I 
114TH CONGRESS 
1ST SESSION H. R. 3041 
To require the Secretary of Energy to provide loans and grants for solar 
installations in low-income and underserved areas. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 13, 2015 
Mr. CA´RDENAS (for himself, Ms. LEE, and Mr. ELLISON) introduced the 
following bill; which was referred to the Committee on Energy and Commerce 
A BILL 
To require the Secretary of Energy to provide loans and 
grants for solar installations in low-income and under-
served areas. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Low-Income Solar 
Act’’. 
SEC. 2. LOAN AND GRANT PROGRAM FOR SOLAR INSTALLA-
TIONS IN LOW-INCOME AND UNDERSERVED 
AREAS. 
(a) DEFINITIONS.—In this section: 
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(1) ADMINISTRATIVE
EXPENSES.—The term 
‘‘administrative expenses’’ has such meaning as may 
be established by the Secretary. 
(2) COMMUNITY
SOLAR
FACILITY.—The term 
‘‘community solar facility’’ means a community- 
based distributed photovoltaic solar electricity gener-
ating facility that, as determined by the Secretary— 
(A) is owned by a subscriber organization; 
(B) has a nameplate rating of 2 megawatts 
or less; 
(C) is located in or near a community of 
subscribers to whom the beneficial use of the 
electricity generated by the facility belongs; and 
(D) reserves not less than 25 percent of 
the quantity of electricity generated by the fa-
cility for low-income households that are sub-
scribers to the facility. 
(3) ELIGIBLE ENTITY.—The term ‘‘eligible enti-
ty’’ means— 
(A) a low-income household; 
(B) a unit of State, territorial, or local 
government; 
(C) an Indian tribe; 
(D) a Native Hawaiian community-based 
organization; 
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(E) a rural community (as defined in sec-
tion 343(a) of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1991(a))); 
(F) any other national or regional entity 
that— 
(i) deploys a safe, high-quality photo-
voltaic solar electricity generating facility 
for consumers under a model that maxi-
mizes energy savings to those consumers; 
and 
(ii) has experience, as determined by 
the Secretary, installing solar systems 
using a job training or community volun-
teer-based installation model; and 
(G) for the loan program only, in addition 
to entities described in subsections (A) through 
(F), a private entity that— 
(i) deploys a safe, high-quality photo-
voltaic solar electricity generating facility 
for consumers under a model that maxi-
mizes energy savings to those consumers; 
and 
(ii) will install solar systems using a 
job training installation model. 
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(4) GRANT-ELIGIBLE HOUSEHOLD.—The term 
‘‘grant-eligible household’’ means a household the 
members of which— 
(A) earn an income equal to 80 percent or 
less of the applicable area median income, as 
defined for the applicable year by the Secretary 
of Housing and Urban Development; and 
(B) reside in an owner-occupied home. 
(5) INDIAN TRIBE.—The term ‘‘Indian tribe’’ 
means any Indian tribe, band, nation, or other orga-
nized group or community, including any Alaskan 
Native village or regional or village corporation (as 
defined in, or established pursuant to, the Alaska 
Native Claims Settlement Act (43 U.S.C. 1601 et 
seq.)), that is recognized as eligible for the special 
programs and services provided by the United States 
to Indians because of their status as Indians. 
(6) 
LOW-INCOME
HOUSEHOLD.—The 
term 
‘‘low-income household’’ means a household with an 
income equal to 80 percent or less of the applicable 
area median income, as defined for the applicable 
year by the Secretary of Housing and Urban Devel-
opment. 
(7) MULTI-FAMILY
AFFORDABLE
HOUSING.— 
The term ‘‘multi-family affordable housing’’ means 
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any federally subsidized affordable housing complex 
in which at least 50 percent of the units are reserved 
for low-income households. 
(8) NATIVE HAWAIIAN COMMUNITY-BASED OR-
GANIZATION.—The term ‘‘Native Hawaiian commu-
nity-based organization’’ means any organization 
that is composed primarily of Native Hawaiians 
from a specific community and that assists in the 
social, cultural, and educational development of Na-
tive Hawaiians in that community. 
(9) PHOTOVOLTAIC SOLAR ELECTRICITY GEN-
ERATING FACILITY.—The term ‘‘photovoltaic solar 
electricity generating facility’’ means— 
(A) a generator that creates electricity 
from light photons; and 
(B) the accompanying hardware enabling 
that electricity to flow— 
(i) onto the electric grid; or 
(ii) into an energy storage device. 
(10) 
SECRETARY.—The 
term 
‘‘Secretary’’ 
means the Secretary of Energy. 
