II 

118TH CONGRESS 

1ST SESSION S. 34 

To require the Secretary of Energy to establish a program to provide loans 

to manufacturers of energy grid products and components. 

IN THE SENATE OF THE UNITED STATES 

JANUARY 24 (legislative day, JANUARY 3), 2023 

Mr. RUBIO introduced the following bill; which was read twice and referred 

to the Committee on Energy and Natural Resources 

A BILL 

To require the Secretary of Energy to establish a program 

to provide loans to manufacturers of energy grid products and components. 

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 ‘‘Facilitating the Re5 shoring of Energy Grid Component Manufacturing Act of 

6 2023’’. 

7 SEC. 2. ENERGY GRID PRODUCT AND COMPONENT MANU8 FACTURING IN THE UNITED STATES. 

9 (a) DEFINITIONS.—In this section: 


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1 (1) COMPONENT.—The term ‘‘component’’ 

2 means any part or element of an energy grid prod3 uct. 

4 (2) ELIGIBLE PROJECT.—The term ‘‘eligible 

5 project’’ means a project to reequip, expand, or es6 tablish (including through new construction) a man7 ufacturing facility in the United States to produce 

8 energy grid products or components. 

9 (3) ENERGY GRID PRODUCT.—The term ‘‘en10 ergy grid product’’ means— 

11 (A) a bulk-power system (as defined in sec12 tion 215(a) of the Federal Power Act (16 

13 U.S.C. 824o(a))); 

14 (B) a large power transformer; 

15 (C) a switchgear or breaker; 

16 (D) a converter; 

17 (E) a direct current filter; 

18 (F) an alternating current switch or 

19 switchyard; 

20 (G) an insulated-gate bipolar transistor; 

21 (H) a capacitor; 

22 (I) an inductor; 

23 (J) an arrestor; 

24 (K) a resistor; 

25 (L) a distribution transformer; 


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1 (M) grain-oriented electrical steel; 

2 (N) continuously transposed conduction 

3 (CTC) copper wire; 

4 (O) silicon steel; 

5 (P) any insulating material; and 

6 (Q) any other electrical equipment com7 monly used for the transmission or distribution 

8 of electric energy by public electric utilities. 

9 (4) SECRETARY.—The term ‘‘Secretary’’ means 

10 the Secretary of Energy. 

11 (b) LOAN PROGRAM.— 

12 (1) ESTABLISHMENT.— 

13 (A) IN GENERAL.—Not later than 180 

14 days after the date of enactment of this Act, 

15 and subject to the availability of appropriated 

16 funds, the Secretary shall establish and carry 

17 out a program to provide a total of not more 

18 than $8,000,000,000 in loans to eligible individ19 uals and entities (as determined by the Sec20 retary) for the costs of activities relating to eli21 gible projects. 

22 (B) FINANCING METHOD.— 

23 (i) IN GENERAL.—Except as provided 

24 in clause (ii), a loan under this subsection 

25 shall be provided through the Federal FiVerDate Sep 11 2014 01:08 Jan 27, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S34.IS S34

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1 nancing Bank, with the full faith and cred2 it of the United States Government on the 

3 principal and interest. 

4 (ii) COOPERATION WITH OTHER INSTI5 TUTIONS.—A loan under this subsection 

6 may be provided in cooperation with 1 or 

7 more banks or other financial institutions 

8 through agreements to participate on an 

9 immediate or deferred (guaranteed) basis. 

10 (C) CREDIT SUBSIDY.—The full credit sub11 sidy for each loan provided under this sub12 section shall be paid by the Secretary using ap13 propriated funds. 

14 (2) APPLICATION.—An individual or entity de15 siring a loan under this subsection shall submit to 

16 the Secretary an application at such time, in such 

17 manner, and containing such information as the Sec18 retary may require, including a written assurance 

19 that— 

20 (A) all laborers and mechanics employed 

21 by contractors or subcontractors during any 

22 construction, alteration, or repair that is fi23 nanced, in whole or in part, by a loan provided 

24 under this subsection shall be paid wages at 

25 rates not less than those prevailing on projects 


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1 of a character similar in the locality, as deter2 mined by the Secretary of Labor in accordance 

3 with sections 3141 through 3144, 3146, and 

4 3147 of title 40, United States Code; and 

5 (B) the Secretary of Labor shall, with re6 spect to the labor standards described in this 

7 paragraph, have the authority and functions set 

8 forth in Reorganization Plan Numbered 14 of 

9 1950 (5 U.S.C. App.) and section 3145 of title 

10 40, United States Code. 

