111TH CONGRESS 

2D SESSION H. R. 4785 

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. 
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1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. HOME STAR ENERGY EFFICIENCY LOAN PRO4 GRAM. 

5 (a) DEFINITIONS.—In this section: 

6 (1) ELIGIBLE PARTICIPANT.—The term ‘‘eligi7 ble participant’’ means a homeowner with a gross 

8 annual household income of less than $250,000 who 

9 receives financial assistance from a qualified financ10 ing entity to carry out qualifying energy savings 

11 measures pursuant to this section, and who is not 

12 also a qualified consumer under section 2. A home13 owner may not qualify as an eligible participant if 

14 the homeowner has been more than 6 months delin15 quent in child support payments. 

16 (2) QUALIFIED FINANCING ENTITY.—The term 

17 ‘‘qualified financing entity’’ means a State, political 

18 subdivision of a State, tribal government, electric 

19 utility, natural gas utility, nonprofit organization, 

20 energy service company, retailer, or any other entity 

21 that— 

22 (A) meets the eligibility requirements of 

23 this section; 

24 (B) is not an entity that has an ongoing 

25 capital repayment obligation to the Department 
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1 of the Treasury pursuant to the Troubled Asset 

2 Relief Program (Public Law 110–343, 122

3 Stat. 3765); and 

4 (C) is designated by the Governor of a 

5 State in accordance with subsection (f)(1), 

6 except that an entity that is an eligible entity under 

7 section 2 shall not be a qualified financing entity. 

8 (3) QUALIFIED LOAN PROGRAM MECHANISM.— 

9 The term ‘‘qualified loan program mechanism’’ 

10 means a mechanism for the establishment and oper11 ation of a loan program that is— 

12 (A) administered by a qualified financing 

13 entity; and 

14 (B) funded in significant part— 

15 (i) by funds provided by or overseen 

16 by a State; or 

17 (ii) through the energy loan program 

18 of the Federal National Mortgage Associa19 tion. 

20 (4) QUALIFYING ENERGY SAVINGS MEASURE.— 

21 The term ‘‘qualifying energy savings measure’’ 

22 means a measure listed under subsection (c)(1) or 

23 (2) or stipulated in a whole-house analysis under 

24 subsection (c)(3). 
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1 (b) ESTABLISHMENT.—The Secretary of Energy 

2 shall establish a Home Star Energy Efficiency Loan Pro3 gram under which the Secretary of Energy shall offer 

4 loans at zero percent interest to States to support finan5 cial assistance provided by qualified financing entities for 

6 the installation of qualifying energy savings measures. 

7 (c) ENERGY EFFICIENCY MEASURES AND STAND8 ARDS.—The Secretary of Energy, in consultation with the 

9 Secretary of Agriculture, shall publish— 

10 (1) not later than 90 days after the date of en11 actment of this Act, a master list of residential en12 ergy efficiency measures determined to be cost-effec13 tive, readily available from commercial sources, to be 

14 permanently installed in a primary residence, and 

15 capable of supporting measurement and verification 

16 of the energy savings that results from their adop17 tion, but which shall not include the installation or 

18 replacement of pool heaters or the installation of 

19 Energy Star televisions; 

20 (2) additions to such a list, approved by the 

21 Secretary of Energy, of other residential energy effi22 ciency measures that are— 

23 (A) recommended by the Secretary of Agri24 culture; 
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1 (B) calculated to achieve sufficient energy 

2 savings that they will achieve a simple payback 

3 within 10 years or less; and 

4 (C) permanently installed in a primary res5 idence; 

6 (3) specifications for whole-house energy per7 formance analyses simulating energy use before and 

8 after a retrofit utilizing measures from the master 

9 list published pursuant to paragraphs (1) and (2) 

10 and such other permanent structural measures as 

11 can be demonstrated, when installed and operated as 

12 intended, to improve residential energy efficiency in 

13 a manner that can be determined with confidence to 

14 be cost-effective and to recover their own cost in en15 ergy cost savings within the term of a proposed loan; 

16 and 

17 (4) a protocol for measurement and verification 

18 of the energy savings that have resulted from any 

19 and all energy efficiency measures taken with re20 spect to a residence and financed in whole or in part 

21 pursuant to this title. In determining which residen22 tial energy efficiency measures to include in the list 

23 published under paragraph (1) or (2), the Secretary 

24 of Energy, in consultation with the Secretary of Ag25 riculture, shall consider advanced performance initia-
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1 tives, such as the Passive House Standard as cer2 tified by the Passive House Institute US. 

