efficiency tax incentives enacted in subtitle C of the En-
ergy Tax Incentives Act of 2005 that includes an analysis 
of the rate of participation with respect to such tax incen-
tives and recommendations for additional measures that 
could be taken to increase the rate of participation. 
(b) REPORT.—Not later than 1 year after the date 
of enactment of this Act, the Secretary of Energy shall 
transmit to Congress a report on the results of the study 
conducted pursuant to subsection (a). 
SEC. 7. ENERGY EFFICIENT APPLIANCE REBATE PRO-
GRAMS. 
Section 124(f) of the Energy Policy Act of 2005 (42 
U.S.C. 15821(f)) is amended by striking ‘‘2010’’ and in-
serting ‘‘2015’’. 
SEC. 8. SOLAR ENERGY SYSTEMS BUILDING PERMIT RE-
QUIREMENTS FOR RECEIPT OF COMMUNITY 
DEVELOPMENT BLOCK GRANT FUNDS. 
Section 104 of the Housing and Community Develop-
ment Act of 1974 (42 U.S.C. 5304) is amended by adding 
at the end the following new subsection: 
‘‘(n) REQUIREMENTS FOR BUILDING PERMITS RE-
GARDING SOLAR ENERGY SYSTEMS.— 
‘‘(1) IN GENERAL.—A grant under section 106 
for a fiscal year may be made only if the grantee 
certifies to the Secretary that— 
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‘‘(A) in the case of a grant under section 
106(a) for any Indian tribe or insular area, 
during such fiscal year the cost of any permit 
or license, for construction or installation of any 
solar energy system for any structure, that is 
required by the tribe or insular area or by any 
other unit of general local government or other 
political subdivision of such tribe or insular 
area, complies with paragraph (2); 
‘‘(B) in the case of a grant under section 
106(b) for any metropolitan city or urban coun-
ty, during such fiscal year the cost of any per-
mit or license, for construction or installation of 
any solar energy system for any structure, that 
is required by the metropolitan city or urban 
county, or by any other political subdivision of 
such city or county, complies with paragraph 
(2); and 
‘‘(C) in the case of a grant under section 
106(d) for any State, during such fiscal year 
the cost of any permit or license, for construc-
tion or installation of any solar energy system 
for any structure, that is required by the State, 
or by any other unit of general local govern-
ment within any nonentitlement area of such 
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State, or other political subdivision within any 
nonentitlement area of such State or such a 
unit of general local government, complies with 
paragraph (2). 
‘‘(2) LIMITATION ON COST.—The cost of permit 
or license for construction or installation of any 
solar energy system complies with this paragraph 
only if such cost does not exceed the following 
amount: 
‘‘(A) RESIDENTIAL STRUCTURES.—In the 
case of a structure primarily for residential use, 
$500. 
‘‘(B) NONRESIDENTIAL STRUCTURES.—In 
the case of a structure primarily for nonresiden-
tial use, 1.0 percent of the total cost of the in-
stallation or construction of the solar energy 
system. 
‘‘(3) NONCOMPLIANCE.—If the Secretary deter-
mines that a grantee of a grant made under section 
106 is not in compliance with a certification under 
paragraph (1)— 
‘‘(A) the Secretary shall notify the grantee 
of such determination; and 
‘‘(B) if the grantee has not corrected such 
noncompliance before the expiration of the 6- 
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month period beginning upon notification under 
subparagraph (A), such grantee shall not be eli-
gible for a grant under section 106 for the first 
fiscal year that commences after the expiration 
of such 6-month period. 
‘‘(4) SOLAR ENERGY SYSTEM.—For purposes of 
this subsection, the term ‘solar energy system’ 
means, with respect to a structure, equipment that 
uses solar energy to generate electricity for, or to 
heat or cool (or provide hot water for use in), such 
structure.’’. 
SEC. 9. PROHIBITION OF RESTRICTIONS ON RESIDENTIAL 
INSTALLATION OF SOLAR ENERGY SYSTEM. 
(a) REGULATIONS.—Within 180 days after the enact-
ment of this Act, the Secretary of Housing and Urban 
Development, in consultation with the Secretary of En-
ergy, shall issue regulations— 
(1) to prohibit any private covenant, contract 
provision, lease provision, homeowners’ association 
rule or bylaw, or similar restriction, that impairs the 
ability of the owner or lessee of any residential 
structure designed for occupancy by one family to 
install, construct, maintain, or use a solar energy 
system on such residential property; and 
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(2) to require that whenever any such covenant, 
provision, rule or bylaw, or restriction requires ap-
proval for the installation or use of a solar energy 
system, the application for approval shall be proc-
essed and approved by the appropriate approving en-
tity in the same manner as an application for ap-
proval of an architectural modification to the prop-
erty, and shall not be willfully avoided or delayed. 
(b) CONTENTS.—Such regulations shall provide 
that— 
(1) such a covenant, provision, rule or bylaw, or 
restriction impairs the installation, construction, 
maintenance, or use of a solar energy system if it— 
(A) unreasonably delays or prevents instal-
lation, maintenance, or use; 
(B) unreasonably increases the cost of in-
stallation, maintenance, or use; or 
(C) precludes use of such a system; and 
(2) any fee or cost imposed on the owner or les-
see of such a residential structure by such a cov-
enant, provision, rule or bylaw, or restriction shall 
be considered unreasonable if— 
(A) such fee or cost is not reasonable in 
comparison to the cost of the solar energy sys-
tem or the value of its use; or 
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