H. Rept. 111-469 - 111th Congress (2009-2010)
April 29, 2010, As Reported by the Energy and Commerce Committee

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House Report 111-469 - HOME STAR ENERGY RETROFIT ACT OF 2010




[House Report 111-469]
[From the U.S. Government Printing Office]


111th Congress                                            Rept. 111-469
                        HOUSE OF REPRESENTATIVES
 2d Session                                                      Part 1

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



 
                 HOME STAR ENERGY RETROFIT ACT OF 2010

                                _______
                                

                 April 29, 2010.--Ordered to be printed

                                _______
                                

 Mr. Waxman, from the Committee on Energy and Commerce, submitted the 
                               following

                              R E P O R T

                             together with

                             MINORITY VIEWS

                        [To accompany H.R. 5019]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Energy and Commerce, to whom was referred 
the bill (H.R. 5019) to provide for the establishment of the 
Home Star Retrofit Rebate Program, and for other purposes, 
having considered the same, report favorably thereon with an 
amendment and recommend that the bill as amended do pass.

                                CONTENTS

                                                                   Page
Amendment........................................................     1
Purpose and Summary..............................................    21
Background and Need for Legislation..............................    21
Legislative History..............................................    24
Committee Consideration..........................................    24
Committee Votes..................................................    24
Committee Oversight Findings and Recommendations.................    27
New Budget Authority, Entitlement Authority, and Tax Expenditures    27
Statement of General Performance Goals and Objectives............    27
Constitutional Authority Statement...............................    27
Earmarks and Tax and Tariff Benefits.............................    27
Advisory Committee Statement.....................................    27
Applicability of Law to Legislative Branch.......................    27
Federal Mandates Statement.......................................    27
Committee Cost Estimate..........................................    28
Congressional Budget Office Estimate.............................    28
Section-by-Section Analysis of the Legislation...................    29
Minority Views...................................................    37

                               AMENDMENT

    The amendment is as follows:
    Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Home Star Energy Retrofit Act of 
2010''.

SEC. 2. DEFINITIONS.

  In this Act:
          (1) Accredited contractor.--The term ``accredited 
        contractor'' means a qualified contractor--
                  (A) that is accredited--
                          (i) by the BPI; or
                          (ii) under other standards approved by the 
                        Secretary, in consultation with the 
                        Administrator; and
                  (B) effective 1 year after the date of enactment of 
                this Act, that uses a certified workforce.
          (2) Administrator.--The term ``Administrator'' means the 
        Administrator of the Environmental Protection Agency.
          (3) BPI.--The term ``BPI'' means the Building Performance 
        Institute.
          (4) Certified workforce.--The term ``certified workforce'' 
        means a residential energy efficiency construction workforce in 
        which all employees performing installation work are certified 
        in the appropriate job skills under--
                  (A) an applicable third party skills standard 
                established by--
                          (i) BPI;
                          (ii) North American Technician Excellence;
                          (iii) the Laborers' International Union of 
                        North America;
                  (B) an applicable third party skills standard 
                established in the State in which the work is to be 
                performed, pursuant to a program operated by the Home 
                Builders Institute in connection with Ferris State 
                University, to be effective 30 days after notice is 
                provided by those organizations to the Secretary that 
                such program has been established in such State, except 
                to the extent that the Secretary determines within 30 
                days of such notice that the standard or certification 
                is incomplete; or
                  (C) other standards approved by the Secretary, in 
                consultation with the Secretary of Labor and the 
                Administrator.
          (5) Conditioned space.--The term ``conditioned space'' means 
        the area of a home that is--
                  (A) intended for habitation; and
                  (B) intentionally heated or cooled.
          (6) DOE.--The term ``DOE'' means the Department of Energy.
          (7) Electric utility.--The term ``electric utility'' means 
        any person, State agency, rural electric cooperative, 
        municipality, or other governmental entity that delivers or 
        sells electric energy at retail, including nonregulated 
        utilities and utilities that are subject to State regulation 
        and Federal power marketing administrations.
          (8) EPA.--The term ``EPA'' means the Environmental Protection 
        Agency.
          (9) Federal rebate processing system.--The term ``Federal 
        Rebate Processing System'' means the Federal Rebate Processing 
        System established under section 101(b).
          (10) Gold star home energy retrofit program.--The term ``Gold 
        Star Home Energy Retrofit Program'' means the Gold Star Home 
        Energy Retrofit Program established under section 104.
          (11) Home.--The term ``home'' means a principal residential 
        dwelling unit in a building with no more than 4 dwelling units 
        that--
                  (A) is located in the United States; and
                  (B) was constructed before the date of enactment of 
                this Act.
          (12) Home star loan program.--The term ``Home Star Loan 
        Program'' means the Home Star Energy Efficiency Loan Program 
        established under section 111.
          (13) 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. 450b).
          (14) National home performance council.--The term ``National 
        Home Performance Council'' means the National Home Performance 
        Council, Inc.
          (15) Natural gas utility.--The term ``natural gas utility'' 
        means any person or State agency that transports, distributes, 
        or sells natural gas at retail, including nonregulated 
        utilities and utilities that are subject to State regulation.
          (16) Qualified contractor.--The term ``qualified contractor'' 
        means a residential energy efficiency contractor meeting 
        minimum applicable requirements as determined under section 
        101(c).
          (17) Quality assurance framework.--The term ``quality 
        assurance framework'' means a policy structure adopted by a 
        State to develop high standards for ensuring quality in ongoing 
        energy efficiency retrofit activities in which the State has a 
        role, including operation of the quality assurance program, 
        while creating significant employment opportunities, in 
        particular for targeted workers.
          (18) Quality assurance program.--
                  (A) In general.--The term ``quality assurance 
                program'' means a program authorized 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.
                  (B) Inclusions.--For purposes of subparagraph (A), 
                delivery of retrofit programs includes field 
                inspections required under this Act, with the consent 
                of participating consumers and without delaying rebate 
                payments to participating contractors and vendors.
          (19) Quality assurance provider.--
                  (A) In general.--The term ``quality assurance 
                provider'' means any entity that is authorized pursuant 
                to this Act to perform field inspections and other 
                measures required to confirm the compliance of retrofit 
                work with the requirements of this Act.
                  (B) Certification requirement.--To be considered a 
                quality assurance provider under this paragraph, an 
                entity shall be certified through--
                          (i) the International Code Council;
                          (ii) the BPI;
                          (iii) the RESNET;
                          (iv) a State;
                          (v) a State-approved residential energy 
                        efficiency retrofit program; or
                          (vi) any other entity designated for such 
                        purpose by the Secretary, in consultation with 
                        the Administrator.
          (20) Rebate aggregator.--The term ``rebate aggregator'' means 
        an entity that meets the requirements of section 102.
          (21) RESNET.--The term ``RESNET'' means the Residential 
        Energy Services Network.
          (22) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.
          (23) Silver star home energy retrofit program.--The term 
        ``Silver Star Home Energy Retrofit Program'' means the Silver 
        Star Home Energy Retrofit Program established under section 
        103.
          (24) 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 United States Virgin Islands;
                  (G) the Northern Mariana Islands; and
                  (H) any other commonwealth, territory, or possession 
                of the United States.
          (25) Targeted worker.--The term ``targeted worker'' means an 
        individual who is unemployed or underemployed and of an 
        employable age and a resident of an area with high or chronic 
        unemployment and low median household incomes, as defined by 
        the Secretary in consultation with the Secretary of Labor.
          (26) Water utility.--The term ``water utility'' means any 
        State or local agency that delivers or sells water at wholesale 
        or retail through an engineered distribution system.

               TITLE I--HOME STAR RETROFIT REBATE PROGRAM

SEC. 101. HOME STAR RETROFIT REBATE PROGRAM.

  (a) In General.--The Secretary shall establish the Home Star Retrofit 
Rebate Program.
  (b) Federal Rebate Processing System.--
          (1) In general.--Not later than 30 days after the date of 
        enactment of this Act, the Secretary, in consultation with the 
        Secretary of the Treasury and the Administrator, shall--
                  (A) establish a Federal Rebate Processing System 
                which shall serve as a database and information 
                technology system to allow rebate aggregators to submit 
                claims for reimbursement using standard data protocols;
                  (B) establish a national retrofit website that 
                provides information on the Home Star Retrofit Rebate 
                Program, including how to determine whether particular 
                energy efficiency measures are eligible for rebate and 
                how to participate in the program; and
                  (C) publish model forms and data protocols for use by 
                contractors, vendors, and quality assurance providers 
                to comply with the requirements of this title.
          (2) Model certification forms.--In carrying out this section, 
        the Secretary shall consider the model certification forms 
        developed by the National Home Performance Council.
  (c) Qualified Contractor Requirements.--A qualified contractor may 
perform retrofit work for which rebates are authorized under this title 
only if it executes a Home Star participation agreement with a rebate 
aggregator affirming that it meets applicable requirements, including--
          (1) all applicable State contractor licensing requirements 
        or, with respect to a State that has no such requirements, any 
        appropriate comparable requirements established under paragraph 
        (6);
          (2) insurance coverage of at least $1,000,000 for general 
        liability, and for such other purposes and in such other 
        amounts as may be required by the State;
          (3) agreeing to provide warranties to homeowners that 
        completed work will--
                  (A) be free of significant defects;
                  (B) be installed in accordance with the 
                specifications of the manufacturer; and
                  (C) perform properly for a period of at least 1 year 
                after the date of completion of the work;
          (4) agreeing to pass through to the owner of a home, through 
        a discount, the full economic value of all rebates received 
        under this title with respect to the home;
          (5) agreeing to provide to the homeowner a notice of--
                  (A) the amount of the rebate the contractor intends 
                to apply for with respect to the eligible work under 
                this title, before a contract is executed between the 
                contractor and a homeowner covering the eligible work; 
                and
                  (B) the means by which the rebate will be passed 
                through as a discount to the homeowner;
          (6) all requirements of an applicable State quality assurance 
        framework by and after the date that is one year after the date 
        of enactment of this Act; and
          (7) any other appropriate requirements as determined by the 
        Secretary, in consultation with the Administrator.
  (d) Administrative and Technical Support.--Subject to section 112(b) 
and (c), beginning 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 and States as is necessary to 
carry out this title.
  (e) Administration.--
          (1) 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 title.
          (2) Rate of pay.--The rate of pay for a person appointed 
        under paragraph (1) shall not exceed the maximum rate payable 
        for GS-15 of the General Schedule under chapter 53 of title 5, 
        United States Code.
          (3) Consultants.--Notwithstanding section 303 of the Federal 
        Property and Administrative Services Act of 1949 (41 U.S.C. 
        253), the Secretary may retain such consultants on a 
        noncompetitive basis as the Secretary considers necessary to 
        carry out this title.
          (4) Contracting.--In carrying out this title, the Secretary 
        may waive all or part of any provision of the Competition in 
        Contracting Act of 1984 (Public Law 98-369; 98 Stat. 1175), an 
        amendment made by that Act, or the Federal Acquisition 
        Regulation on a determination that circumstances make 
        compliance with the provisions contrary to the public interest.
          (5) Regulations.--
                  (A) In general.--Notwithstanding section 553 of title 
                5, United States Code, the Secretary may issue 
                regulations that the Secretary, in the sole discretion 
                of the Secretary, determines necessary to--
                          (i) establish;
                          (ii) achieve full operational status within 
                        60 days after the date of enactment of this Act 
                        for; or
                          (iii) carry out,
                 the Home Star Retrofit Rebate Program.
                  (B) Timing.--If the Secretary determines that 
                regulations described in subparagraph (A) are 
                necessary, the regulations shall be issued not later 
                than 60 days after such determination.
                  (C) Exception.--(i) The Secretary shall not utilize 
                the authority provided under this paragraph to--
                          (I) develop, adopt, or implement a public 
                        labeling system that rates and compares the 
                        energy performance of one home with another; or
                          (II) require the public disclosure of an 
                        energy performance evaluation or rating 
                        developed for any specific home.
                  (ii) Nothing in this subparagraph shall preclude--
                          (I) the computation, collection, or use, by 
                        the Secretary, rebate aggregators, quality 
                        assurance providers, or States for the purposes 
                        of carrying out sections 104 and 105, of 
                        information on the rating and comparison of the 
                        energy performance of homes with and without 
                        energy efficiency features or on energy 
                        performance evaluation or rating;
                          (II) the use and publication of aggregate 
                        data (without identifying individual homes or 
                        participants) based on information referred to 
                        in subclause (I) to determine or demonstrate 
                        the performance of the Home Star program; or
                          (III) the provision of information referred 
                        to in subclause (I) with respect to a specific 
                        home--
                                  (aa) to the State, homeowner, quality 
                                assurance provider, rebate aggregator, 
                                or contractor performing retrofit work 
                                on that home, or an entity providing 
                                Home Star services, as necessary to 
                                enable carrying out this title; or
                                  (bb) for purposes of prosecuting 
                                fraud and abuse.
          (6) Information collection.--Chapter 35 of title 44, United 
        States Code, shall not apply to any information collection 
        requirement necessary for the implementation of the Home Star 
        Retrofit Rebate Program.
          (7) Effective period.--Paragraphs (1), (3), (4), (5), and (6) 
        shall be effective only for fiscal years 2010 and 2011.
  (f) Program Review.--Not later than 180 days after the date of 
enactment of this Act, the Secretary shall prepare and transmit to 
Congress a State-by-State analysis and review the distribution of Home 
Star retrofit rebates under this title.
  (g) Adjustment of Rebate Amounts.--Effective beginning on the date 
that is 180 days after the date of enactment of this Act, the Secretary 
may, after not less than 30 days public notice, prospectively adjust 
the rebate amounts provided for under this title as necessary to 
optimize the overall energy efficiency resulting from the Silver Star 
Home Energy Retrofit Program and the Gold Star Home Energy Retrofit 
Program.
  (h) Indian Tribe Participation.--
          (1) In general.--An Indian tribe, within 30 days after the 
        date of enactment of this Act, may indicate to the Secretary 
        its intention to act in place of a State for purposes of 
        carrying out the responsibilities of the State under this title 
        with respect to its tribal lands. If the Indian tribe so 
        indicates, the Secretary shall treat the Indian tribe as the 
        State for purposes of carrying out this title with respect to 
        those tribal lands.
          (2) Transition of responsibilities.--The Secretary may permit 
        an Indian tribe, after the expiration of 30 days after the date 
        of enactment of this Act, to assume the responsibilities of a 
        State under this title with respect to its tribal lands if the 
        Secretary finds that such assumption of responsibilities will 
        not disrupt the ongoing administration of the program under 
        this title.
          (3) Cooperation.--An Indian tribe may cooperate with a State 
        or the Secretary to ensure that all of the requirements of this 
        title are carried out with respect to the tribal lands.
  (i) Implementation by Secretary.--
          (1) In general.--If a State has not indicated to the 
        Secretary within 30 days after the date of enactment of this 
        Act that it is prepared to carry out section 105, or if at any 
        later time the Secretary determines that a State is no longer 
        prepared to carry out section 105, to the extent that no Indian 
        tribe assumes such responsibilities under subsection (h) the 
        Secretary shall assume the responsibilities of that State with 
        respect to carrying out section 105.
          (2) Transition of responsibilities.--The Secretary may permit 
        a State, after the Secretary has assumed the responsibilities 
        of that State under paragraph (1), to assume the 
        responsibilities assigned to States under section 105 with 
        respect to that State if the Secretary finds that such 
        assumption of responsibilities will not disrupt the ongoing 
        administration of the program under this title.
  (j) Limitation.--Rebates may not be provided under both section 103 
and section 104 with respect to the same home.
  (k) Forms for Certification and Quality Assurance.--
          (1) In general.--Not later than 30 days after the date of 
        enactment of this Act, the Secretary shall make available on 
        the website established under subsection (b)(1)(B), model 
        certification forms for compliance with quality assurance 
        requirements under this title, to be submitted by--
                  (A) each qualified contractor, accredited contractor, 
                and quality assurance provider on completion of an 
                eligible home energy retrofit; and
                  (B) each quality assurance provider on completion of 
                field verification required under this section.
          (2) National home performance council.--The Secretary, 
        States, and Indian tribes shall consider and may use model 
        certification forms developed by the National Home Performance 
        Council to ensure compliance with quality assurance 
        requirements under this title.
  (l) Public-private Partnerships.--A State that receives a grant under 
this title is encouraged to form partnerships with utilities, energy 
service companies, and other entities--
          (1) to assist in marketing the Home Star Retrofit Rebate 
        Program;
          (2) to facilitate consumer financing;
          (3) to assist in implementation of the Silver Star Home 
        Energy Retrofit Program and the Gold Star Home Energy Retrofit 
        Program, including installation of qualified energy retrofit 
        measures; and
          (4) to assist in implementing quality assurance programs.
  (m) Coordination of Rebate and Existing State-sponsored Programs.--
          (1) In general.--A State shall, to the maximum extent 
        practicable, prevent duplication through coordination of a 
        program authorized under this title with--
                  (A) the Energy Star appliance rebates program 
                authorized under section 124 of the Energy Policy Act 
                of 2005 (42 U.S.C. 15821), and any other Federal 
                programs that provide funds to States for home or 
                appliance energy efficiency purposes; 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 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 
                        title to enhance and extend existing programs; 
                        and
                  (B) seek to enhance and extend existing programs by 
                coordinating with administrators of the programs.
  (n) Health and Safety Requirements.--Nothing in this title shall 
relieve any contractor from the obligation to comply with applicable 
Federal, State, and local health and safety code requirements.

