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                                                 Calendar No. 185

116th Congress}                                          { Report
                                 SENATE
 1st Session  }                                          { 116-82

======================================================================
 
 WEATHERIZATION ENHANCEMENT AND LOCAL ENERGY EFFICIECNY INVESTMENT AND 
                       ACCOUNTABILITY ACT OF 2019

                                _______
                                

               September 10, 2019.--Ordered to be printed

                                _______
                                

  Ms. Murkowski, from the Committee on Energy and Natural Resources, 
                        submitted the following

                              R E P O R T

                         [To accompany S. 983]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Energy and Natural Resources, to which was 
referred the bill (S. 983) to amend the Energy Conservation and 
Production Act to reauthorize the weatherization assistance 
program, and for other purposes, having considered the same, 
reports favorably thereon without amendment and recommends that 
the bill do pass.

                                Purpose

    The purpose of S. 983 is to amend the Energy Conservation 
and Production Act (ECPA, Public Law 94-385) to reauthorize the 
weatherization assistance program.

                          Background and Need

    For more than 40 years, the Department of Energy's (DOE) 
Weatherization Assistance Program (WAP) has supported the 
Federal Government's energy efficiency efforts by assisting 
low-income families that lack the resources to make their homes 
more energy efficient. The program funds weatherization 
projects in all 50 states, the District of Columbia, the five 
U.S. territories, and for tribal governments. WAP provides 
energy efficiency upgrades to 35,000 homes across the country 
annually while supporting 8,500 jobs.
    The goal of the program is to reduce energy costs for low-
income families--particularly for the elderly, people with 
disabilities, and children--by improving the energy efficiency 
of their homes and enhancing their health and safety. An 
independent review by Oak Ridge National Laboratory found that 
for every dollar invested in the program, $4.50 is generated in 
combined energy savings and non-energy benefits such as local 
economic growth.
    With a network of nearly 800 local agencies providing 
services across the country, WAP employs more residential 
energy efficiency professionals than any other organization in 
the nation. Typical weatherization measures have included attic 
insulation, dense pack sidewall insulation, air sealing, 
heating system repairs and, when necessary, replacements, duct 
sealing and insulation, and baseload measures.
    The program has pioneered residential energy efficiency 
technologies and serves as a foundation for residential energy 
efficiency programs across the country. WAP is also a central 
leader in the development of the home performance industry-wide 
Guidelines for Home Energy Professionals--a suite of resources 
including work quality specifications, training program 
accreditation, job task analyses, and worker certifications.
    While the WAP has consistently been funded by Congress 
without interruption, the program's last authorization was 
contained in the 2007 Energy Independence and Security Act 
(Public Law 110-140). That authorization expired in 2012.

                          Legislative History

    S. 983 was introduced by Senators Coons, Collins, Reed, and 
Shaheen on April 2, 2019. Senators Blumenthal, Heinrich, 
Manchin, and Murkowski were added as cosponsors. The 
Subcommittee on Energy held a hearing on the measure on July 9, 
2019.
    Companion legislation, H.R. 2041, was introduced in the 
House of Representatives by Representatives Tonko, Kaptur, and 
Rush on April 2, 2019, and referred to the Energy and Commerce 
Committee.
    In the 115th Congress, similar legislation was included as 
a provision in S. 1460, the Energy and Natural Resources Act of 
2017 (Cal. 162).
    In the 114th Congress, a similar bill, S. 703, was 
introduced by Senators Coons, Collins, Reed, and Shaheen on 
March 11, 2015 (S. Hrg. 114-166). The Committee on Energy and 
Natural Resources held a hearing on S. 703 on April 30, 2015. 
The measure was included as a provision in S. 2012, the Energy 
Policy Modernization Act of 2016, which the Senate passed, as 
amended, on April 20, 2016.
    Companion legislation, H.R. 3420, was introduced in the 
House of Representatives by Representatives Tonko, Carson, 
Castor, Connolly, Lowenthal, Nadler, Norton, Pierluisi, Rush, 
Slaughter, and Welch on July 29, 2015, and referred to the 
Energy and Commerce Committee.
    In the 113th Congress, a similar bill, S. 1213, was 
introduced by Senators Coons, Collins, and Reed on June 20, 
2013. The Committee on Energy and Natural Resources held a 
hearing on S. 1213 on June 25, 2013 (S. Hrg. 113-70).
    Similar legislation, H.R. 4345, was introduced in the House 
of Representatives by Representative Tonko on March 27, 2014, 
and referred to the Energy and Commerce Committee.
    The Senate Committee on Energy and Natural Resources met in 
open business session on July 16, 2019, and ordered S. 983 
favorably reported.

                        Committee Recommendation

    The Senate Committee on Energy and Natural Resources, in 
open business session on July 16, 2019, by a majority voice 
vote of a quorum present, recommends that the Senate pass S. 
983. Senator Lee asked to be recorded as voting no.

