EISA Subtitle E - Energy Efficiency and Conservation Block Grants

H. R. 6—176
as allowing utilities to retain a portion of the costreducing benefits accruing from the programs;
‘‘(iii) promoting the impact on adoption of energy
efficiency as 1 of the goals of retail rate design, recognizing that energy efficiency must be balanced with
other objectives; and
‘‘(iv) adopting rate designs that encourage energy
efficiency for each customer class.
For purposes of applying the provisions of this subtitle
to this paragraph, any reference in this subtitle to the
date of enactment of this Act shall be treated as a reference
to the date of enactment of this paragraph.’’.
(c) CONFORMING AMENDMENT.—Section 303(a) of the Public
Utility Regulatory Policies Act of 1978 (15 U.S.C. 3203(a)) is
amended by striking ‘‘and (4)’’ inserting ‘‘(4), (5), and (6)’’.

Subtitle E—Energy Efficiency and
Conservation Block Grants
SEC. 541. DEFINITIONS.

In this subtitle:
(1) ELIGIBLE ENTITY.—The term ‘‘eligible entity’’ means—
(A) a State;
(B) an eligible unit of local government; and
(C) an Indian tribe.
(2) ELIGIBLE UNIT OF LOCAL GOVERNMENT.—The term
‘‘eligible unit of local government’’ means—
(A) an eligible unit of local government-alternative 1;
and
(B) an eligible unit of local government-alternative 2.
(3)(A) ELIGIBLE UNIT OF LOCAL GOVERNMENT-ALTERNATIVE
1.—The term ‘‘eligible unit of local government-alternative 1’’
means—
(i) a city with a population—
(I) of at least 35,000; or
(II) that causes the city to be 1 of the 10 highestpopulated cities of the State in which the city is located;
and
(ii) a county with a population—
(I) of at least 200,000; or
(II) that causes the county to be 1 of the 10 highestpopulated counties of the State in which the county
is located.
(B) ELIGIBLE UNIT OF LOCAL GOVERNMENT-ALTERNATIVE 2.—
The term ‘‘eligible unit of local government-alternative 2’’
means—
(i) a city with a population of at least 50,000; or
(ii) a county with a population of at least 200,000.
(4) INDIAN TRIBE.—The term ‘‘Indian tribe’’ has the meaning
given the term in section 4 of the Indian Self-Determination
and Education Assistance Act (25 U.S.C. 450b).
(5) PROGRAM.—The term ‘‘program’’ means the Energy Efficiency and Conservation Block Grant Program established
under section 542(a).
(6) STATE.—The term ‘‘State’’ means—
(A) a State;

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(B) the District of Columbia;
(C) the Commonwealth of Puerto Rico; and
(D) any other territory or possession of the United
States.
SEC. 542. ENERGY EFFICIENCY AND CONSERVATION BLOCK GRANT
PROGRAM.

(a) ESTABLISHMENT.—The Secretary shall establish a program,
to be known as the ‘‘Energy Efficiency and Conservation Block
Grant Program’’, under which the Secretary shall provide grants
to eligible entities in accordance with this subtitle.
(b) PURPOSE.—The purpose of the program shall be to assist
eligible entities in implementing strategies—
(1) to reduce fossil fuel emissions created as a result of
activities within the jurisdictions of eligible entities in a manner
that—
(A) is environmentally sustainable; and
(B) to the maximum extent practicable, maximizes
benefits for local and regional communities;
(2) to reduce the total energy use of the eligible entities;
and
(3) to improve energy efficiency in—
(A) the transportation sector;
(B) the building sector; and
(C) other appropriate sectors.
SEC. 543. ALLOCATION OF FUNDS.

(a) IN GENERAL.—Of amounts made available to provide grants
under this subtitle for each fiscal year, the Secretary shall allocate—
(1) 68 percent to eligible units of local government in
accordance with subsection (b);
(2) 28 percent to States in accordance with subsection
(c);
(3) 2 percent to Indian tribes in accordance with subsection
(d); and
(4) 2 percent for competitive grants under section 546.
(b) ELIGIBLE UNITS OF LOCAL GOVERNMENT.—Of amounts available for distribution to eligible units of local government under
subsection (a)(1), the Secretary shall provide grants to eligible units
of local government under this section based on a formula established by the Secretary according to—
(1) the populations served by the eligible units of local
government, according to the latest available decennial census;
and
(2) the daytime populations of the eligible units of local
government and other similar factors (such as square footage
of commercial, office, and industrial space), as determined by
the Secretary.
(c) STATES.—Of amounts available for distribution to States
under subsection (a)(2), the Secretary shall provide—
(1) not less than 1.25 percent to each State; and
(2) the remainder among the States, based on a formula
to be established by the Secretary that takes into account—
(A) the population of each State; and
(B) any other criteria that the Secretary determines
to be appropriate.
(d) INDIAN TRIBES.—Of amounts available for distribution to
Indian tribes under subsection (a)(3), the Secretary shall establish

