II 

115TH CONGRESS 

1ST SESSION S. 1687 

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 SENATE OF THE UNITED STATES 

AUGUST 1, 2017 

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

to the Committee on Energy and Natural Resources 

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, 

3 SECTION 1. SHORT TITLE. 

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

5 Energy Efficient Manufacturing Act’’. 

6 SEC. 2. DEFINITIONS. 

7 In this Act: 


sradovich on DSK3GMQ082PROD with BILLS
2 

•S 1687 IS

1 (1) ENERGY MANAGEMENT PLAN.—The term 

2 ‘‘energy management plan’’ means a plan estab3 lished under section 3(c)(4). 

4 (2) PROGRAM.—The term ‘‘program’’ means 

5 the Financing Energy Efficient Manufacturing Pro6 gram established under section 3(a). 

7 (3) PROGRAM MANAGER.—The term ‘‘program 

8 manager’’ means a qualified entity that receives a 

9 grant under section 3(a). 

10 (4) PROJECT.—The term ‘‘project’’ means an 

11 energy efficiency improvement project carried out by 

12 a small- or medium-sized manufacturer using grant 

13 funds distributed by a project manager. 

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

15 entity’’ means— 

16 (A) a State energy office; 

17 (B) a nonprofit organization that— 

18 (i) is focused on providing energy effi19 ciency or renewable energy services; and 

20 (ii) receives funding from a State, 

21 Tribe, or utility; 

22 (C) an electric cooperative group; and 

23 (D) an entity with a public-private part24 nership under the Hollings Manufacturing Ex25 tension Partnership established under section 


sradovich on DSK3GMQ082PROD with BILLS
3 

•S 1687 IS

1 25(b) of the National Institute of Standards 

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

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

4 the Secretary of Energy. 

5 (7) SMALL- OR MEDIUM-SIZED MANUFAC6 TURER.—The term ‘‘small- or medium-sized manu7 facturer’’ means a manufacturing establishment— 

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

9 North American Industry Classification System; 

10 and 

11 (B) that employs not more than 750 em12 ployees. 

13 SEC. 3. FINANCING ENERGY EFFICIENT MANUFACTURING 

14 PROGRAM. 

15 (a) ESTABLISHMENT.—The Secretary shall establish 

16 a program, to be known as the ‘‘Financing Energy Effi17 cient Manufacturing Program’’ to provide grants to quali18 fied entities to fund energy efficiency improvement 

19 projects in the manufacturing sector. 

20 (b) GRANT APPLICATIONS; SELECTION OF GRANT

21 RECIPIENTS.— 

22 (1) GRANT APPLICATIONS.— 

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

24 days after the date of enactment of this Act, 

25 qualified entities desiring a grant under subVerDate Sep 11 2014 23:08 Aug 28, 2017 Jkt 069200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S1687.IS S1687

sradovich on DSK3GMQ082PROD with BILLS
4 

•S 1687 IS

1 section (a) shall submit to the Secretary an ap2 plication in such manner and containing such 

3 information as the Secretary may require, in4 cluding a description of— 

5 (i) how the qualified entity will work 

6 with small- and medium-sized manufactur7 ers to assess the most promising opportu8 nities for energy efficiency improvements; 

9 (ii) how the qualified entity will work 

10 with small- and medium-sized manufactur11 ers and, if appropriate, licensed engineers 

12 to establish an energy management plan 

13 for the small- or medium-sized manufac14 turer to carry out a project; 

15 (iii) the methods and cost-sharing 

16 plans the qualified entity will use to dis17 tribute funds to small- and medium-sized 

18 manufacturers to subsidize the costs of 

19 carrying out a project; 

20 (iv) the standards by which the quali21 fied entity will set energy efficiency goals 

22 for a project that will result in meaningful 

23 reductions in electricity or natural gas use 

24 by the small- or medium-sized manufac25 turer carrying out the project; 


sradovich on DSK3GMQ082PROD with BILLS
5 

•S 1687 IS

1 (v) how the qualified entity will pro2 vide support to the small- or medium-sized 

3 manufacturer carrying out a project during 

4 the implementation of the energy manage5 ment plan; 

6 (vi)(I) any history of the qualified en7 tity of working collaboratively with the re8 gional technical assistance programs of the 

9 Department of Energy; and 

10 (II) how the qualified entity plans to 

11 involve the regional technical assistance 

12 programs in the activities to be funded by 

13 a grant; and 

14 (vii) how the qualified entity will col15 lect measurements throughout the imple16 mentation of the energy management 

17 plan— 

18 (I) to demonstrate how energy ef19 ficiency improvements are being 

20 achieved; and 

21 (II) to maximize opportunities 

22 for project success. 

