Industrial Efficiency Incentive Act

To establish a program to issue rebates for energy efficiency improvements at industrial facilities, and for other purposes. 1. Short title; definitions (a) Short title This Act may be cited as the Industrial Efficiency Incentive Act (b) Definitions In this Act: (1) Certified energy expert The term certified energy expert (2) Eligible facility The term eligible facility (3) Industrial Assessment Centers The term Industrial Assessment Centers (4) Qualified entity The term qualified entity (5) Qualified technology The term qualified technology (A) that is used at an eligible facility; and (B) that— (i) the use of which can be demonstrated to result in energy efficiency improvements of at least 20 percent over an eligible facility’s existing technology and does not increase scope 1 greenhouse gas emissions or scope 2 greenhouse gas emissions, as such terms are defined by the Administrator of the Environmental Protection Agency, of the eligible facility; (ii) the use of which can be demonstrated to reduce the amount of water used by at least 20 percent over an eligible facility’s existing technology; or (iii) replaces fossil fuel-fired technology at an eligible facility. (6) Utility The term utility (7) Working Group The term Working Group 2. Purposes The purposes of this Act are to— (1) reduce greenhouse gas emissions from the industrial sector; (2) maximize the energy efficiency and water use efficiency of United States industrial facilities; (3) make industrial facilities more financially viable by making energy efficiency improvements at such facilities that lower energy costs; (4) create opportunities for energy efficiency manufacturing and installation jobs across the United States; and (5) make the United States industrial sector the cleanest in the world. 3. Sustainable industry rebate program (a) In general The Secretary of Energy shall establish a program, to be known as the Sustainable Industry Rebate Program (b) Process (1) In general Not later than 180 days after the date of enactment of this Act, the Secretary of Energy, in consultation with the Secretary of the Treasury, shall— (A) develop and make available rebate forms which qualified entities shall use to request a rebate issued under the Sustainable Industry Rebate Program; and (B) establish a database and information technology system, to be known as the Federal Rebate Processing System (2) Requirements To be eligible to receive a rebate issued under the Sustainable Industry Rebate Program, a qualified entity shall submit to the Secretary of Energy a completed form made available under paragraph (1)(A) at such time and containing such information as the Secretary of Energy may require, which at a minimum such form shall— (A) demonstrate— (i) that the qualified entity purchased a qualified technology; (ii) that such qualified technology is eligible for the Sustainable Industry Rebate Program; (iii) whether such qualified technology is eligible for any of the additional rebate amounts provided in subsection (d)(2); and (iv) as applicable, whether any technology replaced by the qualified technology has been permanently decommissioned; and (B) include information on— (i) the amount of the reduction in energy or water use to be achieved by implementation of the qualified technology; and (ii) the amount of any reduction in greenhouse gas emissions that results from replacing an existing technology with the qualified technology. (c) Sustainable Industry Database (1) Establishment Not later than 90 days after the date of enactment of this Act, the Secretary of Energy shall establish and maintain on the website of the Department of Energy a national database, to be known as the Sustainable Industry Database (2) Inclusions The Sustainable Industry Database shall include— (A) a list of the technologies that the Working Group determines are qualified technologies; (B) a list of the qualified technologies that are eligible for the Made in America additional rebate amounts provided in subsection (d)(2)(A); (C) instructions for how a qualified entity may apply for a rebate issued under the Sustainable Industry Rebate Program; (D) instructions for how to petition the Working Group to request an addition to a list of qualified technologies included by subparagraph (A) or subparagraph (B); (E) instructions for how to petition the Working Group to recognize technologies that individually do not qualify for the rebate but can be combined and used to provide a benefit equal to or greater than a qualified technology, such as pumps and pipes used together; and (F) any additional information determined appropriate by the Secretary of Energy. (d) Authorized amount of rebate (1) Base rebates The base amount of a rebate issued under the Sustainable Industry Rebate Program shall be equal to the amount that is— (A) for a qualified entity with more than 500 employees, 25 percent of the total cost to purchase the qualified technology; and (B) for a qualified entity with fewer than 500 employees, 40 percent of the total cost to purchase the qualified technology. (2) Additional rebate amounts In addition