```

[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1778 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 1778

 To provide for the establishment of national energy and environmental 
    building retrofit policies for both residential and commercial 
                   buildings, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             March 30, 2009

   Mr. Welch (for himself, Mr. Van Hollen, Mr. Patrick J. Murphy of 
Pennsylvania, Mrs. Maloney, Mr. Honda, Ms. Kilpatrick of Michigan, Mr. 
Carson of Indiana, Mrs. Dahlkemper, Mr. Pallone, Mr. Israel, Mr. Cohen, 
 Mr. Cummings, Mr. Langevin, Mr. Ellison, Mr. Hinchey, Mr. Tonko, Mr. 
Blumenauer, Ms. Shea-Porter, Mrs. Christensen, Mr. Braley of Iowa, Mr. 
George Miller of California, Mr. Teague, Mr. Delahunt, Mr. Inslee, Mr. 
 Courtney, Mr. Heinrich, Mr. Carnahan, Mr. Himes, Mr. Perlmutter, Mrs. 
 Capps, Mr. Massa, and Mr. Polis of Colorado) introduced the following 
 bill; which was referred to the Committee on Energy and Commerce, and 
in addition to the Committee on Financial Services, 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 national energy and environmental 
    building retrofit policies for both residential and commercial 
                   buildings, 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 ``Retrofit for Energy and 
Environmental Performance (REEP) Program Act''.

SEC. 2. FINDINGS.

    The Congress finds that--
            (1) buildings are responsible for 39 percent of all energy 
        consumption, 72 percent of all electricity consumption, and 55 
        percent of natural gas use in the United States;
            (2) buildings are responsible for 38 percent of all carbon 
        dioxide emissions in the United States;
            (3) energy efficiency in buildings can readily be improved 
        in most cases using existing technologies to reduce building 
        energy consumption by 25 percent or more;
            (4) buildings represent 14 percent of potable water use in 
        the United States, also amenable to significant efficiency 
        improvement;
            (5) Home Performance with Energy Star in Vermont and many 
        other States, as well as individual retrofits of commercial 
        buildings, show that such savings are possible and economical; 
        and
            (6) expanding the residential and commercial efficiency 
        industries will create jobs directly in performing retrofits 
        and indirectly through reduced energy bills to consumers.

SEC. 3. BUILDING RETROFIT PROGRAM.

    (a) Definitions.--For purposes of this section:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the Environmental Protection Agency.
            (2) Performance-based building retrofit program.--The term 
        ``performance-based building retrofit program'' means a program 
        that determines success in energy efficiency based on actual 
        measured savings after a retrofit is complete.
            (3) Prescriptive building retrofit program.--The term 
        ``prescriptive building retrofit program'' means a program that 
        projects success in energy efficiency based on the known 
        effectiveness of measures prescribed to be included in a 
        retrofit.
            (4) State.--The term ``State'' means the several States, 
        the District of Columbia, the Commonwealth of Puerto Rico, the 
        United States Virgin Islands, Guam, American Samoa, the 
        Commonwealth of the Northern Mariana Islands, and any other 
        commonwealth, territory, or possession of the United States.
            (5) State energy program.--The term ``State Energy 
        Program'' means the program under part D of title III of the 
        Energy Policy and Conservation Act (42 U.S.C. 6321 et seq.)
    (b) Establishment.--The Administrator shall develop and implement, 
in consultation with the Secretary of Energy, standards for a national 
energy and environmental building retrofit policy for single-family and 
multifamily residences. The Secretary of Energy shall develop and 
implement, in consultation with the Administrator, standards for a 
national energy and environmental building retrofit policy for 
commercial buildings. The programs to implement the residential and 
commercial policies based on the standards developed under this section 
shall together be known as the Retrofit for Energy and Environmental 
Performance (REEP) program.
    (c) Program Design.--
            (1) Purpose.--The purpose of the REEP program is to 
        facilitate the retrofitting of existing buildings across the 
        United States to achieve maximum cost-effective energy 
        efficiency improvements and significant improvements in water 
        use and other environmental attributes.
