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Title 42 — The Public Health and Welfare

Part A · Chapter 81 — Energy Conservation and Resource Renewal

§ 6863. Weatherization program

Statutory text

(a)

Development and conduct of program by Secretary; grants to States and Indian tribal organizations

The Secretary shall develop and conduct, in accordance with the purpose and provisions of this part, a weatherization program. In developing and conducting such program, the Secretary may, in accordance with this part and regulations promulgated under this part, make grants (1) to States, and (2) in accordance with the provisions of subsection (d), to Indian tribal organizations to serve Native Americans. Such grants shall be made for the purpose of providing financial assistance with regard to projects designed to provide for the weatherization of dwelling units, particularly those where elderly or handicapped low-income persons reside, occupied by low-income families.

(b)

Consultation by Secretary with other Federal departments and agencies on development and publication in Federal Register of proposed regulations; required regulatory provisions; standards and procedures; rental units

(1)

The Secretary, after consultation with the Director, the Secretary of Housing and Urban Development, the Secretary of Health and Human Services, the Secretary of Labor, and the heads of such other Federal departments and agencies as the Secretary deems appropriate, shall develop and publish in the Federal Register for public comment, not later than 60 days after , proposed regulations to carry out the provisions of this part. The Secretary shall take into consideration comments submitted regarding such proposed regulations and shall promulgate and publish final regulations for such purpose not later than 90 days after . The development of regulations under this part shall be fully coordinated with the Director.

(2)

The regulations promulgated pursuant to this section shall include provisions—

(A)

prescribing, in coordination with the Secretary of Housing and Urban Development, the Secretary of Health and Human Services, and the Director of the National Institute of Standards and Technology in the Department of Commerce, for use in various climatic, structural, and human need settings, standards for weatherization materials, energy conservation techniques, and balance combinations thereof, which are designed to achieve a balance of a healthful dwelling environment and maximum practicable energy conservation;

(B)

that provide guidance to the States in the implementation of this part, including guidance designed to ensure that a State establishes (i) procedures that provide protection under paragraph (5) to tenants paying for energy as a portion of their rent, and (ii) a process for monitoring compliance with its obligations pursuant to this part; and

(C)

that secure the Federal investment made under this part and address the issues of eviction from and sale of property receiving weatherization materials under this part.

(3)

The Secretary, in coordination with the Secretaries and Director described in paragraph (2)(A) and the Secretary of Agriculture, shall develop and publish in the Federal Register for public comment, not later than 60 days after , proposed amendments to the regulations prescribed under paragraph (1). Such amendments shall provide that the standards described in paragraph (2)(A) shall include a set of procedures to be applied to each dwelling unit to determine the optimum set of cost-effective measures, within the cost guidelines set for the program, to be installed in such dwelling unit. Such standards shall, in order to achieve such optimum savings of energy, take into consideration the following factors—

(A)

the cost of the weatherization material;

(B)

variation in climate; and

(C)

the value of energy saved by the application of the weatherization material.

Such standards shall be utilized by the Secretary in carrying out this part, and by the Secretary of Agriculture in carrying out the weatherization program under section 1474(c) of this title. The Secretary shall take into consideration comments submitted regarding such proposed amendment and shall promulgate and publish final amended regulations not later than 120 days after .

(4)

The Secretary may amend the regulations prescribed under paragraph (1) to provide that the standards described in paragraph (2)(A) take into consideration improvements in the health and safety of occupants of dwelling units, and other non-energy benefits, from weatherization.

(5)

In carrying out paragraphs (2)(A) and (3), the Secretary shall establish the standards and procedures described in such paragraphs so that weatherization efforts being carried out under this part and under programs described in the fourth sentence of paragraph (3) will accomplish uniform results among the States in any area with a similar climatic condition.

(6)

In any case in which a dwelling consists of a rental unit or rental units, the State, in the implementation of this part, shall ensure that—

(A)

the benefits of weatherization assistance in connection with such rental units, including units where the tenants pay for their energy through their rent, will accrue primarily to the low-income tenants residing in such units;

(B)

for a reasonable period of time after weatherization work has been completed on a dwelling containing a unit occupied by an eligible household, the tenants in that unit (including households paying for their energy through their rent) will not be subjected to rent increases unless those increases are demonstrably related to matters other than the weatherization work performed;

(C)

the enforcement of subparagraph (B) is provided through procedures established by the State by which tenants may file complaints and owners, in response to such complaints, shall demonstrate that the rent increase concerned is related to matters other than the weatherization work performed; and

(D)

no undue or excessive enhancement will occur to the value of such dwelling units.

(7)

As a condition of having assistance provided under this part with respect to multifamily buildings, a State may require financial participation from the owners of such buildings.

(c)

Failure of State to submit application; alternate application by any unit of general purpose local government or community action agency; submission of amended application by State

If a State does not, within 90 days after the date on which final regulations are promulgated under this section, submit an application to the Secretary which meets the requirements set forth in section 6864 of this title, any unit of general purpose local government of sufficient size (as determined by the Secretary), or a community action agency carrying out programs under title II of the Economic Opportunity Act of 1964 [42 U.S.C. 2781 et seq.], may, in lieu of such State, submit an application (meeting such requirements and subject to all other provisions of this part) for carrying out projects under this part within the geographical area which is subject to the jurisdiction of such government or is served by such agency. A State may, in accordance with regulations promulgated under this part, submit an amended application.

(d)

Direct grants to low-income members of Indian tribal organizations or alternate service organizations; application for funds

(1)

Reservation of amounts

(A)

In general

Subject to subparagraph (B) and notwithstanding any other provision of this part, the Secretary shall reserve from amounts that would otherwise be allocated to a State under this part not less than 100 percent, but not more than 150 percent, of an amount which bears the same proportion to the allocation of that State for the applicable fiscal year as the population of all low-income members of an Indian tribe in that State bears to the population of all low-income individuals in that State.

(B)

Restrictions

Subparagraph (A) shall apply only if—

(i)

the tribal organization serving the low-income members of the applicable Indian tribe requests that the Secretary make a grant directly; and

(ii)

the Secretary determines that the low-income members of the applicable Indian tribe would be equally or better served by making a grant directly than a grant made to the State in which the low-income members reside.

(C)

Presumption

If the tribal organization requesting the grant is a tribally designated housing entity (as defined in section 4103 of title 25) that has operated without material audit exceptions (or without any material audit exceptions that were not corrected within a 3-year period), the Secretary shall presume that the low-income members of the applicable Indian tribe would be equally or better served by making a grant directly to the tribal organization than by a grant made to the State in which the low-income members reside.

(2)

Administration

The amounts reserved by the Secretary under this subsection shall be granted to the tribal organization serving the low-income members of the Indian tribe, or, where there is no tribal organization, to such other entity as the Secretary determines has the capacity to provide services pursuant to this part.

(3)

Application

In order for a tribal organization or other entity to be eligible for a grant for a fiscal year under this subsection, it shall submit to the Secretary an application meeting the requirements set forth in section 6864 of this title.

(e)

Transfer of funds

Notwithstanding any other provision of law, the Secretary may transfer to the Director sums appropriated under this part to be utilized in order to carry out programs, under section 222(a)(12) of the Economic Opportunity Act of 1964 [42 U.S.C. 2809(a)(12)], which further the purpose of this part.

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

  1. Energy Conservation in Existing Buildings Act of 1976

    Pub. L. 94–385 title IV § 413 · 90 Stat. 1125

    Enacted · 42 U.S.C. § 6863

    Pub. L. 94–385, title IV, § 413, Aug. 14, 1976, 90 Stat. 1152

    Source evidence

    Code source credit
    Pub. L. 94–385, title IV, § 413, Aug. 14, 1976, 90 Stat. 1152

    Enacted provision · exact public law section
    Sec. 413. weatherization program (a) The Administrator shall develop and conduct, in accordance with the purpose and provisions of this part, a weatherization Grants. program. In developing and conducting such program, the Administrator may, in accordance with this part and regulations promulgated under this part, make grants (1) to States, and (2) in accordance with the provisions of subsection (d), to Indian tribal organizations to serve Native Americans. Such grants shall be made for the purpose of providing financial assistance with regard to projects designed to provide for the weatherization of dwelling units, particularly those where elderly or handicapped low-income persons reside, in which the head of the household is a low-income person. (b) (1) The Administrator, after consultation with the Director, the Secretary of Housing and Urban Development, the Secretary of Health, Education, and Welfare, the Secretary of Labor, the Director of the ACTION Agency, and the heads of such other Federal departments and agencies as the Administrator deems appropriate, shall develop and publish in the Federal Register for public comment, not later than 60 days after the date of enactment of this part, proposed regulations to carry out the provisions of this part. The Administrator shall take into consideration comments submitted regarding such proposed regulations and shall promulgate and publish’ final regulations for such purpose not later than 90 days after the date of such enactment. The development of regulations under this part shall be fully coordinated with the Director. (2) The regulations promulgated pursuant to this section shall include provisions— (A) prescribing, in coordination with the Secretary of Housing and Urban Development, the Secretary of Health, Education, and Welfare, and the Director of the National Bureau of Standards in the Department of Commerce, for use in various climatic, structural, and human need settings, standards for weatherization materials, energy conservation techniques, and balanced combinations thereof, which are designed to achieve a balance of a healthful dwelling environment and maximum practicable energy conservation; and (B) designed to ensure that (i) the benefits of weatherization assistance in connection with leased dwelling units will accrue primarily to low-income tenants; (ii) the rents on such dwelling units will not be raised because of any increase in the value thereof due solely to weatherization assistance provided under this part; and (iii) no undue or excessive enhancement will occur to the value of such dwelling units. (c) If a State does not, within 90 days after the date on which Applications, submittal by States. final regulations are promulgated under this section, submit an application to the Administrator which meets the requirements set forth in section 414, any unit of general purpose local government of sufficient size (as determined by the Administrator), or a community action agency carrying out programs under title II of the Economic Opportunity Act of 1964, may, in lieu of such State, submit an application 42 USC 2781. (meeting such requirements and subject to all other provisions of this part) for carrying out projects under this part within the geographical area which is subject to the jurisdiction of such government or is served by such agency. If any such application submitted by a unit of general purpose local government proposes that the allocation requirement and the priority for an applicable community action agency, as set forth under section 415(b)(2)(B), be determined to be no longer applicable, the Administrator, as part of the notice and public hearing procedure carried out under section 418 with respect to such application, shall be responsible for making the necessary determination under the proviso in section 415(b)(2) (B). A State may, in accordance with regulations promulgated under this part, submit an amended application. (d) (1) Notwithstanding any other provision of this part, in any State in which the Administrator determines (after having taken into account the amount of funds made available to the State to carry out the purposes of this part) that the low-income members of an Indian tribe are not receiving benefits under this part that are equivalent to the assistance provided to other low-income persons in such State under this part, and if he further determines that the members of such tribe would be better served by means of a grant made directly to provide such assistance, he shall reserve from sums that would otherwise be allocated to such State under this part not less than 100 percent, nor more than 150 percent, of an amount which bears the same ratio to the State’s allocation for the fiscal year involved us the population of all low-income Indians for whom a determination under this subsection has been made bears to the population of all low-income persons in such State. (2) The sums reserved by the Administrator on the basis of his determination under this subsection shall be granted to the tribal organization serving the individuals for whom such a determination has been made, or, where there is no tribal organization, to such other entity as he determines has the capacity to provide services pursuant to this part. (3) In order for a tribal organization or other entity to be eligible for a grant for a fiscal year under this subsection, it shall submit to the Administrator an application meeting the requirements set forth in section 414. (e) Notwithstanding any other provision of law, the Administrator may transfer to the Director sums appropriated under this part to be utilized in order to carry out programs, under section 222(a) (12) of 42 USC 2809. the Economic Opportunity Act of 1964, which further the purpose of this part.

  2. Pub. L. 95–619 § 231(a)(2) · 92 Stat. 3206

    Substituted · 42 U.S.C. § 6863(a)

    Pub. L. 95–619, § 231(a)(2), substituted “occupied by low-income families” for “in which the head of the household is a low-income person”

    Source evidence

    Code amendment note
    Subsec. (a). Pub. L. 95–619, § 231(a)(2), substituted “occupied by low-income families” for “in which the head of the household is a low-income person”.

    Enacted provision · exact public law section
    (2) The last sentence of section 413(a) of such Act is amended by striking out “in which the head of the household is a low-income person.” and inserting in lien thereof “occupied by low-income families.”.

  3. Pub. L. 95–619 § 231(b)(1) · 92 Stat. 3206

    Added · 42 U.S.C. § 6863(b)(3)

    Pub. L. 95–619, § 231(b)(1), added par. (3)

    Source evidence

    Code amendment note
    Subsec. (b)(3). Pub. L. 95–619, § 231(b)(1), added par. (3).

    Enacted provision · exact public law section
    (1) Section 413(b) of such Act is amended by inserting the following new paragraph at the end thereof: “(3) Publication in Federal Register. The Administrator, in coordination with the Secretaries and Director described in paragraph (2) (A) and with the Director of the Community Services Administration and the Secretary of Agriculture, shall develop and publish in the Federal Register for public comment, not later than 60 days after the date of enactment of this paragraph, proposed amendments to the regulations prescribed under paragraph (1). Such amendments shall provide that the standards described in paragraph (2) (A) shall include a set of procedures to be applied to each dwelling unit to determine the optimum set of cost-effective measures, within the cost guidelines set for the program, to be installed in such dwelling unit. Such standards shall, in order to achieve such optimum savings of energy, take into consideration the following factors— “(A) the cost of the weatherization material; “(B) variation in climate; and “(C) the value of energy saved by the application of the weatherization material. Such standards shall be utilized by the Administrator in carrying out this part, the Secretary of Agriculture in carrying out the weatherization program under section 504(c) of the Housing Act of 1949, and the 42 USC 1474. Director of the Community Services Administration in carrying out weatherization programs under section 222(a) (12) of the Economic Opportunity Act of 1964. The Administrator shall take into consideration 42 USC 2809. comments submitted regarding such proposed amendment and shall promulgate and publish final amended regulations not later than 120 days after the date of enactment of this paragraph.”.

  4. Energy Security Act

    Pub. L. 96–294 § 577(2) · 94 Stat. 611

    Substituted · 42 U.S.C. § 6863(a); 42 U.S.C. § 6863(b)(1); 42 U.S.C. § 6863(3)

    Pub. L. 96–294, § 577(2), substituted “Secretary” for “Administrator” wherever appearing

    Source evidence

    Code amendment note
    Subsecs. (a), (b)(1), (3). Pub. L. 96–294, § 577(2), substituted “Secretary” for “Administrator” wherever appearing.

    Enacted provision · exact public law section
    (2) by striking out “Administrator” each time it appears therein and inserting in lieu thereof “Secretary”; and

  5. Energy Security Act

    Pub. L. 96–294 § 574 · 94 Stat. 611

    Added · 42 U.S.C. § 6863(b)(4)

    Pub. L. 96–294, § 574, added par. (4)

    Source evidence

    Code amendment note
    Subsec. (b)(4). Pub. L. 96–294, § 574, added par. (4).

    Enacted provision · exact public law section
    Sec. 574. standards and procedures for the weatherization program Section 413(b) of the Energy Conservation in Existing Buildings Act of 1976 is amended by adding the following new paragraph at the end thereof: “(4) In carrying out paragraphs (2)(A) and (3), the Secretary shall establish the standards and procedures described in such paragraphs so that weatherization efforts being carried out under this part and under programs described in the fourth sentence of paragraph (3) will accomplish uniform results among the States in any area with a similar climatic condition.”.

  6. Energy Security Act

    Pub. L. 96–294 title V · 94 Stat. 611

    1. Substituted · 42 U.S.C. § 6863(c)

      Pub. L. 96–294, §§ 573(b), 577(2), substituted “Secretary” for “Administrator” wherever appearing

    2. Struck · 42 U.S.C. § 6863(c)

      Pub. L. 96–294, §§ 573(b), 577(2), struck out provisions relating to determinations respecting inapplicability of allocation requirement and priority for an applicable community action agency

    Source evidence

    Code amendment note
    Subsec. (c). Pub. L. 96–294, §§ 573(b), 577(2), substituted “Secretary” for “Administrator” wherever appearing, and struck out provisions relating to determinations respecting inapplicability of allocation requirement and priority for an applicable community action agency.

