II 

111TH CONGRESS 

2D SESSION S. 3177 

To provide for the establishment of a Home Star Retrofit Rebate Program, 

and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MARCH 25, 2010 

Mr. BINGAMAN (for himself, Mr. WARNER, and Mr. GRAHAM) introduced the 

following bill; which was read twice and referred to the Committee on Finance 

A BILL 

To provide for the establishment of a Home Star Retrofit 

Rebate Program, 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 ‘‘Home Star Energy 

5 Retrofit Act of 2010’’. 

6 SEC. 2. DEFINITIONS. 

7 In this Act: 

8 (1) ACCREDITED CONTRACTOR.—The term ‘‘ac9 credited contractor’’ means a residential energy effiVerDate Nov 24 2008 03:51 Mar 26, 2010 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S3177.IS S3177

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1 ciency contractor that meets the minimum applicable 

2 requirements established under section 4. 

3 (2) ADMINISTRATOR.—The term ‘‘Adminis4 trator’’ means the Administrator of the Environ5 mental Protection Agency. 

6 (3) BPI.—The term ‘‘BPI’’ means the Building 

7 Performance Institute. 

8 (4) CERTIFIED WORKFORCE.—The term ‘‘cer9 tified workforce’’ means a residential energy effi10 ciency construction workforce that is entirely cer11 tified in the appropriate job skills for all employees 

12 performing installation work under— 

13 (A) an applicable third party skills stand14 ard established by— 

15 (i) the BPI; 

16 (ii) the North American Technician 

17 Excellence; or 

18 (iii) the Laborers’ International Union 

19 of North America; or 

20 (B) other standards approved by the Sec21 retary, in consultation with the Secretary of 

22 Labor and the Administrator. 

23 (5) CONDITIONED SPACE.—The term ‘‘condi24 tioned space’’ means the area of a home that is— 

25 (A) intended for habitation; and 


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1 (B) intentionally heated or cooled. 

2 (6) DOE.—The term ‘‘DOE’’ means the De3 partment of Energy. 

4 (7) ELECTRIC UTILITY.—The term ‘‘electric 

5 utility’’ means any person or State agency that de6 livers or sells electric energy at retail, including non7 regulated utilities and utilities that are subject to 

8 State regulation and Federal power marketing ad9 ministrations. 

10 (8) EPA.—The term ‘‘EPA’’ means the Envi11 ronmental Protection Agency. 

12 (9) FEDERAL REBATE PROCESSING SYSTEM.— 

13 The term ‘‘Federal Rebate Processing System’’ 

14 means the Federal Rebate Processing System estab15 lished under section 3(b). 

16 (10) GOLD STAR HOME ENERGY RETROFIT PRO17 GRAM.—The term ‘‘Gold Star Home Energy Retrofit 

18 Program’’ means the Gold Star Home Energy Ret19 rofit Program established under section 8. 

20 (11) HOME.—The term ‘‘home’’ means a prin21 cipal residential dwelling unit in a building with no 

22 more than 4 dwelling units that— 

23 (A) is located in the United States; and 

24 (B) was constructed before the date of en25 actment of this Act. 


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1 (12) HOME STAR LOAN PROGRAM.—The term 

2 ‘‘Home Star loan program’’ means the Home Star 

3 energy efficiency loan program established under 

4 section 15(a). 

5 (13) HOME STAR RETROFIT REBATE PRO6 GRAM.—The term ‘‘Home Star Retrofit Rebate Pro7 gram’’ means the Home Star Retrofit Rebate Pro8 gram established under section 3(a). 

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

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

11 Indian Self-Determination and Education Assistance 

12 Act (25 U.S.C. 450b). 

13 (15) NATIONAL HOME PERFORMANCE COUN14 CIL.—The term ‘‘National Home Performance Coun15 cil’’ means the National Home Performance Council, 

16 Inc. 

17 (16) NATURAL GAS UTILITY.—The term ‘‘nat18 ural gas utility’’ means any person or State agency 

19 that transports, distributes, or sells natural gas at 

20 retail, including nonregulated utilities and utilities 

21 that are subject to State regulation. 

22 (17) QUALIFIED CONTRACTOR.—The term 

23 ‘‘qualified contractor’’ means a residential energy ef24 ficiency contractor that meets minimum applicable 

25 requirements established under section 4. 


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1 (18) QUALITY ASSURANCE PROGRAM.— 

2 (A) IN GENERAL.—The term ‘‘quality as3 surance program’’ means a program established 

4 under this Act or recognized by the Secretary 

5 under this Act, to oversee the delivery of home 

6 efficiency retrofit programs to ensure that work 

7 is performed in accordance with standards and 

8 criteria established under this Act. 

9 (B) INCLUSIONS.—For purposes of sub10 paragraph (A), delivery of retrofit programs in11 cludes delivery of quality assurance reviews of 

12 rebate applications and field inspections for a 

13 portion of customers receiving rebates and con14 ducted by a quality assurance provider, with the 

15 consent of participating consumers and without 

16 delaying rebate payments to participating con17 tractors. 

18 (19) QUALITY ASSURANCE PROVIDER.—The 

19 term ‘‘quality assurance provider’’ means any entity 

20 that meets the minimum applicable requirements es21 tablished under section 6. 

22 (20) REBATE AGGREGATOR.—The term ‘‘rebate 

23 aggregator’’ means an entity that meets the require24 ments of section 5. 


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1 (21) RESNET.—The term ‘‘RESNET’’ means 

2 the Residential Energy Services Network, which is a 

3 nonprofit certification and standard setting organi4 zation for home energy raters that evaluate the en5 ergy performance of a home. 

6 (22) SECRETARY.—The term ‘‘Secretary’’ 

7 means the Secretary of Energy. 

8 (23) SILVER STAR HOME ENERGY RETROFIT

9 PROGRAM.—The term ‘‘Silver Star Home Energy 

10 Retrofit Program’’ means the Silver Star Home En11 ergy Retrofit Program established under section 7. 

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

13 (A) a State; 

14 (B) the District of Columbia; 

15 (C) the Commonwealth of Puerto Rico; 

16 (D) Guam; 

17 (E) American Samoa; 

18 (F) the Commonwealth of the Northern 

19 Mariana Islands; 

20 (G) the United States Virgin Islands; and 

21 (H) any other territory or possession of the 

22 United States. 

23 SEC. 3. HOME STAR RETROFIT REBATE PROGRAM. 

24 (a) IN GENERAL.—The Secretary shall establish the 

25 Home Star Retrofit Rebate Program. 


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1 (b) FEDERAL REBATE PROCESSING SYSTEM.— 

2 (1) IN GENERAL.—Not later than 30 days after 

3 the date of enactment of this Act, the Secretary, in 

4 consultation with the Secretary of the Treasury and 

5 the Administrator, shall— 

6 (A) establish a Federal Rebate Processing 

7 System which shall serve as a database and in8 formation technology system that will allow re9 bate aggregators to submit claims for reim10 bursement using standard data protocols; 

11 (B) establish a national retrofit website 

12 that provides information on the Home Star 

13 Retrofit Rebate Program, including— 

14 (i) how to determine whether par15 ticular efficiency measures are eligible for 

16 rebates; and 

17 (ii) how to participate in the program; 

18 and 

19 (C) make available, on a designated 

20 website, model forms for compliance with all ap21 plicable requirements of this Act, to be sub22 mitted by— 

23 (i) each qualified contractor on com24 pletion of an eligible home energy retrofit; 

25 and 


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1 (ii) each quality assurance provider on 

2 completion of field verification. 

3 (2) MODEL FORMS.—In carrying out this sec4 tion, the Secretary shall consider the model forms 

5 developed by the National Home Performance Coun6 cil. 

