[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4903 Introduced in House (IH)]
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117th CONGRESS
1st Session
H. R. 4903
To require the Secretary of Energy to establish a grant program to
incentivize small business participation in demand side management
programs, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 30, 2021
Mr. Welch introduced the following bill; which was referred to the
Committee on Energy and Commerce
_______________________________________________________________________
A BILL
To require the Secretary of Energy to establish a grant program to
incentivize small business participation in demand side management
programs, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Main Street Efficiency Act of
2021''.
SEC. 2. FINDINGS; PURPOSES.
(a) Findings.--Congress finds that--
(1) small businesses in the United States employ roughly
half of the workforce, and create about half of the gross
domestic product, of the United States;
(2) 30,000,000 workers in the United States remain at risk
of long-term unemployment, and 1 in 4 small businesses in the
United States remain at risk of long-term closure, as a result
of the COVID-19 pandemic;
(3) prior to the COVID-19 pandemic, there were 2,400,000
workers in the United States employed in the energy efficiency
sector, which was growing at a rate 3 times greater than that
of the overall economy of the United States;
(4) over 300,000 energy efficiency workers remain
unemployed as of January 1, 2021, due to the COVID-19 pandemic;
(5) nearly 80 percent of energy efficiency workers are
employed by companies with fewer than 20 employees;
(6) United States small business energy bills total
$60,000,000,000 annually, of which 30 percent could be saved
through energy efficiency improvements, which would save small
businesses $18,000,000,000 annually;
(7) three-quarters of electric and natural gas utility
companies in the United States operate demand side management
programs to incentivize customers to make energy efficiency
improvements; and
(8) participation rates for small businesses in demand side
management programs are typically very low because small
businesses do not have the capital to meet the customer
contribution that utilities require.
(b) Purposes.--The purposes of this Act are--
(1) to make small businesses more financially viable
through energy efficiency improvements that lower monthly
utility bills;
(2) to restore and create energy efficiency jobs across the
United States;
(3) to provide work and revenue streams for small
businesses in the energy efficiency sector;
(4) to ensure that demand side management programs for
small businesses include participation by--
(A) minority, women, and veteran-owned small
businesses;
(B) small businesses in disadvantaged
neighborhoods; and
(C) newly created small businesses;
(5) to increase small business participation rates in
demand side management programs;
(6) to reduce the energy demand and emissions of the United
States associated with energy use; and
(7) to improve the indoor environments of small businesses
across the United States.
SEC. 3. GRANTS FOR DEMAND SIDE MANAGEMENT PROGRAMS.
(a) Definitions.--In this section:
(1) Customer contribution.--The term ``customer
contribution'' means the portion of the total cost of an
activity carried out under a demand side management program
that an eligible small business is responsible for covering to
secure investment from a qualifying utility or program
administrator.
(2) Demand side management program.--
(A) In general.--The term ``demand side management
program'' means a program to plan, implement, and
monitor activities of a qualifying utility or program
administrator that are designed to encourage an
eligible small business to modify their level or
pattern of electricity or natural gas usage in a manner
that reduces the monthly energy costs of that eligible
small business.
(B) Inclusions.--The term ``demand side management
program'' includes any activity that--
(i) improves the efficiency of any end-use
appliance or equipment that uses electricity or
natural gas;
(ii) reduces monthly energy usage through
weatherization, energy efficiency retrofitting,
or infrastructure improvements;
(iii) enables or enhances overall energy or
cost savings through digital technologies;
(iv) improves the effectiveness of a
program through digital analytics or
engagement;
(v) improves the demand response
capabilities of a qualifying utility; or
(vi) supports the deployment of electric
vehicles or energy storage technology.
(3) Diverse supplier.--The term ``diverse supplier'' means
a service provider or supplier at least 51 percent of which is
owned, operated, or controlled by an individual who is a
minority, a woman, a veteran, disabled, or identifies as
lesbian, gay, bisexual, transgender, or queer (also known as
``LGBTQ'').
(4) Electric utility.--The term ``electric utility'' has
the meaning given the term in section 3 of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2602).
