Zero-Emission Homes Act of 2021

In this section:

The term certified contractor means a contractor with an industry-recognized certification reflecting training, education, or other technical expertise relating to qualified electrification projects for residential buildings, as identified by the Secretary.

The term contractor company means a company—

(A) the business of which is to provide services—

(i) to residential building owners; and

(ii) for which a rebate may be provided pursuant to the Program; and

(B) that holds the licenses and insurance required by the State in which the company provides services.

The term electric load or service center upgrade means an improvement to a circuit breaker panel that enables the installation and use of—

(A) a QEP described in any of subclauses (II) through (IV) of paragraph (10)(A)(i); or

(B) if determined to be appropriate by the Secretary, a QEP described in any of subclauses (I) through (III) of paragraph (10)(A)(ii).

The term heat pump means a heat pump used for water heating, space heating, or space cooling that—

(A) relies solely on electricity for its source of power; and

(B) is air-sourced, geothermal- or ground-sourced, or water-sourced.

The term home means each of—

(A) a building with not more than 1 dwelling unit, an individual condominium unit, or a manufactured housing unit, that—

(i) is located in a State; and

(I) is the primary residence of—

(aa) the owner of that building, condominium unit, or manufactured housing unit, as applicable; or

(bb) a renter; or

(II) is a new-construction single-family residential home; and

(B) a unit of a multifamily building that—

(i) is owned by an individual who is not the owner of the multifamily building;

(ii) is located in a State; and

(iii) is the primary residence of—

(I) the owner of that unit; or

(II) a renter.

The term HVAC means heating, ventilation, and air conditioning.

The term low- or moderate-income, with respect to a household, means a household—

(A) with an annual income that is less than 80 percent of the annual median income of the area in which the household is located; or

(B) that is low-income (as defined in section 412 of the Energy Conservation and Production Act (42 U.S.C. 6862)).

The term multifamily building means any building—

(A) with 2 or more dwelling units that—

(i) are built on top of one another or side-by-side; and

(ii) may share common facilities; and

(B) that is not a home.

The term Program means the Zero-Emission Home Program established under subsection (b).

The terms qualified electrification project and QEP mean a project that, as applicable—

(i) installs, or enables the installation and use of, in a home or multifamily building—

(I) an electric load or service center upgrade;

(II) an electric heat pump;

(III) an induction or noninduction electric stove, cooktop, range, or oven that has received an Energy Star Emerging Technology Award (or meets a more stringent standard, as determined by the Secretary, if the Secretary determines a more stringent standard to be appropriate); or

(IV) an electric heat pump clothes dryer that is Energy Star Most Efficient certified (or meets a more stringent standard, as determined by the Secretary, if the Secretary determines a more stringent standard to be appropriate); or

(ii) if determined to be appropriate by the Secretary, installs, or enables the installation and use of, in a home or multifamily building described in subparagraph (B)—

(I) a solar photovoltaic system, including any electrical equipment, wiring, or other components necessary for the installation and use of the solar photovoltaic system, including a battery storage system;

(II) electric vehicle charging infrastructure or electric vehicle support equipment necessary to recharge an electric vehicle on-site; or

(III) electrical rewiring, power sharing plugs, or other installation tasks directly related to and necessary for the safe and effective functioning of a QEP in a home or multifamily building.

A home or multifamily building referred to in subparagraph (A)(ii) is a home or multifamily building that is certified, or the household of the homeowner of which is certified, as applicable, as low- or moderate-income pursuant to the procedures established under subsection (d)(1).

The terms qualified electrification project and QEP do not include any project with respect to which the appliance, system, equipment, infrastructure, component, or other item described in clause (i) or (ii) of subparagraph (A) is not certified under the Energy Star program established by section 324A of the Energy Policy and Conservation Act (42 U.S.C. 6294a) if, as of the date on which the project is carried out, the item is of a category for which a certification is provided under that program.

The term qualified provider means an electric utility, Tribal-owned entity or Tribally Designated Housing Entity (TDHE), or commercial, nonprofit, or government entity, including a retailer and a contractor company, that provides services for which a rebate may be provided pursuant to the Program for 1 or more portfolios that consist of 1 or more qualified electrification projects.

The term Secretary means the Secretary of Energy.

The term solar photovoltaic system means a system—

(A) placed on-site at a home or multifamily building, or as part of the community of the home or multifamily building; and

(B) that generates electricity from the sun specifically for the home, multifamily building, or community.

