I 
115TH CONGRESS 
2D SESSION 
H. R. 5042 
To establish the Financing Energy Efficient Manufacturing Program at the 
Department of Energy to provide financial assistance to promote energy 
efficiency and onsite renewable technologies in manufacturing facilities, 
and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 15, 2018 
Mr. CARTWRIGHT (for himself, Mr. TONKO, Ms. WASSERMAN SCHULTZ, Ms. 
ESHOO, Mr. MCGOVERN, Mr. POCAN, Ms. WILSON of Florida, Ms. NOR-
TON, Ms. KUSTER of New Hampshire, Mr. KHANNA, Mr. QUIGLEY, Mr. 
RASKIN, Ms. LOFGREN, Ms. CASTOR of Florida, Mr. CONNOLLY, Ms. 
LEE, Mr. WELCH, Mr. GRIJALVA, Mr. HUFFMAN, Mr. CROWLEY, Mr. 
JOHNSON of Georgia, Mr. WALZ, and Ms. HANABUSA) introduced the fol-
lowing bill; which was referred to the Committee on Science, Space, and 
Technology, and in addition to the Committee on Energy and Commerce, 
for a period to be subsequently determined by the Speaker, in each case 
for consideration of such provisions as fall within the jurisdiction of the 
committee concerned 
A BILL 
To establish the Financing Energy Efficient Manufacturing 
Program at the Department of Energy to provide finan-
cial assistance to promote energy efficiency and onsite 
renewable technologies in manufacturing facilities, and 
for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
VerDate Sep 11 2014 
01:04 Feb 23, 2018
Jkt 079200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H5042.IH
H5042
SSpencer on DSKBBXCHB2PROD with BILLS
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Job Creation through 
Energy Efficient Manufacturing Act’’. 
SEC. 2. DEFINITIONS. 
In this Act: 
(1) 
ENERGY
EFFICIENCY
IMPROVEMENT 
PROJECT.—The term ‘‘energy efficiency improve-
ment project’’ means a project to— 
(A) improve the energy efficiency of a 
small or medium-sized manufacturer; and 
(B) develop technologies to reduce elec-
tricity or natural gas use by a small or medium- 
sized manufacturer. 
(2) ENERGY
MANAGEMENT
PLAN.—The term 
‘‘energy management plan’’ means a plan estab-
lished under section 3(c)(5) for a small or medium- 
sized manufacturer to carry out an energy efficiency 
improvement project. 
(3) PROGRAM.—The term ‘‘program’’ means 
the Financing Energy Efficient Manufacturing Pro-
gram established under section 3(a). 
(4) PROGRAM MANAGER.—The term ‘‘program 
manager’’ means a qualified entity that receives a 
grant under section 3(a). 
(5) QUALIFIED ENTITY.—The term ‘‘qualified 
entity’’ means— 
VerDate Sep 11 2014 
01:04 Feb 23, 2018
Jkt 079200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H5042.IH
H5042
SSpencer on DSKBBXCHB2PROD with BILLS
(A) a State energy office; 
(B) a nonprofit organization that— 
(i) is focused on providing energy effi-
ciency or renewable energy services; and 
(ii) receives funding from a State, 
Tribe, or electric utility (as defined in sec-
tion 3 of the Federal Power Act (16 
U.S.C. 796)); 
(C) an electric cooperative, as defined in 
section 3 of the Federal Power Act (16 U.S.C. 
796); or 
(D) a manufacturing extension center cre-
ated pursuant to section 25(b) of the National 
Institute of Standards and Technology Act (15 
U.S.C. 278k(b)). 
(6) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Energy. 
(7) 
SMALL
OR
MEDIUM-SIZED
MANUFAC-
TURER.—The term ‘‘small or medium-sized manu-
facturer’’ means a manufacturing establishment— 
(A) classified in Sector 31, 32, or 33 in the 
North American Industry Classification System; 
and 
(B) that employs not more than 750 em-
ployees. 
