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[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2128 Introduced in House (IH)]

113th CONGRESS
  1st Session
                                H. R. 2128

  To provide for the establishment of a Home Energy Savings Retrofit 
                Rebate Program, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                              May 23, 2013

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.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Home Owner Managing Energy Savings 
Act of 2013'' or the ``HOMES Act''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) BPI.--The term ``BPI'' means the Building Performance 
        Institute.
            (2) Electric utility.--The term ``electric utility'' means 
        any company, person, cooperative, State, or Indian tribe agency 
        that delivers or sells electric energy at retail, including 
        nonregulated utilities, utilities that are subject to State or 
        Indian tribe rate regulation, and Federal power marketing 
        administrations.
            (3) Federal rebate processing system.--The term ``Federal 
        Rebate Processing System'' means the Federal Rebate Processing 
        System established under section 3(b).
            (4) Home.--The term ``home'' means a residential dwelling 
        unit in a building with no more than 4 dwelling units that--
                    (A) is located in the United States;
                    (B) was constructed before the date of enactment of 
                this Act; and
                    (C) is occupied at least 6 months out of each of 
                the 2 years immediately preceding the application for a 
                rebate under this Act.
            (5) Home energy savings retrofit rebate program.--The term 
        ``Home Energy Savings Retrofit Rebate Program'' means the Home 
        Energy Savings Retrofit Rebate Program established under 
        section 3(a).
            (6) Homeowner.--The term ``homeowner'' means the owner of 
        an owner-occupied home or a tenant-occupied home.
            (7) 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).
            (8) Natural gas utility.--The term ``natural gas utility'' 
        means any company, person, cooperative, State or local 
        governmental agency or instrumentality, or Indian tribe that 
        transports, distributes, or sells natural gas at retail.
            (9) Qualified contractor.--The term ``qualified 
        contractor'' means a residential energy efficiency contractor 
        that meets minimum applicable requirements established under 
        section 4.
            (10) Qualified home energy efficiency retrofit.--The term 
        ``qualified home energy efficiency retrofit'' means a retrofit 
        described in section 8(d).
            (11) Quality assurance program.--The term ``quality 
        assurance program'' means a program established under this Act, 
        or recognized by the Secretary under this Act, to oversee the 
        delivery of home efficiency retrofit programs to ensure that 
        work is performed in accordance with standards and criteria 
        established under this Act. Delivery of retrofit programs 
        includes delivery of quality assurance reviews of rebate 
        applications and field inspections.
            (12) Quality assurance provider.--The term ``quality 
        assurance provider'' means any entity that meets the minimum 
        applicable requirements established under section 6(b).
            (13) Rebate aggregator.--The term ``rebate aggregator'' 
        means an entity that meets the requirements of section 5.
            (14) Resnet.--The term ``RESNET'' means the Residential 
        Energy Services Network, which is a nonprofit certification and 
        standard setting organization for home energy raters that 
        evaluate the energy performance of a home and Energy Smart 
        Contractors that make energy improvements to the home.
            (15) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.
            (16) State.--The term ``State'' means--
                    (A) a State;
                    (B) the District of Columbia;
                    (C) the Commonwealth of Puerto Rico;
                    (D) Guam;
                    (E) American Samoa;
                    (F) the Commonwealth of the Northern Mariana 
                Islands;
                    (G) the United States Virgin Islands; and
                    (H) any other territory or possession of the United 
                States.

SEC. 3. HOME ENERGY SAVINGS RETROFIT REBATE PROGRAM.

    (a) In General.--The Secretary shall establish the Home Energy 
Savings Retrofit Rebate Program.
    (b) Federal Rebate Processing System.--
            (1) In general.--Not later than 180 days after the date of 
        enactment of this Act, the Secretary, in consultation with the 
        Secretary of the Treasury, shall--
                    (A) establish a Federal Rebate Processing System 
                which shall serve as a database and information 
                technology system that will allow rebate aggregators to 
                submit claims for reimbursement using standard data 
                protocols;
                    (B) establish a national retrofit Web site that 
                provides information on the Home Energy Savings 
                Retrofit Rebate Program, including--
                            (i) how to determine whether particular 
                        efficiency measures are eligible for rebates; 
                        and
                            (ii) how to participate in the program; and
                    (C) make available model forms for demonstrating 
                compliance with all applicable requirements of this 
                Act, which shall be required to be submitted by--
                            (i) each qualified contractor on completion 
                        of an eligible home energy retrofit; and
                            (ii) each quality assurance provider on 
                        completion of field verification.
            (2) Model forms.--In carrying out paragraph (1)(C), the 
        Secretary shall consider the model forms developed by the 
        National Home Performance Council, Inc. If the Secretary does 
        not adopt these forms, the Secretary shall convene a group of 
        stakeholders that are directly and materially affected by the 
        Program to develop the final forms.

