II
111th CONGRESS
2d Session
S. 3434
IN THE SENATE OF THE UNITED STATES
May 27 (legislative day, May 26), 2010
Mr. Bingaman (for himself, Mr. Warner, Mr. Graham, Ms. Snowe, Mr. Merkley, Mr. Brown of Massachusetts, Ms. Stabenow, Mr. Sanders, Mr. Dodd, Mrs. Gillibrand, Mr. Carper, Mr. Pryor, Mr. Begich, Ms. Klobuchar, Ms. Cantwell, and Mr. Harkin) introduced the following bill; which was read twice and referred to the Committee on Finance
A BILL
To provide for the establishment of a Home Star Retrofit Rebate Program, and for other purposes.
Short title; table of contents
Short title
This Act may be cited as the
Home Star Energy Retrofit Act of
2010
.
Table of contents
The table of contents of this Act is as follows:
Sec. 1. Short title; table of contents.
TITLE I—Home star energy retrofits
Sec. 101. Definitions.
Sec. 102. Home Star Retrofit Rebate Program.
Sec. 103. Contractors.
Sec. 104. Rebate aggregators.
Sec. 105. Quality assurance providers.
Sec. 106. Silver Star Home Energy Retrofit Program.
Sec. 107. Gold Star Home Energy Retrofit Program.
Sec. 108. Grants to States and Indian tribes.
Sec. 109. Quality assurance framework.
Sec. 110. Report.
Sec. 111. Administration.
Sec. 112. Treatment of rebates.
Sec. 113. Penalties.
Sec. 114. Home Star Energy Efficiency Loan Program.
Sec. 115. Funding.
TITLE II—Performance based energy improvement tax credits
Sec. 201. Performance based energy improvements for nonbusiness property.
Home star energy retrofits
Definitions
In this title:
Accredited contractor
The term accredited contractor means a residential energy efficiency contractor that meets the minimum applicable requirements established under section 103.
Administrator
The term Administrator means the Administrator of the Environmental Protection Agency.
BPI
The term BPI means the Building Performance Institute.
Certified workforce
The term certified workforce means a residential energy efficiency construction workforce that is entirely certified in the appropriate job skills for all employees performing installation work under—
an applicable third party skills standard established—
by the BPI;
by the North American Technician Excellence;
by the Laborers’ International Union of North America; or
in the State in which the work is to be performed, pursuant to a program operated by the Home Builders Institute in connection with Ferris State University, to be effective beginning on the date that is 30 days after the date notice is provided by those organizations to the Secretary that the program has been established in the State unless the Secretary determines, not later than 30 days after the date of the notice, that the standard or certification is incomplete; or
other standards approved by the Secretary, in consultation with the Secretary of Labor and the Administrator.
Conditioned space
The term conditioned space means the area of a home that is—
intended for habitation; and
intentionally heated or cooled.
DOE
The term DOE means the Department of Energy.
Electric utility
The term electric utility means any person or State agency that delivers or sells electric energy at retail, including nonregulated utilities and utilities that are subject to State regulation and Federal power marketing administrations.
EPA
The term EPA means the Environmental Protection Agency.
Federal Rebate Processing System
The term Federal Rebate Processing System means the Federal Rebate Processing System established under section 102(b).
Gold Star Home Energy Retrofit Program
The term Gold Star Home Energy Retrofit Program means the Gold Star Home Energy Retrofit Program established under section 107.
Home
The term home means a principal residential dwelling unit in a building with no more than 4 dwelling units that—
is located in the United States; and
was constructed before the date of enactment of this Act.
Homeowner
The term homeowner means the resident or non-resident owner of record of a home.
Home Star loan program
The term Home Star loan program means the Home Star energy efficiency loan program established under section 114(a).
Home Star Retrofit Rebate Program
The term Home Star Retrofit Rebate Program means the Home Star Retrofit Rebate Program established under section 102(a).
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. 450b).
Natural gas utility
The term natural gas utility means any person or State agency that transports, distributes, or sells natural gas at retail, including nonregulated utilities and utilities that are subject to State regulation.
Qualified contractor
The term qualified contractor means a residential energy efficiency contractor that meets minimum applicable requirements established under section 103.
Quality assurance framework
The term quality assurance framework means a policy adopted by a State to develop high standards for ensuring quality in ongoing energy efficiency retrofit activities in which the State has a role, including operation of the quality assurance program and creating significant employment opportunities, in particular for targeted workers.
Quality assurance program
In general
The term quality assurance program means a program established under this title or recognized by the Secretary under this title, to oversee the delivery of home efficiency retrofit programs to ensure that work is performed in accordance with standards and criteria established under this title.
Inclusions
For purposes of subparagraph (A), delivery of retrofit programs includes delivery of quality assurance reviews of rebate applications and field inspections for a portion of customers receiving rebates and conducted by a quality assurance provider, with the consent of participating consumers and without delaying rebate payments to participating contractors.
Quality assurance provider
The term quality assurance provider means any entity that meets the minimum applicable requirements established under section 105.
Rebate aggregator
The term rebate aggregator means an entity that meets the requirements of section 104.
RESNET
The term RESNET means the Residential Energy Services Network, which is a nonprofit certification and standard setting organization for home energy raters that evaluate the energy performance of a home.
Secretary
The term Secretary means the Secretary of Energy.
Silver Star Home Energy Retrofit Program
The term Silver Star Home Energy Retrofit Program means the Silver Star Home Energy Retrofit Program established under section 106.
State
The term State means—
a State;
the District of Columbia;
the Commonwealth of Puerto Rico;
Guam;
American Samoa;
the Commonwealth of the Northern Mariana Islands;
the United States Virgin Islands; and
any other territory or possession of the United States.
Vendor
The term vendor means any retailer that sells directly to homeowners and contractors the materials used for the energy savings measures under section 106.
Home Star Retrofit Rebate Program
In general
The Secretary shall establish the Home Star Retrofit Rebate Program.
Federal Rebate Processing System
Requirements
In general
Not later than 30 days after the date of enactment of this Act, the Secretary, in consultation with the Secretary of the Treasury and the Administrator, shall—
establish a Federal Rebate Processing System which shall serve as a database and information technology system that will allow rebate aggregators to submit claims for reimbursement using standard data protocols;
establish a national retrofit website that provides information on the Home Star Retrofit Rebate Program, including—
how to determine whether particular efficiency measures are eligible for rebates; and
how to participate in the program;
make available, on a designated website, model forms for compliance with all applicable requirements of this title, to be submitted by—
each qualified contractor on completion of an eligible home energy retrofit; and
each quality assurance provider on completion of field verification; and
subject to section 115, provide such administrative and technical support to rebate aggregators and States as is necessary to carry out this title.
Distribution of funds
Not later than 10 days after the date of receipt of bundled rebate applications from a rebate aggregator, the Secretary shall distribute funds to the rebate aggregator on approved claims for reimbursement made to the Federal Rebate Processing System.