VerDate Sep 11 2014 
01:04 Feb 23, 2018
Jkt 079200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H5042.IH
H5042
SSpencer on DSKBBXCHB2PROD with BILLS
SEC. 3. FINANCING ENERGY EFFICIENT MANUFACTURING 
PROGRAM. 
(a) ESTABLISHMENT.—The Secretary shall establish 
a program, to be known as the ‘‘Financing Energy Effi-
cient Manufacturing Program’’, to provide grants to quali-
fied entities to fund energy efficiency improvement 
projects to be carried out by small and medium-sized man-
ufacturers. 
(b) GRANT APPLICATIONS; SELECTION OF GRANT 
RECIPIENTS.— 
(1) GRANT APPLICATIONS.— 
(A) IN GENERAL.—Qualified entities desir-
ing a grant under subsection (a) shall submit to 
the Secretary an application in such manner 
and containing such information as the Sec-
retary may require, including a description of— 
(i) how the qualified entity will work 
with small and medium-sized manufactur-
ers to assess the most promising opportu-
nities for energy efficiency improvements; 
(ii) how the qualified entity will work 
with small and medium-sized manufactur-
ers and, if appropriate, licensed engineers 
to establish energy management plans; 
(iii) the methods and cost-sharing 
plans the qualified entity will use to dis-
VerDate Sep 11 2014 
01:04 Feb 23, 2018
Jkt 079200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H5042.IH
H5042
SSpencer on DSKBBXCHB2PROD with BILLS
jobs while carrying out an energy efficiency 
improvement project; and 
(viii) how the qualified entity will col-
lect measurements throughout the imple-
mentation of the applicable energy man-
agement plan— 
(I) to demonstrate how energy ef-
ficiency 
improvements 
are 
being 
achieved; and 
(II) to maximize opportunities 
for the success of the energy efficiency 
improvement project. 
(B) PARTNERSHIPS.—Two or more quali-
fied entities may form a partnership to apply, 
and act as program manager, for a grant under 
this subsection. 
(2) SELECTION OF GRANT RECIPIENTS.— 
(A) IN GENERAL.—Not later than 90 days 
after the date on which the Secretary receives 
an application under paragraph (1), the Sec-
retary shall— 
(i) review the application; 
(ii) provide the applicant with an op-
portunity to respond to any questions of 
VerDate Sep 11 2014 
01:04 Feb 23, 2018
Jkt 079200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H5042.IH
H5042
SSpencer on DSKBBXCHB2PROD with BILLS
the Secretary regarding the application; 
and 
(iii) select or deny the applicant based 
on the criteria described in subparagraph 
(B). 
(B) SELECTION CRITERIA.— 
(i) IN GENERAL.—The Secretary shall 
select for grants under this subsection 
qualified entities that demonstrate a his-
tory of successfully implementing energy 
efficiency improvement programs for small 
and medium-sized manufacturers. 
(ii) PRIORITY.—In making selections 
under clause (i), the Secretary shall give 
priority to qualified entities that dem-
onstrate— 
(I) effective methods for reducing 
barriers to entry that might otherwise 
prevent small and medium-sized man-
ufacturers from receiving a subgrant 
under subsection (c); 
(II) flexibility in addressing the 
needs of different small and medium- 
sized manufacturers; 
VerDate Sep 11 2014 
01:04 Feb 23, 2018
Jkt 079200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H5042.IH
H5042
SSpencer on DSKBBXCHB2PROD with BILLS
(III) a history of hiring contrac-
tors that comply with the labor re-
quirements 
described 
in 
subpara-
graphs (A) through (M) of subsection 
(d)(1); and 
(IV) a commitment to assisting 
small or medium-sized manufacturers 
create new jobs or retain existing jobs 
while carrying out an energy efficiency 
improvement project. 
(c) SUBGRANTS FOR ENERGY EFFICIENCY IMPROVE-
MENTS.— 
(1) IN GENERAL.—A qualified entity (including 
a partnership of two or more qualified entities under 
subsection (b)(1)(B)) that receives a grant under 
subsection (a) shall act as a program manager to 
distribute subgrants to small and medium-sized 
manufacturers located in the State in which the pro-
gram manager is located to carry out energy effi-
ciency improvement projects. 
