Code of the District of Columbia

Subchapter III. Establishment of the National Capital Energy Fund and Energy Efficiency Loan Program.


§ 8–1778.41. Establishment of the National Capital Energy Fund.

(a) There is established as a nonlapsing fund the National Capital Energy Fund. The Chief Financial Officer shall deposit the proceeds from the sale of a bond into the National Capital Energy Fund, except as provided in § 8-1778.31.

(b) All funds deposited into the National Capital Energy Fund, and any interest earned on those funds, shall not revert to the unrestricted fund balance of the General Fund of the District of Columbia at the end of a fiscal year, or at any other time, but shall be continually available for the uses and purposes set forth in subsection (c) of this section, without regard to fiscal year limitation.

(c) The Mayor may use the funds in the National Capital Energy Fund to make Energy Efficiency Loans to property owners for the initial costs of the installation of Energy Efficiency Improvements. Each Energy Efficiency Loan shall be repaid by the revenues generated by the Special Assessment. Each Energy Efficiency Loan shall be evidenced by a loan, or other, agreement that obligates the property owner and all successor property owners to pay the Special Assessment and such other terms and conditions as the Mayor shall determine to be necessary or appropriate to carry out the provisions of this chapter.

(d) An Energy Efficiency Loan shall bear interest at the rate of interest on the series of bonds issued immediately preceding or simultaneously with the date of execution of the Energy Efficiency Loan, plus an amount determined by the Mayor to be sufficient to pay all administrative costs specified in § 8-1778.21. Notwithstanding the preceding sentence, when a bond is issued pursuant to § 8-1778.31, the interest rate on the Energy Efficiency Loan shall be the same as the interest rate on a bond issued to a Private Lending Institution. The principal, interest, and administrative costs of an Energy Efficiency Loan shall be separately stated to permit the allocation thereof as provided in this chapter.

(e) If a first source of funds deposited in the National Capital Energy Fund is an obligation that requires the District to use those funds solely to repay principal and interest on the funds, the Energy Efficiency Loan, or other agreement shall be structured to repay the funding source, plus administrative costs. A Special Assessment payment shall be deposited in the same manner specified in § 8-1778.21.

(f) A Special Assessment payment received prior to the issue of bonds secured by the Special Assessment payments may be used to provide a debt service reserve fund for the bonds.

(g) The Mayor is authorized to:

(1) Accept grant funds from a public or private source;

(2) Deposit grant funds into a special account in the National Capital Energy Fund; and

(3) Use grant funds for a purpose for which monies in the National Capital Energy Fund may be spent.


(May 27, 2010, D.C. Law 18-183, § 301, 57 DCR 3406; Apr. 20, 2013, D.C. Law 19-262, § 102(f), 60 DCR 1300.)

Section References

This section is referenced in § 8-1778.01, § 8-1778.22, § 8-1778.27, and § 47-895.32.

Effect of Amendments

The 2013 amendment by D.C. Law 19-262 rewrote (a); substituted “subsection (c) of this section, without regard to fiscal year limitation” for “this section without regard to fiscal year limitation, subject to authorization by Congress” near the end of (b); rewrote (d) and (e); and added (g).

Emergency Legislation

For temporary (90 day) additions, see § 201, 202 of Energy Efficiency Emergency Act of 2009 (D.C. Act 18-324, March 1, 2010, 57 DCR 1851).

Temporary Legislation

Sections 201 and 202 of D.C. Law 18-156 added sections to read as follows:

“Sec. 201. Definitions. For the purposes of this act, the term:

“(1) ‘Administrator’ means the person retained pursuant to the authority granted in section 205 to administer the energy efficiency loan program authorized by this title.

“(2) ‘Certification Standard’ means a certification or accreditation standard for building energy retrofit installation, such as those provided by the Building Performance Institution, RESNET, or other nationally-recognized program approved by U.S. Department of Energy or the Mayor.

“(3) ‘Energy efficiency audit’ means a formal evaluation by a certified contractor of the energy consumption of a residential, commercial, or other building for the purpose of identifying methods of improving energy efficiency and reducing energy waste.

