S 1574 ISCommentsClose CommentsPermalink

To establish a Clean Energy for Homes and Buildings Program in the Department of Energy to provide financial assistance to promote residential-, commercial-, and industrial-scale energy efficiency and on-site renewable technologies.CommentsClose CommentsPermalink

August 4, 2009CommentsClose CommentsPermalink

Mr. MERKLEY (for himself and Mr. LUGAR) introduced the following bill; which was read twice and referred to the Committee on Energy and Natural ResourcesCommentsClose CommentsPermalink

To establish a Clean Energy for Homes and Buildings Program in the Department of Energy to provide financial assistance to promote residential-, commercial-, and industrial-scale energy efficiency and on-site renewable technologies.CommentsClose CommentsPermalink

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

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘Clean Energy for Homes and Buildings Act of 2009’.CommentsClose CommentsPermalink

SEC. 2. FINDINGS.

Congress finds that--CommentsClose CommentsPermalink





(1) homes and commercial or industrial buildings in the United States consume significant quantities of energy, including energy for electricity and heating, the generation or combustion of which creates significant quantities of greenhouse gas emissions;CommentsClose CommentsPermalink





(2) in most cases, energy efficiency is the most cost-effective and rapidly deployable strategy for reducing greenhouse gas emissions, energy demand, and the need for long-distance transmission of energy;CommentsClose CommentsPermalink





(3) on-site renewable energy generation reduces greenhouse gas emissions, demand on the electricity transmission grid, and the need for long-distance transmission of energy;CommentsClose CommentsPermalink





(4) many energy efficiency measures and on-site renewable energy generation systems produce a net cost savings over the course of the useful life of the measures and systems, and often over a shorter time frame, but the initial expense required to purchase and install the measures and systems is often a significant barrier to widespread investment in the measures and systems;CommentsClose CommentsPermalink





(5) financial products, financing programs, and other programs that reduce or eliminate the need for the initial expense described in paragraph (4) can permit building owners to invest in measures and systems that reduce total energy costs and realize net cost savings at the time of the installation of the measures and systems, defer capital expenditure, and enhance the value, comfort, and sustainability of the property of the owners; andCommentsClose CommentsPermalink





(6) State and local governments, utilities, energy efficiency and renewable energy service providers, banks, finance companies, community development organizations, and other entities are developing financial products and programs to provide financing assistance for building owners to encourage the use of the measures and systems described in paragraph (4), including programs that allow repayment of loans under programs described in paragraph (5) through utility bills, or through property-based assessments, taxes, or charges, to facilitate loan repayment for the benefit of building owners and lenders or program sponsors.CommentsClose CommentsPermalink

SEC. 3. PURPOSE.

The purpose of this Act is to encourage widespread deployment of energy efficiency and on-site renewable energy technologies in homes and other buildings throughout the United States through the establishment of a self-sustaining Clean Energy for Homes and Buildings Program that can--CommentsClose CommentsPermalink





(1) encourage the widespread availability of financial products and programs with attractive rates and terms that significantly reduce or eliminate upfront expenses to allow building owners (including homeowners, business owners, owners of multifamily housing, owners of multi-tenant commercial properties, and owners of other residential, commercial, or industrial properties) to invest in energy efficiency measures and on-site renewable energy systems with payback periods of up to 25 years or the useful life of such a measure or system by providing credit support, credit enhancement, secondary markets, and other support to originators of the financial products and sponsors of the financing programs; andCommentsClose CommentsPermalink





(2) help building owners invest in measures and systems that reduce energy costs, in many cases creating a net cost savings that can be realized in the short-term, and may also allow building owners to defer capital expenditures and increase the value, comfort, and sustainability of the property of the owners.CommentsClose CommentsPermalink

SEC. 4. DEFINITIONS.

In this Act:CommentsClose CommentsPermalink





(1) COST- The term ‘cost’ has the meaning given the term in section 502 of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a).CommentsClose CommentsPermalink





(2) DIRECT LOAN- The term ‘direct loan’ has the meaning given the term in section 502 of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a).CommentsClose CommentsPermalink





(3) LOAN GUARANTEE- The term ‘loan guarantee’ has the meaning given the term in section 502 of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a).CommentsClose CommentsPermalink





(4) PROGRAM- The term ‘Program’ means the Clean Energy for Homes and Buildings Program established by section 6.CommentsClose CommentsPermalink





(5) SECRETARY- The term ‘Secretary’ means the Secretary of Energy.CommentsClose CommentsPermalink





(6) SECURITY- The term ‘security’ has the meaning given the term in section 2 of the Securities Act of 1933 (15 U.S.C. 77b).CommentsClose CommentsPermalink





(7) STATE- The term ‘State’ means--CommentsClose CommentsPermalink





(A) a State;CommentsClose CommentsPermalink





(B) the District of Columbia;CommentsClose CommentsPermalink





(C) the Commonwealth of Puerto Rico; andCommentsClose CommentsPermalink





(D) any other territory or possession of the United States.CommentsClose CommentsPermalink

SEC. 5. CLEAN ENERGY FOR HOMES AND BUILDINGS GOALS.

