Job Creation through Energy Efficient Manufacturing Act

II 116TH CONGRESS 2D SESSION S. 4147 To establish the Financing Energy Efficient Manufacturing Program at the Department of Energy to provide financial assistance to promote energy efficiency and onsite renewable technologies in manufacturing facilities, and for other purposes. IN THE SENATE OF THE UNITED STATES JULY 1, 2020 Mr. MERKLEY introduced the following bill; which was read twice and referred to the Committee on Energy and Natural Resources A BILL To establish the Financing Energy Efficient Manufacturing Program at the Department of Energy to provide finan- cial assistance to promote energy efficiency and onsite renewable technologies in manufacturing facilities, 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 ‘‘Job Creation through 4 Energy Efficient Manufacturing Act’’. 5 SEC. 2. DEFINITIONS. 6 In this Act: 7 VerDate Sep 11 2014 17:27 Jul 14, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S4147.IS S4147 pamtmann on DSKBC07HB2PROD with BILLS 2 •S 4147 IS (1) ENERGY MANAGEMENT PLAN.—The term 1 ‘‘energy management plan’’ means a plan estab- 2 lished under section 3(c)(4). 3 (2) INDIAN TRIBE.—The term ‘‘Indian tribe’’ 4 has the meaning given the term in section 4 of the 5 Indian Self-Determination and Education Assistance 6 Act (25 U.S.C. 5304). 7 (3) PROGRAM.—The term ‘‘program’’ means 8 the Financing Energy Efficient Manufacturing Pro- 9 gram established under section 3(a). 10 (4) PROGRAM MANAGER.—The term ‘‘program 11 manager’’ means a qualified entity that receives a 12 grant under section 3(a). 13 (5) PROJECT.—The term ‘‘project’’ means an 14 energy efficiency improvement project carried out by 15 a small- or medium-sized manufacturer using grant 16 funds distributed by a project manager. 17 (6) QUALIFIED ENTITY.—The term ‘‘qualified 18 entity’’ means— 19 (A) a State energy office; 20 (B) an Indian tribe; 21 (C) a nonprofit organization that— 22 (i) is focused on providing energy effi- 23 ciency or renewable energy services; and 24 VerDate Sep 11 2014 17:27 Jul 14, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S4147.IS S4147 pamtmann on DSKBC07HB2PROD with BILLS 3 •S 4147 IS (ii) receives funding from a State, In- 1 dian tribe, or utility; 2 (D) an electric cooperative group; and 3 (E) an entity with a public-private partner- 4 ship under the Hollings Manufacturing Exten- 5 sion Partnership established under section 6 25(b) of the National Institute of Standards 7 and Technology Act (15 U.S.C. 278k(b)). 8 (7) SECRETARY.—The term ‘‘Secretary’’ means 9 the Secretary of Energy. 10 (8) SMALL- OR MEDIUM-SIZED MANUFAC- 11 TURER.—The term ‘‘small- or medium-sized manu- 12 facturer’’ means a manufacturing establishment— 13 (A) classified in Sector 31, 32, or 33 in the 14 North American Industry Classification System; 15 and 16 (B) that employs not more than 750 em- 17 ployees. 18 SEC. 3. FINANCING ENERGY EFFICIENT MANUFACTURING 19 PROGRAM. 20 (a) ESTABLISHMENT.—The Secretary shall establish 21 a program, to be known as the ‘‘Financing Energy Effi- 22 cient Manufacturing Program’’ to provide grants to quali- 23 fied entities to fund energy efficiency improvement 24 projects in the manufacturing sector. 25 VerDate Sep 11 2014 17:27 Jul 14, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S4147.IS S4147 pamtmann on DSKBC07HB2PROD with BILLS 4 •S 4147 IS (b) GRANT APPLICATIONS; SELECTION OF GRANT 1 RECIPIENTS.— 2 (1) GRANT APPLICATIONS.— 3 (A) IN GENERAL.