I 
111TH CONGRESS 
1ST SESSION H. R. 1778 
To provide for the establishment of national energy and environmental build-
ing retrofit policies for both residential and commercial buildings, and 
for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 30, 2009 
Mr. WELCH (for himself, Mr. VAN HOLLEN, Mr. PATRICK J. MURPHY of 
Pennsylvania, Mrs. MALONEY, Mr. HONDA, Ms. KILPATRICK of Michi-
gan, Mr. CARSON of Indiana, Mrs. DAHLKEMPER, Mr. PALLONE, Mr. 
ISRAEL, Mr. COHEN, Mr. CUMMINGS, Mr. LANGEVIN, Mr. ELLISON, Mr. 
HINCHEY, Mr. TONKO, Mr. BLUMENAUER, Ms. SHEA-PORTER, Mrs. 
CHRISTENSEN, Mr. BRALEY of Iowa, Mr. GEORGE MILLER of California, 
Mr. TEAGUE, Mr. DELAHUNT, Mr. INSLEE, Mr. COURTNEY, Mr. 
HEINRICH, Mr. CARNAHAN, Mr. HIMES, Mr. PERLMUTTER, Mrs. CAPPS, 
Mr. MASSA, and Mr. POLIS of Colorado) introduced the following bill; 
which was referred to the Committee on Energy and Commerce, and in 
addition to the Committee on Financial Services, for a period to be subse-
quently determined by the Speaker, in each case for consideration of such 
provisions as fall within the jurisdiction of the committee concerned 
A BILL 
To provide for the establishment of national energy and 
environmental building retrofit policies for both residen-
tial and commercial buildings, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Retrofit for Energy 
and Environmental Performance (REEP) Program Act’’. 
SEC. 2. FINDINGS. 
The Congress finds that— 
(1) buildings are responsible for 39 percent of 
all energy consumption, 72 percent of all electricity 
consumption, and 55 percent of natural gas use in 
the United States; 
(2) buildings are responsible for 38 percent of 
all carbon dioxide emissions in the United States; 
(3) energy efficiency in buildings can readily be 
improved in most cases using existing technologies 
to reduce building energy consumption by 25 percent 
or more; 
(4) buildings represent 14 percent of potable 
water use in the United States, also amenable to sig-
nificant efficiency improvement; 
(5) Home Performance with Energy Star in 
Vermont and many other States, as well as indi-
vidual retrofits of commercial buildings, show that 
such savings are possible and economical; and 
(6) expanding the residential and commercial 
efficiency industries will create jobs directly in per-
forming retrofits and indirectly through reduced en-
ergy bills to consumers. 
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SEC. 3. BUILDING RETROFIT PROGRAM. 
(a) DEFINITIONS.—For purposes of this section: 
(1) ADMINISTRATOR.—The term ‘‘Adminis-
trator’’ means the Administrator of the Environ-
mental Protection Agency. 
(2) PERFORMANCE-BASED BUILDING RETROFIT 
PROGRAM.—The term ‘‘performance-based building 
retrofit program’’ means a program that determines 
success in energy efficiency based on actual meas-
ured savings after a retrofit is complete. 
(3) PRESCRIPTIVE
BUILDING
RETROFIT
PRO-
GRAM.—The term ‘‘prescriptive building retrofit pro-
gram’’ means a program that projects success in en-
ergy efficiency based on the known effectiveness of 
measures prescribed to be included in a retrofit. 
(4) STATE.—The term ‘‘State’’ means the sev-
eral States, the District of Columbia, the Common-
wealth of Puerto Rico, the United States Virgin Is-
lands, Guam, American Samoa, the Commonwealth 
of the Northern Mariana Islands, and any other 
commonwealth, territory, or possession of the United 
States. 
(5) STATE
ENERGY
PROGRAM.—The term 
‘‘State Energy Program’’ means the program under 
part D of title III of the Energy Policy and Con-
servation Act (42 U.S.C. 6321 et seq.) 
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(b) ESTABLISHMENT.—The Administrator shall de-
velop and implement, in consultation with the Secretary 
of Energy, standards for a national energy and environ-
mental building retrofit policy for single-family and multi-
family residences. The Secretary of Energy shall develop 
and implement, in consultation with the Administrator, 
standards for a national energy and environmental build-
ing retrofit policy for commercial buildings. The programs 
to implement the residential and commercial policies based 
on the standards developed under this section shall to-
gether be known as the Retrofit for Energy and Environ-
mental Performance (REEP) program. 
