Solar Energy Bank Act

(Reported to House from the Committee on Banking, Finance and Urban Affairs with amendment, H. Rept. 96-625)

National Solar and Energy Conservation Incentives Act - Declares that the purpose of this Act is to: (1) assist residential and small commercial customers of public utilities in financing and installing energy conservation measures, including solar energy systems; (2) simplify the process of obtaining and installing such measures; (3) assure quality control and economical investment in such measures; (4) establish a Solar Energy and Energy Conservation Bank to provide financing for such measures; (5) provide new secondary financing authority for the purchase of loans made to install solar energy systems and energy conserving improvements; and (6) improve the weatherization grant program for low-income persons.

=Title I: Amendments to Utility Program= - Amends the residential energy conservation title of the National Energy Conservation Policy Act to extend the definition of "residential building" to include: (1) any building used for residential occupancy which contains at least one dwelling unit; and (2) specified commercial buildings.

Requires that each utility program under such title contain procedures authorizing utilities to reinspect buildings equipped with conservation measures to determine the extent to which such measures have been installed.

Amends the requirements for approval of proposed residential energy conservation plans to require that contractors or suppliers of residential energy conservation measures seeking to be included on the list of approved contractors and suppliers provide one year warranties on materials and installation of such measures and express a willingness to defer receipt of payment until the reinspection described above is completed. Requires that such list indicate such willingness on the part of such contractors and suppliers to allow deferred payments.

Requires that the list of lending institutions offering financial assistance for the purchase and installation of such conservation measures indicate the availability at each such institution of assistance provided under the Energy Conservation Bank Act.

Amends the requirements under such title concerning accounting and payment of costs of operating a utility program under such Act.

Authorizes public utilities to make loans or capital investment payments to residential building owner customers for the purchase and installation of residential energy conservation measures under specified conditions. Amends the accounting and payment of costs provisions of such title to provide for the financing of such loans and capital investment payments.

Establishes effective dates for the issuance of regulations implementing the provisions of this Act by the Secretary of Energy, Governors or State regulatory agencies, and nonregulated utilities.

Directs the Secretary of Energy to provide assistance to States for the training of residential building inspectors undertaking inspections required by this Act and for the development of approved energy conservation methods and inspections.

Authorizes appropriations for fiscal years 1980 through 1982 to carry out this title.

=Title II: Financial Assistance Provided by the Solar Energy and Energy Conservation Bank= - Solar Energy and Energy Conservation Bank Act - Establishes a Solar Energy and Energy Conservation Bank in the Department of Housing and Urban Development (HUD) to provide financial assistance to owners, purchasers, and tenants of commercial, residential, and agricultural structures for the purchase and installation of qualified solar energy systems and energy conservation improvements, and to nonprofit groups undertaking solar energy programs. Establishes the position of President of the Bank in HUD who shall be appointed by the President with the advice and consent of the Senate. Designates the Secretaries of HUD, Energy, and the Treasury as the Board of Directors of the Bank with the Secretary of HUD as Chairman.

Authorizes the Bank to make payments to financial institutions and public utilities conducting loan programs under the National Energy Conservation Policy Act to reduce the principal obligations on loans or to prepay the interest otherwise due. Directs the Board to establish various levels of such assistance from time to time, taking into account: (1) the prevailing market rates of interest for home mortgages, home improvement loans, agricultural loans, commercial loans, government and corporate bonds; (2) the availability of other federal incentives for solar energy and energy conservation measures, including tax credits; (3) the types and cost of nonrenewable energy resources that predominate in various areas of the country and the costs of systems using such resources; (4) the costs and efficiencies of qualified solar energy systems and energy conserving improvements; and (5) the levels of subsidy needed to induce owners from various income groups to purchase and install qualified solar energy systems and energy conserving improvements in residential, commercial, and agricultural buildings.

