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[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 1617 Introduced in Senate (IS)]

111th CONGRESS
  1st Session
                                S. 1617

  To require the Secretary of Commerce to establish a program for the 
 award of grants to States to establish revolving loan funds for small 
and medium-sized manufacturers to improve energy efficiency and produce 
            clean energy technology, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             August 6, 2009

 Mr. Brown (for himself, Ms. Stabenow, Mr. Bayh, Mrs. Gillibrand, and 
 Mr. Merkley) 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 Commerce to establish a program for the 
 award of grants to States to establish revolving loan funds for small 
and medium-sized manufacturers to improve energy efficiency and produce 
            clean energy technology, 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 ``Investments for Manufacturing 
Progress and Clean Technology Act of 2009'' or the ``IMPACT Act of 
2009''.

SEC. 2. CLEAN ENERGY MANUFACTURING REVOLVING LOAN FUND PROGRAM.

    (a) In General.--Title I of the Emergency Economic Stabilization 
Act of 2008 (12 U.S.C. 5201 et seq.) is amended by adding at the end 
the following:

``SEC. 137. CLEAN ENERGY MANUFACTURING REVOLVING LOAN FUND PROGRAM.

    ``(a) Purposes.--The purposes of this section are as follows:
            ``(1) To develop the long-term manufacturing capacity of 
        the United States.
            ``(2) To create jobs through the retooling and expansion of 
        manufacturing facilities to produce clean energy technology 
        products and energy efficient products.
            ``(3) To improve the long-term competitiveness of domestic 
        manufacturing by increasing the energy efficiency of 
        manufacturing facilities.
            ``(4) To assist small and medium-sized manufacturers 
        diversify operations to respond to emerging clean energy 
        technology product markets.
    ``(b) Definitions.--In this section:
            ``(1) Clean energy technology product.--The term `clean 
        energy technology product' means technology products relating 
        to the following:
                    ``(A) Wind turbines.
                    ``(B) Solar energy.
                    ``(C) Fuel cells.
                    ``(D) Advanced batteries, battery systems, or 
                storage devices.
                    ``(E) Biomass equipment.
                    ``(F) Geothermal equipment.
                    ``(G) Advanced biofuels.
                    ``(H) Ocean energy equipment.
                    ``(I) Carbon capture and storage.
                    ``(J) Such other products as the Secretary 
                determines--
                            ``(i) relate to the production, use, 
                        transmission, storage, control, or conservation 
                        of energy;
                            ``(ii) reduce greenhouse gas 
                        concentrations;
                            ``(iii) achieve the earliest and maximum 
                        emission reductions within a reasonable period 
                        per dollar invested;
                            ``(iv) result in the fewest non-greenhouse 
                        gas environmental impacts; and
                            ``(v) either--
                                    ``(I) reduce the need for 
                                additional energy supplies by--
                                            ``(aa) using existing 
                                        energy supplies with greater 
                                        efficiency; or
                                            ``(bb) by transmitting, 
                                        distributing, or transporting 
                                        energy with greater 
                                        effectiveness through the 
                                        infrastructure of the United 
                                        States; or
                                    ``(II) diversify the sources of 
                                energy supply of the United States--
                                            ``(aa) to strengthen energy 
                                        security; and
                                            ``(bb) to increase supplies 
                                        with a favorable balance of 
                                        environmental effects if the 
                                        entire technology system is 
                                        considered.
            ``(2) Energy efficient product.--The term `energy efficient 
        product' means a product that, as determined by the Secretary 
        in consultation with the Secretary of Energy--
                    ``(A) consumes significantly less energy than the 
                average amount that all similar products consumed on 
                the day before the date of the enactment of this Act; 
                or
                    ``(B) is a component, system, or group of 
                subsystems that is designed, developed, and validated 
                to optimize the energy efficiency of a product.
            ``(3) Hollings manufacturing extension center.--The term 
        `Hollings Manufacturing Extension Center' means a center 
        established under section 25 of the National Institute of 
        Standards and Technology Act (15 U.S.C. 278k).
            ``(4) Hollings manufacturing partnership program.--The term 
        `Hollings Manufacturing Partnership Program' means the program 
