II 

116TH CONGRESS 

1ST SESSION S. 2382 

To amend the Energy Policy and Conservation Act to establish a program 

to provide loans to implement cost-effective energy efficiency measures, 

and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JULY 31, 2019 

Mr. MERKLEY (for himself, Mr. SANDERS, Ms. SMITH, and Ms. HARRIS) introduced the following bill; which was read twice and referred to the Committee on Energy and Natural Resources 

A BILL 

To amend the Energy Policy and Conservation Act to establish a program to provide loans to implement cost-effective energy efficiency measures, and for other purposes. 

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. 

4 This Act may be cited as the ‘‘Community Energy 

5 Savings Program Act of 2019’’. 

6 SEC. 2. COMMUNITY ENERGY SAVINGS PROGRAM. 

7 (a) IN GENERAL.—The Energy Policy and Conserva8 tion Act is amended by inserting after section 362 (42 

9 U.S.C. 6322) the following: 


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1 ‘‘SEC. 362A. COMMUNITY ENERGY SAVINGS PROGRAM. 

2 ‘‘(a) PURPOSE.—The purpose of this section is to 

3 help households and small businesses achieve cost savings 

4 by providing loans to implement cost-effective energy effi5 ciency measures. 

6 ‘‘(b) DEFINITIONS.—In this section: 

7 ‘‘(1) COMMUNITY DEVELOPMENT FINANCIAL IN8 STITUTION.—The term ‘community development fi9 nancial institution’ means a financial institution cer10 tified by the Community Development Financial In11 stitutions Fund administered by the Secretary of the 

12 Treasury. 

13 ‘‘(2) ELIGIBLE ENTITY.—The term ‘eligible en14 tity’ means— 

15 ‘‘(A) a public power group; 

16 ‘‘(B) a community development financial 

17 institution; and 

18 ‘‘(C) an eligible unit of local government. 

19 ‘‘(3) ELIGIBLE UNIT OF LOCAL GOVERN20 MENT.—The term ‘eligible unit of local government’ 

21 means any agency or political subdivision of a State. 

22 ‘‘(4) ENERGY EFFICIENCY MEASURES.—The 

23 term ‘energy efficiency measures’ means, with re24 spect to a property served by or in the service area 

25 or jurisdiction, as applicable, of an eligible entity, 

26 structural improvements and investments in cost-efVerDate Sep 11 2014 23:41 Aug 08, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S2382.IS S2382

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1 fective commercial technologies to increase energy 

2 efficiency (including cost-effective on- or off-grid re3 newable energy, energy storage, or demand response 

4 systems). 

5 ‘‘(5) HOUSEHOLD WITH A HIGH ENERGY BUR6 DEN.— 

7 ‘‘(A) IN GENERAL.—The term ‘household 

8 with a high energy burden’ means a low-income 

9 household the residential energy burden of 

10 which exceeds the median energy burden for all 

11 low-income households in the State in which the 

12 low-income household is located. 

13 ‘‘(B) CALCULATION.—The residential en14 ergy burden referred to in subparagraph (A) is 

15 the quotient obtained by dividing residential en16 ergy expenditures by the annual income of the 

17 low-income household. 

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

19 has the meaning given the term in section 4 of the 

20 Indian Self-Determination and Education Assistance 

21 Act (25 U.S.C. 5304). 

22 ‘‘(7) MANUFACTURED HOME.—The term ‘man23 ufactured home’— 

24 ‘‘(A) has the meaning given the term in 

25 section 603 of the National Manufactured 


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1 Housing Construction and Safety Standards 

2 Act of 1974 (42 U.S.C. 5402); and 

3 ‘‘(B) includes a home described in sub4 paragraph (A) without regard to whether the 

5 home was built before, on, or after the date on 

6 which the construction and safety standards es7 tablished under section 604 of that Act (42 

8 U.S.C. 5403) became effective. 

9 ‘‘(8) PROGRAM.—The term ‘program’ means 

10 the program established under subsection (c). 

