II 

111TH CONGRESS 

1ST SESSION S. 1379 

To encourage energy efficiency and conservation and development of renewable 

energy sources for housing, commercial structures, and other buildings, 

and to create sustainable communities. 

IN THE SENATE OF THE UNITED STATES 

JUNE 25, 2009 

Mr. WHITEHOUSE (for himself, Mr. SCHUMER, and Mr. MENENDEZ) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs 

A BILL 

To encourage energy efficiency and conservation and development of renewable energy sources for housing, commercial structures, and other buildings, and to create sustainable communities. 

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 AND TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Energy Efficiency in Housing Act of 2009’’. 

6 (b) TABLE OF CONTENTS.—The table of contents for 

7 this Act is as follows: 

Sec. 1. Short title and table of contents. 


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Sec. 2. Findings and purposes. 

Sec. 3. Definitions. 

Sec. 4. Implementation of energy efficiency participation incentives for HUD 

programs. 

Sec. 5. Incentives for energy efficient mortgages and location efficient mortgages. 

Sec. 6. Mortgage incentives for energy efficient multifamily housing. 

Sec. 7. Energy efficiency and conservation demonstration program for multifamily housing projects assisted with project-based rental assistance. 

Sec. 8. Additional credit for Fannie Mae and Freddie Mac housing goals for 

energy efficient mortgages. 

Sec. 9. Duty to serve underserved markets for energy efficient and location efficient mortgages. 

Sec. 10. Consideration of energy efficiency under FHA mortgage insurance programs and Native American and Native Hawaiian loan guarantee programs. 

Sec. 11. Energy efficient mortgages education and outreach campaign. 

Sec. 12. Collection of information on energy efficient and location efficient 

mortgages through Home Mortgage Disclosure Act. 

Sec. 13. Energy efficiency certifications for housing with mortgages insured by 

FHA. 

Sec. 14. Assisted housing energy loan pilot program. 

Sec. 15. HOPE VI green developments requirement. 

Sec. 16. Consideration of energy efficiency improvements in appraisals. 

Sec. 17. Additional requirements for the Housing Assistance Council. 

Sec. 18. Rural housing and economic development assistance. 

Sec. 19. Revolving fund for loans to States and Indian tribes to carry out renewable energy sources activities. 

Sec. 20. Competitive grant program to increase sustainable low-income community development capacity. 

Sec. 21. Insurance coverage for loans for financing of renewable energy systems 

leased for residential use. 

Sec. 22. Green banking centers. 

Sec. 23. GAO reports on availability of affordable mortgages. 

Sec. 24. Public housing energy cost report. 

1 SEC. 2. FINDINGS AND PURPOSES. 

2 (a) CONGRESSIONAL FINDINGS.—The Congress finds 

3 that— 

4 (1) making the United States energy efficient is 

5 essential for enhancing national security, fighting 

6 climate change, and creating jobs; 

7 (2) unchecked use of energy resources poses a 

8 significant threat to the national security, economy, 


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1 public health, and welfare of the people of the 

2 United States, the well-being of other nations, and 

3 the global environment; 

4 (3) prompt, decisive action is critical to encour5 age energy efficiency and conservation and the devel6 opment of renewable energy sources for housing, 

7 commercial structures, and other buildings, and to 

8 create sustainable communities; and 

9 (4) it is possible and desirable to reduce energy 

10 consumption in the United States while employing— 

11 (A) cost containment measures; 

12 (B) periodic review of requirements; 

13 (C) an aggressive program for deploying 

14 advanced energy technology; and 

15 (D) programs to assist low- and middle-in16 come energy consumers. 

17 (b) PURPOSES.—The purposes of this Act are— 

18 (1) to encourage the use of energy efficiency 

19 and conservation methods in Federal housing pro20 grams; 

21 (2) to expand the use of energy efficient mort22 gages; 

23 (3) to provide for the development and installa24 tion of renewable energy sources for housing, com25 mercial structures, and other buildings; 


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1 (4) to create sustainable communities; 

2 (5) to support the creation of a stable ‘‘green 

3 jobs’’ sector by increasing demand for energy effi4 cient products and professionals with expertise in 

5 green building standards; and 

6 (6) to achieve these goals while preserving the 

7 development, benefits, and affordability of Federal 

8 housing programs. 

9 SEC. 3. DEFINITIONS. 

10 In this Act, the following definitions shall apply: 

11 (1) ENERGY AUDIT.—The term ‘‘energy audit’’ 

12 means an investment grade energy audit conducted 

13 for purposes of paragraph (2)(B)(iii), in accordance 

14 with such standards as the Secretary shall establish, 

15 after optional consultation with any advisory com16 mittee established pursuant to section 7(c)(2) of this 

17 Act. 

18 (2) ENHANCED ENERGY EFFICIENCY STAND19 ARDS.—The term ‘‘enhanced energy efficiency stand20 ards’’ means any one of the following: 

21 (A) GREEN BUILDING STANDARDS.—Green 

22 building standards, as that term is defined in 

23 paragraph (3). 

24 (B) RESIDENTIAL STRUCTURES.—In the 

25 case of a residential single family or multifamily 


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1 structure, standards established by the Sec2 retary, by regulation, that— 

3 (i) impose requirements additional to, 

4 or more stringent than, minimum energy 

5 efficiency standards, as that term is de6 fined in paragraph (6); 

7 (ii) in the case of a newly constructed 

8 structure, are identical to the Energy Star 

9 standards established by the Environ10 mental Protection Agency, or any suc11 cessor thereto adopted by the Secretary by 

12 regulation; 

13 (iii) in the case of an existing struc14 ture, require a reduction in energy con15 sumption from the previous level of con16 sumption for the structure, as determined 

17 in accordance with energy audits per18 formed both before and after any rehabili19 tation or improvements undertaken to re20 duce such consumption, that exceeds the 

21 reduction necessary for compliance with 

22 minimum energy efficiency standards. 

23 (C) NONRESIDENTIAL STRUCTURES.—In 

24 the case of a nonresidential structure, include 

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1 ments, standards, checklists, or rating systems 

2 for nonresidential structures as the Secretary 

3 determines are necessary. 

4 (3) GREEN BUILDING STANDARDS.—The term 

5 ‘‘green building standards’’ means systems and 

6 standards for residential and nonresidential struc7 tures that are established or adopted by the Sec8 retary, by regulation, and that— 

9 (A) require the use of sustainable design 

10 principles to— 

11 (i) reduce the use of nonrenewable re12 sources; 

13 (ii) encourage energy efficient con14 struction and rehabilitation and the use of 

15 renewable energy resources; 

16 (iii) minimize the impact of develop17 ment on the environment; 

18 (iv) improve indoor air quality; 

19 (v) maximize water conservation; and 

20 (vi) encourage the selection of build21 ing materials that reduce adverse impacts 

22 on the environment; 

23 (B) impose requirements additional to, or 

24 more stringent than, minimum energy efficiency 


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1 standards, as that term is defined in paragraph 

2 (6); 

3 (C) include— 

4 (i) the national Green Communities 

5 criteria checklist for residential construc6 tion, which provides criteria for the design, 

7 development, and operation of affordable 

8 housing, or any successor thereto adopted 

9 by the Secretary by regulation; 

10 (ii) the Leadership in Energy and En11 vironmental Design (LEED) certification 

12 for new construction, the LEED for 

13 Homes rating system, the LEED for Core 

14 and Shell rating system, as applicable, or 

15 any successors thereto adopted by the Sec16 retary by regulation; 

17 (iii) the Green Globes assessment and 

18 rating system of the Green Building Initia19 tive; 

20 (iv) in the case of manufactured hous21 ing, the Energy Star standards established 

22 by the Environmental Protection Agency 

23 with respect to fixtures, appliances, and 

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1 cessor thereto adopted by the Secretary by 

2 regulation; 

3 (v) the National Green Building 

4 Standard, only— 

5 (I) if such standard is ratified 

6 under the American National Stand7 ards Institute process; 

8 (II) upon expiration of the 180- 

9 day period beginning upon such ratifi10 cation; and 

11 (III) if, during such 180-day pe12 riod, the Secretary does not reject the 

13 applicability of such standard for pur14 poses of this paragraph; and 

15 (vi) any other requirement, standard, 

16 checklist, or rating system for green build17 ing or sustainability that the Secretary— 

18 (I) determines is necessary for a 

19 specific type of residential single fam20 ily or multifamily structure; or 

21 (II) may determine to adopt or 

22 apply not later than 180 days after 

23 the date of receipt of any written re24 quest, made in such form as the SecVerDate Nov 24 2008 01:19 Jul 01, 2009 Jkt 079200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S1379.IS S1379

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1 retary shall provide, for such adoption 

2 and application; and 

3 (D) may be waived by the Secretary, if the 

4 Secretary determines that waiver of such regu5 lations would promote enhanced energy effi6 ciency or conservation. 

7 (4) HUD.—The term ‘‘HUD’’ means the De8 partment of Housing and Urban Development. 

9 (5) HUD ASSISTANCE.—The term ‘‘HUD as10 sistance’’ means financial assistance that is awarded, 

11 competitively or noncompetitively, allocated by for12 mula, or provided by HUD through loan insurance 

13 or guarantee. 

14 (6) MINIMUM ENERGY EFFICIENCY STAND15 ARDS.— 

16 (A) IN GENERAL.—The term ‘‘minimum 

17 energy efficiency standards’’ has the meaning 

18 given that term by regulations of the Secretary. 

19 (B) REGULATIONS FOR RESIDENTIAL

20 STRUCTURES.—Regulations issued by the Sec21 retary under subparagraph (A) shall, in the 

22 case of a residential single family or multifamily 

23 structure— 

24 (i) require the structure to comply 

25 with the applicable provisions of the AmerVerDate Nov 24 2008 01:19 Jul 01, 2009 Jkt 079200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S1379.IS S1379

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1 ican Society of Heating, Refrigerating, and 

2 Air-Conditioning Engineers Standard 

3 90.1–2007, or any successor thereto adopt4 ed by the Secretary, by regulation; 

5 (ii) require the structure to comply 

6 with the applicable provisions of the 2009 

7 International Energy Conservation Code, 

8 or any successor thereto adopted by the 

9 Secretary, by regulation; 

10 (iii) in the case of an existing struc11 ture— 

12 (I) where the Secretary deter13 mines such action is cost effective, re14 quire— 

15 (aa) the structure to have 

16 undergone rehabilitation or im17 provements that are completed 

18 after the date of enactment of 

19 this Act; and 

20 (bb) the energy consumption 

21 for the structure to have been re22 duced by not less than 20 per23 cent from the previous level of 

24 consumption, as determined in 

25 accordance with energy audits 


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1 performed both before and after 

2 any rehabilitation or improve3 ments undertaken to reduce such 

4 consumption; 

5 (II) if the structure has 4 stories 

6 or more, require the structure to dem7 onstrate a 20 percent improvement in 

8 the proposed building performance 

9 rating when compared to a baseline 

10 building performance rating resulting 

11 from a whole building project simula12 tion conducted in accordance with the 

13 Building Performance Rating Method 

14 in Appendix G of American Society of 

15 Heating, Refrigerating, and Air-Con16 ditioning Engineers Standard 90.1– 

17 2004, or any successor thereto adopt18 ed by the Secretary, by regulation; 

19 and 

20 (III) if the structure has fewer 

21 than 4 stories, require the structure 

22 to demonstrate, by modeling based on 

23 the Home Energy Rating System 

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1 ment in the proposed building per2 formance rating; and 

3 (iv) require the structure to comply 

4 with any provisions of such other energy 

5 efficiency requirements, standards, check6 lists, or ratings systems as the Secretary 

7 determines are necessary for a specific 

8 type of residential single family or multi9 family structure; and 

10 (C) REGULATIONS FOR NONRESIDENTIAL

11 STRUCTURES.—Regulations issued by the Sec12 retary under subparagraph (a) shall, in the case 

13 of a nonresidential structure that is constructed 

14 or rehabilitated with HUD assistance— 

15 (i) require the structure to be not less 

16 than 30 percent more energy efficient than 

17 required by local residential and commer18 cial building codes regarding energy effi19 ciency; and 

20 (ii) require the structure to comply 

21 with such additional energy efficiency re22 quirements, standards, checklists, or rating 

23 systems as the Secretary determines are 

24 applicable to nonresidential structures. 


