First Three Act of 2022
Bill: S.3987 | Sponsor: Sen. Heinrich, Martin (D-NM)
Policy area: Energy

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.

To require the Secretary of Energy to provide grants and loan 
   guarantees for commercial-scale implementation of transformative 
            industrial technologies, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``First Three Act of 2022''.

SEC. 2. COMMERCIAL-SCALE IMPLEMENTATION OF TRANSFORMATIVE INDUSTRIAL 
              TECHNOLOGIES.

    (a) Definitions.--In this section:
            (1) Eligible entity.--The term ``eligible entity'' means 
        any of the following entities:
                    (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'' means 
        the implementation of an eligible technology at an industrial 
        plant in a State.
            (3) Eligible project costs.--The term ``eligible project 
        costs'' means any capital, installation, engineering, 
        construction, and permitting costs related to carrying out an 
        eligible project.
            (4) Eligible technology.--The term ``eligible technology'' 
        means any technology that, as determined by the Secretary--
                    (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'' means the program 
        established under subsection (b).
            (6) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.
            (7) State.--The term ``State'' means--
                    (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.
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