            (2) Federal resources.--The REEP program shall utilize 
        Federal personnel and resources as needed for development, 
        design, program materials, administration, seed capital, and 
        other activities and support.
            (3) Assistance to states.--The REEP program shall provide 
        Federal financial assistance to States, to be administered 
        through the State Energy Program, for management and the 
        accomplishment of the program's objectives at the individual 
        building level, through local agencies as appropriate, in 
        accordance with standards and requirements established under 
        this section.
            (4) State and local assistance.--State and local agencies 
        may offer free or low-cost building audits, incentives, 
        technical assistance, training, incentive financing, and other 
        forms of assistance to individual building owners under the 
        standards and guidelines developed for the REEP program in 
        accordance with this section, as well as promotion and 
        management of the REEP program.
            (5) Structure of program operations.--State and local 
        agencies shall have broad flexibility in the structure of REEP 
        program operations and in the choice of retrofit agencies or 
        contractors.
    (d) Federal Administration.--
            (1) Existing programs.--In creating and operating the 
        residential REEP program--
                    (A) the Administrator shall make appropriate use of 
                existing programs, including the Energy Star program 
                and in particular the Environmental Protection Agency 
                Energy Star for Buildings program; and
                    (B) the Secretary of Energy shall make appropriate 
                use of existing programs, including delegating 
                authority to the Director of Commercial High-
                Performance Green Buildings appointed under section 421 
                of the Energy Independence and Security Act of 2007 (42 
                U.S.C. 17081), who shall designate and provide funding 
                to support a High-Performance Green Building 
                Partnership Consortium pursuant to such section to 
                support efforts under this Act.
            (2) Consultation and coordination.--The Administrator and 
        the Secretary of Energy shall consult with and coordinate with 
        the Secretary of Housing and Urban Development in carrying out 
        the REEP program.
            (3) Administration of funding.--The Secretary of Energy 
        shall administer the financing for the REEP program, providing 
        funds to and administration through State Energy Offices under 
        the State Energy Program, or through such existing State 
        offices or entities regulated by the State that the Governor of 
        the State designates to carry out the purposes of this Act. The 
        Secretary shall ensure accountability for funds dispensed, 
        including measurement and verification of energy, water, and 
        environmental savings achieved.
            (4) Assistance.--The Administrator and the Secretary of 
        Energy shall provide consultation and assistance to State and 
        local agencies for the establishment of revolving loan funds or 
        other forms of financial assistance under this section.
    (e) State and Local Administration.--
            (1) Delegation.--The State Energy Office or designated 
        State agency described in subsection (d)(3) may delegate 
        performance of appropriate elements of the REEP program, upon 
        their request and subject to State law, to counties, 
        municipalities, appropriate public agencies, and other 
        divisions of local government, as well as to entities regulated 
        by the State. The State shall ensure accountability for 
        expended funds provided under this section, and shall maintain 
        responsibility for meeting the standards and requirements of 
        the REEP program.
            (2) Employment.--States and local government entities may 
        employ public or regulated investor-owned utilities, building 
        auditors and inspectors, contractors, nonprofit organizations, 
        and other entities to perform audits and retrofit services 
        under this section.
    (f) Elements of REEP Program.--The elements of the REEP program 
shall include the following:
            (1) The Administrator and the Secretary of Energy shall 
        establish goals and standards for accomplishing the purpose 
        stated in subsection (c)(1), and shall annually review and, as 
        appropriate, revise such goals and standards.
            (2) Residential Energy Services Network (RESNET) 
        certification of building energy and environment auditors, 
        inspectors, and raters, or an equivalent certification system 
        as determined by the Administrator.
            (3) Building Performance Institute (BPI) certification or 
        licensing by States of building energy and environmental 
        retrofit contractors, or an equivalent certification or 
        licensing system as determined by the Administrator.
            (4) Building Performance Institute, Residential Energy 
        Services Network, or other appropriate information on equipment 
        and procedures, as determined by the Administrator, that 
        contractors can use to test the energy and environmental 
        efficiency of buildings effectively (such as infrared 
        photography and pressurized testing, and tests for water use 
        and indoor air quality).
            (5) Provision of clear and effective materials to describe 
        the testing and retrofit processes for typical buildings.
