I 

112TH CONGRESS 

2D SESSION H. R. 4230 

To provide for the establishment of a Home Energy Savings Retrofit Rebate 

Program, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 21, 2012 

Mr. MCKINLEY (for himself and Mr. WELCH) introduced the following bill; 

which was referred to the Committee on Energy and Commerce, and in 

addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such 

provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To provide for the establishment of a Home Energy Savings 

Retrofit Rebate Program, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Home Owner Man5 aging Energy Savings Act of 2012’’ or the ‘‘HOMES 

6 Act’’. 

7 SEC. 2. DEFINITIONS. 

8 In this Act: 


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1 (1) BPI.—The term ‘‘BPI’’ means the Building 

2 Performance Institute. 

3 (2) CERTIFIED WORKFORCE.—The term ‘‘cer4 tified workforce’’ means a residential energy effi5 ciency construction workforce in which all auditors, 

6 installers, crew leaders, and quality assurance in7 spectors performing work relating to retrofit activi8 ties with respect to which rebates are sought under 

9 this Act are certified— 

10 (A) by a certifying body recognized by the 

11 National Renewal Energy Laboratory’s Guide12 lines for Home Energy Professionals program; 

13 or 

14 (B) under— 

15 (i) an applicable third party skills 

16 standard established by— 

17 (I) the BPI; 

18 (II) RESNET Energy Smart 

19 Home Performance Team; 

20 (III) North American Technician 

21 Excellence; or 

22 (IV) the Laborers’ International 

23 Union of North America; or 


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1 (ii) other standards approved by the 

2 Secretary, in consultation with the Sec3 retary of Labor. 

4 (3) ELECTRIC UTILITY.—The term ‘‘electric 

5 utility’’ means any company, person, cooperative, 

6 State, or Indian tribe agency that delivers or sells 

7 electric energy at retail, including nonregulated utili8 ties, utilities that are subject to State or Indian tribe 

9 rate regulation, and Federal power marketing ad10 ministrations. 

11 (4) FEDERAL REBATE PROCESSING SYSTEM.— 

12 The term ‘‘Federal Rebate Processing System’’ 

13 means the Federal Rebate Processing System estab14 lished under section 3(b). 

15 (5) HOME.—The term ‘‘home’’ means a prin16 cipal residential dwelling unit in a building with no 

17 more than 4 dwelling units that— 

18 (A) is located in the United States; and 

19 (B) was constructed before the date of en20 actment of this Act. 

21 (6) HOME ENERGY SAVINGS RETROFIT REBATE

22 PROGRAM.—The term ‘‘Home Energy Savings Ret23 rofit Rebate Program’’ means the Home Energy 

24 Savings Retrofit Rebate Program established under 

25 section 3(a). 


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1 (7) HOMEOWNER.—The term ‘‘homeowner’’ 

2 means the owner of an owner-occupied home or a 

3 tenant-occupied home. 

4 (8) INDIAN TRIBE.—The term ‘‘Indian tribe’’ 

5 has the meaning given the term in section 4 of the 

6 Indian Self-Determination and Education Assistance 

7 Act (25 U.S.C. 450b). 

8 (9) NATURAL GAS UTILITY.—The term ‘‘nat9 ural gas utility’’ means any company, person, coop10 erative, State or local governmental agency or in11 strumentality, or Indian tribe that transports, dis12 tributes, or sells natural gas at retail. 

13 (10) QUALIFIED CONTRACTOR.—The term 

14 ‘‘qualified contractor’’ means a residential energy ef15 ficiency contractor that meets minimum applicable 

16 requirements established under section 4. 

17 (11) QUALIFIED HOME ENERGY EFFICIENCY

18 RETROFIT.—The term ‘‘qualified home energy effi19 ciency retrofit’’ means a retrofit described in section 

20 8(d). 

21 (12) QUALITY ASSURANCE PROGRAM.— 

22 (A) IN GENERAL.—The term ‘‘quality as23 surance program’’ means a program established 

24 under this Act, or recognized by the Secretary 

25 under this Act, to oversee the delivery of home 


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1 efficiency retrofit programs to ensure that work 

2 is performed in accordance with standards and 

3 criteria established under this Act. 

4 (B) INCLUSIONS.—For purposes of sub5 paragraph (A), delivery of retrofit programs in6 cludes delivery of quality assurance reviews of 

7 rebate applications and field inspections. 

8 (13) QUALITY ASSURANCE PROVIDER.—The 

9 term ‘‘quality assurance provider’’ means any entity 

10 that meets the minimum applicable requirements es11 tablished under section 6(b). 

12 (14) REBATE AGGREGATOR.—The term ‘‘rebate 

13 aggregator’’ means an entity that meets the require14 ments of section 5. 

15 (15) RESNET.—The term ‘‘RESNET’’ means 

16 the Residential Energy Services Network, which is a 

17 nonprofit certification and standard setting organi18 zation for home energy raters that evaluate the en19 ergy performance of a home and Energy Smart Con20 tractors that make energy improvements to the 

21 home. 