3 (d) ELIGIBILITY OF QUALIFIED FINANCING ENTI4 TIES.—To be eligible to participate in the Home Star 

5 Loan Program, a qualified financing entity shall— 

6 (1) offer a financing product under which eligi7 ble participants may pay over time for the cost to 

8 the eligible participant (after all applicable Federal, 

9 State, local, and other rebates or incentives are ap10 plied) of installations described in subsection (b); 

11 (2) require all financed installations to be per12 formed by contractors in a manner that meets build13 ing code requirements and other appropriate min14 imum standards; 

15 (3) establish standard underwriting criteria to 

16 determine the eligibility of Home Star Loan Pro17 gram applicants, which criteria shall be consistent 

18 with— 

19 (A) with respect to unsecured consumer 

20 loan programs, standard underwriting criteria 

21 used under the energy loan program of the 

22 Federal National Mortgage Association; or 

23 (B) with respect to secured loans or other 

24 forms of financial assistance, commercially rec25 ognized best practices applicable to the form of 
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1 financial assistance being provided (as deter2 mined by the designated entity administering 

3 the Home Star Loan Program in the State); 

4 and 

5 (4) undertake particular efforts, consistent with 

6 paragraph (3), to make such loans available in pub7 lic use microdata areas that have a poverty rate of 

8 12 percent or more in a proportion of total loans 

9 made at least equal to the proportion the number of 

10 residents in such areas bears to the total population 

11 of the area served by that qualified financing entity. 

12 (e) ALLOCATION.—In allocating 75 percent of the 

13 loan funds made available to States for each fiscal year 

14 under this section, the Secretary of Energy shall use the 

15 formula used to allocate funds to States to carry out State 

16 energy conservation plans established under part D of title 

17 III of the Energy Policy and Conservation Act (42 U.S.C. 

18 6321 et seq.), with appropriate modifications to reflect the 

19 funds to be provided in States for loans under section 2. 

20 In allocating the remaining 25 percent of the loan funds 

21 made available to States for each fiscal year under this 

22 section, the Secretary of Energy may vary the result of 

23 the formula to recognize and reward those States that 

24 make the best progress in providing loans to low-income 

25 areas pursuant to subsection (d)(4). 
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1 (f) QUALIFIED FINANCING ENTITIES.—Before mak2 ing funds available to a State under this section, the Sec3 retary of Energy shall require the Governor of the State 

4 to provide to the Secretary of Energy a letter of agreement 

5 that the State— 

6 (1) will use the funds provided pursuant to this 

7 section solely as provided in this section; 

8 (2) will use the funds provided under this sec9 tion to supplement and not supplant any prior or 

10 planned Federal and State funding provided to carry 

11 out energy efficiency programs, on the condition 

12 that, to the extent the Secretary finds that a State 

13 has supplanted other such programs with funding 

14 under this section, the Secretary may with hold an 

15 equivalent amount of funding from allocations for 

16 the State under this section; 

17 (3) has 1 or more qualified financing entities 

18 that meet the requirements of this section; 

19 (4) has established, or has required its des20 ignated qualified financing entities to establish, a 

21 qualified loan program mechanism that— 

22 (A) will use a quality assurance program 

23 or another appropriate methodology to ensure 

24 energy savings; 
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1 (B) incorporates an effective repayment 

2 mechanism, which may include— 

3 (i) on-utility-bill repayment; 

4 (ii) tax assessment or other form of 

5 property assessment financing; 

6 (iii) municipal service charges; 

