[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 2066 Introduced in Senate (IS)]
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117th CONGRESS
1st Session
S. 2066
To require the Secretary of Energy to establish an energy efficiency
revolving loan fund capitalization grant program, and for other
purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
June 15, 2021
Mr. Manchin (for himself and Ms. Murkowski) introduced the following
bill; which was read twice and referred to the Committee on Energy and
Natural Resources
_______________________________________________________________________
A BILL
To require the Secretary of Energy to establish an energy efficiency
revolving loan fund capitalization grant program, 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 ``Investing in New Strategies for
Upgrading Lower Attaining Efficiency Buildings Act of 2021'' or the
``INSULATE Buildings Act of 2021''.
SEC. 2. DEFINITIONS.
In this Act:
(1) Priority state.--The term ``priority State'' means a
State that--
(A) is eligible for funding under the State Energy
Program; and
(B)(i) is among the 15 States with the highest
annual per-capita combined residential and commercial
sector energy consumption, as most recently reported by
the Energy Information Administration; or
(ii) is among the 15 States with the highest annual
per-capita energy-related carbon dioxide emissions by
State, as most recently reported by the Energy
Information Administration.
(2) Program.--The term ``program'' means the program
established under section 3(a).
(3) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
(4) State.--The term ``State'' means a State (as defined in
section 3 of the Energy Policy and Conservation Act (42 U.S.C.
6202)), acting through a State energy office.
(5) State energy program.--The term ``State Energy
Program'' means the State Energy Program established under part
D of title III of the Energy Policy and Conservation Act (42
U.S.C. 6321 et seq.).
SEC. 3. ENERGY EFFICIENCY REVOLVING LOAN FUND CAPITALIZATION GRANT
PROGRAM.
(a) In General.--Not later than 1 year after the date of enactment
of this Act, under the State Energy Program, the Secretary shall
establish a program under which the Secretary shall provide
capitalization grants to States to establish a revolving loan fund
under which the State shall provide loans and grants, as applicable, in
accordance with this section.
(b) Distribution of Funds.--
(1) All states.--
(A) In general.--Of the amounts made available
under subsection (k), the Secretary shall use 40
percent to provide capitalization grants to States that
are eligible for funding under the State Energy
Program, in accordance with the allocation formula
established under section 420.11 of title 10, Code of
Federal Regulations (or successor regulations).
(B) Remaining funding.--After applying the
allocation formula described in subparagraph (A), the
Secretary shall redistribute any unclaimed funds to the
remaining States seeking capitalization grants under
that subparagraph.
(2) Priority states.--
(A) In general.--Of the amounts made available
under subsection (k), the Secretary shall use 60
percent to provide supplemental capitalization grants
to priority States in accordance with an allocation
formula determined by the Secretary.
(B) Remaining funding.--After applying the
allocation formula described in subparagraph (A), the
Secretary shall redistribute any unclaimed funds to the
remaining priority States seeking supplemental
capitalization grants under that subparagraph.
(C) Grant amount.--
(i) Maximum amount.--The amount of a
supplemental capitalization grant provided to a
State under this paragraph shall not exceed
$30,000,000.
(ii) Supplement not supplant.--A
supplemental capitalization grant received by a
State under this paragraph shall supplement,
not supplant, a capitalization grant received
by that State under paragraph (1).
(c) Applications for Capitalization Grants.--A State seeking a
capitalization grant under the program shall submit to the Secretary an
application at such time, in such manner, and containing such
information as the Secretary may require, including--
(1) a detailed explanation of how the grant will be used,
including a plan to establish a new revolving loan fund or use
an existing revolving loan fund;
(2) the need of eligible recipients for loans and grants in
the State for assistance with conducting energy audits;
(3) a description of the expected benefits that building
infrastructure and energy system upgrades and retrofits will
have on communities in the State; and
(4) in the case of a priority State seeking a supplemental
capitalization grant under subsection (b)(2), a justification
for needing the supplemental funding.