SEC. 4. CONTRACTORS.

    (a) Contractor Qualifications.--A contractor may perform retrofit 
work under the Home Energy Savings Retrofit Rebate Program in a State 
if the contractor--
            (1) meets all applicable contractor licensing requirements 
        established by the State;
            (2) is--
                    (A) accredited by--
                            (i) BPI as an Accredited Contractor;
                            (ii) RESNET as an Energy Smart Home 
                        Performance Team;
                            (iii) the Air Conditioning Contractors of 
                        America as a QA Home Performance Contractor;
                            (iv) a State-based certification program 
                        established to carry out State energy, clean 
                        air, or environmental programs; or
                            (v) an equivalent certification program 
                        approved by the Secretary for this purpose; or
                    (B) the general contractor, that--
                            (i) subjects the energy efficiency retrofit 
                        to a review and quality assurance inspection by 
                        a third party approved by the Department of 
                        Energy for performing quality assurance 
                        inspections; and
                            (ii) employs, or otherwise utilizes 
                        subcontractors who employ, individuals to 
                        complete individual or comprehensive scopes of 
                        work related to the energy efficiency retrofit 
                        who are certified by--
                                    (I) BPI;
                                    (II) RESNET;
                                    (III) North American Technical 
                                Excellence;
                                    (IV) the Air Conditioning 
                                Contractors of America;
                                    (V) the Laborers International 
                                Union of North America;
                                    (VI) a regional or State Department 
                                of Energy Weatherization Training 
                                Center; or
                                    (VII) other contractor or worker 
                                certification programs approved by the 
                                Secretary;
            (3) holds insurance coverage of at least $1,000,000 for 
        general liability, and for such other purposes and in such 
        other amounts as required by the State; and
            (4) provides warranties to the homeowner that completed 
        work will--
                    (A) be free of significant defects;
                    (B) be installed in accordance with the 
                specifications of the manufacturer, and all applicable 
                State and local codes; and
                    (C) perform properly for a period of at least 1 
                year after the date of completion of the work.
    (b) Agreement Between Contractor and Homeowner.--A contractor who 
performs retrofit work under the Home Energy Savings Retrofit Rebate 
Program must sign a written or electronic contract with the homeowner 
that includes--
            (1) an agreement to not increase the cost of the home 
        improvement as a result of the rebates received under this Act 
        with respect to physical improvements made to the home;
            (2) if the contractor and homeowner choose the transferable 
        rebate option authorized under section 7, an agreement to 
        provide the homeowner, before a contract is executed between 
        the contractor and the homeowner covering the eligible work, a 
        notice of the rebate amount the contractor intends to apply for 
        with respect to eligible work under this Act; and
            (3) an acknowledgement that the homeowner--
                    (A) has reviewed the national retrofit Web site for 
                the program;
                    (B) understands the scope of work intended to be 
                completed and that such work may be eligible for a 
                rebate under the program; and
                    (C) understands that the rebate funds are fully 
                subject to availability from the Department or Rebate 
                Aggregator and not within the control of the 
                contractor.

SEC. 5. REBATE AGGREGATORS.

