Weatherization Enhancement, and Local Energy Efficiency Investment and Accountability Act

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Weatherization 
Enhancement, and Local Energy Efficiency Investment and Accountability 
Act''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings.
               TITLE I--WEATHERIZATION ASSISTANCE PROGRAM

Sec. 101. Reauthorization of weatherization assistance program.
Sec. 102. Grants to eligible multistate housing and energy nonprofit 
                            organizations.
Sec. 103. Quality assurance program.
                    TITLE II--STATE ENERGY PROGRAMS

Sec. 201. Reauthorization of State energy programs.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) the State energy program established under part D of 
        title III of the Energy Policy and Conservation Act (42 U.S.C. 
        6321 et seq.) (referred to in this section as ``SEP'') and the 
        Weatherization Assistance Program for Low-Income Persons 
        established under part A of title IV of the Energy Conservation 
        and Production Act (42 U.S.C. 6861 et seq.) (referred to in 
        this section as ``WAP'') have proven to be beneficial, long-
        term partnerships among Federal, State, and local partners;
            (2) the SEP and the WAP have been reauthorized on a 
        bipartisan basis over many years to address changing national, 
        regional, and State circumstances and needs, especially 
        through--
                    (A) the Energy Policy and Conservation Act (42 
                U.S.C. 6201 et seq.);
                    (B) the Energy Conservation and Production Act (42 
                U.S.C. 6801 et seq.);
                    (C) the State Energy Efficiency Programs 
                Improvement Act of 1990 (Public Law 101-440; 104 Stat. 
                1006);
                    (D) the Energy Policy Act of 1992 (42 U.S.C. 13201 
                et seq.);
                    (E) the Energy Policy Act of 2005 (42 U.S.C. 15801 
                et seq.); and
                    (F) the Energy Independence and Security Act of 
                2007 (42 U.S.C. 17001 et seq.);
            (3) the SEP, also known as the ``State energy conservation 
        program''--
                    (A) was first created in 1975 to implement a State-
                based, national program in support of energy 
                efficiency, renewable energy, economic development, 
                energy emergency preparedness, and energy policy; and
                    (B) has come to operate in every sector of the 
                economy in support of the private sector to improve 
                productivity and has dramatically reduced the cost of 
                government through energy savings at the State and 
                local levels;
            (4) Federal laboratory studies have concluded that, for 
        every Federal dollar invested through the SEP, more than $7 is 
        saved in energy costs and almost $11 in non-Federal funds is 
        leveraged;
            (5) the WAP--
                    (A) was first created in 1976 to assist low-income 
                families in response to the first oil embargo;
                    (B) has become the largest residential energy 
                conservation program in the United States, with more 
                than 7,100,000 homes weatherized since the WAP was 
                created;
                    (C) saves an estimated 35 percent of consumption in 
                the typical weatherized home, yielding average annual 
                savings of $437 per year in home energy costs;
                    (D) has created thousands of jobs in both the 
                construction sector and in the supply chain of 
                materials suppliers, vendors, and manufacturers who 
                supply the WAP;
                    (E) returns $2.51 in energy savings for every 
                Federal dollar spent in energy and nonenergy benefits 
                over the life of weatherized homes;
                    (F) serves as a foundation for residential energy 
                efficiency retrofit standards, technical skills, and 
                workforce training for the emerging broader market and 
                reduces residential and power plant emissions of carbon 
                dioxide by 2.65 metric tons each year per home; and
                    (G) has decreased national energy consumption by 
                the equivalent of 24,100,000 barrels of oil annually;
            (6) the WAP can be enhanced with the addition of a targeted 
        portion of Federal funds through an innovative program that 
        supports projects performed by qualified nonprofit 
        organizations that have a demonstrated capacity to build, 
        renovate, repair, or improve the energy efficiency of a 
        significant number of low-income homes;
            (7) the WAP has increased energy efficiency opportunities 
        by promoting new, competitive public-private sector models of 
        retrofitting low-income homes through new Federal partnerships;
            (8) improved monitoring and reporting of the work product 
        of the WAP has yielded benefits, and expanding independent 
        verification of efficiency work will support the long-term 
        goals of the WAP;
            (9) reports of the Government Accountability Office in 
        2011, Inspector General of the Department of Energy, and State 
        auditors have identified State-level deficiencies in monitoring 
        efforts that can be addressed in a manner that will ensure that 
        WAP funds are used more effectively;
            (10) through the history of the WAP, the WAP has evolved 
        with improvements in efficiency technology, including, in the 
        1990s, many States adopting advanced home energy audits, which 
        has led to great returns on investment; and
            (11) as the home energy efficiency industry has become more 
        performance-based, the WAP should continue to use those 
        advances in technology and the professional workforce.

               TITLE I--WEATHERIZATION ASSISTANCE PROGRAM

SEC. 101. REAUTHORIZATION OF WEATHERIZATION ASSISTANCE PROGRAM.

    Section 422 of the Energy Conservation and Production Act (42 
U.S.C. 6872) is amended by striking ``appropriated--'' and all that 
follows through the period at the end and inserting ``appropriated 
$450,000,000 for each of fiscal years 2015 through 2019.''.

