212 
are developed, administered, reviewed, and ap-
proved in the State and report to the Secretary 
annually on the methodologies and processes 
used to develop, administer, review, and ap-
prove home heating oil, propane, and kerosene 
programs; and 
(G) ensure that evaluation, monitoring, 
and verification of the efficiency programs are 
conducted by an independent third party annu-
ally with reporting to the States, public, and 
the Secretary. 
(d) REPORTS.— 
(1) STATE.—Not later than April 30 of each 
year, each State that receives funds under this sec-
tion shall submit to the Secretary a report for the 
previous calendar year in accordance with such re-
quirements as the Secretary may prescribe that— 
(A) describes the use by the State of funds 
provided by this section, including a description 
of the cost-effective energy efficiency programs 
funded; 
(B) demonstrates the consumer savings, 
cost-effectiveness of, and the lifetime and an-
nual energy savings achieved by, energy effi-
ciency programs funded under this section; and 
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(C) includes a report prepared by an inde-
pendent third party, in accordance with such 
regulations as the Secretary may issue, evalu-
ating the performance of the cost-effective en-
ergy efficiency programs funded under this sec-
tion, including consumer savings, cost-effective-
ness of, and the lifetime and annual energy sav-
ings of the efficiency programs. 
(2) SECRETARY.— 
(A) IN
GENERAL.—Not later than April 
30, 2013, and every 2 years thereafter, the Sec-
retary shall submit to Congress a report con-
taining— 
(i) an evaluation of the consumer sav-
ings, cost-effectiveness of, and the lifetime 
and annual energy savings achieved by, en-
ergy efficiency programs funded under this 
section; and 
(ii) recommendations for means of 
more effectively achieving consumer sav-
ings, cost-effectiveness, and lifetime and 
annual energy savings through efficiency 
programs for home heating oil, propane, 
and kerosene consumer for residential or 
commercial purposes. 
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214 
(B) PUBLICATION.—The Secretary shall 
make the reports submitted under subpara-
graph (A) available to the public, including by 
publishing the reports on the Internet. 
(e) ENFORCEMENT.—If the Secretary determines 
that a State is not in compliance with this section, the 
Secretary may distribute funds that would have been dis-
tributed to the State under subsection (b)(2) among the 
remaining States, on a pro rata basis, for use in carrying 
out programs under this section. 
SEC. 602. RENEWABLE BIOMASS THERMAL ENERGY FOR 
COMMERCIAL BUILDINGS. 
(a) DEFINITIONS.—In this section: 
(1) COMMERCIAL BUILDING.— 
(A) IN GENERAL.—The term ‘‘commercial 
building’’ means a building that— 
(i) is located in the United States; 
and 
(ii) was in existence or initially de-
signed as of December 31, 2009. 
(B) EXCLUSIONS.—The term ‘‘commercial 
building’’ does not include— 
(i) a federally owned building; or 
(ii) a residential building. 
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(2) ELIGIBLE
BUILDING.—The term ‘‘eligible 
building’’ means a commercial building or multi-
family residential building that uses (or, if under de-
velopment but not yet constructed, is designed to 
consume) heating oil or another petroleum product 
as the primary thermal energy source of the build-
ing. 
(3) MULTIFAMILY RESIDENTIAL BUILDING.— 
(A) IN GENERAL.—The term ‘‘multifamily 
residential building’’ means a structure of 5 or 
more dwelling units that— 
(i) is located in the United States; 
and 
(ii) was in existence or initially de-
signed as of December 31, 2009. 
(B) EXCLUSION.—The term ‘‘multifamily 
residential building’’ does not include a feder-
ally owned building. 
(4) PROGRAM.—The term ‘‘program’’ means 
the renewable biomass thermal energy loan program 
established under this section. 
(5) QUALIFIED BOILER.—The term ‘‘qualified 
boiler’’ means a wood or wood-pellet fired boiler or 
furnace that— 
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hsrobinson on DSK69SOYB1PROD with BILLS
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(A) has a capacity of not less than 
300,000 Btu per hour; and 
(B) meets or exceeds 60 percent total sys-
tem efficiency based on lower heating value. 
