[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2043 Introduced in House (IH)]
<DOC>
116th CONGRESS
1st Session
H. R. 2043
To provide for the establishment of a Home Energy Savings Retrofit
Rebate Program, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 3, 2019
Mr. Welch (for himself and Mr. McKinley) introduced the following bill;
which was referred to the Committee on Energy and Commerce, and in
addition to the Committee on Ways and Means, for a period to be
subsequently determined by the Speaker, in each case for consideration
of such provisions as fall within the jurisdiction of the committee
concerned
_______________________________________________________________________
A BILL
To provide for the establishment of a Home Energy Savings Retrofit
Rebate Program, and for other purposes.
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 ``Home Owner Managing Energy Savings
Act of 2019'' or the ``HOMES Act''.
SEC. 2. DEFINITIONS.
In this Act:
(1) BPI.--The term ``BPI'' means the Building Performance
Institute.
(2) Energy audit.--The term ``energy audit'' means an
inspection, survey, and analysis of energy flows for energy
conservation in a building, process, or system to reduce the
amount of energy input into the system without negatively
affecting the output. An energy audit is the first step in
identifying opportunities to reduce energy expense and carbon
footprints.
(3) Electric utility.--The term ``electric utility'' means
any company, person, cooperative, State, or Indian tribe agency
that delivers or sells electric energy at retail, including
nonregulated utilities, utilities that are subject to State or
Indian tribe rate regulation, and Federal power marketing
administrations.
(4) Federal rebate processing system.--The term ``Federal
Rebate Processing System'' means the Federal Rebate Processing
System established under section 3(b).
(5) Home.--The term ``home'' means a residential dwelling
unit in a building with no more than 4 dwelling units that--
(A) is located in the United States;
(B) was constructed before the date of enactment of
this Act; and
(C) is occupied at least six months out of the
year.
(6) Home energy savings retrofit rebate program.--The terms
``Home Energy Savings Retrofit Rebate Program'' or ``Program''
means the Home Energy Savings Retrofit Rebate Program
established under section 3(a).
(7) Homeowner.--The term ``homeowner'' means the owner of
an owner-occupied home or a tenant-occupied home.
(8) 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).
(9) Natural gas utility.--The term ``natural gas utility''
means any company, person, cooperative, State or local
governmental agency or instrumentality, or Indian tribe that
transports, distributes, or sells natural gas at retail.
(10) Qualified contractor.--The term ``qualified
contractor'' means a residential energy efficiency contractor
that meets minimum applicable requirements established under
section 4.
(11) Qualified home energy efficiency retrofit.--The term
``qualified home energy efficiency retrofit'' means a retrofit
described in section 8(d).
(12) Quality assurance program.--The term ``quality
assurance program'' means a program established under this Act,
or recognized by the Secretary under this Act, to oversee the
delivery of home efficiency retrofit programs to ensure that
work is performed in accordance with standards and criteria
established under this Act. Delivery of retrofit programs
includes delivery of quality assurance reviews of rebate
applications and field inspections. Individuals performing
quality assurance work under a quality assurance program must
be certified under an ANSI accredited quality control
inspection certification designation.
(13) Quality assurance provider.--The term ``quality
assurance provider'' means any entity that meets the minimum
applicable requirements established under section 6.
(14) Rebate aggregator.--The term ``rebate aggregator''
means an entity that meets the requirements of section 5.
(15) RESNET.--The term ``RESNET'' means the Residential
Energy Services Network, which is a nonprofit certification and
standard setting organization for home energy raters that
evaluate the energy performance of a home and Energy Smart
Contractors that make energy improvements to the home.
(16) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
(17) State.--The term ``State'' means--
(A) a State;
(B) the District of Columbia;
(C) the Commonwealth of Puerto Rico;
(D) Guam;
(E) American Samoa;
(F) the Commonwealth of the Northern Mariana
Islands;
(G) the United States Virgin Islands; and
(H) any other territory or possession of the United
States.
SEC. 3. HOME ENERGY SAVINGS RETROFIT REBATE PROGRAM.
(a) In General.--The Secretary shall establish the Home Energy
Savings Retrofit Rebate Program.
