American Jobs in Energy Manufacturing Act of 2021

II 117TH CONGRESS 1ST SESSION S. 622 To amend the Internal Revenue Code of 1986 to enhance the qualifying advanced energy project credit. IN THE SENATE OF THE UNITED STATES MARCH 9, 2021 Mr. MANCHIN (for himself, Ms. STABENOW, and Mr. DAINES) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend the Internal Revenue Code of 1986 to enhance the qualifying advanced energy project credit. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘American Jobs in En- 4 ergy Manufacturing Act of 2021’’. 5 SEC. 2. ADJUSTMENT OF QUALIFYING ADVANCED ENERGY 6 PROJECT CREDIT. 7 (a) IN GENERAL.—Section 48C of the Internal Rev- 8 enue Code of 1986 is amended— 9 (1) in subsection (c)(1)— 10 VerDate Sep 11 2014 21:53 Apr 03, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S622.IS S622 pbinns on DSKJLVW7X2PROD with BILLS 2 •S 622 IS (A) in subparagraph (A)— 1 (i) by inserting ‘‘, any portion of the 2 qualified investment of which is certified 3 by the Secretary under subsection (d) as 4 eligible for a credit under this section’’ 5 after ‘‘means a project’’, 6 (ii) in clause (i)— 7 (I) by striking ‘‘a manufacturing 8 facility for the production of’’ and in- 9 serting ‘‘an industrial or manufac- 10 turing facility for the production or 11 recycling of’’, 12 (II) in clause (I), by inserting 13 ‘‘water,’’ after ‘‘sun,’’, 14 (III) in clause (II), by striking 15 ‘‘an energy storage system for use 16 with electric or hybrid-electric motor 17 vehicles’’ and inserting ‘‘energy stor- 18 age systems and components’’, 19 (IV) in clause (III), by striking 20 ‘‘grids to support the transmission of 21 intermittent sources of renewable en- 22 ergy, including storage of such en- 23 ergy’’ and inserting ‘‘grid moderniza- 24 tion equipment or components’’, 25 VerDate Sep 11 2014 21:53 Apr 03, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S622.IS S622 pbinns on DSKJLVW7X2PROD with BILLS 3 •S 622 IS (V) in subclause (IV), by striking 1 ‘‘and sequester carbon dioxide emis- 2 sions’’ and inserting ‘‘, remove, use, 3 or sequester carbon oxide emissions’’, 4 (VI) by striking subclause (V) 5 and inserting the following: 6 ‘‘(V) equipment designed to re- 7 fine, electrolyze, or blend any fuel, 8 chemical, or product which is— 9 ‘‘(aa) renewable, or 10 ‘‘(bb) low-carbon and low- 11 emission,’’, 12 (VII) by striking subclause (VI), 13 (VIII) by redesignating subclause 14 (VII) as subclause (IX), 15 (IX) by inserting after subclause 16 (V) the following new subclauses: 17 ‘‘(VI) property designed to 18 produce energy conservation tech- 19 nologies (including residential, com- 20 mercial, and industrial applications), 21 ‘‘(VII) light-, medium-, or heavy- 22 duty electric or fuel cell vehicles, as 23 well as— 24 VerDate Sep 11 2014 21:53 Apr 03, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S622.IS S622 pbinns on DSKJLVW7X2PROD with BILLS 4 •S 622 IS ‘‘(aa) technologies, compo- 1 nents, or materials for such vehi- 2 cles, and 3 ‘‘(bb) associated charging or 4 refueling infrastructure, 5 ‘‘(VIII) hybrid vehicles with a 6 gross vehicle weight rating of not less 7 than 14,000 pounds, as well as tech- 8 nologies, components, or materials for 9 such vehicles, or’’, and 10 (X) in subclause (IX), as so re- 11 designated, by striking ‘‘and’’ at the 12 end and inserting ‘‘or’’, and 13 (iii) by striking clause (ii) and insert- 14 ing the following: 15 ‘‘(ii) which re-equips an industrial or 16 manufacturing facility with equipment de- 17 signed to reduce its greenhouse gas emis- 18 sions well below current best practices 19 through the installation of— 20 ‘‘(I) low- or zero-carbon process 21 heat systems, 22 ‘‘(II) carbon capture, transport, 23 utilization and storage systems, 24 VerDate Sep 11 2014 21:53 Apr 03, 2021 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S622.IS S622 pbinns on DSKJLVW7X2PROD with BILLS 5 •S 622 IS ‘‘(III) energy efficiency and re- 1 duction in waste from industrial proc- 2 esses, or 3 ‘‘(IV) any industrial technology 4 which significantly reduces greenhouse 5 gas emissions, as determined by the 6 Secretary.’’