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a formula for allocation of the amounts to Indian tribes, taking
into account any factors that the Secretary determines to be appropriate.
(e) PUBLICATION OF ALLOCATION FORMULAS.—Not later than
90 days before the beginning of each fiscal year for which grants
are provided under this subtitle, the Secretary shall publish in
the Federal Register the formulas for allocation established under
this section.
(f) STATE AND LOCAL ADVISORY COMMITTEE.—The Secretary
shall establish a State and local advisory committee to advise
the Secretary regarding administration, implementation, and
evaluation of the program.
SEC. 544. USE OF FUNDS.

An eligible entity may use a grant received under this subtitle
to carry out activities to achieve the purposes of the program,
including—
(1) development and implementation of an energy efficiency
and conservation strategy under section 545(b);
(2) retaining technical consultant services to assist the
eligible entity in the development of such a strategy,
including—
(A) formulation of energy efficiency, energy conservation, and energy usage goals;
(B) identification of strategies to achieve those goals—
(i) through efforts to increase energy efficiency and
reduce energy consumption; and
(ii) by encouraging behavioral changes among the
population served by the eligible entity;
(C) development of methods to measure progress in
achieving the goals;
(D) development and publication of annual reports to
the population served by the eligible entity describing—
(i) the strategies and goals; and
(ii) the progress made in achieving the strategies
and goals during the preceding calendar year; and
(E) other services to assist in the implementation of
the energy efficiency and conservation strategy;
(3) conducting residential and commercial building energy
audits;
(4) establishment of financial incentive programs for energy
efficiency improvements;
(5) the provision of grants to nonprofit organizations and
governmental agencies for the purpose of performing energy
efficiency retrofits;
(6) development and implementation of energy efficiency
and conservation programs for buildings and facilities within
the jurisdiction of the eligible entity, including—
(A) design and operation of the programs;
(B) identifying the most effective methods for achieving
maximum participation and efficiency rates;
(C) public education;
(D) measurement and verification protocols; and
(E) identification of energy efficient technologies;
(7) development and implementation of programs to conserve energy used in transportation, including—
(A) use of flex time by employers;

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(B) satellite work centers;
(C) development and promotion of zoning guidelines
or requirements that promote energy efficient development;
(D) development of infrastructure, such as bike lanes
and pathways and pedestrian walkways;
(E) synchronization of traffic signals; and
(F) other measures that increase energy efficiency and
decrease energy consumption;
(8) development and implementation of building codes and
inspection services to promote building energy efficiency;
(9) application and implementation of energy distribution
technologies that significantly increase energy efficiency,
including—
(A) distributed resources; and
(B) district heating and cooling systems;
(10) activities to increase participation and efficiency rates
for material conservation programs, including source reduction,
recycling, and recycled content procurement programs that lead
to increases in energy efficiency;
(11) the purchase and implementation of technologies to
reduce, capture, and, to the maximum extent practicable, use
methane and other greenhouse gases generated by landfills
or similar sources;
(12) replacement of traffic signals and street lighting with
energy efficient lighting technologies, including—
(A) light emitting diodes; and
(B) any other technology of equal or greater energy
efficiency;
(13) development, implementation, and installation on or
in any government building of the eligible entity of onsite
renewable energy technology that generates electricity from
renewable resources, including—
(A) solar energy;
(B) wind energy;
(C) fuel cells; and
(D) biomass; and
(14) any other appropriate activity, as determined by the
Secretary, in consultation with—
(A) the Administrator of the Environmental Protection
Agency;
(B) the Secretary of Transportation; and
(C) the Secretary of Housing and Urban Development.
SEC. 545. REQUIREMENTS FOR ELIGIBLE ENTITIES.

(a) CONSTRUCTION REQUIREMENT.—
(1) IN GENERAL.—To be eligible to receive a grant under
the program, each eligible applicant shall submit to the Secretary a written assurance that all laborers and mechanics
employed by any contractor or subcontractor of the eligible
entity during any construction, alteration, or repair activity
funded, in whole or in part, by the grant shall be paid wages
at rates not less than the prevailing wages for similar construction activities in the locality, as determined by the Secretary
of Labor, in accordance with sections 3141 through 3144, 3146,
and 3147 of title 40, United States Code.