(c) PROGRAM DESIGN.— 
(1) PURPOSE.—The purpose of the REEP pro-
gram is to facilitate the retrofitting of existing build-
ings across the United States to achieve maximum 
cost-effective energy efficiency improvements and 
significant improvements in water use and other en-
vironmental attributes. 
(2) FEDERAL
RESOURCES.—The REEP pro-
gram shall utilize Federal personnel and resources 
as needed for development, design, program mate-
rials, administration, seed capital, and other activi-
ties and support. 
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(3) ASSISTANCE TO STATES.—The REEP pro-
gram shall provide Federal financial assistance to 
States, to be administered through the State Energy 
Program, for management and the accomplishment 
of the program’s objectives at the individual building 
level, through local agencies as appropriate, in ac-
cordance with standards and requirements estab-
lished under this section. 
(4) STATE AND LOCAL ASSISTANCE.—State and 
local agencies may offer free or low-cost building au-
dits, incentives, technical assistance, training, incen-
tive financing, and other forms of assistance to indi-
vidual building owners under the standards and 
guidelines developed for the REEP program in ac-
cordance with this section, as well as promotion and 
management of the REEP program. 
(5) STRUCTURE OF PROGRAM OPERATIONS.— 
State and local agencies shall have broad flexibility 
in the structure of REEP program operations and 
in the choice of retrofit agencies or contractors. 
(d) FEDERAL ADMINISTRATION.— 
(1) EXISTING PROGRAMS.—In creating and op-
erating the residential REEP program— 
(A) the Administrator shall make appro-
priate use of existing programs, including the 
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Energy Star program and in particular the En-
vironmental Protection Agency Energy Star for 
Buildings program; and 
(B) the Secretary of Energy shall make 
appropriate use of existing programs, including 
delegating authority to the Director of Commer-
cial High-Performance Green Buildings ap-
pointed under section 421 of the Energy Inde-
pendence and Security Act of 2007 (42 U.S.C. 
17081), who shall designate and provide fund-
ing to support a High-Performance Green 
Building Partnership Consortium pursuant to 
such section to support efforts under this Act. 
(2) CONSULTATION AND COORDINATION.—The 
Administrator and the Secretary of Energy shall 
consult with and coordinate with the Secretary of 
Housing and Urban Development in carrying out the 
REEP program. 
(3) ADMINISTRATION OF FUNDING.—The Sec-
retary of Energy shall administer the financing for 
the REEP program, providing funds to and adminis-
tration through State Energy Offices under the 
State Energy Program, or through such existing 
State offices or entities regulated by the State that 
the Governor of the State designates to carry out 
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the purposes of this Act. The Secretary shall ensure 
accountability for funds dispensed, including meas-
urement and verification of energy, water, and envi-
ronmental savings achieved. 
(4) ASSISTANCE.—The Administrator and the 
Secretary of Energy shall provide consultation and 
assistance to State and local agencies for the estab-
lishment of revolving loan funds or other forms of fi-
nancial assistance under this section. 
(e) STATE AND LOCAL ADMINISTRATION.— 
(1) DELEGATION.—The State Energy Office or 
designated State agency described in subsection 
(d)(3) may delegate performance of appropriate ele-
ments of the REEP program, upon their request 
and subject to State law, to counties, municipalities, 
appropriate public agencies, and other divisions of 
local government, as well as to entities regulated by 
the State. The State shall ensure accountability for 
expended funds provided under this section, and 
shall maintain responsibility for meeting the stand-
ards and requirements of the REEP program. 
(2) EMPLOYMENT.—States and local govern-
ment entities may employ public or regulated inves-
tor-owned utilities, building auditors and inspectors, 
contractors, nonprofit organizations, and other enti-
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ties to perform audits and retrofit services under 
this section. 
(f) ELEMENTS OF REEP PROGRAM.—The elements 
of the REEP program shall include the following: 
(1) The Administrator and the Secretary of En-
ergy shall establish goals and standards for accom-
plishing the purpose stated in subsection (c)(1), and 
shall annually review and, as appropriate, revise 
such goals and standards. 
(2) 
Residential 
Energy 
Services 
Network 
(RESNET) certification of building energy and envi-
ronment auditors, inspectors, and raters, or an 
equivalent certification system as determined by the 
Administrator. 