23 (B) PARTNERSHIPS.—Two or more quali24 fied entities may form a partnership to apply, 


sradovich on DSK3GMQ082PROD with BILLS
6 

•S 1687 IS

1 and act as program manager, for a grant under 

2 this subsection. 

3 (2) SELECTION OF GRANT RECIPIENTS.— 

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

5 after the date on which the Secretary receives 

6 an application under paragraph (1), the Sec7 retary shall— 

8 (i) review the application; 

9 (ii) provide the applicant with an op10 portunity to respond to any questions of 

11 the Secretary regarding the application; 

12 and 

13 (iii) select or deny the applicant based 

14 on the criteria described in subparagraph 

15 (B). 

16 (B) SELECTION CRITERIA.— 

17 (i) IN GENERAL.—The Secretary shall 

18 select for grants under this subsection 

19 qualified entities that demonstrate a his20 tory of successfully implementing energy 

21 efficiency improvement programs for small22 and medium-sized manufacturers. 

23 (ii) PRIORITY.—In making selections 

24 under clause (i), the Secretary shall give 


sradovich on DSK3GMQ082PROD with BILLS
7 

•S 1687 IS

1 priority to qualified entities that dem2 onstrate— 

3 (I) effective methods for reducing 

4 barriers to entry that might otherwise 

5 prevent small- and medium-sized man6 ufacturers from participating in the 

7 subgrant program under subsection 

8 (c); 

9 (II) flexibility in addressing the 

10 needs of different small- and medium11 sized manufacturers; and 

12 (III) a commitment to hiring for 

13 projects contractors that comply with 

14 the labor requirements described in 

15 subsection (d)(2). 

16 (c) SUBGRANTS FOR ENERGY EFFICIENCY IMPROVE17 MENTS.— 

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

19 a partnership of one or more qualified entities under 

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

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

22 distribute subgrants to small- and medium-sized 

23 manufacturers located in the State in which the pro24 gram manager is located to carry out projects— 


sradovich on DSK3GMQ082PROD with BILLS
8 

•S 1687 IS

1 (A) to improve the energy efficiency of the 

2 small- or medium-sized manufacturer; and 

3 (B) to develop technologies to reduce elec4 tricity or natural gas use by the small- or me5 dium-sized manufacturer. 

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

7 manufacturer desiring a subgrant under paragraph 

8 (1) shall submit to the program manager an applica9 tion at such time, in such manner, and containing 

10 such information as the program manager may re11 quire, including a proposal describing the project to 

12 be carried out using the subgrant funds. 

13 (3) PRIORITY.—In selecting small- or medium14 sized manufacturers for subgrants under this sub15 section, the program manager shall give priority to 

16 small- or medium-sized manufacturers that commit 

17 to hiring for projects contractors that comply with 

18 the labor requirements described in subsection 

19 (d)(2). 

20 (4) ELIGIBILITY REQUIREMENTS.—To be eligi21 ble to receive a subgrant under paragraph (1), a 

22 small- or medium-sized manufacturer shall be a pri23 vate, nongovernmental entity. 

24 (5) ENERGY MANAGEMENT PLANS.—Each 

25 small- or medium-sized manufacturer receiving a 


sradovich on DSK3GMQ082PROD with BILLS
9 

•S 1687 IS

1 subgrant under paragraph (1), in consultation with 

2 the program manager and, if appropriate, one or 

3 more licensed engineers, shall establish an energy 

4 management plan for the small- or medium-sized 

5 manufacturer to carry out the project. 

6 (6) EFFECT ON TITLE TO PROPERTY.—The re7 ceipt of Federal funds under this subsection shall 

8 not prohibit an entity that purchased equipment or 

9 other property using those funds from owning sole, 

10 permanent title to the equipment or other property. 

11 (d) CONTRACTORS.— 

12 (1) IN GENERAL.—Program managers and 

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

14 necessary, contractors to perform work relating to 

15 the installation, repair, or maintenance of equipment 

16 used under a project. 