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(2) SECRETARY OF LABOR.—With respect to the labor standards referred to in paragraph (1), the Secretary of Labor shall
have the authority and functions described in—
(A) Reorganization Plan Numbered 14 of 1950 (5 U.S.C.
903 note); and
(B) section 3145 of title 40, United States Code.
(b) ELIGIBLE UNITS OF LOCAL GOVERNMENT AND INDIAN
TRIBES.—
(1) PROPOSED STRATEGY.—
(A) IN GENERAL.—Not later than 1 year after the date
on which an eligible unit of local government or Indian
tribe receives a grant under this subtitle, the eligible unit
of local government or Indian tribe shall submit to the
Secretary a proposed energy efficiency and conservation
strategy in accordance with this paragraph.
(B) INCLUSIONS.—The proposed strategy under
subparagraph (A) shall include—
(i) a description of the goals of the eligible unit
of local government or Indian tribe, in accordance with
the purposes of this subtitle, for increased energy efficiency and conservation in the jurisdiction of the
eligible unit of local government or Indian tribe; and
(ii) a plan for the use of the grant to assist the
eligible unit of local government or Indian tribe in
achieving those goals, in accordance with section 544.
(C) REQUIREMENTS FOR ELIGIBLE UNITS OF LOCAL
GOVERNMENT.—In developing the strategy under subparagraph (A), an eligible unit of local government shall—
(i) take into account any plans for the use of funds
by adjacent eligible units of local governments that
receive grants under the program; and
(ii) coordinate and share information with the
State in which the eligible unit of local government
is located regarding activities carried out using the
grant to maximize the energy efficiency and conservation benefits under this subtitle.
(2) APPROVAL BY SECRETARY.—
(A) IN GENERAL.—The Secretary shall approve or disapprove a proposed strategy under paragraph (1) by not
later than 120 days after the date of submission of the
proposed strategy.
(B) DISAPPROVAL.—If the Secretary disapproves a proposed strategy under subparagraph (A)—
(i) the Secretary shall provide to the eligible unit
of local government or Indian tribe the reasons for
the disapproval; and
(ii) the eligible unit of local government or Indian
tribe may revise and resubmit the proposed strategy
as many times as necessary until the Secretary
approves a proposed strategy.
(C) REQUIREMENT.—The Secretary shall not provide
to an eligible unit of local government or Indian tribe
any grant under the program until a proposed strategy
of the eligible unit of local government or Indian tribe
is approved by the Secretary under this paragraph.
(3) LIMITATIONS ON USE OF FUNDS.—Of amounts provided
to an eligible unit of local government or Indian tribe under

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the program, an eligible unit of local government or Indian
tribe may use—
(A) for administrative expenses, excluding the cost of
meeting the reporting requirements of this subtitle, an
amount equal to the greater of—
(i) 10 percent; and
(ii) $75,000;
(B) for the establishment of revolving loan funds, an
amount equal to the greater of—
(i) 20 percent; and
(ii) $250,000; and
(C) for the provision of subgrants to nongovernmental
organizations for the purpose of assisting in the
implementation of the energy efficiency and conservation
strategy of the eligible unit of local government or Indian
tribe, an amount equal to the greater of—
(i) 20 percent; and
(ii) $250,000.
(4) ANNUAL REPORT.—Not later than 2 years after the
date on which funds are initially provided to an eligible unit
of local government or Indian tribe under the program, and
annually thereafter, the eligible unit of local government or
Indian tribe shall submit to the Secretary a report describing—
(A) the status of development and implementation of
the energy efficiency and conservation strategy of the
eligible unit of local government or Indian tribe; and
(B) as practicable, an assessment of energy efficiency
gains within the jurisdiction of the eligible unit of local
government or Indian tribe.
(c) STATES.—
(1) DISTRIBUTION OF FUNDS.—
(A) IN GENERAL.—A State that receives a grant under
the program shall use not less than 60 percent of the
amount received to provide subgrants to units of local
government in the State that are not eligible units of
local government.
(B) DEADLINE.—The State shall provide the subgrants
required under subparagraph (A) by not later than 180
days after the date on which the Secretary approves a
proposed energy efficiency and conservation strategy of
the State under paragraph (3).
(2) REVISION OF CONSERVATION PLAN; PROPOSED
STRATEGY.—Not later than 120 days after the date of enactment
of this Act, each State shall—
(A) modify the State energy conservation plan of the
State under section 362 of the Energy Policy and Conservation Act (42 U.S.C. 6322) to establish additional goals for
increased energy efficiency and conservation in the State;
and
(B) submit to the Secretary a proposed energy efficiency
and conservation strategy that—
(i) establishes a process for providing subgrants
as required under paragraph (1); and
(ii) includes a plan of the State for the use of
funds received under the program to assist the State
in achieving the goals established under subparagraph
(A), in accordance with sections 542(b) and 544.

