II 

117TH CONGRESS 

1ST SESSION S. 2066 

To require the Secretary of Energy to establish an energy efficiency revolving 

loan fund capitalization grant program, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JUNE 15, 2021 

Mr. MANCHIN (for himself and Ms. MURKOWSKI) introduced the following bill; 

which was read twice and referred to the Committee on Energy and Natural Resources 

A BILL 

To require the Secretary of Energy to establish an energy 

efficiency revolving loan fund capitalization grant program, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Investing in New 

5 Strategies for Upgrading Lower Attaining Efficiency 

6 Buildings Act of 2021’’ or the ‘‘INSULATE Buildings 

7 Act of 2021’’. 

8 SEC. 2. DEFINITIONS. 

9 In this Act: 


kjohnson on DSK79L0C42PROD with BILLS
2 

•S 2066 IS

1 (1) PRIORITY STATE.—The term ‘‘priority 

2 State’’ means a State that— 

3 (A) is eligible for funding under the State 

4 Energy Program; and 

5 (B)(i) is among the 15 States with the 

6 highest annual per-capita combined residential 

7 and commercial sector energy consumption, as 

8 most recently reported by the Energy Informa9 tion Administration; or 

10 (ii) is among the 15 States with the high11 est annual per-capita energy-related carbon di12 oxide emissions by State, as most recently re13 ported by the Energy Information Administra14 tion. 

15 (2) PROGRAM.—The term ‘‘program’’ means 

16 the program established under section 3(a). 

17 (3) SECRETARY.—The term ‘‘Secretary’’ means 

18 the Secretary of Energy. 

19 (4) STATE.—The term ‘‘State’’ means a State 

20 (as defined in section 3 of the Energy Policy and 

21 Conservation Act (42 U.S.C. 6202)), acting through 

22 a State energy office. 

23 (5) STATE ENERGY PROGRAM.—The term 

24 ‘‘State Energy Program’’ means the State Energy 

25 Program established under part D of title III of the 


kjohnson on DSK79L0C42PROD with BILLS
3 

•S 2066 IS

1 Energy Policy and Conservation Act (42 U.S.C. 

2 6321 et seq.). 

3 SEC. 3. ENERGY EFFICIENCY REVOLVING LOAN FUND CAP4 ITALIZATION GRANT PROGRAM. 

5 (a) IN GENERAL.—Not later than 1 year after the 

6 date of enactment of this Act, under the State Energy 

7 Program, the Secretary shall establish a program under 

8 which the Secretary shall provide capitalization grants to 

9 States to establish a revolving loan fund under which the 

10 State shall provide loans and grants, as applicable, in ac11 cordance with this section. 

12 (b) DISTRIBUTION OF FUNDS.— 

13 (1) ALL STATES.— 

14 (A) IN GENERAL.—Of the amounts made 

15 available under subsection (k), the Secretary 

16 shall use 40 percent to provide capitalization 

17 grants to States that are eligible for funding 

18 under the State Energy Program, in accordance 

19 with the allocation formula established under 

20 section 420.11 of title 10, Code of Federal Reg21 ulations (or successor regulations). 

22 (B) REMAINING FUNDING.—After applying 

23 the allocation formula described in subpara24 graph (A), the Secretary shall redistribute any 

25 unclaimed funds to the remaining States seekVerDate Sep 11 2014 05:11 Jun 24, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S2066.IS S2066

kjohnson on DSK79L0C42PROD with BILLS
4 

•S 2066 IS

1 ing capitalization grants under that subpara2 graph. 

3 (2) PRIORITY STATES.— 

4 (A) IN GENERAL.—Of the amounts made 

5 available under subsection (k), the Secretary 

6 shall use 60 percent to provide supplemental 

7 capitalization grants to priority States in ac8 cordance with an allocation formula determined 

9 by the Secretary. 

10 (B) REMAINING FUNDING.—After applying 

11 the allocation formula described in subpara12 graph (A), the Secretary shall redistribute any 

13 unclaimed funds to the remaining priority 

14 States seeking supplemental capitalization 

15 grants under that subparagraph. 

16 (C) GRANT AMOUNT.— 

17 (i) MAXIMUM AMOUNT.—The amount 

18 of a supplemental capitalization grant pro19 vided to a State under this paragraph shall 

20 not exceed $30,000,000. 

21 (ii) SUPPLEMENT NOT SUPPLANT.—A 

22 supplemental capitalization grant received 

23 by a State under this paragraph shall sup24 plement, not supplant, a capitalization 


kjohnson on DSK79L0C42PROD with BILLS
5 

•S 2066 IS

1 grant received by that State under para2 graph (1). 