                      Section-by-Section Analysis


Section. 1. Short title

    Section 1 provides a short title for the bill.

Sec. 2. Weatherization assistance program

    Subsection (a) amends section 412(9)(J) of ECPA to clarify 
that renewable energy technologies are included in the 
definition of weatherization materials and to remove the now 
defunct Community Services Administration from the list of 
agencies DOE must consult with.
    Subsection (b) amends section 413(b) of ECPA to authorize 
DOE to take non-energy benefits such as health and safety 
improvements into account when determining appropriate 
standards and procedures for WAP.
    Subsection (c) amends section 414B(a)(4) of ECPA to make 
technical training grants available to private contractors that 
provide weatherization assistance as well as to persons 
involved in weatherizing low-income housing. It further amends 
ECPA by adding a new section 414C to authorize DOE to request 
that grantees review the use of private contractors and 
encourage increased and expanded use of contractors if 
appropriate.
    Subsection (d) amends ECPA by adding a new section 414D to 
create a financial assistance program within WAP for 
enhancement and innovation.
    The new section 414D(a) outlines the financial assistance 
program's purposes.
    The new section 414D(b) defines the term ``eligible 
entity.''
    The new section 414D(c) directs the Secretary of Energy 
(Secretary) to award financial assistance through a competitive 
process. It further outlines the purposes of the DOE-issued 
awards, including making dwelling units weatherization-ready; 
installing energy efficiency technologies and renewable energy 
systems; implementing healthy indoor measures such as improving 
indoor air quality and accessibility; improving the capacity of 
an eligible entity to increase energy retrofits, replicate best 
practices, and leverage additional funds for weatherization 
assistance; providing innovative outreach and education about 
weatherization assistance; controlling quality; collecting, 
measuring, and verifying data; providing labor and training; 
planning; and other appropriate activities.
    The new section 414D(d) requires eligible entities to 
submit applications in accordance with requirements established 
by the Secretary.
    The new section 414D(e) outlines the factors the Secretary 
must consider in making financial assistance awards, including 
the record of the eligible entity in providing relevant 
services (home construction, repair, renovation, 
weatherization, and energy efficiency upgrades) and in managing 
federal funds; the strength of the proposal to achieve the 
program's purposes; the proposed use of partnerships; regional 
and climate zone diversity; and urban, suburban and rural 
localities.
    The new section 414(D)(f) directs the Secretary to make the 
first financial assistance award within 270 days of enactment.
    The new section 414D(g) limits the maximum award under this 
section to $2 million and specifies that not more than 15 
percent can be used for planning, management, or 
administration. It further reduces the value of an award by the 
cost of any technical assistance DOE provides and restricts the 
term of a financial award to not more than three years.
    The new section 414(D)(h) requires DOE to issue 
implementation guidance within 90 days of enactment, including 
standards relating to allowable expenditures, training 
programs, energy audits, monitoring and verification, liability 
insurance, and recordkeeping and reporting.
    The new section 414D(i) clarifies that this section shall 
not supersede or modify any state or local law with more 
stringent requirements.
    The new section 414D(j) directs the Secretary to review and 
evaluate the performance of each eligible entity that receive 
awards under this section.
    The new section 414D(k) requires the Secretary to submit an 
annual report to Congress describing awards made under this 
section, activities of eligible entities funded by those 
awards, and energy and cost savings achieved.
    The new section 414D(l) states that the amount of funding 
available to carry out this section shall be a percentage of 
the overall funding made available for WAP, but in no case 
shall exceed $25 million per year.
    Subsection (e) amends section 415(a)(1) of ECPA by 
increasing the amount of a WAP grant that can be used for 
administrative purposes from 10 percent to 15 percent.
    Subsection (f) amends section 415(c) of ECPA by changing 
the current limitation on reweatherization such that any 
dwelling unit becomes eligible again for weatherization 
assistance 15 years after the previous weatherization was 
completed. Additionally, it clarifies that certain services, 
such as energy management education, evaluation of completed 
weatherization measures, or services and equipment provided by 
non-Federal funds, do not count as ``weatherization'' for the 
purposes of the 15-year restriction.
    Subsection (g) amends section 422 of ECPA by reauthorizing 
the WAP at $350 million for each of fiscal years 2020 through 
2024.

Sec. 3. Waiver study

    Section 3 encourages DOE to work with the Office of 
Management and Budget to waive regulatory requirements relating 
to equipment acquired with Federal funds but owned by non-
Federal entities under 2 C.F.R. 200.313 to ensure that private 
sector funds are being fully leveraged when using WAP funding. 
It also requires DOE to submit a report to relevant 
Congressional committees within 180 days of enactment 
describing any waivers requested under this section and whether 
they were granted.