“(4) ‘Energy efficiency improvement’ means an installation or modification that is designed to reduce energy consumption and result in savings, including energy and operational savings, in residential or commercial buildings and includes the following:

“(A) Insulation in walls, roofs, floors, and foundations and in heating and cooling distribution systems;

“(B) Storm windows and doors, multiglazed windows and doors, heat-absorbing or heat-reflecting glazed and coated window and door systems, additional glazing, reductions in glass area, and other window and door system modifications that reduce energy consumption;

“(C) Automatic energy control systems;

“(D) Heating, ventilating, or air conditioning and distribution system modifications or replacement in buildings or central plants;

“(E) Caulking or weather-stripping;

“(F) Replacement or modifications of lighting fixtures to increase the energy efficiency of the system without increasing the overall illumination of a residential or commercial building unless the increase in illumination is necessary to conform to the applicable building code for the proposed lighting system;

“(G) Energy recovery systems;

“(H) Daylighting systems;

“(I) Renewable energy improvements; and

“(J) Any other modification, installation, retrofit, or remodeling approved as a energy cost-savings measure by the administrator.

“(5) ‘Energy efficiency loan’ means a loan to a property owner for the purpose of installing one of more energy efficiency improvements.

“(6) ‘PACE bonds’ means the property-assessed clean energy bonds issued pursuant to the authority granted in Title I.

“(7) ‘Property owner’ means an owner of real property in the District.

“(8) ‘Qualified Apprenticeship Program’ means an apprenticeship program registered with the District of Columbia Apprenticeship Council.

“(9) ‘Quality Assurance Program’ means a program that establishes the energy benchmarks, monitors and verifies the quality of the energy retrofits and renewable energy installations, and measures actual energy savings for the National Capital Energy Fund.

“Sec. 202. Creation of the National Capital Energy Fund.

“(a) There is established as a nonlapsing fund the National Capital Energy Fund. The Chief Financial Officer shall create 2 accounts within the National Capital Energy Fund: the Bond Proceeds Account and the Federal Grant Account. The Chief Financial Officer shall deposit the proceeds from each sale of the PACE bonds into the Bond Proceeds Account and shall deposit all Energy Efficiency Conservation Block Grant Retrofit Ramp-Up funds received from the United States government as Energy Efficiency and Conservation Block Grants into the Federal Grant Account.

“(b) All funds deposited into the National Capital Energy Fund, and any interest earned on those funds, shall not revert to the unrestricted fund balance of the General Fund of the District of Columbia at the end of a fiscal year, or at any other time, but shall be continually available for the uses and purposes set forth in this section without regard to fiscal year limitation, subject to authorization by Congress.

“(c) The Mayor may use the funds in the National Capital Energy Fund to make energy efficiency loans to property owners for the initial costs of the installation of energy efficiency improvements. Each energy efficiency loan shall be repaid by the revenues generated by the Special Assessment. Each energy efficiency loan shall be evidenced by a loan, or other, agreement that obligated the property owner and all successor property owners to pay the Special Assessment and includes such other terms and conditions as the Mayor shall determine to be necessary or appropriate to carry out the provisions of this act.

“(d) Prior to the 1st issuance of PACE bonds, each energy efficiency loan funded from grant proceeds shall bear interest at a rate equal to the interest rate on 10-year United States Treasury Notes on the date of the execution of the loan or other agreement evidencing an energy efficiency loan of the 1st series of energy efficiency loans to be issued, plus 250 basis points. Upon the 1st issuance of PACE bonds, the interest rate on the outstanding energy efficiency loans used to secure payment of that issue of PACE bonds shall convert automatically, and without action by either the District or the property owner, to the interest rate on the 1st series of PACE bonds, plus an amount determined by the Mayor to be sufficient to pay all administrative costs specified in section 102. Thereafter, until the interest rate is converted as described in the prior sentence, all energy efficiency loans shall bear interest at the rate of interest on the series of PACE bonds issued immediately preceding the date of execution of the energy efficiency loan, plus an amount determined by the Mayor to be sufficient to pay all administrative costs specified in section 102. In all cases, the principal, interest, and administrative costs shall be separately stated to permit the allocation thereof as provided in this act.

