To establish the National Home Energy Savings Revolving Fund within the Department of Energy to provide amounts to units of general local government to make loans to homeowners for qualified home energy audits and certified energy savings improvements, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``National Home Energy Savings 
Revolving Fund Act''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Home energy audit.--The term ``home energy audit'' 
        means any process that identifies and specifies the energy and 
        cost savings that are likely to be realized through the 
        implementation, acquisition, and installation of energy savings 
        improvements to a residential property.
            (2) Qualified home energy audit.--The term ``qualified home 
        energy audit'' means an energy audit that complies with the 
        procedures and techniques under section 5(a)(2).
            (3) Renewable energy measure.--The term ``renewable energy 
        measure'' means the appropriate installation and use of solar, 
        wind, geothermal, fuel cell, biomass, battery storage, and 
        other applicable renewable technologies, as determined by the 
        Secretary.
            (4) Certified energy savings improvement.--The term 
        ``certified energy savings improvement'' means an energy 
        efficiency improvement or renewable energy measure that meets 
        the requirements under section 5(a)(3).
            (5) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.
            (6) Revolving fund.--The term ``Revolving Fund'' means the 
        National Home Energy Savings Revolving Fund established under 
        section 3(a).
            (7) Unit of general local government.--The term ``unit of 
        general local government'' means any general purpose political 
        subdivision of a State that has the power to levy taxes and 
        spend funds, as well as general corporate and police powers.

SEC. 3. NATIONAL HOME ENERGY SAVINGS REVOLVING FUND.

    (a) Establishment.--There is established within the Department of 
Energy a revolving fund, to be known as the ``National Home Energy 
Savings Revolving Fund''.
    (b) Expenditures.--Any amounts in the Revolving Fund may be used 
without fiscal year limitation to provide funds to units of general 
local government in accordance with section 4 for use in making loans 
to homeowners pursuant to section 5(a).
    (c) Credits.--
            (1) Capitalization authorization.--There are authorized to 
        be appropriated to the Revolving Fund $5,000,000,000 for each 
        of fiscal years 2010 and 2011.
            (2) Repayment amounts.--The Revolving Fund shall be 
        credited with amounts received by the Secretary from a unit of 
        general local government equal to loan repayment amounts due to 
        be repaid by homeowners to whom loans are made pursuant to 
        section 5(a).

SEC. 4. FUNDING TO UNITS OF GENERAL LOCAL GOVERNMENT.

    (a) Application.--To be eligible to receive funds under this Act, a 
unit of general local government shall submit to the Secretary an 
application at such time, in such manner, and containing such 
information as the Secretary may require, which information shall 
include a description of the method required by section 5(c) for making 
payments due under the loan.
    (b) Amounts.--
            (1) Allocation.--Subject to the limitation under paragraph 
        (2), the Secretary, in each fiscal year, shall provide for the 
        allocation of amounts available in the Revolving Fund to units 
        of general local government eligible to receive such amounts 
        based on need among such units of general local government for 
        amounts for loans to homeowners pursuant to section 5(a).
            (2) Limitation.--In any fiscal year, the aggregate amount 
        provided from the Revolving Fund to a single unit of general 
        local government may not exceed 2 percent of the total amount 
        available in the Revolving Fund for such fiscal year.
    (c) Repayment.--
            (1) Homeowner.--A unit of general local government that 
        receives funds under this Act shall require full repayment of 
        each loan made to a homeowner pursuant to section 5(a).
            (2) Unit of general local government.--Not later than 120 
        days after the deadline imposed by a unit of general local 
        government for repayment by homeowners of loans made pursuant 
        to section 5(a) in the manner provided by section 5(c), such 
        unit of general local government shall transfer to the 
        Secretary amounts due to be repaid, notwithstanding any default 
        on the part of the homeowner.

SEC. 5. LOANS TO HOMEOWNERS FOR QUALIFIED HOME ENERGY AUDITS AND 
              CERTIFIED ENERGY SAVINGS IMPROVEMENTS.