—Not later than 180 4 days after the date of enactment of this Act, 5 qualified entities desiring a grant under sub- 6 section (a) shall submit to the Secretary an ap- 7 plication in such manner and containing such 8 information as the Secretary may require, in- 9 cluding a description of— 10 (i) how the qualified entity will work 11 with small- and medium-sized manufactur- 12 ers to assess the most promising opportu- 13 nities for energy efficiency improvements; 14 (ii) how the qualified entity will work 15 with small- and medium-sized manufactur- 16 ers and, if appropriate, licensed engineers 17 to establish an energy management plan 18 for the small- or medium-sized manufac- 19 turer to carry out a project; 20 (iii) the methods and cost-sharing 21 plans the qualified entity will use to dis- 22 tribute funds to small- and medium-sized 23 manufacturers to subsidize the costs of 24 carrying out a project; 25 VerDate Sep 11 2014 17:27 Jul 14, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S4147.IS S4147 pamtmann on DSKBC07HB2PROD with BILLS 5 •S 4147 IS (iv) the standards by which the quali- 1 fied entity will set energy efficiency goals 2 for a project that will result in meaningful 3 reductions in electricity or natural gas use 4 by the small- or medium-sized manufac- 5 turer carrying out the project; 6 (v) how the qualified entity will pro- 7 vide support to the small- or medium-sized 8 manufacturer carrying out a project during 9 the implementation of the energy manage- 10 ment plan; 11 (vi)(I) any history of the qualified en- 12 tity of working collaboratively with the re- 13 gional technical assistance programs of the 14 Department of Energy; and 15 (II) how the qualified entity plans to 16 involve the regional technical assistance 17 programs in the activities to be funded by 18 a grant; and 19 (vii) how the qualified entity will col- 20 lect measurements throughout the imple- 21 mentation of the energy management 22 plan— 23 VerDate Sep 11 2014 17:27 Jul 14, 2020 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S4147.IS S4147 pamtmann on DSKBC07HB2PROD with BILLS 6 •S 4147 IS (I) to demonstrate how energy ef- 1 ficiency improvements are being 2 achieved; and 3 (II) to maximize opportunities 4 for project success. 5 (B) PARTNERSHIPS.—Two or more quali- 6 fied entities may form a partnership to apply, 7 and act as program manager, for a grant under 8 this subsection. 9 (2) SELECTION OF GRANT RECIPIENTS.— 10 (A) IN GENERAL.—Not later than 90 days 11 after the date on which the Secretary receives 12 an application under paragraph (1), the Sec- 13 retary shall— 14 (i) review the application; 15 (ii) provide the applicant with an op- 16 portunity to respond to any questions of 17 the Secretary regarding the application; 18 and 19 (iii) select or deny the applicant based 20 on the criteria described in subparagraph 21 (B). 22 (B) SELECTION CRITERIA.— 23 (i) IN GENERAL.—The Secretary shall 24 select for grants under this subsection 25 VerDate Sep 11 2014 17:27 Jul 14, 2020 Jkt 099200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S4147.IS S4147 pamtmann on DSKBC07HB2PROD with BILLS 7 •S 4147 IS qualified entities that demonstrate a his- 1 tory of successfully implementing energy 2 efficiency improvement programs for small- 3 and medium-sized manufacturers. 4 (ii) PRIORITY.—In making selections 5 under clause (i), the Secretary shall give 6 priority to qualified entities that dem- 7 onstrate— 8 (I) effective methods for reducing 9 barriers to entry that might otherwise 10 prevent small- and medium-sized man- 11 ufacturers from participating in the 12 subgrant program under subsection 13 (c); 14 (II) flexibility in addressing the 15 needs of different small- and medium- 16 sized manufacturers; and 17 (III) a commitment to hiring for 18 projects contractors that comply with 19 the labor requirements described in 20 subsection (d)(2). 