Community Energy Savings Program Act of 2019

I 116TH CONGRESS 1ST SESSION H. R. 5514 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 DECEMBER 19, 2019 Ms. KUSTER of New Hampshire (for herself, Mr. WELCH, Mr. CASTEN of Illi- nois, Mr. CONNOLLY, Ms. BARRAGA´N, Mr. HUFFMAN, Mr. QUIGLEY, Mr. MORELLE, Ms. BLUNT ROCHESTER, and Ms. HAALAND) introduced the following bill; which was referred to the Committee on Energy and Com- merce A BILL To amend the Energy Policy and Conservation Act to estab- lish a program to provide loans to implement cost-effec- tive energy efficiency measures, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Community Energy 4 Savings Program Act of 2019’’. 5 VerDate Sep 11 2014 22:28 Dec 28, 2019 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H5514.IH H5514 2 •HR 5514 IH SEC. 2. COMMUNITY ENERGY SAVINGS PROGRAM. 1 (a) IN GENERAL.—The Energy Policy and Conserva- 2 tion Act is amended by inserting after section 362 (42 3 U.S.C. 6322) the following: 4 ‘‘SEC. 362A. COMMUNITY ENERGY SAVINGS PROGRAM. 5 ‘‘(a) PURPOSE.—The purpose of this section is to 6 help households and small businesses achieve cost savings 7 by providing loans to implement cost-effective energy effi- 8 ciency measures. 9 ‘‘(b) DEFINITIONS.—In this section: 10 ‘‘(1) COMMUNITY DEVELOPMENT FINANCIAL IN- 11 STITUTION.—The term ‘community development fi- 12 nancial institution’ means a financial institution cer- 13 tified by the Community Development Financial In- 14 stitutions Fund administered by the Secretary of the 15 Treasury. 16 ‘‘(2) ELIGIBLE ENTITY.—The term ‘eligible en- 17 tity’ means— 18 ‘‘(A) a public power group; 19 ‘‘(B) a community development financial 20 institution; and 21 ‘‘(C) an eligible unit of local government. 22 ‘‘(3) ELIGIBLE UNIT OF LOCAL GOVERN- 23 MENT.—The term ‘eligible unit of local government’ 24 means any agency or political subdivision of a State. 25 VerDate Sep 11 2014 22:28 Dec 28, 2019 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H5514.IH H5514 3 •HR 5514 IH ‘‘(4) ENERGY EFFICIENCY MEASURES.—The 1 term ‘energy efficiency measures’ means, with re- 2 spect to a property served by or in the service area 3 or jurisdiction, as applicable, of an eligible entity, 4 structural improvements and investments in cost-ef- 5 fective commercial technologies to increase energy 6 efficiency (including cost-effective on- or off-grid re- 7 newable energy, energy storage, or demand response 8 systems). 9 ‘‘(5) HOUSEHOLD WITH A HIGH ENERGY BUR- 10 DEN.— 11 ‘‘(A) IN GENERAL.—The term ‘household 12 with a high energy burden’ means a low-income 13 household the residential energy burden of 14 which exceeds the median energy burden for all 15 low-income households in the State in which the 16 low-income household is located. 17 ‘‘(B) CALCULATION.—The residential en- 18 ergy burden referred to in subparagraph (A) is 19 the quotient obtained by dividing residential en- 20 ergy expenditures by the annual income of the 21 low-income household. 22 ‘‘(6) INDIAN TRIBE.—The term ‘Indian tribe’ 23 has the meaning given the term in section 4 of the 24 VerDate Sep 11 2014 22:28 Dec 28, 2019 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H5514.IH H5514 4 •HR 5514 IH Indian Self-Determination and Education Assistance 1 Act (25 U.S.C. 5304). 2 ‘‘(7) MANUFACTURED HOME.—The term ‘man- 3 ufactured home’— 4 ‘‘(A) has the meaning given the term in 5 section 603 of the National Manufactured 6 Housing Construction and Safety Standards 7 Act of 1974 (42 U.S.C. 5402); and 8 ‘‘(B) includes a home described in sub- 9 paragraph (A) without regard to whether the 10 home was built before, on, or after the date on 11 which the construction and safety standards es- 12 tablished under section 604 of that Act (42 13 U.S.C. 5403) became effective. 