I 

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. 

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 2013’’ 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) ELECTRIC UTILITY.—The term ‘‘electric 

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

5 State, or Indian tribe agency that delivers or sells 

6 electric energy at retail, including nonregulated utili7 ties, utilities that are subject to State or Indian tribe 

8 rate regulation, and Federal power marketing ad9 ministrations. 

10 (3) FEDERAL REBATE PROCESSING SYSTEM.— 

11 The term ‘‘Federal Rebate Processing System’’ 

12 means the Federal Rebate Processing System estab13 lished under section 3(b). 

14 (4) HOME.—The term ‘‘home’’ means a resi15 dential dwelling unit in a building with no more than 

16 4 dwelling units that— 

17 (A) is located in the United States; 

18 (B) was constructed before the date of en19 actment of this Act; and 

20 (C) is occupied at least 6 months out of 

21 each of the 2 years immediately preceding the 

22 application for a rebate under this Act. 

23 (5) HOME ENERGY SAVINGS RETROFIT REBATE

24 PROGRAM.—The term ‘‘Home Energy Savings Ret25 rofit Rebate Program’’ means the Home Energy 


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1 Savings Retrofit Rebate Program established under 

2 section 3(a). 

3 (6) HOMEOWNER.—The term ‘‘homeowner’’ 

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

5 tenant-occupied home. 

6 (7) INDIAN TRIBE.—The term ‘‘Indian tribe’’ 

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

8 Indian Self-Determination and Education Assistance 

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

10 (8) NATURAL GAS UTILITY.—The term ‘‘nat11 ural gas utility’’ means any company, person, coop12 erative, State or local governmental agency or in13 strumentality, or Indian tribe that transports, dis14 tributes, or sells natural gas at retail. 

15 (9) QUALIFIED CONTRACTOR.—The term 

16 ‘‘qualified contractor’’ means a residential energy ef17 ficiency contractor that meets minimum applicable 

18 requirements established under section 4. 

19 (10) QUALIFIED HOME ENERGY EFFICIENCY

20 RETROFIT.—The term ‘‘qualified home energy effi21 ciency retrofit’’ means a retrofit described in section 

22 8(d). 

23 (11) QUALITY ASSURANCE PROGRAM.—The 

24 term ‘‘quality assurance program’’ means a program 

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1 retary under this Act, to oversee the delivery of 

2 home efficiency retrofit programs to ensure that 

3 work is performed in accordance with standards and 

4 criteria established under this Act. Delivery of ret5 rofit programs includes delivery of quality assurance 

6 reviews of rebate applications and field inspections. 

7 (12) QUALITY ASSURANCE PROVIDER.—The 

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

9 that meets the minimum applicable requirements es10 tablished under section 6(b). 

11 (13) REBATE AGGREGATOR.—The term ‘‘rebate 

12 aggregator’’ means an entity that meets the require13 ments of section 5. 

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

15 the Residential Energy Services Network, which is a 

16 nonprofit certification and standard setting organi17 zation for home energy raters that evaluate the en18 ergy performance of a home and Energy Smart Con19 tractors that make energy improvements to the 

20 home. 

21 (15) SECRETARY.—The term ‘‘Secretary’’ 

22 means the Secretary of Energy. 

23 (16) STATE.—The term ‘‘State’’ means— 

24 (A) a State; 

25 (B) the District of Columbia; 


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1 (C) the Commonwealth of Puerto Rico; 

2 (D) Guam; 

3 (E) American Samoa; 

4 (F) the Commonwealth of the Northern 

5 Mariana Islands; 

6 (G) the United States Virgin Islands; and 

7 (H) any other territory or possession of the 

8 United States. 

9 SEC. 3. HOME ENERGY SAVINGS RETROFIT REBATE PRO10 GRAM. 

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

12 Home Energy Savings Retrofit Rebate Program. 

13 (b) FEDERAL REBATE PROCESSING SYSTEM.— 

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

15 after the date of enactment of this Act, the Sec16 retary, in consultation with the Secretary of the 

17 Treasury, shall— 

18 (A) establish a Federal Rebate Processing 

19 System which shall serve as a database and in20 formation technology system that will allow re21 bate aggregators to submit claims for reim22 bursement using standard data protocols; 

23 (B) establish a national retrofit Web site 

24 that provides information on the Home Energy 

25 Savings Retrofit Rebate Program, including— 


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1 (i) how to determine whether par2 ticular efficiency measures are eligible for 

3 rebates; and 

4 (ii) how to participate in the program; 

5 and 

6 (C) make available model forms for dem7 onstrating compliance with all applicable re8 quirements of this Act, which shall be required 

9 to be submitted by— 

10 (i) each qualified contractor on com11 pletion of an eligible home energy retrofit; 

12 and 

13 (ii) each quality assurance provider on 

14 completion of field verification. 