to the base amount described in paragraph (1), the total amount of a rebate issued under the Sustainable Industry Rebate Program may be increased by— (A) if the majority of the components of the purchased qualified technology were manufactured in the United States, the amount that is equal to 15 percent of the total cost to purchase the qualified technology; and (B) if the qualified technology facilitates a switch from a fossil fuel-fired energy source to a zero-carbon energy source, the amount that is equal to 10 percent of the total cost to purchase the qualified technology. (3) Cost to purchase qualified technology For the purpose of determining the amount of a rebate issued under the Sustainable Industry Rebate Program, the total cost to purchase the qualified technology shall include all costs associated with— (A) the purchase and installation of the qualified technology; and (B) the removal of any existing technology as a result of such purchase and installation. (e) Authorization of appropriations There is authorized to be appropriated to carry out this section $1,000,000,000 for each of fiscal years 2022 through 2031, to remain available until expended. 4. Industrial efficiency working group (a) Establishment Not later than 30 days after the date of enactment of this Act, the Secretary of Energy shall establish the Industrial Efficiency Working Group. (b) Membership (1) Appointment The Working Group shall be comprised of members who shall be appointed by the Secretary of Energy, in consultation with the Directors of the Advanced Manufacturing Office, the Building Technology Office, and the Office of Energy Efficiency and Renewable Energy of the Department of Energy. (2) Representation Members of the Working group shall include— (A) at least one representative from each relevant Federal agency, as determined by the Secretary of Energy; (B) at least one representative from each relevant office of the Department of Energy; (C) at least one representative from labor groups; (D) representatives from the research community, which shall include at least one representative from academia and at least one representative from any relevant National Laboratories; (E) at least one representative from nongovernmental organizations; (F) representatives from energy efficiency program administrators; (G) representatives from industry and trade associations; and (H) any other individual whom the Secretary of Energy determines to be necessary to ensure that the Working Group is comprised of a diverse group of representatives from industry, academia, independent researchers, and public and private entities. (3) Chair The Secretary of Energy shall designate a member of the Working Group to serve as the Chair. (c) Duties The Working Group shall— (1) develop the list of qualified technologies to be included in the Sustainable Industry Database under section 3(c)(2)(A); (2) develop the list of the qualified technologies that meet the Made in America requirements for additional rebate amounts to be included in the Sustainable Industry Database under section 3(c)(2)(B); (3) determine if any technologies for which a petition is submitted pursuant to section 3(c)(2)(D) should be added to the applicable list; (4) periodically revise the lists developed under paragraphs (1) and (2), which includes revising such lists to remove, as necessary, any technology that is no longer determined to be a qualified technology; and (5) identify technology gaps in industrial efficiency, and make recommendations to address such gaps. (d) Meetings (1) Frequency The Working Group shall meet not less frequently than twice per year, at the call of the Chair. (2) Initial meeting Not later than 60 days after the date on which the members are appointed under subsection (b), the Working Group shall hold its first meeting. (e) Report Not later than 180 days after the date of enactment of this Act, and not less frequently than once every year thereafter, the Working Group shall submit to the Secretary of Energy a report that includes— (1) the list of qualified technologies developed under subsection (c)(1); (2) the list of the qualified technologies developed under subsection (c)(2); and (3) an identification of which technologies were added or removed from the lists described in paragraphs (1) and (2). (f) Coordination In carrying out this section, the Secretary of Energy shall, to the maximum extent possible— (1) coordinate and seek to avoid duplication with other programs of the Department of Energy; (2) coordinate and collaborate with the Industrial Technology Innovation Advisory Committee (established under section 455 of the Energy Independence and Security Act of 2007 ( 42 U.S.C. 17114 (3) leverage existing resources and programs of the Department of Energy. 