---
kind: "section"
citation: "42 U.S.C. § 6349"
title: "42"
title_heading: "The Public Health and Welfare"
number: "6349"
heading: "Process-oriented industrial energy efficiency"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/42/6349"
units:
  - "Chapter 77 — Energy Conservation"
  - "Subchapter III — Improving Energy Efficiency"
  - "Part C — Industrial Energy Efficiency"
---

# §6349. Process-oriented industrial energy efficiency

- (a) **Definitions—** For the purposes of this section—
  - (1) the term “covered industry” means the food and food products industry, lumber and wood products industry, petroleum and coal products industry, and all other manufacturing industries specified in Standard Industrial Classification Codes 20 through 39 (or successor classification codes);
  - (2) the term “process-oriented industrial assessment” means—
    - (A) the identification of opportunities in the production process (from the introduction of materials to final packaging of the product for shipping) for—
      - (i) improving [energy efficiency](/usc/42/6291.md?p=5);
      - (ii) reducing environmental impact; and
      - (iii) designing technological improvements to increase competitiveness and achieve cost-effective product quality enhancement;
    - (B) the identification of opportunities for improving the [energy efficiency](/usc/42/6291.md?p=5) of lighting, heating, ventilation, air conditioning, and the associated [building](/usc/42/6321.md?p=c-2) envelope; and
    - (C) the identification of cost-effective opportunities for using renewable [energy](/usc/42/6291.md?p=3) technology in the production process and in the systems described in [subparagraph (B)](#a-2-B); and
  - (3) the term “utility” means any [person](/usc/42/6202.md?p=2), [State agency](/usc/42/300s–3.md?p=12) (including any municipality), or Federal [agency](/usc/42/8262.md?p=1), which sells electric or gas [energy](/usc/42/6291.md?p=3) to retail [customers](/usc/42/7275.md?p=5).
- (b) **Grant program—**
  - (1) **Use of funds—** The [Secretary](/usc/42/6202.md?p=1) shall, to the extent funds are made available for such purpose, make grants to [States](/usc/42/6202.md?p=4) which, consistent with [State](/usc/42/6202.md?p=4) law, shall be used for the following purposes:
    - (A) To promote, through appropriate institutions such as universities, [nonprofit](/usc/42/300s–3.md?p=3) organizations, [State](/usc/42/6202.md?p=4) and local government entities, technical centers, utilities, and trade organizations, the use of [energy](/usc/42/6291.md?p=3)-efficient technologies in covered industries.
    - (B) To establish programs to train individuals (on an industry-by-industry basis) in conducting process-oriented industrial assessments and to encourage the use of such trained assessors.
    - (C) To assist utilities in developing, testing, and evaluating [energy efficiency](/usc/42/6291.md?p=5) programs and technologies for industrial [customers](/usc/42/7275.md?p=5) in covered industries.
  - (2) **Consultation—** [States](/usc/42/6202.md?p=4) receiving grants under this subsection shall consult with utilities and representatives of affected industries, as appropriate, in determining the most effective use of such funds consistent with the requirements of [paragraph (1)](#b-1).
  - (3) **Eligibility criteria—** Not later than 1 year after October 24, 1992, the [Secretary](/usc/42/6202.md?p=1) shall establish eligibility criteria for grants made pursuant to this subsection. Such criteria shall require a [State](/usc/42/6202.md?p=4) applying for a grant to demonstrate that such [State](/usc/42/6202.md?p=4)—
    - (A) pursuant to [section 2621(a) of title 16](/usc/16/2621.md?p=a), has considered and made a determination regarding the implementation of the standards specified in paragraphs (7) and (8) of [section 2621(d) of title 16](/usc/16/2621.md?p=d) (with respect to integrated resources planning and investments in conservation and demand management); and
    - (B) by legislation or regulation—
      - (i) allows utilities to recover the costs prudently incurred in providing process-oriented industrial assessments; and
      - (ii) encourages utilities to provide to covered industries—
        - (I) process-oriented industrial assessments; and
        - (II) financial incentives for implementing [energy efficiency](/usc/42/6291.md?p=5) improvements.
