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(f) REQUIREMENTS FOR ELIGIBILITY.—A State’s eli-
gibility to receive allowances in its SEED Account shall 
depend on that State’s compliance with the requirements 
of this Act (and the amendments made by this Act). 
(g) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Administrator 
such sums as may be necessary for SEED Account oper-
ations. 
SEC. 132. SUPPORT OF STATE RENEWABLE ENERGY AND 
ENERGY EFFICIENCY PROGRAMS. 
(a) DEFINITIONS.—For purposes of this section: 
(1) 
ALLOWANCE.—The 
term 
‘‘allowance’’ 
means an emission allowance established under sec-
tion 721 of the Clean Air Act (as added by section 
311 of this Act). 
(2) COST-EFFECTIVE.—The term ‘‘cost-effec-
tive’’, with respect to an energy efficiency program, 
means that the program meets the Total Resource 
Cost Test, which requires that the net present value 
of economic benefits over the life of the program or 
measure, including avoided supply and delivery costs 
and deferred or avoided investments, is greater than 
the net present value of the economic costs over the 
life of the program, including program costs and in-
cremental costs borne by the energy consumer. 
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(3) RENEWABLE
ENERGY
RESOURCE.—The 
term ‘‘renewable energy resource’’ shall have the 
meaning given that term in section 610 of the Public 
Utility Regulatory Policies Act of 1978 (as added by 
section 101 of this Act). 
(4) VINTAGE YEAR.—The term ‘‘vintage year’’ 
shall the meaning given that term in section 700 of 
the Clean Air Act (as added by section 311 of this 
Act). 
(b) DISTRIBUTION AMONG STATES.—Not later than 
September 30 of each calendar year from 2011 through 
2049, the Administrator shall, in accordance with this sec-
tion, distribute allowances allocated pursuant to section 
782(g)(1) of the Clean Air Act (as added by section 311 
of this Act) for the following vintage year. The Adminis-
trator shall distribute 0.5 percent of such allowances pur-
suant to section 133 of this Act. The Administrator shall 
distribute the remaining allowances to States for renew-
able energy and energy efficiency programs to be deposited 
in and administered through the State Energy and Envi-
ronment Development (SEED) Accounts established pur-
suant to section 131. The Administrator shall distribute 
allowances among the States under this section each year 
in accordance with the following formula: 
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(1) One third of the allowances shall be divided 
equally among the States. 
(2) One third of the allowances shall be distrib-
uted ratably among the States based on the popu-
lation of each State, as contained in the most recent 
reliable census data available from the Bureau of the 
Census, Department of Commerce, for all States at 
the time the Administrator calculates the formula 
for distribution. 
(3) One third of the allowances for shall be dis-
tributed ratably among the States on the basis of 
the energy consumption of each State as contained 
in the most recent State Energy Data Report avail-
able from the Energy Information Administration 
(or such alternative reliable source as the Adminis-
trator may designate). 
(c) USES.—The allowances distributed to each State 
pursuant to this section shall be used exclusively in accord-
ance with the following requirements: 
(1) Not less than 12.5 percent shall be distrib-
uted by the State to units of local government within 
such State to be used exclusively to support the en-
ergy efficiency and renewable energy purposes listed 
in paragraphs (2) and (3). 
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(2) Not less than 20 percent shall be used ex-
clusively for the following energy efficiency purposes, 
provided that not less than 1 percent shall be used 
for the purpose described in subparagraph (D) and 
not less than 5.5 percent shall be used for the pur-
pose described in subparagraph (E): 
(A) Implementation and enforcement of 
building codes adopted in compliance with sec-
tion 201. 
(B) Implementation of the energy efficient 
manufactured homes program established pur-
suant to section 203. 
(C) Implementation of the building energy 
performance labeling program established pur-
suant to section 204. 
(D) Low-income community energy effi-
ciency programs that are consistent with the 
grant program established under section 264 of 
this Act. 
(E) Implementation of the Retrofit for En-
ergy and Environmental Performance (REEP) 
program established pursuant to section 202. 
(3) Not less than 20 percent shall be used ex-
clusively for capital grants, tax credits, production 
incentives, loans, loan guarantees, forgivable loans, 
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direct provision of allowances, and interest rate buy- 
downs for— 
(A) re-equipping, expanding, or estab-
lishing a manufacturing facility that receives 
certification from the Secretary of Energy pur-
suant to section 1302 of the American Recovery 
and Reinvestment Act of 2009 for the produc-
tion of— 
(i) property designed to be used to 
produce energy from renewable energy 
sources; and 
(ii) electricity storage systems; 
(B) deployment of technologies to generate 
electricity from renewable energy sources; and 
(C) deployment of facilities or equipment, 
such as solar panels, to generate electricity or 
thermal energy from renewable energy re-
sources in and on buildings in an urban envi-
ronment. 
(4) The remaining 47.5 percent shall be used 
exclusively for any of the following purposes: 
(A) Energy efficiency purposes described 
in paragraph (2). 
(B) Renewable energy purposes described 
in paragraph (3)(B) and (C). 
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(C) Cost-effective energy efficiency pro-
grams for end-use consumers of electricity, nat-
ural gas, home heating oil, or propane, includ-
ing, where appropriate, programs or mecha-
nisms administered by local governments and 
entities other than the State. 
(D) Enabling the development of a Smart 
Grid (as described in section 1301 of the En-
ergy Independence and Security Act of 2007 
(42 U.S.C. 17381)) for State, local government, 
and other public buildings and facilities, includ-
ing integration of renewable energy resources 
and distributed generation, demand response, 
demand side management, and systems anal-
ysis. 
(E) Providing the non-Federal share of 
support for surface transportation capital 
projects under— 
(i) sections 5307, 5308, 5309, 5310, 
5311 and 5319 of title 49, United States 
Code; and 
(ii) sections 142, 146, and 149 of title 
23, United States Code, 
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