SEC. 102. GRANTS TO ELIGIBLE HOUSING AND NONPROFIT ORGANIZATIONS.

    The Energy Conservation and Production Act is amended by inserting 
after section 414B (42 U.S.C. 6864b) the following:

``SEC. 414C. GRANTS TO ELIGIBLE HOUSING AND NONPROFIT ORGANIZATIONS.

    ``(a) Purposes.--The purposes of this section are--
            ``(1) to expand the number of low-income, single-family and 
        multifamily homes that receive energy efficiency retrofits;
            ``(2) to promote innovation and new models of retrofitting 
        low-income homes through new Federal partnerships with covered 
        organizations that leverage donations, donated materials, 
        volunteer labor, homeowner labor equity, and other private 
        sector resources;
            ``(3) to assist the covered organizations in demonstrating, 
        evaluating, improving, and replicating widely the model low-
        income energy retrofit programs of the covered organizations; 
        and
            ``(4) to ensure that the covered organizations make the 
        energy retrofit projects undertaken by the covered 
        organizations with awarded funds self-sustaining by the time 
        grant funds have been expended.
    ``(b) Definition.--In this section, the term `covered organization' 
means an organization that--
            ``(1) is described in section 501(c)(3) of the Internal 
        Revenue Code of 1986 and exempt from taxation under 501(a) of 
        that Code; and
            ``(2) has an established record of constructing, 
        renovating, repairing, or making energy efficient an aggregate 
        quantity of not less than 250 owner-occupied, single-family or 
        multifamily homes for low-income households, either directly or 
        through affiliates, chapters, or other direct partners (using 
        the most recent year for which data are available).
    ``(c) In General.--The Secretary shall make grants to covered 
organizations through a national competitive process for use in 
accordance with this section.
    ``(d) Award Factors.--In making grants under this section, the 
Secretary shall consider--
            ``(1) the number of low-income homes the applicant--
                    ``(A) has built, renovated, repaired, or made more 
                energy efficient as of the date of the application; and
                    ``(B) can reasonably be projected to build, 
                renovate, repair, or make energy efficient during the 
                grant period beginning on the date of the application;
            ``(2) the qualifications, experience, and past performance 
        of the applicant, including experience successfully managing 
        and administering Federal funds;
            ``(3) the number and diversity of States, communities, and 
        climates in which the applicant works and the diversity of 
        housing types requiring weatherization as of the date of the 
        application;
            ``(4) the amount of non-Federal funds, donated or 
        discounted materials, discounted or volunteer skilled labor, 
        volunteer unskilled labor, homeowner labor equity, and other 
        resources the applicant will provide;
            ``(5) the extent to which the applicant could successfully 
        replicate the proposed energy retrofit project and sustain the 
        project after the grant funds have been expended; and
            ``(6) such other factors as the Secretary determines to be 
        appropriate.
    ``(e) Applications.--
            ``(1) In general.--Not later than 120 days after the date 
        of enactment of this section, the Secretary shall solicit 
        proposals from covered organizations.
            ``(2) Administration.--To be eligible to receive a grant 
        under this section, an applicant shall submit to the Secretary 
        an application at such time, in such manner, and containing 
        such information as the Secretary may require.
            ``(3) Awards.--Not later than 90 days after the closing 
        date established by the Secretary for receipt of proposals, the 
        Secretary shall award grants under this section.
    ``(f) Eligible Uses of Grant Funds.--A grant under this section may 
be used to--
            ``(1) conduct energy efficiency audits;
            ``(2) perform cost-effective retrofit and related 
        weatherization activities, including purchase of energy 
        efficient materials and supplies;
            ``(3) conduct training activities and provide ongoing 
        technical assistance;
            ``(4) provide information to homeowners on proper 
        maintenance and energy savings behaviors;
            ``(5) conduct data collection, measurement, and 
        verification activities to facilitate program monitoring, 
        oversight, evaluation, and reporting;
            ``(6) manage and administer the grant (up to a maximum of 
        10 percent of the total grant); and
            ``(7) obtain and conduct such other materials and 
        activities as the Secretary determines to be appropriate.
    ``(g) Maximum Amount.--The amount of a grant provided under this 
section shall not exceed $5,000,000.
    ``(h) Guidelines.--
            ``(1) In general.--Not later than 60 days after the date of 
        enactment of this section, the Secretary shall issue guidelines 
        to implement the grant program established under this section.
            ``(2) Administration.--The guidelines shall establish--
                    ``(A) criteria for allowable expenditures;
                    ``(B) a methodology to determine a minimum energy 
                savings-to-investment ratio;
                    ``(C) criteria for--
                            ``(i) the conduct of weatherization 
                        training programs;
                            ``(ii) the conduct of energy audits and 
                        program activities;
                            ``(iii) the conduct of project monitoring 
                        activities; and
                            ``(iv) the use of methodologies to verify 
                        energy and cost savings;
                    ``(D) liability insurance requirements; and
                    ``(E) recordkeeping requirements, which shall 
                include reporting to the Office of Weatherization and 
                Intergovernmental Programs of the Department of Energy 
                applicable data on each home retrofitted.
    ``(i) Review and Evaluation.--The Secretary shall review and 
evaluate the performance of any covered organization that receives a 
grant under this section (which may include an audit), as determined by 
the Secretary.
    ``(j) Compliance With State and Local Law.--Nothing in this section 
or any program carried out using a grant provided under this section 
supersedes or otherwise affects any State or local law, to the extent 
that the State or local law contains a requirement that is more 
stringent than the applicable requirement of this section.
    ``(k) Annual Reports.--The Secretary shall submit to Congress 
annual reports that provide a description of energy and cost savings 
achieved and actions taken under this section.
    ``(l) Funding.--Of the funds made available to carry out this part 
for each of fiscal years 2015 through 2019 under section 422, the 
Secretary shall make available to carry out this section--
            ``(1) 2 percent of the amount if less than $225,000,000 is 
        available;
            ``(2) 5 percent of the amount if $225,000,000 or more but 
        less than $260,000,000 is available;
            ``(3) 10 percent of the amount if $260,000,000 or more but 
        less than $400,000,000 is available; and
            ``(4) 20 percent of the amount if $400,000,000 or more is 
        available.''.

