‘‘(2) SPECIAL RULE FOR COUNTIES.—In deter-
mining the population of any county for purposes of 
this section, any population of such county which is 
taken into account in determining the population of 
any municipality which is a large local government 
shall not be taken into account in determining the 
population of such county. 
‘‘(g) APPLICATION
TO INDIAN TRIBAL GOVERN-
MENTS.—An Indian tribal government shall be treated for 
purposes of this section in the same manner as a large 
local government, except that— 
‘‘(1) an Indian tribal government shall be treat-
ed for purposes of subsection (d) as located within 
a State to the extent of so much of the population 
of such government as resides within such State, 
and 
‘‘(2) any bond issued by an Indian tribal gov-
ernment shall be treated as a qualified energy con-
servation bond only if issued as part of an issue the 
available project proceeds of which are used for pur-
poses for which such Indian tribal government could 
issue bonds to which section 103(a) applies.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Paragraph (1) of section 54A(d), as added 
by section 104, is amended to read as follows: 
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‘‘(1) QUALIFIED TAX CREDIT BOND.—The term 
‘qualified tax credit bond’ means— 
‘‘(A) a new clean renewable energy bond, 
or 
‘‘(B) a qualified energy conservation bond, 
which is part of an issue that meets requirements of 
paragraphs (2), (3), (4), and (5).’’. 
(2) Subparagraph (C) of section 54A(d)(2), as 
added by section 104, is amended to read as follows: 
‘‘(C) QUALIFIED PURPOSE.—For purposes 
of this paragraph, the term ‘qualified purpose’ 
means— 
‘‘(i) in the case of a new clean renew-
able energy bond, a purpose specified in 
section 54B(a)(1), and 
‘‘(ii) in the case of a qualified energy 
conservation bond, a purpose specified in 
section 54C(a)(1).’’. 
(3) The table of sections for subpart I of part 
IV of subchapter A of chapter 1 is amended by add-
ing at the end the following new item: 
‘‘Sec. 54C. Qualified energy conservation bonds.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to obligations issued after the date 
of the enactment of this Act. 
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SEC. 212. QUALIFIED RESIDENTIAL ENERGY EFFICIENCY 
ASSISTANCE BONDS. 
(a) IN GENERAL.—Subpart I of part IV of sub-
chapter A of chapter 1 (as amended by this Act) is amend-
ed by adding at the end the following new section: 
‘‘SEC. 54D. QUALIFIED RESIDENTIAL ENERGY EFFICIENCY 
ASSISTANCE BONDS. 
‘‘(a) QUALIFIED RESIDENTIAL ENERGY EFFICIENCY 
ASSISTANCE BOND.—For purposes of this subchapter, the 
term ‘qualified residential energy efficiency assistance 
bond’ means any bond issued as part of an issue if— 
‘‘(1) 100 percent of the available project pro-
ceeds of such issue are to be used for 1 or more 
qualified residential energy efficiency assistance pur-
poses, 
‘‘(2) not less than 20 percent of the available 
project proceeds of such issue are to be used for 1 
or more qualified low-income residential energy effi-
ciency assistance purposes, 
‘‘(3) repayments of principal and applicable in-
terest on financing provided by the issue are used 
not later than the close of the 3-month period begin-
ning on the date the prepayment (or complete repay-
ment) is received to redeem bonds which are part of 
the issue or to provide for 1 or more qualified resi-
dential energy efficiency assistance purposes, 
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‘‘(4) the bond is issued by a State, and 
‘‘(5) the issuer designates such bond for pur-
poses of this section. 
‘‘(b) LIMITATION
ON AMOUNT
OF BONDS DES-
IGNATED.—The maximum aggregate face amount of 
bonds which may be designated under subsection (a) by 
any issuer shall not exceed the limitation amount allocated 
under subsection (d) to such issuer. 
‘‘(c) NATIONAL LIMITATION ON AMOUNT OF BONDS 
DESIGNATED.—There is a national qualified energy con-
servation bond limitation of $2,400,000,000. 
‘‘(d) LIMITATION ALLOCATED AMONG STATES.—The 
limitation under subsection (c) shall be allocated by the 
Secretary among the States in proportion to the popu-
lation of the States. 
‘‘(e) QUALIFIED RESIDENTIAL ENERGY EFFICIENCY 
ASSISTANCE PURPOSE.—For purposes of this section— 
‘‘(1) IN GENERAL.—The term ‘qualified resi-
dential energy efficiency assistance purpose’ means 
any grant or low-interest loan to acquire (including 
reasonable installation costs)— 
‘‘(A) any property which meets (at a min-
imum) the requirements of the Energy Star 
program and which is to be installed in a dwell-
ing unit, 
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‘‘(B) any property which uses wind, solar, 
or geothermal energy or qualified fuel cell prop-
erty (as defined in section 48(c)(1)) to generate 
electricity, or to heat or cool water, for use in 
a dwelling unit (other than property described 
in section 25D(e)(3)), and 
‘‘(C) any improvements to a dwelling unit 
which are made pursuant to a plan certified by 
an energy efficiency expert that such improve-
ment will yield at least a 20 percent reduction 
in total household energy consumption related 
to heating, cooling, lighting, and appliances. 
‘‘(2) DOLLAR LIMITATIONS.— 
‘‘(A) IN GENERAL.—Such term shall not 
include any grant or loan for improvements de-
scribed in paragraph (1)(C) with respect to any 
dwelling unit to the extent that such grant or 
loan (when added to all other grants or loans 
for such improvements) exceeds $5,000. 
‘‘(B) INCREASED
LIMITATION
FOR
CER-
TAIN PRINCIPAL RESIDENCES.—In the case of a 
dwelling unit which is used as a principal resi-
dence (within the meaning of section 121) by 
the recipient of the grant or loan referred to in 
subparagraph (A)— 
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‘‘(i) subparagraph (A) shall be applied 
by substituting ‘$12,000’ for ‘$5,000’ if 
such grant or loan would satisfy the re-
quirements of paragraph (1)(A) if such 
paragraph were applied by substituting ‘50 
percent’ for ‘20 percent’, and 
‘‘(ii) in any case to which clause (i) 
does not apply, subparagraph (A) shall be 
applied 
by 
substituting 
‘$8,000’ 
for 
‘$5,000’ if such grant or loan would satisfy 
the requirements of paragraph (1)(A) if 
such paragraph were applied by sub-
stituting ‘35 percent’ for ‘20 percent’. 
‘‘(3) LOW-INTEREST LOAN.—The term ‘low in-
terest loan’ means any loan which charges interest 
at a rate which does not exceed the applicable Fed-
eral rate in effect under section 1288(b)(1) deter-
mined as of the issuance of the loan. 
‘‘(f) QUALIFIED LOW-INCOME RESIDENTIAL EFFI-
CIENCY ASSISTANCE PURPOSE.—For purposes of this sec-
tion— 
‘‘(1) IN GENERAL.—The term ‘qualified low-in-
come residential energy efficiency assistance pur-
pose’ means any qualified residential energy effi-
ciency assistance purpose with respect to a dwelling 
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