Title 42, The Public Health and WelfareRelease 119-110

§6371e Grants for Project Costs and Technical Assistance

Title 42 › CHAPTER 77 — ENERGY CONSERVATION › SUBCHAPTER III — IMPROVING ENERGY EFFICIENCY › Part E — Energy Conservation Program for Schools and Hospitals › § 6371e

Last updated Sep 22, 2026|Official source

Summary

The Secretary can give grants to schools and hospitals to pay for approved energy-saving projects. Normally the grant can cover up to 50% of a project's cost. The rest can come from non-Federal sources, including loan programs or performance contracts, even if ownership of equipment does not transfer until after the grant ends. If a project meets the hardship rules under section 6371a(d), the Secretary may approve a grant that pays up to 90% of the cost, using funds from section 6371g(a)(2). Grants in each State must follow the allocation rules in section 6371g. The Secretary may also give grants to States to pay for technical help. In each State, at least 30% of project funds must go to schools and at least 30% to hospitals. A State may use up to 100% of its yearly funds for program and technical help and up to 50% for marketing and other costs to leverage non-Federal money if the State has a plan under section 6371c and certifies that no more than 15% of all Federal and non‑Federal funds used that year will be spent on those help and marketing costs. States may run continuous application and award processes under rules the Secretary creates.

Full Legal Text

Title 42, §6371e

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

(a)Authorization of Secretary; project costs
The Secretary may make grants to schools and hospitals for carrying out energy conservation projects the applications for which have been approved under section 6371d of this title.
(b)Restrictions on use of funds
(1)Except as provided in paragraph (2), amounts made available for purposes of this section (together with any amounts available for such purposes from other Federal sources) may not be used to pay more than 50 percent of the costs of any energy conservation project. The non-Federal share of the costs of any such energy conservation project may be provided by using programs of innovative financing for energy conservation projects (including, but not limited to, loan programs and performance contracting), even if, pursuant to such financing, clear title to the equipment does not pass to the school or hospital until after the grant is completed.
(2)Amounts made available for purposes of this section (together with any amounts available for such purposes from other Federal sources) may be used to pay not to exceed 90 percent of the costs of an energy conservation project if the Secretary determines that a proj­ect meets the hardship criteria of section 6371a(d) of this title. Grants made under this paragraph shall be from the funds provided under section 6371g(a)(2) of this title.
(c)Allocation requirements
Grants made under this section in any State in any year shall be made in accordance with the requirements contained in section 6371g of this title.
(d)Technical assistance costs
(1)The Secretary may make grants to States for paying technical assistance costs. Schools in any State shall not be allocated less than 30 percent of the funds for energy conservation projects within such State and hospitals in any State shall not be allocated less than 30 percent of such funds.
(2)A State may utilize up to 100 percent of the funds provided by the Secretary under this part for any fiscal year for program and technical assistance and up to 50 percent of such funds for marketing and other costs associated with leveraging of non-Federal funds for carrying out this part and may administer a continuous and consecutive application and award procedure for providing program and technical assistance under this part in accordance with regulations that the Secretary shall establish, if the State—
(A)has adopted a State plan in accordance with section 6371c of this title, the administration of which is in accordance with applicable regulations; and
(B)certifies to the Secretary that not more than 15 percent of the aggregate amount of Federal and non-Federal funds used by the State to provide program and technical assistance, implement energy conservation measures, and otherwise carry out a program pursuant to this part for the fiscal year concerned will be expended for program and technical assistance and for marketing and other costs associated with leveraging of non-Federal funds for such program.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Amendments

1990—Subsec. (b)(1). Pub. L. 101–440, § 6(a), inserted at end “The non-Federal share of the costs of any such energy conservation project may be provided by using programs of innovative financing for energy conservation projects (including, but not limited to, loan programs and performance contracting), even if, pursuant to such financing, clear title to the equipment does not pass to the school or hospital until after the grant is completed.” Subsec. (d). Pub. L. 101–440, § 6(d), designated existing provisions as par. (1) and added par. (2). Subsec. (e). Pub. L. 101–440, § 6(c), struck out subsec. (e) which prohibited funds for buildings used principally for administration.

Reference

Citations & Metadata

Citation

42 U.S.C. § 6371e

Title 42, The Public Health and Welfare

Last Updated

Sep 22, 2026

Release point: 119-110