SEC. 103. QUALITY ASSURANCE PROGRAM.

    Section 415 of the Energy Conservation and Production Act (42 
U.S.C. 6865) is amended by adding at the end the following:
    ``(f) Quality Assurance Program.--
            ``(1) Contractor qualification.--Effective beginning 
        January 1, 2015, to be eligible to carry out weatherization 
        using funds made available under this part, a contractor shall 
        be selected through a competitive bidding process and be--
                    ``(A) accredited by the Building Performance 
                Institute;
                    ``(B) an Energy Smart Home Performance Team 
                accredited under the Residential Energy Services 
                Network; or
                    ``(C) accredited by an equivalent accreditation or 
                program accreditation-based State certification program 
                approved by the Secretary.
            ``(2) Grants to nonprofit organizations.--
                    ``(A) In general.--To be eligible to receive a 
                grant under section 414C, a covered organization (as 
                defined in section 414C(b)) shall use a crew chief 
                who--
                            ``(i) is certified or accredited in 
                        accordance with paragraph (1); and
                            ``(ii) supervises the work performed with 
                        grant funds.
                    ``(B) Volunteer labor.--A volunteer who performs 
                work for a covered organization that receives a grant 
                under section 414C shall not be required to be 
                certified under this subsection if the volunteer is not 
                directly installing or repairing mechanical equipment 
                or other items that require skilled labor.
            ``(3) Minimum efficiency standards.--Effective beginning 
        October 1, 2015, the Secretary shall ensure that--
                    ``(A) each retrofit for which weatherization 
                assistance is provided under this part meets minimum 
                efficiency and quality of work standards established by 
                the Secretary after weatherization of a dwelling unit;
                    ``(B) at least 10 percent of such dwelling units 
                are randomly inspected by a third party accredited as 
                described in paragraph (1) (A) through (C) to ensure 
                compliance with the minimum efficiency and quality of 
                work standards established under subparagraph (A); and
                    ``(C) the standards established under this 
                subsection meet or exceed the industry standards for 
                home performance work that are in effect on the date of 
                enactment of this subsection, as determined by the 
                Secretary.''.

                    TITLE II--STATE ENERGY PROGRAMS

SEC. 201. REAUTHORIZATION OF STATE ENERGY PROGRAMS.

    Section 365(f) of the Energy Policy and Conservation Act (42 U.S.C. 
6325(f)) is amended by striking ``$125,000,000 for each of fiscal years 
2007 through 2012'' and inserting ``$75,000,000 for each of fiscal 
years 2015 through 2019''.

Summary: Weatherization Enhancement, and Local Energy Efficiency Investment and Accountability Act - Amends the Energy Conservation and Production Act to extend the Weatherization Assistance Program for low-income persons through FY2019. Requires the Secretary of Energy (DOE) to make competitive grants to qualified tax-exempt charitable organizations for energy efficiency retrofit uses that include:  energy efficiency audits, cost-effective retrofit, and related weatherization activities;  energy efficiency materials and supplies;  training and technical assistance;  information to homeowners on proper maintenance and energy savings behaviors;  data collection, measurement, and verification activities to facilitate program monitoring, oversight, evaluation, and reporting; and  management and administration.  Requires contractors carrying out weatherization with funds under the Act to be selected through a competitive bidding process and be accredited as specified by this Act. Requires organizations, in order to receive a grant, to use a crew chief who is certified or accredited as required by this Act. Requires the Secretary, beginning on October 1, 2015, to ensure that: (1) each retrofit for which weatherization assistance is provided meets minimum efficiency and quality of work standards established by the Secretary, (2) at least 10% of the dwelling units are randomly inspected by an accredited third party to ensure compliance with the standards, and (3) the standards meet or exceed the current industry standards for home performance work. Amends the Energy Policy and Conservation Act to extend the program for state energy conservation plans through FY2019.