            (6) Suggested guidelines for offering and managing 
        prescriptive building retrofit programs and performance-based 
        building retrofit programs for residential and commercial 
        buildings.
            (7) Suggested guidelines for applying retrocommissioning 
        principles to improve a building's operations and maintenance 
        procedures.
            (8) Determination of energy savings in a performance-based 
        building retrofit program through--
                    (A) for residential buildings, comparison of before 
                and after retrofit scores on the Home Energy Rating 
                System (HERS) Index, where the final score is produced 
                by an objective third party;
                    (B) for commercial buildings, Environmental 
                Protection Agency Portfolio Manager benchmarks; or
                    (C) for either residential or commercial buildings, 
                use of an Administrator-approved simulation program, 
                subject to appropriate software standards and 
                verification of at least 15 percent of all work done.
            (9) Suggested guidelines for utilizing the Energy Star 
        Portfolio Manager, the Home Energy Rating System (HERS) rating 
        system, Home Performance with Energy Star program approvals, 
        and any other tools associated with the retrofit program.
            (10) Requirements and guidelines for post-retrofit 
        inspection and confirmation of work and energy savings.
            (11) Detailed descriptions of funding options for the 
        benefit of State and local governments, along with model forms, 
        accounting aids, agreements, and guides to best practices.
            (12) Guidelines for obtaining certification of buildings 
        after retrofit as Energy Star buildings, assigning Home Energy 
        Rating System (HERS) rating, and completing applicable building 
        performance labels.
            (13) Sample materials for publicizing the program to 
        building owners, including public service announcements and 
        advertisements.
            (14) Processes for tracking the numbers and locations of 
        buildings retrofitted under the REEP program, with information 
        on projected and actual savings of energy and its value over 
        time.
            (15) A requirement that building retrofits conducted 
        pursuant to a REEP program, as appropriate, especially in all 
        air-conditioned buildings, shall use roofing materials that 
        demonstrate--
                    (A) on residential single family homes and other 
                buildings with slanted roofs--
                            (i) for fiberglass asphalt-shingle roofing, 
                        an initial solar reflectance of 0.3 or higher; 
                        or
                            (ii) for all other roofing materials, an 
                        initial solar reflectance of 0.4 or higher; and
                    (B) on commercial buildings and all buildings with 
                flat roofs, roofing materials with--
                            (i) an initial solar reflectance of 0.7 or 
                        higher;
                            (ii) a solar reflectance value 3 years 
                        after installation (``h'' solar reflectance) of 
                        0.55 or higher; and
                            (iii) a thermal emittance of 0.8 or higher.
    (g) Requirements.--As a condition of receiving funding for the REEP 
program appropriated pursuant to this section, a State shall--
            (1) adopt the standards for training, certification of 
        contractors, certification of buildings, and post-retrofit 
        inspection as developed by the Administrator and the Secretary 
        of Energy for residential and commercial buildings, 
        respectively, except as necessary to match local conditions, 
        needs, efficiency opportunities, or other local factors, or to 
        accord with State laws or regulations, and then only after 60 
        days have expired after the State provides notice to the 
        Administrator or the Secretary of Energy, as appropriate, of 
        the need for such variance; and
            (2) establish fiscal controls and accounting procedures 
        (which conform to generally accepted government accounting 
        principles) sufficient to ensure proper accounting during 
        appropriate accounting periods for payments received and 
        disbursements, and for fund balances.
The Secretary of Energy shall conduct or require each State to have 
such independent financial audits of REEP-related funding as the 
Secretary of Energy considers necessary or appropriate to carry out the 
purposes of this section.
    (h) Financial Options To Support REEP Program.--The Secretary of 
Energy and the Administrator shall support the implementation through 
State REEP programs of alternate means of creating incentives for, or 
reducing financial barriers to, improved energy and environmental 
performance in buildings, consistent with this section, including--
            (1) implementing prescriptive building retrofit programs 
        and performance-based building retrofit programs;
            (2) providing credit enhancement, interest rate subsidies, 
        or other credit support;
            (3) providing initial capital for public revolving fund 
        financing of retrofits, with repayments by beneficiary building 
        owners over time through their tax payments, calibrated to 
        create net positive cash flow to the building owner;
            (4) providing funds to support utility-operated retrofit 
        programs with repayments over time through utility rates, 
        calibrated to create net positive cash flow to the building 
        owner, and transferable from one building owner to the next 
        with the building's utility services; and
            (5) other means proposed by State and local agencies, 
        subject to the approval of the Secretary of Energy.
