Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. HOME STAR ENERGY EFFICIENCY LOAN PRO-
GRAM. 
(a) DEFINITIONS.—In this section: 
(1) ELIGIBLE PARTICIPANT.—The term ‘‘eligi-
ble participant’’ means a homeowner with a gross 
annual household income of less than $250,000 who 
receives financial assistance from a qualified financ-
ing entity to carry out qualifying energy savings 
measures pursuant to this section, and who is not 
also a qualified consumer under section 2. A home-
owner may not qualify as an eligible participant if 
the homeowner has been more than 6 months delin-
quent in child support payments. 
(2) QUALIFIED FINANCING ENTITY.—The term 
‘‘qualified financing entity’’ means a State, political 
subdivision of a State, tribal government, electric 
utility, natural gas utility, nonprofit organization, 
energy service company, retailer, or any other entity 
that— 
(A) meets the eligibility requirements of 
this section; 
(B) is not an entity that has an ongoing 
capital repayment obligation to the Department
of the Treasury pursuant to the Troubled Asset 
Relief Program (Public Law 110–343, 122
Stat.
3765); and 
(C) is designated by the Governor of a 
State in accordance with subsection (f)(1), 
except that an entity that is an eligible entity under 
section 2 shall not be a qualified financing entity. 
(3) QUALIFIED LOAN PROGRAM MECHANISM.— 
The term ‘‘qualified loan program mechanism’’ 
means a mechanism for the establishment and oper-
ation of a loan program that is— 
(A) administered by a qualified financing 
entity; and 
(B) funded in significant part— 
(i) by funds provided by or overseen 
by a State; or 
(ii) through the energy loan program 
of the Federal National Mortgage Associa-
tion. 
(4) QUALIFYING ENERGY SAVINGS MEASURE.— 
The term ‘‘qualifying energy savings measure’’ 
means a measure listed under subsection (c)(1) or 
(2) or stipulated in a whole-house analysis under 
subsection (c)(3).
(b) ESTABLISHMENT.—The Secretary of Energy 
shall establish a Home Star Energy Efficiency Loan Pro-
gram under which the Secretary of Energy shall offer 
loans at zero percent interest to States to support finan-
cial assistance provided by qualified financing entities for 
the installation of qualifying energy savings measures. 
(c) ENERGY EFFICIENCY MEASURES AND STAND-
ARDS.—The Secretary of Energy, in consultation with the 
Secretary of Agriculture, shall publish— 
(1) not later than 90 days after the date of en-
actment of this Act, a master list of residential en-
ergy efficiency measures determined to be cost-effec-
tive, readily available from commercial sources, to be 
permanently installed in a primary residence, and 
capable of supporting measurement and verification 
of the energy savings that results from their adop-
tion, but which shall not include the installation or 
replacement of pool heaters or the installation of 
Energy Star televisions; 
(2) additions to such a list, approved by the 
Secretary of Energy, of other residential energy effi-
ciency measures that are— 
(A) recommended by the Secretary of Agri-
culture;
(B) calculated to achieve sufficient energy 
savings that they will achieve a simple payback 
within 10 years or less; and 
(C) permanently installed in a primary res-
idence; 
(3) specifications for whole-house energy per-
formance analyses simulating energy use before and 
after a retrofit utilizing measures from the master 
list published pursuant to paragraphs (1) and (2) 
and such other permanent structural measures as 
can be demonstrated, when installed and operated as 
intended, to improve residential energy efficiency in 
a manner that can be determined with confidence to 
be cost-effective and to recover their own cost in en-
ergy cost savings within the term of a proposed loan; 
and 
(4) a protocol for measurement and verification 
of the energy savings that have resulted from any 
and all energy efficiency measures taken with re-
spect to a residence and financed in whole or in part 
pursuant to this title. In determining which residen-
tial energy efficiency measures to include in the list 
published under paragraph (1) or (2), the Secretary 
of Energy, in consultation with the Secretary of Ag-
riculture, shall consider advanced performance initia-
tives, such as the Passive House Standard as cer-
tified by the Passive House Institute US. 