(2) APPLICATIONS.—A small or medium-sized 
manufacturer desiring a subgrant under paragraph 
(1) shall submit to the program manager an applica-
tion at such time, in such manner, and containing 
such information as the program manager may re-
VerDate Sep 11 2014 
01:04 Feb 23, 2018
Jkt 079200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H5042.IH
H5042
SSpencer on DSKBBXCHB2PROD with BILLS
quire, including a proposal describing the energy ef-
ficiency improvement project to be carried out using 
the subgrant funds. 
(3) PRIORITY.—In selecting small or medium- 
sized manufacturers for subgrants under this sub-
section, the program manager shall give priority to 
small or medium-sized manufacturers that dem-
onstrate— 
(A) a history of hiring contractors that 
comply with the labor requirements described in 
subparagraphs (A) through (M) of subsection 
(d)(1); and 
(B) a commitment to creating new jobs or 
retaining existing jobs. 
(4) ELIGIBILITY REQUIREMENTS.—To be eligi-
ble to receive a subgrant under paragraph (1), a 
small or medium-sized manufacturer shall be a pri-
vate, nongovernmental entity. 
(5) ENERGY MANAGEMENT PLANS.—Each small 
or medium-sized manufacturer receiving a subgrant 
under paragraph (1), in consultation with the pro-
gram manager and, if appropriate, one or more li-
censed engineers, shall establish a plan for the small 
or medium-sized manufacturer to carry out the en-
ergy efficiency improvement project. 
VerDate Sep 11 2014 
01:04 Feb 23, 2018
Jkt 079200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H5042.IH
H5042
SSpencer on DSKBBXCHB2PROD with BILLS
(d) CONTRACTORS.— 
(1) LABOR REQUIREMENTS REPORTING.—In an 
application for a grant or subgrant under this sec-
tion, a program manager or a small or medium-sized 
manufacturer, respectively, shall commit to hiring 
contractors that represent to the best of the knowl-
edge and belief of the contractor, whether, during 
the 3-year period preceding the date of application, 
any administrative merits determination, arbitral 
award or decision, or civil judgment (as defined in 
guidance issued by the Secretary of Labor) was ren-
dered against the contractor for a violation of— 
(A) the National Labor Relations Act (29 
U.S.C. 151 et seq.); 
(B) the Fair Labor Standards Act of 1938 
(29 U.S.C. 201 et seq.); 
(C) the Age Discrimination in Employment 
Act of 1967 (29 U.S.C. 621 et seq.); 
(D) the Occupational Safety and Health 
Act of 1970 (29 U.S.C. 651 et seq.); 
(E) the Migrant and Seasonal Agricultural 
Worker Protection Act (29 U.S.C. 1801 et 
seq.); 
(F) the Family and Medical Leave Act of 
1993 (29 U.S.C. 2611 et seq.); 
VerDate Sep 11 2014 
01:04 Feb 23, 2018
Jkt 079200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H5042.IH
H5042
SSpencer on DSKBBXCHB2PROD with BILLS
(G) subchapter IV of chapter 31 of part A 
of subtitle II of title 40, United States Code 
(commonly referred to as the ‘‘Davis-Bacon 
Act’’); 
(H) chapter 67 of title 41, United States 
Code; 
(I) title VII of the Civil Rights Act of 1964 
(42 U.S.C. 2000e et seq.); 
(J) the Americans with Disabilities Act of 
1990 (42 U.S.C. 12101 et seq.); 
(K) Executive Order 11246 (42 U.S.C. 
2000e note) (relating to equal employment op-
portunity); 
(L) Executive Order 13658 (79 Fed. Reg. 
9851 (February 20, 2014)) (relating to estab-
lishing a minimum wage for contractors); or 
(M) an applicable State law that provides 
similar protections to employees. 