(d) Timing.--
(1) In general.--The Secretary shall establish a timeline
with dates by, or periods by the end of, which a State shall--
(A) on receipt of a capitalization grant under the
program, deposit the grant funds into a revolving loan
fund; and
(B) begin using the capitalization grant as
described in subsection (e)(1).
(2) Use of grant.--Under the timeline established under
paragraph (1), a State shall be required to begin using a
capitalization grant not more than 180 days after the date on
which the grant is received.
(e) Use of Grant Funds.--
(1) In general.--A State that receives a capitalization
grant under the program--
(A) shall provide loans in accordance with
paragraph (2); and
(B) may provide grants in accordance with paragraph
(3).
(2) Loans.--
(A) Commercial energy audit.--
(i) In general.--A State that receives a
capitalization grant under the program may
provide a loan to an eligible recipient
described in clause (iii) to conduct a
commercial energy audit.
(ii) Audit requirements.--A commercial
energy audit conducted using a loan provided
under clause (i) shall--
(I) determine the overall
consumption of energy of the facility
of the eligible recipient;
(II) identify and recommend
lifecycle cost-effective opportunities
to reduce the energy consumption of the
facility of the eligible recipient,
including through energy efficient--
(aa) lighting;
(bb) heating, ventilation,
and air conditioning systems;
(cc) windows;
(dd) appliances; and
(ee) insulation and
building envelopes;
(III) estimate the energy and cost
savings potential of the opportunities
identified in subclause (II) using
software approved by the Secretary;
(IV) identify--
(aa) the period and level
of peak energy demand for each
building within the facility of
the eligible recipient; and
(bb) the sources of energy
consumption that are
contributing the most to that
period of peak energy demand;
(V) recommend controls and
management systems to reduce or
redistribute peak energy consumption;
(VI) recommend strategies to
increase electrification of the
facility of the eligible recipient,
including the installation of--
(aa) charging
infrastructure for plug-in
electric vehicles;
(bb) electric heating and
cooling systems; or
(cc) electric appliances;
and
(VII) estimate the total energy and
cost savings potential for the facility
of the eligible recipient if all
recommended upgrades and retrofits are
implemented, using software approved by
the Secretary.
(iii) Eligible recipients.--An eligible
recipient under clause (i) is a business that--
(I) conducts the majority of its
business in the State that provides the
loan under that clause; and
(II) owns or operates--
(aa) 1 or more commercial
buildings; or
(bb) commercial space
within a building that serves
multiple functions, such as a
building for commercial and
residential operations.
(B) Residential energy audits.--
(i) In general.--A State that receives a
capitalization grant under the program may
provide a loan to an eligible recipient
described in clause (iii) to conduct a
residential energy audit.
(ii) Residential energy audit
requirements.--A residential energy audit
conducted using a loan under clause (i) shall--
(I) utilize the same evaluation
criteria as the Home Performance
Assessment used in the Energy Star
program established under section 324A
of the Energy Policy and Conservation
Act (42 U.S.C. 6294a);
(II) recommend lifecycle cost-
effective opportunities to reduce
energy consumption within the
residential building of the eligible
recipient, including through energy
efficient--
(aa) lighting;
(bb) heating, ventilation,
and air conditioning systems;
(cc) windows;
(dd) appliances; and
(ee) insulation and
building envelopes;
(III) recommend controls and
management systems to reduce or
redistribute peak energy consumption;
(IV) recommend strategies to
increase electrification of the
residential building of the eligible
recipient, including the installation
of--
(aa) charging
infrastructure for plug-in
electric vehicles, if possible;
(bb) electric heating and
cooling systems; or
(cc) electric appliances;
(V) compare the energy consumption
of the residential building of the
eligible recipient to comparable
residential buildings in the same
geographic area; and
(VI) provide a Home Energy Score,
or equivalent score, for the
residential building of the eligible
recipient by using the Home Energy
Score Tool of the Department of Energy
or an equivalent scoring tool.