The term Tribal community means a Tribal tract or Tribal block group.

The term underserved community means a community located in a census tract that is identified by the Secretary as—

(A) a low- or moderate-income community; or

(B) a community of racial or ethnic minority concentration.

The term zero-emission home rebate means a rebate provided in accordance with subsection (c).

The Secretary shall establish a program, to be known as the Zero-Emission Home Program, to provide zero-emission home rebates in accordance with subsection (c).

Subject to subparagraph (B), in carrying out the Program, the Secretary shall provide to homeowners and owners of multifamily buildings zero-emission home rebates, in accordance with this subsection, for qualified electrification projects carried out at, or relating to, the homes or multifamily buildings, as applicable.

The provision of a zero-emission home rebate under this paragraph shall be subject to the availability of appropriations for that purpose.

Subject to subsection (d)(2)(A)(i), a zero-emission home rebate under paragraph (1) shall be equal to—

(i) in the case of a qualified electrification project described in subsection (a)(10)(A)(i)(II) that installs a heat pump used for water heating, not more than $1,250;

(ii) in the case of a qualified electrification project described in subsection (a)(10)(A)(i)(II) that installs a heat pump HVAC system—

(I) not more than $3,000 if the heat pump HVAC system has a heating capacity of not less than 27,500 Btu per hour; and

(II) not more than $1,500 if the heat pump HVAC system has a heating capacity of less than 27,500 Btu per hour;

(iii) in the case of a qualified electrification project described in subclause (III) or (IV) of subsection (a)(10)(A)(i), not more than $600;

(iv) in the case of a qualified electrification project described in subsection (a)(10)(A)(i)(I) that installs an electric load or service center panel that enables the installation and use of any upgrade, appliance, system, equipment, infrastructure, component, or other item installed pursuant to any other qualified electrification project, not more than $3,000; and

(v) in the case of any other qualified electrification project, including a qualified electrification project described in any of subclauses (I) through (III) of subsection (a)(10)(A)(ii), for which the Secretary provides a zero-emission home rebate, not more than an amount determined by the Secretary for that qualified electrification project, subject to subparagraph (B).

Subject to subsection (d)(2)(A)(ii), the maximum total amount that may be awarded as zero-emission home rebates under this subsection shall be $10,000 with respect to each home for which a zero-emission home rebate is provided.

Subject to subsection (d)(2)(A)(iii), the amount of a zero-emission home rebate provided to a homeowner under this subsection shall not exceed 50 percent of the total cost of the applicable qualified electrification project.

Subject to subsection (d)(2)(A)(iii), not more than 50 percent of the labor costs associated with a qualified electrification project may be included in the 50 percent of total costs for which a zero-emission home rebate is provided under this subsection, as described in subclause (I), subject to the condition that labor costs account for not more than 50 percent of the amount of the zero-emission home rebate.

A zero-emission home rebate may be provided for a qualified electrification project carried out by a contractor only if that contractor is a certified contractor.

A zero-emission home rebate may be provided for a qualified electrification project that installs or enables the installation of a heat pump HVAC system only if the heat pump HVAC system—

(i) replaces—

(I) a nonelectric HVAC system; or

(II) an electric resistance HVAC system; or

(ii) is part of new construction, as determined by the Secretary.

A zero-emission home rebate may be provided for a qualified electrification project that installs or enables the installation of a heat pump used for water heating only if the heat pump—

(i) replaces—

(I) a nonelectric heat pump water heater;

(II) a nonelectric water heater; or

(III) an electric resistance water heater; or

(ii) is part of new construction, as determined by the Secretary.

A zero-emission home rebate may be provided for a qualified electrification project described in subsection (a)(10)(A)(i)(III) only if the applicable electric stove, cooktop, range, or oven—

(i) replaces a nonelectric stove, cooktop, range, or oven; or

(ii) is part of new construction, as determined by the Secretary.

A zero-emission home rebate may be provided for a qualified electrification project described in subsection (a)(10)(A)(i)(IV) only if the applicable electric heat pump clothes dryer—

(i) replaces a nonelectric clothes dryer; or

(ii) is part of new construction.

With respect to each qualified electrification project described in clause (ii), the Secretary shall provide a payment of $100 to the certified contractor or qualified provider carrying out the qualified electrification project.

A qualified electrification project referred to in clause (i) is a qualified electrification project—

(I) that is carried out at a home or multifamily building;

(II) for which a rebate is provided under this subsection; and

(III) with respect to which the certified contractor or qualified provider is not eligible for a higher payment under any of subparagraphs (B) through (D).

