CIT Act of 2019

II Calendar No. 269 116TH CONGRESS 1ST SESSION S. 2300 [Report No. 116–148] To amend the Energy Independence and Security Act of 2007 to establish a program to incentivize innovation and to enhance the industrial com- petitiveness of the United States by developing technologies to reduce emissions of nonpower industrial sectors, and for other purposes. IN THE SENATE OF THE UNITED STATES JULY 25, 2019 Mr. WHITEHOUSE (for himself, Mrs. CAPITO, Mr. MANCHIN, Mr. BRAUN, Mr. BOOKER, Ms. COLLINS, and Mrs. FEINSTEIN) introduced the following bill; which was read twice and referred to the Committee on Energy and Natural Resources OCTOBER 24, 2019 Reported by Ms. MURKOWSKI, with an amendment [Strike out all after the enacting clause and insert the part printed in italic] A BILL To amend the Energy Independence and Security Act of 2007 to establish a program to incentivize innovation and to enhance the industrial competitiveness of the United States by developing technologies to reduce emis- sions of nonpower industrial sectors, and for other pur- poses. VerDate Sep 11 2014 21:59 Oct 24, 2019 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6652 E:\BILLS\S2300.RS S2300 pamtmann on DSKBC07HB2PROD with BILLS 2 •S 2300 RS 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 ‘‘Clean Industrial Tech- 4 nology Act of 2019’’ or the ‘‘CIT Act of 2019’’. 5 SEC. 2. PURPOSE. 6 The purpose of this Act and the amendments made 7 by this Act is to encourage the development and evaluation 8 of innovative technologies aimed at increasing— 9 (1) the technological and economic competitive- 10 ness of industry and manufacturing in the United 11 States; and 12 (2) the emissions reduction of nonpower indus- 13 trial sectors. 14 SEC. 3. INDUSTRIAL EMISSIONS REDUCTION TECHNOLOGY 15 DEVELOPMENT PROGRAM. 16 (a) IN GENERAL.—The Energy Independence and 17 Security Act of 2007 is amended by inserting after section 18 453 (42 U.S.C. 17112) the following: 19 ‘‘SEC. 454. INDUSTRIAL EMISSIONS REDUCTION TECH- 20 NOLOGY DEVELOPMENT PROGRAM. 21 ‘‘(a) DEFINITIONS.—In this section: 22 ‘‘(1) DIRECTOR.—The term ‘Director’ means 23 the Director of the Office of Science and Technology 24 Policy. 25 VerDate Sep 11 2014 21:59 Oct 24, 2019 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6401 E:\BILLS\S2300.RS S2300 pamtmann on DSKBC07HB2PROD with BILLS 3 •S 2300 RS ‘‘(2) ELIGIBLE ENTITY.—The term ‘eligible en- 1 tity’ means— 2 ‘‘(A) a scientist or other individual with 3 knowledge and expertise in emissions reduction; 4 ‘‘(B) an institution of higher education; 5 ‘‘(C) a nongovernmental organization; 6 ‘‘(D) a National Laboratory; 7 ‘‘(E) a private entity; and 8 ‘‘(F) a partnership or consortium of two or 9 more entities described in subparagraphs (B) 10 through (E). 11 ‘‘(3) EMISSIONS REDUCTION.— 12 ‘‘(A) IN GENERAL.—The term ‘emissions 13 reduction’ means the reduction, to the max- 14 imum extent practicable, of net nonwater green- 15 house gas emissions to the atmosphere by en- 16 ergy services and industrial processes. 17 ‘‘(B) EXCLUSION.—The term ‘emissions 18 reduction’ does not include the elimination of 19 carbon embodied in the principal products of in- 20 dustrial manufacturing. 21 ‘‘(4) INSTITUTION OF HIGHER EDUCATION.— 22 The term ‘institution of higher education’ has the 23 meaning given the term in section 101 of the Higher 24 Education Act of 1965 (20 U.S.C. 1001). 25 VerDate Sep 11 2014 21:59 Oct 24, 2019 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6401 E:\BILLS\S2300.RS S2300 pamtmann on DSKBC07HB2PROD with BILLS 4 •S 2300 RS ‘‘(5) PROGRAM.—The term ‘program’ means 1 the program established under subsection (b)(1). 2 ‘‘(b) INDUSTRIAL EMISSIONS REDUCTION TECH- 3 NOLOGY DEVELOPMENT PROGRAM.