[Congressional Record Volume 162, Number 17 (Thursday, January 28, 2016)]
[Senate]
[Pages S391-S392]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 3130. Mr. WARNER (for himself and Mr. Manchin) submitted an 
amendment intended to be proposed by him to the bill S. 2012, to 
provide for the modernization of the energy policy of the United 
States, and for other purposes; which was ordered to lie on the table; 
as follows:

       At the appropriate place, insert the following:

     SEC. __. ENERGY PRODUCTIVITY INNOVATION CHALLENGE.

       (a) Purpose.--The purpose of this section is to assist 
     energy policy innovation in the States to promote the goal of 
     doubling electric and thermal energy productivity by January 
     1, 2030.
       (b) Definitions.--In this section:
       (1) Energy productivity.--The term ``energy productivity'' 
     means, in the case of a State or Indian tribe, the gross 
     State or tribal product per British thermal unit of energy 
     consumed in the State or tribal land of the Indian tribe, 
     respectively.
       (2) 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).
       (3) Secretary.--The term ``Secretary'' means the Secretary 
     of Energy.
       (4) State.--The term ``State'' has the meaning given the 
     term in section 3 of the Energy Policy and Conservation Act 
     (42 U.S.C. 6202).
       (c) Phase 1: Initial Allocation of Grants to States.--
       (1) In general.--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 subsection.
       (2) Grants.--
       (A) In general.--Subject to subsection (f), the Secretary 
     shall use funds made available under subsection (g)(2)(A) to 
     provide an initial allocation of grants to not more than 25 
     States.
       (B) Amount.--The amount of a grant provided to a State 
     under this subsection shall be not less than $500,000 nor 
     more than $1,750,000.
       (3) Submission of plans.--To receive a grant under this 
     subsection, not later than 90 days after the date of issuance 
     of the invitation under paragraph (1), a State (in 
     consultation with energy utilities, regulatory bodies, and 
     others) 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).
       (4) Decision by secretary.--
       (A) Basis.--The Secretary shall base the decision of the 
     Secretary on an application submitted under this subsection 
     on--
       (i) plans for improvement in electric and thermal energy 
     productivity consistent with this section; and
       (ii) other factors determined appropriate by the Secretary, 
     including geographic diversity.
       (B) Ranking.--The Secretary shall--
       (i) rank revised plans submitted under this subsection in 
     order of the greatest to least likely contribution to 
     improving energy productivity in the State; and
       (ii) provide grants under this subsection in accordance 
     with the ranking and the scale and scope of a plan.
       (5) Plan requirements.--A plan submitted under paragraph 
     (3) shall provide--
       (A) a description of the manner in which--
       (i) energy savings will be monitored and verified and 
     energy productivity improvements will be calculated using 
     inflation-adjusted dollars;
       (ii) a statewide baseline of energy use and potential 
     resources for calendar year 2010 will be established to 
     measure improvements;
       (iii) the plan will promote achievement of energy savings 
     and demand reduction goals;
       (iv) public and private sector investments in energy 
     efficiency will be leveraged with available Federal funding; 
     and
       (v) the plan will not cause cost-shifting among utility 
     customer classes or negatively impact low-income populations; 
     and
       (B) an assurance that--
       (i) the State energy office required to submit the plan, 
     the energy utilities in the State participating in the plan, 
     and the State public service commission are cooperating and 
     coordinating programs and activities under this section;
       (ii) the State is cooperating with local units of 
     government, Indian tribes, and energy utilities to expand 
     programs as appropriate; and
       (iii) grants provided under this section 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.
       (6) Uses.--A State may use grants provided under this 
     subsection to promote--
       (A) the expansion of policies and programs that will 
     advance industrial energy efficiency, waste heat recovery, 
     combined heat and power, and waste heat-to-power utilization;
       (B) the expansion of policies and programs that will 
     advance energy efficiency construction and retrofits for 
     public and private commercial buildings (including schools, 
     hospitals, and residential buildings, including multifamily 
     buildings) such as through expanded energy service 
     performance contracts, equivalent utility energy service 
     contracts, zero net-energy buildings, and improved building 
     energy efficiency codes;
       (C) the expansion of residential policies and programs 
     designed to implement best practice policies and tools for 
     residential retrofit programs that--
       (i) reduce administrative and delivery costs for energy 
     efficiency projects;
       (ii) encourage streamlining and automation to support 
     contractor engagement; and
       (iii) implement systems that encourage private investment 
     and market innovation;
       (D) 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
       (E) 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 section.
       (d) Phase 2: Subsequent Allocation of Grants to States.--
       (1) Reports.--Not later than 18 months after the receipt of 
     grants under subsection (c), each State (in consultation with 
     other parties described in paragraph (2)(C)(vi)) that 
     received grants under subsection (c) may submit to the 
     Secretary a report that describes--
       (A) the performance of the programs and activities carried 
     out with the grants; and
       (B) in consultation with other parties described in 
     paragraph (2)(C)(vi), the manner in which additional funds 
     would be used to carry out programs and activities to promote 
     the purposes of this section.
       (2) Grants.--
       (A) In general.--Not later than 180 days after the date of 
     the receipt of the reports required under paragraph (1), 
     subject to subsection (f), the Secretary shall use amounts 
     made available under subsection (g)(2)(B) to provide grants 
     to not more than 6 States to carry out the programs and 
     activities described in paragraph (1)(B).
       (B) Amount.--The amount of a grant provided to a State 
     under this subsection shall be not more than $15,000,000.
       (C) Basis.--The Secretary shall base the decision of the 
     Secretary to provide grants under this subsection on--
       (i) the performance of the State in the programs and 
     activities carried out with grants provided under subsection 
     (c);
       (ii) the potential of the programs and activities described 
     in paragraph (1)(B) to achieve the purposes of this section;
       (iii) the desirability of maintaining a total project 
     portfolio that is geographically and functionally diverse;
       (iv) the amount of non-Federal funds that are leveraged as 
     a result of the grants to ensure that Federal dollars are 
     leveraged effectively;
       (v) plans for continuation of the improvements after the 
     receipt of grants under this section; and
       (vi) demonstrated effort by the State to involve diverse 
     groups, including--