        established under sections 25 and 26 of such Act (15 U.S.C. 
        278k and 278l).
            ``(5) Program.--The term `Program' means the grant program 
        established pursuant to subsection (c)(1).
            ``(6) Revolving loan fund.--The term `revolving loan fund' 
        means a revolving loan fund described in subsection (d).
            ``(7) Secretary.--Except as otherwise provided, the term 
        `Secretary' means the Secretary of Commerce.
            ``(8) Small or medium-sized manufacturer.--The term `small 
        or medium-sized manufacturer' means a manufacturer that employs 
        fewer than 500 full-time equivalent employees at a 
        manufacturing facility that is not owned or controlled by an 
        automobile manufacturer.
    ``(c) Grant Program.--
            ``(1) Establishment.--Not later than 120 days after the 
        date of the enactment of this section, the Secretary shall 
        establish a program under which the Secretary shall award 
        grants to States to establish revolving loan funds to provide 
        loans to small and medium-sized manufacturers to finance the 
        cost of--
                    ``(A) reequipping, expanding, or establishing 
                (including applicable engineering costs) a 
                manufacturing facility in the United States to 
                produce--
                            ``(i) clean energy technology products;
                            ``(ii) energy efficient products; or
                            ``(iii) integral component parts of clean 
                        energy technology products or energy efficient 
                        products; or
                    ``(B) reducing the energy intensity or greenhouse 
                gas production of a manufacturing facility in the 
                United States, including using energy intensive 
                feedstocks.
            ``(2) Maximum amount.--The Secretary may not award a grant 
        under the Program in an amount that exceeds $500,000,000 in any 
        fiscal year.
    ``(d) Criteria for Awarding Grants.--
            ``(1) Matching funds.--The Secretary may make a grant to a 
        State under the Program only if the State agrees to ensure that 
        for each loan provided by the State under the Program, not less 
        than 20 percent of the amount of each loan will come from a 
        non-Federal source.
            ``(2) Administrative costs.--A State receiving a grant 
        under the Program may only use such amount of the grant for the 
        costs of administering the revolving loan fund as the Secretary 
        shall provide in regulations.
            ``(3) Application.--Each State seeking a grant under the 
        Program shall submit to the Secretary an application therefor 
        in such form and in such manner as the Secretary considers 
        appropriate.
            ``(4) Evaluation.--The Secretary shall evaluate and 
        prioritize an application submitted by a State for a grant 
        under the Program on the basis of--
                    ``(A) the description of the revolving loan fund to 
                be established with the grant and how such revolving 
                loan fund will achieve the purposes described in 
                subsection (a);
                    ``(B) whether the State will be able to provide 
                loans from the revolving loan fund to small or medium-
                sized manufacturers before the date that is 120 days 
                after the date on which the State receives the grant;
                    ``(C) a description of how the State will 
                administer the revolving loan fund in coordination with 
                other State and Federal programs, including programs 
                administered by the Assistant Secretary for Economic 
                Development;
                    ``(D) a description of the actual or potential 
                clean energy manufacturing supply chains, including 
                significant component parts, in the region served by 
                the revolving loan fund;
                    ``(E) how the State will target the provision of 
                loans under the Program to manufacturers located in 
                regions characterized by high unemployment and sudden 
                and severe economic dislocation, in particular where 
                mass layoffs have resulted in a precipitous increase in 
                unemployment;
                    ``(F) the availability of a skilled manufacturing 
                workforce in the region served by the revolving loan 
                fund and the capacity of the region's workforce and 
                education systems to provide pathways for unemployed or 
                low-income workers into skilled manufacturing 
                employment;
                    ``(G) a description of how the State will target 
                loans to small or medium-sized manufacturers who are--
                            ``(i) manufacturers of automobile 
                        components; and
                            ``(ii) either--
                                    ``(I) increasing the energy 
                                efficiency of their manufacturing 
                                facilities; or
                                    ``(II) retooling to manufacture 
                                clean energy products or energy 
                                efficient products, including 
                                manufacturing components to improve the 
                                compliance of an automobile with fuel 