(b) Federal Rebate Processing System.--
(1) In general.--Not later than 180 days after the date of
enactment of this Act, the Secretary, in consultation with the
Secretary of the Treasury, shall--
(A) establish a Federal Rebate Processing System
which shall serve as a database and information
technology system that will allow rebate aggregators to
submit claims for reimbursement using standard data
protocols;
(B) establish a national retrofit website that
provides information on the Home Energy Savings
Retrofit Rebate Program, including--
(i) how to determine whether particular
efficiency measures are eligible for rebates;
and
(ii) how to participate in the Program; and
(C) make available model forms for demonstrating
compliance with all applicable requirements of this
Act, which shall be required to be submitted by--
(i) each qualified contractor on completion
of an eligible home energy retrofit; and
(ii) each quality assurance provider on
completion of field verification.
(2) Model forms.--In carrying out paragraph (1)(C), the
Secretary shall convene a group of stakeholders that are
directly and materially affected by the Program to develop the
final forms.
SEC. 4. CONTRACTORS.
(a) Contractor Qualifications.--A contractor may perform retrofit
work under the Home Energy Savings Retrofit Rebate Program in a State
if the contractor--
(1) meets all applicable contractor licensing requirements
established by the State;
(2) is--
(A) accredited by--
(i) BPI as a BPI GoldStar Contractor;
(ii) RESNET as an Energy Smart Home
Performance Team;
(iii) ACCA as a QA Home Performance
Contractor;
(iv) a State-based certification program
established to carry out State energy, clean
air, or environmental programs; or
(v) an equivalent accreditation program
approved by the Secretary for this purpose; or
(B) the general contractor, and--
(i) subjects the energy efficiency retrofit
to a third-party review by a party approved by
the Secretary and a quality assurance
inspection authorized by the Secretary; and
(ii) employs, or utilizes subcontractors
who employ, individuals to complete individual
or comprehensive scopes of work related to the
energy efficiency retrofit who are certified
by--
(I) BPI;
(II) RESNET;
(III) NATE;
(IV) ACCA;
(V) LIUNA;
(VI) the Regional and State
Department of Energy Weatherization
Training Centers; or
(VII) other contractor or worker
certification programs approved by the
Secretary;
(3) holds insurance coverage of at least $1,000,000 for
general liability, and for such other purposes and in such
other amounts as required by the State;
(4) provides warranties to the homeowner that completed
work will--
(A) be free of significant defects;
(B) be installed in accordance with the
specifications of the manufacturer, and all applicable
State and local codes; and
(C) perform properly for a period of at least 1
year after the date of completion of the work; and
(5) completes an energy audit to determine the impact of
the proposed energy efficiency measures in accordance with an
ANSI accredited energy auditing standard.
(b) Agreement Between Contractor and Homeowner.--A contractor who
performs retrofit work under the Home Energy Savings Retrofit Rebate
Program must sign a written or electronic contract with the homeowner
that includes--
(1) an agreement to not increase the cost of the home
improvement as a result of the rebates received under this Act
with respect to physical improvements made to the home;
(2) if the contractor and homeowner choose the transferable
rebate option authorized under section 7, an agreement to
provide the homeowner, before a contract is executed between
the contractor and the homeowner covering the eligible work, a
notice of the rebate amount the contractor intends to apply for
with respect to eligible work under this Act; and
(3) a notice that the homeowner acknowledges that they--
(A) reviewed the national retrofit website for the
Program;
(B) understand the scope of work intended to be
completed and that such work may be eligible for a
rebate under the Program; and
(C) understand that the rebate funds are fully
subject to availability from the Department of Energy
or rebate aggregator and not within the control of the
contractor.
SEC. 5. REBATE AGGREGATORS.
(a) In General.--The Secretary shall develop a network of rebate
aggregators or a national rebate aggregator that can facilitate the
delivery of rebates to homeowners or contractors participating in the
Home Energy Savings Retrofit Rebate Program by--
(1) reviewing the proposed rebate application for
completeness and accuracy;
(2) reviewing measures for eligibility in accordance with
this Act;
(3) providing data to the Federal Rebate Processing System
consistent with data protocols established by the Secretary;
and
(4) not later than 30 days after the date of receipt,
distributing funds received from the Department of Energy to
homeowners or contractors.
