IIB 
111TH CONGRESS 
2D SESSION 
H. R. 4785 
IN THE SENATE OF THE UNITED STATES 
SEPTEMBER 20, 2010 
Received; read twice and referred to the Committee on Energy and Natural 
Resources 
AN ACT 
To authorize the Secretary of Agriculture to make loans 
to certain entities that agree that the funds will be 
used 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 energy use, and for other pur-
poses. 
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Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. HOME STAR ENERGY EFFICIENCY LOAN PRO-
GRAM. 
(a) DEFINITIONS.—In this section: 
(1) ELIGIBLE PARTICIPANT.—The term ‘‘eligi-
ble participant’’ means a homeowner with a gross 
annual household income of less than $250,000 who 
receives financial assistance from a qualified financ-
ing entity to carry out qualifying energy savings 
measures pursuant to this section, and who is not 
also a qualified consumer under section 2. A home-
owner may not qualify as an eligible participant if 
the homeowner has been more than 6 months delin-
quent in child support payments. 
(2) QUALIFIED FINANCING ENTITY.—The term 
‘‘qualified financing entity’’ means a State, political 
subdivision of a State, tribal government, electric 
utility, natural gas utility, nonprofit organization, 
energy service company, retailer, or any other entity 
that— 
(A) meets the eligibility requirements of 
this section; 
(B) is not an entity that has an ongoing 
capital repayment obligation to the Department 
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of the Treasury pursuant to the Troubled Asset 
Relief Program (Public Law 110–343, 122
Stat.
3765); and 
(C) is designated by the Governor of a 
State in accordance with subsection (f)(1), 
except that an entity that is an eligible entity under 
section 2 shall not be a qualified financing entity. 
(3) QUALIFIED LOAN PROGRAM MECHANISM.— 
The term ‘‘qualified loan program mechanism’’ 
means a mechanism for the establishment and oper-
ation of a loan program that is— 
(A) administered by a qualified financing 
entity; and 
(B) funded in significant part— 
(i) by funds provided by or overseen 
by a State; or 
(ii) through the energy loan program 
of the Federal National Mortgage Associa-
tion. 
(4) QUALIFYING ENERGY SAVINGS MEASURE.— 
The term ‘‘qualifying energy savings measure’’ 
means a measure listed under subsection (c)(1) or 
(2) or stipulated in a whole-house analysis under 
subsection (c)(3). 
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(b) ESTABLISHMENT.—The Secretary of Energy 
shall establish a Home Star Energy Efficiency Loan Pro-
gram under which the Secretary of Energy shall offer 
loans at zero percent interest to States to support finan-
cial assistance provided by qualified financing entities for 
the installation of qualifying energy savings measures. 
(c) ENERGY EFFICIENCY MEASURES AND STAND-
ARDS.—The Secretary of Energy, in consultation with the 
Secretary of Agriculture, shall publish— 
(1) not later than 90 days after the date of en-
actment of this Act, a master list of residential en-
ergy efficiency measures determined to be cost-effec-
tive, readily available from commercial sources, to be 
permanently installed in a primary residence, and 
capable of supporting measurement and verification 
of the energy savings that results from their adop-
tion, but which shall not include the installation or 
replacement of pool heaters or the installation of 
Energy Star televisions; 
(2) additions to such a list, approved by the 
Secretary of Energy, of other residential energy effi-
ciency measures that are— 
(A) recommended by the Secretary of Agri-
culture; 
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(B) calculated to achieve sufficient energy 
savings that they will achieve a simple payback 
within 10 years or less; and 
(C) permanently installed in a primary res-
idence; 
(3) specifications for whole-house energy per-
formance analyses simulating energy use before and 
after a retrofit utilizing measures from the master 
list published pursuant to paragraphs (1) and (2) 
and such other permanent structural measures as 
can be demonstrated, when installed and operated as 
intended, to improve residential energy efficiency in 
a manner that can be determined with confidence to 
be cost-effective and to recover their own cost in en-
ergy cost savings within the term of a proposed loan; 
and 
(4) a protocol for measurement and verification 
of the energy savings that have resulted from any 
and all energy efficiency measures taken with re-
spect to a residence and financed in whole or in part 
pursuant to this title. In determining which residen-
tial energy efficiency measures to include in the list 
published under paragraph (1) or (2), the Secretary 
of Energy, in consultation with the Secretary of Ag-
riculture, shall consider advanced performance initia-
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tives, such as the Passive House Standard as cer-
tified by the Passive House Institute US. 
