Title II — Home Energy Savings Retrofit Rebate Program
II Home Energy Savings Retrofit Rebate Program
Sec. 202 Partial system rebates
Amount of rebate— In carrying out the Home Energy Savings Retrofit Rebate Program, and subject to the availability of appropriations for such purpose, the Secretary shall provide a homeowner a rebate, to be known as a “partial system rebate”, of up to—
$800 for the purchase and installation of insulation and air sealing within a home of the homeowner, except as provided in section 204; and
$1,500 for the purchase and installation of insulation and air sealing within a home of the homeowner and replacement of an HVAC system, the heating component of an HVAC system, or the cooling component of an HVAC system, of such home, except as provided in section 204.
Specifications—
Cost— Except as provided in section 204, the amount of a partial system rebate provided under this section shall not exceed 30 percent of cost of the purchase and installation of insulation and air sealing under subsection (a)(1), or installation of insulation and air sealing and replacement of an HVAC system, the heating component of an HVAC system, or the cooling component of an HVAC system, under subsection (a)(2). Labor may be included in such cost, but may not exceed—
in the case of a rebate under subsection (a)(1), 50 percent of such cost; and
in the case of a rebate under subsection (a)(2), 25 percent of such cost.
Replacement of an HVAC system, the heating component of an HVAC system, or the cooling component of an HVAC system— In order to qualify for a partial system rebate described in subsection (a)(2)—
any HVAC system, heating component of an HVAC system, or cooling component of an HVAC system installed shall be Energy Star Most Efficient certified;
installation of such an HVAC system, the heating component of an HVAC system, or the cooling component of an HVAC system, shall be completed in accordance with standards specified by the Secretary that are at least as stringent as the applicable guidelines of the Air Conditioning Contractors of America that are in effect on the date of enactment of this Act;
if ducts are present, replacement of an HVAC system, the heating component of an HVAC system, or the cooling component of an HVAC system shall include duct sealing; and
the installation of insulation and air sealing shall occur within 6 months of the replacement of the HVAC system, the heating component of an HVAC system, or the cooling component of an HVAC system.
Additional incentives for contractors— In carrying out the Home Energy Savings Retrofit Rebate Program, the Secretary may provide a $250 payment to a contractor per home for which—
a partial system rebate is provided under this section for the installation of insulation and air sealing, or installation of insulation and air sealing and replacement of an HVAC system, the heating component of an HVAC system, or the cooling component of an HVAC system, by the contractor;
the applicable homeowner has signed and submitted to the Secretary a release form made available pursuant to section 206(b) authorizing the contractor access to information in the utility bills of the homeowner; and
the contractor inputs, into the Department of Energy’s Building Performance Database—
the energy usage for the home for the 12 months preceding, and the 24 months following, the installation of insulation and air sealing or installation of insulation and air sealing and replacement of an HVAC system, the heating component of an HVAC system, or the cooling component of an HVAC system;
a description of such installation or installation and replacement; and
the total cost to the homeowner for such installation or installation and replacement.
Process—
Forms; rebate processing system— Not later than 90 days after the date of enactment of this Act, the Secretary, in consultation with the Secretary of the Treasury, shall—
develop and make available rebate forms required to receive a partial system rebate under this section;
establish a Federal rebate processing system which shall serve as a database and information technology system that will allow homeowners to submit required rebate forms; and
establish a website that provides information on partial system rebates provided under this section, including how to determine whether particular measures qualify for a rebate under this section and how to receive such a rebate.
Submission of forms— In order to receive a partial system rebate under this section, a homeowner shall submit the required rebate forms, and any other information the Secretary determines appropriate, to the Federal rebate processing system established pursuant to paragraph (1).
Funding—
Limitation— For each fiscal year, the Secretary may not use more than 50 percent of the amounts made available to carry out this title to carry out this section.
Allocation— The Secretary shall allocate amounts made available to carry out this section for partial system rebates among the States using the same formula as is used to allocate funds for States under part D of title III of the Energy Policy and Conservation Act (42 U.S.C. 6321 et seq.).
Sec. 203 State-administered rebates
Funding— In carrying out the Home Energy Savings Retrofit Rebate Program, and subject to the availability of appropriations for such purpose, the Secretary shall provide grants to States to carry out programs to provide rebates in accordance with this section.
State participation—
Plan— In order to receive a grant under this section, a State shall submit to the Secretary an application that includes a plan to implement a State program that meets the minimum criteria under subsection (c).
Approval— Not later than 60 days after receipt of a completed application for a grant under this section, the Secretary shall either approve the application or provide to the applicant an explanation for denying the application.