(2) ADDITIONAL
LABOR
REQUIREMENTS.—A 
program manager or small or medium-sized manu-
facturer receiving a grant or subgrant, respectively, 
under this section shall, with respect to activities 
carried out using such funds— 
(A) provide each contractor an opportunity 
to disclose any steps taken to correct a violation 
VerDate Sep 11 2014 
01:04 Feb 23, 2018
Jkt 079200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\H5042.IH
H5042
SSpencer on DSKBBXCHB2PROD with BILLS
of, or improve compliance with, a law or Execu-
tive order described in any of subparagraphs 
(A) through (M) of paragraph (1), including 
any agreements entered into with an enforce-
ment agency; 
(B) give preference to contractors that 
have the fewest number of violations (particu-
larly serious, repeated, willful, or pervasive vio-
lations) of the laws and Executive orders de-
scribed in subparagraphs (A) through (M) of 
paragraph (1); and 
(C) not hire contractors that fail to take 
steps to correct violations of, or improve compli-
ance with, a law or Executive order described in 
any of subparagraphs (A) through (M) of para-
graph (1). 
(e) AMERICAN IRON, STEEL, AND MANUFACTURED 
PRODUCTS.— 
(1) DEFINITIONS.—In this subsection: 
(A) MANUFACTURED PRODUCT.—The term 
‘‘manufactured product’’ includes any construc-
tion material or end product (as those terms 
are defined in subpart 25.003 of the Federal 
Acquisition Regulation) that does not wholly or 
VerDate Sep 11 2014 
01:04 Feb 23, 2018
Jkt 079200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6201
E:\BILLS\H5042.IH
H5042
SSpencer on DSKBBXCHB2PROD with BILLS
predominantly consist of iron or steel, includ-
ing— 
(i) an electrical component; 
(ii) a non-ferrous building material, 
including— 
(I) aluminum and polyvinylchlo-
ride; 
(II) glass; 
(III) fiber optics; 
(IV) plastic; 
(V) wood; 
(VI) masonry; 
(VII) rubber; 
(VIII) manufactured stone; and 
(IX) any other non-ferrous build-
ing materials; and 
(iii) any unmanufactured construction 
material. 
(B) PRODUCED IN THE UNITED STATES.— 
(i) IN
GENERAL.—The term ‘‘pro-
duced in the United States’’— 
(I) with respect to an iron or 
steel product, means that all manufac-
turing processes for such iron or steel 
products, from the initial melting 
VerDate Sep 11 2014 
21:51 Feb 26, 2018
Jkt 079200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6201
E:\BILLS\H5042.IH
H5042
SSpencer on DSKBBXCHB2PROD with BILLS
stage through the application of coat-
ings, occurred in the United States; 
and 
(II) with respect to a manufac-
tured product, means that the manu-
factured product was manufactured in 
the United States and the cost of the 
components 
of 
the 
manufactured 
product that were mined, produced, or 
manufactured in the United States ex-
ceeds 60 percent of the cost of all the 
components 
of 
the 
manufactured 
product. 
(ii) EXCLUSIONS.—The term ‘‘pro-
duced in the United States’’, with respect 
to an iron or steel product, does not in-
clude an iron or steel product that was 
manufactured— 
(I) abroad from semi-finished 
iron or steel from the United States; 
or 
(II) in the United States from 
semi-finished iron or steel of foreign 
origin. 
VerDate Sep 11 2014 
01:04 Feb 23, 2018
Jkt 079200
PO 00000
Frm 00014
Fmt 6652
Sfmt 6201
E:\BILLS\H5042.IH
H5042
SSpencer on DSKBBXCHB2PROD with BILLS
(2) REQUIREMENT.—Funds made available 
under the program may not be used for an energy 
efficiency improvement project unless all of the iron 
or steel products and manufactured products used in 
the project are produced in the United States. 
