I 
113TH CONGRESS 
1ST SESSION H. R. 2128 
To provide for the establishment of a Home Energy Savings Retrofit Rebate 
Program, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 23, 2013 
Mr. MCKINLEY (for himself and Mr. WELCH) introduced the following bill; 
which was referred to the Committee on Energy and Commerce, and in 
addition to the Committee on Ways and Means, 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 a Home Energy Savings 
Retrofit Rebate Program, and for other purposes. 
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 ‘‘Home Owner Man-
aging Energy Savings Act of 2013’’ or the ‘‘HOMES 
Act’’. 
SEC. 2. DEFINITIONS. 
In this Act: 
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(1) BPI.—The term ‘‘BPI’’ means the Building 
Performance Institute. 
(2) ELECTRIC
UTILITY.—The term ‘‘electric 
utility’’ means any company, person, cooperative, 
State, or Indian tribe agency that delivers or sells 
electric energy at retail, including nonregulated utili-
ties, utilities that are subject to State or Indian tribe 
rate regulation, and Federal power marketing ad-
ministrations. 
(3) FEDERAL REBATE PROCESSING SYSTEM.— 
The term ‘‘Federal Rebate Processing System’’ 
means the Federal Rebate Processing System estab-
lished under section 3(b). 
(4) HOME.—The term ‘‘home’’ means a resi-
dential dwelling unit in a building with no more than 
4 dwelling units that— 
(A) is located in the United States; 
(B) was constructed before the date of en-
actment of this Act; and 
(C) is occupied at least 6 months out of 
each of the 2 years immediately preceding the 
application for a rebate under this Act. 
(5) HOME ENERGY SAVINGS RETROFIT REBATE 
PROGRAM.—The term ‘‘Home Energy Savings Ret-
rofit Rebate Program’’ means the Home Energy 
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Savings Retrofit Rebate Program established under 
section 3(a). 
(6) HOMEOWNER.—The term ‘‘homeowner’’ 
means the owner of an owner-occupied home or a 
tenant-occupied home. 
(7) INDIAN TRIBE.—The term ‘‘Indian tribe’’ 
has the meaning given the term in section 4 of the 
Indian Self-Determination and Education Assistance 
Act (25 U.S.C. 450b). 
(8) NATURAL GAS UTILITY.—The term ‘‘nat-
ural gas utility’’ means any company, person, coop-
erative, State or local governmental agency or in-
strumentality, or Indian tribe that transports, dis-
tributes, or sells natural gas at retail. 
(9) 
QUALIFIED
CONTRACTOR.—The 
term 
‘‘qualified contractor’’ means a residential energy ef-
ficiency contractor that meets minimum applicable 
requirements established under section 4. 
(10) QUALIFIED
HOME
ENERGY
EFFICIENCY 
RETROFIT.—The term ‘‘qualified home energy effi-
ciency retrofit’’ means a retrofit described in section 
8(d). 
(11) QUALITY
ASSURANCE
PROGRAM.—The 
term ‘‘quality assurance program’’ means a program 
established under this Act, or recognized by the Sec-
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retary under this Act, to oversee the delivery of 
home efficiency retrofit programs to ensure that 
work is performed in accordance with standards and 
criteria established under this Act. Delivery of ret-
rofit programs includes delivery of quality assurance 
reviews of rebate applications and field inspections. 
(12) QUALITY
ASSURANCE
PROVIDER.—The 
term ‘‘quality assurance provider’’ means any entity 
that meets the minimum applicable requirements es-
tablished under section 6(b). 
(13) REBATE AGGREGATOR.—The term ‘‘rebate 
aggregator’’ means an entity that meets the require-
ments of section 5. 
(14) RESNET.—The term ‘‘RESNET’’ means 
the Residential Energy Services Network, which is a 
nonprofit certification and standard setting organi-
zation for home energy raters that evaluate the en-
ergy performance of a home and Energy Smart Con-
tractors that make energy improvements to the 
home. 