7 (c) PUBLIC INFORMATION CAMPAIGN.—Not later 

8 than 60 days after the date of enactment of this Act, the 

9 Administrator shall develop and implement a public edu10 cation campaign that describes, at a minimum— 

11 (1) the benefits of home energy retrofits; 

12 (2) the availability of rebates for— 

13 (A) the installation of qualifying efficiency 

14 measures; and 

15 (B) whole home efficiency improvements; 

16 and 

17 (3) the requirements for qualified contractors 

18 and accredited contractors. 

19 SEC. 4. CONTRACTORS. 

20 (a) CONTRACTOR QUALIFICATIONS FOR SILVER STAR

21 HOME ENERGY RETROFIT PROGRAM.—A contractor may 

22 perform retrofit work under the Silver Star Home Energy 

23 Retrofit Program in a State for which rebates are provided 

24 under this Act only if the contractor meets or provides— 


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1 (1) all applicable contractor licensing require2 ments established by the State or, if none exist at 

3 the State level, the Secretary; 

4 (2) insurance coverage of at least $1,000,000 

5 for general liability, and for such other purposes and 

6 in such other amounts as required by the State; 

7 (3) warranties to homeowners that completed 

8 work will— 

9 (A) be free of significant defects; 

10 (B) be installed in accordance with the 

11 specifications of the manufacturer; and 

12 (C) perform properly for a period of at 

13 least 1 year after the date of completion of the 

14 work; 

15 (4) an agreement to provide the owner of a 

16 home, through a discount, the full economic value of 

17 all rebates received under this Act with respect to 

18 the home; and 

19 (5) an agreement to provide the homeowner, be20 fore a contract is executed between the contractor 

21 and a homeowner covering the eligible work, a notice 

22 of— 

23 (A) the rebate amount the contractor in24 tends to apply for with respect to eligible work 

25 under this Act; and 


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1 (B) the means by which the rebate will be 

2 passed through as a discount to the homeowner. 

3 (b) CONTRACTOR QUALIFICATIONS FOR GOLD STAR

4 HOME ENERGY RETROFIT PROGRAM.—A contractor may 

5 perform retrofit work under the Gold Star Home Energy 

6 Retrofit Program in a State for which rebates are provided 

7 under this Act only if the contractor— 

8 (1) meets the requirements for qualified con9 tractors under subsection (a); and 

10 (2) is accredited— 

11 (A) by the BPI; or 

12 (B) under other standards approved by the 

13 Secretary, in consultation with the Adminis14 trator. 

15 SEC. 5. REBATE AGGREGATORS. 

16 (a) IN GENERAL.—The Secretary shall develop a net17 work of rebate aggregators that can facilitate the delivery 

18 of rebates to participating contractors by— 

19 (1) reviewing the proposed rebate application 

20 for completeness and accuracy; 

21 (2) reviewing measures for eligibility in accord22 ance with this Act; 

23 (3) providing data to the Federal Data Proc24 essing Center consistent with data protocols estab25 lished by the Secretary; and 


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1 (4) as soon as practicable but not later than 30 

2 days after the date of receipt, distributing funds re3 ceived from DOE to contractors, vendors, or other 

4 persons who have been approved for rebates by a 

5 quality assurance provider, if funding to contractors, 

6 vendors, or other persons is required by the Sec7 retary. 

8 (b) ELIGIBILITY.—To be eligible to apply to the Sec9 retary for approval as a rebate aggregator, an entity shall 

10 be— 

11 (1) a Home Performance with Energy Star 

12 partner; 

13 (2) an entity administering a residential energy 

14 efficiency retrofit program established or approved 

15 by a State; 

16 (3) a Federal Power Marketing Administration, 

17 an electric utility, or a natural gas utility that has— 

18 (A) an approved residential energy effi19 ciency retrofit program; and 

20 (B) an established quality assurance pro21 vider network; or 

22 (4) an entity that demonstrates to the Sec23 retary that the entity can perform the functions of 

24 an rebate aggregator, without disrupting existing 

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1 porating the Home Star Program, including dem2 onstration of— 

3 (A) corporate status or status as a State 

4 or local government; 

5 (B) the capability to provide electronic 

6 data to the Federal Rebate Processing System; 

7 (C) a financial system that is capable of 

8 tracking the distribution of rebates to partici9 pating contractors; and 

10 (D) coordination and cooperation by the 

11 entity with the appropriate State energy office 

12 regarding participation in the existing energy 

13 efficiency programs that will be delivering the 

14 Home Star Program. 

15 (c) PUBLIC UTILITY COMMISSION EFFICIENCY TAR16 GETS.—The Secretary shall— 

17 (1) develop guidelines for States to use to allow 

18 utilities participating as rebate aggregators to count 

19 the energy savings from the participation of the util20 ities toward State-level energy savings targets; and 

21 (2) work with States to assist in the adoption 

22 of the guidelines for the purposes and duration of 

23 the Home Star Retrofit Rebate Program. 


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1 SEC. 6. QUALITY ASSURANCE PROVIDERS. 

2 (a) IN GENERAL.—An entity shall be considered a 

3 quality assurance provider under this Act if the entity— 

4 (1) is independent of the contractor; 

5 (2) confirms the qualifications of contractors or 

6 installers of home energy efficiency retrofits; 

7 (3) confirms compliance with the requirements 

8 of a ‘‘certified workforce’’; and 

9 (4) performs field inspections and other meas10 ures required to confirm the compliance of the ret11 rofit work under the Silver Star program, and the 

12 retrofit work and the simulated energy savings 

13 under the Gold Star program, based on the require14 ments of this Act. 

15 (b) INCLUSIONS.—An entity shall be considered a 

16 quality assurance provider under this Act if the entity is 

17 qualified through— 

18 (1) the International Code Council; 

19 (2) the BPI; 

20 (3) the RESNET; 

21 (4) a State; 

22 (5) a State-approved residential energy effi23 ciency retrofit program; or 

24 (6) any other entity designated by the Sec25 retary, in consultation with the Administrator. 


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1 SEC. 7. SILVER STAR HOME ENERGY RETROFIT PROGRAM. 

2 (a) IN GENERAL.—If the energy efficiency retrofit of 

3 a home is carried out after the date of enactment of this 

4 Act in accordance with this section, a rebate shall be 

5 awarded for the energy retrofit of a home for the installa6 tion of energy savings measures— 

7 (1) selected from the list of energy savings 

8 measures described in subsection (b); 

9 (2) installed in the home by a qualified con10 tractor not later than 1 year after the date of enact11 ment of this Act; 

12 (3) carried out in compliance with this section; 

13 and 

14 (4) subject to the maximum amount limitations 

15 established under subsection (d)(4). 

16 (b) ENERGY SAVINGS MEASURES.—Subject to sub17 section (c), a rebate shall be awarded under this section 

18 for the installation of the following energy savings meas19 ures for a home energy retrofit that meet technical stand20 ards established under this section: 

21 (1) Whole house air-sealing measures, in ac22 cordance with BPI standards or other procedures 

23 approved by the Secretary. 

24 (2) Attic insulation measures that— 

25 (A) include sealing of air leakage between 

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1 ance with BPI standards or the attic portions 

2 of the DOE or EPA thermal bypass checklist or 

3 other procedures approved by the Secretary; 

4 (B) add at least R–19 insulation to exist5 ing insulation; 

6 (C) result in at least R–38 insulation in 

7 DOE climate zones 1 through 4 and at least R– 

8 49 insulation in DOE climate zones 5 through 

9 8, including existing insulation, within the lim10 its of structural capacity; and 

11 (D) cover at least— 

12 (i) 100 percent of an accessible attic; 

13 or 

14 (ii) 75 percent of a total conditioned 

15 space floor area. 