(b) Eligibility.--To be eligible to apply to the Secretary for
approval as a rebate aggregator, an entity shall be--
(1) a Home Performance with Energy Star program sponsor;
(2) an entity administering a residential or building
energy efficiency retrofit program, solar program, or other
such program impacting energy efficiency in homes established
or approved by a State or local government;
(3) a Federal power marketing administration, an electric
utility, or a natural gas utility that has--
(A) a residential energy efficiency retrofit
program; and
(B) a quality assurance provider or provider
network; or
(4) an entity that demonstrates to the Secretary that the
entity can perform the functions of a rebate aggregator,
without disrupting existing residential retrofits in the States
that are incorporating the Home Energy Savings Retrofit Rebate
Program, including demonstration of--
(A) the capability to provide electronic data to
the Federal Rebate Processing System;
(B) a financial system that is capable of tracking
the distribution of rebates to participating
contractors; and
(C) coordination and cooperation by the entity with
the appropriate State energy office regarding
participation in the existing energy efficiency
programs that will be delivering the Home Energy
Savings Retrofit Rebate Program.
(c) Public Utility Commission Efficiency Targets.--The Secretary
shall--
(1) develop guidelines for States and local governments to
use to allow utilities participating as rebate aggregators to
count the energy savings from the participation of the
utilities toward State and local level energy savings targets;
and
(2) work with States and local governments to assist in the
adoption of those guidelines for the purposes and duration of
the Home Energy Savings Retrofit Rebate Program.
SEC. 6. QUALITY ASSURANCE PROVIDERS.
(a) Qualifications.--An entity shall be considered a quality
assurance provider under this Act only if the entity is qualified
through--
(1) the BPI;
(2) RESNET; or
(3) any other entity designated by the Secretary such as a
State, local government, or State-approved or local government-
approved residential energy efficiency retrofit program.
(b) Functions.--A quality assurance provider shall--
(1) be independent of the contractor;
(2) confirm that contractors or installers of home energy
efficiency retrofits meet the qualification requirements of
this Act; and
(3) perform field inspections to confirm the compliance of
the retrofit work and the simulated energy savings under the
Home Energy Savings Retrofit Rebate Program.
SEC. 7. TRANSFERABILITY OF HOME ENERGY SAVINGS REBATE.
A homeowner may transfer the rebate provided under the Home Energy
Savings Retrofit Rebate Program to the contractor performing the
retrofit work if the contractor completes a form that accompanies the
rebate form developed under section 3(b). This form, to be made
publically available by the Secretary 90 days after the date of
enactment of this Act, must be approved by paper signature or
electronically by the homeowner and include--
(1) the amount of the rebate the contractor will submit for
disbursement to the contractor;
(2) the level of energy use reduction of the home retrofit
certified under section 8(e)(4), and assurance that the
contractor will provide the certificate to the homeowner within
30 days of receipt from the Department of Energy;
(3) a documentation report of the retrofit performed and
paid by the homeowner; and
(4) confirmation from the homeowner that they understand
they have the right to submit directly for the rebate and have
chosen to transfer the credit in full to the contractor.
SEC. 8. HOME ENERGY SAVINGS RETROFIT REBATE PROGRAM.
(a) In General.--If a qualified home energy efficiency retrofit of
a home is carried out after the date of enactment of this Act by a
qualified contractor in accordance with this Act, subject to
appropriations made available for such purpose, rebates shall be
awarded for retrofits that achieve home energy savings in accordance
with this Act.
(b) Amount of Rebates.--
(1) In general.--Subject to subsection (e), the amount of a
rebate provided to the owner of a home or a designee of the
owner under this section shall be determined in accordance with
the following formula:
(A) Retrofits that are projected to save at least
20 percent of energy use (Home Performance Retrofits)
shall receive a rebate of $2,500.
(B) Retrofits that are projected to save at least
40 percent of energy use (Deep Home Performance
Retrofits) shall receive a rebate of $5,000.