22 (16) SECRETARY.—The term ‘‘Secretary’’ 

23 means the Secretary of Energy. 

24 (17) STATE.—The term ‘‘State’’ means— 

25 (A) a State; 


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1 (B) the District of Columbia; 

2 (C) the Commonwealth of Puerto Rico; 

3 (D) Guam; 

4 (E) American Samoa; 

5 (F) the Commonwealth of the Northern 

6 Mariana Islands; 

7 (G) the United States Virgin Islands; and 

8 (H) any other territory or possession of the 

9 United States. 

10 SEC. 3. HOME ENERGY SAVINGS RETROFIT REBATE PRO11 GRAM. 

12 (a) IN GENERAL.—The Secretary shall establish the 

13 Home Energy Savings Retrofit Rebate Program. 

14 (b) FEDERAL REBATE PROCESSING SYSTEM.— 

15 (1) IN GENERAL.—Not later than 180 days 

16 after the date of enactment of this Act, the Sec17 retary, in consultation with the Secretary of the 

18 Treasury, shall— 

19 (A) establish a Federal Rebate Processing 

20 System which shall serve as a database and in21 formation technology system that will allow re22 bate aggregators to submit claims for reim23 bursement using standard data protocols; 


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1 (B) establish a national retrofit Web site 

2 that provides information on the Home Energy 

3 Savings Retrofit Rebate Program, including— 

4 (i) how to determine whether par5 ticular efficiency measures are eligible for 

6 rebates; and 

7 (ii) how to participate in the program; 

8 and 

9 (C) make available, on a designated Web 

10 site, model forms for demonstrating compliance 

11 with all applicable requirements of this Act, 

12 which shall be required to be submitted by— 

13 (i) each qualified contractor on com14 pletion of an eligible home energy retrofit; 

15 and 

16 (ii) each quality assurance provider on 

17 completion of field verification. 

18 (2) MODEL FORMS.—In carrying out paragraph 

19 (1)(C), the Secretary shall consider the model forms 

20 developed by the National Home Performance Coun21 cil, Inc. If the Secretary does not adopt these forms, 

22 the Secretary shall convene a group of stakeholders, 

23 including the National Home Performance Council, 

24 Inc., to develop the final forms. 


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1 SEC. 4. CONTRACTORS. 

2 (a) CONTRACTOR QUALIFICATIONS.—A contractor 

3 may perform retrofit work under the Home Energy Sav4 ings Retrofit Rebate Program in a State for which rebates 

5 are provided under this Act only if the contractor— 

6 (1) meets all applicable contractor licensing re7 quirements established by the State; 

8 (2) is— 

9 (A) accredited by the BPI or a preexisting 

10 BPI accreditation-based State certification pro11 gram with enhancements to achieve State en12 ergy policy; 

13 (B) a RESNET accredited Energy Smart 

14 Home Performance Team; or 

15 (C) accredited by an equivalent certifi16 cation program approved by the Secretary for 

17 this purpose; 

18 (3) holds insurance coverage of at least 

19 $1,000,000 for general liability, and for such other 

20 purposes and in such other amounts as required by 

21 the State; 

22 (4) provides warranties to the homeowner that 

23 completed work will— 

24 (A) be free of significant defects; 

25 (B) be installed in accordance with the 

26 specifications of the manufacturer, and all apVerDate Mar 15 2010 03:34 Mar 22, 2012 Jkt 019200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H4230.IH H4230

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1 plicable State and local building and mechanical 

2 codes; 

3 (C) perform properly for a period of at 

4 least 1 year after the date of completion of the 

5 work; and 

6 (D) warrant such other actions or results 

7 as determined appropriate by the Secretary; 

8 and 

9 (5) hires and retains a certified workforce for 

10 projects performed under this Act. 

11 (b) AGREEMENT BETWEEN CONTRACTOR AND HOME

12 OWNER.—A contractor who performs retrofit work under 

13 the Home Energy Savings Retrofit Rebate Program must 

14 sign a written contract with the homeowner that in15 cludes— 

16 (1) an agreement to not increase the cost of the 

17 home improvement as a result of the rebates re18 ceived under this Act with respect to the home; and 

19 (2) if the contractor and homeowner choose the 

20 transferable rebate option authorized under section 

21 7, an agreement to provide the homeowner, before a 

22 contract is executed between the contractor and the 

23 homeowner covering the eligible work, a notice of the 

24 rebate amount the contractor intends to apply for 

25 with respect to eligible work under this Act. 


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1 SEC. 5. REBATE AGGREGATORS. 

2 (a) IN GENERAL.—The Secretary shall develop a net3 work of rebate aggregators or a national rebate aggregator 

4 that can facilitate the delivery of rebates to participating 

5 homeowners or contractors by— 

6 (1) reviewing the proposed rebate application 

7 for completeness and accuracy; 

8 (2) reviewing measures for eligibility in accord9 ance with this Act; 

10 (3) providing data to the Federal Rebate Proc11 essing System consistent with data protocols estab12 lished by the Secretary; and 

13 (4) as soon as practicable but not later than 30 

14 days after the date of receipt, distributing funds re15 ceived from the Department of Energy to home16 owners or contractors. 

