II 

118TH CONGRESS 

2D SESSION S. 5622 

To amend the Energy Policy Act of 2005 to establish an energy efficient 

appliance rebate program to provide rebates for the manufacturing, distribution, contracting, installation, and servicing of certain building electrification products and industrial heat pumps, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

DECEMBER 19 (legislative day, DECEMBER 16), 2024 

Mr. MARKEY (for himself and Mr. SANDERS) introduced the following bill; 

which was read twice and referred to the Committee on Finance 

A BILL 

To amend the Energy Policy Act of 2005 to establish an 

energy efficient appliance rebate program to provide rebates for the manufacturing, distribution, contracting, 

installation, and servicing of certain building electrification products and industrial heat pumps, and for other 

purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Installing Clean Effi5 cient Energy Hastens Our Transition Act of 2024’’ or the 

6 ‘‘ICEE HOT Act of 2024’’. 


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1 SEC. 2. ENERGY EFFICIENT APPLIANCE REBATE PROGRAM. 

2 (a) DEFINITIONS.—Section 124(a) of the Energy 

3 Policy Act of 2005 (42 U.S.C. 15821(a)) is amended— 

4 (1) by redesignating paragraphs (1) through 

5 (5) as paragraphs (8), (9), (15), (17), and (18), re6 spectively; 

7 (2) by inserting before paragraph (8) (as so re8 designated) the following: 

9 ‘‘(1) CONTRACTOR.—The term ‘contractor’ 

10 means any individual or business entity that is li11 censed under applicable State or local laws to install, 

12 service, maintain, or repair eligible building elec13 trification products, including general contractors, 

14 electricians, HVAC specialists, and plumbers en15 gaged in the installation and servicing of energy-effi16 cient appliances. 

17 ‘‘(2) DISADVANTAGED BUSINESS.—The term 

18 ‘disadvantaged business’ means a contractor, dis19 tributor, or original equipment manufacturer that is 

20 a small business participating in the minority small 

21 business and capital ownership development program 

22 of the Small Business Administration pursuant to 

23 section 8(a) of the Small Business Act (15 U.S.C. 

24 637(a)) (commonly known as the ‘8(a) program’). 

25 ‘‘(3) DISADVANTAGED INDIVIDUAL.—The term 

26 ‘disadvantaged individual’ means— 


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1 ‘‘(A) a Black American, Hispanic Amer2 ican, Native American, Asian Pacific American, 

3 any other minority, or any other individual 

4 found to be disadvantaged by the Small Busi5 ness Administration pursuant to section 8(a) of 

6 the Small Business Act (15 U.S.C. 637(a)); and 

7 ‘‘(B) a woman. 

8 ‘‘(4) DISTRIBUTOR.—The term ‘distributor’ 

9 means any individual or business entity to which an 

10 eligible building electrification product is delivered or 

11 sold for purposes of distribution in commerce. 

12 ‘‘(5) ELECTRIC RESIDENTIAL COLD CLIMATE

13 HEAT PUMP.—The term ‘electric residential cold cli14 mate heat pump’ means a heat pump that— 

15 ‘‘(A) is certified under the Energy Star 

16 program; 

17 ‘‘(B) is optimized for peak heating and 

18 part-load cooling performance; and 

19 ‘‘(C) meets— 

20 ‘‘(i) the cold climate air source heat 

21 pump specifications of the Northeast En22 ergy Efficiency Partnerships; or 

23 ‘‘(ii) the criteria for cold climate heat 

24 pumps under the Energy Star program. 


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1 ‘‘(6) ELECTRIC RESIDENTIAL HEAT PUMP

2 WATER HEATER.—The term ‘electric residential heat 

3 pump water heater’ means an electric heat pump 

4 water heater for residential use that is certified 

5 under the Energy Star program. 

