Job Creation through Energy Efficient Manufacturing Act

I 116TH CONGRESS 2D SESSION H. R. 7446 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 HOUSE OF REPRESENTATIVES JULY 1, 2020 Mr. CARTWRIGHT (for himself, Mr. MCNERNEY, Mr. CONNOLLY, Mr. HUFFMAN, Mr. GRIJALVA, Ms. KUSTER of New Hampshire, Mr. KHANNA, Mr. POCAN, Ms. LEE of California, Ms. WASSERMAN SCHULTZ, Mr. TONKO, Mr. WELCH, Mr. COHEN, Mr. RASKIN, Ms. NORTON, Ms. PINGREE, and Mr. HIMES) introduced the following bill; which was re- ferred to the Committee on Science, Space, and Technology, and in addi- tion to the Committee on Energy and Commerce, for a period to be sub- sequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned 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 VerDate Sep 11 2014 00:23 Jul 25, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H7446.IH H7446 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 7446 IH SECTION 1. SHORT TITLE. 1 This Act may be cited as the ‘‘Job Creation through 2 Energy Efficient Manufacturing Act’’. 3 SEC. 2. DEFINITIONS. 4 In this Act: 5 (1) ENERGY MANAGEMENT PLAN.—The term 6 ‘‘energy management plan’’ means a plan estab- 7 lished under section 3(c)(4). 8 (2) INDIAN TRIBE.—The term ‘‘Indian tribe’’ 9 has the meaning given the term in section 4 of the 10 Indian Self-Determination and Education Assistance 11 Act (25 U.S.C. 5304). 12 (3) PROGRAM.—The term ‘‘program’’ means 13 the Financing Energy Efficient Manufacturing Pro- 14 gram established under section 3(a). 15 (4) PROGRAM MANAGER.—The term ‘‘program 16 manager’’ means a qualified entity that receives a 17 grant under section 3(a). 18 (5) PROJECT.—The term ‘‘project’’ means an 19 energy efficiency improvement project carried out by 20 a small- or medium-sized manufacturer using grant 21 funds distributed by a project manager. 22 (6) QUALIFIED ENTITY.—The term ‘‘qualified 23 entity’’ means— 24 (A) a State energy office; 25 (B) an Indian tribe; 26 VerDate Sep 11 2014 00:23 Jul 25, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H7446.IH H7446 kjohnson on DSK79L0C42PROD with BILLS 3 •HR 7446 IH (C) a nonprofit organization that— 1 (i) is focused on providing energy effi- 2 ciency or renewable energy services; and 3 (ii) receives funding from a State, In- 4 dian tribe, or utility; 5 (D) an electric cooperative group; and 6 (E) an entity with a public-private partner- 7 ship under the Hollings Manufacturing Exten- 8 sion Partnership established under section 9 25(b) of the National Institute of Standards 10 and Technology Act (15 U.S.C. 278k(b)). 11 (7) SECRETARY.—The term ‘‘Secretary’’ means 12 the Secretary of Energy. 13 (8) SMALL- OR MEDIUM-SIZED MANUFAC- 14 TURER.—The term ‘‘small- or medium-sized manu- 15 facturer’’ means a manufacturing establishment— 16 (A) classified in Sector 31, 32, or 33 in the 17 North American Industry Classification System; 18 and 19 (B) that employs not more than 750 em- 20 ployees. 21 SEC. 3. FINANCING ENERGY EFFICIENT MANUFACTURING 22 PROGRAM. 23 (a) ESTABLISHMENT.—The Secretary shall establish 24 a program, to be known as the ‘‘Financing Energy Effi- 25 VerDate Sep 11 2014 00:23 Jul 25, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H7446.IH H7446 kjohnson on DSK79L0C42PROD with BILLS 4 •HR 7446 IH cient Manufacturing Program’’ to provide grants to quali- 1 fied entities to fund energy efficiency improvement 2 projects in the manufacturing sector. 3 (b) GRANT APPLICATIONS; SELECTION OF GRANT 4 RECIPIENTS.— 5 (1) GRANT APPLICATIONS.— 6 (A) IN GENERAL.—Not later than 180 7 days after the date of enactment of this Act, 8 qualified entities desiring a grant under sub- 9 section (a) shall submit to the Secretary an ap- 10 plication in such manner and containing such 11 information as the Secretary may require, in- 12 cluding a description of— 13 (i) how the qualified entity will work 14 with small- and medium-sized manufactur- 15 ers to assess the most promising opportu- 16 nities for energy efficiency improvements; 17 (ii) how the qualified entity will work 18 with small- and medium-sized manufactur- 19 ers and, if appropriate, licensed engineers 20 to establish an energy management plan 21 for the small- or medium-sized manufac- 22 turer to carry out a project; 23 (iii) the methods and cost-sharing 24 plans the qualified entity will use to dis- 25 VerDate Sep 11 2014 00:23 Jul 25, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H7446.IH H7446 kjohnson on DSK79L0C42PROD with BILLS 5 •HR 7446 IH tribute funds to small- and medium-sized 1 manufacturers to subsidize the costs of 2 carrying out a project; 3 (iv) the standards by which the quali- 4 fied entity will set energy efficiency goals 5 for a project that will result in meaningful 6 reductions in