With respect to each qualified electrification project described in clause (ii), the Secretary shall provide a payment of $200 to the certified contractor or qualified provider carrying out the qualified electrification project.

A qualified electrification project referred to in clause (i) is a qualified electrification project—

(I) that is carried out at a home or multifamily building that—

(aa) is located in an underserved community or a Tribal community; or

(bb) is certified, or the household of the homeowner of which is certified, as applicable, as low- or moderate-income pursuant to the procedures established under subsection (d)(1);

(II) for which a rebate is provided under this subsection; and

(III) with respect to which the certified contractor or qualified provider is not eligible for a higher payment under subparagraph (C) or (D).

With respect to each qualified electrification project described in clause (ii), the Secretary shall provide a payment of $250 to the certified contractor or qualified provider carrying out the qualified electrification project.

A qualified electrification project referred to in clause (i) is a qualified electrification project—

(I) that is carried out—

(aa) at a home or multifamily building; and

(bb) by a certified contractor or qualified provider that allows for the use of collective bargaining agreements;

(II) for which a rebate is provided under this subsection; and

(III) with respect to which—

(aa) all laborers and mechanics employed on the qualified electrification project are paid wages at rates not less than those prevailing on projects of a character similar in the locality, as determined by the Secretary of Labor in accordance with subchapter IV of chapter 31 of part A of subtitle II of title 40, United States Code (commonly referred to as the Davis-Bacon Act); and

(bb) the certified contractor or qualified provider is not eligible for a higher payment under subparagraph (D).

With respect to each qualified electrification project described in clause (ii), the Secretary shall provide a payment of $500 to the certified contractor or qualified provider carrying out the qualified electrification project.

A qualified electrification project referred to in clause (i) is a qualified electrification project—

(I) that is carried out—

(aa) at a home or multifamily building that—

(AA) is located in an underserved community or a Tribal community; or

(BB) is certified, or the household of the homeowner of which is certified, as applicable, as low- or moderate-income pursuant to the procedures established under subsection (d)(1); and

(bb) by a certified contractor or qualified provider that allows for the use of collective bargaining agreements;

(II) for which a rebate is provided under this subsection; and

(III) with respect to which all laborers and mechanics employed on the qualified electrification project are paid wages at rates not less than those prevailing on projects of a character similar in the locality, as determined by the Secretary of Labor in accordance with subchapter IV of chapter 31 of part A of subtitle II of title 40, United States Code (commonly referred to as the Davis-Bacon Act).

An amount provided to a contractor or qualified provider under any of subparagraphs (A) through (D) shall be in addition to the amount of any zero-emission home rebate received by the contractor or qualified provider.

Subject to paragraph (2)(B), a homeowner, a certified contractor, or a qualified provider may claim a separate zero-emission home rebate under this subsection for each qualified electrification project carried out at a home.

The Secretary shall establish and publish procedures pursuant to which a homeowner or owner of a multifamily building may transfer the right to claim a rebate under this subsection to the certified contractor or qualified provider carrying out the applicable qualified electrification project.

Subject to subparagraph (B), the owner of a multifamily building may combine the amounts of zero-emission home rebates for each dwelling unit in the multifamily building into a single rebate, subject to—

(i) the condition that the applicable qualified electrification projects benefit each dwelling unit with respect to which the rebate is claimed; and

(ii) any maximum per-dwelling unit rate established by the Secretary.

Subject to clause (ii), the amount of a rebate under subparagraph (A) shall not exceed 50 percent of the total cost, including labor costs, of the applicable qualified electrification projects.

In the case of a multifamily building that is certified by the Secretary as low- or moderate-income in accordance with subsection (d)(1)(B), the amount of a rebate under subparagraph (A) shall not exceed 100 percent of the total cost of the applicable qualified electrification projects.

The Secretary shall establish and publish procedures—

(i) pursuant to which the owner of a multifamily building may combine rebate amounts in accordance with this subsection; and

(ii) for the enforcement of any limitations under this subsection.

Not later than 180 days after the date of enactment of this Act, the Secretary shall develop and publish a rebate processing system that results in immediate price relief for consumers who purchase and have installed qualified electrification projects, in accordance with this section.

Not later than 1 year after the date of enactment of this Act, the Secretary shall publish a list of qualified electrification projects for which a zero-emission home rebate may be provided under this subsection that includes, at a minimum, the qualified electrification projects described in subsection (a)(10)(A).

