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 referred to the Committee on Science, Space, and Technology, and in addition to the Committee on Energy and Commerce, for a period to be subsequently 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 financial assistance to promote energy efficiency and onsite 

renewable technologies in manufacturing facilities, 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, 


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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Job Creation through 

3 Energy Efficient Manufacturing Act’’. 

4 SEC. 2. DEFINITIONS. 

5 In this Act: 

6 (1) ENERGY MANAGEMENT PLAN.—The term 

7 ‘‘energy management plan’’ means a plan estab8 lished under section 3(c)(4). 

9 (2) INDIAN TRIBE.—The term ‘‘Indian tribe’’ 

10 has the meaning given the term in section 4 of the 

11 Indian Self-Determination and Education Assistance 

12 Act (25 U.S.C. 5304). 

13 (3) PROGRAM.—The term ‘‘program’’ means 

14 the Financing Energy Efficient Manufacturing Pro15 gram established under section 3(a). 

16 (4) PROGRAM MANAGER.—The term ‘‘program 

17 manager’’ means a qualified entity that receives a 

18 grant under section 3(a). 

19 (5) PROJECT.—The term ‘‘project’’ means an 

20 energy efficiency improvement project carried out by 

21 a small- or medium-sized manufacturer using grant 

22 funds distributed by a project manager. 

23 (6) QUALIFIED ENTITY.—The term ‘‘qualified 

24 entity’’ means— 

25 (A) a State energy office; 

26 (B) an Indian tribe; 


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1 (C) a nonprofit organization that— 

2 (i) is focused on providing energy effi3 ciency or renewable energy services; and 

4 (ii) receives funding from a State, In5 dian tribe, or utility; 

6 (D) an electric cooperative group; and 

7 (E) an entity with a public-private partner8 ship under the Hollings Manufacturing Exten9 sion Partnership established under section 

10 25(b) of the National Institute of Standards 

11 and Technology Act (15 U.S.C. 278k(b)). 

12 (7) SECRETARY.—The term ‘‘Secretary’’ means 

13 the Secretary of Energy. 

14 (8) SMALL- OR MEDIUM-SIZED MANUFAC15 TURER.—The term ‘‘small- or medium-sized manu16 facturer’’ means a manufacturing establishment— 

17 (A) classified in Sector 31, 32, or 33 in the 

18 North American Industry Classification System; 

19 and 

20 (B) that employs not more than 750 em21 ployees. 

22 SEC. 3. FINANCING ENERGY EFFICIENT MANUFACTURING 

23 PROGRAM. 

24 (a) ESTABLISHMENT.—The Secretary shall establish 

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1 cient Manufacturing Program’’ to provide grants to quali2 fied entities to fund energy efficiency improvement 

3 projects in the manufacturing sector. 

4 (b) GRANT APPLICATIONS; SELECTION OF GRANT

5 RECIPIENTS.— 

6 (1) GRANT APPLICATIONS.— 

7 (A) IN GENERAL.—Not later than 180 

8 days after the date of enactment of this Act, 

9 qualified entities desiring a grant under sub10 section (a) shall submit to the Secretary an ap11 plication in such manner and containing such 

12 information as the Secretary may require, in13 cluding a description of— 

14 (i) how the qualified entity will work 

15 with small- and medium-sized manufactur16 ers to assess the most promising opportu17 nities for energy efficiency improvements; 

18 (ii) how the qualified entity will work 

19 with small- and medium-sized manufactur20 ers and, if appropriate, licensed engineers 

21 to establish an energy management plan 

22 for the small- or medium-sized manufac23 turer to carry out a project; 

24 (iii) the methods and cost-sharing 

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1 tribute funds to small- and medium-sized 

2 manufacturers to subsidize the costs of 

3 carrying out a project; 

4 (iv) the standards by which the quali5 fied entity will set energy efficiency goals 

6 for a project that will result in meaningful 

7 reductions in electricity or natural gas use 

8 by the small- or medium-sized manufac9 turer carrying out the project; 

10 (v) how the qualified entity will pro11 vide support to the small- or medium-sized 

12 manufacturer carrying out a project during 

13 the implementation of the energy manage14 ment plan; 

15 (vi)(I) any history of the qualified en16 tity of working collaboratively with the re17 gional technical assistance programs of the 

18 Department of Energy; and 

19 (II) how the qualified entity plans to 

20 involve the regional technical assistance 

21 programs in the activities to be funded by 

22 a grant; and 

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1 mentation of the energy management 

2 plan— 

3 (I) to demonstrate how energy ef4 ficiency improvements are being 

5 achieved; and 

6 (II) to maximize opportunities 

7 for project success. 

