Declares an intent to promote the development of sustainable energy resources, including new energy technologies, and to improve system reliability by establishing a fund that can be used to reduce the cost of deploying distributive generation projects in the state.

Establishes in the department a sustainable energy grant program to support sustainable energy projects in the state. The purpose of the program is to foster the growth, development, and commercialization of distributive generation projects and related enterprises and to stimulate demand for distributive generation sources that serve end use customers in this state.

Requires the department to establish a peer review committee to assist the department in matters related to the sustainable energy trust fund including, but not limited to, development of a comprehensive plan and expenditure of funds.

Requires the department to establish performance benchmarks against which the sustainable energy grant program will be evaluated. The grant program must be reviewed periodically by the department. The department must report annually to the appropriate standing committees of the legislature on grants awarded and as appropriate on program review conducted by the department.