6 ‘‘(7) ELIGIBLE BUILDING ELECTRIFICATION

7 PRODUCT.—The term ‘eligible building electrification 

8 product’ means any of the following United States9 made products or their critical components: 

10 ‘‘(A) An electric residential heat pump 

11 water heater. 

12 ‘‘(B) An electric residential air source heat 

13 pump. 

14 ‘‘(C) An electric residential central geo15 thermal heat pump. 

16 ‘‘(D) An electric residential cold climate 

17 heat pump. 

18 ‘‘(E) An induction or noninduction electric 

19 smooth stove, flat cooktop, range, or oven. 

20 ‘‘(F) An electric heat pump clothes dryer 

21 that— 

22 ‘‘(i) is certified under the Energy Star 

23 program; or 

24 ‘‘(ii) meets a more stringent standard, 

25 as determined by the Secretary, if the SecVerDate Sep 11 2014 21:20 Jan 25, 2025 Jkt 059200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S5622.IS S5622

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1 retary determines a more stringent stand2 ard is appropriate. 

3 ‘‘(G) A smart panel or a panel that is part 

4 of an electric load or service center upgrade. 

5 ‘‘(H) Any product described in subpara6 graphs (A) through (G) installed in a commer7 cial or multifamily building, subject to the con8 dition that the product meets applicable per9 formance standards, as determined by the Sec10 retary. 

11 ‘‘(I) Any other electric product, as deter12 mined by the Secretary.’’; 

13 (3) by inserting after paragraph (9) (as so re14 designated) the following: 

15 ‘‘(10) INDUSTRIAL HEAT PUMP.—The term ‘in16 dustrial heat pump’ means a high-capacity heat 

17 pump that— 

18 ‘‘(A) is capable of providing thermal en19 ergy at temperatures above 65 degrees Celsius 

20 or 150 degrees Fahrenheit, suitable for indus21 trial processes, including manufacturing proc22 essing, drying, distillation, pasteurization, and 

23 steam production; 

24 ‘‘(B) incorporates technology that— 


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1 ‘‘(i) enables waste heat recovery or en2 ergy reuse, if feasible, and conversion to 

3 useful thermal output; and 

4 ‘‘(ii) adheres to specifications estab5 lished by the Secretary to ensure thermal 

6 efficiency and reduce carbon emissions; 

7 and 

8 ‘‘(C) meets recognized performance and ef9 ficiency standards for industrial applications, as 

10 defined by the American Society of Heating, 

11 Refrigerating, and Air-Conditioning Engineers, 

12 or equivalent industry standards as specified by 

13 the Secretary. 

14 ‘‘(11) MIDSTREAM REBATE.—The term ‘mid15 stream rebate’ means a rebate provided by a State 

16 to a distributor or contractor under a State program 

17 described in subsection (b)(1)(A)(ii). 

18 ‘‘(12) ORIGINAL EQUIPMENT MANUFAC19 TURER.—The term ‘original equipment manufac20 turer’ means an entity that manufactures eligible 

21 building electrification products. 

22 ‘‘(13) RESIDENTIAL AIR SOURCE HEAT PUMP.— 

23 The term ‘residential air source heat pump’ means 

24 a heat pump or central air conditioner (as defined 


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1 in section 321(21) of the Energy Policy and Con2 servation Act (42 U.S.C. 6291(21))) that— 

3 ‘‘(A) notwithstanding subparagraph (E) of 

4 that section, is a heating and cooling unit and 

5 includes both ducted and ductless configura6 tions; and 

7 ‘‘(B) is certified under the Energy Star 

8 program. 

