Sec. 33102. Loan and grant program for solar installations in low-income and underserved areas
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In this section: The term administrative expenses has such meaning as may be established by the Secretary. The term community solar facility means a photovoltaic solar electricity generating facility that, as determined by the Secretary— through a voluntary program, provides electric power or financial benefit to, or is owned by, multiple community members; has a nameplate rating of 2 megawatts or less; is located in or near a community of subscribers; and the owner or operator of which reserves not less than 25 percent of the quantity of electricity generated by the facility for low-income households that are subscribers to the facility.
The term eligible entity means— a low-income household; a unit of State, territorial, or local government; an Indian Tribe; a Native Hawaiian community-based organization; any other national or regional entity that— deploys a safe, high-quality photovoltaic solar electricity generating facility for consumers under a model that maximizes energy savings to those consumers; and has experience, as determined by the Secretary, installing solar systems using a job training or community volunteer-based installation model; and for the loan program only, in addition to entities described in subsections
(A)through (E), a private entity that— deploys a safe, high-quality photovoltaic solar electricity generating facility for consumers under a model that maximizes energy savings to those consumers; and will install solar systems using a job training installation model. The term grant-eligible household means a low-income household the members of which reside in an owner-occupied home. The term Indian Tribe means any Indian Tribe, band, nation, or other organized group or community, including any Alaska Native village, Regional Corporation, or Village Corporation (as defined in, or established pursuant to, the Alaska Native Claims Settlement Act ( 43 U.S.C. 1601 et seq.)), that is recognized as eligible for the special programs and services provided by the United States to Indians because of their status as Indians. The term low-income household means a household with an income equal to 80 percent or less of the applicable area median income, as defined for the applicable year by the Secretary of Housing and Urban Development. The term multi-family affordable housing means any federally subsidized affordable housing complex in which at least 50 percent of the units are reserved for low-income households. The term Native Hawaiian community-based organization means any organization that is composed primarily of Native Hawaiians from a specific community and that assists in the social, cultural, and educational development of Native Hawaiians in that community. The term photovoltaic solar electricity generating facility means— a generator that creates electricity from light photons; and the accompanying hardware enabling that electricity to flow— onto the electric grid; or into an energy storage device. The term Secretary means the Secretary of Energy. The term subscriber means an electricity consumer who owns a subscription, or an equivalent unit or share of the capacity or generation, of a community solar facility. The term subscription means a share in the capacity, or a proportional interest in the solar electricity generation, of a community solar facility. The term underserved area means— a geographical area with low or no photovoltaic solar deployment, as determined by the Secretary; or trust land, as defined in section 3765 of title 38, United States Code. The Secretary shall establish a program under which the Secretary shall provide loans and grants to eligible entities for use in accordance with this section. Subject to the availability of appropriations, the Secretary shall make grants and issue loans in accordance with this subsection. Not more than 50 percent of funds made available pursuant to subparagraph
(A)for a fiscal year shall be used to provide loans to eligible entities for— construction or installation of community solar facilities; or construction or installation of photovoltaic solar electricity generating facilities to serve multi-family affordable housing. After allocating amounts to carry out subparagraph (B), the Secretary shall use the remaining funds made available pursuant to subparagraph
(A)for a fiscal year to provide grants to eligible entities for eligible uses described in subsection (e). In providing loans and grants under this subsection, the Secretary shall take such actions as may be necessary to ensure that— the assistance provided under this subsection is used to facilitate and encourage innovative solar installation and financing models, under which the recipients develop and install photovoltaic solar electricity generating facilities that provide significant savings to low-income households while providing job training or community engagement opportunities with respect to each solar system installed; the photovoltaic solar electricity generating facilities installed using assistance provided under this subsection are safe, high-quality systems that comply with local building and safety codes and standards; the program under this section establishes and fosters a partnership between the Federal Government and eligible entities, resulting in efficient development of solar installations with— minimal governmental intervention; limited governmental regulation; and significant involvement by nonprofit and private entities; photovoltaic solar electricity generating facilities installed using assistance provided under this subsection— include job training and community participation to the extent practicable; and may include community participation in which job trainees and volunteers assist in the development of solar projects; assistance provided under this subsection prioritizes development in underserved areas; photovoltaic solar electricity generating facilities are developed using assistance provided under this subsection on a geographically diverse basis among the eligible entities; and to the maximum extent practicable, solar installation activities for which assistance is provided under this section leverage, or connect grant-eligible households to, federally or locally subsidized weatherization and energy efficiency efforts that meet or exceed local energy efficiency standards. The Secretary shall select eligible entities to receive loans or grants under this section through a nationwide competitive process, to be established by the Secretary. To be eligible to