INSULATE Buildings Act of 2021
Bill: S.2066 | Sponsor: Sen. Manchin, Joe, III (D-WV)
Policy area: Energy

Summary:
Investing in New Strategies for Upgrading Lower Attaining Efficiency Buildings Act of 2021 or the INSULATE Buildings Act of 2021
This bill establishes two grant programs under the State Energy Program of the Department of Energy (DOE). Under the first grant program, DOE must provide grants to states for revolving loan funds. States may use the fund to provide loans to eligible businesses and homeowners for energy audits and upgrades to reduce energy consumption. Under the second grant program, DOE must provide grants to states for training energy auditors.

To require the Secretary of Energy to establish an energy efficiency 
    revolving loan fund capitalization grant program, 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 ``Investing in New Strategies for 
Upgrading Lower Attaining Efficiency Buildings Act of 2021'' or the 
``INSULATE Buildings Act of 2021''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Priority state.--The term ``priority State'' means a 
        State that--
                    (A) is eligible for funding under the State Energy 
                Program; and
                    (B)(i) is among the 15 States with the highest 
                annual per-capita combined residential and commercial 
                sector energy consumption, as most recently reported by 
                the Energy Information Administration; or
                    (ii) is among the 15 States with the highest annual 
                per-capita energy-related carbon dioxide emissions by 
                State, as most recently reported by the Energy 
                Information Administration.
            (2) Program.--The term ``program'' means the program 
        established under section 3(a).
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.
            (4) State.--The term ``State'' means a State (as defined in 
        section 3 of the Energy Policy and Conservation Act (42 U.S.C. 
        6202)), acting through a State energy office.
            (5) State energy program.--The term ``State Energy 
        Program'' means the State Energy Program established under part 
        D of title III of the Energy Policy and Conservation Act (42 
        U.S.C. 6321 et seq.).

SEC. 3. ENERGY EFFICIENCY REVOLVING LOAN FUND CAPITALIZATION GRANT 
              PROGRAM.

    (a) In General.--Not later than 1 year after the date of enactment 
of this Act, under the State Energy Program, the Secretary shall 
establish a program under which the Secretary shall provide 
capitalization grants to States to establish a revolving loan fund 
under which the State shall provide loans and grants, as applicable, in 
accordance with this section.
    (b) Distribution of Funds.--
            (1) All states.--
                    (A) In general.--Of the amounts made available 
                under subsection (k), the Secretary shall use 40 
                percent to provide capitalization grants to States that 
                are eligible for funding under the State Energy 
                Program, in accordance with the allocation formula 
                established under section 420.11 of title 10, Code of 
                Federal Regulations (or successor regulations).
                    (B) Remaining funding.--After applying the 
                allocation formula described in subparagraph (A), the 
                Secretary shall redistribute any unclaimed funds to the 
                remaining States seeking capitalization grants under 
                that subparagraph.
            (2) Priority states.--
                    (A) In general.--Of the amounts made available 
                under subsection (k), the Secretary shall use 60 
                percent to provide supplemental capitalization grants 
                to priority States in accordance with an allocation 
                formula determined by the Secretary.
                    (B) Remaining funding.--After applying the 
                allocation formula described in subparagraph (A), the 
                Secretary shall redistribute any unclaimed funds to the 
                remaining priority States seeking supplemental 
                capitalization grants under that subparagraph.
                    (C) Grant amount.--
                            (i) Maximum amount.--The amount of a 
                        supplemental capitalization grant provided to a 
                        State under this paragraph shall not exceed 
                        $30,000,000.
                            (ii) Supplement not supplant.--A 
                        supplemental capitalization grant received by a 
                        State under this paragraph shall supplement, 
                        not supplant, a capitalization grant received 
                        by that State under paragraph (1).
    (c) Applications for Capitalization Grants.--A State seeking a 
capitalization grant under the program shall submit to the Secretary an 
application at such time, in such manner, and containing such 
information as the Secretary may require, including--
            (1) a detailed explanation of how the grant will be used, 
        including a plan to establish a new revolving loan fund or use 
        an existing revolving loan fund;
            (2) the need of eligible recipients for loans and grants in 
        the State for assistance with conducting energy audits;
            (3) a description of the expected benefits that building 
        infrastructure and energy system upgrades and retrofits will 
        have on communities in the State; and
            (4) in the case of a priority State seeking a supplemental 
        capitalization grant under subsection (b)(2), a justification 
        for needing the supplemental funding.
    (d) Timing.--
            (1) In general.--The Secretary shall establish a timeline 
        with dates by, or periods by the end of, which a State shall--
                    (A) on receipt of a capitalization grant under the 
                program, deposit the grant funds into a revolving loan 
                fund; and
                    (B) begin using the capitalization grant as 
                described in subsection (e)(1).
