Job Creation through Energy Efficient Manufacturing Act
Bill: S.1322 | Sponsor: Sen. Merkley, Jeff (D-OR)
Policy area: Energy

Summary:
Job Creation through Energy Efficient Manufacturing Act
This bill requires the Department of Energy (DOE) to establish a Financing Energy Efficient Manufacturing Program that provides grants for energy efficiency improvement projects in the manufacturing sector.
The following types of entities are eligible for grants:
The entities that receive grants must then distribute subgrants to certain small- or medium-sized manufacturers (employing no more than 750 employees) located in the same states as the entities. Recipients of subgrants must carry out projects that (1) improve the energy efficiency of the manufacturers, and (2) develop technologies that reduce electricity or natural gas use by the manufacturers.
The bill establishes labor requirements for projects that receive grant funding under this bill. In addition, grant projects may only use iron and steel products that are produced in the United States, unless DOE grants a waiver of the requirement.

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.

    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 ``Job Creation through Energy 
Efficient Manufacturing Act''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Energy management plan.--The term ``energy management 
        plan'' means a plan established under section 3(c)(5).
            (2) Indian tribe.--The term ``Indian tribe'' has the 
        meaning given the term in section 4 of the Indian Self-
        Determination and Education Assistance Act (25 U.S.C. 5304).
            (3) Program.--The term ``program'' means the Financing 
        Energy Efficient Manufacturing Program 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) Project.--The term ``project'' means an energy 
        efficiency improvement project carried out by a small- or 
        medium-sized manufacturer using grant funds distributed by a 
        project manager.
            (6) Qualified entity.--The term ``qualified entity'' 
        means--
                    (A) a State energy office;
                    (B) an Indian tribe;
                    (C) a nonprofit organization that--
                            (i) is focused on providing energy 
                        efficiency or renewable energy services; and
                            (ii) receives funding from a State, Indian 
                        tribe, or utility;
                    (D) an electric cooperative group; and
                    (E) an entity with a public-private partnership 
                under the Hollings Manufacturing Extension Partnership 
                established under section 25(b) of the National 
                Institute of Standards and Technology Act (15 U.S.C. 
                278k(b)).
            (7) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.
            (8) Small- or medium-sized manufacturer.--The term ``small- 
        or medium-sized manufacturer'' 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 employees.

SEC. 3. FINANCING ENERGY EFFICIENT MANUFACTURING PROGRAM.

