89–008 

111TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 2d Session 111–594 

PROVIDING FOR CONSIDERATION OF THE BILL (H.R. 4785) TO AMEND THE 

MISCELLANEOUS RURAL DEVELOPMENT PROVISIONS OF THE FARM SECURITY AND RURAL INVESTMENT ACT OF 2002 TO AUTHORIZE THE SECRETARY OF AGRICULTURE TO MAKE LOANS TO CERTAIN ENTITIES 

THAT WILL USE THE FUNDS TO MAKE LOANS TO CONSUMERS TO IMPLEMENT ENERGY EFFICIENCY MEASURES INVOLVING STRUCTURAL 

IMPROVEMENTS AND INVESTMENTS IN COST-EFFECTIVE, COMMERCIAL 

OFF-THE-SHELF TECHNOLOGIES TO REDUCE HOME ENERGY USE 

SEPTEMBER 15, 2010.—Referred to the House Calendar and ordered to be printed 

Mr. MCGOVERN, from the Committee on Rules, 

submitted the following 

R E P O R T 

[To accompany H. Res. 1620] 

The Committee on Rules, having had under consideration House 

Resolution 1620, by a nonrecord vote, report the same to the House 

with the recommendation that the resolution be adopted. 

SUMMARY OF PROVISIONS OF THE RESOLUTION

The resolution provides for consideration of H.R. 4785, the ‘‘Rural 

Energy Savings Program Act,’’ under a structured rule. The resolution provides one hour of general debate equally divided and controlled by the chair and ranking minority member of the Committee on Agriculture and by the chair and ranking minority member of the Committee on Energy and Commerce. The resolution 

waives all points of order against consideration of the bill except 

those arising under clause 9 or 10 of rule XXI. The resolution provides that in lieu of the amendment in the nature of a substitute 

recommended by the Committee on Agriculture now printed in the 

bill, the amendment in the nature of a substitute printed in part 

A of this report shall be considered as an original bill for the purpose of amendment and shall be considered as read. The resolution 

waives all points of order against the amendment in the nature of 

a substitute except those arising under clause 10 of rule XXI. This 

waiver does not affect the point of order available under clause 9 

of rule XXI (regarding earmark disclosure). The resolution makes 

in order only those amendments printed in part B of this report. 

Each such amendment may be offered only in the order printed in 

this report, may be offered only by a Member designated in this report, shall be considered as read, shall be debatable for the time 


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specified in this report equally divided and controlled by the proponent and an opponent, shall not be subject to amendment, and 

shall not be subject to a demand for division of the question. All 

points of order against the amendments in part B except for 

clauses 9 and 10 of rule XXI are waived. The resolution provides 

one motion to recommit with or without instructions. The resolution provides that the Chair may entertain a motion that the Committee rise only if offered by the chair of the Committee on Agriculture or his designee. The resolution provides that the Chair may 

not entertain a motion to strike out the enacting words of the bill. 

EXPLANATION OF WAIVERS

The waiver of all points of order against consideration of the bill 

(except for clauses 9 and 10 of rule XXI) includes a waiver of clause 

4(a) of rule XIII, requiring a three-day layover of the committee report. Although the rule waives all points of order against the 

amendment in the nature of a substitute (except for clause 10 of 

rule XXI), the Committee is not aware of any points of order. The 

waiver of all points of order is prophylactic. 

COMMITTEE VOTES

The results of each record vote on an amendment or motion to 

report, together with the names of those voting for and against, are 

printed below: 

Rules Committee record vote No. 493 

Date: September 15, 2010. 

Measure: H.R. 4785. 

Motion by: Mr. Dreier. 

Summary of motion: To report an open rule. 

Results: Defeated 2–6. 

Vote by Members: McGovern—Nay; Matsui—Nay; Arcuri—Nay; 

Pingree—Nay; Polis—Nay; Dreier—Yea; Foxx—Yea; Slaughter— 

Nay. 

Rules Committee record vote No. 494 

Date: September 15, 2010. 

Measure: H.R. 4785. 

Motion by: Dr. Foxx. 

Summary of motion: To make in order and provide appropriate 

waivers for an amendment by Rep. Barton (TX), #11, which would 

strike section 1 of the substitute, eliminating the Home Star Energy Efficiency Loan Program and making technical and conforming changes. Also would require that all items on the master 

list of residential energy efficiency measures be recommended by 

the Secretary of Agriculture. 

Results: Defeated 2–7. 

