Sec. 4. Phase 1: Initial allocation of grants to States
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Not later than 30 days after the date of enactment of this Act, the Secretary shall issue an invitation to States to submit plans to participate in an electric and thermal energy productivity challenge in accordance with this section. Subject to section 7, the Secretary shall use funds made available under section 8(b)(1) to provide an initial allocation of grants to not more than 25 States. The amount of a grant provided to a State under this section shall be not less than $1,000,000 nor more than $3,500,000.
To receive a grant under this section, not later than 90 days after the date of issuance of the invitation under subsection (a), a State shall submit to the Secretary an application to receive the grant by submitting a revised State energy conservation plan under section 362 of the Energy Policy and Conservation Act ( 42 U.S.C. 6322 ). Not later than 90 days after the submission of revised State energy conservation plans under subsection (c), the Secretary shall make a final decision on the allocation of grants under this section.
The Secretary shall base the decision of the Secretary under paragraph
(1)on— plans for improvement in electric and thermal energy productivity consistent with this Act; and other factors determined appropriate by the Secretary, including geographic diversity. The Secretary shall— rank revised plans submitted under this section in order of the greatest to least likely contribution to improving energy productivity in a State; and provide grants under this section in accordance with the ranking and the scale and scope of a plan. A revised State energy conservation plan submitted under subsection
(c)shall provide— a description of the manner in which— energy savings will be monitored and verified; a statewide baseline of energy use and potential resources for calendar year 2010 will be established to measure improvements; the plan will promote achievement of energy savings and demand reduction goals; public and private sector investments in energy efficiency will be leveraged, including through banks, credit unions, and institutional investors; and the plan will not cause cost-shifting among utility customer classes or negatively impact low-income populations; and an assurance that— the State energy office required to submit the plan and the State public service commission are cooperating and coordinating programs and activities under this Act; the State is cooperating with local units of government to expand programs as appropriate; and grants provided under this Act will be used to supplement and not supplant Federal, State, or ratepayer-funded programs or activities in existence on the date of enactment of this Act. A State may use grants provided under this section to promote— the expansion of industrial energy efficiency, combined heat and power, and waste heat-to-power utilization; the expansion of policies and programs that will advance energy efficiency retrofits for public and private commercial buildings, schools, hospitals, and residential buildings (including multifamily buildings) through expanded energy service performance contracts, zero net-energy buildings, or improved building energy efficiency codes; the establishment or expansion of incentives in the electric utility sector to enhance demand response and energy efficiency, including consideration of additional incentives to promote the purposes of section 111(d) of the Public Utility Regulatory Policies Act of 1978 ( 16 U.S.C. 2621(d) ), such as appropriate, cost-effective policies regarding rate structures, grid improvements, behavior change, combined heat and power and waste heat-to-power incentives, financing of energy efficiency programs, data use incentives, district heating, and regular energy audits; and leadership by example, in which State activities involving both facilities and vehicle fleets can be a model for other action to promote energy efficiency and can be expanded with Federal grants provided under this Act.
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