123STA T . 1 47PUBLIC LA W 111 –5—FE B. 17 , 2 0 0 9authoriz atio np ro v i de din s e c tion 365(f) of such A ct on ly if the g overnor of the recipient S tate notifies the Secretary of E nergy in w riting that the governor has o b tained necessary assurances that each of the following will occur
( 1 ) T he applicable State regulatory authority will see k to i m plement , in appropriate proceedings for each electric and gas utility, with respect to which the State regulatory authority has ratemaking authority, a general policy that ensures that utility financial incentives are aligned with helping their cus - tomers use energy more efficiently and that provide timely cost recovery and a timely earnings opportunity for utilities associated with cost-effective measurable and verifiable effi- ciency savings, in a way that sustains or enhances utility customers ’ incentives to use energy more efficiently . ( 2 ) The State, or the applicable units of local government that have authority to adopt building codes, will implement the following: (A) A building energy code (or codes) for residential buildings that meets or e x ceeds the most recently published I nternational Energy C onservation Code, or achieves e q uivalent or greater energy savings. ( B ) A building energy code (or codes) for commercial buildings throughout the State that meets or exceeds the A N SI / AS HR AE/IESNA Standard 90 .1 – 200 7 , or achieves equivalent or greater energy savings. (C) A plan for the j urisdiction achieving compliance with the building energy code or codes described in sub- paragraphs (A) and (B) within 8 years of the date of enact- ment of this Act in at least 90 percent of new and renovated residential and commercial building space. Such plan shall include active training and enforcement programs and measurement of the rate of compliance each year. (3) The State will to the extent practicable prioritize the grants toward funding energy efficiency and renewable energy programs, including — (A) the expansion of existing energy efficiency pro- grams approved by the State or the appropriate regulatory authority, including energy efficiency retrofits of buildings and industrial facilities, that are funded— (i) by the State
or (ii) through rates under the oversight of the applicable regulatory authority, to the extent applicable; (B) the expansion of existing programs, approved by the State or the appropriate regulatory authority, to sup- port renewable energy projects and deployment activities, including programs operated by entities which have the authority and capability to manage and distribute grants, loans, performance incentives, and other forms of financial assistance; and (C) cooperation and joint activities between States to advance more efficient and effective use of this funding to support the priorities described in this paragraph. (b) S TA T EM AT CH .—The State cost share requirement under the item relating to ‘ ‘ D epartment of Energy; Energy Conservation’’ in title II of the Department of the Interior and Related Agencies Deadlin e .