(2) Rebate payment.--
(A) In general.--The rebate shall be paid, based on
energy savings as calculated under subsection (e),
within 60 days after--
(i) submission of the required rebate
forms; and
(ii) the completion of any quality
assurance assessment required under
subparagraph (B).
(B) Quality assurance assessments.--The Secretary
shall establish a schedule of required quality
assurance assessments. In the first year of the
Program, the first 10 homes retrofit by each contractor
and then 60 percent of all future homes shall be
required to have a quality assurance assessment. The
Secretary shall establish a cost effective schedule of
required quality assurance assessments for subsequent
years based on performance under the Program.
(C) Bonus incentive.--Recipients of grants under
section 9 and rebate aggregators are encouraged to
present a proposal to the Secretary for an incentive
bonus for contractors who have delivered services to
consumers and who have achieved a 70 percent or greater
realization rate for predicted gross energy cost
savings achieved by their portfolio of participating
customers. Bonus incentives under such a proposal may
be up to 20 percent of the rebate paid to the
homeowner.
(3) Limitation.--In no event shall the amount of rebates
under this subsection exceed--
(A) $10,000 with respect to any individual; or
(B) 50 percent of the qualified home energy
efficiency expenditures paid or incurred by the
homeowner under subsection (c).
(c) Qualified Home Energy Efficiency Expenditures.--For purposes of
this section, the term ``qualified home energy efficiency
expenditures''--
(1) means any amount paid or incurred by a homeowner for a
qualified home energy efficiency retrofit, including the cost
of diagnostic procedures, labor, reporting, and modeling; and
(2) does not include--
(A) improvements to swimming pools or hot tubs; or
(B) any amount paid or incurred to purchase or
install a biomass, wood, or wood pellet furnace,
boiler, or stove, unless the system--
(i) is designed to meet at least 70 percent
of the heating demands of the home;
(ii) in the case of woodstoves, is
certified by the Environmental Protection
Agency;
(iii) in the case of a wood stove
replacement, replaces an existing wood stove
with a stove that is certified by the
Environmental Protection Agency, if a voucher
is provided by the installer or other
responsible party certifying that the old stove
has been removed and made inoperable;
(iv) in the case of a furnace or boiler, is
in a home with a distribution system (such as
piping, ducts, vents, blowers, or affixed fans)
that allows heat from the furnace or boiler to
reach all or most parts of the home; and
(v) is certified by an independent test
laboratory approved by the Secretary as
having--
(I) thermal efficiency (with a high
heating value) of at least 75 percent
for stoves and 80 percent for furnaces
and boilers;
(II) particulate emissions of less
than 3.0 grams per hour for wood stoves
or pellet stoves; and
(III) less than 0.07 lbs per
million BTU for outdoor boilers and
furnaces.
(d) Qualified Home Energy Efficiency Retrofit.--
(1) In general.--A qualified home energy efficiency
retrofit is a retrofit that implements measures, during a
rebate-eligible year in the existing principal residence of the
homeowner which is located in the United States, intended to
reduce the energy use of such residence. A qualified home
energy efficiency retrofit shall--
(A) be implemented and installed by a qualified
contractor;
(B) install a set of measures modeled to achieve a
reduction in home energy use of 20 percent or more from
the baseline established under subparagraph (C), using
computer modeling software approved under paragraph
(2);
(C) establish the baseline energy use as provided
in subsection (e)(1)(C);
(D) implement a test-out procedure, following
guidelines of the applicable accrediting program
established by an organization identified in section
4(a)(2) or equivalent guidelines approved by the
Secretary for this purpose, to ensure--
(i) the safe operation of all systems post
retrofit; and
(ii) that, except as provided in paragraph
(3), all improvements are included in, and have
been installed according to--
(I) standards of the applicable
accrediting program established by an
organization identified in section
4(a)(2);
(II) manufacturers installation
specifications; and
(III) all applicable State and
local codes or equivalent standards
approved by the Secretary for this
purpose;
(E) include only measures that have an average
estimated life of 5 years or more as determined by the
Secretary;
(F) not include funds paid or incurred in
connection with any expansion of the square footage of
the residence; and
(G) not include improvements to swimming pools or
hot tubs or any other expenditure specifically excluded
by the Secretary.
