42 U.S.C. § 18792 — Energy efficiency revolving loan fund

Page 9233 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 18792 including the identification of community- level economic and environmental impacts re- quired under section 18773(b)(1)(C) of this title, with the efforts of the Environmental Protec- tion Agency and other relevant Federal agen- cies, as determined by the Administrator, to identify similar impacts, opportunities, and patterns. (Pub. L. 117–58, div. D, title IV, § 40419, Nov. 15, 2021, 135 Stat. 1047.) Statutory Notes and Related Subsidiaries WAGE RATE REQUIREMENTS For provisions relating to rates of wages to be paid to laborers and mechanics on projects for construction, alteration, or repair work funded under div. D or an amendment by div. D of Pub. L. 117–58, including au- thority of Secretary of Labor, see section 18851 of this title. SUBCHAPTER V—ENERGY EFFICIENCY AND BUILDING INFRASTRUCTURE PART A—RESIDENTIAL AND COMMERCIAL ENERGY EFFICIENCY § 18791. Definitions In this part: (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 high- est annual per-capita combined residential and commercial sector energy consumption, as most recently reported by the Energy In- formation Administration; or (ii) is among the 15 States with the highest annual per-capita energy-related carbon di- oxide emissions by State, as most recently reported by the Energy Information Admin- istration. (2) Program The term ‘‘program’’ means the program es- tablished under section 18792(a) of this title. (3) State The term ‘‘State’’ means a State (as defined in section 6202 of this title), acting through a State energy office. (4) 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.). (Pub. L. 117–58, div. D, title V, § 40501, Nov. 15, 2021, 135 Stat. 1050.) Editorial Notes REFERENCES IN TEXT The Energy Policy and Conservation Act, referred to in par. (4), is Pub. L. 94–163, Dec. 22, 1975, 89 Stat. 871. Part D of title III of the Act is classified generally to part B (§ 6321 et seq.) of subchapter III of chapter 77 of this title. For complete classification of this Act to the Code, see Short Title note set out under section 6201 of this title and Tables. Statutory Notes and Related Subsidiaries WAGE RATE REQUIREMENTS For provisions relating to rates of wages to be paid to laborers and mechanics on projects for construction, alteration, or repair work funded under div. D or an amendment by div. D of Pub. L. 117–58, including au- thority of Secretary of Labor, see section 18851 of this title. § 18792. Energy efficiency revolving loan fund capitalization grant program (a) In general Not later than 1 year after November 15, 2021, under the State Energy Program, the Secretary shall establish a program under which the Sec- retary 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 sub- section (j), 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 al- location formula established under section 420.11 of title 10, Code of Federal Regulations (or successor regulations). (B) Remaining funding After applying the allocation formula de- scribed 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 sub- section (j), 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 de- scribed in subparagraph (A), the Secretary shall redistribute any unclaimed funds to the remaining priority States seeking sup- plemental capitalization grants under that subparagraph. (C) Grant amount (i) Maximum amount The amount of a supplemental capital- ization grant provided to a State under this paragraph shall not exceed $15,000,000. (ii) Supplement not supplant A supplemental capitalization grant re- ceived by a State under this paragraph shall supplement, not supplant, a capital- ization 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 Page 9234 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 18792 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 re- volving 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 sys- tem upgrades and retrofits will have on com- munities in the State; and (4) in the case of a priority State seeking a supplemental capitalization grant under sub- section (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 para- graph (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 re- ceived. (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 (iv) 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 enve- lopes; (III) estimate the energy and cost sav- ings potential of the opportunities iden- tified in subclause (II) using software ap- proved by the Secretary; (IV) identify— (aa) the period and level of peak en- ergy demand for each building within the facility of the eligible recipient; and (bb) the sources of energy consump- tion that are contributing the most to that period of peak energy demand; (V) recommend controls and manage- ment systems to reduce or redistribute peak energy consumption; and (VI) estimate the total energy and cost savings potential for the facility of the eligible recipient if all recommended up- grades and retrofits are implemented, using software approved by the Sec- retary. (iii) Additional audit inclusions A commercial energy audit conducted using a loan provided under clause (i) may recommend strategies to increase energy efficiency of the facility of the eligible re- cipient through use of electric systems or other high-efficiency systems utilizing fuels, including natural gas and hydrogen. (iv) Eligible recipients An eligible recipient under clause (i) is a business that— (I) conducts the majority of its busi- ness 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 func- tions, such as a building for commer- cial 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 (iv) 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 estab- lished under section 6294a of this title; (II) recommend lifecycle cost-effective opportunities to reduce energy consump- tion within the residential building of the eligible recipient, including