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1 (7) NONRESIDENTIAL STRUCTURES.—The term 

2 ‘‘nonresidential structures’’ means only nonresiden3 tial structures that are appurtenant to single family 

4 or multifamily housing residential structures, or 

5 those that are funded by the Secretary through the 

6 HUD Community Development Block Grant pro7 gram established under title I of the Housing and 

8 Community Development Act of 1974 (42 U.S.C. 

9 5301 et seq.). 

10 (8) SECRETARY.—The term ‘‘Secretary’’, unless 

11 otherwise specified, means the Secretary of Housing 

12 and Urban Development. 

13 SEC. 4. IMPLEMENTATION OF ENERGY EFFICIENCY PAR14 TICIPATION INCENTIVES FOR HUD PRO15 GRAMS. 

16 Not later than 180 days after the date of enactment 

17 of this Act, the Secretary shall issue such regulations as 

18 may be necessary to establish annual energy efficiency 

19 participation incentives to encourage participants in pro20 grams administered by the Secretary, including recipients 

21 under programs for which HUD assistance is provided, 

22 to achieve substantial improvements in energy efficiency. 


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1 SEC. 5. INCENTIVES FOR ENERGY EFFICIENT MORTGAGES 

2 AND LOCATION EFFICIENT MORTGAGES. 

3 (a) IN GENERAL.—The Secretary shall establish 

4 budget-neutral incentives for encouraging lenders to make, 

5 and homebuyers and homeowners to participate in, energy 

6 efficient mortgages and location efficient mortgages. 

7 (b) INCENTIVES.—The incentives required under sub8 section (a) may include— 

9 (1) fee reductions; 

10 (2) fee waivers; 

11 (3) interest rate reductions; and 

12 (4) adjustment of mortgage qualifications. 

13 (c) ADDITIONAL CONSIDERATION.—In establishing 

14 the incentives required under subsection (a), the Secretary 

15 shall consider the lower risk of default on energy efficient 

16 mortgages and location efficient mortgages in comparison 

17 to mortgages that are not energy efficient or location effi18 cient. 

19 (d) DEFINITIONS.—The terms ‘‘energy efficient 

20 mortgage’’ and ‘‘location efficient mortgage’’ have the 

21 same meaning as in section 1335(e) of the Federal Hous22 ing Enterprises Financial Safety and Soundness Act of 

23 1992 (12 U.S.C. 4565(e)) (as added by section 8 of this 

24 Act). 


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1 SEC. 6. MORTGAGE INCENTIVES FOR ENERGY EFFICIENT 

2 MULTIFAMILY HOUSING. 

3 (a) IN GENERAL.—The Secretary shall establish— 

4 (1) incentives for increasing the energy effi5 ciency of multifamily housing that is subject to a 

6 mortgage to be insured under title II of the National 

7 Housing Act (12 U.S.C. 1707 et seq.) so that such 

8 housing meets minimum energy standards; and 

9 (2) incentives to encourage compliance of such 

10 housing with enhanced energy efficiency standards, 

11 to the extent that such incentives are based on the 

12 impact that savings on utility costs have on the op13 erating costs of the housing, as determined by the 

14 Secretary. 

15 (b) INCENTIVES.—The incentives required under sub16 section (a) may include, for any such multifamily housing 

17 that meets minimum energy efficiency standards— 

18 (1) providing a discount on the chargeable pre19 miums for the mortgage insurance for such housing 

20 from the amount otherwise chargeable for such 

21 mortgage insurance; 

22 (2) allowing mortgages to exceed the dollar 

23 amount limits otherwise applicable under law to the 

24 extent such additional amounts are used to finance 

25 improvements or measures designed to meet the 

26 standards referred to in subsection (a); and 


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1 (3) reducing the amount that the owner of such 

2 multifamily housing is required to contribute. 

3 SEC. 7. ENERGY EFFICIENCY AND CONSERVATION DEM4 ONSTRATION PROGRAM FOR MULTIFAMILY 

5 HOUSING PROJECTS ASSISTED WITH 

6 PROJECT-BASED RENTAL ASSISTANCE. 

7 (a) AUTHORITY.— 

8 (1) IN GENERAL.—For multifamily housing 

9 projects for which project-based rental assistance is 

10 provided under a covered multifamily assistance pro11 gram, the Secretary shall, subject to the availability 

12 of amounts provided in advance in appropriation 

13 Acts, carry out a program to demonstrate the effec14 tiveness of funding a portion of the costs of meeting 

15 enhanced energy efficiency standards. 

16 (2) INDIAN HOUSING.—At the discretion of the 

17 Secretary, the demonstration program required 

18 under paragraph (1) may include incentives for 

19 housing that is assisted with Indian housing block 

20 grants provided pursuant to the Native American 

21 Housing Assistance and Self-Determination Act of 

22 1996 (25 U.S.C. 4101 et seq.), but only to the ex23 tent that such inclusion does not violate such Act, 

24 regulations promulgated pursuant to such Act, and 

25 the goal of such Act of tribal self-determination. 


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1 (b) GOALS.—The demonstration program under this 

2 section shall be carried out in a manner that— 

3 (1) protects the financial interests of the Fed4 eral Government; 

5 (2) reduces the proportion of funds provided by 

6 the Federal Government and by owners and resi7 dents of multifamily housing projects that are used 

8 for costs of utilities for such projects; 

9 (3) encourages energy efficiency and conserva10 tion by owners and residents of multifamily housing 

11 projects and installation of renewable energy im12 provements, such as improvements providing for use 

13 of solar, wind, geothermal, or biomass energy 

14 sources; 

15 (4) creates incentives for project owners to 

16 carry out such energy efficiency renovations and im17 provements by allowing a portion of the savings in 

18 operating costs resulting from such renovations and 

19 improvements to be retained by the project owner, 

20 notwithstanding otherwise applicable limitations on 

21 dividends; 

22 (5) allows project owners and tenants to share 

23 the savings in operating costs resulting from such 

24 renovations and improvements in accordance with an 

25 appropriate ratio; 


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1 (6) promotes the installation, in existing resi2 dential buildings, of energy efficient and cost-effec3 tive improvements and renewable energy improve4 ments, such as improvements providing for use of 

5 solar, wind, geothermal, or biomass energy sources; 

6 (7) tests the efficacy of a variety of energy effi7 ciency measures for multifamily housing projects of 

8 various sizes and in various geographic locations; 

9 (8) tests methods for addressing the various, 

10 and often competing, incentives that impede owners 

11 and residents of multifamily housing projects from 

12 working together to achieve energy efficiency or con13 servation; and 

14 (9) creates a database of energy efficiency and 

15 conservation, and renewable energy, techniques, en16 ergy savings management practices, and energy effi17 ciency and conservation financing vehicles. 

18 (c) APPROACHES.—In carrying out the demonstra19 tion program under this section, the Secretary may take 

20 the following actions: 

21 (1) Enter into agreements with the Building 

22 America Program of the Department of Energy and 

23 other consensus committees under which such pro24 grams, partnerships, or committees assume some or 


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1 all of the functions, obligations, and benefits of the 

2 Secretary with respect to energy savings. 

3 (2) Establish advisory committees to advise the 

4 Secretary and any such third party partners on tech5 nological and other developments in the area of en6 ergy efficiency and the creation of an energy effi7 ciency and conservation credit facility and other fi8 nancing opportunities that— 

9 (A) include representatives of home10 builders, realtors, architects, nonprofit housing 

11 organizations, environmental protection organi12 zations, renewable energy organizations, State 

13 housing finance agencies, and advocacy organi14 zations for low-income individuals, the elderly, 

15 and persons with disabilities; and 

16 (B) are not subject to the Federal Advi17 sory Committee Act (5 U.S.C. App.). 

18 (3) Develop a competitive process for the award 

19 of such additional assistance for multifamily housing 

20 projects seeking to implement energy efficiency, re21 newable energy sources, or conservation measures. 

22 (4) Waive or modify any existing Federal regu23 latory provision that would otherwise impair the im24 plementation or effectiveness of the demonstration 

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1 lating to methods for rent adjustments, com2 parability standards, maximum rent schedules, and 

3 utility allowances. Notwithstanding the preceding 

4 provisions of this paragraph, the Secretary may not 

5 waive any statutory requirement relating to fair 

6 housing, nondiscrimination, labor standards, or the 

7 environment, except pursuant to existing authority 

8 to waive nonstatutory environmental and other ap9 plicable requirements. 

10 (d) REQUIREMENT.—During the 4-year period begin11 ning 12 months after the date of enactment of this Act, 

12 the Secretary shall carry out demonstration programs 

13 under this section with respect to not fewer than 50,000 

14 dwelling units. 

15 (e) SELECTION.— 

16 (1) SCOPE.— 

17 (A) IN GENERAL.—In order to provide a 

18 broad and representative profile for use in de19 signing a program which can become oper20 ational and effective nationwide, the Secretary 

21 shall carry out the demonstration program 

22 under this section with respect to dwelling units 

23 located in a wide variety of geographic areas 

24 and project types assisted by the various cov25 ered multifamily assistance programs and using 


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1 a variety of energy efficiency and conservation 

2 and funding techniques to reflect differences in 

3 climate, types of dwelling units, technical and 

4 scientific methodologies, and financing options. 

5 (B) INDIAN LANDS.—The Secretary shall 

6 ensure that the geographic areas included in 

7 the demonstration program under this section 

8 include dwelling units on Indian lands (as that 

9 term is defined in section 2601 of the Energy 

10 Policy Act of 1992 (25 U.S.C. 3501)), to the 

11 extent that dwelling units on Indian land have 

12 the type of residential structures that are the 

13 focus of the demonstration program. 

14 (2) PRIORITY.—The Secretary shall provide pri15 ority for selection for participation in the program 

16 under this section based on the extent to which, as 

17 a result of assistance provided, the project will meet 

18 minimum energy efficiency standards or enhanced 

19 energy efficiency standards. 

20 (f) USE OF EXISTING PARTNERSHIPS.—To the ex21 tent feasible, the Secretary shall— 

22 (1) utilize the Partnership for Advancing Tech23 nology in Housing of the Department of Housing 

24 and Urban Development to assist in carrying out the 

25 requirements of this section and to provide education 


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1 and outreach regarding the demonstration program 

2 authorized under this section; and 

3 (2) consult with the Secretary of Energy, the 

4 Administrator of the Environmental Protection 

5 Agency, and the Secretary of the Army regarding 

6 utilizing the Building America Program of the De7 partment of Energy, the Energy Star Program, and 

8 the Army Corps of Engineers, respectively, to deter9 mine the manner in which such programs might as10 sist in carrying out the goals of this section and pro11 viding education and outreach regarding the dem12 onstration program authorized under this section. 