(d) ELIGIBILITY OF QUALIFIED FINANCING ENTI-
TIES.—To be eligible to participate in the Home Star 
Loan Program, a qualified financing entity shall— 
(1) offer a financing product under which eligi-
ble participants may pay over time for the cost to 
the eligible participant (after all applicable Federal, 
State, local, and other rebates or incentives are ap-
plied) of installations described in subsection (b); 
(2) require all financed installations to be per-
formed by contractors in a manner that meets build-
ing code requirements and other appropriate min-
imum standards; 
(3) establish standard underwriting criteria to 
determine the eligibility of Home Star Loan Pro-
gram applicants, which criteria shall be consistent 
with— 
(A) with respect to unsecured consumer 
loan programs, standard underwriting criteria 
used under the energy loan program of the 
Federal National Mortgage Association; or 
(B) with respect to secured loans or other 
forms of financial assistance, commercially rec-
ognized best practices applicable to the form of
financial assistance being provided (as deter-
mined by the designated entity administering 
the Home Star Loan Program in the State); 
and 
(4) undertake particular efforts, consistent with 
paragraph (3), to make such loans available in pub-
lic use microdata areas that have a poverty rate of 
12 percent or more in a proportion of total loans 
made at least equal to the proportion the number of 
residents in such areas bears to the total population 
of the area served by that qualified financing entity. 
(e) ALLOCATION.—In allocating 75 percent of the 
loan funds made available to States for each fiscal year 
under this section, the Secretary of Energy shall use the 
formula used to allocate funds to States to carry out State 
energy conservation plans established under part D of title 
III of the Energy Policy and Conservation Act (42 U.S.C. 
6321 et seq.), with appropriate modifications to reflect the 
funds to be provided in States for loans under section 2. 
In allocating the remaining 25 percent of the loan funds 
made available to States for each fiscal year under this 
section, the Secretary of Energy may vary the result of 
the formula to recognize and reward those States that 
make the best progress in providing loans to low-income 
areas pursuant to subsection (d)(4).
(f) QUALIFIED FINANCING ENTITIES.—Before mak-
ing funds available to a State under this section, the Sec-
retary of Energy shall require the Governor of the State 
to provide to the Secretary of Energy a letter of agreement 
that the State— 
(1) will use the funds provided pursuant to this 
section solely as provided in this section; 
(2) will use the funds provided under this sec-
tion to supplement and not supplant any prior or 
planned Federal and State funding provided to carry 
out energy efficiency programs, on the condition 
that, to the extent the Secretary finds that a State 
has supplanted other such programs with funding 
under this section, the Secretary may with hold an 
equivalent amount of funding from allocations for 
the State under this section; 
(3) has 1 or more qualified financing entities 
that meet the requirements of this section; 
(4) has established, or has required its des-
ignated qualified financing entities to establish, a 
qualified loan program mechanism that— 
(A) will use a quality assurance program 
or another appropriate methodology to ensure 
energy savings;
(B) incorporates an effective repayment 
mechanism, which may include— 
(i) on-utility-bill repayment; 
(ii) tax assessment or other form of 
property assessment financing; 
(iii) municipal service charges; 
(iv) energy or energy efficiency serv-
ices contracts; 
(v) energy efficiency power purchase 
agreements; 
(vi) unsecured loans applying the un-
derwriting requirements of the energy loan 
program of the Federal National Mortgage 
Association; or 
(vii) alternative contractual repayment 
mechanisms that have been demonstrated 
to have appropriate risk mitigation fea-
tures; 
(5) will provide, in a timely manner, all infor-
mation regarding the administration of the Home 
Star Loan Program as the Secretary of Energy may 
require to permit the Secretary of Energy to meet 
program evaluation requirements; and 
(6) will commit to the full repayment of the 
loaned funds to the Secretary of Energy by a date
not later than 20 years from the date of the loan 
closing. 
(g) USE OF FUNDS.—Funds made available to States 
for carrying out the Home Star Loan Program may be 
used to support financing mechanisms offered by qualified 
financing entities to eligible participants, including— 
(1) interest rate reductions to interest rates as 
low as zero percent; 
(2) loan loss reserves or other forms of credit 
enhancement; 
(3) revolving loan funds from which qualified fi-
nancing entities may offer direct loans; or 
(4) other debt instruments necessary— 
(A) to use available funds to obtain appro-
priate leverage through private investment; and 
(B) to support widespread deployment of 
energy efficiency programs. 
