First Three Act of 2022

To require the Secretary of Energy to provide grants and loan guarantees for commercial-scale implementation of transformative industrial technologies, and for other purposes. 1. Short title This Act may be cited as the First Three Act of 2022 2. Commercial-scale implementation of transformative industrial technologies (a) Definitions In this section: (1) Eligible entity The term eligible entity (A) An owner of an industrial plant at which an eligible technology would be implemented. (B) (i) A provider that— (I) manufactures an eligible technology; or (II) implements or integrates an eligible technology at an industrial plant; or (ii) any other entity involved in the implementation of eligible technology at an industrial plant. (C) A consortium or partnership of 1 or more entities described in subparagraphs (A) and (B). (2) Eligible project The term eligible project (3) Eligible project costs The term eligible project costs (4) Eligible technology The term eligible technology (A) is an innovative technology (as described in section 454(b)(1) of the Energy Independence and Security Act of 2007 ( 42 U.S.C. 17113(b)(1) (B) is demonstrated to be technically viable at pilot scale and ready for commercial-scale implementation; (C) is able to significantly reduce the energy use or greenhouse gas emissions of the process with respect to which the eligible technology is implemented, relative to the technology available on the date of enactment of this Act; and (D) has the potential to significantly reduce annual United States industrial energy use or greenhouse gas emissions, relative to the United States industrial energy use or greenhouse gas emissions in calendar year 2021, if the eligible technology is widely implemented at the appropriate industrial plants in the United States. (5) Program The term program (6) Secretary The term Secretary (7) State The term State (A) a State; (B) the District of Columbia; and (C) any territory or possession of the United States. (b) Establishment Subject to the availability of appropriations, the Secretary shall establish a program under which the Secretary shall provide grants and loan guarantees to eligible entities to carry out eligible projects. (c) Applications (1) In general To apply for a grant or loan guarantee under the program, an eligible entity shall submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require. (2) Selection In evaluating applications submitted under paragraph (1), the Secretary shall select applications that will result in the greatest— (A) improvement to the competitiveness of United States industry in global markets; (B) reduction in energy use; or (C) reduction in greenhouse gas emissions. (3) Consultation In evaluating applications submitted under paragraph (1), the Secretary shall solicit input from outside technical and industry experts on the specific industry sectors in which the eligible technologies would be implemented. (d) Grants and loan guarantees (1) In general In carrying out the program, the Secretary— (A) shall provide grants or loan guarantees to carry out not more than 3 eligible projects in each category of eligible technology; and (B) may provide a grant and a loan guarantee to the same eligible entity. (2) Grant amounts The amount of a grant that may be provided under the program to carry out an eligible project in each category of eligible technology shall be not more than the following: (A) 60 percent of the total eligible project costs for the first eligible project awarded a grant in that category. (B) 45 percent of the total eligible project costs for the second eligible project awarded a grant in that category. (C) 30 percent of the total eligible project costs for the third eligible project awarded a grant in that category. (3) Loan guarantee amounts (A) In general The Secretary may not provide a loan guarantee under the program for an amount that is greater than 80 percent of the eligible project costs. (B) Grant and loan guarantee If an eligible entity is provided a grant and a loan guarantee under the program, the loan guarantee may not exceed the amount that is equal to 80 percent of the amount that is equal to the difference between— (i) the eligible project cost; and (ii) the amount of the grant. (4) Project milestones The Secretary shall— (A) work with each grant or loan guarantee recipient under the program to develop project milestones; and (B) issue the grant amount or loan guarantee, as applicable, after that recipient has demonstrated that the eligible project has reached those project milestones. (e) Monitoring and reporting (1) In general The Secretary shall annually submit to Congress a report describing the eligible projects that were carried out using grants and loan guarantees provided under the program. (2) Proprietary and competitive information The Secretary shall exclude from each report submitted under paragraph (1) any proprietary or competitive information relating to the eligible entities that were provided a grant or loan guarantee, or eligible technologies that were implemented, under the program. (f) Authorization of appropriations There is authorized to be appropriated to the Secretary to carry out this section, to remain available until expended— (1) $500,000,000 for fiscal year 2022; and (2) $1,000,000,000 for each of fiscal years 2023 through 2031.

Summary: First Three Act of 2022 This bill requires the Department of Energy to establish a program to provide grants or loan guarantees for certain innovative technology projects at industrial plants. The technology must (1) be technically viable at pilot scale and ready for commercial-scale implementation, (2) be able to significantly reduce energy use or greenhouse gas emissions, and (3) have the potential to significantly reduce annual U.S. industrial energy use or greenhouse gas emissions if the technology is widely implemented at appropriate industrial plants in the United States.