       (I) investor-owned, cooperative, and public power 
     utilities;
       (II) local governments; and

[[Page S392]]

       (III) nonprofit organizations.

       (e) Allocation of Grants to Indian Tribes.--
       (1) In general.--Not later than 30 days after the date of 
     enactment of this Act, the Secretary shall invite Indian 
     tribes to submit plans to participate in an electric and 
     thermal energy productivity challenge in accordance with this 
     subsection.
       (2) Submission of plans.--To receive a grant under this 
     subsection, not later than 90 days after the date of issuance 
     of the invitation under paragraph (1), an Indian tribe shall 
     submit to the Secretary a plan to increase electric and 
     thermal energy productivity by the Indian tribe.
       (3) Decision by secretary.--
       (A) In general.--Not later than 90 days after the 
     submission of plans under paragraph (2), the Secretary shall 
     make a final decision on the allocation of grants under this 
     subsection.
       (B) Basis.--The Secretary shall base the decision of the 
     Secretary under subparagraph (A) on--
       (i) plans for improvement in electric and thermal energy 
     productivity consistent with this section;
       (ii) plans for continuation of the improvements after the 
     receipt of grants under this section; and
       (iii) other factors determined appropriate by the 
     Secretary, including--

       (I) geographic diversity; and
       (II) size differences among Indian tribes.

       (C) Limitation.--An individual Indian tribe shall not 
     receive more than 20 percent of the total amount available to 
     carry out this subsection.
       (f) Administration.--
       (1) Independent evaluation.--To evaluate program 
     performance and effectiveness under this section, the 
     Secretary shall consult with the National Research Council 
     regarding requirements for data and evaluation for recipients 
     of grants under this section.
       (2) Coordination with state energy conservation programs.--
       (A) In general.--Grants to States under this section shall 
     be provided through additional funding to carry out State 
     energy conservation programs under part D of title III of the 
     Energy Policy and Conservation Act (42 U.S.C. 6321 et seq.).
       (B) Relationship to state energy conservation programs.--
       (i) In general.--A grant provided to a State under this 
     section shall be used to supplement (and not supplant) funds 
     provided to the State under part D of title III of the Energy 
     Policy and Conservation Act (42 U.S.C. 6321 et seq.).
       (ii) Minimum funding.--A grant shall not be provided to a 
     State for a fiscal year under this section if the amount of 
     funding provided to all State grantees under the base formula 
     for the fiscal year under part D of title III of the Energy 
     Policy and Conservation Act (42 U.S.C. 6321 et seq.) is less 
     than $50,000,000.
       (3) Voluntary participation.--The participation of a State 
     in a challenge established under this section shall be 
     voluntary.
       (g) Authorization of Appropriations.--
       (1) In general.--There is authorized to be appropriated to 
     carry out this section $100,000,000 for the period of fiscal 
     years 2017 and 2018.
       (2) Allocation.--Of the total amount of funds made 
     available under paragraph (1)--
       (A) 30 percent shall be used to provide an initial 
     allocation of grants to States under subsection (c);
       (B) 61 percent shall be used to provide a subsequent 
     allocation of grants to States under subsection (d);
       (C) 4 percent shall be used to make grants to Indian tribes 
     under subsection (e); and
       (D) 5 percent shall be available to the Secretary for the 
     cost of administration and technical support to carry out 
     this section.
       (h) Offset.--Section 422(f) of the Energy Independence and 
     Security Act of 2007 (42 U.S.C. 17082(f)) is amended--
       (1) in paragraph (3), by striking ``and'' after the 
     semicolon at the end; and
       (2) by striking paragraph (4) and inserting the following:
       ``(4) $200,000,000 for each of fiscal years 2013 through 
     2016;
       ``(5) $150,000,000 for each of fiscal years 2017 and 2018; 
     and
       ``(6) $200,000,000 for fiscal year 2019.''.
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