16 (3) Duct seal or replacement that— 

17 (A) is installed in accordance with BPI 

18 standards or other procedures approved by the 

19 Secretary; and 

20 (B) in the case of duct replacement, re21 places at least 50 percent of a distribution sys22 tem of the home. 

23 (4) Wall insulation that— 


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1 (A) is installed in accordance with BPI 

2 standards or other procedures approved by the 

3 Secretary; 

4 (B) is to full-stud thickness; and 

5 (C) covers at least 75 percent of the total 

6 external wall area of the home. 

7 (5) Crawl space insulation or basement wall 

8 and rim joist insulation that is installed in accord9 ance with BPI standards or other procedures ap10 proved by the Secretary— 

11 (A) covers at least 500 square feet of crawl 

12 space or basement wall and adds at least— 

13 (i) R–19 of cavity insulation or R–15 

14 of continuous insulation to existing crawl 

15 space insulation; or 

16 (ii) R–13 of cavity insulation or R–10 

17 of continuous insulation to basement walls; 

18 and 

19 (B) fully covers the rim joist with at least 

20 R–10 of new continuous or R–13 of cavity insu21 lation. 

22 (6) Window replacement that replaces at least 

23 8 exterior windows or skylights, or 75 percent of the 

24 exterior windows and skylights in a home, whichever 

25 is less, with windows or skylights that— 


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1 (A) are certified by the National Fenestra2 tion Rating Council; and 

3 (B) comply with criteria applicable to win4 dows and skylights under section 25(c) of the 

5 Internal Revenue Code of 1986. 

6 (7) Door replacement that replaces at least 1 

7 exterior door with doors that comply with criteria 

8 applicable to doors under section 25(c) of the Inter9 nal Revenue Code of 1986. 

10 (8)(A) Heating system replacement with— 

11 (i) a natural gas or propane furnace with 

12 an AFUE rating of 92 or greater; 

13 (ii) a natural gas or propane boiler with an 

14 AFUE rating of 90 or greater; 

15 (iii) an oil furnace with an AFUE rating 

16 of 86 or greater and that uses an electrically 

17 commutated blower motor; 

18 (iv) an oil boiler with an AFUE rating of 

19 86 or greater and that has temperature reset or 

20 thermal purge controls; or 

21 (v) a wood or wood pellet furnace, boiler, 

22 or stove, if— 

23 (I) the new system— 

24 (aa) meets at least 75 percent of 

25 the heating demands of the home; 


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1 (bb) has a distribution system 

2 (such as ducts or vents) that allows 

3 heat to reach all or most parts of the 

4 home; and 

5 (cc) in the case of a wood stove, 

6 replaces an existing wood stove; and 

7 (II) an independent test laboratory 

8 approved by the Secretary certifies that 

9 the new system— 

10 (aa) has thermal efficiency (with 

11 a lower heating value) of at least 75 

12 percent for stoves and 80 percent for 

13 furnaces and boilers; and 

14 (bb) has particulate emissions of 

15 less than 4.5 grams per hour for 

16 stoves. 

17 (B) A rebate may be provided under this sec18 tion for the replacement of a furnace or boiler de19 scribed in clauses (i) through (iv) of subparagraph 

20 (A) only if the new furnace or boiler is installed in 

21 accordance with ANSI/ACCA Standard 5 QI–2007. 

22 (9) Air-conditioner or heat-pump replacement 

23 with a new unit that— 

24 (A) is installed in accordance with ANSI/ 

25 ACCA Standard 5 QI–2007; and 


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1 (B) meets or exceeds— 

2 (i) in the case of an air-source condi3 tioner, SEER 16 and EER 13; 

4 (ii) in the case of an air-source heat 

5 pump, SEER 15, EER 12.5, and HSPF 

6 8.5; and 

7 (iii) in the case of a geothermal heat 

8 pump, Energy Star tier 2 efficiency re9 quirements. 

10 (10) Replacement of or with— 

11 (A) a natural gas or propane water heater 

12 with a condensing storage water heater with an 

13 energy factor of 0.80 or more or a thermal effi14 ciency of 90 percent or more; 

15 (B) a tankless natural gas or propane 

16 water heater with an energy factor of at least 

17 .82; 

18 (C) a natural gas or propane storage water 

19 heater with an energy factor of at least .67; 

20 (D) an indirect water heater with an insu21 lated storage tank that— 

22 (i) has a storage capacity of at least 

23 30 gallons and is insulated to at least R– 

24 16; and 


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1 (ii) is installed in conjunction with a 

2 qualifying boiler described in paragraph 

3 (7); 

4 (E) an electric water heater with an energy 

5 factor of 2.0 or more; 

6 (F) a water heater with a solar hot water 

7 system that— 

8 (i) is certified by the Solar Rating and 

9 Certification Corporation; or 

10 (ii) meets technical standards estab11 lished by the State of Hawaii; or 

12 (G) a water heater installed in conjunction 

13 with a qualifying geothermal heat pump de14 scribed in paragraph (9) that provides domestic 

15 water heating through the use of— 

16 (i) year-round demand water heating 

17 capability; or 

18 (ii) a desuperheater. 

19 (11) Storm windows that— 

20 (A) are installed on a least 5 single-glazed 

21 windows that do not have storm windows; 

22 (B) are installed in a home listed on or eli23 gible for listing in the National Register of His24 toric Places; and 


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1 (C) comply with any procedures that the 

2 Secretary may establish for storm windows (in3 cluding installation). 

4 (c) INSTALLATION COSTS.—Measures described in 

5 paragraphs (1) through (11) of subsection (b) shall in6 clude expenditures for labor and other installation-related 

7 costs (including venting system modification and conden8 sate disposal) properly allocable to the onsite preparation, 

9 assembly, or original installation of the component. 

10 (d) AMOUNT OF REBATE.— 

11 (1) IN GENERAL.—Except as provided in para12 graphs (2) through (4), the amount of a rebate pro13 vided under this section shall be $1,000 per measure 

14 for the installation of energy savings measures de15 scribed in subsection (b). 

16 (2) HIGHER REBATE AMOUNT.—Except as pro17 vided in paragraph (4), the amount of a rebate pro18 vided to the owner of a home or designee under this 

19 section shall be $1,500 per measure for— 

20 (A) attic insulation and air sealing de21 scribed in subsection (b)(2); 

22 (B) wall insulation described in subsection 

23 (b)(4); 

24 (C) windows or skylights described in sub25 section (b)(6); 


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1 (D) a heating system described in sub2 section (b)(8); and 

3 (E) an air-conditioner or heat-pump re4 placement described in subsection (b)(9). 

5 (3) LOWER REBATE AMOUNT.—Except as pro6 vided in paragraph (4), the amount of a rebate pro7 vided under this section shall be— 

8 (A) $125 per door for the installation of 

9 up to a maximum of 2 Energy Star doors de10 scribed in subsection (b)(7) for each home; 

11 (B) $250 for a maximum of 1 natural gas 

12 or propane storage water heater described in 

13 subsection (b)(10)(C) for each home; 

14 (C) $250 for rim joist insulation described 

15 in subsection (b)(5)(B); 

16 (D) $50 for each storm window described 

17 in subsection (b)(11); and 

18 (E) $500 for a desuperheater described in 

19 subsection (b)(10)(G)(ii). 

