Title 42The Public Health and WelfareRelease 119-73

§18831 Grants for energy efficiency improvements and renewable energy improvements at public school facilities

Title 42 › Chapter CHAPTER 162— - ENERGY INFRASTRUCTURE › Subchapter SUBCHAPTER V— - ENERGY EFFICIENCY AND BUILDING INFRASTRUCTURE › Part Part D— - Schools and Nonprofits › § 18831

Last updated Apr 6, 2026|Official source

Summary

Grants pay for energy and clean-vehicle upgrades at public schools. The Secretary gives money through a competition to groups led by one local school district working with at least one school and partners like nonprofits, businesses, or community groups. Key terms: "alternative fueled vehicle" — as defined in law; "alternative fueled vehicle infrastructure" — equipment to charge or fuel those vehicles; "eligible entity" — the school district-led group; "energy improvement" — work that cuts energy use or costs, improves health or indoor air, installs renewable energy, adds vehicle charging/fueling on school property, or buys/leases alternative fueled school vehicles; "high school" and "local educational agency" — as defined in law; "nonprofit organization" — certain tax-exempt groups. Applicants must submit a needs assessment, a work plan, cost estimates, and show they can carry out the work and track savings. Priority goes to projects with big repair needs, high shares of students on free or reduced-price lunch (or certain rural area codes 41–43), and projects that bring in private performance-contract funding. Grant funds must mostly go to the listed upgrades. Up to 5% may pay for maintenance and training, up to 3% for education curriculum, and some may pay for third-party audits. Contracts must be competitively bid and favor local businesses. The Secretary will publish guidance. Recipients must report on spending, savings, audits, and tracking like Energy Star or LEED. Congress authorized $500,000,000 for fiscal years 2022 through 2026.