Minimum criteria for State programs— Not later than 6 months after the date of enactment of this Act, the Secretary shall establish and publish minimum criteria for a State program to meet to qualify for funding under this section, including—
that the State program be carried out by the applicable State energy office or its designee;
that a rebate be provided under a State program only for a home energy efficiency retrofit that—
is completed by a contractor who meets minimum training requirements and certification requirements set forth by the Secretary;
includes installation of one or more home energy efficiency retrofit measures for a home that together are modeled to achieve, or are shown to achieve, a reduction in home energy use of 20 percent or more from the baseline energy use of the home;
does not include installation of any measure that the Secretary determines does not improve the thermal energy performance of the home, such as a pool pump, pool heater, spa, or EV charger; and
includes, after installation of the applicable home energy efficiency retrofit measures, a test-out procedure conducted in accordance with guidelines issued by the Secretary of such measures to ensure—
the safe operation of all systems post retrofit; and
that all improvements are included in, and have been installed according to—
manufacturers installation specifications; and
all applicable State and local codes or equivalent standards approved by the Secretary;
that the State program utilize—
for purposes of modeled performance rebates, modeling software approved by the Secretary for determining and documenting the baseline energy use of a home and the reductions in home energy use resulting from the implementation of a home energy efficiency retrofit; and
for purposes of measured performance rebates, methods and procedures approved by the Secretary for determining and documenting the baseline energy use of a home and the reductions in home energy use resulting from the implementation of a home energy efficiency retrofit, including methods and procedures for use of advanced metering infrastructure, weather-normalized data, and open source standards, to measure such baseline energy use and such reductions in home energy use;
that the State program include implementation of a quality assurance program—
to ensure that home energy efficiency retrofits are achieving the stated level of energy savings, that efficiency measures were installed correctly, and that work is performed in accordance with procedures developed by the Secretary, including through quality-control inspections for a portion of home energy efficiency retrofits completed by each applicable contractor; and
under which a quality-control inspection of a home energy efficiency retrofit is performed by a quality assurance provider who—
is independent of the contractor for such retrofit; and
will confirm that such contractor is a contractor who meets minimum training requirements and certification requirements set forth by the Secretary;
that the State program include requirements for a homeowner, contractor, or rebate aggregator to claim a rebate, including that the homeowner, contractor, or rebate aggregator submit any applicable forms approved by the Secretary to the State, including a copy of the certificate provided by the applicable contractor certifying projected or measured reduction of home energy use;
that the State program may include requirements for an entity to be eligible to serve as a rebate aggregator to facilitate the delivery of rebates to homeowners or contractors;
that the State program include procedures for a homeowner to transfer the right to claim a rebate to the contractor performing the applicable home energy efficiency retrofit or to a rebate aggregator that works with the contractor; and
that the State program provide that a homeowner, contractor, or rebate aggregator may claim more than one rebate under the State program, and may claim a rebate under the State program after receiving a partial system rebate under section 202, provided that no 2 rebates may be provided with respect to a home using the same baseline energy use of such home.
Modeled performance rebates—
In general— In carrying out a State program under this section, a State may provide a homeowner, contractor, or rebate aggregator a rebate, to be known as a modeled performance rebate, for an energy audit of a home and a home energy efficiency retrofit that is projected, using modeling software approved by the Secretary, to reduce home energy use by at least 20 percent.
Amount—
In general— Except as provided in section 204, subject to subparagraph (B), the amount of a modeled performance rebate provided under a State program shall be equal to 50 percent of the cost of the applicable energy audit of a home and home energy efficiency retrofit, including the cost of diagnostic procedures, labor, reporting, and modeling.
Limitation— Except as provided in section 204, with respect to an energy audit and home energy efficiency retrofit that is projected to reduce home energy use by—
at least 20 percent, but less than 40 percent, the maximum amount of a modeled performance rebate shall be $2,000; and
at least 40 percent, the maximum amount of a modeled performance rebate shall be $4,000.
Measured performance rebates—
In general— In carrying out a State program under this section, a State may provide a homeowner, contractor, or rebate aggregator a rebate, to be known as a “measured performance rebate”, for a home energy efficiency retrofit that reduces home energy use by at least 20 percent as measured using methods and procedures approved by the Secretary.
Amount—
In general— Except as provided in section 204, subject to subparagraph (B), the amount of a measured performance rebate provided under a State program shall be equal to 50 percent of the cost, including the cost of diagnostic procedures, labor, reporting, and energy measurement, of the applicable home energy efficiency retrofit.
Limitation— Except as provided in section 204, with respect to a home energy efficiency retrofit that is measured as reducing home energy use by—
at least 20 percent, but less than 40 percent, the maximum amount of a measured performance rebate shall be $2,000; and
at least 40 percent, the maximum amount of a measured performance rebate shall be $4,000.
Coordination of rebate and existing State-Sponsored or utility-Sponsored programs— A State that receives a grant under this section is encouraged to work with State agencies, energy utilities, nonprofits, and other entities—
to assist in marketing the availability of the rebates under the applicable State program;
to coordinate with utility or State managed financing programs;
to assist in implementation of the applicable State program, including installation of home energy efficiency retrofits; and
to coordinate with existing quality assurance programs.