8 (B) PARTNERSHIPS.—Two or more quali9 fied entities may form a partnership to apply, 

10 and act as program manager, for a grant under 

11 this subsection. 

12 (2) SELECTION OF GRANT RECIPIENTS.— 

13 (A) IN GENERAL.—Not later than 90 days 

14 after the date on which the Secretary receives 

15 an application under paragraph (1), the Sec16 retary shall— 

17 (i) review the application; 

18 (ii) provide the applicant with an op19 portunity to respond to any questions of 

20 the Secretary regarding the application; 

21 and 

22 (iii) select or deny the applicant based 

23 on the criteria described in subparagraph 

24 (B). 

25 (B) SELECTION CRITERIA.— 


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1 (i) IN GENERAL.—The Secretary shall 

2 select for grants under this subsection 

3 qualified entities that demonstrate a his4 tory of successfully implementing energy 

5 efficiency improvement programs for small6 and medium-sized manufacturers. 

7 (ii) PRIORITY.—In making selections 

8 under clause (i), the Secretary shall give 

9 priority to qualified entities that dem10 onstrate— 

11 (I) effective methods for reducing 

12 barriers to entry that might otherwise 

13 prevent small- and medium-sized man14 ufacturers from participating in the 

15 subgrant program under subsection 

16 (c); 

17 (II) flexibility in addressing the 

18 needs of different small- and medium19 sized manufacturers; and 

20 (III) a commitment to hiring for 

21 projects contractors that comply with 

22 the labor requirements described in 

23 subsection (d)(2). 

24 (c) SUBGRANTS FOR ENERGY EFFICIENCY IMPROVE25 MENTS.— 


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1 (1) IN GENERAL.—A qualified entity (including 

2 a partnership of one or more qualified entities under 

3 subsection (b)(1)(B)) that receives a grant under 

4 subsection (a) shall act as a program manager to 

5 distribute subgrants to small- and medium-sized 

6 manufacturers located in the State in which the pro7 gram manager is located to carry out projects— 

8 (A) to improve the energy efficiency of the 

9 small- or medium-sized manufacturer; and 

10 (B) to develop technologies to reduce elec11 tricity or natural gas use by the small- or me12 dium-sized manufacturer. 

13 (2) APPLICATIONS.—A small- or medium-sized 

14 manufacturer desiring a subgrant under paragraph 

15 (1) shall submit to the program manager an applica16 tion at such time, in such manner, and containing 

17 such information as the program manager may re18 quire, including a proposal describing the project to 

19 be carried out using the subgrant funds. 

20 (3) PRIORITY.—In selecting small- or medium21 sized manufacturers for subgrants under this sub22 section, the program manager shall give priority to 

23 small- or medium-sized manufacturers that commit 

24 to hiring for projects contractors that comply with 


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1 the labor requirements described in subsection 

2 (d)(2). 

3 (4) ELIGIBILITY REQUIREMENTS.—To be eligi4 ble to receive a subgrant under paragraph (1), a 

5 small- or medium-sized manufacturer shall be a pri6 vate, nongovernmental entity. 

7 (5) ENERGY MANAGEMENT PLANS.—Each 

8 small- or medium-sized manufacturer receiving a 

9 subgrant under paragraph (1), in consultation with 

10 the program manager and, if appropriate, one or 

11 more licensed engineers, shall establish an energy 

12 management plan for the small- or medium-sized 

13 manufacturer to carry out the project. 

14 (6) EFFECT ON TITLE TO PROPERTY.—The re15 ceipt of Federal funds under this subsection shall 

16 not prohibit an entity that purchased equipment or 

17 other property using those funds from owning sole, 

18 permanent title to the equipment or other property. 

19 (d) CONTRACTORS.— 

20 (1) IN GENERAL.—Program managers and 

21 small- or medium-sized manufacturers may hire, if 

22 necessary, contractors to perform work relating to 

23 the installation, repair, or maintenance of equipment 

24 used under a project. 