(d) ELIGIBILITY OF QUALIFIED FINANCING ENTI-
TIES.—To be eligible to participate in the Home Star 
Loan Program, a qualified financing entity shall— 
(1) offer a financing product under which eligi-
ble participants may pay over time for the cost to 
the eligible participant (after all applicable Federal, 
State, local, and other rebates or incentives are ap-
plied) of installations described in subsection (b); 
(2) require all financed installations to be per-
formed by contractors in a manner that meets build-
ing code requirements and other appropriate min-
imum standards; 
(3) establish standard underwriting criteria to 
determine the eligibility of Home Star Loan Pro-
gram applicants, which criteria shall be consistent 
with— 
(A) with respect to unsecured consumer 
loan programs, standard underwriting criteria 
used under the energy loan program of the 
Federal National Mortgage Association; or 
(B) with respect to secured loans or other 
forms of financial assistance, commercially rec-
ognized best practices applicable to the form of 
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financial assistance being provided (as deter-
mined by the designated entity administering 
the Home Star Loan Program in the State); 
and 
(4) undertake particular efforts, consistent with 
paragraph (3), to make such loans available in pub-
lic use microdata areas that have a poverty rate of 
12 percent or more in a proportion of total loans 
made at least equal to the proportion the number of 
residents in such areas bears to the total population 
of the area served by that qualified financing entity. 
(e) ALLOCATION.—In allocating 75 percent of the 
loan funds made available to States for each fiscal year 
under this section, the Secretary of Energy shall use the 
formula used to allocate funds to States to carry out 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.), with appropriate modifications to reflect the 
funds to be provided in States for loans under section 2. 
In allocating the remaining 25 percent of the loan funds 
made available to States for each fiscal year under this 
section, the Secretary of Energy may vary the result of 
the formula to recognize and reward those States that 
make the best progress in providing loans to low-income 
areas pursuant to subsection (d)(4). 
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(f) QUALIFIED FINANCING ENTITIES.—Before mak-
ing funds available to a State under this section, the Sec-
retary of Energy shall require the Governor of the State 
to provide to the Secretary of Energy a letter of agreement 
that the State— 
(1) will use the funds provided pursuant to this 
section solely as provided in this section; 
(2) will use the funds provided under this sec-
tion to supplement and not supplant any prior or 
planned Federal and State funding provided to carry 
out energy efficiency programs, on the condition 
that, to the extent the Secretary finds that a State 
has supplanted other such programs with funding 
under this section, the Secretary may with hold an 
equivalent amount of funding from allocations for 
the State under this section; 
(3) has 1 or more qualified financing entities 
that meet the requirements of this section; 
(4) has established, or has required its des-
ignated qualified financing entities to establish, a 
qualified loan program mechanism that— 
(A) will use a quality assurance program 
or another appropriate methodology to ensure 
energy savings; 
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(B) incorporates an effective repayment 
mechanism, which may include— 
(i) on-utility-bill repayment; 
(ii) tax assessment or other form of 
property assessment financing; 
(iii) municipal service charges; 
(iv) energy or energy efficiency serv-
ices contracts; 
(v) energy efficiency power purchase 
agreements; 
(vi) unsecured loans applying the un-
derwriting requirements of the energy loan 
program of the Federal National Mortgage 
Association; or 
(vii) alternative contractual repayment 
mechanisms that have been demonstrated 
to have appropriate risk mitigation fea-
tures; 
(5) will provide, in a timely manner, all infor-
mation regarding the administration of the Home 
Star Loan Program as the Secretary of Energy may 
require to permit the Secretary of Energy to meet 
program evaluation requirements; and 
(6) will commit to the full repayment of the 
loaned funds to the Secretary of Energy by a date 
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not later than 20 years from the date of the loan 
closing. 
(g) USE OF FUNDS.—Funds made available to States 
for carrying out the Home Star Loan Program may be 
used to support financing mechanisms offered by qualified 
financing entities to eligible participants, including— 
(1) interest rate reductions to interest rates as 
low as zero percent; 
(2) loan loss reserves or other forms of credit 
enhancement; 
(3) revolving loan funds from which qualified fi-
nancing entities may offer direct loans; or 
(4) other debt instruments necessary— 
(A) to use available funds to obtain appro-
priate leverage through private investment; and 
(B) to support widespread deployment of 
energy efficiency programs. 
(h) ADMINISTRATIVE COSTS.—A State may permit a 
qualified financing entity to charge interest of 3 percent 
to cover the costs of loan administration and personnel 
and program management, or for establishing a loan loss 
reserve. 
(i) REPORTING REQUIREMENTS.—The Secretary of 
Energy shall report to the Congress on the implementation 
of this title, including the energy savings and cost savings 
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estimated to be achieved, not later than 1 year after the 
date of enactment of this Act, and again by not later than 
2 years after the date of enactment of this section. The 
Secretary of Energy shall also include a detailed account-
ing of any waste, fraud, or abuse occurring in the adminis-
tration of this Act in such reports. 