(11) SUBSCRIBER.—The term ‘‘subscriber’’ 
means an electricity consumer who— 
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(A) owns a subscription, or an equivalent 
unit or share of the capacity or generation, of 
a community solar facility; 
(B) has identified one or more physical lo-
cations— 
(i) to which the subscription will be 
attributed; 
(ii) within the same electric utility 
service territory, or within the same geo-
graphical area, as the community solar fa-
cility, in accordance with applicable State 
and local law; and 
(iii) that may change from time to 
time, subject to the condition that the 
physical location shall be within the geo-
graphical limits allowed for a subscriber of 
the applicable community solar facility; 
and 
(C) confirms the status of the consumer as 
a low-income household for each applicable fis-
cal year. 
(12) SUBSCRIPTION.—The term ‘‘subscription’’ 
means a share in the capacity, or a proportional in-
terest in the solar electricity generation, of a com-
munity solar facility. 
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(13) UNDERSERVED AREA.—The term ‘‘under-
served area’’ means— 
(A) a geographical area with low or no 
photovoltaic solar deployment, as determined by 
the Secretary; or 
(B) trust land, as defined in section 3765 
of title 38, United States Code. 
(b) ESTABLISHMENT OF LOAN AND GRANT PRO-
GRAM.— 
(1) IN GENERAL.—The Secretary shall establish 
a program under which the Secretary shall provide 
loans and grants to eligible entities for use in ac-
cordance with this section. 
(2) FUNDING.— 
(A) IN
GENERAL.—Subject to the avail-
ability of appropriations, the Secretary shall 
make grants and issue loans in accordance with 
this subsection. 
(B) LOANS.—Subject to subparagraph 
(D), not more than 50 percent of funds made 
available under subparagraph (A) for a fiscal 
year shall be used to provide loans to eligible 
entities for— 
(i) community solar facilities; or 
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(ii) multi-family affordable housing 
solar installations. 
(C) GRANTS.—After allocating amounts to 
carry out subparagraph (B), the Secretary shall 
use the remaining funds made available under 
subparagraph (A) for a fiscal year to provide 
grants to eligible entities— 
(i) to pay the upfront costs of photo-
voltaic solar electricity generating facilities 
installed on properties of grant-eligible 
households; or 
(ii) for any other eligible use described 
in subsection (e). 
(D) INCREASE IN GRANT AMOUNT.—Not-
withstanding subparagraph (A), if the Secretary 
determines that more than 50 percent of the 
amounts described in that subparagraph are 
necessary during any of fiscal years 2016 
through 2030 to provide grants to encourage 
innovative financing and installation models to 
reach underserved markets, the Secretary may 
use more than 50 percent of those amounts to 
provide those grants. 
(3) GOALS AND ACCOUNTABILITY.— 
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(A) IN GENERAL.—In providing loans and 
grants under this subsection, the Secretary 
shall take such actions as may be necessary to 
ensure that— 
(i) the assistance provided under this 
subsection is used to facilitate and encour-
age innovative solar installation and fi-
nancing models, under which the recipients 
develop and install photovoltaic solar elec-
tricity generating facilities that provide sig-
nificant savings to low-income households 
while providing job training or community 
engagement opportunities with respect to 
each solar system installed; 
(ii) loan and grant recipients shall— 
(I) have installed not less than 
600 kilowatts of photovoltaic solar en-
ergy during the 2-year period pre-
ceding the date on which the loan or 
grant is provided to ensure consumer 
protection; or 
(II) until the goal described in 
subclause (I) is achieved, enter into 
partnership with an entity that— 
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(aa) has not less than 2 
years of experience deploying 
solar photovoltaic systems for 
low-income households in a man-
ner that maximizes the savings 
benefits of solar access; and 
(bb) was primarily respon-
sible for the installation of at 
least 2 megawatts of solar energy 
during the 2-year period pre-
ceding the date on which the loan 
or grant is provided; 
(iii) the photovoltaic solar electricity 
generating facilities installed using assist-
ance provided under this subsection are 
safe, high-quality systems that comply with 
local building and safety codes and stand-
ards; 
(iv) the provision of assistance under 
this subsection establishes and fosters a 
partnership between the Federal Govern-
ment and eligible entities, resulting in effi-
cient development of solar installations 
with— 
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(I) minimal governmental inter-
vention; 
(II) limited governmental regula-
tion; and 
(III) significant involvement by 
nonprofit and private entities; 
(v) solar projects installed using as-
sistance provided under this subsection— 
(I) shall include job training; and 
(II) may include community par-
ticipation in which job trainees and 
volunteers assist in the development of 
solar projects; 
(vi) assistance provided under this 
subsection prioritizes development in— 
(I) areas with low photovoltaic 
penetration; 
(II) rural areas; 
(III) Indian tribal areas; and 
(IV) other underserved areas, in-
cluding Alaskan Native and Appa-
lachian communities; 
(vii) solar systems are developed using 
assistance provided under this subsection 
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on a geographically diverse basis among 
the eligible entities; and 
(viii) to the maximum extent prac-
ticable, solar installation activities for 
which assistance is provided under this 
section leverage, or connect grant-eligible 
households to, federally or locally sub-
sidized weatherization and energy effi-
ciency efforts that meet or exceed local en-
ergy efficiency standards. 