electricity or natural gas use 7 by the small- or medium-sized manufac- 8 turer carrying out the project; 9 (v) how the qualified entity will pro- 10 vide support to the small- or medium-sized 11 manufacturer carrying out a project during 12 the implementation of the energy manage- 13 ment plan; 14 (vi)(I) any history of the qualified en- 15 tity of working collaboratively with the re- 16 gional technical assistance programs of the 17 Department of Energy; and 18 (II) how the qualified entity plans to 19 involve the regional technical assistance 20 programs in the activities to be funded by 21 a grant; and 22 (vii) how the qualified entity will col- 23 lect measurements throughout the imple- 24 VerDate Sep 11 2014 00:23 Jul 25, 2020 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H7446.IH H7446 kjohnson on DSK79L0C42PROD with BILLS 6 •HR 7446 IH mentation of the energy management 1 plan— 2 (I) to demonstrate how energy ef- 3 ficiency improvements are being 4 achieved; and 5 (II) to maximize opportunities 6 for project success. 7 (B) PARTNERSHIPS.—Two or more quali- 8 fied entities may form a partnership to apply, 9 and act as program manager, for a grant under 10 this subsection. 11 (2) SELECTION OF GRANT RECIPIENTS.— 12 (A) IN GENERAL.—Not later than 90 days 13 after the date on which the Secretary receives 14 an application under paragraph (1), the Sec- 15 retary shall— 16 (i) review the application; 17 (ii) provide the applicant with an op- 18 portunity to respond to any questions of 19 the Secretary regarding the application; 20 and 21 (iii) select or deny the applicant based 22 on the criteria described in subparagraph 23 (B). 24 (B) SELECTION CRITERIA.— 25 VerDate Sep 11 2014 00:23 Jul 25, 2020 Jkt 099200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H7446.IH H7446 kjohnson on DSK79L0C42PROD with BILLS 7 •HR 7446 IH (i) IN GENERAL.—The Secretary shall 1 select for grants under this subsection 2 qualified entities that demonstrate a his- 3 tory of successfully implementing energy 4 efficiency improvement programs for small- 5 and medium-sized manufacturers. 6 (ii) PRIORITY.—In making selections 7 under clause (i), the Secretary shall give 8 priority to qualified entities that dem- 9 onstrate— 10 (I) effective methods for reducing 11 barriers to entry that might otherwise 12 prevent small- and medium-sized man- 13 ufacturers from participating in the 14 subgrant program under subsection 15 (c); 16 (II) flexibility in addressing the 17 needs of different small- and medium- 18 sized manufacturers; and 19 (III) a commitment to hiring for 20 projects contractors that comply with 21 the labor requirements described in 22 subsection (d)(2). 23 (c) SUBGRANTS FOR ENERGY EFFICIENCY IMPROVE- 24 MENTS.— 25 VerDate Sep 11 2014 00:23 Jul 25, 2020 Jkt 099200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H7446.IH H7446 kjohnson on DSK79L0C42PROD with BILLS 8 •HR 7446 IH (1) IN GENERAL.—A qualified entity (including 1 a partnership of one or more qualified entities under 2 subsection (b)(1)(B)) that receives a grant under 3 subsection (a) shall act as a program manager to 4 distribute subgrants to small- and medium-sized 5 manufacturers located in the State in which the pro- 6 gram manager is located to carry out projects— 7 (A) to improve the energy efficiency of the 8 small- or medium-sized manufacturer; and 9 (B) to develop technologies to reduce elec- 10 tricity or natural gas use by the small- or me- 11 dium-sized manufacturer. 12 (2) APPLICATIONS.—A small- or medium-sized 13 manufacturer desiring a subgrant under paragraph 14 (1) shall submit to the program manager an applica- 15 tion at such time, in such manner, and containing 16 such information as the program manager may re- 17 quire, including a proposal describing the project to 18 be carried out using the subgrant funds. 19 (3) PRIORITY.—In selecting small- or medium- 20 sized manufacturers for subgrants under this sub- 21 section, the program manager shall give priority to 22 small- or medium-sized manufacturers that commit 23 to hiring for projects contractors that comply with 24 VerDate Sep 11 2014 00:23 Jul 25, 2020 Jkt 099200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H7446.IH H7446 kjohnson on DSK79L0C42PROD with BILLS 9 •HR 7446 IH the labor requirements described in subsection 1 (d)(2). 2 (4) ELIGIBILITY REQUIREMENTS.—To be eligi- 3 ble to receive a subgrant under paragraph (1), a 4 small- or medium-sized manufacturer shall be a pri- 5 vate, nongovernmental entity. 6 (5) ENERGY MANAGEMENT PLANS.—Each 7 small- or medium-sized manufacturer receiving a 8 subgrant under paragraph (1), in consultation with 9 the program manager and, if appropriate, one or 10 more licensed engineers, shall establish an energy 11 management plan for the small- or medium-sized 12 manufacturer to carry out the project. 