    Enacted provision · exact public law
    TITLE V— SOLAR ENERGY AND ENERGY CONSERVATION Sec. 501. short title This title may be cited as the “Solar Energy 12 USC 3601 note. and Energy Conservation Act of 1980”. Subtitle A— Solar Energy and Energy Conservation Bank Sec. 502. short title This subtitle may be cited as the “Solar Energy and 12 USC 3601 note. Energy Conservation Bank Act”. Sec. 503. purpose It is the purpose of this subtitle to encourage energy 12 USC 3601. conservation and the use of solar energy, and thereby reduce the Nation’s dependence on foreign sources of energy supplies, by establishing a Solar Energy and Energy Conservation Bank (hereafter referred to as the “Bank”). Sec. 504. definitions For purposes of this subtitle— (1) the term “Board” means the Board of Directors of the Bank, which is established pursuant to section 506(a); (2) the term “residential building” means any building used as a residence which contains not more than 4 dwelling units and has a system for heating or cooling, or both; (3) the term “multifamily residential building” means any building used as a residence which contains 5 or more dwelling units and has a system for heating or cooling, or both; (4) the term “commercial building” means any building other than a residential, or multifamily residential, building which is used primarily to carry on a business (including any nonprofit business) and is not used primarily for the manufacture or production of raw materials, products, or agricultural commodities; (5) the term “agricultural building” means any building used exclusively in connection with the production, harvesting, storage, or drying of agricultural commodities; (6) the term “residential energy conserving improvements” means, with respect to a residential, or multifamily residential, building— (A) caulking and weatherstripping; (B) furnace efficiency modifications including— (i) replacement burners, furnaces, boilers, or any combination thereof which, as determined by the Board, substantially increases the energy efficiency of the heating system; (ii) devices for modifying flue openings which will increase the energy efficiency of the heating system; and (iii) electrical or mechanical furnace ignition systems which replace standing gas pilot lights; (C) clock thermostats; (D) ceiling, attic, wall, floor, and duct insulation; (E) water heater insulation; (F) storm windows and doors, multiglazed windows and doors, heat-absorbing or heat-reflecting window and door materials; (G) devices associated with load management techniques; (H) such other improvements (not including solar energy systems) as the Board by rule identifies for purposes of this subtitle; and (I) planning and technical services, any residential energy audit, and any conversion from master utility meters to individual utility meters, which are directly related to and undertaken with the installation of any of the items specified in subparagraphs (B) through (H); (7) the term “commercial energy conserving improvements” means the installation or the modification of an installation which is designed primarily to reduce the consumption of petroleum, natural gas, or electrical power in a commercial or agricultural building, including— (A) caulking and weatherstripping; (B) the insulation of the building structure and any systems within the building; (C) storm windows and doors, multiglazed windows and doors, heat-absorbing or heat-reflecting window and door systems, glazing, reductions in glass area, and other window and door system modifications; (D) automatic energy control systems; (E) equipment, associated with automatic energy control systems, which is required to operate variable steam, hydraulic, and ventilating systems; (F) furnace, or utility plant and distribution system, modifications including— (i) replacement burners, furnaces, boilers, or any combination thereof, which (as determined by the Board) substantially increases the energy efficiency of the heating system; (ii) devices for modifying flue openings which will increase the energy efficiency of the heating system; and (iii) electrical or mechanical furnace ignition systems which replace standing gas pilot lights; (G) replacement or modification of a lighting system which increases the energy efficiency of the lighting system without increasing the overall illumination of the building (unless the increase in illumination is necessary to conform to any applicable State or local law or the increase is considered appropriate by the Board); (H) energy recovery systems; (I) cogeneration systems which produce electricity, as well as steam or other forms of thermal or mechanical energy, and which meet such fuel efficiency requirements as the Board may by rule prescribe; (J) such other improvements (not including solar energy systems) as the Board identifies, by rule, for purposes of this subtitle; and (K) planning and technical services, and any commercial energy audit, which are directly related to and undertaken with the installation, or the modification of an installation, which includes any of the items specified in subparagraphs (B) through (J). (8) the term “solar energy system” means, with respect to a building, any addition, alteration, or improvement which is designed to utilize wind energy, energy produced by a wood-burning appliance, or solar energy, either of the active type based on mechanically forced energy transfer or of the passive type based on convective, conductive, or radiant energy transfer (or some combination of these types), to reduce the energy requirements of the building, and which is in conformity with such criteria and standards as shall be prescribed by the Board in consultation with the Secretary of Housing and Urban Development, the Secretary of Energy, and the National Institute of Building Sciences, except that such term shall include solar process heat devices, solar electric devices, and any earth sheltered building where such sheltering substantially reduces the energy requirements of such building from nonrenewable energy sources and shall include only those fireplaces which are integral parts of a system which is designed to utilize passive type solar energy; (9) the term “financial institution” means any lender (including any nonprofit entity and any State or local governmental entity) designated by the Board based on the qualifications established for the insurance of financial institutions under section 2 of title I of the National Housing Act, or any utility 12 USC 1703. providing financing for the purchase and installation of residential energy conservation measures in accordance with the requirements of title II of the National Energy Conservation Policy Act; (10) the term “residential energy audit” means— (A) an inspection or energy audit of a residential, or multifamily residential, building, or a dwelling unit in such building, performed for purposes of title II or VII of the 42 USC 8211, post, p. 752. Onsite inspection of residential or multifamily building. National Energy Conservation Policy Act; or (B) an onsite inspection of a residential, or multifamily residential, building, or a dwelling unit in such building, which includes a determination of and provides information on— (i) the type, quantity, and rate of energy consumption of such building or dwelling unit; (ii) energy conserving maintenance and operating procedures which can be employed to significantly reduce the energy consumption of such building or dwelling unit; (iii) in the case of a residential building, a multifamily residential building which does not contain a central heating or cooling system, or a dwelling unit in such building, the cost of purchasing and installing appropriate residential energy conserving improvements, a solar energy system, or both, and the savings in energy costs which are likely to result from the installation of such improvements or system; and (iv) in the case of a multifamily residential building which contains a central heating or cooling system, or a dwelling unit in such building, the need if any, for the purchase and installation of appropriate residential energy conserving improvements, a solar energy system, or both; and (11) the term “commercial energy audit” means— (A) an energy audit performed for purposes of title VII of the National Energy Conservation Policy Act; or (B) an onsite inspection of a commercial or agricultural building which includes a determination of, and provides information on— (i) the type, quantity, and rate of energy consumption of such building; (ii) appropriate energy conserving maintenance and operating procedures which can be employed to significantly reduce the energy consumption of such building; and (iii) the need if any, for the purchase and installation of commercial energy conserving improvements, a solar energy system, or both, in such building. Part 1— Establishment and Operation of the Bank Sec. 505. establishment of the bank (a) There is hereby created the Solar Energy and Energy Conservation Bank which shall be in the Department of Housing and Urban Development and shall have the same powers as those powers given to the Government National Mortgage Association by section 309(a) of the National Housing Act. The Bank shall not exist after September 30, 1987. (b) The General Accounting Office shall audit, not later than the date occurring 2 years after the date of the enactment of this subtitle, and not later than each date occurring 3 years after such audit, the financial transactions of the Bank, and for this purpose shall have access to all of the books, records, and accounts of the Bank. (c) The Bank may impose fees or charges for its services which shall be deposited into the miscellaneous receipts of the Treasury. Sec. 506. board of directors (a) The Bank shall be governed by a Board of Directors. 12 USC 3604. The Board shall consist of the Secretary of Housing and Urban Development, the Secretary of Energy, the Secretary of the Treasury, the Secretary of Agriculture, and the Secretary of Commerce. (b) Three members of the Board shall constitute a quorum. (c) The Chairperson of the Board shall be the Secretary of Housing and Urban Development. (d) The President of the Bank shall be the Secretary of the Board. (e) The Board shall carry out the functions of the Bank as set forth in this subtitle and shall adopt such regulations, subject to the provisions of section 7(o) of the Department of Housing and Urban Development Act (42 U.S.C. 3535(o)), as the Board determines are necessary to carry out such functions. (f) The Board shall provide to the Secretary of the Treasury such information as the Secretary of the Treasury determines is necessary to insure that no individual is allowed for the same expenditure both— (1) a credit against taxes under section 38 or section 44C of the Internal Revenue Code of 1954; and 26 USC 38, 44C. (2) financial assistance under this subtitle. Sec. 507. officers and personnel (a) There is established in the Department of Housing and President of the Bank. 12 USC 3605. Urban Development the position of President of the Bank, which shall be filled by an individual appointed by the President of the United States with the advice and consent of the Senate and which shall be compensated at the rate now or thereafter prescribed for executive level V by section 5316 of title 5, United States Code. 44 FR 58678. (b) The President of the Bank shall appoint an Executive Vice President for Energy Conservation, and an Executive Vice President for Solar Energy, who shall be paid at a rate set by the Board and shall have the functions, powers, and duties prescribed by the President of the Bank. (c) Subject to the direction of the Board, the President of the Bank Functions. shall manage and supervise the affairs of the Bank with the assistance of the Executive Vice Presidents and shall perform any functions of the Bank which the Board may prescribe. (d) The Secretary of Housing and Urban Development may permit the Bank to utilize the services or personnel of the Department of Housing and Urban Development, including the personnel of the Government National Mortgage Association, for the purpose of carrying out this subtitle. Sec. 508. advisory committees (a) As part of the Bank, there is established an Energy Energy Conservation Advisory Committee. Establishment. 12 USC 3606. Conservation Advisory Committee composed of 5 members which shall provide advice to the Board for the purpose of assisting the Bank in carrying out the activities of the Bank which relate to residential and commercial energy conserving improvements. The members of the advisory committee shall be appointed by the Board, from among individuals who are not officers or employees of any governmental entity, as follows: (1) One individual who is able to represent the views of consumers as a result of the individual’s education, training, and experience. (2) One individual who is able to represent the views of financial institutions as a result of the individual’s education, training, and experience. (3) One individual who is able to represent the views of builders as a result of the individual’s education, training, and experience. (4) One individual who is able to represent the views of architectural or engineering interests as a result of the individual’s education, training, and experience. (5) One individual who is able to represent the views of producers or installers of residential and commercial energy conserving improvements as a result of the individual’s education, training, and experience. (b) As part of the Bank, there is established a Solar Energy Advisory Committee composed of 5 members which shall provide advice to the Board for the purpose of assisting the Bank in carrying out the activities of the Bank which relate to solar energy systems. Membership. The members of the advisory committee shall be appointed by the Board, from among individuals who are not officers or employees of any governmental entity, as follows: (1) One individual who is able to represent the views of consumers as a result of the individual’s education, training, and experience. (2) One individual who is able to represent the views of financial institutions as a result of the individual’s education, training, and experience. (3) One individual who is able to represent the views of builders as a result of the individual’s education, training, and experience. (4) One individual who is able to represent the views of architectural or engineering interests as a result of the individual’s education, training, and experience. (5) One individual who is able to represent the views of the solar energy industry as a result of the individual’s education, training, and experience. (c) (1) Except as provided in paragraphs (2) and (3), members of the Energy Conservation Advisory Committee and the Solar Energy Advisory Committee shall be appointed for terms of 2 years, (2) Of the members first appointed, those appointed pursuant to paragraphs (1) and (2) of subsections (a) and (b) shall be appointed for a term of 3 years and those appointed pursuant to paragraphs (3), (4), and (5) of subsections (a) and (b) shall be appointed for a term of 2 years. (3) Any member appointed to fill a vacancy occurring before the expiration of the term for which the member’s predecessor was appointed shall be appointed only for the remainder of such term. A member may serve after the expiration of the member’s term until the member’s successor has taken office. (d) If any member of the Energy Conservation Advisory Committee or the Solar Energy Advisory Committee becomes an officer or employee of any governmental entity, the member may continue as a member of such advisory committee for not longer than the 90-day period beginning on the date the member becomes such an officer or employee. (e) Subject to the availability of appropriations, members of the Energy Conservation Advisory Committee and the Solar Energy Advisory Committee shall each be paid at a rate equal to the daily equivalent of the maximum annual rate of basic pay in effect for grade GS–15 of the General Schedule (5 U.S.C. 5332(a)) for each day 44 FR 58672. (including travel time) during which they are engaged in the actual performance of the duties vested in such advisory committee. (f) Three members of the Energy Conservation Advisory Committee Quorum. shall constitute a quorum, and 3 members of the Solar Energy Advisory Committee shall constitute a quorum, but a lesser number of members of either advisory committee may hold hearings. (g) The Chairperson of the Energy Conservation Advisory Committee and the Chairperson of the Solar Energy Advisory Committee shall each be elected by the members of such advisory committee. (h) The Energy Conservation Advisory Committee and the Solar Termination. Energy Advisory Committee shall not terminate until the Bank ceases to exist. Sec. 509. provision of financial assistance (a) Subject to the conditions contained in sections 513, 514, 12 USC 3607.. and 515 and the limitations contained in sections 516 and 517, the Bank may make payments to financial institutions to provide financial assistance in the form of— (1) reductions of the principal obligations of loans, or portions of loans, made— (A) (i) to owners of, and tenants in, existing residential and multifamily residential buildings for the purchase and installation of residential energy conserving improvements in such buildings; and (ii) to owners who occupy, and tenants in, existing commercial and agricultural buildings for the purchase and installation of commercial energy conserving improvements in such buildings; and (B) (i) to owners of existing residential, multifamily residential, commercial, and agricultural buildings for the purchase and installation of solar energy systems in such buildings; (ii) to builders of newly constructed or substantially rehabilitated residential buildings for the purchase and installation of solar energy systems in such buildings; and (iii) to purchasers of newly constructed or substantially rehabilitated residential, multifamily residential, commercial, and agricultural buildings which have such systems; (2) prepayments of the interest which would otherwise be due with respect to such loans, or portions of loans; and (3) grants to owners of, and tenants in, existing residential buildings and tenants in existing multifamily residential buildings for the purchase and installation of residential energy conserving improvements in such buildings. (b) Financial assistance may be provided under subsection (a) only Conditions. if— (1) the expenditures for residential and commercial energy conserving improvements and solar energy systems, made using financial assistance provided under this subtitle, are made after the date of the enactment of this subtitle; or (2) the financial assistance is provided in the form described in paragraph (1) or (2) of subsection (a) and— (A) the financial assistance is for the purchase and installation of residential or commercial energy conserving improvements; (B) the purchase and installation of residential or commercial energy conserving improvements was financed by a loan made after January 1, 1980, and before the date of the enactment of this subtitle; (C) the financial assistance is provided not later than 90 days after the date of the promulgation by the Board of regulations with respect to such financial assistance; (D) the determination of the amount of the financial assistance pursuant to section 511 is made on the basis of the amount of the principal obligation of the loan outstanding on the date of the provision of such financial assistance; and (E) the owner or tenant receiving such loan has not applied for or received any credit against taxes allowed by section 38 or section 44C of the Internal Revenue Code of 1954 for the expenditures made with the proceeds of such loan, or portion of a loan. (c) The amount of any financial assistance provided under this subtitle shall not be included in the gross income of any person for 26 USC 1 et seq. purposes of the Internal Revenue Code of 1954, and such person shall not receive any increase in basis under the Internal Revenue Code of 1954 which is attributable to the amount of any financial assistance provided under this subtitle. Sec. 510. establishing levels of financial assistance (a) The Board shall establish, from time to time, the various levels of financial assistance which will be made under section 509, subject to the maximum amounts allowed under sections 511 and 512. (b) In establishing such levels the Board shall consider at least— (1) the prevailing market rates of interest for home mortgages, home improvement loans, commercial and agricultural building loans, and Federal Government and corporate bonds; (2) the availability of other Federal incentives and subsidies for energy conservation expenditures and solar energy system expenditures, including Federal tax credits; (3) the costs and efficiencies of nonrenewable energy resources and systems, residential and commercial energy conserving improvements, and solar energy systems; and (4) the levels of financial assistance needed to induce owners and tenants from various income groups to purchase and install residential and commercial energy conserving improvements and solar energy systems in residential, multifamilv residential, commercial, and agricultural buildings and to induce the purchase of newly constructed or substantially rehabilitated buildings which include solar energy systems. Sec. 511. maximum amounts of financial assistance for residential and commercial energy conserving improvements (a) The maximum amount of financial assistance which may be provided to an owner or tenant under this subtitle for the purchase and installation of residential energy conserving improvements in a residential building may not exceed— (1) in the case of an owner or tenant whose income does not exceed an amount equal to 80 percent of the median area income— (A) an amount equal to 50 percent of the cost of the residential energy conserving improvements; or (B) $1,250 in the case of a residential building with one dwelling unit, $2,000 in the case of a residential building with 2 dwelling units, $2,750 in the case of a residential building with 3 dwelling units, or $3,500 in the case of a residential building with 4 dwelling units, whichever is less; (2) in the case of an owner or tenant whose income exceeds an amount equal to 80 percent, but does not exceed an amount equal to 100 percent, of the median area income— (A) an amount equal to 35 percent of the cost of the residential energy conserving improvements; or (B) $875 in the case of a residential building with one dwelling unit, $1,400 in the case of a residential building with 2 dwelling units, $1,925 in the case of a residential building with 3 dwelling units, or $2,450 in the case of a residential building with 4 dwelling units, whichever is less; (3) in the case of an owner or tenant whose income exceeds an amount equal to 100 percent, but does not exceed an amount equal to 120 percent, of the median area income— (A) an amount equal to 30 percent of the cost of the residential energy conserving improvements; or (B) $750 in the case of a residential building with one dwelling unit, $1,200 in the case of a residential building with 2 dwelling units, $1,650 in the case of a residential building with 3 dwelling units, or $2,100 in the case of a residential building with 4 dwelling units, whichever is less; and (4) in the case of an owner or tenant whose income exceeds an amount equal to 120 percent, but does not exceed an amount equal to 150 percent, of the median area income— (A) an amount equal to 20 percent of the cost of the residential energy conserving improvements; or (B) $500 in the case of a residential building with one dwelling unit, $800 in the case of a residential building with 2 dwelling units, $1,100 in the case of a residential building with 3 dwelling units, or $1,440 in the case of a residential building with 4 dwelling units, whichever is less. (b) The maximum amount of financial assistance which may be provided to an owner or tenant under this subtitle for the purchase and installation of residential energy conserving improvements in a multifamily residential building may not exceed— (1) an amount equal to 20 percent of the cost of such improvements; or (2) the sum of $400 times the number of dwelling units in such building in the case of an owner, or $400 in the case of a tenant, whichever is less. (c) The maximum amount of financial assistance which may be provided under this subtitle to an owner of, or tenant in, a commer-cial or agricultural building for the purchase and installation of commercial energy conserving improvements may not exceed an amount equal to 20 percent of the cost of such improvements or $5,000, whichever is less. Sec. 512. maximum amounts of financial assistance for solar energy systems (a) Subject to subsection (d)(2), the maximum amount of financial assistance which may be provided under this subtitle to an owner of an existing residential building for the purchase and installation of a solar energy system in such building, or to a purchaser or builder of a newly constructed or substantially rehabilitated residential building which has such a system, may not exceed— (1) in the case of an owner or purchaser whose income does not exceed an amount equal to 80 percent of the median area income— (A) an amount