Funding availability
The Secretary shall post, on a weekly basis, on the national retrofit website established under subparagraph (A)(ii) information on—
the number of rebate claims approved for reimbursement; and
the total amount of funds disbursed for rebates.
Program adjustment or termination
Based on the information described in subparagraph (C), the Secretary shall announce a termination date and reserve funding to process the rebate applications that are in the Federal Rebate Processing System prior to the termination date.
Model forms
In carrying out this section, the Secretary shall consider the model forms developed by the National Home Performance Council.
Administrative and Technical Support
Effective beginning not later than 30 days after the date of enactment of this Act, the Secretary shall provide such administrative and technical support to rebate aggregators and States as is necessary to carry out this title.
Public information campaign
Not later than 60 days after the date of enactment of this Act, the Administrator shall develop and implement a public education campaign that describes, at a minimum—
the benefits of home energy retrofits;
the availability of rebates for—
the installation of qualifying efficiency measures; and
whole home efficiency improvements; and
the requirements for qualified contractors and accredited contractors.
Limitation
Silver Star rebates provided under section 106 and Gold Star rebates provided under section 107 may be provided for the same home only if—
Silver Star rebates are awarded prior to Gold Star rebates;
energy savings obtained from measures under the Silver Star Home Energy Retrofit Program are not counted towards the simulated energy savings that determine the value of a rebate under the Gold Star Home Energy Retrofit Program; and
the combined Silver Star and Gold Star rebates provided to the individual homeowner do not exceed $8,000.
Availability
Not later than 90 days after the date of enactment of this Act, the Secretary shall ensure that Home Star retrofit rebates are available to all homeowners in the United States to the maximum extent practicable.
Contractors
Contractor qualifications for Silver Star Home Energy Retrofit Program
A contractor may perform retrofit work under the Silver Star Home Energy Retrofit Program in a State for which rebates are provided under this title only if the contractor meets or provides—
all applicable contractor licensing requirements established by the State or, if none exist at the State level, the Secretary;
insurance coverage of at least $1,000,000 for general liability, and for such other purposes and in such other amounts as required by the State;
warranties to homeowners that completed work will—
be free of significant defects;
be installed in accordance with the specifications of the manufacturer; and
perform properly for a period of at least 1 year after the date of completion of the work;
an agreement to provide the owner of a home, through a discount, the full economic value of all rebates received under this title with respect to the home; and
an agreement to provide the homeowner, before a contract is executed between the contractor and a homeowner covering the eligible work, a notice of—
the rebate amount the contractor intends to apply for with respect to eligible work under this title; and
the means by which the rebate will be passed through as a discount to the homeowner.
Contractor qualifications for Gold Star Home Energy Retrofit Program
A contractor may perform retrofit work under the Gold Star Home Energy Retrofit Program in a State for which rebates are provided under this title only if the contractor—
meets the requirements for qualified contractors under subsection (a); and
is accredited—
by the BPI; or
under other standards approved by the Secretary, in consultation with the Administrator.
Health and safety requirements
Nothing in this title relieves any contractor from the obligation to comply with applicable Federal, State, and local health and safety code requirements.
Rebate aggregators
In general
The Secretary shall develop a network of rebate aggregators that can facilitate the delivery of rebates to participating contractors and vendors for discounts provided to homeowners for energy efficiency retrofit work.
Responsibilities
Rebate aggregators shall—
review the proposed rebate application for completeness and accuracy;
review measures under the Silver Star Home Energy Retrofit Program and energy savings under the Gold Star Home Energy Retrofit Program for eligibility in accordance with this title;
provide data to the Federal Data Processing Center consistent with data protocols established by the Secretary; and
distribute funds received from DOE to contractors, vendors, or other persons.
Processing Rebate Applications
A rebate aggregator shall—
submit the rebate application to the Federal Rebate Processing Center not later than 10 days after the date of receipt of a rebate application from a contractor; and
distribute funds to the contractor not later than 10 days after the date of receipt from the Federal Rebate Processing System.
Eligibility
To be eligible to apply to the Secretary for approval as a rebate aggregator, an entity shall be—
a Home Performance with Energy Star partner;
an entity administering a residential energy efficiency retrofit program established or approved by a State;
a Federal Power Marketing Administration, an electric utility, or a natural gas utility that has—
an approved residential energy efficiency retrofit program; and
an established quality assurance provider network; or
an entity that demonstrates to the Secretary that the entity can perform the functions of an rebate aggregator, without disrupting existing residential retrofits in the States that are incorporating the Home Star Program, including demonstration of—
corporate status or status as a State or local government;
the capability to provide electronic data to the Federal Rebate Processing System;
a financial system that is capable of tracking the distribution of rebates to participating contractors; and
coordination and cooperation by the entity with the appropriate State energy office regarding participation in the existing energy efficiency programs that will be delivering the Home Star Program.
Application To become a rebate aggregator
Not later than 30 days after the date of receipt of an application of an entity seeking to become a rebate aggregator, the Secretary shall approve or deny the application on the basis of the eligibility criteria under subsection (d).
Application priority
In reviewing applications from entities seeking to become rebate aggregators, the Secretary shall give priority to entities that commit—
to reviewing applications for participation in the program from all qualified contractors within a defined geographic region; and
to processing rebate applications more rapidly than the minimum requirements established under the program.
Public utility commission efficiency targets
The Secretary shall—
develop guidelines for States to use to allow utilities participating as rebate aggregators to count the energy savings from the participation of the utilities toward State-level energy savings targets; and
work with States to assist in the adoption of the guidelines for the purposes and duration of the Home Star Retrofit Rebate Program.
Quality assurance providers
In general
An entity shall be considered a quality assurance provider under this title if the entity—
is independent of the contractor;
confirms the qualifications of contractors or installers of home energy efficiency retrofits;
confirms compliance with the requirements
of a certified workforce
; and
performs field inspections and other measures required to confirm the compliance of the retrofit work under the Silver Star program, and the retrofit work and the simulated energy savings under the Gold Star program, based on the requirements of this title.
Inclusions
An entity shall be considered a quality assurance provider under this title if the entity is qualified through—
the International Code Council;
the BPI;
the RESNET;
a State;
a State-approved residential energy efficiency retrofit program; or
any other entity designated by the Secretary, in consultation with the Administrator.
Silver Star Home Energy Retrofit Program
In general
If the energy efficiency retrofit of a home is carried out after the date of enactment of this Act in accordance with this section, a rebate shall be awarded for the energy retrofit of a home for the installation of energy savings measures—
selected from the list of energy savings measures described in subsection (b);
installed in the home by a qualified contractor not later than 1 year after the date of enactment of this Act;
carried out in compliance with this section; and
subject to the maximum amount limitations established under subsection (d)(4).
Energy savings measures
Subject to subsection (c), a rebate shall be awarded under this section for the installation of the following energy savings measures for a home energy retrofit that meet technical standards established under this section:
Whole house air-sealing measures, in accordance with BPI standards or other procedures approved by the Secretary.