(j) ASSESSMENT BY GOVERNMENT ACCOUNTABILITY 
OFFICE.—The Comptroller General shall, by not later 
than 18 months after the date of enactment of this Act, 
prepare and submit to the Congress an analysis and report 
determining— 
(1) the actual taxpayer funds made available 
for the program created in this section; 
(2) the actual amounts of such funds made 
available to eligible participants or qualified con-
sumers in the program created in this section; 
(3) the extent of measured and verified residen-
tial energy savings achieved and expected to be 
achieved on an ongoing basis as a function of this 
program; 
(4) the extent to which funds made available 
were expended for training, administration, program 
support by contractors, or trade association activities 
under this program; 
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(5) the consistency and rigor of the standards 
for energy efficiency and for measurement and 
verification adopted and implemented by this pro-
gram; and 
(6) the extent to which any waste, fraud, or 
abuse occurred under this program. 
(k) AUTHORIZATION.—There are authorized to be ap-
propriated for purposes of this section, provided that en-
actment of this Act would not increase direct spending, 
$850,000,000 for each of fiscal years 2010 through 2014, 
which shall remain available until expended. 
SEC. 2. RURAL ENERGY SAVINGS PROGRAM. 
(a) DEFINITIONS.—In this section: 
(1) ELIGIBLE ENTITY.—The term ‘‘eligible enti-
ty’’ means— 
(A) any public or cooperative electric util-
ity that is eligible to borrow from the Rural 
Utilities Service electrification program author-
ized under the Rural Electrification Act of 
1936 (7 U.S.C. 901 et seq.) that serves a rural 
area; 
(B) any current borrower of the Rural 
Utilities Service electrification program author-
ized under that Act; or 
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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 prop-
erty served by an eligible entity, means a fixed struc-
tural improvement and investment in a cost-effec-
tive, commercial off-the-shelf technology to reduce 
residential energy use that is either— 
(A) included in the master list published 
under section 1(c)(1) and (2); or 
(B) stipulated in a whole-house simulation 
conducted pursuant to section 1(c)(3). 
(3) FARM
EFFICIENCY
MEASURE.—The term 
‘‘farm efficiency measure’’ means an energy saving 
application that is a fixed improvement installed in 
or attached to a building or structure on a farm at 
a total loan value for that farm of $50,000 or less, 
that is not otherwise an energy efficiency measure, 
and that would achieve energy savings sufficient to 
repay the cost of the measure in 10 years or fewer. 
(4) QUALIFIED CONSUMER.—The term ‘‘quali-
fied consumer’’ means a consumer served by an eli-
gible entity that has the ability to repay a loan made 
under subsection (d), as determined by an eligible 
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entity, and who has not accepted any loan as an eli-
gible participant pursuant to section 1. 
(5) QUALIFIED ENTITY.—The term ‘‘qualified 
entity’’ means any organization that the Secretary of 
Agriculture determines has significant experience in 
providing eligible entities with— 
(A) advice on energy, environmental, en-
ergy efficiency, and information research and 
technology; 
(B) training, education, and consulting; 
(C) guidance in energy and operational 
issues and rural community and economic de-
velopment; and 
(D) other relevant assistance, as deter-
mined by the Secretary of Agriculture. 
(6) 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). 
(b) ESTABLISHMENT.—The Secretary of Agriculture, 
acting through the Rural Utility Service, shall establish 
the Rural Star Energy Savings Program for the purpose 
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of making loans to eligible entities that agree to accept 
the loan funds authorized pursuant to this section to make 
loans to qualified consumers for the purpose of imple-
menting residential energy efficiency measures or farm ef-
ficiency measures approved by the Secretary of Agri-
culture. 
(c) LOANS TO ELIGIBLE ENTITIES.— 
(1) LOANS
AUTHORIZED.—Subject to para-
graph (2), the Secretary of Agriculture shall make 
loans to an eligible entity that agrees that the loan 
funds will be used to make loans to qualified con-
sumers as described in subsection (d) for the pur-
pose of implementing one or more energy efficiency 
measures, or a farm efficiency measure in response 
to an application by an eligible entity. 
(2) LIST, 
PLAN, 
AND
MEASUREMENT
AND 
VERIFICATION REQUIRED.— 
(A) IN GENERAL.—As a condition to re-
ceiving a loan under paragraph (1), an eligible 
entity shall— 
(i) establish a list of energy efficiency 
measures or farm efficiency measures ex-
pected to decrease energy use or costs of a 
qualified consumer from the master list 
published under section 1(c)(1) and (2); 
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(C) shall 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 of Agriculture shall not 
utilize the authority provided under this sub-
section or subsection (i) to— 
(i) develop, adopt, or implement a 
public labeling system that rates and com-
pares the energy performance among quali-
fied consumers; or 
(ii) require the public disclosure of an 
energy performance evaluation or rating 
developed for any qualified consumer. 
(B) Nothing in this paragraph shall pre-
clude— 
(i) the computation, collection, or use, 
by the Secretary of Agriculture, eligible en-
tity, or qualified entity for the purposes of 
aggregating information on the rating and 
comparison of the energy performance 
among qualified consumers with and with-
out energy efficiency features or on energy 
performance evaluation or rating; 
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