If S. 1200 is enacted, the Secretary of Energy would be required to establish a "performance incentive," to give consumers a repayment discount. This discount would be no more than the amount of accrued interest on their loan. It would also be based on the performance of the energy efficiency measures used, which would be determined by specified factors.
Spending for this Act in a given year would be based on the amounts authorized in that fiscal year’s appropriations bills.
According to research by the American Council for an Energy-Efficient Economy, 46 states
have energy efficiency programs administered by the state without
federal assistance. While these programs do all offer financial
incentives, there is significant variation between the types of projects
(i.e. government buildings, commercial buildings, residences) that are
covered by each state’s program.
This bill was
drafted with the intention of giving states the most flexibility in
setting up their energy efficiency programs. For states that already
have residential-focused programs opting in may be as simple as
modifying their program to include a performance incentive or
streamlining the repayment process.
The Department of Energy already gives states funds for the purpose of completing energy efficiency projects through the State Energy Program (SEP). This program does include assistance for residential energy efficiency projects, although states use the funding to retrofit schools and other public buildings as well.
Sponsoring Sen. Bernie Sanders (I-VT) & Sen. Ron Wyden (D-OR) Press Release
Alliance to Save Energy (In Favor)
American Council for an Energy-Efficient Economy (In Favor)
Politico(Photo Credit: Institute for Energy Research)