13 (g) REPORTS.— 

14 (1) ANNUAL REPORT.—Not later than 2 years 

15 after the date of enactment of this Act, and for each 

16 year thereafter during the term of the demonstration 

17 program, the Secretary shall submit to Congress a 

18 report that describes and assesses the demonstration 

19 program under this section. 

20 (2) FINAL REPORT.—Not later than 6 months 

21 after the expiration of the 4-year period described in 

22 subsection (d), the Secretary shall submit to Con23 gress a final report assessing the demonstration pro24 gram that— 


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1 (A) assesses the potential for expanding 

2 the demonstration program on a nationwide 

3 basis; and 

4 (B) includes descriptions of— 

5 (i) the size of each multifamily hous6 ing project for which assistance was pro7 vided under the program; 

8 (ii) the geographic location of each 

9 project assisted, by State and region; 

10 (iii) the criteria used to select the 

11 projects for which assistance is provided 

12 under the program; 

13 (iv) the energy efficiency and con14 servation measures and financing sources 

15 used for each project that is assisted under 

16 the program; 

17 (v) the difference, before and during 

18 participation in the demonstration pro19 gram, in the amount of the monthly assist20 ance payments under the covered multi21 family assistance program for each project 

22 assisted under the program; 

23 (vi) the average length of the term of 

24 the assistance provided under the program 

25 for a project; 


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1 (vii) the aggregate amount of savings 

2 generated by the demonstration program 

3 and the amount of savings expected to be 

4 generated by the program over time on a 

5 per-unit and aggregate program basis; 

6 (viii) the functions performed in con7 nection with the implementation of the 

8 demonstration program that were trans9 ferred or contracted out to any third par10 ties; 

11 (ix) an evaluation of the overall suc12 cesses and failures of the demonstration 

13 program; and 

14 (x) recommendations for any actions 

15 to be taken as a result of such successes 

16 and failures. 

17 (3) CONTENTS.—Each annual report pursuant 

18 to paragraph (1) and the final report pursuant to 

19 paragraph (2) shall include— 

20 (A) a description of the status of each mul21 tifamily housing project selected for participa22 tion in the demonstration program under this 

23 section; and 

24 (B) findings from the program and rec25 ommendations for any legislative actions. 


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1 (h) COVERED MULTIFAMILY ASSISTANCE PRO2 GRAM.—For purposes of this section, the term ‘‘covered 

3 multifamily assistance program’’ means— 

4 (1) the program under section 8 of the United 

5 States Housing Act of 1937 (42 U.S.C. 1437f) for 

6 project-based rental assistance; 

7 (2) the program under section 202 of the Hous8 ing Act of 1959 (12 U.S.C. 1701q) for assistance 

9 for supportive housing for the elderly; 

10 (3) the program under section 811 of the Cran11 ston-Gonzalez National Affordable Housing Act (42 

12 U.S.C. 8013) for supportive housing for persons 

13 with disabilities; and 

14 (4) the program for assistance under the Native 

15 American Housing Assistance and Self-Determina16 tion Act of 1996 (25 U.S.C. 4111). 

17 (i) AUTHORIZATION OF APPROPRIATIONS.—There is 

18 authorized to be appropriated to carry out this section 

19 $50,000,000 for each fiscal year in which the demonstra20 tion program under this section is carried out. 

21 (j) REGULATIONS.—Not later than 180 days after 

22 the date of enactment of this Act, the Secretary shall issue 

23 any regulations necessary to carry out this section. 


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1 SEC. 8. ADDITIONAL CREDIT FOR FANNIE MAE AND 

2 FREDDIE MAC HOUSING GOALS FOR ENERGY 

3 EFFICIENT MORTGAGES. 

4 Section 1336(a) of the Housing and Community De5 velopment Act of 1992 (12 U.S.C. 4566(a)) is amended— 

6 (1) in paragraph (2), by striking ‘‘paragraph 

7 (5)’’ and inserting ‘‘paragraphs (5) and (6)’’; and 

8 (2) by adding at the end the following: 

9 ‘‘(6) ADDITIONAL ENERGY EFFICIENCY CRED10 IT.— 

11 ‘‘(A) IN GENERAL.—In assigning credit to12 ward achievement under this section of the 

13 housing goals for mortgage purchase activities 

14 of the enterprises, the Director shall assign— 

15 ‘‘(i) more than 125 percent credit, for 

16 purchases that— 

17 ‘‘(I) comply with the require18 ments of such goals; and 

19 ‘‘(II) support housing that meets 

20 minimum energy efficiency standards, 

21 as that term is defined in section 3 of 

22 the Energy Efficiency in Housing Act 

23 of 2009; and 

24 ‘‘(ii) credit in addition to credit under 

25 clause (i), for purchases that— 


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1 ‘‘(I) comply with the require2 ments of such goals; and 

3 ‘‘(II) support housing that com4 plies with enhanced energy efficiency 

5 standards, as that term is defined in 

6 section 3 of such Act. 

7 ‘‘(B) TREATMENT OF ADDITIONAL CRED8 IT.—The availability of additional credit under 

9 this paragraph shall not be used to increase any 

10 housing goal, subgoal, or target established 

11 under this subpart.’’. 

12 SEC. 9. DUTY TO SERVE UNDERSERVED MARKETS FOR EN13 ERGY EFFICIENT AND LOCATION EFFICIENT 

14 MORTGAGES. 

15 Section 1335 of the Federal Housing Enterprises Fi16 nancial Safety and Soundness Act of 1992 (12 U.S.C. 

17 4565) is amended— 

18 (1) in subsection (a)(1), by adding at the end 

19 the following: 

20 ‘‘(D) MARKETS FOR ENERGY EFFICIENT

21 AND LOCATION EFFICIENT MORTGAGES.— 

22 ‘‘(i) DUTY.—Except as provided in 

23 clause (ii), the enterprise shall develop loan 

24 products and flexible underwriting guide25 lines to facilitate a secondary market for 


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1 energy efficient and location efficient mort2 gages on housing for very low-, low-, and 

3 moderate-income families, and for second 

4 and junior mortgages made for purposes of 

5 energy efficiency or renewable energy im6 provements. 

7 ‘‘(ii) AUTHORITY TO SUSPEND.—Not8 withstanding any other provision of this 

9 section, the Director may suspend the ap10 plicability of the requirement under clause 

11 (i) with respect to an enterprise, for such 

12 period as is necessary, if the Director de13 termines that exigent circumstances exist 

14 and such suspension is appropriate to en15 sure the safety and soundness of the port16 folio holdings of the enterprise.’’; 

17 (2) by adding at the end the following: 

18 ‘‘(e) DEFINITIONS.—For purposes of this section, the 

19 following definitions shall apply: 

20 ‘‘(1) ENERGY EFFICIENT MORTGAGE.—The 

21 term ‘energy efficient mortgage’ means a mortgage 

22 loan under which the income of the borrower, for 

23 purposes of qualification for such loan, is considered 

24 to be increased by— 


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1 ‘‘(A) not less than $1 for each $1 of sav2 ings projected to be realized by the borrower as 

3 a result of cost-effective energy saving design, 

4 construction, or improvements (including use of 

5 renewable energy sources, such as solar, geo6 thermal, biomass, and wind, superinsulation, 

7 energy-saving windows, insulating glass and 

8 film, and radiant barrier) for the home for 

9 which the loan is made; or 

10 ‘‘(B) a ratio of income to savings deter11 mined by the Director. 

12 ‘‘(2) LOCATION EFFICIENT MORTGAGE.—The 

13 term ‘location efficient mortgage’ means a mortgage 

14 loan under which— 

15 ‘‘(A) the income of the borrower, for pur16 poses of qualification for such loan, is consid17 ered to be increased by— 

18 ‘‘(i) not less than $1 for each $1 of 

19 savings projected to be realized by the bor20 rower because the location of the home for 

21 which the loan is made will result in de22 creased transportation costs for the house23 hold of the borrower; or 

24 ‘‘(ii) a ratio of income to savings de25 termined by the Director; or 


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1 ‘‘(B) the sum of the principal, interest, 

2 taxes, and insurance due under the mortgage 

3 loan is decreased by— 

4 ‘‘(i) not less than $1 for each $1 of 

5 savings projected to be realized by the bor6 rower because the location of the home for 

7 which loan is made will result in decreased 

8 transportation costs for the household of 

9 the borrower; or 

10 ‘‘(ii) a ratio of principal, interest, 

11 taxes, and insurance due under the mort12 gage to savings projected to be realized by 

13 the borrower determined by the Director.’’. 

14 SEC. 10. CONSIDERATION OF ENERGY EFFICIENCY UNDER 

15 FHA MORTGAGE INSURANCE PROGRAMS AND 

16 NATIVE AMERICAN AND NATIVE HAWAIIAN 

17 LOAN GUARANTEE PROGRAMS. 

18 (a) FHA MORTGAGE INSURANCE.— 

19 (1) REQUIREMENT.—Title V of the National 

20 Housing Act is amended by adding after section 542 

21 (12 U.S.C. 1735f–20) the following: 

22 ‘‘SEC. 543. CONSIDERATION OF ENERGY EFFICIENCY. 

23 ‘‘(a) UNDERWRITING STANDARDS.—In establishing 

24 underwriting standards for mortgages on single family 

25 housing that meets minimum energy efficiency standards, 


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1 as that term is defined in section 3 of the Energy Effi2 ciency in Housing Act of 2009, that are insured under 

3 this Act, the Secretary shall consider the impact that sav4 ings on utility costs has on the income of the mortgagor. 

5 ‘‘(b) GOAL.—It is the sense of the Congress that, in 

6 carrying out this Act, the Secretary should endeavor to 

7 insure mortgages on single family housing that meets min8 imum energy efficiency standards, as that term is defined 

9 in section 3 of the Energy Efficiency in Housing Act of 

10 2009, such that at least 50,000 such mortgages are in11 sured during the period beginning on the date of enact12 ment of such Act and ending on December 31, 2012.’’. 

13 (2) REPORTING ON DEFAULTS.—Section 

14 540(b)(2) of the National Housing Act (12 U.S.C. 

15 1735f–18(b)(2)) is amended by adding at the end 

16 the following: 

17 ‘‘(C) With respect to each collection period 

18 that commences after December 31, 2011— 

19 ‘‘(i) the total number of mortgages on 

20 single family housing that meets minimum 

21 energy efficiency standards, as that term is 

22 defined in section 3 of the Energy Effi23 ciency in Housing Act of 2009, that are in24 sured by the Secretary during the applica25 ble collection period; 


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1 ‘‘(ii) the number of defaults and fore2 closures occurring on such mortgages dur3 ing such period; 

4 ‘‘(iii) the percentage of the total of 

5 such mortgages insured during such period 

6 on which defaults and foreclosure occurred; 

7 and 

8 ‘‘(iv) the rate for such period of de9 faults and foreclosures on such mortgages 

10 compared to the overall rate for such pe11 riod of defaults and foreclosures on mort12 gages for single family housing insured 

13 under this Act by the Secretary.’’. 

14 (b) INDIAN HOUSING LOAN GUARANTEES.— 

15 (1) REQUIREMENT.—Section 184 of the Hous16 ing and Community Development Act of 1992 (12 

17 U.S.C. 1715z–13a) is amended— 

18 (A) by redesignating subsection (l) as sub19 section (m); and 

20 (B) by inserting after subsection (k) the 

21 following: 

22 ‘‘(l) CONSIDERATION OF ENERGY EFFICIENCY.—The 

23 Secretary shall establish a method to consider, in its un24 derwriting standards for loans for single family housing 

25 that meet minimum energy efficiency standards, as that 


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1 term is defined in section 3 of the Energy Efficiency in 

2 Housing Act of 2009, that are guaranteed under this sec3 tion, the impact that savings on utility costs has on the 

4 portion of the income of the borrower that is available to 

5 service the mortgage debt.’’. 