. 7 (B) by redesignating subparagraph (B) as 8 subparagraph (C), and 9 (C) by inserting after subparagraph (A) 10 the following new subparagraph: 11 ‘‘(B) ADDITIONAL QUALIFYING ADVANCED 12 ENERGY PROJECTS.—The term ‘qualifying ad- 13 vanced energy project’ shall also include any 14 project described in subparagraph (A) which is 15 located in a census tract— 16 ‘‘(i) which, prior to the date of enact- 17 ment of the American Jobs in Energy 18 Manufacturing Act of 2021, had no 19 projects which received a certification and 20 allocation of credits under subsection (d), 21 and 22 ‘‘(ii)(I) in which, after December 31, 23 1999, a coal mine has closed, 24 VerDate Sep 11 2014 21:53 Apr 03, 2021 Jkt 019200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S622.IS S622 pbinns on DSKJLVW7X2PROD with BILLS 6 •S 622 IS ‘‘(II) in which, after December 31, 1 2009, a coal-fired electric generating unit 2 has been retired, or 3 ‘‘(III) which is immediately adjacent 4 to a census tract described in subclause (I) 5 or (II).’’, 6 (2) in subsection (d)— 7 (A) in paragraph (1)— 8 (i) in subparagraph (A), by striking 9 ‘‘this section’’ and inserting ‘‘the American 10 Jobs in Energy Manufacturing Act of 11 2021’’, and 12 (ii) by striking subparagraph (B) and 13 inserting the following: 14 ‘‘(B) LIMITATIONS.— 15 ‘‘(i) INITIAL ALLOCATION.—The total 16 amount of credits that may be allocated 17 under the program prior to the date of en- 18 actment of the American Jobs in Energy 19 Manufacturing Act of 2021 shall not ex- 20 ceed $2,300,000,000. 21 ‘‘(ii) ADDITIONAL ALLOCATION.—The 22 total amount of credits that may be allo- 23 cated under the program on or after to the 24 date of enactment of the American Jobs in 25 VerDate Sep 11 2014 21:53 Apr 03, 2021 Jkt 019200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S622.IS S622 pbinns on DSKJLVW7X2PROD with BILLS 7 •S 622 IS Energy Manufacturing Act of 2021 shall 1 not exceed $8,000,000,000, of which not 2 greater than $4,000,000,000 may be allo- 3 cated to projects which are not located in 4 a census tract described in subparagraph 5 (B) of subsection (c)(1).’’, 6 (B) in paragraph (2)— 7 (i) in subparagraph (A), by striking 8 ‘‘2-year’’ and inserting ‘‘3-year’’, 9 (ii) in subparagraph (B)— 10 (I) by striking ‘‘1 year’’ and in- 11 serting ‘‘18 months’’, and 12 (II) by adding at the end the fol- 13 lowing new sentence: ‘‘Not later than 14 180 days after the date on which such 15 evidence was provided by the appli- 16 cant, the Secretary shall determine 17 whether the requirements of the cer- 18 tification have been met.’’, and 19 (iii) by adding at the end the fol- 20 lowing new subparagraph: 21 ‘‘(D) LOCATION OF PROJECT.—In the case 22 of an applicant which receives a certification, if 23 the Secretary determines that the project has 24 been placed in service at a location which is ma- 25 VerDate Sep 11 2014 21:53 Apr 03, 2021 Jkt 019200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S622.IS S622 pbinns on DSKJLVW7X2PROD with BILLS 8 •S 622 IS terially different than the location specified in 1 the application for such project, the certifi- 2 cation shall no longer be valid.’’, 3 (C) in paragraph (3)— 4 (i) by striking subparagraph (A) and 5 inserting the following: 6 ‘‘(A) shall take into consideration only 7 those projects— 8 ‘‘(i) where there is a reasonable expec- 9 tation of commercial viability, and 10 ‘‘(ii) which will ensure laborers and 11 mechanics employed by contractors and 12 subcontractors in the performance of any 13 qualifying advanced energy project shall be 14 paid wages at rates not less than the pre- 15 vailing rates on projects of a similar char- 16 acter in the locality as determined by the 17 Secretary of Labor, in accordance with 18 subchapter IV of chapter 31 of title 40, 19 United States Code, and’’, and 20 (ii) in subparagraph (B)— 21 (I) by striking clauses (i) and (ii) 22 and inserting