SEC. 102. REBATE AGGREGATORS.

  (a) In General.--The Secretary shall develop a network of rebate 
aggregators that can facilitate the delivery of rebates to 
participating contractors and vendors, to reimburse those contractors 
and vendors for discounts provided to homeowners for energy efficiency 
retrofit work. The Secretary shall approve or deny an application from 
a person seeking to become a rebate aggregator not later than 30 days 
after receiving such application. The Secretary may disqualify any 
rebate aggregator that fails to meet its obligations under this title 
in a timely and competent manner.
  (b) Availability.--Not later than 30 days after the date of enactment 
of this Act, the Secretary shall identify at least 1 rebate aggregator 
in each State ready and able to accept rebate applications from any 
qualified contractor. Not later than 90 days after such date of 
enactment, the Secretary shall ensure that rebate aggregation services 
are available to all homeowners in the United States at the lowest 
reasonable cost.
  (c) Responsibilities.--Rebate aggregators shall--
          (1) review each proposed rebate application for completeness 
        and accuracy;
          (2) review all measures for which rebates are sought for 
        eligibility in accordance with this title;
          (3) provide data to the Secretary for inclusion in the 
        database maintained through the Federal Rebate Processing 
        System, consistent with data protocols established by the 
        Secretary;
          (4) not later than 30 days after the date of receipt, 
        distribute funds received from the Secretary to contractors, 
        vendors, or other persons in accordance with approved claims 
        for reimbursement made to the Federal Rebate Processing System;
          (5) maintain appropriate accounting for rebate applications 
        processed, and their disposition;
          (6) review contractor qualifications and accreditation and 
        retain documentation of such qualification and accreditation, 
        as required for contractors to be authorized to perform 
        residential energy efficiency retrofit work under this title; 
        and
          (7) maintain information regarding contractors' fulfillment 
        of the requirements of section 101(c).
  (d) Eligibility.--To be eligible to apply to the Secretary for 
approval as a rebate aggregator, an entity--
          (1) shall be--
                  (A) a Home Performance with Energy Star partner;
                  (B) an entity administering a residential energy 
                efficiency retrofit program established or approved by 
                a State;
                  (C) a Federal power marketing administration or the 
                Tennessee Valley Authority;
                  (D) an electric utility, natural gas utility, or 
                water utility administering or offering a residential 
                energy efficiency retrofit program; or
                  (E) an entity--
                          (i) with corporate status or status as a 
                        State or local government;
                          (ii) who can demonstrate adequate financial 
                        capability to manage a rebate aggregator 
                        program, as evidenced by audited financial 
                        records; and
                          (iii) whose participation in the program, in 
                        the judgment of the Secretary, would not 
                        disrupt existing residential retrofit programs 
                        in the States that are carrying out the Home 
                        Star Retrofit Rebate Program under this title;
          (2) must be able to demonstrate--
                  (A) a relationship with 1 or more independent quality 
                assurance providers that is sufficient to meet the 
                volume of contracting services delivered;
                  (B) the capability to provide such electronic data as 
                is required by the Secretary to the Federal Rebate 
                Processing System; and
                  (C) a financial system that is capable of tracking 
                the distribution of rebates to participating 
                contractors and vendors; and
          (3) shall include in its application the amount it proposes 
        to charge for the review and processing of a rebate under this 
        title.
  (e) Prompt Processing of Rebates.--Within 10 days after receiving an 
application for a rebate consistent with this title, a rebate 
aggregator shall submit a claim for that rebate to the Federal Rebate 
Processing System. Within 10 days after the Federal Rebate Processing 
System receives such a submission from a rebate aggregator, the 
Secretary shall provide the funds to the rebate aggregator necessary to 
pay such rebates to the qualified contractor or vendor who applied for 
them and to compensate the rebate aggregator for its services in 
accordance with this title. Within 10 days of being provided such 
funds, the rebate aggregator shall pay the rebates to the rebate 
applicant.
  (f) Public Utility Commission Efficiency Targets.--The Secretary 
shall--
          (1) develop guidelines for States to use to allow utilities 
        participating as rebate aggregators to count the energy savings 
        from their participation toward State-level energy savings 
        targets; and
          (2) work with States to assist in the adoption of these 
        guidelines for the purposes and duration of the Home Star 
        Retrofit Rebate Program.

SEC. 103. SILVER STAR HOME ENERGY RETROFIT PROGRAM.

