INSULAR AREAS ENERGY ASSISTANCE PROGRAM.

SEC. 2701. INSULAR AREAS ENERGY ASSISTANCE PROGRAM. Section 604 of the Act entitled “An Act to authorize appropriations for certain insular areas of the United States, and for other purposes”, Public Law 96–597, as amended by Public Law 98–213 (48 U.S.C. 1492), is amended by adding at the end the following new subsection: 106 STAT. 3119 “(g) Financial Assistance.— (1) The Secretary of Energy may grant financial assistance, not to exceed $2,000,000 annually, to insular area governments or private sector persons working in cooperation with insular area governments to carry out projects to evaluate the feasibility of, develop options for, and encourage the adoption of energy efficiency and renewable energy measures which reduce the dependency of the insular areas on imported fuels, improve the quality of the environment, and promote development in the insular areas. “(2) Any applicant for financial assistance under this subsection must evidence coordination and cooperation with, and support from, the affected local energy institutions. “(3) In determining the amount of financial assistance to be provided for a proposed project, the Secretary shall consider— “(A) whether the measure will reduce the relative dependence of the insular area on imported fuels; “(B) the ease and costs of operation and maintenance of any facilities contemplated as a part of the project; “(C) whether the project will rely on the use of conservation measures or indigenous, renewable energy resources that were identified in the 1982 Territorial Energy Assessment or that are identified by the Secretary as consistent with the purposes of this subsection; “(D) whether the measure will contribute significantly to development and the quality of the environment in the insular area; and “(E) any other factors which the Secretary may determine to be relevant to a particular project. “(4) Notwithstanding the requirements of section 501(d) of Public Law 95–134 (48 U.S.C. 1469a(d)), the Secretary shall require at least 20 percent of the costs of any project under this subsection to be provided from non-Federal sources. Such cost sharing may be in the form of in-kind services, donated equipment, or any combination thereof. “(5) For the purposes of this subsection— “(A) the term ‘insular area’ means American Samoa, the Commonwealth of the Northern Mariana Islands, the Commonwealth of Puerto Rico, the Federated States of Micronesia, Guam, the Republic of the Marshall Islands, the Republic of Palau, and the virgin Islands; and “(B) the term ‘1982 Territorial Energy Assessment’ means the comprehensive energy plan prepared by the Secretary of Energy pursuant to subsection (c).”.