II 

117TH CONGRESS 

2D SESSION S. 4144 

To amend the Energy Policy Act of 2005 to establish an energy efficient 

appliance rebate program to provide rebates for the manufacturing, distribution, and shipment of certain building electrification products, and 

for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MAY 4, 2022 

Mr. MARKEY (for himself, Ms. WARREN, Mr. SANDERS, Mr. BOOKER, and Ms. 

SMITH) introduced the following bill; which was read twice and referred 

to the Committee on Finance 

A BILL 

To amend the Energy Policy Act of 2005 to establish an 

energy efficient appliance rebate program to provide rebates for the manufacturing, distribution, and shipment 

of certain building electrification products, 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 ‘‘Installing Clean Effi5 cient Energy Hastens Our Transition Act of 2022’’ or the 

6 ‘‘ICEE HOT Act of 2022’’. 


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1 SEC. 2. FINDINGS. 

2 Congress finds that— 

3 (1) additional measures are needed to further 

4 reduce United States and European dependence on 

5 Russia and other authoritarian petrostates while also 

6 saving money for people in the United States, pro7 tecting public health, and combating the climate cri8 sis; 

9 (2) over the past 5 years, the United States 

10 has, on average, imported approximately 500,000 

11 barrels of oil per day from Russia; 

12 (3) almost 40 percent, or 196,500 barrels per 

13 day, of Russian oil supplied to the United States can 

14 be replaced by swapping out the 5,300,000 residen15 tial oil heating devices in the United States with ef16 ficient electric heat pumps; 

17 (4) in 2020, 104,000 heat pump water heaters 

18 were installed in the United States; 

19 (5) in 2021, 3,900,000 air source heat pumps 

20 were installed in the United States; 

21 (6) through the modified energy efficient appli22 ance rebate program of the Department of Energy, 

23 the United States could provide midstream incen24 tives and upstream incentives that support and in25 crease manufacturing capacity and supply chain se26 curity for technologies that reduce fossil fuel demand 


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1 and fuel costs, such as electric heat pumps and effi2 cient electric appliances; 

3 (7) $10,000,000,000 in midstream incentives 

4 and upstream incentives at $1,000 per unit for cold 

5 climate and $500 per unit for noncold climate 

6 would— 

7 (A) help the manufacture of an additional 

8 7,500,000 heat pumps in the United States; 

9 and 

10 (B) lay the groundwork to bring down 

11 manufacturing and distribution costs in the me12 dium and long term, thus transforming the heat 

13 pump marketplace; and 

14 (8) combined with climate justice and clean en15 ergy investment, generation, and domestic manufac16 turing incentives, the incentives described in para17 graph (6) will provide additional support for national 

18 security, climate action, and consumer protection 

19 goals. 

20 SEC. 3. ENERGY EFFICIENT APPLIANCE REBATE PROGRAM. 

21 (a) DEFINITIONS.—Section 124(a) of the Energy 

22 Policy Act of 2005 (42 U.S.C. 15821(a)) is amended— 

23 (1) by redesignating paragraphs (1) through 

24 (5) as paragraphs (7), (8), (13), (15), and (16), re25 spectively; 


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1 (2) by inserting before paragraph (7) (as so re2 designated) the following: 

3 ‘‘(1) DISADVANTAGED BUSINESS.—The term 

4 ‘disadvantaged business’ means a distributor or 

5 original equipment manufacturer that is a small 

6 business participating in the minority small business 

7 and capital ownership development program of the 

8 Small Business Administration pursuant to section 

9 8(a) of the Small Business Act (15 U.S.C. 637(a)) 

10 (commonly known as the ‘8(a) program’). 

11 ‘‘(2) DISADVANTAGED INDIVIDUAL.—The term 

12 ‘disadvantaged individual’ means— 

13 ‘‘(A) a Black American, Hispanic Amer14 ican, Native American, Asian Pacific American, 

15 any other minority, or any other individual 

16 found to be disadvantaged by the Small Busi17 ness Administration pursuant to section 8(a) of 

18 the Small Business Act (15 U.S.C. 637(a)); and 

19 ‘‘(B) a woman. 

20 ‘‘(3) DISTRIBUTOR.—The term ‘distributor’ 

21 means a person to which an eligible building elec22 trification product is delivered or sold for purposes 

23 of distribution in commerce. 


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1 ‘‘(4) ELECTRIC RESIDENTIAL COLD CLIMATE

2 HEAT PUMP.—The term ‘electric residential cold cli3 mate heat pump’ means a heat pump that— 

4 ‘‘(A) is certified under the Energy Star 

5 program; 

6 ‘‘(B) is optimized for peak heating and 

7 part-load cooling performance; and 

8 ‘‘(C) meets— 

9 ‘‘(i) the cold climate air source heat 

10 pump specifications of the Northeast En11 ergy Efficiency Partnerships; or 

12 ‘‘(ii) the criteria for cold climate heat 

13 pumps under the Energy Star program. 

