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[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4785 Referred in Senate (RFS)]

111th CONGRESS
  2d Session
                                H. R. 4785

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                           September 20, 2010

   Received; read twice and referred to the Committee on Energy and 
                           Natural Resources

_______________________________________________________________________

                                 AN ACT

 
  To authorize the Secretary of Agriculture to make loans to certain 
   entities that agree that the funds will be used to make loans to 
consumers to implement energy efficiency measures involving structural 
  improvements and investments in cost-effective, commercial off-the-
    shelf technologies to reduce energy use, and for other purposes.

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

SECTION 1. HOME STAR ENERGY EFFICIENCY LOAN PROGRAM.

    (a) Definitions.--In this section:
            (1) Eligible participant.--The term ``eligible 
        participant'' means a homeowner with a gross annual household 
        income of less than $250,000 who receives financial assistance 
        from a qualified financing entity to carry out qualifying 
        energy savings measures pursuant to this section, and who is 
        not also a qualified consumer under section 2. A homeowner may 
        not qualify as an eligible participant if the homeowner has 
        been more than 6 months delinquent in child support payments.
            (2) Qualified financing entity.--The term ``qualified 
        financing entity'' means a State, political subdivision of a 
        State, tribal government, electric utility, natural gas 
        utility, nonprofit organization, energy service company, 
        retailer, or any other entity that--
                    (A) meets the eligibility requirements of this 
                section;
                    (B) is not an entity that has an ongoing capital 
                repayment obligation to the Department of the Treasury 
                pursuant to the Troubled Asset Relief Program (Public 
                Law 110-343, 122  Stat.  3765); and
                    (C) is designated by the Governor of a State in 
                accordance with subsection (f)(1),
        except that an entity that is an eligible entity under section 
        2 shall not be a qualified financing entity.
            (3) Qualified loan program mechanism.--The term ``qualified 
        loan program mechanism'' means a mechanism for the 
        establishment and operation of a loan program that is--
                    (A) administered by a qualified financing entity; 
                and
                    (B) funded in significant part--
                            (i) by funds provided by or overseen by a 
                        State; or
                            (ii) through the energy loan program of the 
                        Federal National Mortgage Association.
            (4) Qualifying energy savings measure.--The term 
        ``qualifying energy savings measure'' means a measure listed 
        under subsection (c)(1) or (2) or stipulated in a whole-house 
        analysis under subsection (c)(3).
    (b) Establishment.--The Secretary of Energy shall establish a Home 
Star Energy Efficiency Loan Program under which the Secretary of Energy 
shall offer loans at zero percent interest to States to support 
financial assistance provided by qualified financing entities for the 
installation of qualifying energy savings measures.
    (c) Energy Efficiency Measures and Standards.--The Secretary of 
Energy, in consultation with the Secretary of Agriculture, shall 
publish--
            (1) not later than 90 days after the date of enactment of 
        this Act, a master list of residential energy efficiency 
        measures determined to be cost-effective, readily available 
        from commercial sources, to be permanently installed in a 
        primary residence, and capable of supporting measurement and 
        verification of the energy savings that results from their 
        adoption, but which shall not include the installation or 
        replacement of pool heaters or the installation of Energy Star 
        televisions;
            (2) additions to such a list, approved by the Secretary of 
        Energy, of other residential energy efficiency measures that 
        are--
                    (A) recommended by the Secretary of Agriculture;
                    (B) calculated to achieve sufficient energy savings 
                that they will achieve a simple payback within 10 years 
                or less; and
                    (C) permanently installed in a primary residence;
            (3) specifications for whole-house energy performance 
        analyses simulating energy use before and after a retrofit 
        utilizing measures from the master list published pursuant to 
        paragraphs (1) and (2) and such other permanent structural 
        measures as can be demonstrated, when installed and operated as 
        intended, to improve residential energy efficiency in a manner 
        that can be determined with confidence to be cost-effective and 
        to recover their own cost in energy cost savings within the 
        term of a proposed loan; and
            (4) a protocol for measurement and verification of the 
        energy savings that have resulted from any and all energy 
        efficiency measures taken with respect to a residence and 
        financed in whole or in part pursuant to this title. In 
        determining which residential energy efficiency measures to 
        include in the list published under paragraph (1) or (2), the 
        Secretary of Energy, in consultation with the Secretary of 
        Agriculture, shall consider advanced performance initiatives, 
        such as the Passive House Standard as certified by the Passive 
        House Institute US.
    (d) Eligibility of Qualified Financing Entities.--To be eligible to 
participate in the Home Star Loan Program, a qualified financing entity 
shall--
            (1) offer a financing product under which eligible 
        participants may pay over time for the cost to the eligible 
        participant (after all applicable Federal, State, local, and 
        other rebates or incentives are applied) of installations 
        described in subsection (b);
            (2) require all financed installations to be performed by 
        contractors in a manner that meets building code requirements 
        and other appropriate minimum standards;
            (3) establish standard underwriting criteria to determine 
        the eligibility of Home Star Loan Program applicants, which 
        criteria shall be consistent with--
                    (A) with respect to unsecured consumer loan 
                programs, standard underwriting criteria used under the 
                energy loan program of the Federal National Mortgage 
                Association; or
                    (B) with respect to secured loans or other forms of 