9 ‘‘(14) RESIDENTIAL CENTRAL GEOTHERMAL

10 HEAT PUMP.—The term ‘residential central geo11 thermal heat pump’ means equipment designed for 

12 residential use that— 

13 ‘‘(A) uses the ground or groundwater as a 

14 thermal energy source to provide heating and 

15 cooling; and 

16 ‘‘(B) is certified under the Energy Star 

17 program or meets efficiency and performance 

18 standards established by the Secretary.’’; 

19 (4) by inserting after paragraph (15) (as so re20 designated) the following: 

21 ‘‘(16) SMART PANEL.—The term ‘smart panel’ 

22 means an electrical power distribution panel with an 

23 integrated communications and energy management 

24 system capable of— 


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1 ‘‘(A) interoperability with electric utility 

2 distribution networks; and 

3 ‘‘(B) monitoring and controlling individual 

4 circuits to ensure that the total load on the 

5 electrical service does not exceed a programmed 

6 set-point.’’; 

7 (5) in paragraph (18) (as so redesignated), by 

8 striking ‘‘(b)(1)’’ and inserting ‘‘(b)(1)(A)’’; and 

9 (6) by adding at the end the following: 

10 ‘‘(19) UNITED STATES-MADE.— 

11 ‘‘(A) IN GENERAL.—The term ‘United 

12 States-made’, with respect to an eligible build13 ing electrification product, means that the total 

14 cost of components of the eligible building elec15 trification product that are mined, produced, or 

16 manufactured, as applicable, in the United 

17 States, as determined by the Secretary, is not 

18 less than 55 percent of the total cost of all of 

19 the components of the eligible building elec20 trification product, unless a waiver is made in 

21 accordance with subparagraph (B). 

22 ‘‘(B) WAIVER.— 

23 ‘‘(i) IN GENERAL.—The Secretary 

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1 made’ is used in this subtitle if the Sec2 retary finds that— 

3 ‘‘(I) applying the requirement 

4 would be inconsistent with the public 

5 interest; 

6 ‘‘(II) 1 or more components of 

7 the eligible building electrification 

8 product are not produced in the 

9 United States in sufficient and rea10 sonably available quantities or of a 

11 satisfactory quality; or 

12 ‘‘(III) the inclusion of 1 or more 

13 components of the eligible building 

14 electrification product produced in the 

15 United States will increase the cost of 

16 the building electrification product by 

17 more than 25 percent. 

18 ‘‘(ii) WRITTEN JUSTIFICATION.—Be19 fore issuing a waiver under clause (i), the 

20 Secretary shall— 

21 ‘‘(I) make publicly available in an 

22 easily accessible location on a website 

23 designated by the Office of Manage24 ment and Budget and on the website 

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1 tailed written explanation for the pro2 posed determination to issue the waiv3 er; and 

4 ‘‘(II) provide a period of not less 

5 than 15 days for public comment on 

6 the proposed waiver. 

7 ‘‘(20) UPSTREAM REBATE.—The term ‘up8 stream rebate’ means a rebate provided by a State 

9 to a distributor or original equipment manufacturer 

10 under a State program described in subsection 

11 (b)(1)(A)(ii).’’. 

12 (b) PROGRAM.—Section 124 of the Energy Policy Act 

13 of 2005 (42 U.S.C. 15821) is amended— 

14 (1) in subsection (b)— 

15 (A) by redesignating paragraphs (1) 

16 through (3) as subparagraphs (A) through (C), 

17 respectively, and indenting appropriately; 

18 (B) in the matter preceding subparagraph 

19 (A) (as so redesignated), by striking ‘‘A State’’ 

20 and inserting the following: 

21 ‘‘(1) IN GENERAL.—A State’’; 

22 (C) in subparagraph (A) (as so redesig23 nated)— 

24 (i) by striking ‘‘program to provide’’ 

25 and inserting the following: ‘‘program— 


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1 ‘‘(i) to provide’’; 

2 (ii) in clause (i) (as so designated), by 

3 adding ‘‘or’’ at the end after the semicolon; 

4 and 

5 (iii) by adding at the end the fol6 lowing: 

7 ‘‘(ii) to provide midstream rebates and 

8 upstream rebates to contractors, distribu9 tors, and original equipment manufactur10 ers, as applicable, for 30 percent of the 