(a) In General- Not later than 180 days after the date of enactment of this Act, the Secretary shall develop and publish for review and comment in the Federal Register near-, medium-, and long-term goals (including numerical performance targets at appropriate intervals to measure progress toward those goals) for--CommentsClose CommentsPermalink





(1)(A) a minimum number of homes to be retrofitted through energy efficiency measures or to have on-site renewable energy systems added;CommentsClose CommentsPermalink





(B) a minimum number of other buildings, by type, to be retrofitted through energy efficiency measures or to have on-site renewable energy systems added; andCommentsClose CommentsPermalink





(C) the number of on-site solar energy, wind energy, and geothermal heat pump systems to be installed; andCommentsClose CommentsPermalink





(2) as a result of those retrofits, additions, and installations--CommentsClose CommentsPermalink





(A) the quantity by which use of grid-supplied electricity, natural gas, home heating oil, and other fuels will be reduced;CommentsClose CommentsPermalink





(B) the quantity by which total fossil fuel dependence in the buildings sector will be reduced;CommentsClose CommentsPermalink





(C) the quantity by which greenhouse gas emissions will be reduced;CommentsClose CommentsPermalink





(D) the number of jobs that will be created; andCommentsClose CommentsPermalink





(E) the estimated total energy cost savings for building owners.CommentsClose CommentsPermalink





(b) Estimates by Originators or Sponsors- The Secretary may rely on reasonable estimates made by originators of financial products or sponsors of financing programs for tracking progress toward meeting the goals established under this section instead of requiring building owners to monitor and report on the progress.CommentsClose CommentsPermalink

SEC. 6. CLEAN ENERGY FOR HOMES AND BUILDINGS PROGRAM.

(a) Establishment- There is established in the Department of Energy a program to be known as the Clean Energy for Homes and Buildings Program.CommentsClose CommentsPermalink





(b) Eligibility Criteria-CommentsClose CommentsPermalink





(1) IN GENERAL- In administering the Program, the Secretary shall establish eligibility criteria for applicants for financial assistance under subsection (c) who can offer financial products and programs consistent with the purposes of this Act.CommentsClose CommentsPermalink





(2) CRITERIA- Criteria for applicants shall--CommentsClose CommentsPermalink





(A) take into account--CommentsClose CommentsPermalink





(i) the number and type of buildings that can be served by the applicant, the size of the potential market, and the scope of the program (in terms of measures or technologies to be used);CommentsClose CommentsPermalink





(ii) the ability of the applicant to successfully execute the proposed program and maintain the performance of the proposed projects and investments;CommentsClose CommentsPermalink





(iii) financial criteria, as applicable, including the ability of the applicant to raise private capital or other sources of funds for the proposed program;CommentsClose CommentsPermalink





(iv) criteria that enable the Secretary to determine sound program design, including--CommentsClose CommentsPermalink





(I) an assurance of credible energy efficiency or renewable energy generation performance; andCommentsClose CommentsPermalink





(II) financial product or program design that effectively reduces barriers posed by traditional financing programs;CommentsClose CommentsPermalink





(v) such criteria, standards, guidelines, and mechanisms as will enable the Secretary, to the maximum extent practicable, to communicate to program sponsors and originators, servicers, and sellers of financial obligations the eligibility of loans for resale;CommentsClose CommentsPermalink





(vi) the ability of the applicant to report relevant data on program performance; andCommentsClose CommentsPermalink





(vii) the ability of the applicant to use incentives or marketing techniques that are likely to result in successful market penetration; andCommentsClose CommentsPermalink





(B) encourage--CommentsClose CommentsPermalink





(i) use of technologies that are either well-established or new, but demonstrated to be reliable;CommentsClose CommentsPermalink





(ii) applicants that can offer building owners payment plans generally designed to permit the combination of energy payments and assessments or charges from the installation or payments associated with financing to be lower than the energy payments prior to installing energy efficiency measures or on-site renewable energy technologies;CommentsClose CommentsPermalink





(iii) applicants that will use repayment mechanisms convenient for building owners, such as tax-increment financing, special tax districts, on-utility-bill repayment, or other mechanisms;CommentsClose CommentsPermalink





(iv) applicants that can provide convenience for building owners by combining participation in the lending program with--CommentsClose CommentsPermalink





(I) processing for tax credits and other incentives; andCommentsClose CommentsPermalink





(II) technical assistance in selecting and working with vendors to provide energy efficiency measures or on-site renewable energy generation systems;CommentsClose CommentsPermalink





