(a) Not less than 60 percent of the funds received pursuant to Section 25450.1 shall be used to provide cost-effective energy efficiency and conservation grants to cities with a population of less than 35,000 and counties with a population of less than 200,000, and be prioritized based on cost-effective energy efficiency. (b) The remaining funds received pursuant to Section 25450.1 shall be used to provide cost-effective energy efficiency and conservation grants to eligible entities consistent with the Energy Independence and Security Act of 2007 (42 U.S.C. Sec. 17001 et seq.), and be prioritized based on cost-effective energy efficiency.