Vote by Members: McGovern—Nay; Matsui—Nay; Cardoza— 

Nay; Arcuri—Nay; Pingree—Nay; Polis—Nay; Dreier—Yea; Foxx— 

Yea; Slaughter—Nay. 


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SUMMARY OF THE AMENDMENT IN THE NATURE OF A SUBSTITUTE IN

PART A TO BE CONSIDERED AS AN ORIGINAL BILL

The substitute for H.R. 4785 is nearly identical to the rural energy efficiency loan program language ordered reported by the Agriculture Committee on July 14, authorizing loans from the Rural 

Utilities Service to rural electric cooperatives for purposes of making loans to their residential and farm customers for energy efficiency measures. In addition, the substitute adds a Home Star energy efficiency loan program that is nearly identical to the energy 

efficiency loan program reported out by the Energy and Commerce 

Committee in April as part of H.R. 5019. The Home Star Energy 

Efficiency Loan Program authorizes loans to the States in order for 

States to select eligible entities to provide loans to consumers for 

residential energy efficiency measures. 

SUMMARY OF AMENDMENTS IN PART B TO BE MADE IN ORDER

1. Holden (PA): Would clarify that loan funds under the bill may 

not be used to purchase manufactured homes, makes technical corrections to a Comptroller General report, prohibits provision of 

funds to certain contractors and makes ineligible for loans certain 

Federal Employees. Also requires the Secretaries of Energy and 

Agriculture to take steps to prevent misuse of funds. Would prohibit any additions to direct spending in regards to provisions within this Act. Would not allow an entity with an ongoing capital repayment obligation to the Treasury due to the Troubled Assets Relief Program to participate in the programs within this Act. Would 

ensure that funds provided under this bill would supplement and 

not supplant other energy efficiency funding. (20 minutes) 

2. Cuellar (TX): Would direct the Secretary of Agriculture to provide assistance and technical advice to the qualified entities providing loans under this bill to increase the participation of economically distressed rural communities with unemployment rates above 

the national average. (10 minutes) 

3. McCarthy, Carolyn (NY): Would require that lenders providing 

loans under this Act give priority to active duty members of the 

Armed Forces and to veterans. (10 minutes) 

4. Inslee (WA): Would require the Department of Energy, in consultation with the Secretary of Agriculture, to consider passive 

house retrofits when identifying qualified energy efficiency measures. (10 minutes) 

PART A—TEXT OF THE AMENDMENT IN THE NATURE OF A 

SUBSTITUTE TO BE CONSIDERED AS AN ORIGINAL BILL 

Strike all after the enacting clause and insert the following: 

SECTION 1. HOME STAR ENERGY EFFICIENCY LOAN PROGRAM. 

(a) DEFINITIONS.—In this section: 

(1) ELIGIBLE PARTICIPANT.—The term ‘‘eligible participant’’ 

means a homeowner who receives financial assistance from a 

qualified financing entity to carry out qualifying energy savings measures pursuant to this section, and who is not also a 

qualified consumer under section 2. 

(2) QUALIFIED FINANCING ENTITY.—The term ‘‘qualified financing entity’’ means a State, political subdivision of a State, 


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tribal government, electric utility, natural gas utility, nonprofit 

or community-based organization, energy service company, retailer, or any other entity that— 

(A) meets the eligibility requirements of this section; and 

(B) is designated by the Governor of a State in accordance with subsection (f)(1), 

except that an entity that is an eligible entity under section 2 

shall not be a qualified financing entity. 

(3) QUALIFIED LOAN PROGRAM MECHANISM.—The term ‘‘qualified loan program mechanism’’ means a mechanism for the establishment and operation of a loan program that is— 

(A) administered by a qualified financing entity; and 

(B) funded in significant part— 

(i) by funds provided by or overseen by a State; or 

(ii) through the energy loan program of the Federal 

National Mortgage Association. 

(4) QUALIFYING ENERGY SAVINGS MEASURE.—The term ‘‘qualifying energy savings measure’’ means a measure listed under 

subsection (c)(1) or (2) or stipulated in a whole-house analysis 

under subsection (c)(3). 

(b) ESTABLISHMENT.—The Secretary of Energy shall establish a 

Home Star Energy Efficiency Loan Program under which the Secretary of Energy shall offer loans at zero percent interest to States 

to support financial assistance provided by qualified financing entities for the installation of qualifying energy savings measures. 