(15) 
SECRETARY.—The 
term 
‘‘Secretary’’ 
means the Secretary of Energy. 
(16) STATE.—The term ‘‘State’’ means— 
(A) a State; 
(B) the District of Columbia; 
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(C) the Commonwealth of Puerto Rico; 
(D) Guam; 
(E) American Samoa; 
(F) the Commonwealth of the Northern 
Mariana Islands; 
(G) the United States Virgin Islands; and 
(H) any other territory or possession of the 
United States. 
SEC. 3. HOME ENERGY SAVINGS RETROFIT REBATE PRO-
GRAM. 
(a) IN GENERAL.—The Secretary shall establish the 
Home Energy Savings Retrofit Rebate Program. 
(b) FEDERAL REBATE PROCESSING SYSTEM.— 
(1) IN
GENERAL.—Not later than 180 days 
after the date of enactment of this Act, the Sec-
retary, in consultation with the Secretary of the 
Treasury, shall— 
(A) establish a Federal Rebate Processing 
System which shall serve as a database and in-
formation technology system that will allow re-
bate aggregators to submit claims for reim-
bursement using standard data protocols; 
(B) establish a national retrofit Web site 
that provides information on the Home Energy 
Savings Retrofit Rebate Program, including— 
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(i) how to determine whether par-
ticular efficiency measures are eligible for 
rebates; and 
(ii) how to participate in the program; 
and 
(C) make available model forms for dem-
onstrating compliance with all applicable re-
quirements of this Act, which shall be required 
to be submitted by— 
(i) each qualified contractor on com-
pletion of an eligible home energy retrofit; 
and 
(ii) each quality assurance provider on 
completion of field verification. 
(2) MODEL FORMS.—In carrying out paragraph 
(1)(C), the Secretary shall consider the model forms 
developed by the National Home Performance Coun-
cil, Inc. If the Secretary does not adopt these forms, 
the Secretary shall convene a group of stakeholders 
that are directly and materially affected by the Pro-
gram to develop the final forms. 
SEC. 4. CONTRACTORS. 
(a) CONTRACTOR QUALIFICATIONS.—A contractor 
may perform retrofit work under the Home Energy Sav-
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ings Retrofit Rebate Program in a State if the con-
tractor— 
(1) meets all applicable contractor licensing re-
quirements established by the State; 
(2) is— 
(A) accredited by— 
(i) BPI as an Accredited Contractor; 
(ii) RESNET as an Energy Smart 
Home Performance Team; 
(iii) the Air Conditioning Contractors 
of America as a QA Home Performance 
Contractor; 
(iv) a State-based certification pro-
gram established to carry out State energy, 
clean air, or environmental programs; or 
(v) an equivalent certification program 
approved by the Secretary for this purpose; 
or 
(B) the general contractor, that— 
(i) subjects the energy efficiency ret-
rofit to a review and quality assurance in-
spection by a third party approved by the 
Department of Energy for performing 
quality assurance inspections; and 
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(ii) employs, or otherwise utilizes sub-
contractors who employ, individuals to 
complete 
individual 
or 
comprehensive 
scopes of work related to the energy effi-
ciency retrofit who are certified by— 
(I) BPI; 
(II) RESNET; 
(III) North American Technical 
Excellence; 
(IV) the Air Conditioning Con-
tractors of America; 
(V) the Laborers International 
Union of North America; 
(VI) a regional or State Depart-
ment of Energy Weatherization Train-
ing Center; or 
(VII) other contractor or worker 
certification programs approved by 
the Secretary; 
(3) holds insurance coverage of at least 
$1,000,000 for general liability, and for such other 
purposes and in such other amounts as required by 
the State; and 
(4) provides warranties to the homeowner that 
completed work will— 
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(A) be free of significant defects; 
(B) be installed in accordance with the 
specifications of the manufacturer, and all ap-
plicable State and local codes; and 
(C) perform properly for a period of at 
least 1 year after the date of completion of the 
work. 
