SEC. 2. DEFINITIONS. 
In this Act: 
(1) HOME ENERGY AUDIT.—The term ‘‘home 
energy audit’’ means any process that identifies and 
specifies the energy and cost savings that are likely 
to be realized through the implementation, acquisi-
tion, and installation of energy savings improve-
ments to a residential property. 
(2) QUALIFIED
HOME
ENERGY
AUDIT.—The 
term ‘‘qualified home energy audit’’ means an en-
ergy audit that complies with the procedures and 
techniques under section 5(a)(2). 
(3) RENEWABLE ENERGY MEASURE.—The term 
‘‘renewable energy measure’’ means the appropriate 
installation and use of solar, wind, geothermal, fuel 
cell, biomass, battery storage, and other applicable 
renewable technologies, as determined by the Sec-
retary. 
(4) CERTIFIED
ENERGY
SAVINGS
IMPROVE-
MENT.—The term ‘‘certified energy savings improve-
ment’’ means an energy efficiency improvement or 
renewable energy measure that meets the require-
ments under section 5(a)(3). 
(5) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Energy. 
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(6) REVOLVING FUND.—The term ‘‘Revolving 
Fund’’ means the National Home Energy Savings 
Revolving Fund established under section 3(a). 
(7) UNIT OF GENERAL LOCAL GOVERNMENT.— 
The term ‘‘unit of general local government’’ means 
any general purpose political subdivision of a State 
that has the power to levy taxes and spend funds, 
as well as general corporate and police powers. 
SEC. 3. NATIONAL HOME ENERGY SAVINGS REVOLVING 
FUND. 
(a) ESTABLISHMENT.—There is established within 
the Department of Energy a revolving fund, to be known 
as the ‘‘National Home Energy Savings Revolving Fund’’. 
(b) EXPENDITURES.—Any amounts in the Revolving 
Fund may be used without fiscal year limitation to provide 
funds to units of general local government in accordance 
with section 4 for use in making loans to homeowners pur-
suant to section 5(a). 
(c) CREDITS.— 
(1) CAPITALIZATION
AUTHORIZATION.—There 
are authorized to be appropriated to the Revolving 
Fund $5,000,000,000 for each of fiscal years 2010 
and 2011. 
(2) REPAYMENT
AMOUNTS.—The Revolving 
Fund shall be credited with amounts received by the 
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Secretary from a unit of general local government 
equal to loan repayment amounts due to be repaid 
by homeowners to whom loans are made pursuant to 
section 5(a). 
SEC. 4. FUNDING TO UNITS OF GENERAL LOCAL GOVERN-
MENT. 
(a) APPLICATION.—To be eligible to receive funds 
under this Act, a unit of general local government shall 
submit to the Secretary an application at such time, in 
such manner, and containing such information as the Sec-
retary may require, which information shall include a de-
scription of the method required by section 5(c) for mak-
ing payments due under the loan. 
(b) AMOUNTS.— 
(1) ALLOCATION.—Subject to the limitation 
under paragraph (2), the Secretary, in each fiscal 
year, shall provide for the allocation of amounts 
available in the Revolving Fund to units of general 
local government eligible to receive such amounts 
based on need among such units of general local 
government for amounts for loans to homeowners 
pursuant to section 5(a). 
(2) LIMITATION.—In any fiscal year, the aggre-
gate amount provided from the Revolving Fund to a 
single unit of general local government may not ex-
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ceed 2 percent of the total amount available in the 
Revolving Fund for such fiscal year. 
(c) REPAYMENT.— 
(1) HOMEOWNER.—A unit of general local gov-
ernment that receives funds under this Act shall re-
quire full repayment of each loan made to a home-
owner pursuant to section 5(a). 
(2) UNIT OF GENERAL LOCAL GOVERNMENT.— 
Not later than 120 days after the deadline imposed 
by a unit of general local government for repayment 
by homeowners of loans made pursuant to section 
5(a) in the manner provided by section 5(c), such 
unit of general local government shall transfer to the 
Secretary amounts due to be repaid, notwithstanding 
any default on the part of the homeowner. 
SEC. 5. LOANS TO HOMEOWNERS FOR QUALIFIED HOME 
ENERGY AUDITS AND CERTIFIED ENERGY 
SAVINGS IMPROVEMENTS. 
(a) LOANS TO HOMEOWNERS.— 
(1) IN GENERAL.—A unit of general local gov-
ernment that receives funds under this Act shall use 
such funds only to provide loans to homeowners for 
the costs of one or more of the following: 
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(A) Conducting a qualified home energy 
audit (or a qualified home energy audit pre-
viously conducted). 