(iii) Eligible recipients.--An eligible
recipient under clause (i) is--
(I) an individual who owns--
(aa) a single family home;
(bb) a condominium or
duplex; or
(cc) a manufactured housing
unit; or
(II) a business that owns or
operates a multifamily housing
facility.
(C) Commercial and residential energy upgrades and
retrofits.--
(i) In general.--A State that receives a
capitalization grant under the program may
provide a loan to an eligible recipient
described in clause (ii) to carry out upgrades
or retrofits of building infrastructure and
systems that--
(I) are recommended in the
commercial energy audit or residential
energy audit, as applicable, completed
for the building or facility of the
eligible recipient;
(II) satisfy at least 1 of the
criteria in the Home Performance
Assessment used in the Energy Star
program established under section 324A
of the Energy Policy and Conservation
Act (42 U.S.C. 6294a);
(III) improve, with respect to the
building or facility of the eligible
recipient--
(aa) the physical comfort
of the building or facility
occupants;
(bb) the energy efficiency
of the building or facility; or
(cc) the quality of the air
in the building or facility;
and
(IV)(aa) are lifecycle cost-
effective; and
(bb)(AA) reduce the energy
intensity of the building or facility
of the eligible recipient; or
(BB) improve the control and
management of energy usage of the
building or facility to reduce demand
during peak times.
(ii) Eligible recipients.--An eligible
recipient under clause (i) is an eligible
recipient described in subparagraph (A)(iii) or
(B)(iii) that--
(I) has completed a commercial
energy audit described in subparagraph
(A) or a residential energy audit
described in subparagraph (B) using a
loan provided under the applicable
subparagraph; or
(II) has completed a commercial
energy audit or residential energy
audit that--
(aa) was not funded by a
loan under this paragraph; and
(bb)(AA) meets the
requirements for the applicable
audit under subparagraph (A) or
(B), as applicable; or
(BB) the Secretary
determines is otherwise
satisfactory.
(iii) Loan term.--A loan provided under
this subparagraph shall be required to be fully
amortized by the earlier of--
(I) the year in which the upgrades
or retrofits carried out using the loan
exceed their expected useful life; and
(II) 15 years after those upgrades
or retrofits are installed.
(D) Referral to qualified contractors.--Following
the completion of an audit under subparagraph (A) or
(B) by an eligible recipient of a loan under the
applicable subparagraph, the State may refer the
eligible recipient to a qualified contractor, as
determined by the State, to estimate--
(i) the upfront capital cost of each
recommended upgrade; and
(ii) the total upfront capital cost of
implementing all recommended upgrades.
(E) Loan recipients.--Each State providing loans
under this paragraph shall, to the maximum extent
practicable, provide loans to eligible recipients that
do not have access to private capital.
(3) Grants and technical assistance.--
(A) In general.--A State that receives a
capitalization grant under the program may use not more
than 25 percent of the grant funds to provide grants or
technical assistance to eligible entities described in
subparagraph (B) to carry out the activities described
in subparagraphs (A), (B), and (C) of paragraph (2).
(B) Eligible entity.--An entity eligible for a
grant or technical assistance under subparagraph (A)
is--
(i) a business that--
(I) is an eligible recipient
described in paragraph (2)(A)(iii); and
(II) has fewer than 500 employees;
or
(ii) a low-income individual (as defined in
section 3 of the Workforce Innovation and
Opportunity Act (29 U.S.C. 3102)) that owns a
residential building.
(4) Administrative expenses.--A State that receives a
capitalization grant under the program may use not more than 10
percent of the grant funds for administrative expenses.
(f) Coordination With Existing Programs.--A State receiving a
capitalization grant under the program is encouraged to utilize and
build on existing programs and infrastructure within the State that may
aid the State in carrying out a revolving loan fund program.
(g) Leveraging Private Capital.--A State receiving a capitalization
grant under the program shall, to the maximum extent practicable, use
the grant to leverage private capital.
(h) Outreach.--The Secretary shall engage in outreach to inform
States of the availability of capitalization grants under the program.