6 (2) REPORTING ON DEFAULTS.—Section 

7 540(b)(2) of the National Housing Act (12 U.S.C. 

8 1735f–18(b)(2)), as amended by subsection (a)(2) of 

9 this section, is amended by adding at the end the 

10 following: 

11 ‘‘(D) With respect to each collection period 

12 that commences after December 31, 2011— 

13 ‘‘(i) the total number of loans guaran14 teed under section 184 of the Housing and 

15 Community Development Act of 1992 (12 

16 U.S.C. 1715z–13a) for single family hous17 ing that meets enhanced energy efficiency 

18 standards, as that term is defined in sec19 tion 3 of the Energy Efficiency in Housing 

20 Act of 2009, that are guaranteed by the 

21 Secretary during the applicable collection 

22 period; 

23 ‘‘(ii) the number of defaults and fore24 closures that occur on such loans during 

25 such period; 


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1 ‘‘(iii) the percentage of the total num2 ber of such loans guaranteed during such 

3 period on which defaults and foreclosures 

4 occurred; and 

5 ‘‘(iv) the rate for such period of de6 faults and foreclosures on such loans com7 pared to the overall rate for such period of 

8 defaults and foreclosures on loans for sin9 gle family housing guaranteed under sec10 tion 184 of such Act.’’. 

11 (c) NATIVE HAWAIIAN HOUSING LOAN GUARAN12 TEES.— 

13 (1) REQUIREMENT.—Section 184A of the 

14 Housing and Community Development Act of 1992 

15 (12 U.S.C. 1715z–13b) is amended by adding at the 

16 end the following: 

17 ‘‘(m) ENERGY EFFICIENT HOUSING REQUIRE18 MENT.—The Secretary shall establish a method to con19 sider, in its underwriting standards for loans for single 

20 family housing that meets minimum energy efficiency 

21 standards, as that term is defined in section 3 of the En22 ergy Efficiency in Housing Act of 2009, that are guaran23 teed under this section, the impact that savings on utility 

24 costs have on the income of the borrower.’’. 


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1 (2) REPORTING ON DEFAULTS.—Section 

2 540(b)(2) of the National Housing Act (12 U.S.C. 

3 1735f–18(b)(2)), as amended by the preceding pro4 visions of this section, is amended by adding at the 

5 end the following: 

6 ‘‘(E) With respect to each collection period 

7 that commences after December 31, 2011— 

8 ‘‘(i) the total number of loans guaran9 teed under section 184A of the Housing 

10 and Community Development Act of 1992 

11 (12 U.S.C. 1715z–13b) on single family 

12 housing that meets enhanced energy effi13 ciency standards, as that term is defined in 

14 section 3 of the Energy Efficiency in 

15 Housing Act of 2009, that are guaranteed 

16 by the Secretary during the applicable col17 lection period; 

18 ‘‘(ii) the number of defaults and fore19 closures occurring on such loans during 

20 such period; 

21 ‘‘(iii) the percentage of the total of 

22 such loans guaranteed during such period 

23 on which defaults and foreclosures oc24 curred; and 


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1 ‘‘(iv) the rate for such period of de2 faults and foreclosures on such loans com3 pared to the overall rate for such period of 

4 defaults and foreclosures on loans for sin5 gle family housing guaranteed under such 

6 section 184A.’’. 

7 SEC. 11. ENERGY EFFICIENT MORTGAGES EDUCATION AND 

8 OUTREACH CAMPAIGN. 

9 Section 513 of the Housing and Community Develop10 ment Act of 1992 (12 U.S.C. 1701z–16 note) is amended 

11 by adding at the end the following: 

12 ‘‘(g) EDUCATION AND OUTREACH CAMPAIGN.— 

13 ‘‘(1) DEVELOPMENT OF ENERGY EFFICIENT

14 MORTGAGE OUTREACH PROGRAM.— 

15 ‘‘(A) COMMISSION.—The Secretary, in con16 sultation and coordination with the Secretary of 

17 Energy, the Secretary of Education, the Sec18 retary of Agriculture, and the Administrator of 

19 the Environmental Protection Agency, shall es20 tablish a commission to develop and recommend 

21 model mortgage products and underwriting 

22 guidelines that provide market-based incentives 

23 to prospective home buyers, lenders, and sellers 

24 to incorporate energy efficiency upgrades in 

25 new mortgage loan transactions. 


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1 ‘‘(B) REPORT.—Not later than 24 months 

2 after the date of enactment of this subsection, 

3 the Secretary shall submit to Congress a writ4 ten report on the results of work of the commis5 sion established pursuant to subparagraph (A) 

6 and that identifies model mortgage products 

7 and underwriting guidelines that may encour8 age energy efficiency. 

9 ‘‘(2) IMPLEMENTATION.— 

10 ‘‘(A) IN GENERAL.—After submission of 

11 the report under paragraph (1)(B), the Sec12 retary, in consultation and coordination with 

13 the Secretary of Energy, the Secretary of Edu14 cation, and the Administrator of the Environ15 mental Protection Agency, shall carry out a 

16 public awareness, education, and outreach cam17 paign based on the findings of the commission 

18 established pursuant to paragraph (1) to inform 

19 and educate residential lenders and prospective 

20 borrowers regarding the availability, benefits, 

21 advantages, and terms of— 

22 ‘‘(i) energy efficient mortgages made 

23 available pursuant to this section; 


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1 ‘‘(ii) energy efficient mortgages that 

2 meet the requirements of section 1334A of 

3 this Act; and 

4 ‘‘(iii) other mortgages, including mort5 gages for multifamily housing, that have 

6 energy improvement features. 

7 ‘‘(B) CONTRACTING.—The Secretary may 

8 enter into a contract with an appropriate entity 

9 to publicize and market such mortgages 

10 through appropriate media. 

11 ‘‘(3) RENEWABLE ENERGY HOME PRODUCT EX12 POSITIONS.—It is the sense of Congress that the 

13 Secretary of Housing and Urban Development 

14 should work with appropriate entities to organize 

15 and hold renewable energy expositions that provide 

16 an opportunity for the public to view and learn 

17 about renewable energy products for the home that 

18 are currently on the market. 

19 ‘‘(4) AUTHORIZATION OF APPROPRIATIONS.— 

20 There is authorized to be appropriated to the Sec21 retary to carry out this subsection $5,000,000 for 

22 each of fiscal years 2010 through 2013.’’. 


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1 SEC. 12. COLLECTION OF INFORMATION ON ENERGY EFFI2 CIENT AND LOCATION EFFICIENT MORT3 GAGES THROUGH HOME MORTGAGE DISCLO4 SURE ACT. 

5 (a) IN GENERAL.—Section 304(b)(1) of the Home 

6 Mortgage Disclosure Act of 1975 (12 U.S.C. 2803(b)(1)) 

7 is amended— 

8 (1) in paragraph (3), by striking ‘‘and’’ at the 

9 end; 

10 (2) in paragraph (4), by striking the period at 

11 the end and inserting a semicolon; and 

12 (3) by adding at the end the following new 

13 paragraphs: 

14 ‘‘(5) the number and dollar amount of mort15 gage loans for single family housing and for multi16 family housing that are energy efficient mortgages 

17 (as such term is defined in section 1334A of the 

18 Housing and Community Development Act of 1992); 

19 and 

20 ‘‘(6) the number and dollar amount of mort21 gage loans for single family housing and for multi22 family housing that are location efficient mortgages 

23 (as such term is defined in section 1334A of Hous24 ing and Community Development Act of 1992).’’. 

25 (b) APPLICABILITY.—The amendment made by sub26 section (a) shall apply with respect to the first calendar 


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1 year that begins after the expiration of the 30-day period 

2 beginning on the date of enactment of this Act. 

3 SEC. 13. ENERGY EFFICIENCY CERTIFICATIONS FOR HOUS4 ING WITH MORTGAGES INSURED BY FHA. 

5 Section 526 of the National Housing Act (12 U.S.C. 

6 1735f–4(a)) is amended— 

7 (1) in subsection (a)— 

8 (A) by striking ‘‘, other than manufactured 

9 homes,’’ each place that term appears; 

10 (B) by inserting after the period at the end 

11 the following: ‘‘The energy performance require12 ments developed and established by the Sec13 retary under this section for manufactured 

14 homes shall require Energy Star ratings for 

15 wall fixtures, appliances, and equipment in such 

16 homes.’’; 

17 (C) by striking ‘‘(a) To’’ and inserting the 

18 following: 

19 ‘‘(a) ENERGY EFFICIENCY.— 

20 ‘‘(1) IN GENERAL.—To’’; and 

21 (D) by adding at the end the following: 

22 ‘‘(2) CERTIFICATION.—The Secretary shall re23 quire, with respect to any single family or multi24 family residential housing subject to a mortgage in25 sured under this Act, that any approval or certifiVerDate Nov 24 2008 01:19 Jul 01, 2009 Jkt 079200 PO 00000 Frm 00040 Fmt 6652 Sfmt 6201 E:\BILLS\S1379.IS S1379

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1 cation of the housing for meeting any energy effi2 ciency or conservation criteria, standards, or require3 ments pursuant to this title and any approval or cer4 tification required pursuant to this title with respect 

5 to energy conserving improvements or any renewable 

6 energy sources, such as wind, solar energy, geo7 thermal, or biomass, shall be conducted only by an 

8 individual certified by a home energy rating system 

9 provider that has been accredited to conduct such 

10 ratings by the Home Energy Ratings System Coun11 cil, the Residential Energy Services Network, or 

12 such other appropriate national organization, as the 

13 Secretary may provide, or by a licensed professional 

14 architect or engineer that has been accredited as a 

15 LEED Accredited Professional by the Green Build16 ing Certification Institute. If any organization 

17 makes a request to the Secretary for approval to ac18 credit individuals to conduct energy efficiency or 

19 conservation ratings, the Secretary shall review and 

20 approve or disapprove such request not later than 6 

21 months after receipt of such request. 

22 ‘‘(3) LISTING.—Each regional office of the De23 partment of Housing and Urban Development shall 

24 maintain a list of individuals certified by a home en25 ergy rating system provider that has been accredited 


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1 to conduct such ratings by the Home Energy Rat2 ings System Council, the Residential Energy Serv3 ices Network, or such other appropriate national or4 ganizations or professionals as the Secretary may 

5 designate. Such list shall indicate that home energy 

6 rating system providers accredited by the Residential 

7 Energy Services Network are preferred by the De8 partment of Housing and Urban Development. 

9 ‘‘(4) PERIODIC EXAMINATION OF METHOD.— 

10 The Secretary shall periodically examine the method 

11 used to conduct inspections for compliance with the 

12 requirements under this section, analyze various 

13 other approaches for conducting such inspections, 

14 and review the costs and benefits of the current 

15 method compared with other methods.’’; and 

16 (2) in subsection (b)— 

17 (A) by striking ‘‘, other than a manufac18 tured home,’’; and 

19 (B) by striking ‘‘(b) The’’ and inserting 

20 the following: 

21 ‘‘(b) HEALTH AND SAFETY.—The’’. 

22 SEC. 14. ASSISTED HOUSING ENERGY LOAN PILOT PRO23 GRAM. 

24 (a) AUTHORITY.—Not later than 12 months after the 

25 date of enactment of this Act, the Secretary shall develop 


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1 and implement a pilot program to facilitate the financing 

2 of cost-effective capital improvements for covered assisted 

3 housing projects to improve the energy efficiency and con4 servation of such projects. 

