Title: Job Creation through Energy Efficient Manufacturing Act
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 projects that: (1) improve the energy efficiency of small- or medium-sized manufacturers that employ no more than 750 employees, and (2) develop technologies to 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, the bill establishes a requirement that grant projects only use iron and steel products that are produced in the United States, unless DOE grants a waiver of the requirement.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5042 Introduced in House (IH)]

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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. Norton, 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 following 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 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 efficiency improvement project.--The term 
        ``energy efficiency improvement project'' means a project to--
                    (A) improve the energy efficiency of a small or 
                medium-sized manufacturer; and
                    (B) develop technologies to reduce electricity or 
                natural gas use by a small or medium-sized 
                manufacturer.
            (2) Energy management plan.--The term ``energy management 
        plan'' means a plan established 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 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) Qualified entity.--The term ``qualified entity'' 
        means--
                    (A) a State energy office;
                    (B) a nonprofit organization that--
                            (i) is focused on providing energy 
                        efficiency or renewable energy services; and
                            (ii) receives funding from a State, Tribe, 
                        or electric utility (as defined in section 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 created 
                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 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 to be carried out by small and medium-sized 
manufacturers.
    (b) Grant Applications; Selection of Grant Recipients.--
            (1) Grant applications.--
                    (A) In general.--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 
                        energy management plans;
                            (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 an 
                        energy efficiency improvement project;
                            (iv) the standards by which the qualified 
                        entity will set energy efficiency goals for an 
                        energy efficiency improvement 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 an energy efficiency 
                        improvement project;
                            (vi)(I) any history of the qualified entity 
                        of working collaboratively with the technical 
                        assistance programs of the Department of 
                        Energy; and
                            (II) how the qualified entity plans to 
                        involve such technical assistance programs in 
                        the activities to be funded by a grant;
                            (vii) how the qualified entity plans to 
                        support small or medium-sized manufacturers to 
                        create new jobs or retain existing jobs while 
                        carrying out an energy efficiency improvement 
                        project; and
                            (viii) how the qualified entity will 
                        collect measurements throughout the 
                        implementation of the applicable energy 
                        management plan--
                                    (I) to demonstrate how energy 
                                efficiency improvements are being 
                                achieved; and
                                    (II) to maximize opportunities for 
                                the success of the energy efficiency 
                                improvement project.
                    (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 receiving a subgrant 
                                under subsection (c);
                                    (II) flexibility in addressing the 
                                needs of different small and medium-
                                sized manufacturers;
                                    (III) a history of hiring 
                                contractors that comply with the labor 
                                requirements described in subparagraphs 
                                (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 Improvements.--
            (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 
        program manager is located to carry out energy efficiency 
        improvement projects.
            (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 energy efficiency 
        improvement 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 demonstrate--
                    (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 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, one 
        or more licensed engineers, shall establish a plan for the 
        small or medium-sized manufacturer to carry out the energy 
        efficiency improvement project.
    (d) Contractors.--
            (1) Labor requirements reporting.--In an application for a 
        grant or subgrant under this section, a program manager or a 
        small or medium-sized manufacturer, respectively, shall 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 
        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.);
                    (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) an applicable State law that provides similar 
                protections to employees.
            (2) Additional labor requirements.--A program manager or 
        small or medium-sized manufacturer 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 of, or 
                improve compliance with, a law or Executive order 
                described in any of subparagraphs (A) through (M) of 
                paragraph (1), including any agreements entered into 
                with an enforcement agency;
                    (B) 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 (1); and
                    (C) 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 (1).
    (e) American Iron, Steel, and Manufactured Products.--
            (1) Definitions.--In this subsection:
                    (A) Manufactured product.--The term ``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 
                wholly or predominantly consist of iron or steel, 
                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, means that all 
                                manufacturing processes for such iron 
                                or steel products, from the initial 
                                melting stage through the application 
                                of coatings, occurred in the United 
                                States; and
                                    (II) with respect to a manufactured 
                                product, means that the manufactured 
                                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 exceeds 60 percent of the 
                                cost of all the components of the 
                                manufactured product.
                            (ii) Exclusions.--The term ``produced in 
                        the United States'', with respect to an iron or 
                        steel product, does not include 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.
            (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 recipient of a 
                grant under the program, the Secretary 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 interest;
                            (ii) iron or steel products, or 
                        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 manufactured products, produced in 
                        the United States would increase the overall 
                        cost of the project by more 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 the finding described in 
                        subparagraph (A).
    (f) Reporting Requirements.--
            (1) Data collection.--Each program manager 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 receiving 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 success of 
                energy efficiency improvement projects the program 
                manager oversees.
            (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 
        not more than $600,000,000 to carry out this section.
            (2) Requirements for program managers.--A program manager 
        may use not more 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 efficiency improvement 
                projects the program manager oversees; and
                    (B) to market the availability of subgrants 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 to carry 
        out this section for management and oversight of the 
        requirements of subsection (e).
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