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. 
(4) FEDERAL REBATE PROCESSING SYSTEM.— 
The term ‘‘Federal Rebate Processing System’’ 
means the Federal Rebate Processing System estab-
lished under section 32103(b). 
(5) 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 six months out of 
the year. 
(6) HOME ENERGY SAVINGS RETROFIT REBATE 
PROGRAM.—The terms ‘‘Home Energy Savings Ret-
rofit Rebate Program’’ or ‘‘Program’’ means the 
Home Energy Savings Retrofit Rebate Program es-
tablished under section 32103(a). 
(7) HOMEOWNER.—The term ‘‘homeowner’’ 
means the owner of an owner-occupied home or a 
tenant-occupied home. 
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(8) 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. 5304). 
(9) 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. 
(10) 
QUALIFIED
CONTRACTOR.—The 
term 
‘‘qualified contractor’’ means a residential energy ef-
ficiency contractor that meets minimum applicable 
requirements established under section 32104. 
(11) QUALIFIED
HOME
ENERGY
EFFICIENCY 
RETROFIT.—The term ‘‘qualified home energy effi-
ciency retrofit’’ means a retrofit described in section 
32108(d). 
(12) QUALITY
ASSURANCE
PROGRAM.—The 
term ‘‘quality assurance program’’ means a program 
established under this part, or recognized by the 
Secretary under this part, to oversee the delivery of 
home efficiency retrofit programs to ensure that 
work is performed in accordance with standards and 
criteria established under this part. Delivery of ret-
rofit programs includes delivery of quality assurance 
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reviews of rebate applications and field inspections. 
Individuals performing quality assurance work under 
a quality assurance program must be certified under 
an ANSI accredited quality control inspection certifi-
cation designation. 
(13) QUALITY
ASSURANCE
PROVIDER.—The 
term ‘‘quality assurance provider’’ means any entity 
that meets the minimum applicable requirements es-
tablished under section 32106. 
(14) REBATE AGGREGATOR.—The term ‘‘rebate 
aggregator’’ means an entity that meets the require-
ments of section 32105. 
(15) 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. 
(16) 
SECRETARY.—The 
term 
‘‘Secretary’’ 
means the Secretary of Energy. 
(17) STATE.—The term ‘‘State’’ means— 
(A) a State; 
(B) the District of Columbia; 
(C) the Commonwealth of Puerto Rico; 
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(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. 32103. HOME ENERGY SAVINGS RETROFIT REBATE 
PROGRAM. 
(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 website 
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 part, 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 convene a group of stake-
holders that are directly and materially affected by 
the Program to develop the final forms. 
SEC. 32104. CONTRACTORS. 
(a) CONTRACTOR QUALIFICATIONS.—A contractor 
may perform retrofit work under the Home Energy Sav-
ings Retrofit Rebate Program in a State if the con-
tractor— 
(1) meets all applicable contractor licensing re-
quirements established by the State; 
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(2) is— 
(A) accredited by— 
(i) BPI as a BPI GoldStar Con-
tractor; 
(ii) RESNET as an Energy Smart 
Home Performance Team; 
(iii) ACCA as a QA Home Perform-
ance Contractor; 
(iv) a State-based certification pro-
gram established to carry out State energy, 
clean air, or environmental programs; or 
(v) an equivalent accreditation pro-
gram approved by the Secretary for this 
purpose; or 
(B) the general contractor, and— 
(i) subjects the energy efficiency ret-
rofit to a third-party review by a party ap-
proved by the Secretary and a quality as-
surance inspection authorized by the Sec-
retary; and 
(ii) employs, or utilizes subcontractors 
who employ, individuals to complete indi-
vidual or comprehensive scopes of work re-
lated to the energy efficiency retrofit who 
are certified by— 
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(I) BPI; 
(II) RESNET; 
(III) NATE; 
(IV) ACCA; 
(V) LIUNA; 
(VI) the Regional and State De-
partment of Energy Weatherization 
Training Centers; 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; 
(4) provides warranties to the homeowner that 
completed work will— 
(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; and 
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(5) completes an energy audit to determine the 
impact of the proposed energy efficiency measures in 
accordance with an ANSI accredited energy auditing 
standard. 
(b) AGREEMENT BETWEEN CONTRACTOR AND HOME 
OWNER.—A contractor who performs retrofit work under 
the Home Energy Savings Retrofit Rebate Program must 
sign a written or electronic contract with the homeowner 
that includes— 
(1) an agreement to not increase the cost of the 
home improvement as a result of the rebates re-
ceived under this part with respect to physical im-
provements made to the home; 
(2) if the contractor and homeowner choose the 
transferable rebate option authorized under section 
32107, an agreement to provide the homeowner, be-
fore a contract is executed between the contractor 
and the homeowner covering the eligible work, a no-
tice of the rebate amount the contractor intends to 
apply for with respect to eligible work under this 
part; and 
(3) a notice that the homeowner acknowledges 
that they— 
(A) reviewed the national retrofit website 
for the Program; 
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(B) understand the scope of work intended 
to be completed and that such work may be eli-
gible for a rebate under the Program; and 
(C) understand that the rebate funds are 
fully subject to availability from the Depart-
ment of Energy or rebate aggregator and not 
within the control of the contractor. 
SEC. 32105. 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 homeowners 
or contractors participating in the Home Energy Savings 
Retrofit Rebate Program by— 
(1) reviewing the proposed rebate application 
for completeness and accuracy; 
(2) reviewing measures for eligibility in accord-
ance with this part; 
(3) providing data to the Federal Rebate Proc-
essing System consistent with data protocols estab-
lished by the Secretary; and 
(4) not later than 30 days after the date of re-
ceipt, distributing funds received from the Depart-
ment of Energy to homeowners 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. 32106. QUALITY ASSURANCE PROVIDERS. 
(a) QUALIFICATIONS.—An entity shall be considered 
a quality assurance provider under this part only if the 
entity 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, local government, or State-approved 
or local government-approved residential energy effi-
ciency retrofit program. 
(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 part; 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. 32107. TRANSFERABILITY OF HOME ENERGY SAVINGS 
REBATE. 
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 32103(b). This form, to be made pub-
lically available by the Secretary 90 days after the date 
of enactment of this Act, must be approved by paper sig-
nature or electronically by the homeowner and include— 
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(1) the amount of the rebate the contractor will 
submit for disbursement to the contractor; 
(2) the level of energy use reduction of the 
home retrofit certified under section 32108(e)(4), 
and assurance that the contractor will provide the 
certificate to the homeowner within 30 days of re-
ceipt from the Department of Energy; 
(3) a documentation report of the retrofit per-
formed and paid by the homeowner; and 
(4) confirmation from the homeowner that they 
understand they have the right to submit directly for 
the rebate and have chosen to transfer the credit in 
full to the contractor. 
SEC. 32108. HOME ENERGY SAVINGS RETROFIT REBATE 
PROGRAM. 
(a) IN GENERAL.—If a qualified home energy effi-
ciency retrofit of a home is carried out after the date of 
enactment of this Act by a qualified contractor in accord-
ance with this part, subject to appropriations made avail-
able for such purpose, rebates shall be awarded for retro-
fits that achieve home energy savings in accordance with 
this part. 
(b) AMOUNT OF REBATES.— 
(1) IN
GENERAL.—Subject to subsection (e), 
the amount of a rebate provided to the owner of a 
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home or a designee of the owner under this section 
shall be determined in accordance with the following 
formula: 
(A) Retrofits that are projected to save at 
least 20 percent of energy use (Home Perform-
ance Retrofits) shall receive a rebate of $2,500. 
(B) Retrofits that are projected to save at 
least 40 percent of energy use (Deep Home 
Performance Retrofits) shall receive a rebate of 
$5,000. 
(2) REBATE PAYMENT.— 
(A) IN
GENERAL.—The rebate shall be 
paid, based on energy savings as calculated 
under subsection (e), within 60 days after— 
(i) submission of the required rebate 
forms; and 
(ii) the completion of any quality as-
surance assessment required under sub-
paragraph (B). 
(B) QUALITY ASSURANCE ASSESSMENTS.— 
The Secretary shall establish a schedule of re-
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 
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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. 
(C) BONUS
INCENTIVE.—Recipients of 
grants 
under 
section 
32109 
and 
rebate 
aggregators are encouraged to present a pro-
posal to the Secretary for an incentive bonus 
for contractors who have delivered services to 
consumers and who have achieved a 70 percent 
or greater realization rate for predicted gross 
energy cost savings achieved by their portfolio 
of participating customers. Bonus incentives 
under such a proposal may be up to 20 percent 
of the rebate paid to the homeowner. 
(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). 
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(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— 
(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; 
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(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 
(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-
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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; 
(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 established by an organization identi-
fied in subparagraphs (A), (B), or (C) of sec-
tion 32104(a)(2) or equivalent guidelines ap-
proved by the Secretary for this purpose, to en-
sure— 
(i) the safe operation of all systems 
post retrofit; and 
(ii) that, except as provided in para-
graph (3), all improvements are included 
in, and have been installed according to— 
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(I) standards of the applicable 
accrediting program established by an 
organization identified in subpara-
graphs (A), (B), or (C) of section 
32104(a)(2); 
(II) manufacturers installation 
specifications; and 
(III) all applicable State and 
local codes or equivalent standards 
approved by the Secretary for this 
purpose; 
(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 funds 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 
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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-
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. 