(i) Davis-Bacon Compliance.--
(1) In general.--Any laborer or mechanic employed by any
contractor or subcontractor in the performance of work on any
project funded by a grant under this section shall be paid
wages at rates not less than those prevailing on similar
construction in the locality as determined by the Secretary of
Labor under subchapter IV of chapter 31 of title 40, United
States Code (commonly referred to as the ``Davis-Bacon Act'').
(2) Authority.--With respect to the labor standards
specified in paragraph (1), the Secretary of Labor shall have
the authority and functions set forth in Reorganization Plan
Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. App.) and section
3145 of title 40, United States Code.
(j) Report.--Each State that receives a capitalization grant under
the program shall, not later than 1 year after a grant is received,
submit to the Secretary a report that describes--
(1) the number of recipients to which the State has
distributed--
(A) loans for--
(i) commercial energy audits under
subsection (e)(2)(A);
(ii) residential energy audits under
subsection (e)(2)(B);
(iii) energy upgrades and retrofits under
subsection (e)(2)(C); and
(B) grants under subsection (e)(3); and
(2) the average capital cost of upgrades and retrofits
across all commercial energy audits and residential energy
audits that were conducted in the State using loans provided by
the State under subsection (e).
(k) Authorization of Appropriations.--There is authorized to be
appropriated to the Secretary to carry out this section $250,000,000
for each of fiscal years 2022 through 2026, to remain available until
expended.
SEC. 4. ENERGY AUDITOR TRAINING GRANT PROGRAM.
(a) Definitions.--In this section:
(1) Covered certification.--The term ``covered
certification'' means any of the following certifications:
(A) The ASHRAE Building Energy Assessment
Professional certification.
(B) The Association of Energy Engineers Certified
Energy Auditor certification.
(C) The Building Performance Institute Home Energy
Professional Energy Auditor certification.
(D) The Residential Energy Services Network Home
Energy Rater certification.
(E) Any other third-party certification recognized
by the Department of Energy.
(F) Any third-party certification that the
Secretary determines is equivalent to the
certifications described in subparagraphs (A) through
(E).
(2) Eligible state.--The term ``eligible State'' means a
State that--
(A) has a demonstrated need for assistance for
training energy auditors; and
(B) meets any additional criteria determined
necessary by the Secretary.
(b) Establishment.--Under the State Energy Program, the Secretary
shall establish a competitive grant program under which the Secretary
shall award grants to eligible States to train individuals to conduct
energy audits or surveys of commercial and residential buildings.
(c) Applications.--
(1) In general.--A State seeking a grant under subsection
(b) shall submit to the Secretary an application at such time,
in such manner, and containing such information as the
Secretary may require, including the energy auditor training
program plan described in paragraph (2).
(2) Energy auditor training program plan.--An energy
auditor training program plan submitted with an application
under paragraph (1) shall include--
(A)(i) a proposed training curriculum for energy
audit trainees; and
(ii) an identification of the covered certification
that those trainees will receive on completion of that
training curriculum;
(B) the expected per-individual cost of training;
(C) a plan for connecting trainees with employment
opportunities; and
(D) any additional information required by the
Secretary.
(d) Amount of Grant.--The amount of a grant awarded to an eligible
State under subsection (b)--
(1) shall be determined by the Secretary, taking into
account the population of the eligible State; and
(2) shall not exceed $2,000,000 for any eligible State.
(e) Use of Funds.--
(1) In general.--An eligible State that receives a grant
under subsection (b) shall use the grant funds--
(A) to cover any cost associated with individuals
being trained or certified to conduct energy audits
by--
(i) the State; or
(ii) a State-certified third party training
program; and
(B) subject to paragraph (2), to pay the wages of a
trainee during the period in which the trainee receives
training and certification.
(2) Limitation.--Not more than 10 percent of grant funds
provided under subsection (b) to an eligible State may be used
for the purpose described in paragraph (1)(B).
(f) Consultation.--In carrying out this section, the Secretary
shall consult with the Secretary of Labor.
(g) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $8,000,000 for each of fiscal
years 2022 through 2026.
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