“(e) If the 1st source of funds deposited in the National Capital Energy Fund is not a grant but an obligation which requires the District to repay principal and interest thereon, the energy efficiency loan, or other, agreement shall be structured to repay such funding source plus administrative costs. Special Assessment payments shall be deposited in the same manner specified in section 8-1778.21.

“(f) A Special Assessment payment received prior to the issue of bonds secured by the Special Assessment payments may be used to provide a debt service reserve fund for the bonds.”

Section 402(b) of D.C. Law 18-156 provided that the act shall expire after 225 days of its having taken effect.


§ 8–1778.42. Qualification for loans.

(a) To qualify for a loan from the National Capital Energy Fund, the property owner shall file with the administrator a loan application including the following:

(1) The amount of loan requested;

(2) The agreement of the property owner to pay the full amount of the Special Assessment;

(3) A description of the Energy Efficiency Improvements that the property owner proposes to install and an estimate of the cost of the installation;

(4) An Energy Efficiency Audit from an auditor approved by the Administrator stating the amount of energy and water used by the subject property and the amount of the energy, water, and stormwater to be saved by the property owner through the installation of the Energy Efficiency Improvements, shall include in its calculation of savings reasonable estimates of:

(A) Energy and water price inflation likely in the future utility costs of the property; and

(B) Additional energy savings expected from the property owner’s selection of Energy Efficiency Improvements when replacing equipment using energy or water.

(5) A statement establishing whether the value of the savings from the installation of the Energy Efficiency Improvement is reasonably expected to equal or exceed the amount of the principal of, and interest on, the Energy Efficiency Loan and, if the property owner requests financing under § 8-1778.43(b), the cost of the Energy Efficiency Audit;

(6) Credit information and information regarding the subject property as determined by the administrator;

(7) Property owner certification that the Special Assessment will not violate any agreements with any other lender or provision of applicable lender consents; and

(8) Other information or documentation as the Administrator may deem necessary to evaluate a loan application.

(b) The property owner shall pay a fee at the time of filing the application in an amount to be determined by the administrator to be sufficient to cover the cost of processing the application and making the Energy Efficiency Loan.


(May 27, 2010, D.C. Law 18-183, § 302, 57 DCR 3406; Apr. 20, 2013, D.C. Law 19-262, § 102(g), 60 DCR 1300; Aug. 22, 2018, D.C. Law 22-155, § 605(b)(2), 65 DCR 7159.)

Effect of Amendments

The 2013 amendment by D.C. Law 19-262 rewrote (a)(4); substituted “savings from” for “energy saved by” in (a)(5); and added (a)(8) and made related changes.

Emergency Legislation

For temporary (90 day) addition, see § 203 of Energy Efficiency Emergency Act of 2009 (D.C. Act 18-324, March 1, 2010, 57 DCR 1851).

Temporary Legislation

Section 203 of D.C. Law 18-156 added a section to read as follows:

“Sec. 203. Qualification for loans.

“(a) To qualify for a loan from the National Capital Energy Fund, the property owner shall file with the administrator a loan application containing the following:

“(1) The amount of loan requested;

“(2) The agreement of the property owner to pay the full amount of the Special Assessment;

“(3) A description of the energy efficiency improvement that the property owner proposes to install and an estimate of the cost of the installation;

“(4) An energy efficiency audit from an auditor approved by the administrator stating the amount of energy used by the subject property and the amount of the energy to be saved by the installation of the energy efficiency improvement;

“(5) A statement establishing that the value of the energy saved by the installation of the energy efficiency improvement exceeds the amount of the principal of, and interest on, the energy efficiency loan;

“(6) Credit information and information regarding the subject property as determined by the administrator; and

“(7) Property owner certification that the Special Assessment will not violate any agreements with any other lender or provision of applicable lender consents.

“(b) The property owner shall pay a fee at the time of filing the application in an amount to be determined by the administrator to be sufficient to cover the cost of processing the application and making the energy efficiency loan.”

Section 402(b) of D.C. Law 18-156 provided that the act shall expire after 225 days of its having taken effect.


§ 8–1778.43. Approval of application.

(a) The administrator shall review the property owner’s application and, if it finds that the application satisfies all requirements, shall enter into a loan, or other, agreement with the property owner.

