Battery Material Processing and Component Manufacturing Act of 2021
Bill: H.R.4864 | Sponsor: Rep. Doyle, Michael F. (D-PA)
Policy area: Energy

Summary:
Battery Material Processing and Component Manufacturing Act of 2021
This bill requires the Department of Energy to establish grant programs to support, enhance, and sustain a domestic supply chain for batteries, including grants to facilities for processing, manufacturing, and recycling batteries.

To direct the Secretary of Energy to establish grant programs focused 
on battery material processing, manufacturing, and recycling programs, 
                        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 ``Battery Material Processing and 
Component Manufacturing Act of 2021''.

SEC. 2. BATTERY MATERIAL PROCESSING GRANTS; BATTERY MANUFACTURING AND 
              RECYCLING GRANTS.

    (a) Definitions.--In this section:
            (1) Advanced battery.--The term ``advanced battery'' means 
        a battery that consists of a battery cell that can be 
        integrated into a module, pack, or system to be used in energy 
        storage applications, including electric vehicles and the 
        electric grid.
            (2) Advanced battery component.--
                    (A) In general.--The term ``advanced battery 
                component'' means a component of an advanced battery.
                    (B) Inclusions.--The term ``advanced battery 
                component'' includes materials, enhancements, 
                enclosures, anodes, cathodes, electrolytes, cells, and 
                other associated technologies that comprise an advanced 
                battery.
            (3) Battery material.--The term ``battery material'' means 
        the raw and processed form of a mineral, metal, chemical, or 
        other material used in an advanced battery component.
            (4) Eligible entity.--The term ``eligible entity'' means an 
        entity described in any of paragraphs (1) through (5) of 
        section 989(b) of the Energy Policy Act of 2005 (42 U.S.C. 
        16353(b)).
            (5) Manufacturing.--The term ``manufacturing'', with 
        respect to an advanced battery and an advanced battery 
        component, means the industrial and chemical steps taken to 
        produce that advanced battery or advanced battery component, 
        respectively.
            (6) Processing.--The term ``processing'', with respect to 
        battery material, means the refining of materials, including 
        the treating, baking, and coating processes used to convert raw 
        products into constituent materials employed directly in 
        advanced battery manufacturing.
            (7) Recycling.--The term ``recycling'' means the recovery 
        of materials from advanced batteries to be reused in similar 
        applications, including the extracting, processing, and 
        recoating of battery materials and advanced battery components.
    (b) Battery Material Processing Grants.--
            (1) In general.--Not later than 180 days after the date of 
        enactment of this Act, the Secretary shall establish within the 
        Office of Fossil Energy a program, to be known as the ``Battery 
        Material Processing Grant Program'' (referred to in this 
        subsection as the ``program''), under which the Secretary shall 
        award grants in accordance with this subsection.
            (2) Purposes.--The purposes of the program are--
                    (A) to ensure that the United States has a viable 
                battery materials processing industry to supply the 
                North American battery supply chain;
                    (B) to expand the capabilities of the United States 
                in advanced battery manufacturing;
                    (C) to enhance national security by reducing the 
                reliance of the United States on foreign competitors 
                for critical materials and technologies; and
                    (D) to enhance the domestic processing capacity of 
                minerals necessary for battery materials and advanced 
                batteries.
            (3) Grants.--
                    (A) In general.--Under the program, the Secretary 
                shall award grants to eligible entities--
                            (i) to carry out 1 or more demonstration 
                        projects in the United States for the 
                        processing of battery materials;
                            (ii) to construct 1 or more new commercial-
                        scale battery material processing facilities in 
                        the United States; and
                            (iii) to retool, retrofit, or expand 1 or 
                        more existing battery material processing 
                        facilities located in the United States and 
                        determined qualified by the Secretary.
                    (B) Amount limitation.--The amount of a grant 
                awarded under the program shall be not less than--
                            (i) $50,000,000 for an eligible entity 
                        carrying out 1 or more projects described in 
                        subparagraph (A)(i);
                            (ii) $100,000,000 for an eligible entity 
                        carrying out 1 or more projects described in 
                        subparagraph (A)(ii); and
                            (iii) $50,000,000 for an eligible entity 
                        carrying out 1 or more projects described in 
                        subparagraph (A)(iii).
                    (C) Priority; consideration.--In awarding grants to 
                eligible entities under the program, the Secretary 
                shall--
                            (i) give priority to an eligible entity 
                        that--
                                    (I) is located and operates in the 
                                United States;
                                    (II) is owned by a United States 
                                entity;
                                    (III) deploys North American-owned 
                                intellectual property and content;
                                    (IV) represents consortia or 
                                industry partnerships; and
                                    (V) will not use battery material 
                                supplied by or originating from a 
                                foreign entity of concern; and
                            (ii) take into consideration whether a 
                        project--
                                    (I) provides workforce 
                                opportunities in low- and moderate-
                                income communities;
                                    (II) encourages partnership with 
                                universities and laboratories to spur 
                                innovation and drive down costs;
                                    (III) partners with Indian Tribes; 
                                and
                                    (IV) takes into account--
                                            (aa) greenhouse gas 
                                        emissions reductions and energy 
                                        efficient battery material 
                                        processing opportunities 
                                        throughout the manufacturing 
                                        process; and
                                            (bb) supply chain 
                                        logistics.
            (4) Wage rate requirements.--
                    (A) Davis-bacon.--Any laborer or mechanic employed 
                by any contractor or subcontractor in the performance 
                of work on a project funded by a grant awarded under 
                this subsection shall be paid wages at rates not less 
