ATVM Future Act

I 117TH CONGRESS 1ST SESSION H. R. 2308 To revise the advanced technology vehicles manufacturing incentive program, and for other purposes. IN THE HOUSE OF REPRESENTATIVES APRIL 1, 2021 Mrs. DINGELL (for herself and Ms. BROWNLEY) introduced the following bill; which was referred to the Committee on Energy and Commerce A BILL To revise the advanced technology vehicles manufacturing incentive program, and for other purposes. 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 ‘‘Advanced Technology 4 Vehicles Manufacturing Future Act of 2021’’ or the 5 ‘‘ATVM Future Act’’. 6 SEC. 2. ADVANCED TECHNOLOGY VEHICLES MANUFAC- 7 TURING INCENTIVE PROGRAM. 8 Section 136 of the Energy Independence and Security 9 Act of 2007 (42 U.S.C. 17013) is amended— 10 VerDate Sep 11 2014 01:44 May 26, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H2308.IH H2308 pbinns on DSKJLVW7X2PROD with BILLS 2 •HR 2308 IH (1) in subsection (a)— 1 (A) by amending paragraph (1) to read as 2 follows: 3 ‘‘(1) ADVANCED TECHNOLOGY VEHICLE.—The 4 term ‘advanced technology vehicle’ means— 5 ‘‘(A) an ultra efficient vehicle; 6 ‘‘(B) a light-duty vehicle or medium-duty 7 passenger vehicle that— 8 ‘‘(i) meets the Bin 160 Tier III emis- 9 sion standard established in regulations 10 issued by the Administrator of the Envi- 11 ronmental Protection Agency under section 12 202(i) of the Clean Air Act (42 U.S.C. 13 7521(i)), or a lower-numbered Bin emis- 14 sion standard; 15 ‘‘(ii) meets any new emission standard 16 in effect for fine particulate matter pre- 17 scribed by the Administrator under that 18 Act (42 U.S.C. 7401 et seq.); and 19 ‘‘(iii) either— 20 ‘‘(I) complies with the applicable 21 regulatory standard for emissions of 22 greenhouse gases for model year 2027 23 or later; or 24 VerDate Sep 11 2014 01:44 May 26, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H2308.IH H2308 pbinns on DSKJLVW7X2PROD with BILLS 3 •HR 2308 IH ‘‘(II) emits zero emissions of 1 greenhouse gases; or 2 ‘‘(C) a heavy-duty vehicle (excluding a me- 3 dium-duty passenger vehicle) that— 4 ‘‘(i) demonstrates achievement below 5 the applicable regulatory standards for 6 emissions of greenhouse gases for model 7 year 2027 vehicles promulgated by the Ad- 8 ministrator on October 25, 2016 (81 Fed. 9 Reg. 73478); 10 ‘‘(ii) complies with the applicable reg- 11 ulatory standard for emissions of green- 12 house gases for model year 2030 or later; 13 or 14 ‘‘(iii) emits zero emissions of green- 15 house gases.’’; 16 (B) by striking paragraph (2) and redesig- 17 nating paragraph (3) as paragraph (2); 18 (C) by striking paragraph (4) and insert- 19 ing the following: 20 ‘‘(3) QUALIFYING COMPONENT.—The term 21 ‘qualifying component’ means a material, technology, 22 component, system, or subsystem in an advanced 23 technology vehicle, including an ultra-efficient com- 24 ponent. 25 VerDate Sep 11 2014 01:44 May 26, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H2308.IH H2308 pbinns on DSKJLVW7X2PROD with BILLS 4 •HR 2308 IH ‘‘(4) ULTRA-EFFICIENT COMPONENT.—The 1 term ‘ultra-efficient component’ means— 2 ‘‘(A) a component of an ultra efficient ve- 3 hicle; 4 ‘‘(B) fuel cell technology; 5 ‘‘(C) battery technology, including a bat- 6 tery cell, battery, battery management system, 7 or thermal control system; 8 ‘‘(D) an automotive semiconductor or com- 9 puter; 10 ‘‘(E) an electric motor, axle, or component; 11 and 12 ‘‘(F) an advanced lightweight, high- 13 strength, or high-performance material.’’; and 14 (D) in paragraph (5)— 15 (i) in subparagraph (B), by striking 16 ‘‘or’’ at the end; 17 (ii) in subparagraph (C), by striking 18 the period at the end and inserting ‘‘; or’’; 19 and 20 (iii) by adding at the end the fol- 21 lowing: 22 ‘‘(D) at least 75 miles per gallon equiva- 23 lent while operating as a hydrogen fuel cell elec- 24 tric vehicle.’’; 25 VerDate Sep 11 2014 01:44 May 26, 2021 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H2308.IH H2308 pbinns on DSKJLVW7X2PROD with BILLS 5 •HR 2308 IH (2) by amending subsection (b) to read as fol- 1 lows: 2 ‘‘(b) ADVANCED VEHICLES MANUFACTURING FACIL- 3 ITY.