Full Legal Text

Title 42, §18831

The Public Health and Welfare — Source: USLM XML via OLRC

(a)In this section:
(1)The term “alternative fueled vehicle” has the meaning given the term in section 13211 of this title.
(2)The term “alternative fueled vehicle infrastructure” means infrastructure used to charge or fuel an alternative fueled vehicle.
(3)The term “eligible entity” means a consortium of—
(A)1 local educational agency; and
(B)1 or more—
(i)schools;
(ii)nonprofit organizations that have the knowledge and capacity to partner and assist with energy improvements;
(iii)for-profit organizations that have the knowledge and capacity to partner and assist with energy improvements; or
(iv)community partners that have the knowledge and capacity to partner and assist with energy improvements.
(4)The term “energy improvement” means—
(A)any improvement, repair, or renovation to a school that results in a direct reduction in school energy costs, including improvements to the envelope, air conditioning system, ventilation system, heating system, domestic hot water heating system, compressed air system, distribution system, lighting system, power system, and controls of a building;
(B)any improvement, repair, or renovation to, or installation in, a school that—
(i)leads to an improvement in teacher and student health, including indoor air quality; and
(ii)achieves energy savings;
(C)any improvement, repair, or renovation to a school involving the installation of renewable energy technologies;
(D)the installation of alternative fueled vehicle infrastructure on school grounds for—
(i)exclusive use of school buses, school fleets, or students; or
(ii)the general public; and
(E)the purchase or lease of alternative fueled vehicles to be used by a school, including school buses, fleet vehicles, and other operational vehicles.
(5)The term “high school” has the meaning given the term in section 7801 of title 20.
(6)The term “local educational agency” has the meaning given the term in section 7801 of title 20.
(7)The term “nonprofit organization” means—
(A)an organization described in section 501(c)(3) of the Internal Revenue Code of 1986 and exempt from tax under section 501(a) of such Code; or
(B)a mutual or cooperative electric company described in section 501(c)(12) of such Code.
(8)The term “partnering local educational agency”, with respect to an eligible entity, means the local educational agency participating in the consortium of the eligible entity.
(b)The Secretary shall award competitive grants to eligible entities to make energy improvements in accordance with this section.
(c)(1)An eligible entity desiring a grant under this section shall submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require.
(2)The application submitted under paragraph (1) shall include each of the following:
(A)A needs assessment of the current condition of the school and school facilities that would receive the energy improvements if the application were approved.
(B)A draft work plan of the intended achievements of the eligible entity at the school.
(C)A description of the energy improvements that the eligible entity would carry out at the school if the application were approved.
(D)A description of the capacity of the eligible entity to provide services and comprehensive support to make the energy improvements referred to in subparagraph (C).
(E)An assessment of the expected needs of the eligible entity for operation and maintenance training funds, and a plan for use of those funds, if applicable.
(F)An assessment of the expected energy efficiency, energy savings, and safety benefits of the energy improvements.
(G)A cost estimate of the proposed energy improvements.
(H)An identification of other resources that are available to carry out the activities for which grant funds are requested under this section, including the availability of utility programs and public benefit funds.
(d)(1)In awarding grants under this section, the Secretary shall give priority to an eligible entity—
(A)that has renovation, repair, and improvement funding needs;
(B)(i)that, as determined by the Secretary, serves a high percentage of students, including students in a high school in accordance with paragraph (2), who are eligible for a free or reduced price lunch under the Richard B. Russell National School Lunch Act (42 U.S.C. 1751 et seq.); or
(ii)the partnering local educational agency of which is designated with a school district locale code of 41, 42, or 43, as determined by the National Center for Education Statistics in consultation with the Bureau of the Census; and
(C)that leverages private sector investment through energy-related performance contracting.
(2)In the case of students in a high school, the percentage of students eligible for a free or reduced price lunch described in paragraph (1)(B)(i) shall be calculated using data from the schools that feed into the high school.
(e)The competitive criteria used by the Secretary to award grants under this section shall include the following:
(1)The extent of the disparity between the fiscal capacity of the eligible entity to carry out energy improvements at school facilities and the needs of the partnering local educational agency for those energy improvements, including consideration of—
(A)the current and historic ability of the partnering local educational agency to raise funds for construction, renovation, modernization, and major repair projects for schools;
(B)the ability of the partnering local educational agency to issue bonds or receive other funds to support the current infrastructure needs of the partnering local educational agency for schools; and
(C)the bond rating of the partnering local educational agency.
(2)The likelihood that the partnering local educational agency or eligible entity will maintain, in good condition, any school and school facility that is the subject of improvements.
(3)The potential energy efficiency and safety benefits from the proposed energy improvements.
(f)(1)Except as provided in this subsection, an eligible entity receiving a grant under this section shall use the grant amounts only to make the energy improvements described in the application submitted by the eligible entity under subsection (c).
(2)An eligible entity receiving a grant under this section may use not more than 5 percent of the grant amounts for operation and maintenance training for energy efficiency and renewable energy improvements, such as maintenance staff and teacher training, education, and preventative maintenance training.
(3)An eligible entity receiving a grant under this section may use a portion of the grant amounts for a third-party investigation and analysis of the energy improvements carried out by the eligible entity, such as energy audits and existing building commissioning.
(4)An eligible entity receiving a grant under this section may use not more than 3 percent of the grant amounts to develop a continuing education curriculum relating to energy improvements.
(g)If an eligible entity receiving a grant under this section uses grant funds to carry out repair or renovation through a contract, the eligible entity shall be required to ensure that the contract process—
(1)through full and open competition, ensures the maximum practicable number of qualified bidders, including small, minority, and women-owned businesses; and
(2)gives priority to businesses located in, or resources common to, the State or geographical area in which the repair or renovation under the contract will be carried out.
(h)The Secretary shall develop and publish guidelines and best practices for activities carried out under this section.
(i)An eligible entity receiving a grant under this section shall submit to the Secretary, at such time as the Secretary may require, a report describing—
(1)the use of the grant funds for energy improvements;
(2)the estimated cost savings realized by those energy improvements;
(3)the results of any third-party investigation and analysis conducted relating to those energy improvements;
(4)the use of any utility programs and public benefit funds; and
(5)the use of performance tracking for energy improvements, such as—
(A)the Energy Star program established under section 6294a of this title; or
(B)the United States Green Building Council Leadership in Energy and Environmental Design (LEED) green building rating system for existing buildings.
(j)There is authorized to be appropriated to the Secretary to carry out this section $500,000,000 for the period of fiscal years 2022 through 2026.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

References in Text

The Internal Revenue Code of 1986, referred to in subsec. (a)(7), is classified generally to Title 26, Internal Revenue Code. The Richard B. Russell National School Lunch Act, referred to in subsec. (d)(1)(B)(i), is act June 4, 1946, ch. 281, 60 Stat. 230, which is classified generally to chapter 13 (§ 1751 et seq.) of this title. For complete classification of this Act to the Code, see

Short Title

note set out under section 1751 of this title and Tables.

Statutory Notes and Related Subsidiaries

Wage Rate RequirementsFor provisions relating to rates of wages to be paid to laborers and mechanics on projects for

Construction

, alteration, or repair work funded under div. D or an amendment by div. D of Pub. L. 117–58, including authority of Secretary of Labor, see section 18851 of this title.

Reference

Citations & Metadata

Citation

42 U.S.C. § 18831

Title 42The Public Health and Welfare

Last Updated

Apr 6, 2026

Release point: 119-73