            (2) Use of grant.--Under the timeline established under 
        paragraph (1), a State shall be required to begin using a 
        capitalization grant not more than 180 days after the date on 
        which the grant is received.
    (e) Use of Grant Funds.--
            (1) In general.--A State that receives a capitalization 
        grant under the program--
                    (A) shall provide loans in accordance with 
                paragraph (2); and
                    (B) may provide grants in accordance with paragraph 
                (3).
            (2) Loans.--
                    (A) Commercial energy audit.--
                            (i) In general.--A State that receives a 
                        capitalization grant under the program may 
                        provide a loan to an eligible recipient 
                        described in clause (iii) to conduct a 
                        commercial energy audit.
                            (ii) Audit requirements.--A commercial 
                        energy audit conducted using a loan provided 
                        under clause (i) shall--
                                    (I) determine the overall 
                                consumption of energy of the facility 
                                of the eligible recipient;
                                    (II) identify and recommend 
                                lifecycle cost-effective opportunities 
                                to reduce the energy consumption of the 
                                facility of the eligible recipient, 
                                including through energy efficient--
                                            (aa) lighting;
                                            (bb) heating, ventilation, 
                                        and air conditioning systems;
                                            (cc) windows;
                                            (dd) appliances; and
                                            (ee) insulation and 
                                        building envelopes;
                                    (III) estimate the energy and cost 
                                savings potential of the opportunities 
                                identified in subclause (II) using 
                                software approved by the Secretary;
                                    (IV) identify--
                                            (aa) the period and level 
                                        of peak energy demand for each 
                                        building within the facility of 
                                        the eligible recipient; and
                                            (bb) the sources of energy 
                                        consumption that are 
                                        contributing the most to that 
                                        period of peak energy demand;
                                    (V) recommend controls and 
                                management systems to reduce or 
                                redistribute peak energy consumption;
                                    (VI) recommend strategies to 
                                increase electrification of the 
                                facility of the eligible recipient, 
                                including the installation of--
                                            (aa) charging 
                                        infrastructure for plug-in 
                                        electric vehicles;
                                            (bb) electric heating and 
                                        cooling systems; or
                                            (cc) electric appliances; 
                                        and
                                    (VII) estimate the total energy and 
                                cost savings potential for the facility 
                                of the eligible recipient if all 
                                recommended upgrades and retrofits are 
                                implemented, using software approved by 
                                the Secretary.
                            (iii) Eligible recipients.--An eligible 
                        recipient under clause (i) is a business that--
                                    (I) conducts the majority of its 
                                business in the State that provides the 
                                loan under that clause; and
                                    (II) owns or operates--
                                            (aa) 1 or more commercial 
                                        buildings; or
                                            (bb) commercial space 
                                        within a building that serves 
                                        multiple functions, such as a 
                                        building for commercial and 
                                        residential operations.
                    (B) Residential energy audits.--
                            (i) In general.--A State that receives a 
                        capitalization grant under the program may 
                        provide a loan to an eligible recipient 
                        described in clause (iii) to conduct a 
                        residential energy audit.
                            (ii) Residential energy audit 
                        requirements.--A residential energy audit 
                        conducted using a loan under clause (i) shall--
                                    (I) utilize the same evaluation 
                                criteria as the Home Performance 
                                Assessment used in the Energy Star 
                                program established under section 324A 
                                of the Energy Policy and Conservation 
                                Act (42 U.S.C. 6294a);
                                    (II) recommend lifecycle cost-
                                effective opportunities to reduce 
                                energy consumption within the 
                                residential building of the eligible 
                                recipient, including through energy 
                                efficient--
                                            (aa) lighting;
                                            (bb) heating, ventilation, 
                                        and air conditioning systems;
                                            (cc) windows;
                                            (dd) appliances; and
                                            (ee) insulation and 
                                        building envelopes;
                                    (III) recommend controls and 
                                management systems to reduce or 
                                redistribute peak energy consumption;
                                    (IV) recommend strategies to 
                                increase electrification of the 
                                residential building of the eligible 
                                recipient, including the installation 
                                of--
                                            (aa) charging 
                                        infrastructure for plug-in 
                                        electric vehicles, if possible;
                                            (bb) electric heating and 
                                        cooling systems; or
                                            (cc) electric appliances;
                                    (V) compare the energy consumption 
                                of the residential building of the 
                                eligible recipient to comparable 
                                residential buildings in the same 
                                geographic area; and
                                    (VI) provide a Home Energy Score, 
                                or equivalent score, for the 
                                residential building of the eligible 
                                recipient by using the Home Energy 
                                Score Tool of the Department of Energy 
                                or an equivalent scoring tool.
