II 118th CONGRESS 1st Session S. 1821 IN THE SENATE OF THE UNITED STATES June 6, 2023 Mr. Welch (for himself and Ms. Murkowski ) introduced the following bill; which was read twice and referred to the Committee on Agriculture, Nutrition, and Forestry A BILL To amend the Farm Security and Rural Investment Act of 2002 to modify provisions relating to the rural energy savings program.

1. Short title This Act may be cited as the Rural Energy Savings Act . 2. Rural energy savings program modifications Section 6407 of the Farm Security and Rural Investment Act of 2002 ( 7 U.S.C. 8107a ) is amended— (1) in subsection (b)— (A) in paragraph (1)— (i) in subparagraph (B), by striking or at the end; (ii) by redesignating subparagraph (C) as subparagraph (E); and (iii) by inserting after subparagraph (B) the following: (C) any Indian Tribe (as defined in section 4 of the Indian Self-Determination and Education Assistance Act ( 25 U.S.C. 5304 )); (D) any public, quasipublic, or nonprofit entity that uses innovative financing techniques and market development tools to accelerate the deployment of clean energy technology (commonly known as a green bank ); and ; and (B) by striking paragraph (2) and inserting the following: (2) Energy efficiency measure The term energy efficiency measure , with respect to any property served by an eligible entity, means— (A) a structural improvement or investment in a cost-effective, commercial technology to increase energy efficiency (including cost-effective on- or off-grid renewable energy or energy storage systems); and (B) the replacement of a manufactured housing unit or large appliance with a substantially similar manufactured housing unit or appliance, respectively, if that replacement is a cost-effective option with respect to energy savings. ; (2) in subsection (c)— (A) in the subsection heading, by inserting and grants after Loans ; (B) by striking paragraph (1) and inserting the following: (1) In general Subject to the requirements of this subsection, the Secretary shall provide— (A) loans to eligible entities that agree to use the loan funds to make loans under subsection (d) to qualified consumers for the purpose of implementing energy efficiency measures; and (B) at the election of any eligible entity that receives a loan under subparagraph (A), a grant in accordance with paragraph (10). ; (C) in paragraph (2)— (i) in the paragraph heading, by inserting for loans after Requirements ; and (ii) in subparagraph (A)(i), by striking that is ; (D) in paragraph (5)— (i) by redesignating subparagraphs (A) and (B) as clauses (i) and (ii), respectively, and indenting the clauses appropriately; (ii) in the matter preceding clause (i) (as so redesignated), by striking With respect to a loan under paragraph (1) and inserting the following: (A) In general Subject to subparagraph (B), with respect to a loan under paragraph (1)(A) ; and (iii) by adding at the end the following: (B) Extensions The Secretary may extend the term of a loan under subparagraph (A)(i), or the deadline for the repayment of an advance under subparagraph (A)(ii), as the Secretary determines to be appropriate. ; (E) in paragraph (7)— (i) in subparagraph (B), by striking paragraph (1) and inserting paragraph (1)(A) ; and (ii) in subparagraph (C), in the matter preceding clause (i), by striking Repayment of the special advance and inserting Subject to an applicable extension under paragraph (5)(B), repayment of a special advance under this paragraph ; (F) in paragraph (8), by striking paragraph (1) and inserting paragraph (1)(A) ; and (G) by adding at the end the following: (10) Grants (A) In general At the election of an eligible entity that receives a loan under this subsection, the Secretary shall provide to the eligible entity a grant to pay for a portion of the costs incurred in— (i) applying for the loan; (ii) making a loan to a qualified consumer under subsection (d); (iii) making repairs to the property of a qualified consumer that facilitate the energy efficiency measures for the property financed through a loan provided to the qualified consumer under subsection (d); (iv) entering into a contract under subsection (e); or (v) carrying out any other duties of the eligible entity under this section. (B) Amount (i) In general Except as provided in clause (ii), the amount of a grant provided to an eligible entity under this paragraph shall be equal to not more than 5 percent of the amount of the loan provided to the eligible entity under this subsection. (ii) Persistent poverty counties The amount of a grant provided under this paragraph to an eligible entity that will use the grant to make loans under subsection (d) to qualified consumers located in a persistent poverty county (as determined by the Secretary) shall be equal to 10 percent of the amount of the loan provided to the eligible entity under this subsection. ; (3) in subsection (d)— (A) in paragraph (1)— (i) in the matter preceding subparagraph (A), by inserting or grant before funds ; (ii) in subparagraph (B)— (I) by striking (B) shall finance and inserting the following: (B)(i) may have a term and amortization schedule the length of which is the useful life of the energy efficiency measures implemented using the loan, provided that the loan to the qualified consumer does not exceed 20 years; and (ii) shall finance ; and (II) in clause (ii) (as so designated), by striking a loan term of not more than 10 years and inserting the applicable loan term described in clause (i) ; and (iii) in subparagraph (C), by striking unless the personal property is or becomes attached to real property (including a manufactured home) as a fixture; and inserting unless the personal property— (i) is a manufactured housing unit or large appliance described in subsection (b)(2)(B); or (ii) is or becomes attached to real property as a fixture; ; and (B) by adding at the end the following: (3) Clarification of eligibility Notwithstanding any other provision of law (including regulations), an eligible entity may make a loan under this subsection to any qualified consumer located within the service territory of the eligible entity, regardless of whether the qualified consumer is located in a rural area. ; (4) in subsection (e)— (A) in the subsection heading, by inserting outreach, after training, ; (B) in paragraph (1)— (i) in subparagraph (A), by striking and technical assistance of the program and inserting outreach, and technical assistance relating to the program under this section ; and (ii) in subparagraph (B)(ii), by inserting , outreach, after technical assistance ; and (C) by adding at the end the following: (3) Funding Of the amounts made available under subsection (i), the Secretary may use such sums as are necessary to provide outreach, training, and technical assistance under this subsection. ; and (5) in subsection (i), by striking 2023 and inserting 2033 .