— 4 ‘‘(1) IN GENERAL.—The Secretary shall provide 5 facility funding awards under this section to ad- 6 vanced technology vehicle manufacturers and compo- 7 nent suppliers to pay not more than 50 percent of 8 the cost of— 9 ‘‘(A) reequipping, expanding, or estab- 10 lishing a manufacturing facility in the United 11 States to produce— 12 ‘‘(i) advanced technology vehicles; or 13 ‘‘(ii) qualifying components; and 14 ‘‘(B) engineering integration performed in 15 the United States of advanced technology vehi- 16 cles and qualifying components. 17 ‘‘(2) ULTRA-EFFICIENT COMPONENTS COST 18 SHARE.—Notwithstanding paragraph (1), a facility 19 funding award under such paragraph may pay not 20 more than 80 percent of the cost of a project to 21 reequip, expand, or establish a manufacturing facil- 22 ity in the United States to produce ultra-efficient 23 components.’’; 24 VerDate Sep 11 2014 01:44 May 26, 2021 Jkt 019200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H2308.IH H2308 pbinns on DSKJLVW7X2PROD with BILLS 6 •HR 2308 IH (3) in subsection (c), by striking ‘‘2020’’ and 1 inserting ‘‘2031’’ each place it appears; 2 (4) in subsection (d)— 3 (A) by amending paragraph (2) to read as 4 follows: 5 ‘‘(2) APPLICATION.—An applicant for a loan 6 under this subsection shall submit to the Secretary 7 an application at such time, in such manner, and 8 containing such information as the Secretary may 9 require, including— 10 ‘‘(A) a written assurance that all laborers 11 and mechanics employed by contractors or sub- 12 contractors during construction, alteration, or 13 repair, or at any manufacturing operation, that 14 is financed, in whole or in part, by a loan under 15 this section shall be paid wages at rates not less 16 than those prevailing in a similar firm or on 17 similar construction in the locality, as deter- 18 mined by the Secretary of Labor in accordance 19 with subchapter IV of chapter 31 of title 40, 20 United States Code; 21 ‘‘(B) a disclosure of whether there has 22 been any administrative merits determination, 23 arbitral award or decision, or civil judgment, as 24 defined in guidance issued by the Secretary of 25 VerDate Sep 11 2014 01:44 May 26, 2021 Jkt 019200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H2308.IH H2308 pbinns on DSKJLVW7X2PROD with BILLS 7 •HR 2308 IH Labor, rendered against the applicant in the 1 preceding 3 years for violations of applicable 2 labor, employment, civil rights, or health and 3 safety laws; 4 ‘‘(C) specific information regarding the ac- 5 tions the applicant will take to demonstrate 6 compliance with, and where possible exceedance 7 of, requirements under applicable labor, employ- 8 ment, civil rights, and health and safety laws, 9 and actions the applicant will take to ensure 10 that its direct suppliers demonstrate compliance 11 with applicable labor, employment, civil rights, 12 and health and safety laws; and 13 ‘‘(D) an estimate and description of the 14 jobs and types of jobs to be retained or created 15 by the project and the specific actions the appli- 16 cant will take to increase employment and re- 17 tention of dislocated workers, veterans, individ- 18 uals from low-income communities, women, mi- 19 norities, and other groups underrepresented in 20 manufacturing, and individuals with a barrier 21 to employment.’’; 22 (B) by amending paragraph (3) to read as 23 follows: 24 ‘‘(3) SELECTION OF ELIGIBLE PROJECTS.