20 (4) MAXIMUM AMOUNT.—The total amount of a 

21 rebate provided to the owner of a home or designee 

22 under this section shall not exceed the lower of— 

23 (A) $3,000; 

24 (B) the sum of the amounts per measure 

25 specified in paragraphs (1) through (3); 


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1 (C) 50 percent of the total cost of the in2 stalled measures; or 

3 (D) the reduction in the price paid by the 

4 owner of the home, relative to the price of the 

5 installed measures in the absence of the Silver 

6 Star Home Energy Retrofit Program. 

7 (e) INSULATION PRODUCTS PURCHASED WITHOUT

8 INSTALLATION SERVICES.—A rebate shall be awarded 

9 under this section for attic, wall, or crawl space insulation 

10 or air sealing product if— 

11 (1) the product— 

12 (A) qualifies for a credit under section 25C 

13 of the Internal Revenue Code of 1986 but is 

14 not the subject of a claim for the credit; 

15 (B) is purchased by a homeowner for in16 stallation by the homeowner in a home identi17 fied by the address of the homeowner; 

18 (C) is identified and attributed to a spe19 cific home in a submission by the vendor to a 

20 rebate aggregator; and 

21 (D) is not part of— 

22 (i) an energy savings measure de23 scribed in paragraphs (1) through (5) of 

24 subsection (b); and 


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1 (ii) a retrofit for which a rebate is 

2 provided under the Gold Star Home En3 ergy Retrofit Program; or 

4 (2) educational material on proper installation 

5 of the product is provided to the homeowner, includ6 ing material on air sealing while insulating. 

7 (f) QUALIFICATION FOR REBATE UNDER SILVER

8 STAR HOME ENERGY RETROFIT PROGRAM.—On submis9 sion of a claim by a rebate aggregator to the system estab10 lished under section 5, the Secretary shall provide reim11 bursement to the rebate aggregator for reduced-cost en12 ergy-efficiency measures installed in a home, if— 

13 (1) the measures undertaken for the retrofit 

14 are— 

15 (A) eligible measures described on the list 

16 established under subsection (b); 

17 (B) installed properly in accordance with 

18 applicable technical specifications; and 

19 (C) installed by a qualified contractor; 

20 (2) the amount of the rebate does not exceed 

21 the maximum amount described in subsection (d)(4); 

22 (3) not less than— 

23 (A) 20 percent of the retrofits performed 

24 by each qualified contractor under this section 

25 are randomly subject to a third-party field 


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1 verification of all work associated with the ret2 rofit by a quality assurance provider; or 

3 (B) in the case of qualified contractor that 

4 uses a certified workforce, 10 percent of the 

5 retrofits performed under this section are ran6 domly subject to a third-party field verification 

7 of all work associated with the retrofit by a 

8 quality assurance provider; and 

9 (4)(A) the installed measures will be brought 

10 into compliance with the specifications and quality 

11 standards for the Home Star Retrofit Rebate Pro12 gram, by the installing qualified contractor, at no 

13 additional cost to the homeowner, not later than 14 

14 days after the date of notification of a defect, if a 

15 field verification by a quality assurance provider 

16 finds that corrective work is needed; 

17 (B) a subsequent quality assurance visit is con18 ducted to evaluate the remedy not later than 7 days 

19 after notification by the contractor that the defect 

20 has been corrected; and 

21 (C) notification of disposition of the visit occurs 

22 not later than 7 days after the date of that visit. 

23 (g) HOMEOWNER COMPLAINTS.— 

24 (1) IN GENERAL.—During the 1-year warranty 

25 period, a homeowner may make a complaint under 


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1 the quality assurance program that compliance with 

2 the quality assurance requirements of this section 

3 has not been achieved. 

4 (2) VERIFICATION.— 

5 (A) IN GENERAL.—The quality assurance 

6 program shall provide that, on receiving a com7 plaint under paragraph (1), an independent 

8 quality assurance provider shall conduct field 

9 verification on the retrofit work performed by 

10 the contractor. 

11 (B) ADMINISTRATION.—A verification 

12 under this paragraph shall be— 

13 (i) in addition to verifications con14 ducted under subsection (f)(3); and 

15 (ii) corrected in accordance with sub16 section (f)(4). 

17 (h) AUDITS.— 

18 (1) IN GENERAL.—On making payment for a 

19 submission under this section, the Secretary shall re20 view rebate requests to determine whether program 

21 requirements were met in all respects. 

22 (2) INCORRECT PAYMENT.—On a determination 

23 of the Secretary under paragraph (1) that a pay24 ment was made incorrectly to a party, the Secretary 

25 may— 


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1 (A) recoup the amount of the incorrect 

2 payment; or 

3 (B) withhold the amount of the incorrect 

4 payment from the next payment made to the 

5 party pursuant to a subsequent request. 

6 SEC. 8. GOLD STAR HOME ENERGY RETROFIT PROGRAM. 

7 (a) IN GENERAL.—If the energy efficiency retrofit of 

8 a home is carried out after the date of enactment of this 

9 Act by an accredited contractor in accordance with this 

10 section, a rebate shall be awarded for retrofits that achieve 

11 whole home energy savings. 

12 (b) AMOUNT OF GRANT.—Subject to subsection (e), 

13 the amount of a rebate provided to the owner of a home 

14 or a designee of the owner under this section shall be— 

15 (1) $3,000 for a 20-percent reduction in whole 

16 home energy consumption; and 

17 (2) an additional $1,000 for each additional 5- 

18 percent reduction up to the lower of— 

19 (A) $8,000; or 

20 (B) 50 percent of the total retrofit cost 

21 (including the cost of audit and diagnostic pro22 cedures). 

23 (c) ENERGY SAVINGS.— 

24 (1) IN GENERAL.—Reductions in whole home 

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1 termined by a comparison of the simulated energy 

2 consumption of the home before and after the ret3 rofit of the home. 

4 (2) DOCUMENTATION.—The percent improve5 ment in energy consumption under this section shall 

6 be documented through— 

7 (A)(i) the use of a whole home simulation 

8 software program that has been approved as a 

9 commercial alternative under the Weatheriza10 tion Assistance Program for Low-Income Per11 sons established under part A of title IV of the 

12 Energy Conservation and Production Act (42 

13 U.S.C. 6861 et seq.); or 

14 (ii) a equivalent performance test estab15 lished by the Secretary, in consultation with the 

16 Administrator; or 

17 (B)(i) the use of a whole home simulation 

18 software program that has been approved under 

19 RESNET Publication No. 06–001 (or a suc20 cessor publication approved by the Secretary); 

21 (ii) an equivalent performance test estab22 lished by the Secretary; or 

23 (iii) a State-certified equivalent rating net24 work, as specified by IRS Notice 2008–35; or 


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1 (iv) a HERS rating system required by 

2 State law. 

3 (3) MONITORING.—The Secretary— 

4 (A) shall continuously monitor the software 

5 packages used for determining rebates under 

6 this section; and 

7 (B) may disallow the use of software pro8 grams that improperly assess energy savings. 

9 (4) ASSUMPTIONS AND TESTING.—The Sec10 retary may— 

11 (A) establish simulation tool assumptions 

12 for the establishment of the pre-retrofit energy 

13 use; 

14 (B) require compliance with software per15 formance tests covering— 

16 (i) mechanical system performance; 

17 (ii) duct distribution system efficiency; 

18 (iii) hot water performance; or 

19 (iv) other measures; and 

20 (C) require the simulation of pre-retrofit 

21 energy usage to be bounded by metered pre-ret22 rofit energy usage. 