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(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 
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— 
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(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 in ac-
cordance with BPI–2101–S–2013: Standard Re-
quirements for a Certificate of Completion for Resi-
dential Energy Efficiency Upgrades with the 
issuance of a rebate that certifies the predicted level 
of energy use reduction achieved by the retrofit. The 
certificate shall be provided to the rebate recipient. 
If the recipient is the contractor under the terms of 
section 32107, the contractor shall remit the certifi-
cate to the homeowner, to be delivered or post-
marked 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 part to— 
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(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, 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 
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(4) any quality assurance assessment required 
by the Secretary or the rebate aggregator has been 
completed. 
(g) 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, not later than 
3 years after the payment was provided the Sec-
retary shall— 
(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. 
(h) INCENTIVES.—The amount of incentives that the 
Secretary may provide to quality assurance providers and 
rebate aggregators under this part 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 
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(3) such other amounts as the Secretary con-
siders necessary to carry out the quality assurance 
provisions of this part. 
SEC. 32109. 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 part; 
(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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(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 32115. 
(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-
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 
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(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 
part, 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-
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— 
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(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. 
(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 part with— 
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(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 part to enhance and extend existing 
programs; and 
(B) seek to enhance and extend existing 
programs by coordinating with administrators 
of the programs. 
SEC. 32110. QUALITY ASSURANCE PROGRAM. 
(a) PLAN.—As part of a grant application described 
in section 32109(b), a State or Indian tribe shall submit 
to the Secretary a plan to implement a quality assurance 
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program 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 32109. 
(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 32104; and 
(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 
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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. 32111. 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 part. 
(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; 
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(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, 
subject to withholding of funds or reduction of future 
grant amounts, or decertification of rebate aggregators. 
SEC. 32112. ADMINISTRATION. 
(a) IN GENERAL.—Subject to section 32115(b), not 
later than 30 days after the date of enactment of this Act, 
the Secretary shall provide such administrative and tech-
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nical support to rebate aggregators, States, and Indian 
tribes as is necessary to carry out this part. 
(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 part. 
(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 part, 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 
shall not include personal identifying information such as 
name, address, social security number or other identifying 
information as defined by the Secretary. 
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SEC. 32113. 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 part— 
(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. 
SEC. 32114. PENALTIES. 
(a) IN GENERAL.—It shall be unlawful for any per-
son to violate this part (including any regulation issued 
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under this part), 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 part 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 part. 
(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 part. 
SEC. 32115. FUNDING. 
(a) AUTHORIZATION OF APPROPRIATIONS.— 
(1) IN GENERAL.—There are authorized to be 
appropriated to the Secretary to carry out this part 
$250,000,000 for each of fiscal years 2018 through 
2022, to remain available until expended. 
(2) MAINTENANCE OF FUNDING.—Funds pro-
vided under this section shall supplement and not 
supplant any Federal and State funding provided to 
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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 32109. 
(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 part, 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 part. 
(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. 32116. PILOT PROGRAM. 
(a) ESTABLISHMENT.— 
(1) IN GENERAL.—Notwithstanding any other 
provision of this part, the Secretary shall establish 
a Residential Energy Efficiency Pay for Perform-
ance pilot program for States to encourage the use 
of measured energy savings, and financial payments 
for those energy savings, in the operation of residen-
tial 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 2018, 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). 
PART 2—SMART BUILDING ACCELERATION 
SEC. 32201. SHORT TITLE. 
This part may be cited as the ‘‘Smart Building Accel-
eration Act’’. 
SEC. 32202. FINDINGS. 
Congress finds that— 
(1) the building sector uses more than 40 per-
cent of the energy of the Nation; 
(2) emerging building energy monitoring and 
control technologies are enabling a transition of the 
building sector to ‘‘smart’’ buildings that have dra-
matically reduced energy use and improved quality 
of service to occupants; 
(3) an analysis of select private-sector smart 
buildings by the Department of Energy would docu-
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ment the costs and benefits of those emerging tech-
nologies, promote their adoption, and accelerate that 
transition; 
(4) with over 400,000 buildings, the Federal 
Government is the largest building owner in the 
United States; and 
(5) the Federal Government can also accelerate 
the transition to smart building technologies by dem-
onstrating and evaluating emerging smart building 
technologies using existing programs and funding to 
showcase selected Federal smart buildings. 
SEC. 32203. DEFINITIONS. 
In this part: 
(1) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Energy. 
(2) SMART BUILDING.—The term ‘‘smart build-
ing’’ means a building with an energy system that— 
(A) is flexible and automated; 
(B) has extensive operational monitoring 
and communication connectivity, allowing re-
mote monitoring and analysis of all building 
functions; 
(C) is integrated with the overall building 
operations for control of energy generation, con-
sumption, and storage; and 
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(D) communicates with utilities and other 
third-party commercial entities where appro-
priate. 
SEC. 32204. SURVEY OF PRIVATE SECTOR SMART BUILD-
INGS. 
(a) SURVEY.—The Secretary shall conduct a survey 
of privately owned smart buildings throughout the Nation, 
including commercial buildings and buildings owned by 
nonprofit organizations and institutions of higher edu-
cation. 
(b) SELECTION.—From among the smart buildings 
surveyed under subsection (a), the Secretary shall select 
at least 1 building each from an appropriate range of 
building sizes and types. 
(c) EVALUATION.—Using the guidelines of the Fed-
eral Energy Management Program relating to whole-build-
ing evaluation, measurement, and verification, the Sec-
retary shall evaluate the costs and benefits of the buildings 
selected under subsection (b), including an identification 
of— 
(1) which advanced building technologies— 
(A) are most cost-effective; and 
(B) show the most potential to— 
(i) increase building energy savings; 
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(ii) increase service performance to 
building occupants; and 
(iii) reduce environmental impacts; 
and 
(2) any other information the Secretary deter-
mines to be appropriate. 
SEC. 32205. FEDERAL SMART BUILDING PROGRAM. 
(a) ESTABLISHMENT.—The Secretary shall establish 
a program to establish one or more smart buildings under 
the jurisdiction of several key Federal agencies, including 
buildings that are owned by the Federal Government but 
are commercially operated, to demonstrate the costs and 
benefits of smart buildings. 
(b) FEDERAL AGENCY DESCRIBED.—The key Fed-
eral agencies referred to in subsection (a) shall include— 
(1) the Department of Defense; 
(2) the Department of Energy; 
(3) the Department of Veterans Affairs; and 
(4) the General Services Administration. 
(c) REQUIREMENT.—In carrying out the program, 
the Secretary shall leverage existing procurement mecha-
nisms. 
(d) EVALUATION.—Using the guidelines of the Fed-
eral Energy Management Program relating to whole-build-
ing evaluation, measurement, and verification, the Sec-
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retary shall evaluate the costs and benefits of the buildings 
selected under this section including an identification of— 
(1) which advanced building technologies— 
(A) are most cost-effective; and 
(B) show the most potential to— 
(i) increase building energy savings; 
(ii) increase service performance to 
building occupants; and 
(iii) reduce environmental impacts; 
and 
(2) any other information the Secretary deter-
mines to be appropriate. 
SEC. 32206. LEVERAGING EXISTING PROGRAMS. 
(a) BETTER BUILDING CHALLENGE.—As part of the 
Better Building Challenge of the Department of Energy, 
the Secretary shall develop a smart building accelerator 
in consultation with major private sector property owners 
to demonstrate innovative policies and approaches that 
will accelerate the transition to smart buildings. 
(b) RESEARCH AND DEVELOPMENT.— 
(1) IN GENERAL.—The Secretary shall conduct 
research and development to address key barriers to 
the integration of advanced building technologies 
and to accelerate the transition to smart buildings. 
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(2) INCLUSION.—The research and development 
conducted under paragraph (1) shall include re-
search and development on— 
(A) physical components, such as sensors 
and controls; 
(B) reducing the cost of key components to 
accelerate the adoption of smart building tech-
nologies; 
(C) data management, including the cap-
ture and analysis of data and the interoper-
ability of the energy systems; 
(D) business models, including how busi-
ness models may limit the adoption of smart 
building technologies and how to support 
transactive energy; 
(E) the characterization of buildings and 
components; 
(F) consumer and utility protections; 
(G) continuous management, including the 
challenges of managing multiple energy systems 
and optimizing systems for disparate stake-
holders; and 
(H) other areas of research and develop-
ment, as determined appropriate by the Sec-
retary. 
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100 
SEC. 32207. REPORT. 
Not later than 18 months after the date of enactment 
of this Act, 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— 
(1) the survey and evaluation of private sector 
smart buildings carried out under section 32204; 
(2) the evaluation of Federal smart buildings 
carried out under section 32205; and 
(3) any recommendations of the Secretary to 
further accelerate the transition to smart buildings. 
PART 3—WEATHERIZATION ASSISTANCE AND 
STATE ENERGY PROGRAMS 
SEC. 32301. WEATHERIZATION ASSISTANCE AND STATE EN-
ERGY PROGRAMS. 
(a) REAUTHORIZATION
OF WEATHERIZATION AS-
SISTANCE PROGRAM.—Section 422 of the Energy Con-
servation and Production Act (42 U.S.C. 6872) is amend-
ed by striking ‘‘appropriated—’’ and all that follows 
through 
‘‘2012..’’ 
and 
inserting 
‘‘appropriated 
$450,000,000 for each of fiscal years 2018 through 
2022.’’. 