(c) ENERGY EFFICIENCY MEASURES AND STANDARDS.—The Secretary of Energy, in consultation with the Secretary of Agriculture, 

shall publish— 

(1) not later than 90 days after the date of enactment of this 

Act, a master list of residential energy efficiency measures determined to be cost-effective, readily available from commercial 

sources, to be permanently installed in a residence, and capable of supporting measurement and verification of the energy 

savings that results from their adoption; 

(2) additions to such a list, approved by the Secretary of Energy, of other residential energy efficiency measures that are— 

(A) recommended by the Secretary of Agriculture; 

(B) calculated to achieve sufficient energy savings that 

they will achieve a simple payback within 10 years or less; 

and 

(C) permanently installed in a residence; 

(3) specifications for whole-house energy performance analyses simulating energy use before and after a retrofit utilizing 

measures from the master list published pursuant to paragraphs (1) and (2) and such other permanent structural measures as can be demonstrated, when installed and operated as 

intended, to improve residential energy efficiency in a manner 

that can be determined with confidence to be cost-effective and 

to recover their own cost in energy cost savings within the 

term of a proposed loan; and 

(4) a protocol for measurement and verification of the energy 

savings that have resulted from any and all energy efficiency 

measures taken with respect to a residence and financed in 

whole or in part pursuant to this title. 


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(d) ELIGIBILITY OF QUALIFIED FINANCING ENTITIES.—To be eligible to participate in the Home Star Loan Program, a qualified financing entity shall— 

(1) offer a financing product under which eligible participants may pay over time for the cost to the eligible participant 

(after all applicable Federal, State, local, and other rebates or 

incentives are applied) of installations described in subsection 

(b); 

(2) require all financed installations to be performed by contractors in a manner that meets building code requirements 

and other appropriate minimum standards; 

(3) establish standard underwriting criteria to determine the 

eligibility of Home Star Loan Program applicants, which criteria shall be consistent with— 

(A) with respect to unsecured consumer loan programs, 

standard underwriting criteria used under the energy loan 

program of the Federal National Mortgage Association; or 

(B) with respect to secured loans or other forms of financial assistance, commercially recognized best practices applicable to the form of financial assistance being provided 

(as determined by the designated entity administering the 

Home Star Loan Program in the State); and 

(4) undertake particular efforts to make such loans available 

in public use microdata areas that have a poverty rate of 12 

percent or more in a proportion of total loans made at least 

equal to the proportion the number of residents in such areas 

bears to the total population of the area served by that qualified financing entity. 

(e) ALLOCATION.—In allocating 75 percent of the loan funds made 

available to States for each fiscal year under this section, the Secretary of Energy shall use the formula used to allocate funds to 

States to carry out 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.), with appropriate modifications to reflect 

the funds to be provided in States for loans under section 2. In allocating the remaining 25 percent of the loan funds made available 

to States for each fiscal year under this section, the Secretary of 

Energy may vary the result of the formula to recognize and reward 

those States that make the best progress in providing loans to lowincome areas pursuant to subsection (d)(4). 

(f) QUALIFIED FINANCING ENTITIES.—Before making funds available to a State under this section, the Secretary of Energy shall require the Governor of the State to provide to the Secretary of Energy a letter of agreement that the State— 

(1) will use the funds provided pursuant to this section solely 

as provided in this section; 

(2) has 1 or more qualified financing entities that meet the 

requirements of this section; 

(3) has established, or has required its designated qualified 

financing entities to establish, a qualified loan program mechanism that— 

(A) will use a quality assurance program or another appropriate methodology to ensure energy savings; 

(B) incorporates an effective repayment mechanism, 

which may include— 


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(i) on-utility-bill repayment; 

(ii) tax assessment or other form of property assessment financing; 

(iii) municipal service charges; 

(iv) energy or energy efficiency services contracts; 

(v) energy efficiency power purchase agreements; 

(vi) unsecured loans applying the underwriting requirements of the energy loan program of the Federal 

National Mortgage Association; or 

(vii) alternative contractual repayment mechanisms 

that have been demonstrated to have appropriate risk 

mitigation features; 

(4) will provide, in a timely manner, all information regarding the administration of the Home Star Loan Program as the 

Secretary of Energy may require to permit the Secretary of Energy to meet program evaluation requirements; and 

(5) will commit to the full repayment of the loaned funds to 

the Secretary of Energy by a date not later than 20 years from 

the date of the loan closing. 