                than those prevailing on similar projects in the 
                locality as determined by the Secretary of Labor under 
                subchapter IV of chapter 31 of title 40, United States 
                Code (commonly referred to as the ``Davis-Bacon Act'').
                    (B) Authority.--With respect to the labor standards 
                specified in subparagraph (A), the Secretary of Labor 
                shall have the authority and functions set forth in 
                Reorganization Plan Numbered 14 of 1950 (64 Stat. 1267; 
                5 U.S.C. App.) and section 3145 of title 40, United 
                States Code.
            (5) Authorization of appropriations.--There is authorized 
        to be appropriated to the Secretary to carry out the program 
        $3,500,000,000 for the period of fiscal years 2022 through 
        2026, to remain available until expended.
    (c) Battery Manufacturing and Recycling Grants.--
            (1) In general.--Not later than 180 days after the date of 
        enactment of this Act, the Secretary shall establish within the 
        Office of Energy Efficiency and Renewable Energy a battery 
        manufacturing and recycling grant program (referred to in this 
        subsection as the ``program'').
            (2) Purpose.--The purpose of the program is to ensure that 
        the United States has a viable domestic manufacturing and 
        recycling capability to support and sustain a North American 
        battery supply chain.
            (3) Grants.--
                    (A) In general.--Under the program, the Secretary 
                shall award grants to eligible entities--
                            (i) to carry out 1 or more demonstration 
                        projects for advanced battery component 
                        manufacturing, advanced battery manufacturing, 
                        and recycling;
                            (ii) to construct 1 or more new commercial-
                        scale advanced battery component manufacturing, 
                        advanced battery manufacturing, or recycling 
                        facilities in the United States; and
                            (iii) to retool, retrofit, or expand 1 or 
                        more existing facilities located in the United 
                        States and determined qualified by the 
                        Secretary for advanced battery component 
                        manufacturing, advanced battery manufacturing, 
                        and recycling.
                    (B) Amount limitation.--The amount of a grant 
                awarded under the program shall be not less than--
                            (i) $50,000,000 for an eligible entity 
                        carrying out 1 or more projects described in 
                        subparagraph (A)(i);
                            (ii) $100,000,000 for an eligible entity 
                        carrying out 1 or more projects described in 
                        subparagraph (A)(ii); and
                            (iii) $50,000,000 for an eligible entity 
                        carrying out 1 or more projects described in 
                        subparagraph (A)(iii).
                    (C) Priority; consideration.--In awarding grants to 
                eligible entities under the program, the Secretary 
                shall--
                            (i) give priority to an eligible entity 
                        that--
                                    (I) is located and operates in the 
                                United States;
                                    (II) is owned by a United States 
                                entity;
                                    (III) deploys North American-owned 
                                intellectual property and content;
                                    (IV) represents consortia or 
                                industry partnerships; and
                                    (V)(aa) if the eligible entity will 
                                use the grant for advanced battery 
                                component manufacturing, will not use 
                                battery material supplied by or 
                                originating from a foreign entity of 
                                concern; or
                                    (bb) if the eligible entity will 
                                use the grant for battery recycling, 
                                will not export recovered critical 
                                materials to a foreign entity of 
                                concern; and
                            (ii) take into consideration whether a 
                        project--
                                    (I) provides workforce 
                                opportunities in low- and moderate-
                                income or rural communities;
                                    (II) provides workforce 
                                opportunities in communities that have 
                                lost jobs due to the displacements of 
                                fossil energy jobs;
                                    (III) encourages partnership with 
                                universities and laboratories to spur 
                                innovation and drive down costs;
                                    (IV) partners with Indian Tribes;
                                    (V) takes into account--
                                            (aa) greenhouse gas 
                                        emissions reductions and energy 
                                        efficient battery material 
                                        processing opportunities 
                                        throughout the manufacturing 
                                        process; and
                                            (bb) supply chain 
                                        logistics; and
                                    (VI) utilizes feedstock produced in 
                                the United States.
            (4) Wage rate requirements.--
                    (A) Davis-bacon.--Any laborer or mechanic employed 
                by any contractor or subcontractor in the performance 
                of work on a project funded by a grant awarded under 
                this subsection shall be paid wages at rates not less 
                than those prevailing on similar projects in the 
                locality as determined by the Secretary of Labor under 
                subchapter IV of chapter 31 of title 40, United States 
                Code (commonly referred to as the ``Davis-Bacon Act'').
                    (B) Authority.--With respect to the labor standards 
                specified in subparagraph (A), the Secretary of Labor 
                shall have the authority and functions set forth in 
                Reorganization Plan Numbered 14 of 1950 (64 Stat. 1267; 
                5 U.S.C. App.) and section 3145 of title 40, United 
                States Code.
            (5) Authorization of appropriations.--There is authorized 
        to be appropriated to the Secretary to carry out the program 
        $6,500,000,000 for the period of fiscal years 2022 through 
        2026, to remain available until expended.
    (d) Reporting Requirements.--Not later than 1 year after the date 
of enactment of this Act, and annually thereafter, the Secretary shall 
submit to Congress a report on the grant programs established under 
subsections (b) and (c), including, with respect to each grant program, 
a description of--
            (1) the number of grant applications received;
            (2) the number of grants awarded and the amount of each 
        award;
            (3) the purpose and status of each project carried out 
        using a grant; and
            (4) any other information the Secretary determines 
        necessary.
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