3 (c) APPLICATIONS FOR CAPITALIZATION GRANTS.— 

4 A State seeking a capitalization grant under the program 

5 shall submit to the Secretary an application at such time, 

6 in such manner, and containing such information as the 

7 Secretary may require, including— 

8 (1) a detailed explanation of how the grant will 

9 be used, including a plan to establish a new revolv10 ing loan fund or use an existing revolving loan fund; 

11 (2) the need of eligible recipients for loans and 

12 grants in the State for assistance with conducting 

13 energy audits; 

14 (3) a description of the expected benefits that 

15 building infrastructure and energy system upgrades 

16 and retrofits will have on communities in the State; 

17 and 

18 (4) in the case of a priority State seeking a 

19 supplemental capitalization grant under subsection 

20 (b)(2), a justification for needing the supplemental 

21 funding. 

22 (d) TIMING.— 

23 (1) IN GENERAL.—The Secretary shall establish 

24 a timeline with dates by, or periods by the end of, 

25 which a State shall— 


kjohnson on DSK79L0C42PROD with BILLS
6 

•S 2066 IS

1 (A) on receipt of a capitalization grant 

2 under the program, deposit the grant funds into 

3 a revolving loan fund; and 

4 (B) begin using the capitalization grant as 

5 described in subsection (e)(1). 

6 (2) USE OF GRANT.—Under the timeline estab7 lished under paragraph (1), a State shall be required 

8 to begin using a capitalization grant not more than 

9 180 days after the date on which the grant is re10 ceived. 

11 (e) USE OF GRANT FUNDS.— 

12 (1) IN GENERAL.—A State that receives a cap13 italization grant under the program— 

14 (A) shall provide loans in accordance with 

15 paragraph (2); and 

16 (B) may provide grants in accordance with 

17 paragraph (3). 

18 (2) LOANS.— 

19 (A) COMMERCIAL ENERGY AUDIT.— 

20 (i) IN GENERAL.—A State that re21 ceives a capitalization grant under the pro22 gram may provide a loan to an eligible re23 cipient described in clause (iii) to conduct 

24 a commercial energy audit. 


kjohnson on DSK79L0C42PROD with BILLS
7 

•S 2066 IS

1 (ii) AUDIT REQUIREMENTS.—A com2 mercial energy audit conducted using a 

3 loan provided under clause (i) shall— 

4 (I) determine the overall con5 sumption of energy of the facility of 

6 the eligible recipient; 

7 (II) identify and recommend 

8 lifecycle cost-effective opportunities to 

9 reduce the energy consumption of the 

10 facility of the eligible recipient, includ11 ing through energy efficient— 

12 (aa) lighting; 

13 (bb) heating, ventilation, 

14 and air conditioning systems; 

15 (cc) windows; 

16 (dd) appliances; and 

17 (ee) insulation and building 

18 envelopes; 

19 (III) estimate the energy and 

20 cost savings potential of the opportu21 nities identified in subclause (II) 

22 using software approved by the Sec23 retary; 

24 (IV) identify— 


kjohnson on DSK79L0C42PROD with BILLS
8 

•S 2066 IS

1 (aa) the period and level of 

2 peak energy demand for each 

3 building within the facility of the 

4 eligible recipient; and 

5 (bb) the sources of energy 

6 consumption that are contrib7 uting the most to that period of 

8 peak energy demand; 

9 (V) recommend controls and 

10 management systems to reduce or re11 distribute peak energy consumption; 

12 (VI) recommend strategies to in13 crease electrification of the facility of 

14 the eligible recipient, including the in15 stallation of— 

16 (aa) charging infrastructure 

17 for plug-in electric vehicles; 

18 (bb) electric heating and 

19 cooling systems; or 

20 (cc) electric appliances; and 

21 (VII) estimate the total energy 

22 and cost savings potential for the fa23 cility of the eligible recipient if all rec24 ommended upgrades and retrofits are 


kjohnson on DSK79L0C42PROD with BILLS
9 

•S 2066 IS

1 implemented, using software approved 

2 by the Secretary. 

3 (iii) ELIGIBLE RECIPIENTS.—An eligi4 ble recipient under clause (i) is a business 

5 that— 

6 (I) conducts the majority of its 

7 business in the State that provides the 

8 loan under that clause; and 

9 (II) owns or operates— 

10 (aa) 1 or more commercial 

11 buildings; or 

12 (bb) commercial space with13 in a building that serves multiple 

14 functions, such as a building for 

15 commercial and residential oper16 ations. 

17 (B) RESIDENTIAL ENERGY AUDITS.— 

18 (i) IN GENERAL.—A State that re19 ceives a capitalization grant under the pro20 gram may provide a loan to an eligible re21 cipient described in clause (iii) to conduct 

22 a residential energy audit. 

23 (ii) RESIDENTIAL ENERGY AUDIT RE24 QUIREMENTS.—A residential energy audit 


kjohnson on DSK79L0C42PROD with BILLS
10 

•S 2066 IS

1 conducted using a loan under clause (i) 

2 shall— 

3 (I) utilize the same evaluation 

4 criteria as the Home Performance As5 sessment used in the Energy Star 

6 program established under section 

7 324A of the Energy Policy and Con8 servation Act (42 U.S.C. 6294a); 

9 (II) recommend lifecycle cost-ef10 fective opportunities to reduce energy 

11 consumption within the residential 

12 building of the eligible recipient, in13 cluding through energy efficient— 

14 (aa) lighting; 

15 (bb) heating, ventilation, 

16 and air conditioning systems; 

17 (cc) windows; 

18 (dd) appliances; and 

19 (ee) insulation and building 

20 envelopes; 

21 (III) recommend controls and 

22 management systems to reduce or re23 distribute peak energy consumption; 

24 (IV) recommend strategies to in25 crease electrification of the residential 


kjohnson on DSK79L0C42PROD with BILLS
11 

•S 2066 IS

1 building of the eligible recipient, in2 cluding the installation of— 

3 (aa) charging infrastructure 

4 for plug-in electric vehicles, if 

5 possible; 

6 (bb) electric heating and 

7 cooling systems; or 

8 (cc) electric appliances; 

9 (V) compare the energy con10 sumption of the residential building of 

11 the eligible recipient to comparable 

12 residential buildings in the same geo13 graphic area; and 

14 (VI) provide a Home Energy 

15 Score, or equivalent score, for the res16 idential building of the eligible recipi17 ent by using the Home Energy Score 

18 Tool of the Department of Energy or 

19 an equivalent scoring tool. 

20 (iii) ELIGIBLE RECIPIENTS.—An eligi21 ble recipient under clause (i) is— 

22 (I) an individual who owns— 

23 (aa) a single family home; 

24 (bb) a condominium or du25 plex; or 


kjohnson on DSK79L0C42PROD with BILLS
12 

•S 2066 IS

1 (cc) a manufactured housing 

2 unit; or 

3 (II) a business that owns or oper4 ates a multifamily housing facility. 

5 (C) COMMERCIAL AND RESIDENTIAL EN6 ERGY UPGRADES AND RETROFITS.— 

7 (i) IN GENERAL.—A State that re8 ceives a capitalization grant under the pro9 gram may provide a loan to an eligible re10 cipient described in clause (ii) to carry out 

11 upgrades or retrofits of building infrastruc12 ture and systems that— 

13 (I) are recommended in the com14 mercial energy audit or residential en15 ergy audit, as applicable, completed 

16 for the building or facility of the eligi17 ble recipient; 

18 (II) satisfy at least 1 of the cri19 teria in the Home Performance As20 sessment used in the Energy Star 

21 program established under section 

22 324A of the Energy Policy and Con23 servation Act (42 U.S.C. 6294a); 


kjohnson on DSK79L0C42PROD with BILLS
13 

•S 2066 IS

1 (III) improve, with respect to the 

2 building or facility of the eligible re3 cipient— 

4 (aa) the physical comfort of 

5 the building or facility occupants; 

6 (bb) the energy efficiency of 

7 the building or facility; or 

8 (cc) the quality of the air in 

9 the building or facility; and 

10 (IV)(aa) are lifecycle cost-effec11 tive; and 

12 (bb)(AA) reduce the energy in13 tensity of the building or facility of 

14 the eligible recipient; or 

15 (BB) improve the control and 

16 management of energy usage of the 

17 building or facility to reduce demand 

18 during peak times. 

19 (ii) ELIGIBLE RECIPIENTS.—An eligi20 ble recipient under clause (i) is an eligible 

21 recipient described in subparagraph (A)(iii) 

22 or (B)(iii) that— 

23 (I) has completed a commercial 

24 energy audit described in subpara25 graph (A) or a residential energy 


kjohnson on DSK79L0C42PROD with BILLS
14 

•S 2066 IS

1 audit described in subparagraph (B) 

2 using a loan provided under the appli3 cable subparagraph; or 

4 (II) has completed a commercial 

5 energy audit or residential energy 

6 audit that— 

7 (aa) was not funded by a 

8 loan under this paragraph; and 

9 (bb)(AA) meets the require10 ments for the applicable audit 

11 under subparagraph (A) or (B), 

12 as applicable; or 

13 (BB) the Secretary deter14 mines is otherwise satisfactory. 