(b) REAUTHORIZATION
OF STATE ENERGY PRO-
GRAMS.—Section 365(f) of the Energy Policy and Con-
servation Act (42 U.S.C. 6325(f)) is amended by striking 
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101 
‘‘$125,000,000 for each of fiscal years 2007 through 
2012’’ and inserting ‘‘$90,000,000 for each of fiscal years 
2018 through 2022’’. 
PART 4—SMART ENERGY AND WATER 
EFFICIENCY 
SEC. 32401. SHORT TITLE. 
This part may be cited as the ‘‘Smart Energy and 
Water Efficiency Act of 2017’’. 
SEC. 32402. SMART ENERGY AND WATER EFFICIENCY PILOT 
PROGRAM. 
(a) DEFINITIONS.—In this section: 
(1) ELIGIBLE ENTITY.—The term ‘‘eligible enti-
ty’’ means— 
(A) a utility; 
(B) a municipality; 
(C) a water district; and 
(D) any other authority that provides 
water, wastewater, or water reuse services. 
(2) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Energy. 
(3) SMART ENERGY AND WATER EFFICIENCY 
PILOT
PROGRAM.—The term ‘‘smart energy and 
water efficiency pilot program’’ or ‘‘pilot program’’ 
means the pilot program established under sub-
section (b). 
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102 
(b) SMART ENERGY AND WATER EFFICIENCY PILOT 
PROGRAM.— 
(1) IN GENERAL.—The Secretary shall establish 
and carry out a smart energy and water efficiency 
management pilot program in accordance with this 
section. 
(2) PURPOSE.—The purpose of the smart en-
ergy and water efficiency pilot program is to award 
grants to eligible entities to demonstrate advanced 
and innovative technology-based solutions that will— 
(A) increase and improve the energy effi-
ciency of water, wastewater, and water reuse 
systems to help communities across the United 
States make significant progress in conserving 
water, saving energy, and reducing costs; 
(B) support the implementation of innova-
tive processes and the installation of advanced 
automated systems that provide real-time data 
on energy and water; and 
(C) improve energy and water conserva-
tion, water quality, and predictive maintenance 
of energy and water systems, through the use 
of Internet-connected technologies, including 
sensors, intelligent gateways, and security em-
bedded in hardware. 
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103 
(3) PROJECT SELECTION.— 
(A) IN
GENERAL.—The Secretary shall 
make competitive, merit-reviewed grants under 
the pilot program to not less than 3, but not 
more than 5, eligible entities. 
(B) SELECTION CRITERIA.—In selecting an 
eligible entity to receive a grant under the pilot 
program, the Secretary shall consider— 
(i) energy and cost savings anticipated 
to result from the project; 
(ii) the innovative nature, commercial 
viability, and reliability of the technology 
to be used; 
(iii) the degree to which the project 
integrates next-generation sensors, soft-
ware, hardware, analytics, and manage-
ment tools; 
(iv) the anticipated cost-effectiveness 
of the pilot project in terms of energy effi-
ciency savings, water savings or reuse, and 
infrastructure costs averted; 
(v) whether the technology can be de-
ployed in a variety of geographic regions 
and the degree to which the technology can 
be implemented on a smaller or larger 
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104 
scale, including whether the technology can 
be implemented by each type of eligible en-
tity; 
(vi) whether the technology has been 
successfully deployed elsewhere; 
(vii) whether the technology is sourced 
from a manufacturer based in the United 
States; and 
(viii) whether the project will be com-
pleted in 5 years or less. 
(C) APPLICATIONS.— 
(i) IN
GENERAL.—Subject to clause 
(ii), an eligible entity seeking a grant 
under the pilot program shall submit to 
the Secretary an application at such time, 
in such manner, and containing such infor-
mation as the Secretary determines to be 
necessary. 
(ii) CONTENTS.—An application under 
clause (i) shall, at a minimum, include— 
(I) a description of the project; 
(II) a description of the tech-
nology to be used in the project; 
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(III) the anticipated results, in-
cluding energy and water savings, of 
the project; 
(IV) a comprehensive budget for 
the project; and 
(V) the number of households or 
customers to be served by the project. 
(4) ADMINISTRATION.— 
(A) IN
GENERAL.—Not later than 300 
days after the date of enactment of this Act, 
the Secretary shall select grant recipients under 
this section. 
(B) EVALUATIONS.—The Secretary shall 
annually for 5 years carry out an evaluation of 
each project for which a grant is provided 
under this section that— 
(i) evaluates the progress and impact 
of the project; and 
(ii) assesses the degree to which the 
project is meeting the goals of the pilot 
program. 
(C) TECHNICAL
AND
POLICY
ASSIST-
ANCE.—On the request of a grant recipient, the 
Secretary shall provide technical and policy as-
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sistance to the grant recipient to carry out the 
project. 
(D) BEST
PRACTICES.—The Secretary 
shall make available to the public— 
(i) a copy of each evaluation carried 
out under subparagraph (B); and 
(ii) a description of any best practices 
identified by the Secretary as a result of 
those evaluations. 
(E) REPORT
TO
CONGRESS.—Not later 
than 5 years after the establishment of the pro-
gram, the Secretary shall submit to Congress a 
report containing the results of each evaluation 
carried out under subparagraph (B). 
(c) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated $15,000,000 to carry out 
this section, to remain available until expended. 
PART 5—DIESEL EMISSIONS REDUCTION 
SEC. 32501. SHORT TITLE. 
This part may be cited as the ‘‘Diesel Emissions Re-
duction Act of 2017’’. 
SEC. 32502. REAUTHORIZATION OF DIESEL EMISSIONS RE-
DUCTION PROGRAM. 
Section 797(a) of the Energy Policy Act of 2005 (42 
U.S.C. 16137(a)) is amended— 
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(1) by striking ‘‘$100,000,000’’ and inserting 
‘‘$200,000,000’’; and 
(2) by striking ‘‘2016’’ and inserting ‘‘2022’’. 
PART 6—ENERGY IMPROVEMENTS AT PUBLIC 
SCHOOL FACILITIES 
SEC. 32601. GRANTS FOR ENERGY EFFICIENCY IMPROVE-
MENTS AND RENEWABLE ENERGY IMPROVE-
MENTS AT PUBLIC SCHOOL FACILITIES. 
(a) DEFINITIONS.—In this section: 
(1) ELIGIBLE ENTITY.—The term ‘‘eligible enti-
ty’’ means a consortium of— 
(A) one local educational agency; and 
(B) one or more— 
(i) schools; 
(ii) nonprofit organizations; 
(iii) for-profit organizations; or 
(iv) community partners that have the 
knowledge and capacity to partner and as-
sist with energy improvements. 
(2) ENERGY IMPROVEMENTS.—The term ‘‘en-
ergy improvements’’ means— 
(A) any improvement, repair, or renova-
tion, to a school that will result in a direct re-
duction in school energy costs including but not 
limited to improvements to building envelope, 
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air conditioning, ventilation, heating system, do-
mestic hot water heating, compressed air sys-
tems, distribution systems, lighting, power sys-
tems and controls; 
(B) any improvement, repair, renovation, 
or installation that leads to an improvement in 
teacher and student health including but not 
limited to indoor air quality, daylighting, ven-
tilation, electrical lighting, and acoustics; and 
(C) the installation of renewable energy 
technologies (such as wind power, photovoltaics, 
solar thermal systems, geothermal energy, hy-
drogen-fueled systems, biomass-based systems, 
biofuels, anaerobic digesters, and hydropower) 
involved in the improvement, repair, or renova-
tion to a school. 
(b) AUTHORITY.—From amounts made available for 
grants under this section, the Secretary of Energy shall 
provide competitive grants to eligible entities to make en-
ergy improvements authorized by this section. 
(c) PRIORITY.—In making grants under this sub-
section, the Secretary shall give priority to eligible entities 
that have renovation, repair, and improvement funding 
needs and are— 
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109 
(1) a high-need local educational agency, as de-
fined in section 2102 of the Elementary and Sec-
ondary Education Act of 1965 (20 14 U.S.C. 6602); 
or 
(2) a local educational agency designated with 
a metrocentric locale code of 41, 42, or 43 as deter-
mined by the National Center for Education Statis-
tics (NCES), in conjunction with the Bureau of the 
Census, using the NCES system for classifying local 
educational agencies. 
(d) COMPETITIVE CRITERIA.—The competitive cri-
teria used by the Secretary shall include the following: 
(1) The fiscal capacity of the eligible entity to 
meet the needs for improvements of school facilities 
without assistance under this section, including the 
ability of the eligible entity to raise funds through 
the use of local bonding capacity and otherwise. 
(2) The likelihood that the local educational 
agency or eligible entity will maintain, in good condi-
tion, any facility whose improvement is assisted. 
(3) The potential energy efficiency and safety 
benefits from the proposed energy improvements. 
(e) APPLICATIONS.—To be eligible to receive a grant 
under this section, an applicant must submit to the Sec-
retary an application that includes each of the following: 
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110 
(1) A needs assessment of the current condition 
of the school and facilities that are to receive the en-
ergy improvements. 
(2) A draft work plan of what the applicant 
hopes to achieve at the school and a description of 
the energy improvements to be carried out. 
(3) A description of the applicant’s capacity to 
provide services and comprehensive support to make 
the energy improvements. 
(4) An assessment of the applicant’s expected 
needs for operation and maintenance training funds, 
and a plan for use of those funds, if any. 
(5) An assessment of the expected energy effi-
ciency and safety benefits of the energy improve-
ments. 