(v) applicants the projects of which will use contractors that hire within a 50-mile radius of the project, or as close as is practicable;CommentsClose CommentsPermalink





(vi) applicants that will use materials and technologies manufactured in the United States;CommentsClose CommentsPermalink





(vii) partnerships with or other involvement of State workforce investment boards, labor organizations, community-based organizations, State-approved apprenticeship programs, and other job training entities; andCommentsClose CommentsPermalink





(viii) applicants that can provide financing programs or financial products that mitigate barriers other than the initial expense of installing measures or technologies, such as unfavorable lease terms.CommentsClose CommentsPermalink





(3) DIVERSE PORTFOLIO- In establishing criteria and selecting applicants to receive financial assistance under subsection (c), to the maximum extent practicable, the Secretary shall select a portfolio of investments that reaches a diversity of building owners, including--CommentsClose CommentsPermalink





(A) individual homeowners;CommentsClose CommentsPermalink





(B) multifamily apartment building owners;CommentsClose CommentsPermalink





(C) condominium owners associations;CommentsClose CommentsPermalink





(D) commercial building owners, including multi-tenant commercial properties; andCommentsClose CommentsPermalink





(E) industrial building owners.CommentsClose CommentsPermalink





(c) Financial Assistance-CommentsClose CommentsPermalink





(1) IN GENERAL- For applicants determined to be eligible under criteria established under subsection (b), the Secretary may provide financial assistance in the form of direct loans, letters of credit, loan guarantees, insurance products, other credit enhancements or debt instruments (including securitization or indirect credit support), or other financial products to promote the widespread deployment of, and mobilize private sector support of credit and investment institutions for, energy efficiency measures and on-site renewable energy generation systems in buildings.CommentsClose CommentsPermalink





(2) FINANCIAL PRODUCTS- The Secretary--CommentsClose CommentsPermalink





(A) in cooperation with Federal, State, local, and private sector entities, shall develop debt instruments that provide for the aggregation of, or directly aggregate, programs for the deployment of energy efficiency measures and on-site renewable energy generation systems on a scale appropriate for residential, commercial, or industrial applications; andCommentsClose CommentsPermalink





(B) may insure, guarantee, purchase, and make commitments to purchase any debt instrument associated with the deployment of clean energy technologies (including subordinated securities) for the purpose of enhancing the availability of private financing for the deployment of energy efficiency measures and on-site renewable energy generation systems.CommentsClose CommentsPermalink





(3) APPLICATION REVIEW-CommentsClose CommentsPermalink





(A) IN GENERAL- To the maximum extent practicable and consistent with sound business practices, the Secretary shall seek to expedite reviews of applications for credit support under this Act in order to communicate to applicants in a timely manner the likelihood of support so that the applicants can seek private capital in order to receive final approval.CommentsClose CommentsPermalink





(B) MECHANISMS- In carrying out this paragraph, the Secretary shall consider using mechanisms such as--CommentsClose CommentsPermalink





(i) a system for conditional pre-approval that informs applicants that final applicants will be approved, if established conditions are met;CommentsClose CommentsPermalink





(ii) clear guidelines that communicate to applicants what level of performance on eligibility criteria will ensure approval for credit support or resale;CommentsClose CommentsPermalink





(iii) in the case of an applicant portfolio of more than 300 loans or other financial arrangement, an expedited review based on statistical sampling to ensure that the loan or other financial arrangement meets the eligibility criteria; andCommentsClose CommentsPermalink





(iv) in the case of an applicant with a demonstrated track record with respect to successfully originating eligible loans or other financial arrangements and who meets appropriate other criteria determined by the Secretary, a system for delegating responsibility for meeting eligibility criteria that includes appropriate protections such as buy-back mechanisms in the event criteria are determined not to have been met.CommentsClose CommentsPermalink





(C) DISPOSITION OF DEBT OR INTEREST- The Secretary may acquire, hold, and sell or otherwise dispose of, pursuant to commitments or otherwise, any debt associated with the deployment of clean energy technologies or interest in the debt.CommentsClose CommentsPermalink





(D) PRICING-CommentsClose CommentsPermalink





(i) IN GENERAL- The Secretary may establish requirements, and impose charges or fees, which may be regarded as elements of pricing, for different classes of applicants, originators, sellers, servicers, or services.CommentsClose CommentsPermalink





(ii) CLASSIFICATION OF APPLICANTS, ORIGINATORS, SELLERS AND SERVICERS- For the purpose of clause (i), the Secretary may classify applicants, originators, sellers and servicers as necessary to promote transparency and liquidity and properly characterize the risk of default.CommentsClose CommentsPermalink





