§ 6349 — Process-oriented Industrial Energy Efficiency

(a) For the purposes of this section— (1) the term “covered industry” means the food and food products industry, lumber and wood products industry, petroleum and coal products industry, and all other manufacturing industries specified in Standard Industrial Classification Codes 20 through 39 (or successor classification codes); (2) the term “process-oriented industrial assessment” means— (A) the identification of opportunities in the production process (from the introduction of materials to final packaging of the product for shipping) for— (i) improving energy efficiency; (ii) reducing environmental impact; and (iii) designing technological improvements to increase competitiveness and achieve cost-effective product quality enhancement; (B) the identification of opportunities for improving the energy efficiency of lighting, heating, ventilation, air conditioning, and the associated building envelope; and (C) the identification of cost-effective opportunities for using renewable energy technology in the production process and in the systems described in subparagraph (B); and (3) the term “utility” means any person, State agency (including any municipality), or Federal agency, which sells electric or gas energy to retail customers. (1) The Secretary shall, to the extent funds are made available for such purpose, make grants to States which, consistent with State law, shall be used for the following purposes: (A) To promote, through appropriate institutions such as universities, nonprofit organizations, State and local government entities, technical centers, utilities, and trade organizations, the use of energy-efficient technologies in covered industries. (B) To establish programs to train individuals (on an industry-by-industry basis) in conducting process-oriented industrial assessments and to encourage the use of such trained assessors. (C) To assist utilities in developing, testing, and evaluating energy efficiency programs and technologies for industrial customers in covered industries. (2) States receiving grants under this subsection shall consult with utilities and representatives of affected industries, as appropriate, in determining the most effective use of such funds consistent with the requirements of paragraph (1). (3) Not later than 1 year after October 24, 1992, the Secretary shall establish eligibility criteria for grants made pursuant to this subsection. Such criteria shall require a State applying for a grant to demonstrate that such State— (A) pursuant to section 2621(a) of title 16, has considered and made a determination regarding the implementation of the standards specified in paragraphs (7) and (8) of section 2621(d) of title 16 (with respect to integrated resources planning and investments in conservation and demand management); and (B) by legislation or regulation— (i) allows utilities to recover the costs prudently incurred in providing process-oriented industrial assessments; and (ii) encourages utilities to provide to covered industries— (I) process-oriented industrial assessments; and (II) financial incentives for implementing energy efficiency improvements. (4) Grants made pursuant to this subsection shall be allocated each fiscal year among States meeting the criteria specified in paragraph (3) who have submitted applications 60 days before the first day of such fiscal year. Such allocation shall be made in accordance with a formula to be prescribed by the Secretary based on each State’s share of value added in industry (as determined by the Census of Manufacturers) as a percentage of the value added by all such States. (5) A grant under this subsection may continue to be renewed after 2 consecutive fiscal years during which a State receives a grant under this subsection, subject to the availability of funds, if— (A) the Secretary determines that the funds made available to the State during the previous 2 years were used in a manner required under paragraph (1); and (B) such State demonstrates, in a manner prescribed by the Secretary, utility participation in programs established pursuant to this subsection. (6) In carrying out the functions described in paragraph (1), States shall, to the extent practicable, coordinate such functions with activities and programs conducted by the Energy Analysis and Diagnostic Centers of the Department of Energy and the Manufacturing Technology Centers of the National Institute of Standards and Technology. (1) Not later than 2 years after October 24, 1992, the Secretary shall, by contract with nonprofit organizations with expertise in process-oriented industrial energy efficiency technologies, establish and, as appropriate, update criteria for conducting process-oriented industrial assessments on an industry-by-industry basis. Such criteria shall be made available to State and local government, public utility commissions, utilities, representatives of affected process-oriented industries, and other interested parties. (2) The Secretary shall establish a nationwide directory of organizations offering industrial energy efficiency assessments, technologies, and services consistent with the purposes of this section. Such directory shall be made available to State governments, public utility commissions, utilities, industry representatives, and other interested parties. (3) The Secretary shall establish an annual award program to recognize utilities operating outstanding or innovative industrial energy efficiency technology assistance programs. (4) In order to further the purposes of this section, the Secretary shall convene annual meetings of parties interested in process-oriented industrial assessments, including representatives of State government, public utility commissions, utilities, and affected process-oriented industries. (d) There are authorized to be appropriated such sums as may be necessary to carry out the purposes of this section.