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

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

17 developed by the National Home Performance Coun18 cil, Inc. If the Secretary does not adopt these forms, 

19 the Secretary shall convene a group of stakeholders 

20 that are directly and materially affected by the Pro21 gram to develop the final forms. 

22 SEC. 4. CONTRACTORS. 

23 (a) CONTRACTOR QUALIFICATIONS.—A contractor 

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1 ings Retrofit Rebate Program in a State if the con2 tractor— 

3 (1) meets all applicable contractor licensing re4 quirements established by the State; 

5 (2) is— 

6 (A) accredited by— 

7 (i) BPI as an Accredited Contractor; 

8 (ii) RESNET as an Energy Smart 

9 Home Performance Team; 

10 (iii) the Air Conditioning Contractors 

11 of America as a QA Home Performance 

12 Contractor; 

13 (iv) a State-based certification pro14 gram established to carry out State energy, 

15 clean air, or environmental programs; or 

16 (v) an equivalent certification program 

17 approved by the Secretary for this purpose; 

18 or 

19 (B) the general contractor, that— 

20 (i) subjects the energy efficiency ret21 rofit to a review and quality assurance in22 spection by a third party approved by the 

23 Department of Energy for performing 

24 quality assurance inspections; and 


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1 (ii) employs, or otherwise utilizes sub2 contractors who employ, individuals to 

3 complete individual or comprehensive 

4 scopes of work related to the energy effi5 ciency retrofit who are certified by— 

6 (I) BPI; 

7 (II) RESNET; 

8 (III) North American Technical 

9 Excellence; 

10 (IV) the Air Conditioning Con11 tractors of America; 

12 (V) the Laborers International 

13 Union of North America; 

14 (VI) a regional or State Depart15 ment of Energy Weatherization Train16 ing Center; or 

17 (VII) other contractor or worker 

18 certification programs approved by 

19 the Secretary; 

20 (3) holds insurance coverage of at least 

21 $1,000,000 for general liability, and for such other 

22 purposes and in such other amounts as required by 

23 the State; and 

24 (4) provides warranties to the homeowner that 

25 completed work will— 


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1 (A) be free of significant defects; 

2 (B) be installed in accordance with the 

3 specifications of the manufacturer, and all ap4 plicable State and local codes; and 

5 (C) perform properly for a period of at 

6 least 1 year after the date of completion of the 

7 work. 

8 (b) AGREEMENT BETWEEN CONTRACTOR AND

9 HOMEOWNER.—A contractor who performs retrofit work 

10 under the Home Energy Savings Retrofit Rebate Program 

11 must sign a written or electronic contract with the home12 owner that includes— 

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

14 home improvement as a result of the rebates re15 ceived under this Act with respect to physical im16 provements made to the home; 

17 (2) if the contractor and homeowner choose the 

18 transferable rebate option authorized under section 

19 7, an agreement to provide the homeowner, before a 

20 contract is executed between the contractor and the 

21 homeowner covering the eligible work, a notice of the 

22 rebate amount the contractor intends to apply for 

23 with respect to eligible work under this Act; and 

24 (3) an acknowledgement that the homeowner— 


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1 (A) has reviewed the national retrofit Web 

2 site for the program; 

3 (B) understands the scope of work in4 tended to be completed and that such work may 

5 be eligible for a rebate under the program; and 

6 (C) understands that the rebate funds are 

7 fully subject to availability from the Depart8 ment or Rebate Aggregator and not within the 

9 control of the contractor. 

10 SEC. 5. REBATE AGGREGATORS. 

11 (a) IN GENERAL.—The Secretary shall develop a net12 work of rebate aggregators or a national rebate aggregator 

13 that can facilitate the delivery of rebates to participating 

14 homeowners or contractors by— 

15 (1) reviewing the proposed rebate application 

16 for completeness and accuracy; 

17 (2) reviewing measures for eligibility in accord18 ance with this Act; 

19 (3) providing data to the Federal Rebate Proc20 essing System consistent with data protocols estab21 lished by the Secretary; and 

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

23 days after the date of receipt, distributing funds re24 ceived from the Department of Energy to home25 owners or contractors. 


