Home Energy Conservation Act of 2010 - Amends the Internal Revenue Code to allow the issuance of tax-exempt home energy conservation bonds to finance qualified residential energy efficiency assistance grants and loans and extend such grants and loans to low and very-low income taxpayers. Imposes a national home energy conservation bond limitation amount of $2.4 billion and allocates such amount to states in proportion to state population.
Defines "qualified residential energy efficiency assistance grants and loans" as any grant or loan to acquire: (1) any property which meets (at a minimum) the requirements of the Energy Star program or the Water Sense program and which is to be installed in a dwelling unit; and (2) any improvement to a dwelling unit made under a plan which is developed by a Residential Energy Services Network, Building Performance Institute, or equivalent energy efficiency expert and is certified by such expert as resulting in at least a 20% reduction in total household energy consumption related to heating, cooling, lighting, and appliances.
Imposes dollar limitations on such grants and loans and excludes certain types of property from such grant and loan program, including equipment used in connection with a swimming pool or hot tub, any television, any device for converting a digital signal to analog, any DVD player, video cassette recorder, audio equipment, cordless phone, or other property where there is a substantial recreational use.
[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5617 Introduced in House (IH)]
111th CONGRESS
2d Session
H. R. 5617
To amend the Internal Revenue Code of 1986 to provide for home energy
conservation bonds.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 28, 2010
Mr. McDermott (for himself, Mr. Blumenauer, Mr. Sarbanes, Ms. Schwartz,
and Mr. Thompson of California) introduced the following bill; which
was referred to the Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to provide for home energy
conservation bonds.
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 ``Home Energy Conservation Act of
2010''.
SEC. 2. HOME ENERGY CONSERVATION BONDS.
(a) In General.--Subpart I of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by adding at the end
the following new section:
``SEC. 54G. HOME ENERGY CONSERVATION BONDS.
``(a) Home Energy Conservation Bond.--For purposes of this
subchapter, the term `home energy conservation bond' means any bond
issued as part of an issue if--
``(1) 100 percent of the available project proceeds of such
issue are to be used to make qualified residential energy
efficiency assistance grants and loans,
``(2) not less than 20 percent of the available project
proceeds of such issue are to be used to make qualified low-
income residential energy efficiency assistance grants and
loans,
``(3) not less than 10 percent of the available project
proceeds of such issue are to be used to make qualified very
low-income residential energy efficiency assistance grants,
``(4) repayments of principal and applicable interest on
financing provided by the issue are used not later than the
close of the 3-month period beginning on the date the
prepayment (or complete repayment) is received to redeem bonds
which are part of the issue or to make qualified residential
energy efficiency assistance grants and loans,
``(5) the bond is issued by a State or local government,
and
``(6) the issuer designates such bond for purposes of this
section.
``(b) Limitation on Amount of Bonds Designated.--The maximum
aggregate face amount of bonds which may be designated under subsection
(a) by any issuer shall not exceed the limitation amount allocated
under subsection (d) to such issuer.
``(c) National Limitation on Amount of Bonds Designated.--There is
a national home energy conservation bond limitation of $2,400,000,000.
``(d) Allocations.--
``(1) In general.--The limitation under subsection (c)
shall be allocated by the Secretary among the States in
proportion to the population of the States.
``(2) Allocations to largest local governments.--
``(A) In general.--In the case of any State in
which there is a large local government, each such
local government shall be allocated a portion of such
State's allocation which bears the same ratio to the
State's allocation (determined without regard to this
subparagraph) as the population of such large local
government bears to the population of such State.
``(B) Allocation of unused limitation to state.--
The amount allocated under this subsection to a large
local government may be reallocated by such local
government to the State in which such local government
is located.
``(C) Large local government.--For purposes of this
section, the term `large local government' means any
municipality or county if such municipality or county
has a population of 500,000 or more.