(h) ADMINISTRATIVE COSTS.—A State may permit a 
qualified financing entity to charge interest of 3 percent 
to cover the costs of loan administration and personnel 
and program management, or for establishing a loan loss 
reserve. 
(i) REPORTING REQUIREMENTS.—The Secretary of 
Energy shall report to the Congress on the implementation 
of this title, including the energy savings and cost savings
estimated to be achieved, not later than 1 year after the 
date of enactment of this Act, and again by not later than 
2 years after the date of enactment of this section. The 
Secretary of Energy shall also include a detailed account-
ing of any waste, fraud, or abuse occurring in the adminis-
tration of this Act in such reports. 
(j) ASSESSMENT BY GOVERNMENT ACCOUNTABILITY 
OFFICE.—The Comptroller General shall, by not later 
than 18 months after the date of enactment of this Act, 
prepare and submit to the Congress an analysis and report 
determining— 
(1) the actual taxpayer funds made available 
for the program created in this section; 
(2) the actual amounts of such funds made 
available to eligible participants or qualified con-
sumers in the program created in this section; 
(3) the extent of measured and verified residen-
tial energy savings achieved and expected to be 
achieved on an ongoing basis as a function of this 
program; 
(4) the extent to which funds made available 
were expended for training, administration, program 
support by contractors, or trade association activities 
under this program;
(5) the consistency and rigor of the standards 
for energy efficiency and for measurement and 
verification adopted and implemented by this pro-
gram; and 
(6) the extent to which any waste, fraud, or 
abuse occurred under this program. 
(k) AUTHORIZATION.—There are authorized to be ap-
propriated for purposes of this section, provided that en-
actment of this Act would not increase direct spending, 
$850,000,000 for each of fiscal years 2010 through 2014, 
which shall remain available until expended. 
SEC. 2. RURAL ENERGY SAVINGS PROGRAM. 
(a) DEFINITIONS.—In this section: 
(1) ELIGIBLE ENTITY.—The term ‘‘eligible enti-
ty’’ means— 
(A) any public or cooperative electric util-
ity that is eligible to borrow from the Rural 
Utilities Service electrification program author-
ized under the Rural Electrification Act of 
1936 (7 U.S.C. 901 et seq.) that serves a rural 
area; 
(B) any current borrower of the Rural 
Utilities Service electrification program author-
ized under that Act; or
(C) any entity primarily owned or con-
trolled by an entity described in subparagraph 
(A) or (B). 
(2) ENERGY EFFICIENCY MEASURE.—The term 
‘‘energy efficiency measure’’, with respect to prop-
erty served by an eligible entity, means a fixed struc-
tural improvement and investment in a cost-effec-
tive, commercial off-the-shelf technology to reduce 
residential energy use that is either— 
(A) included in the master list published 
under section 1(c)(1) and (2); or 
(B) stipulated in a whole-house simulation 
conducted pursuant to section 1(c)(3). 
(3) FARM
EFFICIENCY
MEASURE.—The term 
‘‘farm efficiency measure’’ means an energy saving 
application that is a fixed improvement installed in 
or attached to a building or structure on a farm at 
a total loan value for that farm of $50,000 or less, 
that is not otherwise an energy efficiency measure, 
and that would achieve energy savings sufficient to 
repay the cost of the measure in 10 years or fewer. 
(4) QUALIFIED CONSUMER.—The term ‘‘quali-
fied consumer’’ means a consumer served by an eli-
gible entity that has the ability to repay a loan made 
under subsection (d), as determined by an eligible
entity, and who has not accepted any loan as an eli-
gible participant pursuant to section 1. 
(5) QUALIFIED ENTITY.—The term ‘‘qualified 
entity’’ means any organization that the Secretary of 
Agriculture determines has significant experience in 
providing eligible entities with— 
(A) advice on energy, environmental, en-
ergy efficiency, and information research and 
technology; 
(B) training, education, and consulting; 
(C) guidance in energy and operational 
issues and rural community and economic de-
velopment; and 
(D) other relevant assistance, as deter-
mined by the Secretary of Agriculture. 