11 cost of manufacturing, distributing, install12 ing, or servicing an eligible building elec13 trification product or product component 

14 or an industrial heat pump;’’; and 

15 (D) by adding at the end the following: 

16 ‘‘(2) PURPOSES.—The purpose of the rebates 

17 described in paragraph (1)(A)(ii) are— 

18 ‘‘(A) to resolve barriers that limit the effi19 cient production, distribution, and deployment 

20 of eligible building electrification products and 

21 industrial heat pumps, including— 

22 ‘‘(i) by increasing the production and 

23 availability of residential and industrial24 grade critical components, such as revers25 ing valves, variable speed compressors, or 


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1 other parts necessary for proper 

2 functionality in both heating and cooling 

3 modes; and 

4 ‘‘(ii) addressing other factors, such as 

5 market challenges, product technical re6 quirements, and environmental and equity 

7 goals, with respect to those barriers, as de8 termined by the Secretary, through the 

9 public stakeholder process described in 

10 subsection (g); and 

11 ‘‘(B) in the case of contractors installing 

12 eligible building electrification products and in13 dustrial heat pumps— 

14 ‘‘(i) encourages the installation of ap15 propriately sized heat pumps or other elec16 trification products to encourage the adop17 tion of right-sized and energy-efficient 

18 technologies; and 

19 ‘‘(ii) supports the passing through of 

20 rebates to end users, to the extent prac21 ticable.’’; 

22 (2) in subsection (c)(1), by striking ‘‘subsection 

23 (f)’’ and inserting ‘‘subsection (h)’’; 

24 (3) in subsection (d)— 


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1 (A) by striking ‘‘The allocation’’ and in2 serting the following: 

3 ‘‘(1) IN GENERAL.—The allocation’’; and 

4 (B) by adding at the end the following: 

5 ‘‘(2) DISADVANTAGED BUSINESSES AND INDI6 VIDUALS.—Of the amount used by a State to carry 

7 out a State program described in subsection 

8 (b)(1)(A)(ii), to the extent practicable for specific 

9 technologies, as determined by the Secretary, not 

10 less than 40 percent shall be used to provide mid11 stream rebates and upstream rebates— 

12 ‘‘(A) to disadvantaged businesses; or 

13 ‘‘(B) to contractors, distributors, or origi14 nal equipment manufacturers 40 percent of the 

15 employees of which are disadvantaged individ16 uals.’’; 

17 (4) in subsection (e)— 

18 (A) by redesignating paragraphs (1) 

19 through (3) as subparagraphs (A), (C), and 

20 (D), respectively, and indenting appropriately; 

21 (B) in the matter preceding subparagraph 

22 (A) (as so redesignated), by striking ‘‘Rebates’’ 

23 in the first sentence and all that follows 

24 through ‘‘The amount’’ in the second sentence 

25 and inserting the following: 


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1 ‘‘(1) IN GENERAL.—Rebates may be provided 

2 to— 

3 ‘‘(A) residential consumers that meet the 

4 requirements of the applicable State program 

5 described in subsection (b)(1)(A); and 

6 ‘‘(B) contractors, distributors, and original 

7 equipment manufacturers of eligible building 

8 electrification products and industrial heat 

9 pumps that meet the requirements of the State 

10 program described in clause (ii) of that sub11 section. 

12 ‘‘(2) AMOUNT.—The amount’’; 

13 (C) in paragraph (2) (as so designated)— 

14 (i) in the matter preceding subpara15 graph (A) (as so redesignated)— 

16 (I) by inserting ‘‘under a State 

17 program described in subsection 

18 (b)(1)(A)(i)’’ after ‘‘rebate’’; and 

19 (II) by striking ‘‘consideration— 

20 ’’ and inserting ‘‘consideration, as ap21 plicable—’’; and 

22 (ii) by inserting after subparagraph 

23 (A) (as so redesignated) the following: 

24 ‘‘(B) the amount of any Federal or State 

25 tax incentive available for the manufacturing, 


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1 distribution, or installation of eligible building 

2 electrification products and industrial heat 

3 pumps, including tax credits or rebates offered 

4 under— 

5 ‘‘(i) section 25C, 45L, or 48C of the 

6 Internal Revenue Code of 1986; 

7 ‘‘(ii) a HOMES rebate program (as 

8 defined in section 50121(d) of Public Law 

9 117–169 (commonly known as the ‘Infla10 tion Reduction Act of 2022’) (42 U.S.C. 