(6) A cost estimate of the proposed energy im-
provements. 
(7) An identification of other resources that are 
available to carry out the activities for which funds 
are requested under this section, including the avail-
ability of utility programs and public benefit funds. 
(f) USE OF GRANT AMOUNTS.— 
(1) IN
GENERAL.—The recipient of a grant 
under this section shall use the grant amounts only 
to make the energy improvements contemplated in 
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111 
the application, subject to the other provisions of 
this subsection. 
(2) OPERATION
AND
MAINTENANCE
TRAIN-
ING.—The recipient may use up to 5 percent for op-
eration and maintenance training for energy effi-
ciency and renewable energy improvements (such as 
maintenance staff and teacher training, education, 
and preventative maintenance training). 
(3) AUDIT.—The recipient may use funds for a 
third-party investigation and analysis for energy im-
provements (such as energy audits and existing 
building commissioning). 
(4) CONTINUING
EDUCATION.—The recipient 
may use up to 1 percent of the grant amounts to de-
velop a continuing education curriculum relating to 
energy improvements. 
(g) CONTRACTING REQUIREMENTS.— 
(1) DAVIS-BACON.—Any laborer or mechanic 
employed by any contractor or subcontractor in the 
performance of work on any energy improvements 
funded by a grant under this section shall be paid 
wages at rates not less than those prevailing on 
similar construction in the locality as determined by 
the Secretary of Labor under subchapter IV of chap-
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112 
ter 31 of title 40, United States Code (commonly re-
ferred to as the Davis-Bacon Act). 
(2) COMPETITION.—Each applicant that re-
ceives funds shall ensure that, if the applicant car-
ries out repair or renovation through a contract, any 
such contract process— 
(A) ensures the maximum number of quali-
fied bidders, including small, minority, and 
women-owned businesses, through full and open 
competition; and 
(B) gives priority to businesses located in, 
or resources common to, the State or the geo-
graphical area in which the project is carried 
out. 
(h) REPORTING.—Each recipient of a grant under 
this section shall submit to the Secretary, at such time 
as the Secretary may require, a report describing the use 
of such funds for energy improvements, the estimated cost 
savings realized by those energy improvements, the results 
of any audit, the use of any utility programs and public 
benefit funds and the use of performance tracking for en-
ergy improvements (such as the Department of Energy: 
Energy Star program or LEED for Existing Buildings). 
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113 
(i) BEST PRACTICES.—The Secretary shall develop 
and publish guidelines and best practices for activities car-
ried out under this section. 
(j) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated to carry out this section 
$100,000,000 for each of fiscal years 2018 through 2022. 
Subtitle C—Energy Supply 
Infrastructure 
PART 1—LOW-INCOME SOLAR 
SEC. 33101. SHORT TITLE. 
This part may be cited as the ‘‘Low-Income Solar Act 
of 2017’’. 
SEC. 33102. LOAN AND GRANT PROGRAM FOR SOLAR IN-
STALLATIONS IN LOW-INCOME AND UNDER-
SERVED AREAS. 
(a) DEFINITIONS.—In this section: 
(1) ADMINISTRATIVE
EXPENSES.—The term 
‘‘administrative expenses’’ has such meaning as may 
be established by the Secretary. 
(2) COMMUNITY
SOLAR
FACILITY.—The term 
‘‘community solar facility’’ means a photovoltaic 
solar electricity generating facility that, as deter-
mined by the Secretary— 
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(A) through a voluntary program, provides 
electric power or financial benefit to, or is 
owned by, multiple community members; 
(B) has a nameplate rating of 2 megawatts 
or less; 
(C) is located in or near a community of 
subscribers; and 
(D) the owner or operator of which re-
serves not less than 25 percent of the quantity 
of electricity generated by the facility for low- 
income households that are subscribers to the 
facility. 
(3) ELIGIBLE ENTITY.—The term ‘‘eligible enti-
ty’’ means— 
(A) a low-income household; 
(B) a unit of State, territorial, or local 
government; 
(C) an Indian Tribe; 
(D) a Native Hawaiian community-based 
organization; 
(E) any other national or regional entity 
that— 
(i) deploys a safe, high-quality photo-
voltaic solar electricity generating facility 
for consumers under a model that maxi-
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115 
mizes energy savings to those consumers; 
and 
(ii) has experience, as determined by 
the Secretary, installing solar systems 
using a job training or community volun-
teer-based installation model; and 
(F) for the loan program only, in addition 
to entities described in subsections (A) through 
(E), a private entity that— 
(i) deploys a safe, high-quality photo-
voltaic solar electricity generating facility 
for consumers under a model that maxi-
mizes energy savings to those consumers; 
and 
(ii) will install solar systems using a 
job training installation model. 
(4) GRANT-ELIGIBLE HOUSEHOLD.—The term 
‘‘grant-eligible household’’ means a low-income 
household the members of which reside in an owner- 
occupied home. 
(5) INDIAN TRIBE.—The term ‘‘Indian Tribe’’ 
means any Indian Tribe, band, nation, or other or-
ganized group or community, including any Alaska 
Native village, Regional Corporation, or Village Cor-
poration (as defined in, or established pursuant to, 
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116 
the Alaska Native Claims Settlement Act (43 U.S.C. 
1601 et seq.)), that is recognized as eligible for the 
special programs and services provided by the 
United States to Indians because of their status as 
Indians. 
(6) 
LOW-INCOME
HOUSEHOLD.—The 
term 
‘‘low-income household’’ means a household with an 
income equal to 80 percent or less of the applicable 
area median income, as defined for the applicable 
year by the Secretary of Housing and Urban Devel-
opment. 
(7) MULTI-FAMILY
AFFORDABLE
HOUSING.— 
The term ‘‘multi-family affordable housing’’ means 
any federally subsidized affordable housing complex 
in which at least 50 percent of the units are reserved 
for low-income households. 
(8) NATIVE HAWAIIAN COMMUNITY-BASED OR-
GANIZATION.—The term ‘‘Native Hawaiian commu-
nity-based organization’’ means any organization 
that is composed primarily of Native Hawaiians 
from a specific community and that assists in the 
social, cultural, and educational development of Na-
tive Hawaiians in that community. 
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117 
(9) PHOTOVOLTAIC SOLAR ELECTRICITY GEN-
ERATING FACILITY.—The term ‘‘photovoltaic solar 
electricity generating facility’’ means— 
(A) a generator that creates electricity 
from light photons; and 
(B) the accompanying hardware enabling 
that electricity to flow— 
(i) onto the electric grid; or 
(ii) into an energy storage device. 
(10) 
SECRETARY.—The 
term 
‘‘Secretary’’ 
means the Secretary of Energy. 
(11) SUBSCRIBER.—The term ‘‘subscriber’’ 
means an electricity consumer who owns a subscrip-
tion, or an equivalent unit or share of the capacity 
or generation, of a community solar facility. 
(12) SUBSCRIPTION.—The term ‘‘subscription’’ 
means a share in the capacity, or a proportional in-
terest in the solar electricity generation, of a com-
munity solar facility. 
(13) UNDERSERVED AREA.—The term ‘‘under-
served area’’ means— 
(A) a geographical area with low or no 
photovoltaic solar deployment, as determined by 
the Secretary; or 
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(B) trust land, as defined in section 3765 
of title 38, United States Code. 
(b) ESTABLISHMENT OF LOAN AND GRANT PRO-
GRAM.— 
(1) IN GENERAL.—The Secretary shall establish 
a program under which the Secretary shall provide 
loans and grants to eligible entities for use in ac-
cordance with this section. 
(2) FUNDING.— 
(A) IN
GENERAL.—Subject to the avail-
ability of appropriations, the Secretary shall 
make grants and issue loans in accordance with 
this subsection. 
(B) LOANS.—Not more than 50 percent of 
funds made available pursuant to subparagraph 
(A) for a fiscal year shall be used to provide 
loans to eligible entities for— 
(i) construction or installation of com-
munity solar facilities; or 
(ii) construction or installation of pho-
tovoltaic solar electricity generating facili-
ties to serve multi-family affordable hous-
ing. 
(C) GRANTS.—After allocating amounts to 
carry out subparagraph (B), the Secretary shall 
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119 
use the remaining funds made available pursu-
ant to subparagraph (A) for a fiscal year to 
provide grants to eligible entities for eligible 
uses described in subsection (e). 
(3) GOALS
AND
ACCOUNTABILITY.—In pro-
viding loans and grants under this subsection, the 
Secretary shall take such actions as may be nec-
essary to ensure that— 
(A) the assistance provided under this sub-
section is used to facilitate and encourage inno-
vative solar installation and financing models, 
under which the recipients develop and install 
photovoltaic solar electricity generating facilities 
that provide significant savings to low-income 
households while providing job training or com-
munity engagement opportunities with respect 
to each solar system installed; 
(B) the photovoltaic solar electricity gener-
ating facilities installed using assistance pro-
vided under this subsection are safe, high-qual-
ity systems that comply with local building and 
safety codes and standards; 
(C) the program under this section estab-
lishes and fosters a partnership between the 
Federal Government and eligible entities, re-
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sulting in efficient development of solar installa-
tions with— 
(i) minimal governmental intervention; 
(ii) limited governmental regulation; 
and 
(iii) significant involvement by non-
profit and private entities; 
(D) photovoltaic solar electricity generating 
facilities installed using assistance provided 
under this subsection— 
(i) include job training and commu-
nity participation to the extent practicable; 
and 
(ii) may include community participa-
tion in which job trainees and volunteers 
assist in the development of solar projects; 
(E) assistance provided under this sub-
section prioritizes development in underserved 
areas; 
(F) photovoltaic solar electricity generating 
facilities are developed using assistance pro-
vided under this subsection on a geographically 
diverse basis among the eligible entities; and 
(G) to the maximum extent practicable, 
solar installation activities for which assistance 
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121 
is provided under this section leverage, or con-
nect grant-eligible households to, federally or lo-
cally subsidized weatherization and energy effi-
ciency efforts that meet or exceed local energy 
efficiency standards. 