Attic insulation measures that—
include sealing of air leakage between the attic and the conditioned space, in accordance with BPI standards or the attic portions of the DOE or EPA thermal bypass checklist or other procedures approved by the Secretary;
add at least R–19 insulation to existing insulation;
result in at least R–38 insulation in DOE climate zones 1 through 4 and at least R–49 insulation in DOE climate zones 5 through 8, including existing insulation, within the limits of structural capacity; and
cover at least—
100 percent of an accessible attic; or
75 percent of the total conditioned footprint of the house.
Duct seal or replacement that—
is installed in accordance with BPI standards or other procedures approved by the Secretary; and
in the case of duct replacement, replaces and seals at least 50 percent of a distribution system of the home.
Wall insulation that—
is installed in accordance with BPI standards or other procedures approved by the Secretary;
is to full-stud thickness; and
covers at least 75 percent of the total external wall area of the home.
Crawl space insulation or basement wall and rim joist insulation that is installed in accordance with BPI standards or other procedures approved by the Secretary—
covers at least 500 square feet of crawl space or basement wall and adds at least—
R–19 of cavity insulation or R–15 of continuous insulation to existing crawl space insulation; or
R–13 of cavity insulation or R–10 of continuous insulation to basement walls; and
fully covers the rim joist with at least R–10 of new continuous or R–13 of cavity insulation.
Window replacement that replaces at least 8 exterior windows, or 75 percent of the exterior windows in a home, whichever is less, with windows that—
are certified by the National Fenestration Rating Council; and
comply with criteria applicable to windows under section 25(c) of the Internal Revenue Code of 1986.
Door replacement that replaces at least 1 exterior door with doors that comply with criteria applicable to doors under the 2010 Energy Star specification for doors.
Skylight replacement that replaces at least 1 skylight with skylights that comply with criteria applicable to skylights under the 2010 Energy Star specification for skylights.
Heating system replacement with—
a natural gas or propane furnace with an AFUE rating of 92 or greater;
a natural gas or propane boiler with an AFUE rating of 90 or greater;
an oil furnace with an AFUE rating of 86 or greater and that uses an electrically commutated blower motor;
an oil boiler with an AFUE rating of 86 or greater and that has temperature reset or thermal purge controls; or
a wood or wood pellet furnace, boiler, or stove, if—
the new system—
meets at least 75 percent of the heating demands of the home; and
in the case of a wood stove, replaces an existing wood stove with a stove that is EPA-certified, if a voucher is provided by the installer or other responsible party certifying that the old stove has been removed and made inoperable;
the home has a distribution system (such as ducts, vents, blowers, or affixed fans) that allows heat from the wood stove, furnace, or boiler to reach all or most parts of the home; and
an independent test laboratory approved by the Secretary or the Administrator certifies that the new system—
has thermal efficiency (with a lower heating value) of at least 75 percent for stoves and 80 percent for furnaces and boilers; and
has particulate emissions of less than 3.0 grams per hour for wood stoves or pellet stoves, and less than 0.32 lbs per million BTU for outdoor boilers and furnaces.
A rebate may be provided under this section for the replacement of a furnace or boiler described in clauses (i) through (iv) of subparagraph (A) only if the new furnace or boiler is installed in accordance with ANSI/ACCA Standard 5 QI–2007.
Automatic water temperature controllers that vary boiler water temperature in response to changes in outdoor temperature or the demand for heat, if the retrofit is to an existing boiler and not in conjunction with a new boiler.
Air-conditioner or heat-pump replacement with a new unit that—
is installed in accordance with ANSI/ACCA Standard 5 QI–2007; and
meets or exceeds—
in the case of an air-source conditioner, SEER 16 and EER 13;
in the case of an air-source heat pump, SEER 15, EER 12.5, and HSPF 8.5; and
in the case of a geothermal heat pump, Energy Star tier 2 efficiency requirements.
Replacement of or with—
a natural gas or propane water heater with a condensing storage water heater with an energy factor of 0.80 or more or a condensing storage water heater or tankless water heater with a thermal efficiency of 90 percent or more;
a tankless natural gas or propane water heater with an energy factor of at least .82;
a natural gas or propane storage water heater with an energy factor of at least .67;
an indirect water heater with an insulated storage tank that—
has a storage capacity of at least 30 gallons and is insulated to at least R–16; and
is installed in conjunction with a qualifying boiler described in paragraph (7);
an electric water heater with an energy factor of 2.0 or more;
a water heater with a solar hot water system that—
is certified by the Solar Rating and Certification Corporation under specification SRCC–OG–300; or
meets technical standards established by the State of Hawaii; or
a water heater installed in conjunction with a qualifying geothermal heat pump described in paragraph (11) that provides domestic water heating through the use of—
year-round demand water heating capability; or
a desuperheater.
Storm windows that—
are installed on a least 5 single-glazed windows that do not have storm windows;
are installed in a home listed on or eligible for listing in the National Register of Historic Places; and
comply with any procedures that the Secretary may establish for storm windows (including installation).
Roof replacement that replaces at least 75 percent of the roof area with energy-saving roof products certified under the Energy Star program.
Window films that are installed on at least 8 exterior windows, doors, or skylights, or 75 percent of the total exterior square footage of glass, whichever is more, in a home with window films that—
are certified by the National Fenestration Rating Council;
have a Solar Heat Gain Coefficient of 0.40 or less with a visible light-to-solar heat gain ratio of at least 1.1 in 2009 International Energy Conservation Code climate zones 1 through 8; and
are certified to reduce the U-factor of the National Fenestration Rating Council dual pane reference window by 0.05 or greater and are only applied to nonmetal frame dual pane windows in 2009 International Energy Conservation Code climate zones 4 through 8.
Installation costs
Measures described in paragraphs (1) through (15) of subsection (b) shall include expenditures for labor and other installation-related costs (including venting system modification and condensate disposal) properly allocable to the onsite preparation, assembly, or original installation of the component.
Amount of rebate
In general
Except as provided in paragraphs (2) through (4), the amount of a rebate provided under this section shall be $1,000 per measure for the installation of energy savings measures described in subsection (b).
Higher rebate amount
Except as provided in paragraph (4), the amount of a rebate provided to the owner of a home or designee under this section shall be $1,500 per measure for—
attic insulation and air sealing described in subsection (b)(2);
wall insulation described in subsection (b)(4);
a heating system described in subsection (b)(9); and
an air-conditioner or heat-pump replacement described in subsection (b)(11).
Lower rebate amount
Except as provided in paragraph (4), the amount of a rebate provided under this section shall be—
$125 per door for the installation of up to a maximum of 2 Energy Star doors described in subsection (b)(7) for each home;
$125 per skylight for the installation of up to a maximum of 2 Energy Star skylights described in subsection (b)(8) for each home;
$750 for a maximum of 1 natural gas or propane tankless water heater described in subsection (b)(12)(B) for each home;
$450 for a maximum of 1 natural gas or propane storage water heater described in subsection (b)(12)(C) for each home;
$250 for rim joist insulation described in subsection (b)(5)(B);
$50 for each storm window described in subsection (b)(13);
$500 for a desuperheater described in subsection (b)(12)(G)(ii);
$500 for a wood or pellet stove that has a heating capacity of at least 28,000 BTU per hour (using the upper end of the range listed in the EPA list of Certified Wood Stoves) and meets all of the requirements of subsection (b)(9)(v) other than the requirements in items (aa) and (bb) of subsection (b)(9)(v)(I);
$250 for an automatic water temperature controller described in subsection (b)(10);
$500 for a roof described in subsection (b)(14); and
$500 for window films described in subsection (b)(15).