    (a) Establishment.--The Secretary shall establish a program, to be 
known as the ``Financing Energy Efficient Manufacturing Program'' to 
provide grants to qualified entities to fund energy efficiency 
improvement projects in the manufacturing sector.
    (b) Grant Applications; Selection of Grant Recipients.--
            (1) Grant applications.--
                    (A) In general.--Not later than 180 days after the 
                date of enactment of this Act, qualified entities 
                desiring a grant under subsection (a) shall submit to 
                the Secretary an application in such manner and 
                containing such information as the Secretary may 
                require, including a description of--
                            (i) how the qualified entity will work with 
                        small- and medium-sized manufacturers to assess 
                        the most promising opportunities for energy 
                        efficiency improvements;
                            (ii) how the qualified entity will work 
                        with small- and medium-sized manufacturers and, 
                        if appropriate, licensed engineers to establish 
                        an energy management plan for the small- or 
                        medium-sized manufacturer to carry out a 
                        project;
                            (iii) the methods and cost-sharing plans 
                        the qualified entity will use to distribute 
                        funds to small- and medium-sized manufacturers 
                        to subsidize the costs of carrying out a 
                        project;
                            (iv) the standards by which the qualified 
                        entity will set energy efficiency goals for a 
                        project that will result in meaningful 
                        reductions in electricity or natural gas use by 
                        the small- or medium-sized manufacturer 
                        carrying out the project;
                            (v) how the qualified entity will provide 
                        support to the small- or medium-sized 
                        manufacturer carrying out a project during the 
                        implementation of the energy management plan;
                            (vi)(I) any history of the qualified entity 
                        of working collaboratively with the regional 
                        technical assistance programs of the Department 
                        of Energy; and
                            (II) how the qualified entity plans to 
                        involve the regional technical assistance 
                        programs in the activities to be funded by a 
                        grant; and
                            (vii) how the qualified entity will collect 
                        measurements throughout the implementation of 
                        the energy management plan--
                                    (I) to demonstrate how energy 
                                efficiency improvements are being 
                                achieved; and
                                    (II) to maximize opportunities for 
                                project success.
                    (B) Partnerships.--Two or more qualified 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 Secretary shall--
                            (i) review the application;
                            (ii) provide the applicant with an 
                        opportunity to respond to any questions of 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 history 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 demonstrate--
                                    (I) effective methods for reducing 
                                barriers to entry that might otherwise 
                                prevent small- and medium-sized 
                                manufacturers from participating in the 
                                subgrant program under subsection (c);
                                    (II) flexibility in addressing the 
                                needs of different small- and medium-
                                sized manufacturers; and
                                    (III) a commitment to hiring for 
                                projects contractors that comply with 
                                the labor requirements described in 
                                subsection (d)(2).
    (c) Subgrants for Energy Efficiency Improvements.--
            (1) In general.--A qualified entity (including a 
        partnership of 1 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 
        program manager is located to carry out projects--
                    (A) to improve the energy efficiency of the small- 
                or medium-sized manufacturer; and
                    (B) to develop technologies to reduce electricity 
                or natural gas use by the small- or medium-sized 
                manufacturer.
            (2) Applications.--A small- or medium-sized manufacturer 
        desiring a subgrant under paragraph (1) shall submit to the 
        program manager an application at such time, in such manner, 
        and containing such information as the program manager may 
        require, including a proposal describing the project to be 
        carried out using the subgrant funds.
            (3) Priority.--In selecting small- or medium-sized 
        manufacturers for subgrants under this subsection, the program 
        manager shall give priority to small- or medium-sized 
        manufacturers that commit to hiring for projects contractors 
        that comply with the labor requirements described in subsection 
        (d)(2).
            (4) Eligibility requirements.--To be eligible to receive a 
        subgrant under paragraph (1), a small- or medium-sized 
        manufacturer shall be a private, nongovernmental entity.
            (5) Energy management plans.--Each small- or medium-sized 
        manufacturer receiving a subgrant under paragraph (1), in 
        consultation with the program manager and, if appropriate, 1 or 
        more licensed engineers, shall establish an energy management 
        plan for the small- or medium-sized manufacturer to carry out 
        the project.
            (6) Effect on title to property.--The receipt of Federal 
        funds under this subsection shall not prohibit an entity that 
        purchased equipment or other property using those funds from 
        owning sole, permanent title to the equipment or other 
        property.
    (d) Contractors.--
            (1) In general.--Program managers and small- or medium-
        sized manufacturers may hire, if necessary, contractors to 
        perform work relating to the installation, repair, or 
        maintenance of equipment used under a project.
            (2) Labor requirements.--In an application for a grant or 
        subgrant under this section, a program manager or a small- or 
        medium-sized manufacturer, respectively, may commit to hiring 
        contractors that represent to the best of the knowledge 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 
        rendered against the contractor for violations 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.);
                    (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 opportunity);
                    (L) Executive Order 13658 (79 Fed. Reg. 9851 
                (February 20, 2014)) (relating to establishing a 
                minimum wage for contractors); or
                    (M) equivalent State laws.
            (3) Additional labor requirements.--A program manager or 
        small- or medium-sized manufacturer receiving a grant or 
        subgrant, respectively, under this section that has committed 
        to complying with the labor requirements described in paragraph 
        (2)--
                    (A) shall provide each contractor an opportunity to 
                disclose any steps taken to correct a violation of, or 
