(B) withhold the amount of the incorrect 
payment from the next payment made to the 
party pursuant to a subsequent request. 
(h) INCENTIVES.—The amount of incentives that the 
Secretary may provide to quality assurance providers and 
rebate aggregators under this Act shall be— 
(1) $50 for each rebate review and submission 
provided under the Program; 
(2) $250 for each field inspection conducted 
under the Program; or 
(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-
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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. 
(c) INDIAN TRIBES.—The Secretary shall reserve an 
appropriate amount of funding made available to carry out 
this section for each fiscal year to make grants available 
to Indian tribes under this section. 
(d) STATE ALLOTMENTS.—From the amounts made 
available to carry out this section for each fiscal year re-
maining after the reservation required under subsection 
(c), the Secretary shall make grants available to States 
in accordance with section 15. 
(e) QUALITY ASSURANCE PROGRAMS.— 
(1) IN GENERAL.—A State or Indian tribe may 
use a grant made under this section to carry out a 
quality assurance program that is— 
(A) operated as part of a State or local 
government approved energy conservation plan 
established under part D of title III of the En-
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ergy Policy and Conservation Act (42 U.S.C. 
6321 et seq.); 
(B) managed by the office or the designee 
of the office that is— 
(i) responsible for the development of 
the plan under section 362 of that Act (42 
U.S.C. 6322); and 
(ii) to the maximum extent practicable 
conducting an existing energy efficiency 
program; and 
(C) in the case of a grant made to an In-
dian tribe, managed by an entity designated by 
the Indian tribe to carry out a quality assur-
ance program or a national quality assurance 
program manager. 
(2) NONCOMPLIANCE.—If the Secretary deter-
mines that a State or Indian tribe has not provided 
or cannot provide adequate oversight over a quality 
assurance program to ensure compliance with this 
Act, the Secretary may— 
(A) withhold further quality assurance 
funds from the State or Indian tribe; and 
(B) require that quality assurance pro-
viders operating in the State or by the Indian 
tribe be overseen by a national quality assur-
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ance program manager selected by the Sec-
retary. 
(f) IMPLEMENTATION.—A State or Indian tribe that 
receives a grant under this section may implement a qual-
ity assurance program through the State, the Indian tribe, 
or a third party designated by the State or Indian tribe, 
including— 
(1) an energy service company; 
(2) an electric utility; 
(3) a natural gas utility; 
(4) a third-party administrator designated by 
the State or Indian tribe; or 
(5) a unit of local government. 
(g) PUBLIC-PRIVATE PARTNERSHIPS.—A State or 
Indian tribe that receives a grant under this section is en-
couraged to form partnerships with utilities, energy serv-
ice companies, and other entities— 
(1) to assist in marketing a program; 
(2) to facilitate consumer financing; 
(3) to assist in implementation of the Home 
Energy Savings Retrofit Rebate Program, including 
installation of qualified home energy efficiency retro-
fits; and 
(4) to assist in implementing quality assurance 
programs. 
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(h) COORDINATION
OF
REBATE
AND
EXISTING 
STATE-SPONSORED PROGRAMS.— 
(1) IN
GENERAL.—A State or Indian tribe 
shall, to the maximum extent practicable, prevent 
duplication through coordination of a program au-
thorized under this Act with— 
(A) the Energy Star appliance rebates pro-
gram authorized under the American Recovery 
and Reinvestment Act of 2009 (Public Law 
111–5; 123 Stat. 115); and 
(B) comparable programs planned or oper-
ated by States, political subdivisions, electric 
and natural gas utilities, Federal power mar-
keting administrations, and Indian tribes. 
(2) EXISTING PROGRAMS.—In carrying out this 
subsection, a State or Indian tribe shall— 
(A) give priority to— 
(i) comprehensive retrofit programs in 
existence on the date of enactment of this 
Act, including programs under the super-
vision of State utility regulators; and 
(ii) using funds made available under 
this Act to enhance and extend existing 
programs; and 
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(B) seek to enhance and extend existing 
programs by coordinating with administrators 
of the programs. 
SEC. 10. QUALITY ASSURANCE PROGRAM. 
(a) PLAN.—As part of a grant application described 
in section 9(b), a State or Indian tribe shall submit to 
the Secretary a plan to implement a quality assurance pro-
gram that covers all federally assisted residential effi-
ciency retrofit work administered, supervised, or spon-
sored by the State or Indian tribe. 