(b) AGREEMENT
BETWEEN
CONTRACTOR
AND 
HOMEOWNER.—A contractor who performs retrofit work 
under the Home Energy Savings Retrofit Rebate Program 
must sign a written or electronic contract with the home-
owner that includes— 
(1) an agreement to not increase the cost of the 
home improvement as a result of the rebates re-
ceived under this Act with respect to physical im-
provements made to the home; 
(2) if the contractor and homeowner choose the 
transferable rebate option authorized under section 
7, an agreement to provide the homeowner, before a 
contract is executed between the contractor and the 
homeowner covering the eligible work, a notice of the 
rebate amount the contractor intends to apply for 
with respect to eligible work under this Act; and 
(3) an acknowledgement that the homeowner— 
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(A) has reviewed the national retrofit Web 
site for the program; 
(B) understands the scope of work in-
tended to be completed and that such work may 
be eligible for a rebate under the program; and 
(C) understands that the rebate funds are 
fully subject to availability from the Depart-
ment or Rebate Aggregator and not within the 
control of the contractor. 
SEC. 5. REBATE AGGREGATORS. 
(a) IN GENERAL.—The Secretary shall develop a net-
work of rebate aggregators or a national rebate aggregator 
that can facilitate the delivery of rebates to participating 
homeowners or contractors by— 
(1) reviewing the proposed rebate application 
for completeness and accuracy; 
(2) reviewing measures for eligibility in accord-
ance with this Act; 
(3) providing data to the Federal Rebate Proc-
essing System consistent with data protocols estab-
lished by the Secretary; and 
(4) as soon as practicable but not later than 30 
days after the date of receipt, distributing funds re-
ceived from the Department of Energy to home-
owners or contractors. 
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(b) ELIGIBILITY.—To be eligible to apply to the Sec-
retary for approval as a rebate aggregator, an entity shall 
be— 
(1) a Home Performance with Energy Star pro-
gram sponsor; 
(2) an entity administering a residential or 
building energy efficiency retrofit program, solar 
program, or other such program impacting energy 
efficiency in homes established or approved by a 
State or local government; 
(3) a Federal power marketing administration, 
an electric utility, or a natural gas utility that has— 
(A) a residential energy efficiency retrofit 
program; and 
(B) a quality assurance provider or pro-
vider network; or 
(4) an entity that demonstrates to the Sec-
retary that the entity can perform the functions of 
a rebate aggregator, without disrupting existing resi-
dential retrofits in the States that are incorporating 
the Home Energy Savings Retrofit Rebate Program, 
including demonstration of— 
(A) the capability to provide electronic 
data to the Federal Rebate Processing System; 
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(B) a financial system that is capable of 
tracking the distribution of rebates to partici-
pating contractors; and 
(C) coordination and cooperation by the 
entity with the appropriate State energy office 
regarding participation in the existing energy 
efficiency programs that will be delivering the 
Home Energy Savings Retrofit Rebate Pro-
gram. 
(c) PUBLIC UTILITY COMMISSION EFFICIENCY TAR-
GETS.—The Secretary shall— 
(1) develop guidelines for States and local gov-
ernments to use to allow utilities participating as re-
bate aggregators to count the energy savings from 
the participation of the utilities toward State and 
local level energy savings targets; and 
(2) work with States and local governments to 
assist in the adoption of those guidelines for the 
purposes and duration of the Home Energy Savings 
Retrofit Rebate Program. 
SEC. 6. QUALITY ASSURANCE PROVIDERS. 
(a) QUALIFICATIONS.—An entity shall be considered 
a quality assurance provider under this Act only if the en-
tity is qualified through— 
(1) the BPI; 
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(2) RESNET; or 
(3) any other entity designated by the Secretary 
such as a State or local government or a residential 
energy efficiency retrofit program approved by a 
State or local government. 
