Community Energy Savings Program Act of 2021
Bill: S.1632 | Sponsor: Sen. Merkley, Jeff (D-OR)
Policy area: Energy

Summary:
Community Energy Savings Program Act of 2021
This bill directs the Department of Energy to establish a grant program for states and Indian tribes to provide loans to consumers and communities that want to implement cost-effective energy efficiency measures.

To amend the Energy Policy and Conservation Act to establish a program 
    to provide loans to implement cost-effective energy efficiency 
                   measures, 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 ``Community Energy Savings Program Act 
of 2021''.

SEC. 2. COMMUNITY ENERGY SAVINGS PROGRAM.

    (a) In General.--The Energy Policy and Conservation Act is amended 
by inserting after section 362 (42 U.S.C. 6322) the following:

``SEC. 362A. COMMUNITY ENERGY SAVINGS PROGRAM.

    ``(a) Purpose.--The purpose of this section is to help households 
and small businesses achieve cost savings by providing loans to 
implement cost-effective energy efficiency measures.
    ``(b) Definitions.--In this section:
            ``(1) Community development financial institution.--The 
        term `community development financial institution' means a 
        financial institution certified by the Community Development 
        Financial Institutions Fund administered by the Secretary of 
        the Treasury.
            ``(2) Eligible entity.--The term `eligible entity' means--
                    ``(A) a public power group;
                    ``(B) a community development financial 
                institution; and
                    ``(C) an eligible unit of local government.
            ``(3) Eligible unit of local government.--The term 
        `eligible unit of local government' means any agency or 
        political subdivision of a State.
            ``(4) Energy efficiency measures.--The term `energy 
        efficiency measures' means, with respect to a property served 
        by or in the service area or jurisdiction, as applicable, of an 
        eligible entity, structural improvements and investments in 
        cost-effective commercial technologies to increase energy 
        efficiency (including cost-effective on- or off-grid renewable 
        energy, energy storage, or demand response systems).
            ``(5) Household with a high energy burden.--
                    ``(A) In general.--The term `household with a high 
                energy burden' means a low-income household the 
                residential energy burden of which exceeds the median 
                energy burden for all low-income households in the 
                State in which the low-income household is located.
                    ``(B) Calculation.--The residential energy burden 
                referred to in subparagraph (A) is the quotient 
                obtained by dividing residential energy expenditures by 
                the annual income of the low-income household.
            ``(6) Indian tribe.--The term `Indian tribe' has the 
        meaning given the term in section 4 of the Indian Self-
        Determination and Education Assistance Act (25 U.S.C. 5304).
            ``(7) Manufactured home.--The term `manufactured home'--
                    ``(A) has the meaning given the term in section 603 
                of the National Manufactured Housing Construction and 
                Safety Standards Act of 1974 (42 U.S.C. 5402); and
                    ``(B) includes a home described in subparagraph (A) 
                without regard to whether the home was built before, 
                on, or after the date on which the construction and 
                safety standards established under section 604 of that 
                Act (42 U.S.C. 5403) became effective.
            ``(8) Program.--The term `program' means the program 
        established under subsection (c).
            ``(9) Public power group.--The term `public power group' 
        means--
                    ``(A) a public utility;
                    ``(B) an electric or energy cooperative;
                    ``(C) a public power district; and
                    ``(D) a group of 1 or more public utilities or 
                electric or energy cooperatives (commonly referred to 
                as a `joint action agency', `generation and 
                transmission cooperative', `municipal power 
                association', or `State cooperative association').
            ``(10) Qualified consumer.--The term `qualified consumer' 
        means a consumer served by or in the service area or 
        jurisdiction, as applicable, of an eligible entity that has the 
        ability to repay a loan made under subsection (f), as 
        determined by the eligible entity.
            ``(11) Secretary.--The term `Secretary' means the Secretary 
        of Energy.