Maximum amount
The total amount of a rebate provided to the owner of a home or designee under this section shall not exceed the lower of—
$3,000;
the sum of the amounts per measure specified in paragraphs (1) through (3);
50 percent of the total cost of the installed measures; or
the reduction in the price paid by the owner of the home, relative to the price of the installed measures in the absence of the Silver Star Home Energy Retrofit Program.
Insulation products purchased without installation services
In general
A rebate shall be awarded under this section for attic, wall, or crawl space insulation or air sealing product if—
the product—
qualifies for a credit under section 25C of the Internal Revenue Code of 1986 but is not the subject of a claim for the credit;
is purchased by a homeowner for installation by the homeowner in a home identified by the address of the homeowner;
is identified and attributed to a specific home in a submission by the vendor to a rebate aggregator;
is not part of—
an energy savings measure described in paragraphs (6) through (11) of subsection (b); and
a retrofit for which a rebate is provided under the Gold Star Home Energy Retrofit Program; and
is not part of an energy savings measure described in paragraphs (1) through (5) in subsection (b) for which the homeowner received or will receive contracting services; and
educational material on proper installation of the product is provided to the homeowner, including material on air sealing while insulating.
Amount
A rebate under this subsection shall be awarded in an amount equal to 50 percent of the total cost of the products described in paragraph (1), but not to exceed $250 per home.
Qualification for rebate under Silver Star Home Energy Retrofit Program
On submission of a claim by a rebate aggregator to the system established under section 104, the Secretary shall provide reimbursement to the rebate aggregator for reduced-cost energy-efficiency measures installed in a home, if—
the measures undertaken for the retrofit are—
eligible measures described on the list established under subsection (b);
installed properly in accordance with applicable technical specifications; and
installed by a qualified contractor;
the amount of the rebate does not exceed the maximum amount described in subsection (d)(4);
not less than—
20 percent of the retrofits performed by each qualified contractor under this section are randomly subject to a third-party field verification of all work associated with the retrofit by a quality assurance provider; or
in the case of qualified contractor that uses a certified workforce, 10 percent of the retrofits performed under this section are randomly subject to a third-party field verification of all work associated with the retrofit by a quality assurance provider; and
the installed measures will be brought into compliance with the specifications and quality standards for the Home Star Retrofit Rebate Program, by the installing qualified contractor, at no additional cost to the homeowner, not later than 14 days after the date of notification of a defect, if a field verification by a quality assurance provider finds that corrective work is needed;
a subsequent quality assurance visit is conducted to evaluate the remedy not later than 7 days after notification by the contractor that the defect has been corrected; and
notification of disposition of the visit occurs not later than 7 days after the date of that visit.
Homeowner complaints
In general
During the 1-year warranty period, a homeowner may make a complaint under the quality assurance program that compliance with the quality assurance requirements of this section has not been achieved.
Verification
In general
The quality assurance program shall provide that, on receiving a complaint under paragraph (1), an independent quality assurance provider shall conduct field verification on the retrofit work performed by the contractor.
Administration
A verification under this paragraph shall be—
in addition to verifications conducted under subsection (f)(3); and
corrected in accordance with subsection (f)(4).
Audits
In general
On making payment for a submission under this section, the Secretary shall review rebate requests to determine whether program requirements were met in all respects.
Incorrect payment
On a determination of the Secretary under paragraph (1) that a payment was made incorrectly to a party, the Secretary may—
recoup the amount of the incorrect payment; or
withhold the amount of the incorrect payment from the next payment made to the party pursuant to a subsequent request.
Gold Star Home Energy Retrofit Program
In general
If the energy efficiency retrofit of a home is carried out after the date of enactment of this Act by an accredited contractor in accordance with this section, a rebate shall be awarded for retrofits that achieve whole home energy savings.
Amount of rebate
Subject to subsection (e), the amount of a rebate provided to the owner of a home or a designee of the owner under this section shall be—
$3,000 for a 20-percent reduction in whole home energy consumption; and
an additional $1,000 for each additional 5-percent reduction up to the lower of—
$8,000; or
50 percent of the total retrofit cost (including the cost of audit and diagnostic procedures).
Energy savings
In general
Reductions in whole home energy consumption under this section shall be determined by a comparison of the simulated energy consumption of the home before and after the retrofit of the home.
Documentation
The percent improvement in energy consumption under this section shall be documented through—
the use of a whole home simulation software program that has been approved as a commercial alternative under 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.); or
a equivalent performance test established by the Secretary, in consultation with the Administrator; or
the use of a whole home simulation software program that has been approved under RESNET Publication No. 06–001 (or a successor publication approved by the Secretary);
an equivalent performance test established by the Secretary; or
a State-certified equivalent rating network, as specified by IRS Notice 2008–35; or
a HERS rating system required by State law.
Monitoring
The Secretary—
shall continuously monitor the software packages used for determining rebates under this section; and
may disallow the use of software programs that improperly assess energy savings.
Assumptions and testing
The Secretary may—
establish simulation tool assumptions for the establishment of the pre-retrofit energy use;
require compliance with software performance tests covering—
mechanical system performance;
duct distribution system efficiency;
hot water performance; or
other measures; and
require the simulation of pre-retrofit energy usage to be bounded by metered pre-retrofit energy usage.
Recommended measures
The simulation tool shall have the ability at a minimum to assess the savings associated with all the measures for which incentives are specifically provided under the Silver Star Home Energy Retrofit Program.
Qualification for rebate under Gold Star Home Energy Retrofit Program
On submission of a claim by a rebate aggregator to the system established under section 104, the Secretary shall provide reimbursement to the rebate aggregator for reduced-cost whole-home retrofits, if—
the retrofit is performed by an accredited contractor;
the amount of the reimbursement is not more than the amount described in subsection (b);
documentation described in subsection (c) is transmitted with the claim;
a home receiving a whole-home retrofit is subject to random third-party field verification by a quality assurance provider in accordance with subsection (e); and
the installed measures will be brought into compliance with the specifications and quality standards for the Home Star Retrofit Rebate Program, by the installing qualified contractor, at no additional cost to the homeowner, not later than 14 days after the date of notification of a defect if a field verification by a quality assurance provider finds that corrective work is needed;
a subsequent quality assurance visit is conducted to evaluate the remedy not later than 7 days after notification by the contractor that the defect has been corrected; and
notification of disposition of the visit occurs not later than 7 days after the date of that visit.
Verification
In general
Subject to paragraph (2), all work installed in a home receiving a whole-home retrofit by an accredited contractor under this section shall be subject to random third-party field verification by a quality assurance provider at a rate of—
15 percent; or
in the case of work performed by an accredited contractor using a certified workforce, 10 percent.