                financial assistance, commercially recognized best 
                practices applicable to the form of financial 
                assistance being provided (as determined by the 
                designated entity administering the Home Star Loan 
                Program in the State); and
            (4) undertake particular efforts, consistent with paragraph 
        (3), to make such loans available in public use microdata areas 
        that have a poverty rate of 12 percent or more in a proportion 
        of total loans made at least equal to the proportion the number 
        of residents in such areas bears to the total population of the 
        area served by that qualified financing entity.
    (e) Allocation.--In allocating 75 percent of the loan funds made 
available to States for each fiscal year under this section, the 
Secretary of Energy shall use the formula used to allocate funds to 
States to carry out State energy conservation plans established under 
part D of title III of the Energy Policy and Conservation Act (42 
U.S.C. 6321 et seq.), with appropriate modifications to reflect the 
funds to be provided in States for loans under section 2. In allocating 
the remaining 25 percent of the loan funds made available to States for 
each fiscal year under this section, the Secretary of Energy may vary 
the result of the formula to recognize and reward those States that 
make the best progress in providing loans to low-income areas pursuant 
to subsection (d)(4).
    (f) Qualified Financing Entities.--Before making funds available to 
a State under this section, the Secretary of Energy shall require the 
Governor of the State to provide to the Secretary of Energy a letter of 
agreement that the State--
            (1) will use the funds provided pursuant to this section 
        solely as provided in this section;
            (2) will use the funds provided under this section to 
        supplement and not supplant any prior or planned Federal and 
        State funding provided to carry out energy efficiency programs, 
        on the condition that, to the extent the Secretary finds that a 
        State has supplanted other such programs with funding under 
        this section, the Secretary may with hold an equivalent amount 
        of funding from allocations for the State under this section;
            (3) has 1 or more qualified financing entities that meet 
        the requirements of this section;
            (4) has established, or has required its designated 
        qualified financing entities to establish, a qualified loan 
        program mechanism that--
                    (A) will use a quality assurance program or another 
                appropriate methodology to ensure energy savings;
                    (B) incorporates an effective repayment mechanism, 
                which may include--
                            (i) on-utility-bill repayment;
                            (ii) tax assessment or other form of 
                        property assessment financing;
                            (iii) municipal service charges;
                            (iv) energy or energy efficiency services 
                        contracts;
                            (v) energy efficiency power purchase 
                        agreements;
                            (vi) unsecured loans applying the 
                        underwriting requirements of the energy loan 
                        program of the Federal National Mortgage 
                        Association; or
                            (vii) alternative contractual repayment 
                        mechanisms that have been demonstrated to have 
                        appropriate risk mitigation features;
            (5) will provide, in a timely manner, all information 
        regarding the administration of the Home Star Loan Program as 
        the Secretary of Energy may require to permit the Secretary of 
        Energy to meet program evaluation requirements; and
            (6) will commit to the full repayment of the loaned funds 
        to the Secretary of Energy by a date not later than 20 years 
        from the date of the loan closing.
    (g) Use of Funds.--Funds made available to States for carrying out 
the Home Star Loan Program may be used to support financing mechanisms 
offered by qualified financing entities to eligible participants, 
including--
            (1) interest rate reductions to interest rates as low as 
        zero percent;
            (2) loan loss reserves or other forms of credit 
        enhancement;
            (3) revolving loan funds from which qualified financing 
        entities may offer direct loans; or
            (4) other debt instruments necessary--
                    (A) to use available funds to obtain appropriate 
                leverage through private investment; and
                    (B) to support widespread deployment of energy 
                efficiency programs.
    (h) Administrative Costs.--A State may permit a qualified financing 
entity to charge interest of 3 percent to cover the costs of loan 
administration and personnel and program management, or for 
establishing a loan loss reserve.
    (i) Reporting Requirements.--The Secretary of Energy shall report 
to the Congress on the implementation of this title, including the 
energy savings and cost savings estimated to be achieved, not later 
than 1 year after the date of enactment of this Act, and again by not 
later than 2 years after the date of enactment of this section. The 
Secretary of Energy shall also include a detailed accounting of any 
waste, fraud, or abuse occurring in the administration of this Act in 
such reports.
    (j) Assessment by Government Accountability Office.--The 
Comptroller General shall, by not later than 18 months after the date 
of enactment of this Act, prepare and submit to the Congress an 
analysis and report determining--
            (1) the actual taxpayer funds made available for the 
        program created in this section;
            (2) the actual amounts of such funds made available to 
        eligible participants or qualified consumers in the program 
        created in this section;
            (3) the extent of measured and verified residential energy 
        savings achieved and expected to be achieved on an ongoing 
        basis as a function of this program;
            (4) the extent to which funds made available were expended 
        for training, administration, program support by contractors, 
        or trade association activities under this program;
            (5) the consistency and rigor of the standards for energy 
        efficiency and for measurement and verification adopted and 
        implemented by this program; and
            (6) the extent to which any waste, fraud, or abuse occurred 
        under this program.
    (k) Authorization.--There are authorized to be appropriated for 
purposes of this section, provided that enactment of this Act would not 
increase direct spending, $850,000,000 for each of fiscal years 2010 
through 2014, which shall remain available until expended.