(3) WAIVER.— 
(A) IN GENERAL.—On request of the re-
cipient of a grant under the program, the Sec-
retary may grant a waiver of the requirement 
described in paragraph (2) if the Secretary 
finds that— 
(i) the application of paragraph (2) 
would be inconsistent with the public inter-
est; 
(ii) iron or steel products, or manu-
factured products, are not produced in the 
United States— 
(I) in sufficient and reasonably 
available quantities; or 
(II) of a satisfactory quality; or 
(iii) the inclusion of iron or steel prod-
ucts, or manufactured products, produced 
in the United States would increase the 
overall cost of the project by more than 25 
percent. 
VerDate Sep 11 2014 
01:04 Feb 23, 2018
Jkt 079200
PO 00000
Frm 00015
Fmt 6652
Sfmt 6201
E:\BILLS\H5042.IH
H5042
SSpencer on DSKBBXCHB2PROD with BILLS
(B) PUBLIC NOTICE.—On receipt of a re-
quest for a waiver under subparagraph (A), the 
Secretary shall— 
(i) make available to the public, in-
cluding by electronic means, including on 
the official public website of the Depart-
ment of Energy, on an informal basis, a 
copy of the request and all information 
available to the Secretary relating to the 
request; and 
(ii) provide for informal public input 
on the request for a period of not fewer 
than 15 days before making the finding de-
scribed in subparagraph (A). 
(f) REPORTING REQUIREMENTS.— 
(1) DATA COLLECTION.—Each program man-
ager shall— 
(A) determine what data shall be required 
to be collected from each small or medium- 
sized manufacturer receiving a subgrant under 
subsection (c) and submitted to the program 
manager in order to— 
(i) permit analysis of the quantity and 
quality of jobs created or retained by each 
small or medium-sized manufacturer re-
VerDate Sep 11 2014 
01:04 Feb 23, 2018
Jkt 079200
PO 00000
Frm 00016
Fmt 6652
Sfmt 6201
E:\BILLS\H5042.IH
H5042
SSpencer on DSKBBXCHB2PROD with BILLS
ceiving a subgrant under subsection (c); 
and 
(ii) permit analysis of the success of 
energy efficiency improvement projects the 
program manager oversees; and 
(B) develop metrics to determine the suc-
cess of energy efficiency improvement projects 
the program manager oversees. 
(2) PROVISION OF DATA.—As a condition of re-
ceiving a subgrant under subsection (c), a small or 
medium-sized manufacturer shall provide to the pro-
gram manager relevant data, as determined by the 
program manager under paragraph (1)(A). 
(3) PROPRIETARY INFORMATION.—In carrying 
out this subsection, each program manager, as ap-
propriate, shall provide for the protection of propri-
etary information and intellectual property rights. 
(g) FUNDING.— 
(1) IN GENERAL.—Out of amounts made avail-
able to the Secretary and not otherwise obligated, 
the Secretary shall use not more than $600,000,000 
to carry out this section. 
(2) 
REQUIREMENTS
FOR
PROGRAM
MAN-
AGERS.—A program manager may use not more 
VerDate Sep 11 2014 
01:04 Feb 23, 2018
Jkt 079200
PO 00000
Frm 00017
Fmt 6652
Sfmt 6201
E:\BILLS\H5042.IH
H5042
SSpencer on DSKBBXCHB2PROD with BILLS
than 7 percent of the grant funds received by the 
program manager under this section— 
(A) to hire and train staff to assist the 
program manager in administering energy effi-
ciency improvement projects the program man-
ager oversees; and 
(B) to market the availability of subgrants 
to small and medium-sized manufacturers. 
(3) MANAGEMENT AND OVERSIGHT.—The Sec-
retary may use not greater than 0.25 percent of the 
funds made available to carry out this section for 
management and oversight of the requirements of 
subsection (e). 
Æ 
VerDate Sep 11 2014 
01:04 Feb 23, 2018
Jkt 079200
PO 00000
Frm 00018
Fmt 6652
Sfmt 6301
E:\BILLS\H5042.IH
H5042
SSpencer on DSKBBXCHB2PROD with BILLS