23 (5) RECOMMENDED MEASURES.—The simula24 tion tool shall have the ability at a minimum to as25 sess the savings associated with all the measures for 


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1 which incentives are specifically provided under the 

2 Silver Star Home Energy Retrofit Program. 

3 (d) QUALIFICATION FOR REBATE UNDER GOLD

4 STAR HOME ENERGY RETROFIT PROGRAM.—On submis5 sion of a claim by a rebate aggregator to the system estab6 lished under section 5, the Secretary shall provide reim7 bursement to the rebate aggregator for reduced-cost 

8 whole-home retrofits, if— 

9 (1) the retrofit is performed by an accredited 

10 contractor; 

11 (2) the amount of the reimbursement is not 

12 more than the amount described in subsection (b); 

13 (3) documentation described in subsection (c) is 

14 transmitted with the claim; 

15 (4) a home receiving a whole-home retrofit is 

16 subject to random third-party field verification by a 

17 quality assurance provider in accordance with sub18 section (e); and 

19 (5)(A) the installed measures will be brought 

20 into compliance with the specifications and quality 

21 standards for the Home Star Retrofit Rebate Pro22 gram, by the installing qualified contractor, at no 

23 additional cost to the homeowner, not later than 14 

24 days after the date of notification of a defect if a 


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1 field verification by a quality assurance provider 

2 finds that corrective work is needed; 

3 (B) a subsequent quality assurance visit is con4 ducted to evaluate the remedy not later than 7 days 

5 after notification by the contractor that the defect 

6 has been corrected; and 

7 (C) notification of disposition of the visit occurs 

8 not later than 7 days after the date of that visit. 

9 (e) VERIFICATION.— 

10 (1) IN GENERAL.—Subject to subparagraph 

11 (2), all work installed in a home receiving a whole12 home retrofit by an accredited contractor under this 

13 section shall be subject to random third-party field 

14 verification by a quality assurance provider at a rate 

15 of— 

16 (A) 15 percent; or 

17 (B) in the case of work performed by an 

18 accredited contractor using a certified work19 force, 10 percent. 

20 (2) VERIFICATION NOT REQUIRED.—A home 

21 shall not be subject to random third-party field 

22 verification under this section if— 

23 (A) a post-retrofit home energy rating is 

24 conducted by an eligible certifier in accordance 

25 with— 


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1 (i) RESNET Publication No. 06–001 

2 (or a successor publication approved by the 

3 Secretary); 

4 (ii) a State-certified equivalent rating 

5 network, as specified in IRS Notice 2008– 

6 35; or 

7 (iii) a HERS rating system required 

8 by State law; 

9 (B) the eligible certifier is independent of 

10 the qualified contractor or accredited contractor 

11 in accordance with RESNET Publication No. 

12 06–001 (or a successor publication approved by 

13 the Secretary); and 

14 (C) the rating includes field verification of 

15 measures. 

16 (f) HOMEOWNER COMPLAINTS.— 

17 (1) IN GENERAL.—A homeowner may make a 

18 complaint under the quality assurance program dur19 ing the 1-year warranty period that compliance with 

20 the quality assurance requirements of this section 

21 has not been achieved. 

22 (2) VERIFICATION.— 

23 (A) IN GENERAL.—The quality assurance 

24 program shall provide that, on receiving a com25 plaint under paragraph (1), an independent 


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1 quality assurance provider shall conduct field 

2 verification on the retrofit work performed by 

3 the contractor. 

4 (B) ADMINISTRATION.—A verification 

5 under this paragraph shall be— 

6 (i) in addition to verifications con7 ducted under subsection (e)(1); and 

8 (ii) corrected in accordance with sub9 section (e). 

10 (g) AUDITS.— 

11 (1) IN GENERAL.—On making payment for a 

12 submission under this section, the Secretary shall re13 view rebate requests to determine whether program 

14 requirements were met in all respects. 

15 (2) INCORRECT PAYMENT.—On a determination 

16 of the Secretary under paragraph (1) that a pay17 ment was made incorrectly to a party, the Secretary 

18 may— 

19 (A) recoup the amount of the incorrect 

20 payment; or 

21 (B) withhold the amount of the incorrect 

22 payment from the next payment made to the 

23 party pursuant to a subsequent request. 


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1 SEC. 9. GRANTS TO STATES AND INDIAN TRIBES. 

2 (a) IN GENERAL.—A State or Indian tribe that re3 ceives a grant under subsection (d) shall use the grant 

4 for— 

5 (1) administrative costs; 

6 (2) oversight of quality assurance plans; 

7 (3) development of ongoing quality assurance 

8 framework; 

9 (4) establishment and delivery of financing pi10 lots in accordance with this Act; 

11 (5) coordination with existing residential ret12 rofit programs and infrastructure development to as13 sist deployment of the Home Star program; and 

14 (6) the costs of carrying out the responsibilities 

15 of the State or Indian tribe under the Silver Star 

16 Home Energy Retrofit Program and the Gold Star 

17 Home Energy Retrofit Program. 

18 (b) INITIAL GRANTS.—Not later than 30 days after 

19 the date of enactment of this Act, the Secretary shall 

20 make the initial grants available under this section. 

21 (c) INDIAN TRIBES.—The Secretary shall reserve an 

22 appropriate amount of funding to be made available to 

23 carry out this section for each fiscal year to make grants 

24 available to Indian tribes under this section. 

25 (d) STATE ALLOTMENTS.—From the amounts made 

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1 maining after the reservation required under subsection 

2 (c), the Secretary shall make grants available to States 

3 in accordance with section 16. 

4 (e) QUALITY ASSURANCE PROGRAMS.— 

5 (1) IN GENERAL.—A State or Indian tribe may 

6 use a grant made under this section to carry out a 

7 quality assurance program that is— 

8 (A) operated as part of a State energy con9 servation plan established under part D of title 

10 III of the Energy Policy and Conservation Act 

11 (42 U.S.C. 6321 et seq.); 

12 (B) managed by the office or the designee 

13 of the office that is— 

14 (i) responsible for the development of 

15 the plan under section 362 of that Act (42 

16 U.S.C. 6322); and 

17 (ii) to the maximum extent prac18 ticable, conducting an existing energy effi19 ciency program; and 

20 (C) in the case of a grant made to an In21 dian tribe, managed by an entity designated by 

22 the Indian tribe to carry out a quality assur23 ance program or a national quality assurance 

24 program manager. 


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1 (2) NONCOMPLIANCE.—If the Secretary deter2 mines that a State or Indian tribe has not provided 

3 or cannot provide adequate oversight over a quality 

4 assurance program to ensure compliance with this 

5 Act, the Secretary may— 

6 (A) withhold further quality assurance 

7 funds from the State or Indian tribe; and 

8 (B) require that quality assurance pro9 viders operating in the State or by the Indian 

10 tribe be overseen by a national quality assur11 ance program manager selected by the Sec12 retary. 

13 (f) IMPLEMENTATION.—A State or Indian tribe that 

14 receives a grant under this section may implement a qual15 ity assurance program through the State, the Indian tribe, 

16 or a third party designated by the State or Indian tribe, 

17 including— 

18 (1) an energy service company; 

19 (2) an electric utility; 

20 (3) a natural gas utility; 

21 (4) a third-party administrator designated by 

22 the State or Indian tribe; or 

23 (5) a unit of local government. 

24 (g) PUBLIC-PRIVATE PARTNERSHIPS.—A State or 

25 Indian tribe that receives a grant under this section are 


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1 encouraged to form partnerships with utilities, energy 

2 service companies, and other entities— 

3 (1) to assist in marketing a program; 

4 (2) to facilitate consumer financing; 

5 (3) to assist in implementation of the Silver 

6 Star Home Energy Retrofit Program and the Gold 

7 Star Home Energy Retrofit Program, including in8 stallation of qualified energy retrofit measures; and 

9 (4) to assist in implementing quality assurance 

10 programs. 

11 (h) COORDINATION OF REBATE AND EXISTING

12 STATE-SPONSORED PROGRAMS.— 

13 (1) IN GENERAL.—A State or Indian tribe 

14 shall, to the maximum extent practicable, prevent 

15 duplication through coordination of a program au16 thorized under this Act with— 

17 (A) the Energy Star appliance rebates pro18 gram authorized under the American Recovery 

19 and Reinvestment Act of 2009 (Public Law 

20 111–5; 123 Stat. 115); and 

21 (B) comparable programs planned or oper22 ated by States, political subdivisions, electric 

23 and natural gas utilities, Federal power mar24 keting administrations, and Indian tribes. 