Requires financial assistance to vary according to the estimated energy savings resulting from the use of a qualified solar system when assistance is provided to a purchaser of a newly constructed or substantially rehabilitated building containing such a system. States that in computing such energy savings, passive systems will be compared with other passive systems, and active systems to other active systems. Sets forth the maximum amount of such assistance, including the value of any Federal solar energy or conservation tax credit, which shall be provided to various types of structures. Establishes different ceilings on such assistance if the Board determines it is impracticable to vary the level of assistance according to estimated energy savings.

Requires the level of assistance provided to an owner of any one-to-four-family residences for a solar energy system to vary according to: (1) the owner's income; (2) the cost of the system; and (3) the resulting energy savings to the extent it is practicable. Establishes ceilings on the amount of assistance, together with any appropriate tax credit, which may be provided to such owners.

Sets forth maximum amounts of assistance, computed with any applicable tax credit, which may be provided for solar energy systems to owners of existing multifamily residential buildings, commercial buildings, and agricultural structures.

Establishes such ceilings with respect to owners or tenants of existing one-to-four-family residential buildings, varying the level of assistance according to income and cost. Sets forth ceilings on assistance for solar systems provided to owners and tenants of existing residential multifamily buildings, commercial buildings and residential structures.

Establishes limitations on the authority to provide assistance with respect to a loan including limitations on the loan term, interest rate, and collateral, warranties on the improvements financed by the loan, cost-effectiveness of such improvements, availability of inspections, and other factors. Requires 60 percent of the financial assistance made available in any year to be provided for improvements in residential buildings.

Establishes an Advisory Committee for the Bank appointed by the President to represent consumers, the solar energy and energy conservation industry, financial institutions, architects, engineers, and builders.

Directs the Bank to promote the programs established by this title to financial institutions, home improvement contractors, real estate brokers, and consumers. Requires the Bank to: (1) disseminate information developed by HUD and the Department of Energy regarding solar energy and conservation construction technology; (2) coordinate its programs with the secondary market activities of the Government National Mortgage Association, the Federal National Mortgage Association, and the Federal Home Loan Mortgage Corporation; (3) make relevant appraisal techniques available to appraisers; (4) provide technical assistance to nonprofit groups, low-income groups and local governments in formulating solar energy and conservation strategies; and (5) to provide other necessary technical assistance and information to promote the use of solar and energy conservation systems. Predicates such promotional activities on the availability of appropriations provided for such purposes.

Directs the Board to submit an annual report on its activities and recommendations to the President and the Congress. Permits the Bank to use HUD staff members in carrying out its activities and to contract with other entities for such purposes.

Establishes criminal penalties for false and misleading statements made with respect to loans assisted under this Act.

Defines "energy conserving improvements" and "qualified solar energy systems" for the purposes of this Act. Excludes fireplaces, cogenerators, and photovoltaics from the qualified systems eligible for assistance.

Authorizes the use of funds available in the Energy Security Trust Fund for: (1) qualified solar systems in fiscal years 1980 through 1983; (2) energy conserving improvements in fiscal years 1980 through 1983; and (3) promotional activities in fiscal years 1981 to 1983.

Amends the United States Housing Act of 1937 to authorize the Secretary of HUD to fund contracts for financing solar energy systems in existing low-income housing projects not receiving assistance under the National Housing Act. Directs the Secretary to assure that such improvements are cost-effective and to place particular emphasis on projects with oil-fired furnaces. Requires newly constructed or substantially rehabilitated low-income projects to contain solar systems, unless the Secretary determines such a system would not be cost-effective. Permits the Secretary to insure loans for the purchase or installation of individual utility meters in multifamily housing projects if such meters are purchased or installed in connection with other energy conserving improvements or with a solar energy system or the project meets minimum standards of energy conservation established by the Secretary.

=Title III: Secondary Financing= - Authorizes the Solar Energy and Energy Conservation Bank to purchase loans and other advances of credit under this title unless its Board of Directors determines that such action is unnecessary to advance the national program of energy conservation in residential buildings.