equal to 60 percent of the cost of the solar energy system; or (B) $5,000 in the case of a residential building with one dwelling unit, $7,500 in the case of a residential building with 2 dwelling units, or $10,000 in the case of a residential building with 3 or 4 dwelling units, whichever is less; (2) in the case of an owner or purchaser whose income exceeds an amount equal to 80 percent, but does not exceed an amount equal to 160 percent of the median area income— (A) an amount equal to 50 percent of the cost of the solar energy system; or (B) $5,000 in the case of a residential building with one dwelling unit, $7,500 in the case of a residential building with 2 dwelling units, or $10,000 in the case of a residential building with 3 or 4 dwelling units, whichever is less; (3) in the case of an owner or purchaser whose income exceeds an amount equal to 160 percent of the median area income— (A) an amount equal to 40 percent of the cost of the solar energy system; or (B) $5,000 in the case of a residential building with one dwelling unit, $7,500 in the case of a residential building with 2 dwelling units, or $10,000 in the case of a residential building with 3 or 4 dwelling units, whichever is less; and (4) in the case of a builder of a residential building— (A) an amount equal to 40 percent of the cost of the solar energy system; or (B) $5,000 in the case of a residential building with one dwelling unit, $7,500 in the case of a residential building with 2 dwelling units, or $10,000 in the case of a residential building with 3 or 4 dwelling units, whichever is less. (b) Subject to subsection (d)(2), the maximum amount of financial assistance which may be provided under this subtitle to an owner of an existing multifamily residential building for the purchase and installation of a solar energy system in such building, or to a purchaser of a newly constructed or substantially rehabilitated multifamily residential building which has such a system, either— (1) may not exceed— (A) an amount equal to 40 percent of the cost of the solar energy system; or (B) the sum of $2,500 times the number of dwelling units in such building, whichever is less; or (2) if the owner or purchaser certifies pursuant to procedures established by the Board that a majority of the dwelling units in such building are occupied by tenants whose income does not exceed an amount equal to 80 percent of the median area income, may not exceed— (A) an amount equal to 60 percent of the cost of the solar energy system; or (B) the sum of $2,500 times the number of dwelling units in such building, whichever is less. (c) Subject to subsection (d)(2), the maximum amount of financial assistance which may be provided under this subtitle to an owner of an existing commercial or agricultural building for the purchase and installation of a solar energy system in such building, or to a purchaser of a newly constructed or substantially rehabilitated commercial or agricultural building which has such a system, may not exceed an amount equal to 40 percent of the cost of the solar energy system or $100,000, whichever is less. (d) In the case of financial assistance provided under this subtitle for the purchase and installation of a solar energy system in a building or for the purchase of a building which has such a system— (1) with respect to any active type solar energy system (subject Active type solar energy system. to the limitations on the maximum amounts of such assistance contained in subsections (a), (b), and (c)) the amount of such assistance provided after January 1, 1983, shall vary by the estimated amount of energy to be saved by the use of such system, unless the Board determines that such variance is not practicable; and (2) with respect to any passive type solar energy system, Passive type solar energy system. (despite the limitations on the maximum amounts of such assistance contained in subsections (a), (b), and (c)) the amount of such assistance shall vary (to the extent practicable) by the estimated amount of energy to be saved by the use of such system, except that the amount of such assistance may not exceed $5,000 in the case of a residential building with one dwelling unit, $7,500 in the case of a residential building with 2 dwelling units, $10,000 in the case of a residential building with 3 or 4 dwelling units, $100,000 in the case of a commercial or agricultural building, or the sum of $2,500 times the number of dwelling units in a multifamily residential building in the case of such a building. Sec. 513. general conditions on financial assistance for loans Financial assistance may be provided by a financial 12 USC 3611. institution under this subtitle with respect to a loan only if— (1) the loan bears a rate of interest acceptable to the Board; (2) the security for the loan meets the requirements of the Board; (3) in the case of prepayment of interest by the Bank with Interest prepayment, waiver. respect to a loan, the financial institution agrees to repay to the Bank that portion of such prepayment which is in excess of the actual interest due on the loan at the time the borrower fails to meet his or her obligation under the loan, except that the Bank may waive the repayment where such excess is minimal; and (4) the borrower agrees to certify to the financial institution that the borrower has used the proceeds of the loan to purchase and install a solar energy system or residential or commercial energy conserving improvements, or to purchase a building with such a system, immediately after such purchase and installation or purchase of a building, which certification shall be made available to the Bank by the financial institution upon the request of the Board. Sec. 514. conditions on financial assistance for residential and commercial energy conserving improvements (a) In addition to the conditions contained in section 513, financial assistance may be provided under this subtitle to an owner or tenant with respect to a loan made for the purchase and installation of residential or commercial energy conserving improvements in a building only if— (1) the term of repayment of the loan is not less than 5 years and does not exceed 15 years, except that the financial institution may establish a shorter term of repayment at the request of the borrower and that there shall be no penalty imposed on the borrower if the loan is repaid before the end of the term of repayment; (2) (A) the manufacturer of such residential or commercial energy conserving improvements shall, in connection with such improvements, warrant in writing that the owner or tenant receiving the proceeds of such loan, the installation contractor who installs the improvements, and the supplier of the improvements shall (for those improvements found within one year from the date of installation to be defective due to materials, manufacture, or design), at a minimum, be entitled to obtain, within a reasonable period of time and at no charge, appropriate replacement parts or materials, (B) the supplier of such residential or commercial energy conserving improvements shall, in connection with such improvements, provide, at a minimum, to the owner or tenant receiving the proceeds of such loan a warranty equivalent to that required under clause (A), and (C) the contractor for the installation of such residential or commercial energy conserving improvements shall, in connection with such improvements, warrant in writing that, at a minimum, any defect in materials, manufacture, design, or installation found within one year from the date of installation shall be remedied without charge and within a reasonable period of time; (3) the residential or commercial energy conserving improvements are installed in a building which was completed before January 1, 1980; (4) in the case of a loan made to a tenant, the owner of such building agrees in writing to the installation of such residential or commercial energy conserving improvements before the making of the loan; (5) in the case of a loan made for the purchase and installation of residential energy conserving improvements, the financial institution informs the borrower before the loan is made of the availability of residential energy audits; (6) in the case of a loan made for the purchase and installation Commercial energy building audit. of commercial energy conserving improvements in a commercial or agricultural building, the borrower submits to the financial institution before the loan is made a copy of a commercial energy audit of such building; (7) in the case of a loan made to an owner of, or tenant in, a residential building, or a tenant in a multifamily residential building, the income of such owner or tenant does not exceed 150 percent of the median area income; and (8) in the case of a loan made to an owner who occupies or a tenant of a commercial or agricultural building, the gross annual sales of such owner or tenant are not more than $1,000,000 during the fiscal year of such owner or tenant preceding the fiscal year in which such loan is made. (b) Financial assistance may be provided by a financial institution Owner or tenant grants. under this subtitle in the form of a grant to an owner or tenant only if— (1) the owner or tenant has income which does not exceed 80 percent of the median area income; (2) the owner or tenant certifies to the financial institution, as prescribed by the Board, that financial resources are available to the owner or tenant which when added to the financial assistance provided under this subtitle will be sufficient to pay the cost of the residential energy conserving improvements purchased and installed with such grant; (3) the total cost of the residential energy conserving improvements to be purchased and installed with such grant exceeds $250; (4) the supplier or contractor who sells or installs the residential energy conserving improvements purchased and installed with such grant is included on a list provided under section 213(a) of the National Energy Conservation Policy Act; Post, p. 742. Warranty. (5) (A) the manufacturer of the residential energy conserving improvements to be purchased and installed with such grant shall, in connection with such improvements, warrant in writing that the owner or tenant receiving such grant, the installation contractor who installs the improvements, and the supplier of the improvements shall (for those improvements found within one year from the date of installation to be defective due to materials, manufacture, or design), at a minimum, be entitled to obtain, within a reasonable period of time and at no charge, appropriate replacement parts or materials, (B) the supplier of such residential energy conserving improvements shall, in connection with such improvements, provide, at a minimum, to the owner or tenant receiving such grant a warranty equivalent to that required under clause (A), and (C) the contractor for the installation of such residential energy conserving improvements shall, in connection with such improvements, warrant in writing that, at a minimum, any defect in materials, manufacture, design, or installation found within one year from the date of installation shall be remedied without charge and within a reasonable period of time; (6) the financial institution informs the owner or tenant of the availability of residential energy audits; (7) in the case of a grant made to a tenant, the owner of the building in which the residential energy conserving improve-ments are to be installed agrees in writing to the installation before the making of the grant; (8) the owner or tenant agrees to certify to the financial institution, immediately after such installation, that such owner or tenant has purchased and installed with the grant residential energy conserving improvements, which certification shall be available to the Bank upon request; and (9) any residential energy conserving improvements purchased and installed with such grant are purchased and installed in a residential, or multifamilv residential, building which was completed before January 1, 1980. Sec. 515. conditions on financial assistance for solar energy systems (a) In addition to the conditions contained in section 513, financial assistance may be provided under this subtitle to an owner or builder with respect to a loan made for the purchase and installation of a solar energy system, or to a purchaser for the purchase of a newly constructed or substantially rehabilitated building with such a system, only if— (1) the term of repayment of the loan— (A) in the case of a residential building, is not less than 5 years in the case of an owner or purchaser, and does not exceed 30 years; or (B) in the case of a multifamily residential building, commercial building, or agricultural building, is not less than 5 years and does not exceed 40 years, except that the financial institution may establish a shorter term of repayment at the request of the borrower and that there shall be no penalty imposed on the borrower if the loan is repaid before the end of the term of repayment; (2) (A) the manufacturer of such solar energy system, shall, in connection with such system, warrant in writing that the owner, builder, or purchaser receiving the proceeds of the loan, the installation contractor who installs the system, and the supplier of the system shall (for those solar energy systems found within 3 years from the date of installation to be defective due to materials, manufacture, or design), at a minimum, be entitled to obtain, within a reasonable period of time and at no charge, appropriate replacement parts or materials, (B) the supplier of such solar energy system shall, in connection with such system, provide, at a minimum, to such owner, builder, or purchaser a warranty equivalent to that required under clause (A), (C) the contractor for the installation of such solar energy system shall, in connection with such system, warrant in writing that, at a minimum, any defect in materials, manufacture, design, or installation found within one year from the date of installation shall be remedied without charge and within a reasonable period of time, and (D) the contractor for the installation of such solar energy system shall provide an onsite inspection of the system and its components for the purpose of discovering and remedying any defects during the 15 day period before the expiration of the warranty under clause (C), if the Board decides to require such an inspection; (3) in the case of a loan made to a purchaser or builder of a newly constructed or substantially rehabilitated residential or multifamily residential building, the purchaser or builder pro-vides certification that the building meets or exceeds the cost-effective energy conservation standards established by the Secretary of Housing and Urban Development, which are in effect on the date of the enactment of this subtitle and as such standards may be revised after such date by the Secretary after consultation with the Board, the Secretary of Energy, the Secretary of Agriculture, the National Institute of Building Sciences, the National Bureau of Standards, and any other Federal agency which is responsible for developing such standards; and (4) in the case of a loan made to an owner of an existing residential building after December 31, 1985, the income of such owner does not exceed an amount equal to 250 percent of the median area income. (b) (1) In addition to the conditions contained in section 513 and subsection (a), financial assistance may be provided by a financial institution to a builder under this subtitle for the purchase and installation of a solar energy system in a residential building only if— (A) the Board determines that— (i) in order to encourage the construction or substantial rehabilitation of a greater number of residential buildings containing solar energy systems it is necessary to provide financial assistance under this subtitle directly to builders; (ii) providing any financial assistance under this subtitle directly to builders is a more effective expenditure of such assistance to encourage the construction or substantial rehabilitation of residential buildings containing solar energy systems than providing such assistance only to the purchasers of such buildings; and (iii) the Board, in consultation with the Secretary of the Additional assistance, prohibition. Treasury, is able to establish a procedure which will prevent the purchaser (who buys the building from the builder) of a residential building for which a builder received financial assistance under this subtitle from receiving additional assistance under this subtitle for the same expenditures for which the builder received assistance and from being allowed a credit against taxes under section 38 or section 44C of the Internal Revenue Code of 1954 for such expenditures; 26 USC 38, 44C. Additional assistance, prohibition. (B) the Board establishes a procedure which prevents the purchaser (who buys the building from the builder) of a residential building for which a builder received financial assistance under this subtitle from receiving additional assistance under this subtitle for the same expenditures for which the builder received assistance and from being allowed a credit against taxes under section 38 or section 44C of the Internal Revenue Code of 1954 for such expenditures; (C) the builder agrees to, and does, disclose to the purchaser (who buys the building from the builder) in writing at the time of signing the sales contract for such building— (i) the expenditures with respect to such building for which the builder received financial assistance under this subtitle; and (ii) that the purchaser may not be allowed a credit against taxes for such expenditures under section 38 or section 44C of the Internal Revenue Code of 1954; and (D) in addition to any other information required by this subtitle to be provided, the builder agrees to, and does, provide to the Bank such information as the Board determines, in consultation with the Secretary of the Treasury, is necessary to assure that the purchaser (who buys the building from the builder) is not allowed a credit against taxes for such expenditures under 26 USC 38, 44C. Subsidized energy financing. section 38, or section 44C, of the Internal Revenue Code of 1954. (2) Any expenditures, made by a builder for the purchase and installation of a solar energy system in a building, for which the builder received financial assistance under this subtitle shall be considered expenditures from subsidized energy financing by the purchaser (who buys such building from the builder) for purposes of section 38 and section 44C of the Internal Revenue Code of 1954. (c) Payments may be made to a utility for the provision of financial assistance under this subtitle for the purchase and installation of a solar energy system only if the financial assistance is used for such purchase and installation in existing buildings. (d) In providing financial assistance with respect to loans for newly constructed and substantially rehabilitated residential buildings with solar energy systems, the Board shall establish a priority for residential buildings which contain at least a solar space heating or cooling system, except in areas or regions of the United States where it is impractical or inefficient to establish such a priority. Sec. 516. limitations on the provision of financial assistance for residential and commercial energy conserving imrpovements (a) An amount equal to not less than 80 percent of the funds appropriated for a fiscal year under the authorization contained in section 522(a) shall be provided during such fiscal year for financial assistance under this subtitle for the purchase and installation of residential energy conserving improvements in residential and multifamily residential buildings. (b) (1) An amount equal to not less than 15 percent of the funds appropriated for a fiscal year under the authorization contained in section 522(a) shall be provided during such fiscal year for financial assistance for the purchase and installation of residential energy conserving improvements in residential buildings owned by individuals whose income is less than 80 percent of the median area income, or in multifamily residential buildings with a majority of the dwelling units occupied by such individuals. (2) Funds made available during any fiscal year for the provision of financial assistance required by paragraph (1) which are not expended during such fiscal year shall be available during the following fiscal year for the provision of any financial assistance under this subtitle for residential and commercial energy conserving improvements. (c) Any failure during any fiscal year to provide the amount of financial assistance required by subsection (a) or subsection (b) shall not delay the provision of other financial assistance under this subtitle. Sec. 517. limitations on the provision of financial assistance for solar energy systems (a) (1) The total amount of all payments made to utilities in any fiscal year for the provision of financial assistance under this subtitle for the purchase and installation of solar energy systems shall not exceed 10 percent of the amount of funds appropriated for such fiscal year under the authorization contained in section 522(b), except that the Board may allow the total amount of such payments to exceed 10 percent of the amount of such funds, but not to exceed 20 percent of the amount of such funds, if the Board determines that it would further the purpose of this subtitle of encouraging the use of solar energy. (2) The total amount of any payments provided to utilities for the provision of financial assistance under this subtitle for the purchase and installation of solar energy systems shall be distributed regionally, among utilities throughout the United States, in a reasonable manner. (b) An amount equal to not less than 70 percent of the funds appropriated for a fiscal year under the authorization contained in section 522(b) shall be provided during such fiscal year for financial assistance under this subtitle for the purchase and installation of solar energy systems in residential and multifamily residential buildings and for the purchase of residential and multifamily residential buildings which have such systems. (c) (1) An amount equal to not less than 5 percent of the funds appropriated for a fiscal year under the authorization contained in section 522(b) shall be provided during such fiscal year for financial assistance under this subtitle for the purchase and installation of solar energy systems in residential buildings owned by individuals whose income is less than 80 percent of the median area income, or in multifamily residential buildings with a majority of the dwelling units occupied by such individuals. (2) Funds made available during any fiscal year for the provision of financial assistance required by paragraph (1) which are not expended during such fiscal year shall be available during the following fiscal year for the provision of any financial assistance under this subtitle for solar energy systems. (d) Any failure during any fiscal year to provide the amount of financial assistance required by subsection (b) or subsection (c) shall not delay the provision of other financial assistance under this subtitle. Sec. 518. promotion (a) The Bank shall promote the program established by 12 USC 3616. this subtitle by informing financial institutions, builders, and consumers of the benefits of this program and by actively seeking their participation in the program. The Bank snail not duplicate any Duplication of activities. promotion or assistance activities undertaken by the Department of Energy, the Department of Housing and Urban Development, or other Federal agencies to encourage greater use of residential and commercial energy conserving improvements and solar energy systems, but shall cooperate with those agencies in— (1) the dissemination of information relating to residential and commercial energy conserving improvements and solar technology and their applicability to new and existing construction; (2) the development and dissemination of reliable appraisal techniques with respect to residential and commercial energy conserving improvements and solar energy systems; (3) the provision of technical assistance to nonprofit entities, low-income groups, and local governments in the use of financial assistance under this subtitle to undertake solar and conservation strategies; and (4) the provision of such other assistance and information as the Board determines is necessary to encourage the use of residential and commercial energy conserving improvements and solar energy systems. (b) The Bank shall seek the advice and assistance of the Federal Home Loan Mortgage Corporation and the Federal National Mortgage Association in coordinating the programs of the Bank with the secondary market for loans used to finance the purchase and installation of residential and commercial energy conserving improvements and solar energy systems. (c) Where possible the Bank shall coordinate its promotional program with promotional and assistance programs undertaken by State, regional, and local governments. (d) The Secretary is authorized to use any available means of communication to accomplish the goals of this section by using the electronic media, print media, and the United States Postal Service. Sec. 519. reports (a) The Board shall submit an annual report, to the Congress and to the President of the United States which includes, among other matters, the views of the President of the Bank, the Energy Conservation Advisory Committee, and the Solar Energy Advisory Committee, with respect to— (1) the operation of the Bank during the previous year; (2) the problems of the energy conservation and solar energy industries, the Federal Government, and financial institutions which may be inhibiting the operation of the Bank or the acceptance by the public of the use of residential and commerical energy conserving improvements and solar energy systems; (3) the cost effectiveness of the program in terms of expenditure, specific residential and commercial energy conserving improvements, and energy savings, using statistically valid samples of the improvements assisted under this subtitle; (4) the relative number of persons from various income groups who have received financial assistance under this subtitle; (5) the total energy savings achieved because of the assistance provided under this subtitle, based on an estimate of such savings using a statistically valid sample; and (6) recommendations for improvements in the operation of the Bank. (b) The Board shall submit to the Congress not later than 2 years after the date of the enactment of this subtitle a report on the limitation on the amount of financial assistance provided to utilities pursuant to section 517(a), including the recommendations of the Board on the continuation of the limitation and the level of such limitation. Sec. 520. rules and regulations As soon as practicable, but not later than 180 days after the date of the enactment of this subtitle, the Board shall issue such final rules and regulations as the Board determines are necessary to carry out this subtitle, including rules and regulations to assure that there will be no fraud in the provision of financial assistance through grants under this subtitle, except that any final rules and regulations with respect to multifamily residential, commercial, or agricultural buildings may be issued later than 180 days after such date but not later than 270 days after such date. Sec. 521. penalties Any person who knowingly makes any false statement or 12 USC 3619. misrepresents any material fact with respect to any financial assistance provided under this subtitle, or fails to make any disclosure or statement required by this subtitle, shall be fined not more than $10,000 or imprisoned not more than one year, or both, for each offense. Sec. 522. funding (a) There is authorized to be appropriated to provide Appropriation authorization. 