Affordable Solar Energy for Our Communities Act
Bill: H.R.3568 | Sponsor: Rep. Cárdenas, Tony (D-CA)
Policy area: Energy

Summary:
Affordable Solar Energy for Our Communities Act
This bill directs the Department of Energy to establish a program to provide financial assistance, such as grants or low-interest loans, to certain entities for the planning or installation of solar facilities that benefit certain low-income households.

To direct the Secretary of Energy to establish a program to provide 
   assistance for low-income solar projects, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Affordable Solar Energy for Our 
Communities Act''.

SEC. 2. GRANT PROGRAM FOR SOLAR INSTALLATIONS LOCATED IN, OR THAT 
              SERVE, LOW-INCOME AND UNDERSERVED AREAS.

    (a) Definitions.--In this section:
            (1) Beneficiary.--The term ``beneficiary'' means a low-
        income household or a low-income household in an underserved 
        area.
            (2) Community solar facility.--The term ``community solar 
        facility'' means a solar generating facility that--
                    (A) through a voluntary program, has multiple 
                subscribers that receive financial benefits that are 
                directly attributable to the facility;
                    (B) has a nameplate rating of 5 megawatts AC or 
                less; and
                    (C) is located in the utility distribution service 
                territory of subscribers.
            (3) Community solar subscription.--The term ``community 
        solar subscription'' means a share in the capacity, or a 
        proportional interest in the electricity generation, of a 
        community solar facility.
            (4) Covered facility.--The term ``covered facility'' 
        means--
                    (A) a community solar facility--
                            (i) that is located in an underserved area; 
                        or
                            (ii) at least 50 percent of the capacity of 
                        which is reserved for low-income households;
                    (B) a solar generating facility located at a 
                residence of a low-income household; or
                    (C) a solar generating facility located at a multi-
                family affordable housing complex.
            (5) Covered state.--The term ``covered State'' means a 
        State with processes in place to ensure that covered facilities 
        deliver financial benefits to low-income households.
            (6) Eligible entity.--The term ``eligible entity'' means--
                    (A) a nonprofit organization that provides services 
                to low-income households or multi-family affordable 
                housing complexes;
                    (B) a developer, owner, or operator of a community 
                solar facility that reserves a portion of the capacity 
                of the facility for subscribers who are members of low-
                income households or for low-income households that 
                otherwise financially benefit from the facility;
                    (C) a covered State, or political subdivision 
                thereof;
                    (D) an Indian Tribe or a tribally owned electric 
                utility;
                    (E) a Native Hawaiian community-based organization;
                    (F) any other national or regional entity that has 
                experience developing or installing solar generating 
                facilities for low-income households that maximize 
                financial benefits to those households; and
                    (G) an electric cooperative or municipal electric 
                utility (as such terms are defined in section 3 of the 
                Federal Power Act).
            (7) Eligible installation project.--The term ``eligible 
        installation project'' means a project to install a covered 
        facility in a covered State.
            (8) Eligible planning project.--The term ``eligible 
        planning project'' means a project to carry out pre-
        installation activities for the development of a covered 
        facility in a covered State.
            (9) Eligible project.--The term ``eligible project'' 
        means--
                    (A) an eligible planning project; or
                    (B) an eligible installation project.
            (10) Feasibility study.--The term ``feasibility study'' 
        means any activity to determine the feasibility of a specific 
        solar generating facility, including a customer interest 
        assessment and a siting assessment, as determined by the 
        Secretary.
            (11) Indian tribe.--The term ``Indian Tribe'' means any 
        Indian Tribe, band, nation, or other organized group or 
        community, including any Alaska Native village, Regional 
        Corporation, or Village Corporation (as defined in, or 
        established pursuant to, the Alaska Native Claims Settlement 
        Act (43 U.S.C. 1601 et seq.)), that is recognized as eligible 
        for the special programs and services provided by the United 
        States to Indians because of their status as Indians.
            (12) Interconnection service.--The term ``interconnection 
        service'' has the meaning given such term in section 111(d)(15) 
        of the Public Utility Regulatory Policies Act of 1978 (16 
        U.S.C. 2621(d)(15)).
            (13) Low-income household.--The term ``low-income 
        household'' means that income in relation to family size 
        which--
                    (A) is at or below 200 percent of the poverty level 
                determined in accordance with criteria established by 
                the Director of the Office of Management and Budget, 
                except that the Secretary may establish a higher level 
                if the Secretary determines that such a higher level is 
                necessary to carry out the purposes of this section;
                    (B) is the basis on which cash assistance payments 
                have been paid during the preceding 12-month period 
                under titles IV and XVI of the Social Security Act (42 
                U.S.C. 601 et seq., 1381 et seq.) or applicable State 
                or local law; or
                    (C) if a State elects, is the basis for eligibility 
                for assistance under the Low-Income Home Energy 
                Assistance Act of 1981 (42 U.S.C. 8621 et seq.), 
                provided that such basis is at least 200 percent of the 
                poverty level determined in accordance with criteria 
                established by the Director of the Office of Management 
                and Budget.
