[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 3102 Introduced in Senate (IS)]
111th CONGRESS
2d Session
S. 3102
To amend the miscellaneous rural development provisions of the Farm
Security and Rural Investment Act of 2002 to authorize the Secretary of
Agriculture to make loans to certain entities that will use the funds
to make loans to consumers to implement energy efficiency measures
involving structural improvements and investments in cost-effective,
commercial off-the-shelf technologies to reduce home energy use.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 10, 2010
Mr. Merkley (for himself, Mrs. Shaheen, Mr. Johnson, Mr. Lugar, Mr.
Bennet, and Mr. Graham) introduced the following bill; which was read
twice and referred to the Committee on Agriculture, Nutrition, and
Forestry
_______________________________________________________________________
A BILL
To amend the miscellaneous rural development provisions of the Farm
Security and Rural Investment Act of 2002 to authorize the Secretary of
Agriculture to make loans to certain entities that will use the funds
to make loans to consumers to implement energy efficiency measures
involving structural improvements and investments in cost-effective,
commercial off-the-shelf technologies to reduce home energy use.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Rural Energy Savings Program Act''.
SEC. 2. RURAL ENERGY SAVINGS PROGRAM.
Title VI of the Farm Security and Rural Investment Act of 2002 (7
U.S.C. 7901 note et seq.) is amended by adding the following new
section:
``SEC. 6407. RURAL ENERGY SAVINGS PROGRAM.
``(a) Purpose.--The purpose of this section is to create and save
jobs by providing loans to qualified consumers that will use the loan
proceeds to implement energy efficiency measures to achieve significant
reductions in energy costs, energy consumption, or carbon emissions.
``(b) Definitions.--In this section:
``(1) Eligible entity.--The term `eligible entity' means--
``(A) any public power district, public utility
district, or similar entity, or any electric
cooperative described in sections 501(c)(12) or
1381(a)(2)(C) of the Internal Revenue Code of 1986,
that borrowed and repaid, prepaid, or is paying an
electric loan made or guaranteed by the Rural Utilities
Service (or any predecessor agency); or
``(B) any entity primarily owned or controlled by
an entity or entities described in subparagraph (A).
``(2) Energy efficiency measures.--The term `energy
efficiency measures' means, for or at property served by an
eligible entity, structural improvements and investments in
cost-effective, commercial off-the-shelf technologies to reduce
home energy use.
``(3) Qualified consumer.--The term `qualified consumer'
means a consumer served by an eligible entity that has the
ability to repay a loan made under subsection (d), as
determined by an eligible entity.
``(4) Qualified entity.--The term `qualified entity' means
a non-governmental, not-for-profit organization that the
Secretary determines has significant experience, on a national
basis, in providing eligible entities with--
``(A) energy, environmental, energy efficiency, and
information research and technology;
``(B) training, education, and consulting;
``(C) guidance in energy and operational issues and
rural community and economic development;
``(D) advice in legal and regulatory matters
affecting electric service and the environment; and
``(E) other relevant assistance.
``(5) Secretary.--The term `Secretary' means the Secretary
of Agriculture, acting through the Rural Utilities Service.
``(c) Loans and Grants to Eligible Entities.--
``(1) Loans authorized.--Subject to paragraph (2), the
Secretary shall make loans to eligible entities that agree to
use the loan funds to make loans to qualified consumers as
described in subsection (d) for the purpose of implementing
energy efficiency measures.
``(2) List, plan, and measurement and verification
required.--
``(A) In general.--As a condition to receiving a
loan or grant under this subsection, an eligible entity
shall--
``(i) establish a list of energy efficiency
measures that is expected to decrease energy
use or costs of qualified consumers;
``(ii) prepare an implementation plan for
use of the loan funds; and
``(iii) provide for appropriate measurement
and verification to ensure the effectiveness of
the energy efficiency loans made by the
eligible entity and that there is no conflict
of interest in the carrying out of this
section.
``(B) Revision of list of energy efficiency
measures.--An eligible entity may update the list
required under subparagraph (A)(i) to account for newly
available efficiency technologies, subject to the
approval of the Secretary.
``(C) Existing energy efficiency programs.--An
eligible entity that, on or before the date of the
enactment of this section or within 60 days after such
date, has already established an energy efficiency
program for qualified consumers may use an existing
list of energy efficiency measures, implementation
plan, or measurement and verification system of that
program to satisfy the requirements of subparagraph (A)
if the Secretary determines the list, plans, or systems
are consistent with the purposes of this section.
``(3) No interest.--A loan under this subsection shall bear
no interest.
``(4) Repayment.--A loan under this subsection shall be
repaid not more than 10 years from the date on which an advance
on the loan is first made to the eligible entity.
``(5) Loan fund advances.--The Secretary shall provide
eligible entities with a schedule of not more than ten years
for advances of loan funds, except that any advance of loan
funds to an eligible entity in any single year shall not exceed
50 percent of the approved loan amount.
``(6) Jump-start grants.--The Secretary shall make grants
available to eligible entities selected to receive a loan under
this subsection in order to assist an eligible entity to defray
costs, including costs of contractors for equipment and labor,
except that no eligible entity may receive a grant amount that
is greater than four percent of the loan amount.