14 ‘‘(8) PROGRAM.—The term ‘program’ means 15 the program established under subsection (c). 16 ‘‘(9) PUBLIC POWER GROUP.—The term ‘public 17 power group’ means— 18 ‘‘(A) a public utility; 19 ‘‘(B) an electric or energy cooperative; 20 ‘‘(C) a public power district; and 21 ‘‘(D) a group of 1 or more public utilities 22 or electric or energy cooperatives (commonly re- 23 ferred to as a ‘joint action agency’, ‘generation 24 VerDate Sep 11 2014 22:28 Dec 28, 2019 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H5514.IH H5514 5 •HR 5514 IH and transmission cooperative’, ‘municipal power 1 association’, or ‘State cooperative association’). 2 ‘‘(10) QUALIFIED CONSUMER.—The term 3 ‘qualified consumer’ means a consumer served by or 4 in the service area or jurisdiction, as applicable, of 5 an eligible entity that has the ability to repay a loan 6 made under subsection (f), as determined by the eli- 7 gible entity. 8 ‘‘(11) SECRETARY.—The term ‘Secretary’ 9 means the Secretary of Energy. 10 ‘‘(12) STATE.—The term ‘State’ means— 11 ‘‘(A) a State; 12 ‘‘(B) the District of Columbia; 13 ‘‘(C) the Commonwealth of Puerto Rico; 14 and 15 ‘‘(D) any other territory or possession of 16 the United States. 17 ‘‘(c) ESTABLISHMENT.—Not later than 120 days 18 after the date of enactment of this section, the Secretary 19 shall establish a program under which the Secretary shall 20 provide grants to States and Indian tribes to provide loans 21 to eligible entities in accordance with this section. 22 ‘‘(d) GRANT FUND ALLOCATION.— 23 VerDate Sep 11 2014 22:28 Dec 28, 2019 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H5514.IH H5514 6 •HR 5514 IH ‘‘(1) IN GENERAL.—Of the amount appro- 1 priated under subsection (k) for each fiscal year, the 2 Secretary shall allocate as grant funds— 3 ‘‘(A) 98 percent to be provided to States in 4 accordance with paragraph (2); and 5 ‘‘(B) 2 percent to be provided to Indian 6 tribes in accordance with paragraph (3). 7 ‘‘(2) ALLOCATION TO STATES.—Of the amount 8 allocated for all States under paragraph (1)(A), the 9 Secretary shall— 10 ‘‘(A) allocate not less than 1 percent to 11 each State described in subparagraphs (A) 12 through (C) of subsection (b)(12); 13 ‘‘(B) allocate not less than 0.5 percent to 14 each State described in subparagraph (D) of 15 that subsection; and 16 ‘‘(C) of the amount remaining after the al- 17 locations under subparagraphs (A) and (B), al- 18 locate funds to States based on the population 19 of each State as determined in the latest avail- 20 able decennial census conducted under section 21 141(a) of title 13, United States Code. 22 ‘‘(3) ALLOCATION TO INDIAN TRIBES.—Of the 23 amount allocated for Indian tribes under paragraph 24 (1)(B), the Secretary shall allocate funds to each In- 25 VerDate Sep 11 2014 22:28 Dec 28, 2019 Jkt 099200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H5514.IH H5514 7 •HR 5514 IH dian tribe participating in the program during that 1 fiscal year based on a formula established by the 2 Secretary that takes into account any factor that the 3 Secretary determines to be appropriate. 4 ‘‘(4) PUBLICATION OF ALLOCATION FOR- 5 MULAS.—Not later than 90 days before the begin- 6 ning of each fiscal year for which grants are pro- 7 vided to States and Indian tribes under this section, 8 the Secretary shall publish in the Federal Register 9 the formulas for allocation established under this 10 subsection. 11 ‘‘(5) ADMINISTRATIVE COSTS.