I 

115TH CONGRESS 

2D SESSION H. R. 5042 

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 

FEBRUARY 15, 2018 

Mr. CARTWRIGHT (for himself, Mr. TONKO, Ms. WASSERMAN SCHULTZ, Ms. 

ESHOO, Mr. MCGOVERN, Mr. POCAN, Ms. WILSON of Florida, Ms. NORTON, Ms. KUSTER of New Hampshire, Mr. KHANNA, Mr. QUIGLEY, Mr. 

RASKIN, Ms. LOFGREN, Ms. CASTOR of Florida, Mr. CONNOLLY, Ms. 

LEE, Mr. WELCH, Mr. GRIJALVA, Mr. HUFFMAN, Mr. CROWLEY, Mr. 

JOHNSON of Georgia, Mr. WALZ, and Ms. HANABUSA) 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 EFFICIENCY IMPROVEMENT

7 PROJECT.—The term ‘‘energy efficiency improve8 ment project’’ means a project to— 

9 (A) improve the energy efficiency of a 

10 small or medium-sized manufacturer; and 

11 (B) develop technologies to reduce elec12 tricity or natural gas use by a small or medium13 sized manufacturer. 

14 (2) ENERGY MANAGEMENT PLAN.—The term 

15 ‘‘energy management plan’’ means a plan estab16 lished under section 3(c)(5) for a small or medium17 sized manufacturer to carry out an energy efficiency 

18 improvement project. 

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

20 the Financing Energy Efficient Manufacturing Pro21 gram established under section 3(a). 

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

23 manager’’ means a qualified entity that receives a 

24 grant under section 3(a). 

25 (5) QUALIFIED ENTITY.—The term ‘‘qualified 

26 entity’’ means— 


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1 (A) a State energy office; 

2 (B) a nonprofit organization that— 

3 (i) is focused on providing energy effi4 ciency or renewable energy services; and 

5 (ii) receives funding from a State, 

6 Tribe, or electric utility (as defined in sec7 tion 3 of the Federal Power Act (16 

8 U.S.C. 796)); 

9 (C) an electric cooperative, as defined in 

10 section 3 of the Federal Power Act (16 U.S.C. 

11 796); or 

12 (D) a manufacturing extension center cre13 ated pursuant to section 25(b) of the National 

14 Institute of Standards and Technology Act (15 

15 U.S.C. 278k(b)). 

16 (6) SECRETARY.—The term ‘‘Secretary’’ means 

17 the Secretary of Energy. 

18 (7) SMALL OR MEDIUM-SIZED MANUFAC19 TURER.—The term ‘‘small or medium-sized manu20 facturer’’ means a manufacturing establishment— 

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

22 North American Industry Classification System; 

23 and 

24 (B) that employs not more than 750 em25 ployees. 


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1 SEC. 3. FINANCING ENERGY EFFICIENT MANUFACTURING 

2 PROGRAM. 

3 (a) ESTABLISHMENT.—The Secretary shall establish 

4 a program, to be known as the ‘‘Financing Energy Effi5 cient Manufacturing Program’’, to provide grants to quali6 fied entities to fund energy efficiency improvement 

7 projects to be carried out by small and medium-sized man8 ufacturers. 

9 (b) GRANT APPLICATIONS; SELECTION OF GRANT

10 RECIPIENTS.— 

11 (1) GRANT APPLICATIONS.— 

12 (A) IN GENERAL.—Qualified entities desir13 ing a grant under subsection (a) shall submit to 

14 the Secretary an application in such manner 

15 and containing such information as the Sec16 retary may require, including a description of— 

17 (i) how the qualified entity will work 

18 with small and medium-sized manufactur19 ers to assess the most promising opportu20 nities for energy efficiency improvements; 

21 (ii) how the qualified entity will work 

22 with small and medium-sized manufactur23 ers and, if appropriate, licensed engineers 

24 to establish energy management plans; 

25 (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 an energy efficiency improve4 ment project; 

5 (iv) the standards by which the quali6 fied entity will set energy efficiency goals 

7 for an energy efficiency improvement 

8 project that will result in meaningful re9 ductions in electricity or natural gas use by 

10 the small or medium-sized manufacturer 

11 carrying out the project; 

12 (v) how the qualified entity will pro13 vide support to the small or medium-sized 

14 manufacturer carrying out an energy effi15 ciency improvement project; 

16 (vi)(I) any history of the qualified en17 tity of working collaboratively with the 

18 technical assistance programs of the De19 partment of Energy; and 

20 (II) how the qualified entity plans to 

21 involve such technical assistance programs 

22 in the activities to be funded by a grant; 

23 (vii) how the qualified entity plans to 

24 support small or medium-sized manufac25 turers to create new jobs or retain existing 


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1 jobs while carrying out an energy efficiency 

2 improvement project; and 

3 (viii) how the qualified entity will col4 lect measurements throughout the imple5 mentation of the applicable energy man6 agement plan— 

7 (I) to demonstrate how energy ef8 ficiency improvements are being 

9 achieved; and 

10 (II) to maximize opportunities 

11 for the success of the energy efficiency 

12 improvement project. 