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1 (b) ELIGIBILITY.—To be eligible to apply to the Sec2 retary for approval as a rebate aggregator, an entity shall 

3 be— 

4 (1) a Home Performance with Energy Star pro5 gram sponsor; 

6 (2) an entity administering a residential or 

7 building energy efficiency retrofit program, solar 

8 program, or other such program impacting energy 

9 efficiency in homes established or approved by a 

10 State or local government; 

11 (3) a Federal power marketing administration, 

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

13 (A) a residential energy efficiency retrofit 

14 program; and 

15 (B) a quality assurance provider or pro16 vider network; or 

17 (4) an entity that demonstrates to the Sec18 retary that the entity can perform the functions of 

19 a rebate aggregator, without disrupting existing resi20 dential retrofits in the States that are incorporating 

21 the Home Energy Savings Retrofit Rebate Program, 

22 including demonstration of— 

23 (A) the capability to provide electronic 

24 data to the Federal Rebate Processing System; 


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1 (B) a financial system that is capable of 

2 tracking the distribution of rebates to partici3 pating contractors; and 

4 (C) coordination and cooperation by the 

5 entity with the appropriate State energy office 

6 regarding participation in the existing energy 

7 efficiency programs that will be delivering the 

8 Home Energy Savings Retrofit Rebate Pro9 gram. 

10 (c) PUBLIC UTILITY COMMISSION EFFICIENCY TAR11 GETS.—The Secretary shall— 

12 (1) develop guidelines for States and local gov13 ernments to use to allow utilities participating as re14 bate aggregators to count the energy savings from 

15 the participation of the utilities toward State and 

16 local level energy savings targets; and 

17 (2) work with States and local governments to 

18 assist in the adoption of those guidelines for the 

19 purposes and duration of the Home Energy Savings 

20 Retrofit Rebate Program. 

21 SEC. 6. QUALITY ASSURANCE PROVIDERS. 

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

23 a quality assurance provider under this Act only if the en24 tity is qualified through— 

25 (1) the BPI; 


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1 (2) RESNET; or 

2 (3) any other entity designated by the Secretary 

3 such as a State or local government or a residential 

4 energy efficiency retrofit program approved by a 

5 State or local government. 

6 (b) FUNCTIONS.—A quality assurance provider 

7 shall— 

8 (1) be independent of the contractor; 

9 (2) confirm that contractors or installers of 

10 home energy efficiency retrofits meet the qualifica11 tion requirements of this Act; and 

12 (3) perform field inspections to confirm the 

13 compliance of the retrofit work and the simulated 

14 energy savings under the Home Energy Savings Ret15 rofit Rebate Program. 

16 SEC. 7. TRANSFERABILITY OF HOME ENERGY SAVINGS RE17 BATE. 

18 A homeowner may transfer the rebate provided under 

19 the Home Energy Savings Retrofit Rebate Program to the 

20 contractor performing the retrofit work if the contractor 

21 completes a form that accompanies the rebate form devel22 oped under section 3(b). This form, to be made publically 

23 available by the Secretary 90 days after the date of enact24 ment of this Act, must be approved by paper signature 

25 or electronically by the homeowner and include— 


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

2 submit for disbursement to the contractor; 

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

4 home retrofit certified under section 8(e)(4), and as5 surance that the contractor will provide the certifi6 cate to the homeowner within 30 days of receipt 

7 from the Department of Energy; 

8 (3) a documentation report of the retrofit per9 formed and paid by the homeowner; and 

10 (4) confirmation from the homeowner that they 

11 understand they have the right to submit directly for 

12 the rebate and have chosen to transfer the credit in 

13 full to the contractor. 

14 SEC. 8. HOME ENERGY SAVINGS RETROFIT REBATE PRO15 GRAM. 

16 (a) IN GENERAL.—If a qualified home energy effi17 ciency retrofit of a home is carried out after January 1, 

18 2014, by a qualified contractor in accordance with this 

19 section, rebates shall be awarded for retrofits that achieve 

20 home energy savings in accordance with this Act. 