(c) NATIONAL COMPETITION.— 
(1) IN GENERAL.—The Secretary shall select el-
igible entities to receive loans or grants under this 
section through a nationwide competitive process, to 
be established by the Secretary. 
(2) APPLICATIONS.—To be eligible to receive a 
loan or grant under this section, an eligible entity 
shall submit to the Secretary an application at such 
time, in such manner, and containing such informa-
tion as the Secretary may require. 
(3) REQUIREMENTS.—In selecting eligible enti-
ties to receive loans or grants under this section, the 
Secretary shall, at a minimum— 
(A) require that the eligible entity— 
(i) enter into a grant or loan agree-
ment, as applicable, under subsection (d); 
and 
(ii) has obtained financial commit-
ments (or has demonstrated the capacity 
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to obtain financial commitments) necessary 
to comply with that agreement; 
(B) ensure that loans and grants are pro-
vided, and amounts are used, in a manner that 
results in geographical diversity throughout the 
United States and within States, territories, 
and Indian tribal land among photovoltaic solar 
electricity generating facilities installed using 
the assistance provided under this section; 
(C) to the maximum extent practicable, ex-
pand photovoltaic solar energy availability to— 
(i) geographical areas, throughout the 
United States and within States, terri-
tories, and Indian tribal land, with— 
(I) low photovoltaic solar pene-
tration; or 
(II) areas with a higher cost bur-
den with respect to the deployment or 
installation of photovoltaic solar elec-
tricity generating facilities; 
(ii) rural areas; 
(iii) Indian tribes; and 
(iv) other underserved areas, including 
Appalachian and Alaska Native commu-
nities; 
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(D) take into account the warranty period 
and quality of the applicable photovoltaic solar 
electricity generating facility equipment and any 
necessary interconnecting equipment; and 
(E) ensure all calculations for estimated 
household energy savings are based solely on 
electricity offsets from the photovoltaic solar 
electricity generating facilities. 
(d) LOAN AND GRANT AGREEMENTS.— 
(1) IN GENERAL.—As a condition of receiving a 
loan or grant under this section, an eligible entity 
shall enter into a loan or grant agreement, as appli-
cable, with the Secretary. 
(2) REQUIREMENTS.—A loan or grant agree-
ment under this subsection shall— 
(A) require the Secretary to rescind any 
amounts provided to the eligible entity that are 
not used during the 2-year period beginning on 
the date on which the amounts are initially dis-
tributed to the eligible entity, except in any case 
in which the eligible entity has demonstrated to 
the satisfaction of the Secretary that a longer 
period, not to exceed 3 years after the date of 
initial distribution, is necessary to deliver pro-
posed services; 
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(B) for a loan provided under this section, 
establish— 
(i) an interest rate equal to the then- 
current cost of funds to the Department of 
the Treasury for obligations of comparable 
maturity to the loan; and 
(ii) a payout time that maximizes the 
savings to subscribers during the effective 
period of the agreement; and 
(C) contain such other terms as the Sec-
retary may require to ensure compliance with 
the requirements of this section. 
(e) USE.—An eligible entity shall use a loan or grant 
provided under this section only for the following activi-
ties, for the purpose of developing new photovoltaic solar 
electricity generating facilities in the United States for 
low-income households and individuals who otherwise 
would likely be unable to afford or purchase photovoltaic 
solar electricity generating facilities: 
(1) PHOTOVOLTAIC SOLAR EQUIPMENT AND IN-
STALLATION.—To pay the costs of— 
(A) photovoltaic solar equipment and stor-
age and all hardware or software components 
relating to safely producing, monitoring, and 
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connecting the system to the electric grid or on-
site storage; and 
(B) installation, including all direct labor 
costs associated with installing the photovoltaic 
solar equipment and storage. 
(2) JOB TRAINING.—To fund onsite job train-
ing and community or volunteer engagement, includ-
ing— 
(A) job training costs directly associated 
with the solar projects funded under this sec-
tion; and 
(B) job training opportunities that may 
cover the full range of the solar value chain, 
such as marketing and outreach, customer ac-
quisition, system design, and installation posi-
tions. 
(3) DEPLOYMENT SUPPORT.—To fund entities 
that have a demonstrated ability, as determined by 
the Secretary— 
(A) to advise State and local entities re-
garding low-income solar policy, regulatory, and 
program design to continue and expand the 
work of the entities; 
(B) to foster community outreach and edu-
cation regarding the benefits of photovoltaic 
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solar energy for low-income and disadvantaged 
communities; or 
(C) to provide apprenticeship program op-
portunities registered and approved by— 
(i) the Office of Apprenticeship of the 
Department of Labor pursuant to part 29 
of title 29, Code of Federal Regulations (or 
successor regulations); or 
(ii) a State Apprenticeship Agency 
recognized by that Office. 
(4) ADMINISTRATION.—To pay the administra-
tive expenses of the eligible entity, including 
preproject feasibility efforts, associated with deliv-
ering proposed services, subject to the requirement 
that not more than 15 percent of the total amount 
of the assistance provided to the eligible entity under 
this section may be used for administrative expenses. 
(f) COMPLIANCE.— 
(1) RECORDS AND AUDITS.—During the period 
beginning on the date of initial distribution to an eli-
gible entity of a loan or grant under this section and 
ending on the termination date of the loan or grant 
under subsection (g), the eligible entity shall main-
tain such records and adopt such administrative 
practices as the Secretary may require to ensure 
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compliance with the requirements of this section and 
the applicable loan or grant agreement. 
(2) DETERMINATION
BY
SECRETARY.—If the 
Secretary determines that an eligible entity that re-
ceives a grant or loan under this section has not, 
during the 2-year period beginning on the date of 
initial distribution to the eligible entity of the assist-
ance (or such longer period as is established under 
subsection (d)(2)(B)), substantially fulfilled the obli-
gations of the eligible entity under the applicable 
loan or grant agreement, the Secretary shall— 
(A) rescind the balance of any funds dis-
tributed to, but not used by, the eligible entity 
under this section; and 
(B) use those amounts to provide other 
loans or grants in accordance with this section. 
(g) TERMINATION.—The Secretary shall terminate a 
loan or grant provided under this section on a determina-
tion that the total amount of the loan or grant (excluding 
any interest, fees, and other earnings of the loan or grant) 
has been— 
(1) fully expended by the eligible entity; or 
(2) returned to the Secretary. 
(h) REGULATIONS.—Not later than 90 days after the 
date of enactment of this Act, the Secretary shall promul-
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gate such regulations as the Secretary determines to be 
necessary to carry out this section, to take effect on the 
date of promulgation. 
(i) FUNDING.—There is authorized to be appro-
priated to the Secretary to carry out this section 
$200,000,000 for each of fiscal years 2018 through 2022, 
to remain available until expended. 
PART 2—SAFE, AFFORDABLE, AND ENVIRON-
MENTALLY SOUND NATURAL GAS DISTRIBU-
TION 
SEC. 33201. IMPROVING THE NATURAL GAS DISTRIBUTION 
SYSTEM. 
(a) ESTABLISHMENT OF PROGRAM.—The Secretary 
of Energy shall establish a program to award grants to 
States, in accordance with this section, for the purpose 
of providing incentives for natural gas distribution compa-
nies to improve the public safety and environmental per-
formance of the natural gas distribution system. 
(b) GRANTS TO STATES.— 
(1) IN GENERAL.—A State may apply for a 
grant under this section to provide funds to natural 
gas distribution companies in the State that are car-
rying out an eligible project. 
(2) REQUIREMENTS.—In applying for a grant 
under this section, a State shall demonstrate how 
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the State rate-setting program will ensure that 
funds provided to natural gas distribution companies 
under this section are used in accordance with the 
requirements of this section. 
(c) ELIGIBLE PROJECTS.—A project that is eligible 
to be funded through a grant to a State under this section 
is a project carried out by a natural gas distribution com-
pany to accelerate, expand, or enhance the implementation 
of a plan approved by the State before the date of enact-
ment of this section for— 
(1) replacement of cast and wrought iron and 
bare steel pipes and other leak-prone components of 
the natural gas distribution system; or 
(2) inspection and maintenance programs for 
the natural gas distribution system. 
(d) RATE ASSISTANCE.—A natural gas distribution 
company receiving funds through a grant to a State under 
this section may use such funds only to offset the near- 
term incremental costs, as reflected in rate increases to 
low-income households, of the eligible project. 
(e) LIMIT TO TRANSITIONAL ASSISTANCE.—A State 
may provide funds to a natural gas company under this 
section for a period not to exceed 4 years. 
(f) PRIORITIZATION.—In awarding grants under this 
section, the Secretary shall prioritize applications based 
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on the expected results of the State proposal with respect 
to— 
(1) quantifiable benefits for public safety; 
(2) the magnitude of methane emissions reduc-
tions; 
(3) innovation in technical or policy approaches; 
(4) the number of low-income households antici-
pated to benefit from the assistance; and 
(5) overall cost-effectiveness. 
