IB 
Union Calendar No. 335 
111TH CONGRESS 
2D SESSION 
H. R. 4785 
[Report No. 111–585, Part I] 
To amend the miscellaneous rural development provisions of the Farm Secu-
rity and Rural Investment Act of 2002 to authorize the Secretary of 
Agriculture to make loans to certain entities that will use the funds 
to make loans to consumers to implement energy efficiency measures 
involving structural improvements and investments in cost-effective, com-
mercial off-the-shelf technologies to reduce home energy use. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 9, 2010 
Mr. CLYBURN (for himself, Mr. WHITFIELD, Mr. PERRIELLO, and Mr. 
SPRATT) introduced the following bill; which was referred to the Com-
mittee on Agriculture, and in addition to the Committee on Energy and 
Commerce, for a period to be subsequently determined by the Speaker, 
in each case for consideration of such provisions as fall within the juris-
diction of the committee concerned 
SEPTEMBER 14, 2010 
Reported from the Committee on Agriculture with amendments 
[Strike out all after the enacting clause and insert the part printed in italic] 
SEPTEMBER 14, 2010 
Additional sponsors: Mr. BROWN of South Carolina, Mr. WILSON of South 
Carolina, Mr. INGLIS, Mr. STUPAK, Mr. JOHNSON of Georgia, Mr. GOR-
DON of Tennessee, Mr. PASTOR of Arizona, Ms. MARKEY of Colorado, 
Mr. BRIGHT, Mr. BUTTERFIELD, Mr. MARSHALL, Mr. ROE of Tennessee, 
Ms. HERSETH SANDLIN, Mr. CHANDLER, Mr. FILNER, Mr. ELLSWORTH, 
Mr. CUELLAR, Mr. WALZ, Mr. BISHOP of Georgia, Ms. GIFFORDS, Mr. 
BOSWELL, Mr. ROGERS of Alabama, Mr. THOMPSON of Mississippi, Mr. 
ROGERS of Kentucky, Mr. HILL, Mr. SALAZAR, Mr. KISSELL, Mr. 
BOOZMAN, Mr. MOORE of Kansas, Mr. WILSON of Ohio, Mr. BOUCHER, 
Mr. RODRIGUEZ, Ms. HIRONO, Mr. LUJA´N, Mr. SPACE, Mr. HARE, Mr. 
PLATTS, Mr. ROSS, Mr. BOCCIERI, Mr. GUTHRIE, Mr. PRICE of North 
Carolina, Mr. KRATOVIL, Mr. THOMPSON
of Pennsylvania, Mr. 
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(C) any entity primarily owned or con-
trolled by an entity described in subparagraph 
(A) or (B). 
(2) ENERGY EFFICIENCY MEASURE.—The term 
‘‘energy efficiency measure’’, with respect to property 
served by an eligible entity, means a structural im-
provement and investment in a cost-effective, commer-
cial off-the-shelf technology to reduce energy use. 
(3) QUALIFIED CONSUMER.—The term ‘‘qualified 
consumer’’ means a consumer served by an eligible 
entity that has the ability to repay a loan made 
under subsection (d), as determined by an eligible en-
tity. 
(4) QUALIFIED ENTITY.—The term ‘‘qualified en-
tity’’ means any organization that the Secretary de-
termines has significant experience in providing eligi-
ble entities with— 
(A) advice on energy, environmental, energy 
efficiency, and information research and tech-
nology; 
(B) training, education, and consulting; 
(C) guidance in energy and operational 
issues and rural community and economic devel-
opment; and 
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(D) other relevant assistance, as determined 
by the Secretary. 
(5) RURAL AREA.—The term ‘‘rural area’’ means 
any area other than— 
(A) a city or town that has a population of 
greater than 50,000 inhabitants; and 
(B) any urbanized area contiguous and ad-
jacent to a city or town described in subpara-
graph (A). 
(6) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Agriculture, acting through the Rural 
Utilities Service. 
(c) LOANS TO ELIGIBLE ENTITIES.— 
(1) LOANS AUTHORIZED.—Subject to paragraph 
(2), the Secretary shall make loans to an eligible enti-
ty that agrees that the loan funds will be used to 
make loans to qualified consumers as described in 
subsection (d) for the purpose of implementing an en-
ergy efficiency measure. 