    (a) Loans to Homeowners.--
            (1) In general.--A unit of general local government that 
        receives funds under this Act shall use such funds only to 
        provide loans to homeowners for the costs of one or more of the 
        following:
                    (A) Conducting a qualified home energy audit (or a 
                qualified home energy audit previously conducted).
                    (B) The implementation of any certified energy 
                savings improvement.
                    (C) The acquisition of any certified energy savings 
                improvement.
                    (D) The installation of any certified energy 
                savings improvement.
            (2) Home energy audit procedures and techniques.--The 
        Secretary shall establish procedures and techniques for home 
        energy audits that--
                    (A) meet standards established by the Secretary 
                after consultation with the State Energy Advisory Board 
                established under section 365(g) of the Energy and 
                Policy Conservation Act (42 U.S.C. 6325(g));
                    (B) establish priorities for selection of energy 
                savings improvements based on their cost-effectiveness, 
                payback period, and contribution to energy savings;
                    (C) measure the energy requirement of individual 
                dwellings and the rate of return of the total energy 
                savings investment in a dwelling; and
                    (D) account for interaction among energy savings 
                measures.
            (3) Certified energy savings improvements.--Loan funds may 
        be used by homeowners under this section for the 
        implementation, acquisition, or installation of an energy 
        efficiency improvement or renewable energy measure only if such 
        improvement or measure--
                    (A) has been determined, by means of a qualified 
                home energy audit, to improve the efficiency of energy 
                use and to reduce energy costs (as calculated on the 
                basis of energy costs projected over time); and
                    (B) such determination is set forth in a written 
                report regarding such audit--
                            (i) listing energy savings improvements in 
                        order of cost-effectiveness, payback period, 
                        and contribution to energy savings; and
                            (ii) prepared and signed by the person 
                        conducting such audit.
    (b) Eligible Homeowners.--To be eligible to receive a loan from a 
unit of general local government under this section, a homeowner shall 
submit to such unit of general local government an application at such 
time, in such manner, and containing such information as such unit of 
general local government may require.
    (c) Payment in Connection With Property Tax Payment.--A unit of 
general local government that receives funds under this Act shall 
establish a method by which a homeowner to whom a loan is made pursuant 
to section 5(a) may make payments due under such loan in connection 
with any payments submitted for any property tax assessed or collected 
by such unit of general local government.
    (d) Repayment Terms.--A unit of general local government that 
receives funds under this Act shall establish terms for repayment of 
loans made pursuant to section 5(a) that comply with subsection (e) and 
meet the following goals in the following order of priority:
            (1) The terms shall provide that, on an annual basis, the 
        aggregate amount of payments due on a loan shall be less than 
        the aggregate amount of savings achieved by implementation, 
        acquisition, or installation of certified energy savings 
        improvements financed under the loan.
            (2) The terms shall provide that homeowners shall make 
        repayments of such loans in such amounts as are necessary to 
        minimize costs to the Revolving Fund established under section 
        3(a) and that any such repayments shall be transferred to the 
        Secretary and credited to such Fund.
    (e) Loan Maturity and Interest.--A loan under this section shall 
have a term to maturity of not more than 15 years and shall not bear 
interest.
    (f) Loan Amount Limitations.--The total amount of all loans made 
pursuant to section 5(a) from a unit of general local government to a 
single homeowner may not exceed $10,000, except that a unit of general 
local government, in its discretion, may establish a loan amount 
limitation in a lesser amount.
    (g) Principal Residence Requirement.--A unit of general local 
government may make a loan under this section only if such loan will be 
used for eligible purposes under subsection (a) with respect to the 
principal residence of the homeowner who is the borrower.
    (h) Information Requirement.--A unit of general local government 
that receives funds under this Act, in accordance with such standards 
as the Secretary shall establish, shall make available to homeowners 
information about loans available pursuant to section 5(a) including--
            (1) a description of the eligible purposes for which a loan 
        may be used;
            (2) a list of home energy auditors in the area that are 
        certified to perform qualified home energy audits; and
            (3) repayment procedures and terms established in 
        accordance with subsection (d), including repayment procedures 
        and terms if a loan is provided only for the costs of 
        conducting a qualified home energy audit.

SEC. 6. REPORTS TO THE SECRETARY.

    For each year any loan made by a unit of general local government 
pursuant to section 5(a) is outstanding, such unit of general local 
government shall submit to the Secretary a report describing the use of 
funds from the Revolving Fund, identifying the number of loans provided 
under this Act, the repayment rate of the loans, the default rate of 
the loans, and any other information the Secretary determines to be 
appropriate.

Summary: National Home Energy Savings Revolving Fund Act - Establishes within the Department of Energy (DOE) the National Home Energy Savings Revolving Fund to provide funds to local governments for use in making loans to homeowners for the costs of conducting a qualified home energy audit and implementing, acquiring, and installing certified energy savings improvements.

Requires the Secretary of Energy to establish procedures and techniques for home energy audits that: (1) establish priorities for selection of energy savings improvements based on their cost-effectiveness, payback period, and contribution to energy savings; (2) measure the energy requirement of individual dwellings and the rate of return of the total energy savings investment in a dwelling; and (3) account for interaction among energy savings measures.

Sets forth requirements concerning loan eligibility and repayment. Limits the total loan amount to a single homeowner to $10,000.