—Of the amount 12 allocated to a State or Indian tribe under this sub- 13 section, not more than 15 percent shall be used by 14 the State or Indian tribe for the administrative costs 15 of administering loans. 16 ‘‘(e) LOANS BY STATES AND INDIAN TRIBES TO ELI- 17 GIBLE ENTITIES.— 18 ‘‘(1) IN GENERAL.—Under the program, a 19 State or Indian tribe shall make loans to eligible en- 20 tities to make loans to qualified consumers— 21 ‘‘(A) to implement cost-effective energy ef- 22 ficiency measures; and 23 ‘‘(B) in accordance with subsection (f). 24 VerDate Sep 11 2014 22:28 Dec 28, 2019 Jkt 099200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H5514.IH H5514 8 •HR 5514 IH ‘‘(2) STATE ENERGY OFFICES.—A State shall 1 carry out paragraph (1) through the State energy 2 office that is responsible for developing a State en- 3 ergy conservation plan under section 362. 4 ‘‘(3) PRIORITY.—In making loans under para- 5 graph (1), a State or Indian tribe shall give priority 6 to public power groups. 7 ‘‘(4) REQUIREMENTS.— 8 ‘‘(A) IN GENERAL.—Subject to subpara- 9 graph (C), as a condition of receiving a loan 10 under this subsection, an eligible entity shall— 11 ‘‘(i) establish a list of energy effi- 12 ciency measures that are expected to de- 13 crease the energy use or costs of qualified 14 consumers; 15 ‘‘(ii) prepare an implementation plan 16 for use of the loan funds, including the use 17 of any interest to be received under sub- 18 section (f)(4); 19 ‘‘(iii) establish an appropriate meas- 20 urement and verification system to en- 21 sure— 22 ‘‘(I) the effectiveness of the en- 23 ergy efficiency loans made by the eli- 24 gible entity; and 25 VerDate Sep 11 2014 22:28 Dec 28, 2019 Jkt 099200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H5514.IH H5514 9 •HR 5514 IH ‘‘(II) that there is no conflict of 1 interest in any loan provided by the 2 eligible entity; 3 ‘‘(iv) demonstrate expertise in the ef- 4 fective implementation of energy efficiency 5 measures; 6 ‘‘(v) ensure that a portion of the loan 7 funds, which may be determined by the 8 State or Indian tribe, are used to provide 9 loans to qualified consumers that are 10 households with a high energy burden; and 11 ‘‘(vi) give priority to providing loans 12 to qualified consumers that own homes or 13 other real property that pose health risks 14 to the occupants of the property that may 15 be mitigated by energy efficiency measures, 16 as determined by the State or Indian tribe. 17 ‘‘(B) REVISION OF LIST OF ENERGY EFFI- 18 CIENCY MEASURES.—Subject to the approval of 19 the State or Indian tribe, as applicable, an eligi- 20 ble entity may update the list required under 21 subparagraph (A)(i) to account for newly avail- 22 able efficiency technologies. 23 ‘‘(C) EXISTING ENERGY EFFICIENCY PRO- 24 GRAMS.—An eligible entity that has established 25 VerDate Sep 11 2014 22:28 Dec 28, 2019 Jkt 099200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H5514.IH H5514 10 •HR 5514 IH an energy efficiency program for qualified con- 1 sumers before the date of enactment of this sec- 2 tion may use an existing list of energy efficiency 3 measures, implementation plan, and measure- 4 ment and verification system for that program 5 to satisfy the applicable requirements under 6 subparagraph (A), if the State or Indian tribe, 7 as applicable, determines that the list, plan, or 8 system, as applicable, is consistent with the 9 purposes of this section. 10 ‘‘(5) NO INTEREST.—A loan under this sub- 11 section shall bear no interest. 12 ‘‘(6) TERM.—The term of a loan provided to an 13 eligible entity under paragraph (1) shall not exceed 14 20 years after the date on which the loan is issued. 