21 (b) AMOUNT OF REBATES.— 

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

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

24 home or a designee of the owner under this section 

25 shall be— 


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

2 in home energy use; 

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

4 in home energy use; 

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

6 in home energy use; 

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

8 in home energy use; 

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

10 in home energy use; 

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

12 in home energy use; and 

13 (G) $8,000 for a 50 percent or more re14 duction in home energy use. 

15 (2) REBATE PAYMENT.— 

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

17 paid, based on energy savings as calculated 

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

19 (i) submission of the required rebate 

20 forms; and 

21 (ii) the completion of any quality as22 surance assessment required under sub23 paragraph (B). 

24 (B) QUALITY ASSURANCE ASSESSMENTS.— 

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1 quired quality assurance assessments. In the 

2 first year of the program, the first 10 homes 

3 retrofit by each contractor and then 60 percent 

4 of all future homes shall be required to have a 

5 quality assurance assessment. The Secretary 

6 shall establish a cost effective schedule of re7 quired quality assurance assessments for subse8 quent years based on performance under the 

9 program. 

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

11 of rebates under this subsection exceed— 

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

13 or 

14 (B) 50 percent of the qualified home en15 ergy efficiency expenditures paid or incurred by 

16 the homeowner under subsection (c). 

17 (c) QUALIFIED HOME ENERGY EFFICIENCY EX18 PENDITURES.—For purposes of this section, the term 

19 ‘‘qualified home energy efficiency expenditures’’— 

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

21 homeowner for a qualified home energy efficiency 

22 retrofit, including the cost of diagnostic procedures, 

23 labor, reporting, and modeling; and 

24 (2) does not include— 


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1 (A) improvements to swimming pools or 

2 hot tubs; or 

3 (B) any amount paid or incurred to pur4 chase or install a biomass, wood, or wood pellet 

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

6 (i) is designed to meet at least 70 per7 cent of the heating demands of the home; 

8 (ii) in the case of woodstoves, is cer9 tified by the Environmental Protection 

10 Agency; 

11 (iii) in the case of a wood stove re12 placement, replaces an existing wood stove 

13 with a stove that is certified by the Envi14 ronmental Protection Agency, if a voucher 

15 is provided by the installer or other respon16 sible party certifying that the old stove has 

17 been removed and made inoperable; 

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

19 is in a home with a distribution system 

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

21 affixed fans) that allows heat from the fur22 nace or boiler to reach all or most parts of 

23 the home; and 


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1 (v) is certified by an independent test 

2 laboratory approved by the Secretary as 

3 having— 

4 (I) thermal efficiency (with a 

5 high heating value) of at least 75 per6 cent for stoves and 80 percent for fur7 naces and boilers; 

8 (II) particulate emissions of less 

9 than 3.0 grams per hour for wood 

10 stoves or pellet stoves; and 

11 (III) less than 0.07 lbs per mil12 lion BTU for outdoor boilers and fur13 naces. 

14 (d) QUALIFIED HOME ENERGY EFFICIENCY RET15 ROFIT.— 

16 (1) IN GENERAL.—A qualified home energy ef17 ficiency retrofit is a retrofit that implements meas18 ures, during a rebate-eligible year in the existing 

19 principal residence of the homeowner which is lo20 cated in the United States, intended to reduce the 

21 energy use of such residence. A qualified home en22 ergy efficiency retrofit shall— 

23 (A) be implemented and installed by a 

24 qualified contractor; 


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1 (B) install a set of measures modeled to 

2 achieve a reduction in home energy use of 20 

3 percent or more from the baseline established 

4 under subparagraph (C), using computer mod5 eling software approved under paragraph (2); 

6 (C) establish the baseline energy use as 

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

8 (D) implement a test-out procedure, fol9 lowing guidelines of the applicable accrediting 

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

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

12 Secretary for this purpose, to ensure— 

13 (i) the safe operation of all systems 

14 post retrofit; and 

15 (ii) that all improvements are included 

16 in, and have been installed according to— 

17 (I) standards of the applicable 

18 accrediting program described in sec19 tion 4(a)(2) (A), (B), or (C); 

20 (II) manufacturers installation 

21 specifications; and 

22 (III) all applicable State and 

23 local codes or equivalent standards 

24 approved by the Secretary for this 

25 purpose; 


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1 (E) include only measures that have an av2 erage estimated life of 5 years or more as deter3 mined by the Secretary; 

4 (F) not include any amount which is paid 

5 or incurred in connection with any expansion of 

6 the square footage of the residence; and 

7 (G) not include improvements to swimming 

8 pools or hot tubs or any other expenditure spe9 cifically excluded by the Secretary. 