            (14) Multi-family affordable housing complex.--The term 
        ``multi-family affordable housing complex'' means any federally 
        subsidized affordable housing complex in which at least 50 
        percent of the units are reserved for low-income households.
            (15) Native hawaiian community-based organization.--The 
        term ``Native Hawaiian community-based organization'' means any 
        organization that is composed primarily of Native Hawaiians 
        from a specific community and that assists in the social, 
        cultural, and educational development of Native Hawaiians in 
        that community.
            (16) Program.--The term ``program'' means the program 
        established under subsection (b).
            (17) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.
            (18) Solar generating facility.--The term ``solar 
        generating facility'' means--
                    (A) a generator that creates electricity from light 
                photons; and
                    (B) the accompanying hardware enabling that 
                electricity to flow--
                            (i) onto the electric grid;
                            (ii) into a facility or structure; or
                            (iii) into an energy storage device.
            (19) State.--The term ``State'' means each of the 50 
        States, the District of Columbia, Guam, the Commonwealth of 
        Puerto Rico, the Northern Mariana Islands, the Virgin Islands, 
        and American Samoa.
            (20) Subscriber.--The term ``subscriber'' means a person 
        who--
                    (A) owns a community solar subscription, or an 
                equivalent unit or share of the capacity or generation 
                of a community solar facility; or
                    (B) financially benefits from a community solar 
                facility, even if the person does not own a community 
                solar subscription for the facility.
            (21) Underserved area.--The term ``underserved area'' 
        means--
                    (A) a geographical area with low or no photovoltaic 
                solar deployment, as determined by the Secretary;
                    (B) a geographical area that has low or no access 
                to electricity, as determined by the Secretary;
                    (C) a geographical area with an average annual 
                residential retail electricity price that exceeds the 
                national average annual residential retail electricity 
                price (as reported by the Energy Information Agency) by 
                50 percent or more; or
                    (D) trust land, as defined in section 3765 of title 
                38, United States Code.
    (b) Establishment.--The Secretary shall establish a program to 
provide financial assistance to eligible entities--
            (1) carry out planning projects that are necessary to 
        establish the feasibility, obtain required permits, identify 
        beneficiaries, or secure subscribers to install a covered 
        facility; or
            (2) install a covered facility for beneficiaries in 
        accordance with this section.
    (c) Applications.--
            (1) In general.--To be eligible to receive assistance under 
        the program, an eligible entity shall submit to the Secretary 
        an application at such time, in such manner, and containing 
        such information as the Secretary may require.
            (2) Inclusion for installation assistance.--
                    (A) Requirements.--For an eligible entity to 
                receive assistance for a project to install a covered 
                facility, the Secretary shall require the eligible 
                entity to include--
                            (i) information in the application that is 
                        sufficient to demonstrate that the eligible 
                        entity has obtained, or has the capacity to 
                        obtain, necessary permits, subscribers, access 
                        to an installation site, and any other items or 
                        agreements necessary to comply with an 
                        agreement under subsection (g)(1) and to 
                        complete the installation of the applicable 
                        covered facility;
                            (ii) a description of the mechanism through 
                        which financial benefits will be distributed to 
                        beneficiaries or subscribers; and
                            (iii) an estimate of the anticipated 
                        financial benefit for beneficiaries or 
                        subscribers.
                    (B) Consideration of planning projects.--The 
                Secretary shall consider the successful completion of 
                an eligible planning project pursuant to subsection 
                (b)(1) by the eligible entity to be sufficient to 
                demonstrate the ability of the eligible entity to meet 
                the requirements of subparagraph (A)(i).
    (d) Selection.--
            (1) In general.--In selecting eligible projects to receive 
        assistance under the program, the Secretary shall--
                    (A) prioritize--
                            (i) eligible installation projects that 
                        will result in the most financial benefit for 
                        subscribers, as determined by the Secretary;
                            (ii) eligible installation projects that 
                        will result in development of covered 
                        facilities in underserved areas; and
                            (iii) eligible projects that include 
                        apprenticeship, job training, or community 
                        participation as part of their application; and
                    (B) ensure that such assistance is provided in a 
                manner that results in eligible projects being carried 
                out on a geographically diverse basis within and among 
                covered States.