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1 (2) EXISTING PROGRAMS.—In carrying out this 

2 subsection, a State or Indian tribe shall— 

3 (A) give priority to— 

4 (i) comprehensive retrofit programs in 

5 existence on the date of enactment of this 

6 Act, including programs under the super7 vision of State utility regulators; and 

8 (ii) using Home Star funds made 

9 available under this Act to enhance and ex10 tend existing programs; and 

11 (B) seek to enhance and extend existing 

12 programs by coordinating with administrators 

13 of the programs. 

14 SEC. 10. QUALITY ASSURANCE FRAMEWORK. 

15 (a) IN GENERAL.—Not later than 180 days after the 

16 date that the Secretary initially provides funds to a State 

17 under this Act, the State shall submit to the Secretary 

18 a plan to implement a quality assurance program that cov19 ers all federally assisted residential efficiency retrofit work 

20 administered, supervised, or sponsored by the State. 

21 (b) IMPLEMENTATION.—The State shall— 

22 (1) develop a quality assurance framework in 

23 consultation with industry stakeholders, including 

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1 tractors, and environmental, energy efficiency, and 

2 labor organizations; and 

3 (2) implement the quality assurance framework 

4 not later than 1 year after the date of enactment of 

5 this Act. 

6 (c) COMPONENTS.—The quality assurance framework 

7 established under this section shall include— 

8 (1) a requirement that contractors be 

9 prequalified in order to be authorized to perform 

10 federally assisted residential retrofit work; 

11 (2) maintenance of a list of prequalified con12 tractors authorized to perform federally assisted res13 idential retrofit work; and 

14 (3) minimum standards for prequalified con15 tractors that include— 

16 (A) accreditation; 

17 (B) legal compliance procedures; 

18 (C) proper classification of employees; 

19 (D) use of a certified workforce; and 

20 (E) maintenance of records needed to 

21 verify compliance; 

22 (4) targets and realistic plans for— 

23 (A) the recruitment of small minority or 

24 women-owned business enterprises; and 


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1 (B) the employment of graduates of train2 ing programs that primarily serve low-income 

3 populations with a median income that is below 

4 200 percent of the poverty line (as defined in 

5 section 673(2) of the Community Services 

6 Block Grant Act (42 U.S.C. 9902(2), including 

7 any revision required by that section)) by par8 ticipating contractors; and 

9 (5) a plan to link workforce training for energy 

10 efficiency retrofits with training for the broader 

11 range of skills and occupations in construction or 

12 emerging clean energy industries. 

13 (d) NONCOMPLIANCE.—If the Secretary determines 

14 that a State has not taken the steps required under this 

15 section, the Secretary shall provide to the State a period 

16 of at least 90 days to comply before suspending the par17 ticipation of the State in the program. 

18 SEC. 11. REPORT. 

19 (a) IN GENERAL.—Not later than 1 year after the 

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

21 to the Committee on Energy and Natural Resources of 

22 the Senate and the Committee on Energy and Commerce 

23 of the House of Representatives a report on the use of 

24 funds under this Act. 


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1 (b) CONTENTS.—The report shall include a descrip2 tion of— 

3 (1) the energy savings produced as a result of 

4 this Act; 

5 (2) the direct and indirect employment created 

6 as a result of the programs supported by the funds 

7 provided under this Act; 

8 (3) the specific entities implementing the en9 ergy efficiency programs; 

10 (4) the beneficiaries who received the efficiency 

11 improvements; 

12 (5) the manner in which funds provided under 

13 this Act were used; 

14 (6) the sources (such as mortgage lenders, util15 ity companies, and local governments) and types of 

16 financing used by the beneficiaries to finance the 

17 retrofit expenses that were not covered by grants 

18 provided under this Act; 

19 (7) the results of verification requirements; and 

20 (8) any other information the Secretary con21 siders appropriate. 

22 (c) NONCOMPLIANCE.—If the Secretary determines 

23 that a rebate aggregator, State, or Indian tribe has not 

24 provided the information required under this section, the 

25 Secretary shall provide to the rebate aggregator, State, or 


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1 Indian tribe a period of at least 90 days to provide any 

2 necessary information, subject to penalties imposed by the 

3 Secretary for entities other than States and Indian tribes, 

4 which may include withholding of funds or reduction of 

5 future grant amounts. 

6 SEC. 12. ADMINISTRATION. 

7 (a) IN GENERAL.—Subject to section 16(b), not later 

8 than 30 days after the date of enactment of this Act, the 

9 Secretary shall provide such administrative and technical 

10 support to rebate aggregators, States, and Indian tribes 

11 as is necessary to carry out the functions designated to 

12 States under this Act. 

13 (b) APPOINTMENT OF PERSONNEL.—Notwith14 standing the provisions of title 5, United States Code, gov15 erning appointments in the competitive service and Gen16 eral Schedule classifications and pay rates, the Secretary 

17 may appoint such professional and administrative per18 sonnel as the Secretary considers necessary to carry out 

19 this Act. 

20 (c) RATE OF PAY.—The rate of pay for a person ap21 pointed under subsection (a) shall not exceed the max22 imum rate payable for GS–15 of the General Schedule 

23 under chapter 53 of title 5, United States Code. 

24 (d) CONSULTANTS.—Notwithstanding section 303 of 

25 the Federal Property and Administrative Services Act of 


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1 1949 (41 U.S.C. 253), the Secretary may retain such con2 sultants on a noncompetitive basis as the Secretary con3 siders necessary to carry out this Act. 

4 (e) CONTRACTING.—In carrying out this Act, the 

5 Secretary may waive all or part of any provision of the 

6 Competition in Contracting Act of 1984 (Public Law 98– 

7 369; 98 Stat. 1175), an amendment made by that Act, 

8 or the Federal Acquisition Regulation on a determination 

9 that circumstances make compliance with the provisions 

10 contrary to the public interest. 

11 (f) REGULATIONS.— 

12 (1) IN GENERAL.—Notwithstanding section 553 

13 of title 5, United States Code, the Secretary may 

14 issue regulations that the Secretary, in the sole dis15 cretion of the Secretary, determines necessary to 

16 carry out the Home Star Retrofit Rebate Program. 

17 (2) DEADLINE.—If the Secretary determines 

18 that regulations described in paragraph (1) are nec19 essary, the regulations shall be issued not later than 

20 60 days after the date of the enactment of this Act. 

21 (g) INFORMATION COLLECTION.—Chapter 35 of title 

22 44, United States Code, shall not apply to any information 

23 collection requirement necessary for the implementation of 

24 the Home Star Retrofit Rebate Program. 


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1 (h) ADJUSTMENT OF REBATE AMOUNTS.—Effective 

2 beginning on the date that is 180 days after the date of 

3 enactment of this Act, the Secretary may adjust the rebate 

4 amounts provided in this section based on— 

5 (1) the use of the Silver Star Home Energy 

6 Retrofit Program and the Gold Star Home Energy 

7 Retrofit Program; and 

8 (2) other program data. 

9 SEC. 13. TREATMENT OF REBATES. 

10 (a) IN GENERAL.—For purposes of the Internal Rev11 enue Code of 1986, rebates received for eligible measures 

12 under this Act— 

13 (1) shall not be considered taxable income to a 

14 homeowner; 

15 (2) shall prohibit the consumer from applying 

16 for a tax credit allowed under section 25C or 25D 

17 of that Code for the same eligible measures per18 formed in the home of the homeowner; and 

19 (3) shall be considered a credit allowed under 

20 section 25C or 25D of that Code for purposes of any 

21 limitation on the amount of the credit under that 

22 section. 