(b) FUNCTIONS.—A quality assurance provider 
shall— 
(1) be independent of the contractor; 
(2) confirm that contractors or installers of 
home energy efficiency retrofits meet the qualifica-
tion requirements of this Act; and 
(3) perform field inspections to confirm the 
compliance of the retrofit work and the simulated 
energy savings under the Home Energy Savings Ret-
rofit Rebate Program. 
SEC. 7. TRANSFERABILITY OF HOME ENERGY SAVINGS RE-
BATE. 
A homeowner may transfer the rebate provided under 
the Home Energy Savings Retrofit Rebate Program to the 
contractor performing the retrofit work if the contractor 
completes a form that accompanies the rebate form devel-
oped under section 3(b). This form, to be made publically 
available by the Secretary 90 days after the date of enact-
ment of this Act, must be approved by paper signature 
or electronically by the homeowner and include— 
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quired quality assurance assessments. In the 
first year of the program, the first 10 homes 
retrofit by each contractor and then 60 percent 
of all future homes shall be required to have a 
quality assurance assessment. The Secretary 
shall establish a cost effective schedule of re-
quired quality assurance assessments for subse-
quent years based on performance under the 
program. 
(3) LIMITATION.—In no event shall the amount 
of rebates under this subsection exceed— 
(A) $10,000 with respect to any individual; 
or 
(B) 50 percent of the qualified home en-
ergy efficiency expenditures paid or incurred by 
the homeowner under subsection (c). 
(c) QUALIFIED HOME ENERGY EFFICIENCY EX-
PENDITURES.—For purposes of this section, the term 
‘‘qualified home energy efficiency expenditures’’— 
(1) means any amount paid or incurred by a 
homeowner for a qualified home energy efficiency 
retrofit, including the cost of diagnostic procedures, 
labor, reporting, and modeling; and 
(2) does not include— 
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(A) improvements to swimming pools or 
hot tubs; or 
(B) any amount paid or incurred to pur-
chase or install a biomass, wood, or wood pellet 
furnace, boiler, or stove, unless the system— 
(i) is designed to meet at least 70 per-
cent of the heating demands of the home; 
(ii) in the case of woodstoves, is cer-
tified by the Environmental Protection 
Agency; 
(iii) in the case of a wood stove re-
placement, replaces an existing wood stove 
with a stove that is certified by the Envi-
ronmental Protection Agency, if a voucher 
is provided by the installer or other respon-
sible party certifying that the old stove has 
been removed and made inoperable; 
(iv) in the case of a furnace or boiler, 
is in a home with a distribution system 
(such as piping, ducts, vents, blowers, or 
affixed fans) that allows heat from the fur-
nace or boiler to reach all or most parts of 
the home; and 
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(v) is certified by an independent test 
laboratory approved by the Secretary as 
having— 
(I) thermal efficiency (with a 
high heating value) of at least 75 per-
cent for stoves and 80 percent for fur-
naces and boilers; 
(II) particulate emissions of less 
than 3.0 grams per hour for wood 
stoves or pellet stoves; and 
(III) less than 0.07 lbs per mil-
lion BTU for outdoor boilers and fur-
naces. 