(3) Building Performance Institute (BPI) cer-
tification or licensing by States of building energy 
and environmental retrofit contractors, or an equiva-
lent certification or licensing system as determined 
by the Administrator. 
(4) Building Performance Institute, Residential 
Energy Services Network, or other appropriate in-
formation on equipment and procedures, as deter-
mined by the Administrator, that contractors can 
use to test the energy and environmental efficiency 
of buildings effectively (such as infrared photog-
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raphy and pressurized testing, and tests for water 
use and indoor air quality). 
(5) Provision of clear and effective materials to 
describe the testing and retrofit processes for typical 
buildings. 
(6) Suggested guidelines for offering and man-
aging prescriptive building retrofit programs and 
performance-based building retrofit programs for 
residential and commercial buildings. 
(7) 
Suggested 
guidelines 
for 
applying 
retrocommissioning principles to improve a build-
ing’s operations and maintenance procedures. 
(8) Determination of energy savings in a per-
formance-based building retrofit program through— 
(A) for residential buildings, comparison of 
before and after retrofit scores on the Home 
Energy Rating System (HERS) Index, where 
the final score is produced by an objective third 
party; 
(B) for commercial buildings, Environ-
mental Protection Agency Portfolio Manager 
benchmarks; or 
(C) for either residential or commercial 
buildings, use of an Administrator-approved 
simulation program, subject to appropriate soft-
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ware standards and verification of at least 15 
percent of all work done. 
(9) Suggested guidelines for utilizing the En-
ergy Star Portfolio Manager, the Home Energy Rat-
ing System (HERS) rating system, Home Perform-
ance with Energy Star program approvals, and any 
other tools associated with the retrofit program. 
(10) Requirements and guidelines for post-ret-
rofit inspection and confirmation of work and energy 
savings. 
(11) Detailed descriptions of funding options 
for the benefit of State and local governments, along 
with model forms, accounting aids, agreements, and 
guides to best practices. 
(12) Guidelines for obtaining certification of 
buildings after retrofit as Energy Star buildings, as-
signing Home Energy Rating System (HERS) rat-
ing, and completing applicable building performance 
labels. 
(13) Sample materials for publicizing the pro-
gram to building owners, including public service an-
nouncements and advertisements. 
(14) Processes for tracking the numbers and lo-
cations of buildings retrofitted under the REEP pro-
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gram, with information on projected and actual sav-
ings of energy and its value over time. 
(15) A requirement that building retrofits con-
ducted pursuant to a REEP program, as appro-
priate, especially in all air-conditioned buildings, 
shall use roofing materials that demonstrate— 
(A) on residential single family homes and 
other buildings with slanted roofs— 
(i) for fiberglass asphalt-shingle roof-
ing, an initial solar reflectance of 0.3 or 
higher; or 
(ii) for all other roofing materials, an 
initial solar reflectance of 0.4 or higher; 
and 
(B) on commercial buildings and all build-
ings with flat roofs, roofing materials with— 
(i) an initial solar reflectance of 0.7 or 
higher; 
(ii) a solar reflectance value 3 years 
after installation (‘‘h’’ solar reflectance) of 
0.55 or higher; and 
(iii) a thermal emittance of 0.8 or 
higher. 
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(g) REQUIREMENTS.—As a condition of receiving 
funding for the REEP program appropriated pursuant to 
this section, a State shall— 
(1) adopt the standards for training, certifi-
cation of contractors, certification of buildings, and 
post-retrofit inspection as developed by the Adminis-
trator and the Secretary of Energy for residential 
and commercial buildings, respectively, except as 
necessary to match local conditions, needs, efficiency 
opportunities, or other local factors, or to accord 
with State laws or regulations, and then only after 
60 days have expired after the State provides notice 
to the Administrator or the Secretary of Energy, as 
appropriate, of the need for such variance; and 
(2) establish fiscal controls and accounting pro-
cedures (which conform to generally accepted gov-
ernment accounting principles) sufficient to ensure 
proper accounting during appropriate accounting pe-
riods for payments received and disbursements, and 
for fund balances. 
The Secretary of Energy shall conduct or require each 
State to have such independent financial audits of REEP- 
related funding as the Secretary of Energy considers nec-
essary or appropriate to carry out the purposes of this 
section. 
