Rural energy savings program

Section 6407 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8107a) is amended— (1) in subsection (b)— (A) in paragraph (1)— (i) in subparagraph (A), by inserting, if the entity continues to serve rural areas (as defined in section 343(a)(13)(A) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1991(a)(13)(A)) before the semicolon; (ii) in subparagraph (B), by striking or at the end; and (iii) by redesignating subparagraph (C) as subparagraph (E) and 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, quasi-public, or nonprofit entity that uses innovative financing techniques and market development tools to accelerate the deployment of energy efficiency technology; or; (B) by striking paragraph (2) and inserting the following: (2) Energy efficiency measures The term energy efficiency measures means, with respect to any property service by an eligible entity— (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 system); and (B) the replacement of a manufactured housing unit or large appliance with a substantially similar manufacturing housing unit or appliance, respectively, if that replacement is a cost-effective option with respect to energy savings.; (2) in subsection (c)— (A) in the subsection heading, by inserting and grants before to; (B) by striking paragraph (1) and inserting the following: (1) In general Subject to 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) of this paragraph, a grant in accordance with paragraph (11).; (C) by redesignating paragraphs (2) through (9) as paragraphs (3) through (10), respectively, and inserting after paragraph (1) the following: (2) Prioritization The Secretary shall give priority to applications from eligible entities serving at least 80 percent of their ratepayers residing in rural areas, as defined in section 343(a)(13)(A) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1991(a)(13)(A)).; (D) in paragraph (3) (as so redesignated by subparagraph (C) of this paragraph)— (i) in the paragraph heading, by inserting for loans before the period; and (ii) in subparagraph (A)(i), by striking that is; (E) by striking paragraph (6) (as so redesignated by subparagraph (C) of this paragraph) and inserting the following: (6) Repayment (A) In general Subject to subparagraph (B) of this paragraph, with respect to a loan under paragraph (1)(A)— (i) the term shall not exceed 20 years from the date on which the loan is closed; and (ii) except as provided in paragraph (8), the repayment of each advance shall be amortized for a period not to exceed 10 years. (B) Extensions The Secretary may extend the term of a loan under subparagraph (A)(i), or the deadline for repayment of an advance under subparagraph (A)(ii), as the Secretary determines appropriate.; (F) in paragraph (8) (as so redesignated by subparagraph (C) of this paragraph)— (i) in subparagraph (B), by striking (1) and inserting (1)(A); and (ii) in subparagraph (C), by striking Repayment and inserting Subject to an applicable extension under paragraph (6)(B), repayment; (G) by striking paragraph (9) (as so redesignated by subparagraph (C) of this paragraph) and inserting the following: (9) Limitations (A) Special advances All special advances shall be made under a loan described in paragraph (1) during the first 10 years of the term of the loan. (B) Replacement of manufactured housing units or large appliances Not more than 10 percent of the total annual amount of budget authority for loans described in paragraph (1) may be used for the replacement of manufactured housing units or large appliances.; and (H) by adding at the end the following: (11) Grants (A) In general At the election of an eligible entity that receives a loan under this subsection, the Secretary may provide to the eligible entity a grant to pay for a portion of the costs incurred in— (i) making repairs to the property of a qualified consumer that facilitates the energy efficiency measures for the property financed through a loan provided to the qualified consumer under subsection (d); or (ii) providing technical assistance, outreach, and training. (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.; (3) in subsection (d)— (A) in paragraph (1)— (i) in the matter preceding subparagraph (A), by inserting or grant before funds; and (ii) by striking subparagraphs (B) and (C) 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, if the loan term does not exceed 20 years; and (ii) shall finance energy efficiency measures for the purpose of decreasing energy usage or costs of the qualified consumer by an amount that ensures, to the maximum extent practicable, that the applicable loan term described in clause (i) will not pose an undue financial burden on the qualified consumer, as determined by the eligible entity; (C) shall not be used to fund purchases of, or modifications to, personal property unless the personal property— (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;; and (B) 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.; (4) in subsection (e)— (A) in the subsection heading, by inserting outreach, before and technical assistance; (B) in paragraph (1)— (i) 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 (ii) in subparagraph (B)(ii), by inserting, outreach, before and training; and (C) by adding at the end the following: (3) Funding Not less than 3 but not more than 5 percent of amounts appropriated under subsection (i) may be used to provide outreach, training, and technical assistance under this subsection.; and (5) in subsection (i), by striking 2014 through 2023 and inserting 2027 through 2031.