                   Cost and Budgetary Considerations

    The following estimate of the costs of this measure has 
been provided by the Congressional Budget Office:

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]


    S. 983 would modify the standards and procedures governing 
the Department of Energy's (DOE's) weatherization assistance 
and training programs and authorize the appropriation of $350 
million for those activities for each of the fiscal years 2020 
through 2024. Under the bill, a portion of that funding would 
be allocated for measures that would improve the energy 
efficiency of housing units occupied by low-income people, 
subject to certain conditions. Other provisions would expand 
eligibility for training programs, allow installations of 
renewable energy sources, and modify other administrative 
procedures.
    The estimated budgetary effects of S. 983 are shown in 
Table 1. For this estimate, CBO assumes that the bill will be 
enacted before the end of 2019, that appropriations will be 
provided as authorized, and that spending will follow 
historical patterns for DOE's weatherization and training 
programs. The Congress provided $257 million for those programs 
for fiscal year 2019.

                 Table 1.--ESTIMATED INCREASES IN SPENDING SUBJECT TO APPROPRIATION UNDER S. 983
----------------------------------------------------------------------------------------------------------------
                                                               By fiscal year, millions of dollars--
                                                 ---------------------------------------------------------------
                                                   2019     2020     2021     2022     2023     2024   2019-2024
----------------------------------------------------------------------------------------------------------------
Authorization...................................       0      350      350      350      350      350      1,750
Estimated Outlays...............................       0       70      175      263      315      340      1,163
----------------------------------------------------------------------------------------------------------------

    The CBO staff contact for this estimate is Kathleen Gramp. 
The estimate was reviewed by Theresa Gullo, Assistant Director 
for Budget Analysis.

                      Regulatory Impact Evaluation

    In compliance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee makes the following 
evaluation of the regulatory impact which would be incurred in 
carrying out S. 983. The bill is not a regulatory measure in 
the sense of imposing Government-established standards or 
significant economic responsibilities on private individuals 
and businesses.
    No personal information would be collected in administering 
the program. Therefore, there would be no impact on personal 
privacy.
    Little, if any, additional paperwork would result from the 
enactment of S. 983, as ordered reported.

                   Congressionally Directed Spending

    S. 983, as ordered reported, does not contain any 
congressionally directed spending items, limited tax benefits, 
or limited tariff benefits as defined in rule XLIV of the 
Standing Rules of the Senate.

                        Executive Communications

    The testimony provided by the Department of Energy at the 
July 9, 2019, hearing on S. 983 follows:

Testimony of the Honorable Bruce J. Walker, Assistant Secretary, Office 
               of Electricity, U.S. Department of Energy


                              introduction


    Chairman Cassidy, Ranking Member Heinrich, and Members of 
the Subcommittee, it is an honor and a privilege to serve at 
the Department of Energy (DOE or the Department), as Assistant 
Secretary for the Office of Electricity. DOE is charged with, 
among other important responsibilities, providing our Nation 
with premier energy research and development (R&D) activities. 
The work being conducted by DOE is setting the course for 
various advancements in the energy field and beyond. Issues 
like energy storage, improving energy efficiency, creating 
breakthroughs in how we extract and utilize our Nation's fossil 
fuels, and Artificial Intelligence are just some of the 
important areas of DOE research. These are also the topics 
being covered at today's hearing.
    Thank you for the opportunity to testify today on behalf of 
the Department regarding these various pieces of legislation. 
The Administration continues to review all eleven of these 
bills. Below are some highlights and perspectives regarding the 
legislation being discussed today.
S. 983--Weatherization Enhancement and Local Energy Efficiency 
        Investment and Accountability Act of 2019
    The Weatherization Enhancement and Local Energy Efficiency 
Investment and Accountability Act of 2019 updates and 
reauthorizes the DOE Weatherization Assistance Program (WAP) 
through 2024. The President's Budget requests no funding for 
the WAP. DOE recognizes that the Department of Health and Human 
Services and state entities allow for the transfer of LIHEAP 
funds to the state weatherization agency or may provide 
separate funding to the state weatherization agency. DOE also 
understands Congressional interests in the program, and 
continues to manage them consistent with statute.

                        Changes in Existing Law

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, the changes in existing law made 
by S. 983, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

                 ENERGY CONSERVATION AND PRODUCTION ACT


Public Law 94-385, as amended

           *       *       *       *       *       *       *



Contents

           *       *       *       *       *       *       *



  TITLE IV--ENERGY CONSERVATION AND RENEWABLE RESOURCE ASSISTANCE FOR 
                            EXISTING BUILDING

Sec. 401. Short title.
Sec. 402. Findings and purpose.

