[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 1687 Introduced in Senate (IS)]
<DOC>
115th CONGRESS
1st Session
S. 1687
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
August 1, 2017
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 financial 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 Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Job Creation through Energy
Efficient Manufacturing Act''.
SEC. 2. DEFINITIONS.
In this Act:
(1) Energy management plan.--The term ``energy management
plan'' means a plan established under section 3(c)(4).
(2) Program.--The term ``program'' means the Financing
Energy Efficient Manufacturing Program established under
section 3(a).
(3) Program manager.--The term ``program manager'' means a
qualified entity that receives a grant under section 3(a).
(4) Project.--The term ``project'' means an energy
efficiency improvement project carried out by a small- or
medium-sized manufacturer using grant funds distributed by a
project manager.
(5) Qualified entity.--The term ``qualified entity''
means--
(A) a State energy office;
(B) a nonprofit organization that--
(i) is focused on providing energy
efficiency or renewable energy services; and
(ii) receives funding from a State, Tribe,
or utility;
(C) an electric cooperative group; and
(D) an entity with a public-private partnership
under the Hollings Manufacturing Extension Partnership
established under section 25(b) of the National
Institute of Standards and Technology Act (15 U.S.C.
278k(b)).
(6) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
(7) Small- or medium-sized manufacturer.--The term ``small-
or medium-sized manufacturer'' means a manufacturing
establishment--
(A) classified in Sector 31, 32, or 33 in the North
American Industry Classification System; and
(B) that employs not more than 750 employees.
SEC. 3. FINANCING ENERGY EFFICIENT MANUFACTURING PROGRAM.
(a) Establishment.--The Secretary shall establish a program, to be
known as the ``Financing Energy Efficient Manufacturing Program'' to
provide grants to qualified entities to fund energy efficiency
improvement projects in the manufacturing sector.
(b) Grant Applications; Selection of Grant Recipients.--
(1) Grant applications.--
(A) In general.--Not later than 180 days after the
date of enactment of this Act, qualified entities
desiring a grant under subsection (a) shall submit to
the Secretary an application in such manner and
containing such information as the Secretary may
require, including a description of--
(i) how the qualified entity will work with
small- and medium-sized manufacturers to assess
the most promising opportunities for energy
efficiency improvements;
(ii) how the qualified entity will work
with small- and medium-sized manufacturers and,
if appropriate, licensed engineers to establish
an energy management plan for the small- or
medium-sized manufacturer to carry out a
project;
(iii) the methods and cost-sharing plans
the qualified entity will use to distribute
funds to small- and medium-sized manufacturers
to subsidize the costs of carrying out a
project;
(iv) the standards by which the qualified
entity will set energy efficiency goals for a
project that will result in meaningful
reductions in electricity or natural gas use by
the small- or medium-sized manufacturer
carrying out the project;
(v) how the qualified entity will provide
support to the small- or medium-sized
manufacturer carrying out a project during the
implementation of the energy management plan;
(vi)(I) any history of the qualified entity
of working collaboratively with the regional
technical assistance programs of the Department
of Energy; and
(II) how the qualified entity plans to
involve the regional technical assistance
programs in the activities to be funded by a
grant; and
(vii) how the qualified entity will collect
measurements throughout the implementation of
the energy management plan--
(I) to demonstrate how energy
efficiency improvements are being
achieved; and
(II) to maximize opportunities for
project success.
(B) Partnerships.--Two or more qualified entities
may form a partnership to apply, and act as program
manager, for a grant under this subsection.
(2) Selection of grant recipients.--
(A) In general.--Not later than 90 days after the
date on which the Secretary receives an application
under paragraph (1), the Secretary shall--
(i) review the application;
(ii) provide the applicant with an
opportunity to respond to any questions of the
Secretary regarding the application; and
(iii) select or deny the applicant based on
the criteria described in subparagraph (B).
(B) Selection criteria.--
(i) In general.--The Secretary shall select
for grants under this subsection qualified
entities that demonstrate a history of
successfully implementing energy efficiency
improvement programs for small- and medium-
sized manufacturers.
(ii) Priority.--In making selections under
clause (i), the Secretary shall give priority
to qualified entities that demonstrate--
(I) effective methods for reducing
barriers to entry that might otherwise
prevent small- and medium-sized
manufacturers from participating in the
subgrant program under subsection (c);
(II) flexibility in addressing the
needs of different small- and medium-
sized manufacturers; and
(III) a commitment to hiring for
projects contractors that comply with
the labor requirements described in
subsection (d)(2).