(g) AUDITING AND REPORTING REQUIREMENTS.— 
The Secretary shall establish auditing and reporting re-
quirements for States with respect to grants awarded 
under this section. 
(h) DEFINITIONS.—In this section: 
(1) 
LOW-INCOME
HOUSEHOLD.—The 
term 
‘‘low-income household’’ means a household that is 
eligible to receive payments under section 2605(b)(2) 
of the Low-Income Home Energy Assistance Act of 
1981 (42 U.S.C. 8624(b)(2)). 
(2) NATURAL GAS DISTRIBUTION COMPANY.— 
The term ‘‘natural gas distribution company’’ means 
a person or municipality engaged in the local dis-
tribution of natural gas to the public. 
(3) NATURAL
GAS
DISTRIBUTION
SYSTEM.— 
The term ‘‘natural gas distribution system’’ means 
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131 
the facilities used for the local distribution of nat-
ural gas. 
(i) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary to carry 
out this section $150,000,000 per fiscal year, with the 
total amount not to exceed $1,500,000,000. 
PART 3—CLEAN DISTRIBUTED ENERGY 
PROGRAM 
SEC. 33301. SHORT TITLE. 
This part may be cited as the ‘‘Local Energy Supply 
and Resiliency Act of 2017’’. 
SEC. 33302. DEFINITIONS. 
In this part: 
(1) COMBINED HEAT AND POWER SYSTEM.— 
The term ‘‘combined heat and power system’’ means 
generation of electric energy and heat in a single, in-
tegrated system that meets the efficiency criteria in 
clauses (ii) and (iii) of section 48(c)(3)(A) of the In-
ternal Revenue Code of 1986, under which heat that 
is conventionally rejected is recovered and used to 
meet thermal energy requirements. 
(2) DEMAND RESPONSE.—The term ‘‘demand 
response’’ means changes in electric usage by elec-
tric utility customers from the normal consumption 
patterns of the customers in response to— 
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(A) changes in the price of electricity over 
time; or 
(B) incentive payments designed to induce 
lower electricity use at times of high wholesale 
market prices or when system reliability is jeop-
ardized. 
(3) DISTRIBUTED ENERGY.—The term ‘‘distrib-
uted energy’’ means energy sources and systems 
that— 
(A) produce electric or thermal energy 
close to the point of use using renewable energy 
resources or waste thermal energy; 
(B) generate electricity using a combined 
heat and power system; 
(C) distribute electricity in microgrids; 
(D) store electric or thermal energy; or 
(E) distribute thermal energy or transfer 
thermal energy to building heating and cooling 
systems through a district energy system. 
(4) DISTRICT
ENERGY
SYSTEM.—The term 
‘‘district energy system’’ means a system that pro-
vides thermal energy to buildings and other energy 
consumers from one or more plants to individual 
buildings to provide space heating, air conditioning, 
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domestic hot water, industrial process energy, and 
other end uses. 
(5) ISLANDING.—The term ‘‘islanding’’ means 
a distributed generator or energy storage device con-
tinuing to power a location in the absence of electric 
power from the primary source. 
(6) LOAN.—The term ‘‘loan’’ has the meaning 
given the term ‘‘direct loan’’ in section 502 of the 
Federal Credit Reform Act of 1990 (2 U.S.C. 661a). 
(7) MICROGRID.—The term ‘‘microgrid’’ means 
an integrated energy system consisting of inter-
connected loads and distributed energy resources, in-
cluding generators and energy storage devices, with-
in clearly defined electrical boundaries that— 
(A) acts as a single controllable entity with 
respect to the grid; and 
(B) can connect and disconnect from the 
grid to operate in both grid-connected mode 
and island mode. 
(8) RENEWABLE
ENERGY
RESOURCE.—The 
term ‘‘renewable energy resource’’ includes— 
(A) biomass; 
(B) geothermal energy; 
(C) hydropower; 
(D) landfill gas; 
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(E) municipal solid waste; 
(F) ocean (including tidal, wave, current, 
and thermal) energy; 
(G) organic waste; 
(H) photosynthetic processes; 
(I) photovoltaic energy; 
(J) solar energy; and 
(K) wind. 
(9) RENEWABLE THERMAL ENERGY.—The term 
‘‘renewable thermal energy’’ means heating or cool-
ing energy derived from a renewable energy re-
source. 
(10) 
SECRETARY.—The 
term 
‘‘Secretary’’ 
means the Secretary of Energy. 
(11) THERMAL ENERGY.—The term ‘‘thermal 
energy’’ means— 
(A) heating energy in the form of hot 
water or steam that is used to provide space 
heating, domestic hot water, or process heat; or 
(B) cooling energy in the form of chilled 
water, ice, or other media that is used to pro-
vide air conditioning, or process cooling. 
(12) WASTE
THERMAL
ENERGY.—The term 
‘‘waste thermal energy’’ means energy that— 
(A) is contained in— 
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(i) exhaust gases, exhaust steam, con-
denser water, jacket cooling heat, or lubri-
cating oil in power generation systems; 
(ii) exhaust heat, hot liquids, or flared 
gas from any industrial process; 
(iii) waste gas or industrial tail gas 
that would otherwise be flared, incinerated, 
or vented; 
(iv) a pressure drop in any gas, ex-
cluding any pressure drop to a condenser 
that subsequently vents the resulting heat; 
(v) condenser water from chilled water 
or refrigeration plants; or 
(vi) any other form of waste energy, 
as determined by the Secretary; and 
(B)(i) in the case of an existing facility, is 
not being used; or 
(ii) in the case of a new facility, is not con-
ventionally used in comparable systems. 
SEC. 33303. DISTRIBUTED ENERGY LOAN PROGRAM. 
(a) LOAN PROGRAM.— 
(1) IN GENERAL.—Subject to the provisions of 
this subsection and subsections (b) and (c), the Sec-
retary shall establish a program to provide to eligible 
entities— 
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(A) loans for the deployment of distributed 
energy systems in a specific project; and 
(B) loans to provide funding for programs 
to finance the deployment of multiple distrib-
uted energy systems through a revolving loan 
fund, credit enhancement program, or other fi-
nancial assistance program. 
(2) ELIGIBILITY.—Entities eligible to receive a 
loan under paragraph (1) include— 
(A) a State, territory, or possession of the 
United States; 
(B) a State energy office; 
(C) a tribal organization (as defined in sec-
tion 4 of the Indian Self-Determination and 
Education Assistance Act (25 U.S.C. 5304)); 
(D) an institution of higher education (as 
defined in section 101 of the Higher Education 
Act of 1965 (20 U.S.C. 1001)); and 
(E) an electric utility, including— 
(i) a rural electric cooperative; 
(ii) a municipally owned electric util-
ity; and 
(iii) an investor-owned utility. 
(3) SELECTION REQUIREMENTS.—In selecting 
eligible entities to receive loans under this section, 
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the Secretary shall, to the maximum extent prac-
ticable, ensure— 
(A) regional diversity among eligible enti-
ties to receive loans under this section, includ-
ing participation by rural States and small 
States; and 
(B) that specific projects selected for 
loans— 
(i) expand on the existing technology 
deployment program of the Department of 
Energy; and 
(ii) are designed to achieve one or 
more of the objectives described in para-
graph (4). 
(4) OBJECTIVES.—Each deployment selected 
for a loan under paragraph (1) shall promote one or 
more of the following objectives: 
(A) Improved security and resiliency of en-
ergy supply in the event of disruptions caused 
by extreme weather events, grid equipment or 
software failure, or terrorist acts. 
(B) Implementation of distributed energy 
in order to increase use of local renewable en-
ergy resources and waste thermal energy 
sources. 
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(C) Enhanced feasibility of microgrids, de-
mand response, or islanding. 
(D) Enhanced management of peak loads 
for consumers and the grid. 
(E) Enhanced reliability in rural areas, in-
cluding high energy cost rural areas. 
(5) RESTRICTION ON USE OF FUNDS.—Any eli-
gible entity that receives a loan under paragraph (1) 
may only use the loan to fund programs relating to 
the deployment of distributed energy systems. 
(b) LOAN TERMS AND CONDITIONS.— 
(1) TERMS AND CONDITIONS.—Notwithstanding 
any other provision of law, in providing a loan under 
this section, the Secretary shall provide the loan on 
such terms and conditions as the Secretary deter-
mines, after consultation with the Secretary of the 
Treasury, in accordance with this section. 
(2) SPECIFIC APPROPRIATION.—No loan shall 
be made unless an appropriation for the full amount 
of the loan has been specifically provided for that 
purpose. 
(3) REPAYMENT.—No loan shall be made un-
less the Secretary determines that there is reason-
able prospect of repayment of the principal and in-
terest by the borrower of the loan. 
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(4) INTEREST RATE.—A loan provided under 
this section shall bear interest at a fixed rate that 
is equal or approximately equal, in the determination 
of the Secretary, to the interest rate for Treasury 
securities of comparable maturity. 
(5) TERM.—The term of the loan shall require 
full repayment over a period not to exceed the lesser 
of— 
(A) 20 years; or 
(B) 90 percent of the projected useful life 
of the physical asset to be financed by the loan 
(as determined by the Secretary). 