10 (2) APPROVED MODELING SOFTWARE.—The 

11 contractor shall use modeling software certified by 

12 RESNET as following the software verification test 

13 suites in section 4.2.1 of RESNET Publication No. 

14 13–001, or under equivalent standards approved by 

15 the Secretary for this purpose, and shall have the 

16 ability at a minimum to assess the savings associ17 ated with all the measures for Home Energy Savings 

18 Retrofit Rebate Program. 

19 (3) EXCEPTION.—For purposes of paragraph 

20 (1)(D)(ii), installation of gas-fired appliances shall 

21 comply with requirements of the National Fuel Gas 

22 Code (ANSI Z223.1/NFPA 54) and applicable in23 stallation requirements in lieu of performance of 

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1 tional Fuel Gas Code (2012 Edition) and the Inter2 national Fuel Gas Code (2012 Edition). 

3 (e) ENERGY USE REDUCTION.— 

4 (1) DETERMINATION OF ENERGY USE REDUC5 TION.— 

6 (A) IN GENERAL.—The reduction in en7 ergy use for any residence shall be determined 

8 by modeling the annual predicted percentage re9 duction in total energy consumption or costs for 

10 heating, cooling, hot water, and permanent 

11 lighting. It shall be modeled using computer 

12 modeling software approved under subsection 

13 (d)(2) and calibrated according to subpara14 graph (C) of this paragraph. 

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

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

17 fuel for each fuel type shall be determined by 

18 dividing the total actual energy bill (subtracting 

19 taxes and fees) for the residence for that fuel 

20 type for the most recent available 12-month pe21 riod by the total energy units of that fuel type 

22 used over the same period. 

23 (C) BASELINE ENERGY USE.—For the 

24 purposes of subparagraph (A), the software 

25 model that establishes the baseline energy use 


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1 and predicted energy savings shall be calibrated 

2 according to the procedures set forth in sections 

3 3 and 4 of ANSI/BPI Standard BPI–2400–S– 

4 2012: Standard Practice for Standardized 

5 Qualification of Whole-House Energy Savings 

6 Predictions by Calibration to Energy Use His7 tory, or an equivalent standard approved by the 

8 Secretary for this purpose. 

9 (2) DOCUMENTATION.—The percent improve10 ment in energy consumption calculated under this 

11 section shall be documented through modeling soft12 ware described in subsection (d)(2). 

13 (3) MONITORING.—The Secretary— 

14 (A) shall periodically evaluate the software 

15 packages used for determining rebates under 

16 this section; 

17 (B) shall monitor and compare the pre18 dictions to the real energy data, and based on 

19 the results, create performance criteria to allow 

20 or disallow the software; and 

21 (C) may disallow the use of software pro22 grams that improperly assess energy savings. 

23 (4) CERTIFICATE OF RETROFIT PERFORM24 ANCE.—The Secretary shall establish a system for 

25 distribution of a certificate of performance with the 


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1 issuance of a rebate that certifies the predicted level 

2 of energy use reduction achieved by the retrofit. The 

3 certificate will be provided to the rebate recipient. If 

4 the recipient is the contractor under the terms of 

5 section 7, the contractor shall remit the certificate to 

6 the homeowner, to be delivered or postmarked not 

7 later than 30 days after the contractor’s receipt of 

8 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 be permitted to 

7 use the grant 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 or local 

15 government approved energy conservation plan 

16 established under part D of title III of the En17 ergy Policy and Conservation Act (42 U.S.C. 

18 6321 et seq.); 

19 (B) managed by the office or the designee 

20 of the office that is— 

21 (i) responsible for the development of 

22 the plan under section 362 of that Act (42 

23 U.S.C. 6322); and 


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1 (ii) to the maximum extent practicable 

2 conducting an existing energy efficiency 

3 program; and 

4 (C) in the case of a grant made to an In5 dian tribe, managed by an entity designated by 

6 the Indian tribe to carry out a quality assur7 ance program or a national quality assurance 

8 program manager. 