13 (B) PARTNERSHIPS.—Two or more quali14 fied entities may form a partnership to apply, 

15 and act as program manager, for a grant under 

16 this subsection. 

17 (2) SELECTION OF GRANT RECIPIENTS.— 

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

19 after the date on which the Secretary receives 

20 an application under paragraph (1), the Sec21 retary shall— 

22 (i) review the application; 

23 (ii) provide the applicant with an op24 portunity to respond to any questions of 


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1 the Secretary regarding the application; 

2 and 

3 (iii) select or deny the applicant based 

4 on the criteria described in subparagraph 

5 (B). 

6 (B) SELECTION CRITERIA.— 

7 (i) IN GENERAL.—The Secretary shall 

8 select for grants under this subsection 

9 qualified entities that demonstrate a his10 tory of successfully implementing energy 

11 efficiency improvement programs for small 

12 and medium-sized manufacturers. 

13 (ii) PRIORITY.—In making selections 

14 under clause (i), the Secretary shall give 

15 priority to qualified entities that dem16 onstrate— 

17 (I) effective methods for reducing 

18 barriers to entry that might otherwise 

19 prevent small and medium-sized man20 ufacturers from receiving a subgrant 

21 under subsection (c); 

22 (II) flexibility in addressing the 

23 needs of different small and medium24 sized manufacturers; 


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1 (III) a history of hiring contrac2 tors that comply with the labor re3 quirements described in subpara4 graphs (A) through (M) of subsection 

5 (d)(1); and 

6 (IV) a commitment to assisting 

7 small or medium-sized manufacturers 

8 create new jobs or retain existing jobs 

9 while carrying out an energy efficiency 

10 improvement project. 

11 (c) SUBGRANTS FOR ENERGY EFFICIENCY IMPROVE12 MENTS.— 

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

14 a partnership of two or more qualified entities under 

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

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

17 distribute subgrants to small and medium-sized 

18 manufacturers located in the State in which the pro19 gram manager is located to carry out energy effi20 ciency improvement projects. 

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

22 manufacturer desiring a subgrant under paragraph 

23 (1) shall submit to the program manager an applica24 tion at such time, in such manner, and containing 

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1 quire, including a proposal describing the energy ef2 ficiency improvement project to be carried out using 

3 the subgrant funds. 

4 (3) PRIORITY.—In selecting small or medium5 sized manufacturers for subgrants under this sub6 section, the program manager shall give priority to 

7 small or medium-sized manufacturers that dem8 onstrate— 

9 (A) a history of hiring contractors that 

10 comply with the labor requirements described in 

11 subparagraphs (A) through (M) of subsection 

12 (d)(1); and 

13 (B) a commitment to creating new jobs or 

14 retaining existing jobs. 

15 (4) ELIGIBILITY REQUIREMENTS.—To be eligi16 ble to receive a subgrant under paragraph (1), a 

17 small or medium-sized manufacturer shall be a pri18 vate, nongovernmental entity. 

19 (5) ENERGY MANAGEMENT PLANS.—Each small 

20 or medium-sized manufacturer receiving a subgrant 

21 under paragraph (1), in consultation with the pro22 gram manager and, if appropriate, one or more li23 censed engineers, shall establish a plan for the small 

24 or medium-sized manufacturer to carry out the en25 ergy efficiency improvement project. 


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1 (d) CONTRACTORS.— 

2 (1) LABOR REQUIREMENTS REPORTING.—In an 

3 application for a grant or subgrant under this sec4 tion, a program manager or a small or medium-sized 

5 manufacturer, respectively, shall commit to hiring 

6 contractors that represent to the best of the knowl7 edge and belief of the contractor, whether, during 

8 the 3-year period preceding the date of application, 

9 any administrative merits determination, arbitral 

10 award or decision, or civil judgment (as defined in 

11 guidance issued by the Secretary of Labor) was ren12 dered against the contractor for a violation of— 

13 (A) the National Labor Relations Act (29 

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

15 (B) the Fair Labor Standards Act of 1938 

16 (29 U.S.C. 201 et seq.); 

17 (C) the Age Discrimination in Employment 

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

19 (D) the Occupational Safety and Health 

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

21 (E) the Migrant and Seasonal Agricultural 

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

23 seq.); 

24 (F) the Family and Medical Leave Act of 

25 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) an applicable State law that provides 

18 similar protections to employees. 

19 (2) ADDITIONAL LABOR REQUIREMENTS.—A 

20 program manager or small or medium-sized manu21 facturer receiving a grant or subgrant, respectively, 

22 under this section shall, with respect to activities 

23 carried out using such funds— 

24 (A) provide each contractor an opportunity 

25 to disclose any steps taken to correct a violation 


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1 of, or improve compliance with, a law or Execu2 tive order described in any of subparagraphs 

3 (A) through (M) of paragraph (1), including 

4 any agreements entered into with an enforce5 ment agency; 

6 (B) give preference to contractors that 

7 have the fewest number of violations (particu8 larly serious, repeated, willful, or pervasive vio9 lations) of the laws and Executive orders de10 scribed in subparagraphs (A) through (M) of 

11 paragraph (1); and 

12 (C) not hire contractors that fail to take 

13 steps to correct violations of, or improve compli14 ance with, a law or Executive order described in 

15 any of subparagraphs (A) through (M) of para16 graph (1). 