Verification not required
A home shall not be subject to random third-party field verification under this section if—
a post-retrofit home energy rating is conducted by an eligible certifier in accordance with—
RESNET Publication No. 06–001 (or a successor publication approved by the Secretary);
a State-certified equivalent rating network, as specified in IRS Notice 2008–35; or
a HERS rating system required by State law;
the eligible certifier is independent of the qualified contractor or accredited contractor in accordance with RESNET Publication No. 06–001 (or a successor publication approved by the Secretary); and
the rating includes field verification of measures.
Homeowner complaints
In general
A homeowner may make a complaint under the quality assurance program during the 1-year warranty period that compliance with the quality assurance requirements of this section has not been achieved.
Verification
In general
The quality assurance program shall provide that, on receiving a complaint under paragraph (1), an independent quality assurance provider shall conduct field verification on the retrofit work performed by the contractor.
Administration
A verification under this paragraph shall be—
in addition to verifications conducted under subsection (e)(1); and
corrected in accordance with subsection (e).
Audits
In general
On making payment for a submission under this section, the Secretary shall review rebate requests to determine whether program requirements were met in all respects.
Incorrect payment
On a determination of the Secretary under paragraph (1) that a payment was made incorrectly to a party, the Secretary may—
recoup the amount of the incorrect payment; or
withhold the amount of the incorrect payment from the next payment made to the party pursuant to a subsequent request.
Grants to States and Indian tribes
In general
A State or Indian tribe that receives a grant under subsection (d) shall use the grant for—
administrative costs;
oversight of quality assurance plans;
development of ongoing quality assurance framework;
establishment and delivery of financing pilots in accordance with this title;
coordination with existing residential retrofit programs and infrastructure development to assist deployment of the Home Star program;
assisting in the delivery of services to rental units; and
the costs of carrying out the responsibilities of the State or Indian tribe under the Silver Star Home Energy Retrofit Program and the Gold Star Home Energy Retrofit Program.
Initial grants
Not later than 30 days after the date of enactment of this Act, the Secretary shall make the initial grants available under this section.
Indian tribes
The Secretary shall reserve an appropriate amount of funding to be made available to carry out this section for each fiscal year to make grants available to Indian tribes under this section.
State allotments
From the amounts made available to carry out this section for each fiscal year remaining after the reservation required under subsection (c), the Secretary shall make grants available to States in accordance with section 115.
Quality assurance programs
In general
A State or Indian tribe may use a grant made under this section to carry out a quality assurance program that is—
operated as part of 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.);
managed by the office or the designee of the office that is—
responsible for the development of the plan under section 362 of that Act (42 U.S.C. 6322); and
to the maximum extent practicable, conducting an existing energy efficiency program; and
in the case of a grant made to an Indian tribe, managed by an entity designated by the Indian tribe to carry out a quality assurance program or a national quality assurance program manager.
Noncompliance
If the Secretary determines that a State or Indian tribe has not provided or cannot provide adequate oversight over a quality assurance program to ensure compliance with this title, the Secretary may—
withhold further quality assurance funds from the State or Indian tribe; and
require that quality assurance providers operating in the State or by the Indian tribe be overseen by a national quality assurance program manager selected by the Secretary.
Implementation
A State or Indian tribe that receives a grant under this section may implement a quality assurance program through the State, the Indian tribe, or a third party designated by the State or Indian tribe, including—
an energy service company;
an electric utility;
a natural gas utility;
a third-party administrator designated by the State or Indian tribe; or
a unit of local government.
Public-Private partnerships
A State or Indian tribe that receives a grant under this section are encouraged to form partnerships with utilities, energy service companies, and other entities—
to assist in marketing a program;
to facilitate consumer financing;
to assist in implementation of the Silver Star Home Energy Retrofit Program and the Gold Star Home Energy Retrofit Program, including installation of qualified energy retrofit measures; and
to assist in implementing quality assurance programs.
Coordination of rebate and existing State-Sponsored programs
In general
A State or Indian tribe shall, to the maximum extent practicable, prevent duplication through coordination of a program authorized under this title with—
the Energy Star appliance rebates program authorized under the American Recovery and Reinvestment Act of 2009 (Public Law 111–5; 123 Stat. 115); and
comparable programs planned or operated by States, political subdivisions, electric and natural gas utilities, Federal power marketing administrations, and Indian tribes.
Existing programs
In carrying out this subsection, a State or Indian tribe shall—
give priority to—
comprehensive retrofit programs in existence on the date of enactment of this Act, including programs under the supervision of State utility regulators; and
using Home Star funds made available under this title to enhance and extend existing programs; and
seek to enhance and extend existing programs by coordinating with administrators of the programs.
Quality assurance framework
In general
Not later than 180 days after the date that the Secretary initially provides funds to a State under this title, the State shall submit to the Secretary a plan to implement a quality assurance program that covers all federally assisted residential efficiency retrofit work administered, supervised, or sponsored by the State.
Implementation
The State shall—
develop a quality assurance framework in consultation with industry stakeholders, including representatives of efficiency program managers, contractors, and environmental, energy efficiency, and labor organizations; and
implement the quality assurance framework not later than 1 year after the date of enactment of this Act.
Components
The quality assurance framework established under this section shall include—
a requirement that contractors be prequalified in order to be authorized to perform federally assisted residential retrofit work;
maintenance of a list of prequalified contractors authorized to perform federally assisted residential retrofit work; and
minimum standards for prequalified contractors that include—
accreditation;
legal compliance procedures;
proper classification of employees; and
maintenance of records needed to verify compliance;
targets and realistic plans for—
the recruitment of small minority or women-owned business enterprises;
the employment of graduates of training programs that primarily serve low-income populations with a median income that is below 200 percent of the poverty line (as defined in section 673(2) of the Community Services Block Grant Act (42 U.S.C. 9902(2), including any revision required by that section)) by participating contractors; and
a plan to link workforce training for energy efficiency retrofits with training for the broader range of skills and occupations in construction or emerging clean energy industries.
Noncompliance
If the Secretary determines that a State has not taken the steps required under this section, the Secretary shall provide to the State a period of at least 90 days to comply before suspending the participation of the State in the program.
Report
In general
Not later than 1 year after the date of enactment of this Act, 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 on the use of funds under this title.
Contents
The report shall include a description of—
the energy savings produced as a result of this title;
the direct and indirect employment created as a result of the programs supported by the funds provided under this title;
the specific entities implementing the energy efficiency programs;
the beneficiaries who received the efficiency improvements;
the manner in which funds provided under this title were used;
the sources (such as mortgage lenders, utility companies, and local governments) and types of financing used by the beneficiaries to finance the retrofit expenses that were not covered by grants provided under this title;
the results of verification requirements; and
any other information the Secretary considers appropriate.