  (a) In General.--During the first year after the date of enactment of 
this Act, a Silver Star Home Energy Retrofit Program rebate shall be 
awarded, subject to the maximum amount limitations under subsection 
(d)(4), to participating contractors and vendors, to reimburse them for 
discounts provided to the owner of the home for the retrofit work, for 
the installation of energy savings measures--
          (1) selected from the list of energy savings measures 
        described in subsection (b);
          (2) installed after the date of enactment of this Act in the 
        home by a qualified contractor; and
          (3) carried out in compliance with this section.
  (b) Energy Savings Measures.--Subject to subsection (c), a rebate 
shall be awarded under subsection (a) for the installation of the 
following energy savings measures for a home energy retrofit that meet 
technical standards established under this section:
          (1) Whole house air sealing measures, including interior and 
        exterior measures, utilizing sealants, caulks, polyurethane 
        foams, gaskets, weather-stripping, mastics, and other building 
        materials in accordance with BPI standards or other procedures 
        approved by the Secretary.
          (2) Attic insulation measures that--
                  (A) include sealing of air leakage between the attic 
                and the conditioned space, in accordance with BPI 
                standards or the attic portions of the DOE or EPA 
                thermal bypass checklist or other procedures approved 
                by the Secretary;
                  (B) add at least R-19 insulation to existing 
                insulation;
                  (C) result in at least R-38 insulation in DOE climate 
                zones 1 through 4 and at least R-49 insulation in DOE 
                climate zones 5 through 8, including existing 
                insulation, within the limits of structural capacity; 
                and
                  (D) cover at least--
                          (i) 100 percent of an accessible attic; or
                          (ii) 75 percent of the total conditioned 
                        footprint of the house.
          (3) Duct seal or replacement that--
                  (A) is installed in accordance with BPI standards or 
                other procedures approved by the Secretary; and
                  (B) in the case of duct replacement, replaces at 
                least 50 percent of a distribution system of the home.
          (4) Wall insulation that--
                  (A) is installed in accordance with BPI standards or 
                other procedures approved by the Secretary;
                  (B) is to full-stud thickness; and
                  (C) covers at least 75 percent of the total external 
                wall area of the home.
          (5) Crawl space insulation or basement wall and rim joist 
        insulation that is installed in accordance with BPI standards 
        or other procedures approved by the Secretary and--
                  (A) covers at least 500 square feet of crawl space or 
                basement wall and adds at least--
                          (i) R-19 of cavity insulation or R-15 of 
                        continuous insulation to existing crawl space 
                        insulation; or
                          (ii) R-13 of cavity insulation or R-10 of 
                        continuous insulation to basement walls; and
                  (B) fully covers the rim joist with at least R-10 of 
                new continuous or R-13 of cavity insulation.
          (6) Window replacement that replaces at least 8 exterior 
        windows or skylights, or 75 percent of the exterior windows and 
        skylights in a home, whichever is less, with--
                  (A) windows that--
                          (i) are certified by the National 
                        Fenestration Rating Council; and
                          (ii) comply with criteria applicable to 
                        windows and skylights under section 25(c) of 
                        the Internal Revenue Code of 1986; or
                  (B) skylights that comply with the 2010 Energy Star 
                specification for skylights.
          (7) Door replacement that replaces at least 1 exterior door 
        with doors that comply with the 2010 Energy Star specification 
        for doors.
          (8)(A) Heating system replacement of--
                  (i) a natural gas or propane furnace with a furnace 
                that has an AFUE rating of 92 or greater;
                  (ii) a natural gas or propane boiler with a boiler 
                that has an AFUE rating of 90 or greater;
                  (iii) an oil furnace with a furnace that has an AFUE 
                rating of 86 or greater and that uses an electrically 
                commutated blower motor;
                  (iv) an oil boiler with a boiler that has an AFUE 
                rating of 86 or greater and that has temperature reset 
                or thermal purge controls; or
                  (v) a wood or wood pellet furnace, boiler, or stove, 
                if--
                          (I) the new system--
                                  (aa) meets at least 75 percent of the 
                                heating demands of the home;
                                  (bb) in the case of a furnace or 
                                boiler, has a distribution system (such 
                                as ducts or vents) that allows heat to 
                                reach all or most parts of the home and 
                                qualifies for Phase 2 of the EPA 
                                Voluntary Program for Hydronic Heaters; 
                                and
                                  (cc) in the case of a stove, replaces 
                                an existing wood or wood pellet stove 
                                and is certified by the EPA, and a 
                                voucher is provided by the installer or 
                                other responsible party certifying that 
                                the old stove has been removed and 
                                rendered inoperable or recycled at an 
                                appropriate recycling facility; and
                          (II) an accredited independent laboratory 
                        recognized by the EPA certifies that the new 
                        system--
                                  (aa) has thermal efficiency (lower 
                                heating value) of at least 75 percent 
                                for stoves and at least 90 percent for 
                                furnaces and boilers; and
                                  (bb) has particulate emissions of 
                                less than 3.0 grams per hour for 
                                stoves, and less than 0.32 lbs/mmBTU 
                                for furnaces and boilers.
          (B) A rebate may be provided under this section for the 
        replacement of a furnace or boiler described in clauses (i) 
        through (iv) of subparagraph (A) only if the new furnace or 
        boiler is installed in accordance with ANSI/ACCA Standard 5 QI-
        2007.
          (9) Air conditioner or air-source heat pump replacement with 
        a new unit that--
                  (A) is installed in accordance with ANSI/ACCA 
                Standard 5 QI-2007; and
                  (B) meets or exceeds--
                          (i) in the case of an air conditioner, SEER 
                        16 and EER 13; and
                          (ii) in the case of an air-source heat pump, 
                        SEER 15, EER 12.5, and HSPF 8.5.
          (10) Heating or cooling system replacement with an Energy 
        Star qualified geothermal heat pump that meets Tier 2 
        efficiency requirements and that is installed in accordance 
        with ANSI/ACCA Standard 5 QI-2007.
          (11) Replacement of a natural gas, propane, or electric water 
        heater with--
                  (A) a natural gas or propane condensing storage water 
                heater with an energy factor of 0.80 or more or a 
                thermal efficiency of 90 percent or more;
                  (B) a tankless natural gas or propane water heater 
                with an energy factor of at least .82;
                  (C) a natural gas or propane storage water heater 
                with an energy factor of at least .67;
                  (D) an indirect water heater with an insulated 
                storage tank that--
                          (i) has a storage capacity of at least 30 
                        gallons and is insulated to at least R-16; and
                          (ii) is installed in conjunction with a 
                        qualifying boiler described in paragraph (8);
                  (E) an electric water heater with an energy factor of 
                2.0 or more;
                  (F) an electric tankless water heater with an 
                efficiency factor of .96 or more, that operates on not 
                greater than 25 kilowatts;
                  (G) a solar hot water system that--
                          (i) is certified by the Solar Rating and 
                        Certification Corporation; or
                          (ii) meets technical standards established by 
                        the State of Hawaii; or
                  (H) a water heater installed in conjunction with a 
                qualifying geothermal heat pump described in paragraph 
                (10) that provides domestic water heating through the 
                use of a desuperheater or demand water heating 
                capability.
          (12) Storm windows that--
                  (A) are installed on at least 5 existing single-
                glazed windows that do not have storm windows;
                  (B) are installed in a home listed on or eligible for 
                listing in the National Register of Historic Places; 
                and
                  (C) comply with any procedures that the Secretary may 
                set for storm windows and their installation.
          (13) Window film that is installed on at least 8 exterior 
        windows, doors, or skylights, or 75 percent of the total 
        exterior square footage of glass in a home, whichever is less, 
        with window films that--
                  (A) are certified by the National Fenestration Rating 
                Council; and
                  (B) have--
                          (i) a solar heat gain coefficient of 0.43 or 
                        less with a visible light-to-solar heat gain 
                        coefficient of at least 1.1 in 2009 
                        International Energy Conservation Code climate 
                        zones 1-3; or
                          (ii) a solar heat gain coefficient of 0.43 or 
                        less with a visible light light-to-solar heat 
                        gain coefficient of at least 1.1 and a U-factor 
                        of 0.40 or less as installed in 2009 
                        International Energy Conservation Code climate 
                        zones 4-8.
  (c) Installation Costs.--Measures described in paragraphs (1) through 
(13) of subsection (b) shall include expenditures for labor and other 
installation-related costs, including venting system modification and 
condensate disposal, properly allocable to the onsite preparation, 
assembly, or original installation of the component.
  (d) Amount of Rebate.--
          (1) In general.--Except as provided in paragraphs (2) through 
        (4), the amount of a rebate provided under subsection (a) shall 
        be $1,000 per measure for the installation of energy savings 
        measures described in subsection (b).
          (2) Higher rebate amount.--Except as provided in paragraph 
        (4), the amount of a rebate provided under subsection (a) shall 
        be $1,500 per measure for--
                  (A) attic insulation and air sealing described in 
                subsection (b)(1) or (2); and
                  (B) wall insulation described in subsection (b)(4).
          (3) Lower rebate amount.--Except as provided in paragraph 
        (4), the amount of a rebate provided under subsection (a) shall 
        be--
                  (A) $125 per door for the installation of up to a 
                maximum of 2 Energy Star doors described in subsection 
                (b)(7) for each home;
                  (B) $250 for a maximum of 1 natural gas or propane 
                storage water heater described in subsection (b)(11)(C) 
                for each home;
                  (C) $250 for rim joist insulation described in 
                subsection (b)(5)(B);
                  (D) $50 for each storm window described in subsection 
                (b)(12), with a minimum of 5 storm windows and a 
                maximum of 12;
                  (E) $250 each for a maximum of 4 electric tankless 
                water heaters described in subsection (b)(11)(F) for 
                each home; and
                  (F) $500 for window film described in subsection 
                (b)(13).
          (4) Maximum amount.--The total amount of rebates provided for 
        a home under this section shall not exceed the lower of--
                  (A) $3,000;
                  (B) 50 percent of the total cost of the installed 
                measures; or
                  (C) if the Secretary finds that the net value to the 
                homeowner of the rebates, as a function of the discount 
                the contractor or vendor provides to the homeowner for 
                the installed measures, is less than the amount of the 
                rebates, the actual net value to the homeowner.
  (e) Verification and Correction of Work.--
          (1) Reimbursement.--On submission of a claim by a rebate 
        aggregator to the Federal Rebate Processing System, the 
        Secretary shall provide reimbursement to the rebate aggregator 
        for energy-efficiency measures installed in a home, subject to 
        paragraphs (2) and (3).
          (2) Verification.--
                  (A) Percentage of retrofits verified.--
                          (i) In general.--Except as provided in clause 
                        (ii), not less than--
                                  (I) 20 percent of the retrofits 
                                performed by each qualified contractor 
                                under this section with respect to a 
                                rebate described in subsection (a) 
                                shall be randomly subject to field 
                                verification by an independent quality 
                                assurance provider of all work 
                                associated with the retrofit; and
                                  (II) in the case of a qualified 
                                contractor that uses a certified 
                                workforce, 10 percent of the retrofits 
                                performed by that contractor under this 
                                section with respect to a rebate 
                                described in subsection (a) shall be 
                                randomly subject to field verification 
                                by an independent quality assurance 
                                provider of all work associated with 
                                the retrofit.
                          (ii) Exceptions.--In the case of a qualified 
                        contractor whose previous retrofit work--
                                  (I) the Secretary has found to fail 
                                to comply with the requirements of this 
                                section, the Secretary may establish a 
                                higher percentage of the retrofits 
                                performed by that contractor under this 
                                section with respect to a rebate 
                                described in subsection (a) to be 
                                subject to field verification by an 
                                independent quality assurance provider; 
                                and
                                  (II) the Secretary has found to 
                                successfully comply with the 
                                requirements of this section, the 
                                Secretary may establish a lower 
                                percentage of the retrofits performed 
                                by that contractor under this section 
                                with respect to a rebate described in 
                                subsection (a) to be subject to field 
                                verification by an independent quality 
                                assurance provider.
                  (B) Homeowner complaint.--A homeowner may make a 
                complaint under the quality assurance program that 
                compliance with the quality assurance requirements of 
                this title has not been achieved. The quality assurance 
                program shall provide that, upon receiving such a 
                complaint, an independent quality assurance provider 
                shall conduct field verification on the retrofit work 
                performed by the contractor. Verifications under this 
                subparagraph shall be in addition to those conducted 
                under subparagraph (A), and shall be corrected in 
                accordance with paragraph (3).
          (3) Correction.--Rebates under subsection (a) shall be made 
        subject to the following conditions:
                  (A) The installed measures will comply with the 
                specifications and quality standards under this section 
                if a field verification by a quality assurance provider 
                finds that corrective work is needed. Such compliance 
                shall be achieved by the installing accredited 
                contractor not later than 14 days after the date of 
                notification of a defect pursuant to a warranty, 
                provided at no additional cost to the homeowner.
                  (B) A subsequent quality assurance visit shall be 
                conducted to evaluate the remedy not later than 7 days 
                after notification that the defect has been corrected.
                  (C) The quality assurance provider shall notify the 
                contractor of the disposition of such visit not later 
                than 7 days after the date of the visit.
          (4) Access to home.--In order to be eligible for a discount 
        from a contractor or vendor for which a rebate is provided 
        under subsection (a), a homeowner shall agree to permit such 
        access to the home, upon reasonable notice and at a mutually 
        convenient time, as is necessary to verify and correct retrofit 
        work.
  (f) Products Purchased Without Installation Services.--
          (1) In general.--A Silver Star Home Energy Retrofit Program 
        rebate shall be awarded for attic, wall, and crawl space 
        insulation and air-sealing products that--
                  (A)(i) in the case of insulation, qualify for a tax 
                credit under section 25C of the Internal Revenue Code 
                of 1986, but with respect to which no claim for such a 
                tax credit has been made; and
                  (ii) in the case of air sealing products, are 
                sealants, caulks, polyurethane foams, gaskets, weather-
                stripping, mastics, or other air sealing products 
                described in subsection (b)(1);
                  (B) are purchased by a homeowner for installation by 
                the homeowner in a home identified by its address by 
                the homeowner;
                  (C) are accompanied by educational materials on 
                proper installation of the products, including 
                materials emphasizing the importance of air sealing 
                when insulating; and
                  (D) are identified and attributed to that home in a 
                rebate submission by the vendor to a rebate aggregator.
          (2) Limitation.--No rebate may be provided under this 
        subsection with respect to insulation or products that are 
        employed in energy-efficiency measures with respect to which a 
        rebate is provided under this section or section 104.
          (3) Amount of rebate.--A rebate under this subsection shall 
        be awarded for 50 percent of the total cost of the products 
        described in paragraph (1), not to exceed $250 per home.
  (g) Review.--
          (1) In general.--The Secretary shall determine whether 
        information submitted to the Federal Rebate Processing System 
        with respect to a rebate was complete, and on the basis of that 
        information and other information available to the Secretary, 
        shall determine whether the requirements of this section 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, or that sufficient information was not submitted to the 
        Federal Rebate Processing System to enable such determination, 
        the Secretary--
                  (A) may--
                          (i) recoup the amount of the incorrect 
                        payment; or
                          (ii) withhold the amount of the incorrect 
                        payment from a payment made to the party 
                        pursuant to a subsequent request; and
                  (B) shall, to the extent the Secretary determines the 
                benefit of the rebate was not passed through to the 
                homeowner through a discount on the price of the 
                retrofit work, order the contractor or vendor to pay 
                the amount of rebate benefit not previously passed 
                through to the homeowner.

SEC. 104. GOLD STAR HOME ENERGY RETROFIT PROGRAM.