SEC. 2. RURAL ENERGY SAVINGS PROGRAM.

    (a) Definitions.--In this section:
            (1) Eligible entity.--The term ``eligible entity'' means--
                    (A) any public or cooperative electric utility that 
                is eligible to borrow from the Rural Utilities Service 
                electrification program authorized under the Rural 
                Electrification Act of 1936 (7 U.S.C. 901 et seq.) that 
                serves a rural area;
                    (B) any current borrower of the Rural Utilities 
                Service electrification program authorized under that 
                Act; or
                    (C) any entity primarily owned or controlled by an 
                entity described in subparagraph (A) or (B).
            (2) Energy efficiency measure.--The term ``energy 
        efficiency measure'', with respect to property served by an 
        eligible entity, means a fixed structural improvement and 
        investment in a cost-effective, commercial off-the-shelf 
        technology to reduce residential energy use that is either--
                    (A) included in the master list published under 
                section 1(c)(1) and (2); or
                    (B) stipulated in a whole-house simulation 
                conducted pursuant to section 1(c)(3).
            (3) Farm efficiency measure.--The term ``farm efficiency 
        measure'' means an energy saving application that is a fixed 
        improvement installed in or attached to a building or structure 
        on a farm at a total loan value for that farm of $50,000 or 
        less, that is not otherwise an energy efficiency measure, and 
        that would achieve energy savings sufficient to repay the cost 
        of the measure in 10 years or fewer.
            (4) Qualified consumer.--The term ``qualified consumer'' 
        means a consumer served by an eligible entity that has the 
        ability to repay a loan made under subsection (d), as 
        determined by an eligible entity, and who has not accepted any 
        loan as an eligible participant pursuant to section 1.
            (5) Qualified entity.--The term ``qualified entity'' means 
        any organization that the Secretary of Agriculture determines 
        has significant experience in providing eligible entities 
        with--
                    (A) advice on energy, environmental, energy 
                efficiency, and information research and technology;
                    (B) training, education, and consulting;
                    (C) guidance in energy and operational issues and 
                rural community and economic development; and
                    (D) other relevant assistance, as determined by the 
                Secretary of Agriculture.
            (6) Rural area.--The term ``rural area'' means any area 
        other than--
                    (A) a city or town that has a population of greater 
                than 50,000 inhabitants; and
                    (B) any urbanized area contiguous and adjacent to a 
                city or town described in subparagraph (A).
    (b) Establishment.--The Secretary of Agriculture, acting through 
the Rural Utility Service, shall establish the Rural Star Energy 
Savings Program for the purpose of making loans to eligible entities 
that agree to accept the loan funds authorized pursuant to this section 
to make loans to qualified consumers for the purpose of implementing 
residential energy efficiency measures or farm efficiency measures 
approved by the Secretary of Agriculture.
    (c) Loans to Eligible Entities.--
            (1) Loans authorized.--Subject to paragraph (2), the 
        Secretary of Agriculture shall make loans to an eligible entity 
        that agrees that the loan funds will be used to make loans to 
        qualified consumers as described in subsection (d) for the 
        purpose of implementing one or more energy efficiency measures, 
        or a farm efficiency measure in response to an application by 
        an eligible entity.
            (2) List, plan, and measurement and verification 
        required.--
                    (A) In general.--As a condition to receiving a loan 
                under paragraph (1), an eligible entity shall--
                            (i) establish a list of energy efficiency 
                        measures or farm efficiency measures expected 
                        to decrease energy use or costs of a qualified 
                        consumer from the master list published under 
                        section 1(c)(1) and (2);
                            (ii) establish a procedure to identify to 
                        the Secretary of Agriculture any specific farm 
                        efficiency measures for which the eligible 
                        entity seeks authority to make a loan;
                            (iii) prepare an implementation plan for 
                        use of the loan funds to ensure that a loan to 
                        a qualified consumer is for energy efficiency 
                        investments that will achieve savings 
                        sufficient to service the loan during the term 
                        of the loan; and