11 18795(d))); or 

12 ‘‘(iii) a high-efficiency electric home 

13 rebate program (as defined in section 

14 50122(d) of that Act (42 U.S.C. 

15 18795a(d)));’’; and 

16 (D) by adding at the end the following: 

17 ‘‘(3) ADDITIONAL REBATES.— 

18 ‘‘(A) UNION LABOR.—Under a State pro19 gram described in subsection (b)(1)(A)(ii), a 

20 State energy office shall provide an additional 

21 incentive of 10 percent of the midstream or up22 stream rebate value to contractors, distributors, 

23 and original equipment manufacturers, as appli24 cable, that operate under a collective bargaining 

25 agreement negotiated by a labor organization 


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1 (as defined in section 2 of the National Labor 

2 Relations Act (29 U.S.C. 152)) in accordance 

3 with the requirements of section 9 of the Na4 tional Labor Relations Act (29 U.S.C. 159). 

5 ‘‘(B) HIGH-EFFICIENCY BUILDING ELEC6 TRIFICATION PRODUCTS.—Under a State pro7 gram described in subsection (b)(1)(A)(ii), a 

8 State energy office shall provide additional re9 bates of not more than 10 percent of the cost 

10 of manufacturing, distributing, installing, or 

11 servicing an eligible building electrification 

12 product that exceeds baseline standards under 

13 the Energy Star program or other efficiency 

14 benchmarks approved by the Secretary. 

15 ‘‘(C) HIGH-EFFICIENCY INDUSTRIAL HEAT

16 PUMPS.—Under a State program described in 

17 subsection (b)(1)(A)(ii), a State energy office 

18 shall provide additional rebates of not more 

19 than 10 percent of the cost of manufacturing, 

20 distributing, installing, or servicing an indus21 trial heat pump based on system capacity, en22 ergy savings, emissions reduction, and heat re23 covery functions that exceed baseline standards 

24 for industrial energy efficiency, as determined 

25 by the State energy office.’’; 


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1 (5) by redesignating subsection (f) as sub2 section (h); 

3 (6) by inserting after subsection (e) the fol4 lowing: 

5 ‘‘(f) ADMINISTRATIVE REQUIREMENTS FOR RECIPI6 ENTS OF MIDSTREAM AND UPSTREAM REBATES.— 

7 ‘‘(1) PASS-THROUGH.— 

8 ‘‘(A) IN GENERAL.—Under a State pro9 gram described in subsection (b)(1)(A)(ii), as a 

10 condition of receipt of a midstream rebate or 

11 upstream rebate, a contractor, distributor, or 

12 original equipment manufacturer shall pass 

13 through not less than 85 percent of the value 

14 of the midstream rebate or upstream rebate, as 

15 applicable, to the next entity in the supply 

16 chain or the end consumer in the form of a re17 duced price for the purchase of an eligible 

18 building electrification product or an industrial 

19 heat pump. 

20 ‘‘(B) USE OF REMAINDER.—After carrying 

21 out subparagraph (A), a contractor, distributor, 

22 or original equipment manufacturer may retain 

23 not more than 15 percent of the remainder of 

24 the applicable midstream rebate or upstream 

25 rebate. 