12 USC 3620. financial assistance under this subtitle for the purchase and installation of residential and commercial energy conserving improvements— (1) the sum of $200,000,000 for the fiscal year ending on September 30, 1981, of which not more than $10,000,000 may be used to carry out section 518; (2) the sum of $625,000,000 for the fiscal year ending on September 30, 1982, of which not more than $7,500,000 may be used to carry out section 518; (3) the sum of $800,000,000 for the fiscal year ending on September 30, 1983, of which not more than $7,500,000 may be used to carry out section 518; and (4) the sum of $875,000,000 for the fiscal year ending on September 30, 1984, of which not more than $7,500,000 may be used to carry out section 518. (b) There is authorized to be appropriated to provide financial Appropriation authorization. assistance under this subtitle for the purchase and installation of solar energy systems— (1) the sum of $100,000,000 for the fiscal year ending on September 30, 1981, of which not more than $10,000,000 may be used to carry out section 518; (2) the sum of $200,000,000 for the fiscal year ending on September 30, 1982, of which not more than $7,500,000 may be used to carry out section 518; and (3) the sum of $225,000,000 for the fiscal year ending on September 30, 1983, of which not more than $7;500,000 may be used to carry out section 518. (c) Any funds appropriated under the authorizations contained in this section shall remain available until expended. Part 2— Secondary Financing Sec. 531. authority of solar energy and energy conservation bank to purchase loans and advances of credit for residential energy cosnerving improvements or solar energy systems (a) Section 315(a) of the Federal National Mortgage Association Charter Act is amended— 12 USC 1723g. (1) by striking out “(1) Whenever” and all that follows through “direct the Association” and inserting in lieu thereof “Unless the Board of Directors of the Solar Energy and Energy Conservation Bank established in section 505 of the Solar Energy and Energy Conservation Bank Act finds it unnecessary to utilize this section Ante, p. 722. in order to advance the national program of energy conservation in residential buildings, the Board shall direct the Bank”; and (2) by striking out paragraph (2). (b) Section 315(b) of such Act is amended— (1) by striking out “Secretary” and “Association” and inserting in lieu thereof “Board” and “Bank”, respectively; and (2) by striking out “which are insured under title I” and all that follows through the period at the end thereof and inserting in lieu thereof the following: “, including loans and advances made by public utilities in accordance with the requirements of 42 USC 8211. title II of the National Energy Conservation Policy Act, which are made for the purpose of financing, in whole or in part, the purchase and installation of residential energy conserving improvements or solar energy systems in residential buildings.”. (c) Section 315(c) of such Act is amended by striking out “Association” and “Association’s” each time they appear and inserting in lieu thereof “Bank” and “Bank’s”, respectively. (d) Section 315(d) of such Act is amended— (1) by inserting “or advance of credit” after “loan” each time it appears; and (2) by striking out “Association” and inserting in lieu thereof (e) Section 315(e) of such Act is amended by striking out “Association” and inserting in lieu thereof “Bank”. (f) Section 315(f) of such Act is amended by striking out “Secretary” and inserting in lieu thereof “Board”. (g) Section 315(g) of such Act is amended— (1) by striking out “and” at the end of paragraph (1); (2) by inserting “residential” before “energy conserving” in paragraph (2); (3) by inserting “or solar energy system” after “improvements” in paragraph (2); (4) by inserting “, in whole or in part,” after “financed” in paragraph (2); (5) by striking out “of this section.” in paragraph (2) and inserting in lieu thereof “of the Solar Energy and Energy Conservation Bank Act;” and; (6) by adding the following new paragraphs after paragraph (2): “(3) the term of repaymen t of such loan or advance of credit is not less than 5 years and not more than 15 years, except that there shall be no penalty imposed if the borrower repays the loan before the established repayment period; “(4) the interest rate charged and the security required with respect to such loan or advance of credit is acceptable to the Board; “(5) the amount of such loan or advance of credit does not exceed $15,000; “(6) the entity from which such loan or advance of credit is purchased agrees to loan or advance credit for the purpose specified in subsection (b) in an amount equal to the amount of the loan or advance of credit which is purchased; and “(7) such loan or advance of credit meets other requirements established by the Board as necessary to carry out this section in an efficient and effective manner.”. (h) Section 315 of such Act is amended by adding the following new subsection at the end thereof: “(h) For purposes of this section and section 316— “(1) the term ‘Bank’ means the Solar Energy and Energy Definitions. Conservation Bank established under section 505 of the Solar Energy and Energy Conservation Bank Act; Ante, p. 722. “(2) the term ‘Board’ means the Board of Directors of the Bank; “(3) the term ‘residential building’ has the meaning given such term in section 504(2) of the Solar Energy and Energy Conservation Bank Act; Ante, p. 719. “(4) the term ‘residential energy conserving improvements’ has the meaning given such term in section 504(6) of the Solar Energy and Energy Conservation Bank Act; and “(5) the term ‘solar energy system’ has the meaning given such term in section 504(8) of the Solar Energy and Energy Conservation Bank Act.”. (i) The section heading of section 315 of such Act is amended to read as follows: “authority of solar energy and energy conservation bank to purchase loans and advances of credit for energy conserving improvements or solar energy sustems”. Sec. 532. authority of solar energy and energy conservation bank to purchase mortgages secured by newly constructed homes with solar energy systems (a) Section 316(a) of the Federal National Mortgage Association Charter Act is amended— 12 USC 1723h. (1) by striking out “The Secretary” and inserting in lieu thereof “;Unless the Board of Directors of the Solar Energy and Energy Conservation Bank established in section 505 of the Solar Energy and Energy Conservation Bank Act finds it unnecessary to utilize this section in order to advance the national program of energy conservation through the use of solar energy systems in residential buildings, the Board”; (2) by striking out “Association” and inserting in lieu thereof “Bank”; and (3) by striking out “loans and advances of credits” and inserting in lieu thereof “mortgages”. (b) Section 316(b) of such Act is amended— (1) by striking out “Secretary”, “Association”, and “loans and advances of credit” in the first sentence and inserting in Lieu thereof “;Board”, “Bank”, and “mortgages”, respectively; (2) by striking out “which are made to owners” in the first sentence and all that follows through the period at the end of such sentence and inserting in lieu thereof “;which are secured by newly constructed one- to four-family dwelling units with solar energy systems and residential energy conserving improvements meeting or exceeding cost-effective energy conservation standards established by the Secretary of Housing and Urban Development.”; (3) by striking out “loan or advance of credit” the first time it appears in the second sentence and inserting in lieu thereof “mortgage”; (4) by striking out “fifteen” in paragraph (1) and inserting in lieu thereof “thirty”; (5) by striking out paragraphs (2) and (3) and inserting in lieu thereof the following new paragraphs: “(2) the interest rate charged with respect to such mortgage is acceptable to the Board; “(3) the principal amount of such mortgage does not exceed the principal amount which could be insured under section 203(b) of 12 USC 1709. the National Housing Act with respect to the dwelling unit concerned;”; (6) by striking out “loan or advance of credit” in paragraphs (1), (4), and (5) and inserting in lieu thereof “mortgage”; (7) by striking out “Secretary” in paragraph (4) and inserting in lieu thereof “, Board”; (8) by striking out “and” at the end of paragraph (5); and (9) by striking out paragraph (6) and inserting in lieu thereof the following new paragraphs: “(6) the dwelling which secures such mortgage is purchased after the date of enactment of the Solar Energy and Energy Conservation Bank Act; and “(7) such mortgage meets other requirements established by the Board as necessary to carry out this section in an efficient and effective manner.”. (c) Section 316(c) of such Act is amended by striking out “Association” and “Association’s” each time they appear and inserting in lieu thereof “Bank” and “Bank’s”, respectively. (d) Section 316(d) of such Act is amended by striking out “loan” and “Association” each time they appear and inserting in lieu thereof “mortgage” and “Bank”, respectively. (e) Section 316(e) of such act is amended by striking out “Association” and “loans and advances of credit” and inserting in lieu thereof “Bank” and “mortgages”, respectively. (f) Section 316(f) of such Act is amended by striking out “Secretary” and “$100,000,000” and inserting in lieu thereof “Board” and “$800,000,000”, respectively. (g) Section 316(g) of such Act is amended by striking out “Secretary”, “Association”, “loans and advances of credit”, “loan or advance”, and “loans and advances” and inserting in lieu thereof “Board”, “Bank”, “mortgages”, “mortgage”, and “mortgages”, respectively. (h) Section 316 of such Act is amended— (1) by striking out subsections (h), (i), and (j); and (2) by striking out the section heading and inserting in lieu thereof the following: “authority of solar energy and energy conservation bank to purchase mortgages secured by newly constructed homes with solar energy systems”. Sec. 533. repeal Section 314 of the Federal National Mortgage Association 12 USC 1723f. Charter Act is repealed. Sec. 534. secondary financing by federal home loan mortgage corporation and by federal national mortgage association (a) (1) Section 305(a)(1) of the Federal Home Loan Mortgage Corporation Act is amended by inserting the following before the period at the end of the first sentence: “or from any public utility carrying out activities in accordance with the requirements of title II of the National Energy Conservation Policy Act if the residential 42 USC 8211. mortgage to be purchased is a loan or advance of credit the original proceeds of which are applied for in order to finance the purchase and installation of residential energy conservation measures (as defined in section 210(11) of the National Energy Conservation Policy Act) in Infra. residential real estate”. (2) Section 302(h) of such Act is amended by inserting “, or made by 12 USC 1451. a public utility and purchased by the Corporation pursuant to the first sentence of section 305(a)(1),” after “credit for such purposes” in Ante, p. 740. the third sentence. (b) Section 302(b)(3) of the Federal National Mortgage Association Charter Act is amended by inserting the following before the period 12 USC 1717. at the end of the first sentence: including loans or advances of credit made, by any public utility carrying out activities in accordance with the requirements of title II of the National Energy Conservation Policy Act, for the purpose of financing the purchase and installation of residential energy conservation measures (as defined in section 210(11) of the National Energy Conservation Policy Act) in a residential building”. Subtitle B— Utility Program Sec. 541. definitions Section 210 of the National Energy Conservation Policy Act is amended by striking out paragraph (9) and inserting in lieu 42 USC 8211. thereof the following: “(9) The term ‘residential building’ means any building used for residential occupancy which— “(A) is not a new building to which final standards under sections 304(a) and 305 of the Energy Conservation and Production Act apply, and 42 USC 6833, 6834. “(B) contains at least one but not more than four dwelling units and has a system for heating or cooling, or both, except that, after January 1, 1982, such term shall also include any building which contains more than four dwelling units unless such building contains a heating or cooling system, or both, which is a central system.”. Sec. 542. state list of suppliers and contractors—required warranty (a) Section 210(11) of the National Energy Conservation Policy Act is amended by striking out the last sentence. 42 USC 8211. 42 USC 8213. (b) Section 212(b) of such Act is amended by striking out “and” at the end of paragraph (2), by redesignating paragraph (3) as paragraph (4), and by inserting the following new paragraph after paragraph (2): “(3) shall include provisions requiring that— “(A) the manufacturer of any residential energy conservation measure offered under a utility program shall, in connection with such measure, warrant in writing that the residential customer for whom the measure is installed, the installation contractor who installs the measure, and the supplier of the measure shall (for those measures found within one year from the date of installation to be defective due to materials, manufacture, or design), at a minimum, be entitled to obtain, within a reasonable period of time and at no charge, appropriate replacement parts or materials; “(B) the supplier of any residential energy conservation measure offered under a utility program shall, in connection with such measure, provide, at a minimum, to any person who purchases the measure from such supplier a warranty equivalent to that required under subparagraph (A); and “(C) the contractor for the installation of any residential energy conservation measure offered under a utility program shall, in connection with such measure, warrant in writing that, at a minimum, any defect in materials, manufacture, design or installation found within one year from the date of installation shall be remedied without charge and within a reasonable period of time; and”. (c) Section 213(a)(2)(B) of such Act is amended by inserting “and who agrees to comply with the provisions promulgated under section Ante, p. 741. 42 USC 8221. 212(b)(3)” after “(E)”. (d) Section 220(d) of such Act is amended to read as follows: “(d) Warranties.— With respect to section 212(b)(3) concerning warranties, all Federal and State laws otherwise applicable to such warranties shall apply, except to the extent inconsistent with such section.”. Sec. 543. state list of financial institutions Section 213(a)(3) of the National Energy Conservation 42 USC 8214. Policy Act is amended by inserting the following before the semicolon at the end thereof: “, and provides that such list shall include a notation informing customers that financial assistance under the Ante, p. 719. Solar Energy and Energy Conservation Bank Act may be available from such lending institutions”. Sec. 544. treatment of utility costs Section 215 of the National Energy Conservation Policy 42 USC 8216. Act is amended— (1) by striking out everything that follows “subsection (b) to be” in subsection (c)(1)(C) and inserting in lieu thereof the following: “recovered in the manner specified by the State regulatory authority which has ratemaking authority over such utility (or in the case of a nonregulated utility in the manner specified by such nonregulated utility); except that the amount that may be recovered directly from a residential customer for whom the activities described in subsection (b) are performed shall not exceed a total of $15 per dwelling unit or the actual cost of such activities, whichever is less; in determining the amount to be recovered directly from customers as provided under this subparagraph, the State regulatory authority (in the case of a regulated utility) or the utility (in the case of a nonregulated utility) shall take into consideration, to the extent practicable, the customers’ ability to pay and the likely levels of participation in the utility program which will result from such recovery.”; (2) by striking out subsection (c)(1)(D); (3) by striking out subsection (c)(2)( A); (4) by striking out “(B)” in subsection (c)(2)(B) and inserting in lieu thereof “(2)(A)”; (5) by striking out “(C)” in subsection (c)(2)(C) and inserting in lieu thereof “(B)”; and (6) by striking out subsection (f) and inserting in lieu thereof the following: “(f) Loans.— In the case of a loan which is arranged by a public utility under subsection (b)(1)(C), the utility, at the request of the person making such loan, shall permit repayment of the loan as part of the periodic utility bill. The utility may recover from the person making such loan the cost incurred by the utility in carrying out such manner of repayment.”. Sec. 545. tax treatment Section 216 of the National Energy Conservation Policy Act is amended by adding the following new subsection at the end 42 USC 8217. thereof: “(i) Tax Treatment.— The value of any subsidy provided by a utility to any residential customer for the purchase and installation of residental energy conservation measures shall not be included in the gross income of such customer for purposes of the Internal Revenue Code of 1954, and such customer shall not receive any 26 USC 1 et seq. increase in basis under the Internal Revenue Code of 1954 which is attributable to any such subsidy.”. Sec. 546. supply, installation, and financing by public utilities (a) Section 216 of the National Energy Conservation Policy Act is amended— 42 USC 8217. (1) by striking out the section heading and inserting in lieu thereof the following: “SEC. 216. SUPPLY AND INSTALLATION BY PUBLIC UTILITIES”; (2) by striking out subsection (a) and inserting in lieu thereof the following: “(a) Prohibition on Supply and Installation by Public Utilities.— Except as provided in this section, no public utility may supply or install a residential energy conservation measure for any residential customer.”; (3) by striking out “(1)” in subsection (b); and (4) by striking out subsection (c) and inserting in lieu thereof the following: “(c) Exemption From Prohibition on Supply and Installation.— (1) The prohibition contained in subsection (a) shall not apply to any residential energy conservation measure supplied or installed by a public utility through contracts between such utility and independent suppliers or contractors where the customer requests such supply or installation and each such supplier or contractor— “(A) is on the list of suppliers and contractors referred to in section 213(a)(2); Ante, p. 742. “(B) is not subject to the control of the public utility, except as to the performance of such contract, and is not an affiliate or a subsidiary of such utility; and “(C) if selected by the utility, is selected in a manner consistent with paragraph (2). “(2) As provided under the provisions described in section 213(b)(2)(D), activities of a public utility under paragraph (1)— “(A) may not involve unfair methods of competition; “(B) may not have a substantial adverse effect on competition in the area in which such activities are undertaken nor result in providing to any supplier or contractor an unreasonably large share of contracts for the supply or installation of residential energy conservation measures; “(C) shall be undertaken in a manner which provides, subject to reasonable conditions the utility may establish to insure the quality of supply and installation of residential energy conservation measures, that any financing by the utility of such measures shall be available to finance supply or installation by any Ante, p. 742. contractor on the lists referred to in section 213(a)(2) or to finance the purchase of such measures to be installed by the customer; “(D) to the extent practicable and consistent with subparagraphs (A), (B), and (C), shall be undertaken in a manner which minimizes the cost of residential energy conservation measures to such customers; and “(E) shall include making available upon request a current estimate of the average price of supply and installation of residential energy conservation measures subject to the contracts entered into by the public utility under paragraph (1).”. (b) Section 213(b)(2) of such Act is amended by striking out “and” at the end of subparagraph (A), by striking out the period at the end of subparagraph (B) and inserting in lieu thereof a semicolon, and by adding at the end thereof the following new subparagraphs: “(C) provisions to assure that, whenever any public utility undertakes to finance its lending program for residential energy conservation measures through financial institutions, the utility shall (to the extent such utility determines feasible, consistent with good business practice, and not disadvantageous to its customers) seek funds for such financing from financial institutions located throughout the area covered by the lending program; and “(D) provisions to assure that, in the case of any residential energy conservation plan which permits or requires any such utility to supply or install any residential energy conservation measure, the procedures under which any such utility undertakes such supply or installation will be consistent with the requirements of section 216(c).” (c) Section 213(a) of such Act is amended by striking out “and” at the end of paragraph (7), by striking out the period at the end of paragraph (8) and inserting in lieu thereof “; and”, and by adding at the end thereof the following new paragraph: “(9) requires any utility undertaking a program involving the supply or installation of any residential energy conservation measure as permitted under section 216(c) or providing financing for the purchase or installation of any such measure to notify the Secretary of Energy when such program becomes effective.” Sec. 547. authority to monitor and terminate supply, installation, and financing by utilities Section 216(g) of the National Energy Conservation Policy 42 USC 8217. Act is amended to read as follows: “(g) Authority To Monitor and Terminate Supply, Installation, or Financing by Utilities.— (1) The Secretary, in consultation with the Federal Trade Commission, shall monitor financing, supply, and installation activities of public utilities in connection with residential energy conservation measures and shall report annually to Congress on such activities. Each such report shall contain the comments of the Federal Trade Commission. “(2) After the date of the enactment of this subsection, no public utility may make any loan or finance the purchase or installation of, or supply or install, any residential energy conservation measure if the Secretary has determined, after notice and opportunity for public hearing, and after consultation with the Federal Trade Commission, that— “(A) such loans are being made, or supply or installations carried out, by such utility at unreasonable rates or on unreasonable terms and conditions, or “(B) such loans made, or supply or installations carried out, by such utility have a substantial adverse effect upon competition or involve the use of unfair, deceptive, or anticompetitive acts or practices or are being carried out in a manner which does not comply with subsection (c).”