17 (b) ELIGIBILITY.—To be eligible to apply to the Sec18 retary for approval as a rebate aggregator, an entity shall 

19 be— 

20 (1) a Home Performance with Energy Star pro21 gram sponsor; 

22 (2) an entity administering a residential energy 

23 efficiency retrofit program established or approved 

24 by a State; 

25 (3) a Federal power marketing administration, 

26 an electric utility, or a natural gas utility that has— 


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1 (A) a residential energy efficiency retrofit 

2 program; and 

3 (B) a quality assurance provider network; 

4 or 

5 (4) an entity that demonstrates to the Sec6 retary that the entity can perform the functions of 

7 a rebate aggregator, without disrupting existing resi8 dential retrofits in the States that are incorporating 

9 the Home Energy Savings Retrofit Rebate Program, 

10 including demonstration of— 

11 (A) the capability to provide electronic 

12 data to the Federal Rebate Processing System; 

13 (B) a financial system that is capable of 

14 tracking the distribution of rebates to partici15 pating contractors; and 

16 (C) coordination and cooperation by the 

17 entity with the appropriate State energy office 

18 regarding participation in the existing energy 

19 efficiency programs that will be delivering the 

20 Home Energy Savings Retrofit Rebate Pro21 gram. 

22 (c) PUBLIC UTILITY COMMISSION EFFICIENCY TAR23 GETS.—The Secretary shall— 

24 (1) develop guidelines for States to use to allow 

25 utilities participating as rebate aggregators to count 


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1 the energy savings from the participation of the util2 ities toward State level energy savings targets; and 

3 (2) work with States to assist in the adoption 

4 of those guidelines for the purposes and duration of 

5 the Home Energy Savings Retrofit Rebate Program. 

6 SEC. 6. QUALITY ASSURANCE PROVIDERS. 

7 (a) QUALIFICATIONS.—An entity shall be considered 

8 a quality assurance provider under this Act only if the en9 tity is qualified through— 

10 (1) the BPI; 

11 (2) RESNET; or 

12 (3) any other entity designated by the Secretary 

13 such as a State or State-approved residential energy 

14 efficiency retrofit program. 

15 (b) FUNCTIONS.—A quality assurance provider 

16 shall— 

17 (1) be independent of the contractor; 

18 (2) confirm that contractors or installers of 

19 home energy efficiency retrofits meet the qualifica20 tion requirements of this Act according to the stand21 ard work specification guidelines established by the 

22 National Renewable Energy Laboratory of the De23 partment of Energy; and 

24 (3) perform field inspections and other meas25 ures required to confirm the compliance of the retVerDate Mar 15 2010 03:34 Mar 22, 2012 Jkt 019200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\H4230.IH H4230

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1 rofit work and the simulated energy savings under 

2 the Home Energy Savings Retrofit Rebate Program, 

3 based on the requirements of this Act. 

4 SEC. 7. TRANSFERABILITY OF HOME ENERGY SAVINGS RE5 BATE. 

6 A homeowner may transfer the rebate provided under 

7 the Home Energy Savings Retrofit Rebate Program to the 

8 contractor performing the retrofit work if the contractor 

9 completes a form that accompanies the rebate form devel10 oped under section 3(b). This form, to be made publically 

11 available by the Secretary 90 days after the date of enact12 ment of this Act, must be signed by the homeowner and 

13 include— 

14 (1) the amount of the rebate the contractor will 

15 submit for disbursement to the contractor; 

16 (2) the level of energy use reduction of the 

17 home retrofit certified under section 8(e)(4), and as18 surance that the contractor will provide the certifi19 cate to the homeowner within 30 days of receipt 

20 from the Department of Energy; 

21 (3) a documentation report of the retrofit per22 formed and paid by the homeowner; and 

23 (4) confirmation from the homeowner that they 

24 understand they have the right to submit directly for 


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1 the rebate and have chosen to transfer the credit in 

2 full to the contractor. 

3 SEC. 8. HOME ENERGY SAVINGS RETROFIT REBATE PRO4 GRAM. 

5 (a) IN GENERAL.—If a qualified home energy effi6 ciency retrofit of a home is carried out after January 1, 

7 2013, by a qualified contractor in accordance with this 

8 section, rebates shall be awarded for retrofits that achieve 

9 home energy savings in accordance with this Act. 

10 (b) AMOUNT OF REBATES.— 

11 (1) IN GENERAL.—Subject to subsection (e), 

12 the amount of a rebate provided to the owner of a 

13 home or a designee of the owner under this section 

14 shall be— 

15 (A) $2,000 for a 20–24 percent reduction 

16 in home energy use; 

17 (B) $3,000 for a 25–29 percent reduction 

18 in home energy use; 

19 (C) $4,000 for a 30–34 percent reduction 

20 in home energy use; 

21 (D) $5,000 for a 35–39 percent reduction 

22 in home energy use; 

23 (E) $6,000 for a 40–44 percent reduction 

24 in home energy use; 


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1 (F) $7,000 for a 45–49 percent reduction 

2 in home energy use; and 

3 (G) $8,000 for a 50 percent or more re4 duction in home energy use. 