11 ‘‘(9) PUBLIC POWER GROUP.—The term ‘public 

12 power group’ means— 

13 ‘‘(A) a public utility; 

14 ‘‘(B) an electric or energy cooperative; 

15 ‘‘(C) a public power district; and 

16 ‘‘(D) a group of 1 or more public utilities 

17 or electric or energy cooperatives (commonly re18 ferred to as a ‘joint action agency’, ‘generation 

19 and transmission cooperative’, ‘municipal power 

20 association’, or ‘State cooperative association’). 

21 ‘‘(10) QUALIFIED CONSUMER.—The term 

22 ‘qualified consumer’ means a consumer served by or 

23 in the service area or jurisdiction, as applicable, of 

24 an eligible entity that has the ability to repay a loan 


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1 made under subsection (f), as determined by the eli2 gible entity. 

3 ‘‘(11) SECRETARY.—The term ‘Secretary’ 

4 means the Secretary of Energy. 

5 ‘‘(12) STATE.—The term ‘State’ means— 

6 ‘‘(A) a State; 

7 ‘‘(B) the District of Columbia; 

8 ‘‘(C) the Commonwealth of Puerto Rico; 

9 and 

10 ‘‘(D) any other territory or possession of 

11 the United States. 

12 ‘‘(c) ESTABLISHMENT.—Not later than 120 days 

13 after the date of enactment of this section, the Secretary 

14 shall establish a program under which the Secretary shall 

15 provide grants to States and Indian tribes to provide loans 

16 to eligible entities in accordance with this section. 

17 ‘‘(d) GRANT FUND ALLOCATION.— 

18 ‘‘(1) IN GENERAL.—Of the amount appro19 priated under subsection (k) for each fiscal year, the 

20 Secretary shall allocate as grant funds— 

21 ‘‘(A) 98 percent to be provided to States in 

22 accordance with paragraph (2); and 

23 ‘‘(B) 2 percent to be provided to Indian 

24 tribes in accordance with paragraph (3). 


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1 ‘‘(2) ALLOCATION TO STATES.—Of the amount 

2 allocated for all States under paragraph (1)(A), the 

3 Secretary shall— 

4 ‘‘(A) allocate not less than 1 percent to 

5 each State described in subparagraphs (A) 

6 through (C) of subsection (b)(12); 

7 ‘‘(B) allocate not less than 0.5 percent to 

8 each State described in subparagraph (D) of 

9 that subsection; and 

10 ‘‘(C) of the amount remaining after the al11 locations under subparagraphs (A) and (B), al12 locate funds to States based on the population 

13 of each State as determined in the latest avail14 able decennial census conducted under section 

15 141(a) of title 13, United States Code. 

16 ‘‘(3) ALLOCATION TO INDIAN TRIBES.—Of the 

17 amount allocated for Indian tribes under paragraph 

18 (1)(B), the Secretary shall allocate funds to each In19 dian tribe participating in the program during that 

20 fiscal year based on a formula established by the 

21 Secretary that takes into account any factor that the 

22 Secretary determines to be appropriate. 

23 ‘‘(4) PUBLICATION OF ALLOCATION FOR24 MULAS.—Not later than 90 days before the begin25 ning of each fiscal year for which grants are proVerDate Sep 11 2014 23:41 Aug 08, 2019 Jkt 089200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S2382.IS S2382

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1 vided to States and Indian tribes under this section, 

2 the Secretary shall publish in the Federal Register 

3 the formulas for allocation established under this 

4 subsection. 

5 ‘‘(5) ADMINISTRATIVE COSTS.—Of the amount 

6 allocated to a State or Indian tribe under this sub7 section, not more than 15 percent shall be used by 

8 the State or Indian tribe for the administrative costs 

9 of administering loans. 