Noncompliance
If the Secretary determines that a rebate aggregator, State, or Indian tribe has not provided the information required under this section, the Secretary shall provide to the rebate aggregator, State, or Indian tribe a period of at least 90 days to provide any necessary information, subject to penalties imposed by the Secretary for entities other than States and Indian tribes, which may include withholding of funds or reduction of future grant amounts.
Administration
In general
Subject to section 115(b), not later than 30 days after the date of enactment of this Act, the Secretary shall provide such administrative and technical support to rebate aggregators, States, and Indian tribes as is necessary to carry out the functions designated to States under this title.
Appointment of personnel
Notwithstanding the provisions of title 5, United States Code, governing appointments in the competitive service and General Schedule classifications and pay rates, the Secretary may appoint such professional and administrative personnel as the Secretary considers necessary to carry out this title.
Rate of pay
The rate of pay for a person appointed under subsection (a) shall not exceed the maximum rate payable for GS–15 of the General Schedule under chapter 53 of title 5, United States Code.
Consultants
Notwithstanding section 303 of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 253), the Secretary may retain such consultants on a noncompetitive basis as the Secretary considers necessary to carry out this title.
Contracting
In carrying out this title, the Secretary may waive all or part of any provision of the Competition in Contracting Act of 1984 (Public Law 98–369; 98 Stat. 1175), an amendment made by that Act, or the Federal Acquisition Regulation on a determination that circumstances make compliance with the provisions contrary to the public interest.
Regulations
In general
Notwithstanding section 553 of title 5, United States Code, the Secretary may issue regulations that the Secretary, in the sole discretion of the Secretary, determines necessary to carry out the Home Star Retrofit Rebate Program.
Deadline
If the Secretary determines that regulations described in paragraph (1) are necessary, the regulations shall be issued not later than 60 days after the date of the enactment of this Act.
Information collection
Chapter 35 of title 44, United States Code, shall not apply to any information collection requirement necessary for the implementation of the Home Star Retrofit Rebate Program.
Adjustment of rebate amounts
Effective beginning on the date that is 180 days after the date of enactment of this Act, the Secretary may, after not less than 30 days public notice, prospectively adjust the rebate amounts provided in this section based on—
the use of the Silver Star Home Energy Retrofit Program and the Gold Star Home Energy Retrofit Program; and
other program data.
Treatment of rebates
In general
For purposes of the Internal Revenue Code of 1986, rebates received for eligible measures under this title—
shall not be considered taxable income to a homeowner;
shall prohibit the consumer from applying for a tax credit allowed under section 25C, 25D, or 25E of that Code for the same eligible measures performed in the home of the homeowner; and
shall be considered a credit allowed under section 25C, 25D, or 25E of that Code for purposes of any limitation on the amount of the credit under that section.
Notice
In general
A participating contractor shall provide notice to a homeowner of the provisions of subsection (a) before eligible work is performed in the home of the homeowner.
Notice in rebate form
A homeowner shall be notified of the provisions of subsection (a) in the appropriate rebate form developed by the Secretary, in consultation with the Secretary of the Treasury.
Availability of rebate form
A participating contractor shall obtain the rebate form on a designated website in accordance with section 102(b)(1)(A)(iii).
Penalties
In general
It shall be unlawful for any person to violate this title (including any regulation issued under this title), other than a violation as the result of a clerical error.
Civil penalty
Any person who commits a violation of this title shall be liable to the United States for a civil penalty in an amount that is not more than the higher of—
$15,000 for each violation; or
3 times the value of any associated rebate under this title.
Administration
The Secretary may—
assess and compromise a penalty imposed under subsection (b); and
require from any entity the records and inspections necessary to enforce this title.
Fraud
In addition to any civil penalty, any person who commits a fraudulent violation of this title shall be subject to criminal prosecution.
Home Star Energy Efficiency Loan Program
Definitions
In this section:
Eligible participant
The term eligible participant means a homeowner who receives financial assistance from a qualified financing entity to carry out energy efficiency or renewable energy improvements to an existing home or other residential building of the homeowner in accordance with the Gold Star Home Energy Retrofit Program or the Silver Star Home Energy Retrofit Program.
Program
The term program means the Home Star Energy Efficiency Loan Program established under subsection (b).
Qualified financing entity
The term qualified financing entity means a State, political subdivision of a State, tribal government, electric utility, natural gas utility, nonprofit or community-based organization, energy service company, retailer, or any other qualified entity that—
meets the eligibility requirements of this section; and
is designated by the Governor of a State in accordance with subsection (e).
Qualified loan program mechanism
The term qualified loan program mechanism means a loan program that is—
administered by a qualified financing entity; and
principally funded—
by funds provided by or overseen by a State; or
through the energy loan program of the Federal National Mortgage Association.
Establishment
The Secretary shall establish a Home Star Energy Efficiency Loan Program under which the Secretary shall make funds available to States to support financial assistance provided by qualified financing entities for making, to existing homes, energy efficiency improvements that qualify under the Gold Star Home Energy Retrofit Program or the Silver Star Home Energy Retrofit Program.
Eligibility of qualified financing entities
To be eligible to participate in the program, a qualified financing entity shall—
offer a financing product under which eligible participants may pay over time for the cost to the eligible participant (after all applicable Federal, State, local, and other rebates or incentives are applied) of making improvements described in subsection (b);
require all financed improvements to be performed by contractors in a manner that meets minimum standards that are at least as stringent as the standards provided under sections 106 and 107; and
establish standard underwriting criteria to determine the eligibility of program applicants, which criteria shall be consistent with—
with respect to unsecured consumer loan programs, standard underwriting criteria used under the energy loan program of the Federal National Mortgage Association; or
with respect to secured loans or other forms of financial assistance, commercially recognized best practices applicable to the form of financial assistance being provided (as determined by the designated entity administering the program in the State).
Allocation
In making funds available to States for each fiscal year under this section, the Secretary shall use the formula used to allocate funds to States to carry out State energy conservation plans established under part D of title III of the Energy Policy and Conservation Act (42 U.S.C. 6321 et seq.).
Qualified financing entities
Before making funds available to a State under this section, the Secretary shall require the Governor of the State to provide to the Secretary a letter of assurance that the State—
has 1 or more qualified financing entities that meet the requirements of this section;
has established a qualified loan program mechanism that—
includes a methodology to ensure credible energy savings or renewable energy generation;
incorporates an effective repayment mechanism, which may include—
on-utility-bill repayment;
tax assessment or other form of property assessment financing;
municipal service charges;
energy or energy efficiency services contracts;
energy efficiency power purchase agreements;
unsecured loans applying the underwriting requirements of the energy loan program of the Federal National Mortgage Association; or
alternative contractual repayment mechanisms that have been demonstrated to have appropriate risk mitigation features; and
will provide, in a timely manner, all information regarding the administration of the program as the Secretary may require to permit the Secretary to meet the reporting requirements of subsection (h).
Use of funds
Funds made available to States under the program may be used to support financing products offered by qualified financing entities to eligible participants for eligible energy efficiency work, by providing—
interest rate reductions;
loan loss reserves or other forms of credit enhancement;
revolving loan funds from which qualified financing entities may offer direct loans; or
other debt instruments or financial products necessary—
to maximize leverage provided through available funds; and
to support widespread deployment of energy efficiency finance programs.