(2) Approved modeling software.--The contractor shall use
modeling software certified by RESNET as following the software
verification test suites in section 4.2.1 of RESNET Publication
No. 13-001, or under equivalent standards approved by the
Secretary for this purpose, and shall have the ability at a
minimum to assess the savings associated with all the measures
for Home Energy Savings Retrofit Rebate Program.
(3) Exception.--For purposes of paragraph (1)(D)(ii),
installation of gas-fired appliances shall comply with
requirements of the National Fuel Gas Code (ANSI Z223.1/NFPA
54) and applicable installation requirements in lieu of
performance of combustion tests outside those required by the
National Fuel Gas Code (2012 Edition) and the International
Fuel Gas Code (2012 Edition).
(e) Energy Use Reduction.--
(1) Determination of energy use reduction.--
(A) In general.--The reduction in energy use for
any residence shall be determined by modeling the
annual predicted percentage reduction in total energy
consumption or costs for heating, cooling, hot water,
and permanent lighting. It shall be modeled using
computer modeling software approved under subsection
(d)(2) and calibrated according to subparagraph (C) of
this paragraph.
(B) Energy costs.--For the purposes of subparagraph
(A), the energy cost per unit of fuel for each fuel
type shall be determined by dividing the total actual
energy bill (subtracting taxes and fees) for the
residence for that fuel type for the most recent
available 12-month period by the total energy units of
that fuel type used over the same period.
(C) Baseline energy use.--For the purposes of
subparagraph (A), the software model that establishes
the baseline energy use and predicted energy savings
shall be calibrated according to the procedures set
forth in sections 3 and 4 of ANSI/BPI Standard BPI-
2400-S-2012: Standard Practice for Standardized
Qualification of Whole-House Energy Savings Predictions
by Calibration to Energy Use History, or an equivalent
standard approved by the Secretary for this purpose.
(2) Documentation.--The percent improvement in energy
consumption calculated under this section shall be documented
through modeling software described in subsection (d)(2).
(3) Monitoring.--The Secretary--
(A) shall periodically evaluate the software
packages used for determining rebates under this
section;
(B) shall monitor and compare the predictions to
the real energy data, and based on the results, create
performance criteria to allow or disallow the software;
and
(C) may disallow the use of software programs that
improperly assess energy savings.
(4) Certificate of retrofit performance.--The Secretary
shall establish a system for distribution of a certificate of
performance in accordance with BPI-2101-S-2013: Standard
Requirements for a Certificate of Completion for Residential
Energy Efficiency Upgrades with the issuance of a rebate that
certifies the predicted level of energy use reduction achieved
by the retrofit. The certificate shall be provided to the
rebate recipient. If the recipient is the contractor under the
terms of section 7, the contractor shall remit the certificate
to the homeowner, to be delivered or postmarked not later than
30 days after the contractor's receipt of the certificate.
(5) Exception.--The Secretary shall not utilize the
authority provided under this Act to--
(A) develop, adopt, or implement a public labeling
system that rates and compares the energy performance
of one home with another; or
(B) require the public disclosure of an energy
performance evaluation or rating developed for any
specific home.
Nothing in this paragraph shall preclude the computation,
collection, or use, by the Secretary, rebate aggregators, or
quality assurance providers, or the States or Indian tribes,
for the purposes of gathering information on the rating and
comparison of the energy performance of homes with and without
energy efficiency retrofits.
(f) Qualification for Rebate.--On submission of a claim for a
retrofit rebate by a rebate aggregator, the Secretary shall provide
reimbursement to the rebate aggregator, if--
(1) the retrofit is a qualified home energy efficiency
retrofit;
(2) the amount of the reimbursement is not more than the
amount described in subsection (b);
(3) documentation required to verify the claim is
transmitted with the claim; and
(4) any quality assurance assessment required by the
Secretary or the rebate aggregator has been completed.
(g) Audits.--
(1) In general.--On making payment for a submission under
this section, the Secretary shall review rebate requests to
determine whether Program requirements were met in all
respects.
