SECTION 1. SHORT TITLE.

    This Act may be cited as the ``State Energy Race to the Top 
Initiative Act of 2013''.

SEC. 2. PURPOSE.

    The purpose of this Act is to assist energy policy innovation in 
the States to promote the goal of doubling electric and thermal energy 
productivity by January 1, 2030.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Covered entity.--The term ``covered entity'' means--
                    (A) a public power utility;
                    (B) an electric cooperative; and
                    (C) an Indian tribe (as defined in section 4 of the 
                Indian Self-Determination and Education Assistance Act 
                (25 U.S.C. 450b)).
            (2) 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).

SEC. 4. PHASE 1: INITIAL ALLOCATION OF GRANTS TO STATES.

    (a) 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 section.
    (b) Grants.--
            (1) In general.--Subject to section 7, the Secretary shall 
        use funds made available under section 8(b)(1) to provide an 
        initial allocation of grants to not more than 25 States.
            (2) Amount.--The amount of a grant provided to a State 
        under this section shall be not less than $1,000,000 nor more 
        than $3,500,000.
    (c) Submission of Plans.--To receive a grant under this section, 
not later than 90 days after the date of issuance of the invitation 
under subsection (a), a State 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).
    (d) Decision by Secretary.--
            (1) In general.--Not later than 90 days after the 
        submission of revised State energy conservation plans under 
        subsection (c), the Secretary shall make a final decision on 
        the allocation of grants under this section.
            (2) Basis.--The Secretary shall base the decision of the 
        Secretary under paragraph (1) on--
                    (A) plans for improvement in electric and thermal 
                energy productivity consistent with this Act; and
                    (B) other factors determined appropriate by the 
                Secretary, including geographic diversity.
            (3) Ranking.--The Secretary shall--
                    (A) rank revised plans submitted under this section 
                in order of the greatest to least likely contribution 
                to improving energy productivity in a State; and
                    (B) provide grants under this section in accordance 
                with the ranking and the scale and scope of a plan.
    (e) Plan Requirements.--A revised State energy conservation plan 
submitted under subsection (c) shall provide--
            (1) a description of the manner in which--
                    (A) energy savings will be monitored and verified;
                    (B) a statewide baseline of energy use and 
                potential resources for calendar year 2010 will be 
                established to measure improvements;
                    (C) the plan will promote achievement of energy 
                savings and demand reduction goals;
                    (D) public and private sector investments in energy 
                efficiency will be leveraged, including through banks, 
                credit unions, and institutional investors; and
                    (E) the plan will not cause cost-shifting among 
                utility customer classes or negatively impact low-
                income populations; and
            (2) an assurance that--
                    (A) the State energy office required to submit the 
                plan and the State public service commission are 
                cooperating and coordinating programs and activities 
                under this Act;
                    (B) the State is cooperating with local units of 
                government to expand programs as appropriate; and
                    (C) grants provided under this Act 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.
    (f) Uses.--A State may use grants provided under this section to 
promote--
            (1) the expansion of industrial energy efficiency, combined 
        heat and power, and waste heat-to-power utilization;
            (2) the expansion of policies and programs that will 
        advance energy efficiency retrofits for public and private 
        commercial buildings, schools, hospitals, and residential 
        buildings (including multifamily buildings) through expanded 
        energy service performance contracts, zero net-energy 
        buildings, or improved building energy efficiency codes;
            (3) 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 heat and power and waste heat-to-
        power incentives, financing of energy efficiency programs, data 
        use incentives, district heating, and regular energy audits; 
        and
            (4) 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 Act.

SEC. 5. PHASE 2: SUBSEQUENT ALLOCATION OF GRANTS TO STATES.

    (a) Reports.--Not later than 18 months after the receipt of grants 
under section 4, each State that received grants under section 4 may 
submit to the Secretary a report that describes--
            (1) the performance of the programs and activities carried 
        out with the grants; and
            (2) the manner in which additional funds would be used to 
        carry out programs and activities to promote the purposes of 
        this Act.
    (b) Grants.--
            (1) In general.--Not later than 180 days after the date of 
        the receipt of the reports required under subsection (a), 
        subject to section 7, the Secretary shall use amounts made 
        available under section 8(b)(2) to provide grants to not more 
        than 6 States to carry out the programs and activities 
        described in subsection (a)(2).
            (2) Amount.--The amount of a grant provided to a State 
        under this section shall be not more than $30,000,000.
            (3) Basis.--The Secretary shall base the decision of the 
        Secretary to provide grants under this section on--
                    (A) the performance of the State in the programs 
                and activities carried out with grants provided under 
                section 4;
                    (B) the potential of the programs and activities 
                descried in subsection (a)(2) to achieve the purposes 
                of this Act;
                    (C) the desirability of maintaining a total project 
                portfolio that is geographically and functionally 
                diverse; and
                    (D) the amount of non-Federal funds that are 
                leveraged as a result of the grants to ensure that 
                Federal dollars are leveraged effectively.