(b) IMPLEMENTATION.—The State or Indian tribe 
shall— 
(1) develop a quality assurance program in con-
sultation with industry stakeholders, including rep-
resentatives of efficiency program managers, con-
tractors, and environmental, energy efficiency, and 
labor organizations; and 
(2) implement the quality assurance program 
not later than 180 days after receipt of a grant 
under section 9. 
(c) COMPONENTS.—The quality assurance program 
established under this section shall include— 
(1) maintenance of a list of qualified contrac-
tors authorized to perform such retrofit work as de-
scribed in section 4; and 
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(2) nonbinding targets and realistic plans for— 
(A) the recruitment of small minority- 
owned or women-owned business enterprises; 
and 
(B) the employment of graduates of train-
ing programs that primarily serve low-income 
populations with a median income that is below 
200 percent of the poverty line (as defined in 
section 673(2) of the Community Services 
Block Grant Act (42 U.S.C. 9902(2)), including 
any revision required by that section) by par-
ticipating contractors. 
(d) NONCOMPLIANCE.—If the Secretary determines 
that a State or Indian tribe has not taken the steps re-
quired under this section, the Secretary shall provide to 
the State or Indian tribe a period of at least 90 days to 
comply before suspending the participation of the State 
or Indian tribe in the program. 
SEC. 11. EVALUATION REPORT TO CONGRESS. 
(a) IN GENERAL.—Not later than 1 year after the 
date of enactment of this Act and annually thereafter, the 
Secretary shall submit to the Committee on Energy and 
Natural Resources of the Senate and the Committee on 
Energy and Commerce of the House of Representatives 
a report on the use of funds under this Act. 
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(b) CONTENTS.—The report submitted under sub-
section (a) shall evaluate— 
(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 energy efficiency and renewable 
energy retrofits; 
(4) the quantity of verifiable energy savings, 
homeowner energy bill savings, and other benefits of 
the Program; 
(5) any waste, fraud, or abuse with respect to 
such funds; and 
(6) any other information the Secretary con-
siders appropriate. 
(c) NONCOMPLIANCE.—The Secretary shall require 
rebate aggregators, States, and Indian tribes to provide 
the information required to enable the Secretary to carry 
out this section. If the Secretary determines that a rebate 
aggregator, State, or Indian tribe has not provided such 
information on a timely basis, the Secretary shall provide 
to the rebate aggregator, State, or Indian tribe a period 
of at least 90 days to provide any necessary information, 
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subject to withholding of funds or reduction of future 
grant amounts, or decertification of rebate aggregators. 
SEC. 12. ADMINISTRATION. 
(a) IN GENERAL.—Subject to section 15(b), not later 
than 30 days after the date of enactment of this Act, the 
Secretary shall provide such administrative and technical 
support to rebate aggregators, States, and Indian tribes 
as is necessary to carry out this Act. 
(b) 
APPOINTMENT
OF
PERSONNEL.—Notwith-
standing the provisions of title 5, United States Code, gov-
erning appointments in the competitive service and Gen-
eral Schedule classifications and pay rates, the Secretary 
may appoint such professional and administrative per-
sonnel as the Secretary considers necessary to carry out 
this Act. 
(c) RATE OF PAY.—The rate of pay for a person ap-
pointed under subsection (b) shall not exceed the max-
imum rate payable for GS–15 of the General Schedule 
under chapter 53 of title 5, United States Code. 
(d) INFORMATION
COLLECTION.—The Secretary 
shall establish, and make available to a homeowner, or the 
homeowner’s designated representative, seeking a rebate 
under this Act, release forms authorizing access by the 
Secretary, or a designated third-party representative to in-
formation in the utility bills of the homeowner. The form 
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shall not include personal identifying information such as 
name, address, social security number or other identifying 
information as defined by the Secretary. 
SEC. 13. TREATMENT OF REBATES. 
(a) IN GENERAL.—For purposes of the Internal Rev-
enue Code of 1986, rebates received for a qualified home 
energy efficiency retrofit under this Act— 
(1) shall not be considered taxable income to a 
homeowner; and 
(2) shall prohibit the consumer from applying 
for a tax credit allowed under section 25C or 25D 
of that Code for the same retrofit work performed 
in the home of the homeowner. If the work is addi-
tional, and not included in the rebate baseline, a 
homeowner may claim the credit. 