17 (2) LABOR REQUIREMENTS.—In an application 

18 for a grant or subgrant under this section, a pro19 gram manager or a small- or medium-sized manu20 facturer, respectively, may commit to hiring contrac21 tors that represent to the best of the knowledge and 

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

23 period preceding the date of application, any admin24 istrative merits determination, arbitral award or de25 cision, or civil judgment (as defined in guidance 


sradovich on DSK3GMQ082PROD with BILLS
10 

•S 1687 IS

1 issued by the Secretary of Labor) was rendered 

2 against the contractor for violations of— 

3 (A) the National Labor Relations Act (29 

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

5 (B) the Fair Labor Standards Act of 1938 

6 (29 U.S.C. 201 et seq.); 

7 (C) the Age Discrimination in Employment 

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

9 (D) the Occupational Safety and Health 

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

11 (E) the Migrant and Seasonal Agricultural 

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

13 seq.); 

14 (F) the Family and Medical Leave Act of 

15 1993 (29 U.S.C. 2611 et seq.); 

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

17 of subtitle II of title 40, United States Code 

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

19 Act’’); 

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

21 Code; 

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

23 (42 U.S.C. 2000e et seq.); 

24 (J) the Americans with Disabilities Act of 

25 1990 (42 U.S.C. 12101 et seq.); 


sradovich on DSK3GMQ082PROD with BILLS
11 

•S 1687 IS

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

2 2000e note) (relating to equal employment op3 portunity); 

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

5 9851 (February 20, 2014)) (relating to estab6 lishing a minimum wage for contractors); or 

7 (M) equivalent State laws. 

8 (3) ADDITIONAL LABOR REQUIREMENTS.—A 

9 program manager or small- or medium-sized manu10 facturer receiving a grant or subgrant, respectively, 

11 under this section that has committed to complying 

12 with the labor requirements described in paragraph 

13 (2)— 

14 (A) shall provide each contractor an oppor15 tunity to disclose any steps taken to correct a 

16 violation of, or improve compliance with, a law 

17 or Executive order described in any of subpara18 graphs (A) through (M) of paragraph (2), in19 cluding any agreements entered into with an 

20 enforcement agency; 

21 (B) shall give preference to contractors 

22 that have the fewest number of violations (par23 ticularly serious, repeated, willful, or pervasive 

24 violations) of the laws and Executive orders deVerDate Sep 11 2014 23:08 Aug 28, 2017 Jkt 069200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\S1687.IS S1687

sradovich on DSK3GMQ082PROD with BILLS
12 

•S 1687 IS

1 scribed in subparagraphs (A) through (M) of 

2 paragraph (2); and 

3 (C) shall not hire contractors that fail to 

4 take steps to correct violations of, or improve 

5 compliance with, a law or Executive order de6 scribed in any of subparagraphs (A) through 

7 (M) of paragraph (2). 

8 (e) AMERICAN IRON, STEEL, AND MANUFACTURED

9 PRODUCTS.— 

10 (1) DEFINITIONS.—In this subsection: 

11 (A) IRON OR STEEL MANUFACTURED

12 PRODUCT.—The term ‘‘iron or steel manufac13 tured product’’ includes any construction mate14 rial or end product (as those terms are defined 

15 in subpart 25.003 of the Federal Acquisition 

16 Regulation) that does not otherwise qualify as 

17 an iron or steel product, including— 

18 (i) an electrical component; 

19 (ii) a non-ferrous building material, 

20 including— 

21 (I) aluminum and 

22 polyvinylchloride; 

23 (II) glass; 

24 (III) fiber optics; 

25 (IV) plastic; 


sradovich on DSK3GMQ082PROD with BILLS
13 

•S 1687 IS

1 (V) wood; 

2 (VI) masonry; 

3 (VII) rubber; 

4 (VIII) manufactured stone; and 

5 (IX) any other non-ferrous build6 ing materials; and 

7 (iii) any unmanufactured construction 

8 material. 