23 (b) NOTICE.— 

24 (1) IN GENERAL.—A participating contractor 

25 shall provide notice to a homeowner of the provisions 


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1 of subsection (a) before eligible work is performed in 

2 the home of the homeowner. 

3 (2) NOTICE IN REBATE FORM.—A homeowner 

4 shall be notified of the provisions of subsection (a) 

5 in the appropriate rebate form developed by the Sec6 retary, in consultation with the Secretary of the 

7 Treasury. 

8 (3) AVAILABILITY OF REBATE FORM.—A par9 ticipating contractor shall obtain the rebate form on 

10 a designated website in accordance with section 

11 3(b)(1)(C). 

12 SEC. 14. PENALTIES. 

13 (a) IN GENERAL.—It shall be unlawful for any per14 son to violate this title (including any regulation issued 

15 under this Act), other than a violation as the result of 

16 a clerical error. 

17 (b) CIVIL PENALTY.—Any person who commits a vio18 lation of this Act shall be liable to the United States for 

19 a civil penalty in an amount that is not more than the 

20 higher of— 

21 (1) $15,000 for each violation; or 

22 (2) 3 times the value of any associated rebate 

23 under this Act. 

24 (c) ADMINISTRATION.—The Secretary may— 


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1 (1) assess and compromise a penalty imposed 

2 under subsection (b); and 

3 (2) require from any entity the records and in4 spections necessary to enforce this Act. 

5 (d) FRAUD.—In addition to any civil penalty, any 

6 person who commits a fraudulent violation of this Act 

7 shall be subject to criminal prosecution. 

8 SEC. 15. HOME STAR ENERGY EFFICIENCY LOAN PROGRAM. 

9 (a) DEFINITIONS.—In this section: 

10 (1) ELIGIBLE PARTICIPANT.—The term ‘‘eligi11 ble participant’’ means a homeowner who receives fi12 nancial assistance from a qualified financing entity 

13 to carry out energy efficiency or renewable energy 

14 improvements to an existing home or other residen15 tial building of the homeowner in accordance with 

16 the Gold Star Home Energy Retrofit Program or 

17 the Silver Star Home Energy Retrofit Program. 

18 (2) PROGRAM.—The term ‘‘program’’ means 

19 the Home Star Energy Efficiency Loan Program es20 tablished under subsection (b). 

21 (3) QUALIFIED FINANCING ENTITY.—The term 

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

23 subdivision of a State, tribal government, electric 

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1 based organization, energy service company, retailer, 

2 or any other qualified entity that— 

3 (A) meets the eligibility requirements of 

4 this section; and 

5 (B) is designated by the Governor of a 

6 State in accordance with subsection (e). 

7 (4) QUALIFIED LOAN PROGRAM MECHANISM.— 

8 The term ‘‘qualified loan program mechanism’’ 

9 means a loan program that is— 

10 (A) administered by a qualified financing 

11 entity; and 

12 (B) principally funded— 

13 (i) by funds provided by or overseen 

14 by a State; or 

15 (ii) through the energy loan program 

16 of the Federal National Mortgage Associa17 tion. 

18 (b) ESTABLISHMENT.—The Secretary shall establish 

19 a Home Star Energy Efficiency Loan Program under 

20 which the Secretary shall make funds available to States 

21 to support financial assistance provided by qualified fi22 nancing entities for making, to existing homes, energy effi23 ciency improvements that qualify under the Gold Star 

24 Home Energy Retrofit Program or the Silver Star Home 

25 Energy Retrofit Program. 


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1 (c) ELIGIBILITY OF QUALIFIED FINANCING ENTI2 TIES.—To be eligible to participate in the program, a 

3 qualified financing entity shall— 

4 (1) offer a financing product under which eligi5 ble participants may pay over time for the cost to 

6 the eligible participant (after all applicable Federal, 

7 State, local, and other rebates or incentives are ap8 plied) of making improvements described in sub9 section (b); 

10 (2) require all financed improvements to be per11 formed by contractors in a manner that meets min12 imum standards that are at least as stringent as the 

13 standards provided under sections 7 and 8; and 

14 (3) establish standard underwriting criteria to 

15 determine the eligibility of program applicants, 

16 which criteria shall be consistent with— 

17 (A) with respect to unsecured consumer 

18 loan programs, standard underwriting criteria 

19 used under the energy loan program of the 

20 Federal National Mortgage Association; or 

21 (B) with respect to secured loans or other 

22 forms of financial assistance, commercially rec23 ognized best practices applicable to the form of 

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1 mined by the designated entity administering 

2 the program in the State). 

3 (d) ALLOCATION.—In making funds available to 

4 States for each fiscal year under this section, the Sec5 retary shall use the formula used to allocate funds to 

6 States to carry out State energy conservation plans estab7 lished under part D of title III of the Energy Policy and 

8 Conservation Act (42 U.S.C. 6321 et seq.). 

9 (e) QUALIFIED FINANCING ENTITIES.—Before mak10 ing funds available to a State under this section, the Sec11 retary shall require the Governor of the State to provide 

12 to the Secretary a letter of assurance that the State— 

13 (1) has 1 or more qualified financing entities 

14 that meet the requirements of this section; 

15 (2) has established a qualified loan program 

16 mechanism that— 

17 (A) includes a methodology to ensure cred18 ible energy savings or renewable energy genera19 tion; 

20 (B) incorporates an effective repayment 

21 mechanism, which may include— 

22 (i) on-utility-bill repayment; 

23 (ii) tax assessment or other form of 

24 property assessment financing; 

25 (iii) municipal service charges; 


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1 (iv) energy or energy efficiency serv2 ices contracts; 

3 (v) energy efficiency power purchase 

4 agreements; 

5 (vi) unsecured loans applying the un6 derwriting requirements of the energy loan 

7 program of the Federal National Mortgage 

8 Association; or 

9 (vii) alternative contractual repayment 

10 mechanisms that have been demonstrated 

11 to have appropriate risk mitigation fea12 tures; and 

13 (C) will provide, in a timely manner, all in14 formation regarding the administration of the 

15 program as the Secretary may require to permit 

16 the Secretary to meet the reporting require17 ments of subsection (h). 

18 (f) USE OF FUNDS.—Funds made available to States 

19 under the program may be used to support financing prod20 ucts offered by qualified financing entities to eligible par21 ticipants for eligible energy efficiency work, by pro22 viding— 

23 (1) interest rate reductions; 

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

25 enhancement; 


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1 (3) revolving loan funds from which qualified fi2 nancing entities may offer direct loans; or 

3 (4) other debt instruments or financial products 

4 necessary— 

5 (A) to maximize leverage provided through 

6 available funds; and 

7 (B) to support widespread deployment of 

8 energy efficiency finance programs. 

9 (g) USE OF REPAYMENT FUNDS.—In the case of a 

10 revolving loan fund established by a State described in 

11 subsection (f)(3), a qualified financing entity may use 

12 funds repaid by eligible participants under the program 

13 to provide financial assistance for additional eligible par14 ticipants to make improvements described in subsection 

15 (b) in a manner that is consistent with this section or 

16 other such criteria as are prescribed by the State. 

17 (h) PROGRAM EVALUATION.—Not later than 1 year 

18 after the date of enactment of this Act, the Secretary shall 

19 submit to Congress a program evaluation that describes— 

20 (1) how many eligible participants have partici21 pated in the program; 

22 (2) how many jobs have been created through 

23 the program, directly and indirectly; 


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1 (3) what steps could be taken to promote fur2 ther deployment of energy efficiency and renewable 

3 energy retrofits; 

4 (4) the quantity of verifiable energy savings, 

5 homeowner energy bill savings, and other benefits of 

6 the program; and 

7 (5) the performance of the programs carried 

8 out by qualified financing entities under this section, 

9 including information on the rate of default and re10 payment. 