  (a) In General.--A Gold Star Home Energy Retrofit Program rebate 
shall be awarded, subject to subsection (b), to participating 
accredited contractors and vendors, to reimburse them for discounts 
provided to the owner of the home for the retrofit work, for retrofits 
that achieve whole home energy savings carried out after the date of 
enactment of this Act in accordance with this section.
  (b) Eligible Measures.--Rebates may be provided under this section 
for --
          (1) any measure listed as eligible for Silver Star rebates in 
        section 103; and
          (2) any other energy-saving measure, such as home energy 
        management systems, high-efficiency appliances, highly 
        reflective roofing, awnings, canopies, and similar external 
        fenestration attachments, automatic boiler water temperature 
        controllers, and mechanical air circulation and heat exchangers 
        in a passive-solar home--
                  (A) that can be demonstrated, when installed and 
                operated as intended, to improve energy efficiency; and
                  (B) for which an energy efficiency contribution can 
                be determined with confidence.
  (c) Energy Savings.--
          (1) In general.--Reductions in whole home energy consumption 
        under this section shall be determined by a comparison of the 
        simulated energy consumption of the home before and after the 
        retrofit of the home.
          (2) Documentation.--The percent improvement in energy 
        consumption of a home under this section shall be documented 
        through--
                  (A)(i) the use of a whole home simulation software 
                program that has been approved under the Weatherization 
                Assistance Program for Low-Income Persons established 
                under part A of title IV of the Energy Conservation and 
                Production Act (42 U.S.C. 6861 et seq.); or
                  (ii) a equivalent performance test established by the 
                Secretary, in consultation with the Administrator; or
                  (B)(i) the use of a whole home simulation software 
                program that has been approved under RESNET Publication 
                No. 06-001 (or a successor publication approved by the 
                Secretary);
                  (ii) an equivalent performance test established by 
                the Secretary, in consultation with the Administrator;
                  (iii) a State-certified equivalent rating network, as 
                specified by IRS Notice 2008-35; or
                  (iv) a HERS rating system approved or required by the 
                law of the State in which the home is located.
          (3) Monitoring.--The Secretary--
                  (A) shall continuously monitor the software programs 
                used for determining rebates under this section; and
                  (B) may disallow the use of software programs that 
                improperly assess energy savings.
          (4) Assumptions and testing.--The Secretary may--
                  (A) establish simulation software program assumptions 
                for carrying out paragraph (2);
                  (B) require compliance with software program 
                performance tests covering--
                          (i) mechanical system performance;
                          (ii) duct distribution system efficiency;
                          (iii) hot water performance; or
                          (iv) other measures; and
                  (C) require the simulation of pre-retrofit energy 
                usage to be determined by metered pre-retrofit energy 
                usage.
          (5) Recommended measures.--Software programs used under this 
        subsection shall have the ability at a minimum to assess the 
        savings associated with all the measures for which rebates are 
        specifically provided under the Silver Star Home Energy 
        Retrofit Program.
  (d) Amount of Rebate.--Subject to subsection (e)(2), the amount of a 
rebate provided under this section shall be--
          (1) $3,000 for a 20-percent reduction in whole home energy 
        consumption; and
          (2) an additional $1,000 for each additional 5-percent 
        reduction up to the lower of--
                  (A) $8,000; or
                  (B) 50 percent of the total retrofit cost.
  (e) Verification and Correction of Work.--
          (1) Reimbursement.--On submission of a claim by a rebate 
        aggregator to the Federal Rebate Processing System, the 
        Secretary shall provide reimbursement to the rebate aggregator 
        for energy-efficiency measures installed in a home, subject to 
        paragraphs (2) and (3).
          (2) Verification.--
                  (A) In general.--Subject to subparagraph (B), all 
                work conducted in a home as part of a whole-home 
                retrofit by an accredited contractor under this section 
                shall be subject to random field verification by an 
                independent quality assurance provider at a rate of--
                          (i) 15 percent; or
                          (ii) in the case of work performed by an 
                        accredited contractor using a certified 
                        workforce, 10 percent.
                  (B) Verification not required.--A home shall not be 
                subject to field verification under subparagraph (A) 
                if--
                          (i) a post-retrofit home energy rating is 
                        conducted by an entity that is an eligible 
                        certifier in accordance with--
                                  (I) RESNET Publication No. 06-001 (or 
                                a successor publication approved by the 
                                Secretary);
                                  (II) a State-certified equivalent 
                                rating network, as specified in IRS 
                                Notice 2008-35; or
                                  (III) a HERS rating system required 
                                by the law of the State in which the 
                                home is located;
                          (ii) the eligible certifier is independent of 
                        the accredited contractor in accordance with 
                        RESNET Publication No. 06-001 (or a successor 
                        publication approved by the Secretary); and
                          (iii) the rating includes field verification 
                        of all measures for which rebates are being 
                        provided.
                  (C) Homeowner complaint.--A homeowner may make a 
                complaint under the quality assurance program that 
                compliance with the quality assurance requirements of 
                this title has not been achieved. The quality assurance 
                program shall provide that, upon receiving such a 
                complaint, an independent quality assurance provider 
                shall conduct field verification on the retrofit work 
                performed by the contractor. Verifications under this 
                subparagraph shall be in addition to those conducted 
                under subparagraph (A), and shall be corrected in 
                accordance with paragraph (3).
                  (D) Access to home.--In order to be eligible for a 
                discount from a contractor or vendor for which a rebate 
                is provided under this section, a homeowner shall agree 
                to permit such access to the home, upon reasonable 
                notice and at a mutually convenient time, as is 
                necessary to verify and correct retrofit work.
          (3) Correction.--Rebates under this section shall be made 
        subject to the following conditions:
                  (A) The installed measures will comply with 
                manufacturer and applicable code standards and the 
                specifications and quality standards under this section 
                if a field verification by an independent quality 
                assurance provider finds that corrective work is 
                needed. Such compliance shall be achieved by the 
                installing accredited contractor not later than 14 days 
                after the date of notification of a defect pursuant to 
                a warranty, provided at no additional cost to the 
                homeowner.
                  (B) A subsequent quality assurance visit shall be 
                conducted to evaluate the remedy not later than 7 days 
                after notification that the defect has been corrected.
                  (C) The quality assurance provider shall notify the 
                contractor of the disposition of such visit not later 
                than 7 days after the date of the visit.
  (f) Review.--
          (1) In general.--The Secretary shall determine whether 
        information submitted to the Federal Rebate Processing System 
        with respect to a rebate was complete, and on the basis of that 
        information and other information available to the Secretary, 
        shall determine whether the requirements of this section 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, or that sufficient information was not submitted to the 
        Federal Rebate Processing System to enable such determination, 
        the Secretary--
                  (A) may--
                          (i) recoup the amount of the incorrect 
                        payment; or
                          (ii) withhold the amount of the incorrect 
                        payment from a payment made to the party 
                        pursuant to a subsequent request; and
                  (B) shall, to the extent the Secretary determines the 
                benefit of the rebate was not passed through to the 
                homeowner through a discount on the price of the 
                retrofit work, order the contractor or vendor to pay 
                the amount of rebate benefit not previously passed 
                through to the homeowner.

SEC. 105. QUALITY ASSURANCE.

  (a) Quality Assurance Framework.--
          (1) In general.--States that elect to carry out a quality 
        assurance program pursuant to subsection (b) shall plan, 
        develop, and implement a quality assurance framework. The 
        Secretary shall promptly solicit the submission of model State 
        quality assurance framework plans consistent with the 
        requirements of this section and, not later than 60 days after 
        the date of enactment of this Act, shall approve one or more 
        such model plans that incorporate nationally consistent high 
        standards for optional use by States. Not later than 180 days 
        after the date of enactment of this Act, each State electing to 
        develop a quality assurance framework shall submit its plan to 
        the Secretary, who shall then approve or reject such plan 
        within 30 days, providing a detailed statement of deficiencies 
        if the plan is rejected. If a State's plan is rejected, that 
        State may resubmit its plan within 30 days.
          (2) Implementation.--A State shall--
                  (A) develop a quality assurance framework in 
                consultation with industry stakeholders, including 
                representatives of efficiency program managers, 
                contractors, community and workforce organizations, and 
                environmental, energy efficiency, and labor 
                organizations; and
                  (B) implement the quality assurance framework not 
                later than one year after the date of enactment of this 
                Act.
          (3) Components.--The quality assurance framework established 
        under this subsection shall include--
                  (A) minimum standards for accredited contractors, 
                including--
                          (i) compliance with applicable Federal, 
                        State, and local laws;
                          (ii) use of a certified workforce;
                          (iii) maintenance of records needed to verify 
                        compliance; and
                          (iv) use of independent contractors only when 
                        appropriately classified as such pursuant to 
                        Revenue ruling 87-41 and section 530(d) of the 
                        Revenue Act of 1978 and relevant State law;
                  (B) maintenance of a list of accredited contractors;
                  (C) requirements for maintenance and delivery to the 
                Federal Rebate Processing System of information needed 
                to verify compliance and ensure appropriate 
                compensation for quality assurance providers;
                  (D) targets and realistic plans for--
                          (i) the recruitment of minority and women-
                        owned small business enterprises;
                          (ii) the employment of graduates of training 
                        programs that primarily serve targeted workers;
                          (iii) the employment of targeted workers; and
                          (iv) the availability of financial assistance 
                        under the Home Star Loan Program to--
                                  (I) public use microdata areas that 
                                have a poverty rate of 12 percent or 
                                more; and
                                  (II) homeowners served by units of 
                                local government in jurisdictions that 
                                have an unemployment rate that is 2 
                                percent higher than the national 
                                unemployment rate;
                  (E) a plan to link workforce training for energy 
                efficiency retrofits with training for the broader 
                range of skills and occupations in construction or 
                emerging clean energy industries;
                  (F) quarterly reports to the Secretary on the 
                progress of implementation of the quality assurance 
                framework and its success in meeting its targets and 
                plans; and
                  (G) maintenance of a list of qualified quality 
                assurance providers and minimum standards for such 
                quality assurance providers.
          (4) Noncompliance.--If the Secretary determines that a State 
        that has elected to implement a quality assurance program, but 
        has failed to plan, develop, or implement a quality assurance 
        framework in accordance with this section, the Secretary shall 
        suspend further grants for State administration pursuant to 
        section 112(b)(1).
  (b) Quality Assurance Programs.--
          (1) In general.--A State may carry out a quality assurance 
        program--
                  (A) as part of a State 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) to be managed by the office or the designee of 
                the office--
                          (i) that is 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, that 
                        is conducting an existing energy efficiency 
                        program; and
                  (C) in the case of a grant made to an Indian tribe, 
                to be 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 
        has not provided or cannot provide adequate oversight over a 
        quality assurance program to ensure compliance with this title, 
        the Secretary may--
                  (A) withhold further quality assurance funds from the 
                State; and
                  (B) require that quality assurance providers 
                operating in the State be overseen by a national 
                quality assurance program manager selected by the 
                Secretary.
          (3) Implementation.--A State that receives a grant under this 
        title may implement a quality assurance program through the 
        State or an independent quality assurance provider designated 
        by the State, including--
                  (A) an energy service company;
                  (B) an electric utility;
                  (C) a natural gas utility;
                  (D) an independent administrator designated by the 
                State; or
                  (E) a unit of local government.

SEC. 106. REPORTS.

  (a) In General.--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 this title--
          (1) not later than 1 year after the date of enactment of this 
        Act; and
          (2) not later than the earlier of--
                  (A) 2 years after the date of enactment of this Act; 
                or
                  (B) December 31, 2012.
  (b) Contents.--The report shall include a description of--
          (1) the energy savings produced as a result of this title;
          (2) the direct and indirect employment created as a result of 
        the programs supported under this title;
          (3) the specific entities implementing the energy efficiency 
        programs;
          (4) the beneficiaries who received the efficiency 
        improvements;
          (5) the manner in which funds provided under this title were 
        used;
          (6) the sources (such as mortgage lenders, utility companies, 
        and local governments) and types of financing used by the 
        beneficiaries to finance the retrofit expenses that were not 
        covered by rebates provided under this title; and
          (7) the results of verification requirements; and
          (8) any other information the Secretary considers 
        appropriate.
  (c) Required Information.--
          (1) Requirement.--Rebate aggregators and States participating 
        in the Home Star Retrofit Rebate Program shall provide to the 
        Secretary such information as the Secretary requires to prepare 
        the report required under this section.
          (2) Noncompliance.--If the Secretary determines that a rebate 
        aggregator or State has not provided the information required 
        under paragraph (1), the Secretary shall provide to the rebate 
        aggregator or State a period of at least 90 days to provide the 
        necessary information, subject to withholding of funds or 
        reduction of future grant amounts.

SEC. 107. TREATMENT OF REBATES.

  (a) In General.--For purposes of the Internal Revenue Code of 1986, 
rebates received under this title--
          (1) shall not be considered taxable income to a homeowner; 
        and
          (2) shall supplant any credit allowed under section 25C or 
        25D of that Code for eligible work performed in the home of the 
        homeowner.
  (b) Notice.--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.

SEC. 108. HEATING AND COOLING EFFICIENCY STUDY.

  (a) In General.--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 study not later than 1 
year after the date of enactment of this Act.
  (b) Contents.--The study shall include a description of--
          (1) the efficiency through the life-cycle of air conditioning 
        and heat pump products eligible under section 103; and
          (2) a comparison of the efficiency through the life-cycle of 
        air conditioning and heat pump products eligible under section 
        103 to the efficiency through the life-cycle of air 
        conditioning and heat pump products not eligible under section 
        103.

