A bill to amend the miscellaneous rural development provisions of the Farm Security and Rural Investment Act of 2002 to authorize the Secretary of Agriculture to make loans to certain entities that will use the funds to make loans to consumers to implement energy efficiency measures involving structural improvements and investments in cost-effective, commercial off-the-shelf technologies to reduce home energy use.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Rural Energy Savings Program Act''.

SEC. 2. RURAL ENERGY SAVINGS PROGRAM.

    Title VI of the Farm Security and Rural Investment Act of 2002 (7 
U.S.C. 7901 note et seq.) is amended by adding the following new 
section:

``SEC. 6407. RURAL ENERGY SAVINGS PROGRAM.

    ``(a) Purpose.--The purpose of this section is to create and save 
jobs by providing loans to qualified consumers that will use the loan 
proceeds to implement energy efficiency measures to achieve significant 
reductions in energy costs, energy consumption, or carbon emissions.
    ``(b) Definitions.--In this section:
            ``(1) Eligible entity.--The term `eligible entity' means--
                    ``(A) any public power district, public utility 
                district, or similar entity, or any electric 
                cooperative described in sections 501(c)(12) or 
                1381(a)(2)(C) of the Internal Revenue Code of 1986, 
                that borrowed and repaid, prepaid, or is paying an 
                electric loan made or guaranteed by the Rural Utilities 
                Service (or any predecessor agency); or
                    ``(B) any entity primarily owned or controlled by 
                an entity or entities described in subparagraph (A).
            ``(2) Energy efficiency measures.--The term `energy 
        efficiency measures' means, for or at property served by an 
        eligible entity, structural improvements and investments in 
        cost-effective, commercial off-the-shelf technologies to reduce 
        home energy use.
            ``(3) Qualified consumer.--The term `qualified consumer' 
        means a consumer served by an eligible entity that has the 
        ability to repay a loan made under subsection (d), as 
        determined by an eligible entity.
            ``(4) Qualified entity.--The term `qualified entity' means 
        a non-governmental, not-for-profit organization that the 
        Secretary determines has significant experience, on a national 
        basis, in providing eligible entities with--
                    ``(A) energy, environmental, energy efficiency, and 
                information research and technology;
                    ``(B) training, education, and consulting;
                    ``(C) guidance in energy and operational issues and 
                rural community and economic development;
                    ``(D) advice in legal and regulatory matters 
                affecting electric service and the environment; and
                    ``(E) other relevant assistance.
            ``(5) Secretary.--The term `Secretary' means the Secretary 
        of Agriculture, acting through the Rural Utilities Service.
    ``(c) Loans and Grants to Eligible Entities.--
            ``(1) Loans authorized.--Subject to paragraph (2), the 
        Secretary shall make loans to eligible entities that agree to 
        use the loan funds to make loans to qualified consumers as 
        described in subsection (d) for the purpose of implementing 
        energy efficiency measures.
            ``(2) List, plan, and measurement and verification 
        required.--
                    ``(A) In general.--As a condition to receiving a 
                loan or grant under this subsection, an eligible entity 
                shall--
                            ``(i) establish a list of energy efficiency 
                        measures that is expected to decrease energy 
                        use or costs of qualified consumers;
                            ``(ii) prepare an implementation plan for 
                        use of the loan funds; and
                            ``(iii) provide for appropriate measurement 
                        and verification to ensure the effectiveness of 
                        the energy efficiency loans made by the 
                        eligible entity and that there is no conflict 
                        of interest in the carrying out of this 
                        section.
                    ``(B) Revision of list of energy efficiency 
                measures.--An eligible entity may update the list 
                required under subparagraph (A)(i) to account for newly 
                available efficiency technologies, subject to the 
                approval of the Secretary.
                    ``(C) Existing energy efficiency programs.--An 
                eligible entity that, on or before the date of the 
                enactment of this section or within 60 days after such 
                date, has already established an energy efficiency 
                program for qualified consumers may use an existing 
                list of energy efficiency measures, implementation 
                plan, or measurement and verification system of that 
                program to satisfy the requirements of subparagraph (A) 
                if the Secretary determines the list, plans, or systems 
                are consistent with the purposes of this section.
            ``(3) No interest.--A loan under this subsection shall bear 