5. Save carbon now program (a) In general (1) Identification of facilities The Secretary of Energy shall, after consultation with the Administrator of the Environmental Protection Agency, identify the 3,000 eligible facilities in the United States that emit the most greenhouse gases. (2) Assessments and technical assistance With respect to each facility identified in paragraph (1), the Secretary of Energy shall offer to— (A) carry out an assessment of such facility in accordance with subsection (b); and (B) provide technical assistance to such facility to assist with developing and carrying out a plan, in accordance with subsection (c), to implement recommendations provided by the assessment carried out under subparagraph (A). (b) Assessments (1) Requirements Assessments carried out under subsection (a)(2)(A) shall— (A) analyze the energy use and costs of the facility; and (B) provide recommendations to— (i) maximize the energy efficiency of industrial processes and cross-cutting systems at the facility; (ii) reduce greenhouse gas emissions of the facility; (iii) improve the efficient use of water in manufacturing or industrial processes at the facility; (iv) prevent air and water pollution and minimize waste from the facility; and (v) reduce energy and water use, and greenhouse gas emissions, of the facility, including by making— (I) motor system improvements, including to fan, pump, compressed air, and other motor-driven equipment; (II) steam system improvements; (III) heating, ventilating, and air-conditioning system improvements; (IV) lighting system improvements; (V) process equipment or operational improvements; or (VI) water system improvements. (2) Assessment teams The assessments carried out under subsection (a)(2)(A) shall be conducted by teams of experts made up of— (A) staff of the Department of Energy; (B) experts from the National Laboratories; (C) experts from the Manufacturing USA Program established under section 34 of the National Institute of Standards and Technology Act ( 15 U.S.C. 278s (D) faculty and staff from the Industrial Assessment Centers; and (E) other certified energy experts contracted by the Department of Energy. (c) Implementation plans (1) Requirements Implementation plans developed pursuant to subsection (a)(2)(B) shall, with respect to the recommendations included in the assessment— (A) include information on any assistance or training needs necessary to implement such recommendations; (B) include information on any new or upgraded equipment necessary to implement such recommendations; (C) include information on research and development activities that would assist with implementing such recommendations; (D) identify local partners that can be leveraged to implement such recommendations; (E) identify steps needed to implement a strategic energy management program at the facility; and (F) identify Federal, State, and utility assistance programs that may be used to implement such recommendations. (2) Coordination In providing technical assistance to carry out an implementation plan under this section, the Secretary of Energy shall coordinate, as appropriate, with— (A) relevant Federal agencies; and (B) private and public sector entities, including State energy offices, utility regulatory agencies, Indian Tribes, economic development authorities, and utilities. (d) Limitations The Secretary of Energy may not, with respect to a facility identified under subsection (a)(1), expend more than $500,000 in carrying out an assessment and providing technical assistance to such facility under this section. (e) Reporting (1) In general The Secretary of Energy shall submit to Congress a report on the assessments carried out and the technical assistance provided under this section by not later than one year after the date of enactment of this Act, and every two years thereafter. (2) Inclusion The report submitted under paragraph (1) shall include information on— (A) the number of facilities assessed under this section; (B) the total number of recommendations provided pursuant to this section and the expected effect of such recommendations, if implemented, on energy and water use and greenhouse gas emissions of such facilities; (C) the amount of any reductions in energy use of such facilities achieved by implementing such recommendations; (D) the amount of any reductions in greenhouse gas emissions of such facilities achieved by implementing such recommendations; (E) the amount of any reductions in water use of such facilities achieved by implementing such recommendations; and (F) the amount of any reductions in costs to such facilities achieved by implementing such recommendations. (3) Confidential information The Secretary of Energy may not include any confidential information relating to such facilities in any report under this subsection. (f) Authorization of appropriations There is authorized to be appropriated to carry out this section $750,000,000 for fiscal years 2022 through 2026, to remain available until expended.

Summary: Industrial Efficiency Incentive Act This bill requires the Department of Energy (DOE) to establish the Sustainable Industry Rebate Program to issue rebates to owners or operators of nonpower industrial facilities for purchases of qualified technology (i.e., certain energy efficient technology). Additionally, DOE must identify the 3,000 nonpower industrial facilities that emit the most greenhouse gases and offer to assess the facilities and provide assistance and recommendations.