(b) NOTICE.— 
(1) IN
GENERAL.—A participating contractor 
shall provide notice to a homeowner of the provisions 
of subsection (a) before eligible work is performed in 
the home of the homeowner. 
(2) NOTICE IN REBATE FORM.—A homeowner 
shall be notified of the provisions of subsection (a) 
in the appropriate rebate form developed by the Sec-
retary, in consultation with the Secretary of the 
Treasury. 
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SEC. 14. PENALTIES. 
(a) IN GENERAL.—It shall be unlawful for any per-
son to violate this Act (including any regulation issued 
under this Act), other than a violation as the result of 
a clerical error. 
(b) CIVIL PENALTY.—In addition to any penalty ap-
plicable under other Federal law for fraud or other crimes, 
any person who commits a violation of this Act shall be 
liable to the United States for a civil penalty in an amount 
that is not more than the higher of— 
(1) $15,000 for each violation; or 
(2) 3 times the value of any associated rebate 
under this Act. 
(c) ADMINISTRATION.—The Secretary may— 
(1) assess and compromise a penalty imposed 
under subsection (b); and 
(2) require from any entity the records and in-
spections necessary to enforce this Act. 
SEC. 15. FUNDING. 
(a) AUTHORIZATION OF APPROPRIATIONS.— 
(1) IN GENERAL.—There are authorized to be 
appropriated to the Secretary to carry out this Act 
$250,000,000 for each of fiscal years 2021 through 
2025, to remain available until expended. 
(2) MAINTENANCE OF FUNDING.—Funds pro-
vided under this section shall supplement and not 
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supplant any Federal and State funding provided to 
carry out energy efficiency programs in existence on 
the date of enactment of this Act. 
(b) GRANTS TO STATES.— 
(1) IN
GENERAL.—Of the amounts provided 
under subsection (a), not more than 6 percent shall 
be used to carry out section 9. 
(2) DISTRIBUTION
TO
STATE
ENERGY
OF-
FICES.—Not later than 45 days after the date of en-
actment of this Act, the Secretary shall determine a 
formula to provide funds described in paragraph (1) 
to State energy offices, in accordance with the allo-
cation formula for 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.). 
(c) TRACKING OF REBATES AND EXPENDITURES.— 
Of the amount provided under subsection (a), not more 
than 2.5 percent are authorized to be appropriated to the 
Secretary to be used for costs associated with tracking re-
bates and expenditures through the Federal Rebate Proc-
essing System under this Act, technical assistance to 
States, and related administrative costs incurred by the 
Secretary. 
(d) PROGRAM REVIEW AND BACKSTOP FUNDING.— 
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(1) IN
GENERAL.—Not later than 180 days 
after the date of enactment of this Act, the Sec-
retary shall perform a State-by-State analysis and 
review the distribution of rebates under this Act. 
(2) ADJUSTMENT.—The Secretary may allocate 
technical assistance funding to assist States that 
have not sufficiently benefitted from the Home En-
ergy Savings Retrofit Rebate Program. 
SEC. 16. PILOT PROGRAM. 
(a) ESTABLISHMENT.— 
(1) IN GENERAL.—Notwithstanding any other 
provision of this Act, the Secretary shall establish a 
Residential Energy Efficiency Pay for Performance 
pilot program for States to encourage the use of 
measured energy savings, and financial payments for 
those energy savings, in the operation of residential 
energy efficiency programs. 
(2) CRITERIA.—Not later than 180 days after 
the date of enactment of this Act, the Secretary 
shall provide common measurement criteria, devel-
oped with input from home performance industry 
stakeholders, to ensure comparability among pro-
grams but allow flexibility in program design. 
(b) GRANTS.—In carrying out the pilot program es-
tablished under this section, the Secretary shall provide, 
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on a competitive basis, grants to not less than 5 State 
energy offices. 
(c) AUTHORIZATION OF APPROPRIATIONS.—For fis-
cal year 2021, there are authorized to be appropriated to 
carry out this section $100,000,000. 
(d) DEFINITION.—In this section, the term ‘‘State 
energy office’’ means the office or agency of a State re-
sponsible for developing the State energy plan for the 
State under section 362 of the Energy Policy and Con-
servation Act (42 U.S.C. 6322). 
Æ 
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