                            (iii) Eligible recipients.--An eligible 
                        recipient under clause (i) is--
                                    (I) an individual who owns--
                                            (aa) a single family home;
                                            (bb) a condominium or 
                                        duplex; or
                                            (cc) a manufactured housing 
                                        unit; or
                                    (II) a business that owns or 
                                operates a multifamily housing 
                                facility.
                    (C) Commercial and residential energy upgrades and 
                retrofits.--
                            (i) In general.--A State that receives a 
                        capitalization grant under the program may 
                        provide a loan to an eligible recipient 
                        described in clause (ii) to carry out upgrades 
                        or retrofits of building infrastructure and 
                        systems that--
                                    (I) are recommended in the 
                                commercial energy audit or residential 
                                energy audit, as applicable, completed 
                                for the building or facility of the 
                                eligible recipient;
                                    (II) satisfy at least 1 of the 
                                criteria in the Home Performance 
                                Assessment used in the Energy Star 
                                program established under section 324A 
                                of the Energy Policy and Conservation 
                                Act (42 U.S.C. 6294a);
                                    (III) improve, with respect to the 
                                building or facility of the eligible 
                                recipient--
                                            (aa) the physical comfort 
                                        of the building or facility 
                                        occupants;
                                            (bb) the energy efficiency 
                                        of the building or facility; or
                                            (cc) the quality of the air 
                                        in the building or facility; 
                                        and
                                    (IV)(aa) are lifecycle cost-
                                effective; and
                                    (bb)(AA) reduce the energy 
                                intensity of the building or facility 
                                of the eligible recipient; or
                                    (BB) improve the control and 
                                management of energy usage of the 
                                building or facility to reduce demand 
                                during peak times.
                            (ii) Eligible recipients.--An eligible 
                        recipient under clause (i) is an eligible 
                        recipient described in subparagraph (A)(iii) or 
                        (B)(iii) that--
                                    (I) has completed a commercial 
                                energy audit described in subparagraph 
                                (A) or a residential energy audit 
                                described in subparagraph (B) using a 
                                loan provided under the applicable 
                                subparagraph; or
                                    (II) has completed a commercial 
                                energy audit or residential energy 
                                audit that--
                                            (aa) was not funded by a 
                                        loan under this paragraph; and
                                            (bb)(AA) meets the 
                                        requirements for the applicable 
                                        audit under subparagraph (A) or 
                                        (B), as applicable; or
                                            (BB) the Secretary 
                                        determines is otherwise 
                                        satisfactory.
                            (iii) Loan term.--A loan provided under 
                        this subparagraph shall be required to be fully 
                        amortized by the earlier of--
                                    (I) the year in which the upgrades 
                                or retrofits carried out using the loan 
                                exceed their expected useful life; and
                                    (II) 15 years after those upgrades 
                                or retrofits are installed.
                    (D) Referral to qualified contractors.--Following 
                the completion of an audit under subparagraph (A) or 
                (B) by an eligible recipient of a loan under the 
                applicable subparagraph, the State may refer the 
                eligible recipient to a qualified contractor, as 
                determined by the State, to estimate--
                            (i) the upfront capital cost of each 
                        recommended upgrade; and
                            (ii) the total upfront capital cost of 
                        implementing all recommended upgrades.
                    (E) Loan recipients.--Each State providing loans 
                under this paragraph shall, to the maximum extent 
                practicable, provide loans to eligible recipients that 
                do not have access to private capital.
            (3) Grants and technical assistance.--
                    (A) In general.--A State that receives a 
                capitalization grant under the program may use not more 
                than 25 percent of the grant funds to provide grants or 
                technical assistance to eligible entities described in 
                subparagraph (B) to carry out the activities described 
                in subparagraphs (A), (B), and (C) of paragraph (2).
                    (B) Eligible entity.--An entity eligible for a 
                grant or technical assistance under subparagraph (A) 
                is--
                            (i) a business that--
                                    (I) is an eligible recipient 
                                described in paragraph (2)(A)(iii); and
                                    (II) has fewer than 500 employees; 
                                or
                            (ii) a low-income individual (as defined in 
                        section 3 of the Workforce Innovation and 
                        Opportunity Act (29 U.S.C. 3102)) that owns a 
                        residential building.
            (4) Administrative expenses.--A State that receives a 
        capitalization grant under the program may use not more than 10 
        percent of the grant funds for administrative expenses.
    (f) Coordination With Existing Programs.--A State receiving a 
capitalization grant under the program is encouraged to utilize and 
build on existing programs and infrastructure within the State that may 
aid the State in carrying out a revolving loan fund program.