(2) LIST, 
PLAN, 
AND
MEASUREMENT
AND 
VERIFICATION REQUIRED.— 
(A) IN GENERAL.—As a condition to receiv-
ing a loan under paragraph (1), an eligible enti-
ty shall— 
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(i) establish a list of energy efficiency 
measures expected to decrease energy use or 
costs of a qualified consumer; 
(ii) prepare an implementation plan 
for use of the loan funds to ensure that a 
loan to a qualified consumer is at least 
commensurate with the expected energy sav-
ings the qualified consumer shall expect to 
receive from the activities funded by the 
loan; and 
(iii) provide for appropriate measure-
ment and verification to ensure the effective-
ness of the energy efficiency loans made by 
the eligible entity. 
(B) REVISION OF LIST OF ENERGY EFFI-
CIENCY MEASURES.—An eligible entity may up-
date the list required under subparagraph (A)(i) 
to account for newly available efficiency tech-
nologies, subject to the approval of the Secretary. 
(C) EXISTING
ENERGY
EFFICIENCY
PRO-
GRAMS.—An eligible entity that, on or before the 
date of the enactment of this Act or within 60 
days after such date, has already established an 
energy efficiency program for qualified con-
sumers may use an existing list of energy effi-
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ciency measures, implementation plans, or meas-
urement and verification systems to satisfy the 
requirements of subparagraph (A) if the Sec-
retary determines the list, plans, or systems are 
consistent with the purposes of sub section (a). 
(3) LOAN TERMS FOR LOANS TO ELIGIBLE ENTI-
TIES.— 
(A) NO INTEREST.—A loan made to an eli-
gible entity under paragraph (1) shall bear no 
interest. 
(B) REPAYMENT.—With respect to a loan 
under paragraph (1)— 
(i) the term shall not exceed 20 years 
from the date the loan is closed; and 
(ii) except as provided in subpara-
graph (D), the repayment of each advance 
shall be amortized for a period not to exceed 
10 years. 
(C) AMOUNT OF ADVANCES.—Any advance 
of loan funds to an eligible entity in any single 
year shall not exceed 30 percent of the approved 
loan amount. 
(D) SPECIAL ADVANCE FOR START-UP AC-
TIVITIES.— 
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(i) IN GENERAL.—In order to assist an 
eligible entity in defraying initial start-up 
costs, the Secretary shall allow an eligible 
entity to request a special advance. 
(ii) AMOUNT OF SPECIAL ADVANCE.— 
No eligible entity may receive a special ad-
vance under this subparagraph for an 
amount that is greater than 4 percent of the 
loan amount received by the eligible entity 
under paragraph (1). 
(iii) REPAYMENT.—The repayment of 
the special advance shall be required within 
10 years after the special advance is made 
and, at the election of the eligible entity, 
may be deferred to the end of the 10-year 
period. 
(E) LIMITATION
ON
ADVANCES.—All ad-
vances shall be made under a loan described in 
paragraph (1) within the first 10 years of the 
term of the loan. 
(d) LOANS TO QUALIFIED CONSUMERS.— 
(1) TERMS OF LOANS.—Loans made by an eligi-
ble entity to qualified consumers using loan funds 
provided by the Secretary under subsection (c)— 
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(A) may bear interest, not to exceed three 
percent, to be used by the eligible entity for pur-
poses such as establishing a loan loss reserve and 
to offset personnel and program costs of the eligi-
ble entity to provide the loans; 
(B) shall finance energy efficiency measures 
for the purpose of decreasing energy usage or 
costs of a qualified consumer by an amount such 
that a loan term of not more than 10 years will 
not pose an undue financial burden on the quali-
fied consumer, as determined by the eligible enti-
ty; 
(C) shall not be used to fund purchases of, 
or modifications to, personal property unless the 
personal property— 
(i) is or becomes attached to real prop-
erty as a fixture; or 
(ii) is a manufactured home; 
(D) shall be repaid through charges added 
to the electric bill for the property for, or at 
which energy efficiency measures are or will be 
implemented, except that this requirement shall 
not be construed to prohibit— 
(i) the voluntary prepayment of a loan 
by the owner of the property; or 
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(ii) the use of any additional repay-
ment mechanisms that are— 
(I) demonstrated to have appro-
priate risk mitigation features, as de-
termined by the eligible entity; or 
(II) required if the qualified con-
sumer is no longer a customer of the el-
igible entity; and 
(E) shall require an energy audit to deter-
mine the impact of proposed energy efficiency 
measures on the energy costs and consumption of 
the qualified consumer. 