15 ‘‘(7) ADVANCE.— 16 ‘‘(A) IN GENERAL.—In providing a loan to 17 an eligible entity under paragraph (1), a State 18 or Indian tribe may provide an advance of loan 19 funds on request of the eligible entity. 20 ‘‘(B) AMOUNT LIMITATION.—Any advance 21 provided to an eligible entity under subpara- 22 graph (A) in any single year shall not exceed 50 23 percent of the approved loan amount. 24 VerDate Sep 11 2014 22:28 Dec 28, 2019 Jkt 099200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H5514.IH H5514 11 •HR 5514 IH ‘‘(C) REPAYMENT.—The repayment of an 1 advance under subparagraph (A) shall be amor- 2 tized for a period of not more than 10 years. 3 ‘‘(8) SPECIAL ADVANCE FOR START-UP ACTIVI- 4 TIES.— 5 ‘‘(A) IN GENERAL.—In providing a loan to 6 an eligible entity under paragraph (1), a State 7 or Indian tribe may provide a special advance 8 on request of the eligible entity for assistance in 9 defraying the start-up costs of the eligible enti- 10 ty, as determined by the State or Indian tribe, 11 as applicable, of providing loans to qualified 12 consumers under subsection (f). 13 ‘‘(B) LIMITATION.—A special advance 14 shall be provided to an eligible entity under 15 subparagraph (A) only during the 10-year pe- 16 riod beginning on the date on which the loan is 17 issued to that eligible entity. 18 ‘‘(C) AMOUNT.—The amount of a special 19 advance provided under subparagraph (A) shall 20 not be greater than 5 percent of the approved 21 loan amount. 22 ‘‘(D) REPAYMENT.—Repayment of a spe- 23 cial advance provided under subparagraph 24 (A)— 25 VerDate Sep 11 2014 22:28 Dec 28, 2019 Jkt 099200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H5514.IH H5514 12 •HR 5514 IH ‘‘(i) shall be required during the 10- 1 year period beginning on the date on which 2 the special advance is made; and 3 ‘‘(ii) may be deferred to the end of the 4 10-year period described in clause (i) at 5 the election of the eligible entity. 6 ‘‘(9) REVOLVING LOAN FUND.— 7 ‘‘(A) IN GENERAL.—As a condition of par- 8 ticipating in the program, a State or Indian 9 tribe shall use the funds repaid to the State or 10 Indian tribe under loans offered under this sub- 11 section to issue new loans under this subsection. 12 ‘‘(B) ADMINISTRATIVE COSTS.—Not more 13 than 10 percent of the repaid funds described 14 in subparagraph (A) may be used for the ad- 15 ministrative cost of issuing new loans from 16 those repaid funds under this subsection. 17 ‘‘(f) LOANS BY ELIGIBLE ENTITIES TO QUALIFIED 18 CONSUMERS.— 19 ‘‘(1) USE OF LOAN.— 20 ‘‘(A) IN GENERAL.—A loan made by an el- 21 igible entity to a qualified consumer using loan 22 funds provided by a State or Indian tribe under 23 subsection (e)— 24 VerDate Sep 11 2014 22:28 Dec 28, 2019 Jkt 099200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\H5514.IH H5514 13 •HR 5514 IH ‘‘(i) shall be used to finance energy ef- 1 ficiency measures for the purpose of de- 2 creasing the energy use or costs of the 3 qualified consumer by an amount that en- 4 sures, to the maximum extent practicable, 5 that the applicable loan term described in 6 subparagraph (B) shall not be an undue fi- 7 nancial burden on the qualified consumer, 8 as determined by the eligible entity; 9 ‘‘(ii) shall not be used to fund pur- 10 chases of, or modifications to, personal 11 property unless the personal property is or 12 becomes attached to real property as a fix- 13 ture; 14 ‘‘(iii) may be used to upgrade a man- 15 ufactured home, regardless of the classi- 16 fication of the home as real or personal 17 [Text truncated for display. 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