Main Street Efficiency Act of 2021
Bill: S.2665 | Sponsor: Sen. Cortez Masto, Catherine (D-NV)
Policy area: Energy

Summary:
Main Street Efficiency Act of 2021
This bill requires the Department of Energy to establish a grant program that provides incentives for small businesses to make energy efficiency upgrades.

To require the Secretary of Energy to establish a grant program to 
  incentivize small business participation in demand side management 
                   programs, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Main Street Efficiency Act of 
2021''.

SEC. 2. FINDINGS; PURPOSES.

    (a) Findings.--Congress finds that--
            (1) small businesses in the United States employ roughly 
        half of the workforce, and create about half of the gross 
        domestic product, of the United States;
            (2) 30,000,000 workers in the United States remain at risk 
        of long-term unemployment, and 1 in 4 small businesses in the 
        United States remain at risk of long-term closure, as a result 
        of the COVID-19 pandemic;
            (3) prior to the COVID-19 pandemic, there were 2,400,000 
        workers in the United States employed in the energy efficiency 
        sector, which was growing at a rate 3 times greater than that 
        of the overall economy of the United States;
            (4) over 300,000 energy efficiency workers remain 
        unemployed as of January 1, 2021, due to the COVID-19 pandemic;
            (5) nearly 80 percent of energy efficiency workers are 
        employed by companies with fewer than 20 employees;
            (6) United States small business energy bills total 
        $60,000,000,000 annually, of which 30 percent could be saved 
        through energy efficiency improvements, which would save small 
        businesses $18,000,000,000 annually;
            (7) three-quarters of electric and natural gas utility 
        companies in the United States operate demand side management 
        programs to incentivize customers to make energy efficiency 
        improvements; and
            (8) participation rates for small businesses in demand side 
        management programs are typically very low because small 
        businesses do not have the capital to meet the customer 
        contribution that utilities require.
    (b) Purposes.--The purposes of this Act are--
            (1) to make small businesses more financially viable 
        through energy efficiency improvements that lower monthly 
        utility bills;
            (2) to restore and create energy efficiency jobs across the 
        United States;
            (3) to provide work and revenue streams for small 
        businesses in the energy efficiency sector;
            (4) to ensure that demand side management programs for 
        small businesses include participation by--
                    (A) minority, women, and veteran-owned small 
                businesses;
                    (B) small businesses in disadvantaged 
                neighborhoods; and
                    (C) newly created small businesses;
            (5) to increase small business participation rates in 
        demand side management programs;
            (6) to reduce the energy demand and emissions of the United 
        States associated with energy use; and
            (7) to improve the indoor environments of small businesses 
        across the United States.

SEC. 3. GRANTS FOR DEMAND SIDE MANAGEMENT PROGRAMS.