(2) CONTRACTORS.—In addition to any other 
qualified general contractor, eligible entities may 
serve as general contractors. 
(3) USE OF OTHER ENERGY EFFICIENCY INCEN-
TIVES.—Energy efficiency incentives made available 
under any other Act, including rebates, grants, or any 
other payments, may be used to reduce the amount of 
a loan made under this subsection to qualified con-
sumers in order to meet the requirement of paragraph 
(1)(B). 
(e) MEASUREMENT, VERIFICATION, TRAINING, AND 
TECHNICAL ASSISTANCE.— 
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(1) DUTIES OF THE SECRETARY.—Not later than 
60 days after the date of enactment of this Act, the 
Secretary shall— 
(A) develop a protocol for eligible entities 
and qualified entities to use in measuring energy 
consumption and verifying the effectiveness of 
energy efficiency measures; 
(B) 
establish 
a 
measurement 
and 
verification advisory committee consisting of 
representatives of eligible entities and qualified 
entities; 
(C) enter into one or more cooperative 
agreements with qualified entities to provide 
technical assistance and training to the employ-
ees of eligible entities to carry out this section; 
and 
(D) establish a process to compile and 
maintain a directory of energy efficiency audi-
tors that are used by eligible entities to carry out 
this section. 
(2) EXCEPTION.— 
(A) The Secretary shall not utilize the au-
thority provided under this subsection or sub-
section (k) to— 
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(i) develop, adopt, or implement a pub-
lic labeling system that rates and compares 
the energy performance among qualified 
consumers; or 
(ii) require the public disclosure of an 
energy performance evaluation or rating de-
veloped for any qualified consumer. 
(B) Nothing in this paragraph shall pre-
clude— 
(i) the computation, collection, or use, 
by the Secretary, eligible entity, or qualified 
entity for the purposes aggregating informa-
tion on the rating and comparison of the 
energy performance among qualified con-
sumers with and without energy efficiency 
features or on energy performance evalua-
tion or rating; 
(ii) the use and publication of aggre-
gate data (without identifying individual 
qualified consumers) based on information 
referred to in clause (i) to determine or 
demonstrate the performance of this pro-
gram; or 
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(iii) the provision of information re-
ferred to in clause (i) with respect to a 
qualified consumer: 
(I) to the State, eligible consumer, 
eligible entity, or qualified entity, as 
necessary to enable carrying out this 
Act; or 
(II) for purposes of prosecuting 
fraud and abuse. 
(f) FAST START DEMONSTRATION PROJECTS.— 
(1) DEMONSTRATION PROJECTS REQUIRED.—The 
Secretary shall enter into agreements with eligible en-
tities (or groups of eligible entities) that have estab-
lished an energy efficiency program described in sub-
section (c)(2)(C) to establish an energy efficiency loan 
demonstration projects consistent with the purposes of 
this section that— 
(A) implement approaches to energy audits 
and investments in energy efficiency measures 
that yield measurable and predictable savings; 
(B) use measurement and verification proc-
esses to determine the effectiveness of energy effi-
ciency loans made by eligible entities; 
(C) include training for employees of eligi-
ble entities, including any contractors of such en-
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tities, to implement or oversee the activities de-
scribed in subparagraphs (A) and (B); 
(D) provide for the participation of a ma-
jority of eligible entities in a State; 
(E) reduce the need for generating capacity; 
(F) provide efficiency loans to— 
(i) not fewer than 20,000 consumers, 
in the case of a single eligible entity; or 
(ii) not fewer than 80,000 consumers, 
in the case of a group of eligible entities; 
and 
(G) serve areas where a large percentage of 
consumers reside— 
(i) in manufactured homes; or 
(ii) in housing units that are more 
than 50 years old. 