    (a) In General.--The Secretary shall develop a network of rebate 
aggregators or a national rebate aggregator that can facilitate the 
delivery of rebates to participating homeowners or contractors by--
            (1) reviewing the proposed rebate application for 
        completeness and accuracy;
            (2) reviewing measures for eligibility in accordance with 
        this Act;
            (3) providing data to the Federal Rebate Processing System 
        consistent with data protocols established by the Secretary; 
        and
            (4) as soon as practicable but not later than 30 days after 
        the date of receipt, distributing funds received from the 
        Department of Energy to homeowners or contractors.
    (b) Eligibility.--To be eligible to apply to the Secretary for 
approval as a rebate aggregator, an entity shall be--
            (1) a Home Performance with Energy Star program sponsor;
            (2) an entity administering a residential or building 
        energy efficiency retrofit program, solar program, or other 
        such program impacting energy efficiency in homes established 
        or approved by a State or local government;
            (3) a Federal power marketing administration, an electric 
        utility, or a natural gas utility that has--
                    (A) a residential energy efficiency retrofit 
                program; and
                    (B) a quality assurance provider or provider 
                network; or
            (4) an entity that demonstrates to the Secretary that the 
        entity can perform the functions of a rebate aggregator, 
        without disrupting existing residential retrofits in the States 
        that are incorporating the Home Energy Savings Retrofit Rebate 
        Program, including demonstration of--
                    (A) the capability to provide electronic data to 
                the Federal Rebate Processing System;
                    (B) a financial system that is capable of tracking 
                the distribution of rebates to participating 
                contractors; and
                    (C) coordination and cooperation by the entity with 
                the appropriate State energy office regarding 
                participation in the existing energy efficiency 
                programs that will be delivering the Home Energy 
                Savings Retrofit Rebate Program.
    (c) Public Utility Commission Efficiency Targets.--The Secretary 
shall--
            (1) develop guidelines for States and local governments to 
        use to allow utilities participating as rebate aggregators to 
        count the energy savings from the participation of the 
        utilities toward State and local level energy savings targets; 
        and
            (2) work with States and local governments to assist in the 
        adoption of those guidelines for the purposes and duration of 
        the Home Energy Savings Retrofit Rebate Program.

SEC. 6. QUALITY ASSURANCE PROVIDERS.

    (a) Qualifications.--An entity shall be considered a quality 
assurance provider under this Act only if the entity is qualified 
through--
            (1) the BPI;
            (2) RESNET; or
            (3) any other entity designated by the Secretary such as a 
        State or local government or a residential energy efficiency 
        retrofit program approved by a State or local government.
    (b) Functions.--A quality assurance provider shall--
            (1) be independent of the contractor;
            (2) confirm that contractors or installers of home energy 
        efficiency retrofits meet the qualification requirements of 
        this Act; and
            (3) perform field inspections to confirm the compliance of 
        the retrofit work and the simulated energy savings under the 
        Home Energy Savings Retrofit Rebate Program.

SEC. 7. TRANSFERABILITY OF HOME ENERGY SAVINGS REBATE.

    A homeowner may transfer the rebate provided under the Home Energy 
Savings Retrofit Rebate Program to the contractor performing the 
retrofit work if the contractor completes a form that accompanies the 
rebate form developed under section 3(b). This form, to be made 
publically available by the Secretary 90 days after the date of 
enactment of this Act, must be approved by paper signature or 
electronically by the homeowner and include--
            (1) the amount of the rebate the contractor will submit for 
        disbursement to the contractor;
            (2) the level of energy use reduction of the home retrofit 
        certified under section 8(e)(4), and assurance that the 
        contractor will provide the certificate to the homeowner within 
        30 days of receipt from the Department of Energy;
            (3) a documentation report of the retrofit performed and 
        paid by the homeowner; and
            (4) confirmation from the homeowner that they understand 
        they have the right to submit directly for the rebate and have 
        chosen to transfer the credit in full to the contractor.

SEC. 8. HOME ENERGY SAVINGS RETROFIT REBATE PROGRAM.