``(e) Qualified Residential Energy Efficiency Assistance Grants and
Loans.--For purposes of this section--
``(1) In general.--Qualified residential energy efficiency
assistance grants and loans are any grant or low-interest loan,
as the case may be, to acquire (including reasonable
installation and testing costs) any of the following:
``(A) Any property which meets (at a minimum) the
requirements of the Energy Star program and which is to
be installed in a dwelling unit.
``(B) Any property not described in subparagraph
(A) which meets (at a minimum) the requirements of the
Water Sense program and which is to be installed in a
dwelling unit.
``(C) Any improvements to a dwelling unit which are
made pursuant to a plan which--
``(i) is developed by a Residential Energy
Services Network (RESNET), Building Performance
Institute (BPI), or equivalent, energy
efficiency expert, and
``(ii) is certified by such energy
efficiency expert (based on testing done before
and after such improvements) as resulting in at
least a 20 percent reduction in total household
energy consumption related to heating, cooling,
lighting, and appliances.
For purposes of this subparagraph, improvements to a
dwelling unit for basic health and safety may be taken
into account to the extent that such improvements do
not exceed 10 percent of the value of the grant or loan
and are required under State or local law as a
condition of making the other improvement described in
this subparagraph.
``(2) Dollar limitations.--
``(A) Dwelling unit improvements.--
``(i) In general.--Such term shall not
include any grant or loan for improvements
described in paragraph (1)(C) with respect to
any dwelling unit to the extent that such grant
or loan (when added to all other grants or
loans for such improvements) exceeds $5,000.
``(ii) Increased limitation for certain
principal residences.--In the case of a
dwelling unit which is used as a principal
residence (within the meaning of section 121)
by the recipient of the grant or loan referred
to in clause (i)--
``(I) clause (i) shall be applied
by substituting `$12,000' for `$5,000'
if such grant or loan would satisfy the
requirements of paragraph (1)(C) if
such paragraph were applied by
substituting `40 percent' for `20
percent', and
``(II) in any case to which
subclause (I) does not apply, clause
(i) shall be applied by substituting
`$8,000' for `$5,000' if such grant or
loan would satisfy the requirements of
paragraph (1)(C) if such paragraph were
applied by substituting `30 percent'
for `20 percent'.
``(iii) Increased limitation for cash
positive loans.--In the case of a dwelling unit
which is used as a principal residence (within
the meaning of section 121) by the recipient of
a loan with respect to which the reduced energy
costs which result from the improvements
described in paragraph (1)(C) exceed the
payments required under the terms of the loan--
``(I) clause (i) shall be applied
by substituting `$12,000' for `$5,000',
and
``(II) clause (ii) shall not apply.
``(B) Reduction in water consumption.--Such term
shall not include any grant or loan for property
described in paragraph (1)(B) with respect to any
dwelling unit to the extent that such grant or loan
(when added to all other grants or loans for such
property) exceeds $500.
``(3) Low-interest loan.--The term `low interest loan'
means any loan which charges interest at a rate which does not
exceed the applicable Federal rate in effect under section
1288(b)(1) determined as of the issuance of the loan.
``(4) Exclusion of certain property.--The following
property shall not be taken into account for purposes of
paragraph (1):
``(A) Any equipment used in connection with a
swimming pool, hot tub, or similar property.
``(B) Any television.
``(C) Any device for converting digital signal to
analog.
``(D) Any DVD player.
``(E) Any video cassette recorder (VCR).
``(F) Any audio equipment.
``(G) Any cordless phone.
``(H) Any other item of property where there is
substantial recreational use.
``(f) Qualified Low-Income Residential Efficiency Assistance Grants
and Loans.--
``(1) In general.--Qualified low-income residential energy
efficiency assistance grants and loans are any qualified
residential energy efficiency assistance grant or loan, as the
case may be, with respect to a dwelling unit which is occupied
(at the time of the grant or loan) by individuals whose income
is 100 percent or less of area median gross income. Rules
similar to the rules of section 142(d)(2)(B) shall apply for
purposes of this paragraph.
``(2) Restriction to grants and very low interest loans.--
Such term shall not include any loan unless the rate of
interest on such loan does not exceed the excess of--
``(A) the applicable Federal rate in effect under
section 1288(b)(1) determined as of the issuance of the
loan, over
``(B) 100 basis points.