11 (3) SELECTION OF LOAN RECIPIENTS AND ELI12 GIBLE PROJECTS.— 

13 (A) IN GENERAL.—The Secretary may 

14 provide a loan under this subsection if the Sec15 retary determines that— 

16 (i) the loan recipient— 

17 (I) has a reasonable prospect of 

18 repaying the principal and interest on 

19 the loan; 

20 (II) will provide sufficient infor21 mation to the Secretary for the Sec22 retary to ensure that the loan pro23 ceeds are expended efficiently and ef24 fectively; and 


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1 (III) has met such other criteria 

2 as may be established and published 

3 by the Secretary; and 

4 (ii) the amount of the loan (when 

5 combined with amounts available to the 

6 loan recipient from other sources) will be 

7 sufficient to carry out the eligible project 

8 for which the loan is provided. 

9 (B) REASONABLE PROSPECT OF REPAY10 MENT.—The Secretary shall base a determina11 tion of whether there is a reasonable prospect 

12 of repayment of the principal and interest on a 

13 loan under subparagraph (A)(i)(I) on a com14 prehensive evaluation of whether the loan re15 cipient has a reasonable prospect of repaying 

16 the principal and interest, including, as applica17 ble, an evaluation of— 

18 (i) the strength of the contractual 

19 terms of the applicable eligible project (if 

20 commercially reasonably available); 

21 (ii) the forecast of noncontractual 

22 cash flows supported by market projections 

23 from reputable sources, as determined by 

24 the Secretary; 


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1 (iii) cash sweeps and other structure 

2 enhancements; 

3 (iv) the projected financial strength of 

4 the loan recipient— 

5 (I) at the time of loan close; and 

6 (II) throughout the loan term 

7 after the applicable eligible project is 

8 completed; 

9 (v) the financial strength of the inves10 tors and strategic partners of the loan re11 cipient, if applicable; and 

12 (vi) other financial metrics and anal13 yses that are relied on by the private lend14 ing community and nationally recognized 

15 credit rating agencies, as determined to be 

16 appropriate by the Secretary. 

17 (4) RATES, TERMS, AND REPAYMENT OF

18 LOANS.—A loan provided under this subsection— 

19 (A) shall have an interest rate that, as of 

20 the date on which the loan is provided, is equal 

21 to the cost of funds to the Department of the 

22 Treasury for obligations of comparable matu23 rity; 

24 (B) shall have a term equal to the lesser 

25 of— 


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1 (i) the projected life, in years, of the 

2 eligible project to be carried out using pro3 ceeds from the loan, as determined by the 

4 Secretary; and 

5 (ii) 20 years; 

6 (C) may be subject to a deferral in repay7 ment for not more than 5 years after the date 

8 on which the eligible project carried out using 

9 proceeds from the loan first begins operations, 

10 as determined by the Secretary; 

11 (D) shall be made by the Federal Financ12 ing Bank; and 

13 (E) shall be subject to the condition that 

14 the loan is not subordinate to other financing. 

15 (5) CONFLICTS OF INTEREST.—For each loan 

16 provided under this subsection, the Secretary shall 

17 certify that political influence did not affect the pro18 vision of the loan, including— 

19 (A) selection of the eligible project for 

20 which the loan was provided; and 

21 (B) selection of the loan recipient. 

22 (6) ADMINISTRATIVE FEE.—The Secretary may 

23 charge a fee for the administrative and closing costs 

24 of a loan provided under this subsection, subject to 


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1 the condition that the fee does not exceed the lesser 

2 of— 

3 (A) $100,000; and 

4 (B) 10 basis points of the principal 

5 amount of the loan. 

6 (c) IMPROVEMENT.—Not later than 90 days after the 

7 date of enactment of this Act, the Secretary shall promul8 gate an interim final rule establishing regulations that the 

9 Secretary determines to be necessary to administer this 

10 section and any loans provided by the Secretary under 

11 subsection (b). 

12 (d) PRIORITY.— 

13 (1) IN GENERAL.—In providing loans under 

14 this section to manufacturers (including component 

15 suppliers) that have existing facilities, the Secretary 

16 shall give priority to manufacturers that are seeking 

17 to expand manufacturing output through— 

18 (A) the establishment of 1 or more new fa19 cilities; or 

20 (B) the reopening of 1 or more facilities. 