(B) DETERMINATION.—If, at any time, the 
Secretary determines that the goals described in 
this paragraph cannot be met by providing as-
sistance in accordance with this subsection, the 
Secretary shall immediately submit to the ap-
propriate committees of Congress a written no-
tice of that determination, including any pro-
posed changes necessary to achieve the goals 
under this paragraph. 
(4) COMMUNITY SOLAR FACILITIES.— 
(A) IN GENERAL.—A community solar fa-
cility may use a loan provided under this sub-
section only to offset the costs of generation 
and provision of solar energy to low-income 
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households that are subscribers of the commu-
nity solar facility. 
(B) TRANSFER AND ASSIGNMENT OF SUB-
SCRIPTIONS.—A subscription to a community 
solar facility that receives assistance under this 
subsection may be transferred or assigned by 
the subscriber to— 
(i) any subscriber organization; or 
(ii) any individual or entity who quali-
fies to be a subscriber to that community 
solar facility. 
(C) TREATMENT.— 
(i) IN
GENERAL.—No owner, oper-
ator, or subscriber of a community solar 
facility that receives assistance under this 
subsection shall be subject to regulation by 
the Federal Energy Regulatory Commis-
sion solely as a result of an interest in the 
community solar facility. 
(ii) PRICE
OF
SUBSCRIPTION.—The 
price paid for any subscription to a com-
munity solar facility shall not be subject to 
the regulation of any Federal department, 
agency, or commission. 
(c) NATIONAL COMPETITION.— 
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(1) IN GENERAL.—The Secretary shall select el-
igible entities to receive loans or grants under this 
section through a nationwide competitive process, to 
be established by the Secretary. 
(2) APPLICATIONS.—To be eligible to receive a 
loan or grant under this section, an eligible entity 
shall submit to the Secretary an application at such 
time, in such manner, and containing such informa-
tion as the Secretary may require. 
(3) REQUIREMENTS.—In selecting eligible enti-
ties to receive loans or grants under this section, the 
Secretary shall, at a minimum— 
(A) require that the eligible entity— 
(i) enter into a grant or loan agree-
ment, as applicable, under subsection (d); 
and 
(ii) has obtained financial commit-
ments (or has demonstrated the capacity 
to obtain financial commitments) necessary 
to comply with that agreement; 
(B) ensure that loans and grants are pro-
vided, and amounts are used, in a manner that 
results in geographical diversity throughout the 
United States and within States, territories, 
and Indian tribal land among photovoltaic solar 
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electricity generating facilities installed using 
the assistance provided under this section; 
(C) to the maximum extent practicable, ex-
pand photovoltaic solar energy availability to— 
(i) geographical areas, throughout the 
United States and within States, terri-
tories, and Indian tribal land, with— 
(I) low photovoltaic solar pene-
tration; or 
(II) areas with a higher cost bur-
den with respect to the deployment or 
installation of photovoltaic solar elec-
tricity generating facilities; 
(ii) rural communities; 
(iii) Indian tribes; and 
(iv) other underserved areas, including 
Appalachian and Alaska Native commu-
nities; 
(D) take into account the warranty period 
and quality of the applicable photovoltaic solar 
electricity generating facility equipment and any 
necessary interconnecting equipment; and 
(E) ensure all calculations for estimated 
household energy savings are based solely on 
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electricity offsets from the photovoltaic solar 
electricity generating facilities. 
(d) LOAN AND GRANT AGREEMENTS.— 
(1) IN GENERAL.—As a condition of receiving a 
loan or grant under this section, an eligible entity 
shall enter into a loan or grant agreement, as appli-
cable, with the Secretary. 