        Part A--Weatherization Assistance for Low-Income Persons

Sec. 411. Findings and purpose.
Sec. 412. Definitions.
Sec. 413. Weatherization program.
Sec. 414. Financial assistance.
Sec. 414A. Private sector investments.
Sec. 414B. Technical transfer grants.
Sec. 414C. Contractor optimization.
Sec. 414D. Financial assistance for WAP enhancement and innovation.
Sec. 415. Limitations.
Sec. 416. Monitoring, technical assistance, and evaluation.
Sec. 417. Administrative provisions.
Sec. 418. Approval of applications and administration of State programs.
Sec. 419. Judicial review.
Sec. 420. Nondiscrimination.
Sec. 421. Annual report.
Sec. 422. Authorization of appropriations.

                 Part B--State Energy Conservation Plans

Sec. 431. Definitions.
Sec. 432. Supplemental State energy conservation plans.

      Part C--National Energy Conservation and Renewable Resource 
            Demonstration Program for Existing Dwelling Units

Sec. 441. Energy conservation and renewable-resource demonstration.

Part D--Energy Conservation and Renewable Resource Obligation Guarantees

Sec. 451. Program.

                    Part E--Miscellaneous Provisions

Sec. 461. Exchange of information.
Sec. 462. Report by the Comptroller General.

           *       *       *       *       *       *       *


  TITLE IV--ENERGY CONSERVATION AND RENEWABLE RESOURCE ASSISTANCE FOR 
EXISTING BUILDINGS

           *       *       *       *       *       *       *



Part A--Weatherization Assistance for Low Income Persons

           *       *       *       *       *       *       *



                              Definitions


SEC. 412. AS USED IN THIS PART:

          (1) The term ``Secretary'' means the Secretary of 
        Energy.
          (2) The term ``Director'' means the Director of the 
        Community Services Administration.
          (3) The term ``elderly'' means any individual who is 
        60 years of age or older.
          (4) The term ``Governor'' means the chief executive 
        officer of a State (including the Mayor of the District 
        of Columbia).
          (5) The term ``handicapped person'' means any 
        individual (A) who is an individual with a disability, 
        as defined in section 705 of title 29, (B) who is under 
        a disability as defined in section 1614(a)(3)(A) or 
        233(d)(1) of the Social Security Act or in section 
        102(7)of the Developmental Disabilities Services and 
        Facilities Construction Act, or (C) who is receiving 
        benefits under chapter 11 or 15 of title 38.
          (6) The terms ``Indian'', ``Indian tribe'', and 
        ``tribal organization'' have the meanings prescribed 
        for such terms by section 3002 of this title.
          (7) The term ``low-income'' means that income in 
        relation to family size which (A) is at or below 200 
        percent of the poverty level determined in accordance 
        with criteria established by the Director of the Office 
        of Management and Budget, except that the Secretary may 
        establish a higher level if the Secretary, after 
        consulting with the Secretary of Agriculture and the 
        Director of the Community Services Administration, 
        determines that such a higher level is necessary to 
        carry out the purposes of this part and is consistent 
        with the eligibility criteria established for the 
        weatherization program under section 2809(a)(12) of 
        this title, (B) is the basis on which cash assistance 
        payments have been paid during the preceding 12-month 
        period under titles IV and XVI of the Social Security 
        Act or applicable State or local law, or (C) if a State 
        elects, is the basis for eligibility for assistance 
        under the Low-Income Home Energy Assistance Act of 1981 
        (42 U.S.C. 8621), provided that such basis is at least 
        200 percent of the poverty level determined in 
        accordance with criteria established by the Director of 
        the Office of Management and Budget.
          (8) State.--The term ``State'' means--
                  (A) a State;
                  (B) the District of Columbia;
                  (C) the Commonwealth of Puerto Rico; and (D) 
                any other territory or possession of the United 
                States.
          (9) The term ``weatherization materials''' means--
                  (A) caulking and weatherstripping of doors 
                and windows;
                  (B) furnace efficiency modifications, 
                including, but not limited to--
                          (i) replacement burners, furnaces, or 
                        boilers or any combination thereof;
                          (ii) devices for minimizing energy 
                        loss through heating system, chimney, 
                        or venting devices; and (iii) 
                        electrical or mechanical furnace 
                        ignition systems which replace standing 
                        gas pilot lights;
                  (C) clock thermostats;
                  (D) ceiling, attic, wall, floor, and duct 
                insulation;
                  (E) water heater insulation;
                  (F) storm windows and doors, multiglazed 
                windows and doors, heat-absorbing or heat-
                reflective window and door materials;
                  (G) cooling efficiency modifications, 
                including, but not limited to, replacement air-
                conditioners, ventilation equipment, screening, 
                window films, and shading devices;
                  (H) solar thermal water heaters;
                  (I) wood-heating appliances; and
                  (J) such other insulating or energy 
                conserving devices or technologies, including 
                renewable energy technologies and other 
                advanced technologies, as the Secretary may 
                determine, after consulting with the Secretary 
                of Housing and Urban [Development, the 
                Secretary of Agriculture, and the Director, of 
                the Community Services Administration.] 
                Development and the Secretary of Agriculture.