— 4 ‘‘(1) IN GENERAL.—Not later than 1 year after 5 the date of enactment of the CIT Act of 2019, the 6 Secretary, in coordination with the Director and in 7 consultation with the heads of relevant Federal 8 agencies, National Laboratories, industry, and insti- 9 tutions of higher education, shall establish a cross- 10 cutting industrial emissions reduction technology de- 11 velopment program of research, development, dem- 12 onstration, and commercial application to further 13 the development and commercialization of innovative 14 technologies that— 15 ‘‘(A) increase the technological and eco- 16 nomic competitiveness of industry and manufac- 17 turing in the United States; and 18 ‘‘(B) achieve emissions reduction in non- 19 power industrial sectors. 20 ‘‘(2) COORDINATION.—In carrying out the pro- 21 gram, the Secretary shall— 22 ‘‘(A) coordinate with each relevant office in 23 the Department and any other Federal agency; 24 VerDate Sep 11 2014 21:59 Oct 24, 2019 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6401 E:\BILLS\S2300.RS S2300 pamtmann on DSKBC07HB2PROD with BILLS 5 •S 2300 RS ‘‘(B) coordinate and collaborate with the 1 Industrial Technology Innovation Advisory 2 Committee established under section 455; and 3 ‘‘(C) coordinate with the energy-intensive 4 industries program established under section 5 452. 6 ‘‘(3) LEVERAGE OF EXISTING RESOURCES.—In 7 carrying out the program, the Secretary shall lever- 8 age, to the maximum extent practicable— 9 ‘‘(A) existing resources and programs of 10 the Department and other relevant Federal 11 agencies; and 12 ‘‘(B) public-private partnerships. 13 ‘‘(c) FOCUS AREAS.—The program shall focus on— 14 ‘‘(1) industrial production processes, including 15 technologies and processes that— 16 ‘‘(A) achieve emissions reduction in high- 17 emissions industrial materials production proc- 18 esses, including production processes for iron, 19 steel, steel mill products, aluminum, cement, 20 glass, pulp, paper, and industrial ceramics; 21 ‘‘(B) achieve emissions reduction in 22 medium- and high-temperature heat generation, 23 including— 24 VerDate Sep 11 2014 21:59 Oct 24, 2019 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6401 E:\BILLS\S2300.RS S2300 pamtmann on DSKBC07HB2PROD with BILLS 6 •S 2300 RS ‘‘(i) through electrification of heating 1 processes; 2 ‘‘(ii) through renewable heat genera- 3 tion technology; 4 ‘‘(iii) through combined heat and 5 power; and 6 ‘‘(iv) by switching to alternative fuels, 7 including hydrogen; 8 ‘‘(C) achieve emissions reduction in chem- 9 ical production processes; 10 ‘‘(D) leverage smart manufacturing tech- 11 nologies and principles, digital manufacturing 12 technologies, and advanced data analytics to de- 13 velop advanced technologies and practices in in- 14 formation, automation, monitoring, computa- 15 tion, sensing, modeling, and networking that— 16 ‘‘(i) simulate manufacturing produc- 17 tion lines; 18 ‘‘(ii) monitor and communicate pro- 19 duction line status; 20 ‘‘(iii) manage and optimize energy 21 productivity and cost throughout produc- 22 tion; and 23 VerDate Sep 11 2014 21:59 Oct 24, 2019 Jkt 099200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6401 E:\BILLS\S2300.RS S2300 pamtmann on DSKBC07HB2PROD with BILLS 7 •S 2300 RS ‘‘(iv) model, simulate, and optimize 1 the energy efficiency of manufacturing 2 processes; 3 ‘‘(E) leverage the principles of sustainable 4 manufacturing to minimize the negative envi- 5 ronmental impacts of manufacturing while con- 6 serving energy and resources, including— 7 ‘‘(i) by designing products that enable 8 reuse, refurbishment, remanufacturing, 9 and recycling; 10 ‘‘(ii) by minimizing waste from