10 ‘‘(e) LOANS BY STATES AND INDIAN TRIBES TO ELI11 GIBLE ENTITIES.— 

12 ‘‘(1) IN GENERAL.—Under the program, a 

13 State or Indian tribe shall make loans to eligible en14 tities to make loans to qualified consumers— 

15 ‘‘(A) to implement cost-effective energy ef16 ficiency measures; and 

17 ‘‘(B) in accordance with subsection (f). 

18 ‘‘(2) STATE ENERGY OFFICES.—A State shall 

19 carry out paragraph (1) through the State energy 

20 office that is responsible for developing a State en21 ergy conservation plan under section 362. 

22 ‘‘(3) PRIORITY.—In making loans under para23 graph (1), a State or Indian tribe shall give priority 

24 to public power groups. 

25 ‘‘(4) REQUIREMENTS.— 


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1 ‘‘(A) IN GENERAL.—Subject to subpara2 graph (C), as a condition of receiving a loan 

3 under this subsection, an eligible entity shall— 

4 ‘‘(i) establish a list of energy effi5 ciency measures that are expected to de6 crease the energy use or costs of qualified 

7 consumers; 

8 ‘‘(ii) prepare an implementation plan 

9 for use of the loan funds, including the use 

10 of any interest to be received under sub11 section (f)(4); 

12 ‘‘(iii) establish an appropriate meas13 urement and verification system to en14 sure— 

15 ‘‘(I) the effectiveness of the en16 ergy efficiency loans made by the eli17 gible entity; and 

18 ‘‘(II) that there is no conflict of 

19 interest in any loan provided by the 

20 eligible entity; 

21 ‘‘(iv) demonstrate expertise in the ef22 fective implementation of energy efficiency 

23 measures; 

24 ‘‘(v) ensure that a portion of the loan 

25 funds, which may be determined by the 


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1 State or Indian tribe, are used to provide 

2 loans to qualified consumers that are 

3 households with a high energy burden; and 

4 ‘‘(vi) give priority to providing loans 

5 to qualified consumers that own homes or 

6 other real property that pose health risks 

7 to the occupants of the property that may 

8 be mitigated by energy efficiency measures, 

9 as determined by the State or Indian tribe. 

10 ‘‘(B) REVISION OF LIST OF ENERGY EFFI11 CIENCY MEASURES.—Subject to the approval of 

12 the State or Indian tribe, as applicable, an eligi13 ble entity may update the list required under 

14 subparagraph (A)(i) to account for newly avail15 able efficiency technologies. 

16 ‘‘(C) EXISTING ENERGY EFFICIENCY PRO17 GRAMS.—An eligible entity that has established 

18 an energy efficiency program for qualified con19 sumers before the date of enactment of this sec20 tion may use an existing list of energy efficiency 

21 measures, implementation plan, and measure22 ment and verification system for that program 

23 to satisfy the applicable requirements under 

24 subparagraph (A), if the State or Indian tribe, 

25 as applicable, determines that the list, plan, or 


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1 system, as applicable, is consistent with the 

2 purposes of this section. 

3 ‘‘(5) NO INTEREST.—A loan under this sub4 section shall bear no interest. 

5 ‘‘(6) TERM.—The term of a loan provided to an 

6 eligible entity under paragraph (1) shall not exceed 

7 20 years after the date on which the loan is issued. 

8 ‘‘(7) ADVANCE.— 

9 ‘‘(A) IN GENERAL.—In providing a loan to 

10 an eligible entity under paragraph (1), a State 

11 or Indian tribe may provide an advance of loan 

12 funds on request of the eligible entity. 

13 ‘‘(B) AMOUNT LIMITATION.—Any advance 

14 provided to an eligible entity under subpara15 graph (A) in any single year shall not exceed 50 

16 percent of the approved loan amount. 

17 ‘‘(C) REPAYMENT.—The repayment of an 

18 advance under subparagraph (A) shall be amor19 tized for a period of not more than 10 years. 