SEC. 6. ALLOCATION OF GRANTS TO COVERED ENTITIES.

    (a) In General.--Not later than 30 days after the date of enactment 
of this Act, the Secretary shall invite covered entities to submit 
plans to participate in an electric and thermal energy productivity 
challenge in accordance with this section.
    (b) Submission of Plans.--To receive a grant under this section, 
not later than 90 days after the date of issuance of the invitation 
under subsection (a), a covered entity shall submit to the Secretary a 
plan to increase electric and thermal energy productivity by the 
covered entity.
    (c) Decision by Secretary.--
            (1) In general.--Not later than 90 days after the 
        submission of plans under subsection (b), the Secretary shall 
        make a final decision on the allocation of grants under this 
        section.
            (2) Basis.--The Secretary shall base the decision of the 
        Secretary under paragraph (1) on--
                    (A) plans for improvement in electric and thermal 
                energy productivity consistent with this Act;
                    (B) plans for continuation of the improvements 
                after the receipt of grants under this Act; and
                    (C) other factors determined appropriate by the 
                Secretary, including--
                            (i) geographic diversity;
                            (ii) size differences among covered 
                        entities; and
                            (iii) equitable treatment of each sector 
                        under this section.

SEC. 7. ADMINISTRATION.

    (a) Independent Evaluation.--To evaluate program performance and 
effectiveness under this Act, the Secretary shall consult with the 
National Research Council regarding requirements for data and 
evaluation for recipients of grants under this Act.
    (b) Coordination With State Energy Conservation Programs.--
            (1) In general.--Grants to States under this Act 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.).
            (2) Relationship to state energy conservation programs.--
                    (A) In general.--A grant provided to a State under 
                this Act 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.).
                    (B) Minimum funding.--A grant provided to a State 
                shall not be provided to a State for a fiscal year 
                under this Act if the amount of the grant provided to 
                the State 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.
    (c) Voluntary Participation.--The participation of a State or 
covered entity in a challenge established under this Act shall be 
voluntary.

SEC. 8. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--There are authorized to be appropriated to carry 
out this Act $200,000,000 for fiscal years 2014 through 2017.
    (b) Allocation.--Of the total amount of funds made available under 
subsection(a)--
            (1) 30 percent shall be used to provide an initial 
        allocation of grants to States under section 4;
            (2) 52\1/2\ percent shall be used to provide a subsequent 
        allocation of grants to States under section 5;
            (3) 12\1/2\ percent shall be used to make grants to public 
        power utilities, electric cooperatives, and Indian tribes under 
        section 6; and
            (4) 5 percent shall be available to the Secretary for the 
        cost of administration and technical support to carry out this 
        Act.

SEC. 9. OFFSET.

    Section 422(f) of the Energy Independence and Security Act of 2007 
(42 U.S.C. 17082(f)) (as otherwise amended by this Act) is amended--
            (1) in paragraph (4), by adding ``and'' after the semicolon 
        at the end; and
            (2) by striking paragraph (5) through the period at the end 
        of the subsection and inserting:
            ``(5) $0 for each of fiscal years 2014 through 2017.''.
State Energy Race to the Top Initiative Act of 2013 - Requires the Secretary of Energy (DOE) to establish a voluntary electric and thermal energy productivity challenge grant program to provide support to no more than 25 states for: (1) expanding industrial energy efficiency, combined heat and power, and waste heat-to-power utilization; (2) expanding policies and programs that will advance energy efficiency retrofits for commercial buildings, schools, hospitals, and residential buildings through expanded energy service performance contracts, zero net-energy buildings, or improved building energy efficiency codes; (3) establishing or expanding incentives in the electric utility sector to enhance demand response and energy efficiency; and (4) supporting state activities involving both facilities and vehicle fleets than can be a model for other action to promote energy efficiency.  Requires a state to submit to the Secretary a revised state energy conservation plan under the Energy Policy and Conservation Act in order to receive a grant. Authorizes the Secretary to provide grants to no more than six states to provide additional funds for activities to assist energy policy innovation in the states and to promote the goal of doubling electric and thermal energy productivity by January 1, 2030. Authorizes grants to be given to public power utilities, electric cooperatives, and Indian tribes. Amends the Energy Independence and Security Act of 2007 to revoke the authorization of appropriations for FY2014-FY2017 for the Zero Net Energy Commercial Buildings Initiative.
State Energy Race to the Top Initiative Act of 2013