5 (b) NUMBER OF LENDERS.—The pilot program 

6 under this section shall involve not less than 3 and not 

7 more than 5 lenders. 

8 (c) LOANS.—The pilot program under this section 

9 shall provide for a privately financed loan to be made for 

10 a covered assisted housing project that— 

11 (1) finances capital improvements for the 

12 project that meet such requirements as the Sec13 retary shall establish, and may involve contracts 

14 with third parties to perform such capital improve15 ments, including the design of such improvements by 

16 licensed professional architects or engineers; 

17 (2) has a term to maturity that is— 

18 (A) not more than 20 years; and 

19 (B) necessary to realize cost savings suffi20 cient to repay such loan; 

21 (3) is secured by a mortgage subordinate to the 

22 mortgage for the project that is insured under title 

23 II of the National Housing Act; and 

24 (4) provides for a reduction in the remaining 

25 principal obligation under the loan based on the acVerDate Nov 24 2008 01:19 Jul 01, 2009 Jkt 079200 PO 00000 Frm 00043 Fmt 6652 Sfmt 6201 E:\BILLS\S1379.IS S1379

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1 tual cost savings realized from the capital improve2 ments financed with the loan. 

3 (d) UNDERWRITING STANDARDS.—The Secretary 

4 shall establish underwriting requirements for loans made 

5 under the pilot program under this section, which shall— 

6 (1) require the cost savings projected to be real7 ized from the capital improvements financed with 

8 the loan, during the term of the loan, to exceed the 

9 costs of repaying the loan; 

10 (2) allow the designer or contractor involved in 

11 designing capital improvements to be financed with 

12 a loan under the program to carry out such capital 

13 improvements; and 

14 (3) include such energy, audit, property, finan15 cial, ownership, and approval requirements as the 

16 Secretary considers appropriate. 

17 (e) TREATMENT OF SAVINGS.—The pilot program 

18 under this section shall provide that the financial benefit 

19 from any reduction in the cost of utilities resulting from 

20 capital improvements financed with a loan made under the 

21 program shall be shared between the project owner and 

22 the tenants in accordance with an appropriate ratio, as 

23 determined by the Secretary. 


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1 (f) COVERED ASSISTED HOUSING PROJECTS.—For 

2 purposes of this section, the term ‘‘covered assisted hous3 ing project’’ means a housing project that— 

4 (1) is financed by a loan or mortgage that is— 

5 (A) insured by the Secretary under para6 graph (3) or (4) of section 221(d) of the Na7 tional Housing Act (12 U.S.C. 1715l(d)), and 

8 bears interest at a rate determined under the 

9 proviso of section 221(d)(5) of such Act; or 

10 (B) insured or assisted under section 236 

11 of the National Housing Act (12 U.S.C. 1715z– 

12 1); 

13 (2) at the time a loan under this section is 

14 made, is provided project-based rental assistance 

15 under section 8 of the United States Housing Act of 

16 1937 (42 U.S.C. 1437f) for 50 percent or more of 

17 the dwelling units in the project; and 

18 (3) is not a housing project owned or held by 

19 the Secretary, or subject to a mortgage held by the 

20 Secretary. 

21 SEC. 15. HOPE VI GREEN DEVELOPMENTS REQUIREMENT. 

22 (a) MANDATORY COMPONENT.—Section 24(e) of the 

23 United States Housing Act of 1937 (42 U.S.C. 1437v(e)) 

24 is amended by adding at the end the following: 

25 ‘‘(4) GREEN DEVELOPMENTS REQUIREMENT.— 


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1 ‘‘(A) REQUIREMENT.—The Secretary may 

2 not make a grant under this section to an appli3 cant unless the proposed revitalization plan of 

4 the applicant to be carried out with such grant 

5 amounts meets the following requirements: 

6 ‘‘(i) RESIDENTIAL CONSTRUCTION.— 

7 All residential construction under the pro8 posed plan complies with— 

9 ‘‘(I) all mandatory items of the 

10 national Green Communities criteria 

11 checklist for residential construction 

12 and rehabilitation and such non13 mandatory items of such checklist as 

14 are necessary for a residential con15 struction to receive— 

16 ‘‘(aa) 25 points, in the case 

17 of any proposed plan (or portion 

18 thereof) consisting of new con19 struction; and 

20 ‘‘(bb) 20 points, in the case 

21 of any proposed plan (or portion 

22 thereof) consisting of rehabilita23 tion; or 


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1 ‘‘(II) a substantially equivalent 

2 standard, as determined by the Sec3 retary. 

4 ‘‘(ii) NONRESIDENTIAL CONSTRUC5 TION.—All nonresidential construction 

6 under the proposed plan complies with all 

7 minimum required levels of the green 

8 building rating systems and levels identi9 fied by the Secretary pursuant to subpara10 graph (C), as such systems and levels are 

11 in effect at the time of the application for 

12 the grant. 

13 ‘‘(B) VERIFICATION.— 

14 ‘‘(i) IN GENERAL.—The Secretary 

15 shall verify, or provide for verification suf16 ficient to ensure, that each revitalization 

17 plan carried out with amounts from a 

18 grant under this section complies with the 

19 requirements under subparagraph (A). 

20 ‘‘(ii) TIMING.—In providing for such 

21 verification, the Secretary shall establish 

22 procedures to ensure such compliance with 

23 respect to each grantee, and shall submit 

24 a report to Congress with respect to the 

25 compliance of each grantee— 


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1 ‘‘(I) not later than 6 months 

2 after execution of the grant agreement 

3 under this section for the grantee; and 

4 ‘‘(II) on completion of the revital5 ization plan of the grantee. 

6 ‘‘(C) IDENTIFICATION OF GREEN BUILD7 INGS RATING SYSTEMS AND LEVELS.— 

8 ‘‘(i) IN GENERAL.—For purposes of 

9 this paragraph, the Secretary, in consulta10 tion with the Secretary of Energy, shall 

11 identify rating systems and levels for green 

12 buildings that the Secretary determines to 

13 be the most likely to encourage a com14 prehensive and environmentally sound ap15 proach to ratings and standards for green 

16 buildings. 

17 ‘‘(ii) CRITERIA.—In identifying the 

18 green rating systems and levels under 

19 clause (i), the Secretary shall take into 

20 consideration— 

21 ‘‘(I) the ability and availability of 

22 assessors and auditors to independ23 ently verify the criteria and measure24 ment of metrics at the scale necessary 

25 to implement this paragraph; 


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1 ‘‘(II) the ability of the applicable 

2 ratings system organizations to collect 

3 and reflect public comment; 

4 ‘‘(III) the ability of the standards 

5 to be developed and revised through a 

6 consensus-based process; 

7 ‘‘(IV) an evaluation of the 

8 robustness of the criteria for a high9 performance green building, which 

10 shall give credit for promoting— 

11 ‘‘(aa) efficient and sustain12 able use of water, energy, and 

13 other natural resources; 

14 ‘‘(bb) use of renewable en15 ergy sources; 

16 ‘‘(cc) improved indoor and 

17 outdoor environmental quality 

18 through enhanced indoor and 

19 outdoor air quality, thermal com20 fort, acoustics, outdoor noise pol21 lution, day lighting, pollutant 

22 source control, sustainable land23 scaping, and use of building sys24 tem controls and low- or no-emis25 sion materials, including prefVerDate Nov 24 2008 01:19 Jul 01, 2009 Jkt 079200 PO 00000 Frm 00049 Fmt 6652 Sfmt 6201 E:\BILLS\S1379.IS S1379

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1 erence for materials with no 

2 added carcinogens that are classi3 fied as Group 1 Known Carcino4 gens by the International Agency 

5 for Research on Cancer; and 

6 ‘‘(dd) such other criteria as 

7 the Secretary determines to be 

8 appropriate; and 

9 ‘‘(V) national recognition within 

10 the building industry. 

11 ‘‘(iii) FIVE-YEAR EVALUATION.—At 

12 least once every 5 years, the Secretary 

13 shall conduct a study to evaluate and com14 pare available third party green building 

15 rating systems and levels, taking into ac16 count the criteria listed in clause (ii). 

17 ‘‘(iv) REVIEW AND UPDATE.—Within 

18 90 days of the completion of each study re19 quired by clause (iii), the Secretary shall 

20 review and update the rating systems and 

21 levels, or identify alternative systems and 

22 levels for purposes of this paragraph, tak23 ing into account the conclusions of such 

24 study. 


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1 ‘‘(D) APPLICABILITY AND UPDATING OF

2 STANDARDS.— 

3 ‘‘(i) APPLICABILITY.—Except as pro4 vided in clause (ii), the national Green 

5 Communities criteria checklist and green 

6 building rating systems and levels referred 

7 to in subparagraph (A) that are in effect 

8 for purposes of this paragraph are such 

9 checklist systems and levels as in existence 

10 on the date of enactment of the Energy 

11 Efficiency in Housing Act of 2009. 

12 ‘‘(ii) UPDATING.—The Secretary may, 

13 by regulation, adopt and apply for pur14 poses of this paragraph, future amend15 ments and supplements to, and editions of, 

16 the national Green Communities criteria 

17 checklist, any standard or standards that 

18 the Secretary has determined to be sub19 stantially equivalent to such checklist, and 

20 the green building ratings systems and lev21 els identified by the Secretary pursuant to 

22 subparagraph (C).’’. 

23 (b) SELECTION CRITERIA; GRADED COMPONENT.— 

24 Section 24(e)(2) of the United States Housing Act of 

25 1937 (42 U.S.C. 1437v(e)(2)) is amended— 


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1 (1) in subparagraph (K), by striking ‘‘and’’ at 

2 the end; 

3 (2) by redesignating subparagraph (L) as sub4 paragraph (M); and 

5 (3) by inserting after subparagraph (K) the fol6 lowing: 

7 ‘‘(L) the extent to which the proposed revi8 talization plan— 

9 ‘‘(i) in the case of residential con10 struction, complies with the nonmandatory 

11 items of the national Green Communities 

12 criteria checklist identified in paragraph 

13 (4)(A)(i), or any substantially equivalent 

14 standard or standards as determined by 

15 the Secretary, but only to the extent such 

16 compliance exceeds the compliance nec17 essary to accumulate the number of points 

18 required under such paragraph; and 

19 ‘‘(ii) in the case of nonresidential con20 struction, complies with the components of 

21 the green building rating systems and lev22 els identified by the Secretary pursuant to 

23 paragraph (4)(C), but only to the extent 

24 such compliance exceeds the minimum level 


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1 required under such systems and levels; 

2 and’’. 

3 SEC. 16. CONSIDERATION OF ENERGY EFFICIENCY IM4 PROVEMENTS IN APPRAISALS. 

5 (a) APPRAISALS IN CONNECTION WITH FEDERALLY

6 RELATED TRANSACTIONS.— 

7 (1) REQUIREMENT.—Section 1110 of the Fi8 nancial Institutions Reform, Recovery, and Enforce9 ment Act of 1989 (12 U.S.C. 3339) is amended— 

10 (A) in paragraph (1), by striking ‘‘and’’ at 

11 the end; 

12 (B) by redesignating paragraph (2) as 

13 paragraph (3); and 

14 (C) by inserting after paragraph (1) the 

15 following: 

16 ‘‘(2) that such appraisals be performed in ac17 cordance with appraisal standards that require, in 

18 determining the value of a property, consideration of 

19 the ongoing utility savings and increased value from 

20 the savings that result from— 

21 ‘‘(A) any renewable energy sources for the 

22 property; or 

23 ‘‘(B) energy efficiency or energy conserving 

24 improvements or features of the property; and’’. 