                         Weatherization Program

    SEC. 413. (a) The Secretary shall develop and conduct, in 
accordance with the purpose and provisions of this part, a 
weatherization program. In developing and conducting such 
program, the Secretary may, in accordance with this part and 
regulations promulgated under this part, make grants (1) to 
States, and (2) in accordance with the provisions of subsection 
(d) of this section, to Indian tribal organizations to serve 
Native Americans. Such grants shall be made for the purpose of 
providing financial assistance with regard to projects designed 
to provide for the weatherization of dwelling units, 
particularly those where elderly or handicapped low-income 
persons reside, occupied by low-income families.
    (b)(1) The Secretary, after consultation with the Director, 
the Secretary of Housing and Urban Development, the Secretary 
of Health and Human Services, the Secretary of Labor, and the 
heads of such other Federal departments and agencies as the 
Secretary deems appropriate, shall develop and publish in the 
Federal Register for public comment, not later than 60 days 
after August 14, 1976, proposed regulations to carry out the 
provisions of this part. The Secretary shall take into 
consideration comments submitted regarding such proposed 
regulations and shall promulgate and publish final regulations 
for such purpose not later than 90 days after August 14, 1976. 
The development of regulations under this part shall be fully 
coordinated with the Director.
          (2) The regulations promulgated pursuant to this 
        section shall include provisions--
                  (A) prescribing, in coordination with the 
                Secretary of Housing and Urban Development, the 
                Secretary of Health and Human Services, and the 
                Director of the National Institute of Standards 
                and Technology in the Department of Commerce, 
                for use in various climatic, structural, and 
                human need settings, standards for 
                weatherization materials, energy conservation 
                techniques, and balance combinations thereof, 
                which are designed to achieve a balance of a 
                healthful dwelling environment and maximum 
                practicable energy conservation;
                  (B) that provide guidance to the States in 
                the implementation of this part, including 
                guidance designed to ensure that a State 
                establishes (i) procedures that provide 
                protection under [paragraph (5)] paragraph (6) 
                to tenants paying for energy as a portion of 
                their rent, and (ii) a process for monitoring 
                compliance with its obligations pursuant to 
                this part; and
                  (C) that secure the Federal investment made 
                under this part and address the issues of 
                eviction from and sale of property receiving 
                weatherization materials under this part.
          (3) The Secretary, in coordination with the 
        Secretaries and Director described in paragraph (2)(A) 
        and with the Director of the Community Services 
        Administration and the Secretary of Agriculture, shall 
        develop and publish in the Federal Register for public 
        comment, not later than 60 days after November 9, 1978, 
        proposed amendments to the regulations prescribed under 
        paragraph (1). Such amendments shall provide that the 
        standards described in paragraph (2)(A) shall include a 
        set of procedures to be applied to each dwelling unit 
        to determine the optimum set of cost-effective 
        measures, within the cost guidelines set for the 
        program, to be installed in such dwelling unit. Such 
        standards shall, in order to achieve such optimum 
        savings of energy, take into consideration the 
        following factors--
                  (A) the cost of the weatherization material;
                  (B) variation in climate; and
                  (C) the value of energy saved by the 
                application of the weatherization material.
    Such standards shall be utilized by the Secretary in 
carrying out this part, the Secretary of Agriculture in 
carrying out the weatherization program under section 1474(c) 
of this title, and the Director of the Community Services 
Administration in carrying out weatherization programs under 
section 222(a)(12) of the Economic Opportunity Act of 1964 . 
The Secretary shall take into consideration comments submitted 
regarding such proposed amendment and shall promulgate and 
publish final amended regulations not later than 120 days after 
November 9, 1978.
          (4) In carrying out paragraphs (2)(A) and (3), the 
        Secretary shall establish the standards and procedures 
        described in such paragraphs so that weatherization 
        efforts being carried out under this part and under 
        programs described in the fourth sentence of paragraph 
        (3) will accomplish uniform results among the States in 
        any area with a similar climatic condition.
          (5) In carrying out paragraph (3), the Secretary may 
        take into consideration evidence-based values for 
        improvements in the health and safety of occupants of 
        weatherized homes, and other non-energy benefits, as 
        determined by the Secretary.
          [(5)] (6) In any case in which a dwelling consists of 
        a rental unit or rental units, the State, in the 
        implementation of this part, shall ensure that--
                  (A) the benefits of weatherization assistance 
                in connection with such rental units, including 
                units where the tenants pay for their energy 
                through their rent, will accrue primarily to 
                the low-income tenants residing in such units;
                  (B) for a reasonable period of time after 
                weatherization work has been completed on a 
                dwelling containing a unit occupied by an 
                eligible household, the tenants in that unit 
                (including households paying for their energy 
                through their rent) will not be subjected to 
                rent increases unless those increases are 
                demonstrably related to matters other than the 
                weatherization work performed;
                  (C) the enforcement of subparagraph (B) is 
                provided through procedures established by the 
                State by which tenants may file complaints and 
                owners, in response to such complaints, shall 
                demonstrate that the rent increase concerned is 
                related to matters other than the 
                weatherization work performed; and
                  (D) no undue or excessive enhancement will 
                occur to the value of such dwelling units.
          [(6)] (7) As a condition of having assistance 
        provided under this part with respect to multifamily 
        buildings, a State may require financial participation 
        from the owners of such buildings.