indus- 11 trial processes; and 12 ‘‘(iii) by reducing resource intensity; 13 and 14 ‘‘(F) increase the energy efficiency of in- 15 dustrial processes; 16 ‘‘(2) alternative materials that produce fewer 17 emissions during production and result in fewer 18 emissions during use, including— 19 ‘‘(A) innovative building materials; 20 ‘‘(B) high-performance lightweight mate- 21 rials; and 22 ‘‘(C) substitutions for critical materials 23 and minerals; 24 VerDate Sep 11 2014 21:59 Oct 24, 2019 Jkt 099200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6401 E:\BILLS\S2300.RS S2300 pamtmann on DSKBC07HB2PROD with BILLS 8 •S 2300 RS ‘‘(3) development of net-zero emission liquid 1 and gaseous fuels; 2 ‘‘(4) emissions reduction in shipping, aviation, 3 and long distance transportation, including through 4 the use of alternative fuels; 5 ‘‘(5) carbon capture technologies for industrial 6 processes; 7 ‘‘(6) high-performance computing to develop ad- 8 vanced materials and manufacturing processes con- 9 tributing to the focus areas described in paragraphs 10 (1) through (5), including— 11 ‘‘(A) modeling, simulation, and optimiza- 12 tion of the design of energy efficient and sus- 13 tainable products; and 14 ‘‘(B) the use of digital prototyping and ad- 15 ditive manufacturing to enhance product de- 16 sign; and 17 ‘‘(7) other technologies that achieve net-zero 18 emissions in nonpower industrial sectors, as deter- 19 mined by the Secretary, in coordination with the Di- 20 rector. 21 ‘‘(d) GRANTS, CONTRACTS, COOPERATIVE AGREE- 22 MENTS, AND DEMONSTRATION PROJECTS.— 23 ‘‘(1) GRANTS.—In carrying out the program, 24 the Secretary shall award grants on a competitive 25 VerDate Sep 11 2014 21:59 Oct 24, 2019 Jkt 099200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6401 E:\BILLS\S2300.RS S2300 pamtmann on DSKBC07HB2PROD with BILLS 9 •S 2300 RS basis to eligible entities for projects that the Sec- 1 retary determines would best achieve the goals of the 2 program. 3 ‘‘(2) CONTRACTS AND COOPERATIVE AGREE- 4 MENTS.—In carrying out the program, the Secretary 5 may enter into contracts and cooperative agreements 6 with eligible entities and Federal agencies for 7 projects that the Secretary determines would further 8 the purposes of the program. 9 ‘‘(3) DEMONSTRATION PROJECTS.—In sup- 10 porting technologies developed under this section, 11 the Secretary shall fund demonstration projects that 12 test and validate technologies described in subsection 13 (c). 14 ‘‘(4) APPLICATION.—An entity seeking funding 15 or a contract or agreement under this subsection 16 shall submit to the Secretary an application at such 17 time, in such manner, and containing such informa- 18 tion as the Secretary may require. 19 ‘‘(5) COST SHARING.—In awarding funds under 20 this section, the Secretary shall require cost sharing 21 in accordance with section 988 of the Energy Policy 22 Act of 2005 (42 U.S.C. 16352). 23 ‘‘(e) AUTHORIZATION OF APPROPRIATIONS.— 24 VerDate Sep 11 2014 21:59 Oct 24, 2019 Jkt 099200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6401 E:\BILLS\S2300.RS S2300 pamtmann on DSKBC07HB2PROD with BILLS 10 •S 2300 RS ‘‘(1) IN GENERAL.—There are authorized to be 1 appropriated to the Secretary such sums as are nec- 2 essary to carry out this section for each fiscal year 3 during which the program is in effect. 4 ‘‘(2) DEMONSTRATION PROJECTS.—Subject to 5 the amount appropriated under paragraph (1), not 6 more than $650,000,000 shall be used to carry out 7 demonstration projects under subsection (d)(3).’’. 8 (b) TECHNICAL AMENDMENT.—The table of contents 9 of the Energy Independence and Security Act of 2007 10 (Public Law 110–140; 121 Stat. 1494) is amended by in- 11 serting after the item relating to section 453 the following: 12 ‘‘Sec. 454. Industrial emissions reduction technology development program.’’