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1 (2) REVISION OF APPRAISAL STANDARDS.— 

2 Each Federal financial institution regulatory agency 

3 shall, not later than 6 months after the date of en4 actment of this Act, revise its standards for the per5 formance of real estate appraisals in connection with 

6 federally related transactions under the jurisdiction 

7 of the agency to comply with the requirement under 

8 the amendments made by paragraph (1). 

9 (b) APPRAISER CERTIFICATION AND LICENSING RE10 QUIREMENTS.—Section 1116 of the Financial Institutions 

11 Reform, Recovery, and Enforcement Act of 1989 (12 

12 U.S.C. 3345) is amended— 

13 (1) in subsection (a), by inserting before the pe14 riod at the end the following: ‘‘and meets the re15 quirements established pursuant to subsection (f) for 

16 qualifications regarding consideration of any renew17 able energy sources for, or energy efficiency or en18 ergy conserving improvements or features of, the 

19 property’’; 

20 (2) in subsection (c), by inserting before the pe21 riod at the end the following: ‘‘, which shall include 

22 compliance with the requirements established pursu23 ant to subsection (f) regarding consideration of any 

24 renewable energy sources for, or energy efficiency or 


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1 energy conserving improvements or features of, the 

2 property’’; 

3 (3) in subsection (e), by striking ‘‘The’’ and in4 serting ‘‘Except as provided in subsection (f), the’’; 

5 and 

6 (4) by adding at the end the following: 

7 ‘‘(f) REQUIREMENTS FOR APPRAISERS REGARDING

8 ENERGY EFFICIENCY FEATURES.—The Appraisal Sub9 committee shall establish requirements for State certifi10 cation of State certified real estate appraisers and for 

11 State licensing of State licensed appraisers, to ensure that 

12 appraisers consider and are qualified to consider, in deter13 mining the value of a property, any renewable energy 

14 sources for, or energy efficiency or energy conserving im15 provements or features of, the property.’’. 

16 (c) GUIDELINES FOR APPRAISING PHOTOVOLTAIC

17 AND SOLAR THERMAL MEASURES AND TRAINING OF AP18 PRAISERS.—Section 1122 of the Financial Institutions 

19 Reform, Recovery, and Enforcement Act of 1989 (12 

20 U.S.C. 3351) is amended by adding at the end the fol21 lowing: 

22 ‘‘(g) GUIDELINES FOR APPRAISING PHOTOVOLTAIC

23 AND SOLAR THERMAL MEASURES AND TRAINING OF AP24 PRAISERS.—The Appraisal Subcommittee shall, in con25 sultation with the Secretary of Housing and Urban DevelVerDate Nov 24 2008 01:19 Jul 01, 2009 Jkt 079200 PO 00000 Frm 00055 Fmt 6652 Sfmt 6201 E:\BILLS\S1379.IS S1379

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1 opment, the Federal National Mortgage Association, and 

2 the Federal Home Loan Mortgage Corporation, establish 

3 specific guidelines for— 

4 ‘‘(1) appraising off- and on-grid photovoltaic 

5 and solar thermal measures for compliance with the 

6 appraisal standards prescribed pursuant to section 

7 1110(2); 

8 ‘‘(2) requirements under section 1116(f) for 

9 certification of State certified real estate appraisers 

10 and for State licensing of State licensed appraisers, 

11 to ensure that appraisers consider, and are qualified 

12 to consider, such photovoltaic and solar thermal 

13 measures in determining the value of a property; 

14 and 

15 ‘‘(3) training of appraisers to meet the require16 ments established pursuant to paragraph (2) of this 

17 subsection.’’. 

18 SEC. 17. ADDITIONAL REQUIREMENTS FOR THE HOUSING 

19 ASSISTANCE COUNCIL. 

20 The Secretary shall require the Housing Assistance 

21 Council— 

22 (1) to encourage each organization that receives 

23 assistance from the Council with any amounts made 

24 available from the Secretary to provide that any 

25 structure or building developed or assisted under 


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1 projects, programs, and activities funded with such 

2 amounts complies with enhanced energy efficiency 

3 standards; and 

4 (2) to establish incentives to encourage each 

5 such organization to provide that any such structure 

6 or building complies with enhanced energy efficiency 

7 standards. 

8 SEC. 18. RURAL HOUSING AND ECONOMIC DEVELOPMENT 

9 ASSISTANCE. 

10 The Secretary shall— 

11 (1) encourage each tribe, agency, organization, 

12 corporation, and other entity that receives any as13 sistance from the Office of Rural Housing and Eco14 nomic Development of the Department of Housing 

15 and Urban Development to provide that any struc16 ture or building developed or assisted under activi17 ties funded with such amounts complies with min18 imum energy efficiency standards; and 

19 (2) establish incentives to encourage each such 

20 tribe, agency, organization, corporation, and other 

21 entity to provide that any such structure or building 

22 comply with enhanced energy efficiency standards. 


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1 SEC. 19. REVOLVING FUND FOR LOANS TO STATES AND IN2 DIAN TRIBES TO CARRY OUT RENEWABLE EN3 ERGY SOURCES ACTIVITIES. 

4 (a) ESTABLISHMENT OF FUND.—There is estab5 lished in the Treasury of the United States a revolving 

6 fund, to be known as the ‘‘Alternative Energy Sources 

7 State Revolving Fund’’. 

8 (b) CREDITS.—The Fund shall be credited with— 

9 (1) any amounts appropriated to the Fund pur10 suant to subsection (g); 

11 (2) any amounts of principal and interest from 

12 loan repayments received by the Secretary pursuant 

13 to subsection (d)(7); and 

14 (3) any interest earned on investments of 

15 amounts in the Fund pursuant to subsection (e). 

16 (c) EXPENDITURES.— 

17 (1) IN GENERAL.—Subject to paragraph (2), on 

18 request by the Secretary, the Secretary of the Treas19 ury shall transfer from the Fund to the Secretary 

20 such amounts as the Secretary determines are nec21 essary to provide loans under subsection (d)(1). 

22 (2) ADMINISTRATIVE EXPENSES.—Of the 

23 amounts in the Fund, not more than 5 percent shall 

24 be available for each fiscal year to pay the adminis25 trative expenses of the Department of Housing and 

26 Urban Development to carry out this section. 


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1 (d) LOANS TO STATES AND INDIAN TRIBES.— 

2 (1) IN GENERAL.—The Secretary shall use 

3 amounts in the Fund to provide loans to States and 

4 Indian tribes to provide incentives to owners of sin5 gle family and multifamily housing, commercial 

6 properties, and public buildings to provide— 

7 (A) renewable energy sources for such 

8 structures, such as wind, wave, solar, biomass, 

9 or geothermal energy sources, including incen10 tives to companies and businesses to change 

11 their source of energy to such renewable energy 

12 sources and for changing the sources of energy 

13 for public buildings to such renewable energy 

14 sources; 

15 (B) energy efficiency and energy con16 serving improvements and features for such 

17 structures; or 

18 (C) infrastructure related to the delivery of 

19 electricity and hot water for structures lacking 

20 such amenities. 

21 (2) ELIGIBILITY.—To be eligible to receive a 

22 loan under this subsection, a State or Indian tribe, 

23 directly or through an appropriate State or tribal 

24 agency, shall submit to the Secretary an application 


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1 at such time, in such manner, and containing such 

2 information as the Secretary may require. 

3 (3) CRITERIA FOR APPROVAL.—The Secretary 

4 may approve an application of a State or Indian 

5 tribe under paragraph (2) only if the Secretary de6 termines that the State or tribe will use the funds 

7 from the loan under this subsection to carry out a 

8 program to provide incentives described in para9 graph (1) that— 

10 (A) requires that any such renewable en11 ergy sources, and energy efficiency and energy 

12 conserving improvements and features, devel13 oped pursuant to assistance under the program 

14 result in compliance of the structure so im15 proved with minimum energy efficiency stand16 ards; and 

17 (B) includes such compliance and audit re18 quirements as the Secretary determines are nec19 essary to ensure that the program is operated 

20 in a sound and effective manner. 

21 (4) PREFERENCE.—In making loans during 

22 each fiscal year, the Secretary shall give preference 

23 to States and Indian tribes that have not previously 

24 received a loan under this subsection. 


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1 (5) MAXIMUM AMOUNT.—The aggregate out2 standing principal amount from loans under this 

3 subsection to any single State or Indian tribe may 

4 not exceed $500,000,000. 

5 (6) LOAN TERMS.—Each loan under this sub6 section shall have a term to maturity of not more 

7 than 10 years and shall bear interest at an annual 

8 rate, determined by the Secretary, that shall not ex9 ceed the interest rate charged by the Federal Re10 serve Bank of New York to commercial banks and 

11 other depository institutions for very short-term 

12 loans under the primary credit program, as most re13 cently published in the Federal Reserve Statistical 

14 Release on selected interest rates (daily or weekly), 

15 and commonly referred to as the H.15 release, pre16 ceding the date of a determination for purposes of 

17 applying this paragraph. 

18 (7) LOAN REPAYMENT.—The Secretary shall 

19 require full repayment of each loan made under this 

20 section. 

21 (e) INVESTMENT OF AMOUNTS.— 

22 (1) IN GENERAL.—The Secretary of the Treas23 ury shall invest such amounts in the Fund that are 

24 not, in the judgment of the Secretary of the Treas25 ury, required to meet needs for current withdrawals. 


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1 (2) OBLIGATIONS OF UNITED STATES.—Invest2 ments may be made only in interest-bearing obliga3 tions of the United States. 

4 (f) REPORTS.— 

5 (1) REPORTS TO SECRETARY.—For each year 

6 during the term of a loan made under subsection 

7 (d), the State or Indian tribe that received the loan 

8 shall submit to the Secretary a report describing the 

9 State or tribal alternative energy sources program 

10 for which the loan was made and the activities con11 ducted under the program using the loan funds dur12 ing that year. 

13 (2) REPORT TO CONGRESS.—Not later than 

14 September 30 of each year that loans made under 

15 subsection (d) are outstanding, the Secretary shall 

16 submit a report to Congress describing the total 

17 amount of such loans provided under subsection (d) 

18 to each eligible State and Indian tribe during the fis19 cal year ending on such date, and an evaluation on 

20 effectiveness of the Fund. 

21 (g) AUTHORIZATION OF APPROPRIATIONS.—There is 

22 authorized to be appropriated to the Fund 

23 $5,000,000,000. 

24 (h) DEFINITIONS.—In this section, the following defi25 nitions shall apply: 


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

2 has the meaning given such term in section 4 of the 

3 Native American Housing Assistance and Self-De4 termination Act of 1996 (25 U.S.C. 4103). 

5 (2) STATE.—The term ‘‘State’’ means each of 

6 the several States, the Commonwealth of Puerto 

7 Rico, the District of Columbia, the Commonwealth 

8 of the Northern Mariana Islands, Guam, the Virgin 

9 Islands, American Samoa, the Trust Territories of 

10 the Pacific, or any other possession of the United 

11 States. 

12 SEC. 20. COMPETITIVE GRANT PROGRAM TO INCREASE 

13 SUSTAINABLE LOW-INCOME COMMUNITY DE14 VELOPMENT CAPACITY. 

15 (a) DEFINITIONS.—In this section: 

16 (1) ELIGIBLE COMMUNITY DEVELOPMENT OR17 GANIZATION.—The term ‘‘eligible community devel18 opment organization’’ means— 

19 (A) a unit of general local government, as 

20 that term is defined in section 104 of the Cran21 ston-Gonzalez National Affordable Housing Act 

22 (42 U.S.C. 12704)); 

23 (B) a community housing development or24 ganization, as that term is defined in section 


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1 104 of the Cranston-Gonzalez National Afford2 able Housing Act (42 U.S.C. 12704)); 

3 (C) an Indian tribe or tribally designated 

4 housing entity, as those terms are defined in 

5 section 4 of the Native American Housing As6 sistance and Self-Determination Act of 1996 

7 (25 U.S.C. 4103)); and 

8 (D) a public housing agency, as that term 

9 is defined in section 3(b) of the United States 

10 Housing Act of 1937 (42 U.S.C. 1437(b)). 

11 (2) LOW-INCOME COMMUNITY.—The term ‘‘low12 income community’’ means a census tract in which 

13 50 percent or more of the households have an an14 nual income that is less than 80 percent of the 

15 greater of— 

16 (A) the median gross income for that year 

17 for the area in which the census tract is lo18 cated; or 

19 (B) the median gross income for that year 

20 for the State in which the census tract is lo21 cated. 