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(h) FINANCIAL OPTIONS TO SUPPORT REEP PRO-
GRAM.—The Secretary of Energy and the Administrator 
shall support the implementation through State REEP 
programs of alternate means of creating incentives for, or 
reducing financial barriers to, improved energy and envi-
ronmental performance in buildings, consistent with this 
section, including— 
(1) implementing prescriptive building retrofit 
programs and performance-based building retrofit 
programs; 
(2) providing credit enhancement, interest rate 
subsidies, or other credit support; 
(3) providing initial capital for public revolving 
fund financing of retrofits, with repayments by bene-
ficiary building owners over time through their tax 
payments, calibrated to create net positive cash flow 
to the building owner; 
(4) providing funds to support utility-operated 
retrofit programs with repayments over time 
through utility rates, calibrated to create net positive 
cash flow to the building owner, and transferable 
from one building owner to the next with the build-
ing’s utility services; and 
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(5) other means proposed by State and local 
agencies, subject to the approval of the Secretary of 
Energy. 
(i) FEDERAL FINANCIAL SUPPORT.— 
(1) IN GENERAL.—Financial support shall be 
provided to a State Energy Program, for the specific 
purpose of supporting the REEP program. 
(2) ALLOCATION OF FUNDING.— 
(A) INITIAL YEAR.—The Secretary of En-
ergy shall allocate amounts appropriated during 
the initial year of the REEP program among 
the States in accordance with the State Energy 
Program formula under section 363 of the En-
ergy Policy and Conservation Act (42 U.S.C. 
6323). 
(B) SUBSEQUENT YEARS.—In the second 
year of the REEP program and thereafter, the 
Secretary of Energy shall allocate amounts 
among the States as follows: 
(i) 1⁄2 of available or appropriated 
funds shall be allocated among the States 
in accordance with the State Energy Pro-
gram formula described in subparagraph 
(A). 
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(ii) 1⁄2 of available or appropriated 
funds shall be allocated among the States 
in accordance with the relative building en-
ergy efficiency and environmental perform-
ance of the various States in retrofitting 
buildings in accordance with this section 
during the preceding year, with higher allo-
cations going to States showing greater 
success in improving energy and environ-
mental performance of the buildings retro-
fitted in that State during that preceding 
year. 
(3) FORMS
OF
SUPPORT.—State and local 
REEP programs may make per-building direct ex-
penditures for retrofit improvements, or their equiv-
alent in indirect financial support, from Federal 
funds as follows: 
(A) RESIDENTIAL PROGRAM.— 
(i) AWARDS.—For residential build-
ings, a program may provide— 
(I) $500 to support a free or low- 
cost detailed building energy audit 
that prescribes energy-reducing meas-
ures, with such amount fully recover-
able from the recipient if the pre-
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scribed measures are not performed, 
within 1 year after completion of the 
audit, sufficiently to enable the build-
ing to achieve at least a 20 percent 
reduction in energy use; 
(II) a total of $1,000 for meas-
ures, prescribed in an audit conducted 
under subclause (I), designed to re-
duce energy consumption by more 
than 10 percent, and $2,000 for 
measures prescribed in such an audit, 
designed to reduce energy consump-
tion by more than 20 percent; 
(III) $3,000 for demonstrated 
savings of 20 percent, pursuant to a 
performance-based building retrofit 
program; and 
(IV) $150 for each additional 
percentage point of energy savings 
achieved beyond savings for which 
funding is provided under subclause 
(II) or (III). 
Funding shall not be provided under 
clauses (II) and (III) for the same energy 
savings. 
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(ii) MAXIMUM PERCENTAGE.—Awards 
under clause (i) shall not to exceed 50 per-
cent of retrofit costs for each building. 
(iii) 
ADDITIONAL
AWARDS.—Addi-
tional awards may be provided, for build-
ings achieving at least 20 percent energy 
savings using funding provided under 
clause (i), as follows: 
(I) WATER.—Grants of $600 
may be made for measures projected 
or measured (using an appropriate 
method approved by the Adminis-
trator) to achieve at least 35 percent 
potable water savings through equip-
ment or systems with an estimated 
service life of not less than seven 
years, and an additional $20 may be 
provided for each additional one per-
cent of such savings, up to a max-
imum total grant of $1,200. 