Use of repayment funds
In the case of a revolving loan fund established by a State described in subsection (f)(3), a qualified financing entity may use funds repaid by eligible participants under the program to provide financial assistance for additional eligible participants to make improvements described in subsection (b) in a manner that is consistent with this section or other such criteria as are prescribed by the State.
Program evaluation
Not later than 1 year after the date of enactment of this Act, the Secretary shall submit to Congress a program evaluation that describes—
how many eligible participants have participated in the program;
how many jobs have been created through the program, directly and indirectly;
what steps could be taken to promote further deployment of energy efficiency and renewable energy retrofits;
the quantity of verifiable energy savings, homeowner energy bill savings, and other benefits of the program; and
the performance of the programs carried out by qualified financing entities under this section, including information on the rate of default and repayment.
Credit support for financing programs
Section 1705 of the Energy Policy Act of 2005 (42 U.S.C. 16516) is amended—
in subsection (a), by adding at the end the following:
Energy efficiency projects, including projects to retrofit residential, commercial, and industrial buildings, facilities, and equipment, including financing programs that finance the retrofitting of residential, commercial, and industrial buildings, facilities, and equipment.
.
by redesignating subsection (e) as subsection (f); and
by inserting after subsection (d) the following:
Credit support for financing programs
In general
In the case of programs that finance the retrofitting of residential, commercial, and industrial buildings, facilities, and equipment described in subsection (a)(4), the Secretary may—
offer loan guarantees for portfolios of debt obligations; and
purchase or make commitments to purchase portfolios of debt obligations.
Term
Notwithstanding section 1702(f), the term of any debt obligation that receives credit support under this subsection shall require full repayment over a period not to exceed the lesser of—
30 years; and
the projected weighted average useful life of the measure or system financed by the debt obligation or portfolio of debt obligations (as determined by the Secretary).
Underwriting
The Secretary may—
delegate underwriting responsibility for portfolios of debt obligations under this subsection to financial institutions that meet qualifications determined by the Secretary; and
determine an appropriate percentage of loans in a portfolio to review in order to confirm sound underwriting.
Administration
Subsections (c) and (d)(3) of section 1702 and subsection (c) of this section shall not apply to loan guarantees made under this subsection.
.
Termination of Effectiveness
The authority provided by this section and the amendments made by this section terminates effective on the date that is 2 years after the date of enactment of this Act.
Funding
Authorization of appropriations
In general
Subject to subsection (j), there is authorized to be appropriated to carry out this title $5,000,000,000 for the period of fiscal years 2010 through 2012.
Maintenance of funding
Funds provided under this section shall supplement and not supplant any Federal and State funding provided to carry out energy efficiency programs in existence on the date of enactment of this Act.
Grants to States
In general
Of the amount provided under subsection (a), $380,000,000 or not more than 6 percent, whichever is less, shall be used to carry out section 108.
Distribution to State energy offices
In general
Not later than 30 days after the date of enactment of this Act, the Secretary shall—
provide to State energy offices 25 percent of the funds described in paragraph (1); and
determine a formula to provide the balance of funds to State energy offices through a performance-based system.
Allocation
Allocation formula
Funds described in subparagraph (A)(i) shall be made available in accordance with the allocation formula for State energy conservation plans established under part D of title III of the Energy Policy and Conservation Act (42 U.S.C. 6321 et seq.).
Performance-based system
The balance of the funds described in subparagraph (A)(ii) shall be made available in accordance with the performance-based system described in subparagraph (A)(ii).
Quality assurance costs
In general
Of the amount provided under subsection (a), not more than 5 percent shall be used to carry out the quality assurance provisions of this title.
Management
Funds provided under this subsection shall be overseen by—
State energy offices described in subsection (b)(2); or
other entities determined by the Secretary to be eligible to carry out quality assurance functions under this title.
Distribution to quality assurance providers or rebate aggregators
The Secretary shall use funds provided under this subsection to compensate quality assurance providers, or rebate aggregators, for services under the Silver Star Home Energy Retrofit Program or the Gold Star Home Energy Retrofit Program through the Federal Rebate Processing Center based on the services provided to contractors under a quality assurance program and rebate aggregation.
Incentives
The amount of incentives provided to quality assurance providers or rebate aggregators shall be—
in the case of the Silver Star Home Energy Retrofit Program—
$25 per rebate review and submission provided under the program; and
$150 for each field inspection conducted under the program; and
in the case of the Gold Star Home Energy Retrofit Program—
$35 for each rebate review and submission provided under the program; and
$300 for each field inspection conducted under the program; or
such other amounts as the Secretary considers necessary to carry out the quality assurance provisions of this title.
Tracking of rebates and expenditures
Of the amount provided under subsection (a), not more than $150,000,000 shall be used for costs associated with database systems to track rebates and expenditures under this title and related administrative costs incurred by the Secretary.
Public education and coordination
Of the amount provided under subsection (a), not more than $10,000,000 shall be used for costs associated with public education and coordination with the Federal Energy Star program incurred by the Administrator.
Indian tribes
Of the amount provided under subsection (a), the Secretary shall reserve not more than 3 percent to make grants available to Indian tribes under this section.
Silver Star Home Energy Retrofit Program
In general
In the case of the Silver Star Home Energy Retrofit Program, of the amount provided under subsection (a) after funds are provided in accordance with subsections (b) through (e), $2,751,000,000 for the 1-year period beginning on the date of enactment of this Act (less any amounts required under subsection (f)) shall be used by the Secretary to provide rebates and incentives authorized under the Silver Star Home Energy Retrofit Program.
Products purchased without installation services
Of the amounts made available for the Silver Star Home Energy Retrofit Program under this section, not more than $250,000,000 shall be made available for rebates under section 106(e).
Gold Star Home Energy Retrofit Program
In the case of the Gold Star Home Energy Retrofit Program, of the amount provided under subsection (a) after funds are provided in accordance with subsections (b) through (e), $1,349,000,000 for the 2-year period beginning on the date of enactment of this Act (less any amounts required under subsection (f)) shall be used by the Secretary to provide rebates and incentives authorized under the Gold Star Home Energy Retrofit Program.
Program review and backstop funding
Review and analysis
In general
Not later than 180 days after the date of enactment of this Act, the Secretary shall perform a State-by-State analysis and review the distribution of Home Star retrofit rebates under this title.
Rental units
Not later than 120 days after the date of enactment of this Act, the Secretary shall perform a review and analysis, with input and review from the Secretary of Housing and Urban Development, of the procedures for delivery of services to rental units.
Adjustment
The Secretary may allocate technical assistance funding to assist States that, as determined by the Secretary—
have not sufficiently benefitted from the Home Star Retrofit Rebate Program; or
in which rental units have not been adequately served.
Return of undisbursed funds
Silver Star Home Energy Retrofit Program
If the Secretary has not disbursed all the funds available for rebates under the Silver Star Home Energy Retrofit Program by the date that is 1 year after the date of enactment of this Act, any undisbursed funds shall be made available to the Gold Star Home Energy Retrofit Program.