    (i) Federal Financial Support.--
            (1) In general.--Financial support shall be provided to a 
        State Energy Program, for the specific purpose of supporting 
        the REEP program.
            (2) Allocation of funding.--
                    (A) Initial year.--The Secretary of Energy shall 
                allocate amounts appropriated during the initial year 
                of the REEP program among the States in accordance with 
                the State Energy Program formula under section 363 of 
                the Energy Policy and Conservation Act (42 U.S.C. 
                6323).
                    (B) Subsequent years.--In the second year of the 
                REEP program and thereafter, the Secretary of Energy 
                shall allocate amounts among the States as follows:
                            (i) \1/2\ of available or appropriated 
                        funds shall be allocated among the States in 
                        accordance with the State Energy Program 
                        formula described in subparagraph (A).
                            (ii) \1/2\ of available or appropriated 
                        funds shall be allocated among the States in 
                        accordance with the relative building energy 
                        efficiency and environmental performance of the 
                        various States in retrofitting buildings in 
                        accordance with this section during the 
                        preceding year, with higher allocations going 
                        to States showing greater success in improving 
                        energy and environmental performance of the 
                        buildings retrofitted in that State during that 
                        preceding year.
            (3) Forms of support.--State and local REEP programs may 
        make per-building direct expenditures for retrofit 
        improvements, or their equivalent in indirect financial 
        support, from Federal funds as follows:
                    (A) Residential program.--
                            (i) Awards.--For residential buildings, a 
                        program may provide--
                                    (I) $500 to support a free or low-
                                cost detailed building energy audit 
                                that prescribes energy-reducing 
                                measures, with such amount fully 
                                recoverable from the recipient if the 
                                prescribed measures are not performed, 
                                within 1 year after completion of the 
                                audit, sufficiently to enable the 
                                building to achieve at least a 20 
                                percent reduction in energy use;
                                    (II) a total of $1,000 for 
                                measures, prescribed in an audit 
                                conducted under subclause (I), designed 
                                to reduce energy consumption by more 
                                than 10 percent, and $2,000 for 
                                measures prescribed in such an audit, 
                                designed to reduce energy consumption 
                                by more than 20 percent;
                                    (III) $3,000 for demonstrated 
                                savings of 20 percent, pursuant to a 
                                performance-based building retrofit 
                                program; and
                                    (IV) $150 for each additional 
                                percentage point of energy savings 
                                achieved beyond savings for which 
                                funding is provided under subclause 
                                (II) or (III).
                        Funding shall not be provided under clauses 
                        (II) and (III) for the same energy savings.
                            (ii) Maximum percentage.--Awards under 
                        clause (i) shall not to exceed 50 percent of 
                        retrofit costs for each building.
                            (iii) Additional awards.--Additional awards 
                        may be provided, for buildings achieving at 
                        least 20 percent energy savings using funding 
                        provided under clause (i), as follows:
                                    (I) Water.--Grants of $600 may be 
                                made for measures projected or measured 
                                (using an appropriate method approved 
                                by the Administrator) to achieve at 
                                least 35 percent potable water savings 
                                through equipment or systems with an 
                                estimated service life of not less than 
                                seven years, and an additional $20 may 
                                be provided for each additional one 
                                percent of such savings, up to a 
                                maximum total grant of $1,200.
                                    (II) Renewable energy use.--For 
                                cost-effective use of renewable energy, 
                                an award of up to $2,000 may be 
                                provided for uses with respect to which 
                                Federal tax credits are not available, 
                                and the Administrator shall develop 
                                relevant standards for documenting 
                                compliance.