(E) SECONDARY MARKET SUPPORT-CommentsClose CommentsPermalink





(i) IN GENERAL- The Secretary may lend on the security of, and make commitments to lend on the security of, any debt that the Secretary has insured, guaranteed, issued or is authorized to purchase under this section.CommentsClose CommentsPermalink





(ii) AUTHORIZED ACTIONS- On such terms and conditions as the Secretary may prescribe, the Secretary may--CommentsClose CommentsPermalink





(I) give security;CommentsClose CommentsPermalink





(II) insure;CommentsClose CommentsPermalink





(III) guarantee;CommentsClose CommentsPermalink





(IV) purchase;CommentsClose CommentsPermalink





(V) sell;CommentsClose CommentsPermalink





(VI) pay interest or other return; andCommentsClose CommentsPermalink





(VII) issue notes, debentures, bonds, or other obligations or securities.CommentsClose CommentsPermalink





(F) LENDING ACTIVITIES-CommentsClose CommentsPermalink





(i) IN GENERAL- The Secretary shall determine--CommentsClose CommentsPermalink





(I) the volume of the lending activities of the Program; andCommentsClose CommentsPermalink





(II) the types of loan ratios, risk profiles, interest rates, maturities, and charges or fees in the secondary market operations of the Program.CommentsClose CommentsPermalink





(ii) OBJECTIVES- Determinations under clause (i) shall be consistent with the objectives of--CommentsClose CommentsPermalink





(I) providing an attractive investment environment for programs that install energy efficiency measures or on-site renewable energy generation technologies;CommentsClose CommentsPermalink





(II) making the operations of the Program self-supporting over the long term; andCommentsClose CommentsPermalink





(III) advancing the goals established under this Act.CommentsClose CommentsPermalink





(G) EXEMPT SECURITIES- All securities issued, insured, or guaranteed by the Secretary shall, to the same extent as securities that are direct obligations of or obligations guaranteed as to principal or interest by the United States, be considered to be exempt securities within the meaning of the laws administered by the Securities and Exchange Commission.CommentsClose CommentsPermalink

SEC. 7. GENERAL PROVISIONS.

(a) Periodic Reports- Not later than 1 year after commencement of operation of the Program and at least biannually thereafter, the Secretary shall submit to the Committee on Energy and Natural Resources of the Senate and the Committee on Energy and Commerce of the House of Representatives a report that includes a description of the Program in meeting the purpose and goals established by or pursuant to this Act.CommentsClose CommentsPermalink





(b) Audits by the Comptroller General-CommentsClose CommentsPermalink





(1) IN GENERAL- The programs, activities, receipts, expenditures, and financial transactions of the Program shall be subject to audit by the Comptroller General of the United States under such rules and regulations as may be prescribed by the Comptroller General.CommentsClose CommentsPermalink





(2) ACCESS- The representatives of the Government Accountability Office shall--CommentsClose CommentsPermalink





(A) have access to the personnel and to all books, accounts, documents, records (including electronic records), reports, files, and all other papers, automated data, things, or property belonging to, under the control of, or in use by the Program, or any agent, representative, attorney, advisor, or consultant retained by the Program, and necessary to facilitate the audit;CommentsClose CommentsPermalink





(B) be afforded full facilities for verifying transactions with the balances or securities held by depositories, fiscal agents, and custodians;CommentsClose CommentsPermalink





(C) be authorized to obtain and duplicate any such books, accounts, documents, records, working papers, automated data and files, or other information relevant to the audit without cost to the Comptroller General; andCommentsClose CommentsPermalink





(D) have the right of access of the Comptroller General to such information pursuant to section 716(c) of title 31, United States Code.CommentsClose CommentsPermalink





(3) ASSISTANCE AND COST-CommentsClose CommentsPermalink





(A) IN GENERAL- For the purpose of conducting an audit under this subsection, the Comptroller General may, in the discretion of the Comptroller General, employ by contract, without regard to section 3709 of the Revised Statutes (41 U.S.C. 5), professional services of firms and organizations of certified public accountants for temporary periods or for special purposes.CommentsClose CommentsPermalink





(B) REIMBURSEMENT-CommentsClose CommentsPermalink





(i) IN GENERAL- On the request of the Comptroller General, the Secretary shall reimburse the General Accountability Office for the full cost of any audit conducted by the Comptroller General under this subsection.CommentsClose CommentsPermalink





(ii) CREDITING- Such reimbursements shall--CommentsClose CommentsPermalink





(I) be credited to the appropriation account entitled ‘Salaries and Expenses, Government Accountability Office’ at the time at which the payment is received; andCommentsClose CommentsPermalink





(II) remain available until expended.CommentsClose CommentsPermalink

SEC. 8. AUTHORIZATION OF APPROPRIATIONS.

There is authorized to be appropriated to carry out this Act $2,000,000,000.CommentsClose CommentsPermalink