Gold Star Home Energy Retrofit Program
If the Secretary has not disbursed all the funds available for rebates under the Gold Star Home Energy Retrofit Program by the date that is 2 years after the date of enactment of this Act, any undisbursed funds shall be returned to the Treasury.
Financing
Of the amounts allocated to the States under subsection (b), not less than $200,000,000 shall be used to carry out the financing provisions of this title in accordance with section 114.
Performance based energy improvement tax credits
Performance based energy improvements for nonbusiness property
In general
Subpart A of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 25D the following new section:
Performance based energy improvements
In general
In the case of an individual, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to 50 percent of the amount of qualified home energy efficiency expenditures paid or incurred by the taxpayer during the taxable year.
Limitations
Dollar limitation
In general
The amount of the credit allowed under subsection (a) with respect to any individual for any taxable year shall not exceed the amount determined under subparagraph (B) with respect to the principal residence of such individual.
Amount determined
In general
Subject to clause (iv), the amount determined under this subparagraph is the base amount increased by the amount determined under clause (iii).
Base amount
For purposes of this subparagraph, the base amount is—
$3,000, in the case of a residence the construction of which is completed before January 1, 2000, and
$2,000, in the case of a residence the construction of which is completed after December 31, 1999.
Increase amount
The amount determined under this clause is—
in the case of a residence described in clause (ii)(I) which has a rating system score equal to the rating system score which corresponds to the IECC Standard Reference Design for a home of the size and in the climate zone of such residence, $1,000, and
in the case of any residence with a rating system score which is lower than that which corresponds to such IECC Standard Reference Design by not less than 5 points, $500 for each 5 points by which the rating system score which corresponds to such IECC Standard Reference Design exceeds the rating system score of such residence (in addition to the amount provided under clause (i), if applicable).
Limitation
In no event shall the amount determined under this subparagraph exceed $8,000 with respect to any individual.
Limitation based on amount of tax
In the case of taxable years to which section 26(a)(2) does not apply, the credit allowed under subsection (a) for any taxable year shall not exceed the excess of—
the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, over
the sum of the credits allowable under this subpart (other than this section and sections 23, 24, and 25B) and section 27 for the taxable year.
Qualified home energy efficiency expenditures
For purposes of this section—
In general
The term qualified home energy efficiency expenditures means any amount paid or incurred for a qualified whole home energy efficiency retrofit, including the cost of audit diagnostic procedures, of a principal residence of the taxpayer which is located in the United States.
Qualified whole home energy efficiency retrofit
In general
The term qualified whole home energy efficiency retrofit means a retrofit of an existing residence if, after such retrofit, such residence—
has a rating system score of not greater than—
100, determined under the HERS Index, in the case of a residence the construction of which is completed before January 1, 2000, and
the rating system score which corresponds to the IECC Standard Reference Design for a home of the size and in the climate zone of such residence, in the case of a residence the construction of which is completed after December 31, 1999, or
achieves a degree of energy efficiency improvement which is equivalent to the standard applicable to such residence under clause (i), as determined by the Secretary.
Accreditation rule
A retrofit shall not be treated as a qualified whole home energy efficiency retrofit unless such retrofit is conducted by a company which is accredited by the Building Performance Institute, or which fulfills an equivalent standard as determined by the Secretary.
Determination of rating system score or equivalent
In general
Subject to clause (ii), the rating system score of a residence, or the equivalent described in subparagraph (A)(ii), shall be determined by an auditor or rater certified by the Residential Energy Services Network or the Building Performance Institute.
Secretarial determination
At the discretion of the Secretary, the Secretary may, in consultation with the Secretary of Energy, determine an alternative standard for certification of an auditor or rater for purposes of determining the rating system score (or equivalent described in subparagraph (A)(ii)) of a residence. If the Secretary establishes such an alternative standard, clause (i) shall cease to apply unless the Secretary determines otherwise.
Regulations
Not later than December 31, 2011, in consultation with the Secretary, the Secretary of Energy shall prescribe regulations which specify the costs with respect to energy improvements which may be taken into account under this paragraph as part of a qualified whole home energy efficiency retrofit.
No double benefit
In general
No credit shall be allowed under this section for any taxable year in which the taxpayer elects the credit under section 25C.
No double benefit for certain expenditures
The term qualified home energy efficiency expenditures shall not include any expenditure for which a deduction or credit is otherwise allowed to the taxpayer under this chapter for the taxable year or with respect to which the taxpayer receives any Federal rebate.
Principal residence
The term principal residence has the same meaning as when used in section 121, except that—
no ownership requirement shall be imposed, and
the period for which a building is treated as used as a principal residence shall also include the 60-day period ending on the 1st day on which it would (but for this subparagraph) first be treated as used as a principal residence.
Rating system score
For purposes of this section—
In general
Subject to paragraph (2), the rating system score shall be the score assigned under the HERS Index established by the Residential Energy Services Network.
Secretarial determination
At the discretion of the Secretary, the Secretary may, in consultation with the Secretary of Energy, determine an alternative rating system (including an alternative system based on the HERS Index established by the Residential Energy Services Network). If the Secretary establishes such an alternative rating system, the rating system score with respect to any residence shall be the score assigned under such alternative rating system.
IECC Standard Reference Design
In general
The term IECC Standard Reference Design means the Standard Reference Design determined under the International Energy Conservation Code in effect for the taxable year in which the credit under this section is determined.
Limitation to residences constructed after effective date of most recent code
No credit shall be allowed under this section with respect to a principal residence the construction of which is completed after the effective date of the International Energy Conservation Code in effect for the taxable year for which such credit would otherwise be determined.
Special rules
For purposes of this section, rules similar to the rules under paragraphs (4), (5), (6), (7), and (8) of section 25D(e) and section 25C(e)(2) shall apply.
Basis adjustments
For purposes of this subtitle, if a credit is allowed under this section with respect to any expenditure with respect to any property, the increase in the basis of such property which would (but for this subsection) result from such expenditure shall be reduced by the amount of the credit so allowed.
Election not To claim credit
This section shall not apply to a taxpayer for any taxable year if such taxpayer elects to have this section not apply for such taxable year.
Termination
This section shall not apply with respect to any costs paid or incurred after December 31, 2013.
.
Conforming amendments
Section 26(a)(1) of the Internal Revenue
Code of 1986 is amended by inserting 25E,
after
25D
.
Section 1016(a) of such Code is amended by
striking and
at the end of paragraph (36), by striking the
period at the end of paragraph (37) and inserting , and
, and by
adding at the end the following new paragraph:
to the extent provided in section 25E(g).
.
Section 6501(m) of such Code is amended by
inserting 25E(h),
after section
.
The table of sections for subpart A of part IV of subchapter A chapter 1 of such Code is amended by inserting after the item relating to section 25D the following new item:
.
Effective date
The amendments made by this section shall apply to amounts paid or incurred in taxable years beginning after December 31, 2010.