    (a) In General.--If a qualified home energy efficiency retrofit of 
a home is carried out after January 1, 2014, by a qualified contractor 
in accordance with this section, rebates shall be awarded for retrofits 
that achieve home energy savings in accordance with this Act.
    (b) Amount of Rebates.--
            (1) In general.--Subject to subsection (e), the amount of a 
        rebate provided to the owner of a home or a designee of the 
        owner under this section shall be--
                    (A) $2,000 for a 20-24 percent reduction in home 
                energy use;
                    (B) $3,000 for a 25-29 percent reduction in home 
                energy use;
                    (C) $4,000 for a 30-34 percent reduction in home 
                energy use;
                    (D) $5,000 for a 35-39 percent reduction in home 
                energy use;
                    (E) $6,000 for a 40-44 percent reduction in home 
                energy use;
                    (F) $7,000 for a 45-49 percent reduction in home 
                energy use; and
                    (G) $8,000 for a 50 percent or more reduction in 
                home energy use.
            (2) Rebate payment.--
                    (A) In general.--The rebate shall be paid, based on 
                energy savings as calculated under subsection (e), 
                within 60 days after--
                            (i) submission of the required rebate 
                        forms; and
                            (ii) the completion of any quality 
                        assurance assessment required under 
                        subparagraph (B).
                    (B) Quality assurance assessments.--The Secretary 
                shall establish a schedule of required quality 
                assurance assessments. In the first year of the 
                program, the first 10 homes retrofit by each contractor 
                and then 60 percent of all future homes shall be 
                required to have a quality assurance assessment. The 
                Secretary shall establish a cost effective schedule of 
                required quality assurance assessments for subsequent 
                years based on performance under the program.
            (3) Limitation.--In no event shall the amount of rebates 
        under this subsection exceed--
                    (A) $10,000 with respect to any individual; or
                    (B) 50 percent of the qualified home energy 
                efficiency expenditures paid or incurred by the 
                homeowner under subsection (c).
    (c) Qualified Home Energy Efficiency Expenditures.--For purposes of 
this section, the term ``qualified home energy efficiency 
expenditures''--
            (1) means any amount paid or incurred by a homeowner for a 
        qualified home energy efficiency retrofit, including the cost 
        of diagnostic procedures, labor, reporting, and modeling; and
            (2) does not include--
                    (A) improvements to swimming pools or hot tubs; or
                    (B) any amount paid or incurred to purchase or 
                install a biomass, wood, or wood pellet furnace, 
                boiler, or stove, unless the system--
                            (i) is designed to meet at least 70 percent 
                        of the heating demands of the home;
                            (ii) in the case of woodstoves, is 
                        certified by the Environmental Protection 
                        Agency;
                            (iii) in the case of a wood stove 
                        replacement, replaces an existing wood stove 
                        with a stove that is certified by the 
                        Environmental Protection Agency, if a voucher 
                        is provided by the installer or other 
                        responsible party certifying that the old stove 
                        has been removed and made inoperable;
                            (iv) in the case of a furnace or boiler, is 
                        in a home with a distribution system (such as 
                        piping, ducts, vents, blowers, or affixed fans) 
                        that allows heat from the furnace or boiler to 
                        reach all or most parts of the home; and
                            (v) is certified by an independent test 
                        laboratory approved by the Secretary as 
                        having--
                                    (I) thermal efficiency (with a high 
                                heating value) of at least 75 percent 
                                for stoves and 80 percent for furnaces 
                                and boilers;
                                    (II) particulate emissions of less 
                                than 3.0 grams per hour for wood stoves 
                                or pellet stoves; and
                                    (III) less than 0.07 lbs per 
                                million BTU for outdoor boilers and 
                                furnaces.
    (d) Qualified Home Energy Efficiency Retrofit.--
            (1) In general.--A qualified home energy efficiency 
        retrofit is a retrofit that implements measures, during a 
        rebate-eligible year in the existing principal residence of the 
        homeowner which is located in the United States, intended to 
        reduce the energy use of such residence. A qualified home 
        energy efficiency retrofit shall--
                    (A) be implemented and installed by a qualified 
                contractor;
                    (B) install a set of measures modeled to achieve a 
                reduction in home energy use of 20 percent or more from 
                the baseline established under subparagraph (C), using 
                computer modeling software approved under paragraph 
                (2);
                    (C) establish the baseline energy use as provided 
                in subsection (e)(1)(C);
                    (D) implement a test-out procedure, following 
                guidelines of the applicable accrediting program 
                described in section 4(a)(2) (A), (B), or (C), or 
                equivalent guidelines approved by the Secretary for 
                this purpose, to ensure--
                            (i) the safe operation of all systems post 
                        retrofit; and
                            (ii) that all improvements are included in, 
                        and have been installed according to--
                                    (I) standards of the applicable 
                                accrediting program described in 
                                section 4(a)(2) (A), (B), or (C);
                                    (II) manufacturers installation 
                                specifications; and
                                    (III) all applicable State and 
                                local codes or equivalent standards 
                                approved by the Secretary for this 
                                purpose;
                    (E) include only measures that have an average 
                estimated life of 5 years or more as determined by the 
                Secretary;
                    (F) not include any amount which is paid or 
                incurred in connection with any expansion of the square 
                footage of the residence; and
                    (G) not include improvements to swimming pools or 
                hot tubs or any other expenditure specifically excluded 
                by the Secretary.
            (2) Approved modeling software.--The contractor shall use 
        modeling software certified by RESNET as following the software 
        verification test suites in section 4.2.1 of RESNET Publication 
        No. 13-001, or under equivalent standards approved by the 
        Secretary for this purpose, and shall have the ability at a 
        minimum to assess the savings associated with all the measures 
        for Home Energy Savings Retrofit Rebate Program.
            (3) Exception.--For purposes of paragraph (1)(D)(ii), 
        installation of gas-fired appliances shall comply with 
        requirements of the National Fuel Gas Code (ANSI Z223.1/NFPA 
        54) and applicable installation requirements in lieu of 
        performance of combustion tests outside those required by the 
        National Fuel Gas Code (2012 Edition) and the International 
        Fuel Gas Code (2012 Edition).
    (e) Energy Use Reduction.--
            (1) Determination of energy use reduction.--
                    (A) In general.--The reduction in energy use for 
                any residence shall be determined by modeling the 
                annual predicted percentage reduction in total energy 
                consumption or costs for heating, cooling, hot water, 
                and permanent lighting. It shall be modeled using 
                computer modeling software approved under subsection 
                (d)(2) and calibrated according to subparagraph (C) of 
                this paragraph.
                    (B) Energy costs.--For the purposes of subparagraph 
                (A), the energy cost per unit of fuel for each fuel 
                type shall be determined by dividing the total actual 
                energy bill (subtracting taxes and fees) for the 
                residence for that fuel type for the most recent 
                available 12-month period by the total energy units of 
                that fuel type used over the same period.
                    (C) Baseline energy use.--For the purposes of 
                subparagraph (A), the software model that establishes 
                the baseline energy use and predicted energy savings 
                shall be calibrated according to the procedures set 
                forth in sections 3 and 4 of ANSI/BPI Standard BPI-
                2400-S-2012: Standard Practice for Standardized 
                Qualification of Whole-House Energy Savings Predictions 
                by Calibration to Energy Use History, or an equivalent 
                standard approved by the Secretary for this purpose.
            (2) Documentation.--The percent improvement in energy 
        consumption calculated under this section shall be documented 
        through modeling software described in subsection (d)(2).
            (3) Monitoring.--The Secretary--
                    (A) shall periodically evaluate the software 
                packages used for determining rebates under this 
                section;
                    (B) shall monitor and compare the predictions to 
                the real energy data, and based on the results, create 
                performance criteria to allow or disallow the software; 
                and
                    (C) may disallow the use of software programs that 
                improperly assess energy savings.
            (4) Certificate of retrofit performance.--The Secretary 
        shall establish a system for distribution of a certificate of 
        performance with the issuance of a rebate that certifies the 
        predicted level of energy use reduction achieved by the 
        retrofit. The certificate will be provided to the rebate 
        recipient. If the recipient is the contractor under the terms 
        of section 7, the contractor shall remit the certificate to the 
        homeowner, to be delivered or postmarked not later than 30 days 
        after the contractor's receipt of the certificate.
            (5) Exception.--The Secretary shall not utilize the 
        authority provided under this Act to--
                    (A) develop, adopt, or implement a public labeling 
                system that rates and compares the energy performance 
                of one home with another; or
                    (B) require the public disclosure of an energy 
                performance evaluation or rating developed for any 
                specific home.
        Nothing in this paragraph shall preclude the computation, 
        collection, or use, by the Secretary, rebate aggregators, or 
        quality assurance providers, or the States or Indian tribes, 
        for the purposes of gathering information on the rating and 
        comparison of the energy performance of homes with and without 
        energy efficiency retrofits.
    (f) Qualification for Rebate.--On submission of a claim for a 
retrofit rebate by a rebate aggregator to the system established under 
section 5, the Secretary shall provide reimbursement to the rebate 
aggregator, if--
            (1) the retrofit is a qualified home energy efficiency 
        retrofit;
            (2) the amount of the reimbursement is not more than the 
        amount described in subsection (b);
            (3) documentation required to verify the claim is 
        transmitted with the claim; and
            (4) any quality assurance assessment required under 
        subsection (b)(2)(B) has been completed.
    (g) Homeowner Complaints.--
            (1) In general.--A homeowner may make a complaint under the 
        quality assurance program during the 1-year warranty period 
        that compliance with the quality assurance requirements of this 
        section has not been achieved.
            (2) Verification.--
                    (A) In general.--The quality assurance program 
                shall provide that, on receiving a complaint under 
                paragraph (1), an independent quality assurance 
                provider shall conduct field verification on the 
                retrofit work performed by the contractor.
                    (B) Administration.--A verification under this 
                paragraph shall be corrected in accordance with 
                subsection (f)(4).
    (h) Audits.--
            (1) In general.--On making payment for a submission under 
        this section, the Secretary shall review rebate requests to 
        determine whether program requirements were met in all 
        respects.
            (2) Incorrect payment.--On a determination of the Secretary 
        under paragraph (1) that a payment was made incorrectly to a 
        party, the Secretary may--
                    (A) recoup the amount of the incorrect payment; or
                    (B) withhold the amount of the incorrect payment 
                from the next payment made to the party pursuant to a 
                subsequent request.
    (i) Incentives.--The amount of incentives that the Secretary may 
provide to quality assurance providers and rebate aggregators under 
this Act shall be--
            (1) $25 for each rebate review and submission provided 
        under the program;
            (2) $250 for each field inspection conducted under the 
        program; or
            (3) such other amounts as the Secretary considers necessary 
        to carry out the quality assurance provisions of this Act.

SEC. 9. GRANTS TO STATES AND INDIAN TRIBES.

    (a) In General.--A State or Indian tribe that receives a grant 
under subsection (d) shall be permitted to use the grant for--
            (1) administrative costs;
            (2) oversight of quality assurance plans;
            (3) development of a quality assurance program;
            (4) establishment and delivery of financing pilots in 
        accordance with this Act;
            (5) coordination with existing residential retrofit 
        programs and infrastructure development to assist deployment of 
        the Home Energy Savings Retrofit Rebate Program; and
            (6) the costs of carrying out the responsibilities of the 
        State or Indian tribe under the Home Energy Savings Retrofit 
        Rebate Program.
    (b) Initial Grants.--Not later than 60 days after receipt of a 
completed application for a grant under this section, the Secretary 
shall either make the grant or provide to the applicant an explanation 
for denying the grant.
    (c) Indian Tribes.--The Secretary shall reserve an appropriate 
amount of funding to be made available to carry out this section for 
each fiscal year to make grants available to Indian tribes under this 
section.
    (d) State Allotments.--From the amounts made available to carry out 
this section for each fiscal year remaining after the reservation 
required under subsection (c), the Secretary shall make grants 
available to States in accordance with section 15.
    (e) Quality Assurance Programs.--
            (1) In general.--A State or Indian tribe may use a grant 
        made under this section to carry out a quality assurance 
        program that is--
                    (A) operated as part of a State or local government 
                approved energy conservation plan established under 
                part D of title III of the Energy Policy and 
                Conservation Act (42 U.S.C. 6321 et seq.);
                    (B) managed by the office or the designee of the 
                office that is--
                            (i) responsible for the development of the 
                        plan under section 362 of that Act (42 U.S.C. 
                        6322); and
                            (ii) to the maximum extent practicable 
                        conducting an existing energy efficiency 
                        program; and
                    (C) in the case of a grant made to an Indian tribe, 
                managed by an entity designated by the Indian tribe to 
                carry out a quality assurance program or a national 
                quality assurance program manager.
            (2) Noncompliance.--If the Secretary determines that a 
        State or Indian tribe has not provided or cannot provide 
        adequate oversight over a quality assurance program to ensure 
        compliance with this Act, the Secretary may--
                    (A) withhold further quality assurance funds from 
                the State or Indian tribe; and
                    (B) require that quality assurance providers 
                operating in the State or by the Indian tribe be 
                overseen by a national quality assurance program 
                manager selected by the Secretary.
    (f) Implementation.--A State or Indian tribe that receives a grant 
under this section may implement a quality assurance program through 
the State, the Indian tribe, or a third party designated by the State 
or Indian tribe, including--
            (1) an energy service company;
            (2) an electric utility;
            (3) a natural gas utility;
            (4) a third-party administrator designated by the State or 
        Indian tribe; or
            (5) a unit of local government.
    (g) Public-Private Partnerships.--A State or Indian tribe that 
receives a grant under this section is encouraged to form partnerships 
with utilities, energy service companies, and other entities--
            (1) to assist in marketing a program;
            (2) to facilitate consumer financing;
            (3) to assist in implementation of the Home Energy Savings 
        Retrofit Rebate Program, including installation of qualified 
        home energy efficiency retrofits; and
            (4) to assist in implementing quality assurance programs.
    (h) Coordination of Rebate and Existing State-Sponsored Programs.--
            (1) In general.--A State or Indian tribe shall, to the 
        maximum extent practicable, prevent duplication through 
        coordination of a program authorized under this Act with--
                    (A) the Energy Star appliance rebates program 
                authorized under the American Recovery and Reinvestment 
                Act of 2009 (Public Law 111-5; 123; Stat. 115); and
                    (B) comparable programs planned or operated by 
                States, political subdivisions, electric and natural 
                gas utilities, Federal power marketing administrations, 
                and Indian tribes.
            (2) Existing programs.--In carrying out this subsection, a 
        State or Indian tribe shall--
                    (A) give priority to--
                            (i) comprehensive retrofit programs in 
                        existence on the date of enactment of this Act, 
                        including programs under the supervision of 
                        State utility regulators; and
                            (ii) using funds made available under this 
                        Act to enhance and extend existing programs; 
                        and
                    (B) seek to enhance and extend existing programs by 
                coordinating with administrators of the programs.

