H.R. 5019 (111th): Home Star Energy Retrofit Act of 2010

111th Congress, 2009–2010. Text as of May 07, 2010 (Referred to Senate Committee).

Status & Summary | PDF | Source: GPO

IIB

111th CONGRESS

2d Session

H. R. 5019

IN THE SENATE OF THE UNITED STATES

May 7, 2010

Received; read twice and referred to the Committee on Finance

AN ACT

To provide for the establishment of the Home Star Retrofit Rebate Program, and for other purposes.

1.

Short title

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

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 that the Secretary shall approve or deny not later than 30 days after submittal, 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 that the Secretary shall approve or deny not later than 30 days after submittal, 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 or wholesale, 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)

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).

(13)

National Home Performance Council

The term National Home Performance Council means the National Home Performance Council, Inc.

(14)

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.

(15)

Qualified contractor

The term qualified contractor means a residential energy efficiency contractor meeting minimum applicable requirements as determined under section 101(c).

(16)

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.

(17)

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.

(18)

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 that is accredited under standards that the Secretary shall approve or deny not later than 30 days after submittal, in consultation with the Administrator.

(19)

Rebate aggregator

The term rebate aggregator means an entity that meets the requirements of section 102.

(20)

RESNET

The term RESNET means the Residential Energy Services Network.

(21)

Secretary

The term Secretary means the Secretary of Energy.

(22)

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.

(23)

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.

(24)

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.

(25)

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.

I

Home Star Retrofit Rebate Program

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—

(i)

rebate aggregators to submit claims for reimbursement using standard data protocols;

(ii)

quality assurance reports to be identified with the work for which rebates are claimed; and

(iii)

any Home Star loans to be linked to the work for which they are made;

(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;

(C)

establish a means by which a State may obtain confidential access to records of work performed in that State from the database; and

(D)

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 affirms, in each Home Star rebate application submitted to a rebate aggregator, 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 the amount of the rebate the contractor intends to apply for on the homeowner’s behalf with respect to the eligible work under this title, before a contract is executed between the contractor and a homeowner covering the eligible work;

(6)

agreeing to cooperate with and comply with the requirements of the quality assurance provider assigned to inspect any work done, subject to any appeals or dispute resolution process described in section 105(b)(4);

(7)

certifying that no employee has been convicted of, or pleaded guilty to, a crime of child molestation, rape, or any other form of sexual assault;

(8)

all requirements of an applicable State quality assurance framework by and after the date that is 1 year after the date of enactment of this Act; and

(9)

any other appropriate requirements as determined by the Secretary, in consultation with the Administrator.

(d)

Administrative and technical support

Subject to section 109(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 and set basic rates of pay for such professional and administrative personnel as the Secretary considers necessary to carry out this title. Such authority shall not apply to positions in the Senior Executive Service. The number of personnel appointed under this paragraph shall not exceed 30 full-time equivalent employees. The terms of appointment of all personnel appointed under this paragraph shall expire upon the termination of the programs established under this title.

(2)

Rate of pay

The basic rate of pay for a person appointed under paragraph (1) shall not exceed the maximum rate of basic pay payable for GS–15 of the General Schedule under section 5332 of title 5, United States Code.

(3)

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.

(4)

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.

(5)

Effective period

(A)

Paragraph (1) shall be effective only until December 31, 2010, except with respect to personnel appointed to support the quality assurance and enforcement of the programs established under this title, for which appointments may be made under paragraph (1) until the termination of the programs established under this title pursuant to section 111(i).

(B)

Paragraphs (3) and (4) shall be effective only until the date that is 2 years after the date of enactment of this Act, except with respect to regulations and information collection relating to the quality assurance and enforcement of the programs established under this title.

(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 108, or if at any later time the Secretary determines that a State is no longer prepared to carry out section 105 or 108, 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 or 108.

(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 or 108 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 unless the energy savings measures installed pursuant to section 103 are excluded from the calculations performed for purposes of section 104 and the total amount of rebates paid for the home does not exceed the maximum rebate available pursuant to section 104.

(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 title.

(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.

(o)

Information hotlines

(1)

Contractors

The Secretary shall establish and publicize a telephone hotline for contractors to call to obtain information about the programs under this Act.

(2)

Homeowners

The Secretary shall establish and publicize a telephone hotline for homeowners to call to obtain information about the programs under this Act.