the following: 23 ‘‘(i) will provide the greatest net im- 24 pact in avoiding or reducing anthropogenic 25 VerDate Sep 11 2014 21:53 Apr 03, 2021 Jkt 019200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S622.IS S622 pbinns on DSKJLVW7X2PROD with BILLS 9 •S 622 IS emissions of greenhouse gases (or, in the 1 case of a project described in subsection 2 (c)(1)(A)(ii), will provide the greatest re- 3 duction of greenhouse gas emissions as 4 compared to current best practices), 5 ‘‘(ii) will provide the greatest domestic 6 job creation (both direct and indirect) dur- 7 ing the credit period,’’, 8 (II) by redesignating clauses (iii) 9 through (v) as clauses (iv) through 10 (vi), respectively, and 11 (III) by inserting after clause (ii) 12 the following new clause: 13 ‘‘(iii) will provide the greatest job cre- 14 ation within the vicinity of the project, par- 15 ticularly with respect to— 16 ‘‘(I) low-income communities (as 17 described in section 45D(e)), and 18 ‘‘(II) dislocated workers who 19 were previously employed in manufac- 20 turing, coal power plants, or coal min- 21 ing,’’, and 22 (D) in paragraph (4)— 23 (i) by striking subparagraph (A) and 24 inserting the following: 25 VerDate Sep 11 2014 21:53 Apr 03, 2021 Jkt 019200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S622.IS S622 pbinns on DSKJLVW7X2PROD with BILLS 10 •S 622 IS ‘‘(A) REVIEW AND REPORT.—Not later 1 than 4 years after the date of enactment of the 2 American Jobs in Energy Manufacturing Act of 3 2021, the Secretary shall— 4 ‘‘(i) review the credits allocated under 5 this section as of such date, and 6 ‘‘(ii) submit a report regarding the al- 7 location of such credits to— 8 ‘‘(I) the Committee on Finance 9 and the Committee on Energy and 10 Natural Resources of the Senate, and 11 ‘‘(II) the Committee on Ways 12 and Means and the Committee on En- 13 ergy and Commerce of the House of 14 Representatives.’’, and 15 (ii) by adding at the end the following 16 new subparagraph: 17 ‘‘(D) SPECIAL RULE.—For purposes of re- 18 allocating credits pursuant to this paragraph, 19 the limitation under paragraph (1)(B)(ii) with 20 respect to allocation of credits to projects which 21 are not located in a census tract described in 22 subparagraph (B) of subsection (c)(1) shall not 23 apply.’’, 24 VerDate Sep 11 2014 21:53 Apr 03, 2021 Jkt 019200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S622.IS S622 pbinns on DSKJLVW7X2PROD with BILLS 11 •S 622 IS (3) in subsection (e), by inserting ‘‘45Q,’’ after 1 ‘‘section’’, and 2 (4) by adding at the end the following new sub- 3 section: 4 ‘‘(f) TECHNICAL ASSISTANCE.—For purposes of as- 5 sisting with applications for certification under subsection 6 (d), the Secretary of Energy shall provide technical assist- 7 ance to any State (or political subdivision thereof), tribe, 8 or economic development organization which, prior to the 9 date of enactment of the American Jobs in Energy Manu- 10 facturing Act of 2021— 11 ‘‘(1) had no applicants for certification under 12 such subsection, or 13 ‘‘(2) had less than 2 qualifying advanced energy 14 projects which received an allocation of credits under 15 such subsection.’’. 16 (b) AUTHORIZATION OF APPROPRIATIONS.—To carry 17 out subsection (f) of section 48C of the Internal Revenue 18 Code of 1986 (as added by subsection (a)(4)), there is au- 19 thorized to be appropriated to the State Energy Program 20 of the Department of Energy, out of moneys in the Treas- 21 ury not otherwise appropriated, $500,000, to remain avail- 22 able until expended. 23 VerDate Sep 11 2014 21:53 Apr 03, 2021 Jkt 019200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\S622.IS S622 pbinns on DSKJLVW7X2PROD with BILLS 12 •S 622 IS (c) EFFECTIVE DATE.—The amendments made by 1 this section shall apply to property placed in service after 2 December 31, 2021. 3 Æ VerDate Sep 11 2014 21:53 Apr 03, 2021 Jkt 019200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6301 E:\BILLS\S622.IS S622 pbinns on DSKJLVW7X2PROD with BILLS