7 (iv) energy or energy efficiency serv8 ices contracts; 

9 (v) energy efficiency power purchase 

10 agreements; 

11 (vi) unsecured loans applying the un12 derwriting requirements of the energy loan 

13 program of the Federal National Mortgage 

14 Association; or 

15 (vii) alternative contractual repayment 

16 mechanisms that have been demonstrated 

17 to have appropriate risk mitigation fea18 tures; 

19 (5) will provide, in a timely manner, all infor20 mation regarding the administration of the Home 

21 Star Loan Program as the Secretary of Energy may 

22 require to permit the Secretary of Energy to meet 

23 program evaluation requirements; and 

24 (6) will commit to the full repayment of the 

25 loaned funds to the Secretary of Energy by a date 
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1 not later than 20 years from the date of the loan 

2 closing. 

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

4 for carrying out the Home Star Loan Program may be 

5 used to support financing mechanisms offered by qualified 

6 financing entities to eligible participants, including— 

7 (1) interest rate reductions to interest rates as 

8 low as zero percent; 

9 (2) loan loss reserves or other forms of credit 

10 enhancement; 

11 (3) revolving loan funds from which qualified fi12 nancing entities may offer direct loans; or 

13 (4) other debt instruments necessary— 

14 (A) to use available funds to obtain appro15 priate leverage through private investment; and 

16 (B) to support widespread deployment of 

17 energy efficiency programs. 

18 (h) ADMINISTRATIVE COSTS.—A State may permit a 

19 qualified financing entity to charge interest of 3 percent 

20 to cover the costs of loan administration and personnel 

21 and program management, or for establishing a loan loss 

22 reserve. 

23 (i) REPORTING REQUIREMENTS.—The Secretary of 

24 Energy shall report to the Congress on the implementation 

25 of this title, including the energy savings and cost savings 
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1 estimated to be achieved, not later than 1 year after the 

2 date of enactment of this Act, and again by not later than 

3 2 years after the date of enactment of this section. The 

4 Secretary of Energy shall also include a detailed account5 ing of any waste, fraud, or abuse occurring in the adminis6 tration of this Act in such reports. 

7 (j) ASSESSMENT BY GOVERNMENT ACCOUNTABILITY

8 OFFICE.—The Comptroller General shall, by not later 

9 than 18 months after the date of enactment of this Act, 

10 prepare and submit to the Congress an analysis and report 

11 determining— 

12 (1) the actual taxpayer funds made available 

13 for the program created in this section; 

14 (2) the actual amounts of such funds made 

15 available to eligible participants or qualified con16 sumers in the program created in this section; 

17 (3) the extent of measured and verified residen18 tial energy savings achieved and expected to be 

19 achieved on an ongoing basis as a function of this 

20 program; 

21 (4) the extent to which funds made available 

22 were expended for training, administration, program 

23 support by contractors, or trade association activities 

24 under this program; 
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1 (5) the consistency and rigor of the standards 

2 for energy efficiency and for measurement and 

3 verification adopted and implemented by this pro4 gram; and 

5 (6) the extent to which any waste, fraud, or 

6 abuse occurred under this program. 

7 (k) AUTHORIZATION.—There are authorized to be ap8 propriated for purposes of this section, provided that en9 actment of this Act would not increase direct spending, 

10 $850,000,000 for each of fiscal years 2010 through 2014, 

11 which shall remain available until expended. 

12 SEC. 2. RURAL ENERGY SAVINGS PROGRAM. 

13 (a) DEFINITIONS.—In this section: 

14 (1) ELIGIBLE ENTITY.—The term ‘‘eligible enti15 ty’’ means— 

16 (A) any public or cooperative electric util17 ity that is eligible to borrow from the Rural 

18 Utilities Service electrification program author19 ized under the Rural Electrification Act of 

20 1936 (7 U.S.C. 901 et seq.) that serves a rural 

21 area; 

22 (B) any current borrower of the Rural 

23 Utilities Service electrification program author24 ized under that Act; or 
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1 (C) any entity primarily owned or con2 trolled by an entity described in subparagraph 

3 (A) or (B). 