(p)

Online chat function

The Secretary shall determine the feasibility and effectiveness of establishing an online chat function through the website established for the Home Star Retrofit Rebate Program, and may establish such a function as appropriate.

(q)

Disaster areas

The Secretary shall ensure that a home in an area declared affected by a major disaster declared by the President under section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5170) is not denied assistance under the Home Star Retrofit Rebate Program solely because there is no equipment or system to replace due to the disaster.

(r)

Income threshold

Homeowners with a gross annual household income of more than $250,000 shall not be eligible for a rebate under this title.

102.

Rebate aggregators

(a)

In general

The Secretary shall develop a network of rebate aggregators that can facilitate the delivery of rebates to homeowners to reimburse the homeowners for work provided by participating contractors and vendors 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, in one or more particular States, that fails to meet its obligations under this title in a timely and competent manner. The Secretary shall consult with States operating existing residential energy efficiency and retrofit programs on how best to coordinate the Home Star Retrofit Rebate Program with such existing programs, including the designation of rebate aggregators.

(b)

Availability

Not later than 60 days after the date of enactment of this Act, the Secretary shall identify a sufficient number of rebate aggregators in each State to ensure that rebate applications can be accepted from all qualified contractors. 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)

not later than 10 days after receipt of a complete rebate application, 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 10 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 Armed Forces exchange service in the United States that offers for sale energy savings measures described in section 103;

(E)

an electric utility, natural gas utility, or water utility administering or offering a residential energy efficiency retrofit program; or

(F)

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;

(iii)

whose participation in the program, in the judgment of the Secretary, would facilitate coordination with, and not disrupt, existing residential retrofit programs in the States that are carrying out the Home Star Retrofit Rebate Program under this title; and

(iv)

whose operational facilities, employees, electronic recordkeeping hardware and facilities, and conventional records used to carry out the responsibilities of a rebate aggregator are located wholly within the United States, to the extent consistent with the international obligations of the United States.

(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.

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) and to the availability of funding pursuant to section 109, to homeowners to reimburse the homeowners for work provided by participating contractors and vendors, 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, insulating 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, except that a State, with the approval of the Secretary, may designate climate zone subregions as a function of varying elevation; 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 sealing or replacement and sealing that—

(A)

is installed in accordance with BPI standards or other procedures approved by the Secretary; and

(B)

in the case of duct replacement and sealing, replaces and seals 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 or adds at least R–10 of continuous insulation; 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 75 percent of the exterior windows in a home, whichever is less, with windows that—

(A)

are certified by the National Fenestration Rating Council; and

(B)

comply with criteria applicable to windows under section 25(c) of the Internal Revenue Code of 1986 or, in areas above 5,000 feet elevation, have a U-factor of at least 0.35 when replacing windows that are single-glazed or double-glazed with an internal air space of 1/4 inch or less.

(7)

Door or skylight replacement that replaces at least 1 exterior door or skylight with doors or skylights that comply with the 2010 Energy Star specification for doors or skylights.

(8)
(A)

Heating system replacement of—

(i)

a natural gas or propane furnace with a furnace that has—

(I)

an AFUE rating of 92 or greater; or

(II)

an AFUE rating of 95 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 pellet furnace, boiler, or stove, if—

(I)

the new system—

(aa)

meets at least 75 percent of the heating demands of the home; and

(bb)

in the case of a wood stove, but not a pellet stove, replaces an existing wood stove, but not a pellet stove, and is certified by the Administrator;

(II)

the home has a distribution system (such as ducts, vents, blowers, or affixed fans) that allows heat to reach all or most parts of the home;

(III)

in the case where an old wood stove is being replaced, a voucher is provided by the installer or other responsible party certifying that the old wood stove has been removed and rendered inoperable or recycled at an appropriate recycling facility; and

(IV)

an accredited independent laboratory recognized by the Administrator certifies that the new system—

(aa)

has thermal efficiency (lower heating value) of at least 75 percent for wood and pellet stoves, and at least 80 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 outdoor 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-source 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-source air conditioner—

(I)

SEER 16 and EER 13; or

(II)

SEER 18 and EER 15; 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 natural gas or propane storage or tankless water heater with 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 energy factor or thermal efficiency, as applicable, of .96 or more or a thermal efficiency of 96 percent 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—

(i)

a desuperheater; or

(ii)

year-round demand water heating capability.