(c) Subgrants for Energy Efficiency Improvements.--
(1) In general.--A qualified entity (including a
partnership of one or more qualified entities under subsection
(b)(1)(B)) that receives a grant under subsection (a) shall act
as a program manager to distribute subgrants to small- and
medium-sized manufacturers located in the State in which the
program manager is located to carry out projects--
(A) to improve the energy efficiency of the small-
or medium-sized manufacturer; and
(B) to develop technologies to reduce electricity
or natural gas use by the small- or medium-sized
manufacturer.
(2) Applications.--A small- or medium-sized manufacturer
desiring a subgrant under paragraph (1) shall submit to the
program manager an application at such time, in such manner,
and containing such information as the program manager may
require, including a proposal describing the project to be
carried out using the subgrant funds.
(3) Priority.--In selecting small- or medium-sized
manufacturers for subgrants under this subsection, the program
manager shall give priority to small- or medium-sized
manufacturers that commit to hiring for projects contractors
that comply with the labor requirements described in subsection
(d)(2).
(4) Eligibility requirements.--To be eligible to receive a
subgrant under paragraph (1), a small- or medium-sized
manufacturer shall be a private, nongovernmental entity.
(5) Energy management plans.--Each small- or medium-sized
manufacturer receiving a subgrant under paragraph (1), in
consultation with the program manager and, if appropriate, one
or more licensed engineers, shall establish an energy
management plan for the small- or medium-sized manufacturer to
carry out the project.
(6) Effect on title to property.--The receipt of Federal
funds under this subsection shall not prohibit an entity that
purchased equipment or other property using those funds from
owning sole, permanent title to the equipment or other
property.
(d) Contractors.--
(1) In general.--Program managers and small- or medium-
sized manufacturers may hire, if necessary, contractors to
perform work relating to the installation, repair, or
maintenance of equipment used under a project.
(2) Labor requirements.--In an application for a grant or
subgrant under this section, a program manager or a small- or
medium-sized manufacturer, respectively, may commit to hiring
contractors that represent to the best of the knowledge and
belief of the contractor, whether, during the 3-year period
preceding the date of application, any administrative merits
determination, arbitral award or decision, or civil judgment
(as defined in guidance issued by the Secretary of Labor) was
rendered against the contractor for violations of--
(A) the National Labor Relations Act (29 U.S.C. 151
et seq.);
(B) the Fair Labor Standards Act of 1938 (29 U.S.C.
201 et seq.);
(C) the Age Discrimination in Employment Act of
1967 (29 U.S.C. 621 et seq.);
(D) the Occupational Safety and Health Act of 1970
(29 U.S.C. 651 et seq.);
(E) the Migrant and Seasonal Agricultural Worker
Protection Act (29 U.S.C. 1801 et seq.);
(F) the Family and Medical Leave Act of 1993 (29
U.S.C. 2611 et seq.);
(G) subchapter IV of chapter 31 of part A of
subtitle II of title 40, United States Code (commonly
referred to as the ``Davis-Bacon Act'');
(H) chapter 67 of title 41, United States Code;
(I) title VII of the Civil Rights Act of 1964 (42
U.S.C. 2000e et seq.);
(J) the Americans with Disabilities Act of 1990 (42
U.S.C. 12101 et seq.);
(K) Executive Order 11246 (42 U.S.C. 2000e note)
(relating to equal employment opportunity);
(L) Executive Order 13658 (79 Fed. Reg. 9851
(February 20, 2014)) (relating to establishing a
minimum wage for contractors); or
(M) equivalent State laws.
(3) Additional labor requirements.--A program manager or
small- or medium-sized manufacturer receiving a grant or
subgrant, respectively, under this section that has committed
to complying with the labor requirements described in paragraph
(2)--
(A) shall provide each contractor an opportunity to
disclose any steps taken to correct a violation of, or
improve compliance with, a law or Executive order
described in any of subparagraphs (A) through (M) of
paragraph (2), including any agreements entered into
with an enforcement agency;
(B) shall give preference to contractors that have
the fewest number of violations (particularly serious,
repeated, willful, or pervasive violations) of the laws
and Executive orders described in subparagraphs (A)
through (M) of paragraph (2); and
(C) shall not hire contractors that fail to take
steps to correct violations of, or improve compliance
with, a law or Executive order described in any of
subparagraphs (A) through (M) of paragraph (2).
