To establish a revolving loan fund to provide loans to States and Indian tribes to provide incentives to undertake activities to provide renewable energy sources for housing and other structures.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Energy Conservation Opportunity Fund 
Act of 2008'' or the ``ECO Fund Act of 2008''.

SEC. 2. REVOLVING FUND FOR LOANS TO STATES AND INDIAN TRIBES TO CARRY 
              OUT RENEWABLE ENERGY SOURCES ACTIVITIES.

    (a) Establishment of Fund.--There is established in the Treasury of 
the United States a revolving fund, to be known as the ``Alternative 
Energy Sources State Revolving Fund''.
    (b) Credits.--The Fund shall be credited with--
            (1) any amounts appropriated to the Fund pursuant to 
        subsection (g);
            (2) any amounts of principal and interest from loan 
        repayments received by the Secretary pursuant to subsection 
        (d)(7); and
            (3) any interest earned on investments of amounts in the 
        Fund pursuant to subsection (e).
    (c) Expenditures.--
            (1) In general.--Subject to paragraph (2), on request by 
        the Secretary of Housing and Urban Development, the Secretary 
        of the Treasury shall transfer from the Fund to the Secretary 
        such amounts as the Secretary determines are necessary to 
        provide loans under subsection (d)(1).
            (2) Administrative expenses.--Of the amounts in the Fund, 
        not more than 5 percent shall be available for each fiscal year 
        to pay the administrative expenses of the Department of Housing 
        and Urban Development to carry out this section.
    (d) Loans to States and Indian Tribes.--
            (1) In general.--The Secretary shall use amounts in the 
        Fund to provide loans to States and Indian tribes to provide 
        incentives to owners of single-family and multifamily housing, 
        commercial properties, and public buildings to provide--
                    (A) renewable energy sources for such structures, 
                such as wind, wave, solar, biomass, or geothermal 
                energy sources, including incentives to companies and 
                business to change their source of energy to such 
                renewable energy sources and for changing the sources 
                of energy for public buildings to such renewable energy 
                sources;
                    (B) energy efficiency and energy conserving 
                improvements and features for such structures; or
                    (C) infrastructure related to the delivery of 
                electricity and hot water for structures lacking such 
                amenities.
            (2) Eligibility.--To be eligible to receive a loan under 
        this subsection, a State or Indian tribe, through an 
        appropriate State or tribal agency, shall submit to the 
        Secretary an application at such time, in such manner, and 
        containing such information as the Secretary may require.
            (3) Criteria for approval.--The Secretary may approve an 
        application of a State or Indian tribe under paragraph (2) only 
        if the Secretary determines that the State or tribe will use 
        the funds from the loan under this subsection to carry out a 
        program to provide incentives described in paragraph (1) that--
                    (A) requires that any such renewable energy 
                sources, and energy efficiency and energy conserving 
                improvements and features, developed pursuant to 
                assistance under the program result in compliance of 
                the structure so improved with the energy efficiency 
                requirements under section 2(a) of the; and
                    (B) includes such compliance and audit requirements 
                as the Secretary determines are necessary to ensure 
                that the program is operated in a sound and effective 
                manner.
            (4) Preference.--In making loans during each fiscal year, 
        the Secretary shall give preference to States and Indian tribes 
        that have not previously received a loan under this subsection.
            (5) Maximum amount.--The aggregate outstanding principal 
        amount from loans under this subsection to any single State or 
        Indian tribe may not exceed $500,000,000.
            (6) Loan terms.--Each loan under this subsection shall have 
        a term to maturity of not more than 10 years and shall bear 
        interest at annual rate, determined by the Secretary, that 
        shall not exceed interest rate charged by the Federal Reserve 
        Bank of New York to commercial banks and other depository 
        institutions for very short-term loans under the primary credit 
        program, as most recently published in the Federal Reserve 
        Statistical Release on selected interest rates (daily or 
        weekly), and commonly referred to as the H.15 release, 
        preceding the date of a determination for purposes of applying 
        this paragraph.
            (7) Loan repayment.--The Secretary shall require full 
        repayment of each loan made under this section.
    (e) Investment of Amounts.--
            (1) In general.--The Secretary of the Treasury shall invest 
        such amounts in the Fund that are not, in the judgment of the 
        Secretary of the Treasury, required to meet needs for current 
        withdrawals.
            (2) Obligations of united states.--Investments may be made 
        only in interest-bearing obligations of the United States.
    (f) Reports.--
            (1) Reports to secretary.--For each year during the term of 
        a loan made under subsection (d), the State or Indian tribe 
        that received the loan shall submit to the Secretary a report 
        describing the State or tribal alternative energy sources 
        program for which the loan was made and the activities 
        conducted under the program using the loan funds during that 
        year.
            (2) Report to congress.--Not later than September 30 of 
        each year that loans made under subsection (d) are outstanding, 
        the Secretary shall submit a report to the Congress describing 
        the total amount of such loans provided under subsection (d) to 
        each eligible State and Indian tribe during the fiscal year 
        ending on such date, and an evaluation on effectiveness of the 
        Fund.
    (g) Authorization of Appropriations.--There is authorized to be 
appropriated to the Fund $5,000,000,000.
    (h) Definitions.--For purposes of this section, the following 
definitions shall apply:
            (1) Indian tribe.--The term ``Indian tribe'' has the 
        meaning given such term in section 4 of the Native American 
        Housing Assistance and Self-Determination Act of 1996 (25 
        U.S.C. 4103).
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of Housing and Urban Development.
            (3) State.--The term ``State'' means each of the several 
        States, the Commonwealth of Puerto Rico, the District of 
        Columbia, the Commonwealth of the Northern Mariana Islands, 
        Guam, the Virgin Islands, American Samoa, the Trust Territories 
        of the Pacific, or any other possession of the United States.

Summary: Energy Conservation Opportunity Fund Act of 2008 or the ECO Fund Act of 2008 - Establishes in the Treasury an Alternative Energy Sources State Revolving Fund.

Directs the Secretary of Housing and Urban Development to use amounts in the Fund to provide loans to states and Indian tribes to provide incentives to owners of single family and multifamily housing, commercial properties, and public buildings to provide: (1) renewable energy sources, such as wind, wave, solar, biomass, or geothermal energy, for such structures; (2) energy efficiency and energy conserving improvements and features for such structures; or (3) infrastructure related to the delivery of electricity and hot water for structures lacking such amenities.