(12)

Storm windows or doors that—

(A)

are installed on at least 5 existing doors or existing single-glazed windows; and

(B)

comply with any procedures that the Secretary may set for storm windows or doors 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 more, 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 for installations 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);

(B)

wall insulation described in subsection (b)(4); and

(C)

an air-source air conditioner described in subsection (b)(9)(B)(i)(II).

(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 and per skylight for the installation of up to a maximum of 2 Energy Star doors and 2 Energy Star skylights described in subsection (b)(7) for each home;

(B)

$400 for a maximum of 1 natural gas or propane storage water heater described in subsection (b)(11)(C) for each home;

(C)

$750 for a water heater described in subsection (b)(11)(B);

(D)

$250 for rim joist insulation described in subsection (b)(5)(B);

(E)

$50 for each storm window or door described in subsection (b)(12), with a minimum of 5 storm windows or doors and a maximum of 12;

(F)

$250 each for a maximum of 4 electric tankless water heaters described in subsection (b)(11)(F) for each home;

(G)

$500 for window film described in subsection (b)(13);

(H)

$750 for heating system replacement described in subsection (b)(8)(A)(i)(I);

(I)

$500 for a wood or pellet stove that has a heating capacity of at least 28,000 Btu per hour and meets all of the requirements of subsection (b)(8)(A)(v), except for the requirements of subclause (I)(aa) and subclause (II); and

(J)

$500 for a for a desuperheater as described in subsection (b)(11)(H)(i).

(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 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

Not later than 1 year after the completion of a project for which rebates are sought, a homeowner may make a complaint under the quality assurance program that compliance with the required specifications for each measure or standards for installation have 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 rebate, 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 as of the date of enactment of this Act for a tax credit under section 25C of the Internal Revenue Code of 1986; and

(ii)

in the case of air sealing products, are sealants, caulks, insulating 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.

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) and the availability of funds pursuant to section 109, to homeowners to reimburse the homeowners for work provided by participating accredited contractors and vendors 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, energy-efficient wood products, insulated vinyl siding, 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 verified 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 and energy savings projections conducted with respect to 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

Not later than 1 year after completion of a project for which rebates are sought, 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 rebate, 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)

If a field verification by an independent quality assurance provider finds that corrective work is needed, the accredited contractor will correct the work so the installed measures comply with manufacturer and applicable code standards, and reasonably determined energy savings projections indicate compliance with the specifications and quality standards under this title. Such compliance shall be achieved 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 may—

(A)

recoup the amount of the incorrect payment; or

(B)

withhold the amount of the incorrect payment from a payment made to the party pursuant to a subsequent request.

(g)

Accreditation scholarships

The Secretary may provide up to 0.3 percent of the funding available for carrying out this section for need-based scholarships to individuals to enable them to qualify as accredited contractors. In providing such scholarships, the Secretary shall factor in the number of accredited contractors in the State and their proportion to the State’s population.

(h)

Exclusion

For purposes of this section, energy savings measures shall not include the installation or replacement of pool heaters.

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 1 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, veteran, and women-owned small business enterprises;

(ii)

the employment of graduates of training programs that primarily serve targeted workers; and

(iii)

the employment of targeted workers;

(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)

to the extent practicable, a plan to incorporate existing clean energy and energy efficiency coursework, worker training programs, and worker certification programs at community colleges;

(G)

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

(H)

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 109(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.

(4)

Appeals and dispute resolution process

A quality assurance program established under this subsection shall include an expedited and final appeals and dispute resolution process.

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;

(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.

(d)

Comptroller General study

Not later than 2 years after the date of enactment of this Act, the Comptroller General shall submit to Congress a report on the results of a study of—

(1)

how much money can reasonably be estimated to be saved by American consumers as a result of the energy efficiency measures undertaken pursuant to this title;

(2)

how much energy can reasonably be estimated to be saved as a result of the energy efficiency measures undertaken pursuant to this title; and

(3)

whether the savings from the energy efficiency measures undertaken pursuant to this title are greater than the cost of the implementation of this title.

107.

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.

108.

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.

109.