Authorizes the Bank to deal in loans and other advances of credit made by public utilities under the National Energy Conservation Policy Act for the financing of energy conserving improvements or solar energy systems in residential, commercial, and agricultural buildings. Permits the Bank to issue its obligations to the Secretary of the Treasury to enable the Bank to carry out its functions. Limits such authority to amounts approved in appropriations Acts. Authorizes the Bank to set the term of such obligations and to redeem them at its option. Directs the Secretary of the Treasury to set the interest rates on such obligations taking into account comparable outstanding obligations of the United States.

Preempts State and local usury laws and laws prohibiting the coverage of loan insurance with respect to loan transactions involving the Bank.

Authorizes the Bank to: (1) sell advances of credit it has purchased to assure that its secondary market operations are fully self-supporting; and (2) pay for services performed in carrying out such operations without regard to limitations on administrative expenses. Limits the amounts of outstanding purchases and commitments to purchase loans to amounts approved in appropriations Acts, never exceeding $4,500,000,000 at any one time.

States that a loan may be purchased only if: (1) it is not used for refinancing; (2) the energy related improvements are purchased and installed after the enactment of this Act; (3) the loan term is from five to 15 years and contains no prepayment penalty; (4) the interest rate and security for the loan are acceptable to the Board; (5) the loan does not exceed $15,000; and (6) the loan meets other requirements the Board may establish.

Authorizes the Bank to purchase and deal in mortgages and other related instruments which are secured by newly constructed one-to-four-family dwelling units with solar energy systems or energy conserving improvements meeting standards established by the Secretary of HUD. States that such a mortgage may only be purchased if: (1) the mortgage term does not exceed 30 years with no prepayment penalty; (2) the interest rate and security of the mortgage loan is acceptable to the Board; (3) the mortgage loan principal does not exceed insurable amounts under the National Housing Act; and (4) the mortgage meets other standards established by the Bank. Authorizes the Bank to issue obligations to the Secretary of the Treasury to carry out its purchases. Preempts State and local usury and loan insurance laws relating to such transactions.

Authorizes the Bank to sell mortgages it has purchased to assure that its secondary market operations are self-supporting and to pay for services rendered while conducting such operations without regard to limitations on administrative expenses.

Limits the outstanding purchases and commitments to purchase mortgages to amounts approved in appropriations Acts never exceeding $500,000,000 at any one time.

Repeals provisions of the National Housing Act which authorized the Government National Mortgage Association to purchase insured energy conserving improvement loans made to low- and moderate-income families at a subsidized rate and provided standby authority to make such purchases at the market rate.

Authorizes the Federal Home Loan Mortgage Corporation and the Federal National Mortgage Association (FNMA) to purchase loans from public utilities which were used to finance energy conserving improvements under the National Energy Conservation Policy Act. Amends the charter of the FNMA to stipulate that the FNMA may deal in loans and other advances of credit for home improvements.

=Title IV: Weatherization Program= - Amends the Energy Conservation in Existing Buildings Act of 1976 to prohibit more than ten percent of any program grant made under such Act from being used for administrative purposes.

Reduces such limitation to five percent in the case of a grant made to a State.

Authorizes the Secretary of Energy to increase expenditures for labor in areas where there are insufficient volunteer and Comprehensive Employment and Training Act workers to install weatherization materials.

Requires the coordination of the weatherization program with other programs of local governments and projects undertaken pursuant to the Economic Opportunity Act of 1964. Repeals the priority in receiving weatherization grants given to community action agencies which have participated in the emergency energy conservation program under the Economic Opportunity Act of 1964.

Directs the Secretary standards and procedures for the weatherization programs in order to achieve uniform results among the States in areas with similar climates.

Directs the President to appoint an energy conservation coordinator to develop a consensus among the Federal agencies responsible for developing energy conservation standards, including fuel price projections, discount rates, inflation rates, climatic character of construction materials. Requires such factors and data to be used by all Federal agencies. Directs the President to report to Congress on such coordination efforts.

Transfers all functions of the Federal Energy Administrator with respect to weatherization assistance for low-income persons to the Secretary of Energy.