I 
118TH CONGRESS 
2D SESSION 
H. R. 7611 
To require the Secretary of Energy to establish a program to provide loans 
to manufacturers of energy grid products and components. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 11, 2024 
Mr. HIGGINS of Louisiana introduced the following bill; which was referred 
to the Committee on Energy and Commerce, and in addition to the Com-
mittee on Appropriations, for a period to be subsequently determined by 
the Speaker, in each case for consideration of such provisions as fall with-
in the jurisdiction of the committee concerned 
A BILL 
To require the Secretary of Energy to establish a program 
to provide loans to manufacturers of energy grid prod-
ucts and components. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Facilitating the Re-
shoring of Energy Grid Component Manufacturing Act of 
2024’’. 
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SEC. 2. ENERGY GRID PRODUCT AND COMPONENT MANU-
FACTURING IN THE UNITED STATES. 
(a) DEFINITIONS.—In this section: 
(1) 
COMPONENT.—The 
term 
‘‘component’’ 
means any part or element of an energy grid prod-
uct. 
(2) ELIGIBLE
PROJECT.—The term ‘‘eligible 
project’’ means a project to reequip, expand, or es-
tablish (including through new construction) a man-
ufacturing facility in the United States to produce 
energy grid products or components. 
(3) ENERGY GRID PRODUCT.—The term ‘‘en-
ergy grid product’’ means— 
(A) a bulk-power system (as defined in sec-
tion 215(a) of the Federal Power Act (16 
U.S.C. 824o(a))); 
(B) a large power transformer; 
(C) a switchgear or breaker; 
(D) a converter; 
(E) a direct current filter; 
(F) an alternating current switch or 
switchyard; 
(G) an insulated-gate bipolar transistor; 
(H) a capacitor; 
(I) an inductor; 
(J) an arrestor; 
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(K) a resistor; 
(L) a distribution transformer; 
(M) grain-oriented electrical steel; 
(N) continuously transposed conduction 
(CTC) copper wire; 
(O) silicon steel; 
(P) any insulating material; and 
(Q) any other electrical equipment com-
monly used for the transmission or distribution 
of electric energy by public electric utilities. 
(4) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Energy. 
(b) LOAN PROGRAM.— 
(1) ESTABLISHMENT.— 
(A) IN
GENERAL.—Not later than 180 
days after the date of enactment of this Act, 
and subject to the availability of appropriated 
funds, the Secretary shall establish and carry 
out a program to provide a total of not more 
than $8,000,000,000 in loans to eligible individ-
uals and entities (as determined by the Sec-
retary) for the costs of activities relating to eli-
gible projects. 
(B) FINANCING METHOD.— 
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(i) IN GENERAL.—Except as provided 
in clause (ii), a loan under this subsection 
shall be provided through the Federal Fi-
nancing Bank, with the full faith and cred-
it of the United States Government on the 
principal and interest. 
(ii) COOPERATION WITH OTHER INSTI-
TUTIONS.—A loan under this subsection 
may be provided in cooperation with 1 or 
more banks or other financial institutions 
through agreements to participate on an 
immediate or deferred (guaranteed) basis. 
(C) CREDIT SUBSIDY.—The full credit sub-
sidy for each loan provided under this sub-
section shall be paid by the Secretary using ap-
propriated funds. 
(2) APPLICATION.—An individual or entity de-
siring a loan under this subsection shall submit to 
the Secretary an application at such time, in such 
manner, and containing such information as the Sec-
retary may require, including a written assurance 
that— 
(A) all laborers and mechanics employed 
by contractors or subcontractors during any 
construction, alteration, or repair that is fi-
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nanced, in whole or in part, by a loan provided 
under this subsection shall be paid wages at 
rates not less than those prevailing on projects 
of a character similar in the locality, as deter-
mined by the Secretary of Labor in accordance 
with sections 3141 through 3144, 3146, and 
3147 of title 40, United States Code; and 
(B) the Secretary of Labor shall, with re-
spect to the labor standards described in this 
paragraph, have the authority and functions set 
forth in Reorganization Plan Numbered 14 of 
1950 (5 U.S.C. App.) and section 3145 of title 
40, United States Code. 
(3) SELECTION OF LOAN RECIPIENTS AND ELI-
GIBLE PROJECTS.— 
(A) IN
GENERAL.—The Secretary may 
provide a loan under this subsection if the Sec-
retary determines that— 
(i) the loan recipient— 
(I) has a reasonable prospect of 
repaying the principal and interest on 
the loan; 
(II) will provide sufficient infor-
mation to the Secretary for the Sec-
retary to ensure that the loan pro-
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from reputable sources, as determined by 
the Secretary; 
(iii) cash sweeps and other structure 
enhancements; 
(iv) the projected financial strength of 
the loan recipient— 
(I) at the time of loan close; and 
(II) throughout the loan term 
after the applicable eligible project is 
completed; 
(v) the financial strength of the inves-
tors and strategic partners of the loan re-
cipient, if applicable; and 
(vi) other financial metrics and anal-
yses that are relied on by the private lend-
ing community and nationally recognized 
credit rating agencies, as determined to be 
appropriate by the Secretary. 