— 25 VerDate Sep 11 2014 01:44 May 26, 2021 Jkt 019200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H2308.IH H2308 pbinns on DSKJLVW7X2PROD with BILLS 8 •HR 2308 IH ‘‘(A) IN GENERAL.—The Secretary shall 1 select eligible projects to receive loans under 2 this subsection in cases in which the Secretary 3 determines— 4 ‘‘(i) the loan recipient— 5 ‘‘(I) has a reasonable prospect of 6 repaying the principal and interest on 7 the loan; 8 ‘‘(II) will provide sufficient infor- 9 mation to the Secretary for the Sec- 10 retary to ensure that the qualified in- 11 vestment is expended efficiently and 12 effectively; and 13 ‘‘(III) has met such other criteria 14 as may be established and published 15 by the Secretary; and 16 ‘‘(ii) the amount of the loan (when 17 combined with amounts available to the 18 loan recipient from other sources) will be 19 sufficient to carry out the project. 20 ‘‘(B) REASONABLE PROSPECT OF REPAY- 21 MENT.—The Secretary shall base a determina- 22 tion of whether there is a reasonable prospect 23 of repayment of the principal and interest on a 24 loan under subparagraph (A) on a comprehen- 25 VerDate Sep 11 2014 01:44 May 26, 2021 Jkt 019200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H2308.IH H2308 pbinns on DSKJLVW7X2PROD with BILLS 9 •HR 2308 IH sive evaluation of whether the loan recipient has 1 a reasonable prospect of repaying the principal 2 and interest, including evaluation of— 3 ‘‘(i) the strength of an eligible 4 project’s contractual terms (if commer- 5 cially reasonably available); 6 ‘‘(ii) the forecast of noncontractual 7 cash flows supported by market projections 8 from reputable sources, as determined by 9 the Secretary; 10 ‘‘(iii) cash sweeps and other structure 11 enhancements; 12 ‘‘(iv) the projected financial strength 13 of the loan recipient at the time of loan 14 close and projected throughout the loan 15 term after the project is completed; 16 ‘‘(v) the financial strength of the loan 17 recipient’s investors and strategic partners, 18 if applicable; and 19 ‘‘(vi) other financial metrics and anal- 20 yses that are relied upon by the private 21 lending community and nationally recog- 22 nized credit rating agencies, as determined 23 appropriate by the Secretary.’’; and 24 (C) in paragraph (4)— 25 VerDate Sep 11 2014 01:44 May 26, 2021 Jkt 019200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H2308.IH H2308 pbinns on DSKJLVW7X2PROD with BILLS 10 •HR 2308 IH (i) in subparagraph (B)(i), by striking 1 ‘‘; and’’ and inserting ‘‘; or’’; 2 (ii) in subparagraph (C), by striking 3 ‘‘; and’’ and inserting a semicolon; 4 (iii) in subparagraph (D), by striking 5 the period at the end and inserting ‘‘; 6 and’’; and 7 (iv) by adding at the end the fol- 8 lowing: 9 ‘‘(E) shall be subject to the condition that 10 the loan is not subordinate to other financing.’’; 11 (5) by amending subsection (e) to read as fol- 12 lows: 13 ‘‘(e) REGULATIONS.—Not later than 6 months after 14 the date of enactment of the Advanced Technology Vehi- 15 cles Manufacturing Future Act of 2021, the Secretary 16 shall issue a final rule establishing regulations to carry 17 out this section.’’; 18 (6) by amending subsection (f) to read as fol- 19 lows: 20 ‘‘(f) FEES.