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(2) an analysis of the reasons for failure to de-
velop the adequate transmission capacity; 
(3) recommendations for achieving adequate 
transmission capacity; 
(4) an analysis of the extent to which legal 
challenges filed at the State and Federal level are 
delaying the construction of transmission necessary 
to access renewable energy; and 
(5) an explanation of assumptions and projec-
tions made in the Study, including— 
(A) assumptions and projections relating 
to energy efficiency improvements in each load 
center; 
(B) assumptions and projections regarding 
the location and type of projected new genera-
tion capacity; and 
(C) assumptions and projections regarding 
projected deployment of distributed generation 
infrastructure. 
SEC. 7006. ADDITIONAL STATE ENERGY GRANTS. 
(a) IN GENERAL.—Amounts appropriated in para-
graph (6) under the heading ‘‘Department of Energy— 
Energy Programs—Energy Efficiency and Renewable En-
ergy’’ in title V of division A of this Act shall be available 
to the Secretary of Energy for making additional grants 
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under part D of title III of the Energy Policy and Con-
servation Act (42 U.S.C. 6321 et seq.). The Secretary 
shall make grants under this section in excess of the base 
allocation established for a State under regulations issued 
pursuant to the authorization provided in section 365(f) 
of such Act only if the governor of the recipient State noti-
fies the Secretary of Energy that the governor will seek, 
to the extent of his or her authority, to ensure that each 
of the following will occur: 
(1) The applicable State regulatory authority 
will implement the following regulatory policies for 
each electric and gas utility with respect to which 
the State regulatory authority has ratemaking au-
thority: 
(A) Policies that ensure that a utility’s re-
covery of prudent fixed costs of service is timely 
and independent of its retail sales, without in 
the process shifting prudent costs from variable 
to fixed charges. This cost shifting constraint 
shall not apply to rate designs adopted prior to 
the date of enactment of this Act. 
(B) Cost recovery for prudent investments 
by utilities in energy efficiency. 
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(C) An earnings opportunity for utilities 
associated with cost-effective energy efficiency 
savings. 
(2) The State, or the applicable units of local 
government that have authority to adopt building 
codes, will implement the following: 
(A) A building energy code (or codes) for 
residential buildings that meets or exceeds the 
most recently published International Energy 
Conservation Code, or achieves equivalent or 
greater energy savings. 
(B) A building energy code (or codes) for 
commercial buildings throughout the State that 
meets or exceeds the ANSI/ASHRAE/IESNA 
Standard 90.1–2007, or achieves equivalent or 
greater energy savings. 
(C) A plan for the jurisdiction achieving 
compliance with the building energy code or 
codes described in subparagraphs (A) and (B) 
within 8 years of the date of enactment of this 
Act in at least 90 percent of new and renovated 
residential and commercial building space. Such 
plan shall include active training and enforce-
ment programs and measurement of the rate of 
compliance each year. 
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(3) The State will to the extent practicable 
prioritize the grants toward funding energy effi-
ciency and renewable energy programs, including— 
(A) the expansion of existing energy effi-
ciency programs approved by the State or the 
appropriate regulatory authority, including en-
ergy efficiency retrofits of buildings and indus-
trial facilities, that are funded— 
(i) by the State; or 
(ii) through rates under the oversight 
of the applicable regulatory authority, to 
the extent applicable; 
(B) the expansion of existing programs, 
approved by the State or the appropriate regu-
latory authority, to support renewable energy 
projects and deployment activities, including 
programs operated by entities which have the 
authority and capability to manage and dis-
tribute grants, loans, performance incentives, 
and other forms of financial assistance; and 
(C) cooperation and joint activities between 
States to advance more efficient and effective 
use of this funding to support the priorities de-
scribed in this paragraph. 
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(b) STATE MATCH.—The State cost share require-
ment under the item relating to ‘‘DEPARTMENT OF 
ENERGY; energy conservation’’ in title II of the Depart-
ment of the Interior and Related Agencies Appropriations 
Act, 1985 (42 U.S.C. 6323a; 98 Stat. 1861) shall not 
apply to assistance provided under this section. 
(c) EQUIPMENT AND MATERIALS FOR ENERGY EFFI-
CIENCY MEASURES.—No limitation on the percentage of 
funding that may be used for the purchase and installation 
of equipment and materials for energy efficiency measures 
under grants provided under part D of title III of the En-
ergy Policy and Conservation Act (42 U.S.C. 6321 et seq.) 
shall apply to assistance provided under this section. 
SEC. 7007. INAPPLICABILITY OF LIMITATION. 
The limitations in section 399A(f)(2), (3), and (4) 
of the Energy Policy and Conservation Act (42 U.S.C. 
6371h–1(f)(2), (3), and (4)) shall not apply to grants 
funded with appropriations provided by this Act, except 
that such grant funds shall be available for not more than 
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an amount equal to 80 percent of the costs of the project 
for which the grant is provided. 
Passed the House of Representatives January 28, 
2009. 
Attest: 
LORRAINE C. MILLER, 
Clerk. 
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