(b) The property owner may request in the loan application that the Energy Efficiency Loan include an amount equal to all or part of the cost of the Energy Efficiency Audit. If the amount requested is reasonable, the administrator shall include the amount in the Energy Efficiency Loan.

(c)(1) Except as provided in paragraph (2) of this subsection, before entering into an Energy Efficiency Loan with a property owner, the administrator shall verify, based upon information provided in the property owner's application, that the value of the savings from the installation of the Energy Efficiency Improvements is reasonably expected to exceed the amount of the principal of, and interest on, the Energy Efficiency Loan, including any cost of the Energy Efficiency Audit included pursuant to subsection (b) of this section.

(2) A property owner's application may be approved at the discretion of the administrator even when the value of the savings from the installation of the Energy Efficiency Improvements is not expected to exceed the amount of the principal of, and interest on, the Energy Efficiency Loan, if:

(A) The property owner has consented;

(B) The project meets high standards of energy efficiency or water efficiency or stormwater retention; and

(C) The project contributes to the public purpose declared in § 8-1778.02.


(May 27, 2010, D.C. Law 18-183, § 303, 57 DCR 3406; Apr. 20, 2013, D.C. Law 19-262, § 102(h), 60 DCR 1300; Aug. 22, 2018, D.C. Law 22-155, § 605(b)(3), 65 DCR 7159.)

Section References

This section is referenced in § 8-1778.42 and § 47-895.31.

Effect of Amendments

The 2013 amendment by D.C. Law 19-262 substituted “an Energy Efficiency Loan Agreement with a property owner, the administrator shall verify, based upon information provided in the property owner’s application, that the value of the savings from” for “a loan, or other, agreement with a property owner, the administrator shall verify, based upon information provided in the property owner’s application, that the value of the energy saved by” in (c).

Emergency Legislation

For temporary (90 day) addition, see § 204 of Energy Efficiency Emergency Act of 2009 (D.C. Act 18-324, March 1, 2010, 57 DCR 1851).

Temporary Legislation

Section 204 of D.C. Law 18-156 added a section to read as follows: “Sec. 204. Approval of application. The administrator shall review the property owner’s application and, if it finds that the application satisfies all requirements, shall enter into a loan, or other, agreement with the property owner.

Section 402(b) of D.C. Law 18-156 provided that the act shall expire after 225 days of its having taken effect.


§ 8–1778.44. Duties of administrator.

The administrator shall provide general management, oversight, and coordination of the Energy Efficiency Loan program and its related services, including performing the following duties:

(1) Outreach and marketing to eligible property owners to inform them of the existence and benefits of the Energy Efficiency Loan program in conjunction with the brand name established pursuant to § 8-1774.06;

(2) Establishing loan and credit standards and processes;

(3) Underwriting and servicing all Energy Efficiency Loan applications;

(4) Identifying market opportunities and funding leverage opportunities;

(5) Collecting appropriate documents and recording the tax liens;

(6) Sending sufficient information to the Office of Tax and Revenue to enable the Office of Tax and Revenue to collect the Special Assessments, including the allocations of Debt Service and administrative costs;

(7) Evaluating, retaining, and overseeing firms to perform energy audits, (including maintaining a list of approved auditors for use by property owners), energy benchmarking, and energy savings verification;

(8) Implementing the Quality Assurance Program;

(9) Certifying and pre-qualifying all contractors authorized to provide Energy Efficiency Improvements or other work under this chapter;

(10) Approving forms and quality standards to perform installation of Energy Efficiency Improvements;

(11) Maintaining a list of pre-qualified contractors authorized to provide Energy Efficiency Improvements under this chapter; and

(12) Reporting to the Mayor and the Council on the progress of the Energy Efficiency Loan program.


(May 27, 2010, D.C. Law 18-183, § 304, 57 DCR 3406.)

Emergency Legislation

For temporary (90 day) addition, see § 205 of Energy Efficiency Emergency Act of 2009 (D.C. Act 18-324, March 1, 2010, 57 DCR 1851).

Temporary Legislation

Section 205 of D.C. Law 18-156 added a section to read as follows:

“Sec. 205. Duties of administrator.