9 (2) NONCOMPLIANCE.—If the Secretary deter10 mines that a State or Indian tribe has not provided 

11 or cannot provide adequate oversight over a quality 

12 assurance program to ensure compliance with this 

13 Act, the Secretary may— 

14 (A) withhold further quality assurance 

15 funds from the State or Indian tribe; and 

16 (B) require that quality assurance pro17 viders operating in the State or by the Indian 

18 tribe be overseen by a national quality assur19 ance program manager selected by the Sec20 retary. 

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

22 receives a grant under this section may implement a qual23 ity assurance program through the State, the Indian tribe, 

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

25 including— 


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1 (1) an energy service company; 

2 (2) an electric utility; 

3 (3) a natural gas utility; 

4 (4) a third-party administrator designated by 

5 the State or Indian tribe; or 

6 (5) a unit of local government. 

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

8 Indian tribe that receives a grant under this section is en9 couraged to form partnerships with utilities, energy serv10 ice companies, and other entities— 

11 (1) to assist in marketing a program; 

12 (2) to facilitate consumer financing; 

13 (3) to assist in implementation of the Home 

14 Energy Savings Retrofit Rebate Program, including 

15 installation of qualified home energy efficiency retro16 fits; and 

17 (4) to assist in implementing quality assurance 

18 programs. 

19 (h) COORDINATION OF REBATE AND EXISTING

20 STATE-SPONSORED PROGRAMS.— 

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

22 shall, to the maximum extent practicable, prevent 

23 duplication through coordination of a program au24 thorized under this Act with— 


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1 (A) the Energy Star appliance rebates pro2 gram authorized under the American Recovery 

3 and Reinvestment Act of 2009 (Public Law 

4 111–5; 123; Stat. 115); and 

5 (B) comparable programs planned or oper6 ated by States, political subdivisions, electric 

7 and natural gas utilities, Federal power mar8 keting administrations, and Indian tribes. 

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

10 subsection, a State or Indian tribe shall— 

11 (A) give priority to— 

12 (i) comprehensive retrofit programs in 

13 existence on the date of enactment of this 

14 Act, including programs under the super15 vision of State utility regulators; and 

16 (ii) using funds made available under 

17 this Act to enhance and extend existing 

18 programs; and 

19 (B) seek to enhance and extend existing 

20 programs by coordinating with administrators 

21 of the programs. 

22 SEC. 10. QUALITY ASSURANCE PROGRAM. 

23 (a) IN GENERAL.—As part of a grant application de24 scribed in section 9(b), a State or Indian tribe shall submit 

25 to the Secretary a plan to implement a quality assurance 


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1 program that covers all federally assisted residential effi2 ciency retrofit work administered, supervised, or spon3 sored by the State or Indian tribe. 

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

5 shall— 

6 (1) develop a quality assurance program in con7 sultation with industry stakeholders, including rep8 resentatives of efficiency program managers, con9 tractors, and environmental, energy efficiency, and 

10 labor organizations; and 

11 (2) implement the quality assurance program 

12 not later than 180 days after receipt of a grant 

13 under section 9. 

14 (c) COMPONENTS.—The quality assurance program 

15 established under this section shall include— 

16 (1) maintenance of a list of qualified contrac17 tors authorized to perform such retrofit work as de18 scribed in section 4; and 

19 (2) non-binding targets and realistic plans 

20 for— 

21 (A) the recruitment of small minority22 owned or women-owned business enterprises; 

23 and 

24 (B) the employment of graduates of train25 ing programs that primarily serve low-income 


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1 populations with a median income that is below 

2 200 percent of the poverty line (as defined in 

3 section 673(2) of the Community Services 

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

5 any revision required by that section) by par6 ticipating contractors. 

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.—The Secretary shall 

4 establish, and make available to homeowners, or the home5 owner’s designated representative, seeking a rebate under 

6 this Act, release forms authorizing access by the Sec7 retary, or the Secretary’s designated third party rep8 resentative, to information in the utility bills of the home9 owner. The form shall not include the homeowner’s name, 

10 address, or social security number, or any other personal 

11 identifying information designated by the Secretary. 

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, unless the work is 

22 additional, and not included in the rebate baseline. 

23 (b) NOTICE.— 

24 (1) IN GENERAL.—A participating contractor 

25 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 2014 through 

6 2017, 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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