HR 1355 — Weatherization Enhancement and Readiness Act of 2025

changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, and existing law in which no 
change is proposed is shown in roman):

 ENERGY CONSERVATION AND PRODUCTION ACT

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 TITLE IV--ENERGY CONSERVATION AND 
 RENEWABLE-RESOURCE ASSISTANCE FOR 
 EXISTING BUILDINGS 

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 Part A--Weatherization Assistance for
 Low-Income Persons

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SEC. 414D. FINANCIAL ASSISTANCE FOR WAP ENHANCEMENT AND INNOVATION.

 (a) Purposes.--The purposes of this section are--
 (1) to expand the number of dwelling units that are 
 occupied by low-income persons that receive 
 weatherization assistance by making such dwelling units 
 weatherization-ready;
 (2) to promote the deployment of renewable energy in 
 dwelling units that are occupied by low-income persons;
 (3) to ensure healthy indoor environments by 
 enhancing or expanding health and safety measures and 
 resources available to dwellings that are occupied by 
 low-income persons;
 (4) to disseminate new methods and best practices 
 among entities providing weatherization assistance; and
 (5) to encourage entities providing weatherization 
 assistance to hire and retain employees who are 
 individuals--
 (A) from the community in which the 
 assistance is provided; and
 (B) from communities or groups that are 
 underrepresented in the home energy performance 
 workforce, including religious and ethnic 
 minorities, women, veterans, individuals with 
 disabilities, and individuals who are 
 socioeconomically disadvantaged.
 (b) Financial Assistance.--The Secretary shall, to the extent 
funds are made available, award financial assistance, on an 
annual basis, through a competitive process to entities 
receiving funding from the Federal Government or from a State, 
tribal organization, or unit of general purpose local 
government through a weatherization program under section 413 
or section 414, or to nonprofit entities, to be used by such an 
entity--
 (1) with respect to dwelling units that are occupied 
 by low-income persons, to--
 (A) implement measures to make such dwelling 
 units weatherization-ready by addressing 
 structural, plumbing, roofing, and electrical 
 issues, environmental hazards, or other 
 measures that the Secretary determines to be 
 appropriate;
 (B) install energy efficiency technologies, 
 including home energy management systems, smart 
 devices, and other technologies the Secretary 
 determines to be appropriate;
 (C) install renewable energy systems (as 
 defined in section 415(c)(6)(A)); and
 (D) implement measures to ensure healthy 
 indoor environments by improving indoor air 
 quality, accessibility, and other healthy homes 
 measures as determined by the Secretary;
 (2) to improve the capability of the entity--
 (A) to significantly increase the number of 
 energy retrofits performed by such entity;
 (B) to replicate best practices for work 
 performed pursuant to this section on a larger 
 scale;
 (C) to leverage additional funds to sustain 
 the provision of weatherization assistance and 
 other work performed pursuant to this section 
 after financial assistance awarded under this 
 section is expended; and
 (D) to hire and retain employees who are 
 individuals described subsection (a)(5);
 (3) for innovative outreach and education regarding 
 the benefits and availability of weatherization 
 assistance and other assistance available pursuant to 
 this section;
 (4) for quality control of work performed pursuant to 
 this section;
 (5) for data collection, measurement, and 
 verification with respect to such work;
 (6) for program monitoring, oversight, evaluation, 
 and reporting regarding such work;
 (7) for labor, training, and technical assistance 
 relating to such work;
 (8) for planning, management, and administration (up 
 to a maximum of 15 percent of the assistance provided); 
 and
 (9) for such other activities as the Secretary 
 determines to be appropriate.
 (c) Award Factors.--In awarding financial assistance under 
this section, the Secretary shall consider--
 (1) the applicant's record of constructing, 
 renovating, repairing, or making energy efficient 
 single-family, multifamily, or manufactured homes that 
 are occupied by low-income persons, either directly or 
 through affiliates, chapters, or other partners (using 
 the most recent year for which data are available);
 (2) the number of dwelling units occupied by low-
 income persons that the applicant has built, renovated, 
 repaired, weatherized, or made more energy efficient in 
 the 5 years preceding the date of the application;
 (3) the qualifications, experience, and past 
 performance of the applicant, including experience 