“The administrator shall provide general management, oversight, and coordination of the energy efficiency loan program and its related services, including performing the following duties:

“(1) Outreach and marketing to eligible property owners to inform them of the existence and benefits of the energy efficiency loan program in conjunction with the brand established pursuant to section 206 of the Clean and Affordable Energy Act of 2008, effective October 22, 2008 (D.C. Law 17-250; D.C. Official Code § 8-1774.06);

“(2) Establishing loan and credit standards and processes;

“(3) Underwriting and servicing all energy efficiency loan applications;

“(4) Identifying market opportunities and funding leverage opportunities;

“(5) Collecting appropriate documents and recording the tax liens;

“(6) Sending sufficient information to the Office of Tax and Revenue to enable the Office of Tax and Revenue to collect the Special Assessments, including the allocations of Debt Service and administrative costs;

“(7) Evaluating, retaining, and overseeing firms to perform energy audits, (including providing a list of approved auditors for use by property owners), energy benchmarking, and energy savings verification;

“(8) Oversee the Quality Assurance Program and energy audits and verify the quality of the outcome;

“(9) Certify and pre-qualify all contractors performing work within the loan program and authorized to provide energy conservation and retrofit services financed under this act; and

“(10) Maintain a list of pre-qualified contractors authorized to provide energy conservation services under this act.”

Section 402(b) of D.C. Law 18-156 provided that the act shall expire after 225 days of its having taken effect.


§ 8–1778.45. Authority to retain administrator.

(a) The Mayor may contract with an administrator to administer the Energy Efficiency Loan program created by this subchapter.

(b) Chapter 3A of Title 2 [§ 2-351.01 et seq.] shall not apply to the contract authorized by subsection (a) of this section.


(May 27, 2010, D.C. Law 18-183, § 305, 57 DCR 3406; Sept. 26, 2012, D.C. Law 19-171, § 224(b), 59 DCR 6190; Apr. 20, 2013, D.C. Law 19-262, § 102(i), 60 DCR 1300; Oct. 8, 2016, D.C. Law 21-160, § 6023, 63 DCR 10775.)

Section References

This section is referenced in § 8-1778.01.

Effect of Amendments

The 2012 amendment by D.C. Law 19-171 substituted “Chapter 3A of Title 2” for “§ 2-301.01 et seq.” in (b).

The 2013 amendment by D.C. Law 19-262 rewrote (b).

Emergency Legislation

For temporary (90 day) addition, see § 206 of Energy Efficiency Emergency Act of 2009 (D.C. Act 18-324, March 1, 2010, 57 DCR 1851).

Temporary Legislation

Section 206 of D.C. Law 18-156 added a section to read as follows:

“Sec. 206. Authority to retain administrator.

“(a) The Mayor may contract with an administrator to administer the energy efficiency loan program created by this title.

“(b) The District of Columbia Procurement Practices Act of 1985, effective February 21, 1986 (D.C. Law 6-85; D.C. Official Code § 2-301.01 et seq.), shall not apply to the contract authorized by subsection (a) of this section until 3 years after the effective date of this act.

Section 402(b) of D.C. Law 18-156 provided that the act shall expire after 225 days of its having taken effect.


§ 8–1778.46. Establishment of Quality Assurance Program.

The Mayor shall establish a Quality Assurance Program to promote transparency, assure the competence of contractors and individuals performing retrofits, analyze energy savings, and achieve the following goals:

(1) Establishment and publication of the Certification Standards required of contractors and subcontractors to be eligible to receive contracts or subcontracts under this chapter, which at a minimum shall require contractors to comply with:

(A) All applicable business licensing, insurance, tax, and bonding laws and regulations of the District; and

(B) All applicable federal and District wage and hour, employment, workplace health and safety, equal employment opportunity, and other standards of labor and employment law, including proper classification of workers;

(2) Providing private investors, lenders, and property owners with the certification and performance standards required of auditors, inspectors, contractors, subcontractors, maintenance companies, and other entities that provide construction, installation, repairs, and maintenance of Energy Efficiency Improvements as a result of an Energy Efficiency Loan;

(3) Conducting quality control inspections of services rendered by contractors and subcontractors; and

(4) Verifying and analyzing energy savings following the installation of Energy Efficiency Improvements.


