874 
Secretary shall allow an eligible entity to re-
quest a special advance. 
‘‘(B) AMOUNT.—No eligible entity may re-
ceive a special advance under this paragraph 
for an amount that is greater than 4 percent of 
the loan amount received by the eligible entity 
under paragraph (1). 
‘‘(C) REPAYMENT.—Repayment of the spe-
cial advance— 
‘‘(i) shall be required during the 10- 
year period beginning on the date on which 
the special advance is made; and 
‘‘(ii) at the election of the eligible en-
tity, may be deferred to the end of the 10- 
year period. 
‘‘(7) LIMITATION.—All special advances shall be 
made under a loan described in paragraph (1) dur-
ing the first 10 years of the term of the loan. 
‘‘(d) LOANS TO QUALIFIED CONSUMERS.— 
‘‘(1) TERMS OF LOANS.—Loans made by an eli-
gible entity to qualified consumers using loan funds 
provided by the Secretary under subsection (c)— 
‘‘(A) may bear interest, not to exceed 3 
percent, to be used for purposes that include— 
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875 
‘‘(i) to establish a loan loss reserve; 
and 
‘‘(ii) to offset personnel and program 
costs of eligible entities to provide the 
loans; 
‘‘(B) shall finance energy efficiency meas-
ures for the purpose of decreasing energy usage 
or costs of the qualified consumer by an 
amount that ensures, to the maximum extent 
practicable, that a loan term of not more than 
10 years will not pose an undue financial bur-
den on the qualified consumer, as determined 
by the eligible entity; 
‘‘(C) shall not be used to fund purchases 
of, or modifications to, personal property unless 
the personal property is or becomes attached to 
real property (including a manufactured home) 
as a fixture; 
‘‘(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, on the condition that this re-
quirement does not prohibit— 
‘‘(i) the voluntary prepayment of a 
loan by the owner of the property; or 
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876 
‘‘(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 
consumer is no longer a customer of 
the eligible entity; and 
‘‘(E) shall require an energy audit by an 
eligible entity to determine the impact of pro-
posed energy efficiency measures on the energy 
costs and consumption of the qualified con-
sumer. 
‘‘(2) CONTRACTORS.—In addition to any other 
qualified general contractor, eligible entities may 
serve as general contractors. 
‘‘(e) 
CONTRACT
FOR
MEASUREMENT
AND 
VERIFICATION, TRAINING, 
AND
TECHNICAL
ASSIST-
ANCE.— 
‘‘(1) IN
GENERAL.—Not later than 90 days 
after the date of enactment of this section, the Sec-
retary— 
‘‘(A) shall establish a plan for measure-
ment and verification, training, and technical 
assistance of the program; and 
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877 
‘‘(B) may enter into 1 or more contracts 
with a qualified entity for the purposes of— 
‘‘(i) 
providing 
measurement 
and 
verification activities; and 
‘‘(ii) developing a program to provide 
technical assistance and training to the 
employees of eligible entities to carry out 
this section. 
‘‘(2) USE
OF
SUBCONTRACTORS
AUTHOR-
IZED.—A qualified entity that enters into a contract 
under paragraph (1) may use subcontractors to as-
sist the qualified entity in carrying out the contract. 
‘‘(f) FAST START DEMONSTRATION PROJECTS.— 
‘‘(1) IN GENERAL.—The Secretary shall offer to 
enter into agreements with eligible entities (or 
groups of eligible entities) that have energy effi-
ciency programs described in subsection (c)(2)(C) to 
establish an energy efficiency loan demonstration 
projects consistent with the purposes of this section. 
‘‘(2) EVALUATION
CRITERIA.—In determining 
which eligible entities to award loans under this sec-
tion, the Secretary shall take into consideration eligi-
ble entities that— 
‘‘(A) implement approaches to energy au-
dits and investments in energy efficiency meas-
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