. SEC. 4. INDUSTRIAL TECHNOLOGY INNOVATION ADVISORY 13 COMMITTEE. 14 (a) IN GENERAL.—The Energy Independence and 15 Security Act of 2007 is amended by inserting after section 16 454 (as added by section 3(a)) the following: 17 ‘‘SEC. 455. INDUSTRIAL TECHNOLOGY INNOVATION ADVI- 18 SORY COMMITTEE. 19 ‘‘(a) DEFINITIONS.—In this section: 20 ‘‘(1) COMMITTEE.—The term ‘Committee’ 21 means the Industrial Technology Innovation Advi- 22 sory Committee established under subsection (b). 23 VerDate Sep 11 2014 21:59 Oct 24, 2019 Jkt 099200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6401 E:\BILLS\S2300.RS S2300 pamtmann on DSKBC07HB2PROD with BILLS 11 •S 2300 RS ‘‘(2) DIRECTOR.—The term ‘Director’ means 1 the Director of the Office of Science and Technology 2 Policy. 3 ‘‘(3) EMISSIONS REDUCTION.—The term ‘emis- 4 sions reduction’ has the meaning given the term in 5 section 454(a). 6 ‘‘(4) PROGRAM.—The term ‘program’ means 7 the industrial emissions reduction technology devel- 8 opment program established under section 9 454(b)(1). 10 ‘‘(b) ESTABLISHMENT.—Not later than 180 days 11 after the date of enactment of the CIT Act of 2019, the 12 Secretary, in coordination with the Director, shall estab- 13 lish an advisory committee, to be known as the ‘Industrial 14 Technology Innovation Advisory Committee’. 15 ‘‘(c) MEMBERSHIP.— 16 ‘‘(1) APPOINTMENT.—The Committee shall be 17 comprised of not fewer than 14 members, who shall 18 be appointed by the Secretary, in coordination with 19 the Director. 20 ‘‘(2) REPRESENTATION.—Members appointed 21 pursuant to paragraph (1) shall include— 22 ‘‘(A) not less than 1 representative of each 23 relevant Federal agency, as determined by the 24 Secretary; 25 VerDate Sep 11 2014 21:59 Oct 24, 2019 Jkt 099200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6401 E:\BILLS\S2300.RS S2300 pamtmann on DSKBC07HB2PROD with BILLS 12 •S 2300 RS ‘‘(B) not less than 2 representatives of 1 labor groups; 2 ‘‘(C) not less than 3 representatives of the 3 research community, which shall include aca- 4 demia and National Laboratories; 5 ‘‘(D) not less than 2 representatives of 6 nongovernmental organizations; 7 ‘‘(E) not less than 6 representatives of in- 8 dustry, the collective expertise of which shall 9 cover every focus area described in section 10 454(c); and 11 ‘‘(F) any other individual whom the Sec- 12 retary, in coordination with the Director, deter- 13 mines to be necessary to ensure that the Com- 14 mittee is comprised of a diverse group of rep- 15 resentatives of industry, academia, independent 16 researchers, and public and private entities. 17 ‘‘(3) CHAIR.—The Secretary shall designate a 18 member of the Committee to serve as Chair. 19 ‘‘(d) DUTIES.— 20 ‘‘(1) IN GENERAL.—The Committee shall— 21 ‘‘(A) in consultation with the Secretary 22 and the Director, develop the missions and 23 goals of the program, which shall be consistent 24 VerDate Sep 11 2014 21:59 Oct 24, 2019 Jkt 099200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6401 E:\BILLS\S2300.RS S2300 pamtmann on DSKBC07HB2PROD with BILLS 13 •S 2300 RS with the purposes of the program described in 1 section 454(b)(1); and 2 ‘‘(B) advise the Secretary and the Director 3 with respect to the program— 4 ‘‘(i) by identifying and evaluating any 5 technologies being developed by the private 6 sector relating to the focus areas described 7 in section 454(c); 8 ‘‘(ii) by identifying technology gaps in 9 the private sector in those focus areas, and 10 making recommendations [Text truncated for display. 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