                improve compliance with, a law or Executive order 
                described in any of subparagraphs (A) through (M) of 
                paragraph (2), including any agreements entered into 
                with an enforcement agency;
                    (B) shall give preference to contractors that have 
                the fewest number of violations (particularly serious, 
                repeated, willful, or pervasive violations) of the laws 
                and Executive orders described in subparagraphs (A) 
                through (M) of paragraph (2); and
                    (C) shall not hire contractors that fail to take 
                steps to correct violations of, or improve compliance 
                with, a law or Executive order described in any of 
                subparagraphs (A) through (M) of paragraph (2).
    (e) American Iron, Steel, and Manufactured Products.--
            (1) Definitions.--In this subsection:
                    (A) Iron or steel manufactured product.--The term 
                ``iron or steel manufactured product'' includes any 
                construction material or end product (as those terms 
                are defined in subpart 25.003 of the Federal 
                Acquisition Regulation) that does not otherwise qualify 
                as an iron or steel product, including--
                            (i) an electrical component;
                            (ii) a non-ferrous building material, 
                        including--
                                    (I) aluminum and polyvinylchloride;
                                    (II) glass;
                                    (III) fiber optics;
                                    (IV) plastic;
                                    (V) wood;
                                    (VI) masonry;
                                    (VII) rubber;
                                    (VIII) manufactured stone; and
                                    (IX) any other non-ferrous building 
                                materials; and
                            (iii) any unmanufactured construction 
                        material.
                    (B) Produced in the united states.--
                            (i) In general.--The term ``produced in the 
                        United States''--
                                    (I) with respect to an iron or 
                                steel product or an iron or steel 
                                manufactured product, means that all 
                                manufacturing processes for, and 
                                materials and components of, the iron 
                                or steel product or iron or steel 
                                manufactured product, from the initial 
                                melting stage through the application 
                                of coatings, occurred in the United 
                                States; and
                                    (II) with respect to an iron or 
                                steel manufactured product, means 
                                that--
                                            (aa) the iron or steel 
                                        manufactured product was 
                                        manufactured in the United 
                                        States; and
                                            (bb) the cost of the 
                                        components of the iron or steel 
                                        manufactured product that were 
                                        mined, produced, or 
                                        manufactured in the United 
                                        States is greater than 60 
                                        percent of the total cost of 
                                        the components of the iron or 
                                        steel manufactured product.
                            (ii) Exclusions.--The term ``produced in 
                        the United States'', with respect to an iron or 
                        steel product or an iron or steel manufactured 
                        product, does not include an iron or steel 
                        product or an iron or steel manufactured 
                        product that was manufactured--
                                    (I) abroad from semi-finished steel 
                                or iron from the United States; or
                                    (II) in the United States from 
                                semi-finished steel or iron of foreign 
                                origin.
            (2) Requirement.--Funds made available under the program 
        may not be used for a project unless all of the iron and steel 
        products and iron and steel manufactured products used in the 
        project are produced in the United States.
            (3) Waiver.--
                    (A) In general.--On request of the recipient of a 
                grant under the program, the Secretary may grant for 
                the project of the recipient of the 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 interest;
                            (ii) iron or steel products or iron or 
                        steel manufactured 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 
                        products or iron or steel manufactured products 
                        produced in the United States would increase 
                        the cost of the overall project by greater than 
                        25 percent.
                    (B) Public notice.--On receipt of a request for a 
                waiver under subparagraph (A), the Secretary shall--
                            (i) make available to the public, including 
                        by electronic means, including on the official 
                        public website of the Department 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 with respect to the request 
                        the finding described in subparagraph (A).
    (f) Reporting Requirements.--
            (1) In general.--Each program manager shall--
                    (A) determine what data shall be required--
                            (i) to be collected by or from each small- 
                        or medium-sized manufacturer receiving a 
                        subgrant under subsection (c); and
                            (ii) to be submitted to the program manager 
                        to permit analysis of the subgrant program 
                        under subsection (c); and
                    (B) develop metrics to determine the success of the 
                subgrant program under subsection (c).
            (2) Provision of data.--As a condition of receiving a 
        subgrant under subsection (c), a small- or medium-sized 
        manufacturer shall provide to the program 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 appropriate, shall provide 
        for the protection of proprietary information and intellectual 
        property rights.
    (g) Funding.--
            (1) In general.--Out of amounts made available to the 
        Secretary and not otherwise obligated, the Secretary shall use 
        to carry out this section not more than $600,000,000.
            (2) Requirements for program managers.--A program manager 
        shall use not greater than 7 percent of the grant funds 
        received by the program manager, at the discretion of the 
        program manager--
                    (A) to hire and train staff to assist the program 
                manager in administering the subgrant program of the 
                program manager; and
                    (B) to market the subgrant program to small- and 
                medium-sized manufacturers.
            (3) Management and oversight.--The Secretary may use not 
        greater than 0.25 percent of the funds made available under 
        paragraph (1) to carry out subsection (e).
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