When you use an Award on a lower-tier award category, you should be 'refunded' the difference in ECL reduction for that character.
For example, if you have a Normal Award, and use it to create a Derro, that Derro will get a -1 ECL reduction.
Similarly, if you have a Major Award, and use it to create an Aquatic Elf, you'd get a -2 ECL reduction.
I think this would make up for people not wanting to 'waste' awards on a lower-tier race, and make things a little more attractive for the layman.