4 (2) ENERGY EFFICIENCY MEASURE.—The term 

5 ‘‘energy efficiency measure’’, with respect to prop6 erty served by an eligible entity, means a fixed struc7 tural improvement and investment in a cost-effec8 tive, commercial off-the-shelf technology to reduce 

9 residential energy use that is either— 

10 (A) included in the master list published 

11 under section 1(c)(1) and (2); or 

12 (B) stipulated in a whole-house simulation 

13 conducted pursuant to section 1(c)(3). 

14 (3) FARM EFFICIENCY MEASURE.—The term 

15 ‘‘farm efficiency measure’’ means an energy saving 

16 application that is a fixed improvement installed in 

17 or attached to a building or structure on a farm at 

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

19 that is not otherwise an energy efficiency measure, 

20 and that would achieve energy savings sufficient to 

21 repay the cost of the measure in 10 years or fewer. 

22 (4) QUALIFIED CONSUMER.—The term ‘‘quali23 fied consumer’’ means a consumer served by an eli24 gible entity that has the ability to repay a loan made 

25 under subsection (d), as determined by an eligible 
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1 entity, and who has not accepted any loan as an eli2 gible participant pursuant to section 1. 

3 (5) QUALIFIED ENTITY.—The term ‘‘qualified 

4 entity’’ means any organization that the Secretary of 

5 Agriculture determines has significant experience in 

6 providing eligible entities with— 

7 (A) advice on energy, environmental, en8 ergy efficiency, and information research and 

9 technology; 

10 (B) training, education, and consulting; 

11 (C) guidance in energy and operational 

12 issues and rural community and economic de13 velopment; and 

14 (D) other relevant assistance, as deter15 mined by the Secretary of Agriculture. 

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

17 means any area other than— 

18 (A) a city or town that has a population of 

19 greater than 50,000 inhabitants; and 

20 (B) any urbanized area contiguous and ad21 jacent to a city or town described in subpara22 graph (A). 

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

24 acting through the Rural Utility Service, shall establish 

25 the Rural Star Energy Savings Program for the purpose 
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1 of making loans to eligible entities that agree to accept 

2 the loan funds authorized pursuant to this section to make 

3 loans to qualified consumers for the purpose of imple4 menting residential energy efficiency measures or farm ef5 ficiency measures approved by the Secretary of Agri6 culture. 

7 (c) LOANS TO ELIGIBLE ENTITIES.— 

8 (1) LOANS AUTHORIZED.—Subject to para9 graph (2), the Secretary of Agriculture shall make 

10 loans to an eligible entity that agrees that the loan 

11 funds will be used to make loans to qualified con12 sumers as described in subsection (d) for the pur13 pose of implementing one or more energy efficiency 

14 measures, or a farm efficiency measure in response 

15 to an application by an eligible entity. 

16 (2) LIST, PLAN, AND MEASUREMENT AND

17 VERIFICATION REQUIRED.— 

18 (A) IN GENERAL.—As a condition to re19 ceiving a loan under paragraph (1), an eligible 

20 entity shall— 

21 (i) establish a list of energy efficiency 

22 measures or farm efficiency measures ex23 pected to decrease energy use or costs of a 

24 qualified consumer from the master list 

25 published under section 1(c)(1) and (2); 
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1 (ii) establish a procedure to identify to 

2 the Secretary of Agriculture any specific 

3 farm efficiency measures for which the eli4 gible entity seeks authority to make a loan; 

5 (iii) prepare an implementation plan 

6 for use of the loan funds to ensure that a 

7 loan to a qualified consumer is for energy 

8 efficiency investments that will achieve sav9 ings sufficient to service the loan during 

10 the term of the loan; and 

11 (iv) provide for appropriate measure12 ment and verification as prescribed by the 

13 Secretary of Agriculture to ensure the ac14 tual use and effectiveness of the energy ef15 ficiency loans made by the eligible entity. 

