Title 42The Public Health and WelfareRelease 119-73

§8235a Approval of plans for prototype residential energy efficiency programs and provision of financial assistance for such programs

Title 42 › Chapter CHAPTER 91— - NATIONAL ENERGY CONSERVATION POLICY › Subchapter SUBCHAPTER II— - RESIDENTIAL ENERGY CONSERVATION › Part Part C— - Residential Energy Efficiency Programs › § 8235a

Last updated Apr 6, 2026|Official source

Summary

The Secretary can approve no more than 4 state or local plans to run prototype home energy‑saving programs and can give money to help carry them out. To be approved, a plan must be applied for and follow the rules. The plan must have a public utility hire one or more outside companies (not the utility’s affiliates) to run the program in part of the utility’s service area. The utility must pick contractors in a fair, open way, pay a set price for each unit of energy saved based on the value to the utility, include a method to measure the energy saved, and make sure the required contract terms can be enforced. If the utility is regulated, the state regulator must approve the contract, the selection process, the payment plan, and the measurement method. Any contractor must offer every homeowner or occupant in the chosen area a free inspection that explains what measures will be installed, the likely energy‑cost savings, and simple behavior changes that save energy and their expected savings. With the owner’s approval, the contractor must install the agreed measures promptly and give a written warranty that fixes defects found within one year at no charge.

Full Legal Text

Title 42, §8235a

The Public Health and Welfare — Source: USLM XML via OLRC

(a)The Secretary may approve any plan developed by a State or local government, for the establishment of a prototype residential energy efficiency program, which is designed to demonstrate the feasibility, economics, and energy conserving potential of such program, if an application for such plan is submitted pursuant to section 8235b of this title, the application is approved pursuant to section 8235c of this title, and the plan provides for—
(1)the entering into a contract by a public utility with one or more persons not under the control of, and not affiliates or subsidiaries of, such utility for the implementation of a program to encourage energy conservation, including the supply and installation of the energy conservation measures as specified in such contract in residential buildings located in the portion of the utility’s service area designated by the contract, which contract includes the provisions described in subsection (b);
(2)the selection by the public utility in a fair, open, and nondiscriminatory manner of the person or persons to contract with pursuant to paragraph (1);
(3)the payment by the public utility to the person or persons contracted with under paragraph (1) of a specified price for each unit of energy saved by such utility as a result of the program during the period the contract is in effect, which price is based on the value to the utility of the energy saved;
(4)the determination, by a procedure established by the State or local government developing the plan, of the amount of energy saved by a public utility as a result of the program carried out under the plan, which procedure is described in the contract;
(5)in the case of a regulated public utility, the approval in writing by the State regulatory authority exercising ratemaking authority over such utility of the contract described in paragraph (1), the manner of selection described in paragraph (2), the payment described in paragraph (3), and the procedure described in paragraph (4); and
(6)the enforcement of the provisions of the contract, entered into pursuant to paragraph (1), which are required to be included pursuant to subsection (b).
(b)Any contract entered into by a public utility under subsection (a)(1) shall require any person or persons entering into such contract with a public utility to offer to the owner or occupant of each residential building in the portion of the utility’s service area designated in the contract, without charge—
(1)an inspection of such building to determine and inform such owner or occupant of—
(A)the energy conservation measures which will be supplied and installed in such residential building pursuant to paragraph (2);
(B)the savings in energy costs that are likely to result from the installation of such energy conservation measures;
(C)suggestions (including suggestions developed by the Secretary) of energy conservation techniques, including adjustments in energy use patterns and modifications in household activities, which can be used by the owner or occupant of the building to save energy and which do not require the installation of energy conservation measures; and
(D)the savings in energy costs that are likely to result from the adoption of such suggested energy conservation techniques;
(2)the supply and installation, with the approval of the owner of the residential building, in such building in a timely manner of the energy conservation measures which are as specified in the contract and which the owner or occupant was informed (pursuant to the inspection under paragraph (1)) would be supplied and installed in such building; and
(3)a written warranty that at a minimum any defect in materials, manufacture, design, or installation of any energy conservation measures supplied and installed pursuant to paragraph (2), found not later than one year after the date of installation, will be remedied without charge and within a reasonable period of time.
(c)The Secretary may provide financial assistance to any State or local government to carry out any plan for the establishment of a prototype residential energy efficiency program if the plan is approved under subsection (a).
(d)The Secretary may approve under subsection (a) not more than 4 plans for the establishment of prototype residential energy efficiency programs.

Reference

Citations & Metadata

Citation

42 U.S.C. § 8235a

Title 42The Public Health and Welfare

Last Updated

Apr 6, 2026

Release point: 119-73