``(g) Qualified Very Low-Income Residential Efficiency Assistance
Grants.--For purposes of this section, qualified very low-income
residential energy efficiency assistance grants are any qualified low-
income residential energy efficiency assistance grant with respect to a
dwelling unit which is occupied (at the time of the grant) by
individuals whose income is 50 percent or less of area median gross
income. Rules similar to the rules of section 142(d)(2)(B) shall apply
for purposes of this paragraph.
``(h) Definitions and Special Rules.--For purposes of this
section--
``(1) Applicable interest.--The term `applicable interest'
means, with respect to any loan, so much of any interest on
such loan which exceeds 1 percentage point.
``(2) Special rule relating to arbitrage.--An issue shall
not be treated as failing to meet the requirements of section
54A(d)(4)(A) by reason of any investment of available project
proceeds in qualified residential energy efficiency assistance
loans.
``(3) Exclusion of administrative expenses.--The amount
treated as used to make any grant or loan described in this
section shall not exceed the amount of such grant or loan.
``(4) Population.--The population of any State or local
government shall be determined as provided in section 146(j)
for the calendar year which includes the date of the enactment
of this section.
``(5) Reporting.--
``(A) Reports by issuers.--Issuers of home energy
conservation bonds shall, not later than 6 months after
the expenditure period (as defined in section 54A) and
annually thereafter until the last such bond is
redeemed, submit reports to the Secretary regarding
such bonds, including information regarding--
``(i) the number and monetary value of
loans and grants provided and the purposes for
which provided,
``(ii) the number of dwelling units the
energy efficiency of which improved as result
of such loans and grants,
``(iii) the types of property described in
subparagraphs (A) and (B) of subsection (e)(1)
installed as a result of such loans and grants
and the projected energy savings with respect
to such property, and
``(iv) the projected energy savings as a
result of such loans and grants for
improvements described in subsection (e)(1)(C).
``(B) Report to congress.--Not later than 12 months
after receipt of the first report under subparagraph
(A) and annually thereafter until the last such report
is required to be submitted, the Secretary, in
consultation with the Secretary of Energy and the
Administrator of the Environmental Protection Agency,
shall submit a report to Congress regarding the bond
program under this section, including information
regarding--
``(i) the aggregate of each category of
information described in subparagraph (A)
(including any independent assessment of
projected energy savings), and
``(ii) an estimate of the amount of
greenhouse gas emissions reduced as a result of
such bond program.''.
(b) Treatment as a Specified Tax Credit Bond for Purposes of Direct
Payment Provisions.--Subparagraph (A) of section 6431(f)(3) of such
Code is amended by striking ``or'' at the end of clause (iii), by
striking ``and'' at the end of clause (iv) and inserting ``or'', and by
adding at the end the following new clause:
``(v) a home energy conservation bond (as
defined in section 54G), and''.
(c) Conforming Amendments.--
(1) Paragraph (1) of section 54A(d) of such Code is amended
by striking ``or'' at the end of subparagraph (D), by inserting
``or'' at the end of subparagraph (E), and by inserting after
subparagraph (E) the following new subparagraph:
``(F) a home energy conservation bond,''.
(2) Subparagraph (C) of section 54A(d)(2) of such Code is
amended by striking ``and'' at the end of clause (iv), by
striking the period at the end of clause (v) and inserting ``,
and'', and by adding at the end the following new clause:
``(vi) in the case of a home energy
conservation bond, a purpose specified in
section 54G(a)(1).''.
(3) The table of sections for subpart I of part IV of
subchapter A of chapter 1 of such Code is amended by adding at
the end the following new item:
``Sec. 54G. Home energy conservation bonds.''.
(d) Effective Date.--The amendments made by this section shall
apply to obligations issued after the date of the enactment of this
Act.
<all>
Introduced in House
Introduced in House
Sponsor introductory remarks on measure. (CR E1220)
Referred to the House Committee on Ways and Means.
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