                                economy standards prescribed under 
                                section 32902 of title 49, United 
                                States Code;
                    ``(H) a description of how the State will use the 
                loan fund to achieve the earliest and maximum 
                greenhouse gas emission reductions within a reasonable 
                period of time per dollar invested and with the fewest 
                non-greenhouse gas environmental impacts; and
                    ``(I) such other factors as the Secretary considers 
                appropriate to ensure that grants awarded under the 
                Program effectively and efficiently achieve the 
                purposes described in subsection (a).
    ``(e) Revolving Loan Funds.--
            ``(1) In general.--A State receiving a grant under the 
        Program shall establish, maintain, and administer a revolving 
        loan fund in accordance with this subsection.
            ``(2) Deposits.--A revolving loan fund shall consist of the 
        following:
                    ``(A) Amounts from grants awarded under this 
                section.
                    ``(B) All amounts held or received by the State 
                incident to the provision of loans described in 
                subsection (f), including all collections of principal 
                and interest.
            ``(3) Expenditures.--Amounts in the revolving loan fund 
        shall be available for the provision and administration of 
        loans in accordance with subsection (f).
    ``(f) Loans.--
            ``(1) In general.--A State receiving a grant under this 
        section shall use the amount in the revolving loan fund to 
        provide loans to small and medium-sized manufacturers as 
        described in subsection (c)(1).
            ``(2) Loan terms and conditions.--The following shall apply 
        with respect to loans provided under paragraph (1):
                    ``(A) Terms.--Loans shall have a term determined by 
                the State receiving the grant as follows:
                            ``(i) For fixed assets, the term of the 
                        loan shall not exceed the useful life of the 
                        asset and shall be less than 15 years.
                            ``(ii) For working capital, the term of the 
                        loan shall not exceed 36 months.
                    ``(B) Interest rates.--Loans shall bear an interest 
                rate determined by the State receiving the grant as 
                follows:
                            ``(i) The interest rate shall enable the 
                        loan recipient to accomplish the activities 
                        described in subparagraphs (A) and (B) of 
                        subsection (c)(1).
                            ``(ii) The interest rate may be set below-
                        market interest rates.
                            ``(iii) The interest rate may not be less 
                        than zero percent.
                            ``(iv) The interest rate may not exceed the 
                        current prime rate plus 500 basis points.
                    ``(C) Description and budget for use of loan 
                funds.--Each recipient of a loan from a State under the 
                Program shall develop and submit to the State and the 
                Secretary a description and budget for the use of loan 
                amounts, including a description of the following:
                            ``(i) Any new business expected to be 
                        developed with the loan.
                            ``(ii) Any improvements to manufacturing 
                        operations to be developed with the loan.
                            ``(iii) Any technology expected to be 
                        commercialized with the loan.
                    ``(D) Priority in review and preference in 
                selection for certain loan applicants.--
                            ``(i) Review.--In reviewing applications 
                        submitted by small or medium-sized 
                        manufacturers for a loan, a recipient of a 
                        grant under the Program shall give priority to 
                        small or medium-sized manufacturers described 
                        in clause (iii).
                            ``(ii) Selection.--In selecting small or 
                        medium-sized manufacturers to receive a loan, a 
                        recipient of a grant under the Program shall 
                        give preference to small or medium-sized 
                        manufacturers described in clause (iii).
                            ``(iii) Priority and preferred small or 
                        medium-sized manufacturers.--A small or medium-
                        sized manufacturer described in this clause is 
                        a manufacturer that--
                                    ``(I) is certified by a Hollings 
                                Manufacturing Extension Center or a 
                                manufacturing-related local 
                                intermediary designated by the 
                                Secretary for purposes of providing 
                                such certification; or
                                    ``(II) provides individuals 
                                employed at the manufacturing 
                                facilities of the manufacturer--
                                            ``(aa) pay in amounts that 