. Sec. 548. unfair competitive practices Nothing in any amendment made by this subtitle shall be 42 USC 8211 note. construed to— (1) bar any person from taking any action with respect to any anticompetitive act or practice related to activities conducted under any program established under this title; or (2) convey to any person immunity from civil or criminal Liability, create defenses to actions under antitrust laws, or modify or abridge any private right of action under such laws. Sec. 549. effective date (a) The amendments made by this subtitle shall become 42 USC 8211 note. effective on the date of the enactment of this Act. (b) As soon as practicable, but in no event later than 120 days after Rules. such date of enactment, the Secretary shall promulgate rules amending the regulations under section 212 of the National Energy Conservation Policy Act so that the amendments made by this subtitle will Ante, p. 741. be carried out. (c) The provisions of section 218 of the National Energy Conservation Policy Act shall apply with respect to temporary programs 42 USC 8219. proposed under such section after the effective date of this subtitle; except that, for the purposes of the application described in the first sentence of such section, the phrase “180 days after the promulgation of rules pursuant to section 212” shall refer to 180 days after the promulgation of rules required by subsection (b). (d) Nothing in this Act shall nave the effect of delaying the date required for submission and approval or disapproval of residential energy conservation plans meeting the requirements of the National Energy Conservation Policy Act in effect before the enactment of this 42 USC 8201 note. Act. Sec. 550. relationship to other laws Section 220 of the National Energy Conservation Policy Act is amended by adding the following new subsection at the end Ante, p. 742. thereof: “(e) Public Utility Holding Company Act.— For purposes of section H(b)(1) of the Public Utility Holding Company Act of 1935, 15 USC 79k. any financing, supply, or installation of residential energy conserva-tion measures under this part by a public utility company or utility holding company system subject to such Act shall be construed as an activity or business which is reasonably incidental or economically necessary or appropriate to the operations of the public utility company or utility holding company system.”. Subtitle C— Residential Energy Efficiency Program Sec. 561. purpose It is the purpose of this subtitle— (1) to establish a program under which the Secretary of Energy may provide assistance to State and local governments to encourage up to four demonstration programs that make energy conservation measures available without charge to residential property owners and tenants under a plan designed to maximize the energy savings available in residential buildings in designated areas; and (2) to demonstrate through such program prototype residential energy efficiency plans under which State and local governments, State regulatory authorities, and public utilities may participate in a cooperative manner with public or private entities to install energy conservation measures in the greatest possible number of residential buildings within their respective jurisdictions or service areas. Sec. 562. amendment to the national energy conservation policy act The National Energy Conservation Policy Act is amended by adding after section 255 the following new part: “PART 5— RESIDENTIAL ENERGY EFFICIENCY PROGRAMS “SEC. 261. DEFINITION. “As used in this part, the term ‘residential building’ means any building used as a residence which is not a new building to which final standards under sections 304(a) and 305 of the Energy Conservation 42 USC 6833, 6834. and Production Act apply and which has a system for heating, cooling, or both. “SEC. 262. APPROVAL OF PLANS FOR PROTOTYPE RESIDENTIAL ENERGY EFFICIENCY PROGRAMS AND PROVISION OF FINANCIAL ASSISTANCE FOR SUCH PROGRAMS. “(a) Plan Approval.— The Secretary may approve any plan developed by a State or local government, for the establishment of a prototype residential energy efficiency program, which is designed to demonstrate the feasibility, economics, and energy conserving potential of such program, if an application for such plan is submitted pursuant to section 263, the application is approved pursuant to section 264, and the plan provides for— “(1) the entering into a contract by a public utility with one or more persons not under the control of, and not affiliates or subsidiaries of, such utility for the implementation of a program to encourage energy conservation, including the supply and installation of the energy conservation measures as specified in such contract in residential buildings located in the portion of the utility’s service area designated by the contract, which contract includes the provisions described in subsection (b); “(2) the selection by the public utility in a fair, open, and nondiscriminatory manner of the person or persons to contract with pursuant to paragraph (1); “(3) the payment by the public utility to the person or persons contracted with under paragraph (1) of a specified price for each unit of energy saved by such utility as a result of the program during the period the contract is in effect, which price is based on the value to the utility of the energy saved; “(4) the determination, by a procedure established by the State Energy savings procedure. or local government developing the plan, of the amount of energy saved by a public utility as a result of the program carried out under the plan, which procedure is described in the contract; “(5) in the case of a regulated public utility, the approval in writing by the State regulatory authority exercising ratemaking authority over such utility of the contract described in paragraph (1), the manner of selection described in paragraph (2), the payment described in paragraph (3), and the procedure described in paragraph (4); and “(6) the enforcement of the provisions of the contract, entered into pursuant to paragraph (1), which are required to be included pursuant to subsection (b). “(b) Contract Requirements.— Any contract entered into by a public utility under subsection (a)(1) shall require any person or persons entering into such contract with a public utility to offer to the owner or occupant of each residential building in the portion of the utility’s service area designated in the contract, without charge— “(1) an inspection of such building to determine and inform Inspection. such owner or occupant of— “(A) the energy conservation measures which will be supplied and installed in such residential building pursuant to paragraph (2); “(B) the savings in energy costs that are likely to result from the installation of such energy conservation measures; “(C) suggestions (including suggestions developed by the Secretary) of energy conservation techniques, including adjustments in energy use patterns and modifications in household activities, which can be used by the owner or occupant of the building to save energy and which do not require the installation of energy conservation measures; and “(D) the savings in energy costs that are likely to result from the adoption of such suggested energy conservation techniques; “(2) the supply and installation, with the approval of the owner of the residential building, in such building in a timely manner of the energy conservation measures which are as specified in the contract and which the owner or occupant was informed (pursuant to the inspection under paragraph (1)) would be supplied and installed in such building; and “(3) a written warranty that at a minimum any defect in Written warranty. materials, manufacture, design, or installation of any energy conservation measures supplied and installed pursuant to paragraph (2), found not later than one year after the date of installation, will be remedied without charge and within a reasonable period of time. “(c) Provision of Financial Assistance.— The Secretary may provide financial assistance to any State or local government to carry out any plan for the establishment of a prototype residential energy efficiency program if the plan is approved under subsection (a). “(d) Limitation.— The Secretary may approve under subsection (a) not more than 4 plans for the establishment of prototype residential energy efficiency programs. “SEC. 263. APPLICATIONS FOR APPROVAL OF PLANS FOR PROTOTYPE RESIDENTIAL ENERGY EFFICIENCY PROGRAMS. “Each application for the approval of a plan under section 262(a) for the establishment of a prototype residential energy efficiency program shall be submitted by a State or local government and shall include, at least— “(1) a description of the plan, including the provisions of the plan specified in section 262(a) and a description of the portion of the service area of the public utility proposing to enter into a contract under section 262(a)(1) which is designated under the contract; “(2) a description of the manner in which the provisions of the plan specified in section 262(a) are to be met; “(3) a description of the contract to be entered into pursuant to section 262(a)(1) and the manner in which the requirements of the contract contained in section 262(b) are to be met; “(4) the record of the public hearing conducted pursuant to section 264(a)(2); and “(5) any other information determined by the Secretary to be necessary to carry out this part. “SEC. 264. APPROVAL OF APPLICATIONS FOR PLANS FOR PROTOTYPE RESIDENTIAL ENERGY EFFICIENCY PROGRAMS. “(a) Approval Requirements.— The Secretary may approve an application submitted under section 263 for a plan establishing a prototype residential energy efficiency program only if— “(1) the application is approved in writing— “(A) by the public utility which is to enter into the contract under the plan; “(B) by the State regulatory authority having ratemaking authority over such public utility, in the case of a regulated utility; and “(C) by the Governor (or any State agency specifically authorized under State law to approve such plans) of the State whose government is submitting the application (if the application is submitted by a State government) or of the State in which the local government is located (if the application is submitted by a local government); and “(2) the application has been published, a public hearing on the application has been conducted, after notice to the public, at which representatives of the public utility which is to enter into the contract under the plan, persons engaged in the supply or installation of residential energy conservation measures, and members of the public (including ratepayers of such public utility and other interested individuals) had an opportunity to provide comment on the application, and any amendments to the application, which may be made to take into account the proceedings of the hearing, are made. “(b) Factors in Approving Applications.— The Secretary shall take into consideraton in approving an application under subsection (a) for a plan establishing a prototype residential energy efficiency program— “(1) the potential for energy savings from the demonstration of the program; “(2) the likelihood that the value of the energy saved by public utilities under the program will be sufficient to cover the estimated cost of the energy conservation measures to be supplied and installed under the program; “(3) the anticipated effects of the program on competition in the portion of the service area of the public utility designated in the contract entered into under the plan; and “(4) such other factors as the Secretary determines are appropriate. “SEC. 265. RULES AND REGULATIONS. “(a) Proposed Rules and Regulations.— The Secretary shall issue proposed rules and regulations to carry out this part not later than 120 days after the date of the enactment of this part. “(b) Final Rules and Regulations.— The Secretary shall issue final rules and regulations to carry out this part not later than 90 days after the issuance of proposed rules and regulations under subsection (a). “SEC. 266. AUTHORITY OF THE FEDERAL ENERGY REGULATORY COMMISSION TO E)(EMPT APPLICATION OF CERTAIN LAWS. “The Federal Energy Regulatory Commission may exempt from any provisions in sections 4, 5, and 7 of the Natural Gas Act (17 U.S.C. 15 USC 717c, 711d, 717f. 717c, 717d, and 717f) and titles II and IV of the Natural Gas Policy Act of 1978 (15 U.S.C. 3341 through 3348 and 3391 through 3394) the sale or transportation, by any public utility, local distribution company, interstate or intrastate pipeline, or any other person, of any natural gas which is determined (in the case of a regulated utility, company, pipeline, or person) by the State regulatory authority having rate-making authority over such utility, company, pipeline, or person, or (in the case of a nonregulated utility, company, pipeline, or person) by such utility, company, pipeline, or person, to have been conserved because of a prototype residential energy efficiency program which is established under a plan approved under section 262(a), if the Commission determines that such exemption is necessary to make feasible the demonstration of such prototype residential energy efficiency program. “SEC. 267. APPLICATION OF OTHER LAWS. “(a) Lack of Immunity.— No provision contained in this part— “(1) shall restrict any agency of the United States or any State from exercising its powers under any law to prevent unfair methods of competition and unfair or deceptive acts or practices; “(2) shall provide to any person any immunity from civil or criminal liability; “(3) shall create any defenses to actions brought under the antitrust laws; or “(4) shall modify or abridge any private right of action under the antitrust laws. “(b) Utility Programs Under Part 1.— Any public utility entering 42 USC 8211. into a contract under a plan for the establishment of a prototype residential energy efficiency program approved under section 262(a) shall not be required to carry out, with respect to any residential building located in the portion of the utility’s service area designated in the contract, the actions required to be contained in such utility’s 42 USC 8216. program by subsections (a) and (b) of section 215, if the contract requires such actions (or equivalent actions as determined by the Secretary) to be taken. “(c) Definition.— For purposes of this section, the term ‘antitrust laws’ means— “(1) the Sherman Act (15 U.S.C. 1 et seq.); “(2) the Clayton Act (15 U.S.C. 12 et seq.); “(3) the Federal Trade Commission Act (15 U.S.C. 41 et seq.); “(4) sections 73 and 74 of the Wilson Tariff Act (15 U.S.C. 8 and 9); and “(5) sections 2, 3, and 4 of the Act entitled ‘An Act to amend section 2 of the Act entitled “An Act to supplement existing laws against unlawful restraints and monopolies, and for other purposes”, approved October 15, 1914, as amended (U.S.C., title 15, sec. 13), and for other purposes’ approved June 19, 1936 (15 U.S.C. 21a, 13a, and 13b, commonly known as the RobinsonPatman Antidiscrimination Act). “SEC. 268. RECORDS AND REPORTS. “(a) Records.— Each State and local government submitting any application for a plan which is approved under section 262(a), and each public utility and person or persons entering into a contract under such a plan, shall keep such records and make such reports as the Secretary may require. The Secretary and the Comptroller General of the United States shall have access, at reasonable times and under reasonable conditions, to any books, documents, papers, records, and reports of each such State and local government, utility, and person or persons which the Secretary determines, in consultation with the Comptroller General of the United States, are pertinent to this part. “(b) Reports.— The Secretary shall make an annual report to the President on the activities carried out under this part which shall be submitted to the Congress with the annual report on the activities of the Department of Energy required by section 657 of the Department of Energy Organization Act (42 U.S.C. 7267) and which shall contain— “(1) an estimate of the total amount of energy saved as a result of the activities carried out under this part; “(2) an estimate of the annual savings in energy anticipated as a result of each prototype residential energy efficiency program established under a plan approved under section 262(a); “(3) an analysis, developed in consultation with the Federal Trade Commission and the Department of Justice, of the impact on competition of each prototype residential energy efficiency program established under a plan approved under section 262(a); and “(4) if the Secretary determines that it is appropriate, an analysis of the impact of expanding the approval of plans under section 262(a) to establish prototype residential energy efficiency programs, and the provision of financial assistance to such programs, on a national basis and an assessment of the alternative methods by which such an expansion could be accomplished. “SEC. 269. REVOKING APPROVAL OF PLANS AND TERMINATING FINANCIAL ASSISTANCE. “The Secretary shall revoke the approval of any plan under section 262(a) for the establishment of a prototype residential energy efficiency program, and shall terminate the provision of financial assistance under section 262(c) to carry out such plan, if the Secretary determines, in consultation with the Federal Trade Commission and after notice and the opportunity for a hearing, that carrying out such plan— “(1) causes unfair methods of competition; “(2) has a substantial adverse effect on competition in the portion of the service area of the public utility designated by the contract entered into under the plan; or “(3) provides a supplier or contractor of energy conservation measures with an unreasonably large share of the contracts for the supply or installation of such measures under such plan in the service area of the public utility designated by the contract entered into under such plan. “SEC. 270. AUTHORIZATION OF APPROPRIATIONS. “(a) Authorization of Appropriations— There is authorized to be appropriated to carry out this part— “(1) the sum of $10,000,000 for the fiscal year ending on September 30, 1981; and “(2) the sum equal to $10,000,000 minus the amount appropriated for the fiscal year ending on September 30, 1981, under the authorization contained in this section, for the fiscal year ending on September 30, 1982. “(b) Availability.— Any funds appropriated under the authorization contained in this section shall remain available until expended.”. Sec. 563. amendment to the table of contents The table of contents of the National Energy Conservation Policy Act is amended by inserting after the item relating to section 255 the following new items: “Part 5— Residential Energy Efficiency Programs “Sec. 261. Definition. “Sec. 262. Approval of plans for prototype residential energy efficiency programs and provision of financial assistance for such programs. “Sec. 263. Applications for approval of plans for prototype residential energy efficiency programs. “Sec. 264. Approval of applications for plans for prototype residential energy efficiency programs. “Sec. 265. Rules and regulations. “Sec. 266. Authority of the Federal Energy Regulatory Commission to exempt application of certain laws. “Sec. 267. Application of other laws. “Sec. 268. Records and reports. “Sec. 269. Revoking approval of plans and terminating financial assistance. “Sec. 270. Authorization of Appropriations.”. Subtitle D— Energy Conservation for Commercial Buildings and Multifamily Dwellings Sec. 565. amendment to the national energy conservation policy act The National Energy Conservation Policy Act is amended by adding at the end thereof the following new title: •TITLE VII— ENERGY CONSERVATION FOR COMMERCIAL BUILDINGS AND MULTIFAMILY DWELLINGS “PART 1— GENERAL PROVISIONS “SEC. 710. DEFINITIONS. “(a) Applicability of Title II Definitions.— The definitions in section 210 are applicable to this title, except as otherwise provided in this section. “(b) Additional Definitions.— As used in this title— “(1) The term ‘building heating supplier’ means any person engaged in the business of selling No. 2, No. 4, or No. 6 heating oil, kerosene, or propane to eligible customers. “(2) The term ‘commercial building’ means a building— “(A) which was completed on or before the date of enactment of this title, “(B) which is used primarily for carrying out a business (including a nonprofit business) or for carrying out the activities or administration of a State or local government, “(C) which is not used primarily for the manufacture or production of products, raw materials, or agricultural commodities, and “(D) for which the average monthly use of energy for the calendar year 1980 is less than 4,000 kilowatt hours of electricity or 1,000 therms of natural gas or the Btu equivalent thereof of any other fuel; except that such term does not include a Federal building as 42 USC 8241. defined in section 521(2). “(3) The term ‘multifamily dwelling’ means a building which is used for residential occupancy, was completed on or before the date of enactment of this title, and contains five or more dwelling units and a central heating or central cooling system. “(4) The term ‘energy efficient improvements’ means any change in the operation or maintenance of a commercial building or multifamily dwelling, which change is designed primarily to reduce energy consumption in such building or dwelling and which has been identified by the Secretary in the rules promulgated under section 712(a) or approved by the Secretary for consideration in the energy audits offered to eligible customers under section 731,732, or 741. “(5) The term ‘commercial energy conservation measure’ means an installation or modification of an installation which is primarily designed to reduce the consumption of petroleum, natural gas, or electrical power in a multifamily dwelling or commercial building, including— “(A) caulking and weatherstripping; “(B) the insulation of the building or dwelling structure and systems within the building or dwelling; “(C) storm windows and doors, multiglazed windows and doors, heat absorbing or heat reflecting window and door systems, glazing, reductions in glass area, and other window and door system modifications; “(D) automatic energy control systems; “(E) equipment, associated with automatic energy control systems, which is required to operate variable steam, hydraulic, or ventilating systems; “(F) furnace, or utility plant and distribution system, modifications, including— “(i) replacement burners, furnaces, boilers, or any combination thereof, which (as determined by the Secretary) substantially increases the energy efficiency of the heating system, “(ii) devices for modifying flue openings which will increase the energy efficiency of the heating system, and “(iii) electrical or mechanical furnace ignition systems which replace standing gas pilot lights; “(G) replacement or modification of a lighting system which increases the energy efficiency of the lighting system without increasing the overall illumination of the building or dwelling (unless such increase in illumination is necessary to conform to any applicable State or local building code or the increase is considered appropriate by the Secretary); “(H) energy recovery systems; “(I) cogeneration systems which produce electricity, as well as steam or other forms of thermal or mechanical energy, and which meet such fuel efficiency requirements as the Secretary may, by rule, prescribe; “(J) a solar energy system, as defined in section 504(8) of the Solar Energy and Energy Conservation Bank Act; and “(K) such other measures as the Secretary identifies, by rule, for purposes of this title. “(6) The term ‘eligible customer’ means— “(A) with respect to a public utility, the owner or tenant of a commercial building or the owner of a multifamily dwelling to whom that public utility sells natural gas or electricity for use in such building or dwelling, or “(B) with respect to a building heating supplier, the owner or tenant of a commercial building or the owner of a multifamily dwelling to whom that building heating supplier sells No. 2, No. 4, or No. 6 heating oil, kerosene, or propane for use in such building or dwelling. “(7) The term ‘energy audit’ means an onsite inspection of a commercial building or a multifamily dwelling which determines and informs the eligible customer of at least— “(A) the type, quantity, and rate of energy consumption of such building or dwelling; “(B) energy efficient improvements appropriate to such building or dwelling; and “(C) the need, if any, for the purchase and installation of commercial energy conservation measures in such building or dwelling. The Secretary, after consulting with appropriate State officials, may establish criteria for such audits on a regional basis to account for regional variations in energy use. “(8) The term ‘utility program’ means a program meeting the requirements of section 731. “(9) The term ‘building heating supplier program’ means a program meeting the requirements of section 732. “SEC. 711. COVERAGE. “This title shall apply to any public utility for which coverage is 42 USC 8212. provided under section 211. “SEC. 712. RULES OF SECRETARY FOR SUBMISSION AND APPROVAL OF PLANS. “(a) Promulgation of Rules by the Secretary.