           *       *       *       *       *       *       *


SECTION 414B. TECHNICAL TRANSFER GRANTS.

    (a) In General.--The Secretary may, to the extent funds are 
made available, provide financial assistance to entities 
receiving funding from the Federal Government or from a State 
through a weatherization assistance program under section 413 
or section 414 for--
          (1) evaluating technical and management measures 
        which increase program and/or private entity 
        performance in weatherizing low-income housing;
          (2) producing technical information for use by 
        persons involved in weatherizing low-income housing;
          (3) exchanging information; and
          (4) conducting training programs [for persons] for--
                  (A) persons involved in weatherizing low-
                income housing[.] ; and 
                  (B) private entities that are contracted to 
                provide weatherization assistance under this 
                part, in accordance with rules determined by 
                the Secretary.
    (b) Conditions.--(1) Not less than 50 percent of amounts 
provided under this section shall be awarded to entities other 
than States.
    (2) A recipient of financial assistance under this section 
may contract with nonprofit entities to carry out all or part 
of the activities for which such financial assistance is 
provided.

SEC. 414C. CONTRACTOR OPTIMIZATION.

    The Secretary may request that entities receiving funding 
from the Federal Government or from a State through a 
weatherization assistance program under section 413 or 414--
          (1) perform periodic reviews of the use of private 
        contractors in the provision of weatherization 
        assistance, if applicable; and
          (2) encourage an increased use and expanded role of 
        contractors as appropriate.

SEC. 414D. FINANCIAL ASSISTANCE FOR WAP ENHANCEMENT AND INNOVATION.

