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"(A) is carried out in accordance with rules of the Administrator; and

"(B) imposes

"(i) no direct costs, with respect to individuals who are occupants of dwelling units in any State having a supplemental State energy conservation plan approved under section 367, and

"(ii) only reasonable costs, as determined by the Administrator, with respect to any person not described in clause (i).

Rules referred to in subparagraph (A) may include minimum qualifications for, and provisions with respect to conflicts of interest of, persons carrying out such energy audits.

"(4) The term 'energy conservation measure' means a measure which modifies any building or industrial plant, the construction of which has been completed prior to the date of enactment of the Energy Conservation and Production Act, if such measure has been determined by means of an energy audit or by the Administrator, by rule under section 365 (e) (1), to be likely to improve the efficiency of energy use and to reduce energy costs (as calculated on the basis of energy costs reasonably projected over time, as determined by the Administrator) in an amount sufficient to enable a person to recover the total cost of purchasing and installing such measure (without regard to any tax benefit or Federal financial assistance applicable thereto) within the period of

"(A) the useful life of the modification involved, as determined by the Administrator, or

"(B) 15 years after the purchase and installation of such

measure,

whichever is less. Such term does not include (i) the purchase or installation of any appliance, (ii) any conversion from one fuel or source of energy to another which is of a type which the Administrator, by rule, determines is ineligible on the basis that such type of conversion is inconsistent with national policy with respect to energy conservation or reduction of imports of fuels, or (iii) any measure, or type of measure, which the Administrator determines does not have as its primary purpose an improvement in efficiency of energy use.

(5) The term 'industrial plant' means any fixed equipment or facility which is used in connection with, or as part of, any process or system for industrial production or output.

Post, p. 1160.

"(6) The term 'renewable-resource energy measure' means a measure which modifies any building or industrial plant, the construction of which has been completed prior to the date of enactment of the Energy Conservation and Production Act, if such measure has been determined by means of an energy audit or by the Administrator, by rule under section 365 (e) (1), to- Post, p. 1162. "(A) involve changing, in whole or in part, the fuel or source of the energy used to meet the requirements of such building or plant from a depletable source of energy to a nondepletable source of energy; and

"(B) be likely to reduce energy costs (as calculated on the basis of energy costs reasonably projected over time, as determined by the Administrator) in an amount sufficient to enable a person to recover the total cost of purchasing and

42 USC 6321.

Guidelines. 42 USC 6327.

Publication in
Federal
Register.

Rules.

installing such measure (without regard to any tax benefit or Federal financial assistance applicable thereto) within the period of―

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"(i) the useful life of the modification involved, as determined by the Administrator, or

"(ii) 25 years after the purchase and installation of such measure,

whichever is less.

Such term does not include the purchase or installation of any appliance.".

SUPPLEMENTAL STATE ENERGY CONSERVATION PLANS

SEC. 432. (a) Part C of the title 3 of the Energy Policy and Conservation Act is amended by adding at the end thereof the following new section:

"SUPPLEMENTAL STATE ENERGY CONSERVATION PLANS

"SEC. 367. (a) (1) The Administrator shall, within 6 months after the date of enactment of the Energy Conservation and Production Act, prescribe guidelines with respect to measures required to be included in, and guidelines for the development, modification, and funding of, supplemental State energy conservation plans. Such guidelines shall include the provisions of one or more model supplemental State energy conservation plans with respect to the requirements of this section. "(2) In prescribing such guidelines, the Administrator shall solicit and consider the recommendations of, and be available to consult with, the Governors of the States as to such guidelines. At least 60 days prior to the date of final publication of such guidelines, the Administrator shall publish proposed guidelines in the Federal Register and invite public comments thereon.

"(3) The Administrator shall invite the Governor of each State to submit to the Administrator a proposed supplemental State energy conservation plan which meets the requirements of subsection (b) and any guidelines applicable thereto.

(4) The Administrator may prescribe rules applicable to supplemental State energy conservation plans under this section pursuant to which

"(A) a State may apply for and receive assistance for a supplemental State energy conservation plan under this section; and "(B) such plan under this section may be administered; as if such plan was a part of the State energy conservation plan pro42 USC 6322. gram under section 362. Such rules shall not have the effect of delaying funding of the program under section 362.