        no interest.
            ``(4) Repayment.--A loan under this subsection shall be 
        repaid not more than 10 years from the date on which an advance 
        on the loan is first made to the eligible entity.
            ``(5) Loan fund advances.--The Secretary shall provide 
        eligible entities with a schedule of not more than ten years 
        for advances of loan funds, except that any advance of loan 
        funds to an eligible entity in any single year shall not exceed 
        50 percent of the approved loan amount.
            ``(6) Jump-start grants.--The Secretary shall make grants 
        available to eligible entities selected to receive a loan under 
        this subsection in order to assist an eligible entity to defray 
        costs, including costs of contractors for equipment and labor, 
        except that no eligible entity may receive a grant amount that 
        is greater than four percent of the loan amount.
    ``(d) Loans to Qualified Consumers.--
            ``(1) Terms of loans.--Loans made by an eligible entity to 
        qualified consumers using loan funds provided by the Secretary 
        under subsection (c)--
                    ``(A) may bear interest, not to exceed three 
                percent, to be used for purposes that include 
                establishing a loan loss reserve and to offset 
                personnel and program costs of eligible entities to 
                provide the loans;
                    ``(B) shall finance energy efficiency measures for 
                the purpose of decreasing energy usage or costs of the 
                qualified consumer by an amount such that a loan term 
                of not more than ten years will not pose an undue 
                financial burden on the qualified consumer, as 
                determined by the eligible entity;
                    ``(C) shall not be used to fund energy efficiency 
                measures made to personal property unless the personal 
                property--
                            ``(i) is or becomes attached to real 
                        property as a fixture; or
                            ``(ii) is a manufactured home;
                    ``(D) shall be repaid through charges added to the 
                electric bill of the qualified consumer; and
                    ``(E) shall require an energy audit by an eligible 
                entity to determine the impact of proposed energy 
                efficiency measures on the energy costs and consumption 
                of the qualified consumer.
            ``(2) Contractors.--In addition to any other qualified 
        general contractor, eligible entities may serve as general 
        contractors.
    ``(e) Contract for Measurement and Verification, Training, and 
Technical Assistance.--
            ``(1) Contract required.--Not later than 60 days after the 
        date of enactment of this section, the Secretary shall enter 
        into one or more contracts with a qualified entity for the 
        purposes of--
                    ``(A) providing measurement and verification 
                activities, including--
                            ``(i) developing and completing a 
                        recommended protocol for measurement and 
                        verification for the Rural Utilities Service;
                            ``(ii) establishing a national measurement 
                        and verification committee consisting of 
                        representatives of eligible entities to assist 
                        the contractor in carrying out this section;
                            ``(iii) providing measurement and 
                        verification consulting services to eligible 
                        entities that receive loans under this section; 
                        and
                            ``(iv) providing training in measurement 
                        and verification; and
                    ``(B) developing a program to provide technical 
                assistance and training to the employees of eligible 
                entities to carry out this section.
            ``(2) Use of subcontractors authorized.--A qualified entity 
        that enters into a contract under paragraph (1) may use 
        subcontractors to assist the qualified entity in performing the 
        contract.
    ``(f) Fast Start Demonstration Projects.--
            ``(1) Demonstration projects required.--The Secretary shall 
        enter into agreements with eligible entities (or groups of 
        eligible entities) that have energy efficiency programs 
        described in subsection (c)(2)(C) to establish an energy 
        efficiency loan demonstration projects consistent with the 
        purposes of this section that--
                    ``(A) implement approaches to energy audits and 
                investments in energy efficiency measures that yield 
                measurable and predictable savings;
                    ``(B) use measurement and verification processes to 
                determine the effectiveness of energy efficiency loans 
                made by eligible entities;
                    ``(C) include training for employees of eligible 
                entities, including any contractors of such entities, 
                to implement or oversee the activities described in 
                subparagraphs (A) and (B);
                    ``(D) provide for the participation of a majority 
                of eligible entities in a State;