5 (2) REBATE PAYMENT.— 

6 (A) IN GENERAL.—The rebate shall be 

7 paid, based on energy savings as calculated 

8 under subsection (e), within 60 days after— 

9 (i) submission of the required rebate 

10 forms; and 

11 (ii) the completion of any quality as12 surance assessment required under sub13 paragraph (B). 

14 (B) QUALITY ASSURANCE ASSESSMENTS.— 

15 The Secretary shall establish a schedule of re16 quired quality assurance assessments. In the 

17 first year of the program, all homes shall be re18 quired to have a quality assurance assessment. 

19 The Secretary shall establish a cost effective 

20 schedule of required quality assurance assess21 ments for subsequent years based on perform22 ance under the program. 

23 (3) LIMITATION.—In no event shall the amount 

24 of rebates under this subsection exceed— 


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1 (A) $10,000 with respect to any individual; 

2 or 

3 (B) 50 percent of the qualified home en4 ergy efficiency expenditures paid or incurred by 

5 the homeowner under subsection (c). 

6 (c) QUALIFIED HOME ENERGY EFFICIENCY EX7 PENDITURES.—For purposes of this section, the term 

8 ‘‘qualified home energy efficiency expenditures’’— 

9 (1) means any amount paid or incurred by a 

10 homeowner for a qualified home energy efficiency 

11 retrofit, including the cost of diagnostic procedures, 

12 labor, and modeling; and 

13 (2) does not include— 

14 (A) improvements to swimming pools or 

15 hot tubs; or 

16 (B) any amount paid or incurred to pur17 chase or install a biomass, wood, or wood pellet 

18 furnace, boiler, or stove, unless the system— 

19 (i) is designed to meet at least 70 per20 cent of the heating demands of the home; 

21 (ii) in the case of woodstoves, is cer22 tified by the Environmental Protection 

23 Agency; 

24 (iii) in the case of a wood stove re25 placement, replaces an existing wood stove 


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1 with a stove that is certified by the Envi2 ronmental Protection Agency, if a voucher 

3 is provided by the installer or other respon4 sible party certifying that the old stove has 

5 been removed and made inoperable; 

6 (iv) in the case of a furnace or boiler, 

7 is in a home with a distribution system 

8 (such as piping, ducts, vents, blowers, or 

9 affixed fans) that allows heat from the fur10 nace or boiler to reach all or most parts of 

11 the home; and 

12 (v) is certified by an independent test 

13 laboratory approved by the Secretary as 

14 having— 

15 (I) thermal efficiency (with a 

16 high heating value) of at least 75 per17 cent for stoves and 80 percent for fur18 naces and boilers; 

19 (II) particulate emissions of less 

20 than 3.0 grams per hour for wood 

21 stoves or pellet stoves; and 

22 (III) less than 0.07 lbs per mil23 lion BTU for outdoor boilers and fur24 naces. 


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1 (d) QUALIFIED HOME ENERGY EFFICIENCY RET2 ROFIT.— 

3 (1) IN GENERAL.—A qualified home energy ef4 ficiency retrofit is a retrofit that implements meas5 ures, during a rebate-eligible year in the existing 

6 principal residence of the homeowner which is lo7 cated in the United States, intended to reduce the 

8 energy use of such residence. A qualified home en9 ergy efficiency retrofit shall— 

10 (A) be implemented and installed by a 

11 qualified contractor; 

12 (B) install a set of measures modeled to 

13 achieve a reduction in home energy use of 20 

14 percent or more from the baseline established 

15 under subparagraph (C), using computer mod16 eling software approved under paragraph (2); 

17 (C) establish the baseline energy use as 

18 provided in subsection (e)(1)(C); 

19 (D) implement a test-out procedure, fol20 lowing guidelines of the applicable accrediting 

21 program described in section 4(a)(2) (A), (B), 

22 or (C), or equivalent guidelines approved by the 

23 Secretary for this purpose, to ensure— 

24 (i) the safe operation of all systems 

25 post retrofit; and 


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1 (ii) that all improvements are included 

2 in, and have been installed according to— 

3 (I) standards of the applicable 

4 accrediting program described in sec5 tion 4(a)(2) (A), (B), or (C); 

6 (II) manufacturers installation 

7 specifications; and 

8 (III) all applicable State and 

9 local building and mechanical codes or 

10 equivalent standards approved by the 

11 Secretary for this purpose; 

12 (E) include only measures that have an av13 erage estimated life of 5 years or more as deter14 mined by the Secretary; 

15 (F) not include any amount which is paid 

16 or incurred in connection with any expansion of 

17 the building envelope of the residence; and 

18 (G) not include improvements to swimming 

19 pools or hot tubs or any other expenditure spe20 cifically excluded by the Secretary. 

21 (2) APPROVED MODELING SOFTWARE.—The 

22 contractor shall use modeling software certified by 

23 RESNET as following the software verification test 

24 suites in section 4.2.1 of RESNET Publication No. 