(May 27, 2010, D.C. Law 18-183, § 306, 57 DCR 3406.)

Emergency Legislation

For temporary (90 day) addition, see § 207 of Energy Efficiency Emergency Act of 2009 (D.C. Act 18-324, March 1, 2010, 57 DCR 1851).

Temporary Legislation

Section 207 of D.C. Law 18-156 added a section to read as follows:

“Sec. 207. Establishment of a Quality Assurance Program.

“The Mayor shall establish a Quality Assurance Program to promote transparency, competence of contractors and employees performing retrofits, and analysis of the underlying energy savings, to achieve the following goals:

“(1) Establish and publish the Certification Standards required of contractors and subcontractors for such businesses to be eligible to receive a contract funded from the National Capital Energy Fund, which, at a minimum, shall require contractors to comply with:

“(A) All applicable business licensing, insurance, tax, and bonding laws and regulations of the District of Columbia; and

“(B) All applicable federal and District wage and hour, employment, workplace health and safety, and equal employment opportunity laws, and other standards of labor law, including proper classification of workers.

“(2) Provide private investors, lenders, and property owners with the Certification Standards and performance metrics required of auditors, inspectors, contractors, subcontractors, maintenance companies, and others who provide construction, repairs, and maintenance of energy retrofit services as a result of an energy efficiency loan;

“(3) Conduct quality control inspections of services rendered by contractors and subcontractors to ensure proper auditing, installation, and other standards; and

“(4) Verify and analyze the energy savings achieved post-retrofit.”

Section 402(b) of D.C. Law 18-156 provided that the act shall expire after 225 days of its having taken effect.


§ 8–1778.47. Workforce development and employment plan.

In an effort to maximize employment opportunities to District residents, the Mayor shall establish a workforce development and employment plan that shall incorporate the first source hiring requirements of § 2-219.03, with priority given to employment of:

(1) Residents of economically distressed neighborhoods;

(2) Low-income individuals; and

(3) Unemployed and underemployed residents.


(May 27, 2010, D.C. Law 18-183, § 307, 57 DCR 3406.)

Emergency Legislation

For temporary (90 day) addition, see § 208 of Energy Efficiency Emergency Act of 2009 (D.C. Act 18-324, March 1, 2010, 57 DCR 1851).

Temporary Legislation

Section 208 of D.C. Law 18-156 added a section to read as follows:

“Sec. 208. Workforce development and employment plan; Qualified Apprenticeship Programs.

“In an effort to maximize employment opportunities to District residents, the Mayor shall:

“(1) Establish a workforce development and employment plan, which shall incorporate the District’s first source agreement hiring requirement, with priority given to employment of:

“(A) Residents of economically distressed neighborhoods;

“(B) Low-income individuals; and

“(C) Unemployed and underemployed residents; and

“(2) Leverage Qualified Apprenticeship Programs to train individuals for advancement to living wage career path employment.”

Section 402(b) of D.C. Law 18-156 provided that the act shall expire after 225 days of its having taken effect.


§ 8–1778.48. Rules.

The Mayor, pursuant to subchapter I of Chapter 5 of Title 2 [§ 2-501 et seq.], shall issue rules to implement the provisions of this chapter.


(May 27, 2010, D.C. Law 18-183, § 308, 57 DCR 3406.)

Section References

This section is referenced in § 8-1778.01.

Emergency Legislation

For temporary (90 day) addition, see § 209 of Energy Efficiency Emergency Act of 2009 (D.C. Act 18-324, March 1, 2010, 57 DCR 1851).

Temporary Legislation

Section 209 of D.C. Law 18-156 added a section to read as follows: “Sec. 209. Rules. The Mayor, pursuant to Title 1 of the District of Columbia Administrative Procedure Act, approved October 21, 1968 (82 Stat. 1204; D.C. Official Code § 2-501 et seq.), may issue rules to implement the provisions of this act.”

Section 402(b) of D.C. Law 18-156 provided that the act shall expire after 225 days of its having taken effect.

Delegation of Authority

Delegation of Authority—Energy Efficiency Financing Act of 2010, see Mayor’s Order 2010-118, July 16, 2010 ( 57 DCR 6212).