20 ‘‘(8) SPECIAL ADVANCE FOR START-UP ACTIVI21 TIES.— 

22 ‘‘(A) IN GENERAL.—In providing a loan to 

23 an eligible entity under paragraph (1), a State 

24 or Indian tribe may provide a special advance 

25 on request of the eligible entity for assistance in 


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1 defraying the start-up costs of the eligible enti2 ty, as determined by the State or Indian tribe, 

3 as applicable, of providing loans to qualified 

4 consumers under subsection (f). 

5 ‘‘(B) LIMITATION.—A special advance 

6 shall be provided to an eligible entity under 

7 subparagraph (A) only during the 10-year pe8 riod beginning on the date on which the loan is 

9 issued to that eligible entity. 

10 ‘‘(C) AMOUNT.—The amount of a special 

11 advance provided under subparagraph (A) shall 

12 not be greater than 5 percent of the approved 

13 loan amount. 

14 ‘‘(D) REPAYMENT.—Repayment of a spe15 cial advance provided under subparagraph 

16 (A)— 

17 ‘‘(i) shall be required during the 10- 

18 year period beginning on the date on which 

19 the special advance is made; and 

20 ‘‘(ii) may be deferred to the end of the 

21 10-year period described in clause (i) at 

22 the election of the eligible entity. 

23 ‘‘(9) REVOLVING LOAN FUND.— 

24 ‘‘(A) IN GENERAL.—As a condition of par25 ticipating in the program, a State or Indian 


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1 tribe shall use the funds repaid to the State or 

2 Indian tribe under loans offered under this sub3 section to issue new loans under this subsection. 

4 ‘‘(B) ADMINISTRATIVE COSTS.—Not more 

5 than 10 percent of the repaid funds described 

6 in subparagraph (A) may be used for the ad7 ministrative cost of issuing new loans from 

8 those repaid funds under this subsection. 

9 ‘‘(f) LOANS BY ELIGIBLE ENTITIES TO QUALIFIED

10 CONSUMERS.— 

11 ‘‘(1) USE OF LOAN.— 

12 ‘‘(A) IN GENERAL.—A loan made by an el13 igible entity to a qualified consumer using loan 

14 funds provided by a State or Indian tribe under 

15 subsection (e)— 

16 ‘‘(i) shall be used to finance energy ef17 ficiency measures for the purpose of de18 creasing the energy use or costs of the 

19 qualified consumer by an amount that en20 sures, to the maximum extent practicable, 

21 that the applicable loan term described in 

22 subparagraph (B) shall not be an undue fi23 nancial burden on the qualified consumer, 

24 as determined by the eligible entity; 


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1 ‘‘(ii) shall not be used to fund pur2 chases of, or modifications to, personal 

3 property unless the personal property is or 

4 becomes attached to real property as a fix5 ture; 

6 ‘‘(iii) may be used to upgrade a man7 ufactured home, regardless of the classi8 fication of the home as real or personal 

9 property; and 

10 ‘‘(iv) may be used to finance the re11 placement of a manufactured home— 

12 ‘‘(I) if the cost of upgrading the 

13 manufactured home is excessive, as 

14 determined by the eligible entity; and 

15 ‘‘(II) with priority given to a 

16 manufactured home that was con17 structed before June 15, 1976. 

18 ‘‘(B) LOAN TERM DESCRIBED.—The loan 

19 term referred to in subparagraph (A)(i) is— 

20 ‘‘(i) in the case of a manufactured 

21 home replacement, not more than 20 

22 years; and 

23 ‘‘(ii) in the case of any other energy 

24 efficiency measure, not more than 15 

25 years. 


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1 ‘‘(2) REPAYMENT.— 

2 ‘‘(A) IN GENERAL.—Subject to subpara3 graph (B), a loan described in paragraph (1)(A) 

4 shall be repaid by the qualified consumer 

5 through charges added to an existing or new 

6 electric or recurring service bill for the property 

7 of the qualified consumer for, or at which, en8 ergy efficiency measures are being implemented. 