25 06–001, or under equivalent standards approved by 


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1 the Secretary for this purpose, and shall have the 

2 ability at a minimum to assess the savings associ3 ated with all the measures for Home Energy Savings 

4 Retrofit Rebate Program. 

5 (e) ENERGY USE REDUCTION.— 

6 (1) DETERMINATION OF ENERGY USE REDUC7 TION.— 

8 (A) IN GENERAL.—The reduction in en9 ergy use for any residence shall be determined 

10 by modeling the annual predicted percentage re11 duction in total energy costs for heating, cool12 ing, hot water, and permanent lighting. It shall 

13 be modeled using computer modeling software 

14 approved under subsection (d)(2) and calibrated 

15 according to subparagraph (C) of this para16 graph. 

17 (B) ENERGY COSTS.—For the purposes of 

18 subparagraph (A), the energy cost per unit of 

19 fuel for each fuel type shall be determined by 

20 dividing the total actual energy bill (subtracting 

21 taxes and fees) for the residence for that fuel 

22 type for the most recent available 12-month pe23 riod by the total energy units of that fuel type 

24 used over the same period. 


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1 (C) BASELINE ENERGY USE.—For the 

2 purposes of subparagraph (A), the software 

3 model that establishes the baseline energy use 

4 and predicted energy savings shall be calibrated 

5 according to the procedures set forth in sections 

6 3 and 4 of BPI Standard BPI–2400–S–2011: 

7 Standardized Qualification of Whole House En8 ergy Savings Estimates, or an equivalent stand9 ard approved by the Secretary for this purpose. 

10 (2) DOCUMENTATION.—The percent improve11 ment in energy consumption calculated under this 

12 section shall be documented through modeling soft13 ware described in subsection (d)(2). 

14 (3) MONITORING.—The Secretary— 

15 (A) shall periodically evaluate the software 

16 packages used for determining rebates under 

17 this section; 

18 (B) shall monitor and compare the pre19 dictions to the real energy data, and based on 

20 the results, create performance criteria to allow 

21 or disallow the software; and 

22 (C) may disallow the use of software pro23 grams that improperly assess energy savings. 

24 (4) CERTIFICATE OF RETROFIT PERFORM25 ANCE.—The Secretary shall establish a system for 


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1 distribution of a certificate of performance with the 

2 issuance of a rebate that certifies the level of energy 

3 use reduction achieved by the retrofit. The certifi4 cate will be provided to the rebate recipient. If the 

5 recipient is the contractor under the terms of section 

6 7, the contractor shall remit the certificate to the 

7 homeowner, to be postmarked not later than 30 days 

8 after the contractor’s receipt of the certificate. 

9 (5) EXCEPTION.—The Secretary shall not uti10 lize the authority provided under this Act to— 

11 (A) develop, adopt, or implement a public 

12 labeling system that rates and compares the en13 ergy performance of one home with another; or 

14 (B) require the public disclosure of an en15 ergy performance evaluation or rating developed 

16 for any specific home. 

17 Nothing in this paragraph shall preclude the com18 putation, collection, or use, by the Secretary, rebate 

19 aggregators, or quality assurance providers, or the 

20 States or Indian tribes, for the purposes of gath21 ering information on the rating and comparison of 

22 the energy performance of homes with and without 

23 energy efficiency retrofits. 

24 (f) QUALIFICATION FOR REBATE.—On submission of 

25 a claim for a retrofit rebate by a rebate aggregator to the 


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1 system established under section 5, the Secretary shall 

2 provide reimbursement to the rebate aggregator, if— 

3 (1) the retrofit is a qualified home energy effi4 ciency retrofit; 

5 (2) the amount of the reimbursement is not 

6 more than the amount described in subsection (b); 

7 (3) documentation required to verify the claim 

8 is transmitted with the claim; and 

9 (4) any quality assurance assessment required 

10 under subsection (b)(2)(B) has been completed. 

11 (g) HOMEOWNER COMPLAINTS.— 

12 (1) IN GENERAL.—A homeowner may make a 

13 complaint under the quality assurance program dur14 ing the 1-year warranty period that compliance with 

15 the quality assurance requirements of this section 

16 has not been achieved. 

17 (2) VERIFICATION.— 

18 (A) IN GENERAL.—The quality assurance 

19 program shall provide that, on receiving a com20 plaint under paragraph (1), an independent 

21 quality assurance provider shall conduct field 

22 verification on the retrofit work performed by 

23 the contractor. 


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1 (B) ADMINISTRATION.—A verification 

2 under this paragraph shall be corrected in ac3 cordance with subsection (f)(4). 

4 (h) AUDITS.— 

5 (1) IN GENERAL.—On making payment for a 

6 submission under this section, the Secretary shall re7 view rebate requests to determine whether program 

8 requirements were met in all respects. 

9 (2) INCORRECT PAYMENT.—On a determination 

10 of the Secretary under paragraph (1) that a pay11 ment was made incorrectly to a party, the Secretary 

12 may— 

13 (A) recoup the amount of the incorrect 

14 payment; or 

15 (B) withhold the amount of the incorrect 

16 payment from the next payment made to the 

17 party pursuant to a subsequent request. 

