy conservation plans.
``Sec. 365. Federal assistance to States.
``Sec. 366. State energy efficiency goals.
``Sec. 367. Loans for residential building energy efficiency
upgrades.''.
SEC. 2. OFFSET.
Section 422(f) of the Energy Independence and Security Act of 2007
(42 U.S.C. 17082(f)) is amended--
(1) in paragraph (3), by striking ``and'' after the
semicolon at the end; and
(2) by striking paragraph (4) and inserting the following:
``(4) $200,000,000 for each of fiscal years 2013 through
2015; and
``(5) $166,666,666 for each of fiscal years 2016 through
2018.''.
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