(2) 
DEADLINE
FOR
IMPLEMENTATION.—The 
agreements required by paragraph (1) shall be entered 
into not later than 90 days after the date of enact-
ment of this Act. 
(3) EFFECT ON AVAILABILITY OF LOANS NATION-
ALLY.—Nothing in this subsection shall delay the 
availability of loans to eligible entities on a national 
basis beginning not later than 180 days after the date 
of the enactment of this Act. 
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(4) ADDITIONAL DEMONSTRATION PROJECT AU-
THORITY.—The Secretary may conduct demonstration 
projects in addition to the project required by para-
graph (1). An additional demonstration project may 
be carried out without regard to subparagraphs (D), 
(F), or (G) of paragraph (1). 
(g) ADDITIONAL AUTHORITY.—The authority provided 
in this section is in addition to any authority of the Sec-
retary to offer loans under any other law. 
(h) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated to the Secretary $993,000,000 
to carry out this section, which shall remain available until 
expended. 
(i) EFFECTIVE PERIOD.—Subject to subsection (h)(1) 
and except as otherwise provided in this section, the loans 
and other expenditures required to be made under this sec-
tion are authorized to be made during each of fiscal years 
2010 through 2014. 
(j) REPORTING REQUIREMENT.—Not later than one 
year after the date of the enactment of this Act, the Sec-
retary shall submit to the Committee on Agriculture, Nutri-
tion, and Forestry of the Senate and the Committee on Ag-
riculture of the House of Representatives a report describing 
the implementation of this section. 
(k) REGULATIONS.— 
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(1) IN GENERAL.—Except as otherwise provided 
in this subsection, not later than 180 days after the 
date of enactment of this section, the Secretary shall 
promulgate such regulations as are necessary to im-
plement this section. 
(2) PROCEDURE.—The promulgation of the regu-
lations and administration of this section shall be 
made without regard to— 
(A) chapter 35 of title 44, United States 
Code (commonly known as the ‘‘Paperwork Re-
duction Act’’); and 
(B) the Statement of Policy of the Secretary 
of Agriculture effective July 24, 1971 (36 Fed. 
Reg. 13804), relating to notices of proposed rule-
making and public participation in rulemaking. 
(3) CONGRESSIONAL REVIEW OF AGENCY RULE-
MAKING.—In carrying out this section, the Secretary 
shall use the authority provided under section 808 of 
title 5, United States Code. 
(4) INTERIM
REGULATIONS.—Notwithstanding 
paragraphs (1) and (2), to the extent regulations are 
necessary to carry out any provision of this section, 
the Secretary shall implement such regulations 
through the promulgation of an interim rule. 
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(l) AUDIT OF PROGRAM.—The Secretary shall conduct 
an audit of the program authorized by this section to ensure 
that the funds provided to eligible entities under this section 
are used in accordance with the purpose of this section. 
Amend the title so as to read: ‘‘A bill to authorize 
the Secretary of Agriculture to make loans to certain en-
tities that agree that the funds will be used to make 
loans to consumers to implement energy efficiency meas-
ures involving structural improvements and investments 
in cost-effective, commercial off-the-shelf technologies to 
reduce energy use, and for other purposes.’’. 
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Union Calendar No. 335 
111TH CONGRESS 
2D SESSION 
H. R. 4785 
[Report No. 111–585, Part I] 
A BILL 
To amend the miscellaneous rural development pro-
visions of the Farm Security and Rural Invest-
ment Act of 2002 to authorize the Secretary of 
Agriculture to make loans to certain entities that 
will use the funds to make loans to consumers to 
implement energy efficiency measures involving 
structural improvements and investments in cost- 
effective, commercial off-the-shelf technologies to 
reduce home energy use. 
SEPTEMBER 14, 2010 
Committee on Energy and Commerce discharged; com-
mitted to the Committee of the Whole House on the 
State of the Union and ordered to be printed 
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