21 (2) IDLE FACILITIES.—A facility described in 

22 subparagraph (A) or (B) of paragraph (1) may be 

23 sitting idle as of the date on which the applicable 

24 loan is provided under this section. 


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1 (e) SET ASIDE FOR SMALL ENERGY GRID PRODUCT

2 MANUFACTURERS AND COMPONENT SUPPLIERS.— 

3 (1) DEFINITION OF COVERED FIRM.—In this 

4 subsection, the term ‘‘covered firm’’ means a firm 

5 that— 

6 (A) employs fewer than 500 individuals; 

7 and 

8 (B) manufactures energy grid products or 

9 components. 

10 (2) SET ASIDE.—Of the amounts used to pro11 vide loans each fiscal year under subsection (b), the 

12 Secretary shall use not less than 5 percent to pro13 vide loans to— 

14 (A) covered firms; or 

15 (B) consortia led by covered firms. 

16 (f) APPOINTMENT AND PAY OF PERSONNEL.— 

17 (1) IN GENERAL.—The Secretary may use di18 rect hiring authority pursuant to section 3304(a)(3) 

19 of title 5, United States Code, to appoint such pro20 fessional and administrative personnel as the Sec21 retary determines to be necessary to carry out this 

22 section and any functions of the Secretary under 

23 this section. 

24 (2) RATE OF PAY.—The rate of pay for a per25 son appointed pursuant to paragraph (1) shall not 


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1 exceed the maximum rate payable for GS–15 of the 

2 General Schedule under chapter 53 of title 5, United 

3 States Code. 

4 (3) CONSULTANTS.—The Secretary may retain, 

5 pursuant to section 1901 of title 41, United States 

6 Code, such consultants as the Secretary determines 

7 to be necessary to carry out this section and any 

8 functions of the Secretary under this section. 

9 (g) OUTREACH.—In carrying out this section, the 

10 Secretary shall— 

11 (1) provide assistance with the completion of 

12 applications for loans under this section; and 

13 (2) conduct outreach, including through con14 ferences and online programs, to disseminate infor15 mation about loans under this section to potential 

16 applicants. 

17 (h) REPORT.—Not later than 2 years after the date 

18 of enactment of this Act, and every 2 years thereafter, 

19 the Secretary shall submit to Congress a report on the 

20 status of projects supported by a loan under this section, 

21 including— 

22 (1) a list of projects for which a loan was pro23 vided under this section, including, with respect to 

24 each project— 

25 (A) the loan amount; and 


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1 (B) the construction status of the project; 

2 (2) the status of the loan repayment for each 

3 project, including future repayment projections; 

4 (3) data regarding the number of direct and in5 direct jobs retained, restored, or created by financed 

6 projects; 

7 (4) a projection of the number of new projects 

8 for which the Secretary expects to provide a loan 

9 under this section during the 2-year period begin10 ning on the date of the report, including the pro11 jected aggregate loan amount over that 2-year pe12 riod; 

13 (5) an evaluation of ongoing compliance with 

14 the assurances and commitments (and the accuracy 

15 of any predictions) made by applicants pursuant to 

16 paragraphs (2) and (3) of subsection (b); 

17 (6) the total number of applications received by 

18 the Secretary each year; and 

19 (7) any other metrics that the Secretary deter20 mines to be appropriate. 

21 (i) FUNDING.— 

22 (1) RESCISSION.—Of the unobligated balance of 

23 amounts made available by section 129 of division A 

24 of the Consolidated Security, Disaster Assistance, 

25 and Continuing Appropriations Act, 2009 (Public 


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1 Law 110–329; 122 Stat. 3578), $2,400,000,000 are 

2 rescinded. 

3 (2) DIRECT APPROPRIATION.—If sufficient un4 obligated amounts made available by section 129 of 

5 division A of the Consolidated Security, Disaster As6 sistance, and Continuing Appropriations Act, 2009 

7 (Public Law 110–329; 122 Stat. 3578), are available 

8 on the date of enactment of this Act to execute the 

9 entire rescission described in paragraph (1), on the 

10 day after the execution of the entire rescission, there 

11 is appropriated to the Secretary, out of amounts in 

12 the Treasury not otherwise appropriated, 

13 $2,400,000,000 to carry out this section, to remain 

14 available until expended. 

Æ 


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