(d) QUALIFIED HOME ENERGY EFFICIENCY RET-
ROFIT.— 
(1) IN GENERAL.—A qualified home energy ef-
ficiency retrofit is a retrofit that implements meas-
ures, during a rebate-eligible year in the existing 
principal residence of the homeowner which is lo-
cated in the United States, intended to reduce the 
energy use of such residence. A qualified home en-
ergy efficiency retrofit shall— 
(A) be implemented and installed by a 
qualified contractor; 
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(B) install a set of measures modeled to 
achieve a reduction in home energy use of 20 
percent or more from the baseline established 
under subparagraph (C), using computer mod-
eling software approved under paragraph (2); 
(C) establish the baseline energy use as 
provided in subsection (e)(1)(C); 
(D) implement a test-out procedure, fol-
lowing guidelines of the applicable accrediting 
program described in section 4(a)(2) (A), (B), 
or (C), or equivalent guidelines approved by the 
Secretary for this purpose, to ensure— 
(i) the safe operation of all systems 
post retrofit; and 
(ii) that all improvements are included 
in, and have been installed according to— 
(I) standards of the applicable 
accrediting program described in sec-
tion 4(a)(2) (A), (B), or (C); 
(II) manufacturers installation 
specifications; and 
(III) all applicable State and 
local codes or equivalent standards 
approved by the Secretary for this 
purpose; 
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(E) include only measures that have an av-
erage estimated life of 5 years or more as deter-
mined by the Secretary; 
(F) not include any amount which is paid 
or incurred in connection with any expansion of 
the square footage of the residence; and 
(G) not include improvements to swimming 
pools or hot tubs or any other expenditure spe-
cifically excluded by the Secretary. 
(2) APPROVED
MODELING
SOFTWARE.—The 
contractor shall use modeling software certified by 
RESNET as following the software verification test 
suites in section 4.2.1 of RESNET Publication No. 
13–001, or under equivalent standards approved by 
the Secretary for this purpose, and shall have the 
ability at a minimum to assess the savings associ-
ated with all the measures for Home Energy Savings 
Retrofit Rebate Program. 
(3) EXCEPTION.—For purposes of paragraph 
(1)(D)(ii), installation of gas-fired appliances shall 
comply with requirements of the National Fuel Gas 
Code (ANSI Z223.1/NFPA 54) and applicable in-
stallation requirements in lieu of performance of 
combustion tests outside those required by the Na-
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tional Fuel Gas Code (2012 Edition) and the Inter-
national Fuel Gas Code (2012 Edition). 
(e) ENERGY USE REDUCTION.— 
(1) DETERMINATION OF ENERGY USE REDUC-
TION.— 
(A) IN GENERAL.—The reduction in en-
ergy use for any residence shall be determined 
by modeling the annual predicted percentage re-
duction in total energy consumption or costs for 
heating, cooling, hot water, and permanent 
lighting. It shall be modeled using computer 
modeling software approved under subsection 
(d)(2) and calibrated according to subpara-
graph (C) of this paragraph. 
(B) ENERGY COSTS.—For the purposes of 
subparagraph (A), the energy cost per unit of 
fuel for each fuel type shall be determined by 
dividing the total actual energy bill (subtracting 
taxes and fees) for the residence for that fuel 
type for the most recent available 12-month pe-
riod by the total energy units of that fuel type 
used over the same period. 
(C) BASELINE
ENERGY
USE.—For the 
purposes of subparagraph (A), the software 
model that establishes the baseline energy use 
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and predicted energy savings shall be calibrated 
according to the procedures set forth in sections 
3 and 4 of ANSI/BPI Standard BPI–2400–S– 
2012: Standard Practice for Standardized 
Qualification of Whole-House Energy Savings 
Predictions by Calibration to Energy Use His-
tory, or an equivalent standard approved by the 
Secretary for this purpose. 
(2) DOCUMENTATION.—The percent improve-
ment in energy consumption calculated under this 
section shall be documented through modeling soft-
ware described in subsection (d)(2). 
(3) MONITORING.—The Secretary— 
(A) shall periodically evaluate the software 
packages used for determining rebates under 
this section; 
(B) shall monitor and compare the pre-
dictions to the real energy data, and based on 
the results, create performance criteria to allow 
or disallow the software; and 
(C) may disallow the use of software pro-
grams that improperly assess energy savings. 