(6) USE OF PAYMENTS.—Payments of principal 
and interest on the loan shall— 
(A) be retained by the Secretary to support 
energy research and development activities; and 
(B) remain available until expended, sub-
ject to such conditions as are contained in an-
nual appropriations Acts. 
(7) NO PENALTY ON EARLY REPAYMENT.—The 
Secretary may not assess any penalty for early re-
payment of a loan provided under this section. 
(8) RETURN OF UNUSED PORTION.—In order to 
receive a loan under this section, an eligible entity 
shall agree to return to the general fund of the 
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Treasury any portion of the loan amount that is un-
used by the eligible entity within a reasonable period 
of time after the date of the disbursement of the 
loan, as determined by the Secretary. 
(9) COMPARABLE WAGE RATES.—Each laborer 
and mechanic employed by a contractor or subcon-
tractor in performance of construction work fi-
nanced, in whole or in part, by the loan shall be paid 
wages at rates not less than the rates prevailing on 
similar construction in the locality as determined by 
the Secretary of Labor in accordance with sub-
chapter IV of chapter 31 of title 40, United States 
Code. 
(c) RULES AND PROCEDURES; DISBURSEMENT OF 
LOANS.— 
(1) RULES AND PROCEDURES.—Not later than 
180 days after the date of enactment of this Act, the 
Secretary shall adopt rules and procedures for car-
rying out the loan program under subsection (a). 
(2) DISBURSEMENT OF LOANS.—Not later than 
1 year after the date on which the rules and proce-
dures under paragraph (1) are established, the Sec-
retary shall disburse the initial loans provided under 
this section. 
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(d) REPORTS.—Not later than 2 years after the date 
of receipt of the loan, and annually thereafter for the term 
of the loan, an eligible entity that receives a loan under 
this section shall submit to the Secretary a report describ-
ing the performance of each program and activity carried 
out using the loan, including itemized loan performance 
data. 
(e) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to carry out this section 
such sums as are necessary. 
SEC. 33304. TECHNICAL ASSISTANCE AND GRANT PRO-
GRAM. 
(a) ESTABLISHMENT.— 
(1) IN GENERAL.—The Secretary shall establish 
a technical assistance and grant program (referred 
to in this section as the ‘‘program’’)— 
(A) to disseminate information and provide 
technical assistance directly to eligible entities 
so the eligible entities can identify, evaluate, 
plan, and design distributed energy systems; 
and 
(B) to make grants to eligible entities so 
that the eligible entities may contract to obtain 
technical assistance to identify, evaluate, plan, 
and design distributed energy systems. 
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(2) TECHNICAL
ASSISTANCE.—The technical 
assistance described in paragraph (1) shall include 
assistance with one or more of the following activi-
ties relating to distributed energy systems: 
(A) Identification of opportunities to use 
distributed energy systems. 
(B) Assessment of technical and economic 
characteristics. 
(C) Utility interconnection. 
(D) Permitting and siting issues. 
(E) Business planning and financial anal-
ysis. 
(F) Engineering design. 
(3) INFORMATION DISSEMINATION.—The infor-
mation disseminated under paragraph (1)(A) shall 
include— 
(A) information relating to the topics de-
scribed in paragraph (2), including case studies 
of successful examples; 
(B) computer software and databases for 
assessment, design, and operation and mainte-
nance of distributed energy systems; and 
(C) public databases that track the oper-
ation and deployment of existing and planned 
distributed energy systems. 
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(b) ELIGIBILITY.—Any nonprofit or for-profit entity 
shall be eligible to receive technical assistance and grants 
under the program. 
(c) APPLICATIONS.— 
(1) IN GENERAL.—An eligible entity desiring 
technical assistance or grants under the program 
shall submit to the Secretary an application at such 
time, in such manner, and containing such informa-
tion as the Secretary may require. 
(2) APPLICATION
PROCESS.—The Secretary 
shall seek applications for technical assistance and 
grants under the program— 
(A) on a competitive basis; and 
(B) on a periodic basis, but not less fre-
quently than once every 12 months. 
(3) PRIORITIES.—In selecting eligible entities 
for technical assistance and grants under the pro-
gram, the Secretary shall give priority to eligible en-
tities with projects that have the greatest potential 
for— 
(A) facilitating the use of renewable energy 
resources; 
(B) strengthening the reliability and resil-
iency of energy infrastructure to the impact of 
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extreme weather events, power grid failures, 
and interruptions in supply of fossil fuels; 
(C) improving the feasibility of microgrids 
or islanding, particularly in rural areas, includ-
ing high energy cost rural areas; 
(D) minimizing environmental impact, in-
cluding regulated air pollutants and greenhouse 
gas emissions; and 
(E) maximizing local job creation. 
(d) GRANTS.—On application by an eligible entity, 
the Secretary may award grants to the eligible entity to 
provide funds to cover not more than— 
(1) 100 percent of the costs of the initial as-
sessment to identify opportunities; 
(2) 75 percent of the cost of feasibility studies 
to assess the potential for the implementation; 
(3) 60 percent of the cost of guidance on over-
coming barriers to implementation, including finan-
cial, contracting, siting, and permitting issues; and 
(4) 45 percent of the cost of detailed engineer-
ing. 
(e) RULES AND PROCEDURES.— 
(1) RULES.—Not later than 180 days after the 
date of enactment of this Act, the Secretary shall 
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adopt rules and procedures for carrying out the pro-
gram. 
(2) GRANTS.—Not later than 120 days after 
the date of issuance of the rules and procedures for 
the program, the Secretary shall issue grants under 
this part. 
(f) REPORTS.—The Secretary shall submit to Con-
gress and make available to the public— 
(1) not less frequently than once every 2 years, 
a report describing the performance of the program 
under this section, including a synthesis and analysis 
of the information provided in the reports submitted 
to the Secretary under section 33303(d); and 
(2) on termination of the program under this 
section, an assessment of the success of, and edu-
cation provided by, the measures carried out by eli-
gible entities during the term of the program. 
(g) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated to carry out this section 
$250,000,000 for the period of fiscal years 2018 through 
2022, to remain available until expended. 
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PART 4—STRATEGIC PETROLEUM RESERVE 
IMPROVEMENTS 
SEC. 33401. STRATEGIC PETROLEUM RESERVE IMPROVE-
MENTS. 
There 
is 
authorized 
to 
be 
appropriated 
$4,000,000,000, to remain available until expended, for 
capital improvements on, and maintenance of, the Stra-
tegic Petroleum Reserve established under part B of title 
I of the Energy Policy and Conservation Act (42 U.S.C. 
6231 et seq.) to ensure that the Reserve is operated and 
maintained in an environmentally sound manner. 
PART 5—SOUTHEAST REFINED PRODUCT 
RESERVE 
SEC. 33501. SOUTHEAST REFINED PRODUCT RESERVE. 
(a) SOUTHEAST REFINED PRODUCT RESERVE.— 
Title I of the Energy Policy and Conservation Act (42 
U.S.C. 6201 et seq.) is amended by adding at the end 
the following: 
‘‘PART E—SOUTHEAST REFINED PRODUCT 
RESERVE 
‘‘SEC. 191. DEFINITIONS. 
‘‘In this part, the following definitions apply: 
‘‘(1) REFINED
PETROLEUM
PRODUCT.—The 
term ‘refined petroleum product’ means gasoline and 
such other products as the Secretary determines ap-
propriate. 
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‘‘(2) RESERVE.—The term ‘Reserve’ means the 
Southeast Refined Product Reserve established 
under this part. 
‘‘(3) 
SOUTHEAST.—The 
term 
‘Southeast’ 
means the States of North Carolina, South Carolina, 
Georgia, Florida, Alabama, and any other contig-
uous State that the Secretary, by rule, determines to 
include. 
‘‘SEC. 192. ESTABLISHMENT. 
‘‘(a) IN GENERAL.—The Secretary shall establish, 
maintain, and operate in the Southeast a Southeast Re-
fined Product Reserve, which shall be a component of the 
Strategic Petroleum Reserve established under part B of 
this title. 
‘‘(b) LIMITATION.—A Reserve established under this 
part shall contain no more than 1 million barrels of refined 
petroleum products. 
‘‘(c) APPLICATION OF PROVISIONS.—Except as oth-
erwise provided in this part, the authorities and require-
ments of part B of this title shall apply to the Reserve. 
‘‘SEC. 193. CONDITIONS FOR RELEASE; PLAN. 
‘‘(a) SALE OF PRODUCTS.—The Secretary may sell 
refined petroleum products from the Reserve upon a find-
ing by the President that there exists, or is likely to exist 
within the next 30 days, a severe energy supply interrup-
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tion. Such a finding may be made only if the President 
determines that— 
‘‘(1) a dislocation in the refined petroleum 
product market has resulted or is likely to result 
from such interruption; or 
‘‘(2) a circumstance, other than that described 
in paragraph (1), exists that constitutes a regional 
supply shortage of significant scope and duration 
and that action taken under this section would assist 
directly and significantly in reducing the adverse im-
pact of such shortage. 
‘‘(b) RELEASE OF PETROLEUM.—After consultation 
with potentially affected parties, the Secretary shall deter-
mine procedures governing the release of refined petro-
leum products from the Reserve. The procedures shall pro-
vide that— 
‘‘(1) the Secretary may— 
‘‘(A) sell refined petroleum products from 
the Reserve through a competitive process; or 
‘‘(B) enter into exchange agreements for 
the refined petroleum products that results in 
the Secretary receiving a greater volume of such 
products as repayment than the volume pro-
vided to the acquirer; 
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‘‘(2) in all sales or exchanges described in para-
graph (1), the Secretary shall receive revenue or its 
equivalent in refined petroleum products that pro-
vides the Department with fair market value; 
‘‘(3) at no time may refined petroleum products 
be sold or exchanged resulting in a loss of revenue 
or value to the United States; and 
‘‘(4) the Secretary shall only sell or dispose of 
refined petroleum products in the Reserve to entities 
customarily engaged in the sale and distribution of 
such products. 