14 ‘‘(5) ELECTRIC RESIDENTIAL HEAT PUMP

15 WATER HEATER.—The term ‘electric residential heat 

16 pump water heater’ means an electric heat pump 

17 water heater for residential use that is certified 

18 under the Energy Star program. 

19 ‘‘(6) ELIGIBLE BUILDING ELECTRIFICATION

20 PRODUCT.—The term ‘eligible building electrification 

21 product’ means any of the following United States22 made products: 

23 ‘‘(A) An electric residential heat pump 

24 water heater. 


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1 ‘‘(B) An electric residential air source heat 

2 pump. 

3 ‘‘(C) An electric residential central geo4 thermal heat pump. 

5 ‘‘(D) An electric residential cold climate 

6 heat pump. 

7 ‘‘(E) An induction or noninduction electric 

8 smooth stove, flat cooktop, range, or oven. 

9 ‘‘(F) An electric heat pump clothes dryer 

10 that— 

11 ‘‘(i) is certified under the Energy Star 

12 program; or 

13 ‘‘(ii) meets a more stringent standard, 

14 as determined by the Secretary, if the Sec15 retary determines a more stringent stand16 ard is appropriate. 

17 ‘‘(G) A smart panel or a panel that is part 

18 of an electric load or service center upgrade. 

19 ‘‘(H) Any other electric product, as deter20 mined by the Secretary.’’; 

21 (3) by inserting after paragraph (8) (as so re22 designated) the following: 

23 ‘‘(9) MIDSTREAM REBATE.—The term ‘mid24 stream rebate’ means a rebate provided by a State 


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1 to a distributor under a State program described in 

2 subsection (b)(1)(B). 

3 ‘‘(10) ORIGINAL EQUIPMENT MANUFAC4 TURER.—The term ‘original equipment manufac5 turer’ means an entity that manufactures eligible 

6 building electrification products. 

7 ‘‘(11) RESIDENTIAL AIR SOURCE HEAT PUMP.— 

8 The term ‘residential air source heat pump’ means 

9 a heat pump or central air conditioner (as defined 

10 in section 321(21) of the Energy Policy and Con11 servation Act (42 U.S.C. 6291(21))) that— 

12 ‘‘(A) notwithstanding subparagraph (E) of 

13 that section, is a heating and cooling unit; and 

14 ‘‘(B) is certified under the Energy Star 

15 program. 

16 ‘‘(12) RESIDENTIAL CENTRAL GEOTHERMAL

17 HEAT PUMP.—The term ‘residential central geo18 thermal heat pump’ has the meaning given the term 

19 ‘qualified geothermal heat pump property’ in section 

20 25D(d)(5)(B) of the Internal Revenue Code of 

21 1986.’’; 

22 (4) by inserting after paragraph (13) (as so re23 designated) the following: 

24 ‘‘(14) SMART PANEL.—The term ‘smart panel’ 

25 means an electrical power distribution panel with an 


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1 integrated communications and energy management 

2 system capable of— 

3 ‘‘(A) interoperability with electric utility 

4 distribution networks; and 

5 ‘‘(B) monitoring and controlling individual 

6 circuits to ensure that the total load on the 

7 electrical service does not exceed a programmed 

8 set-point.’’; and 

9 (5) by adding at the end the following: 

10 ‘‘(17) UNITED STATES-MADE.—The term 

11 ‘United States-made’, with respect to an eligible 

12 building electrification product, means that not less 

13 than 55 percent of the components of the eligible 

14 building electrification product are mined, produced, 

15 or manufactured, as applicable, in the United 

16 States, as determined by the Secretary. 

17 ‘‘(18) UPSTREAM REBATE.—The term ‘up18 stream rebate’ means a rebate provided by a State 

19 to a distributor or original equipment manufacturer 

20 under a State program described in subsection 

21 (b)(1)(B).’’. 

22 (b) PROGRAM.—Section 124 of the Energy Policy Act 

23 of 2005 (42 U.S.C. 15821) is amended— 

24 (1) in subsection (b)(1)— 


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1 (A) by striking ‘‘program to provide’’ and 

2 inserting the following: ‘‘program— 

3 ‘‘(A) to provide’’; 

4 (B) in subparagraph (A) (as so des5 ignated), by adding ‘‘or’’ at the end after the 

6 semicolon; and 

7 (C) by adding at the end the following: 

8 ‘‘(B) to provide midstream rebates and up9 stream rebates to original equipment manufac10 turers and distributors, as applicable, for the 

11 manufacturing, distribution, or shipment of eli12 gible building electrification products;’’; 

13 (2) in subsection (d)— 

14 (A) by striking ‘‘The allocation’’ and in15 serting the following: 

16 ‘‘(1) IN GENERAL.—The allocation’’; and 

17 (B) by adding at the end the following: 

18 ‘‘(2) DISADVANTAGED BUSINESSES AND INDI19 VIDUALS.—Of the amount used by a State to carry 

20 out a State program described in subsection 

21 (b)(1)(B), not less than 40 percent shall be used to 

22 provide midstream rebates and upstream rebates— 

23 ‘‘(A) to disadvantaged businesses; or 


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1 ‘‘(B) to original equipment manufacturers 

2 or distributors that employ disadvantaged indi3 viduals. 

4 ‘‘(3) UNION FACILITIES.—Of the amount used 

5 by a State to carry out a State program described 

6 in subsection (b)(1)(B), not less than 40 percent 

7 shall be used to provide midstream rebates and up8 stream rebates to distributors and original equip9 ment manufacturers, as applicable, that own or op10 erate facilities operating under a collective bar11 gaining agreement negotiated by a labor organiza12 tion (as defined in section 2 of the National Labor 

13 Relations Act (29 U.S.C. 152)) in accordance with 

14 the requirements of section 9 of the National Labor 

15 Relations Act (29 U.S.C. 159).’’; 

16 (3) in subsection (e)— 

17 (A) by redesignating paragraphs (1) 

18 through (3) as subparagraphs (A), (C), and 

19 (D), respectively, and indenting appropriately; 

20 (B) in the matter preceding subparagraph 

21 (A) (as so redesignated), by striking ‘‘Rebates’’ 

22 in the first sentence and all that follows 

23 through ‘‘The amount’’ in the second sentence 

24 and inserting the following: 


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1 ‘‘(1) IN GENERAL.—Rebates may be provided 

2 to— 

3 ‘‘(A) residential consumers that meet the 

4 requirements of the State program described in 

5 subsection (b)(1)(A); and 

6 ‘‘(B) original equipment manufacturers 

7 and distributors of eligible building electrifica8 tion products that meet the requirements of the 

9 State program described in subsection 

10 (b)(1)(B). 

11 ‘‘(2) AMOUNT.—The amount’’; and 

12 (C) in paragraph (2) (as so designated)— 

13 (i) in the matter preceding subpara14 graph (A) (as so redesignated), by striking 

15 ‘‘consideration—’’ and inserting ‘‘consider16 ation, as applicable—’’; and 

17 (ii) by inserting after subparagraph 

18 (A) (as so redesignated) the following: 

19 ‘‘(B) the amount of any Federal or State 

20 tax incentive available for the manufacturing or 

21 distribution of eligible building electrification 

22 products;’’; and 

23 (4) by striking subsection (f) and inserting the 

24 following: 


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1 ‘‘(f) ADMINISTRATIVE REQUIREMENTS FOR RECIPI2 ENTS OF MIDSTREAM AND UPSTREAM REBATES.— 

3 ‘‘(1) PASS-THROUGH.— 

4 ‘‘(A) IN GENERAL.—As a condition of re5 ceipt of a midstream rebate or upstream rebate, 

6 a distributor or original equipment manufac7 turer shall pass through not less than 90 per8 cent of the value of the midstream rebate or up9 stream rebate, as applicable, to a distributor or 

10 other customer in the form of a reduced price 

11 for the purchase of an eligible building elec12 trification product. 

13 ‘‘(B) USE OF REMAINDER.—After carrying 

14 out subparagraph (A), a distributor or original 

15 equipment manufacturer may retain not more 

16 than 10 percent of the remainder of the appli17 cable midstream rebate or upstream rebate as 

18 a processing fee. 

19 ‘‘(2) COORDINATION WITH EXISTING PRO20 GRAMS.—An entity that receives a midstream rebate 

21 or upstream rebate is encouraged to coordinate with 

22 Federal and State agencies, electric utilities, natural 

23 gas utilities, nonprofit organizations, and other enti24 ties carrying out other relevant Federal or State re25 bate programs. 


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1 ‘‘(3) NO MULTIPLE MIDSTREAM AND UPSTREAM

2 REBATES.—An entity that receives a midstream re3 bate or upstream rebate for an eligible building elec4 trification product may not receive— 

5 ‘‘(A) an upstream rebate or midstream re6 bate, respectively, for the same eligible building 

7 electrification product; or 

8 ‘‘(B) a second midstream rebate or up9 stream rebate, respectively, for the same eligible 

10 building electrification product. 

11 ‘‘(4) TAXATION.—A midstream rebate or up12 stream rebate shall not be considered to be gross in13 come of the recipient of the rebate for purposes of 

14 the Internal Revenue Code of 1986. 

15 ‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There 

16 is authorized to be appropriated to the Secretary to carry 

17 out this section to provide allocations only to States that 

18 have established a State program described in subsection 

19 (b)(1)(B) $10,000,000,000 for the period of fiscal years 

20 2023 through 2030.’’. 

Æ 


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