(4) RATES, 
TERMS, 
AND
REPAYMENT
OF 
LOANS.—A loan provided under this subsection— 
(A) shall have an interest rate that, as of 
the date on which the loan is provided, is equal 
to the cost of funds to the Department of the 
Treasury for obligations of comparable matu-
rity; 
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(B) shall have a term equal to the lesser 
of— 
(i) the projected life, in years, of the 
eligible project to be carried out using pro-
ceeds from the loan, as determined by the 
Secretary; and 
(ii) 20 years; 
(C) may be subject to a deferral in repay-
ment for not more than 5 years after the date 
on which the eligible project carried out using 
proceeds from the loan first begins operations, 
as determined by the Secretary; 
(D) shall be made by the Federal Financ-
ing Bank; and 
(E) shall be subject to the condition that 
the loan is not subordinate to other financing. 
(5) CONFLICTS OF INTEREST.—For each loan 
provided under this subsection, the Secretary shall 
certify that political influence did not affect the pro-
vision of the loan, including— 
(A) selection of the eligible project for 
which the loan was provided; and 
(B) selection of the loan recipient. 
(6) ADMINISTRATIVE FEE.—The Secretary may 
charge a fee for the administrative and closing costs 
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of a loan provided under this subsection, subject to 
the condition that the fee does not exceed the lesser 
of— 
(A) $100,000; and 
(B) 10 basis points of the principal 
amount of the loan. 
(c) IMPROVEMENT.—Not later than 90 days after the 
date of enactment of this Act, the Secretary shall promul-
gate an interim final rule establishing regulations that the 
Secretary determines to be necessary to administer this 
section and any loans provided by the Secretary under 
subsection (b). 
(d) PRIORITY.— 
(1) IN
GENERAL.—In providing loans under 
this section to manufacturers (including component 
suppliers) that have existing facilities, the Secretary 
shall give priority to manufacturers that are seeking 
to expand manufacturing output through— 
(A) the establishment of 1 or more new fa-
cilities; or 
(B) the reopening of 1 or more facilities. 
(2) IDLE FACILITIES.—A facility described in 
subparagraph (A) or (B) of paragraph (1) may be 
sitting idle as of the date on which the applicable 
loan is provided under this section. 
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(e) SET ASIDE FOR SMALL ENERGY GRID PRODUCT 
MANUFACTURERS AND COMPONENT SUPPLIERS.— 
(1) DEFINITION OF COVERED FIRM.—In this 
subsection, the term ‘‘covered firm’’ means a firm 
that— 
(A) employs fewer than 500 individuals; 
and 
(B) manufactures energy grid products or 
components. 
(2) SET ASIDE.—Of the amounts used to pro-
vide loans each fiscal year under subsection (b), the 
Secretary shall use not less than 5 percent to pro-
vide loans to— 
(A) covered firms; or 
(B) consortia led by covered firms. 
(f) APPOINTMENT AND PAY OF PERSONNEL.— 
(1) IN GENERAL.—The Secretary may use di-
rect hiring authority pursuant to section 3304(a)(3) 
of title 5, United States Code, to appoint such pro-
fessional and administrative personnel as the Sec-
retary determines to be necessary to carry out this 
section and any functions of the Secretary under 
this section. 
(2) RATE OF PAY.—The rate of pay for a per-
son appointed pursuant to paragraph (1) shall not 
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exceed the maximum rate payable for GS–15 of the 
General Schedule under chapter 53 of title 5, United 
States Code. 
(3) CONSULTANTS.—The Secretary may retain, 
pursuant to section 1901 of title 41, United States 
Code, such consultants as the Secretary determines 
to be necessary to carry out this section and any 
functions of the Secretary under this section. 
(g) OUTREACH.—In carrying out this section, the 
Secretary shall— 
(1) provide assistance with the completion of 
applications for loans under this section; and 
(2) conduct outreach, including through con-
ferences and online programs, to disseminate infor-
mation about loans under this section to potential 
applicants. 
(h) REPORT.—Not later than 2 years after the date 
of enactment of this Act, and every 2 years thereafter, 
the Secretary shall submit to Congress a report on the 
status of projects supported by a loan under this section, 
including— 
(1) a list of projects for which a loan was pro-
vided under this section, including, with respect to 
each project— 
(A) the loan amount; and 
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(B) the construction status of the project; 
(2) the status of the loan repayment for each 
project, including future repayment projections; 
(3) data regarding the number of direct and in-
direct jobs retained, restored, or created by financed 
projects; 
(4) a projection of the number of new projects 
for which the Secretary expects to provide a loan 
under this section during the 2-year period begin-
ning on the date of the report, including the pro-
jected aggregate loan amount over that 2-year pe-
riod; 
(5) an evaluation of ongoing compliance with 
the assurances and commitments (and the accuracy 
of any predictions) made by applicants pursuant to 
paragraphs (2) and (3) of subsection (b); 
(6) the total number of applications received by 
the Secretary each year; and 
(7) any other metrics that the Secretary deter-
mines to be appropriate. 
(i) FUNDING.— 
(1) RESCISSION.—Of the unobligated balance of 
amounts made available by section 129 of division A 
of the Consolidated Security, Disaster Assistance, 
and Continuing Appropriations Act, 2009 (Public 
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