16 (B) REVISION OF LIST OF ENERGY EFFI17 CIENCY MEASURES.—An eligible entity may up18 date the list required under subparagraph 

19 (A)(I) to account for efficiency technologies 

20 added to the master list published under section 

21 1(c)(1) pursuant to section 1(c)(2), or farm ef22 ficiency measures approved by the Secretary of 

23 Agriculture. 

24 (C) EXISTING ENERGY EFFICIENCY PRO25 GRAMS.—An eligible entity that, on or before 
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1 the date of the enactment of this Act, has al2 ready established an energy efficiency program 

3 for qualified consumers may submit an existing 

4 list of energy efficiency measures or farm effi5 ciency measures, implementation plans, or 

6 measurement and verification systems to satisfy 

7 the requirements of subparagraph (A) to the 

8 Secretary of Agriculture and may use such list 

9 until and unless such list is inconsistent with 

10 the measures published pursuant to section 

11 1(c)(1) and (2). 

12 (3) LOAN TERMS FOR LOANS TO ELIGIBLE EN13 TITIES.— 

14 (A) NO INTEREST.—A loan made to an eli15 gible entity under paragraph (1) shall bear no 

16 interest. 

17 (B) REPAYMENT.—With respect to a loan 

18 under paragraph (1)— 

19 (i) the term shall not exceed 20 years 

20 from the date the loan is closed; and 

21 (ii) except as provided in subpara22 graph (D), the repayment of each advance 

23 shall be amortized for a period not to ex24 ceed 10 years. 
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1 (C) AMOUNT OF ADVANCES.—Any advance 

2 of loan funds to an eligible entity in any single 

3 year shall not exceed 30 percent of the ap4 proved loan amount. 

5 (D) SPECIAL ADVANCE FOR START-UP AC6 TIVITIES.— 

7 (i) IN GENERAL.—In order to assist 

8 an eligible entity in defraying initial start9 up costs, the Secretary of Agriculture shall 

10 allow an eligible entity to request a special 

11 advance. 

12 (ii) AMOUNT OF SPECIAL ADVANCE.— 

13 No eligible entity may receive a special ad14 vance under this subparagraph for an 

15 amount that is greater than 4 percent of 

16 the loan amount received by the eligible en17 tity under paragraph (1). 

18 (iii) REPAYMENT.—The repayment of 

19 the special advance shall be required with20 in 10 years after the special advance is 

21 made and, at the election of the eligible en22 tity, may be deferred to the end of the 10- 

23 year period. 

24 (E) LIMITATION ON ADVANCES.—All ad25 vances shall be made under a loan described in 
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1 paragraph (1) within the first 10 years of the 

2 term of the loan. 

3 (d) LOANS TO QUALIFIED CONSUMERS.— 

4 (1) TERMS OF LOANS.—Loans made by an eli5 gible entity to qualified consumers using loan funds 

6 provided by the Secretary of Agriculture under sub7 section (c)— 

8 (A) may bear interest, not to exceed three 

9 percent, to be used by the eligible entity for 

10 purposes such as establishing a loan loss re11 serve and to offset personnel and program costs 

12 of the eligible entity to provide the loans; 

13 (B) shall finance only energy efficiency 

14 measures or farm efficiency measures for the 

15 purpose of decreasing energy usage or costs of 

16 a qualified consumer by an amount such that a 

17 loan term of not more than 10 years will 

18 achieve a simple payback of the amount in19 vested; 

20 (C) shall not be used to fund— 

21 (i) the purchase of a manufactured 

22 home; or 

23 (ii) the purchase of any other personal 

24 property unless the personal property is or 
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1 becomes attached to real property as a fix2 ture; 

3 (D) shall not be used to fund modifications 

4 to personal property unless the personal prop5 erty— 

6 (i) is or becomes attached to real 

7 property as a fixture; or 

8 (ii) is a manufactured home; 

9 (E) shall be repaid through charges added 

10 to the electric bill for the property for, or at 

11 which energy efficiency measures are or will be 

12 implemented, except that this requirement shall 

13 not be construed to prohibit— 

14 (i) the voluntary prepayment of a loan 

15 by the owner of the property; or 

16 (ii) the use of any additional repay17 ment mechanisms that are— 

18 (I) demonstrated to have appro19 priate risk mitigation features, as de20 termined by the eligible entity; or 

21 (II) required if the qualified con22 sumer is no longer a customer of the 

23 eligible entity; and 

24 (F) shall require an energy audit to deter25 mine the impact of proposed energy efficiency 
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1 measures on the energy costs and consumption 

2 of the qualified consumer. 