            ``(12) State.--The term `State' means--
                    ``(A) a State;
                    ``(B) the District of Columbia;
                    ``(C) the Commonwealth of Puerto Rico; and
                    ``(D) any other territory or possession of the 
                United States.
    ``(c) Establishment.--Not later than 120 days after the date of 
enactment of this section, the Secretary shall establish a program 
under which the Secretary shall provide grants to States and Indian 
tribes to provide loans to eligible entities in accordance with this 
section.
    ``(d) Grant Fund Allocation.--
            ``(1) In general.--Of the amount appropriated under 
        subsection (k) for each fiscal year, the Secretary shall 
        allocate as grant funds--
                    ``(A) 98 percent to be provided to States in 
                accordance with paragraph (2); and
                    ``(B) 2 percent to be provided to Indian tribes in 
                accordance with paragraph (3).
            ``(2) Allocation to states.--Of the amount allocated for 
        all States under paragraph (1)(A), the Secretary shall--
                    ``(A) allocate not less than 1 percent to each 
                State described in subparagraphs (A) through (C) of 
                subsection (b)(12);
                    ``(B) allocate not less than 0.5 percent to each 
                State described in subparagraph (D) of that subsection; 
                and
                    ``(C) of the amount remaining after the allocations 
                under subparagraphs (A) and (B), allocate funds to 
                States based on the population of each State as 
                determined in the latest available decennial census 
                conducted under section 141(a) of title 13, United 
                States Code.
            ``(3) Allocation to indian tribes.--Of the amount allocated 
        for Indian tribes under paragraph (1)(B), the Secretary shall 
        allocate funds to each Indian tribe participating in the 
        program during that fiscal year based on a formula established 
        by the Secretary that takes into account any factor that the 
        Secretary determines to be appropriate.
            ``(4) Publication of allocation formulas.--Not later than 
        90 days before the beginning of each fiscal year for which 
        grants are provided to States and Indian tribes under this 
        section, the Secretary shall publish in the Federal Register 
        the formulas for allocation established under this subsection.
            ``(5) Administrative costs.--Of the amount allocated to a 
        State or Indian tribe under this subsection, not more than 15 
        percent shall be used by the State or Indian tribe for the 
        administrative costs of administering loans.
    ``(e) Loans by States and Indian Tribes to Eligible Entities.--
            ``(1) In general.--Under the program, a State or Indian 
        tribe shall make loans to eligible entities to make loans to 
        qualified consumers--
                    ``(A) to implement cost-effective energy efficiency 
                measures; and
                    ``(B) in accordance with subsection (f).
            ``(2) State energy offices.--A State shall carry out 
        paragraph (1) through the State energy office that is 
        responsible for developing a State energy conservation plan 
        under section 362.
            ``(3) Priority.--In making loans under paragraph (1), a 
        State or Indian tribe shall give priority to public power 
        groups.
            ``(4) Requirements.--
                    ``(A) In general.--Subject to subparagraph (C), as 
                a condition of receiving a loan under this subsection, 
                an eligible entity shall--
                            ``(i) establish a list of energy efficiency 
                        measures that are expected to decrease the 
                        energy use or costs of qualified consumers;
                            ``(ii) prepare an implementation plan for 
                        use of the loan funds, including the use of any 
                        interest to be received under subsection 
                        (f)(4);
                            ``(iii) establish an appropriate 
                        measurement and verification system to ensure--
                                    ``(I) the effectiveness of the 
                                energy efficiency loans made by the 
                                eligible entity; and
                                    ``(II) that there is no conflict of 
                                interest in any loan provided by the 
                                eligible entity;
                            ``(iv) demonstrate expertise in the 
                        effective implementation of energy efficiency 
                        measures;
                            ``(v) ensure that a portion of the loan 
                        funds, which may be determined by the State or 
                        Indian tribe, are used to provide loans to 
                        qualified consumers that are households with a 
                        high energy burden; and
                            ``(vi) give priority to providing loans to 
                        qualified consumers that own homes or other 
                        real property that pose health risks to the 
                        occupants of the property that may be mitigated 
                        by energy efficiency measures, as determined by 
                        the State or Indian tribe.