SEC. 10. QUALITY ASSURANCE PROGRAM.

    (a) In General.--As part of a grant application described in 
section 9(b), a State or Indian tribe shall submit to the Secretary a 
plan to implement a quality assurance program that covers all federally 
assisted residential efficiency retrofit work administered, supervised, 
or sponsored by the State or Indian tribe.
    (b) Implementation.--The State or Indian tribe shall--
            (1) develop a quality assurance program in consultation 
        with industry stakeholders, including representatives of 
        efficiency program managers, contractors, and environmental, 
        energy efficiency, and labor organizations; and
            (2) implement the quality assurance program not later than 
        180 days after receipt of a grant under section 9.
    (c) Components.--The quality assurance program established under 
this section shall include--
            (1) maintenance of a list of qualified contractors 
        authorized to perform such retrofit work as described in 
        section 4; and
            (2) non-binding targets and realistic plans for--
                    (A) the recruitment of small minority-owned or 
                women-owned business enterprises; and
                    (B) the employment of graduates of training 
                programs that primarily serve low-income populations 
                with a median income that is below 200 percent of the 
                poverty line (as defined in section 673(2) of the 
                Community Services Block Grant Act (42 U.S.C. 9902(2)), 
                including any revision required by that section) by 
                participating contractors.
    (d) Noncompliance.--If the Secretary determines that a State or 
Indian tribe has not taken the steps required under this section, the 
Secretary shall provide to the State or Indian tribe a period of at 
least 90 days to comply before suspending the participation of the 
State or Indian tribe in the program.

SEC. 11. EVALUATION REPORT TO CONGRESS.

    (a) In General.--Not later than 1 year after the date of enactment 
of this Act and annually thereafter until the termination of the 
program under this Act, the Secretary shall submit to the Committee on 
Energy and Natural Resources of the Senate and the Committee on Energy 
and Commerce of the House of Representatives a report on the use of 
funds under this Act.
    (b) Contents.--The report submitted under subsection (a) shall 
evaluate--
            (1) how many eligible participants have participated in the 
        program;
            (2) how many jobs have been created through the program, 
        directly and indirectly;
            (3) what steps could be taken to promote further deployment 
        of energy efficiency and renewable energy retrofits;
            (4) the quantity of verifiable energy savings, homeowner 
        energy bill savings, and other benefits of the program;
            (5) any waste, fraud, or abuse with respect to such funds; 
        and
            (6) any other information the Secretary considers 
        appropriate.
    (c) Noncompliance.--The Secretary shall require rebate aggregators, 
States, and Indian tribes to provide the information required to enable 
the Secretary to carry out this section. If the Secretary determines 
that a rebate aggregator, State, or Indian tribe has not provided such 
information on a timely basis, the Secretary shall provide to the 
rebate aggregator, State, or Indian tribe a period of at least 90 days 
to provide any necessary information, subject to withholding of funds 
or reduction of future grant amounts, or decertification of rebate 
aggregators.

SEC. 12. ADMINISTRATION.

    (a) In General.--Subject to section 15(b), not later than 30 days 
after the date of enactment of this Act, the Secretary shall provide 
such administrative and technical support to rebate aggregators, 
States, and Indian tribes as is necessary to carry out this Act.
    (b) Appointment of Personnel.--Notwithstanding the provisions of 
title 5, United States Code, governing appointments in the competitive 
service and General Schedule classifications and pay rates, the 
Secretary may appoint such professional and administrative personnel as 
the Secretary considers necessary to carry out this Act.
    (c) Rate of Pay.--The rate of pay for a person appointed under 
subsection (b) shall not exceed the maximum rate payable for GS-15 of 
the General Schedule under chapter 53 of title 5, United States Code.
    (d) Consultants.--Notwithstanding section 303 of the Federal 
Property and Administrative Services Act of 1949 (41 U.S.C. 253), the 
Secretary may retain such consultants on a noncompetitive basis as the 
Secretary considers necessary to carry out this Act.
    (e) Contracting.--In carrying out this Act, the Secretary may waive 
all or part of any provision of the Competition in Contracting Act of 
1984 (Public Law 98-369; 98 Stat. 1175), an amendment made by that Act, 
or the Federal Acquisition Regulation on a determination that 
circumstances make compliance with the provisions contrary to the 
public interest.
    (f) Information Collection.--The Secretary shall establish, and 
make available to homeowners, or the homeowner's designated 
representative, seeking a rebate under this Act, release forms 
authorizing access by the Secretary, or the Secretary's designated 
third party representative, to information in the utility bills of the 
homeowner. The form shall not include the homeowner's name, address, or 
social security number, or any other personal identifying information 
designated by the Secretary.