3 (2) CONTRACTORS.—In addition to any other 

4 qualified general contractor, eligible entities may 

5 serve as general contractors. 

6 (3) USE OF OTHER ENERGY EFFICIENCY IN7 CENTIVES.—Energy efficiency incentives made avail8 able under any other Act, including rebates, grants, 

9 or any other payments, may be used to reduce the 

10 amount of a loan made under this subsection to 

11 qualified consumers in order to meet the require12 ment of paragraph (1)(B). 

13 (e) MEASUREMENT, VERIFICATION, TRAINING, AND

14 TECHNICAL ASSISTANCE.— 

15 (1) DUTIES OF THE SECRETARY.—The Sec16 retary of Agriculture— 

17 (A) shall establish an implementation and 

18 measurement and verification advisory com19 mittee consisting of representatives of eligible 

20 entities and qualified entities; 

21 (B) may enter into cooperative agreements 

22 with qualified entities to provide technical as23 sistance and training to the employees of eligi24 ble entities to carry out this section; and 
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1 (C) shall establish a process to compile and 

2 maintain a directory of energy efficiency audi3 tors that are used by eligible entities to carry 

4 out this section. 

5 (2) EXCEPTION.— 

6 (A) The Secretary of Agriculture shall not 

7 utilize the authority provided under this sub8 section or subsection (i) to— 

9 (i) develop, adopt, or implement a 

10 public labeling system that rates and com11 pares the energy performance among quali12 fied consumers; or 

13 (ii) require the public disclosure of an 

14 energy performance evaluation or rating 

15 developed for any qualified consumer. 

16 (B) Nothing in this paragraph shall pre17 clude— 

18 (i) the computation, collection, or use, 

19 by the Secretary of Agriculture, eligible en20 tity, or qualified entity for the purposes of 

21 aggregating information on the rating and 

22 comparison of the energy performance 

23 among qualified consumers with and with24 out energy efficiency features or on energy 

25 performance evaluation or rating; 
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1 (ii) the use and publication of aggre2 gate data (without identifying individual 

3 qualified consumers) based on information 

4 referred to in clause (i) to determine or 

5 demonstrate the performance of this pro6 gram; or 

7 (iii) the provision of information re8 ferred to in clause (i) with respect to a 

9 qualified consumer— 

10 (I) to the State, eligible con11 sumer, eligible entity, or qualified en12 tity, as necessary to enable carrying 

13 out this title; or 

14 (II) for purposes of prosecuting 

15 fraud and abuse. 

16 (f) FAST START DEMONSTRATION PROJECTS.—The 

17 Secretary of Agriculture shall, not later than 90 days after 

18 the enactment of this section, enter into agreements with 

19 eligible entities (or groups of eligible entities) that have 

20 established an energy efficiency program described in sub21 section (c)(2)(C) to establish an energy efficiency loan 

22 demonstration projects consistent with the purposes of 

23 this section that— 

24 (1) implement approaches to energy audits and 

25 investments in energy efficiency measures or farm 
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1 efficiency measures that yield measurable and pre2 dictable savings; 

3 (2) use measurement and verification processes 

4 to determine the effectiveness of energy efficiency 

5 loans made by eligible entities; 

6 (3) include training for employees of eligible en7 tities, including any contractors of such entities, to 

8 implement or oversee the activities described in 

9 paragraphs (1) and (2); 

10 (4) provide for the participation of a majority 

11 of eligible entities in a State; 

12 (5) reduce the need for generating capacity; 

13 (6) provide efficiency loans to— 

14 (A) not fewer than 20,000 consumers, in 

15 the case of a single eligible entity; or 

16 (B) not fewer than 80,000 consumers, in 

17 the case of a group of eligible entities; and 

18 (7) serve areas where 15 percent or more of 

19 consumers reside— 

20 (A) in manufactured homes; or 

21 (B) in housing units that are more than 50 

22 years old. 