(g) USE OF FUNDS.—Funds made available to States for carrying 

out the Home Star Loan Program may be used to support financing 

mechanisms offered by qualified financing entities to eligible participants, including— 

(1) interest rate reductions to interest rates as low as zero 

percent; 

(2) loan loss reserves or other forms of credit enhancement; 

(3) revolving loan funds from which qualified financing entities may offer direct loans; or 

(4) other debt instruments necessary— 

(A) to use available funds to obtain appropriate leverage 

through private investment; and 

(B) to support widespread deployment of energy efficiency programs. 

(h) USE OF REPAID FUNDS.—In the case of a revolving loan fund 

described in subsection (g)(3), a qualified financing entity may use 

funds repaid by eligible participants under the Home Star Loan 

Program to provide financial assistance for additional eligible participants for installations described in subsection (b) in a manner 

that is consistent with this section. 

(i) ADMINISTRATIVE COSTS.—A State may permit a qualified financing entity to charge interest of 3 percent to cover the costs of 

loan administration and personnel and program management, or 

for establishing a loan loss reserve. 

(j) REPORTING REQUIREMENTS.—The Secretary of Energy shall report to the Congress on the implementation of this title, including 

the energy savings and cost savings estimated to be achieved, not 

later than 1 year after the date of enactment of this Act, and again 

by not later than 2 years after the date of enactment of this section. 

(k) ASSESSMENT BY GOVERNMENT ACCOUNTABILITY OFFICE.—The 

Comptroller General shall, by not later than 18 months after the 

date of enactment of this Act, prepare and submit to the Congress 

an analysis and report determining— 

(1) the actual taxpayer funds made available for the program 

created in this section; 


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(2) the actual amounts of such funds made available to eligible participants or qualified consumers in the program created 

in this section; 

(3) the extent of measured and verified residential energy 

savings achieved and expected to be achieved on an ongoing 

basis as a function of this program; 

(4) the extent to which funds were made available to support 

commercial or industrial energy efficiency measures under this 

program; 

(5) the extent to which funds made available were expended 

for training, administration, program support by contractors, 

or trade association activities under this program; and 

(6) the consistency and rigor of the standards for energy efficiency and for measurement and verification adopted and implemented by this program. 

(l) AUTHORIZATION.—There are authorized to be appropriated for purposes of this section $850,000,000 for each of fiscal years 2010 

through 2014, which shall remain available until expended. 

SEC. 2. RURAL ENERGY SAVINGS PROGRAM. 

(a) DEFINITIONS.—In this section: 

(1) ELIGIBLE ENTITY.—The term ‘‘eligible entity’’ means— 

(A) any public or cooperative electric utility that is eligible to borrow from the Rural Utilities Service electrification program authorized under the Rural Electrification 

Act of 1936 (7 U.S.C. 901 et seq.) that serves a rural area; 

(B) any current borrower of the Rural Utilities Service 

electrification program authorized under that Act; or 

(C) any entity primarily owned or controlled by an entity 

described in subparagraph (A) or (B). 

(2) ENERGY EFFICIENCY MEASURE.—The term ‘‘energy efficiency measure’’, with respect to property served by an eligible 

entity, means a fixed structural improvement and investment 

in a cost-effective, commercial off-the-shelf technology to reduce 

residential energy use that is either— 

(A) included in the master list published under section 

1(c)(1) and (2); or 

(B) stipulated in a whole-house simulation conducted 

pursuant to section 1(c)(3). 

(3) FARM EFFICIENCY MEASURE.—The term ‘‘farm efficiency 

measure’’ means an energy saving application that is a fixed 

improvement installed in or attached to a building or structure 

on a farm at a total loan value for that farm of $50,000 or less, 

that is not otherwise an energy efficiency measure, and that 

would achieve energy savings sufficient to repay the cost of the 

measure in 10 years or fewer. 

(4) QUALIFIED CONSUMER.—The term ‘‘qualified consumer’’ 

means a consumer served by an eligible entity that has the 

ability to repay a loan made under subsection (d), as determined by an eligible entity, and who has not accepted any loan 

as an eligible participant pursuant to section 1. 

(5) QUALIFIED ENTITY.—The term ‘‘qualified entity’’ means 

any organization that the Secretary of Agriculture determines 

has significant experience in providing eligible entities with— 

(A) advice on energy, environmental, energy efficiency, 

and information research and technology; 


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(B) training, education, and consulting; 

(C) guidance in energy and operational issues and rural 

community and economic development; and 

(D) other relevant assistance, as determined by the Secretary of Agriculture. 