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1 ‘‘(2) PARTICIPATION IN MULTIPLE BUILDING

2 ELECTRIFICATION AND HEAT PUMP PROGRAMS.— 

3 ‘‘(A) IN GENERAL.—The Secretary, in con4 sultation with the Secretary of the Treasury, 

5 shall issue guidelines to simplify participation in 

6 a State program described in subsection 

7 (b)(1)(A)(ii) and any other Federal or State re8 bate or tax credit program relating to energy 

9 efficiency upgrades, building electrification 

10 products, and industrial heat pumps— 

11 ‘‘(i) to ensure that eligible entities can 

12 receive all applicable rebates and tax cred13 its; and 

14 ‘‘(ii) to minimize administrative hur15 dles by providing clear guidance on incen16 tive stacking and documentation require17 ments consistent with Federal and State 

18 building electrification product and indus19 trial heat pump standards. 

20 ‘‘(B) AUTOMATIC APPLICATION.—If a re21 bate is claimed by an eligible entity under a 

22 State program described in subsection 

23 (b)(1)(A)(ii), any other Federal rebate for 

24 which the entity would be eligible relating to en25 ergy efficiency upgrades, building electrification 


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1 products, or industrial heat pumps, as applica2 ble, shall automatically apply. 

3 ‘‘(3) COORDINATION.—An entity that receives a 

4 midstream rebate or upstream rebate for an eligible 

5 building electrification product or industrial heat 

6 pump under a State program described in subsection 

7 (b)(1)(A)(ii) is encouraged to coordinate with Fed8 eral and State agencies, utilities, nonprofit organiza9 tions, and other entities carrying out other relevant 

10 Federal or State rebate programs. 

11 ‘‘(4) NO MULTIPLE MIDSTREAM AND UPSTREAM

12 REBATES.—An entity that receives a midstream re13 bate or upstream rebate under a State program de14 scribed in subsection (b)(1)(A)(ii) for an eligible 

15 building electrification product may not receive— 

16 ‘‘(A) an upstream rebate or midstream re17 bate, respectively, for the same eligible building 

18 electrification product; or 

19 ‘‘(B) a second midstream rebate or up20 stream rebate, respectively, for the same eligible 

21 building electrification product. 

22 ‘‘(5) TAXATION.—A midstream rebate or up23 stream rebate under a State program described in 

24 subsection (b)(1)(A)(ii) shall not be considered to be 


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1 gross income of the recipient of the rebate for pur2 poses of the Internal Revenue Code of 1986. 

3 ‘‘(g) PUBLIC STAKEHOLDER PROCESS.— 

4 ‘‘(1) IN GENERAL.—The Secretary shall estab5 lish a process to solicit input from public stake6 holders in establishing parameters for a State pro7 gram described in subsection (b)(1)(A)(ii). 

8 ‘‘(2) ISSUES.—The Secretary shall solicit input 

9 under the process established under paragraph (1) 

10 on the following issues: 

11 ‘‘(A) Meeting the purposes described in 

12 subsection (b)(2). 

13 ‘‘(B) Boosting production and availability 

14 of residential and industrial heat pumps. 

15 ‘‘(C) Parameters for rebate structure and 

16 eligibility requirements. 

17 ‘‘(D) Technical standards, especially for in18 dustrial heat pumps and new residential heat 

19 pump technology not covered under the Energy 

20 Star program. 

21 ‘‘(E) Any other relevant issue, as deter22 mined by the Secretary.’’; and 

23 (7) in subsection (h) (as so redesignated)— 

24 (A) by striking ‘‘There are’’ and inserting 

25 the following: 


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1 ‘‘(1) IN GENERAL.—There are’’; and 

2 (B) by adding at the end the following: 

3 ‘‘(2) ADDITIONAL AUTHORIZATION OF APPRO4 PRIATIONS.—There is authorized to be appropriated 

5 to the Secretary, to provide allocations under sub6 section (c) only to States that have established a 

7 State program described in subsection (b)(1)(A)(ii), 

8 $10,000,000,000 for the period of fiscal years 2025 

9 through 2032.’’. 

Æ 


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