9 ‘‘(B) ALTERNATIVE REPAYMENT.—Repay10 ment under subparagraph (A) shall not pre11 clude— 

12 ‘‘(i) the voluntary prepayment of the 

13 loan by the qualified consumer; or 

14 ‘‘(ii) the use of any additional repay15 ment mechanism, including a tariffed on16 bill mechanism, that— 

17 ‘‘(I) has appropriate risk mitiga18 tion features, as determined by the el19 igible entity; or 

20 ‘‘(II) is required due to the quali21 fied consumer no longer being a cus22 tomer of the eligible entity. 

23 ‘‘(3) ENERGY ASSESSMENT.— 

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1 erty of a qualified consumer that receives a loan 

2 from an eligible entity under this section, and 

3 to assist in the selection of the energy efficiency 

4 measures to be installed, the eligible entity shall 

5 conduct an energy assessment or audit to deter6 mine the impact of proposed energy efficiency 

7 measures on— 

8 ‘‘(i) the energy costs and consumption 

9 of the qualified consumer; and 

10 ‘‘(ii) the health and safety of the occu11 pants of the property on which the energy 

12 efficiency measures are to be installed. 

13 ‘‘(B) FIELD OR ONLINE ASSESSMENT.—An 

14 energy assessment or audit under subparagraph 

15 (A) may be conducted in the field or online, as 

16 determined by the State or Indian tribe that 

17 has issued a loan to the eligible entity under 

18 subsection (e). 

19 ‘‘(4) INTEREST.—A loan described in para20 graph (1)(A) may bear interest, not to exceed 5 per21 cent, which may be used— 

22 ‘‘(A) to establish a loan loss reserve for the 

23 eligible entity; 


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1 ‘‘(B) to offset the personnel and program 

2 costs of the eligible entity in providing the loan; 

3 and 

4 ‘‘(C) for any other related purpose, as de5 termined by the eligible entity, in consultation 

6 with the State or Indian tribe that has issued 

7 a loan to the eligible entity under subsection 

8 (e). 

9 ‘‘(5) OUTSIDE CONTRACTS.—An eligible entity 

10 may enter into 1 or more contracts with 1 or more 

11 qualified entities, as determined by the State or In12 dian tribe that has issued a loan to the eligible enti13 ty under subsection (e)— 

14 ‘‘(A) to assist the eligible entity in admin15 istering the loans described in paragraph 

16 (1)(A); and 

17 ‘‘(B) to carry out any of the requirements 

18 of the eligible entity described in subsection 

19 (e)(4)(A). 

20 ‘‘(g) DIRECT LOANS FROM STATES AND INDIAN

21 TRIBES.—A State or Indian tribe may act as an eligible 

22 entity under subsection (f) to provide loans directly to 

23 qualified consumers— 

24 ‘‘(1) in accordance with that subsection; and 


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1 ‘‘(2) if the State or Indian tribe satisfies the re2 quirements under subsection (e)(4), as determined 

3 by the Secretary. 

4 ‘‘(h) PROGRAM ADMINISTRATION.— 

5 ‘‘(1) PLAN.—Not later than 120 days after the 

6 date of enactment of this section, the Secretary shall 

7 establish and begin carrying out a plan— 

8 ‘‘(A) to measure and verify the success of 

9 the program in implementing energy efficiency 

10 measures; 

11 ‘‘(B) provide training to the employees of 

12 eligible entities relating to carrying out the re13 quirements of eligible entities under this sec14 tion; and 

15 ‘‘(C) provide technical assistance to States, 

16 Indian tribes, and eligible entities relating to 

17 carrying out the requirements of this section. 

18 ‘‘(2) PUBLIC AWARENESS.—Not later than 120 

19 days after the date of enactment of this section, the 

20 Secretary shall establish and begin carrying out a 

21 plan to make eligible entities and the general public 

22 aware of the program, including by developing a 

23 marketing program to raise awareness of the pro24 gram. 

