Legislation introduced in the United States Senate would
establish a program offering as much as $50 million per year to
assist nonprofit organizations wishing to improve the energy
efficiency of their buildings.
The Nonprofit Energy Efficiency Act, introduced by
Senators Amy Klobuchar (D-Minnesota) and John Hoeven (R-North
Dakota), calls for the Secretary of Energy to allot $50 million for
each of fiscal years 2013 through 2016 to a grant fund for the
purpose of supporting nonprofit organizations that retrofit their
buildings with energy-efficient improvements. Under the proposed
law, an energy-efficient improvement is one that results in the
reduction in demand by the nonprofit organization for energy or
fuel supplied from outside the nonprofit organization's
building.
The legislation contemplates that buildings that might be eligible
for federal support include hospitals, youth centers, schools,
social-welfare program facilities, houses of worship, as well as
other nonresidential and noncommercial structures. Each grant
awarded under the legislation would be capped at 50% of the cost of
the improvement, up to $200,000.
Under the proposed legislation, nonprofit organizations would be
required to submit funding applications to the Secretary of Energy.
Awards would be granted based on performance-based criteria adopted
by the Secretary of Energy, including the cost-effectiveness of the
improvement and the nonprofit's plan for evaluating, measuring
and verifying its energy savings.
The Nonprofit Energy Efficiency Act is the latest example of a
bipartisan effort on the part of Senators Klobuchar and Hoeven to
work together to promote energy independence.
Foley Hoag will continue to closely monitor the Nonprofit Energy
Efficiency Act. We are available to advise nonprofit organizations
that may wish to apply for grant funds should the legislation
become law.
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