    (a) Definitions.--In this section:
            (1) Customer contribution.--The term ``customer 
        contribution'' means the portion of the total cost of an 
        activity carried out under a demand side management program 
        that an eligible small business is responsible for covering to 
        secure investment from a qualifying utility or program 
        administrator.
            (2) Demand side management program.--
                    (A) In general.--The term ``demand side management 
                program'' means a program to plan, implement, and 
                monitor activities of a qualifying utility or program 
                administrator that are designed to encourage an 
                eligible small business to modify their level or 
                pattern of electricity or natural gas usage in a manner 
                that reduces the monthly energy costs of that eligible 
                small business.
                    (B) Inclusions.--The term ``demand side management 
                program'' includes any activity that--
                            (i) improves the efficiency of any end-use 
                        appliance or equipment that uses electricity or 
                        natural gas;
                            (ii) reduces monthly energy usage through 
                        weatherization, energy efficiency retrofitting, 
                        or infrastructure improvements;
                            (iii) enables or enhances overall energy or 
                        cost savings through digital technologies;
                            (iv) improves the effectiveness of a 
                        program through digital analytics or 
                        engagement;
                            (v) improves the demand response 
                        capabilities of a qualifying utility; or
                            (vi) supports the deployment of electric 
                        vehicles or energy storage technology.
            (3) Diverse supplier.--The term ``diverse supplier'' means 
        a service provider or supplier at least 51 percent of which is 
        owned, operated, or controlled by an individual who is a 
        minority, a woman, a veteran, disabled, or identifies as 
        lesbian, gay, bisexual, transgender, or queer (also known as 
        ``LGBTQ'').
            (4) Electric utility.--The term ``electric utility'' has 
        the meaning given the term in section 3 of the Public Utility 
        Regulatory Policies Act of 1978 (16 U.S.C. 2602).
            (5) Eligible small business.--The term ``eligible small 
        business'' means a small commercial account utility customer, 
        as determined by the applicable qualifying utility or program 
        administrator that receives a grant under this section, that--
                    (A) has a peak demand of less than 300 kilowatts of 
                electricity in any billing month; and
                    (B) uses less than 150,000 therms of natural gas 
                each year.
            (6) Gas utility.--The term ``gas utility'' has the meaning 
        given the term in section 302 of the Public Utility Regulatory 
        Policies Act of 1978 (15 U.S.C. 3202).
            (7) Minority owned or controlled.--The term ``minority 
        owned or controlled'' means, with respect to an eligible small 
        business, an eligible small business--
                    (A)(i) that is privately owned and for-profit; and
                    (ii) at least 51 percent of which is owned or 
                controlled by individuals who are of Asian-Indian, 
                Asian-Pacific, Black, Latino, or Native American origin 
                or descent;
                    (B)(i) that is publicly owned; and
                    (ii) at least 51 percent of the stock of which is 
                owned by 1 or more individuals of Asian-Indian, Asian-
                Pacific, Black, Latino, or Native American origin or 
                descent; or
                    (C)(i) that is a not-for-profit business;
                    (ii) at least 51 percent of the governing body or 
                board of directors of which is composed of and 
                controlled by individuals who are of Asian-Indian, 
                Asian-Pacific, Black, Latino, or Native American origin 
                or descent; and
                    (iii) the management and daily operations of which 
                are controlled by individuals described in clause (ii).
            (8) Program administrator.--The term ``program 
        administrator'' means a nonutility organization, such as a 
        State government, contractor, or nonprofit organization, that 
        administers a demand side management program that is funded 
        by--
                    (A) public benefit charges to utility customers, as 
                approved by the governing body of the nonutility 
                organization; or
                    (B) other targeted funds from qualifying utilities 
                or State governments.
            (9) Qualifying utility.--The term ``qualifying utility'' 
        means an entity that--
                    (A) is an electric utility or gas utility that--
                            (i) is owned by investors;
                            (ii) is a political subdivision of a State 
                        or an Indian Tribe, such as a municipally owned 
                        utility, agency, authority, corporation, or 
                        instrumentality of a State or an Indian Tribe;
                            (iii) is a rural electric cooperative; or
                            (iv) is primarily responsible for carrying 
                        out a demand side management program that is 
                        funded by utility ratepayers;
                    (B) operates in the United States, a territory of 
                the United States, or on land owned by a federally 
                recognized Indian Tribe; and
                    (C) has established a demand side management 
                program for eligible small businesses as of the date on 
                which the qualifying utility submits an application 
                under subsection (c)(1).
            (10) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.
    (b) Establishment.--Not later than 60 days after the date of 
enactment of this Act, the Secretary shall establish and carry out a 
program to provide grants to qualifying utilities and program 
administrators in accordance with this section.
    (c) Applications.--
            (1) In general.--To apply for a grant under this section, a 
        qualifying utility or program administrator shall submit to the 
        Secretary an application at such time, in such manner, and 
        containing such information as the Secretary may require.
            (2) Priority.--In awarding grants under this section, the 
        Secretary shall, to the maximum extent practicable, give 
        priority to a qualifying utility or program administrator that 
        will carry out a demand side management program that--
                    (A) utilizes diverse suppliers; and
                    (B) includes as participants eligible small 
                businesses that--
                            (i) operate in an underserved, rural, or 
                        economically disadvantaged community;
                            (ii) are owned and operated by members of 
                        the Armed Forces who are serving on active 
                        duty, separated from active duty, or retired 
                        from active duty;
                            (iii) are minority owned or controlled;
                            (iv) are owned and operated by socially and 
                        economically disadvantaged individuals;
                            (v) have operated for less than 7 years as 
                        of the date on which the qualifying utility or 