‘‘(c) PLAN.—Not later than 60 days after the date 
of the enactment of this section, the Secretary shall trans-
mit to the President and, if the President approves, to 
Congress a plan describing— 
‘‘(1) the acquisition of storage and related fa-
cilities or storage services for the Reserve, including 
the potential use of storage facilities not currently in 
use; 
‘‘(2) the acquisition of refined petroleum prod-
ucts for storage in the Reserve; 
‘‘(3) the anticipated methods of disposition of 
refined petroleum products from the Reserve; 
‘‘(4) the estimated costs of establishment, main-
tenance, and operation of the Reserve; 
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‘‘(5) efforts the Department will take to mini-
mize any potential need for future drawdowns and 
ensure that distributors and importers are not dis-
couraged from maintaining and increasing supplies 
to the Southeast; and 
‘‘(6) actions to ensure quality of the refined pe-
troleum products in the Reserve. 
‘‘SEC. 194. PRODUCTS FOR STORAGE IN THE RESERVE. 
‘‘(a) IN GENERAL.—The Secretary may acquire, 
place in storage, transport, or exchange refined petroleum 
products acquired by purchase or exchange. 
‘‘(b) OBJECTIVES.—The Secretary shall, to the great-
est extent practicable, acquire refined petroleum products 
for the Reserve in a manner consonant with the following 
objectives: 
‘‘(1) Minimization of the cost of the Reserve. 
‘‘(2) Minimization of the Nation’s vulnerability 
to a severe energy supply interruption. 
‘‘(3) Minimization of the impact of an acquisi-
tion of refined petroleum products on supply levels 
and market forces. 
‘‘(4) Encouragement of competition in the pe-
troleum industry. 
‘‘(b) PROCEDURES.—The Secretary shall develop, 
with public notice and opportunity for comment, proce-
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dures consistent with the objectives of this section to ac-
quire refined petroleum products for the Reserve. Such 
procedures shall take into account the need to— 
‘‘(1) maximize overall domestic supply of re-
fined petroleum products (including quantities stored 
in private sector inventories); 
‘‘(2) avoid incurring excessive cost or appre-
ciably affecting the price of petroleum products to 
consumers; 
‘‘(3) minimize the costs to the Department of 
Energy in acquiring such refined petroleum prod-
ucts; 
‘‘(4) protect national security; 
‘‘(5) avoid adversely affecting current and fu-
tures prices, supplies, and inventories of refined pe-
troleum products; and 
‘‘(6) address such other factors that the Sec-
retary determines to be appropriate. 
‘‘(c) SEVERE ENERGY SUPPLY DISRUPTION.—If the 
Secretary finds that a severe energy supply interruption 
may be imminent, the Secretary may suspend the acquisi-
tion of refined petroleum products for the Reserve and 
may sell any refined petroleum product acquired for, and 
in transit to, the Reserve.’’. 
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(b) TECHNICAL AND CONFORMING AMENDMENT.— 
The table of sections for title I of the Energy Policy and 
Conservation Act is amended by striking the items relating 
to the second part D, including section 181 of such part, 
and inserting the following: 
‘‘PART E—SOUTHEAST REFINED PRODUCT RESERVE 
‘‘Sec. 191. Definitions. 
‘‘Sec. 192. Establishment. 
‘‘Sec. 193. Conditions for release; plan. 
‘‘Sec. 194. Products for storage in the Reserve.’’. 
Subtitle D—Smart Communities 
Infrastructure 
SEC. 34001. 3C ENERGY PROGRAM. 
(a) ESTABLISHMENT.—The Secretary of Energy 
shall establish a program to be known as the Cities, Coun-
ties, and Communities Energy Program (or the 3C Energy 
Program) to provide technical assistance and competitively 
awarded grants to local governments, public housing au-
thorities, nonprofit organizations, and other entities the 
Secretary determines to be eligible, to incorporate clean 
energy into community development and revitalization ef-
forts. 
(b) BEST PRACTICE MODELS.—The Secretary of En-
ergy shall— 
(1) provide a recipient of technical assistance or 
a grant under the program established under sub-
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153 
section (a) with best practice models that are used 
in jurisdictions of similar size and situation; and 
(2) assist such recipient in developing and im-
plementing strategies to achieve its clean energy 
technology goals. 
(c) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to carry out this section 
$50,000,000 for each of fiscal years 2018 through 2022. 
SEC. 34002. FEDERAL TECHNOLOGY ASSISTANCE. 
(a) SMART CITY OR COMMUNITY ASSISTANCE PILOT 
PROGRAM.— 
(1) IN
GENERAL.—The Secretary of Energy 
shall develop and implement a pilot program under 
which the Secretary shall contract with the national 
laboratories to provide technical assistance to cities 
and communities, to improve the access of such cit-
ies and communities to expertise, competencies, and 
infrastructure of the national laboratories for the 
purpose of promoting smart city or community tech-
nologies. 
(2) PARTNERSHIPS.—In carrying out the pro-
gram under this subsection, the Secretary of Energy 
shall prioritize assistance for cities and communities 
that have partnered with small business concerns. 
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154 
(b) TECHNOLOGIST
IN RESIDENCE PILOT PRO-
GRAM.— 
(1) IN
GENERAL.—The Secretary of Energy 
shall expand the Technologist in Residence pilot pro-
gram of the Department of Energy to include part-
nerships between national laboratories and local gov-
ernments with respect to research and development 
relating to smart cities and communities. 
(2) REQUIREMENTS.—For purposes of the part-
nerships entered into under paragraph (1), tech-
nologists in residence shall work with an assigned 
unit of local government to develop an assessment of 
smart city or community technologies available and 
appropriate to meet the objectives of the city or 
community, in consultation with private sector enti-
ties implementing smart city or community tech-
nologies. 
(c) GUIDANCE.—The Secretary of Energy, in con-
sultation with the Secretary of Commerce, shall issue 
guidance with respect to— 
(1) the scope of the programs established and 
implemented under subsections (a) and (b); and 
(2) requests for proposals from local govern-
ments interested in participating in such programs. 
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155 
(d) CONSIDERATIONS.—In establishing and imple-
menting the programs under subsections (a) and (b), the 
Secretary of Energy shall seek to address the needs of 
small- and medium-sized cities. 
(e) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to carry out this section 
$20,000,000 for each of fiscal years 2018 through 2022. 
SEC. 34003. TECHNOLOGY DEMONSTRATION GRANT PRO-
GRAM. 
(a) IN GENERAL.—The Secretary of Commerce shall 
establish a smart city or community regional demonstra-
tion grant program under which the Secretary shall con-
duct demonstration projects focused on advanced smart 
city or community technologies and systems in a variety 
of communities, including small- and medium-sized cities. 
(b) GOALS.—The goals of the program established 
under subsection (a) are— 
(1) to demonstrate— 
(A) potential benefits of concentrated in-
vestments in smart city or community tech-
nologies relating to public safety that are re-
peatable and scalable; and 
(B) the efficiency, reliability, and resilience 
of civic infrastructure and services; 
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156 
(2) to facilitate the adoption of advanced smart 
city or community technologies and systems; and 
(3) to demonstrate protocols and standards that 
allow for the measurement and validation of the cost 
savings and performance improvements associated 
with the installation and use of smart city or com-
munity technologies and practices. 
(c) DEMONSTRATION PROJECTS.— 
(1) ELIGIBILITY.—Subject to paragraph (2), a 
unit of local government shall be eligible to receive 
a grant for a demonstration project under this sec-
tion. 
(2) COOPERATION.—To qualify for a dem-
onstration project under this section, a unit of local 
government shall agree to follow applicable best 
practices identified by the Secretary of Commerce 
and the Secretary of Energy, in consultation with in-
dustry entities, to evaluate the effectiveness of the 
implemented smart city or community technologies 
to ensure that— 
(A) technologies and interoperability can 
be assessed; 
(B) best practices can be shared; and 
(C) data can be shared in a public, inter-
operable, and transparent format. 
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163 
‘‘The President may transfer any duties under this 
subparagraph to the Administrator.’’. 
SEC. 40005. INDIRECT COSTS. 
Subparagraph (B) of section 104(k)(4) of the Com-
prehensive Environmental Response, Compensation, and 
Liability Act of 1980 (42 U.S.C. 9604(k)(4)) is amend-
ed— 
(1) in clause (i), by striking subclause (III) and 
redesignating subclauses (IV) and (V) as subclauses 
(III) and (IV), respectively; and 
(2) by striking clause (ii) and inserting the fol-
lowing: 
‘‘(ii) ACCEPTABLE USE OF FUNDS.— 
‘‘(I) IN
GENERAL.—In addition 
to other acceptable purposes described 
in this subsection, a grant or loan 
under this subsection may be used for 
payment for the costs of— 
‘‘(aa) investigation and iden-
tification of the extent of con-
tamination; 
‘‘(bb) design and perform-
ance of a response action; and 
‘‘(cc) monitoring of a nat-
ural resource. 
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