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1 (2) LABOR REQUIREMENTS.—In an application 

2 for a grant or subgrant under this section, a pro3 gram manager or a small- or medium-sized manu4 facturer, respectively, may commit to hiring contrac5 tors that represent to the best of the knowledge and 

6 belief of the contractor, whether, during the 3-year 

7 period preceding the date of application, any admin8 istrative merits determination, arbitral award or de9 cision, or civil judgment (as defined in guidance 

10 issued by the Secretary of Labor) was rendered 

11 against the contractor for violations of— 

12 (A) the National Labor Relations Act (29 

13 U.S.C. 151 et seq.); 

14 (B) the Fair Labor Standards Act of 1938 

15 (29 U.S.C. 201 et seq.); 

16 (C) the Age Discrimination in Employment 

17 Act of 1967 (29 U.S.C. 621 et seq.); 

18 (D) the Occupational Safety and Health 

19 Act of 1970 (29 U.S.C. 651 et seq.); 

20 (E) the Migrant and Seasonal Agricultural 

21 Worker Protection Act (29 U.S.C. 1801 et 

22 seq.); 

23 (F) the Family and Medical Leave Act of 

24 1993 (29 U.S.C. 2611 et seq.); 


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1 (G) subchapter IV of chapter 31 of part A 

2 of subtitle II of title 40, United States Code 

3 (commonly referred to as the ‘‘Davis-Bacon 

4 Act’’); 

5 (H) chapter 67 of title 41, United States 

6 Code; 

7 (I) title VII of the Civil Rights Act of 1964 

8 (42 U.S.C. 2000e et seq.); 

9 (J) the Americans with Disabilities Act of 

10 1990 (42 U.S.C. 12101 et seq.); 

11 (K) Executive Order 11246 (42 U.S.C. 

12 2000e note) (relating to equal employment op13 portunity); 

14 (L) Executive Order 13658 (79 Fed. Reg. 

15 9851 (February 20, 2014)) (relating to estab16 lishing a minimum wage for contractors); or 

17 (M) equivalent State laws. 

18 (3) ADDITIONAL LABOR REQUIREMENTS.—A 

19 program manager or small- or medium-sized manu20 facturer receiving a grant or subgrant, respectively, 

21 under this section that has committed to complying 

22 with the labor requirements described in paragraph 

23 (2)— 

24 (A) shall provide each contractor an oppor25 tunity to disclose any steps taken to correct a 


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1 violation of, or improve compliance with, a law 

2 or Executive order described in any of subpara3 graphs (A) through (M) of paragraph (2), in4 cluding any agreements entered into with an 

5 enforcement agency; 

6 (B) shall give preference to contractors 

7 that have the fewest number of violations (par8 ticularly serious, repeated, willful, or pervasive 

9 violations) of the laws and Executive orders de10 scribed in subparagraphs (A) through (M) of 

11 paragraph (2); and 

12 (C) shall not hire contractors that fail to 

13 take steps to correct violations of, or improve 

14 compliance with, a law or Executive order de15 scribed in any of subparagraphs (A) through 

16 (M) of paragraph (2). 

17 (e) AMERICAN IRON, STEEL, AND MANUFACTURED

18 PRODUCTS.— 

19 (1) DEFINITIONS.—In this subsection: 

20 (A) IRON OR STEEL MANUFACTURED

21 PRODUCT.—The term ‘‘iron or steel manufac22 tured product’’ includes any construction mate23 rial or end product (as those terms are defined 

24 in subpart 25.003 of the Federal Acquisition 


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1 Regulation) that does not otherwise qualify as 

2 an iron or steel product, including— 

3 (i) an electrical component; 

4 (ii) a non-ferrous building material, 

5 including— 

6 (I) aluminum and polyvinylchlor7 ide; 

8 (II) glass; 

9 (III) fiber optics; 

10 (IV) plastic; 

11 (V) wood; 

12 (VI) masonry; 

13 (VII) rubber; 

14 (VIII) manufactured stone; and 

15 (IX) any other non-ferrous build16 ing materials; and 

17 (iii) any unmanufactured construction 

18 material. 