11 (i) CREDIT SUPPORT.—Section 1705(a) of the En12 ergy Policy Act of 2005 (42 U.S.C. 16516(a)) is amended 

13 by adding at the end the following: 

14 ‘‘(4) Energy efficiency projects, including 

15 projects to retrofit residential, commercial, and in16 dustrial buildings, facilities, and equipment.’’. 

17 SEC. 16. FUNDING. 

18 (a) AUTHORIZATION OF APPROPRIATIONS.— 

19 (1) IN GENERAL.—Subject to subsection (j), 

20 there is authorized to be appropriated to carry out 

21 this title $6,000,000,000 for the period of each of 

22 fiscal years 2010 through 2012 to remain available 

23 until expended. 

24 (2) MAINTENANCE OF FUNDING.—Funds pro25 vided under this section shall supplement and not 


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1 supplant any Federal and State funding provided to 

2 carry out energy efficiency programs in existence on 

3 the date of enactment of this Act. 

4 (b) GRANTS TO STATES.— 

5 (1) IN GENERAL.—Of the amount provided 

6 under subsection (a), $380,000,000 or not more 

7 than 6 percent, whichever is less, shall be used to 

8 carry out section 9. 

9 (2) DISTRIBUTION TO STATE ENERGY OF10 FICES.— 

11 (A) IN GENERAL.—Not later than 30 days 

12 after the date of enactment of this Act, the Sec13 retary shall— 

14 (i) provide to State energy offices 25 

15 percent of the funds described in para16 graph (1); and 

17 (ii) determine a formula to provide 

18 the balance of funds to State energy offices 

19 through a performance-based system. 

20 (B) ALLOCATION.— 

21 (i) ALLOCATION FORMULA.—Funds 

22 described in subparagraph (A)(i) shall be 

23 made available in accordance with the allo24 cation formula for State energy conserva25 tion plans established under part D of title 


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1 III of the Energy Policy and Conservation 

2 Act (42 U.S.C. 6321 et seq.). 

3 (ii) PERFORMANCE-BASED SYSTEM.— 

4 The balance of the funds described in sub5 paragraph (A)(ii) shall be made available 

6 in accordance with the performance-based 

7 system described in subparagraph (A)(ii). 

8 (c) QUALITY ASSURANCE COSTS.— 

9 (1) IN GENERAL.—Of the amount provided 

10 under subsection (a), not more than 5 percent shall 

11 be used to carry out the quality assurance provisions 

12 of this Act. 

13 (2) MANAGEMENT.—Funds provided under this 

14 subsection shall be overseen by— 

15 (A) State energy offices described in sub16 section (b)(2); or 

17 (B) other entities determined by the Sec18 retary to be eligible to carry out quality assur19 ance functions under this Act. 

20 (3) DISTRIBUTION TO QUALITY ASSURANCE

21 PROVIDERS OR REBATE AGGREGATORS.—The Sec22 retary shall use funds provided under this subsection 

23 to compensate quality assurance providers, or rebate 

24 aggregators, for services under the Silver Star Home 

25 Energy Retrofit Program or the Gold Star Home 


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1 Energy Retrofit Program through the Federal Re2 bate Processing Center based on the services pro3 vided to contractors under a quality assurance pro4 gram and rebate aggregation. 

5 (4) INCENTIVES.—The amount of incentives 

6 provided to quality assurance providers or rebate 

7 aggregators shall be— 

8 (A)(i) in the case of the Silver Star Home 

9 Energy Retrofit Program— 

10 (I) $25 per rebate review and submis11 sion provided under the program; and 

12 (II) $150 for each field inspection 

13 conducted under the program; and 

14 (ii) in the case of the Gold Star Home En15 ergy Retrofit Program— 

16 (I) $35 for each rebate review and 

17 submission provided under the program; 

18 and 

19 (II) $300 for each field inspection 

20 conducted under the program; or 

21 (B) such other amounts as the Secretary 

22 considers necessary to carry out the quality as23 surance provisions of this Act. 

24 (d) TRACKING OF REBATES AND EXPENDITURES.— 

25 Of the amount provided under subsection (a), not more 


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1 than $150,000,000 shall be used for costs associated with 

2 database systems to track rebates and expenditures under 

3 this Act and related administrative costs incurred by the 

4 Secretary. 

5 (e) PUBLIC EDUCATION AND COORDINATION.—Of 

6 the amount provided under subsection (a), not more than 

7 $10,000,000 shall be used for costs associated with public 

8 education and coordination with the Federal Energy Star 

9 program incurred by the Administrator. 

10 (f) INDIAN TRIBES.—Of the amount provided under 

11 subsection (a), the Secretary shall reserve not more than 

12 3 percent to make grants available to Indian tribes under 

13 this section. 

14 (g) SILVER STAR HOME ENERGY RETROFIT PRO15 GRAM.—In the case of the Silver Star Home Energy Ret16 rofit Program, of the amount provided under subsection 

17 (a) after funds are provided in accordance with sub18 sections (b) through (e), $3,417,000,000 for the 1-year 

19 period beginning on the date of enactment of this Act (less 

20 any amounts required under subsection (f)) shall be used 

21 by the Secretary to provide rebates and incentives author22 ized under the Silver Star Home Energy Retrofit Pro23 gram. 

24 (h) GOLD STAR HOME ENERGY RETROFIT PRO25 GRAM.—In the case of the Gold Star Home Energy RetVerDate Nov 24 2008 03:51 Mar 26, 2010 Jkt 089200 PO 00000 Frm 00056 Fmt 6652 Sfmt 6201 E:\BILLS\S3177.IS S3177

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1 rofit Program, of the amount provided under subsection 

2 (a) after funds are provided in accordance with sub3 sections (b) through (e), $1,683,000 for the 2-year period 

4 beginning on the date of enactment of this Act (less any 

5 amounts required under subsection (f)) shall be used by 

6 the Secretary to provide rebates and incentives authorized 

7 under the Gold Star Home Energy Retrofit Program. 

8 (i) PROGRAM REVIEW AND BACKSTOP FUNDING.— 

9 (1) IN GENERAL.—Not later than 180 days 

10 after the date of enactment of this Act, the Sec11 retary shall perform a State-by-State analysis and 

12 review the distribution of Home Star retrofit rebates 

13 under this Act. 

14 (2) ADJUSTMENT.—The Secretary may allocate 

15 technical assistance funding to assist States that 

16 have not sufficiently benefitted from the Home Star 

17 Retrofit Rebate Program. 

18 (j) RETURN OF UNDISBURSED FUNDS.— 

19 (1) SILVER STAR HOME ENERGY RETROFIT

20 PROGRAM.—If the Secretary has not disbursed all 

21 the funds available for rebates under the Silver Star 

22 Home Energy Retrofit Program by the date that is 

23 1 year after the date of enactment of this Act, any 

24 undisbursed funds shall be made available to the 

25 Gold Star Home Energy Retrofit Program. 


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1 (2) GOLD STAR HOME ENERGY RETROFIT PRO2 GRAM.—If the Secretary has not disbursed all the 

3 funds available for rebates under the Gold Star 

4 Home Energy Retrofit Program by the date that is 

5 2 years after the date of enactment of this Act, any 

6 undisbursed funds shall be returned to the Treasury. 

7 (k) FINANCING.—Of the amounts allocated to the 

8 States under subsection (b), not less than $200,000,000 

9 shall be used to carry out the financing provisions of this 

10 Act in accordance with section 15. 

Æ 


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