Not less frequently than once every 3 years, the Secretary shall publish an updated list of qualified electrification projects for which a zero-emission home rebate may be provided under this subsection.

The Secretary shall establish procedures for certifying as low- or moderate-income each of—

(A) the household of a homeowner; and

(B) a multifamily building.

With respect to a qualified electrification project carried out at a location described in subparagraph (B)—

(i) a zero-emission home rebate shall be equal to—

(I) in the case of a qualified electrification project described in subsection (c)(2)(A)(i), not more than $1,750;

(II) in the case of a qualified electrification project described in subsection (c)(2)(A)(ii)—

(aa) not more than $6,000 if the applicable heat pump HVAC system has a heating capacity of not less than 27,500 Btu per hour; and

(bb) not more than $3,000 if the applicable heat pump HVAC system has a heating capacity of less than 27,500 Btu per hour;

(III) in the case of a qualified electrification project described in subsection (c)(2)(A)(iii), not more than $840;

(IV) in the case of a qualified electrification project described in subsection (c)(2)(A)(iv), not more than $4,000; and

(V) in the case of a qualified electrification project described in subsection (c)(2)(A)(v), not more than an amount determined by the Secretary for that qualified electrification project, subject to clause (ii);

(ii) the maximum total amount of zero-emission home rebates that may be awarded with respect to each home of a homeowner shall be $14,000; and

(iii) the amount of a zero-emission home rebate may be used to cover not more than 100 percent of the costs, including labor costs, of the applicable qualified electrification project.

A location referred to in subparagraph (A) is—

(i) a home—

(I) with respect to which the household of the homeowner is certified as low- or moderate-income pursuant to the procedures established under paragraph (1)(A); or

(II) that is located in a Tribal community; or

(ii) a multifamily building—

(I) that—

(aa) is certified as low- or moderate-income pursuant to the procedures established under paragraph (1)(B); or

(bb) is located in a Tribal community; and

(II) with respect to which more than more than ½ of the dwelling units in the multifamily building—

(aa) are occupied by households the annual household incomes of which do not exceed 80 percent of the median annual household income for the area in which the multifamily building is located; and

(bb) have average monthly rental prices that are equal to, or less than, an amount that is equal to 30 percent of the average monthly household income for the area in which the multifamily building is located.

The Secretary may provide a rebate to the owner of a multifamily building in an amount described in subparagraph (A) only if the owner agrees in writing to provide commensurate benefits to the renters in that multifamily building.

Of the total amount appropriated by subsection (g)(1), the Secretary may use not more than $5,000,000 for community and consumer education and outreach related to the Program.

The Secretary shall use not more than 1 percent of the amounts appropriated by subsection (g)(1)—

(1) to administer this section; and

(2) to provide administrative and technical support to certified contractors, qualified providers, States, and Indian Tribes.

In addition to amounts otherwise made available, there are appropriated to the Secretary for the 10-year period beginning on the date of enactment of this Act, out of any amounts in the Treasury not otherwise appropriated, such sums as are necessary to carry out this section, including to provide rebates under this section with respect to homes and multifamily buildings at which qualified electrification projects are carried out during that 10-year period.

Of the amounts appropriated by paragraph (1), the Secretary shall reserve 50 percent for—

(i) rebates relating to qualified electrification projects carried out for low- or moderate-income households; and

(ii) any necessary administrative or technical support for those qualified electrification projects.

Amounts reserved under subparagraph (A) shall remain available until expended in accordance with that subparagraph.

Of the amounts appropriated by paragraph (1), the Secretary shall reserve 11 percent for—

(i) rebates relating to qualified electrification projects carried out in Tribal communities; and

(ii) any necessary administrative or technical support for those qualified electrification projects.

Amounts reserved under subparagraph (A) shall remain available until expended in accordance with that subparagraph.

With respect to a qualified electrification project carried out for a low- or moderate-income household that is located in a Tribal community, the Secretary may—

(A) use amounts reserved under paragraph (2) or (3) for any rebate or necessary administrative or technical support for that qualified electrification project; and

(i) if the Secretary uses amounts reserved under paragraph (2) as described in subparagraph (A), consider a corresponding amount reserved under paragraph (3) to be unreserved and eligible for use for any purpose authorized under this section; or

(ii) if the Secretary uses amounts reserved under paragraph (3) as described in subparagraph (A), consider a corresponding amount reserved under paragraph (2) to be unreserved and eligible for use for any purpose authorized under this section.