21 (c) SUBGRANTS FOR ENERGY EFFICIENCY IMPROVE- 22 MENTS.— 23 (1) IN GENERAL.—A qualified entity (including 24 a partnership of 1 or more qualified entities under 25 VerDate Sep 11 2014 17:27 Jul 14, 2020 Jkt 099200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S4147.IS S4147 pamtmann on DSKBC07HB2PROD with BILLS 8 •S 4147 IS subsection (b)(1)(B)) that receives a grant under 1 subsection (a) shall act as a program manager to 2 distribute subgrants to small- and medium-sized 3 manufacturers located in the State in which the pro- 4 gram manager is located to carry out projects— 5 (A) to improve the energy efficiency of the 6 small- or medium-sized manufacturer; and 7 (B) to develop technologies to reduce elec- 8 tricity or natural gas use by the small- or me- 9 dium-sized manufacturer. 10 (2) APPLICATIONS.—A small- or medium-sized 11 manufacturer desiring a subgrant under paragraph 12 (1) shall submit to the program manager an applica- 13 tion at such time, in such manner, and containing 14 such information as the program manager may re- 15 quire, including a proposal describing the project to 16 be carried out using the subgrant funds. 17 (3) PRIORITY.—In selecting small- or medium- 18 sized manufacturers for subgrants under this sub- 19 section, the program manager shall give priority to 20 small- or medium-sized manufacturers that commit 21 to hiring for projects contractors that comply with 22 the labor requirements described in subsection 23 (d)(2). 24 VerDate Sep 11 2014 17:27 Jul 14, 2020 Jkt 099200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S4147.IS S4147 pamtmann on DSKBC07HB2PROD with BILLS 9 •S 4147 IS (4) ELIGIBILITY REQUIREMENTS.—To be eligi- 1 ble to receive a subgrant under paragraph (1), a 2 small- or medium-sized manufacturer shall be a pri- 3 vate, nongovernmental entity. 4 (5) ENERGY MANAGEMENT PLANS.—Each 5 small- or medium-sized manufacturer receiving a 6 subgrant under paragraph (1), in consultation with 7 the program manager and, if appropriate, 1 or more 8 licensed engineers, shall establish an energy manage- 9 ment plan for the small- or medium-sized manufac- 10 turer to carry out the project. 11 (6) EFFECT ON TITLE TO PROPERTY.—The re- 12 ceipt of Federal funds under this subsection shall 13 not prohibit an entity that purchased equipment or 14 other property using those funds from owning sole, 15 permanent title to the equipment or other property. 16 (d) CONTRACTORS.— 17 (1) IN GENERAL.—Program managers and 18 small- or medium-sized manufacturers may hire, if 19 necessary, contractors to perform work relating to 20 the installation, repair, or maintenance of equipment 21 used under a project. 22 (2) LABOR REQUIREMENTS.—In an application 23 for a grant or subgrant under this section, a pro- 24 gram manager or a small- or medium-sized manu- 25 VerDate Sep 11 2014 17:27 Jul 14, 2020 Jkt 099200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S4147.IS S4147 pamtmann on DSKBC07HB2PROD with BILLS 10 •S 4147 IS facturer, respectively, may commit to hiring contrac- 1 tors that represent to the best of the knowledge and 2 belief of the contractor, whether, during the 3-year 3 period preceding the date of application, any admin- 4 istrative merits determination, arbitral award or de- 5 cision, or civil judgment (as defined in guidance 6 issued by the Secretary of Labor) was rendered 7 against the contractor for violations of— 8 (A) the National Labor Relations Act (29 9 U.S.C. 151 et seq.); 10 (B) the Fair Labor Standards Act of 1938 11 (29 U.S.C. 201 et seq.); 12 (C) the Age Discrimination in Employment 13 Act of 1967 (29 U.S.C. 621 et seq.); 14 (D) the Occupational Safety and Health 15 Act of 1970 (29 U.S.C. 651 et seq.); 16 (E) the Migrant and Seasonal Agricultural 17 Worker Protection Act (29 U.S.C. 1801 et 18 seq.); 19 (F) the Family and Medical Leave Act of 20 1993 (29 U.S.C. 2611 et seq.); 21 (G) subchapter IV of chapter 31 of part A 22 of subtitle II of title 40, United States Code 23 (commonly referred to as the ‘‘Davis-Bacon 24 Act’’); 25 VerDate Sep 11 2014 17:27 Jul 14, 2020 Jkt 099200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S4147.IS S4147 pamtmann on DSKBC07HB2PROD with BILLS 11 •S 4147 IS (H) chapter 67 of title 41, United States 1 Code; 2 (I) title VII of the Civil Rights Act of 1964 3 (42 U.S.C. 2000e et seq.); 4 (J) the Americans with Disabilities Act of 5 1990 (42 U.S.C. 12101 et seq.); 6 (K) Executive Order 11246 (42 U.S.C. 7 2000e note) (relating to equal employment op- 8 portunity); 9 (L) Executive Order 13658 (79 Fed. Reg. 10 9851 (February 20, 2014)) (relating to estab- 11 lishing a minimum wage for contractors); or 12 (M) equivalent State laws. 13 (3) ADDITIONAL LABOR REQUIREMENTS.—A 14 program manager or small- or medium-sized manu- 15 facturer receiving a grant or subgrant, respectively, 16 under this section that has committed to complying 17 with the labor requirements described in paragraph 18 (2)— 19 (A) shall provide each contractor an oppor- 20 tunity to disclose any steps taken to correct a 21 violation of, or improve compliance with, a law 22 or Executive order described in any of subpara- 23 graphs (A) through (M) of paragraph (2), in- 24 VerDate Sep 11 2014 17:27 Jul 14, 2020 Jkt 099200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\S4147.IS S4147 pamtmann on DSKBC07HB2PROD with BILLS 12 •S 4147 IS cluding any agreements entered into with an 1 enforcement agency; 2 (B) shall give preference to contractors 3 that have the fewest number of violations (par- 4 ticularly serious, repeated, willful, or pervasive 5 violations) of the laws and Executive orders de- 6 scribed in subparagraphs (A) through (M) of 7 paragraph (2); and 8 (C) shall not hire contractors that fail to 9 take steps to correct violations of, or improve 10 compliance with, a law or Executive order de- 11 scribed in any of subparagraphs (A) through 12 (M) of paragraph (2). 13 (e) AMERICAN IRON, STEEL, AND MANUFACTURED 14 PRODUCTS.— 15 (1) DEFINITIONS.—In this subsection: 16 (A) IRON OR STEEL MANUFACTURED 17 PRODUCT.—The term ‘‘iron or steel manufac- 18 tured product’’ includes any construction mate- 19 rial or end product (as those terms are defined 20 in subpart 25.003 of the Federal Acquisition 21 Regulation) that does not otherwise qualify as 22 an iron or steel product, including— 23 (i) an electrical component; 24 VerDate Sep 11 2014 17:27 Jul 14, 2020 Jkt 099200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\S4147.IS S4147 pamtmann on DSKBC07HB2PROD with BILLS 13 •S 4147 IS (ii) a non-ferrous building material, 1 including— 2 (I) aluminum and 3 polyvinylchloride; 4 (II) glass; 5 (III) fiber optics; 6 (IV) plastic; 7 (V) wood; 8 (VI) masonry; 9 (VII) rubber; 10 (VIII) manufactured stone; and 11 (IX) any other non-ferrous build- 12 ing materials; and 13 (iii) any unmanufactured construction 14 material. 15 (B) PRODUCED IN THE UNITED STATES.— 16 (i) IN GENERAL.—The term ‘‘pro- 17 duced in the United States’’— 18 (I) with respect to an iron or 19 steel product or an iron or steel man- 20 ufactured product, means that all 21 manufacturing processes for, and ma- 22 terials and components of, the iron or 23 steel product or [Text truncated for display. 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