(6) RURAL
AREA.—The term ‘‘rural area’’ 
means any area other than— 
(A) a city or town that has a population of 
greater than 50,000 inhabitants; and 
(B) any urbanized area contiguous and ad-
jacent to a city or town described in subpara-
graph (A). 
(b) ESTABLISHMENT.—The Secretary of Agriculture, 
acting through the Rural Utility Service, shall establish 
the Rural Star Energy Savings Program for the purpose
of making loans to eligible entities that agree to accept 
the loan funds authorized pursuant to this section to make 
loans to qualified consumers for the purpose of imple-
menting residential energy efficiency measures or farm ef-
ficiency measures approved by the Secretary of Agri-
culture. 
(c) LOANS TO ELIGIBLE ENTITIES.— 
(1) LOANS
AUTHORIZED.—Subject to para-
graph (2), the Secretary of Agriculture shall make 
loans to an eligible entity that agrees that the loan 
funds will be used to make loans to qualified con-
sumers as described in subsection (d) for the pur-
pose of implementing one or more energy efficiency 
measures, or a farm efficiency measure in response 
to an application by an eligible entity. 
(2) LIST, 
PLAN, 
AND
MEASUREMENT
AND 
VERIFICATION REQUIRED.— 
(A) IN GENERAL.—As a condition to re-
ceiving a loan under paragraph (1), an eligible 
entity shall— 
(i) establish a list of energy efficiency 
measures or farm efficiency measures ex-
pected to decrease energy use or costs of a 
qualified consumer from the master list 
published under section 1(c)(1) and (2);
(ii) establish a procedure to identify to 
the Secretary of Agriculture any specific 
farm efficiency measures for which the eli-
gible entity seeks authority to make a loan; 
(iii) prepare an implementation plan 
for use of the loan funds to ensure that a 
loan to a qualified consumer is for energy 
efficiency investments that will achieve sav-
ings sufficient to service the loan during 
the term of the loan; and 
(iv) provide for appropriate measure-
ment and verification as prescribed by the 
Secretary of Agriculture to ensure the ac-
tual use and effectiveness of the energy ef-
ficiency loans made by the eligible entity. 
(B) REVISION OF LIST OF ENERGY EFFI-
CIENCY MEASURES.—An eligible entity may up-
date the list required under subparagraph 
(A)(I) to account for efficiency technologies 
added to the master list published under section 
1(c)(1) pursuant to section 1(c)(2), or farm ef-
ficiency measures approved by the Secretary of 
Agriculture. 
(C) EXISTING ENERGY EFFICIENCY PRO-
GRAMS.—An eligible entity that, on or before
the date of the enactment of this Act, has al-
ready established an energy efficiency program 
for qualified consumers may submit an existing 
list of energy efficiency measures or farm effi-
ciency measures, implementation plans, or 
measurement and verification systems to satisfy 
the requirements of subparagraph (A) to the 
Secretary of Agriculture and may use such list 
until and unless such list is inconsistent with 
the measures published pursuant to section 
1(c)(1) and (2). 
(3) LOAN TERMS FOR LOANS TO ELIGIBLE EN-
TITIES.— 
(A) NO INTEREST.—A loan made to an eli-
gible entity under paragraph (1) shall bear no 
interest. 
(B) REPAYMENT.—With respect to a loan 
under paragraph (1)— 
(i) the term shall not exceed 20 years 
from the date the loan is closed; and 
(ii) except as provided in subpara-
graph (D), the repayment of each advance 
shall be amortized for a period not to ex-
ceed 10 years.
(C) AMOUNT OF ADVANCES.—Any advance 
of loan funds to an eligible entity in any single 
year shall not exceed 30 percent of the ap-
proved loan amount. 
(D) SPECIAL ADVANCE FOR START-UP AC-
TIVITIES.— 
(i) IN GENERAL.—In order to assist 
an eligible entity in defraying initial start- 
up costs, the Secretary of Agriculture shall 
allow an eligible entity to request a special 
advance. 
(ii) AMOUNT OF SPECIAL ADVANCE.— 
No eligible entity may receive a special ad-
vance under this subparagraph for an 
amount that is greater than 4 percent of 
the loan amount received by the eligible en-
tity under paragraph (1). 