                            (iv) provide for appropriate measurement 
                        and verification as prescribed by the Secretary 
                        of Agriculture to ensure the actual use and 
                        effectiveness of the energy efficiency loans 
                        made by the eligible entity.
                    (B) Revision of list of energy efficiency 
                measures.--An eligible entity may update the list 
                required under subparagraph (A)(I) to account for 
                efficiency technologies added to the master list 
                published under section 1(c)(1) pursuant to section 
                1(c)(2), or farm efficiency measures approved by the 
                Secretary of Agriculture.
                    (C) Existing energy efficiency programs.--An 
                eligible entity that, on or before the date of the 
                enactment of this Act, has already established an 
                energy efficiency program for qualified consumers may 
                submit an existing list of energy efficiency measures 
                or farm efficiency measures, implementation plans, or 
                measurement and verification systems to satisfy the 
                requirements of subparagraph (A) to the Secretary of 
                Agriculture and may use such list until and unless such 
                list is inconsistent with the measures published 
                pursuant to section 1(c)(1) and (2).
            (3) Loan terms for loans to eligible entities.--
                    (A) No interest.--A loan made to an eligible entity 
                under paragraph (1) shall bear no interest.
                    (B) Repayment.--With respect to a loan under 
                paragraph (1)--
                            (i) the term shall not exceed 20 years from 
                        the date the loan is closed; and
                            (ii) except as provided in subparagraph 
                        (D), the repayment of each advance shall be 
                        amortized for a period not to exceed 10 years.
                    (C) Amount of advances.--Any advance of loan funds 
                to an eligible entity in any single year shall not 
                exceed 30 percent of the approved loan amount.
                    (D) Special advance for start-up activities.--
                            (i) In general.--In order to assist an 
                        eligible entity in defraying initial start-up 
                        costs, the Secretary of Agriculture shall allow 
                        an eligible entity to request a special 
                        advance.
                            (ii) Amount of special advance.--No 
                        eligible entity may receive a special advance 
                        under this subparagraph for an amount that is 
                        greater than 4 percent of the loan amount 
                        received by the eligible entity under paragraph 
                        (1).
                            (iii) Repayment.--The repayment of the 
                        special advance shall be required within 10 
                        years after the special advance is made and, at 
                        the election of the eligible entity, may be 
                        deferred to the end of the 10-year period.
                    (E) Limitation on advances.--All advances shall be 
                made under a loan described in paragraph (1) within the 
                first 10 years of the term of the loan.
    (d) Loans to Qualified Consumers.--
            (1) Terms of loans.--Loans made by an eligible entity to 
        qualified consumers using loan funds provided by the Secretary 
        of Agriculture under subsection (c)--
                    (A) may bear interest, not to exceed three percent, 
                to be used by the eligible entity for purposes such as 
                establishing a loan loss reserve and to offset 
                personnel and program costs of the eligible entity to 
                provide the loans;
                    (B) shall finance only energy efficiency measures 
                or farm efficiency measures for the purpose of 
                decreasing energy usage or costs of a qualified 
                consumer by an amount such that a loan term of not more 
                than 10 years will achieve a simple payback of the 
                amount invested;
                    (C) shall not be used to fund--
                            (i) the purchase of a manufactured home; or
                            (ii) the purchase of any other personal 
                        property unless the personal property is or 
                        becomes attached to real property as a fixture;
                    (D) shall not be used to fund modifications to 
                personal property unless the personal property--
                            (i) is or becomes attached to real property 
                        as a fixture; or
                            (ii) is a manufactured home;
                    (E) shall be repaid through charges added to the 
