S.Amdt. 1456

SA 1456. Mr. MERKLEY submitted an amendment intended to be proposed
to amendment SA 1407 submitted by Ms. Murkowski and intended to be
proposed to the bill S. 2657, to support innovation in advanced
geothermal research and development, and for other purposes; which was
ordered to lie on the table; as follows:

At the end of chapter 1 of subpart A of part I of subtitle
A of title I, add the following:

SEC. 1___. 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.--

[[Page S1427]]

``(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

[[Page S1428]]

``(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 2021 through 2026.
``(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 for Low-Income
Persons 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.''.
______