through energy efficient— (aa) lighting; (bb) heating, ventilation, and air conditioning systems; Page 9235 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 18792 (cc) windows; (dd) appliances; and (ee) insulation and building enve- lopes; (III) recommend controls and manage- ment systems to reduce or redistribute peak energy consumption; (IV) compare the energy consumption of the residential building of the eligible recipient to comparable residential buildings in the same geographic area; and (V) provide a Home Energy Score, or equivalent score (as determined by the Secretary), for the residential building of the eligible recipient by using the Home Energy Score Tool of the Depart- ment or an equivalent scoring tool. (iii) Additional audit inclusions A residential energy audit conducted using a loan provided under clause (i) may recommend strategies to increase energy efficiency of the facility of the eligible re- cipient through use of electric systems or other high-efficiency systems utilizing fuels, including natural gas and hydrogen. (iv) 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 up- grades 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 retro- fits 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 6294a of this title; (III) improve, with respect to the building or facility of the eligible recipi- ent— (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 re- cipient; or (BB) improve the control and manage- ment 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 subpara- graph (A)(iv) or (B)(iv) 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 en- ergy 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 subpara- graph (A) or (B), as applicable; or (BB) the Secretary determines is otherwise satisfactory. (iii) Loan term (I) In general A loan provided under this subpara- graph shall be required to be fully amor- tized by the earlier of— (aa) subject to subclause (II), the year in which the upgrades or retrofits carried out using the loan exceed their expected useful life; and (bb) 15 years after those upgrades or retrofits are installed. (II) Calculation For purposes of subclause (I)(aa), in the case of a loan being used to fund multiple upgrades or retrofits, the long- est-lived upgrade or retrofit shall be used to calculate the year in which the upgrades or retrofits carried out using the loan exceed their expected useful life. (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 sub- paragraph, the State may refer the eligible recipient to a qualified contractor, as deter- mined by the State, to estimate— (i) the upfront capital cost of each rec- ommended upgrade; and (ii) the total upfront capital cost of im- plementing all recommended upgrades. (E) Loan recipients Each State providing loans under this paragraph shall, to the maximum extent practicable, provide loans to eligible recipi- ents that do not have access to private cap- ital. (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 en- tities described in subparagraph (B) to carry out the activities described in subparagraphs (A), (B), and (C) of paragraph (2). Page 9236 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 18793 (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)(iv); and (II) has fewer than 500 employees; or (ii) a low-income individual (as defined in section 3102 of title 29) that owns a resi- dential building. (4) Final assessment A State that provides a capitalization grant under paragraph (2)(C) to an eligible recipient described in clause (ii) of that paragraph may, not later than 1 year after the date on which the upgrades or retrofits funded by the grant under that paragraph are completed, provide to the eligible recipient a loan or, in accord- ance with paragraph (3), a grant to conduct a final energy audit that assesses the total en- ergy savings from the upgrades or retrofits. (5) 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 prac- ticable, use the grant to leverage private cap- ital. (h) Outreach The Secretary shall engage in outreach to in- form States of the availability of capitalization grants under the program. (i) Report Each State that receives a capitalization grant under the program shall, not later than 2 years 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 sub- section (e)(2)(A); (ii) residential energy audits under sub- section (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 con- ducted in the State using loans provided by the State under subsection (e). (j) Authorization of appropriations There is authorized to be appropriated to the Secretary to carry out this section $250,000,000 for fiscal year 2022, to remain available until ex- pended. (Pub. L. 117–58, div. D, title V, § 40502, Nov. 15, 2021, 135 Stat. 1051.) Statutory Notes and Related Subsidiaries WAGE RATE REQUIREMENTS For provisions relating to rates of wages to be paid to laborers and mechanics on projects for construction, alteration, or repair work funded under div. D or an amendment by div. D of Pub. L. 117–58, including au- thority of Secretary of Labor, see section 18851 of this title. § 18793. 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 American Society of Heating, Re- frigerating and Air-Conditioning Engineers 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 Net- work Home Energy Rater certification. (E) Any other third-party certification recognized by the Department. (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 deter- mined necessary by the Secretary. (b) Establishment Under the State Energy Program, the Sec- retary shall establish a competitive grant pro- gram 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 re- quire, 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 para- graph (1) shall include— (A)(i) a proposed training curriculum for energy audit trainees; and (ii) an identification of the covered certifi- cation that those trainees will receive on completion of that training curriculum;