23 (g) ADDITIONAL AUTHORITY.—The authority pro24 vided in this section is in addition to any authority of the 
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1 Secretary of Agriculture to offer loans under any other 

2 law. 

3 (h) EFFECTIVE PERIOD.—Except as otherwise pro4 vided in this section, the loans and other expenditures re5 quired to be made under this section are authorized to 

6 be made during each of fiscal years 2010 through 2014. 

7 (i) REGULATIONS.— 

8 (1) IN GENERAL.—Except as otherwise pro9 vided in this subsection, not later than 180 days 

10 after the date of enactment of this section, the Sec11 retary of Agriculture shall promulgate such regula12 tions as are necessary to implement this section. 

13 (2) PROCEDURE.—The promulgation of the reg14 ulations and administration of this section shall be 

15 made without regard to— 

16 (A) chapter 35 of title 44, United States 

17 Code (commonly known as the ‘‘Paperwork Re18 duction Act’’); and 

19 (B) the Statement of Policy of the Sec20 retary of Agriculture effective July 24, 1971 

21 (36 Fed. Reg. 13804), relating to notices of 

22 proposed rulemaking and public participation in 

23 rulemaking. 

24 (3) CONGRESSIONAL REVIEW OF AGENCY RULE25 MAKING.—In carrying out this section, the Secretary 
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1 of Agriculture shall use the authority provided under 

2 section 808 of title 5, United States Code. 

3 (4) INTERIM REGULATIONS.—Notwithstanding 

4 paragraphs (1) and (2), to the extent regulations are 

5 necessary to carry out any provision of this section, 

6 the Secretary of Agriculture shall implement such 

7 regulations through the promulgation of an interim 

8 rule. 

9 (j) AUDIT OF PROGRAM.—The Secretary of Agri10 culture shall conduct an audit of the program authorized 

11 by this section to ensure that the funds provided to eligible 

12 entities under this section are used in accordance with the 

13 purpose of this section. 

14 (k) REPORTING REQUIREMENTS.—The Secretary of 

15 Agriculture shall report to the Congress on the implemen16 tation of this Act, including the energy savings and costs 

17 savings estimated to be achieved, not later than 1 year 

18 after the date of enactment of this Act, and again not later 

19 than 2 years after the date of enactment of this Act. 

20 (l) ASSESSMENT BY GOVERNMENT ACCOUNTABILITY

21 OFFICE.—The Comptroller General shall, by not later 

22 than 18 months after the date of enactment of this Act, 

23 prepare and submit to the Congress an analysis and report 

24 determining— 
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1 (1) the actual taxpayer funds made available 

2 for the program created in this section; 

3 (2) the actual amounts of such funds made 

4 available to eligible entities for qualified consumers 

5 in the program created in this section; 

6 (3) the extent of measured and verified energy 

7 savings achieved and expected to be achieved on an 

8 ongoing basis as a function of the program created 

9 in this section; 

10 (4) the extent to which funds made available 

11 were expended for training, administration, and pro12 gram support by eligible entities and qualified enti13 ties under the program created in this section; and 

14 (5) the consistency and rigor of the standards 

15 for energy efficiency and for measurement and 

16 verification adopted and implemented by program 

17 created in this section. 

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

19 appropriated for purposes of this section, provided that 

20 enactment of this Act would not increase direct spending, 

21 $150,000,000 for each of fiscal years 2010 through 2014, 

22 which shall remain available until expended. 