18 (i) INCENTIVES.—The amount of incentives that the 

19 Secretary may provide to quality assurance providers and 

20 rebate aggregators under this Act shall be— 

21 (1) $25 for each rebate review and submission 

22 provided under the program; 

23 (2) $250 for each field inspection conducted 

24 under the program; or 


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1 (3) such other amounts as the Secretary con2 siders necessary to carry out the quality assurance 

3 provisions of this Act. 

4 SEC. 9. GRANTS TO STATES AND INDIAN TRIBES. 

5 (a) IN GENERAL.—A State or Indian tribe that re6 ceives a grant under subsection (d) shall use the grant 

7 for— 

8 (1) administrative costs; 

9 (2) oversight of quality assurance plans; 

10 (3) development of a quality assurance pro11 gram; 

12 (4) establishment and delivery of financing pi13 lots in accordance with this Act; 

14 (5) coordination with existing residential ret15 rofit programs and infrastructure development to as16 sist deployment of the Home Energy Savings Ret17 rofit Rebate Program; and 

18 (6) the costs of carrying out the responsibilities 

19 of the State or Indian tribe under the Home Energy 

20 Savings Retrofit Rebate Program. 

21 (b) INITIAL GRANTS.—Not later than 60 days after 

22 receipt of a completed application for a grant under this 

23 section, the Secretary shall either make the grant or pro24 vide to the applicant an explanation for denying the grant. 


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1 (c) INDIAN TRIBES.—The Secretary shall reserve an 

2 appropriate amount of funding to be made available to 

3 carry out this section for each fiscal year to make grants 

4 available to Indian tribes under this section. 

5 (d) STATE ALLOTMENTS.—From the amounts made 

6 available to carry out this section for each fiscal year re7 maining after the reservation required under subsection 

8 (c), the Secretary shall make grants available to States 

9 in accordance with section 15. 

10 (e) QUALITY ASSURANCE PROGRAMS.— 

11 (1) IN GENERAL.—A State or Indian tribe may 

12 use a grant made under this section to carry out a 

13 quality assurance program that is— 

14 (A) operated as part of a State energy con15 servation plan established under part D of title 

16 III of the Energy Policy and Conservation Act 

17 (42 U.S.C. 6321 et seq.); 

18 (B) managed by the office or the designee 

19 of the office that is— 

20 (i) responsible for the development of 

21 the plan under section 362 of that Act (42 

22 U.S.C. 6322); and 

23 (ii) to the maximum extent practicable 

24 conducting an existing energy efficiency 

25 program; and 


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1 (C) in the case of a grant made to an In2 dian tribe, managed by an entity designated by 

3 the Indian tribe to carry out a quality assur4 ance program or a national quality assurance 

5 program manager. 

6 (2) NONCOMPLIANCE.—If the Secretary deter7 mines that a State or Indian tribe has not provided 

8 or cannot provide adequate oversight over a quality 

9 assurance program to ensure compliance with this 

10 Act, the Secretary may— 

11 (A) withhold further quality assurance 

12 funds from the State or Indian tribe; and 

13 (B) require that quality assurance pro14 viders operating in the State or by the Indian 

15 tribe be overseen by a national quality assur16 ance program manager selected by the Sec17 retary. 

18 (f) IMPLEMENTATION.—A State or Indian tribe that 

19 receives a grant under this section may implement a qual20 ity assurance program through the State, the Indian tribe, 

21 or a third party designated by the State or Indian tribe, 

22 including— 

23 (1) an energy service company; 

24 (2) an electric utility; 

25 (3) a natural gas utility; 


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1 (4) a third-party administrator designated by 

2 the State or Indian tribe; or 

3 (5) a unit of local government. 

4 (g) PUBLIC-PRIVATE PARTNERSHIPS.—A State or 

5 Indian tribe that receives a grant under this section is en6 couraged to form partnerships with utilities, energy serv7 ice companies, and other entities— 

8 (1) to assist in marketing a program; 

9 (2) to facilitate consumer financing; 

10 (3) to assist in implementation of the Home 

11 Energy Savings Retrofit Rebate Program, including 

12 installation of qualified home energy efficiency retro13 fits; and 

14 (4) to assist in implementing quality assurance 

15 programs. 

16 (h) COORDINATION OF REBATE AND EXISTING

17 STATE-SPONSORED PROGRAMS.— 

18 (1) IN GENERAL.—A State or Indian tribe 

19 shall, to the maximum extent practicable, prevent 

20 duplication through coordination of a program au21 thorized under this Act with— 

22 (A) the Energy Star appliance rebates pro23 gram authorized under the American Recovery 

24 and Reinvestment Act of 2009 (Public Law 

25 111–5; 123; Stat. 115); and 


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1 (B) comparable programs planned or oper2 ated by States, political subdivisions, electric 

3 and natural gas utilities, Federal power mar4 keting administrations, and Indian tribes. 