25 ‘‘(3) OUTSIDE CONTRACTS.— 


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1 ‘‘(A) IN GENERAL.—The Secretary may 

2 enter into 1 or more contracts with 1 or more 

3 qualified entities, as determined by the Sec4 retary, to carry out paragraphs (1) and (2). 

5 ‘‘(B) USE OF SUBCONTRACTORS AUTHOR6 IZED.—A qualified entity that enters into a 

7 contract with the Secretary under subparagraph 

8 (A) may use 1 or more subcontractors to assist 

9 the qualified entity in carrying out the contract. 

10 ‘‘(4) ACCOUNTING.—The Secretary, and each 

11 State and Indian tribe participating in the program, 

12 shall take appropriate steps to streamline the ac13 counting requirements for eligible entities under the 

14 program while maintaining adequate assurances of 

15 the repayment of the loans made to those eligible en16 tities under the program. 

17 ‘‘(i) EFFECT ON AUTHORITY.—Nothing in this sec18 tion shall impede, impair, or modify the authority of the 

19 Secretary to offer loans or grants under any other law. 

20 ‘‘(j) REPORT.— 

21 ‘‘(1) IN GENERAL.—Not later than 15 months 

22 after the date on which the program is established, 

23 and 90 days after the end of each fiscal year for 

24 each fiscal year thereafter, the Secretary shall sub25 mit to the appropriate committees of Congress and 


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1 make publicly available a report that describes, with 

2 respect to the program— 

3 ‘‘(A) the number of applications received 

4 by each State and Indian tribe from eligible en5 tities for that fiscal year; 

6 ‘‘(B) the number of loans made by each 

7 State and Indian tribe for that fiscal year— 

8 ‘‘(i) to eligible entities; and 

9 ‘‘(ii) directly to qualified consumers; 

10 ‘‘(C) the eligible entities that are the re11 cipients of the loans described in subparagraph 

12 (B)(i); and 

13 ‘‘(D) the manner in which the program 

14 was advertised to eligible entities and the gen15 eral public. 

16 ‘‘(2) CONSULTATION.—The Secretary shall con17 sult with and obtain information from States and 

18 Indian tribes in preparing the report submitted 

19 under paragraph (1). 

20 ‘‘(k) AUTHORIZATION OF APPROPRIATIONS.— 

21 ‘‘(1) IN GENERAL.—There is authorized to be 

22 appropriated to the Secretary to carry out this sec23 tion $150,000,000 for each of fiscal years 2021 

24 through 2026. 


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1 ‘‘(2) SUPPLEMENT NOT SUPPLANT.—The fund2 ing provided to a State or Indian tribe under sub3 section (d) for each fiscal year shall be used to sup4 plement, not supplant, any Federal, State, or other 

5 funds otherwise made available to that State or In6 dian tribe under— 

7 ‘‘(A) a State energy conservation plan es8 tablished under part D of title III of the En9 ergy Policy and Conservation Act (42 U.S.C. 

10 6321 et seq.); or 

11 ‘‘(B) the Weatherization Assistance Pro12 gram for Low-Income Persons established 

13 under part A of title IV of the Energy Con14 servation and Production Act (42 U.S.C. 6861 

15 et seq.).’’. 

16 (b) STATE ENERGY CONSERVATION PLANS.—Section 

17 362(d)(5) of the Energy Policy and Conservation Act (42 

18 U.S.C. 6322(d)(5)) is amended— 

19 (1) in subparagraph (A), by striking ‘‘or’’ at 

20 the end; 

21 (2) in subparagraph (B), by inserting ‘‘or’’ 

22 after the semicolon; and 

23 (3) by adding at the end the following: 

24 ‘‘(C) which may include the community en25 ergy savings program under section 362A;’’. 


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1 (c) TECHNICAL AMENDMENT.—The table of contents 

2 for the Energy Policy and Conservation Act (Public Law 

3 94–163; 89 Stat. 872) is amended by inserting after the 

4 item relating to section 362 the following: 

‘‘Sec. 362A. Community energy savings program.’’. 

Æ 


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