23 (n) The Secretary of Agriculture shall provide assist24 ance and technical advice to the qualified entities pro25 viding loans under this bill in conducting outreach for the 
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1 purposes of increasing participation of economically dis2 tressed rural communities with unemployment rates above 

3 the national average, or rural areas that lack basic living 

4 necessities, such as water and sewer systems, electricity, 

5 and safe, sanitary housing, in the program established 

6 under this section. 

7 SEC. 3. PRIORITY FOR ACTIVE DUTY MEMBERS OF THE 

8 ARMED FORCES AND VETERANS. 

9 In providing loans to eligible participants under sec10 tion 1 or qualified consumers under section 2, the lender 

11 shall give priority to members of the Armed Forces serving 

12 on active duty and to veterans (as defined in section 101 

13 of title 38, United States Code). 

14 SEC. 4. PROHIBITION. 

15 Neither the Secretary of Energy nor the Secretary 

16 of Agriculture shall provide any funds authorized by this 

17 Act to any contractor that employs an employee to work 

18 in a consumer’s home if that employee has been convicted 

19 of, or plead guilty to, a crime of child molestation, rape, 

20 or any other form of sexual assault. 

21 SEC. 5. FEDERAL EMPLOYEES. 

22 (a) A loan shall not be provided to a Federal em23 ployee under this Act if any of the following apply to the 

24 employee: 
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1 (1) The employee has a seriously delinquent tax 

2 debt (as determined under subsection (b)). 

3 (2) The employee received a payment under the 

4 Low-Income Home Energy Assistance Act of 1981 

5 (42 U.S.C. 8621 et seq.) but was ineligible to receive 

6 the payment under the criteria described in section 

7 2605(b)(2) of such Act (42 U.S.C. 8624(b)(2)). 

8 (3) The employee has been officially disciplined 

9 for violations of subpart G of the Standards of Eth10 ical Conduct for Employees of the Executive Branch 

11 for viewing, downloading, or exchanging pornog12 raphy, including child pornography, on a Federal 

13 Government computer or while performing official 

14 Federal Government duties. 

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

16 delinquent tax debt’’ means an outstanding debt under the 

17 Internal Revenue Code of 1986 for which a notice of lien 

18 has been filed in public records pursuant to section 6323 

19 of such Code, except that such term does not include— 

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

21 pursuant to an agreement under section 6159 or 

22 section 7122 of such Code; or 

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

24 process hearing under section 6330 of such Code is 
30 

•HR 4785 EH

1 requested, pending, or completed and no payment is 

2 required. 

3 SEC. 6. WRONGFUL USE OR DIVERSION OF PROGRAM 

4 FUNDS. 

5 The Secretary of Energy and the Secretary of Agri6 culture shall take such steps as are necessary and appro7 priate, including requirements for the immediate repay8 ment of Federal assistance, to ensure that none of the 

9 funds authorized in this Act are used— 

10 (1) in violation of law; 

11 (2) in a manner that creates a significant 

12 threat to human health or safety; 

13 (3) in a manner that undercuts the integrity 

14 and accountability of the program under this Act; or 

15 (4) for purposes other than those serving the 

16 objectives of this Act. 

17 SEC. 7. PROHIBITION. 

18 (a) Funds authorized by this Act shall only be made 

19 available for the purpose of carrying out qualifying energy 

20 savings measures on a primary residence. 

21 (b) Neither the Secretary of Energy nor the Secretary 

22 of Agriculture shall provide any funds authorized by this 

23 Act to any contractor that has been convicted of or plead24 ed guilty to any fraudulent offense. 
31 

•HR 4785 EH

1 SEC. 8. SUNSET. 

2 The provisions of this Act shall be suspended and 

3 shall not apply if this Act will have a negative net effect 

4 on the national budget deficit of the United States. 

Passed the House of Representatives September 16, 

2010. 

Attest: 

Clerk. 
111TH CONGRESS 

2D SESSION H. R. 4785 

AN ACT 

To authorize the Secretary of Agriculture to make 

reduce energy use, and for other purposes. effective, commercial off-the-shelf technologies to structural improvements and investments in costplement energy efficiency measures involving will be used to make loans to consumers to imloans to certain entities that agree that the funds