— The Secretary shall, not later than 120 days after enactment of this title and after consultation with the Secretary of Housing and Urban Development and the heads of such other agencies as the Secretary deems appropriate, publish proposed rules on the content and implementation of State energy conservation plans for commercial buildings and multifamily Oral and written comments. dwellings which meet the requirements of this title. After publication of such proposed rules, the Secretary shall afford interested persons (including Federal and State agencies) an opportunity to present oral and written comments on such proposed rules. Rules prescribing the content and implementation of State energy conservation plans for commercial buildings and multifamily dwellings shall be published not earlier than forty-five days after publication of the proposed rules. “(b) Energy Efficient Improvements of Different Types and Categories.— The rules promulgated under subsection (a) may identify energy efficient improvements in different types of commercial buildings and multifamily dwellings by climatic region and by categories determined by the Secretary on the basis of type of construction and any other factors which the Secretary deems appropriate. Such improvements shall be considered in the energy audits offered to eligible customers under sections 731,732, and 741. “(c) Coordination.— The rules promulgated under subsection (a) shall, to the extent practicable, coordinate the requirements of this title with the provisions of section 367(b)(1) of the Energy Policy and 42 USC 6327. 42 USC 8211. Conservation Act and with the utility program established under title II, part 1 of this Act. Such rules snail not have the effect of delaying the submission, approval, or implementation of residential energy conservation plans under title II, part 1 of this Act. “(d) Other Rules.— The Secretary may prescribe any other rules necessary to carry out the provisions of this title. “PART 2— ENERGY CONSERVATION PLANS “SEC. 721. PROCEDURES FOR SUBMISSION AND APPROVAL OF STATE ENERGY CONSERVATION PLANS FOR COMMERCIAL BUILDINGS AND MULTIFAMILY DWELLINGS. “(a) Submission and Approval of State Plans.— Not later than 180 days after the promulgation of rules under section 712(a), the Governor of each State (or any State agency specifically authorized to do so under State law) may submit to the Secretary a proposed energy conservation plan for commercial buildings and multifamily dwellings which meets the requirements of the rules promulgated under section 712. Within such 180-day period, each nonregufated utility shall submit a proposed plan, wnich meets the requirements of the rules promulgated under section 712, to the Secretary unless a plan submitted under the preceding sentence for the State in which the nonregulated utility provides utility service applies to nonregulated utilities as provided in subsection (b). The Secretary may, upon request of the Governor or State agency or nonregulated utility, extend for good cause shown, the time period for submission of a plan. Each plan submitted in accordance with this subsection shall be reviewed and approved or disapproved in accordance with the procedures of subparagraphs (B) and (C) of section 212(c)(1). 42 USC 8213. “(b) Nonregulated Utilities.— Any plan submitted by a Governor or State agency under subsection (a) may, in the discretion of the Governor if he notifies the Secretary within 30 days after promulgation of rules under section 712(a), apply to nonregulated utilities providing utility service in the State in the same manner as to regulated utilities. In any such case, reference elsewhere in this title to regulated utilities (including references to utilities with respect to which a State regulatory authority exercises ratemaking authority) shall, with respect to such State, be treated as references also to nonregulated utilities and references elsewhere in this title to non-regulated utilities shall not apply. For purposes of this subsection, the “Nonregulated utility.” term ‘nonregulated utility’ shall not include any public utility which is a Federal agency. “(c) Plan for Building Heating Suppliers.— A plan applicable to building heating suppliers may be submitted by the Governor in his discretion. “(d) Tennessee Valley Authority.— In the case of the Tennessee Valley Authority or any public utility with respect to which the Tennessee Valley Authority has ratemaking authority, the authority otherwise vested in the Governor or State agency under this section shall be vested in the Tennessee Valley Authority. “SEC. 722. REQUIREMENTS FOR STATE PLANS FOR REGULATED UTILITIES. “No proposed energy conservation plan for commercial buildings and multifamily dwellings submitted for regulated utilities shall be approved by the Secretary unless such plan— “(1) requires each regulated utility to implement a program which meets the requirements of section 731 and such other requirements as may be contained in the rules promulgated by the Secretary under section 712, except that no such program may be required to apply to all of the multifamily dwellings and commercial buildings located within such utility’s service area if, within 6 months from the date on which the Secretary’s rules are promulgated with respect to such program, the State regulatory authority which exercises ratemaking authority over such utility determines that the inclusion of such additional buildings or dwellings would significantly impair such utility’s ability— “(A) to fulfill the requirements of section 215, or Ante, p. 742. “(B) to provide utility service to its customers. “(2) provides adequate State procedures for implementing the enforcment of the plan; “(3) provides procedures for insuring that effective coordination exists among various local, State, and Federal energy conserving programs within and affecting such State; and “(4) is adopted after notice and public hearing. Hearing. “SEC. 723. PLAN REQUIREMENTS FOR NONREGULATED UTILITIES AND BUILDING HEATING SUPPLIERS. “(a) Requirements for Plans for Nonregulated Utilities.— No plan proposed by a nonregulated utility shall be approved by the Secretary unless such plan meets the same requirements as provided under section 722 for regulated utilities. In applying the requirements of section 722 in the case of a plan for a nonregulated utility under this section, any reference to a regulated utility shall be treated as a reference to a nonregulated utility and the reference to the State regulatory authority shall be treated as a reference to the Governor. “(b) Requirements for Plans for Building Heating Suppliers.— No plan proposed for building heating suppliers shall be approved by the Secretary unless such plan meets the same requirements as provided under paragraphs (3) and (4) of section 722 and— “(1) meets the requirements of section 732 and contains adequate enforcement procedures with respect to such requirements; “(2) meets such requirements applicable to building heating suppliers as may be contained in the rules promulgated under section 712; and “(3) takes into account the resources of small building heating suppliers. “PART 3— UTILITY PROGRAMS “SEC. 731. UTILITY PROGRAMS. “(a) General Requirements.— Each utility program shall include procedures designed to provide that each public utility— “(1) offers to each eligible customer, no later than 12 months after the approval of the applicable plan and every 24 months thereafter until 1990, an energy audit of the eligible customer’s commercial building or multifamily dwelling; “(2) conditions the availability of an energy audit in the case of a multifamily dwelling upon the agreement by the eligible customer to provide to the tenants of the customer’s multifamily dwelling the information developed by such audit concerning energy efficient improvements and commercial energy conservation measures applicable to the individual dwelling units in such dwelling; “(3) maintains a report of each audit performed pursuant to this subsection with respect to a commercial building or multi-family dwelling for not less than 10 years, which report shall be available to any subsequent eligible customer of such commercial building or multifamily dwelling; and “(4) shall not be required to conduct an energy audit of a commercial building or multifamily dwelling which has been Ante, p. 752, 42 USC 6371 note audited previously pursuant to this title or title III; except that any public utility may contract with one or more persons, including another utility, to carry out directly some or all of the responsibilities required by this subsection. “(b) Requirements Concerning Accounting and Payment of Costs.— Each State regulatory authority or nonregulated utility shall, within 180 days after promulgation of rules under section 712(a), or such longer period as the Secretary for good cause may allow, provide— “(1) that all amounts expended or received by the utility which are attributable to the utility program (including any penalties paid by such utility under section 741) are accounted for on the books and records of the public utility separately from amounts attributable to all other activities of such utility; “(2) that all amounts expended by a utility for providing information concerning the availability of the energy audit offered pursuant to subsection (a)(1) are to be treated for such purposes as a current expense of providing utility service and charged to all ratepayers of such utility in the same manner as current operating expenses of providing such utility service; and “(3) that all other amounts expended by a public utility to carry out the provisions of this title, are recovered in the manner specified by the State regulatory authority which has rate-making authority over such utility (or in the case of a nonregulated utility in the manner specified by such nonregulated utility); except that, in the case of a multifamily dwelling, the amount which may be recovered directly from an eligible customer for whom the activities described in subsection (a) are performed shall not exceed a total of $15 per dwelling unit or the actual cost of such activities, whichever is less; in determining the amount to be recovered directly from customers as provided under this paragraph, the State regulatory authority (in the case of a regulated utility) or the utility (in the case of a nonregulated utility) shall take into consideration, to the extent practicable, the customers’ ability to pay and the likely levels of participation in the utility program which will result from such recovery. “(c) Ratepayer.— For purposes of subsection (b), the term ‘rate-payer’ means any person, State agency, or Federal agency who purchases electric energy or natural gas from a utility for purposes other than for resale. “SEC. 732. BUILDING HEATING SUPPLIER PROGRAM. “(a) Requirements.— Except as may be provided by the Secretary, the procedures for each building heating supplier program shall be identical to the procedures required for utilities in section 731(a). “(b) Waiver.— The Governor may waive, for any building heating supplier, any requirement established pursuant to this section, upon demonstration to the Governor’s satisfaction that the resources of such supplier do not enable the supplier to comply with such requirement. “PART 4— FEDERAL IMPLEMENTATION “SEC. 741. FEDERAL STANDBY AUTHORITY. “(a) Promulgation of Plan by the Secretary.— If a State does not have a plan approved under section 721 within 270 days after promulgation of rules under section 712(a), or within such additional period as the Secretary may allow pursuant to section 721(a), or if the Secretary determines after notice and opportunity for a public hearing that an approved plan is not being adequately implemented in such State, the Secretary shall— “(1) promulgate a plan which meets the requirements of section 722; and “(2) under such plan, by order, require each regulated utility in the State to offer, no later than 90 days following the date of issuance of such order, to its eligible customers a utility program prescribed in such order which meets the requirements specified in section 731. “(b) Nonregulated Utilities.— If a nonregulated utility which is not covered by an approved State plan under section 721 does not have a plan approved under such section within 270 days after promulgation of rules under section 712(a) or within such additional period as the Secretary may allow pursuant to section 721(a), or if the Secretary determines that such nonregulated utility has not adequately implemented an approved plan, the Secretary shall, by order, require such nonregulated utility— “(1) to promulgate a plan which meets the requirements of section 723 and which applies to the commercial buildings and multifamily dwellings which would have been covered had such a plan been so approved or implemented; and “(2) no later than 90 days following the date of issuance of such order, to offer to its customers a utility program prescribed in such plan which meets the requirements specified in section 731. “(c) Enforcement.— If the Secretary determines that any person has violated any provision of this title, any plan approved or promulgated under this title, or any order issued pursuant thereto, the Secretary may file a petition in the appropriate United States district court to enjoin such person from violating such provision, plan, or 42 USC 8220. order. The provisions of subsections (c) and (d) of section 219 shall apply to any violation of any order or plan promulgated by the Secretary under authority of subsections (a) and (b) of this section.”. Sec. 566. amendment to the table of contents The table of contents of the National Energy Conservation Policy Act is amended by adding the following new items at the end thereof: “TITLE VII— ENERGY CONSERVATION FOR COMMERCIAL BUILDINGS AND MULTIFAMILY DWELLINGS “Part 1— General Provisions “Sec. 710. Definitions. “Sec. 711. Coverage. “Sec. 712. Rules of Secretary for submission and approval of plans. “Part 2— Energy Conservation Plans “Sec. 721. Procedures for submission and approval of State energy conservation plans for commercial buildings and multifamily dwellings. “Sec. 722. Requirements for State plans for regulated utilities. “Sec. 723. Plan requirements for nonregulated utilities and building heating suppliers. “Part 3— Utility Programs “Sec. 731. Utility programs. “Sec. 732. Building heating supplier program. “Part 4— Federal Implementation “Sec. 741. Federal standby authority.”. Subtitle E— Weatherization Program Sec. 571. limitations on administrative expenditures Section 415(a) of the Energy Conservation in Existing Buildings Act of 1976 is amended by striking out “, except that” and 42 USC 6865. all that follows through the period at the end thereof and inserting in lieu thereof the following: “, Not more than an amount equal to 10 percent of any grant made by the Secretary under this part may be used for administrative purposes in carrying out duties under this Krt, except that not more than one-half of such amount may be used by any State for such purposes.” Sec. 572. expenditures for labot Section 415(c) of the Energy Conservation in Existing Buildings Act of 1976 is amended— (1) by striking out “paragraph (2)” in paragraph (1) and inserting in lieu thereof “paragraphs (2) and (3)”; and (2) by inserting the following new paragraph at the end thereof: “(3) In areas where the Secretary, after consultation with the Secretary of Labor, determines that there is an insufficient number of volunteers and training participants and public service employment workers, assisted pursuant to the Comprehensive Employment and Training Act of 1973, available to work on weatherization 29 USC 801 note. projects under the supervision of qualified supervisors and foremen, the Secretary may increase the limitation of $800 to not more than $1,600 to cover the costs of paying persons who will install the weatherization materials and, to the maximum extent practicable, who would otherwise be able to participate as training participants and public service employment workers pursuant to the Comprehensive Employment and Training Act of 1973.” Sec. 573. selection of local agencies (a) Section 415(b)(2) of the Energy Conservation in Existing Buildings Act of 1976 is amended— 42 USC 6865. (1) by inserting “and” at the end of subparagraph (A); (2) by striking out subparagraph (B); and (3) by redesignating subparagraph (C) as subparagraph (B). (b) Section 413(c) of such Act is amended by striking out the second 42 USC 6863. sentence thereof. (c) Section 414(b) of the Energy Conservation in Existing Buildings Act of 1976 is amended— 42 USC 6864. (1) by striking out “and” at the end of paragraph (2); (2) by striking out the period at the end of paragraph (3) and inserting in lieu thereof and”; and (3) by adding the following new paragraph at the end thereof: “(4) selected on the basis of public comment received during a public hearing conducted pursuant to section 415(b)(1), and other appropriate findings, community action agencies or other public or nonprofit entities to undertake the weatherization activities authorized by this title: Provided, Such selection shall be based on the agency’s experience and performance in weatherization or housing renovation activities, experience in assisting low-income persons in the area to be served, and the capacity to undertake a timely and effective weatherization program: Provided further, That in making such selection preference shall be given to any community action agency or other public or nonprofit entity which has, or is currently administering, an effective program under this title or under title II of the Economic Opportunity Act 42 USC 6851, 2781. of 1964.”. Sec. 574. standards and procedures for the weatherization program Section 413(b) of the Energy Conservation in Existing Buildings Act of 1976 is amended by adding the following new paragraph at the end thereof: “(4) In carrying out paragraphs (2)(A) and (3), the Secretary shall establish the standards and procedures described in such paragraphs so that weatherization efforts being carried out under this part and under programs described in the fourth sentence of paragraph (3) will accomplish uniform results among the States in any area with a similar climatic condition.”. Sec. 575. limitations on expenditures Section 415(c)(1)(D) of the Energy Conservation in Existing Ante, p. 759. Buildings Act of 1976 is amended by striking out ”$100” and inserting in lieu thereof “$150”. Sec. 576. authorization of appropriations Section 422 of the Energy Conservation in Existing 42 USC 6872. Buildings Act of 1976 is amended to read as follows: “Sec. 422. “authorization of appropriations There is authorized to be appropriated for purposes of carrying out the weatherization program under this part, the sum of $55,000,000 for the fiscal year ending on September 30, 1977, the sum of $130,000,000 for the fiscal year ending on September 30, 1978, the sum of $200,000,000 for the fiscal year ending on September 30, 1979, the sum of $200,000,000 for the fiscal year ending on September 30, 1980, and the sum of $200,000,000 for the fiscal year ending on September 30, 1981, such sums to remain available until expended.”. Sec. 577. technical amendments Part A of the Energy Conservation in Existing Buildings Act of 1976 is amended— (1) by striking out section 412(1) and inserting in lieu thereof the following: “(1) The term ‘Secretary’ means the Secretary of Energy.”; (2) by striking out “Administrator” each time it appears therein and inserting in lieu thereof “Secretary”; and (3) by striking out “Administrator’s” in the first sentence of section 419(a) and inserting in lieu thereof “Secretary’s”. Subtitle F— Energy Auditor Training and Certification Sec. 581. purpose It is the purpose of this subtitle to encourage the training and certification of individuals to conduct energy audits for residen-tial and commercial buildings in order to serve the various private and public needs of the Nation for energy audits. Sec. 582. definitions For the purposes of this subtitle— 42 USC 8285a. (1) the term “Governor” means the chief executive officer of each State, including the Mayor of the District of Columbia; (2) the term “State” means any of the several States, the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, American Samoa, and the Northern Mariana Islands; (3) the term “energy audit” means an inspection as described in section 215(b)(1)(A) of the National Energy Conservation Policy Act, or an energy audit as defined in section 710(b)(7) of such Act, which in addition may provide information on the utilization of renewable resources and may make energy-related improvements in the building; and (4) the term “Secretary” means the Secretary of Energy. Sec. 583. grants (a) The Secretary may make grants to any Governor of a 42 USC 8285b. State for the training and certification of individuals to conduct energy audits. (b) Before making a grant under subsection (a) to a Governor, Applications. the Secretary must receive from the Governor an application containing— (A) any information which the Secretary deems is necessary to carry out this subtitle; and (B) an assurance that the grant will supplement and not supplant other funds available tor such training and certification and will be used to increase the total amount of funds available for such training and certification. (c) (1) Before making any grant under subsection (a) the Secretary shall establish minimum standards for the training and certification of individuals to conduct energy audits. (2) The Secretary shall require each Governor receiving any grant under this subtitle to agree to meet the standards established pursuant to paragraph (1) in any training and certification conducted using funds provided under this subtitle. Sec. 584. authorization of appropriations (a) To carry out this subtitle there is authorized to be 42 USC 8285c. appropriated the sum of $10,000,000 for the fiscal year ending on September 30, 1981, and the sum of $15,000,000 for the fiscal year ending on September 30, 1982. (b) Any funds appropriated under the authorization contained in this section shall remain available until expended. Subtitle G— Industrial Energy Conservation Sec. 591. authorization of appropriations To accelerate the program of the Department of Energy 42 USC 6347. involving the research, development, and demonstration of energy conserving activities designed to substantially increase productivity in industry, there is authorized to be appropriated to the Secretary of Energy for industrial energy conservation demonstration projects designed to substantially increase productivity in industry, in addition to any other sums which may be available for such purposes, the sum of $40,000,000 for each of the fiscal years ending on September 30, 1981, and on September 30, 1982. Subtitle H— Coordination of Federal Energy Conservation Factors and Data Sec. 595. consensus on factors and data for energy conservation standards The Secretary of Energy shall assure that within 6 months after the date of the enactment of this Act, the Secretary of Energy, the Secretary of Housing and Urban Development, the Secretary of Agriculture, the Secretary of Health and Human Services, the Secretary of Defense, the Administrator of the General Services Administration, and the head of any other agency responsible for developing energy conservation standards for new or existing residential, commercial, or agricultural buildings shall reach a consensus regarding factors and data used to develop such standards. This consensus shall apply to, but not be limited to— (1) fuel price projections; (2) discount rates; (3) inflation rates; (4) climatic conditions and zones; and (5) the cost and energy saving characteristics of construction materials. Sec. 596. use of factors and data Factors and data consented to pursuant to section 595 may be revised and agreed to by a consensus of the heads of the various Federal agencies involved. Such factors and data shall be used by all Federal agencies in establishing and revising various energy conservation standards used by such agencies, except that other factors and data may be used with respect to the standards applicable to any program if— (1) the other factors and data are approved by the Secretary of Energy solely on the basis that such other factors and data are critical to meet the unique needs of the program concerned; (2) using the consented to factors and data would cause a violation of an express provision of law; or (3) statutory requirements or responsibilities require a modification of the consented to factors and data. Sec. 597. report The President shall report to the Congress on January 1, 1981, and annually thereafter, with respect to— (1) the activities which have been carried out under this subtitle; and (2) other efforts which are being carried out to coordinate the various Federal energy conservation programs.