SEC. 109. PUBLIC INFORMATION CAMPAIGN.

  Not later than 60 days after the date of enactment of this Act, the 
Administrator, in consultation with the States and the Secretary, shall 
develop and implement a public education campaign that describes--
          (1) the benefits of home energy retrofits; and
          (2) the availability of rebates for the installation of 
        qualifying energy savings measures under the Silver Star Home 
        Energy Retrofit Program and for whole home energy savings under 
        the Gold Star Home Energy Retrofit Program.

SEC. 110. PENALTIES.

  (a) In General.--The Secretary may--
          (1) assess and compromise a civil penalty against a person 
        who violates this title (or any regulation issued under this 
        title); and
          (2) require from any entity the records and inspections 
        necessary to enforce this title.
  (b) Civil Penalty.--A civil penalty assessed under subsection (a) 
shall be in an amount not greater than the higher of--
          (1) $15,000 for each violation; or
          (2) 3 times the value of any associated rebate under this 
        title.

SEC. 111. HOME STAR ENERGY EFFICIENCY LOAN PROGRAM.

  (a) Definitions.--In this section:
          (1) Eligible participant.--The term ``eligible participant'' 
        means a homeowner who receives financial assistance from a 
        qualified financing entity to carry out qualifying energy 
        savings measures under the Silver Star Home Energy Retrofit 
        Program or whole home energy savings under the Gold Star Home 
        Energy Retrofit Program.
          (2) Qualified financing entity.--The term ``qualified 
        financing entity'' means a State, political subdivision of a 
        State, tribal government, electric utility, natural gas 
        utility, nonprofit or community-based organization, energy 
        service company, retailer, or any other entity that--
                  (A) meets the eligibility requirements of this 
                section; and
                  (B) is designated by the Governor of a State in 
                accordance with subsection (e)(1).
          (3) Qualified loan program mechanism.--The term ``qualified 
        loan program mechanism'' means a mechanism for the 
        establishment and operation of a loan program that is--
                  (A) administered by a qualified financing entity; and
                  (B) funded in significant part--
                          (i) by funds provided by or overseen by a 
                        State; or
                          (ii) through the energy loan program of the 
                        Federal National Mortgage Association.
  (b) Establishment.--The Secretary shall establish a Home Star Energy 
Efficiency Loan Program under which the Secretary shall make funds 
available to States to support financial assistance provided by 
qualified financing entities for the installation of qualifying energy 
savings measures under the Silver Star Home Energy Retrofit Program or 
whole home energy savings under the Gold Star Home Energy Retrofit 
Program.
  (c) Eligibility of Qualified Financing Entities.--To be eligible to 
participate in the Home Star Loan Program, a qualified financing entity 
shall--
          (1) offer a financing product under which eligible 
        participants may pay over time for the cost to the eligible 
        participant (after all applicable Federal, State, local, and 
        other rebates or incentives are applied) of installations 
        described in subsection (b);
          (2) require all financed installations to be performed by 
        contractors in a manner that meets minimum standards provided 
        under sections 103 and 104;
          (3) establish standard underwriting criteria to determine the 
        eligibility of Home Star Loan Program applicants, which 
        criteria shall be consistent with--
                  (A) with respect to unsecured consumer loan programs, 
                standard underwriting criteria used under the energy 
                loan program of the Federal National Mortgage 
                Association; or
                  (B) with respect to secured loans or other forms of 
                financial assistance, commercially recognized best 
                practices applicable to the form of financial 
                assistance being provided (as determined by the 
                designated entity administering the Home Star Loan 
                Program in the State); and
          (4) undertake particular efforts to make such loans available 
        in public use microdata areas that have a poverty rate of 12 
        percent or more in a proportion of total loans made at least 
        equal to the proportion the number of residents in such areas 
        bears to the total population of the area served by that 
        qualified financing entity.
  (d) Allocation.--In allocating 75 percent of the funds made available 
to States for each fiscal year under this section, the Secretary shall 
use the formula used to allocate funds to States to carry out State 
energy conservation plans established under part D of title III of the 
Energy Policy and Conservation Act (42 U.S.C. 6321 et seq.). In 
allocating the remaining 25 percent of the funds made available to 
States for each fiscal year under this section, the Secretary may vary 
the result of the formula to recognize and reward those States that 
make the best progress in providing loans to low-income areas pursuant 
to subsection (c)(4).
  (e) Qualified Financing Entities.--Before making funds available to a 
State under this section, the Secretary shall require the Governor of 
the State to provide to the Secretary a letter of assurance that the 
State--
          (1) has 1 or more qualified financing entities that meet the 
        requirements of this section;
          (2) has established, or has required its designated qualified 
        financing entities to establish, a qualified loan program 
        mechanism that--
                  (A) will use a quality assurance program established 
                under this title or another appropriate methodology to 
                ensure energy savings;
                  (B) incorporates an effective repayment mechanism, 
                which may include--
                          (i) on-utility-bill repayment;
                          (ii) tax assessment or other form of property 
                        assessment financing;
                          (iii) municipal service charges;
                          (iv) energy or energy efficiency services 
                        contracts;
                          (v) energy efficiency power purchase 
                        agreements;
                          (vi) unsecured loans applying the 
                        underwriting requirements of the energy loan 
                        program of the Federal National Mortgage 
                        Association; or
                          (vii) alternative contractual repayment 
                        mechanisms that have been demonstrated to have 
                        appropriate risk mitigation features; and
          (3) will provide, in a timely manner, all information 
        regarding the administration of the Home Star Loan Program as 
        the Secretary may require to permit the Secretary to meet the 
        program evaluation requirements of subsection (h).
  (f) Use of Funds.--Funds made available to States for carrying out 
the Home Star Loan Program may be used to support financing mechanisms 
offered by qualified financing entities to eligible participants, 
including--
          (1) interest rate reductions to interest rates as low as 0 
        percent;
          (2) loan loss reserves or other forms of credit enhancement;
          (3) revolving loan funds from which qualified financing 
        entities may offer direct loans; or
          (4) other debt instruments (excluding securitization 
        instruments) necessary--
                  (A) to use available funds to obtain appropriate 
                leverage through private investment; and
                  (B) to support widespread deployment of energy 
                efficiency programs.
  (g) Use of Repaid Funds.--In the case of a revolving loan fund 
described in subsection (f)(3), a qualified financing entity may use 
funds repaid by eligible participants under the Home Star Loan Program 
to provide financial assistance for additional eligible participants 
for installations described in subsection (b) in a manner that is 
consistent with this section.
  (h) Program Evaluation.--Not later than 1 year after the date of 
enactment of this Act, the Secretary shall submit to Congress a program 
evaluation that describes--
          (1) how many eligible participants have participated in the 
        Home Star Loan Program;
          (2) how many jobs have been created through the Home Star 
        Loan Program, directly and indirectly;
          (3) what steps could be taken to promote further deployment 
        of energy efficiency retrofits;
          (4) the quantity of verifiable energy savings, homeowner 
        energy bill savings, and other benefits of the Home Star Loan 
        Program; and
          (5) the performance of the programs carried out by qualified 
        financing entities under this section, including information on 
        the rate of default and repayment.

SEC. 112. FUNDING.

  (a) Authorization of Appropriations.--
          (1) In general.--Subject to subsection (j), there are 
        authorized to be appropriated to carry out this title 
        $6,000,000,000 for the period of fiscal years 2010 and 2011, to 
        remain available until expended.
          (2) Maintenance of funding.--Funds provided under this 
        section shall supplement and not supplant any prior or planned 
        Federal and State funding provided to carry out energy 
        efficiency programs. To the extent the Secretary finds that a 
        State has supplanted other such programs with funding under 
        this section, the Secretary may withhold an equivalent amount 
        of funding from allocations for the State under this title.
  (b) Grants to States.--
          (1) In general.--Except as otherwise provided in this 
        subsection, of the amount provided under subsection (a), not 
        more than 9 percent is authorized to be appropriated to the 
        Secretary for providing grants to States, to be used for--
                  (A) administrative costs of carrying out this title;
                  (B) development and implementation of quality 
                assurance frameworks;
                  (C) oversight of quality assurance programs;
                  (D) establishment and delivery of financing 
                mechanisms, in accordance with paragraph (2); and
                  (E) coordination with existing residential retrofit 
                programs and infrastructure development to assist 
                deployment of the Home Star Retrofit Rebate Program.
          (2) Financing.--Of the amounts allocated to the States under 
        paragraph (1), not less than 60 percent shall be used to carry 
        out section 111.
          (3) Distribution to states.--
                  (A) Provision of funds.--Not later than 30 days after 
                the date of enactment of this Act, the Secretary shall 
                provide to the State energy offices, or such other 
                State entities as are designated by the Governor, of 
                States that are carrying out responsibilities under 
                section 105, 25 percent of the funds described in 
                paragraph (1).
                  (B) Allocation.--Funds described in subparagraph (A) 
                shall be made available 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) Fund allocation process.--The Secretary shall 
                allocate the remaining 75 percent of the funds 
                described in paragraph (1) in a manner that may vary 
                from the formula described in subparagraph (B) as 
                necessary to best support the objectives of achieving 
                energy efficiency gains, employment of underemployed 
                workers, and implementing quality assurance programs 
                and frameworks in participating States.
          (4) Withholding of funds.--To the extent that the Secretary 
        assumes the responsibilities of a State under section 101(i), 
        the Secretary shall withhold the portion of the funds otherwise 
        transferrable to the State under this section that are 
        attributable to those State responsibilities.
          (5) Indian tribes.--
                  (A) In general.--If an Indian tribe acts in place of 
                a State for purposes of carrying out the 
                responsibilities of the State under this title with 
                respect to its tribal lands pursuant to section 101(h), 
                the Secretary shall transfer to that Indian tribe, 
                instead of the State, the proportionate share of funds 
                otherwise transferrable to the State under this 
                section.
                  (B) Proportionate share.--For purposes of 
                subparagraph (A), the proportionate share shall be 
                calculated on the basis of the percentage of the 
                population of the State that resides within the tribal 
                lands.
  (c) Quality Assurance Costs.--
          (1) In general.--Of the amount provided under subsection (a), 
        not more than 5 percent are authorized to be appropriated to 
        the Secretary to be used as provided in paragraph (2), in 
        accordance with information provided by the State offices or 
        entities described in subsection (b)(3)(B) with respect to 
        services provided by quality assurance providers.
          (2) Distribution to quality assurance providers or rebate 
        aggregators.--The Secretary shall use funds provided under this 
        subsection to compensate quality assurance providers and rebate 
        aggregators for services provided under this title.
          (3) Compensation.--The amount of compensation provided under 
        this subsection shall be--
                  (A)(i) in the case of the Silver Star Home Energy 
                Retrofit Program--
                          (I) not more than $25 to rebate aggregators 
                        per rebate review and processing under the 
                        program; and
                          (II) $150 to quality assurance providers for 
                        each field inspection conducted under the 
                        program; and
                  (ii) in the case of the Gold Star Home Energy 
                Retrofit Program--
                          (I) not more than $35 to rebate aggregators 
                        for each rebate review and processing under the 
                        program; and
                          (II) $300 to quality assurance providers for 
                        each field inspection conducted under the 
                        program; or
                  (B) such other amounts as the Secretary considers 
                necessary to carry out the quality assurance provisions 
                of this title to optimize the overall energy efficiency 
                resulting from the Silver Star Home Energy Retrofit 
                Program and the Gold Star Home Energy Retrofit Program.
  (d) 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 title, technical assistance to States, and related 
administrative costs incurred by the Secretary.
  (e) Public Education and Coordination.--Of the amount provided under 
subsection (a), not more than 0.2 percent are authorized to be 
appropriated to the Administrator to be used for costs associated with 
public education and coordination with the Federal Energy Star program.
  (f) Silver Star Home Energy Retrofit Program.--
          (1) In general.--Of the amount provided under subsection (a), 
        after subtracting the amounts authorized in subsections (b), 
        (d), and (e) of this section, two-thirds of the remainder are 
        authorized to be appropriated to the Secretary to be used to 
        provide rebates and other payments authorized under the Silver 
        Star Home Energy Retrofit Program.
          (2) Products purchased without installation services.--Of the 
        amounts appropriated pursuant to this subsection for the Silver 
        Star program, 7.5 percent shall be made available for rebates 
        under section 103(f).
  (g) Gold Star Home Energy Retrofit Program.--Of the amount provided 
under subsection (a), after subtracting the amounts authorized in 
subsections (b), (d), and (e) of this section, one-third of the 
remainder is authorized to be appropriated to the Secretary to be used 
to provide rebates and other payments authorized under the Gold Star 
Home Energy Retrofit Program.
  (h) Return of Undisbursed Funds.--
          (1) Silver star home energy retrofit program.--If the 
        Secretary has not disbursed all the funds available for rebates 
        under the Silver Star Home Energy Retrofit Program by the date 
        that is 1 year after the date of enactment of this Act, any 
        undisbursed funds shall be made available to the Gold Star Home 
        Energy Retrofit Program.
          (2) Gold star home energy retrofit program.--If the Secretary 
        has not disbursed all the funds available for rebates under the 
        Gold Star Home Energy Retrofit Program by the date that is 2 
        years after the date of enactment of this Act, any undisbursed 
        funds shall be returned to the Treasury.
  (i) Sunset.--With the exception of the provisions of section 
102(c)(5), (6), and (7), sections 107, 110, and 111, this subsection, 
and the relevant definitions in section 2 to those provisions, this 
title shall cease to be effective after December 31, 2012. Nothing in 
this subsection shall prevent a State from continuing to implement a 
quality assurance framework established pursuant to section 105.