—The Secretary shall charge and collect 21 fees for loans under this section in amounts the Secretary 22 determines are sufficient to cover applicable administra- 23 tive expenses (including any costs associated with third- 24 party consultants engaged by the Secretary), which may 25 VerDate Sep 11 2014 01:44 May 26, 2021 Jkt 019200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H2308.IH H2308 pbinns on DSKJLVW7X2PROD with BILLS 11 •HR 2308 IH not exceed $100,000 or 10 basis points of the loan and 1 may not be collected prior to financial closing.’’; 2 (7) by amending subsection (g) to read as fol- 3 lows: 4 ‘‘(g) PRIORITY.—The Secretary shall, in making 5 awards or loans to those manufacturers that have existing 6 facilities (which may be idle), give priority to those facili- 7 ties that are or would be— 8 ‘‘(1) oldest or in existence for at least 20 years; 9 ‘‘(2) recently closed, or at risk of closure; 10 ‘‘(3) utilized primarily for the manufacture of 11 medium-duty passenger vehicles or other heavy-duty 12 vehicles that emit zero greenhouse gas emissions; or 13 ‘‘(4) utilized primarily for the manufacture of 14 ultra-efficient components.’’; 15 (8) in subsection (h)— 16 (A) in the header, by striking ‘‘AUTO- 17 MOBILE’’ and inserting ‘‘ADVANCED TECH- 18 NOLOGY VEHICLE’’; and 19 (B) in paragraph (1)(B), by striking 20 ‘‘automobiles, or components of automobiles’’ 21 and inserting ‘‘advanced technology vehicles, or 22 components of advanced technology vehicles’’; 23 (9) by striking subsection (i) and redesignating 24 subsection (j) as subsection (i); and 25 VerDate Sep 11 2014 01:44 May 26, 2021 Jkt 019200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H2308.IH H2308 pbinns on DSKJLVW7X2PROD with BILLS 12 •HR 2308 IH (10) by adding at the end the following: 1 ‘‘(j) COORDINATION.—In carrying out this section, 2 the Secretary shall coordinate with relevant vehicle, bio- 3 energy, and hydrogen and fuel cell demonstration project 4 activities supported by the Department. 5 ‘‘(k) OUTREACH.—In carrying out this section, the 6 Secretary shall— 7 ‘‘(1) provide assistance with the completion of 8 applications for awards or loans under this section; 9 and 10 ‘‘(2) conduct outreach, including through con- 11 ferences and online programs, to disseminate infor- 12 mation on awards and loans under this section to 13 potential applicants. 14 ‘‘(l) REPORT.—Not later than 2 years after the date 15 of the enactment of this subsection, and every 3 years 16 thereafter, the Secretary shall submit to Congress a report 17 on the status of projects supported by a loan under this 18 section, including— 19 ‘‘(1) a list of projects receiving a loan under 20 this section, including the loan amount and con- 21 struction status of each such project; 22 ‘‘(2) the status of each project’s loan repay- 23 ment, including future repayment projections; 24 VerDate Sep 11 2014 01:44 May 26, 2021 Jkt 019200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\H2308.IH H2308 pbinns on DSKJLVW7X2PROD with BILLS 13 •HR 2308 IH ‘‘(3) data regarding the number of direct and 1 indirect jobs retained, restored, or created by fi- 2 nanced projects; 3 ‘‘(4) the number of new projects projected to 4 receive a loan under this section in the next 2 years 5 and the aggregate loan amount; 6 ‘‘(5) evaluation of ongoing compliance with the 7 assurances and commitments and of the predictions 8 made by applicants pursuant to subsection (d)(2); 9 and 10 ‘‘(6) any other metrics the Secretary finds ap- 11 propriate. 12 ‘‘(m) AUTHORIZATION OF APPROPRIATIONS.—There 13 are authorized to be appropriated to carry out this section 14 $10,000,000 for each of fiscal years 2022 through 2031.’’. 15 Æ VerDate Sep 11 2014 01:44 May 26, 2021 Jkt 019200 PO 00000 Frm 00013 Fmt 6652 Sfmt 6301 E:\BILLS\H2308.I [Text truncated for display. 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