9 (B) PRODUCED IN THE UNITED STATES.— 

10 (i) IN GENERAL.—The term ‘‘pro11 duced in the United States’’— 

12 (I) with respect to an iron or 

13 steel product or an iron or steel man14 ufactured product, means that all 

15 manufacturing processes for, and ma16 terials and components of, the iron or 

17 steel product or iron or steel manufac18 tured product, from the initial melting 

19 stage through the application of coat20 ings, occurred in the United States; 

21 and 

22 (II) with respect to an iron or 

23 steel manufactured product, means 

24 that— 


sradovich on DSK3GMQ082PROD with BILLS
14 

•S 1687 IS

1 (aa) the iron or steel manu2 factured product was manufac3 tured in the United States; and 

4 (bb) the cost of the compo5 nents of the iron or steel manu6 factured product that were 

7 mined, produced, or manufac8 tured in the United States is 

9 greater than 60 percent of the 

10 total cost of the components of 

11 the iron or steel manufactured 

12 product. 

13 (ii) EXCLUSIONS.—The term ‘‘pro14 duced in the United States’’, with respect 

15 to an iron or steel product or an iron or 

16 steel manufactured product, does not in17 clude an iron or steel product or an iron 

18 or steel manufactured product that was 

19 manufactured— 

20 (I) abroad from semi-finished 

21 steel or iron from the United States; 

22 or 

23 (II) in the United States from 

24 semi-finished steel or iron of foreign 

25 origin. 


sradovich on DSK3GMQ082PROD with BILLS
15 

•S 1687 IS

1 (2) REQUIREMENT.—Funds made available 

2 under the program may not be used for a project 

3 unless all of the iron and steel products and iron 

4 and steel manufactured products used in the project 

5 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 for the project of the recipient 

10 of the grant a waiver of the requirement de11 scribed in paragraph (2) if the Secretary finds 

12 that— 

13 (i) the application of paragraph (2) 

14 would be inconsistent with the public inter15 est; 

16 (ii) iron or steel products or iron or 

17 steel manufactured products are not pro18 duced in the United States— 

19 (I) in sufficient and reasonably 

20 available quantities; or 

21 (II) of a satisfactory quality; or 

22 (iii) the inclusion of iron or steel prod23 ucts or iron or steel manufactured prod24 ucts produced in the United States would 


sradovich on DSK3GMQ082PROD with BILLS
16 

•S 1687 IS

1 increase the cost of the overall project by 

2 greater than 25 percent. 

3 (B) PUBLIC NOTICE.—On receipt of a re4 quest for a waiver under subparagraph (A), the 

5 Secretary shall— 

6 (i) make available to the public, in7 cluding by electronic means, including on 

8 the official public website of the Depart9 ment of Energy, on an informal basis, a 

10 copy of the request and all information 

11 available to the Secretary relating to the 

12 request; and 

13 (ii) provide for informal public input 

14 on the request for a period of not fewer 

15 than 15 days before making with respect 

16 to the request the finding described in sub17 paragraph (A). 

18 (f) REPORTING REQUIREMENTS.— 

19 (1) IN GENERAL.—Each program manager 

20 shall— 

21 (A) determine what data shall be re22 quired— 

23 (i) to be collected by or from each 

24 small- or medium-sized manufacturer reVerDate Sep 11 2014 23:08 Aug 28, 2017 Jkt 069200 PO 00000 Frm 00016 Fmt 6652 Sfmt 6201 E:\BILLS\S1687.IS S1687

sradovich on DSK3GMQ082PROD with BILLS
17 

•S 1687 IS

1 ceiving a subgrant under subsection (c); 

2 and 

3 (ii) to be submitted to the program 

4 manager to permit analysis of the subgrant 

5 program under subsection (c); and 

6 (B) develop metrics to determine the suc7 cess of the subgrant program under subsection 

8 (c). 

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 to carry out this section not 

22 more than $600,000,000. 

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

25 than 7 percent of the grant funds received by the 


sradovich on DSK3GMQ082PROD with BILLS
18 

•S 1687 IS

1 program manager, at the discretion of the program 

2 manager— 

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

4 program manager in administering the 

5 subgrant program of the program manager; and 

6 (B) to market the subgrant program to 

7 small- and medium-sized manufacturers. 

8 (3) MANAGEMENT AND OVERSIGHT.—The Sec9 retary may use not greater than 0.25 percent of the 

10 funds made available under paragraph (1) to carry 

11 out subsection (e). 

Æ 


sradovich on DSK3GMQ082PROD with BILLS