            (2) Determination of financial benefit.--In determining the 
        amount of financial benefit for low-income households of an 
        eligible installation project, the Secretary shall ensure that 
        all calculations for estimated household energy savings are 
        based solely on electricity offsets from the applicable covered 
        facility and use formulas established by the State or local 
        government with jurisdiction over the applicable covered 
        facility for verifiable household energy savings estimates that 
        accrue to low-income households.
    (e) Assistance.--
            (1) Form.--The Secretary may provide assistance under the 
        program in the form of a grant (which may be in the form of a 
        rebate) or a low-interest loan.
            (2) Multiple projects for same facility.--
                    (A) In general.--An eligible entity may apply for 
                assistance under the program for an eligible planning 
                project and an eligible installation project for the 
                same covered facility.
                    (B) Separate selections.--Selection by the 
                Secretary for assistance under the program of an 
                eligible planning project does not require the 
                Secretary to select for assistance under the program an 
                eligible installation project for the same covered 
                facility.
    (f) Use of Assistance.--
            (1) Eligible planning projects.--An eligible entity 
        receiving assistance for an eligible planning project under the 
        program may use such assistance to pay the costs of pre-
        installation activities associated with an applicable covered 
        facility, including--
                    (A) feasibility studies;
                    (B) permitting;
                    (C) site assessment;
                    (D) on-site job training, or other community-based 
                activities directly associated with the eligible 
                planning project; or
                    (E) such other costs determined by the Secretary to 
                be appropriate.
            (2) Eligible installation projects.--An eligible entity 
        receiving assistance for an eligible installation project under 
        the program may use such assistance to pay the costs of--
                    (A) installation of a covered facility, including 
                costs associated with materials, permitting, labor, or 
                site preparation;
                    (B) storage technology sited at a covered facility;
                    (C) interconnection service expenses;
                    (D) on-site job training, or other community-based 
                activities directly associated with the eligible 
                installation project;
                    (E) offsetting the cost of a subscription for a 
                covered facility described in subparagraph (A) of 
                subsection (a)(4) for subscribers that are members of a 
                low-income household; or
                    (F) such other costs determined by the Secretary to 
                be appropriate.
    (g) Administration.--
            (1) Agreements.--
                    (A) In general.--As a condition of receiving 
                assistance under the program, an eligible entity shall 
                enter into an agreement with the Secretary.
                    (B) Requirements.--An agreement entered into under 
                this paragraph--
                            (i) shall require the eligible entity to 
                        maintain such records and adopt such 
                        administrative practices as the Secretary may 
                        require to ensure compliance with the 
                        requirements of this section and the agreement;
                            (ii) with respect to an eligible 
                        installation project shall require that any 
                        solar generating facility installed using 
                        assistance provided pursuant to the agreement 
                        comply with local building and safety codes and 
                        standards; and
                            (iii) shall contain such other terms as the 
                        Secretary may require to ensure compliance with 
                        the requirements of this section.
                    (C) Term.--An agreement under this paragraph shall 
                be for a term that begins on the date on which the 
                agreement is entered into and ends on the date that is 
                2 years after the date on which the eligible entity 
                receives assistance pursuant to the agreement, which 
                term may be extended once for a period of not more than 
                1 year if the eligible entity demonstrates to the 
                satisfaction of the Secretary that such an extension is 
                necessary to complete the activities required by the 
                agreement.
            (2) Use of funds.--Of the funds made available to provide 
        assistance to eligible installation projects under this section 
        over the period of fiscal years 2022 through 2026, the 
        Secretary shall use--
                    (A) not less than 50 percent to provide assistance 
                for eligible installation projects with respect to 
                which low-income households make up at least 50 percent 
                of the subscribers to the project; and
                    (B) not more than 50 percent to provide assistance 
                for eligible installation projects with respect to 
                which low-income households make up at least 25 percent 
                of the subscribers to the project.
            (3) Regulations.--Not later than 120 days after the date of 
        enactment of this Act, the Secretary shall publish in the 
        Federal Register regulations to carry out this section, which 
        shall take effect on the date of publication.
    (h) Authorization of Appropriations.--
            (1) In general.--There is authorized to be appropriated to 
        the Secretary to carry out this section $200,000,000 for each 
        of fiscal years 2022 through 2026, to remain available until 
        expended.
            (2) Amounts for planning projects.--Of the amounts 
        appropriated pursuant to this section over the period of fiscal 
        years 2022 through 2026, the Secretary shall use not more than 
        15 percent of funds to provide assistance to eligible planning 
        projects.
    (i) Relationship to Other Assistance.--The Secretary shall, to the 
extent practicable, encourage eligible entities that receive assistance 
under this section to leverage such funds by seeking additional funding 
through federally or locally subsidized weatherization and energy 
efficiency programs.
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