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.
[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3200 Introduced in House (IH)]
<DOC>
117th CONGRESS
1st Session
H. R. 3200
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.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 13, 2021
Ms. Kuster introduced the following bill; which was referred to the
Committee on Energy and Commerce
_______________________________________________________________________
A BILL
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>
Introduced in House
Introduced in House
Referred to the House Committee on Energy and Commerce.
Referred to the Subcommittee on Energy.
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