(iii) REPAYMENT.—The repayment of 
the special advance shall be required with-
in 10 years after the special advance is 
made and, at the election of the eligible en-
tity, may be deferred to the end of the 10- 
year period. 
(E) LIMITATION ON ADVANCES.—All ad-
vances shall be made under a loan described in
paragraph (1) within the first 10 years of the 
term of the loan. 
(d) LOANS TO QUALIFIED CONSUMERS.— 
(1) TERMS OF LOANS.—Loans made by an eli-
gible entity to qualified consumers using loan funds 
provided by the Secretary of Agriculture under sub-
section (c)— 
(A) may bear interest, not to exceed three 
percent, to be used by the eligible entity for 
purposes such as establishing a loan loss re-
serve and to offset personnel and program costs 
of the eligible entity to provide the loans; 
(B) shall finance only energy efficiency 
measures or farm efficiency measures for the 
purpose of decreasing energy usage or costs of 
a qualified consumer by an amount such that a 
loan term of not more than 10 years will 
achieve a simple payback of the amount in-
vested; 
(C) shall not be used to fund— 
(i) the purchase of a manufactured 
home; or 
(ii) the purchase of any other personal 
property unless the personal property is or
becomes attached to real property as a fix-
ture; 
(D) shall not be used to fund modifications 
to personal property unless the personal prop-
erty— 
(i) is or becomes attached to real 
property as a fixture; or 
(ii) is a manufactured home; 
(E) shall be repaid through charges added 
to the electric bill for the property for, or at 
which energy efficiency measures are or will be 
implemented, except that this requirement shall 
not be construed to prohibit— 
(i) the voluntary prepayment of a loan 
by the owner of the property; or 
(ii) the use of any additional repay-
ment mechanisms that are— 
(I) demonstrated to have appro-
priate risk mitigation features, as de-
termined by the eligible entity; or 
(II) required if the qualified con-
sumer is no longer a customer of the 
eligible entity; and 
(F) shall require an energy audit to deter-
mine the impact of proposed energy efficiency
measures on the energy costs and consumption 
of the qualified consumer. 
(2) CONTRACTORS.—In addition to any other 
qualified general contractor, eligible entities may 
serve as general contractors. 
(3) USE OF OTHER ENERGY EFFICIENCY IN-
CENTIVES.—Energy efficiency incentives made avail-
able under any other Act, including rebates, grants, 
or any other payments, may be used to reduce the 
amount of a loan made under this subsection to 
qualified consumers in order to meet the require-
ment of paragraph (1)(B). 
(e) MEASUREMENT, VERIFICATION, TRAINING, AND 
TECHNICAL ASSISTANCE.— 
(1) DUTIES
OF
THE
SECRETARY.—The Sec-
retary of Agriculture— 
(A) shall establish an implementation and 
measurement and verification advisory com-
mittee consisting of representatives of eligible 
entities and qualified entities; 
(B) may enter into cooperative agreements 
with qualified entities to provide technical as-
sistance and training to the employees of eligi-
ble entities to carry out this section; and
(C) shall establish a process to compile and 
maintain a directory of energy efficiency audi-
tors that are used by eligible entities to carry 
out this section. 
(2) EXCEPTION.— 
(A) The Secretary of Agriculture shall not 
utilize the authority provided under this sub-
section or subsection (i) to— 
(i) develop, adopt, or implement a 
public labeling system that rates and com-
pares the energy performance among quali-
fied consumers; or 
(ii) require the public disclosure of an 
energy performance evaluation or rating 
developed for any qualified consumer. 
(B) Nothing in this paragraph shall pre-
clude— 
(i) the computation, collection, or use, 
by the Secretary of Agriculture, eligible en-
tity, or qualified entity for the purposes of 
aggregating information on the rating and 
comparison of the energy performance 
among qualified consumers with and with-
out energy efficiency features or on energy 
performance evaluation or rating;
(ii) the use and publication of aggre-
gate data (without identifying individual 
qualified consumers) based on information 
referred to in clause (i) to determine or 
demonstrate the performance of this pro-
gram; or 
(iii) the provision of information re-
ferred to in clause (i) with respect to a 
qualified consumer— 
(I) to the State, eligible con-
sumer, eligible entity, or qualified en-
tity, as necessary to enable carrying 
out this title; or 
(II) for purposes of prosecuting 
fraud and abuse. 