                    ``(B) Revision of list of energy efficiency 
                measures.--Subject to the approval of the State or 
                Indian tribe, as applicable, an eligible entity may 
                update the list required under subparagraph (A)(i) to 
                account for newly available efficiency technologies.
                    ``(C) Existing energy efficiency programs.--An 
                eligible entity that has established an energy 
                efficiency program for qualified consumers before the 
                date of enactment of this section may use an existing 
                list of energy efficiency measures, implementation 
                plan, and measurement and verification system for that 
                program to satisfy the applicable requirements under 
                subparagraph (A), if the State or Indian tribe, as 
                applicable, determines that the list, plan, or system, 
                as applicable, is consistent with the purposes of this 
                section.
            ``(5) No interest.--A loan under this subsection shall bear 
        no interest.
            ``(6) Term.--The term of a loan provided to an eligible 
        entity under paragraph (1) shall not exceed 20 years after the 
        date on which the loan is issued.
            ``(7) Advance.--
                    ``(A) In general.--In providing a loan to an 
                eligible entity under paragraph (1), a State or Indian 
                tribe may provide an advance of loan funds on request 
                of the eligible entity.
                    ``(B) Amount limitation.--Any advance provided to 
                an eligible entity under subparagraph (A) in any single 
                year shall not exceed 50 percent of the approved loan 
                amount.
                    ``(C) Repayment.--The repayment of an advance under 
                subparagraph (A) shall be amortized for a period of not 
                more than 10 years.
            ``(8) Special advance for start-up activities.--
                    ``(A) In general.--In providing a loan to an 
                eligible entity under paragraph (1), a State or Indian 
                tribe may provide a special advance on request of the 
                eligible entity for assistance in defraying the start-
                up costs of the eligible entity, as determined by the 
                State or Indian tribe, as applicable, of providing 
                loans to qualified consumers under subsection (f).
                    ``(B) Limitation.--A special advance shall be 
                provided to an eligible entity under subparagraph (A) 
                only during the 10-year period beginning on the date on 
                which the loan is issued to that eligible entity.
                    ``(C) Amount.--The amount of a special advance 
                provided under subparagraph (A) shall not be greater 
                than 5 percent of the approved loan amount.
                    ``(D) Repayment.--Repayment of a special advance 
                provided under subparagraph (A)--
                            ``(i) shall be required during the 10-year 
                        period beginning on the date on which the 
                        special advance is made; and
                            ``(ii) may be deferred to the end of the 
                        10-year period described in clause (i) at the 
                        election of the eligible entity.
            ``(9) Revolving loan fund.--
                    ``(A) In general.--As a condition of participating 
                in the program, a State or Indian tribe shall use the 
                funds repaid to the State or Indian tribe under loans 
                offered under this subsection to issue new loans under 
                this subsection.
                    ``(B) Administrative costs.--Not more than 10 
                percent of the repaid funds described in subparagraph 
                (A) may be used for the administrative cost of issuing 
                new loans from those repaid funds under this 
                subsection.
    ``(f) Loans by Eligible Entities to Qualified Consumers.--
            ``(1) Use of loan.--
                    ``(A) In general.--A loan made by an eligible 
                entity to a qualified consumer using loan funds 
                provided by a State or Indian tribe under subsection 
                (e)--
                            ``(i) shall be used to finance energy 
                        efficiency measures for the purpose of 
                        decreasing the energy use or costs of the 
                        qualified consumer by an amount that ensures, 
                        to the maximum extent practicable, that the 
                        applicable loan term described in subparagraph 
                        (B) shall not be an undue financial burden on 
                        the qualified consumer, as determined by the 
                        eligible entity;
                            ``(ii) shall not be used to fund purchases 
                        of, or modifications to, personal property 
                        unless the personal property is or becomes 
                        attached to real property as a fixture;
                            ``(iii) may be used to upgrade a 
                        manufactured home, regardless of the 
                        classification of the home as real or personal 
                        property; and
                            ``(iv) may be used to finance the 
                        replacement of a manufactured home--
                                    ``(I) if the cost of upgrading the 
                                manufactured home is excessive, as 
                                determined by the eligible entity; and
                                    ``(II) with priority given to a 
                                manufactured home that was constructed 
                                before June 15, 1976.
