106 STAT. 2838 PUBLIC LAW 102-486—OCT. 24, 1992 (3) the term 'Hitilit/' means any person, State agency (including any municipsdity), or Federal agency, which sells electric or gas energy to retail customers, (b) GRANT PROGRAM. — (1) USE OF FUNDS.—The Secretary shall, to the extent funds are made available for such purpose, make grants to States which, consistent with State law, shall be used for the following purposes: (A) To promote, through appropriate institutions such as universities, nonprofit organizations. State and local government entities, technical centers, utilities, and trade organizations, the use of energy-efficient technologies in covered industries. (B) To establish programs to train individuals (on an industry-by -industry basis) in conducting process-oriented industrial assessments and to encourage the use of such trained assessors. (C) To assist utilities in developing, testing, and evaluating energy efficiency programs and technologies for industrial customers in covered industries. (2) CONSULTATION. —States receiving grants under this subsection shall consult with utilities and representatives of affected industries, as appropriate, in determining the most effective use of such funds consistent with the requirements of paragraph (1). (3) ELIGIBILITY CRITERIA. — Not later than 1 year after the date of the enactment of this Act, the Secretary shall establish eligibility criteria for grants made pursuant to this subsection. Such criteria shall require a State applying for a grant to demonstrate that such State— (A) pursuant to section 111(a) of the Public Utility and Regulatoiy Policies Act of 1978 (16 U.S.C. 2621(a)), has considered and made a determination regarding the implementation of the standards specified in paragraphs (7) and (8) of section 111(d) of such Act (with respect to integrated resources planning and investments in conservation and demand management); and (B) by legislation or regulation— (i) allows utilities to recover the costs prudently inciured in providing process-oriented mdustrial assessments; and (ii) encourages utilities to provide to covered industries— (I) process-oriented industrial assessments; and (II) financial incentives for implementing energy efficiency improvements. (4) ALLOCATION OF FUNDS. --Grants made pursuant to this subsection shall be allocated each fiscal year among States meeting the criteria specified in paragraph (3) who have submitted applications 60 days before the first day of such fiscal year. Such allocation shall be made in accordance with a formula to be prescribed by the Secretary based on each State's share of value added in industry (as determined by the Census of Manufacturers) as a percentieige of the value added by all such States.