(f) FAST START DEMONSTRATION PROJECTS.—The 
Secretary of Agriculture shall, not later than 90 days after 
the enactment of this section, enter into agreements with 
eligible entities (or groups of eligible entities) that have 
established an energy efficiency program described in sub-
section (c)(2)(C) to establish an energy efficiency loan 
demonstration projects consistent with the purposes of 
this section that— 
(1) implement approaches to energy audits and 
investments in energy efficiency measures or farm
efficiency measures that yield measurable and pre-
dictable savings; 
(2) use measurement and verification processes 
to determine the effectiveness of energy efficiency 
loans made by eligible entities; 
(3) include training for employees of eligible en-
tities, including any contractors of such entities, to 
implement or oversee the activities described in 
paragraphs (1) and (2); 
(4) provide for the participation of a majority 
of eligible entities in a State; 
(5) reduce the need for generating capacity; 
(6) provide efficiency loans to— 
(A) not fewer than 20,000 consumers, in 
the case of a single eligible entity; or 
(B) not fewer than 80,000 consumers, in 
the case of a group of eligible entities; and 
(7) serve areas where 15 percent or more of 
consumers reside— 
(A) in manufactured homes; or 
(B) in housing units that are more than 50 
years old. 
(g) ADDITIONAL AUTHORITY.—The authority pro-
vided in this section is in addition to any authority of the
Secretary of Agriculture to offer loans under any other 
law. 
(h) EFFECTIVE PERIOD.—Except as otherwise pro-
vided in this section, the loans and other expenditures re-
quired to be made under this section are authorized to 
be made during each of fiscal years 2010 through 2014. 
(i) REGULATIONS.— 
(1) IN
GENERAL.—Except as otherwise pro-
vided in this subsection, not later than 180 days 
after the date of enactment of this section, the Sec-
retary of Agriculture shall promulgate such regula-
tions as are necessary to implement this section. 
(2) PROCEDURE.—The promulgation of the reg-
ulations and administration of this section shall be 
made without regard to— 
(A) chapter 35 of title 44, United States 
Code (commonly known as the ‘‘Paperwork Re-
duction Act’’); and 
(B) the Statement of Policy of the Sec-
retary of Agriculture effective July 24, 1971 
(36 Fed. Reg. 13804), relating to notices of 
proposed rulemaking and public participation in 
rulemaking. 
(3) CONGRESSIONAL REVIEW OF AGENCY RULE-
MAKING.—In carrying out this section, the Secretary
of Agriculture shall use the authority provided under 
section 808 of title 5, United States Code. 
(4) INTERIM
REGULATIONS.—Notwithstanding 
paragraphs (1) and (2), to the extent regulations are 
necessary to carry out any provision of this section, 
the Secretary of Agriculture shall implement such 
regulations through the promulgation of an interim 
rule. 
(j) AUDIT OF PROGRAM.—The Secretary of Agri-
culture shall conduct an audit of the program authorized 
by this section to ensure that the funds provided to eligible 
entities under this section are used in accordance with the 
purpose of this section. 
(k) REPORTING REQUIREMENTS.—The Secretary of 
Agriculture shall report to the Congress on the implemen-
tation of this Act, including the energy savings and costs 
savings estimated to be achieved, not later than 1 year 
after the date of enactment of this Act, and again not later 
than 2 years after the date of enactment of this Act. 
(l) ASSESSMENT BY GOVERNMENT ACCOUNTABILITY 
OFFICE.—The Comptroller General shall, by not later 
than 18 months after the date of enactment of this Act, 
prepare and submit to the Congress an analysis and report 
determining—
(1) the actual taxpayer funds made available 
for the program created in this section; 
(2) the actual amounts of such funds made 
available to eligible entities for qualified consumers 
in the program created in this section; 
(3) the extent of measured and verified energy 
savings achieved and expected to be achieved on an 
ongoing basis as a function of the program created 
in this section; 
(4) the extent to which funds made available 
were expended for training, administration, and pro-
gram support by eligible entities and qualified enti-
ties under the program created in this section; and 
(5) the consistency and rigor of the standards 
for energy efficiency and for measurement and 
verification adopted and implemented by program 
created in this section. 