15 (iii) LOAN TERM.—A loan provided 

16 under this subparagraph shall be required 

17 to be fully amortized by the earlier of— 

18 (I) the year in which the up19 grades or retrofits carried out using 

20 the loan exceed their expected useful 

21 life; and 

22 (II) 15 years after those up23 grades or retrofits are installed. 

24 (D) REFERRAL TO QUALIFIED CONTRAC25 TORS.—Following the completion of an audit 


kjohnson on DSK79L0C42PROD with BILLS
15 

•S 2066 IS

1 under subparagraph (A) or (B) by an eligible 

2 recipient of a loan under the applicable sub3 paragraph, the State may refer the eligible re4 cipient to a qualified contractor, as determined 

5 by the State, to estimate— 

6 (i) the upfront capital cost of each 

7 recommended upgrade; and 

8 (ii) the total upfront capital cost of 

9 implementing all recommended upgrades. 

10 (E) LOAN RECIPIENTS.—Each State pro11 viding loans under this paragraph shall, to the 

12 maximum extent practicable, provide loans to 

13 eligible recipients that do not have access to 

14 private capital. 

15 (3) GRANTS AND TECHNICAL ASSISTANCE.— 

16 (A) IN GENERAL.—A State that receives a 

17 capitalization grant under the program may use 

18 not more than 25 percent of the grant funds to 

19 provide grants or technical assistance to eligible 

20 entities described in subparagraph (B) to carry 

21 out the activities described in subparagraphs 

22 (A), (B), and (C) of paragraph (2). 

23 (B) ELIGIBLE ENTITY.—An entity eligible 

24 for a grant or technical assistance under sub25 paragraph (A) is— 


kjohnson on DSK79L0C42PROD with BILLS
16 

•S 2066 IS

1 (i) a business that— 

2 (I) is an eligible recipient de3 scribed in paragraph (2)(A)(iii); and 

4 (II) has fewer than 500 employ5 ees; or 

6 (ii) a low-income individual (as de7 fined in section 3 of the Workforce Innova8 tion and Opportunity Act (29 U.S.C. 

9 3102)) that owns a residential building. 

10 (4) ADMINISTRATIVE EXPENSES.—A State that 

11 receives a capitalization grant under the program 

12 may use not more than 10 percent of the grant 

13 funds for administrative expenses. 

14 (f) COORDINATION WITH EXISTING PROGRAMS.—A 

15 State receiving a capitalization grant under the program 

16 is encouraged to utilize and build on existing programs 

17 and infrastructure within the State that may aid the State 

18 in carrying out a revolving loan fund program. 

19 (g) LEVERAGING PRIVATE CAPITAL.—A State receiv20 ing a capitalization grant under the program shall, to the 

21 maximum extent practicable, use the grant to leverage pri22 vate capital. 

23 (h) OUTREACH.—The Secretary shall engage in out24 reach to inform States of the availability of capitalization 

25 grants under the program. 


kjohnson on DSK79L0C42PROD with BILLS
17 

•S 2066 IS

1 (i) DAVIS-BACON COMPLIANCE.— 

2 (1) IN GENERAL.—Any laborer or mechanic em3 ployed by any contractor or subcontractor in the 

4 performance of work on any project funded by a 

5 grant under this section shall be paid wages at rates 

6 not less than those prevailing on similar construction 

7 in the locality as determined by the Secretary of 

8 Labor under subchapter IV of chapter 31 of title 40, 

9 United States Code (commonly referred to as the 

10 ‘‘Davis-Bacon Act’’). 

11 (2) AUTHORITY.—With respect to the labor 

12 standards specified in paragraph (1), the Secretary 

13 of Labor shall have the authority and functions set 

14 forth in Reorganization Plan Numbered 14 of 1950 

15 (64 Stat. 1267; 5 U.S.C. App.) and section 3145 of 

16 title 40, United States Code. 