                electric bill for the property for, or at which energy 
                efficiency measures are or will be implemented, except 
                that this requirement shall not be construed to 
                prohibit--
                            (i) the voluntary prepayment of a loan by 
                        the owner of the property; or
                            (ii) the use of any additional repayment 
                        mechanisms that are--
                                    (I) demonstrated to have 
                                appropriate risk mitigation features, 
                                as determined by the eligible entity; 
                                or
                                    (II) required if the qualified 
                                consumer is no longer a customer of the 
                                eligible entity; and
                    (F) shall require an energy audit to determine the 
                impact of proposed energy efficiency measures on the 
                energy costs and consumption of the qualified consumer.
            (2) Contractors.--In addition to any other qualified 
        general contractor, eligible entities may serve as general 
        contractors.
            (3) Use of other energy efficiency incentives.--Energy 
        efficiency incentives made available under any other Act, 
        including rebates, grants, or any other payments, may be used 
        to reduce the amount of a loan made under this subsection to 
        qualified consumers in order to meet the requirement of 
        paragraph (1)(B).
    (e) Measurement, Verification, Training, and Technical 
Assistance.--
            (1) Duties of the secretary.--The Secretary of 
        Agriculture--
                    (A) shall establish an implementation and 
                measurement and verification advisory committee 
                consisting of representatives of eligible entities and 
                qualified entities;
                    (B) may enter into cooperative agreements with 
                qualified entities to provide technical assistance and 
                training to the employees of eligible entities to carry 
                out this section; and
                    (C) shall establish a process to compile and 
                maintain a directory of energy efficiency auditors that 
                are used by eligible entities to carry out this 
                section.
            (2) Exception.--
                    (A) The Secretary of Agriculture shall not utilize 
                the authority provided under this subsection or 
                subsection (i) to--
                            (i) develop, adopt, or implement a public 
                        labeling system that rates and compares the 
                        energy performance among qualified consumers; 
                        or
                            (ii) require the public disclosure of an 
                        energy performance evaluation or rating 
                        developed for any qualified consumer.
                    (B) Nothing in this paragraph shall preclude--
                            (i) the computation, collection, or use, by 
                        the Secretary of Agriculture, eligible entity, 
                        or qualified entity for the purposes of 
                        aggregating information on the rating and 
                        comparison of the energy performance among 
                        qualified consumers with and without energy 
                        efficiency features or on energy performance 
                        evaluation or rating;
                            (ii) the use and publication of aggregate 
                        data (without identifying individual qualified 
                        consumers) based on information referred to in 
                        clause (i) to determine or demonstrate the 
                        performance of this program; or
                            (iii) the provision of information referred 
                        to in clause (i) with respect to a qualified 
                        consumer--
                                    (I) to the State, eligible 
                                consumer, eligible entity, or qualified 
                                entity, as necessary to enable carrying 
                                out this title; or
                                    (II) for purposes of prosecuting 
                                fraud and abuse.
    (f) Fast Start Demonstration Projects.--The Secretary of 
Agriculture shall, not later than 90 days after the enactment of this 
section, enter into agreements with eligible entities (or groups of 
eligible entities) that have established an energy efficiency program 
described in subsection (c)(2)(C) to establish an energy efficiency 
loan demonstration projects consistent with the purposes of this 
section that--
            (1) implement approaches to energy audits and investments 
        in energy efficiency measures or farm efficiency measures that 
        yield measurable and predictable savings;