(2) Incorrect payment.--On a determination of the Secretary
under paragraph (1) that a payment was made incorrectly to a
party, not later than 3 years after the payment was provided
the Secretary shall--
(A) recoup the amount of the incorrect payment; or
(B) withhold the amount of the incorrect payment
from the next payment made to the party pursuant to a
subsequent request.
(h) Incentives.--The amount of incentives that the Secretary may
provide to quality assurance providers and rebate aggregators under
this Act shall be--
(1) $50 for each rebate review and submission provided
under the Program;
(2) $250 for each field inspection conducted under the
Program; or
(3) such other amounts as the Secretary considers necessary
to carry out the quality assurance provisions of this Act.
SEC. 9. GRANTS TO STATES AND INDIAN TRIBES.
(a) In General.--A State or Indian tribe that receives a grant
under subsection (d) shall be permitted to use the grant for--
(1) administrative costs;
(2) oversight of quality assurance plans;
(3) development of a quality assurance program;
(4) establishment and delivery of financing pilots in
accordance with this Act;
(5) coordination with existing residential retrofit
programs and infrastructure development to assist deployment of
the Home Energy Savings Retrofit Rebate Program; and
(6) the costs of carrying out the responsibilities of the
State or Indian tribe under the Home Energy Savings Retrofit
Rebate Program.
(b) Initial Grants.--Not later than 60 days after receipt of a
completed application for a grant under this section, the Secretary
shall either make the grant or provide to the applicant an explanation
for denying the grant.
(c) Indian Tribes.--The Secretary shall reserve an appropriate
amount of funding made available to carry out this section for each
fiscal year to make grants available to Indian tribes under this
section.
(d) State Allotments.--From the amounts made available to carry out
this section for each fiscal year remaining after the reservation
required under subsection (c), the Secretary shall make grants
available to States in accordance with section 15.
(e) Quality Assurance Programs.--
(1) In general.--A State or Indian tribe may use a grant
made under this section to carry out a quality assurance
program that is--
(A) operated as part of a State or local government
approved energy conservation plan established under
part D of title III of the Energy Policy and
Conservation Act (42 U.S.C. 6321 et seq.);
(B) managed by the office or the designee of the
office that is--
(i) responsible for the development of the
plan under section 362 of that Act (42 U.S.C.
6322); and
(ii) to the maximum extent practicable
conducting an existing energy efficiency
program; and
(C) in the case of a grant made to an Indian tribe,
managed by an entity designated by the Indian tribe to
carry out a quality assurance program or a national
quality assurance program manager.
(2) Noncompliance.--If the Secretary determines that a
State or Indian tribe has not provided or cannot provide
adequate oversight over a quality assurance program to ensure
compliance with this Act, the Secretary may--
(A) withhold further quality assurance funds from
the State or Indian tribe; and
(B) require that quality assurance providers
operating in the State or by the Indian tribe be
overseen by a national quality assurance program
manager selected by the Secretary.
(f) Implementation.--A State or Indian tribe that receives a grant
under this section may implement a quality assurance program through
the State, the Indian tribe, or a third party designated by the State
or Indian tribe, including--
(1) an energy service company;
(2) an electric utility;
(3) a natural gas utility;
(4) a third-party administrator designated by the State or
Indian tribe; or
(5) a unit of local government.
(g) Public-Private Partnerships.--A State or Indian tribe that
receives a grant under this section is encouraged to form partnerships
with utilities, energy service companies, and other entities--
(1) to assist in marketing a program;
(2) to facilitate consumer financing;
(3) to assist in implementation of the Home Energy Savings
Retrofit Rebate Program, including installation of qualified
home energy efficiency retrofits; and
(4) to assist in implementing quality assurance programs.
(h) Coordination of Rebate and Existing State-Sponsored Programs.--
(1) In general.--A State or Indian tribe shall, to the
maximum extent practicable, prevent duplication through
coordination of a program authorized under this Act with--
(A) the Energy Star appliance rebates program
authorized under the American Recovery and Reinvestment
Act of 2009 (Public Law 111-5; 123 Stat. 115); and
(B) comparable programs planned or operated by
States, political subdivisions, electric and natural
gas utilities, Federal power marketing administrations,
and Indian tribes.