(6) RURAL AREA.—The term ‘‘rural area’’ means any area 

other than— 

(A) a city or town that has a population of greater than 

50,000 inhabitants; and 

(B) any urbanized area contiguous and adjacent to a city 

or town described in subparagraph (A). 

(b) ESTABLISHMENT.—The Secretary of Agriculture, acting 

through the Rural Utility Service, shall establish the Rural Star 

Energy Savings Program for the purpose of making loans to eligible 

entities that agree to accept the loan funds authorized pursuant to 

this section to make loans to qualified consumers for the purpose 

of implementing residential energy efficiency measures or farm efficiency measures approved by the Secretary of Agriculture. 

(c) LOANS TO ELIGIBLE ENTITIES.— (1) LOANS AUTHORIZED.—Subject to paragraph (2), the Secretary of Agriculture shall make loans to an eligible entity that 

agrees that the loan funds will be used to make loans to qualified consumers as described in subsection (d) for the purpose 

of implementing one or more energy efficiency measures, or a 

farm efficiency measure in response to an application by an eligible entity. 

(2) LIST, PLAN, AND MEASUREMENT AND VERIFICATION RE- QUIRED.— 

(A) IN GENERAL.—As a condition to receiving a loan 

under paragraph (1), an eligible entity shall— 

(i) establish a list of energy efficiency measures or 

farm efficiency measures expected to decrease energy 

use or costs of a qualified consumer from the master 

list published under section 1(c)(1) and (2); 

(ii) establish a procedure to identify to the Secretary 

of Agriculture any specific farm efficiency measures 

for which the eligible entity seeks authority to make 

a loan; 

(iii) prepare an implementation plan for use of the 

loan funds to ensure that a loan to a qualified consumer is for energy efficiency investments that will 

achieve savings sufficient to service the loan during 

the term of the loan; and 

(iv) provide for appropriate measurement and 

verification as prescribed by the Secretary of Agriculture to ensure the actual use and effectiveness of 

the energy efficiency loans made by the eligible entity. 

(B) REVISION OF LIST OF ENERGY EFFICIENCY MEASURES.—An eligible entity may update the list required 

under subparagraph (A)(i) to account for efficiency technologies added to the master list published under section 

1(c)(1) pursuant to section 1(c)(2), or farm efficiency measures approved by the Secretary of Agriculture. 

(C) EXISTING ENERGY EFFICIENCY PROGRAMS.—An eligible entity that, on or before the date of the enactment of 


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this Act, has already established an energy efficiency program for qualified consumers may submit an existing list 

of energy efficiency measures or farm efficiency measures, 

implementation plans, or measurement and verification 

systems to satisfy the requirements of subparagraph (A) to 

the Secretary of Agriculture and may use such list until 

and unless such list is inconsistent with the measures published pursuant to section 1(c)(1) and (2). 

(3) LOAN TERMS FOR LOANS TO ELIGIBLE ENTITIES.— 

(A) NO INTEREST.—A loan made to an eligible entity 

under paragraph (1) shall bear no interest. 

(B) REPAYMENT.—With respect to a loan under paragraph (1)— 

(i) the term shall not exceed 20 years from the date 

the loan is closed; and 

(ii) except as provided in subparagraph (D), the repayment of each advance shall be amortized for a period not to exceed 10 years. 

(C) AMOUNT OF ADVANCES.—Any advance of loan funds 

to an eligible entity in any single year shall not exceed 30 

percent of the approved loan amount. 

(D) SPECIAL ADVANCE FOR START-UP ACTIVITIES.— 

(i) IN GENERAL.—In order to assist an eligible entity 

in defraying initial start-up costs, the Secretary of Agriculture shall allow an eligible entity to request a special advance. 

(ii) AMOUNT OF SPECIAL ADVANCE.—No eligible entity may receive a special advance under this subparagraph for an amount that is greater than 4 percent of 

the loan amount received by the eligible entity under 

paragraph (1). 

(iii) REPAYMENT.—The repayment of the special advance shall be required within 10 years after the special advance is made and, at the election of the eligible 

entity, may be deferred to the end of the 10-year period. 

(E) LIMITATION ON ADVANCES.—All advances shall be 

made under a loan described in paragraph (1) within the 

first 10 years of the term of the loan. 