22 (3) NONPROFIT ORGANIZATION.—The term 

23 ‘‘nonprofit organization’’ has the same meaning as 

24 in section 104 of the Cranston-Gonzalez National 

25 Affordable Housing Act (42 U.S.C. 12704). 


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1 (b) PROGRAM ESTABLISHED.—The Secretary shall 

2 establish a competitive grant program to make grants to 

3 nonprofit organizations to— 

4 (1) carry out a project described in subsection 

5 (c); 

6 (2) train, educate, support, or advise an eligible 

7 community development organization that carries 

8 out a project described in subsection (c); 

9 (3) provide planning and design assistance to 

10 eligible community development organizations; 

11 (4) make loans or grants to eligible community 

12 development organizations; or 

13 (5) carry out other activities consistent with 

14 this section, as the Secretary determines appro15 priate. 

16 (c) PROJECTS.—The projects described in this sub17 section are projects— 

18 (1) that take into consideration minimum en19 ergy efficiency standards, enhanced energy efficiency 

20 standards, and green building standards; and 

21 (2) that— 

22 (A) improve the energy efficiency of resi23 dential and nonresidential structures; 

24 (B) promote resource conservation and 

25 reuse; 


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1 (C) include design strategies to maximize 

2 the energy efficiency of residential and nonresi3 dential structures; 

4 (D) install or construct renewable energy 

5 improvements for residential and nonresidential 

6 structures, including wind, wave, solar, biomass, 

7 and geothermal energy sources; or 

8 (E) promote the effective use of existing 

9 infrastructure in affordable housing and eco10 nomic development activities in low-income com11 munities. 

12 (d) PRIORITY.—In making grants under this section, 

13 the Secretary shall give priority to activities that will re14 sult in compliance with minimum energy efficiency stand15 ards, enhanced energy efficiency standards, and green 

16 building standards. 

17 (e) APPLICATION.—A nonprofit organization that de18 sires a grant under this section shall submit to the Sec19 retary an application at such time, in such manner, and 

20 containing such information as the Secretary may require. 

21 (f) AWARD OF CONTRACTS.—Any contract for archi22 tectural or engineering services that is funded with 

23 amounts from grants made under this section shall be 

24 awarded in accordance with chapter 11 of title 40, United 


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1 States Code (relating to selection of architects and engi2 neers). 

3 (g) FEDERAL SHARE.— 

4 (1) AMOUNT OF FEDERAL SHARE.—The Fed5 eral share of the cost of a project under this section 

6 may not exceed 50 percent. 

7 (2) FORM OF NON-FEDERAL SHARE.—The non8 Federal share of the cost of a project under this sec9 tion may be in cash or in-kind. 

10 (h) AUTHORIZATION OF APPROPRIATIONS.—There 

11 are authorized to be appropriated to the Secretary such 

12 sums as may be necessary to carry out this section. 

13 SEC. 21. INSURANCE COVERAGE FOR LOANS FOR FINANC14 ING OF RENEWABLE ENERGY SYSTEMS 

15 LEASED FOR RESIDENTIAL USE. 

16 (a) PURPOSES.—The purposes of this section are— 

17 (1) to encourage residential use of renewable 

18 energy systems by minimizing upfront costs and pro19 viding immediate utility cost savings to consumers 

20 through leasing of such systems to homeowners; 

21 (2) to reduce carbon emissions and the use of 

22 nonrenewable resources; 

23 (3) to encourage energy efficient residential 

24 construction and rehabilitation; 


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1 (4) to encourage the use of renewable resources 

2 by homeowners; 

3 (5) to minimize the impact of development on 

4 the environment; 

5 (6) to reduce consumer utility costs; and 

6 (7) to encourage private investment in the 

7 green economy. 

8 (b) DEFINITIONS.—As used in this section, the fol9 lowing definitions shall apply: 

10 (1) AUTHORIZED RENEWABLE ENERGY LEND11 ER.—The term ‘‘authorized renewable energy lend12 er’’ means a lender authorized by the Secretary to 

13 make a loan under this section. 

14 (2) RENEWABLE ENERGY SYSTEM LEASE.—The 

15 term ‘‘renewable system energy lease’’ means an 

16 agreement between an authorized renewable energy 

17 system owner and a homeowner for a term of not 

18 less than 5 years, pursuant to which the home19 owner— 

20 (A) grants an easement to such renewable 

21 energy system owner to install, maintain, use, 

22 and otherwise access the renewable energy sys23 tem; and 

24 (B) agrees to— 


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1 (i) lease the use of such system from 

2 such renewable energy system owner; or 

3 (ii) purchase electric power from such 

4 renewable energy system owner. 

5 (3) RENEWABLE ENERGY MANUFACTURER.— 

6 The term ‘‘renewable energy manufacturer’’ means a 

7 manufacturer of renewable energy systems. 

8 (4) RENEWABLE ENERGY SYSTEM OWNER.— 

9 The term ‘‘renewable energy system owner’’ means 

10 a homebuilder, a manufacturer or installer of a re11 newable energy system, or any other person, as de12 termined by the Secretary. 

13 (5) RENEWABLE ENERGY SYSTEM.—The term 

14 ‘‘renewable energy system’’ means a system of en15 ergy derived from— 

16 (A) a wind, solar (including photovoltaic 

17 and solar thermal), biomass (including bio18 diesel), or geothermal source; or 

19 (B) hydrogen derived from biomass or 

20 water using an energy source described in sub21 paragraph (A). 

22 (c) AUTHORITY.— 

23 (1) IN GENERAL.—The Secretary may, upon 

24 application by an authorized renewable energy sys25 tem owner, insure or make a commitment to insure 


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1 a loan made by an authorized renewable energy 

2 lender to a renewable energy system owner to fi3 nance the acquisition of a renewable energy system 

4 for lease to a homeowner for use at the residence of 

5 such homeowner. 

6 (2) TERMS AND CONDITIONS.—The Secretary 

7 may prescribe such terms and conditions for insur8 ance under paragraph (1) as are consistent with the 

9 purposes of this section. 

10 (d) LIMITATION ON PRINCIPAL AMOUNT.— 

11 (1) LIMITATION.—The principal amount of a 

12 loan insured under this section shall not exceed the 

13 residual value of the renewable energy system to be 

14 acquired with the loan. 

15 (2) RESIDUAL VALUE.—For purposes of this 

16 subsection— 

17 (A) the residual value of a renewable en18 ergy system is the fair market value of the fu19 ture revenue stream from the sale of the ex20 pected remaining electricity production from the 

21 system, pursuant to the easement granted in 

22 accordance with subsection (e); and 

23 (B) the fair market value of the future rev24 enue stream for each year of the remaining life 

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1 mined based on the net present value of the 

2 power output production warranty for such re3 newable energy system provided by the renew4 able energy manufacturer and the forecast of 

5 regional residential electricity prices made by 

6 the Energy Information Administration of the 

7 Department of Energy. 

8 (e) EASEMENT.—The Secretary may not insure a 

9 loan under this section unless the renewable energy system 

10 owner certifies, in accordance with such requirements as 

11 the Secretary shall establish, consistent with the purposes 

12 of this section, that the systems financed will be leased 

13 only to homeowners that grant easements to install, main14 tain, use, and otherwise access the system that include the 

15 right to sell electricity produced during the life of the re16 newable energy system to a wholesale or retail electrical 

17 power grid. 

18 (f) DISCOUNT OR PREPAYMENT.—To encourage the 

19 use of renewable energy systems, the Secretary shall en20 sure that a discount given to a homeowner by a renewable 

21 energy system owner or other investor or prepayment of 

22 a renewable energy system lease by a renewable energy 

23 system owner does not adversely affect the mortgage re24 quirements of such homeowner. 


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1 (g) ELIGIBILITY OF LENDERS.—The Secretary may 

2 not insure a loan under this section unless the lender mak3 ing the loan— 

4 (1) is an institution that— 

5 (A) qualifies as a green banking center 

6 under section 8(x) of the Federal Deposit In7 surance Act (12 U.S.C. 1818(x)) or section 

8 206(x) of the Federal Credit Union Act (12 

9 U.S.C. 1786(x)); or 

10 (B) meets such other requirements as the 

11 Secretary shall establish for participation of re12 newable energy lenders in the program under 

13 this section; and 

14 (2) meets such qualifications as the Secretary 

15 shall establish for all lenders for participation in the 

16 program under this section. 

17 (h) CERTIFICATE OF INSURANCE.— 

18 (1) IN GENERAL.—The Secretary shall issue to 

19 a lender that is insured under this section a certifi20 cate that serves as evidence of insurance coverage 

21 under this section. 

22 (2) CONTENTS OF CERTIFICATE.—The certifi23 cate required under paragraph (1) shall set forth the 

24 fair market value of the future revenue stream for 


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1 each year of the remaining life of the renewable en2 ergy system. 

3 (3) FULL FAITH AND CREDIT.—The certificate 

4 required under paragraph (1) shall be backed by the 

5 full faith and credit of the United States. 

6 (i) PAYMENT OF INSURANCE CLAIM.— 

7 (1) FILING OF CLAIM.—The Secretary shall 

8 provide for the filing of claims for insurance under 

9 this section and the payment of such claims. 

10 (2) PAYMENT OF CLAIM.—A claim under para11 graph (1) may be paid only upon a default under the 

12 loan insured under this section and the assignment, 

13 transfer, and delivery to the Secretary of— 

14 (A) all rights and interests arising under 

15 the loan; and 

16 (B) all claims of the lender or the assigns 

17 of the lender against the borrower or others 

18 arising under the loan transaction. 

19 (3) LIEN.— 

20 (A) IN GENERAL.—Upon payment of a 

21 claim for insurance of a loan under this section, 

22 the Secretary shall hold a lien on the underlying 

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1 tem, which shall be superior to all other liens 

2 on such assets. 

3 (B) RESIDUAL VALUE.—The residual value 

4 of such renewable energy system and the rev5 enue stream from the use of such system shall 

6 be not less than the unpaid balance of the loan 

7 amount covered by the certificate of insurance. 

8 (C) REVENUE FROM SALE.—The Secretary 

9 shall be entitled to any revenue generated by 

10 such renewable energy system from selling elec11 tricity to the grid when an insurance claim has 

12 been paid out. 

13 (j) ASSIGNMENT AND TRANSFERABILITY OF INSUR14 ANCE.—A renewable energy system owner or an author15 ized renewable energy lender that is insured under this 

16 section may assign or transfer the insurance in whole or 

17 in part, to another owner or lender, subject to such re18 quirements as the Secretary may prescribe. 