17 (e) AMERICAN IRON, STEEL, AND MANUFACTURED

18 PRODUCTS.— 

19 (1) DEFINITIONS.—In this subsection: 

20 (A) MANUFACTURED PRODUCT.—The term 

21 ‘‘manufactured product’’ includes any construc22 tion material or end product (as those terms 

23 are defined in subpart 25.003 of the Federal 

24 Acquisition Regulation) that does not wholly or 


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1 predominantly consist of iron or steel, includ2 ing— 

3 (i) an electrical component; 

4 (ii) a non-ferrous building material, 

5 including— 

6 (I) aluminum and polyvinylchlo7 ride; 

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, means that all manufac24 turing processes for such iron or steel 

25 products, from the initial melting 


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1 stage through the application of coat2 ings, occurred in the United States; 

3 and 

4 (II) with respect to a manufac5 tured product, means that the manu6 factured product was manufactured in 

7 the United States and the cost of the 

8 components of the manufactured 

9 product that were mined, produced, or 

10 manufactured in the United States ex11 ceeds 60 percent of the cost of all the 

12 components of the manufactured 

13 product. 

14 (ii) EXCLUSIONS.—The term ‘‘pro15 duced in the United States’’, with respect 

16 to an iron or steel product, does not in17 clude an iron or steel product that was 

18 manufactured— 

19 (I) abroad from semi-finished 

20 iron or steel from the United States; 

21 or 

22 (II) in the United States from 

23 semi-finished iron or steel of foreign 

24 origin. 


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1 (2) REQUIREMENT.—Funds made available 

2 under the program may not be used for an energy 

3 efficiency improvement project unless all of the iron 

4 or steel products and manufactured products used in 

5 the project are produced in the United States. 

6 (3) WAIVER.— 

7 (A) IN GENERAL.—On request of the re8 cipient of a grant under the program, the Sec9 retary may grant a waiver of the requirement 

10 described in paragraph (2) if the Secretary 

11 finds that— 

12 (i) the application of paragraph (2) 

13 would be inconsistent with the public inter14 est; 

15 (ii) iron or steel products, or manu16 factured products, are not produced in the 

17 United States— 

18 (I) in sufficient and reasonably 

19 available quantities; or 

20 (II) of a satisfactory quality; or 

21 (iii) the inclusion of iron or steel prod22 ucts, or manufactured products, produced 

23 in the United States would increase the 

24 overall cost of the project by more than 25 

25 percent. 


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1 (B) PUBLIC NOTICE.—On receipt of a re2 quest for a waiver under subparagraph (A), the 

3 Secretary shall— 

4 (i) make available to the public, in5 cluding by electronic means, including on 

6 the official public website of the Depart7 ment of Energy, on an informal basis, a 

8 copy of the request and all information 

9 available to the Secretary relating to the 

10 request; and 

11 (ii) provide for informal public input 

12 on the request for a period of not fewer 

13 than 15 days before making the finding de14 scribed in subparagraph (A). 

15 (f) REPORTING REQUIREMENTS.— 

16 (1) DATA COLLECTION.—Each program man17 ager shall— 

18 (A) determine what data shall be required 

19 to be collected from each small or medium20 sized manufacturer receiving a subgrant under 

21 subsection (c) and submitted to the program 

22 manager in order to— 

23 (i) permit analysis of the quantity and 

24 quality of jobs created or retained by each 

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1 ceiving a subgrant under subsection (c); 

2 and 

3 (ii) permit analysis of the success of 

4 energy efficiency improvement projects the 

5 program manager oversees; and 

6 (B) develop metrics to determine the suc7 cess of energy efficiency improvement projects 

8 the program manager oversees. 

9 (2) PROVISION OF DATA.—As a condition of re10 ceiving a subgrant under subsection (c), a small or 

11 medium-sized manufacturer shall provide to the pro12 gram manager relevant data, as determined by the 

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

14 (3) PROPRIETARY INFORMATION.—In carrying 

15 out this subsection, each program manager, as ap16 propriate, shall provide for the protection of propri17 etary information and intellectual property rights. 

18 (g) FUNDING.— 

19 (1) IN GENERAL.—Out of amounts made avail20 able to the Secretary and not otherwise obligated, 

21 the Secretary shall use not more than $600,000,000 

22 to carry out this section. 

23 (2) REQUIREMENTS FOR PROGRAM MAN24 AGERS.—A program manager may use not more 


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1 than 7 percent of the grant funds received by the 

2 program manager under this section— 

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

4 program manager in administering energy effi5 ciency improvement projects the program man6 ager oversees; and 

7 (B) to market the availability of subgrants 

8 to small and medium-sized manufacturers. 

9 (3) MANAGEMENT AND OVERSIGHT.—The Sec10 retary may use not greater than 0.25 percent of the 

11 funds made available to carry out this section for 

12 management and oversight of the requirements of 

13 subsection (e). 

Æ 


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