Improving State and Local Government Access to Performance Contracting Act of 2024

Part D of title III of the Energy Policy and Conservation Act (42 U.S.C. 6321 et seq.) is amended by adding at the end the following:

In this section:

The term energy savings performance contract means a contract that provides for the performance of services for the design, acquisition, installation, testing, and, as appropriate, operation, maintenance, and repair, of an energy conservation measure, water conservation measure, resiliency-related measure, utility cost savings measure, or series of such measures at 1 or more locations.

The term State energy savings performance contracting program means a State program—

(A) to support the design and implementation of energy savings performance contracts, including, to the extent authorized by law, energy savings performance contracts entered into by State or local governments, public educational institutions, and other public, governmental, and quasigovernmental entities in the State;

(B) part of which is to support efficiency improvements in rural and underserved communities; and

(C) that may include—

(i) the development and provision of model, template, or standardized contracts, guidelines, procedures, manuals, and other related documents;

(ii) a State program for prequalification and certification of energy savings performance contractors;

(iii) provision of technical and administrative assistance; and

(iv) monitoring, tracking, and reporting of energy savings performance contracts, including identifying the number and value of contracts, energy savings, water savings, and financial performance.

The term water conservation measure means a measure that—

(A) improves the efficiency of water use;

(B) is life-cycle cost-effective; and

(C) involves water conservation, water recycling or reuse, more efficient treatment of wastewater or stormwater, improvements in operation or maintenance efficiencies, retrofit activities, or other related activities that do not occur at a Federal hydroelectric facility.

On request of the Governor of a State by not later than 1 year after the date of enactment of this section, the Secretary shall provide, subject to the availability of funds, financial assistance to the State energy agency (as defined in section 391) for the implementation, improvement, or expansion of a State energy savings performance contracting program.

Financial assistance provided to a State under subsection (b) shall be used to supplement, not supplant, any other Federal, State, or other funds made available to that State under—

(A) this part; or

(B) the weatherization assistance program established under part A of title IV of the Energy Conservation and Production Act (42 U.S.C. 6861 et seq.).

To the maximum extent practicable, a State receiving financial assistance under subsection (b) shall implement, improve, or expand a State energy savings performance contracting program by primarily using private financing, public financing, or any other source of Federal or non-Federal funds.

A State that receives financial assistance under subsection (b) but does not expend those funds within 5 years of receipt of the funds shall return the unexpended funds to the Secretary.

In providing financial assistance to States under subsection (b), the Secretary shall—

(1) to the maximum extent practicable, allocate funds made available for that purpose—

(A) in accordance with the formula described in section 420.11 of title 10, Code of Federal Regulations (as in effect on January 1, 2021); and

(B) during the fiscal year for which the allocation is made; and

(2) reallocate, to the maximum extent practicable, any funds returned under subsection (c)(3) in accordance with the formula described in paragraph (1)(A).

On request of a State agency, the Secretary shall provide information and technical assistance in the development and implementation of a State energy savings performance contracting program.

The Secretary, in consultation with States and the private sector, shall establish a national project facilitator certification program to expand the availability of individuals, including State and local government employees and independent private sector professionals, who are trained and certified to work on behalf of a State or local government to be project facilitators who will—

(A) ensure that a project carried out under an energy savings performance contract under a State energy savings performance contracting program achieves the energy cost savings and performance requirements set forth in the contract; and

(B) otherwise assist with the oversight of projects described in subparagraph (A).

In carrying out the program established under paragraph (1), the Secretary may—

(A) train and certify individuals as project facilitators described in paragraph (1);

(B) develop model criteria for the certification and training of individuals to become project facilitators described in paragraph (1); and

(C) transition, over a 4-year period, the training and certification activities of the Secretary described in subparagraph (A) to a nonprofit entity funded with fees generated through the certification process.

In addition to funds authorized to be appropriated under section 365(f), there is authorized to be appropriated to the Secretary to carry out this section (except for subsections (e) and (f)) $35,000,000 for each of fiscal years 2024 through 2028.

Of amounts made available to carry out the programs and activities of the Federal Energy Management Program of the Department of Energy each fiscal year, the Secretary shall use not more than $2,000,000 each fiscal year to carry out subsections (e) and (f).

Section 362(d)(5)(A) of the Energy Policy and Conservation Act (42 U.S.C. 6322(d)(5)(A)) is amended by inserting, including State energy savings performance contracting programs under section 367, after performance contracting programs.

The table of contents for the Energy Policy and Conservation Act (Public Law 94–163; 89 Stat. 872) is amended by inserting after the item relating to section 366 the following: