II 

116TH CONGRESS 

1ST SESSION S. 2185 

To provide labor standards for certain energy jobs, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JULY 18, 2019 

Mr. MERKLEY (for himself, Mrs. GILLIBRAND, Mr. BLUMENTHAL, Ms. SMITH, 

Mr. BOOKER, Ms. HARRIS, Ms. STABENOW, Mr. BROWN, Ms. HIRONO, 

Mr. SCHATZ, and Mr. BENNET) introduced the following bill; which was 

read twice and referred to the Committee on Finance 

A BILL 

To provide labor standards for certain energy jobs, 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 ‘‘Good Jobs for 21st 

5 Century Energy Act’’. 

6 SEC. 2. DEPARTMENT OF LABOR CERTIFICATION OF QUALI7 FIED ENTITIES. 

8 (a) DEFINITIONS.—In this section: 

9 (1) APPLICABLE CONSTRUCTION PROJECT.— 

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1 spect to an entity, means construction by the entity 

2 of any property described in section 45L, 48D, or 

3 179D of the Internal Revenue Code of 1986. 

4 (2) COVERED PROJECT LABOR AGREEMENT.— 

5 The term ‘‘covered project labor agreement’’ means 

6 a project labor agreement that— 

7 (A) binds all contractors and subcontrac8 tors on the construction project through the in9 clusion of appropriate specifications in all rel10 evant solicitation provisions and contract docu11 ments; 

12 (B) allows all contractors and subcontrac13 tors to compete for contracts and subcontracts 

14 without regard to whether they are otherwise a 

15 party to a collective bargaining agreement; 

16 (C) contains guarantees against strikes, 

17 lockouts, and other similar job disruptions; 

18 (D) sets forth effective, prompt, and mutu19 ally binding procedures for resolving labor dis20 putes arising during the covered project labor 

21 agreement; and 

22 (E) provides other mechanisms for labor23 management cooperation on matters of mutual 

24 interest and concern, including productivity, 

25 quality of work, safety, and health. 


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1 (3) PROJECT LABOR AGREEMENT.—The term 

2 ‘‘project labor agreement’’ means a pre-hire collec3 tive bargaining agreement with one or more labor 

4 organizations that establishes the terms and condi5 tions of employment for a specific construction 

6 project and is described in section 8(f) of the Na7 tional Labor Relations Act (29 U.S.C. 158(f)). 

8 (4) QUALIFIED ENTITY.—The term ‘‘qualified 

9 entity’’ means an entity that the Secretary of Labor 

10 certifies as a qualified entity in accordance with sub11 section (b). 

12 (5) REGISTERED APPRENTICESHIP PROGRAM.— 

13 The term ‘‘registered apprenticeship program’’ has 

14 the meaning given the term in section 171 of the 

15 Workforce Innovation and Opportunity Act (29 

16 U.S.C. 3226). 

17 (b) CERTIFICATION OF QUALIFIED ENTITIES.— 

18 (1) IN GENERAL.—The Secretary of Labor shall 

19 establish a process for certifying entities that submit 

20 an application under paragraph (2) as qualified enti21 ties for purposes of the amendments made by sec22 tions 3, 4, and 5. 

23 (2) APPLICATION PROCESS.— 

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1 section shall submit an application to the Sec2 retary of Labor at such time, in such manner, 

3 and containing such information as the Sec4 retary may reasonably require, including infor5 mation to demonstrate compliance with the re6 quirements under paragraph (3). 

7 (B) REQUESTS FOR ADDITIONAL INFORMA8 TION.—Not later than 1 year after receiving an 

9 application from an entity under subparagraph 

10 (A)— 

11 (i) the Secretary of Labor may re12 quest additional information from the enti13 ty in order to determine whether the entity 

14 is in compliance with the requirements 

15 under paragraph (3); and 

16 (ii) the entity shall provide such addi17 tional information. 

18 (C) DETERMINATION DEADLINE.—The 

19 Secretary of Labor shall make a determination 

20 on whether to certify an entity under this sub21 section not later than— 

22 (i) in a case in which the Secretary 

23 requests additional information described 

24 in subparagraph (B)(i), 1 year after the 


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1 Secretary receives such additional informa2 tion from the entity; or 

3 (ii) in a case that is not described in 

4 clause (i), 1 year after the date on which 

5 the entity submits the application under 

6 subparagraph (A). 

7 (D) PRE-CERTIFICATION REMEDIES.—The 

8 Secretary shall consider any corrective actions 

9 taken by an entity seeking certification under 

10 this subsection to remedy an administrative 

11 merits determination, arbitral award or deci12 sion, or civil judgment identified under para13 graph (3)(A)(iv) and shall impose as a condi14 tion of certification any additional remedies 

15 necessary to avoid further or repeated viola16 tions. 

17 (3) LABOR STANDARDS REQUIREMENTS.— 

18 (A) IN GENERAL.—The Secretary of Labor 

19 shall require an entity, as a condition of certifi20 cation under this subsection, to satisfy each of 

21 the following requirements: 

22 (i) The entity shall ensure that all la23 borers and mechanics employed by contrac24 tors and subcontractors in the performance 

25 of any applicable construction project shall 


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1 be paid wages at rates not less than those 

2 prevailing on projects of a similar char3 acter in the locality as determined by the 

4 Secretary of Labor in accordance with sub5 chapter IV of chapter 31 of title 40, 

6 United States Code (commonly known as 

7 the ‘‘Davis-Bacon Act’’). 

8 (ii) The entity shall give preference in 

9 hiring to workers who— 

10 (I) have been previously em11 ployed in the fossil fuel industry; 

12 (II) are members of 

13 deindustrialized communities; or 

14 (III) are members of commu15 nities with a significant presence of 

16 fossil fuel infrastructure or oper17 ations. 

18 (iii) The entity shall be a party to, or 

19 require contractors and subcontractors in 

20 the performance of any applicable con21 struction project to consent to, a covered 

22 project labor agreement. 

23 (iv) The entity, and all contractors 

24 and subcontractors in performance of any 

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1 resent in the application submitted under 

2 paragraph (2) whether there has been any 

3 administrative merits determination, arbi4 tral award or decision, or civil judgment, 

5 as defined in guidance issued by the Sec6 retary of Labor, rendered against the enti7 ty in the preceding 3 years for violations 

8 of— 

9 (I) the Fair Labor Standards Act 

10 of 1938 (29 U.S.C. 201 et seq.); 

11 (II) the Occupational Safety and 

12 Health Act of 1970 (29 U.S.C. 651 et 

13 seq.); 

14 (III) the Migrant and Seasonal 

15 Agricultural Worker Protection Act 

16 (29 U.S.C. 1801 et seq.); 

17 (IV) the National Labor Rela18 tions Act (29 U.S.C. 151 et seq.); 

19 (V) subchapter IV of chapter 31 

20 of title 40, United States Code (com21 monly known as the ‘‘Davis-Bacon 

22 Act’’); 

23 (VI) chapter 67 of title 41, 

24 United States Code (commonly known 

25 as the ‘‘Service Contract Act’’); 


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1 (VII) Executive Order 11246 (42 

2 U.S.C. 2000e note; relating to equal 

3 employment opportunity); 

4 (VIII) section 503 of the Reha5 bilitation Act of 1973 (29 U.S.C. 

6 793); 

7 (IX) section 4212 of title 38, 

8 United States Code; 

9 (X) the Family and Medical 

10 Leave Act of 1993 (29 U.S.C. 2601 et 

11 seq.); 

12 (XI) title VII of the Civil Rights 

13 Act of 1964 (42 U.S.C. 2000e et 

14 seq.); 

15 (XII) the Americans with Dis16 abilities Act of 1990 (42 U.S.C. 

17 12101 et seq.); 

18 (XIII) the Age Discrimination in 

19 Employment Act of 1967 (29 U.S.C. 

20 621 et seq.); 

21 (XIV) Executive Order 13658 

22 (79 Fed. Reg. 9851; relating to estab23 lishing a minimum wage for contrac24 tors); or 


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1 (XV) equivalent State laws, as 

2 defined in guidance issued by the Sec3 retary of Labor. 

4 (v) The entity, and all contractors and 

5 subcontractors in the performance of any 

6 applicable construction project, shall not 

7 require mandatory arbitration for any dis8 pute involving a worker engaged in a serv9 ice for the entity. 

10 (vi) The entity, and all contractors 

11 and subcontractors in the performance of 

12 any applicable construction project, shall 

13 consider an individual performing any serv14 ice in such performance as an employee 

15 (and not an independent contractor) of the 

16 entity, contractor, or subcontractor, respec17 tively, unless— 

18 (I) the individual is free from 

19 control and direction in connection 

20 with the performance of the service, 

21 both under the contract for the per22 formance of the service and in fact; 

23 (II) the service is performed out24 side the usual course of the business 


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1 of the entity, contractor, or subcon2 tractor, respectively; and 

3 (III) the individual is customarily 

4 engaged in an independently estab5 lished trade, occupation, profession, or 

6 business of the same nature as that 

7 involved in such service. 

8 (vii) The entity shall prohibit all con9 tractors and subcontractors in the per10 formance of any applicable construction 

11 project from hiring employees through a 

12 temporary staffing agency unless the rel13 evant State workforce agency certifies that 

14 temporary employees are necessary to ad15 dress an acute, short-term labor demand. 

16 (viii) The entity shall require all con17 tractors, subcontractors, successors in in18 terest of the entity, and other entities that 

19 may acquire the entity, in the performance 

20 or acquisition of any applicable construc21 tion project, to have an explicit neutrality 

22 policy on any issue involving the organiza23 tion of employees of the entity, and all con24 tractors and subcontractors in the per25 formance of any applicable construction 


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1 project, for purposes of collective bar2 gaining. 

3 (ix) The entity shall, for each skilled 

4 craft employed on any applicable construc5 tion project, demonstrate an ability to use 

6 and commit to use individuals enrolled in 

7 a registered apprenticeship program, which 

8 such individuals shall, to the greatest ex9 tent practicable, constitute not less than 

10 20 percent of the individuals working on 

11 such project. 

12 (x) The entity, and all contractors and 

13 subcontractors in the performance of any 

14 applicable construction project, shall not 

15 request or otherwise consider the criminal 

16 history of an applicant for employment be17 fore extending a conditional offer to the 

18 applicant, unless— 

19 (I) a background check is other20 wise required by law; 

21 (II) the position is for a Federal 

22 law enforcement officer (as defined in 

23 section 115(c) of title 18, United 

24 States Code) position; or 


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1 (III) the Secretary, in consulta2 tion with the Secretary of Energy, 

3 certifies that precluding criminal his4 tory prior to the conditional offer 

5 would pose a threat to national secu6 rity. 

7 (B) DAVIS-BACON ACT.—The Secretary of 

8 Labor shall have, with respect to the labor 

9 standards described in subparagraph (A)(i), the 

10 authority and functions set forth in Reorganiza11 tion Plan Numbered 14 of 1950 (64 Stat. 

12 1267; 5 U.S.C. App.) and section 3145 of title 

13 40, United States Code. 

14 (4) PERIOD OF VALIDITY FOR CERTIFI15 CATIONS.—A certification made under this sub16 section shall be in effect for a period of 5 years. An 

17 entity may reapply to the Secretary of Labor for an 

18 additional certification under this subsection in ac19 cordance with the application process under para20 graph (2). 

21 (5) REVOCATION OF QUALIFIED ENTITY STA22 TUS.—The Secretary of Labor may revoke the cer23 tification of an entity under this subsection as a 

24 qualified entity at any time in which the Secretary 


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1 determines the entity is no longer in compliance with 

2 paragraph (3). 

3 (c) AUTHORIZATION OF APPROPRIATIONS.—There is 

4 authorized to be appropriated to carry out this section 

5 $10,000,000 for fiscal year 2019 and each fiscal year 

6 thereafter. 

7 SEC. 3. JOBS IN ENERGY CREDIT. 

8 (a) IN GENERAL.—Subpart E of part IV of sub9 chapter A of chapter 1 of the Internal Revenue Code of 

10 1986 is amended by inserting after section 48C the fol11 lowing new section: 

12 ‘‘SEC. 48D. JOBS IN ENERGY CREDIT. 

13 ‘‘(a) INVESTMENT CREDIT FOR QUALIFIED PROP14 ERTY.—For purposes of section 46, the Jobs in Energy 

15 credit for any taxable year in which the taxpayer has been 

16 certified as a qualified entity (as defined in subsection (e)) 

17 is an amount equal to 10 percent of the qualified invest18 ment for such taxable year with respect to— 

19 ‘‘(1) any qualified facility, 

20 ‘‘(2) qualified carbon capture and sequestration 

21 equipment, and 

22 ‘‘(3) energy storage property. 

23 ‘‘(b) QUALIFIED INVESTMENT WITH RESPECT TO

24 ANY QUALIFIED FACILITY.— 


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1 ‘‘(1) IN GENERAL.—For purposes of subsection 

2 (a)(1), the qualified investment with respect to any 

3 qualified facility for any taxable year is the basis of 

4 any qualified property placed in service by the tax5 payer during such taxable year which is part of a 

6 qualified facility. 

7 ‘‘(2) QUALIFIED PROPERTY.—The term ‘quali8 fied property’ means property— 

9 ‘‘(A) which is— 

10 ‘‘(i) tangible personal property, or 

11 ‘‘(ii) other tangible property (not in12 cluding a building or its structural compo13 nents), but only if such property is used as 

14 an integral part of the qualified facility, 

15 ‘‘(B) with respect to which depreciation (or 

16 amortization in lieu of depreciation) is allow17 able, 

18 ‘‘(C) which is constructed, reconstructed, 

19 erected, or acquired by the taxpayer, and 

20 ‘‘(D) the original use of which commences 

21 with the taxpayer. 

22 ‘‘(3) QUALIFIED FACILITY.—For purposes of 

23 this section, the term ‘qualified facility’ means a fa24 cility which is— 


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1 ‘‘(A)(i) used for the generation of elec2 tricity from qualified energy resources (as such 

3 term is defined in section 45(c)(1)), or 

4 ‘‘(ii) described in section 638(a)(1) of the 

5 Energy Policy Act of 2005 (42 U.S.C. 

6 16014(a)(1)), and 

7 ‘‘(B) originally placed in service after De8 cember 31, 2020. 

9 ‘‘(c) QUALIFIED INVESTMENT WITH RESPECT TO

10 QUALIFIED CARBON CAPTURE AND SEQUESTRATION

11 EQUIPMENT.— 

12 ‘‘(1) IN GENERAL.—For purposes of subsection 

13 (a)(2), the qualified investment with respect to 

14 qualified carbon capture and sequestration equip15 ment for any taxable year is the basis of any quali16 fied carbon capture and sequestration equipment 

17 placed in service by the taxpayer during such taxable 

18 year. 

19 ‘‘(2) QUALIFIED CARBON CAPTURE AND SE20 QUESTRATION EQUIPMENT.—The term ‘qualified 

21 carbon capture and sequestration equipment’ means 

22 property— 

23 ‘‘(A) installed at a facility placed in service 

24 before January 1, 2021, which— 

25 ‘‘(i) produces electricity, or 


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1 ‘‘(ii) emits greenhouse gases as a re2 sult of industrial processes, 

3 ‘‘(B) which results in the elimination of 

4 carbon dioxide emissions from the facility 

5 through the capture and disposal or utilization 

6 of qualified carbon dioxide (as defined in para7 graph (3)), 

8 ‘‘(C) with respect to which depreciation is 

9 allowable, 

10 ‘‘(D) which is constructed, reconstructed, 

11 erected, or acquired by the taxpayer, and 

12 ‘‘(E) the original use of which commences 

13 with the taxpayer. 

14 ‘‘(3) QUALIFIED CARBON DIOXIDE.—The term 

15 ‘qualified carbon dioxide’ means carbon dioxide cap16 tured from an industrial source which— 

17 ‘‘(A) would otherwise be released into the 

18 atmosphere as industrial emission of green19 house gas, 

20 ‘‘(B) is measured at the source of capture 

21 and verified at the point of disposal or utiliza22 tion, 

23 ‘‘(C)(i) is disposed of by the taxpayer in 

24 secure geological storage (as such term is de25 fined under section 45Q(f)(2)), or 


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1 ‘‘(ii) utilized by the taxpayer in a manner 

2 described in section 45Q(f)(5), and 

3 ‘‘(D) is captured and disposed or utilized 

4 within the United States (within the meaning of 

5 section 638(1)) or a possession of the United 

6 States (within the meaning of section 638(2)). 

7 ‘‘(d) QUALIFIED INVESTMENT WITH RESPECT TO

8 ENERGY STORAGE PROPERTY.— 

9 ‘‘(1) IN GENERAL.—For purposes of subsection 

10 (a)(3), the qualified investment with respect to en11 ergy storage property for any taxable year is the 

12 basis of any energy storage property placed in serv13 ice by the taxpayer during such taxable year. 

14 ‘‘(2) ENERGY STORAGE PROPERTY.—The term 

15 ‘energy storage property’ means property— 

16 ‘‘(A) which receives, stores, and delivers 

17 electricity, or energy for conversion to elec18 tricity, provided that such electricity is— 

19 ‘‘(i) sold by the taxpayer to an unre20 lated person, or 

21 ‘‘(ii) in the case of a facility which is 

22 equipped with a metering device which is 

23 owned and operated by an unrelated per24 son, sold or consumed by the taxpayer, 


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1 ‘‘(B) with respect to which depreciation is 

2 allowable, 

3 ‘‘(C) which is constructed, reconstructed, 

4 erected, or acquired by the taxpayer, 

5 ‘‘(D) the original use of which commences 

6 with the taxpayer, and 

7 ‘‘(E) which is placed in service after De8 cember 31, 2020. 

9 ‘‘(e) QUALIFIED ENTITY.— 

10 ‘‘(1) IN GENERAL.—For purposes of this sec11 tion, the term ‘qualified entity’ means an entity 

12 which has been certified by the Secretary of Labor 

13 as being in compliance with all of the applicable re14 quirements under section 2 of the Good Jobs for 

15 21st Century Energy Act. 

16 ‘‘(2) AGGREGATION RULE.—All persons which 

17 are treated as a single employer under subsections 

18 (a) and (b) of section 52 shall be treated as a single 

19 taxpayer. 

20 ‘‘(3) REQUIREMENT FOR CERTIFICATION PRIOR

21 TO CONSTRUCTION.—For purposes of this section, 

22 an entity shall not be considered a qualified entity 

23 unless such entity— 

24 ‘‘(A) has been certified by the Secretary of 

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1 plicable requirements described in paragraph 

2 (1) prior to the date with respect to which con3 struction of the property begins, and 

4 ‘‘(B) maintains such certification for the 

5 entirety of the period beginning on the date de6 scribed in subparagraph (A) and ending on the 

7 date in which the property is placed in serv8 ice.’’. 

9 (b) CONFORMING AMENDMENTS.— 

10 (1) Section 46 of such Code is amended— 

11 (A) by striking ‘‘and’’ at the end of para12 graph (5), 

13 (B) by striking the period at the end of 

14 paragraph (6) and inserting ‘‘, and’’, and 

15 (C) by adding at the end the following new 

16 paragraph: 

17 ‘‘(7) the Jobs in Energy credit.’’. 

18 (2) Section 49(a)(1)(C) of such Code is amend19 ed— 

20 (A) by striking ‘‘and’’ at the end of clause 

21 (iv), 

22 (B) by striking the period at the end of 

23 clause (v) and inserting a comma, and 

24 (C) by adding at the end the following new 

25 clauses: 


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1 ‘‘(vi) the basis of any qualified prop2 erty which is part of a qualified facility 

3 under section 48D, 

4 ‘‘(vii) the basis of any qualified carbon 

5 capture and sequestration equipment under 

6 section 48D, and 

7 ‘‘(viii) the basis of any energy storage 

8 property under section 48D.’’. 

9 (3) The table of sections for subpart E of part 

10 IV of subchapter A of chapter 1 of such Code is 

11 amended by inserting after the item relating to sec12 tion 48C the following new item: 

‘‘48D. Jobs in Energy credit.’’. 

13 (c) EFFECTIVE DATE.—The amendments made by 

14 this section shall apply to property placed in service after 

15 December 31, 2020. 

16 SEC. 4. EXTENSION AND ENHANCEMENT OF NEW ENERGY 

17 EFFICIENT HOME CREDIT. 

18 (a) EXTENSION.—Subsection (g) of section 45L of 

19 the Internal Revenue Code of 1986 is amended by striking 

20 ‘‘December 31, 2017’’ and inserting ‘‘December 31, 

21 2030’’. 

22 (b) INCREASE IN CREDIT FOR QUALIFIED ENTI23 TIES.—Subsection (a) of such section is amended by add24 ing at the end the following: 


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1 ‘‘(3) ADJUSTMENT FOR QUALIFIED ENTITIES.— 

2 In the case of any taxable year in which the eligible 

3 contractor has been certified as a qualified entity (as 

4 defined in section 48D(e)), paragraph (2) shall be 

5 applied— 

6 ‘‘(A) in subparagraph (A) of such para7 graph, by substituting ‘$2,200’ for ‘$2,000’, 

8 and 

9 ‘‘(B) in subparagraph (B) of such para10 graph, by substituting ‘$1,100’ for ‘$1,000’.’’. 

11 (c) EFFECTIVE DATE.—The amendments made by 

12 this section shall apply to any qualified new energy effi13 cient home acquired after December 31, 2020. 

14 SEC. 5. EXTENSION AND ENHANCEMENT OF ENERGY EFFI15 CIENT COMMERCIAL BUILDING DEDUCTION. 

16 (a) EXTENSION.—Subsection (h) of section 179D of 

17 the Internal Revenue Code of 1986 is amended by striking 

18 ‘‘December 31, 2017’’ and inserting ‘‘December 31, 

19 2030’’. 

20 (b) INCREASE IN DEDUCTION FOR QUALIFIED ENTI21 TIES.—Subsection (d) of such section is amended by add22 ing at the end the following: 

23 ‘‘(7) ADJUSTMENT FOR QUALIFIED ENTITIES.— 

24 In the case of any energy efficient commercial build25 ing property placed in service during any taxable 


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1 year, if such property was installed by an entity 

2 which is certified as a qualified entity (as defined in 

3 section 48D(e)) for such taxable year, subsection 

4 (b)(1) shall be applied by substituting ‘$2.00’ for 

5 ‘$1.80’ in subparagraph (A) thereof.’’. 

6 (c) EFFECTIVE DATE.—The amendments made by 

7 this section shall apply to any property placed in service 

8 after December 31, 2020. 

9 SEC. 6. CLEAN ENERGY MANUFACTURING INITIATIVE. 

10 (a) IN GENERAL.—The Secretary of Energy (referred 

11 to in this section as the ‘‘Secretary’’) shall establish a 

12 Clean Energy Manufacturing Initiative within the Depart13 ment of Energy— 

14 (1) to increase the competitiveness of the 

15 United States in manufacturing clean energy tech16 nologies; 

17 (2) to increase the competitiveness of the 

18 United States across the manufacturing sector by— 

19 (A) boosting energy productivity; and 

20 (B) leveraging clean affordable domestic 

21 energy resources and feedstocks; and 

22 (3) to develop manufacturing supply chains— 

23 (A) for the clean energy economy; 

24 (B) that prioritize family-sustaining jobs; 

25 and 


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1 (C) that prioritize the development of man2 ufacturing facilities in deindustrialized commu3 nities. 

4 (b) CLEAN JOBS WORKFORCE HUB.— 

5 (1) IN GENERAL.—As part of the Clean Energy 

6 Manufacturing Initiative established under sub7 section (a), the Secretary shall establish a clean jobs 

8 workforce hub under which the Secretary shall con9 vene the entities described in paragraph (2) to work 

10 together to train and provide direct assistance to un11 derserved communities in accessing renewable en12 ergy-related jobs. 

13 (2) ENTITIES DESCRIBED.—The entities re14 ferred to in paragraph (1) are— 

15 (A) labor organizations; 

16 (B) renewable energy employers and indus17 try; 

18 (C) frontline and deindustrialized commu19 nities; and 

20 (D) any other community, industry, or 

21 public sector stakeholders, as determined by the 

22 Secretary. 

23 (3) FUNDING.—Of the funding authorized 

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1 retary shall use to carry out this subsection 

2 $25,000,000 each fiscal year. 

3 (c) AUTHORIZATION OF APPROPRIATIONS.—There is 

4 authorized to be appropriated to the Secretary to carry 

5 out this section $100,000,000 for fiscal year 2019 and 

6 each fiscal year thereafter. 

7 SEC. 7. JOB CREATION THROUGH ENERGY EFFICIENT MAN8 UFACTURING. 

9 (a) DEFINITIONS.—In this section: 

10 (1) ENERGY MANAGEMENT PLAN.—The term 

11 ‘‘energy management plan’’ means a plan estab12 lished under subsection (b)(3)(D). 

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

14 the Financing Energy Efficient Manufacturing Pro15 gram established under subsection (b)(1). 

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

17 manager’’ means a qualified entity that receives a 

18 grant under subsection (b)(1). 

19 (4) 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 (5) QUALIFIED ENTITY.—The term ‘‘qualified 

24 entity’’ means— 

25 (A) a State energy office; 


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1 (B) 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, 

5 Tribe, or utility; 

6 (C) an electric cooperative group; and 

7 (D) an entity with a public-private part8 nership under the Hollings Manufacturing Ex9 tension Partnership established under section 

10 25(b) of the National Institute of Standards 

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

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

13 the Secretary of Energy. 

14 (7) 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 (b) FINANCING ENERGY EFFICIENT MANUFAC23 TURING PROGRAM.— 

24 (1) ESTABLISHMENT.—The Secretary shall es25 tablish a program, to be known as the ‘‘Financing 


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1 Energy Efficient Manufacturing Program’’ to pro2 vide grants to qualified entities to fund energy effi3 ciency improvement projects in the manufacturing 

4 sector. 

5 (2) GRANT APPLICATIONS; SELECTION OF

6 GRANT RECIPIENTS.— 

7 (A) GRANT APPLICATIONS.— 

8 (i) IN GENERAL.—Not later than 180 

9 days after the date of enactment of this 

10 Act, qualified entities desiring a grant 

11 under paragraph (1) shall submit to the 

12 Secretary an application in such manner 

13 and containing such information as the 

14 Secretary may require, including a descrip15 tion of— 

16 (I) how the qualified entity will 

17 work with small- and medium-sized 

18 manufacturers to assess the most 

19 promising opportunities for energy ef20 ficiency improvements; 

21 (II) how the qualified entity will 

22 work with small- and medium-sized 

23 manufacturers and, if appropriate, li24 censed engineers to establish an en25 ergy management plan for the smallVerDate Sep 11 2014 23:30 Jul 23, 2019 Jkt 089200 PO 00000 Frm 00026 Fmt 6652 Sfmt 6201 E:\BILLS\S2185.IS S2185

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1 or medium-sized manufacturer to 

2 carry out a project; 

3 (III) the methods and cost-shar4 ing plans the qualified entity will use 

5 to distribute funds to small- and me6 dium-sized manufacturers to subsidize 

7 the costs of carrying out a project; 

8 (IV) the standards by which the 

9 qualified entity will set energy effi10 ciency goals for a project that will re11 sult in meaningful reductions in elec12 tricity or natural gas use by the 

13 small- or medium-sized manufacturer 

14 carrying out the project; 

15 (V) how the qualified entity will 

16 provide support to the small- or me17 dium-sized manufacturer carrying out 

18 a project during the implementation 

19 of the energy management plan; 

20 (VI)(aa) any history of the quali21 fied entity of working collaboratively 

22 with the regional technical assistance 

23 programs of the Department; and 

24 (bb) how the qualified entity 

25 plans to involve the regional technical 


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1 assistance programs in the activities 

2 to be funded by a grant; and 

3 (VII) how the qualified entity will 

4 collect measurements throughout the 

5 implementation of the energy manage6 ment plan— 

7 (aa) to demonstrate how en8 ergy efficiency improvements are 

9 being achieved; and 

10 (bb) to maximize opportuni11 ties for project success. 

12 (ii) PARTNERSHIPS.—Two or more 

13 qualified entities may form a partnership 

14 to apply, and act as program manager, for 

15 a grant under this paragraph. 

16 (B) SELECTION OF GRANT RECIPIENTS.— 

17 (i) IN GENERAL.—Not later than 90 

18 days after the date on which the Secretary 

19 receives an application under subparagraph 

20 (A), the Secretary shall— 

21 (I) review the application; 

22 (II) provide the applicant with an 

23 opportunity to respond to any ques24 tions of the Secretary regarding the 

25 application; and 


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1 (III) select or deny the applicant 

2 based on the criteria described in 

3 clause (ii). 

4 (ii) SELECTION CRITERIA.— 

5 (I) IN GENERAL.—The Secretary 

6 shall select for grants under this para7 graph qualified entities that dem8 onstrate a history of successfully im9 plementing energy efficiency improve10 ment programs for small- and me11 dium-sized manufacturers. 

12 (II) PRIORITY.—In making selec13 tions under subclause (I), the Sec14 retary shall give priority to qualified 

15 entities that demonstrate— 

16 (aa) effective methods for 

17 reducing barriers to entry that 

18 might otherwise prevent small19 and medium-sized manufacturers 

20 from participating in the 

21 subgrant program under para22 graph (3); 

23 (bb) flexibility in addressing 

24 the needs of different small- and 

25 medium-sized manufacturers; and 


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1 (cc) a commitment to hiring 

2 for projects contractors that com3 ply with the labor requirements 

4 described in paragraph (4)(B). 

5 (3) SUBGRANTS FOR ENERGY EFFICIENCY IM6 PROVEMENTS.— 

7 (A) IN GENERAL.—A qualified entity (in8 cluding a partnership of 1 or more qualified en9 tities under paragraph (2)(A)(ii)) that receives 

10 a grant under paragraph (1) shall act as a pro11 gram manager to distribute subgrants to small12 and medium-sized manufacturers located in the 

13 State in which the program manager is located 

14 to carry out projects— 

15 (i) to improve the energy efficiency of 

16 the small- or medium-sized manufacturer; 

17 and 

18 (ii) to develop technologies to reduce 

19 electricity or natural gas use by the small20 or medium-sized manufacturer. 

21 (B) APPLICATIONS.—A small- or medium22 sized manufacturer desiring a subgrant under 

23 subparagraph (A) shall submit to the program 

24 manager an application at such time, in such 

25 manner, and containing such information as the 


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1 program manager may require, including a pro2 posal describing the project to be carried out 

3 using the subgrant funds. 

4 (C) PRIORITY.—In selecting small- or me5 dium-sized manufacturers for subgrants under 

6 this paragraph, the program manager shall give 

7 priority to small- or medium-sized manufactur8 ers that commit to hiring for projects contrac9 tors that comply with the labor requirements 

10 described in paragraph (4)(B). 

11 (D) ELIGIBILITY REQUIREMENTS.—To be 

12 eligible to receive a subgrant under subpara13 graph (A), a small- or medium-sized manufac14 turer shall be a private, nongovernmental enti15 ty. 

16 (E) ENERGY MANAGEMENT PLANS.—Each 

17 small- or medium-sized manufacturer receiving 

18 a subgrant under subparagraph (A), in con19 sultation with the program manager and, if ap20 propriate, 1 or more licensed engineers, shall 

21 establish an energy management plan for the 

22 small- or medium-sized manufacturer to carry 

23 out the project. 

24 (F) EFFECT ON TITLE TO PROPERTY.— 

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1 graph shall not prohibit an entity that pur2 chased equipment or other property using those 

3 funds from owning sole, permanent title to the 

4 equipment or other property. 

5 (4) CONTRACTORS.— 

6 (A) IN GENERAL.—Program managers and 

7 small- or medium-sized manufacturers may 

8 hire, if necessary, contractors to perform work 

9 relating to the installation, repair, or mainte10 nance of equipment used under a project. 

11 (B) LABOR REQUIREMENTS.—In an appli12 cation for a grant or subgrant under this sub13 section, a program manager or a small- or me14 dium-sized manufacturer, respectively, shall 

15 commit to hiring contractors that are certified 

16 by the Secretary of Labor under section 2 as 

17 being in compliance with all of the applicable 

18 requirements under that section. 

19 (5) AMERICAN IRON, STEEL, AND MANUFAC20 TURED PRODUCTS.— 

21 (A) DEFINITIONS.—In this paragraph: 

22 (i) IRON OR STEEL MANUFACTURED

23 PRODUCT.—The term ‘‘iron or steel manu24 factured product’’ includes any construc25 tion material or end product (as those 


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1 terms are defined in subpart 25.003 of the 

2 Federal Acquisition Regulation) that does 

3 not otherwise qualify as an iron or steel 

4 product, including— 

5 (I) an electrical component; 

6 (II) a non-ferrous building mate7 rial, including— 

8 (aa) aluminum and 

9 polyvinylchloride; 

10 (bb) glass; 

11 (cc) fiber optics; 

12 (dd) plastic; 

13 (ee) wood; 

14 (ff) masonry; 

15 (gg) rubber; 

16 (hh) manufactured stone; 

17 and 

18 (ii) any other non-ferrous 

19 metals; and 

20 (III) any unmanufactured con21 struction material. 

22 (ii) PRODUCED IN THE UNITED

23 STATES.— 

24 (I) IN GENERAL.—The term 

25 ‘‘produced in the United States’’— 


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1 (aa) with respect to an iron 

2 or steel product or an iron or 

3 steel manufactured product, 

4 means that all manufacturing 

5 processes for, and materials and 

6 components of, the iron or steel 

7 product or iron or steel manufac8 tured product, from the initial 

9 melting stage through the appli10 cation of coatings, occurred in 

11 the United States; and 

12 (bb) with respect to an iron 

13 or steel manufactured product, 

14 means that— 

15 (AA) the iron or steel 

16 manufactured product was 

17 manufactured in the United 

18 States; and 

19 (BB) the cost of the 

20 components of the iron or 

21 steel manufactured product 

22 that were mined, produced, 

23 or manufactured in the 

24 United States is greater 

25 than 60 percent of the total 


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1 cost of the components of 

2 the iron or steel manufac3 tured product. 

4 (II) EXCLUSIONS.—The term 

5 ‘‘produced in the United States’’, with 

6 respect to an iron or steel product or 

7 an iron or steel manufactured prod8 uct, does not include an iron or steel 

9 product or an iron or steel manufac10 tured product the materials and com11 ponents of which were manufac12 tured— 

13 (aa) abroad from semi-fin14 ished steel or iron from the 

15 United States; or 

16 (bb) in the United States 

17 from semi-finished steel or iron 

18 of foreign origin. 

19 (B) REQUIREMENT.—Funds made avail20 able under the program may not be used for a 

21 project unless all of the iron and steel products 

22 and iron and steel manufactured products used 

23 in the project are produced in the United 

24 States. 

25 (C) WAIVER.— 


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1 (i) IN GENERAL.—On request of the 

2 recipient of a grant under the program, 

3 the Secretary may grant for the project of 

4 the recipient of the grant a waiver of the 

5 requirement described in subparagraph (B) 

6 if the Secretary finds that— 

7 (I) the application of subpara8 graph (B) would be inconsistent with 

9 the public interest; 

10 (II) iron or steel products or iron 

11 or steel manufactured products are 

12 not produced in the United States— 

13 (aa) in sufficient and rea14 sonably available quantities; or 

15 (bb) of a satisfactory qual16 ity; or 

17 (III) the inclusion of iron or steel 

18 products or iron or steel manufac19 tured products produced in the United 

20 States would increase the cost of the 

21 overall project by greater than 25 per22 cent. 

23 (ii) PUBLIC NOTICE.—On receipt of a 

24 request for a waiver under clause (i), the 

25 Secretary shall— 


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1 (I) make available to the public, 

2 including by electronic means, includ3 ing on the official public website of 

4 the Department, on an informal basis, 

5 a copy of the request and all informa6 tion available to the Secretary relating 

7 to the request; and 

8 (II) provide for informal public 

9 input on the request for a period of 

10 not fewer than 15 days before making 

11 with respect to the request the finding 

12 described in clause (i). 

13 (6) REPORTING REQUIREMENTS.— 

14 (A) IN GENERAL.—Each program manager 

15 shall— 

16 (i) determine what data shall be re17 quired— 

18 (I) to be collected by or from 

19 each small- or medium-sized manufac20 turer receiving a subgrant under para21 graph (3); and 

22 (II) to be submitted to the pro23 gram manager to permit analysis of 

24 the subgrant program under para25 graph (3); and 


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1 (ii) develop metrics to determine the 

2 success of the subgrant program under 

3 paragraph (3). 

4 (B) PROVISION OF DATA.—As a condition 

5 of receiving a subgrant under paragraph (3), a 

6 small- or medium-sized manufacturer shall pro7 vide to the program manager relevant data, as 

8 determined by the program manager under sub9 paragraph (A)(i). 

10 (C) PROPRIETARY INFORMATION.—In car11 rying out this paragraph, each program man12 ager, as appropriate, shall provide for the pro13 tection of proprietary information and intellec14 tual property rights. 

15 (7) FUNDING.— 

16 (A) IN GENERAL.—Out of amounts made 

17 available to the Secretary and not otherwise ob18 ligated, the Secretary shall use to carry out this 

19 subsection not more than $600,000,000. 

20 (B) REQUIREMENTS FOR PROGRAM MAN21 AGERS.—A program manager shall use not 

22 greater than 7 percent of the grant funds re23 ceived by the program manager, at the discre24 tion of the program manager— 


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1 (i) to hire and train staff to assist the 

2 program manager in administering the 

3 subgrant program of the program man4 ager; and 

5 (ii) to market the subgrant program 

6 to small- and medium-sized manufacturers. 

7 (C) MANAGEMENT AND OVERSIGHT.—The 

8 Secretary may use not greater than 0.25 per9 cent of the funds made available under sub10 paragraph (A) to carry out paragraph (5). 

11 SEC. 8. INCENTIVES FOR INNOVATIVE TECHNOLOGIES. 

12 Section 1703(b) of the Energy Policy Act of 2005 

13 (42 U.S.C. 16513(b)) is amended— 

14 (1) by redesignating paragraphs (1) through 

15 (10) as subparagraphs (A) through (J), respectively, 

16 and indenting appropriately; 

17 (2) in the matter preceding subparagraph (A) 

18 (as so redesignated), by striking ‘‘Projects’’ and in19 serting the following: 

20 ‘‘(1) IN GENERAL.—Projects’’; and 

21 (3) by adding at the end the following: 

22 ‘‘(2) PRIORITY.—In making guarantees under 

23 this section, the Secretary shall give priority to 

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1 retary of Labor under section 2 of the Good Jobs for 

2 21st Century Energy Act as being in compliance 

3 with all of the applicable requirements under that 

4 section.’’. 

Æ 


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