            (2) use measurement and verification processes to determine 
        the effectiveness of energy efficiency loans made by eligible 
        entities;
            (3) include training for employees of eligible entities, 
        including any contractors of such entities, to implement or 
        oversee the activities described in paragraphs (1) and (2);
            (4) provide for the participation of a majority of eligible 
        entities in a State;
            (5) reduce the need for generating capacity;
            (6) provide efficiency loans to--
                    (A) not fewer than 20,000 consumers, in the case of 
                a single eligible entity; or
                    (B) not fewer than 80,000 consumers, in the case of 
                a group of eligible entities; and
            (7) serve areas where 15 percent or more of consumers 
        reside--
                    (A) in manufactured homes; or
                    (B) in housing units that are more than 50 years 
                old.
    (g) Additional Authority.--The authority provided in this section 
is in addition to any authority of the Secretary of Agriculture to 
offer loans under any other law.
    (h) Effective Period.--Except as otherwise provided in this 
section, the loans and other expenditures required to be made under 
this section are authorized to be made during each of fiscal years 2010 
through 2014.
    (i) Regulations.--
            (1) In general.--Except as otherwise provided in this 
        subsection, not later than 180 days after the date of enactment 
        of this section, the Secretary of Agriculture shall promulgate 
        such regulations as are necessary to implement this section.
            (2) Procedure.--The promulgation of the regulations and 
        administration of this section shall be made without regard 
        to--
                    (A) chapter 35 of title 44, United States Code 
                (commonly known as the ``Paperwork Reduction Act''); 
                and
                    (B) the Statement of Policy of the Secretary of 
                Agriculture effective July 24, 1971 (36 Fed. Reg. 
                13804), relating to notices of proposed rulemaking and 
                public participation in rulemaking.
            (3) Congressional review of agency rulemaking.--In carrying 
        out this section, the Secretary of Agriculture shall use the 
        authority provided under section 808 of title 5, United States 
        Code.
            (4) Interim regulations.--Notwithstanding paragraphs (1) 
        and (2), to the extent regulations are necessary to carry out 
        any provision of this section, the Secretary of Agriculture 
        shall implement such regulations through the promulgation of an 
        interim rule.
    (j) Audit of Program.--The Secretary of Agriculture shall conduct 
an audit of the program authorized by this section to ensure that the 
funds provided to eligible entities under this section are used in 
accordance with the purpose of this section.
    (k) Reporting Requirements.--The Secretary of Agriculture shall 
report to the Congress on the implementation of this Act, including the 
energy savings and costs savings estimated to be achieved, not later 
than 1 year after the date of enactment of this Act, and again not 
later than 2 years after the date of enactment of this Act.
    (l) Assessment by Government Accountability Office.--The 
Comptroller General shall, by not later than 18 months after the date 
of enactment of this Act, prepare and submit to the Congress an 
analysis and report determining--
            (1) the actual taxpayer funds made available for the 
        program created in this section;
            (2) the actual amounts of such funds made available to 
        eligible entities for qualified consumers in the program 
        created in this section;
            (3) the extent of measured and verified energy savings 
        achieved and expected to be achieved on an ongoing basis as a 
        function of the program created in this section;
            (4) the extent to which funds made available were expended 
        for training, administration, and program support by eligible 
        entities and qualified entities under the program created in 
        this section; and
            (5) the consistency and rigor of the standards for energy 
        efficiency and for measurement and verification adopted and 
        implemented by program created in this section.
    (m) Authorization.--There are authorized to be appropriated for 
purposes of this section, provided that enactment of this Act would not 
increase direct spending, $150,000,000 for each of fiscal years 2010 
through 2014, which shall remain available until expended.
    (n) The Secretary of Agriculture shall provide assistance and 
technical advice to the qualified entities providing loans under this 
bill in conducting outreach for the purposes of increasing 
participation of economically distressed rural communities with 
unemployment rates above the national average, or rural areas that lack 
basic living necessities, such as water and sewer systems, electricity, 
and safe, sanitary housing, in the program established under this 
section.