(6) QUALIFIED PROGRAM DELIVERY ENTITY.— 
The term ‘‘qualified program delivery entity’’ means 
a State, political subdivision of a State, tribal gov-
ernment, energy utility, natural gas utility, nonprofit 
or community-based organization, energy service 
company, retailer, or any other qualified entity 
that— 
(A) meets the eligibility requirements of 
this section; and 
(B) is approved by the State that admin-
isters the program in the State. 
(7) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Energy. 
(b) ESTABLISHMENT.—The Secretary shall establish 
a renewable biomass thermal energy loan program under 
which the Secretary shall make grants to States to support 
financial assistance provided by qualified program delivery 
entities for replacing, in eligible buildings, thermal energy 
systems that use heating oil or another petroleum product 
in qualified boilers. 
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(c) ELIGIBILITY OF QUALIFIED PROGRAM DELIVERY 
ENTITIES.—To be eligible to participate in the program, 
a qualified program delivery entity— 
(1) shall offer a financing product under which 
eligible participants may pay over time for the cost 
to the owner of an eligible building (after all applica-
ble Federal, State, local, and other rebates or incen-
tives are applied) of replacing or redesigning a ther-
mal energy system that uses heating oil or another 
petroleum product with a qualified boiler; 
(2) shall offer an incentive or other strategy for 
encouraging the owner of an eligible building to 
make energy efficiency improvements to the thermal 
energy delivery system of an eligible building at the 
same time as a qualified boiler is installed; 
(3) shall establish standard underwriting cri-
teria to determine the eligibility of program appli-
cants, which criteria shall be consistent with com-
mercially recognized best practices applicable to the 
form of financial assistance being provided (as deter-
mined by the designated entity administering the 
program in the State); and 
(4) may establish and offer financing mecha-
nisms to pool the needs of multiple eligible buildings 
into a single finance package in order to lower trans-
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actions costs and enable projects in small or low-in-
come municipalities to participate in the program. 
(d) ALLOCATION.—In making funds available to 
States for each fiscal year under this section, the Sec-
retary shall use the formula used to allocate funds to 
States to carry out State energy conservation plans estab-
lished under part D of title III of the Energy Policy and 
Conservation Act (42 U.S.C. 6321 et seq.). 
(e) QUALIFIED PROGRAM DELIVERY ENTITIES.—Be-
fore making a grant to a State under this section, the Sec-
retary shall require the Governor of the State to provide 
to the Secretary a letter of assurance that the State— 
(1) has 1 or more qualified program delivery 
entities that meet the requirements of this section; 
(2) has established a loan program mechanism 
that incorporates an effective repayment mechanism, 
which may include— 
(A) on-utility-bill repayment; 
(B) tax assessment or other form of prop-
erty assessment financing; 
(C) municipal service charges; 
(D) energy or energy efficiency services 
contracts; or 
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(E) 
alternative 
contractual 
repayment 
mechanisms that have been demonstrated to 
have appropriate risk mitigation features; and 
(3) will provide, in a timely manner, all infor-
mation regarding the administration of the program 
as the Secretary may require to permit the Secretary 
to meet the reporting requirements of subsection (h). 
(f) USE
OF GRANT FUNDS.—Grant funds made 
available to States under the program may be used to sup-
port financing products offered by qualified program deliv-
ery entities to eligible participants, by providing— 
(1) interest rate reductions; 
(2) loan loss reserves or other forms of credit 
enhancement; 
(3) revolving loan funds from which qualified 
program delivery entities may offer direct loans; 
(4) other debt instruments or financial products 
necessary— 
(A) to maximize leverage provided through 
available funds; and 
(B) to support widespread deployment of 
qualified boilers; and 
(5) technical assistance delivered for nonprofit 
or community-based organizations and local govern-
ments in economically distressed counties, on financ-
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hsrobinson on DSK69SOYB1PROD with BILLS
220 
ing options or project development and design of-
fered to eligible entities, particularly eligible entities 
located in low-income communities, HUB zones, or 
other Federal designations aimed at increasing the 
participation and benefit from Federal programs of 
underserved or low-income communities. 
(g) USE OF REPAYMENT FUNDS.—In the case of a 
revolving loan fund established by a State described in 
subsection (f)(3), a qualified program delivery entity may 
use funds repaid by eligible participants under the pro-
gram to provide financial assistance for additional eligible 
participants to make improvements described in sub-
section (b) in a manner that is consistent with this section 
or other such criteria as are prescribed by the State. 