5 (2) EXISTING PROGRAMS.—In carrying out this 

6 subsection, a State or Indian tribe shall— 

7 (A) give priority to— 

8 (i) comprehensive retrofit programs in 

9 existence on the date of enactment of this 

10 Act, including programs under the super11 vision of State utility regulators; and 

12 (ii) using funds made available under 

13 this Act to enhance and extend existing 

14 programs; and 

15 (B) seek to enhance and extend existing 

16 programs by coordinating with administrators 

17 of the programs. 

18 SEC. 10. QUALITY ASSURANCE PROGRAM. 

19 (a) IN GENERAL.—As part of a grant application de20 scribed in section 9(b), a State or Indian tribe shall submit 

21 to the Secretary a plan to implement a quality assurance 

22 program that covers all federally assisted residential effi23 ciency retrofit work administered, supervised, or spon24 sored by the State or Indian tribe. 


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1 (b) IMPLEMENTATION.—The State or Indian tribe 

2 shall— 

3 (1) develop a quality assurance program in con4 sultation with industry stakeholders, including rep5 resentatives of efficiency program managers, con6 tractors, and environmental, energy efficiency, and 

7 labor organizations; and 

8 (2) implement the quality assurance program 

9 not later than 180 days after receipt of a grant 

10 under section 9. 

11 (c) COMPONENTS.—The quality assurance program 

12 established under this section shall include— 

13 (1) maintenance of a list of qualified contrac14 tors authorized to perform such retrofit work as de15 scribed in section 4; 

16 (2) targets and realistic plans for— 

17 (A) the recruitment of small minority18 owned or women-owned business enterprises; 

19 and 

20 (B) the employment of graduates of train21 ing programs that primarily serve low-income 

22 populations with a median income that is below 

23 200 percent of the poverty line (as defined in 

24 section 673(2) of the Community Services 

25 Block Grant Act (42 U.S.C. 9902(2)), including 


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1 any revision required by that section) by par2 ticipating contractors; and 

3 (3) a plan to link workforce training for home 

4 energy efficiency retrofits with training for the 

5 broader range of skills and occupations in construc6 tion or emerging clean energy industries. 

7 (d) NONCOMPLIANCE.—If the Secretary determines 

8 that a State or Indian tribe has not taken the steps re9 quired under this section, the Secretary shall provide to 

10 the State or Indian tribe a period of at least 90 days to 

11 comply before suspending the participation of the State 

12 or Indian tribe in the program. 

13 SEC. 11. EVALUATION REPORT TO CONGRESS. 

14 (a) IN GENERAL.—Not later than 1 year after the 

15 date of enactment of this Act and annually thereafter until 

16 the termination of the program under this Act, the Sec17 retary shall submit to the Committee on Energy and Nat18 ural Resources of the Senate and the Committee on En19 ergy and Commerce of the House of Representatives a re20 port on the use of funds under this Act. 

21 (b) CONTENTS.—The report submitted under sub22 section (a) shall evaluate— 

23 (1) how many eligible participants have partici24 pated in the program; 


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1 (2) how many jobs have been created through 

2 the program, directly and indirectly; 

3 (3) what steps could be taken to promote fur4 ther deployment of energy efficiency and renewable 

5 energy retrofits; 

6 (4) the quantity of verifiable energy savings, 

7 homeowner energy bill savings, and other benefits of 

8 the program; 

9 (5) any waste, fraud, or abuse with respect to 

10 such funds; and 

11 (6) any other information the Secretary con12 siders appropriate. 

13 (c) NONCOMPLIANCE.—The Secretary shall require 

14 rebate aggregators, States, and Indian tribes to provide 

15 the information required to enable the Secretary to carry 

16 out this section. If the Secretary determines that a rebate 

17 aggregator, State, or Indian tribe has not provided such 

18 information on a timely basis, the Secretary shall provide 

19 to the rebate aggregator, State, or Indian tribe a period 

20 of at least 90 days to provide any necessary information, 

21 subject to withholding of funds or reduction of future 

22 grant amounts, or decertification of rebate aggregators. 

23 SEC. 12. ADMINISTRATION. 

24 (a) IN GENERAL.—Subject to section 15(b), not later 

25 than 30 days after the date of enactment of this Act, the 


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1 Secretary shall provide such administrative and technical 

2 support to rebate aggregators, States, and Indian tribes 

3 as is necessary to carry out this Act. 

4 (b) APPOINTMENT OF PERSONNEL.—Notwith5 standing the provisions of title 5, United States Code, gov6 erning appointments in the competitive service and Gen7 eral Schedule classifications and pay rates, the Secretary 

8 may appoint such professional and administrative per9 sonnel as the Secretary considers necessary to carry out 

10 this Act. 

11 (c) RATE OF PAY.—The rate of pay for a person ap12 pointed under subsection (b) shall not exceed the max13 imum rate payable for GS–15 of the General Schedule 

14 under chapter 53 of title 5, United States Code. 

15 (d) CONSULTANTS.—Notwithstanding section 303 of 

16 the Federal Property and Administrative Services Act of 

17 1949 (41 U.S.C. 253), the Secretary may retain such con18 sultants on a noncompetitive basis as the Secretary con19 siders necessary to carry out this Act. 

