---
kind: "section"
citation: "42 U.S.C. § 8235a"
title: "42"
title_heading: "The Public Health and Welfare"
number: "8235a"
heading: "Approval of plans for prototype residential energy efficiency programs and provision of financial assistance for such programs"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/42/8235a"
units:
  - "Chapter 91 — National Energy Conservation Policy"
  - "Subchapter II — Residential Energy Conservation"
  - "Part C — Residential Energy Efficiency Programs"
---

# §8235a. Approval of plans for prototype residential energy efficiency programs and provision of financial assistance for such programs

- (a) **Plan approval—** The [Secretary](/usc/42/8241.md?p=6) may approve any plan developed by a [State](/usc/42/2021b.md?p=14) 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 8235b of this title](/usc/42/8235b.md), the application is approved pursuant to [section 8235c of this title](/usc/42/8235c.md), 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](/usc/42/8259.md?p=4) 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)](#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)](#a-1);
  - (3) the payment by the public utility to the person or persons contracted with under [paragraph (1)](#a-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](/usc/42/2021b.md?p=14) 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](/usc/42/2021b.md?p=14) regulatory authority exercising ratemaking authority over such utility of the contract described in [paragraph (1)](#a-1), the manner of selection described in [paragraph (2)](#a-2), the payment described in [paragraph (3)](#a-3), and the procedure described in [paragraph (4)](#a-4); and
  - (6) the enforcement of the provisions of the contract, entered into pursuant to [paragraph (1)](#a-1), which are required to be included pursuant to [subsection (b)](#b).
- (b) **Contract requirements—** Any contract entered into by a public utility under [subsection (a)(1)](#a-1) shall require any person or persons entering into such contract with a public utility to offer to the [owner](/usc/42/13641.md?p=4) 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 such [owner](/usc/42/13641.md?p=4) or occupant of—
    - (A) the [energy conservation measures](/usc/42/8259.md?p=4) which will be supplied and installed in such residential building pursuant to [paragraph (2)](#b-2);
    - (B) the savings in energy costs that are likely to result from the installation of such [energy conservation measures](/usc/42/8259.md?p=4);
    - (C) suggestions (including suggestions developed by the [Secretary](/usc/42/8241.md?p=6)) of energy conservation techniques, including adjustments in energy use patterns and modifications in household activities, which can be used by the [owner](/usc/42/13641.md?p=4) or occupant of the building to save energy and which do not require the installation of [energy conservation measures](/usc/42/8259.md?p=4); 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](/usc/42/13641.md?p=4) of the residential building, in such building in a timely manner of the [energy conservation measures](/usc/42/8259.md?p=4) which are as specified in the contract and which the [owner](/usc/42/13641.md?p=4) or occupant was informed (pursuant to the inspection under [paragraph (1)](#b-1)) would be supplied and installed in such building; and
  - (3) a written warranty that at a minimum any defect in materials, manufacture, design, or installation of any [energy conservation measures](/usc/42/8259.md?p=4) supplied and installed pursuant to [paragraph (2)](#b-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](/usc/42/8241.md?p=6) may provide financial assistance to any [State](/usc/42/2021b.md?p=14) 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)](#a).
- (d) **Limitation—** The [Secretary](/usc/42/8241.md?p=6) may approve under [subsection (a)](#a) not more than 4 plans for the establishment of prototype residential energy efficiency programs.

## Source credit

(Pub. L. 95–619, title II, § 262, as added Pub. L. 96–294, title V, § 562, June 30, 1980, 94 Stat. 746.)