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(3) APPROVAL BY SECRETARY.—
(A) IN GENERAL.—The Secretary shall approve or disapprove a proposed strategy under paragraph (2)(B) by
not later than 120 days after the date of submission of
the proposed strategy.
(B) DISAPPROVAL.—If the Secretary disapproves a proposed strategy under subparagraph (A)—
(i) the Secretary shall provide to the State the
reasons for the disapproval; and
(ii) the State may revise and resubmit the proposed
strategy as many times as necessary until the Secretary approves a proposed strategy.
(C) REQUIREMENT.—The Secretary shall not provide
to a State any grant under the program until a proposed
strategy of the State is approved by the Secretary under
this paragraph.
(4) LIMITATIONS ON USE OF FUNDS.—A State may use not
more than 10 percent of amounts provided under the program
for administrative expenses.
(5) ANNUAL REPORTS.—Each State that receives a grant
under the program shall submit to the Secretary an annual
report that describes—
(A) the status of development and implementation of
the energy efficiency and conservation strategy of the State
during the preceding calendar year;
(B) the status of the subgrant program of the State
under paragraph (1);
(C) the energy efficiency gains achieved through the
energy efficiency and conservation strategy of the State
during the preceding calendar year; and
(D) specific energy efficiency and conservation goals
of the State for subsequent calendar years.
SEC. 546. COMPETITIVE GRANTS.

(a) IN GENERAL.—Of the total amount made available for each
fiscal year to carry out this subtitle, the Secretary shall use not
less than 2 percent to provide grants under this section, on a
competitive basis, to—
(1) units of local government (including Indian tribes) that
are not eligible entities; and
(2) consortia of units of local government described in paragraph (1).
(b) APPLICATIONS.—To be eligible to receive a grant under this
section, a unit of local government or consortia shall submit to
the Secretary an application at such time, in such manner, and
containing such information as the Secretary may require, including
a plan of the unit of local government to carry out an activity
described in section 544.
(c) PRIORITY.—In providing grants under this section, the Secretary shall give priority to units of local government—
(1) located in States with populations of less than 2,000,000;
or
(2) that plan to carry out projects that would result in
significant energy efficiency improvements or reductions in
fossil fuel use.

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SEC. 547. REVIEW AND EVALUATION.

(a) IN GENERAL.—The Secretary may review and evaluate the
performance of any eligible entity that receives a grant under
the program, including by conducting an audit, as the Secretary
determines to be appropriate.
(b) WITHHOLDING OF FUNDS.—The Secretary may withhold from
an eligible entity any portion of a grant to be provided to the
eligible entity under the program if the Secretary determines that
the eligible entity has failed to achieve compliance with—
(1) any applicable guideline or regulation of the Secretary
relating to the program, including the misuse or misappropriation of funds provided under the program; or
(2) the energy efficiency and conservation strategy of the
eligible entity.
SEC. 548. FUNDING.

(a) AUTHORIZATION OF APPROPRIATIONS.—
(1) GRANTS.—There is authorized to be appropriated to
the Secretary for the provision of grants under the program
$2,000,000,000 for each of fiscal years 2008 through 2012;
provided that 49 percent of the appropriated funds shall be
distributed using the definition of eligible unit of local government-alternative 1 in section 541(3)(A) and 49 percent of the
appropriated funds shall be distributed using the definition
of eligible unit of local government-alternative 2 in section
541(3)(B).
(2) ADMINISTRATIVE COSTS.—There are authorized to be
appropriated to the Secretary for administrative expenses of
the program—
(A) $20,000,000 for each of fiscal years 2008 and 2009;
(B) $25,000,000 for each of fiscal years 2010 and 2011;
and
(C) $30,000,000 for fiscal year 2012.
(b) MAINTENANCE OF FUNDING.—The funding provided under
this section shall supplement (and not supplant) other Federal
funding provided under—
(1) a State energy conservation plan established under
part D of title III of the Energy Policy and Conservation Act
(42 U.S.C. 6321 et seq.); or
(2) the Weatherization Assistance Program for Low-Income
Persons established under part A of title IV of the Energy
Conservation and Production Act (42 U.S.C. 6861 et seq.).

TITLE VI—ACCELERATED RESEARCH
AND DEVELOPMENT
Subtitle A—Solar Energy
SEC. 601. SHORT TITLE.

This subtitle may be cited as the ‘‘Solar Energy Research and
Advancement Act of 2007’’.
SEC. 602. THERMAL ENERGY STORAGE RESEARCH AND DEVELOPMENT
PROGRAM.

(a) ESTABLISHMENT.—The Secretary shall establish a program
of research and development to provide lower cost and more viable