20 (e) CONTRACTING.—In carrying out this Act, the 

21 Secretary may waive all or part of any provision of the 

22 Competition in Contracting Act of 1984 (Public Law 98– 

23 369; 98 Stat. 1175), an amendment made by that Act, 

24 or the Federal Acquisition Regulation on a determination 


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1 that circumstances make compliance with the provisions 

2 contrary to the public interest. 

3 (f) INFORMATION COLLECTION.—Chapter 35 of title 

4 44, United States Code, shall not apply to any information 

5 collection requirement necessary for the implementation of 

6 the Home Energy Savings Retrofit Rebate Program. The 

7 Secretary shall establish, and make available to home8 owners seeking a rebate under this Act, optional release 

9 forms authorizing access by the Secretary, BPI, and 

10 RESNET to information in the utility bills of the home11 owner. 

12 SEC. 13. TREATMENT OF REBATES. 

13 (a) IN GENERAL.—For purposes of the Internal Rev14 enue Code of 1986, rebates received for a qualified home 

15 energy efficiency retrofit under this Act— 

16 (1) shall not be considered taxable income to a 

17 homeowner; and 

18 (2) shall prohibit the consumer from applying 

19 for a tax credit allowed under section 25C or 25D 

20 of that Code for the same retrofit work performed 

21 in the home of the homeowner. 

22 (b) NOTICE.— 

23 (1) IN GENERAL.—A participating contractor 

24 shall provide notice to a homeowner of the provisions 


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1 of subsection (a) before eligible work is performed in 

2 the home of the homeowner. 

3 (2) NOTICE IN REBATE FORM.—A homeowner 

4 shall be notified of the provisions of subsection (a) 

5 in the appropriate rebate form developed by the Sec6 retary, in consultation with the Secretary of the 

7 Treasury. 

8 SEC. 14. PENALTIES. 

9 (a) IN GENERAL.—It shall be unlawful for any per10 son to violate this Act (including any regulation issued 

11 under this Act), other than a violation as the result of 

12 a clerical error. 

13 (b) CIVIL PENALTY.—In addition to any penalty ap14 plicable under other Federal law for fraud or other crimes, 

15 any person who commits a violation of this Act shall be 

16 liable to the United States for a civil penalty in an amount 

17 that is not more than the higher of— 

18 (1) $15,000 for each violation; or 

19 (2) 3 times the value of any associated rebate 

20 under this Act. 

21 (c) ADMINISTRATION.—The Secretary may— 

22 (1) assess and compromise a penalty imposed 

23 under subsection (b); and 

24 (2) require from any entity the records and in25 spections necessary to enforce this Act. 


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1 SEC. 15. FUNDING. 

2 (a) AUTHORIZATION OF APPROPRIATIONS.— 

3 (1) IN GENERAL.—There are authorized to be 

4 appropriated to the Secretary to carry out this Act 

5 $500,000,000 for each of fiscal years 2013 through 

6 2016, to remain available until expended. 

7 (2) MAINTENANCE OF FUNDING.—Funds pro8 vided under this section shall supplement and not 

9 supplant any Federal and State funding provided to 

10 carry out energy efficiency programs in existence on 

11 the date of enactment of this Act. 

12 (b) GRANTS TO STATES.— 

13 (1) IN GENERAL.—Of the amounts provided 

14 under subsection (a), not more than 6 percent shall 

15 be used to carry out section 9. 

16 (2) DISTRIBUTION TO STATE ENERGY OF17 FICES.—Not later than 45 days after the date of en18 actment of this Act, the Secretary shall determine a 

19 formula to provide funds described in paragraph (1) 

20 to State energy offices, in accordance with the allo21 cation formula for State energy conservation plans 

22 established under part D of title III of the Energy 

23 Policy and Conservation Act (42 U.S.C. 6321 et 

24 seq.). 

25 (c) TRACKING OF REBATES AND EXPENDITURES.— 

26 Of the amount provided under subsection (a), not more 


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1 than 2.5 percent are authorized to be appropriated to the 

2 Secretary to be used for costs associated with tracking re3 bates and expenditures through the Federal Rebate Proc4 essing System under this Act, technical assistance to 

5 States, and related administrative costs incurred by the 

6 Secretary. 

7 (d) PROGRAM REVIEW AND BACKSTOP FUNDING.— 

8 (1) IN GENERAL.—Not later than 180 days 

9 after the date of enactment of this Act, the Sec10 retary shall perform a State-by-State analysis and 

11 review the distribution of Home Energy Savings 

12 Retrofit Rebates under this Act. 

13 (2) ADJUSTMENT.—The Secretary may allocate 

14 technical assistance funding to assist States that 

15 have not sufficiently benefitted from the Home En16 ergy Savings Retrofit Rebate Program. 

17 (e) RETURN OF UNDISBURSED FUNDS.—If the Sec18 retary has not disbursed all the funds available for rebates 

19 under the Home Energy Savings Retrofit Rebate Program 

20 by September 30, 2017, any undisbursed funds shall be 

21 returned to the Treasury. 

Æ 


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