                    ``(B) Loan term described.--The loan term referred 
                to in subparagraph (A)(i) is--
                            ``(i) in the case of a manufactured home 
                        replacement, not more than 20 years; and
                            ``(ii) in the case of any other energy 
                        efficiency measure, not more than 15 years.
            ``(2) Repayment.--
                    ``(A) In general.--Subject to subparagraph (B), a 
                loan described in paragraph (1)(A) shall be repaid by 
                the qualified consumer through charges added to an 
                existing or new electric or recurring service bill for 
                the property of the qualified consumer for, or at 
                which, energy efficiency measures are being 
                implemented.
                    ``(B) Alternative repayment.--Repayment under 
                subparagraph (A) shall not preclude--
                            ``(i) the voluntary prepayment of the loan 
                        by the qualified consumer; or
                            ``(ii) the use of any additional repayment 
                        mechanism, including a tariffed on-bill 
                        mechanism, that--
                                    ``(I) has appropriate risk 
                                mitigation features, as determined by 
                                the eligible entity; or
                                    ``(II) is required due to the 
                                qualified consumer no longer being a 
                                customer of the eligible entity.
            ``(3) Energy assessment.--
                    ``(A) In general.--Prior to the installation of 
                energy efficiency measures at the property of a 
                qualified consumer that receives a loan from an 
                eligible entity under this section, and to assist in 
                the selection of the energy efficiency measures to be 
                installed, the eligible entity shall conduct an energy 
                assessment or audit to determine the impact of proposed 
                energy efficiency measures on--
                            ``(i) the energy costs and consumption of 
                        the qualified consumer; and
                            ``(ii) the health and safety of the 
                        occupants of the property on which the energy 
                        efficiency measures are to be installed.
                    ``(B) Field or online assessment.--An energy 
                assessment or audit under subparagraph (A) may be 
                conducted in the field or online, as determined by the 
                State or Indian tribe that has issued a loan to the 
                eligible entity under subsection (e).
            ``(4) Interest.--A loan described in paragraph (1)(A) may 
        bear interest, not to exceed 5 percent, which may be used--
                    ``(A) to establish a loan loss reserve for the 
                eligible entity;
                    ``(B) to offset the personnel and program costs of 
                the eligible entity in providing the loan; and
                    ``(C) for any other related purpose, as determined 
                by the eligible entity, in consultation with the State 
                or Indian tribe that has issued a loan to the eligible 
                entity under subsection (e).
            ``(5) Outside contracts.--An eligible entity may enter into 
        1 or more contracts with 1 or more qualified entities, as 
        determined by the State or Indian tribe that has issued a loan 
        to the eligible entity under subsection (e)--
                    ``(A) to assist the eligible entity in 
                administering the loans described in paragraph (1)(A); 
                and
                    ``(B) to carry out any of the requirements of the 
                eligible entity described in subsection (e)(4)(A).
    ``(g) Direct Loans From States and Indian Tribes.--A State or 
Indian tribe may act as an eligible entity under subsection (f) to 
provide loans directly to qualified consumers--
            ``(1) in accordance with that subsection; and
            ``(2) if the State or Indian tribe satisfies the 
        requirements under subsection (e)(4), as determined by the 
        Secretary.