(h) PROGRAM EVALUATION.—Not later than 180 
days after the date of enactment of this Act, the Secretary 
shall submit to Congress a program evaluation that de-
scribes— 
(1) how many eligible participants have partici-
pated in the program; 
(2) how many jobs have been created through 
the program, directly and indirectly; 
(3) what steps could be taken to promote fur-
ther deployment of qualified boilers; 
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hsrobinson on DSK69SOYB1PROD with BILLS
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(4) the quantity of verifiable energy savings, re-
newable energy deployment, eligible building owner 
energy bill savings, and other benefits of the pro-
gram; and 
(5) the performance of the programs carried 
out by qualified program delivery entities under this 
section, including information on the rate of default 
and repayment. 
(i) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to carry out this section 
such sums as are necessary for each of fiscal years 2011 
through 2020. 
TITLE VII—ENERGY GRANTS IN 
LIEU OF TAX CREDIT 
SEC. 701. EXTENSION OF GRANTS FOR SPECIFIED ENERGY 
PROPERTY IN LIEU OF TAX CREDITS. 
(a) IN GENERAL.—Subsection (a) of section 1603 of 
division B of the American Recovery and Reinvestment 
Act of 2009 is amended— 
(1) in paragraph (1), by striking ‘‘2009 or 
2010’’ and inserting ‘‘2009, 2010, 2011, 2012, 
2013, 2014, or 2014’’, and 
(2) in paragraph (2)— 
(A) by striking ‘‘after 2010’’ and inserting 
‘‘after 2015’’, and 
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hsrobinson on DSK69SOYB1PROD with BILLS
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(B) by striking ‘‘2009 or 2010’’ and in-
serting ‘‘2009, 2010, 2011, 2012, 2013, 2014, 
or 2015’’. 
(b) CONFORMING AMENDMENT.—Subsection (j) of 
section 1603 of division B of such Act is amended by strik-
ing ‘‘2011’’ and inserting ‘‘2016’’. 
SEC. 702. EXPANSION OF GRANTS FOR SPECIFIED ENERGY 
PROPERTY IN LIEU OF TAX CREDITS. 
(a) GRANTS
ALLOWED
FOR
CERTAIN
GOVERN-
MENTAL UNITS AND COOPERATIVE ELECTRIC COMPA-
NIES.— 
(1) IN
GENERAL.—Subsection (g) of section 
1603 of division B of the American Recovery and 
Reinvestment Act of 2009 is amended— 
(A) in paragraph (1), by inserting ‘‘other 
than a governmental unit which is a State util-
ity with a service obligation (as such terms are 
defined in section 217 of the Federal Power 
Act, as in effect on the date of the enactment 
of this paragraph),’’ after ‘‘thereof),’’, 
(B) in paragraph (2), by inserting ‘‘other 
than a mutual or cooperative electric company 
described in section 50(c)(12) of such Code’’ 
after ‘‘such Code’’, and 
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(C) by striking paragraph (3) and redesig-
nating paragraph (4) as paragraph (3). 
(2) CONFORMING AMENDMENT.—Paragraph (3) 
of section 1603(g) of division B of such Act, as re-
designated by paragraph (1)(C), is amended by 
striking ‘‘paragraph (1), (2), or (3)’’ and inserting 
‘‘paragraph (1) or (2)’’. 
(b) NO GRANTS FOR PORTION OF PROPERTY FI-
NANCED WITH CREBS OR TAX-EXEMPT BONDS.—Sec-
tion 1603 of division B of such Act, as amended by section 
2, is amended by redesignating subsections (h), (i), and 
(j) as subsections (i), (j), and (k), respectively, and by in-
serting after subsection (g) the following new subsection: 
‘‘(h) SPECIAL RULE FOR BOND FINANCED PROP-
ERTY.—The amount of any grant under this section with 
respect to any specified energy property shall not exceed 
an amount equal to— 
‘‘(1) the basis of such property, over 
‘‘(2) the portion of the basis of such property 
which is allocable to proceeds of any bond which is 
designated as a new clean renewable energy bond 
under section 54C of such Code or any bond the in-
terest on which is exempt from tax under section 
103 of such Code.’’. 
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