42 USC 6323.

"(5) Section 363 (b) (2) (A), the last sentence of section 363 (b) (2); Post, p. 1162, section 363 (b) (3), and section 363 (c) shall apply to the supplemental State energy conservation plans to the same extent as such provisions apply to State energy conservation plans.

Federal financial as

sistance.

(6) The Administrator may grant Federal financial assistance pursuant to this section for the purpose of assisting any State in the development of any supplemental State energy conservation plan or in the implementation or modification of such a plan or part thereof which has been submitted to and approved by the Administrator pursuant to this section.

"(b) (1) Each proposed supplemental State energy conservation plan to be eligible for Federal financial assistance under this section shall include

"(A) procedures for carrying out a continuing public education effort to increase significantly public awareness of

"(i) the energy and cost savings which are likely to result from the implementation (including implementation through group efforts) of energy conservation measures and renewable-resource energy measures; and

"(ii) information and other assistance (including information as to available technical assistance) which is or may be available with respect to the planning, financing, installing, and with respect to monitoring the effectiveness of measures likely to conserve, or improve efficiency in the use of, energy, including energy conservation measures and renewableresource energy measures;

"(B) procedures for insuring that effective coordination exists among various local, State, and Federal energy conservation programs within and affecting such State, including any energy extension service program administered by the Energy Research and Development Administration;

"(C) procedures for encouraging and for carrying out energy audits with respect to buildings and industrial plants within such State; and

"(D) any procedures, programs, or other actions required by the Administrator pursuant to paragraph (2).

"(2) The Administrator may promulgate guidelines under this Guidelines. section to provide that, in order to be eligible for Federal assistance under this section, a supplemental State energy conservation plan shall include, in addition to the requirements of paragraph (1) of this subsection, one or more of the following:

"(A) the formation of, and appointment of qualified individuals to be members of, a State energy conservation advisory committee. Such a committee shall have continuing authority to advise and assist such State and its political subdivisions, with respect to matters relating to energy conservation in such State, including the carrying out of such State's energy conservation plan, the development and formulation of any improvements or amendments to such plan, and the development and formulation of procedures which meet the requirements of subparagraphs (A), (B), and (C) of subsection (b) (1). The applicable guidelines shall be designed to assure that each such committee carefully considers the views of the various energy-consuming sectors within the State and of public and private groups concerned with energy conservation;

"(B) an adequate program within such State for the purpose of preventing any unfair or deceptive acts or practices affecting commerce which relate to the implementation of energy conservation measures and renewable-resource energy measures;

"(C) procedures for the periodic verification (by use of sampling or other techniques), at reasonable times, and under reasonable conditions, by qualified officials designated by such State of the purchase and installation and actual cost of energy conservation measures and renewable-resource energy measures for which financial assistance was obtained under section 509 of the Housing and Urban Development Act of 1970, or section 451 of the Energy Conservation and Production Act; and

"(D) assistance for individuals and other persons to undertake cooperative action to implement energy conservation measures and renewable-resource energy measures.

State energy conservation advisory com

mittee.

Post, p. 1162.

Post, p. 1165.

Appropriation authorization.

42 USC 6323.

42 USC 6325.

Cooperation with State agencies.

15 USC 58.

Infra
Post, p. 1165.
Energy audits.

Ante, p. 1160.

12 USC 1701z1 et seq.

12 USC 1701z8.

"(c) There are authorized to be appropriated for supplemental State energy conservation plans which are approved under this section $25,000,000 for fiscal year 1977, $40,000,000 for fiscal year 1978, and $40,000,000 for fiscal year 1979.".

(b) Section 363 (b) (2) of the Energy Policy and Conservation Act is amended by adding at the end thereof the following:

"No such plan shall be disapproved without notice and an opportunity to present views.".

(c) Section 363 (c) of the Energy Policy and Conservation Act is amended by (1) striking out "project or program" and "projects or programs" in the first sentence and inserting in lieu thereof "plan, program, projects, measures, or systems" in each case; and (2) striking out "examination" in the second sentence and inserting in lieu thereof "examination, at reasonable times and under reasonable conditions.". (d) Section 365 of the Energy Policy and Conservation Act is amended

(1) by redesignating subsection (d) as subsection (f);

(2) by adding immediately after subsection (c) the following two new subsections:

"(d) The Federal Trade Commission shall (1) cooperate with and assist State agencies which have primary responsibilities for the protection of consumers in activities aimed at preventing unfair and deceptive acts or practices affecting commerce which relate to the implementation of measures likely to conserve, or improve efficiency in the use of, energy, including energy conservation measures and renewable-resource energy measures, and (2) undertake its own program, pursuant to the Federal Trade Commission Act, to prevent unfair or deceptive acts or practices affecting commerce which relate to the implementation of any such measures.