    (a) Purposes.--The purposes of this section are--
          (1) to expand the number of dwelling units that are 
        occupied by low-income persons that receive 
        weatherization assistance under this section by making 
        those dwelling units weatherization-ready;
          (2) to promote the deployment of renewable energy in 
        dwelling units that are occupied by low-income persons;
          (3) to ensure healthy indoor environments by 
        enhancing or expanding health and safety measures and 
        resources available to dwellings that are occupied by 
        low-income persons; and
          (4) to disseminate new methods and best practices 
        among eligible entities providing weatherization 
        assistance under this section.
    (b) Definition of Eligible Entity.--In this section, the 
term `eligible entity' means--
          (1) an entity receiving funding from the Federal 
        Government or from a State through a weatherization 
        assistance program under section 413 or 414; and
          (2) a nonprofit organization.
    (c) Financial Assistance Awards.--The Secretary shall, to 
the extent funds are made available, award financial assistance 
through a competitive process to an eligible entity--
          (1) with respect to dwelling units that are occupied 
        by low-income persons--
                  (A) to implement measures to make those 
                dwelling units weatherization-ready, including 
                by addressing structural, plumbing, roofing, 
                and electrical issues, environmental hazards, 
                and other issues that the Secretary determines 
                to be appropriate;
                  (B) to install energy efficiency 
                technologies, including home energy management 
                systems, smart devices, and other technologies 
                the Secretary determines to be appropriate;
                  (C) to install renewable energy systems (as 
                defined in section 415(c)(6)(A)); and
                  (D) to implement measures to ensure healthy 
                indoor environments by improving indoor air 
                quality, accessibility, and other healthy home 
                measures, as determined by the Secretary;
          (2) to improve the capability of the eligible 
        entity--
                  (A) to significantly increase the number of 
                energy retrofits performed by the eligible 
                entity;
                  (B) to replicate best practices for work 
                performed under this section on a larger scale; 
                and
                  (C) to leverage additional funds to sustain 
                the provision of weatherization assistance and 
                other work performed under this section after 
                the financial assistance awarded under this 
                section is expended;
          (3) for innovative outreach and education regarding 
        the benefits and availability of weatherization 
        assistance and other assistance available under this 
        section;
          (4) for quality control of work performed under this 
        section;
          (5) for data collection, measurement, and 
        verification with respect to that work;
          (6) for program monitoring, oversight, evaluation, 
        and reporting of that work;
          (7) for labor, training, and technical assistance 
        relating to that work;
          (8) subject to subsection (g)(2), for planning, 
        management, and administration of that work; and
          (9) for any other appropriate activity, as determined 
        by the Secretary.
    (d) Applications.--To be eligible for an award of financial 
assistance under this section, an eligible entity shall submit 
to the Secretary an application in such manner and containing 
such information as the Secretary may require.
    (e) Award Factors.--In awarding financial assistance under 
this section, the Secretary shall consider--
          (1) the record of the eligible entity, using the most 
        recent year for which data are available, in 
        constructing, renovating, repairing, and making energy 
        efficient single-family, multifamily, or manufactured 
        homes that are occupied by low-income persons, either 
        directly or through affiliates, chapters, or other 
        partners;
          (2) the number of dwelling units occupied by low-
        income persons that the eligible entity has built, 
        renovated, repaired, weatherized, and made more energy 
        efficient in the 5 years immediately preceding the date 
        on which the eligible entity submits an application 
        under subsection (d);
          (3) the qualifications, experience, and past 
        performance of the eligible entity, including 
        experience successfully managing and administering 
        Federal funds;
          (4) the strength of the proposal of the eligible 
        entity to achieve one or more of the purposes described 
        in subsection (a);
          (5) the extent to which the eligible entity will use 
        partnerships and regional coordination to achieve one 
        or more of the purposes described in subsection (a);
          (6) regional and climate zone diversity;
          (7) urban, suburban, and rural localities; and
          (8) any other appropriate factor, as determined by 
        the Secretary.
    (f) First Award.--Subject to the availability of 
appropriations, not later than 270 days after the date of 
enactment of this section, the Secretary shall make a first 
award of financial assistance under this section.
    (g) Amount And Term.--
          (1) Maximum amount.--The total amount of financial 
        assistance awarded to an eligible entity under this 
        section shall not exceed $2,000,000.
          (2) Planning, management, and administration.--Of the 
        amount awarded to an eligible entity under this 
        section, not more than 15 percent may be used by the 
        eligible entity for the purpose described in subsection 
        (c)(8).
          (3) Technical and training assistance.--The total 
        amount of financial assistance awarded to an entity 
        under this section shall be reduced by the cost of any 
        technical and training assistance provided by the 
        Secretary under this section that relates to that 
        financial assistance.
          (4) Term.--The term of an award of financial 
        assistance under this section shall not exceed 3 years.
    (h) Guidance.--Not later than 90 days after the date of 
enactment of this section, the Secretary shall issue guidance 
on implementing this section, which shall include, with respect 
to eligible entities awarded financial assistance under this 
section--
          (1) standards for allowable expenditures;
          (2) a minimum saving-to-investment ratio; and
          (3) standards for--
                  (A) training programs;
                  (B) energy audits;
                  (C) the provision of technical assistance;
                  (D) monitoring activities carried out using 
                the financial assistance;
                  (E) verification of energy and cost savings;
                  (F) liability insurance requirements; and
                  (G) recordkeeping and reporting requirements, 
                which shall include reporting to the Office of 
                Weatherization and Intergovernmental Programs 
                of the Department of Energy applicable data on 
                each dwelling unit retrofitted or otherwise 
                assisted by the eligible entity using the 
                financial assistance.
    (i) Compliance With State and Local Law.--Nothing in this 
section supersedes or modifies any State or local law to the 
extent that the State or local law is more stringent than this 
section.
    (j) Review and Evaluation.--The Secretary shall review and 
evaluate the performance of each eligible entity that receives 
an award of financial assistance under this section, which may 
include an audit.
    (k) Annual Report.--The Secretary shall submit to the 
relevant committees of Congress an annual report that 
describes--
          (1) the actions taken by the Secretary and eligible 
        entities awarded financial assistance under this 
        section to achieve the purposes of this section during 
        the year covered by the report; and
          (2) the energy and cost savings, and any other 
        accomplishments, achieved under this section during the 
        year covered by the report.
    (l) Funding.--
          (1) In general.--Subject to paragraphs (2) and (3), 
        for each of fiscal years 2020 through 2024, of the 
        amount appropriated under section 422--
                  (A) if the amount is not more than 
                $225,000,000, no funds shall be used to carry 
                out this section;
                  (B) if the amount is not more than 
                $260,000,000, not more than 2 percent of that 
                amount may be used to carry out this section;
                  (C) if the amount is not more than 
                $300,000,000, not more than 4 percent of that 
                amount may be used to carry out this section; 
                and
                  (D) if the amount is more than $300,000,000, 
                not more than 6 percent of that amount may be 
                used to carry out this section.
          (2) Amounts excluded.--Each amount described in 
        paragraph (1) shall not include the amount made 
        available for Department of Energy headquarters 
        training or technical assistance.
          (3) Maximum amount.--The maximum amount used to carry 
        out this section in each fiscal year shall not exceed 
        $25,000,000.