                    ``(E) reduce the need for generating capacity;
                    ``(F) provide efficiency loans to--
                            ``(i) not fewer than 20,000 consumers, in 
                        the case of a single eligible entity; or
                            ``(ii) not fewer than 80,000 consumers, in 
                        the case of a group of eligible entities; and
                    ``(G) serve areas where a large percentage of 
                consumers reside--
                            ``(i) in manufactured homes; or
                            ``(ii) in housing units that are more than 
                        50 years old.
            ``(2) Deadline for implementation.--The agreements required 
        by paragraph (1) shall be entered into not later than 90 days 
        after the date of enactment of this section.
            ``(3) Effect on availability of loans nationally.--Nothing 
        in this subsection shall delay the availability of loans to 
        eligible entities on a national basis beginning not later than 
        180 days after the date of enactment of this section.
            ``(4) Additional demonstration project authority.--The 
        Secretary may conduct demonstration projects in addition to the 
        project required by paragraph (1). The additional demonstration 
        projects may be carried out without regard to subparagraphs 
        (D), (F), or (G) of paragraph (1).
    ``(g) Additional Authority.--The authority provided in this section 
is in addition to any authority of the Secretary to offer loans or 
grants under any other law.
    ``(h) Authorization of Appropriations.--
            ``(1) In general.--There is authorized to be appropriated 
        to the Secretary in fiscal year 2010 $993,000,000 to carry out 
        this section. Notwithstanding paragraph (2), amounts 
        appropriated pursuant to this authorization of appropriations 
        shall remain available until expended.
            ``(2) Amounts for loans, grants, staffing.--Of the amounts 
        appropriated pursuant to the authorization of appropriations in 
        paragraph (1), the Secretary shall make available--
                    ``(A) $755,000,000 for the purpose of covering the 
                cost of direct loans to eligible entities under 
                subsection (c) to subsidize gross obligations in the 
                principal amount of not to exceed $4,900,000,000;
                    ``(B) $25,000,000 for measurement and verification 
                activities under subsection (e)(1)(A);
                    ``(C) $2,000,000 for the contract for training and 
                technical assistance authorized by subsection 
                (e)(1)(B);
                    ``(D) $200,000,000 for jump-start grants authorized 
                by subsection (c)(6); and
                    ``(E) $1,100,000 for each of fiscal years 2010 
                through 2019 for ten additional employees of the Rural 
                Utilities Service to carry out this section.
    ``(i) Effective Period.--Subject to subsection (h)(1) and except as 
otherwise provided in this section, the loans, grants, and other 
expenditures required to be made under this section are authorized to 
be made during each of fiscal years 2010 through 2014.
    ``(j) Regulations.--
            ``(1) In general.--Except as otherwise provided in this 
        subsection, not later than 180 days after the date of enactment 
        of this section, the Secretary shall promulgate such 
        regulations as are necessary to implement this section.
            ``(2) Procedure.--The promulgation of the regulations and 
        administration of this section shall be made without regard 
        to--
                    ``(A) chapter 35 of title 44, United States Code 
                (commonly known as the `Paperwork Reduction Act'); and
                    ``(B) the Statement of Policy of the Secretary of 
                Agriculture effective July 24, 1971 (36 Fed. Reg. 
                13804), relating to notices of proposed rulemaking and 
                public participation in rulemaking.
            ``(3) Congressional review of agency rulemaking.--In 
        carrying out this section, the Secretary shall use the 
        authority provided under section 808 of title 5, United States 
        Code.
            ``(4) Interim regulations.--Notwithstanding paragraphs (1) 
        and (2), to the extent regulations are necessary to carry out 
        any provision of this section, the Secretary shall implement 
        such regulations through the promulgation of an interim 
        rule.''.

Summary: Rural Energy Savings Program Act - Amends the Farm Security and Rural Investment Act of 2002 to authorize the Secretary of Agriculture (through the Rural Utilities Service) to make interest-free loans to eligible entities for loans to qualified consumers to implement energy efficiency measures. Directs the Secretary to make grants to such entities to defray related costs, including costs for equipment and labor.

Directs the Secretary to contact with a qualified entity to provide: (1) verification and measurement activities for the Rural Utilities Service, including training; and (2) technical assistance and training for employees of eligible entities.

Directs the Secretary to enter into agreements with eligible entities, or groups of eligible entities, that have specified energy efficiency programs for energy efficiency loan demonstration projects.