"(e) Within 90 days after the date of enactment of this subsection, the Administrator shall

"(1) develop, by rule after consultation with the Secretary of Housing and Urban Development, and publish a list of energy conservation measures and renewable-resource energy measures which are eligible (on a national or regional basis) for financial assistance pursuant to section 509 of the Housing and Urban Development Act of 1970 or section 451 of the Energy Conservation and Production Act;

"(2) designate, by rule, the types of, and requirements for, energy audits."; and

(3) in subsection (f), as redesignated by paragraph (1), by inserting "(other than section 367)" after "part".

PART C-NATIONAL ENERGY CONSERVATION AND RENEWABLE-RESOURCE
DEMONSTRATION PROGRAM FOR EXISTING DWELLING UNITS

ENERGY CONSERVATION AND RENEWABLE-RESOURCE DEMONSTRATION

SEC. 441. Title V of the Housing and Urban Development Act of 1970 is amended by adding the following new section at the end thereof:

"ENERGY CONSERVATION AND RENEWABLE-RESOURCE DEMONSTRATION

"SEC. 509. (a) The Secretary shall undertake a national demonstration program designed to test the feasibility and effectiveness of various forms of financial assistance for encouraging the installation or implementation of approved energy conservation measures and

approved renewable-resource energy measures in existing dwelling units. The Secretary shall carry out such demonstration program with a view toward recommending a national program or programs designed to reduce significantly the consumption of energy in existing dwelling

units.

"(b) The Secretary is authorized to make financial assistance available pursuant to this section in the form of grants, low-interest-rate loans, interest subsidies, loan guarantees, and such other forms of assistance as the Secretary deems appropriate to carry out the purposes of this section. Assistance may be made available to both owners of dwelling units and tenants occupying such units.

"(c) In carrying out the demonstration program required by this section, the Secretary shall

"(1) provide assistance in a wide variety of geographic areas to reflect differences in climate, types of dwelling units, and income levels of recipients in order to provide a national profile for use in designing a program which is to be operational and effective nationwide;

"(2) evaluate the appropriateness of various financial incentives for different income levels of owners and occupants of existing dwelling units;

66

"(3) take into account and evaluate any other financial assistance which may be available for the installation or implementation of energy conservation and renewable-resource energy

measures;

"(4) make use of such State and local instrumentalities or other public or private entities as may be appropriate in carrying out the purposes of this section in coordination with the provisions of part C of title III of the Energy Policy and Conservation Act;

(5) consider, with respect to various forms of assistance and procedures for their application, (A) the extent to which energy conservation measures and renewable-resource energy measures are encouraged which would otherwise not have been undertaken, (B) the minimum amount of Federal subsidy necessary to achieve the objectives of a national program, (C) the costs of administering the assistance, (D) the extent to which the assistance may be encumbered by delays, redtape, and uncertainty as to its availability with respect to any particular applicant, (E) the factors which may prevent the assistance from being available in certain areas or for certain classes of persons, and (F) the extent to which fraudulent practices can be prevented; and

"(6) consult with the Administrator and the heads of such other Federal agencies as may be appropriate. "(d) (1) The amount of any grant made pursuant to this section shall not exceed the lesser of

"(A) with respect to an approved energy conservation measure, (i) $400, or (ii) 20 per centum of the cost of installing or otherwise implementing such measure; and

"(B) with respect to an approved renewable-resource energy measure, (i) $2,000, or (ii) 25 per centum of the cost of installing or otherwise implementing such measure.

The Secretary may, by rule, increase such percentages and amounts in the case of an applicant whose annual gross family income for the preceding taxable year is less than the median family income for the housing market area in which the dwelling unit which is to be modified by such measure is located, as determined by the Secretary. The Secretary may also modify the limitations specified in this paragraph if necessary in order to achieve the purposes of this section.

Financial

assistance.

42 USC 6321.

Grant limitations.

Rule.

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