19 (k) PREMIUMS AND CHARGES.— 

20 (1) INSURANCE PREMIUMS.— 

21 (A) IN GENERAL.—The Secretary shall fix 

22 and collect premiums for insurance of loans 

23 under this section, that shall be paid by the ap24 plicant renewable energy system owner at the 

25 time of issuance of the certificate of insurance 


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1 to the lender and shall be adequate, in the de2 termination of the Secretary, to cover the ex3 penses and probable losses of administering the 

4 program under this section. 

5 (B) DEPOSIT OF PREMIUM.—The Sec6 retary shall deposit any premiums collected 

7 under this subsection in the Renewable Energy 

8 Lease Insurance Fund established under sub9 section (l). 

10 (2) PROHIBITION ON OTHER CHARGES.—Except 

11 as provided in paragraph (1), the Secretary may not 

12 assess any other fee (including a user fee), insurance 

13 premium, or charge in connection with loan insur14 ance provided under this section. 

15 (l) RENEWABLE ENERGY LEASE INSURANCE

16 FUND.— 

17 (1) FUND ESTABLISHED.—There is established 

18 in the Treasury of the United States the Renewable 

19 Energy Lease Insurance Fund (referred to in this 

20 subsection as the ‘‘Fund’’), which shall be available 

21 to the Secretary without fiscal year limitation, for 

22 the purpose of providing insurance under this sec23 tion. 

24 (2) CREDITS.—The Fund shall be credited with 

25 any premiums collected under subsection (k)(1), any 


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1 amounts collected by the Secretary under subsection 

2 (i)(3), and any associated interest or earnings. 

3 (3) AVAILABILITY.—Amounts in the Fund shall 

4 be available to the Secretary for fulfilling any obliga5 tions with respect to insurance for loans provided 

6 under this section and paying administrative ex7 penses in connection with this section. 

8 (4) EXCESS AMOUNTS.—The Secretary may in9 vest in obligations of the United States any amounts 

10 in the Fund determined by the Secretary to be in ex11 cess of amounts required at the time of such deter12 mination to carry out this section. 

13 (m) REGULATIONS.— 

14 (1) IN GENERAL.—The Secretary shall issue 

15 such regulations as may be necessary to carry out 

16 this section. 

17 (2) TIMING.—Not later than 180 days after the 

18 date of enactment of this Act, the Secretary shall 

19 issue interim or final regulations. 

20 (n) INELIGIBILITY FOR PURCHASE BY FEDERAL FI21 NANCING BANK.—Notwithstanding any other provision of 

22 law, no debt obligation that is insured or committed to 

23 be insured by the Secretary under this section shall be 

24 subject to the Federal Financing Bank Act of 1973 (12 

25 U.S.C. 2281 et seq.). 


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1 (o) TERMINATION OF AUTHORITY.—The authority of 

2 the Secretary to insure and make commitments to insure 

3 new loans under this Act shall terminate 10 years after 

4 the date of enactment of this Act. 

5 SEC. 22. GREEN BANKING CENTERS. 

6 (a) INSURED DEPOSITORY INSTITUTIONS.—Section 8 

7 of the Federal Deposit Insurance Act (12 U.S.C. 1818) 

8 is amended by adding at the end the following: 

9 ‘‘(x) GREEN BANKING CENTERS.— 

10 ‘‘(1) IN GENERAL.—The Federal banking agen11 cies shall prescribe guidelines encouraging the estab12 lishment and maintenance of green banking centers 

13 by insured depository institutions to provide any 

14 consumer who seeks information on obtaining a 

15 mortgage, home improvement loan, or home equity 

16 loan with additional information on— 

17 ‘‘(A) obtaining a home energy rating or 

18 audit for the residence for which such mortgage 

19 or loan is sought; 

20 ‘‘(B) obtaining financing for cost-effective 

21 energy-saving improvements to such property; 

22 and 

23 ‘‘(C) obtaining beneficial terms for any 

24 mortgage or loan, or qualifying for a larger 


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1 mortgage or loan, secured by a residence which 

2 meets or will meet energy efficiency standards. 

3 ‘‘(2) INFORMATION AND REFERRALS.—The in4 formation made available to consumers under para5 graph (1) may include— 

6 ‘‘(A) information on obtaining a home en7 ergy rating and contact information on quali8 fied energy raters in the area of the residence; 

9 ‘‘(B) information on the secondary market 

10 guidelines that permit lenders to provide more 

11 favorable terms by allowing lenders to increase 

12 the ratio on debt-to-income requirements or to 

13 use the projected utility savings as a compen14 sating factor; 

15 ‘‘(C) information including eligibility infor16 mation about, and contact information for, any 

17 conservation or renewable energy programs, 

18 grants, or loans offered by the Secretary of 

19 Housing and Urban Development, including the 

20 Energy Efficient Mortgage Program; 

21 ‘‘(D) information including eligibility infor22 mation about, and contact information for, any 

23 conservation or renewable energy programs, 

24 grants, or loans offered for qualified military 


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1 personal, reservists, and veterans by the Sec2 retary of Veterans Affairs; 

3 ‘‘(E) information about, and contact infor4 mation for, the Office of Efficiency and Renew5 able Energy at the Department of Energy, in6 cluding the weatherization assistance program; 

7 ‘‘(F) information about, and contact infor8 mation for, the Energy Star Program of the 

9 Environmental Protection Agency; 

10 ‘‘(G) information from, and contact infor11 mation for, the Federal Citizen Information 

12 Center of the General Services Administration 

13 on energy efficient mortgages and loans, home 

14 energy rating systems, and the availability of 

15 energy efficient mortgage information from a 

16 variety of Federal agencies; and 

17 ‘‘(H) such other information as the agen18 cies or the insured depository institution may 

19 determine to be appropriate or useful.’’. 

20 (b) INSURED CREDIT UNIONS.—Section 206 of the 

21 Federal Credit Union Act (12 U.S.C. 1786) is amended 

22 by adding at the end the following: 

23 ‘‘(x) GREEN BANKING CENTERS.— 

24 ‘‘(1) IN GENERAL.—The Board shall prescribe 

25 guidelines encouraging the establishment and mainVerDate Nov 24 2008 01:19 Jul 01, 2009 Jkt 079200 PO 00000 Frm 00079 Fmt 6652 Sfmt 6201 E:\BILLS\S1379.IS S1379

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1 tenance of green banking centers by insured credit 

2 unions to provide any member who seeks informa3 tion on obtaining a mortgage, home improvement 

4 loan, or home equity loan with additional informa5 tion on— 

6 ‘‘(A) obtaining a home energy rating or 

7 audit for the residence for which such mortgage 

8 or loan is sought; 

9 ‘‘(B) obtaining financing for cost-effective 

10 energy-saving improvements to such property; 

11 and 

12 ‘‘(C) obtaining beneficial terms for any 

13 mortgage or loan, or qualifying for a larger 

14 mortgage or loan, secured by a residence which 

15 meets or will meet energy efficiency standards. 

16 ‘‘(2) INFORMATION AND REFERRALS.—The in17 formation made available to members under para18 graph (1) may include— 

19 ‘‘(A) information on obtaining a home en20 ergy rating and contact information on quali21 fied energy raters in the area of the residence; 

22 ‘‘(B) information on the secondary market 

23 guidelines that permit lenders to provide more 

24 favorable terms by allowing lenders to increase 

25 the ratio on debt-to-income requirements or to 


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1 use the projected utility savings as a compen2 sating factor; 

3 ‘‘(C) information including eligibility infor4 mation about, and contact information for, any 

5 conservation or renewable energy programs, 

6 grants, or loans offered by the Secretary of 

7 Housing and Urban Development, including the 

8 Energy Efficient Mortgage Program; 

9 ‘‘(D) information including eligibility infor10 mation about, and contact information for, any 

11 conservation or renewable energy programs, 

12 grants, or loans offered for qualified military 

13 personnel, reservists, and veterans by the Sec14 retary of Veterans Affairs; 

15 ‘‘(E) information about, and contact infor16 mation for, the Office of Efficiency and Renew17 able Energy at the Department of Energy, in18 cluding the weatherization assistance program; 

19 ‘‘(F) information from, and contact infor20 mation for, the Federal Citizen Information 

21 Center of the General Services Administration 

22 on energy efficient mortgages and loans, home 

23 energy rating systems, and the availability of 

24 energy efficient mortgage information from a 

25 variety of Federal agencies; 


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1 ‘‘(G) information about incentives or finan2 cial products that are available for projects that 

3 are consistent with or certified under minimum 

4 energy efficiency standards, enhanced efficiency 

5 standards, or green building standards, as those 

6 terms are defined in section 3 of the Energy 

7 Efficiency in Housing Act of 2009; and 

8 ‘‘(H) such other information as the Board 

9 or the insured credit union may determine to be 

10 appropriate or useful.’’. 

11 SEC. 23. GAO REPORTS ON AVAILABILITY OF AFFORDABLE 

12 MORTGAGES. 

13 (a) STUDY.—The Comptroller General of the United 

14 States shall periodically, as necessary to comply with sub15 section (b), examine the impact of this Act and the amend16 ments made by this Act on the availability of affordable 

17 mortgages in various areas throughout the United States, 

18 including cities having older infrastructure and limited 

19 space for the development of new housing. 

20 (b) TRIENNIAL REPORTS.— 

21 (1) REPORT REQUIRED.—The Comptroller Gen22 eral shall submit a report once every 3 years to the 

23 Committee on Banking, Housing, and Urban Affairs 

24 of the Senate and the Committee on Financial Serv25 ices of the House of Representatives. 


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1 (2) CONTENTS OF REPORT.—The report under 

2 paragraph (1) shall include— 

3 (A) a detailed statement of the most recent 

4 findings pursuant to subsection (a); and 

5 (B) if the Comptroller General finds that 

6 this Act or the amendments made by this Act 

7 have directly or indirectly resulted in con8 sequences that limit the availability or afford9 ability of mortgages in any area or areas within 

10 the United States, including any city having 

11 older infrastructure and limited space for the 

12 development of new housing, any recommenda13 tions for any additional actions at the Federal, 

14 State, or local levels that the Comptroller Gen15 eral considers necessary or appropriate to miti16 gate such effects. 

17 (3) TIMING.—The first report under paragraph 

18 (1) shall be submitted not later than 3 years after 

19 the date of enactment of this Act. 

20 SEC. 24. PUBLIC HOUSING ENERGY COST REPORT. 

21 (a) COLLECTION OF INFORMATION BY HUD.— 

22 (1) IN GENERAL.—The Secretary shall obtain 

23 from each public housing agency, at such time as 

24 may be necessary to comply with the reporting re25 quirement under subsection (b), information regardVerDate Nov 24 2008 01:19 Jul 01, 2009 Jkt 079200 PO 00000 Frm 00083 Fmt 6652 Sfmt 6201 E:\BILLS\S1379.IS S1379

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1 ing the energy costs for public housing administered 

2 or operated by the agency. 

3 (2) TYPE OF INFORMATION.—For each public 

4 housing agency, such information shall include the 

5 monthly energy costs associated with each separate 

6 building and development of the agency, for the 

7 most recently completed 12-month period for which 

8 such information is available, and such other infor9 mation as the Secretary determines is appropriate in 

10 determining which public housing buildings and de11 velopments are most in need of repairs and improve12 ments to reduce energy needs and costs and become 

13 more energy efficient. 

14 (b) REPORT.—Not later than 12 months after the 

15 date of enactment of this Act, the Secretary shall submit 

16 to Congress a report setting forth the information col17 lected pursuant to subsection (a). 

Æ 


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