``(d) Loans to Qualified Consumers.--
``(1) Terms of loans.--Loans made by an eligible entity to
qualified consumers using loan funds provided by the Secretary
under subsection (c)--
``(A) may bear interest, not to exceed three
percent, to be used for purposes that include
establishing a loan loss reserve and to offset
personnel and program costs of eligible entities to
provide the loans;
``(B) shall finance energy efficiency measures for
the purpose of decreasing energy usage or costs of the
qualified consumer by an amount such that a loan term
of not more than ten years will not pose an undue
financial burden on the qualified consumer, as
determined by the eligible entity;
``(C) shall not be used to fund energy efficiency
measures made to personal property unless the personal
property--
``(i) is or becomes attached to real
property as a fixture; or
``(ii) is a manufactured home;
``(D) shall be repaid through charges added to the
electric bill of the qualified consumer; and
``(E) shall require an energy audit by an eligible
entity to determine the impact of proposed energy
efficiency measures on the energy costs and consumption
of the qualified consumer.
``(2) Contractors.--In addition to any other qualified
general contractor, eligible entities may serve as general
contractors.
``(e) Contract for Measurement and Verification, Training, and
Technical Assistance.--
``(1) Contract required.--Not later than 60 days after the
date of enactment of this section, the Secretary shall enter
into one or more contracts with a qualified entity for the
purposes of--
``(A) providing measurement and verification
activities, including--
``(i) developing and completing a
recommended protocol for measurement and
verification for the Rural Utilities Service;
``(ii) establishing a national measurement
and verification committee consisting of
representatives of eligible entities to assist
the contractor in carrying out this section;
``(iii) providing measurement and
verification consulting services to eligible
entities that receive loans under this section;
and
``(iv) providing training in measurement
and verification; and
``(B) developing a program to provide technical
assistance and training to the employees of eligible
entities to carry out this section.
``(2) Use of subcontractors authorized.--A qualified entity
that enters into a contract under paragraph (1) may use
subcontractors to assist the qualified entity in performing the
contract.
``(f) Fast Start Demonstration Projects.--
``(1) Demonstration projects required.--The Secretary shall
enter into agreements with eligible entities (or groups of
eligible entities) that have energy efficiency programs
described in subsection (c)(2)(C) to establish an energy
efficiency loan demonstration projects consistent with the
purposes of this section that--
``(A) implement approaches to energy audits and
investments in energy efficiency measures that yield
measurable and predictable savings;
``(B) use measurement and verification processes to
determine the effectiveness of energy efficiency loans
made by eligible entities;
``(C) include training for employees of eligible
entities, including any contractors of such entities,
to implement or oversee the activities described in
subparagraphs (A) and (B);
``(D) provide for the participation of a majority
of eligible entities in a State;
``(E) reduce the need for generating capacity;
``(F) provide efficiency loans to--
``(i) not fewer than 20,000 consumers, in
the case of a single eligible entity; or
``(ii) not fewer than 80,000 consumers, in
the case of a group of eligible entities; and
``(G) serve areas where a large percentage of
consumers reside--
``(i) in manufactured homes; or
``(ii) in housing units that are more than
50 years old.
``(2) Deadline for implementation.--The agreements required
by paragraph (1) shall be entered into not later than 90 days
after the date of enactment of this section.
``(3) Effect on availability of loans nationally.--Nothing
in this subsection shall delay the availability of loans to
eligible entities on a national basis beginning not later than
180 days after the date of enactment of this section.
``(4) Additional demonstration project authority.--The
Secretary may conduct demonstration projects in addition to the
project required by paragraph (1). The additional demonstration
projects may be carried out without regard to subparagraphs
(D), (F), or (G) of paragraph (1).
``(g) Additional Authority.--The authority provided in this section
is in addition to any authority of the Secretary to offer loans or
grants under any other law.
``(h) Authorization of Appropriations.--
``(1) In general.--There is authorized to be appropriated
to the Secretary in fiscal year 2010 $993,000,000 to carry out
this section. Notwithstanding paragraph (2), amounts
appropriated pursuant to this authorization of appropriations
shall remain available until expended.
``(2) Amounts for loans, grants, staffing.--Of the amounts
appropriated pursuant to the authorization of appropriations in
paragraph (1), the Secretary shall make available--
``(A) $755,000,000 for the purpose of covering the
cost of direct loans to eligible entities under
subsection (c) to subsidize gross obligations in the
principal amount of not to exceed $4,900,000,000;
``(B) $25,000,000 for measurement and verification
activities under subsection (e)(1)(A);
``(C) $2,000,000 for the contract for training and
technical assistance authorized by subsection
(e)(1)(B);
``(D) $200,000,000 for jump-start grants authorized
by subsection (c)(6); and
``(E) $1,100,000 for each of fiscal years 2010
through 2019 for ten additional employees of the Rural
Utilities Service to carry out this section.
``(i) Effective Period.--Subject to subsection (h)(1) and except as
otherwise provided in this section, the loans, grants, and other
expenditures required to be made under this section are authorized to
be made during each of fiscal years 2010 through 2014.
``(j) Regulations.--
``(1) In general.--Except as otherwise provided in this
subsection, not later than 180 days after the date of enactment
of this section, the Secretary shall promulgate such
regulations as are necessary to implement this section.
``(2) Procedure.--The promulgation of the regulations and
administration of this section shall be made without regard
to--
``(A) chapter 35 of title 44, United States Code
(commonly known as the `Paperwork Reduction Act'); and
``(B) the Statement of Policy of the Secretary of
Agriculture effective July 24, 1971 (36 Fed. Reg.
13804), relating to notices of proposed rulemaking and
public participation in rulemaking.
``(3) Congressional review of agency rulemaking.--In
carrying out this section, the Secretary shall use the
authority provided under section 808 of title 5, United States
Code.
``(4) Interim regulations.--Notwithstanding paragraphs (1)
and (2), to the extent regulations are necessary to carry out
any provision of this section, the Secretary shall implement
such regulations through the promulgation of an interim
rule.''.
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