                    (B) Commercial program.--
                            (i) Awards.--For commercial buildings, a 
                        program may provide--
                                    (I) $1,000 to support a free or 
                                low-cost building audit of energy-
                                reduction potential that prescribes 
                                energy efficiency improvements and 
                                improvements of other building 
                                attributes, with such amount fully 
                                recoverable from the recipient if the 
                                prescribed improvements are not 
                                performed, within 1 year after 
                                completion of the audit, sufficiently 
                                to enable the building to achieve at 
                                least a 20 percent reduction in energy 
                                use;
                                    (II) $0.15 per square foot of 
                                retrofit area for demonstrated energy 
                                use reductions from 20 percent to 30 
                                percent;
                                    (III) $0.75 per square foot for 
                                demonstrated energy use reductions from 
                                30 percent to 40 percent;
                                    (IV) $1.60 per square foot for 
                                demonstrated energy use reductions from 
                                40 percent to 50 percent; and
                                    (V) $2.50 per square foot for 
                                demonstrated energy use reductions 
                                exceeding 50 percent.
                            (ii) Limitation.--Amounts provided under 
                        subclauses (II) through (V) of clause (i) 
                        combined shall not exceed 50 percent of the 
                        total retrofit cost of a building.
                            (iii) Additional awards.--Additional awards 
                        may be provided, for buildings achieving at 
                        least 20 percent energy savings using funding 
                        provided under clause (i), as follows:
                                    (I) Water.--Grants may be made for 
                                whole building potable water use 
                                reduction (using an appropriate method 
                                approved by the Secretary of Energy) 
                                for up to 50 percent of the total 
                                retrofit cost, including amounts up 
                                to--
                                            (aa) $24.00 per thousand 
                                        gallons per year of potable 
                                        water savings of 40 percent or 
                                        more;
                                            (bb) $27.00 per thousand 
                                        gallons per year of potable 
                                        water savings of 50 percent or 
                                        more; and
                                            (cc) $30.00 per thousand 
                                        gallons per year of potable 
                                        water savings of 60 percent or 
                                        more.
                                    (II) Renewable energy use.--For 
                                cost-effective use of renewable energy, 
                                an award of up to $10,000 may be 
                                provided for uses with respect to which 
                                Federal tax credits are not available, 
                                and the Secretary of Energy shall 
                                develop relevant standards for 
                                documenting compliance.
                                    (III) Environmental improvements.--
                                For other environmental improvements 
                                relating to--
                                            (aa) indoor air quality;
                                            (bb) natural lighting;
                                            (cc) use of renewable 
                                        materials; and
                                            (dd) any other such 
                                        improvements, as determined by 
                                        the Secretary of Energy, that 
                                        do not result in a decrease in 
                                        energy efficiency,
                                an award of up to $1,000 for 
                                improvements in each such category.
                    (C) Historic buildings.--Notwithstanding 
                subparagraphs (A) and (B), a building in or eligible 
                for the National Register of Historic Places shall be 
                eligible for awards under this paragraph in amounts up 
                to 120 percent of the amounts set forth in 
                subparagraphs (A) and (B).
                    (D) Supplemental support.--State and local 
                governments may supplement the per-building 
                expenditures under this paragraph with funding from 
                other sources.
    (j) Sources of Federal Funds.--
            (1) Additional state energy program funds.--Any 
        appropriated funding provided to a State Energy Program that is 
        not specifically required to be expended for a different 
        federally designated purpose may be used to support a REEP 
        program.
            (2) Program administration.--State Energy Offices or 
        designated State agencies may expend up to 10 percent of 
        funding provided under this section for program administration.
            (3) Authorization of appropriations.--There are authorized 
        to be appropriated for the purposes of this section, for each 
        of fiscal years 2010, 2011, 2012, and 2013--
                    (A) $2,500,000,000 and such additional sums as may 
                be necessary to the Secretary of Energy for 
                distribution to State Energy Offices and other 
                designated State agencies in accordance with this 
                section;
                    (B) $200,000,000 to the Administrator for program 
                administration costs;
                    (C) $200,000,000 to the Secretary of Energy for 
                program administration costs; and
                    (D) $50,000,000 to the Secretary of Housing and 
                Urban Development for program administration costs.
                                 <all>
```