                              Limitations

    SEC. 415. (a)(1) Not more than an amount equal to [10 
percent] 15 percent of any grant made by the Secretary under 
this part may be used for administrative purposes in carrying 
out duties under this part, except that not more than one-half 
of such amount may be used by any State for such purposes, and 
a State may provide in the plan adopted pursuant to subsection 
(b) of this section for recipients of grants of less than 
$350,000 to use up to an additional 5 percent of such grant for 
administration if the State has determined that such recipient 
requires such additional amount to implement effectively the 
administrative requirements established by the Secretary 
pursuant to this part.
          (2) The Secretary shall establish energy audit 
        procedures and techniques which (i) meet standards 
        established by the Secretary after consultation with 
        the State Energy Advisory Board established under 
        section 365(g) of the Energy Policy and Conservation 
        Act, (ii) establish priorities for selection of 
        weatherization measures based on their cost and 
        contribution to energy efficiency, (iii) measure the 
        energy requirement of individual dwellings and the rate 
        of return of the total conservation investment in a 
        dwelling, and (iv) account for interaction among energy 
        efficiency measures.
    (b) The Secretary shall insure that financial assistance 
provided under this part will--
          (1) be allocated within the State or area in 
        accordance with a published State or area plan, which 
        is adopted by such State after notice and a public 
        hearing, describing the proposed funding distributions 
        and recipients;
          (2) be allocated, pursuant to such State or area 
        plan, to community action agencies carrying out 
        programs under title II of the Economic Opportunity Act 
        of 1964 or to other appropriate and qualified public or 
        nonprofit entities in such State or area so that--
                  (A) funds will be allocated on the basis of 
                the relative need for weatherization assistance 
                among the low-income persons within such State 
                or area, taking into account appropriate 
                climatic and energy conservation factors; and
                  (B) due consideration will be given to the 
                results of periodic evaluations of the projects 
                carried out under this part in light of 
                available information regarding the current and 
                anticipated energy and weatherization needs of 
                low-income persons within the State; and
          (3) be terminated or discontinued during the 
        application period only in accordance with policies and 
        procedures consistent with the policies and procedures 
        set forth in section 6868 of this title.
    (c)(1) Except as provided in paragraphs (3) and (4), the 
expenditure of financial assistance provided under this part 
for labor, weatherization materials, and related matters shall 
not exceed an average of $6,500 per dwelling unit weatherized 
in that State. Labor, weatherization materials, and related 
matter includes, but is not limited to--
                  (A) the appropriate portion of the cost of 
                tools and equipment used to install 
                weatherization materials for a dwelling unit;
                  (B) the cost of transporting labor, tools, 
                and materials to a dwelling unit;
                  (C) the cost of having onsite supervisory 
                personnel;
                  (D) the cost of making incidental repairs to 
                a dwelling unit if such repairs are necessary 
                to make the installation of weatherization 
                materials effective, and
                  (E) the cost of making heating and cooling 
                modifications, including replacement
          [(2) Dwelling units partially weatherized under this 
        part or under other Federal programs during the period 
        September 30, 1975, through September 30, 1994, may 
        receive further financial assistance for weatherization 
        under this part.]
          (2) Further assistance.--
                  (A) Definition of interim service.--
                          (i) In general.--In this paragraph, 
                        the term ``interim service'' means an 
                        energy service that takes place between 
                        instances of weatherization or partial 
                        weatherization of a dwelling unit, as 
                        determined by the Secretary.
                          (ii) Inclusion.--In this paragraph, 
                        the term `interim service' includes--
                                  (I) the provision of energy 
                                information and education to 
                                assist with energy management;
                                  (II) an evaluation of the 
                                effectiveness of installed 
                                weatherization measures; and
                                  (III) the provision of 
                                services, equipment, or other 
                                measures funded by non-Federal 
                                funds, as determined by the 
                                Secretary.
                  (B) Further assistance.--Dwelling units 
                weatherized or partially weatherized under this 
                part, or under other Federal programs--
                          (i) may not receive further financial 
                        assistance for weatherization under 
                        this part until the date that is 15 
                        years after the date on which the 
                        previous weatherization was completed; 
                        and
                          (ii) may receive further financial 
                        assistance for weatherization under 
                        this part for the purpose of providing 
                        an interim service.

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                    Authorization of Appropriations

    SEC. 422. For the purpose of carrying out the 
weatherization program under this part, there are authorized to 
be [appropriated--
          (1) $750,000,000 for fiscal year 2008;
          (2) $900,000,000 for fiscal year 2009;
          (3) $1,050,000,000 for fiscal year 2010;
          (4) $1,200,000,000 for fiscal year 2011; and
          (5) $1,400,000,000 for fiscal year 2012.] 
        appropriated $350,000,000 for each of fiscal years 2020 
        through 2024.

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