§6371g Allocation of grants

Summary

The Secretary must divide the money made available under section 6371f(b) each year for energy conservation project grants this way: 90% goes to states for projects and 10% is set aside for grants that can pay more than 50% of project costs under section 6371e(b)(2). Of the 90% for states, 80% is split by a rule that considers each State’s population, climate, and other factors. Ten percent is split by a rule that looks at fuel or energy availability, cost, and how much schools and hospitals use. If a State already received more than 50% of an energy audit cost, its yearly share is cut by that excess and that cut amount is reallocated to other States, but not back to the State that was reduced. No State can get more than 10% of the total amount given to all States in a year. Except for the District of Columbia, Puerto Rico, Guam, American Samoa, the Northern Mariana Islands, and the Virgin Islands, every State with an approved plan must receive at least 0.5% of the total State allocation that year for grants to the State and to schools and hospitals. The Secretary must set rules within 60 days after November 9, 1978, on how to allocate funds for preliminary energy audits and energy audits, and must also limit how much of a State’s allocation can be used for administrative costs. Any allocated funds not spent in a year can be reallocated the next year.