(5) Eligible small business.--The term ``eligible small
business'' means a small commercial account utility customer,
as determined by the applicable qualifying utility or program
administrator that receives a grant under this section, that--
(A) has a peak demand of less than 300 kilowatts of
electricity in any billing month; and
(B) uses less than 150,000 therms of natural gas
each year.
(6) Gas utility.--The term ``gas utility'' has the meaning
given the term in section 302 of the Public Utility Regulatory
Policies Act of 1978 (15 U.S.C. 3202).
(7) Minority owned or controlled.--The term ``minority
owned or controlled'' means, with respect to an eligible small
business, an eligible small business--
(A)(i) that is privately owned and for-profit; and
(ii) at least 51 percent of which is owned or
controlled by individuals who are of Asian-Indian,
Asian-Pacific, Black, Latino, or Native American origin
or descent;
(B)(i) that is publicly owned; and
(ii) at least 51 percent of the stock of which is
owned by 1 or more individuals of Asian-Indian, Asian-
Pacific, Black, Latino, or Native American origin or
descent; or
(C)(i) that is a not-for-profit business;
(ii) at least 51 percent of the governing body or
board of directors of which is composed of and
controlled by individuals who are of Asian-Indian,
Asian-Pacific, Black, Latino, or Native American origin
or descent; and
(iii) the management and daily operations of which
are controlled by individuals described in clause (ii).
(8) Program administrator.--The term ``program
administrator'' means a nonutility organization, such as a
State government, contractor, or nonprofit organization, that
administers a demand side management program that is funded
by--
(A) public benefit charges to utility customers, as
approved by the governing body of the nonutility
organization; or
(B) other targeted funds from qualifying utilities
or State governments.
(9) Qualifying utility.--The term ``qualifying utility''
means an entity that--
(A) is an electric utility or gas utility that--
(i) is owned by investors;
(ii) is a political subdivision of a State
or an Indian Tribe, such as a municipally owned
utility, agency, authority, corporation, or
instrumentality of a State or an Indian Tribe;
(iii) is a rural electric cooperative; or
(iv) is primarily responsible for carrying
out a demand side management program that is
funded by utility ratepayers;
(B) operates in the United States, a territory of
the United States, or on land owned by a federally
recognized Indian Tribe; and
(C) has established a demand side management
program for eligible small businesses as of the date on
which the qualifying utility submits an application
under subsection (c)(1).
(10) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
(b) Establishment.--Not later than 60 days after the date of
enactment of this Act, the Secretary shall establish and carry out a
program to provide grants to qualifying utilities and program
administrators in accordance with this section.
(c) Applications.--
(1) In general.--To apply for a grant under this section, a
qualifying utility or program administrator shall submit to the
Secretary an application at such time, in such manner, and
containing such information as the Secretary may require.
(2) Priority.--In awarding grants under this section, the
Secretary shall, to the maximum extent practicable, give
priority to a qualifying utility or program administrator that
will carry out a demand side management program that--
(A) utilizes diverse suppliers; and
(B) includes as participants eligible small
businesses that--
(i) operate in an underserved, rural, or
economically disadvantaged community;
(ii) are owned and operated by members of
the Armed Forces who are serving on active
duty, separated from active duty, or retired
from active duty;
(iii) are minority owned or controlled;
(iv) are owned and operated by socially and
economically disadvantaged individuals;
(v) have operated for less than 7 years as
of the date on which the qualifying utility or
program administrator submits an application
for a grant under paragraph (1);
(vi) operate in diverse geographic
locations, as determined by the qualifying
utility or program administrator, as
applicable; or
(vii) are of varying business types.
(3) Deadline for selection.--Subject to the availability of
appropriations and paragraph (4), the Secretary shall determine
whether to provide a grant to a qualifying utility or program
administrator that submits an application under paragraph (1)
not later than the date that is 30 days after the date on which
the application is submitted.
(4) Delayed issuance of awards.--The Secretary may not
provide grants under this section until the date that is 45
days after the date on which the Secretary begins to accept
applications under paragraph (1).
(d) Grant Funds.--
(1) Use of funds.--A qualifying utility or program
administrator that receives a grant under this section shall
use the grant funds to pay customer contributions.
(2) Limitations on grant amounts.--
(A) Max grant amount.--The amount of a grant
awarded under this section to a qualifying utility or
program administrator that carries out a demand side
management program shall not exceed the lesser of--
(i) the amount of funding the qualifying
utility or program administrator, as
applicable, commits to spending on the demand
side management program for the period of the
grant; and
(ii) $100,000,000.
(B) No reduction in utility contributions.--In
providing grants under this section, the Secretary
shall enter into an agreement with each grant recipient
to ensure that each grant recipient does not, as a
result of receiving a grant under this section, reduce
the amount it spends paying for the costs of activities
carried out under a demand side management program for
the benefit of any of customer classes of that grant
recipient.
(C) Use of funds for energy efficient
infrastructure.--A qualifying utility or program
administrator awarded a grant under this section shall
use not more than 25 percent of the grant funds to
support activities relating to the deployment of
electric vehicles, distributed energy resources, or
energy storage technology.
(D) Use of funds for demand side management program
costs.--Of the grant funds provided under this section
to a qualifying utility or program administrator, the
amount used by the qualifying utility or program
administrator to pay a customer contribution, or any
portion of a customer contribution, may not--
(i) exceed the amount of non-Federal
funding that the qualifying utility or program
administrator, as applicable, spends on
activities carried out under a demand side
management program; or
(ii) represent more than 50 percent of the
total costs of those activities.
(E) Administrative costs.--
(i) In general.--A qualifying utility or
program administrator awarded a grant under
this section shall use not more than 10 percent
of the grant funds to pay for the
administrative costs relating to the carrying
out of activities under a demand side
management program.
(ii) Rates.--Nothing in this subsection
shall affect the ability of a qualifying
utility or program administrator that receives
a grant under this section to charge a
federally approved indirect rate.
(e) Assessment and Report.--
(1) In general.--The Secretary shall carry out an annual
assessment of the effect of grants provided under this section
on energy use, economic outcomes, the environment, and social
outcomes, including with respect to--
(A) the electricity and natural gas usage (in terms
of kilowatt hours, kilowatts, and therms) of each
eligible small business that participated in a demand
side management program carried out by a qualifying
utility or program administrator that received a grant
under this section;
(B) the changes in the level of customer
contributions;
(C) the cost to eligible small businesses of
purchasing electricity and natural gas;
(D) job creation, wages, benefits, career
development opportunities, and the diversity of the
energy efficiency workforce;
(E) the extent to which--
(i) qualified utilities and program
administrators, as applicable, utilize diverse
suppliers; and
(ii) minority owned or controlled eligible
small businesses benefit from the program;
(F) the amount of non-Federal investments made in
demand side management programs; and
(G) the electric grid, including effects on--
(i) load flexibility;
(ii) cost efficiency;
(iii) avoidance of new capacity; and
(iv) any other relevant benefits, as
determined by the Secretary.
(2) Use of program evaluation data.--To the extent
practicable, the Secretary shall carry out an assessment under
paragraph (1) using data that includes any data made available
through program evaluations that are completed by qualifying
utilities or program administrators in response to the
requirements of the governing body of the qualifying utility or
program administrator.
(3) Report.--Beginning in the first calendar year that
begins after the date of enactment of this Act, and annually
thereafter, the Secretary shall, not later than April 30 of
each year, submit to Congress a report on the results of the
most recent assessment carried out under paragraph (1).
(f) Authorization of Appropriations.--
(1) In general.--There is authorized to be appropriated to
the Secretary to carry out this section $6,000,000,000 for
fiscal year 2022, to remain available until expended.
(2) Unused amounts.--Any amount of a grant provided under
this section that has not been used by a qualifying utility or
program administrator by the date that is 3 years after the
date on which the grant was provided--
(A) shall be returned to the Treasury; and
(B) is authorized to be appropriated to carry out
this section in addition to the amounts authorized to
be appropriated under paragraph (1).
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