                                        are, on average, equal to or 
                                        more than the average wage of 
                                        an individual working in a 
                                        manufacturing facility in the 
                                        State; and
                                            ``(bb) health benefits.
                            ``(iv) Certification by hollings 
                        manufacturing extension center.--A Hollings 
                        Manufacturing Extension Center or other entity 
                        designated by the Secretary for purposes of 
                        providing certification under clause (iii)(I) 
                        shall only certify applications for a loan 
                        after carrying out a qualitative and 
                        quantitative review of the applicant's business 
                        strategy, manufacturing operations, and 
                        technological ability to contribute to the 
                        purposes described in subsection (a).
                    ``(E) Repayment upon relocation outside united 
                states.--
                            ``(i) In general.--If a person receives a 
                        loan under paragraph (1) to finance the cost of 
                        reequipping, expanding, or establishing a 
                        manufacturing facility as described in 
                        subsection (c)(1)(A) or to reduce the energy 
                        intensity of a manufacturing facility and such 
                        person relocates the production activities of 
                        such manufacturing facility outside the United 
                        States during the term of the loan, the 
                        recipient shall repay such loan in full with 
                        interest as described in clause (ii) and for a 
                        duration described in clause (iii).
                            ``(ii) Payment of interest.--Any amount 
                        owed by the recipient of a loan under paragraph 
                        (1) who is required to repay the loan under 
                        clause (i) shall bear interest at a penalty 
                        rate determined by the Secretary to deter 
                        recipients of loans under paragraph (1) from 
                        relocating production activities as described 
                        in clause (i).
                            ``(iii) Period of repayment.--Repayment of 
                        a loan under clause (i) shall be for a duration 
                        determined by the Secretary.
                    ``(F) Compliance with wage rate requirements.--Each 
                recipient of a loan shall undertake and agree to 
                incorporate or cause to be incorporated into all 
                contracts for construction, alteration or repair, which 
                are paid for in whole or in part with funds obtained 
                pursuant to such loan, a requirement that all laborers 
                and mechanics employed by contractors and 
                subcontractors performing construction, alteration or 
                repair shall be paid wages at rates not less than those 
                determined by the Secretary of Labor, in accordance 
                with subchapter IV of chapter 31 of title 40, United 
                States Code (known as the `Davis-Bacon Act'), to be 
                prevailing for the corresponding classes of laborers 
                and mechanics employed on projects of a character 
                similar to the contract work in the same locality in 
                which the work is to be performed. The Secretary of 
                Labor shall have, with respect to the labor standards 
                specified in this subparagraph, the authority and 
                functions set forth in Reorganization Plan Numbered 14 
                of 1950 (15 F.R. 3176; 64 Stat. 1267) and section 3145 
                of title 40, United States Code.
                    ``(G) Annual reports by loan recipients.--Each 
                recipient of a loan issued by a State under paragraph 
                (1) shall, not less frequently than once each year 
                during the term of the loan, submit to such State a 
                report containing such information as the Secretary may 
                specify for purposes of the Program, including 
                information that the Secretary can use to determine 
                whether a recipient of a loan is required to repay the 
                loan under subparagraph (E).
            ``(3) Annual reports by grant recipients.--Each recipient 
        of a grant under the Program shall, not less frequently than 
        once each year, submit to the Secretary a report on the impact 
        of each loan issued by the State under the Program and the 
        aggregate impact of all loans so issued, including the 
        following:
                    ``(A) The sales increased or retained.
                    ``(B) Cost savings or costs avoided.
                    ``(C) Additional investment encouraged.
                    ``(D) Jobs created or retained.
    ``(g) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $15,000,000,000 for each of 
fiscal years 2010 and 2011.''.
    (b) Clerical Amendment.--The table of contents in section 1(b) of 
such Act (Public Law 110-343; 122 Stat. 3765) is amended by inserting 
after the item relating to section 136 the following:

``Sec. 137. Clean energy manufacturing revolving loan fund program.''.

SEC. 3. CLEAN ENERGY AND EFFICIENCY MANUFACTURING PARTNERSHIPS.

    (a) Hollings Manufacturing Partnership Program.--Section 25(b) of 
the National Institute of Standards and Technology Act (15 U.S.C. 
278k(b)) is amended--
            (1) in paragraph (2), by striking ``and'' at the end;
            (2) in paragraph (3), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(4) the establishment of a clean energy manufacturing 
        supply chain initiative--
                    ``(A) to support manufacturers in their 
                identification of and diversification to new markets, 
                including support for manufacturers transitioning to 
                the use of clean energy supply chains;
                    ``(B) to assist manufacturers improve their 
                competitiveness by reducing energy intensity and 
                greenhouse gas production, including the use of energy 
                intensive feedstocks;
                    ``(C) to increase adoption and implementation of 
                innovative manufacturing technologies;
                    ``(D) to coordinate and leverage the expertise of 
                the National Laboratories and Technology Centers and 
                the Industrial Assessment Centers of the Department of 
                Energy to meet the needs of manufacturers; and
                    ``(E) to identify, assist, and certify 
                manufacturers seeking loans under section 137(e)(1) of 
                the Emergency Economic Stabilization Act of 2008.''.
    (b) Reduction in Cost Share Requirements.--Section 25(c) of such 
Act (15 U.S.C. 278k(c)) is amended--
            (1) in paragraph (1), by inserting ``or as provided in 
        paragraph (5)'' after ``not to exceed six years'';
            (2) in paragraph (3)(B), by striking ``not less than 50 
        percent of the costs incurred for the first 3 years and an 
        increasing share for each of the last 3 years'' and inserting 
        ``50 percent of the costs incurred or such lesser percentage of 
        the costs incurred as determined appropriate by the Secretary 
        by rule''; and
            (3) in paragraph (5)--
                    (A) by striking ``at declining levels'';
                    (B) by striking ``one third'' and inserting ``50 
                percent''; and
                    (C) by inserting ``, or such lesser percentage as 
                determined appropriate by the Secretary by rule,'' 
                after ``maintenance costs''.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Commerce for the Hollings 
Manufacturing Partnership Program authorized under sections 25 of the 
National Institute of Standards and Technology Act (15 U.S.C. 278k) and 
for the provision of assistance under section 26 of such Act (15 U.S.C. 
278l)--
            (1) $200,000,000 for fiscal year 2010;
            (2) $250,000,000 for fiscal year 2011;
            (3) $300,000,000 for fiscal year 2012;
            (4) $350,000,000 for fiscal year 2013; and
            (5) $400,000,000 for fiscal year 2014.

SEC. 4. TECHNICAL AMENDMENTS.

    (a) Amendment to National Institute of Standards and Technology 
Act.--Section 25 of the National Institute of Standards and Technology 
Act (15 U.S.C. 278k(b)) is amended--
            (1) in subsection (a), by striking ``(hereafter in this Act 
        referred to as the `Centers')''; and
            (2) by adding at the end the following:
    ``(g) Designation.--
            ``(1) Hollings manufacturing partnership program.--The 
        program under this section shall be known as the `Hollings 
        Manufacturing Partnership Program'.
            ``(2) Hollings manufacturing extension centers.--The 
        Regional Centers for the Transfer of Manufacturing Technology 
        created and supported under subsection (a) shall be known as 
        the `Hollings Manufacturing Extension Centers' (in this Act 
        referred to as the `Centers').''.
    (b) Amendment to Consolidated Appropriations Act, 2005.--Division B 
of title II of the Consolidated Appropriations Act, 2005 (Public Law 
108-447; 118 Stat. 2879; 15 U.S.C. 278k note) is amended under the 
heading ``industrial technology services'' by striking ``2007: Provided 
further, That'' and all that follows through ``Extension Centers.'' and 
inserting ``2007.''.
                                 <all>
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