(2) Existing programs.--In carrying out this subsection, a
State or Indian tribe shall--
(A) give priority to--
(i) comprehensive retrofit programs in
existence on the date of enactment of this Act,
including programs under the supervision of
State utility regulators; and
(ii) using funds made available under this
Act to enhance and extend existing programs;
and
(B) seek to enhance and extend existing programs by
coordinating with administrators of the programs.
SEC. 10. QUALITY ASSURANCE PROGRAM.
(a) Plan.--As part of a grant application described in section
9(b), a State or Indian tribe shall submit to the Secretary a plan to
implement a quality assurance program that covers all federally
assisted residential efficiency retrofit work administered, supervised,
or sponsored by the State or Indian tribe.
(b) Implementation.--The State or Indian tribe shall--
(1) develop a quality assurance program in consultation
with industry stakeholders, including representatives of
efficiency program managers, contractors, and environmental,
energy efficiency, and labor organizations; and
(2) implement the quality assurance program not later than
180 days after receipt of a grant under section 9.
(c) Components.--The quality assurance program established under
this section shall include--
(1) maintenance of a list of qualified contractors
authorized to perform such retrofit work as described in
section 4; and
(2) nonbinding targets and realistic plans for--
(A) the recruitment of small minority-owned or
women-owned business enterprises; and
(B) the employment of graduates of training
programs that primarily serve low-income populations
with a median income that is below 200 percent of the
poverty line (as defined in section 673(2) of the
Community Services Block Grant Act (42 U.S.C. 9902(2)),
including any revision required by that section) by
participating contractors.
(d) Noncompliance.--If the Secretary determines that a State or
Indian tribe has not taken the steps required under this section, the
Secretary shall provide to the State or Indian tribe a period of at
least 90 days to comply before suspending the participation of the
State or Indian tribe in the program.
SEC. 11. EVALUATION REPORT TO CONGRESS.
(a) In General.--Not later than 1 year after the date of enactment
of this Act and annually thereafter, the Secretary shall submit to the
Committee on Energy and Natural Resources of the Senate and the
Committee on Energy and Commerce of the House of Representatives a
report on the use of funds under this Act.
(b) Contents.--The report submitted under subsection (a) shall
evaluate--
(1) how many eligible participants have participated in the
Program;
(2) how many jobs have been created through the Program,
directly and indirectly;
(3) what steps could be taken to promote further deployment
of energy efficiency and renewable energy retrofits;
(4) the quantity of verifiable energy savings, homeowner
energy bill savings, and other benefits of the Program;
(5) any waste, fraud, or abuse with respect to such funds;
and
(6) any other information the Secretary considers
appropriate.
(c) Noncompliance.--The Secretary shall require rebate aggregators,
States, and Indian tribes to provide the information required to enable
the Secretary to carry out this section. If the Secretary determines
that a rebate aggregator, State, or Indian tribe has not provided such
information on a timely basis, the Secretary shall provide to the
rebate aggregator, State, or Indian tribe a period of at least 90 days
to provide any necessary information, subject to withholding of funds
or reduction of future grant amounts, or decertification of rebate
aggregators.
SEC. 12. ADMINISTRATION.
(a) In General.--Subject to section 15(b), not later than 30 days
after the date of enactment of this Act, the Secretary shall provide
such administrative and technical support to rebate aggregators,
States, and Indian tribes as is necessary to carry out this Act.
(b) Appointment of Personnel.--Notwithstanding the provisions of
title 5, United States Code, governing appointments in the competitive
service and General Schedule classifications and pay rates, the
Secretary may appoint such professional and administrative personnel as
the Secretary considers necessary to carry out this Act.
(c) Rate of Pay.--The rate of pay for a person appointed under
subsection (b) shall not exceed the maximum rate payable for GS-15 of
the General Schedule under chapter 53 of title 5, United States Code.
(d) Information Collection.--The Secretary shall establish, and
make available to a homeowner, or the homeowner's designated
representative, seeking a rebate under this Act, release forms
authorizing access by the Secretary, or a designated third-party
representative to information in the utility bills of the homeowner.
The form shall not include personal identifying information such as
name, address, social security number or other identifying information
as defined by the Secretary.
