DEMONSTRATION AUTHORITY; ANNUAL GRANTS.

SEC. 406. DEMONSTRATION AUTHORITY; ANNUAL GRANTS. (a) Demonstration Authority.—If the Secretary approves an application to conduct a demonstration project under this title, the Secretary shall, not later than 10 months after the date of enactment of this title, authorize the applicant to conduct the project for 5 project years in accordance with the approved application and the requirements of this title. (b) Grant Authority.—For each project year of a demonstration project conducted under this title, the Secretary may make a grant to the qualified entity authorized to conduct the project. In making such a grant, the Secretary shall make the grant on the first day of the project year in an amount not to exceed the lesser of— (1) the aggregate amount of funds committed as matching contributions from non-Federal public or private sector sources; or (2) $1,000,000.