 successfully managing and administering Federal funds;
 (4) the strength of an applicant's proposal to 
 achieve one or more of the purposes under subsection 
 (a);
 (5) the extent to which such applicant will utilize 
 partnerships and regional coordination to achieve one 
 or more of the purposes under subsection (a);
 (6) regional and climate zone diversity;
 (7) urban, suburban, and rural localities; and
 (8) such other factors as the Secretary determines to 
 be appropriate.
 (d) Applications.--
 (1) Administration.--To be eligible for an award of 
 financial assistance under this section, an applicant 
 shall submit to the Secretary an application in such 
 manner and containing such information as the Secretary 
 may require.
 (2) Awards.--Subject to the availability of 
 appropriations, not later than 270 days after the date 
 of enactment of this section, the Secretary shall make 
 a first award of financial assistance under this 
 section.
 (e) Maximum Amount and Term.--
 (1) In general.--The total amount of financial 
 assistance awarded to an entity under this section 
 shall not exceed $2,000,000.
 (2) Technical and training assistance.--The total 
 amount of financial assistance awarded to an entity 
 under this section shall be reduced by the cost of any 
 technical and training assistance provided by the 
 Secretary that relates to such financial assistance.
 (3) Term.--The term of an award of financial 
 assistance under this section shall not exceed 3 years.
 (4) Relationship to formula grants.--An entity may 
 use financial assistance awarded to such entity under 
 this section in conjunction with other financial 
 assistance provided to such entity under this part.
 (f) Requirements.--Not later than 90 days after the date of 
enactment of this section, the Secretary shall issue 
requirements to implement this section, including, for entities 
receiving financial assistance under this section--
 (1) standards for allowable expenditures;
 (2) a minimum saving-to-investment ratio; and
 (3) standards for--
 (A) training programs;
 (B) energy audits;
 (C) the provision of technical assistance;
 (D) monitoring activities carried out using 
 such financial assistance;
 (E) verification of energy and cost savings;
 (F) liability insurance requirements; and
 (G) recordkeeping and reporting requirements, 
 which shall include reporting to the Office of 
 Weatherization and Intergovernmental Programs 
 of the Department of Energy applicable data on 
 each dwelling unit retrofitted or otherwise 
 assisted pursuant to this section.
 (g) Compliance With State and Local Law.--Nothing in this 
section supersedes or otherwise affects any State or local law, 
to the extent that the State or local law contains a 
requirement that is more stringent than the applicable 
requirement of this section.
 (h) Review and Evaluation.--The Secretary shall review and 
evaluate the performance of each entity that receives an award 
of financial assistance under this section (which may include 
an audit).
 (i) Annual Report.--The Secretary shall submit to Congress an 
annual report that provides a description of--
 (1) actions taken under this section to achieve the 
 purposes of this section[; and];
 (2) accomplishments as a result of such actions, 
 including energy and cost savings [achieved.] achieved; 
 and
 (3) the impacts of enhancement and innovation 
 readiness efforts on eligibility for the weatherization 
 program conducted under this part.
 (j) Funding.--
 (1) Amounts.--
 (A) In general.--For each of fiscal years 
 2021 through 2025, of the amount made available 
 under section 422 for such fiscal year to carry 
 out the weatherization program under this part 
 (not including any of such amount made 
 available for Department of Energy headquarters 
 training or technical assistance), not more 
 than--
 (i) 2 percent of such amount (if such 
 amount is $225,000,000 or more but less 
 than $260,000,000) may be used to carry 
 out this section;
 (ii) 4 percent of such amount (if 
 such amount is $260,000,000 or more but 
 less than $300,000,000) may be used to 
 carry out this section; and
 (iii) 6 percent of such amount (if 
 such amount is $300,000,000 or more) 
 may be used to carry out this section.
 (B) Minimum.--For each of fiscal years 2021 
 through 2025, if the amount made available 
 under section 422 (not including any of such 
 amount made available for Department of Energy 
 headquarters training or technical assistance) 
 for such fiscal year is less than $225,000,000, 
 no funds shall be made available to carry out 
 this section.
 (2) Limitation.--For any fiscal year, the Secretary 
 may not use more than $25,000,000 of the amount made 
 available under section 422 to carry out this section.
 (k) Termination.--The Secretary may not award financial 
assistance under this section after September 30, 2025.