(m) AUTHORIZATION.—There are authorized to be 
appropriated for purposes of this section, provided that 
enactment of this Act would not increase direct spending, 
$150,000,000 for each of fiscal years 2010 through 2014, 
which shall remain available until expended. 
(n) The Secretary of Agriculture shall provide assist-
ance and technical advice to the qualified entities pro-
viding loans under this bill in conducting outreach for the
purposes of increasing participation of economically dis-
tressed rural communities with unemployment rates above 
the national average, or rural areas that lack basic living 
necessities, such as water and sewer systems, electricity, 
and safe, sanitary housing, in the program established 
under this section. 
SEC. 3. PRIORITY FOR ACTIVE DUTY MEMBERS OF THE 
ARMED FORCES AND VETERANS. 
In providing loans to eligible participants under sec-
tion 1 or qualified consumers under section 2, the lender 
shall give priority to members of the Armed Forces serving 
on active duty and to veterans (as defined in section 101 
of title 38, United States Code). 
SEC. 4. PROHIBITION. 
Neither the Secretary of Energy nor the Secretary 
of Agriculture shall provide any funds authorized by this 
Act to any contractor that employs an employee to work 
in a consumer’s home if that employee has been convicted 
of, or plead guilty to, a crime of child molestation, rape, 
or any other form of sexual assault. 
SEC. 5. FEDERAL EMPLOYEES. 
(a) A loan shall not be provided to a Federal em-
ployee under this Act if any of the following apply to the 
employee:
(1) The employee has a seriously delinquent tax 
debt (as determined under subsection (b)). 
(2) The employee received a payment under the 
Low-Income Home Energy Assistance Act of 1981 
(42 U.S.C. 8621 et seq.) but was ineligible to receive 
the payment under the criteria described in section 
2605(b)(2) of such Act (42 U.S.C. 8624(b)(2)). 
(3) The employee has been officially disciplined 
for violations of subpart G of the Standards of Eth-
ical Conduct for Employees of the Executive Branch 
for viewing, downloading, or exchanging pornog-
raphy, including child pornography, on a Federal 
Government computer or while performing official 
Federal Government duties. 
(b) For purposes of subsection (a)(1), a ‘‘seriously 
delinquent tax debt’’ means an outstanding debt under the 
Internal Revenue Code of 1986 for which a notice of lien 
has been filed in public records pursuant to section 6323 
of such Code, except that such term does not include— 
(1) a debt that is being paid in a timely manner 
pursuant to an agreement under section 6159 or 
section 7122 of such Code; or 
(2) a debt with respect to which a collection due 
process hearing under section 6330 of such Code is
requested, pending, or completed and no payment is 
required. 
SEC. 6. WRONGFUL USE OR DIVERSION OF PROGRAM 
FUNDS. 
The Secretary of Energy and the Secretary of Agri-
culture shall take such steps as are necessary and appro-
priate, including requirements for the immediate repay-
ment of Federal assistance, to ensure that none of the 
funds authorized in this Act are used— 
(1) in violation of law; 
(2) in a manner that creates a significant 
threat to human health or safety; 
(3) in a manner that undercuts the integrity 
and accountability of the program under this Act; or 
(4) for purposes other than those serving the 
objectives of this Act. 
SEC. 7. PROHIBITION. 
(a) Funds authorized by this Act shall only be made 
available for the purpose of carrying out qualifying energy 
savings measures on a primary residence. 
(b) Neither the Secretary of Energy nor the Secretary 
of Agriculture shall provide any funds authorized by this 
Act to any contractor that has been convicted of or plead-
ed guilty to any fraudulent offense.
SEC. 8. SUNSET. 
The provisions of this Act shall be suspended and 
shall not apply if this Act will have a negative net effect 
on the national budget deficit of the United States. 
Passed the House of Representatives September 16, 
2010. 
Attest: 
Clerk.
111TH CONGRESS 
2D SESSION 
H. R. 4785 
AN ACT 
To authorize the Secretary of Agriculture to make 
loans to certain entities that agree that the funds 
will be used to make loans to consumers to im-
plement energy efficiency measures involving 
structural improvements and investments in cost- 
effective, commercial off-the-shelf technologies to 
reduce energy use, and for other purposes.