(2) REQUIREMENTS.—A loan or grant agree-
ment under this subsection shall— 
(A) require the eligible entity— 
(i) to use the assistance provided 
under this section only in accordance with 
this section; 
(ii) to install such number of solar 
systems with such defined capacity target 
(expressed in megawatts) as may be estab-
lished by the Secretary, taking into consid-
eration the costs associated with carrying 
out loan or grant obligations in the areas 
in which the solar systems will be devel-
oped; 
(iii) to use the assistance in a manner 
that leverages other sources of funding 
(other than loans or grants under this sec-
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tion), including private or public funds, in 
developing the solar projects; and 
(iv) to establish loan terms, if applica-
ble, that maximize the benefit to the low- 
income households receiving solar energy 
from the eligible entity; 
(B) require the Secretary to rescind any 
amounts provided to the eligible entity that are 
not used during the 2-year period beginning on 
the date on which the amounts are initially dis-
tributed to the eligible entity, except in any case 
in which the eligible entity has demonstrated to 
the satisfaction of the Secretary that a longer 
period, not to exceed 3 years after the date of 
initial distribution, is necessary to deliver pro-
posed services; 
(C) for a loan provided under this section, 
establish— 
(i) an interest rate equal to the then- 
current cost of funds to the Department of 
the Treasury for obligations of comparable 
maturity to the loan; and 
(ii) a payout time that maximizes the 
savings to customers during the effective 
period of the agreement; and 
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(D) contain such other terms as the Sec-
retary may require to ensure compliance with 
the requirements of this section. 
(e) USE.—An eligible entity shall use a loan or grant 
provided under this section only for the following activi-
ties, for the purpose of developing new photovoltaic solar 
projects in the United States for low-income households 
and individuals who otherwise would likely be unable to 
afford or purchase photovoltaic solar systems: 
(1) PHOTOVOLTAIC SOLAR EQUIPMENT AND IN-
STALLATION.—To pay the costs of— 
(A) solar equipment, including only photo-
voltaic solar equipment and storage and all 
hardware or software components relating to 
safely producing, monitoring, and connecting 
the system to the electric grid or onsite storage; 
and 
(B) installation, including all direct labor 
associated with installing the photovoltaic solar 
equipment. 
(2) JOB TRAINING.—To fund onsite job train-
ing and community or volunteer engagement, includ-
ing— 
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(A) only job training costs directly associ-
ated with the solar projects funded under this 
section; and 
(B) job training opportunities that may 
cover the full range of the solar value chain, 
such as marketing and outreach, customer ac-
quisition, system design, and installation posi-
tions. 
(3) DEPLOYMENT SUPPORT.—To fund entities 
that have a demonstrated ability, as determined by 
the Secretary— 
(A) to advise State and local entities re-
garding low-income solar policy, regulatory, and 
program design to continue and expand the 
work of the entities; 
(B) to foster community outreach and edu-
cation regarding the benefits of photovoltaic 
solar energy for low-income and disadvantaged 
communities; or 
(C) to provide apprenticeship program op-
portunities registered and approved by— 
(i) the Office of Apprenticeship of the 
Department of Labor pursuant to part 29 
of title 29, Code of Federal Regulations (or 
successor regulations); or 
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(ii) a State Apprenticeship Agency 
recognized by that Office. 
(4) ADMINISTRATION.—To pay the administra-
tive expenses of the eligible entity, including 
preproject feasibility efforts, in carrying out the du-
ties of the Secretary associated with delivering pro-
posed services, subject to the requirement that not 
more than 15 percent of the total amount of the as-
sistance provided to the eligible entity under this 
section may be used for administrative expenses. 
(f) COMPLIANCE.— 
(1) RECORDS AND AUDITS.—During the period 
beginning on the date of initial distribution to an eli-
gible entity of a loan or grant under this section and 
ending on the termination date of the loan or grant 
under subsection (g), the eligible entity shall main-
tain such records and adopt such administrative 
practices as the Secretary may require to ensure 
compliance with the requirements of this section and 
the applicable loan or grant agreement. 
(2) DETERMINATION
BY
SECRETARY.—If the 
Secretary determines that an eligible entity that re-
ceives a grant or loan under this section has not, 
during the 2-year period beginning on the date of 
initial distribution to the eligible entity of the assist-
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ance (or such longer period as is established under 
subsection (d)(2)(B)), substantially fulfilled the obli-
gations of the eligible entity under the applicable 
loan or grant agreement, the Secretary shall— 
(A) rescind the balance of any funds dis-
tributed to, but not used by, the eligible entity 
under this section; and 
(B) use those amounts to provide other 
loans or grants in accordance with this section. 
(g) TERMINATION.—The Secretary shall terminate a 
loan or grant provided under this section on a determina-
tion that the total amount of the loan or grant (excluding 
any interest, fees, and other earnings of the loan or grant) 
has been— 
(1) fully expended by the eligible entity; or 
(2) returned to the Secretary. 
(h) REGULATIONS.—Not later than 90 days after the 
date of enactment of this Act, the Secretary shall promul-
gate such regulations as the Secretary determines to be 
necessary to carry out this section, to take effect on the 
date of promulgation. 
(i) FUNDING.—There is authorized to be appro-
priated to the Secretary to carry out this section 
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$200,000,000 for each of fiscal years 2016 through 2030, 
to remain available until expended. 
Æ 
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