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 limitations

 Sec. 415. (a)(1) Not more than an amount equal to 15 percent 
of any grant made by the Secretary under this part may be used 
for administrative purposes in carrying out duties under this 
part, except that not more than one-half of such amount may be 
used by any State for such purposes, and a State may provide in 
the plan adopted pursuant to subsection (b) for recipients of 
grants of less than $350,000 to use up to an additional 5 
percent of such grant for administration if the State has 
determined that such recipient requires such additional amount 
to implement effectively the administrative requirements 
established by the Secretary pursuant to this part.
 (2) The Secretary shall establish energy audit procedures and 
techniques which (i) meet standards established by the 
Secretary after consultation with the State Energy Advisory 
Board established under section 365(g) of the Energy Policy and 
Conservation Act, (ii) establish priorities for selection of 
weatherization measures based on their cost and contribution to 
energy efficiency, (iii) measure the energy requirement of 
individual dwellings and the rate of return of the total 
conservation investment in a dwelling, and (iv) account for 
interaction among energy efficiency measures.
 (b) The Secretary shall insure that financial assistance 
provided under this part will--
 (1) be allocated within the State or area in 
 accordance with a published State or area plan, which 
 is adopted by such State after notice and a public 
 hearing, describing the proposed funding distributions 
 and recipients;
 (2) be allocated, pursuant to such State or area 
 plan, to community action agencies carrying out 
 programs under title II of the Economic Opportunity Act 
 of 1964 or to other appropriate and qualified public or 
 nonprofit entities in such State or area so that--
 (A) funds will be allocated on the basis of 
 the relative need for weatherization assistance 
 among the low-income persons within such State 
 or area, taking into account appropriate 
 climatic and energy conservation factors; and
 (B) due consideration will be given to the 
 results of periodic evaluations of the projects 
 carried out under this part in light of 
 available information regarding the current and 
 anticipated energy and weatherization needs of 
 low-income persons within the State; and
 (3) be terminated or discontinued during the 
 application period only in accordance with policies and 
 procedures consistent with the policies and procedures 
 set forth in section 418.
 (c)(1) Except as provided in paragraphs (3) and (4), the 
expenditure of financial assistance provided under this part 
for labor, weatherization materials, and related matters shall 
not exceed an average of [$6,500] $12,000 per dwelling unit 
weatherized in that State. Labor, weatherization materials, and 
related matter includes, but is not limited to--
 (A) the appropriate portion of the cost of tools and 
 equipment used to install weatherization materials for 
 a dwelling unit;
 (B) the cost of transporting labor, tools, and 
 materials to a dwelling unit;
 (C) the cost of having onsite supervisory personnel;
 (D) the cost of making incidental repairs to a 
 dwelling unit if such repairs are necessary to make the 
 installation of weatherization materials effective, and
 (E) the cost of making heating and cooling 
 modifications, including replacement
 (2) Dwelling units weatherized (including dwelling units 
partially weatherized) under this part, or under other Federal 
programs (in this paragraph referred to as ``previous 
weatherization''), may not receive further financial assistance 
for weatherization under this part until the date that is 15 
years after the date such previous weatherization was 
completed. This paragraph does not preclude dwelling units that 
have received previous weatherization from receiving assistance 
and services (including the provision of information and 
education to assist with energy management and evaluation of 
the effectiveness of installed weatherization materials) other 
than weatherization under this part or under other Federal 
programs, or from receiving non-Federal assistance for 
weatherization.
 (3) Beginning with fiscal year 2000, the dwelling unit 
averages provided in paragraphs (1) and (4) shall be adjusted 
annually by increasing the average amount by an amount equal 
to--
 (A) the average amount for the previous fiscal year, 
 multiplied by
 (B) the lesser of (i) the percentage increase in the 
 Consumer Price Index (all items, United States city 
 average) for the most recent calendar year completed 
 before the beginning of the fiscal year for which the 
 determination is being made, or (ii) three percent.
 (4) The expenditure of financial assistance provided under 
this part for labor, weatherization materials, and related 
matters for a renewable energy system shall not exceed an 
average of $3,000 per dwelling unit.
 (5)(A) The Secretary shall by regulations--
