Title 42, The Public Health and WelfareRelease 119-110

§8235a Approval of Plans for Prototype Residential Energy Efficiency Programs and Provision of Financial Assistance for Such Programs

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

Last updated Sep 22, 2026|Official source

Summary

A federal energy official can approve state or local plans to try out prototype home energy-saving programs. The plan must have a utility hire one or more independent contractors to run the program in part of the utility’s service area. The contractor must be chosen in a fair, open way. The utility will pay a set price for each unit of energy saved, based on how valuable the saved energy is to the utility. The plan must say how the energy savings will be measured. If the utility is regulated, the state regulator must approve the contract, the selection method, the payment, and the measurement method. The contract must include the required enforceable terms. Each contractor must offer each homeowner or occupant a free inspection that explains what measures will be installed, likely energy-cost savings, and simple no-cost ways to save energy and their likely savings. With the owner’s OK, the contractor must supply and install the agreed measures promptly and give a written warranty that fixes any defects found within one year at no charge. The federal official may give money to help carry out approved plans, but no more than four plans may be approved.

Full Legal Text

Title 42, §8235a

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

(a)Plan approval

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)

(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)Contract requirements

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)Provision of financial assistance

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)Limitation

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 42, The Public Health and Welfare

Last Updated

Sep 22, 2026

Release point: 119-110