  7. Energy Security Act

    Pub. L. 96–294 § 577(2) · 94 Stat. 611

    Substituted · 42 U.S.C. § 6863(d); 42 U.S.C. § 6863(e)

    Pub. L. 96–294, § 577(2), substituted “Secretary” for “Administrator” wherever appearing

    Source evidence

    Code amendment note
    Subsecs. (d), (e). Pub. L. 96–294, § 577(2), substituted “Secretary” for “Administrator” wherever appearing.

    Enacted provision · exact public law section
    (2) by striking out “Administrator” each time it appears therein and inserting in lieu thereof “Secretary”; and

  8. Housing and Community Development Technical Amendments Act of 1984

    Pub. L. 98–479 title II § 201(h) · 98 Stat. 2218

    Substituted · 42 U.S.C. § 6863(b)(1); 42 U.S.C. § 6863(2)(A)

    Pub. L. 98–479 substituted “Health and Human Services” for “Health, Education, and Welfare”

    Source evidence

    Code amendment note
    Subsec. (b)(1), (2)(A). Pub. L. 98–479 substituted “Health and Human Services” for “Health, Education, and Welfare”.

    Enacted provision · exact public law section
    (h) Paragraphs (1) and (2) of section 413(b) of the Energy Conservation 42 USC 6863. in Existing Building Act of 1976 are amended by striking out “Health, Education, and Welfare” each place it appears and inserting in lieu thereof “Health and Human Services”.

  9. Technology Competitiveness Act

    Pub. L. 100–418 title V § 5115(c) · 102 Stat. 1107

    Substituted · 42 U.S.C. § 6863(b)(2)(A)

    Pub. L. 100–418 substituted “National Institute of Standards and Technology” for “National Bureau of Standards”

    Source evidence

    Code amendment note
    Subsec. (b)(2)(A). Pub. L. 100–418 substituted “National Institute of Standards and Technology” for “National Bureau of Standards”.

    Enacted provision · exact public law section
    (c) Amendments to Other Laws.— References in any other Federal 15 USC 271 note. law to the National Bureau of Standards shall be deemed to refer to the National Institute of Standards and Technology.

  10. State Energy Efficiency Programs Improvement Act of 1990

    Pub. L. 101–440 § 7(b)(1) · 104 Stat. 1006

    1. Added · 42 U.S.C. § 6863(b)(2)(B); 42 U.S.C. § 6863(b)(2)(C)

      Pub. L. 101–440, § 7(b)(1), added subpars. (B) and (C)

    2. Struck · 42 U.S.C. § 6863(b)(2)(B); 42 U.S.C. § 6863(b)(2)(C)

      Pub. L. 101–440, § 7(b)(1), struck out former subpar. (B) which read as follows: “designed to insure that (i) the benefits of weatherization assistance in connection with leased dwelling units will accrue primarily to low-income tenants; (ii) the rents on such dwelling units will not be raised because of any increase in the value thereof due solely to weatherization assistance provided under this part; and (iii) no undue or excessive enhancement will occur to the value of such dwelling units.”

    Source evidence

    Code amendment note
    Subsec. (b)(2)(B), (C). Pub. L. 101–440, § 7(b)(1), added subpars. (B) and (C) and struck out former subpar. (B) which read as follows: “designed to insure that (i) the benefits of weatherization assistance in connection with leased dwelling units will accrue primarily to low-income tenants; (ii) the rents on such dwelling units will not be raised because of any increase in the value thereof due solely to weatherization assistance provided under this part; and (iii) no undue or excessive enhancement will occur to the value of such dwelling units.”

    Enacted provision · exact public law section
    (1) Section 413(b)(2) of such Act (42 U.S.C. 6863(b)(2)) is amended— (A) by striking out “and” at the end of subparagraph (A); and (B) by striking out subparagraph (B) and inserting in lieu thereof the following: “(B) that provide guidance to the States in the implementation of this part, including guidance designed to ensure that a State establishes (i) procedures that provide protection under paragraph (5) to tenants paying for energy as a portion of their rent, and (ii) a process for monitoring compliance with its obligations pursuant to this part; and “(C) that secure the Federal investment made under this part and address the issues of eviction from and sale of property receiving weatherization materials under this part.”.

  11. State Energy Efficiency Programs Improvement Act of 1990

    Pub. L. 101–440 § 7(b)(2) · 104 Stat. 1006

    Added · 42 U.S.C. § 6863(b)(5); 42 U.S.C. § 6863(b)(6)

    Pub. L. 101–440, § 7(b)(2), added pars. (5) and (6)

    Source evidence

    Code amendment note
    Subsec. (b)(5), (6). Pub. L. 101–440, § 7(b)(2), added pars. (5) and (6).

    Enacted provision · exact public law section
    (2) Section 413(b) of such Act (42 U.S.C. 6863(b)) is amended by adding at the end the following: “(5) In any case in which a dwelling consists of a rental unit or rental units, the State, in the implementation of this part, shall ensure that— “(A) the benefits of weatherization assistance in connection with such rental units, including units where the tenants pay for their energy through their rent, will accrue primarily to the low-income tenants residing in such units; “(B) for a reasonable period of time after weatherization work has been completed on a dwelling containing a unit occupied by an eligible household, the tenants in that unit (including house-holds paying for their energy through their rent) will not be subjected to rent increases unless those increases are demonstrably related to matters other than the weatherization work performed; “(C) the enforcement of subparagraph (B) is provided through procedures established by the State by which tenants may file complaints and owners, in response to such complaints, shall demonstrate that the rent increase concerned is related to matters other than the weatherization work performed; and “(D) no undue or excessive enhancement will occur to the value of such dwelling units. “(6) As a condition of having assistance provided under this part with respect to multifamily buildings, a State may require financial participation from the owners of such buildings.”.

  12. National and Community Service Trust Act of 1993

    Pub. L. 103–82 title IV § 405 · 107 Stat. 785

    Struck · 42 U.S.C. § 6863(b)(1)

    Pub. L. 103–82 struck out “the Director of the ACTION Agency,” after “Labor,”

    Source evidence

    Code amendment note
    Subsec. (b)(1). Pub. L. 103–82 struck out “the Director of the ACTION Agency,” after “Labor,”.