             TITLE II--ENERGY EFFICIENT MANUFACTURED HOMES

SEC. 201. ENERGY EFFICIENT MANUFACTURED HOMES.

  (a) Definitions.--In this section:
          (1) Manufactured home.--The term ``manufactured home'' has 
        the meaning given such term in section 603 of the National 
        Manufactured Housing Construction and Safety Standards Act of 
        1974 (42 U.S.C. 5402).
          (2) Energy star qualified manufactured home.--The term 
        ``Energy Star qualified manufactured home'' means a 
        manufactured home that has been designed, produced, and 
        installed in accordance with Energy Star's guidelines by an 
        Energy Star certified plant.
  (b) Purpose.--The purpose of this section is to assist low-income 
households residing in manufactured homes constructed prior to 1976 to 
save energy and energy expenditures by providing funding for the 
purchase of new Energy Star qualified manufactured homes.
  (c) Grants to State Agencies.--
          (1) Grants.--The Secretary may make grants to State agencies 
        responsible for developing State energy conservation plans 
        under section 362 of the Energy Policy and Conservation Act (42 
        U.S.C. 6322) (or such other existing State agency that 
        exercises similar functions as the Governor of a State may 
        designate), to provide owners of manufactured homes constructed 
        prior to 1976 funding to use to purchase new Energy Star 
        qualified manufactured homes.
          (2) Allocation of grants.--Grants under paragraph (1) shall 
        be distributed to State agencies in States on the basis of 
        their proportionate share of all manufactured homes constructed 
        prior to 1976 that are occupied as primary residences in the 
        United States, based on the most recent and accurate data 
        available.
          (3) Funding.--
                  (A) Primary residence requirement.--Funding described 
                under paragraph (1) may only be made to an owner of a 
                manufactured home constructed prior to 1976 that has 
                been used by the owner as a primary residence on a 
                year-round basis for at least the previous 12 months.
                  (B) Destruction and replacement.--Funding described 
                under paragraph (1) may be provided only if the 
                manufactured home constructed prior to 1976 will be--
                          (i) destroyed (including appropriate 
                        recycling); and
                          (ii) replaced, in an appropriate area, as 
                        determined by the applicable State agency, with 
                        an Energy Star qualified manufactured home.
                  (C) Limitation.--Funding described under paragraph 
                (1) may not be provided to any owner of a manufactured 
                home constructed prior to 1976 that was or is a member 
                of a household for which any member of the household 
                was provided funding pursuant to this section.
                  (D) Eligible households.--To be eligible to receive 
                funding described under paragraph (1), an owner of a 
                manufactured home constructed prior to 1976 shall 
                demonstrate to the applicable State agency that the 
                total income of all members the owner's household does 
                not exceed 80 percent of the area median income in the 
                applicable area, as determined by the Secretary.
                  (E) Leases.--To be eligible to receive funding 
                described under paragraph (1), an owner of a 
                manufactured home constructed prior to 1976 who intends 
                to place the new Energy Star qualified manufactured 
                home on property leased from another person shall hold 
                a lease to such property of at least 3 years in 
                duration.
          (4) Funding amount.--Funding provided by State agencies under 
        this subsection shall not exceed $7,500 per manufactured home 
        from any funds appropriated pursuant to this section.
          (5) Use of state funds.--A State agency providing funding 
        under this section may supplement the amount of such funding 
        under paragraph (4) by any amount such agency approves if such 
        additional amount is from State funds and other sources, 
        including private donations and grants or loans from charitable 
        foundations.
          (6) Similar programs.--
                  (A) State programs.--A State agency conducting a 
                program that has the purpose of replacing manufactured 
                homes constructed prior to 1976 with Energy Star 
                qualified manufactured homes may use funds provided 
                under this section to support such a program, provided 
                such funding does not exceed the funding limitation 
                amount under paragraph (4).
                  (B) Federal programs.--The Secretary shall seek to 
                achieve the purpose of this section through similar 
                Federal programs including--
                          (i) the Weatherization Assistance Program 
                        under part A of title IV of the Energy 
                        Conservation and Production Act (42 U.S.C. 6861 
                        et seq.); and
                          (ii) the program under part D of title III of 
                        the Energy Policy and Conservation Act (42 
                        U.S.C. 6321 et seq.).
          (7) Administration.--
                  (A) Controls and procedures.--Each State agency 
                receiving funds under this section shall establish 
                fiscal controls and accounting procedures sufficient, 
                as determined by the Secretary, to ensure proper 
                accounting for disbursements made from such funds and 
                fund balances. Such procedures shall conform to 
                generally accepted Government accounting principles.
                  (B) Coordination with other state agencies.--A State 
                agency receiving funds under this section may 
                coordinate its efforts, and share funds for 
                administration, with other State agencies or nonprofit 
                organizations involved in low-income housing programs.
                  (C) Administrative expenses.--A State agency 
                receiving funds under this section may expend not more 
                than 10 percent of such funds for administrative 
                expenses.
  (d) Decommissioning.--A person receiving funding under subsection (c) 
may also be provided not to exceed $2,500 for the decommissioning of 
the manufactured home being replaced.
  (e) Authorization of Appropriations.--
          (1) In general.--There are authorized to be appropriated to 
        the Secretary to carry out this section $200,000,000 for fiscal 
        year 2010 and $400,000,000 for fiscal year 2011, to remain 
        available until expended.
          (2) Administrative expenses.--Of the amounts available each 
        fiscal year to carry out this section, the Secretary may expend 
        not more than 5 percent to pay administrative expenses.

                          PURPOSE AND SUMMARY

    H.R. 5019, the ``Home Start Energy Retrofit Act of 2010'', 
was introduced by Rep. Peter Welch on April 14, 2010. H.R. 5019 
is intended to improve the energy efficiency of American homes, 
to increase employment in the home construction and renovation 
industries, to promote domestic manufacture of energy efficient 
products and materials, to foster private enterprise in energy 
efficiency retrofit services and quality assurance, and to 
assist homeowners requiring assistance with energy efficiency 
financing.

                  BACKGROUND AND NEED FOR LEGISLATION

    The Home Star Energy Retrofit Act of 2010 creates a 
multipart program to reduce energy consumption in American 
homes, increase employment in the home construction and 
services sector, and stimulate demand for U.S.-made products 
and services that improve residential energy efficiency. 
Supported by a broad coalition of homebuilders, manufacturers, 
energy efficiency specialists and contractors, community and 
environmental organizations, and others, the Home Star 
legislative concept combines the long-term merits of home 
energy efficiency retrofit investments with the short-term need 
to stimulate job creation in some of the economic sectors 
hardest hit by the current recession. President Obama has 
identified Home Star as a key element of his economic recovery 
and green jobs agendas.
    Almost all of the 130 million homes in the United States 
can be retrofitted with energy efficient equipment and 
materials to achieve energy savings. Half of the single-family 
homes in the United States were constructed before there were 
modern building codes,\1\ and the most recent model codes for 
energy efficient construction would require significant 
improvements even as compared to homes built during the 
building boom of the early years of this century. American 
homes account for about 33% of the nation's total electricity 
demand and approximately 22% of all energy use in the United 
States, contributing 21% of the country's greenhouse gas 
emissions.\2\ According to testimony received by the 
Subcommittee on Energy and Environment from Assistant Secretary 
of Energy Cathy Zoi, existing technologies and practices can 
reduce energy use by up to 40% per home and reduce associated 
greenhouse gas emissions by up to 160 million metric tons by 
2020.\3\
---------------------------------------------------------------------------
    \1\Testimony of Gov. John Engler, President and Chief Executive 
Officer of the National Association of Manufacturers, before the 
Subcommittee on Energy and Environment, Committee on Energy and 
Commerce (Mar. 18, 2010) (citing Joint Center for House Studies of 
Harvard University, The Remodeling Market in Transition).
    \2\Testimony of Cathy Zoi, Assistant Secretary for Energy 
Efficiency and Renewable Energy, U.S. Department of Energy, before the 
Subcommittee on Energy and Environment, Committee on Energy and 
Commerce (Mar. 18, 2010).
    \3\Id.
---------------------------------------------------------------------------
    The recession has had a significant impact on the home 
construction and services industry, which is currently 
experiencing unemployment rates of 27%.\4\ It has also affected 
homeowners, who have been reluctant or unable to make the up-
front capital investments required to retrofit their homes.
---------------------------------------------------------------------------
    \4\Id. (quoting U.S. Bureau of Labor Statistics, Industries at a 
Glance: Construction: NAICS23 for March 5, 2010).
---------------------------------------------------------------------------
    Home energy retrofit work can provide significant 
employment opportunities for capable workers. Testimony before 
the Subcommittee from Larry Lasseter, the President of 
Wellhome, on behalf of the Home Star Coalition, indicated that 
2.1 million construction jobs have been lost since 2006, and an 
additional 186,000 jobs have been lost in construction-related 
retail sales.\5\ The companies that produce, install, and 
maintain heating, ventilation, and air conditioning equipment 
have 2 million workers, many of whom are underemployed if not 
unemployed. Thirty percent of insulation installers are out of 
work.\6\
---------------------------------------------------------------------------
    \5\Id.
    \6\Id.
---------------------------------------------------------------------------
    Manufacturing plants that produce construction-related 
products are operating at 50% of capacity. Testimony before the 
Subcommittee from Michael Thaman, Chairman and Chief Executive 
Officer of Owens Corning, indicated that his company's 55 
American insulation plants were operating at half of their peak 
capacity and employing 25% fewer workers than in 2006.\7\ Small 
companies manage the largest part of home-energy retrofit work, 
including about 7,000 American companies that make and install 
windows, and 22,000 companies that install insulation.\8\
---------------------------------------------------------------------------
    \7\Testimony of Michael Thaman, Chairman and Chief Executive 
Officer of Owens Corning, before the Subcommittee on Energy and 
Environment, Committee on Energy and Commerce (Mar. 18, 2010).
    \8\Testimony of Larry Lasseter, President of Wellhome, on behalf of 
the Home Star Coalition, before the Subcommittee on Energy and 
Environment, Committee on Energy and Commerce (Mar. 18, 2010).
---------------------------------------------------------------------------
    The Home Star program is designed to facilitate homeowner 
investment and prompt a surge in interest in home retrofitting 
and its benefits, with a goal of creating longer-term awareness 
of the benefits of energy efficiency retrofits that can outlive 
the two-year program. In addition, Home Star would promote 
increases in employment in the home retrofitting industry and 
in the manufacture of energy efficient products. It is 
estimated that more than 92% of the energy efficient products 
and materials for which the Home Star program will stimulate 
sales are manufactured in the United States.\9\
---------------------------------------------------------------------------
    \9\Id.
---------------------------------------------------------------------------
    There are two primary components to the Home Star program. 
First, there is the two-year Home Star Retrofit rebate program 
which is the primary focus of the legislation. There is also 
the Home Star energy efficiency loan program which stands up a 
financing mechanism to encourage energy efficiency home 
retrofits after the completion of the rebate program.
    Together, the Home Star program is projected to help more 
than 3 million American families to complete retrofit projects, 
with projected energy savings over 10 years in excess of $9 
billion.\10\
---------------------------------------------------------------------------
    \10\Testimony of Larry Lasseter, supra note 8.
---------------------------------------------------------------------------
    The Home Star retrofit rebate program provides for two 
tracks for home retrofit projects: the Silver Star program and 
the Gold Star program. Home retrofit projects have 
traditionally been hindered by consumer uncertainty about what 
measures are cost effective and certain to produce savings when 
installed. The Silver Star program addresses this problem by 
describing a menu of specific energy-saving technologies that 
are known to be widely available on the national market and 
highly cost-effective when installed as prescribed by their 
manufacturers. Under the bill, specific rebates are available 
for the installation of such measures, reflecting 50% of their 
cost to the homeowner, up to a maximum of $3,000, for a total 
retrofit representing an investment of $6,000 or more.
    Another impediment to home retrofitting has been the lack 
of public awareness of the benefits of whole-house energy 
analysis techniques. This approach to retrofitting involves 
determining the most cost-effective set of combined measures to 
improve a building's overall efficiency. The Gold Star program 
promotes the use of this approach by offering rebates for 
whole-home retrofit projects that use whole-house analysis 
tools designated by the Secretary to achieve an energy 
efficiency improvement of 20% or more, with a $3,000 initial 
rebate for combined measures that reach a 20% overall level of 
improvement, and an additional $1,000 rebate available for each 
additional 5% overall improvement, to a maximum of $8,000. A 
rebate under the Gold Star program cannot represent more than 
50% of the total cost of the retrofit project.
    The Home Star retrofit rebate program reflects that policy 
that home energy efficiency retrofit practice should evolve 
toward the whole-house analysis model as opposed to the less 
effective measure-by-measure approach. Rebate levels available 
for the Gold Star program are higher than the Silver Star 
program. Additionally, the Silver Star program expires one year 
after enactment, while the Gold Star program continues for the 
second year. Two-thirds of the intended federal funding, 
however, is directed for the Silver Star rebates in the first 
year, with the expectation that consumers will be quick to take 
advantage of such savings on such items.
    The Home Star bill includes a number of provisions designed 
to address the administrative challenge of processing rebates 
for thousands of contractors performing retrofits in millions 
of homes. Home Star will operate through a central data base 
and rebate processing center to which all rebate claims will be 
submitted. A percentage of these claims will be selected for 
quality assurance. In addition, the bill provides for tight but 
realistic timeframes for processing rebates applications and 
distributing federal resources to qualified contractors, with 
the goal of making contractors whole for the discounts they 
must offer within 30 days of rebate applications.
    The legislation also includes a number of provisions 
designed to ensure quality and cost effectiveness in the Home 
Star program. The bill includes incentives for contractors to 
become accredited by the Building Performance Institute or 
other programs recognized by the Secretary of Energy in order 
to participate in Gold Star whole-home retrofit projects. The 
bill also provides incentives for encouraging contractors to 
employ workers trained and certified to perform retrofit work 
and installation. In addition, because of the significant 
unemployment and need for marketable skills in relatively low-
income areas, the legislation encourages training and hiring 
efforts in such areas.
    The bill offers to states funding to create quality 
assurance programs to assign and supervise spot checks 
confirming that appropriate products are used in retrofits 
designed for optimum savings of energy. Under the bill, the 
Secretary of Energy will pay quality assurance providers to 
inspect a percentage of finished projects and confirm that 
Silver Star and Gold Star rebates have been paid appropriately. 
Those states that elect to create quality assurance programs to 
support Home Star will also develop quality assurance 
frameworks to recognize the accredited contractors that are 
using certified workforces with appropriate training and proven 
skills.
    The legislation also responds to the need for flexible 
financing support for home energy retrofit activities at a time 
when consumer credit terms are very tight and banks are 
constrained in consumer lending. The Home Star energy 
efficiency loan program provides (1) seed funding to states 
that they can use to provide loans at lower interest rates; (2) 
revolving-fund loans; and (3) loans that are tied to the 
property through tax payment or utility-bill recovery such that 
any homeowner can pass the obligation along with the property 
to a new owner.