13 (6) EFFECT ON TITLE TO PROPERTY.—The re- 14 ceipt of Federal funds under this subsection shall 15 not prohibit an entity that purchased equipment or 16 other property using those funds from owning sole, 17 permanent title to the equipment or other property. 18 (d) CONTRACTORS.— 19 (1) IN GENERAL.—Program managers and 20 small- or medium-sized manufacturers may hire, if 21 necessary, contractors to perform work relating to 22 the installation, repair, or maintenance of equipment 23 used under a project. 24 VerDate Sep 11 2014 00:23 Jul 25, 2020 Jkt 099200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H7446.IH H7446 kjohnson on DSK79L0C42PROD with BILLS 10 •HR 7446 IH (2) LABOR REQUIREMENTS.—In an application 1 for a grant or subgrant under this section, a pro- 2 gram manager or a small- or medium-sized manu- 3 facturer, respectively, may commit to hiring contrac- 4 tors that represent to the best of the knowledge and 5 belief of the contractor, whether, during the 3-year 6 period preceding the date of application, any admin- 7 istrative merits determination, arbitral award or de- 8 cision, or civil judgment (as defined in guidance 9 issued by the Secretary of Labor) was rendered 10 against the contractor for violations of— 11 (A) the National Labor Relations Act (29 12 U.S.C. 151 et seq.); 13 (B) the Fair Labor Standards Act of 1938 14 (29 U.S.C. 201 et seq.); 15 (C) the Age Discrimination in Employment 16 Act of 1967 (29 U.S.C. 621 et seq.); 17 (D) the Occupational Safety and Health 18 Act of 1970 (29 U.S.C. 651 et seq.); 19 (E) the Migrant and Seasonal Agricultural 20 Worker Protection Act (29 U.S.C. 1801 et 21 seq.); 22 (F) the Family and Medical Leave Act of 23 1993 (29 U.S.C. 2611 et seq.); 24 VerDate Sep 11 2014 00:23 Jul 25, 2020 Jkt 099200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H7446.IH H7446 kjohnson on DSK79L0C42PROD with BILLS 11 •HR 7446 IH (G) subchapter IV of chapter 31 of part A 1 of subtitle II of title 40, United States Code 2 (commonly referred to as the ‘‘Davis-Bacon 3 Act’’); 4 (H) chapter 67 of title 41, United States 5 Code; 6 (I) title VII of the Civil Rights Act of 1964 7 (42 U.S.C. 2000e et seq.); 8 (J) the Americans with Disabilities Act of 9 1990 (42 U.S.C. 12101 et seq.); 10 (K) Executive Order 11246 (42 U.S.C. 11 2000e note) (relating to equal employment op- 12 portunity); 13 (L) Executive Order 13658 (79 Fed. Reg. 14 9851 (February 20, 2014)) (relating to estab- 15 lishing a minimum wage for contractors); or 16 (M) equivalent State laws. 17 (3) ADDITIONAL LABOR REQUIREMENTS.—A 18 program manager or small- or medium-sized manu- 19 facturer receiving a grant or subgrant, respectively, 20 under this section that has committed to complying 21 with the labor requirements described in paragraph 22 (2)— 23 (A) shall provide each contractor an oppor- 24 tunity to disclose any steps taken to correct a 25 VerDate Sep 11 2014 00:23 Jul 25, 2020 Jkt 099200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H7446.IH H7446 kjohnson on DSK79L0C42PROD with BILLS 12 •HR 7446 IH violation of, or improve compliance with, a law 1 or Executive order described in any of subpara- 2 graphs (A) through (M) of paragraph (2), in- 3 cluding any agreements entered into with an 4 enforcement agency; 5 (B) shall give preference to contractors 6 that have the fewest number of violations (par- 7 ticularly serious, repeated, willful, or pervasive 8 violations) of the laws and Executive orders de- 9 scribed in subparagraphs (A) through (M) of 10 paragraph (2); and 11 (C) shall not hire contractors that fail to 12 take steps to correct violations of, or improve 13 compliance with, a law or Executive order de- 14 scribed in any of subparagraphs (A) through 15 (M) of paragraph (2). 16 (e) AMERICAN IRON, STEEL, AND MANUFACTURED 17 PRODUCTS.— 18 (1) DEFINITIONS.—In this subsection: 19 (A) IRON OR STEEL MANUFACTURED 20 PRODUCT.—The term ‘‘iron or steel manufac- 21 tured product’’ includes any construction mate- 22 rial or end product (as those terms are defined 23 in subpart 25.003 of the Federal Acquisition 24 VerDate Sep 11 2014 00:23 Jul 25, 2020 Jkt 099200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\H7446.IH H7446 kjohnson on DSK79L0C42PROD with BILLS 13 •HR 7446 IH Regulation) that does not otherwise qualify as 1 an iron or steel product, including— 2 (i) an electrical component; 3 (ii) a non-ferrous building material, 4 including— 5 (I) aluminum and polyvinylchlor- 6 ide; 7 (II) glass; 8 (III) fiber optics; 9 (IV) plastic; 10 (V) wood; 11 (VI) masonry; 1 [Text truncated for display. 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