Sec. 201 Private commercial building efficiency financing
In general— The Secretary shall establish a program to be known as the Commercial Building Energy Efficiency Financing Initiative under which the Secretary shall provide grants to States (as defined in section 3 of the Energy Policy and Conservation Act (42 U.S.C. 6202)) to establish or expand programs to promote the financing of energy efficiency retrofit projects for private sector and commercial buildings.
Applications— A State may apply to the Secretary for a grant under subsection (a) to establish or expand a program described in subsection (a), including—
a commercial Property Assessed Clean Energy (PACE) financing program;
a credit enhancement structure that is designed to mitigate the effects of default, including a loan guarantee program, loan loss reserve program, collateral or subordinated capital program, or other program;
a revolving loan fund;
a program to promote the use of energy savings performance contracts or utility energy service contracts, or both;
a utility on-bill financing or repayment program;
utility energy efficiency programs for all segments of the utility industry;
an interest buy-down program;
a secondary market financing program;
a leasing structure that recognizes energy costs and addresses split-incentives;
an educational program involving commercial lenders, energy service companies, commercial building owners, and other stakeholders established—
to provide information to the community regarding program and project options and outcomes; and
to build consensus on approaches to greater energy efficiency investments; and
any other activity that will significantly increase the total investment in, and energy savings from, building retrofit projects and programs.
Administration—
In general— A State receiving a grant under subsection (a) shall give a higher priority to programs and projects that—
leverage private and non-Federal sources of funding; and
aim explicitly to expand the use of energy efficiency project financing using private sources of funding, including philanthropic and other institutional investment.
Other actions— A State receiving a grant under this section is encouraged—
to consider establishing such other appropriate policies, incentives, or actions that will advance the purposes of this section; and
to coordinate the activities described in subsections (a) and (d).
Large commercial building efficiency financing initiatives—
In general— As part of this section, the Secretary shall conduct large commercial building efficiency financing initiatives to encourage States to promote the financing of energy efficiency retrofit projects for larger private sector commercial, multifamily, and mixed use buildings.
Applications— A State or a group of States may apply to the Secretary for a grant under this subsection to establish or expand programs to promote the purposes described in paragraph (1) through—
the facilitation of energy performance contracts in commercial, multifamily, and mixed use buildings by providing guarantees that cover owner default risk, but do not cover technology and other risks that are borne by the contractor;
actions by States to work together and with real estate owners, financiers, and other stakeholders to ensure multistate consistency, including common underwriting standards;
minimum loan-to-value ratios;
minimum debt-to-income coverage ratios;
a green leasing program;
a commercial Property Assessed Clean Energy (PACE) financing program; and
any other activity that will significantly increase the total investment in, and energy savings from, building retrofit projects and programs.
Leveraging private sector financing— A State receiving a grant under this subsection shall focus on leveraging private sources of funds and working with real estate lenders, financiers, and building owners to assist in expanding the reach of the program established under this subsection.
Multistate facilitation— The Secretary shall consult with States and relevant stakeholders with applicable expertise to establish a process to identify eligible lenders, financiers, and building owners with real estate asset portfolios across multiple States that may be eligible for the efficiency financing initiatives conducted under this subsection.
Evaluation of programs— The Secretary shall evaluate applications from States under this section on the basis of—
the likelihood that a proposed program or activity will—
be established or expanded;
increase the total investment and energy savings of the retrofit projects to be supported; and
increase the total investment and energy savings in a State or region in which investments and energy savings have the greatest potential for growth as compared to other States or regions;
in the case of large commercial building efficiency financing initiatives conducted under subsection (d), evidence of multistate cooperation and coordination with real estate lenders, financiers, and owners; and
other factors that will advance the purposes of this section, as determined by the Secretary.
Reports—
In general— Not later than 2 years after the date of the receipt of a grant under this section, a State shall submit to the Secretary, the Committee on Energy and Natural Resources of the Senate, and the Committee on Energy and Commerce of the House of Representatives a report on the performance of programs and activities carried out with the grant.
Data—
In general— A State receiving a grant under this section and the Secretary shall cooperate to collect and share data resulting from programs and activities carried out under this section.
Department databases— The Secretary shall incorporate data described in subparagraph (A) into appropriate databases of the Department of Energy, with provisions for the protection of confidential business data.
Funding—
Authorization of appropriations— There is authorized to be appropriated to carry out this section $250,000,000, to remain available until expended.
Allocation— Of the amount made available for a fiscal year under paragraph (1)—
50 percent of the amount shall be allocated on a formula-basis that is consistent with the formula used to allocate funds for State energy conservation programs established under part D of title III of the Energy Policy and Conservation Act (42 U.S.C. 6321 et seq.), as determined by the Secretary; and
50 percent of the amount shall be allocated to large commercial building financing initiatives conducted under subsection (d), with no individual State receiving more than 10 percent of the amount made available for a fiscal year under this subparagraph.
State energy offices— Funds provided to a State under this section shall be provided to the office within the State that is responsible for developing the State energy plan for the State under part D of title III of the Energy Policy and Conservation Act (42 U.S.C. 6321 et seq.).
Loans— No funds made available under this section may be used to provide direct Federal loans for purposes of any of the programs or activities described in subsection (b).