                        program administrator submits an application 
                        for a grant under paragraph (1);
                            (vi) operate in diverse geographic 
                        locations, as determined by the qualifying 
                        utility or program administrator, as 
                        applicable; or
                            (vii) are of varying business types.
            (3) Deadline for selection.--Subject to the availability of 
        appropriations and paragraph (4), the Secretary shall determine 
        whether to provide a grant to a qualifying utility or program 
        administrator that submits an application under paragraph (1) 
        not later than the date that is 30 days after the date on which 
        the application is submitted.
            (4) Delayed issuance of awards.--The Secretary may not 
        provide grants under this section until the date that is 45 
        days after the date on which the Secretary begins to accept 
        applications under paragraph (1).
    (d) Grant Funds.--
            (1) Use of funds.--A qualifying utility or program 
        administrator that receives a grant under this section shall 
        use the grant funds to pay customer contributions.
            (2) Limitations on grant amounts.--
                    (A) Max grant amount.--The amount of a grant 
                awarded under this section to a qualifying utility or 
                program administrator that carries out a demand side 
                management program shall not exceed the lesser of--
                            (i) the amount of funding the qualifying 
                        utility or program administrator, as 
                        applicable, commits to spending on the demand 
                        side management program for the period of the 
                        grant; and
                            (ii) $100,000,000.
                    (B) No reduction in utility contributions.--In 
                providing grants under this section, the Secretary 
                shall enter into an agreement with each grant recipient 
                to ensure that each grant recipient does not, as a 
                result of receiving a grant under this section, reduce 
                the amount it spends paying for the costs of activities 
                carried out under a demand side management program for 
                the benefit of any of customer classes of that grant 
                recipient.
                    (C) Use of funds for energy efficient 
                infrastructure.--A qualifying utility or program 
                administrator awarded a grant under this section shall 
                use not more than 25 percent of the grant funds to 
                support activities relating to the deployment of 
                electric vehicles, distributed energy resources, or 
                energy storage technology.
                    (D) Use of funds for demand side management program 
                costs.--Of the grant funds provided under this section 
                to a qualifying utility or program administrator, the 
                amount used by the qualifying utility or program 
                administrator to pay a customer contribution, or any 
                portion of a customer contribution, may not--
                            (i) exceed the amount of non-Federal 
                        funding that the qualifying utility or program 
                        administrator, as applicable, spends on 
                        activities carried out under a demand side 
                        management program; or
                            (ii) represent more than 50 percent of the 
                        total costs of those activities.
                    (E) Administrative costs.--
                            (i) In general.--A qualifying utility or 
                        program administrator awarded a grant under 
                        this section shall use not more than 10 percent 
                        of the grant funds to pay for the 
                        administrative costs relating to the carrying 
                        out of activities under a demand side 
                        management program.
                            (ii) Rates.--Nothing in this subsection 
                        shall affect the ability of a qualifying 
                        utility or program administrator that receives 
                        a grant under this section to charge a 
                        federally approved indirect rate.
    (e) Assessment and Report.--
            (1) In general.--The Secretary shall carry out an annual 
        assessment of the effect of grants provided under this section 
        on energy use, economic outcomes, the environment, and social 
        outcomes, including with respect to--
                    (A) the electricity and natural gas usage (in terms 
                of kilowatt hours, kilowatts, and therms) of each 
                eligible small business that participated in a demand 
                side management program carried out by a qualifying 
                utility or program administrator that received a grant 
                under this section;
                    (B) the changes in the level of customer 
                contributions;
                    (C) the cost to eligible small businesses of 
                purchasing electricity and natural gas;
                    (D) job creation, wages, benefits, career 
                development opportunities, and the diversity of the 
                energy efficiency workforce;
                    (E) the extent to which--
                            (i) qualified utilities and program 
                        administrators, as applicable, utilize diverse 
                        suppliers; and
                            (ii) minority owned or controlled eligible 
                        small businesses benefit from the program;
                    (F) the amount of non-Federal investments made in 
                demand side management programs; and
                    (G) the electric grid, including effects on--
                            (i) load flexibility;
                            (ii) cost efficiency;
                            (iii) avoidance of new capacity; and
                            (iv) any other relevant benefits, as 
                        determined by the Secretary.
            (2) Use of program evaluation data.--To the extent 
        practicable, the Secretary shall carry out an assessment under 
        paragraph (1) using data that includes any data made available 
        through program evaluations that are completed by qualifying 
        utilities or program administrators in response to the 
        requirements of the governing body of the qualifying utility or 
        program administrator.
            (3) Report.--Beginning in the first calendar year that 
        begins after the date of enactment of this Act, and annually 
        thereafter, the Secretary shall, not later than April 30 of 
        each year, submit to Congress a report on the results of the 
        most recent assessment carried out under paragraph (1).
    (f) Authorization of Appropriations.--
            (1) In general.--There is authorized to be appropriated to 
        the Secretary to carry out this section $6,000,000,000 for 
        fiscal year 2022, to remain available until expended.
            (2) Unused amounts.--Any amount of a grant provided under 
        this section that has not been used by a qualifying utility or 
        program administrator by the date that is 3 years after the 
        date on which the grant was provided--
                    (A) shall be returned to the Treasury; and
                    (B) is authorized to be appropriated to carry out 
                this section in addition to the amounts authorized to 
                be appropriated under paragraph (1).
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