                          LEGISLATIVE HISTORY

    H.R. 5019 was introduced on April 14, 2010, by Rep. Welch, 
along with Reps. Henry A. Waxman (D-CA), Edward J. Markey (D-
MA), Dennis A. Cardozo (D-CA), and Vernon J. Ehlers (R-MI). 
Prior to the bill's introduction, on March 18, 2010, the 
Subcommittee on Energy and Environment of the Committee held a 
hearing on proposed legislation to provide for the 
establishment of a Home Star Retrofit Rebate program. On March 
24, 2010, the Subcommittee considered in markup a Committee 
print of the proposed legislation and approved an amended 
version for full Committee. The text of the bill as introduced 
on April 14, 2010, was identical to the text of the Committee 
Print approved by the Subcommittee on March 24, 2010.

                        COMMITTEE CONSIDERATION

    The Subcommittee on Energy and Environment met in open 
markup session on March 18, 2010, to consider a Committee Print 
dated March 14, 2010, on H.R. __, a bill to provide for the 
establishment of a Home Star Retrofit Rebate Program, and for 
other purposes. Subsequently, the Subcommittee approved the 
text of the Committee Print, amended, to be forwarded to the 
full Committee. H.R. 5019 was introduced on April 14, 2010, 
with the identical language of the Committee Print as approved 
by the Subcommittee, and was referred to the Committee on 
Energy and Commerce.
    The full Committee met in open markup session on April 15, 
2010, to consider H.R. 5019. A manager's amendment by Mr. 
Waxman was adopted, along with four other amendments. 
Subsequently, the Committee ordered H.R. 5019 favorably 
reported to the House, amended, by a roll call vote of 30 yeas 
and 17 nays.

                            COMMITTEE VOTES

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee to list the record votes 
on the motion to report legislation and amendments thereto. The 
Committee agreed to a motion by Mr. Waxman to order H.R. 5019 
favorably reported to the House, amended, by a record vote of 
30 yeas and 17 nays. The following is the recorded votes taken 
during Committee consideration, including the names of those 
Members voting for and against:
<GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT>

            COMMITTEE OVERSIGHT FINDINGS AND RECOMMENDATIONS

    In compliance with clause 3(c)(1) of rule XIII of the Rules 
of the House of Representatives, the findings and 
recommendations of the Committee are reflected in the 
descriptive portions of this report.

   NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY, AND TAX EXPENDITURES

    Pursuant to clause 3(c)(2) of rule XIII of the Rules of the 
House of Representatives, the Committee finds that H.R. 5019 
would result in no new budget authority, entitlement authority, 
or tax expenditures or revenues.

         STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES

    In accordance with clause 3(c)(4) of rule XIII of the Rules 
of the House of Representatives, the Committee's performance 
goals and objectives are reflected in the descriptive portions 
of this report.

                   CONSTITUTIONAL AUTHORITY STATEMENT

    Pursuant to clause 3(d)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee finds that the 
constitutional authority for H.R. 5019 is provided in Article 
I, section 8, clause 3, which grants Congress the power to 
regulate commerce with foreign nations, among the several 
states, and with the Indian Tribes, in the provisions of 
Article I, section 8, clause 1, that relate to expending funds 
to provide for the general welfare of the United States, and in 
the provisions of Article I, section 8, clause 18, which grants 
Congress the power to make all laws necessary and proper to 
carry into execution the powers enumerated in section 8 and all 
other powers vested by the Constitution in the government of 
the United States.

                  EARMARKS AND TAX AND TARIFF BENEFITS

    H.R. 5019 does not contain any congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined in 
clause 9 of rule XXI of the Rules of the House of 
Representatives.

                      ADVISORY COMMITTEE STATEMENT

    No advisory committees were created by H.R. 5019 within the 
meaning of section 5 U.S.C. App., 5(b) of the Federal Advisory 
Committee Act.

             APPLICABILITY OF LAW TO THE LEGISLATIVE BRANCH

    The Committee finds that H.R. 5019 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 of 1985.

                       FEDERAL MANDATES STATEMENT

    The Committee adopts as its own the estimates of federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandate Reform 
Act.

                        COMMITTEE COST ESTIMATE

    Pursuant to clause 3(d) of rule XIII of the Rules of the 
House of Representatives, the Committee adopts as its own the 
cost estimate on H.R. 5019 prepared by the Director of the 
Congressional Budget Office pursuant to section 402 of the 
Congressional Budget Act.

                  CONGRESSIONAL BUDGET OFFICE ESTIMATE

    Pursuant to clause 3(c)(3) of rule XIII of the Rules of the 
House of Representatives, the following is the cost estimate on 
H.R. 5019 provided by the Congressional Budget Office pursuant 
to section 402 of the Congressional Budget Act of 1974:
                                                    April 29, 2010.
Hon. Henry A. Waxman,
Chairman, Committee on Energy and Commerce,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 5019, the Home 
Star Energy Retrofit Act of 2010.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Megan 
Carroll.
            Sincerely,
                                              Douglas W. Elmendorf.
    Enclosure.

H.R. 5019--Home Star Energy Retrofit Act of 2010

    Summary: H.R. 5019 would authorize appropriations totaling 
$6.6 billion for programs to increase the energy efficiency of 
residential properties. Assuming appropriation of the 
authorized amounts, CBO estimates that implementing the bill 
would cost $6.6 billion over the 2010-2015 period. Enacting the 
bill would not affect direct spending or revenues; therefore, 
pay-as-you-go procedures would not apply.
    H.R. 5019 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA). 
Any costs to state, local, or tribal governments would result 
from complying with conditions of assistance.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of H.R. 5019 is shown in the following table. 
The costs of this legislation fall within budget on 270 
(energy).

----------------------------------------------------------------------------------------------------------------
                                                             By fiscal year in millions of dollars--
                                               -----------------------------------------------------------------
                                                  2010     2011     2012     2013     2014     2015    2010-2015
----------------------------------------------------------------------------------------------------------------
                                  CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Authorization Level...........................    6,200      400        0        0        0        0       6,600
Estimated Outlays.............................      350    2,000    2,340    1,170      620      120       6,600
----------------------------------------------------------------------------------------------------------------

    Basis of estimate: Title I of H.R. 5019 would authorize 
appropriations totaling $6 billion over the 2010-2011 period 
for activities to increase the energy efficiency of residential 
properties. CBO estimates that the bulk of that amount--roughly 
$5 billion--would be used to provide rebates to defray costs of 
retrofitting homes to be more energy efficient. The bill 
specifies certain energy-saving technologies that would qualify 
for rebates of up to $8,000 per residence depending on the type 
of technology involved and the total project cost. (Under the 
bill, rebates would initially be paid to contractors who 
install qualified energy-efficiency measures; the bill would 
require those contractors to pass the rebate value on to the 
customer.) The remaining $1 billion authorized under title I 
would be used to provide grants to state and local governments 
and other entities for activities to support the proposed 
rebate program. A portion of that amount would be used by grant 
recipients to provide loans to residential property owners to 
cover the costs of energy retrofits.
    Title II of the bill would authorize the appropriation of 
$200 million in 2010 and $400 million in 2011 for grants to 
help states develop and implement plans to replace certain 
mobile homes with newer, more energy-efficient models. Under 
the bill, owners of such homes would receive financial 
assistance of up to $10,000 to cover the cost of acquiring new 
mobile homes and decommissioning those being replaced.
    In total, CBO estimates that fully funding H.R. 5019 would 
cost $350 million in 2010 and $6.6 billion over the 2010-2015 
period, assuming appropriation of the authorized amounts. That 
estimate is based on historical spending patterns for similar 
activities, including rebate programs administered by the 
Department of Energy and the Environmental Protection Agency.
    Pay-as-you-go considerations: None.
    Intergovernmental and private-sector impact: H.R. 5019 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would impose no costs on state, local, or 
tribal governments. The bill would authorize grants to states 
to provide loans to individuals for retrofitting housing to be 
more energy efficient and funding to owners of manufactured 
homes seeking to upgrade to a manufactured home that qualifies 
as an Energy Star home. Any costs to state, local, or tribal 
governments would result from complying with conditions of 
assistance.
    Estimate prepared by: Federal Costs: Megan Carroll; Impact 
on State, Local, and Tribal Governments: Ryan Miller; Impact on 
the Private Sector: Amy Petz.
    Estimate approved by: Theresa Gullo, Deputy Assistant 
Director for Budget Analysis.

             SECTION-BY-SECTION ANALYSIS OF THE LEGISLATION

Section 1. Short title

    This section designates the short title of the bill as the 
``Home Star Energy Retrofit Act of 2010''.

Section 2. Definitions

    This section defines, among other terms: accredited 
contractor, certified workforce, federal rebate processing 
system, Gold Star Home Energy Retrofit Program, qualified 
contractor, quality assurance program, quality assurance 
provider, Silver Star Home Energy Retrofit Program, targeted 
worker, and rebate aggregator.