(d) LOANS TO QUALIFIED CONSUMERS.— 

(1) TERMS OF LOANS.—Loans made by an eligible entity to 

qualified consumers using loan funds provided by the Secretary of Agriculture under subsection (c)— 

(A) may bear interest, not to exceed three percent, to be 

used by the eligible entity for purposes such as establishing a loan loss reserve and to offset personnel and program costs of the eligible entity to provide the loans; 

(B) shall finance only energy efficiency measures or farm 

efficiency measures for the purpose of decreasing energy 

usage or costs of a qualified consumer by an amount such 

that a loan term of not more than 10 years will achieve a 

simple payback of the amount invested; 

(C) shall not be used to fund purchases of, or modifications to, personal property unless the personal property— 


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(i) is or becomes attached to real property as a fixture; or 

(ii) is a manufactured home; 

(D) shall be repaid through charges added to the electric 

bill for the property for, or at which energy efficiency 

measures are or will be implemented, except that this requirement shall not be construed to prohibit— 

(i) the voluntary prepayment of a loan by the owner 

of the property; or 

(ii) the use of any additional repayment mechanisms 

that are— 

(I) demonstrated to have appropriate risk mitigation features, as determined by the eligible entity; or 

(II) required if the qualified consumer is no 

longer a customer of the eligible entity; and 

(E) shall require an energy audit to determine the impact of proposed energy efficiency measures on the energy 

costs and consumption of the qualified consumer. 

(2) CONTRACTORS.—In addition to any other qualified general 

contractor, eligible entities may serve as general contractors. 

(3) USE OF OTHER ENERGY EFFICIENCY INCENTIVES.—Energy 

efficiency incentives made available under any other Act, including rebates, grants, or any other payments, may be used 

to reduce the amount of a loan made under this subsection to 

qualified consumers in order to meet the requirement of paragraph (1)(B). 

(e) MEASUREMENT, VERIFICATION, TRAINING, AND TECHNICAL AS- SISTANCE.— (1) DUTIES OF THE SECRETARY.—The Secretary of Agriculture— 

(A) shall establish an implementation and measurement 

and verification advisory committee consisting of representatives of eligible entities and qualified entities; 

(B) may enter into cooperative agreements with qualified 

entities to provide technical assistance and training to the 

employees of eligible entities to carry out this section; and 

(C) shall establish a process to compile and maintain a 

directory of energy efficiency auditors that are used by eligible entities to carry out this section. 

(2) EXCEPTION.— 

(A) The Secretary of Agriculture shall not utilize the authority provided under this subsection or subsection (j) 

to— 

(i) develop, adopt, or implement a public labeling 

system that rates and compares the energy performance among qualified consumers; or 

(ii) require the public disclosure of an energy performance evaluation or rating developed for any qualified consumer. 

(B) Nothing in this paragraph shall preclude— 

(i) the computation, collection, or use, by the Secretary of Agriculture, eligible entity, or qualified entity 

for the purposes of aggregating information on the rating and comparison of the energy performance among 


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qualified consumers with and without energy efficiency features or on energy performance evaluation or 

rating; 

(ii) the use and publication of aggregate data (without identifying individual qualified consumers) based 

on information referred to in clause (i) to determine or 

demonstrate the performance of this program; or 

(iii) the provision of information referred to in clause 

(i) with respect to a qualified consumer: 

(I) to the State, eligible consumer, eligible entity, or qualified entity, as necessary to enable carrying out this title; or 

(II) for purposes of prosecuting fraud and abuse. 

(f) FAST START DEMONSTRATION PROJECTS.—The Secretary of Agriculture shall, not later than 90 days after the enactment of this 

section, enter into agreements with eligible entities (or groups of eligible entities) that have established an energy efficiency program 

described in subsection (c)(2)(C) to establish an energy efficiency 

loan demonstration projects consistent with the purposes of this 

section that— 

(1) implement approaches to energy audits and investments 

in energy efficiency measures or farm efficiency measures that 

yield measurable and predictable savings; 

(2) use measurement and verification processes to determine 

the effectiveness of energy efficiency loans made by eligible entities; 

(3) include training for employees of eligible entities, including any contractors of such entities, to implement or oversee 

the activities described in paragraphs (1) and (2); 

(4) provide for the participation of a majority of eligible entities in a State; 

(5) reduce the need for generating capacity; 

(6) provide efficiency loans to— 

(A) not fewer than 20,000 consumers, in the case of a 

single eligible entity; or 

(B) not fewer than 80,000 consumers, in the case of a 

group of eligible entities; and 

(7) serve areas where 15 percent or more of consumers reside— 

(A) in manufactured homes; or 

(B) in housing units that are more than 50 years old. 