  - (4) **Allocation of funds—** Grants made pursuant to this subsection shall be allocated each fiscal year among [States](/usc/42/6202.md?p=4) meeting the criteria specified in [paragraph (3)](#b-3) who have submitted applications 60 days before the first day of such fiscal year. Such [allocation](/usc/42/2021b.md?p=2) shall be made in accordance with a formula to be prescribed by the [Secretary](/usc/42/6202.md?p=1) based on each [State](/usc/42/6202.md?p=4)’s share of value added in industry (as determined by the Census of [Manufacturers](/usc/42/6291.md?p=12)) as a percentage of the value added by all such [States](/usc/42/6202.md?p=4).
  - (5) **Renewal of grants—** A grant under this subsection may continue to be renewed after 2 consecutive fiscal years during which a [State](/usc/42/6202.md?p=4) receives a grant under this subsection, subject to the availability of funds, if—
    - (A) the [Secretary](/usc/42/6202.md?p=1) determines that the funds made available to the [State](/usc/42/6202.md?p=4) during the previous 2 years were used in a manner required under [paragraph (1)](#b-1); and
    - (B) such [State](/usc/42/6202.md?p=4) demonstrates, in a manner prescribed by the [Secretary](/usc/42/6202.md?p=1), utility participation in programs established pursuant to this subsection.
  - (6) **Coordination with other Federal programs—** In carrying out the functions described in [paragraph (1)](#b-1), [States](/usc/42/6202.md?p=4) shall, to the extent practicable, coordinate such functions with activities and programs conducted by the [Energy](/usc/42/6291.md?p=3) Analysis and Diagnostic Centers of the Department of [Energy](/usc/42/6291.md?p=3) and the Manufacturing Technology Centers of the National Institute of Standards and Technology.
- (c) **Other Federal assistance—**
  - (1) **Assessment criteria—** Not later than 2 years after October 24, 1992, the [Secretary](/usc/42/6202.md?p=1) shall, by contract with [nonprofit](/usc/42/300s–3.md?p=3) organizations with expertise in process-oriented industrial [energy efficiency](/usc/42/6291.md?p=5) technologies, establish and, as appropriate, update criteria for conducting process-oriented industrial assessments on an industry-by-industry basis. Such criteria shall be made available to [State](/usc/42/6202.md?p=4) and local government, public utility [commissions](/usc/42/6291.md?p=18), utilities, representatives of affected process-oriented industries, and other interested parties.
  - (2) **Directory—** The [Secretary](/usc/42/6202.md?p=1) shall establish a nationwide directory of organizations offering industrial [energy efficiency](/usc/42/6291.md?p=5) assessments, technologies, and services consistent with the purposes of this section. Such directory shall be made available to [State](/usc/42/6202.md?p=4) governments, public utility [commissions](/usc/42/6291.md?p=18), utilities, industry representatives, and other interested parties.
  - (3) **Award program—** The [Secretary](/usc/42/6202.md?p=1) shall establish an annual award program to recognize utilities operating outstanding or innovative industrial [energy efficiency](/usc/42/6291.md?p=5) technology assistance programs.
  - (4) **Meetings—** In order to further the purposes of this section, the [Secretary](/usc/42/6202.md?p=1) shall convene annual meetings of parties interested in process-oriented industrial assessments, including representatives of [State](/usc/42/6202.md?p=4) government, public utility [commissions](/usc/42/6291.md?p=18), utilities, and affected process-oriented industries.
- (d) **Authorization of appropriations—** There are authorized to be appropriated such sums as may be necessary to carry out the purposes of this section.

## Source credit

(Pub. L. 102–486, title I, § 132, Oct. 24, 1992, 106 Stat. 2837; Pub. L. 104–66, title I, § 1052(a)(1), Dec. 21, 1995, 109 Stat. 717; Pub. L. 105–362, title IV, § 401(d), Nov. 10, 1998, 112 Stat. 3282.)

## Notes

### Editorial Notes

### Codification

Section was enacted as part of the Energy Policy Act of 1992, and not as part of the Energy Policy and Conservation Act which comprises this chapter.

### Amendments

1998—Subsecs. (d), (e). Pub. L. 105–362 redesignated subsec. (e) as (d) and struck out heading and text of former subsec. (d) which related to reports to Congress.

1995—Subsec. (d). Pub. L. 104–66 substituted “Not later than October 24, 1995, and biennially thereafter” for “Not later than 2 years after October 24, 1992, and annually thereafter” in introductory provisions and added par. (6).