Section 1 Short title
This Act may be cited as the “Rural Energy Savings Act”.
Rural Energy Savings Act
A BILL
To amend the Farm Security and Rural Investment Act of 2002 to modify provisions relating to the rural energy savings program.
Sec. 2 Rural energy savings program modifications
Section 6407 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8107a) is amended—
in subsection (b)—
in paragraph (1)—
in subparagraph (B), by striking “or” at the end;
by redesignating subparagraph (C) as subparagraph (E); and
by inserting after subparagraph (B) the following:
“(C) any Indian Tribe (as defined in section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 5304));
“(D) any public, quasipublic, or nonprofit entity that uses innovative financing techniques and market development tools to accelerate the deployment of clean energy technology (commonly known as a “green bank”); and”
by striking paragraph (2) and inserting the following:
“(2) Energy efficiency measure—The term energy efficiency measure, with respect to any property served by an eligible entity, means—
“(A) a structural improvement or investment in a cost-effective, commercial technology to increase energy efficiency (including cost-effective on- or off-grid renewable energy or energy storage systems); and
“(B) the replacement of a manufactured housing unit or large appliance with a substantially similar manufactured housing unit or appliance, respectively, if that replacement is a cost-effective option with respect to energy savings.”
in subsection (c)—
in the subsection heading, by inserting “and grants” after “Loans”;
by striking paragraph (1) and inserting the following:
“(1) In general—Subject to the requirements of this subsection, the Secretary shall provide—
“(A) loans to eligible entities that agree to use the loan funds to make loans under subsection (d) to qualified consumers for the purpose of implementing energy efficiency measures; and
“(B) at the election of any eligible entity that receives a loan under subparagraph (A), a grant in accordance with paragraph (10).”
in paragraph (2)—
in the paragraph heading, by inserting “for loans” after “Requirements”; and
in subparagraph (A)(i), by striking “that is”;
in paragraph (5)—
by redesignating subparagraphs (A) and (B) as clauses (i) and (ii), respectively, and indenting the clauses appropriately;
in the matter preceding clause (i) (as so redesignated), by striking “With respect to a loan under paragraph (1)” and inserting the following:
“(A) In general—Subject to subparagraph (B), with respect to a loan under paragraph (1)(A)”
by adding at the end the following:
“(B) Extensions—The Secretary may extend the term of a loan under subparagraph (A)(i), or the deadline for the repayment of an advance under subparagraph (A)(ii), as the Secretary determines to be appropriate.”
in paragraph (7)—
in subparagraph (B), by striking “paragraph (1)” and inserting “paragraph (1)(A)”; and
in subparagraph (C), in the matter preceding clause (i), by striking “Repayment of the special advance” and inserting “Subject to an applicable extension under paragraph (5)(B), repayment of a special advance under this paragraph”;
in paragraph (8), by striking “paragraph (1)” and inserting “paragraph (1)(A)”; and
by adding at the end the following:
“(10) Grants
“(A) In general—At the election of an eligible entity that receives a loan under this subsection, the Secretary shall provide to the eligible entity a grant to pay for a portion of the costs incurred in—
“(i) applying for the loan;
“(ii) making a loan to a qualified consumer under subsection (d);
“(iii) making repairs to the property of a qualified consumer that facilitate the energy efficiency measures for the property financed through a loan provided to the qualified consumer under subsection (d);
“(iv) entering into a contract under subsection (e); or
“(v) carrying out any other duties of the eligible entity under this section.
“(B) Amount
“(i) In general—Except as provided in clause (ii), the amount of a grant provided to an eligible entity under this paragraph shall be equal to not more than 5 percent of the amount of the loan provided to the eligible entity under this subsection.
“(ii) Persistent poverty counties—The amount of a grant provided under this paragraph to an eligible entity that will use the grant to make loans under subsection (d) to qualified consumers located in a persistent poverty county (as determined by the Secretary) shall be equal to 10 percent of the amount of the loan provided to the eligible entity under this subsection.”
in subsection (d)—
in paragraph (1)—
in the matter preceding subparagraph (A), by inserting “or grant” before “funds”;
in subparagraph (B)—
by striking “(B) shall finance” and inserting the following:
“(B)(i) may have a term and amortization schedule the length of which is the useful life of the energy efficiency measures implemented using the loan, provided that the loan to the qualified consumer does not exceed 20 years; and
“(ii) shall finance”
in clause (ii) (as so designated), by striking “a loan term of not more than 10 years” and inserting “the applicable loan term described in clause (i)”; and
in subparagraph (C), by striking “unless the personal property is or becomes attached to real property (including a manufactured home) as a fixture;” and inserting
“(i) is a manufactured housing unit or large appliance described in subsection (b)(2)(B); or
“(ii) is or becomes attached to real property as a fixture;”
by adding at the end the following:
“(3) Clarification of eligibility—Notwithstanding any other provision of law (including regulations), an eligible entity may make a loan under this subsection to any qualified consumer located within the service territory of the eligible entity, regardless of whether the qualified consumer is located in a rural area.”
in subsection (e)—
in the subsection heading, by inserting “outreach,” after “training,”;
in paragraph (1)—
in subparagraph (A), by striking “and technical assistance of the program” and inserting “outreach, and technical assistance relating to the program under this section”; and
in subparagraph (B)(ii), by inserting “, outreach,” after “technical assistance”; and
by adding at the end the following:
“(3) Funding—Of the amounts made available under subsection (i), the Secretary may use such sums as are necessary to provide outreach, training, and technical assistance under this subsection.”
in subsection (i), by striking “2023” and inserting “2033”.