SEC. 13. TREATMENT OF REBATES.

    (a) In General.--For purposes of the Internal Revenue Code of 1986, 
rebates received for a qualified home energy efficiency retrofit under 
this Act--
            (1) shall not be considered taxable income to a homeowner; 
        and
            (2) shall prohibit the consumer from applying for a tax 
        credit allowed under section 25C or 25D of that Code for the 
        same retrofit work performed in the home of the homeowner, 
        unless the work is additional, and not included in the rebate 
        baseline.
    (b) Notice.--
            (1) In general.--A participating contractor shall provide 
        notice to a homeowner of the provisions of subsection (a) 
        before eligible work is performed in the home of the homeowner.
            (2) Notice in rebate form.--A homeowner shall be notified 
        of the provisions of subsection (a) in the appropriate rebate 
        form developed by the Secretary, in consultation with the 
        Secretary of the Treasury.

SEC. 14. PENALTIES.

    (a) In General.--It shall be unlawful for any person to violate 
this Act (including any regulation issued under this Act), other than a 
violation as the result of a clerical error.
    (b) Civil Penalty.--In addition to any penalty applicable under 
other Federal law for fraud or other crimes, any person who commits a 
violation of this Act shall be liable to the United States for a civil 
penalty in an amount that is not more than the higher of--
            (1) $15,000 for each violation; or
            (2) 3 times the value of any associated rebate under this 
        Act.
    (c) Administration.--The Secretary may--
            (1) assess and compromise a penalty imposed under 
        subsection (b); and
            (2) require from any entity the records and inspections 
        necessary to enforce this Act.

SEC. 15. FUNDING.

    (a) Authorization of Appropriations.--
            (1) In general.--There are authorized to be appropriated to 
        the Secretary to carry out this Act $500,000,000 for each of 
        fiscal years 2014 through 2017, to remain available until 
        expended.
            (2) Maintenance of funding.--Funds provided under this 
        section shall supplement and not supplant any Federal and State 
        funding provided to carry out energy efficiency programs in 
        existence on the date of enactment of this Act.
    (b) Grants to States.--
            (1) In general.--Of the amounts provided under subsection 
        (a), not more than 6 percent shall be used to carry out section 
        9.
            (2) Distribution to state energy offices.--Not later than 
        45 days after the date of enactment of this Act, the Secretary 
        shall determine a formula to provide funds described in 
        paragraph (1) to State energy offices, in accordance with the 
        allocation formula for State energy conservation plans 
        established under part D of title III of the Energy Policy and 
        Conservation Act (42 U.S.C. 6321 et seq.).
    (c) Tracking of Rebates and Expenditures.--Of the amount provided 
under subsection (a), not more than 2.5 percent are authorized to be 
appropriated to the Secretary to be used for costs associated with 
tracking rebates and expenditures through the Federal Rebate Processing 
System under this Act, technical assistance to States, and related 
administrative costs incurred by the Secretary.
    (d) Program Review and Backstop Funding.--
            (1) In general.--Not later than 180 days after the date of 
        enactment of this Act, the Secretary shall perform a State-by-
        State analysis and review the distribution of Home Energy 
        Savings Retrofit Rebates under this Act.
            (2) Adjustment.--The Secretary may allocate technical 
        assistance funding to assist States that have not sufficiently 
        benefitted from the Home Energy Savings Retrofit Rebate 
        Program.
    (e) Return of Undisbursed Funds.--If the Secretary has not 
disbursed all the funds available for rebates under the Home Energy 
Savings Retrofit Rebate Program by September 30, 2017, any undisbursed 
funds shall be returned to the Treasury.
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