               TITLE I--HOME STAR RETROFIT REBATE PRORAM


Section 101. Home Star Retrofit Program

    Within 30 days of enactment, the Department of Energy 
(DOE), the Environmental Protection Agency (EPA), and the 
Department of the Treasury shall create a processing center to 
receive claims from rebate aggregators, establish a website 
explaining what is eligible for a rebate and how to 
participate, and develop model forms and data protocols.
    Qualified contractors must sign a participation agreement 
with a rebate aggregator affirming compliance with state 
licensing requirements, affirming the ability to provide 
warranties, and agreeing to pass the rebate value to the 
customer. DOE can set additional requirements.
    DOE is to provide administrative and technical support to 
rebate aggregators and states. States can partner with 
utilities, energy service companies, and others to help market 
Home Star, assist with consumer financing, and implement 
installation and quality assurance for the Gold and Silver Star 
programs. States may elect to undertake quality assurance 
programs to ensure proper performance of Home Star retrofits, 
and will be entitled to funding for that purpose as well as to 
develop longer-term quality assurance frameworks.
    The Secretary of Energy is authorized to use expedited 
procedures for hiring personnel and consultants, entering 
contracts, and adopting rulemaking authority to conduct the 
program. The Secretary may not use the expedited rulemaking 
authority under Home Star to develop a public labeling system 
or require public disclosure of the energy performance of a 
home assessed through Home Star retrofits.
    Rebates cannot be given under both the Gold Star and Silver 
Star programs for the same home. States are encouraged to 
coordinate existing programs with Home Star and may use Home 
Star resources within such programs to the extent they are 
compatible with Home Star objectives.

Section. 102. Rebate aggregators

    The Secretary must identify one rebate aggregator in each 
state within 30 days of enactment, and develop a network of 
rebate aggregators sufficient to process all rebates in the 
requisite period of time. Rebate aggregators review rebate 
applications and contractor qualifications, bundle the 
qualifying rebate applications, and send them to the federal 
rebate processing system (FRPS), and reimburse the contractor/
vendor within 30 days of receiving the rebate form from the 
contractor/vendor. They must also assign quality assurance 
providers to check randomly selected projects for completion 
and correctness.
    A rebate aggregator must submit a rebate application to the 
FRPS within 10 days of receipt. Within the following 10 days, 
the FRPS shall provide funds to the rebate aggregator. Within 
10 days of receiving funds, the rebate aggregator shall pay the 
rebate applicant.
    A rebate aggregator can be a Home Performance with Energy 
Star Provider, another state residential energy efficiency 
retrofit program, a utility, local government, or a private 
entity that demonstrates its financial and technical ability by 
demonstrating several listed capabilities.
    Public utilities can serve as rebate aggregators and count 
the energy savings from their participation in Home Star toward 
state-level energy savings targets.

Section 103. Silver Star

    During the first year from date of enactment, Silver Star 
rebates shall be awarded to contractors and vendors installing 
approved items from the list of specified energy efficiency 
measures meeting the Silver Star standards. The rebate 
reimburses contractors or vendors for providing a discount 
equal to the rebate's full value to homeowners.
    Rebates apply to the cost of purchase, assembly and 
installation of insulation, windows, window film, sealants, 
doors, heating and cooling replacement systems, and water 
heaters that meet minimum energy efficiency requirements.
    Rebate amounts: attic insulation, wall insulation and air 
sealing rebates are capped at $1,500 per measure. A $1,000 
rebate is available for applicable windows and heating and 
cooling systems. Lower rebate amounts ($50-$500) are available 
for doors, storm windows, window film, and lower efficiency 
water heaters. The maximum total rebate amount pursuant to the 
Silver Star program is the lower of $3,000 or 50% of the total 
cost of installed measures.
    Fraud prevention: 20% of the retrofits in Silver Star shall 
be randomly subject to field inspections by independent quality 
assurance providers. If the qualified contractor uses a 
certified workforce, 10% of retrofits are subject to random 
verification. DOE can raise or lower the percentage of verified 
retrofits for an individual contractor based on past 
performance.
    A ``do-it-yourself'' provision allows people to receive 
Silver Star rebates for the purchase of air sealing and certain 
attic, wall, and crawl space insulation products as long as the 
customer installs the items in his or her own home. The rebate 
amount is the lower of 50% of the purchase price of the 
qualified items or $250, and is intended to be provided 
directly at the point of sale.

Section 104. Gold Star

    Gold Star offers rebates for actions taken by accredited 
contractors to make energy retrofits that render an entire home 
at least 20% more energy efficient than it was before the 
retrofit was conducted. There are no product limitations in 
Gold Star. Homeowners cannot receive rebates under both Gold 
Star and Silver Star. For Gold Star, an energy audit or 
analysis of the home must be performed, using approved 
programs, before and after the energy efficiency retrofit.
    Homeowner rebates are $3,000 for a 20% reduction in whole 
home energy consumption and an additional $1,000 for each 
additional 5% reduction up to the lower of $8,000 or 50% of 
total retrofit cost.
    Fraud prevention: 15% of the retrofits in Gold Star are 
subject to field inspections. If the accredited contractor uses 
a certified workforce the verification rate decreases to 10%. 
If the post-retrofit energy audit is completed in accordance 
with certain standards, no field inspection will be required.

Section 105. Quality assurance

    States that participate in the quality assurance program 
must develop a quality assurance framework. This framework 
lists qualified and accredited contractors, contractor 
standards, and a rebate delivery and processing program. It 
also includes targets and plans to recruit minority businesses, 
women-owned businesses, and workforce training graduates.
    States form quality assurance programs to oversee quality 
assurance providers conducting field inspections. The program 
can be run by the state or through another approved entity.

Section 106. Report

    One year after enactment, DOE shall submit a report to 
Congress providing an update on the program and describing the 
energy savings and employment generated through Home Star.

Section 107. Rebates

    Rebates are not taxable income to homeowners, as they are 
offered in the form of discounts, and substitute for any tax 
credit allowed under 25C of IRS Code for eligible work. 
Contractors shall provide notice of this provision to 
homeowners before eligible work is performed.

Section 108. Heating and cooling efficiency study

    One year after the date of enactment, DOE shall submit a 
study describing the lifecycle efficiency of air conditioning 
and heat pump products.

Section 109. Public information campaign

    Sixty days after enactment, DOE, states, and EPA must 
develop an education campaign that describes the benefits of 
Home Star retrofits and the availability of rebates under Gold 
Star and Silver Star programs.

Section 110. Penalties

    DOE may assess civil penalties of an amount not greater 
than $15,000 for each violation or 3 times the value of any 
associated rebate.

Section 111. Home Star Energy Efficiency Loan Program

    States can establish or support loan programs for 
homeowners to carry out Silver or Gold Star projects. Seventy-
five percent of the funds designated for states are allocated 
using the formula for State energy conservation plans under the 
Energy Policy and Conservation Act. The remaining 25% may be 
allocated based on a state's progress in meeting program 
objectives including providing loans to low-income areas.
    The Home Star efficiency loan program must be conducted 
through a qualified financing entity that meets strict 
eligibility requirements and is designated by a state's 
governor. These requirements include making the program 
available to low-income communities.
    States can use Home Star efficiency loan funds to reduce 
interest rates, enhance credit, and for revolving loan funds or 
other debt instruments to leverage private funds for efficiency 
programs. States can also offer repayment of Home Star 
efficiency loans though repayment systems attached to utility 
bills, tax assessments, and municipal service charges.

Section 112. Funding

    This section authorizes not more than $6 billion for FY2010 
and FY2011, to remain available until expended.
    States receive 9% of the total appropriation as grants for 
quality assurance frameworks and programs, administrative 
costs, delivery of finance mechanisms, and coordination with 
existing programs. Not less than 60% of these funds can be used 
for the loan program.
    DOE distributes 25% of state grants to State energy offices 
within 30 days to implement the Silver Star program. Allocation 
to states is based on the formula for State energy conservation 
plans under the Energy Policy and Conservation Act. The 
remaining 75% may be allocated to best support successful 
programs to increase energy efficiency, increase employment, 
and implement quality assurance programs and frameworks.
    DOE may use a maximum of 5% of program funds to support 
quality assurance providers and rebate aggregators. Maximum 
payment amounts are established for processing of rebates and 
field inspections. DOE expenditures under Home Star to track 
rebates offer technical assistance and cover DOE's own 
administrative costs are limited to 2.5% of appropriated funds. 
Public education efforts through EPA are funded by an 
allocation of 0.2% of Home Star funds.
    The Silver Star program is authorized to receive two-thirds 
of the funds not used for state grants or such administrative 
costs. Gold Star receives the remaining third. When the Silver 
Star program ends one year after enactment, any undisbursed 
funds go to the Gold Star program. Once the Gold Star program 
ends, any undisbursed funds are returned to the Treasury.
    The Home Star program will sunset after December 31, 2012, 
with the exception of: rebate aggregator accounting and 
contractor qualification and performance records.

             TITLE II--ENERGY EFFICIENT MANUFACTURED HOMES


Section 201. Energy efficient manufactured homes

    Grants shall be given to states for a program that will 
offer a $7,500 rebate for homeowners to replace manufactured 
homes built before 1976, which are primary residences, with 
Energy Star-rated manufactured homes. Homes that are being 
replaced under this program must be destroyed and appropriately 
recycled.
    Eligible program participants must have a household income 
of no more than 80% of the area median income as determined by 
DOE.
    Grants shall be provided on the basis of their 
proportionate share of all manufactured homes constructed 
before 1976 that are primary homes.
    Funding for this title is authorized at $200 million for 
FY2010 and $400 million for FY2011. This funding is to be 
available until expended. No more than 5% of this funding, per 
year, shall be available to DOE for administrative expenses.

                             MINORITY VIEWS

    We, the undersigned Members of the Committee on Energy and 
Commerce, oppose the passage of H.R. 5019 and submit the 
following comments to express our concerns with this 
legislation.
    H.R. 5019, the Home Star Energy Retrofit Act of 2010, would 
create a Silver Star and a Gold Star Home Energy Retrofit 
Program, both of which would provide rebates to eligible 
contractors for energy efficiency upgrades of residential 
dwellings. The legislation also creates a do-it-yourself 
category of rebate within the Silver Star program. It also 
creates a Home Star Energy Efficiency Loan Program.
    Legislation that promotes energy efficiency is strongly 
supported by Republican Members of the Committee; however, 
there are a number of significant issues with this legislation, 
including the total cost of the legislation, questions about 
the U.S. Department of Energy's (DOE's) ability to effectively 
implement this program, and the fact that this legislation 
picks technology winners and losers.
    The legislation authorizes a $6 billion appropriation for 
Title I, the Home Star Retrofit Rebate Program, and an 
additional $600 million appropriation for Title II, the Energy 
Efficient Manufactured Homes section, which was added as an 
amendment offered by Rep. Hill at the April 15, 2010, Energy 
and Commerce Committee markup. At a time when there is a 
national deficit crisis, it is not appropriate to add $6.6 
billion in spending to the deficit, and therefore Rep. Latta 
offered an amendment that would have prevented enactment of 
H.R. 5019 if there was an impact on deficit neutrality. In 
exchange for Rep. Latta withdrawing his amendment, Chairman 
Waxman promised that a ``payfor'' would be identified before 
this legislation is brought to the House Floor. It is our 
sincere hope that this promise is kept.
    There are also significant concerns regarding DOE's ability 
to implement this program under the tight deadlines required 
under this legislation. DOE's Inspector General recently issued 
a report concluding that, as of February 2010, of the $4.7 
billion DOE has awarded in grants to States under the American 
Recovery and Reinvestment Act of 2009 (the Recovery Act) 
weatherization program, only $368 million had been used by 
States for weatherization purposes and only 30,297 units have 
actually been weatherized. Of the ten States receiving the most 
money under the $5 billion allocated for the weatherization 
program under the Recovery Act, only two had weatherized more 
than 2% of the homes covered by the program; the eight other 
States weatherized fewer than 400 homes each. Because the $4.7 
billion weatherization program has been a complete failure from 
an implementation perspective, we have concerns that a $6.6 
billion Home Star Energy Retrofit Program could suffer similar 
implementation failures.
    This legislation is not technology neutral; it picks 
winners and losers. It is not the role of the Federal 
Government to pick winners and losers in the private sector. 
The Silver Star Home Energy Retrofit Program lists 13 energy 
savings measures that qualify for rebates of varying dollar 
amounts. There are many energy efficient products that were 
left off of this list or that will not qualify because the 
technical requirements are too onerous. Republican Members did 
offer amendments that sought to expand the list of winners. 
During the March 24, 2010, Energy and Environment Subcommittee 
markup, Rep. Shadegg and Rep. Shimkus each offered amendments 
that were accepted, so that the list of qualifying measures was 
expanded to include electric tankless water heaters and 
geothermal heat pumps.
                                   Joe Barton, Ranking Member, 
                                       Committee on Energy and 
                                       Commerce.
                                   Fred Upton, Ranking Member, 
                                       Subcommittee on Energy and 
                                       Environment.
                                   Ralph M. Hall.
                                   Cliff Stearns.
                                   Roy Blunt.
                                   Steve Buyer.
                                   George Radanovich.
                                   Sue Wilkins Myrick.
                                   Joseph R. Pitts.
                                   John Sullivan.
                                   Michael C. Burgess.
                                   Phil Gingrey.
                                   Steve Scalise.
                                   Robert E. Latta.
                                   Parker Griffith.