receive a loan or grant under this section, an eligible entity shall submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require. In selecting eligible entities to receive loans or grants under this section, the Secretary shall, at a minimum— require that the eligible entity— enter into a grant or loan agreement, as applicable, under subsection (d); and has obtained financial commitments (or has demonstrated the capacity to obtain financial commitments) necessary to comply with that agreement; ensure that loans and grants are provided, and amounts are used, in a manner that results in geographical diversity throughout the United States and within States, territories, and Indian tribal land among photovoltaic solar electricity generating facilities installed using the assistance provided under this section; to the maximum extent practicable, expand photovoltaic solar energy availability to— geographical areas, throughout the United States and within States, territories, and Indian tribal land, with— low photovoltaic solar penetration; or areas with a higher cost burden with respect to the deployment or installation of photovoltaic solar electricity generating facilities; rural areas; Indian tribes; and other underserved areas, including Appalachian and Alaska Native communities; take into account the warranty period and quality of the applicable photovoltaic solar electricity generating facility equipment and any necessary interconnecting equipment; and ensure all calculations for estimated household energy savings are based solely on electricity offsets from the photovoltaic solar electricity generating facilities. As a condition of receiving a loan or grant under this section, an eligible entity shall enter into a loan or grant agreement, as applicable, with the Secretary. A loan or grant agreement under this subsection shall— require the Secretary to rescind any amounts provided to the eligible entity that are not used during the 2-year period beginning on the date on which the amounts are initially distributed to the eligible entity, except in any case in which the eligible entity has demonstrated to the satisfaction of the Secretary that a longer period, not to exceed 3 years after the date of initial distribution, is necessary to deliver proposed services; for a loan provided under this section, establish— an interest rate equal to the then-current cost of funds to the Department of the Treasury for obligations of comparable maturity to the loan; and a payout time that maximizes the savings to subscribers during the effective period of the agreement; and contain such other terms as the Secretary may require to ensure compliance with the requirements of this section. An eligible entity shall use a loan or grant provided under this section only for the following activities, for the purpose of developing new photovoltaic solar electricity generating facilities in the United States for low-income households and individuals who otherwise would likely be unable to afford or purchase photovoltaic solar electricity generating facilities: To pay the costs of— photovoltaic solar equipment and storage and all hardware or software components relating to safely producing, monitoring, and connecting the system to the electric grid or onsite storage; and installation, including all direct labor costs associated with installing the photovoltaic solar equipment and storage. To fund onsite job training and community or volunteer engagement, including— job training costs directly associated with the solar projects funded under this section; and job training opportunities that may cover the full range of the solar value chain, such as marketing and outreach, customer acquisition, system design, and installation positions. To fund entities that have a demonstrated ability, as determined by the Secretary— to advise State and local entities regarding low-income solar policy, regulatory, and program design to continue and expand the work of the entities; to foster community outreach and education regarding the benefits of photovoltaic solar energy for low-income and disadvantaged communities; or to provide apprenticeship program opportunities registered and approved by— the Office of Apprenticeship of the Department of Labor pursuant to part 29 of title 29, Code of Federal Regulations (or successor regulations); or a State Apprenticeship Agency recognized by that Office. To pay the administrative expenses of the eligible entity, including preproject feasibility efforts, associated with delivering proposed services, subject to the requirement that not more than 15 percent of the total amount of the assistance provided to the eligible entity under this section may be used for administrative expenses. During the period beginning on the date of initial distribution to an eligible entity of a loan or grant under this section and ending on the termination date of the loan or grant under subsection (g), the eligible entity shall maintain such records and adopt such administrative practices as the Secretary may require to ensure compliance with the requirements of this section and the applicable loan or grant agreement. If the Secretary determines that an eligible entity that receives a grant or loan under this section has not, during the 2-year period beginning on the date of initial distribution to the eligible entity of the assistance (or such longer period as is established under subsection (d)(2)(B)), substantially fulfilled the obligations of the eligible entity under the applicable loan or grant agreement, the Secretary shall— rescind the balance of any funds distributed to, but not used by, the eligible entity under this section; and use those amounts to provide other loans or grants in accordance with this section. The Secretary shall terminate a loan or grant provided under this section on a determination that the total amount of the loan or grant (excluding any interest, fees, and other earnings of the loan or grant) has been— fully expended by the eligible entity; or returned to the Secretary. Not later than 90 days after the date of enactment of this Act, the Secretary shall promulgate such regulations as the Secretary determines to be necessary to carry out this section, to take effect on the date of promulgation. There is authorized to be appropriated to the Secretary to carry out this section $200,000,000 for each of fiscal years 2018 through 2022, to remain available until expended.
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Sec. 33102
Loan and grant program for solar installations in low-income and underserved areas
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