Funding

(a)

Authorization of appropriations

(1)

In general

Subject to subsection (i), 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)

Distribution to States

(A)

In general

Except as otherwise provided in this subsection, of the amount provided under subsection (a), 3.6 percent is authorized to be appropriated to the Secretary for providing grants to States, to be used for—

(i)

administrative costs of carrying out this title;

(ii)

development and implementation of quality assurance frameworks;

(iii)

oversight of quality assurance programs;

(iv)

establishment and delivery of financing mechanisms, in accordance with paragraph (2); and

(v)

coordination with existing residential retrofit programs and infrastructure development to assist deployment of the Home Star Retrofit Rebate Program.

(B)

Distribution

(i)

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 subparagraph (A).

(ii)

Allocation

Funds described in clause (i) 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.).

(iii)

Fund allocation process

The Secretary shall allocate the remaining 75 percent of the funds described in clause (i) in a manner that may vary from the formula described in clause (ii) 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.

(2)

Financing

(A)

In general

Except as otherwise provided in this subsection, of the amount provided under subsection (a), 5.4 percent is authorized to be appropriated to the Secretary for carrying out section 109.

(B)

Distribution

(i)

Provision of funds

Not later than 90 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, 75 percent of the funds described in subparagraph (A).

(ii)

Allocation

Funds described in clause (i) 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.).

(iii)

Fund allocation process

The Secretary shall allocate the remaining 25 percent of the funds described in clause (i) in a manner that may vary from the formula described in clause (ii) and reward those States that make the best progress in providing loans to low-income areas pursuant to section 109(c)(4).

(3)

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.

(4)

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 and rebate aggregation 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)(1)(B)(ii) with respect to services provided by quality assurance providers and rebate aggregators.

(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)

Silver Star Home Energy Retrofit Program

(1)

In general

Of the amount provided under subsection (a), after subtracting the amounts authorized in subsections (b) and (d) 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).

(f)

Gold Star Home Energy Retrofit Program

Of the amount provided under subsection (a), after subtracting the amounts authorized in subsections (b) and (d) 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.

(g)

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.

(3)

Home star energy efficiency loan program

If a State, or the Secretary acting in lieu of a State program, has not disbursed or provided in the form of loans all the funds available for such loans under the Home Star Energy Efficiency Loan Program by the date that is 2 years after the date of enactment of this title, any undisbursed funds shall be returned to the Treasury.

(h)

Sunset

With the exception of the provisions of section 102(c)(5), (6), and (7), section 109, 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.

(i)

Prohibition on earmarks

None of the funds appropriated pursuant to this section may be used for a Congressional earmark as defined in clause 9(e) of rule XXI of the Rules of the House of Representatives.

(j)

Administrative expense prohibition

No funds provided under this title shall be used for the purposes of conducting travel to gambling or gaming establishments in connection with official duties related to this title.

110.

Noise abatement study

Not later than 1 year after the date of enactment of this Act, the Secretary, in consultation with the Secretary of Health and Human Services, 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 of the effects of the energy savings measures made as a result of this Act on noise abatement.

II

Energy Efficient Manufactured and Modular Homes

201.

Energy efficient manufactured and Modular 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.

(3)

Modular home

The term modular home means a structure that is—

(A)

designed and manufactured to comply with applicable national, State, and local building codes and regulations;

(B)

transportable in one or more sections;

(C)

not constructed on a permanent chassis; and

(D)

designed to be used as a dwelling on permanent foundations when connected to required utilities, including the plumbing, heating, air conditioning, and electrical systems contained therein.

(4)

Energy star qualified modular home

The term Energy Star qualified modular home means a modular home that has been designed, produced, and installed in accordance with Energy Star’s guidelines.

(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 or new Energy Star qualified modular 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 or new Energy Star qualified modular 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 or Energy Star qualified modular 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 or new Energy Star qualified modular 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 or modular 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)

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 or Energy Star qualified modular 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).

(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.

(3)

Prohibition on earmarks

None of the funds appropriated pursuant to this subsection may be used for a Congressional earmark as defined in clause 9(e) of rule XXI of the Rules of the House of Representatives.

III

Waste, Fraud, and Abuse

301.

Report

The Department of Energy’s Inspector General shall submit a report to Congress measuring the amount of waste, fraud, and abuse occurring in programs created by this Act, which shall include recommendations to prevent additional waste, fraud, and abuse. This report shall be submitted before July 1, 2012.

IV

Deficit Neutrality

401.

Sunset

The provisions of this Act shall be suspended and shall not apply if this Act will have a negative net effect on the national budget deficit of the United States.

Passed the House of Representatives May 6, 2010.

Lorraine C. Miller,

Clerk.