(g) ADDITIONAL AUTHORITY.—The authority provided in this section is in addition to any authority of the Secretary of Agriculture 

to offer loans under any other law. 

(h) EFFECTIVE PERIOD.—Except as otherwise provided in this section, the loans and other expenditures required to be made under 

this section are authorized to be made during each of fiscal years 

2010 through 2014. 

(i) REGULATIONS.— 

(1) IN GENERAL.—Except as otherwise provided in this subsection, not later than 180 days after the date of enactment of 

this section, the Secretary of Agriculture shall promulgate such 

regulations as are necessary to implement this section. 


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(2) PROCEDURE.—The promulgation of the regulations and 

administration of this section shall be made without regard 

to— 

(A) chapter 35 of title 44, United States Code (commonly 

known as the ‘‘Paperwork Reduction Act’’); and 

(B) the Statement of Policy of the Secretary of Agriculture effective July 24, 1971 (36 Fed. Reg. 13804), relating to notices of proposed rulemaking and public participation in rulemaking. 

(3) CONGRESSIONAL REVIEW OF AGENCY RULEMAKING.—In 

carrying out this section, the Secretary of Agriculture shall use 

the authority provided under section 808 of title 5, United 

States Code. 

(4) INTERIM REGULATIONS.—Notwithstanding paragraphs (1) 

and (2), to the extent regulations are necessary to carry out 

any provision of this section, the Secretary of Agriculture shall 

implement such regulations through the promulgation of an interim rule. 

(j) AUDIT OF PROGRAM.—The Secretary of Agriculture shall conduct an audit of the program authorized by this section to ensure 

that the funds provided to eligible entities under this section are 

used in accordance with the purpose of this section. 

(k) REPORTING REQUIREMENTS.—The Secretary of Agriculture 

shall report to the Congress on the implementation of this Act, including the energy savings and costs savings estimated to be 

achieved, not later than 1 year after the date of enactment of this 

Act, and again not later than 2 years after the date of enactment 

of this Act. 

(l) ASSESMENT BY GOVERNMENT ACCOUNTABILITY OFFICE.—The 

Comptroller General shall, by not later than 18 months after the 

date of enactment of this Act, prepare and submit to the Congress 

an analysis and report determining— 

(1) the actual taxpayer funds made available for the program 

created in this section; 

(2) the actual amounts of such funds made available to eligible entities for qualified consumers in the program created in 

this section; 

(3) the extent of measured and verified energy savings 

achieved and expected to be achieved on an ongoing basis as 

a function of the program created in this section; 

(4) the extent to which funds made available were expended 

for training, administration, and program support by eligible 

entities and qualified entities under the program created in 

this section; and 

(5) the consistency and rigor of the standards for energy efficiency and for measurement and verification adopted and implemented by program created in this section. 

(m) AUTHORIZATION.—There are authorized to be appropriated 

for purposes of this section $150,000,000 for each of fiscal years 

2010 through 2014, which shall remain available until expended. 


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PART B—TEXT OF THE AMENDMENTS TO BE MADE IN 

ORDER 

1. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE HOLDEN

OF PENNSYLVANIA OR HIS DESIGNEE, DEBATABLE FOR 20 MINUTES

Page 1, line 17, strike ‘‘and’’. 

Page 1, after line 17, insert the following new subparagraph: 

(B) is not an entity that has an ongoing capital repayment obligation to the Department of the Treasury pursuant to the Troubled Asset Relief Program (Public Law 110– 

343, 122 Stat. 3765); and 

Page 2, line 1, redesignate subparagraph (B) as subparagraph 

(C). 

Page 6, after line 18, insert the following new paragraph (and redesignate the subsequent paragraphs accordingly): 

(2) will use the funds provided under this section to supplement and not supplant any prior or planned Federal and State 

funding provided to carry out energy efficiency programs, on 

the condition that, to the extent the Secretary finds that a 

State has supplanted other such programs with funding under 

this section, the Secretary may with hold an equivalent 

amount of funding from allocations for the State under this 

section; 

Page 10, strike lines 5 through 7. 

Page 10, line 8, strike ‘‘(5)’’ and insert ‘‘(4)’’. 

Page 10, line 12, strike ‘‘(6)’’ and insert ‘‘(5)’’. 

Page 10, line 17, after ‘‘this section’’ insert ‘‘, provided that enactment of this Act would not increase direct spending,’’. 