 (i) establish the criteria which are to be used in 
 prescribing performance and quality standards under 
 paragraph (6)(A)(ii) or in specifying any form of 
 renewable energy under paragraph (6)(A)(i)(I); and
 (ii) establish a procedure under which a manufacturer 
 of an item may request the Secretary to certify that 
 the item will be treated, for purposes of this 
 paragraph, as a renewable energy system.
 (B) The Secretary shall make a final determination with 
respect to any request filed under subparagraph (A)(ii) within 
1 year after the filing of the request, together with any 
information required to be filed with such request under 
subparagraph (A)(ii).
 (C) Each month the Secretary shall publish a report of any 
request under subparagraph (A)(ii) which has been denied during 
the preceding month and the reasons for the denial.
 (D) The Secretary shall not specify any form of renewable 
energy under paragraph (6)(A)(i)(I) unless the Secretary 
determines that--
 (i) there will be a reduction in oil or natural gas 
 consumption as a result of such specification;
 (ii) such specification will not result in an 
 increased use of any item which is known to be, or 
 reasonably suspected to be, environmentally hazardous 
 or a threat to public health or safety; and
 (iii) available Federal subsidies do not make such 
 specification unnecessary or inappropriate (in the 
 light of the most advantageous allocation of economic 
 resources).
 (6) In this subsection--
 (A) the term ``renewable energy system'' means a 
 system which--
 (i) when installed in connection with a 
 dwelling, transmits or uses--
 (I) solar energy, energy derived from 
 the geothermal deposits, energy derived 
 from biomass, or any other form of 
 renewable energy which the Secretary 
 specifies by regulations, for the 
 purpose of heating or cooling such 
 dwelling or providing hot water or 
 electricity for use within such 
 dwelling; or
 (II) wind energy for nonbusiness 
 residential purposes;
 (ii) meets the performance and quality 
 standards (if any) which have been prescribed 
 by the Secretary by regulations;
 (iii) in the case of a combustion rated 
 system, has a thermal efficiency rating of at 
 least 75 percent; and
 (iv) in the case of a solar system, has a 
 thermal efficiency rating of at least 15 
 percent; and
 (B) the term ``biomass'' means any organic matter 
 that is available on a renewable or recurring basis, 
 including agricultural crops and trees, wood and wood 
 wastes and residues, plants (including aquatic plants), 
 grasses, residues, fibers, and animal wastes, municipal 
 wastes, and other waste materials.
 (d) Beginning with fiscal year 1992, the Secretary may 
allocate funds appropriated pursuant to section 422(b) to 
provide supplementary financial assistance to those States 
which the Secretary determines have achieved the best 
performance during the previous fiscal year in achieving the 
purposes of this part. In making this determination, the 
Secretary shall--
 (1) consult with the State Energy Advisory Board 
 established under section 365(g) of the Energy Policy 
 and Conservation Act; and
 (2) give priority to those States which, during such 
 previous fiscal year, obtained a significant portion of 
 income from non-Federal sources for their 
 weatherization programs or increased significantly the 
 portion of low-income weatherization assistance that 
 the State obtained from non-Federal sources.
 (e)(1)(A) Beginning with fiscal year 1992, the Secretary may 
allocate, from funds appropriated pursuant to section 422(b), 
among the States an equal amount for each State not to exceed 
$100,000 per State. Each State shall make available amounts 
received under this subsection to provide supplementary 
financial assistance to recipients of grants under this part 
that have achieved the best performance during the previous 
fiscal year in advancing the purposes of this part.
 (B) None of the funds made available under this subsection 
may be used by any State for administrative purposes.
 (2) The Secretary shall, after consulting with the State 
Energy Advisory Board referred to in subsection (d)(1), 
prescribe guidelines to be used by each State in making 
available supplementary financial assistance under this 
subsection, with a priority being given to subgrantees that, by 
law or through administrative or other executive action, 
provided non-Federal resources (including private resources) to 
supplement Federal financial assistance under this part during 
the previous fiscal year.

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 authorization of appropriations

 Sec. 422. For the purpose of carrying out the weatherization 
program under this part, there are authorized to be 
appropriated--
 [(1) $330,000,000 for fiscal year 2021; and
 [(2) $350,000,000 for each of fiscal years 2022 
 through 2025.]
 (1) $300,000,000 for each of fiscal years 2026 
 through 2028;
 (2) $325,000,000 for fiscal year 2029; and
 (3) $350,000,000 for fiscal year 2030.

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