(B) The implementation of any certified 
energy savings improvement. 
(C) The acquisition of any certified energy 
savings improvement. 
(D) The installation of any certified energy 
savings improvement. 
(2) HOME
ENERGY
AUDIT
PROCEDURES
AND 
TECHNIQUES.—The Secretary shall establish proce-
dures and techniques for home energy audits that— 
(A) meet standards established by the Sec-
retary after consultation with the State Energy 
Advisory 
Board 
established 
under 
section 
365(g) of the Energy and Policy Conservation 
Act (42 U.S.C. 6325(g)); 
(B) establish priorities for selection of en-
ergy savings improvements based on their cost- 
effectiveness, payback period, and contribution 
to energy savings; 
(C) measure the energy requirement of in-
dividual dwellings and the rate of return of the 
total energy savings investment in a dwelling; 
and 
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(D) account for interaction among energy 
savings measures. 
(3) CERTIFIED
ENERGY
SAVINGS
IMPROVE-
MENTS.—Loan funds may be used by homeowners 
under this section for the implementation, acquisi-
tion, or installation of an energy efficiency improve-
ment or renewable energy measure only if such im-
provement or measure— 
(A) has been determined, by means of a 
qualified home energy audit, to improve the ef-
ficiency of energy use and to reduce energy 
costs (as calculated on the basis of energy costs 
projected over time); and 
(B) such determination is set forth in a 
written report regarding such audit— 
(i) listing energy savings improve-
ments in order of cost-effectiveness, pay-
back period, and contribution to energy 
savings; and 
(ii) prepared and signed by the person 
conducting such audit. 
(b) ELIGIBLE HOMEOWNERS.—To be eligible to re-
ceive a loan from a unit of general local government under 
this section, a homeowner shall submit to such unit of gen-
eral local government an application at such time, in such 
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manner, and containing such information as such unit of 
general local government may require. 
(c) PAYMENT IN CONNECTION WITH PROPERTY TAX 
PAYMENT.—A unit of general local government that re-
ceives funds under this Act shall establish a method by 
which a homeowner to whom a loan is made pursuant to 
section 5(a) may make payments due under such loan in 
connection with any payments submitted for any property 
tax assessed or collected by such unit of general local gov-
ernment. 
(d) REPAYMENT TERMS.—A unit of general local 
government that receives funds under this Act shall estab-
lish terms for repayment of loans made pursuant to sec-
tion 5(a) that comply with subsection (e) and meet the 
following goals in the following order of priority: 
(1) The terms shall provide that, on an annual 
basis, the aggregate amount of payments due on a 
loan shall be less than the aggregate amount of sav-
ings achieved by implementation, acquisition, or in-
stallation of certified energy savings improvements 
financed under the loan. 
(2) The terms shall provide that homeowners 
shall make repayments of such loans in such 
amounts as are necessary to minimize costs to the 
Revolving Fund established under section 3(a) and 
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that any such repayments shall be transferred to the 
Secretary and credited to such Fund. 
(e) LOAN MATURITY AND INTEREST.—A loan under 
this section shall have a term to maturity of not more than 
15 years and shall not bear interest. 
(f) LOAN AMOUNT LIMITATIONS.—The total amount 
of all loans made pursuant to section 5(a) from a unit 
of general local government to a single homeowner may 
not exceed $10,000, except that a unit of general local 
government, in its discretion, may establish a loan amount 
limitation in a lesser amount. 
(g) PRINCIPAL RESIDENCE REQUIREMENT.—A unit 
of general local government may make a loan under this 
section only if such loan will be used for eligible purposes 
under subsection (a) with respect to the principal resi-
dence of the homeowner who is the borrower. 
(h) INFORMATION REQUIREMENT.—A unit of general 
local government that receives funds under this Act, in 
accordance with such standards as the Secretary shall es-
tablish, shall make available to homeowners information 
about loans available pursuant to section 5(a) including— 
(1) a description of the eligible purposes for 
which a loan may be used; 
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(2) a list of home energy auditors in the area 
that are certified to perform qualified home energy 
audits; and 
(3) repayment procedures and terms established 
in accordance with subsection (d), including repay-
ment procedures and terms if a loan is provided only 
for the costs of conducting a qualified home energy 
audit. 
SEC. 6. REPORTS TO THE SECRETARY. 
For each year any loan made by a unit of general 
local government pursuant to section 5(a) is outstanding, 
such unit of general local government shall submit to the 
Secretary a report describing the use of funds from the 
Revolving Fund, identifying the number of loans provided 
under this Act, the repayment rate of the loans, the de-
fault rate of the loans, and any other information the Sec-
retary determines to be appropriate. 
Æ 
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