Page 18, strike lines 3 through 8 and insert the following: 

(C) shall not be used to fund— 

(i) the purchase of a manufactured home; or 

(ii) the purchase of any other personal property unless the personal property is or becomes attached to 

real property as a fixture; 

(D) shall not be used to fund modifications to personal 

property unless the personal property— 

(i) is or becomes attached to real property as a fixture; or 

(ii) is a manufactured home; 

Page 18, line 9, strike ‘‘(D)’’ and insert ‘‘(E)’’. 

Page 18, line 24, strike ‘‘(E)’’ and insert ‘‘(F)’’. 

Page 20, line 8, strike ‘‘(j)’’ and insert ‘‘(i)’’. 

Page 25, line 19, after ‘‘this section’’ insert ‘‘, provided that enactment of this Act would not increase direct spending,’’. 

At the end, add the following: 

SEC. 3. PROHIBITION. 

Neither the Secretary of Energy nor the Secretary of Agriculture 

shall provide any funds authorized by this Act to any contractor 

that employs an employee to work in a consumer’s home if that employee has been convicted of, or plead guilty to, a crime of child molestation, rape, or any other form of sexual assault. 

SEC. 4. FEDERAL EMPLOYEES. 

(a) A loan shall not be provided to a Federal employee under this 

Act if any of the following apply to the employee: 


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(1) The employee has a seriously delinquent tax debt (as determined under subsection (b)). 

(2) The employee received a payment under the Low-Income 

Home Energy Assistance Act of 1981 (42 U.S.C. 8621 et seq.) 

but was ineligible to receive the payment under the criteria described in section 2605(b)(2) of such Act (42 U.S.C. 8624(b)(2)). 

(3) The employee has been officially disciplined for violations 

of subpart G of the Standards of Ethical Conduct for Employees of the Executive Branch for viewing, downloading, or exchanging pornography, including child pornography, on a Federal Government computer or while performing official Federal 

Government duties. 

(b) For purposes of subsection (a)(1), a ‘‘seriously delinquent tax 

debt’’ means an outstanding debt under the Internal Revenue Code 

of 1986 for which a notice of lien has been filed in public records 

pursuant to section 6323 of such Code, except that such term does 

not include— 

(1) a debt that is being paid in a timely manner pursuant to 

an agreement under section 6159 or section 7122 of such Code; 

or 

(2) a debt with respect to which a collection due process 

hearing under section 6330 of such Code is requested, pending, 

or completed and no payment is required. 

SEC. 5. WRONGFUL USE OR DIVERSION OF PROGRAM FUNDS. 

The Secretary of Energy and the Secretary of Agriculture shall 

take such steps as are necessary and appropriate, including requirements for the immediate repayment of Federal assistance, to 

ensure that none of the funds authorized in this Act are used— 

(1) in violation of law; 

(2) in a manner that creates a significant threat to human 

health or safety; 

(3) in a manner that undercuts the integrity and accountability of the program under this Act; or 

(4) for purposes other than those serving the objectives of 

this Act. 

2. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE CUELLAR

OF TEXAS OR HIS DESIGNEE, DEBATABLE FOR 10 MINUTES

At the end add the following: 

(n) The Secretary of Agriculture shall provide assistance and 

technical advice to the qualified entities providing loans under this 

bill in conducting outreach for the purposes of increasing participation of economically distressed rural communities with unemployment rates above the national average, or rural areas that lack 

basic living necessities, such as water and sewer systems, electricity, and safe, sanitary housing, in the program established 

under this section. 

3. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE CAROLYN

MCCARTHY OF NEW YORK OR HER DESIGNEE, DEBATABLE FOR 10 

MINUTES

At the end add the following: 


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SEC. ll. PRIORITY FOR ACTIVE DUTY MEMBERS OF THE ARMED 

FORCES AND VETERANS. 

In providing loans to eligible participants under section 1 or 

qualified consumers under section 2, the lender shall give priority 

to members of the Armed Forces serving on active duty and to veterans (as defined in section 101 of title 38, United States Code). 

4. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE INSLEE OF

WASHINGTON OR HIS DESIGNEE, DEBATABLE FOR 10 MINUTES

Page 4, after line 12, insert the following: 

In determining which residential energy efficiency measures to include in the list published under paragraph (1) or (2), the Secretary 

of Energy, in consultation with the Secretary of Agriculture, shall 

consider advanced performance initiatives, such as the Passive 

House Standard as certified by the Passive House Institute US. 

Æ 


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