17 (j) REPORT.—Each State that receives a capitaliza18 tion grant under the program shall, not later than 1 year 

19 after a grant is received, submit to the Secretary a report 

20 that describes— 

21 (1) the number of recipients to which the State 

22 has distributed— 

23 (A) loans for— 

24 (i) commercial energy audits under 

25 subsection (e)(2)(A); 


kjohnson on DSK79L0C42PROD with BILLS
18 

•S 2066 IS

1 (ii) residential energy audits under 

2 subsection (e)(2)(B); 

3 (iii) energy upgrades and retrofits 

4 under subsection (e)(2)(C); and 

5 (B) grants under subsection (e)(3); and 

6 (2) the average capital cost of upgrades and 

7 retrofits across all commercial energy audits and 

8 residential energy audits that were conducted in the 

9 State using loans provided by the State under sub10 section (e). 

11 (k) AUTHORIZATION OF APPROPRIATIONS.—There is 

12 authorized to be appropriated to the Secretary to carry 

13 out this section $250,000,000 for each of fiscal years 2022 

14 through 2026, to remain available until expended. 

15 SEC. 4. ENERGY AUDITOR TRAINING GRANT PROGRAM. 

16 (a) DEFINITIONS.—In this section: 

17 (1) COVERED CERTIFICATION.—The term ‘‘cov18 ered certification’’ means any of the following certifi19 cations: 

20 (A) The ASHRAE Building Energy As21 sessment Professional certification. 

22 (B) The Association of Energy Engineers 

23 Certified Energy Auditor certification. 


kjohnson on DSK79L0C42PROD with BILLS
19 

•S 2066 IS

1 (C) The Building Performance Institute 

2 Home Energy Professional Energy Auditor cer3 tification. 

4 (D) The Residential Energy Services Net5 work Home Energy Rater certification. 

6 (E) Any other third-party certification rec7 ognized by the Department of Energy. 

8 (F) Any third-party certification that the 

9 Secretary determines is equivalent to the certifi10 cations described in subparagraphs (A) through 

11 (E). 

12 (2) ELIGIBLE STATE.—The term ‘‘eligible 

13 State’’ means a State that— 

14 (A) has a demonstrated need for assistance 

15 for training energy auditors; and 

16 (B) meets any additional criteria deter17 mined necessary by the Secretary. 

18 (b) ESTABLISHMENT.—Under the State Energy Pro19 gram, the Secretary shall establish a competitive grant 

20 program under which the Secretary shall award grants to 

21 eligible States to train individuals to conduct energy au22 dits or surveys of commercial and residential buildings. 

23 (c) APPLICATIONS.— 

24 (1) IN GENERAL.—A State seeking a grant 

25 under subsection (b) shall submit to the Secretary 


kjohnson on DSK79L0C42PROD with BILLS
20 

•S 2066 IS

1 an application at such time, in such manner, and 

2 containing such information as the Secretary may 

3 require, including the energy auditor training pro4 gram plan described in paragraph (2). 

5 (2) ENERGY AUDITOR TRAINING PROGRAM

6 PLAN.—An energy auditor training program plan 

7 submitted with an application under paragraph (1) 

8 shall include— 

9 (A)(i) a proposed training curriculum for 

10 energy audit trainees; and 

11 (ii) an identification of the covered certifi12 cation that those trainees will receive on com13 pletion of that training curriculum; 

14 (B) the expected per-individual cost of 

15 training; 

16 (C) a plan for connecting trainees with em17 ployment opportunities; and 

18 (D) any additional information required by 

19 the Secretary. 

20 (d) AMOUNT OF GRANT.—The amount of a grant 

21 awarded to an eligible State under subsection (b)— 

22 (1) shall be determined by the Secretary, taking 

23 into account the population of the eligible State; and 

24 (2) shall not exceed $2,000,000 for any eligible 

25 State. 


kjohnson on DSK79L0C42PROD with BILLS
21 

•S 2066 IS

1 (e) USE OF FUNDS.— 

2 (1) IN GENERAL.—An eligible State that re3 ceives a grant under subsection (b) shall use the 

4 grant funds— 

5 (A) to cover any cost associated with indi6 viduals being trained or certified to conduct en7 ergy audits by— 

8 (i) the State; or 

9 (ii) a State-certified third party train10 ing program; and 

11 (B) subject to paragraph (2), to pay the 

12 wages of a trainee during the period in which 

13 the trainee receives training and certification. 

14 (2) LIMITATION.—Not more than 10 percent of 

15 grant funds provided under subsection (b) to an eli16 gible State may be used for the purpose described in 

17 paragraph (1)(B). 

18 (f) CONSULTATION.—In carrying out this section, the 

19 Secretary shall consult with the Secretary of Labor. 

20 (g) AUTHORIZATION OF APPROPRIATIONS.—There is 

21 authorized to be appropriated to carry out this section 

22 $8,000,000 for each of fiscal years 2022 through 2026. 

Æ 


kjohnson on DSK79L0C42PROD with BILLS