Manufacturing Clean Energy and Energy Efficiency Act of 2021
Bill: S.1956 | Sponsor: Sen. Manchin, Joe, III (D-WV)
Policy area: Energy

Summary:
Manufacturing Clean Energy and Energy Efficiency Act of 2021
This bill requires the Department of Energy (DOE) to establish a program within the Office of Energy Efficiency and Renewable Energy that provides grants to small- or medium-sized manufacturers for projects that will (1) improve their energy efficiency, material efficiency, cybersecurity, or productivity; or (2) reduce their waste production, greenhouse gas emissions, or nongreenhouse gas pollution.
In order to be eligible for grants, manufacturers must have completed energy assessments from Industrial Assessment Centers funded by DOE or third-party assessors that provide equivalent assessments. Only projects that have been recommended in energy assessments are eligible for grants.
The bill also authorizes Industrial Assessment Centers to provide technical assistance to small- and medium-sized manufacturers that have completed energy assessments to upgrade, retrofit, or replace systems or infrastructure.

To require the Secretary of Energy to establish a manufacturing clean 
  energy and energy efficiency grant program, 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 ``Manufacturing Clean Energy and 
Energy Efficiency Act of 2021''.

SEC. 2. MANUFACTURING CLEAN ENERGY AND ENERGY EFFICIENCY GRANT PROGRAM.

    (a) Definitions.--In this section:
            (1) Covered project.--The term ``covered project'' means a 
        project that--
                    (A) has been recommended in an energy assessment 
                described in paragraph (2)(A) conducted for an eligible 
                entity; and
                    (B) with respect to the plant site of that eligible 
                entity--
                            (i) improves--
                                    (I) energy efficiency;
                                    (II) material efficiency;
                                    (III) cybersecurity; or
                                    (IV) productivity; or
                            (ii) reduces--
                                    (I) waste production;
                                    (II) greenhouse gas emissions; or
                                    (III) nongreenhouse gas pollution.
            (2) Eligible entity.--The term ``eligible entity'' means a 
        small- or medium-sized manufacturer that has had an energy 
        assessment completed--
                    (A) by--
                            (i) an Industrial Assessment Center; or
                            (ii) a third party assessor that provides 
                        an assessment equivalent to that of an 
                        Industrial Assessment Center, as determined by 
                        the Secretary; and
                    (B) in the 5-year period preceding the date on 
                which the small- or medium-sized manufacturer submits 
                an application under subsection (c).
            (3) Industrial assessment center.--The term ``Industrial 
        Assessment Center'' means a center located at an institution of 
        higher education that--
                    (A) receives funding from the Department of Energy;
                    (B) provides an in-depth assessment of small- or 
                medium-sized manufacturers to evaluate the facilities, 
                services, and manufacturing operations of the plant 
                sites of those manufacturers; and
                    (C) as a result of the assessment described in 
                subparagraph (B), identifies opportunities for 
                potential savings from, with respect to those plant 
                sites--
                            (i) energy efficiency improvements;
                            (ii) waste minimization;
                            (iii) pollution prevention;
                            (iv) cybersecurity improvements; and
                            (v) productivity improvement.
            (4) Institution of higher education.--The term 
        ``institution of higher education'' has the meaning given the 
        term in section 101(a) of the Higher Education Act of 1965 (20 
        U.S.C. 1001(a)).
            (5) Program.--The term ``program'' means the program 
        established under subsection (b).
            (6) Small- or medium-sized manufacturer.--The term ``small- 
        or medium-sized manufacturer'' means a manufacturing firm--
                    (A) the gross annual sales of which are less than 
                $100,000,000;
                    (B) that has fewer than 500 employees at the plant 
                site of the manufacturing firm; and
                    (C) the annual energy bills of which total more 
                than $100,000 but less than $2,500,000.
    (b) Establishment.--The Secretary shall establish a program within 
the Office of Energy Efficiency and Renewable Energy under which the 
Secretary shall provide grants to eligible entities to implement 
covered projects.
    (c) Application.--An eligible entity seeking a grant under the 
program shall submit to the Secretary an application at such time, in 
such manner, and containing such information as the Secretary may 
require, including a demonstration of need for financial assistance to 
implement the proposed covered project.
    (d) Priority.--In awarding grants under the program, the Secretary 
shall give priority to eligible entities that--
            (1) have had an energy assessment completed by an 
        Industrial Assessment Center; and
            (2) propose to carry out a covered project with a greater 
        potential for--
                    (A) energy efficiency gains; or
                    (B) greenhouse gas emissions reductions.
    (e) Grant Amount.--
            (1) Maximum amount.--The amount of a grant provided to an 
        eligible entity under the program shall not exceed $300,000.
            (2) Federal share.--A grant awarded under the program for a 
        covered project shall be in an amount that is not more than 50 
        percent of the cost of the covered project.
            (3) Supplement.--A grant received by an eligible entity 
        under the program shall supplement, not supplant, any private 
        or State funds available to the eligible entity to carry out 
        the covered project.
    (f) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary to carry out this section $100,000,000 
for each of fiscal years 2022 through 2026, to remain available until 
expended.

SEC. 3. INDUSTRIAL ASSESSMENT CENTER TECHNICAL ASSISTANCE.

    Section 452 of the Energy Independence and Security Act of 2007 (42 
U.S.C. 17111) is amended--
            (1) in subsection (a), by adding at the end the following:
            ``(6) Small- or medium-sized manufacturer.--The term 
        `small- or medium-sized manufacturer' means a manufacturing 
        firm--
                    ``(A) the gross annual sales of which are less than 
                $100,000,000;
                    ``(B) that has fewer than 500 employees at the 
                plant site of the manufacturing firm; and
                    ``(C) the annual energy bills of which total more 
                than $100,000 but less than $2,500,000.''; and
            (2) in subsection (e)--
                    (A) in paragraph (4), by striking ``and'' at the 
                end;
                    (B) in paragraph (5), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(6) to provide technical assistance to small- and medium-
        sized manufacturers, for which the industrial research and 
        assessment center has completed an energy assessment, to 
        upgrade, retrofit, or replace systems or infrastructure 
        consistent with recommendations made in the energy 
        assessment.''.
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