(4) CERTIFICATE
OF
RETROFIT
PERFORM-
ANCE.—The Secretary shall establish a system for 
distribution of a certificate of performance with the 
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issuance of a rebate that certifies the predicted level 
of energy use reduction achieved by the retrofit. The 
certificate will be provided to the rebate recipient. If 
the recipient is the contractor under the terms of 
section 7, the contractor shall remit the certificate to 
the homeowner, to be delivered or postmarked not 
later than 30 days after the contractor’s receipt of 
the certificate. 
(5) EXCEPTION.—The Secretary shall not uti-
lize the authority provided under this Act to— 
(A) develop, adopt, or implement a public 
labeling system that rates and compares the en-
ergy performance of one home with another; or 
(B) require the public disclosure of an en-
ergy performance evaluation or rating developed 
for any specific home. 
Nothing in this paragraph shall preclude the com-
putation, collection, or use, by the Secretary, rebate 
aggregators, or quality assurance providers, or the 
States or Indian tribes, for the purposes of gath-
ering information on the rating and comparison of 
the energy performance of homes with and without 
energy efficiency retrofits. 
(f) QUALIFICATION FOR REBATE.—On submission of 
a claim for a retrofit rebate by a rebate aggregator to the 
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system established under section 5, the Secretary shall 
provide reimbursement to the rebate aggregator, if— 
(1) the retrofit is a qualified home energy effi-
ciency retrofit; 
(2) the amount of the reimbursement is not 
more than the amount described in subsection (b); 
(3) documentation required to verify the claim 
is transmitted with the claim; and 
(4) any quality assurance assessment required 
under subsection (b)(2)(B) has been completed. 
(g) HOMEOWNER COMPLAINTS.— 
(1) IN GENERAL.—A homeowner may make a 
complaint under the quality assurance program dur-
ing the 1-year warranty period that compliance with 
the quality assurance requirements of this section 
has not been achieved. 
(2) VERIFICATION.— 
(A) IN GENERAL.—The quality assurance 
program shall provide that, on receiving a com-
plaint under paragraph (1), an independent 
quality assurance provider shall conduct field 
verification on the retrofit work performed by 
the contractor. 
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(B) 
ADMINISTRATION.—A 
verification 
under this paragraph shall be corrected in ac-
cordance with subsection (f)(4). 
(h) AUDITS.— 
(1) IN GENERAL.—On making payment for a 
submission under this section, the Secretary shall re-
view rebate requests to determine whether program 
requirements were met in all respects. 
(2) INCORRECT PAYMENT.—On a determination 
of the Secretary under paragraph (1) that a pay-
ment was made incorrectly to a party, the Secretary 
may— 
(A) recoup the amount of the incorrect 
payment; or 
(B) withhold the amount of the incorrect 
payment from the next payment made to the 
party pursuant to a subsequent request. 
(i) INCENTIVES.—The amount of incentives that the 
Secretary may provide to quality assurance providers and 
rebate aggregators under this Act shall be— 
(1) $25 for each rebate review and submission 
provided under the program; 
(2) $250 for each field inspection conducted 
under the program; or 
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(3) such other amounts as the Secretary con-
siders necessary to carry out the quality assurance 
provisions of this Act. 
SEC. 9. GRANTS TO STATES AND INDIAN TRIBES. 
(a) IN GENERAL.—A State or Indian tribe that re-
ceives a grant under subsection (d) shall be permitted to 
use the grant for— 
(1) administrative costs; 
(2) oversight of quality assurance plans; 
(3) development of a quality assurance pro-
gram; 
(4) establishment and delivery of financing pi-
lots in accordance with this Act; 
(5) coordination with existing residential ret-
rofit programs and infrastructure development to as-
sist deployment of the Home Energy Savings Ret-
rofit Rebate Program; and 
(6) the costs of carrying out the responsibilities 
of the State or Indian tribe under the Home Energy 
Savings Retrofit Rebate Program. 
(b) INITIAL GRANTS.—Not later than 60 days after 
receipt of a completed application for a grant under this 
section, the Secretary shall either make the grant or pro-
vide to the applicant an explanation for denying the grant. 
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