(II) RENEWABLE ENERGY USE.— 
For cost-effective use of renewable en-
ergy, an award of up to $2,000 may 
be provided for uses with respect to 
which Federal tax credits are not 
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available, and the Administrator shall 
develop relevant standards for docu-
menting compliance. 
(B) COMMERCIAL PROGRAM.— 
(i) AWARDS.—For commercial build-
ings, a program may provide— 
(I) $1,000 to support a free or 
low-cost building audit of energy-re-
duction potential that prescribes en-
ergy efficiency improvements and im-
provements of other building at-
tributes, with such amount fully re-
coverable from the recipient if the pre-
scribed improvements are not per-
formed, within 1 year after completion 
of the audit, sufficiently to enable the 
building to achieve at least a 20 per-
cent reduction in energy use; 
(II) $0.15 per square foot of ret-
rofit area for demonstrated energy use 
reductions from 20 percent to 30 per-
cent; 
(III) $0.75 per square foot for 
demonstrated energy use reductions 
from 30 percent to 40 percent; 
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(IV) $1.60 per square foot for 
demonstrated energy use reductions 
from 40 percent to 50 percent; and 
(V) $2.50 per square foot for 
demonstrated energy use reductions 
exceeding 50 percent. 
(ii) LIMITATION.—Amounts provided 
under subclauses (II) through (V) of clause 
(i) combined shall not exceed 50 percent of 
the total retrofit cost of a building. 
(iii) 
ADDITIONAL
AWARDS.—Addi-
tional awards may be provided, for build-
ings achieving at least 20 percent energy 
savings using funding provided under 
clause (i), as follows: 
(I) WATER.—Grants may be 
made for whole building potable water 
use reduction (using an appropriate 
method approved by the Secretary of 
Energy) for up to 50 percent of the 
total retrofit cost, including amounts 
up to— 
(aa) $24.00 per thousand 
gallons per year of potable water 
savings of 40 percent or more; 
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(bb) $27.00 per thousand 
gallons per year of potable water 
savings of 50 percent or more; 
and 
(cc) $30.00 per thousand 
gallons per year of potable water 
savings of 60 percent or more. 
(II) RENEWABLE ENERGY USE.— 
For cost-effective use of renewable en-
ergy, an award of up to $10,000 may 
be provided for uses with respect to 
which Federal tax credits are not 
available, and the Secretary of Energy 
shall develop relevant standards for 
documenting compliance. 
(III) ENVIRONMENTAL IMPROVE-
MENTS.—For other environmental im-
provements relating to— 
(aa) indoor air quality; 
(bb) natural lighting; 
(cc) use of renewable mate-
rials; and 
(dd) any other such im-
provements, as determined by the 
Secretary of Energy, that do not 
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result in a decrease in energy ef-
ficiency, 
an award of up to $1,000 for improve-
ments in each such category. 
(C) 
HISTORIC
BUILDINGS.—Notwith-
standing subparagraphs (A) and (B), a building 
in or eligible for the National Register of His-
toric Places shall be eligible for awards under 
this paragraph in amounts up to 120 percent of 
the amounts set forth in subparagraphs (A) and 
(B). 
(D) SUPPLEMENTAL SUPPORT.—State and 
local governments may supplement the per- 
building expenditures under this paragraph 
with funding from other sources. 
(j) SOURCES OF FEDERAL FUNDS.— 
(1) ADDITIONAL
STATE
ENERGY
PROGRAM 
FUNDS.—Any appropriated funding provided to a 
State Energy Program that is not specifically re-
quired to be expended for a different federally des-
ignated purpose may be used to support a REEP 
program. 
(2) PROGRAM ADMINISTRATION.—State Energy 
Offices or designated State agencies may expend up 
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to 10 percent of funding provided under this section 
for program administration. 
(3) AUTHORIZATION
OF
APPROPRIATIONS.— 
There are authorized to be appropriated for the pur-
poses of this section, for each of fiscal years 2010, 
2011, 2012, and 2013— 
(A) $2,500,000,000 and such additional 
sums as may be necessary to the Secretary of 
Energy for distribution to State Energy Offices 
and other designated State agencies in accord-
ance with this section; 
(B) $200,000,000 to the Administrator for 
program administration costs; 
(C) $200,000,000 to the Secretary of En-
ergy for program administration costs; and 
(D) $50,000,000 to the Secretary of Hous-
ing and Urban Development for program ad-
ministration costs. 
Æ 
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