(e) American Iron, Steel, and Manufactured Products.--
(1) Definitions.--In this subsection:
(A) Iron or steel manufactured product.--The term
``iron or steel manufactured product'' includes any
construction material or end product (as those terms
are defined in subpart 25.003 of the Federal
Acquisition Regulation) that does not otherwise qualify
as an iron or steel product, including--
(i) an electrical component;
(ii) a non-ferrous building material,
including--
(I) aluminum and polyvinylchloride;
(II) glass;
(III) fiber optics;
(IV) plastic;
(V) wood;
(VI) masonry;
(VII) rubber;
(VIII) manufactured stone; and
(IX) any other non-ferrous building
materials; and
(iii) any unmanufactured construction
material.
(B) Produced in the united states.--
(i) In general.--The term ``produced in the
United States''--
(I) with respect to an iron or
steel product or an iron or steel
manufactured product, means that all
manufacturing processes for, and
materials and components of, the iron
or steel product or iron or steel
manufactured product, from the initial
melting stage through the application
of coatings, occurred in the United
States; and
(II) with respect to an iron or
steel manufactured product, means
that--
(aa) the iron or steel
manufactured product was
manufactured in the United
States; and
(bb) the cost of the
components of the iron or steel
manufactured product that were
mined, produced, or
manufactured in the United
States is greater than 60
percent of the total cost of
the components of the iron or
steel manufactured product.
(ii) Exclusions.--The term ``produced in
the United States'', with respect to an iron or
steel product or an iron or steel manufactured
product, does not include an iron or steel
product or an iron or steel manufactured
product that was manufactured--
(I) abroad from semi-finished steel
or iron from the United States; or
(II) in the United States from
semi-finished steel or iron of foreign
origin.
(2) Requirement.--Funds made available under the program
may not be used for a project unless all of the iron and steel
products and iron and steel manufactured products used in the
project are produced in the United States.
(3) Waiver.--
(A) In general.--On request of the recipient of a
grant under the program, the Secretary may grant for
the project of the recipient of the grant a waiver of
the requirement described in paragraph (2) if the
Secretary finds that--
(i) the application of paragraph (2) would
be inconsistent with the public interest;
(ii) iron or steel products or iron or
steel manufactured products are not produced in
the United States--
(I) in sufficient and reasonably
available quantities; or
(II) of a satisfactory quality; or
(iii) the inclusion of iron or steel
products or iron or steel manufactured products
produced in the United States would increase
the cost of the overall project by greater than
25 percent.
(B) Public notice.--On receipt of a request for a
waiver under subparagraph (A), the Secretary shall--
(i) make available to the public, including
by electronic means, including on the official
public website of the Department of Energy, on
an informal basis, a copy of the request and
all information available to the Secretary
relating to the request; and
(ii) provide for informal public input on
the request for a period of not fewer than 15
days before making with respect to the request
the finding described in subparagraph (A).
(f) Reporting Requirements.--
(1) In general.--Each program manager shall--
(A) determine what data shall be required--
(i) to be collected by or from each small-
or medium-sized manufacturer receiving a
subgrant under subsection (c); and
(ii) to be submitted to the program manager
to permit analysis of the subgrant program
under subsection (c); and
(B) develop metrics to determine the success of the
subgrant program under subsection (c).
(2) Provision of data.--As a condition of receiving a
subgrant under subsection (c), a small- or medium-sized
manufacturer shall provide to the program manager relevant
data, as determined by the program manager under paragraph
(1)(A).
(3) Proprietary information.--In carrying out this
subsection, each program manager, as appropriate, shall provide
for the protection of proprietary information and intellectual
property rights.
(g) Funding.--
(1) In general.--Out of amounts made available to the
Secretary and not otherwise obligated, the Secretary shall use
to carry out this section not more than $600,000,000.
(2) Requirements for program managers.--A program manager
shall use not greater than 7 percent of the grant funds
received by the program manager, at the discretion of the
program manager--
(A) to hire and train staff to assist the program
manager in administering the subgrant program of the
program manager; and
(B) to market the subgrant program to small- and
medium-sized manufacturers.
(3) Management and oversight.--The Secretary may use not
greater than 0.25 percent of the funds made available under
paragraph (1) to carry out subsection (e).
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