Administration and oversight—
Review of approved modeling software— The Secretary shall, on an annual basis, list and review all modeling software approved for use in determining and documenting the reductions in home energy use for purposes of modeled performance rebates under subsection (d). In approving such modeling software each year, the Secretary shall ensure that modeling software approved for a year will result in modeling of energy efficiency gains for any type of home energy efficiency retrofit that is at least as substantial as the modeling of energy efficiency gains for such type of home energy efficiency retrofit using the modeling software approved for the previous year.
Oversight— If the Secretary determines that a State is not implementing a State program that was approved pursuant to subsection (b) and that meets the minimum criteria under subsection (c), the Secretary may, after providing the State a period of at least 90 days to meet such criteria, withhold grant funds under this section from the State.
Sec. 204 Special provisions for moderate income households
Certifications— The Secretary shall establish procedures for certifying that the household of a homeowner is moderate income for purposes of this section.
Percentages— Subject to subsection (c), for households of homeowners that are certified pursuant to the procedures established under subsection (a) as moderate income the—
amount of a partial system rebate under section 202 shall not exceed 60 percent of the applicable purchase and installation costs described in section 202(b)(1); and
amount of—
a modeled performance rebate under section 203 provided shall be equal to 80 percent of the applicable costs described in section 203(d)(2)(A); and
a measured performance rebate under section 203 provided shall be equal to 80 percent of the applicable costs described in section 203(e)(2)(A).
Maximum amounts— For households of homeowners that are certified pursuant to the procedures established under subsection (a) as moderate income the maximum amount—
of a partial system rebate—
under section 202(a)(1) for the purchase and installation of insulation and air sealing within a home of the homeowner shall be $1,600; and
under section 202(a)(2) for the purchase and installation of insulation and air sealing within a home of the homeowner and replacement of an HVAC system, the heating component of an HVAC system, or the cooling component of an HVAC system, of such home, shall be $3,000;
of a modeled performance rebate under section 203 for an energy audit and home energy efficiency retrofit that is projected to reduce home energy use as described in—
section 203(d)(2)(B)(i) shall be $4,000; and
section 203(d)(2)(B)(ii) shall be $8,000; and
of a measured performance rebate under section 203 for a home energy efficiency retrofit that reduces home energy use as described in—
section 203(e)(2)(B)(i) shall be $4,000; and
section 203(e)(2)(B)(ii) shall be $8,000.
Outreach— The Secretary shall establish procedures to—
provide information to households of homeowners that are certified pursuant to the procedures established under subsection (a) as moderate income regarding other programs and resources relating to assistance for energy efficiency upgrades of homes, including the weatherization assistance program implemented under part A of title IV of the Energy Conservation and Production Act (42 U.S.C. 6861 et seq.); and
refer such households, as applicable, to such other programs and resources.
Sec. 205 Evaluation reports to Congress
In general— Not later than 3 years after the date of enactment of this Act and annually thereafter until the termination of the Home Energy Savings Retrofit Rebate Program, the Secretary shall submit to Congress a report on the use of funds made available to carry out this title.
Contents— Each report submitted under subsection (a) shall include—
how many home energy efficiency retrofits have been completed during the previous year under the Home Energy Savings Retrofit Rebate Program;
an estimate of how many jobs have been created through the Home Energy Savings Retrofit Rebate Program, directly and indirectly;
a description of what steps could be taken to promote further deployment of energy efficiency and renewable energy retrofits;
a description of the quantity of verifiable energy savings, homeowner energy bill savings, and other benefits of the Home Energy Savings Retrofit Rebate Program;
a description of any waste, fraud, or abuse with respect to funds made available to carry out this title; and
any other information the Secretary considers appropriate.
Sec. 206 Administration
In general— The Secretary shall provide such administrative and technical support to contractors, rebate aggregators, States, and Indian Tribes as is necessary to carry out this title.
Information collection— The Secretary shall establish, and make available to a homeowner, or the homeowner’s designated representative, seeking a rebate under this title, release forms authorizing access by the Secretary, or a designated third-party representative to information in the utility bills of the homeowner with appropriate privacy protections in place.
Sec. 207 Treatment of rebates
For purposes of the Internal Revenue Code of 1986, gross income shall not include any rebate received under this title.
Sec. 208 Authorization of appropriations
In general— There are authorized to be appropriated to the Secretary to carry out this title $1,000,000,000 for each of fiscal years 2020 through 2025, to remain available until expended.
Tribal allocation— Of the amounts made available pursuant to subsection (a) for a fiscal year, the Secretary shall work with Indian Tribes and use 2 percent of such amounts to carry out a program or programs that as close as possible reflect the goals, requirements, and provisions of this title, taking into account any factors that the Secretary determines to be appropriate.