SEC. 13. TREATMENT OF REBATES.
(a) In General.--For purposes of the Internal Revenue Code of 1986,
rebates received for a qualified home energy efficiency retrofit under
this Act--
(1) shall not be considered taxable income to a homeowner;
and
(2) shall prohibit the consumer from applying for a tax
credit allowed under section 25C or 25D of that Code for the
same retrofit work performed in the home of the homeowner. If
the work is additional, and not included in the rebate
baseline, a homeowner may claim the credit.
(b) Notice.--
(1) In general.--A participating contractor shall provide
notice to a homeowner of the provisions of subsection (a)
before eligible work is performed in the home of the homeowner.
(2) Notice in rebate form.--A homeowner shall be notified
of the provisions of subsection (a) in the appropriate rebate
form developed by the Secretary, in consultation with the
Secretary of the Treasury.
SEC. 14. PENALTIES.
(a) In General.--It shall be unlawful for any person to violate
this Act (including any regulation issued under this Act), other than a
violation as the result of a clerical error.
(b) Civil Penalty.--In addition to any penalty applicable under
other Federal law for fraud or other crimes, any person who commits a
violation of this Act shall be liable to the United States for a civil
penalty in an amount that is not more than the higher of--
(1) $15,000 for each violation; or
(2) 3 times the value of any associated rebate under this
Act.
(c) Administration.--The Secretary may--
(1) assess and compromise a penalty imposed under
subsection (b); and
(2) require from any entity the records and inspections
necessary to enforce this Act.
SEC. 15. FUNDING.
(a) Authorization of Appropriations.--
(1) In general.--There are authorized to be appropriated to
the Secretary to carry out this Act $250,000,000 for each of
fiscal years 2021 through 2025, to remain available until
expended.
(2) Maintenance of funding.--Funds provided under this
section shall supplement and not supplant any Federal and State
funding provided to carry out energy efficiency programs in
existence on the date of enactment of this Act.
(b) Grants to States.--
(1) In general.--Of the amounts provided under subsection
(a), not more than 6 percent shall be used to carry out section
9.
(2) Distribution to state energy offices.--Not later than
45 days after the date of enactment of this Act, the Secretary
shall determine a formula to provide funds described in
paragraph (1) to State energy offices, in accordance with the
allocation formula for State energy conservation plans
established under part D of title III of the Energy Policy and
Conservation Act (42 U.S.C. 6321 et seq.).
(c) Tracking of Rebates and Expenditures.--Of the amount provided
under subsection (a), not more than 2.5 percent are authorized to be
appropriated to the Secretary to be used for costs associated with
tracking rebates and expenditures through the Federal Rebate Processing
System under this Act, technical assistance to States, and related
administrative costs incurred by the Secretary.
(d) Program Review and Backstop Funding.--
(1) In general.--Not later than 180 days after the date of
enactment of this Act, the Secretary shall perform a State-by-
State analysis and review the distribution of rebates under
this Act.
(2) Adjustment.--The Secretary may allocate technical
assistance funding to assist States that have not sufficiently
benefitted from the Home Energy Savings Retrofit Rebate
Program.
SEC. 16. PILOT PROGRAM.
(a) Establishment.--
(1) In general.--Notwithstanding any other provision of
this Act, the Secretary shall establish a Residential Energy
Efficiency Pay for Performance pilot program for States to
encourage the use of measured energy savings, and financial
payments for those energy savings, in the operation of
residential energy efficiency programs.
(2) Criteria.--Not later than 180 days after the date of
enactment of this Act, the Secretary shall provide common
measurement criteria, developed with input from home
performance industry stakeholders, to ensure comparability
among programs but allow flexibility in program design.
(b) Grants.--In carrying out the pilot program established under
this section, the Secretary shall provide, on a competitive basis,
grants to not less than 5 State energy offices.
(c) Authorization of Appropriations.--For fiscal year 2021, there
are authorized to be appropriated to carry out this section
$100,000,000.
(d) Definition.--In this section, the term ``State energy office''
means the office or agency of a State responsible for developing the
State energy plan for the State under section 362 of the Energy Policy
and Conservation Act (42 U.S.C. 6322).
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