19 (B) PRODUCED IN THE UNITED STATES.— 

20 (i) IN GENERAL.—The term ‘‘pro21 duced in the United States’’— 

22 (I) with respect to an iron or 

23 steel product or an iron or steel man24 ufactured product, means that all 

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1 terials and components of, the iron or 

2 steel product or iron or steel manufac3 tured product, from the initial melting 

4 stage through the application of coat5 ings, occurred in the United States; 

6 and 

7 (II) with respect to an iron or 

8 steel manufactured product, means 

9 that— 

10 (aa) the iron or steel manu11 factured product was manufac12 tured in the United States; and 

13 (bb) the cost of the compo14 nents of the iron or steel manu15 factured product that were 

16 mined, produced, or manufac17 tured in the United States is 

18 greater than 60 percent of the 

19 total cost of the components of 

20 the iron or steel manufactured 

21 product. 

22 (ii) EXCLUSIONS.—The term ‘‘pro23 duced in the United States’’, with respect 

24 to an iron or steel product or an iron or 

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1 clude an iron or steel product or an iron 

2 or steel manufactured product that was 

3 manufactured— 

4 (I) abroad from semi-finished 

5 steel or iron from the United States; 

6 or 

7 (II) in the United States from 

8 semi-finished steel or iron of foreign 

9 origin. 

10 (2) REQUIREMENT.—Funds made available 

11 under the program may not be used for a project 

12 unless all of the iron and steel products and iron 

13 and steel manufactured products used in the project 

14 are produced in the United States. 

15 (3) WAIVER.— 

16 (A) IN GENERAL.—On request of the re17 cipient of a grant under the program, the Sec18 retary may grant for the project of the recipient 

19 of the grant a waiver of the requirement de20 scribed in paragraph (2) if the Secretary finds 

21 that— 

22 (i) the application of paragraph (2) 

23 would be inconsistent with the public inter24 est; 


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1 (ii) iron or steel products or iron or 

2 steel manufactured products are not pro3 duced in the United States— 

4 (I) in sufficient and reasonably 

5 available quantities; or 

6 (II) of a satisfactory quality; or 

7 (iii) the inclusion of iron or steel prod8 ucts or iron or steel manufactured prod9 ucts produced in the United States would 

10 increase the cost of the overall project by 

11 greater than 25 percent. 

12 (B) PUBLIC NOTICE.—On receipt of a re13 quest for a waiver under subparagraph (A), the 

14 Secretary shall— 

15 (i) make available to the public, in16 cluding by electronic means, including on 

17 the official public website of the Depart18 ment of Energy, on an informal basis, a 

19 copy of the request and all information 

20 available to the Secretary relating to the 

21 request; and 

22 (ii) provide for informal public input 

23 on the request for a period of not fewer 

24 than 15 days before making with respect 


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1 to the request the finding described in sub2 paragraph (A). 

3 (f) REPORTING REQUIREMENTS.— 

4 (1) IN GENERAL.—Each program manager 

5 shall— 

6 (A) determine what data shall be re7 quired— 

8 (i) to be collected by or from each 

9 small- or medium-sized manufacturer re10 ceiving a subgrant under subsection (c); 

11 and 

12 (ii) to be submitted to the program 

13 manager to permit analysis of the subgrant 

14 program under subsection (c); and 

15 (B) develop metrics to determine the suc16 cess of the subgrant program under subsection 

17 (c). 

18 (2) PROVISION OF DATA.—As a condition of re19 ceiving a subgrant under subsection (c), a small- or 

20 medium-sized manufacturer shall provide to the pro21 gram manager relevant data, as determined by the 

22 program manager under paragraph (1)(A). 

23 (3) PROPRIETARY INFORMATION.—In carrying 

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1 propriate, shall provide for the protection of propri2 etary information and intellectual property rights. 

3 (g) FUNDING.— 

4 (1) IN GENERAL.—Out of amounts made avail5 able to the Secretary and not otherwise obligated, 

6 the Secretary shall use to carry out this section not 

7 more than $600,000,000. 

8 (2) REQUIREMENTS FOR PROGRAM MAN9 AGERS.—A program manager shall use not greater 

10 than 7 percent of the grant funds received by the 

11 program manager, at the discretion of the program 

12 manager— 

13 (A) to hire and train staff to assist the 

14 program manager in administering the sub15 grant program of the program manager; and 

16 (B) to market the subgrant program to 

17 small- and medium-sized manufacturers. 

18 (3) MANAGEMENT AND OVERSIGHT.—The Sec19 retary may use not greater than 0.25 percent of the 

20 funds made available under paragraph (1) to carry 

21 out subsection (e). 

Æ 


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