SEC. 3. PRIORITY FOR ACTIVE DUTY MEMBERS OF THE ARMED FORCES AND 
              VETERANS.

    In providing loans to eligible participants under section 1 or 
qualified consumers under section 2, the lender shall give priority to 
members of the Armed Forces serving on active duty and to veterans (as 
defined in section 101 of title 38, United States Code).

SEC. 4. PROHIBITION.

    Neither the Secretary of Energy nor the Secretary of Agriculture 
shall provide any funds authorized by this Act to any contractor that 
employs an employee to work in a consumer's home if that employee has 
been convicted of, or plead guilty to, a crime of child molestation, 
rape, or any other form of sexual assault.

SEC. 5. FEDERAL EMPLOYEES.

    (a) A loan shall not be provided to a Federal employee under this 
Act if any of the following apply to the employee:
            (1) The employee has a seriously delinquent tax debt (as 
        determined under subsection (b)).
            (2) The employee received a payment under the Low-Income 
        Home Energy Assistance Act of 1981 (42 U.S.C. 8621 et seq.) but 
        was ineligible to receive the payment under the criteria 
        described in section 2605(b)(2) of such Act (42 U.S.C. 
        8624(b)(2)).
            (3) The employee has been officially disciplined for 
        violations of subpart G of the Standards of Ethical Conduct for 
        Employees of the Executive Branch for viewing, downloading, or 
        exchanging pornography, including child pornography, on a 
        Federal Government computer or while performing official 
        Federal Government duties.
    (b) For purposes of subsection (a)(1), a ``seriously delinquent tax 
debt'' means an outstanding debt under the Internal Revenue Code of 
1986 for which a notice of lien has been filed in public records 
pursuant to section 6323 of such Code, except that such term does not 
include--
            (1) a debt that is being paid in a timely manner pursuant 
        to an agreement under section 6159 or section 7122 of such 
        Code; or
            (2) a debt with respect to which a collection due process 
        hearing under section 6330 of such Code is requested, pending, 
        or completed and no payment is required.

SEC. 6. WRONGFUL USE OR DIVERSION OF PROGRAM FUNDS.

    The Secretary of Energy and the Secretary of Agriculture shall take 
such steps as are necessary and appropriate, including requirements for 
the immediate repayment of Federal assistance, to ensure that none of 
the funds authorized in this Act are used--
            (1) in violation of law;
            (2) in a manner that creates a significant threat to human 
        health or safety;
            (3) in a manner that undercuts the integrity and 
        accountability of the program under this Act; or
            (4) for purposes other than those serving the objectives of 
        this Act.

SEC. 7. PROHIBITION.

    (a) Funds authorized by this Act shall only be made available for 
the purpose of carrying out qualifying energy savings measures on a 
primary residence.
    (b) Neither the Secretary of Energy nor the Secretary of 
Agriculture shall provide any funds authorized by this Act to any 
contractor that has been convicted of or pleaded guilty to any 
fraudulent offense.

SEC. 8. SUNSET.

    The provisions of this Act shall be suspended and shall not apply 
if this Act will have a negative net effect on the national budget 
deficit of the United States.

            Passed the House of Representatives September 16, 2010.

            Attest:

                                            LORRAINE C. MILLER,

                                                                 Clerk.
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