Section 6407 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8107a) is amended— (1) in subsection (b)— (A) in paragraph (1)— (i) in subparagraph (A), by inserting, if the entity continues to serve rural areas (as defined in section 343(a)(13)(A) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1991(a)(13)(A)) before the semicolon; (ii) in subparagraph (B), by striking or at the end; and (iii) by redesignating subparagraph (C) as subparagraph (E) and 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, quasi-public, or nonprofit entity that uses innovative financing techniques and market development tools to accelerate the deployment of energy efficiency technology; or; (B) by striking paragraph (2) and inserting the following: (2) Energy efficiency measures The term energy efficiency measures means, with respect to any property service by an eligible entity— (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 system); and (B) the replacement of a manufactured housing unit or large appliance with a substantially similar manufacturing housing unit or appliance, respectively, if that replacement is a cost-effective option with respect to energy savings.; (2) in subsection (c)— (A) in the subsection heading, by inserting and grants before to; (B) by striking paragraph (1) and inserting the following: (1) In general Subject to 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) of this paragraph, a grant in accordance with paragraph (11).; (C) by redesignating paragraphs (2) through (9) as paragraphs (3) through (10), respectively, and inserting after paragraph (1) the following: (2) Prioritization The Secretary shall give priority to applications from eligible entities serving at least 80 percent of their ratepayers residing in rural areas, as defined in section 343(a)(13)(A) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1991(a)(13)(A)).; (D) in paragraph (3) (as so redesignated by subparagraph (C) of this paragraph)— (i) in the paragraph heading, by inserting for loans before the period; and (ii) in subparagraph (A)(i), by striking that is; (E) by striking paragraph (6) (as so redesignated by subparagraph (C) of this paragraph) and inserting the following: (6) Repayment (A) In general Subject to subparagraph (B) of this paragraph, with respect to a loan under paragraph (1)(A)— (i) the term shall not exceed 20 years from the date on which the loan is closed; and (ii) except as provided in paragraph (8), the repayment of each advance shall be amortized for a period not to exceed 10 years. (B) Extensions The Secretary may extend the term of a loan under subparagraph (A)(i), or the deadline for repayment of an advance under subparagraph (A)(ii), as the Secretary determines appropriate.; (F) in paragraph (8) (as so redesignated by subparagraph (C) of this paragraph)— (i) in subparagraph (B), by striking (1) and inserting (1)(A); and (ii) in subparagraph (C), by striking Repayment and inserting Subject to an applicable extension under paragraph (6)(B), repayment; (G) by striking paragraph (9) (as so redesignated by subparagraph (C) of this paragraph) and inserting the following: (9) Limitations (A) Special advances All special advances shall be made under a loan described in paragraph (1) during the first 10 years of the term of the loan. (B) Replacement of manufactured housing units or large appliances Not more than 10 percent of the total annual amount of budget authority for loans described in paragraph (1) may be used for the replacement of manufactured housing units or large appliances.; and (H) by adding at the end the following: (11) Grants (A) In general At the election of an eligible entity that receives a loan under this subsection, the Secretary may provide to the eligible entity a grant to pay for a portion of the costs incurred in— (i) making repairs to the property of a qualified consumer that facilitates the energy efficiency measures for the property financed through a loan provided to the qualified consumer under subsection (d); or (ii) providing technical assistance, outreach, and training. (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.; (3) in subsection (d)— (A) in paragraph (1)— (i) in the matter preceding subparagraph (A), by inserting or grant before funds; and (ii) by striking subparagraphs (B) and (C) 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, if the loan term does not exceed 20 years; and (ii) shall finance energy efficiency measures for the purpose of decreasing energy usage or costs of the qualified consumer by an amount that ensures, to the maximum extent practicable, that the applicable loan term described in clause (i) will not pose an undue financial burden on the qualified consumer, as determined by the eligible entity; (C) shall not be used to fund purchases of, or modifications to, personal property unless the personal property— (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;; and (B) 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.; (4) in subsection (e)— (A) in the subsection heading, by inserting outreach, before and technical assistance; (B) in paragraph (1)— (i) 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 (ii) in subparagraph (B)(ii), by inserting, outreach, before and training; and (C) by adding at the end the following: (3) Funding Not less than 3 but not more than 5 percent of amounts appropriated under subsection (i) may be used to provide outreach, training, and technical assistance under this subsection.; and (5) in subsection (i), by striking 2014 through 2023 and inserting 2027 through 2031.