    (g) Leveraging Private Capital.--A State receiving a capitalization 
grant under the program shall, to the maximum extent practicable, use 
the grant to leverage private capital.
    (h) Outreach.--The Secretary shall engage in outreach to inform 
States of the availability of capitalization grants under the program.
    (i) Davis-Bacon Compliance.--
            (1) In general.--Any laborer or mechanic employed by any 
        contractor or subcontractor in the performance of work on any 
        project funded by a grant under this section shall be paid 
        wages at rates not less than those prevailing on similar 
        construction in the locality as determined by the Secretary of 
        Labor under subchapter IV of chapter 31 of title 40, United 
        States Code (commonly referred to as the ``Davis-Bacon Act'').
            (2) Authority.--With respect to the labor standards 
        specified in paragraph (1), the Secretary of Labor shall have 
        the authority and functions set forth in Reorganization Plan 
        Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. App.) and section 
        3145 of title 40, United States Code.
    (j) Report.--Each State that receives a capitalization grant under 
the program shall, not later than 1 year after a grant is received, 
submit to the Secretary a report that describes--
            (1) the number of recipients to which the State has 
        distributed--
                    (A) loans for--
                            (i) commercial energy audits under 
                        subsection (e)(2)(A);
                            (ii) residential energy audits under 
                        subsection (e)(2)(B);
                            (iii) energy upgrades and retrofits under 
                        subsection (e)(2)(C); and
                    (B) grants under subsection (e)(3); and
            (2) the average capital cost of upgrades and retrofits 
        across all commercial energy audits and residential energy 
        audits that were conducted in the State using loans provided by 
        the State under subsection (e).
    (k) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary to carry out this section $250,000,000 
for each of fiscal years 2022 through 2026, to remain available until 
expended.

SEC. 4. ENERGY AUDITOR TRAINING GRANT PROGRAM.

    (a) Definitions.--In this section:
            (1) Covered certification.--The term ``covered 
        certification'' means any of the following certifications:
                    (A) The ASHRAE Building Energy Assessment 
                Professional certification.
                    (B) The Association of Energy Engineers Certified 
                Energy Auditor certification.
                    (C) The Building Performance Institute Home Energy 
                Professional Energy Auditor certification.
                    (D) The Residential Energy Services Network Home 
                Energy Rater certification.
                    (E) Any other third-party certification recognized 
                by the Department of Energy.
                    (F) Any third-party certification that the 
                Secretary determines is equivalent to the 
                certifications described in subparagraphs (A) through 
                (E).
            (2) Eligible state.--The term ``eligible State'' means a 
        State that--
                    (A) has a demonstrated need for assistance for 
                training energy auditors; and
                    (B) meets any additional criteria determined 
                necessary by the Secretary.
    (b) Establishment.--Under the State Energy Program, the Secretary 
shall establish a competitive grant program under which the Secretary 
shall award grants to eligible States to train individuals to conduct 
energy audits or surveys of commercial and residential buildings.
    (c) Applications.--
            (1) In general.--A State seeking a grant under subsection 
        (b) shall submit to the Secretary an application at such time, 
        in such manner, and containing such information as the 
        Secretary may require, including the energy auditor training 
        program plan described in paragraph (2).
            (2) Energy auditor training program plan.--An energy 
        auditor training program plan submitted with an application 
        under paragraph (1) shall include--
                    (A)(i) a proposed training curriculum for energy 
                audit trainees; and
                    (ii) an identification of the covered certification 
                that those trainees will receive on completion of that 
                training curriculum;
                    (B) the expected per-individual cost of training;
                    (C) a plan for connecting trainees with employment 
                opportunities; and
                    (D) any additional information required by the 
                Secretary.
    (d) Amount of Grant.--The amount of a grant awarded to an eligible 
State under subsection (b)--
            (1) shall be determined by the Secretary, taking into 
        account the population of the eligible State; and
            (2) shall not exceed $2,000,000 for any eligible State.
    (e) Use of Funds.--
            (1) In general.--An eligible State that receives a grant 
        under subsection (b) shall use the grant funds--
                    (A) to cover any cost associated with individuals 
                being trained or certified to conduct energy audits 
                by--
                            (i) the State; or
                            (ii) a State-certified third party training 
                        program; and
                    (B) subject to paragraph (2), to pay the wages of a 
                trainee during the period in which the trainee receives 
                training and certification.
            (2) Limitation.--Not more than 10 percent of grant funds 
        provided under subsection (b) to an eligible State may be used 
        for the purpose described in paragraph (1)(B).
    (f) Consultation.--In carrying out this section, the Secretary 
shall consult with the Secretary of Labor.
    (g) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $8,000,000 for each of fiscal 
years 2022 through 2026.
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