    ``(h) Program Administration.--
            ``(1) Plan.--Not later than 120 days after the date of 
        enactment of this section, the Secretary shall establish and 
        begin carrying out a plan--
                    ``(A) to measure and verify the success of the 
                program in implementing energy efficiency measures;
                    ``(B) provide training to the employees of eligible 
                entities relating to carrying out the requirements of 
                eligible entities under this section; and
                    ``(C) provide technical assistance to States, 
                Indian tribes, and eligible entities relating to 
                carrying out the requirements of this section.
            ``(2) Public awareness.--Not later than 120 days after the 
        date of enactment of this section, the Secretary shall 
        establish and begin carrying out a plan to make eligible 
        entities and the general public aware of the program, including 
        by developing a marketing program to raise awareness of the 
        program.
            ``(3) Outside contracts.--
                    ``(A) In general.--The Secretary may enter into 1 
                or more contracts with 1 or more qualified entities, as 
                determined by the Secretary, to carry out paragraphs 
                (1) and (2).
                    ``(B) Use of subcontractors authorized.--A 
                qualified entity that enters into a contract with the 
                Secretary under subparagraph (A) may use 1 or more 
                subcontractors to assist the qualified entity in 
                carrying out the contract.
            ``(4) Accounting.--The Secretary, and each State and Indian 
        tribe participating in the program, shall take appropriate 
        steps to streamline the accounting requirements for eligible 
        entities under the program while maintaining adequate 
        assurances of the repayment of the loans made to those eligible 
        entities under the program.
    ``(i) Effect on Authority.--Nothing in this section shall impede, 
impair, or modify the authority of the Secretary to offer loans or 
grants under any other law.
    ``(j) Report.--
            ``(1) In general.--Not later than 15 months after the date 
        on which the program is established, and 90 days after the end 
        of each fiscal year for each fiscal year thereafter, the 
        Secretary shall submit to the appropriate committees of 
        Congress and make publicly available a report that describes, 
        with respect to the program--
                    ``(A) the number of applications received by each 
                State and Indian tribe from eligible entities for that 
                fiscal year;
                    ``(B) the number of loans made by each State and 
                Indian tribe for that fiscal year--
                            ``(i) to eligible entities; and
                            ``(ii) directly to qualified consumers;
                    ``(C) the eligible entities that are the recipients 
                of the loans described in subparagraph (B)(i); and
                    ``(D) the manner in which the program was 
                advertised to eligible entities and the general public.
            ``(2) Consultation.--The Secretary shall consult with and 
        obtain information from States and Indian tribes in preparing 
        the report submitted under paragraph (1).
    ``(k) Authorization of Appropriations.--
            ``(1) In general.--There is authorized to be appropriated 
        to the Secretary to carry out this section $150,000,000 for 
        each of fiscal years 2023 through 2028.
            ``(2) Supplement not supplant.--The funding provided to a 
        State or Indian tribe under subsection (d) for each fiscal year 
        shall be used to supplement, not supplant, any Federal, State, 
        or other funds otherwise made available to that State or Indian 
        tribe under--
                    ``(A) a State energy conservation plan established 
                under part D of title III of the Energy Policy and 
                Conservation Act (42 U.S.C. 6321 et seq.); or
                    ``(B) the weatherization assistance program 
                established under part A of title IV of the Energy 
                Conservation and Production Act (42 U.S.C. 6861 et 
                seq.).''.
    (b) State Energy Conservation Plans.--Section 362(d)(5) of the 
Energy Policy and Conservation Act (42 U.S.C. 6322(d)(5)) is amended--
            (1) in subparagraph (A), by striking ``or'' at the end;
            (2) in subparagraph (B), by inserting ``or'' after the 
        semicolon; and
            (3) by adding at the end the following:
                    ``(C) which may include the community energy 
                savings program under section 362A;''.
    (c) Technical Amendment.--The table of contents for the Energy 
Policy and Conservation Act (Public Law 94-163; 89 Stat. 872) is 
amended by inserting after the item relating to section 362 the 
following:

``Sec. 362A. Community energy savings program.''.
                                 <all>