    Enacted provision · exact public law section
    SEC. 405. REFERENCES TO ACTION AND THE ACTION AGENCY. (a) Domestic Volunteer Service Act of 1973.— (1) Section 2(b) of the Domestic Volunteer Service Act of 1973 (42 U.S.C. 4950(b)) is amended— (A) by striking “ACTION, the Federal domestic volunteer agency,” and inserting “this Act”; and (B) by striking “ACTION shall” and inserting “the Corporation for National and Community Service shall”. (2) Section 103(b)(2)(A) of such Act (as amended by section 323(b)(1)(A) of this Act) is amended by striking “the ACTION Agency” the first place that such term appears and inserting “the Corporation”. (3) Section 103(b)(4) of such Act (as redesignated by section 323(b)(3) of this Act) is amended by striking “the ACTION Agency” each place that such appears and inserting “the Corporation”. (4) Section 103(c)(1)(D) of such Act is amended by striking “the ACTION Agency” and inserting “the Corporation”. (5) Section 124(b) of such Act (as redesignated by section 333(2) of this Act) is amended by striking “the ACTION Agency” and inserting “the Corporation”. (6) Section 225(e) of such Act (42 U.S.C. 5025(e)) is amended by striking “the ACTION Agency” and inserting “the Corporation”. (7) Section 403(a) of such Act (42 U.S.C. 5043(a)) is amended— (A) by striking “the ACTION Agency” the first place such term appears and inserting “the Corporation under this Act”; and (B) by striking “the ACTION Agency” the second place such term appears and inserting “the Corporation”. (8) Section 408 of such Act (42 U.S.C. 5048) is amended by striking “the ACTION Agency” and inserting “the Corporation”. (9) Section 416(f)(1) of such Act (42 U.S.C. 5056(f)(1)) is amended by striking “ACTION Agency” and inserting “Corporation”. (10) Section 421(12) of such Act (as added by section 401 of this Act) is amended by striking “ACTION” and inserting “the Corporation”. (11) Section 425 of such Act (as added by section 370 of this Act) is further amended by striking “ACTION” and inserting “the Corporation”. (b) Civil Service Retirement System.— Section 8332(j)(1) of title 5, United States Code (as amended by section 371(a)(1)(A)(iii)(II) of this Act) is amended by striking “the Director of ACTION” and inserting “the Chief Executive Officer of the Corporation for National and Community Service”. (c) Public Housing Security.— Section 207(c) of the Public Housing Security Demonstration Act of 1978 (Public Law 95–557; 92 Stat. 2093; 12 U.S.C. 1701z–6 note) is amended— (1) in paragraph (3)(ii), by striking “ACTION” and inserting “the Corporation for National and Community Service”; and (2) in paragraph (4), by striking “ACTION” and inserting “the Corporation for National and Community Service”. (d) National Forest Volunteers.— Section 1 of the Volunteers in the National Forests Act of 1972 (16 U.S.C. 558a) is amended by striking “ACTION” and inserting “the Corporation for National and Community Service”. (e) Peace Corps.— Section 2A of the Peace Corps Act (22 U.S.C. 2501–1) is amended by inserting after “the ACTION Agency” the following: “, the successor to the ACTION Agency,”. (f) Indian Economic Development.— Section 502 of the Indian Financing Act of 1974 (25 U.S.C. 1542) is amended by striking “ACTION Agency” and inserting “the Corporation for National and Community Service”. (g) Older Americans.— The Older Americans Act of 1965 is amended— (1) in section 202(c)(1) (42 U.S.C. 3012(c)(1)), by striking “the Director of the ACTION Agency” and inserting “the Corporation for National and Community Service”; (2) in section 203(a)(1) (42 U.S.C. 3013(a)(1)) by striking “the ACTION Agency” and inserting “the Corporation for National and Community Service”; and (3) in section 422(b)(12)(C) (42 U.S.C. 3035a(b)(12)(C)), by striking “the ACTION Agency” and inserting “the Corporation for National and Community Service”. (h) VISTA Service Extension.— Section 101(c)(1) of the Domestic Volunteer Service Act Amendments of 1989 (Public Law 101–204; 103 Stat. 1810; 42 U.S.C. 4954 note) is amended by striking “Director of the ACTION Agency” and inserting “Chief Executive Officer of the Corporation for National and Community Service”. (i) Aging Resource Specialists.— Section 205(c) of the Older Americans Amendments of 1975 (Public Law 94–135; 89 Stat. 727; 42 U.S.C. 5001 note) is amended— (1) in paragraph (1)— (A) by striking “the ACTION Agency,” and inserting “the Corporation for National and Community Service,”, and (B) by striking “the Director of the ACTION Agency” and inserting “the Chief Executive Officer of the Corporation”; (2) in paragraph (2)(A), by striking “ACTION Agency” and inserting “Corporation”; and (3) in paragraph (3), by striking subparagraph (A) and inserting the following new subparagraph: “(A) the term ‘Corporation’ means the Corporation for National and Community Service established by section 191 of the National and Community Service Act of 1990.”. (j) Promotion of Photovoltaic Energy.— Section 11(a) of the Solar Photovoltaic Energy Research, Development, and Demonstration Act of 1978 (42 U.S.C. 5590) is amended by striking “the Director of ACTION,”. (k) Coordinating Council on Juvenile Justice.— Section 206(a)(1) of the Juvenile Justice and Delinquency Prevention Act of 1974 (42 U.S.C. 5616(a)(1)) is amended by striking “the Director of the ACTION Agency” and inserting “the Chief Executive Officer of the Corporation for National and Community Service”. (l) Energy Conservation.— Section 413(b)(1) of the Energy Conservation and Production Act (42 U.S.C. 6863(b)(1)) is amended by striking “the Director of the ACTION Agency,”. (m) Interagency Council on the Homeless.— Section 202(a) of the Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 11312(a)) is amended by striking paragraph (12) and inserting the following new paragraph: “(12) The Chief Executive Officer of the Corporation for National and Community Service, or the designee of the Chief Executive Officer.”. (n) Anti-Drug Abuse.— Section 3601 of the Anti-Drug Abuse Act of 1988 (42 U.S.C. 11851) is amended by striking paragraph (5) and inserting the following new paragraph: “(5) the term ‘Director’ means the Chief Executive Officer of the Corporation for National and Community Service,”. (o) Administration on Children, Youth, and Families.— Section 916(b) of the Claude Pepper Young Americans Act of 1990 (42 U.S.C. 12312(b)) is amended by striking “the Director of the ACTION Agency” and inserting “the Chief Executive Officer of the Corporation for National and Community Service”. (p) National and Community Service.— (1) Subsection (i) of section 178 of the National and Community Service Act of 1990 (as amended by section 201 of this Act) is further amended by striking “ACTION, or of the Corporation,” and inserting “the Corporation”. (2) Subsection (r) of section 198 of such Act (as amended by section 104(c) of this Act) is further amended by striking “ACTION Agency” and inserting “Corporation”.

    Effective date note
    Amendment by Pub. L. 103–82 effective Apr. 4, 1994, see section 406(b) of Pub. L. 103–82, set out as a note under section 8332 of Title 5, Government Organization and Employees.

  13. Indian Tribal Energy Development and Self-Determination Act Amendments of 2017

    Pub. L. 115–325 § 203(1) · 132 Stat. 4445

    1. Added · 42 U.S.C. § 6863(d)(1)

      Pub. L. 115–325, § 203(1), added par. (1)

    2. Struck · 42 U.S.C. § 6863(d)(1)

      Pub. L. 115–325, § 203(1), struck out former par. (1) which related to conditions for reserving funds for direct grants to provide assistance to low-income members of Indian tribes

    Source evidence

    Code amendment note
    Subsec. (d)(1). Pub. L. 115–325, § 203(1), added par. (1) and struck out former par. (1) which related to conditions for reserving funds for direct grants to provide assistance to low-income members of Indian tribes.

    Enacted provision · exact public law section
    (1) by striking paragraph (1) and inserting the following: “(1) Reservation of amounts.— “(A) In general.— Subject to subparagraph (B) and notwithstanding any other provision of this part, the Secretary shall reserve from amounts that would otherwise be allocated to a State under this part not less than 100 percent, but not more than 150 percent, of an amount which bears the same proportion to the allocation of that State for the applicable fiscal year as the population of all low-income members of an Indian tribe in that State bears to the population of all low-income individuals in that State. “(B) Restrictions.— Subparagraph (A) shall apply only if— “(i) the tribal organization serving the low-income members of the applicable Indian tribe requests that the Secretary make a grant directly; and “(ii) the Secretary determines that the low-income members of the applicable Indian tribe would be equally or better served by making a grant directly than a grant made to the State in which the low-income members reside. “(C) Presumption.— If the tribal organization requesting the grant is a tribally designated housing entity (as defined in section 4 of the Native American Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 4103)) that has operated without material audit exceptions (or without any material audit exceptions that were not corrected within a 3-year period), the Secretary shall presume that the low-income members of the applicable Indian tribe would be equally or better served by making a grant directly to the tribal organization than by a grant made to the State in which the low-income members reside.” ;

  14. Indian Tribal Energy Development and Self-Determination Act Amendments of 2017

    Pub. L. 115–325 § 203(2) · 132 Stat. 4445

    1. Inserted · 42 U.S.C. § 6863(d)(2)

      Pub. L. 115–325, § 203(2), inserted heading

    2. Substituted · 42 U.S.C. § 6863(d)(2)

      Pub. L. 115–325, § 203(2), substituted “The amounts” for “The sums”

    3. Substituted · 42 U.S.C. § 6863(d)(2)

      Pub. L. 115–325, § 203(2), substituted “low-income members of the Indian tribe” for “individuals for whom such a determination has been made”

    4. Substituted · 42 U.S.C. § 6863(d)(2)

      Pub. L. 115–325, § 203(2), substituted “as the Secretary determines” for “as he determines”

    5. Struck · 42 U.S.C. § 6863(d)(2)

      Pub. L. 115–325, § 203(2), struck out “on the basis of his determination” before “under this subsection”

    Source evidence

    Code amendment note
    Subsec. (d)(2). Pub. L. 115–325, § 203(2), inserted heading, substituted “The amounts” for “The sums”, “low-income members of the Indian tribe” for “individuals for whom such a determination has been made”, and “as the Secretary determines” for “as he determines”, and struck out “on the basis of his determination” before “under this subsection”.

    Enacted provision · exact public law section
    (2) in paragraph (2)— (A) by striking “The sums” and inserting “Administration.—The amounts”; (B) by striking “on the basis of his determination”; (C) by striking “individuals for whom such a determination has been made” and inserting “low-income members of the Indian tribe”; and (D) by striking “he” and inserting “the Secretary”; and

  15. Indian Tribal Energy Development and Self-Determination Act Amendments of 2017

    Pub. L. 115–325 § 203(3) · 132 Stat. 4445

    Inserted · 42 U.S.C. § 6863(d)(3)

    Pub. L. 115–325, § 203(3), inserted heading

    Source evidence

    Code amendment note
    Subsec. (d)(3). Pub. L. 115–325, § 203(3), inserted heading.

    Enacted provision · exact public law section
    (3) in paragraph (3), by striking “In order” and inserting “Application.—In order”.

  16. Energy Act of 2020

    Pub. L. 116–260 § 1011(c)(1) · 134 Stat. 1182

    1. Struck · 42 U.S.C. § 6863(b)(3)

      Pub. L. 116–260, § 1011(c)(1), in introductory provisions, struck out “and with the Director of the Community Services Administration” after “Director described in paragraph (2)(A)” and, in concluding provisions

    2. Inserted · 42 U.S.C. § 6863(b)(3)

      Pub. L. 116–260, § 1011(c)(1), in introductory provisions, inserted “and by” after “in carrying out this part,”

    3. Struck · 42 U.S.C. § 6863(b)(3)

      Pub. L. 116–260, § 1011(c)(1), in introductory provisions, struck out “, and the Director of the Community Services Administration in carrying out weatherization programs under section 222(a)(12) of the Economic Opportunity Act of 1964” after “section 1474(c) of this title”

    Source evidence

    Code amendment note
    Subsec. (b)(3). Pub. L. 116–260, § 1011(c)(1), in introductory provisions, struck out “and with the Director of the Community Services Administration” after “Director described in paragraph (2)(A)” and, in concluding provisions, inserted “and by” after “in carrying out this part,” and struck out “, and the Director of the Community Services Administration in carrying out weatherization programs under section 222(a)(12) of the Economic Opportunity Act of 1964” after “section 1474(c) of this title”.

    Enacted provision · exact public law section
    (1) in paragraph (3)— (A) by striking “and with the Director of the Community Services Administration”; (B) by inserting “and by” after “in carrying out this part,”; and (C) by striking “, and the Director of the Community Services Administration in carrying out weatherization programs under section 222(a)(12) of the Economic Opportunity Act of 1964”;

  17. Energy Act of 2020

    Pub. L. 116–260 § 1011(c)(2) · 134 Stat. 1182

    1. Added · 42 U.S.C. § 6863(b)(4)(7)

      Pub. L. 116–260, § 1011(c)(2), (3), added par. (4)

    2. Redesignated · 42 U.S.C. § 6863(b)(4)(7)

      Pub. L. 116–260, § 1011(c)(2), (3), redesignated former pars. (4) to (6) as (5) to (7), respectively

    Source evidence

    Code amendment note
    Subsec. (b)(4) to (7). Pub. L. 116–260, § 1011(c)(2), (3), added par. (4) and redesignated former pars. (4) to (6) as (5) to (7), respectively.

    Enacted provision · exact public law section
    (2) by redesignating paragraphs (4) through (6) as paragraphs (5) through (7), respectively; and

25 of 27 references resolved to an enrolled provision · 2 partial

Editorial Notes

References in Text

The Economic Opportunity Act of 1964, referred to in subsec. (c), is Pub. L. 88–452, , 78 Stat. 508. Title II of the Economic Opportunity Act of 1964 was classified generally to subchapter II (§ 2781 et seq.) of chapter 34 of this title prior to repeal by Pub. L. 97–35, title VI, § 683(a), , 95 Stat. 519. Prior to that repeal, section 222(a)(12) of that Act [42 U.S.C. 2809(a)(12)] was redesignated as section 222(a)(5) [42 U.S.C. 2809(a)(5)] by Pub. L. 95–568, § 5(a)(2)(E), , 94 Stat. 2426. For complete classification of this Act to the Code, see Tables.

Amendments1978–2020 · 8 rounds

2020

Subsec. (b)(3). Pub. L. 116–260, § 1011(c)(1), in introductory provisions, struck out “and with the Director of the Community Services Administration” after “Director described in paragraph (2)(A)” and, in concluding provisions, inserted “and by” after “in carrying out this part,” and struck out “, and the Director of the Community Services Administration in carrying out weatherization programs under section 222(a)(12) of the Economic Opportunity Act of 1964” after “section 1474(c) of this title”.

Subsec. (b)(4) to (7). Pub. L. 116–260, § 1011(c)(2), (3), added par. (4) and redesignated former pars. (4) to (6) as (5) to (7), respectively.

2018

Subsec. (d)(1). Pub. L. 115–325, § 203(1), added par. (1) and struck out former par. (1) which related to conditions for reserving funds for direct grants to provide assistance to low-income members of Indian tribes.

Subsec. (d)(2). Pub. L. 115–325, § 203(2), inserted heading, substituted “The amounts” for “The sums”, “low-income members of the Indian tribe” for “individuals for whom such a determination has been made”, and “as the Secretary determines” for “as he determines”, and struck out “on the basis of his determination” before “under this subsection”.

Subsec. (d)(3). Pub. L. 115–325, § 203(3), inserted heading.

1993

Subsec. (b)(1). Pub. L. 103–82 struck out “the Director of the ACTION Agency,” after “Labor,”.

1990

Subsec. (b)(2)(B), (C). Pub. L. 101–440, § 7(b)(1), added subpars. (B) and (C) and struck out former subpar. (B) which read as follows: “designed to insure that (i) the benefits of weatherization assistance in connection with leased dwelling units will accrue primarily to low-income tenants; (ii) the rents on such dwelling units will not be raised because of any increase in the value thereof due solely to weatherization assistance provided under this part; and (iii) no undue or excessive enhancement will occur to the value of such dwelling units.”

Subsec. (b)(5), (6). Pub. L. 101–440, § 7(b)(2), added pars. (5) and (6).

1988

Subsec. (b)(2)(A). Pub. L. 100–418 substituted “National Institute of Standards and Technology” for “National Bureau of Standards”.

1984

Subsec. (b)(1), (2)(A). Pub. L. 98–479 substituted “Health and Human Services” for “Health, Education, and Welfare”.

1980

Subsecs. (a), (b)(1), (3). Pub. L. 96–294, § 577(2), substituted “Secretary” for “Administrator” wherever appearing.

Subsec. (b)(4). Pub. L. 96–294, § 574, added par. (4).

Subsec. (c). Pub. L. 96–294, §§ 573(b), 577(2), substituted “Secretary” for “Administrator” wherever appearing, and struck out provisions relating to determinations respecting inapplicability of allocation requirement and priority for an applicable community action agency.

Subsecs. (d), (e). Pub. L. 96–294, § 577(2), substituted “Secretary” for “Administrator” wherever appearing.

1978

Subsec. (a). Pub. L. 95–619, § 231(a)(2), substituted “occupied by low-income families” for “in which the head of the household is a low-income person”.

Subsec. (b)(3). Pub. L. 95–619, § 231(b)(1), added par. (3).

Statutory Notes and Related Subsidiaries

Effective Date of 1993 Amendment

Amendment by Pub. L. 103–82 effective , see section 406(b) of Pub. L. 103–82, set out as a note under section 8332 of Title 5, Government Organization and Employees.

Weatherization Assistance Grants Cost Sharing

Pub. L. 106–291, title II, , 114 Stat. 976, provided in part: “That, hereafter, Indian tribal direct grantees of weatherization assistance shall not be required to provide matching funds.”

Provisions of Pub. L. 106–113, div. B, § 1000(a)(3) [title II], , 113 Stat. 1535, 1501A–180, which provided that sums appropriated for weatherization assistance grants were to be contingent on a cost share of 25 percent by each participating State or other qualified participant, were repealed by Pub. L. 106–469, title VI, § 601(a), , 114 Stat. 2040.

Community Services Administration

Community Services Administration, which was established by section 601 of Economic Opportunity Act of 1964, as amended (42 U.S.C. 2941), terminated when Economic Opportunity Act of 1964, Pub. L. 88–452, , 78 Stat. 508, as amended, was repealed, except for titles VIII and X, effective , by section 683(a) of Pub. L. 97–35, title VI, , 95 Stat. 519, which is classified to 42 U.S.C. 9912(a). An Office of Community Services, headed by a Director, was established in Department of Health and Human Services by section 676 of Pub. L. 97–35, which is classified to 42 U.S.C. 9905.

Credits

1976–2020 · 9 acts
  1. 1976Pub. L. 94–385, title IV, § 413, , 90 Stat. 1152
  2. 1978Pub. L. 95–619, title II, § 231(a)(2), (b)(1), , 92 Stat. 3224
  3. 1980Pub. L. 96–294, title V, §§ 573(b), 574, 577(2), , 94 Stat. 759, 760
  4. 1984Pub. L. 98–479, title II, § 201(h), , 98 Stat. 2228
  5. 1988Pub. L. 100–418, title V, § 5115(c), , 102 Stat. 1433
  6. 1990Pub. L. 101–440, § 7(b), , 104 Stat. 1012
  7. 1993Pub. L. 103–82, title IV, § 405(l), , 107 Stat. 922
  8. 2018Pub. L. 115–325, title II, § 203, , 132 Stat. 4462
  9. 2020Pub. L. 116–260, div. Z, title I, § 1011(c), , 134 Stat. 2442.
Show as published

(Pub. L. 94–385, title IV, § 413, , 90 Stat. 1152; Pub. L. 95–619, title II, § 231(a)(2), (b)(1), , 92 Stat. 3224; Pub. L. 96–294, title V, §§ 573(b), 574, 577(2), , 94 Stat. 759, 760; Pub. L. 98–479, title II, § 201(h), , 98 Stat. 2228; Pub. L. 100–418, title V, § 5115(c), , 102 Stat. 1433; Pub. L. 101–440, § 7(b), , 104 Stat. 1012; Pub. L. 103–82, title IV, § 405(l), , 107 Stat. 922; Pub. L. 115–325, title II, § 203, , 132 Stat. 4462; Pub. L. 116–260, div. Z, title I, § 1011(c), , 134 Stat. 2442.)

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