Title: Good Jobs for 21st Century Energy Act
Policy area: Labor and Employment

Summary:
Good Jobs for 21st Century Energy Act
This bill establishes Department of Labor requirements and tax incentives for certified entities who construct certain clean energy, manufacturing, or energy efficiency projects. Specifically, the bill initiates prevailing wage jobs in the clean energy economy, builds clean U.S. energy infrastructure and technology, and provides incentives for workforce training and development.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 2185 Introduced in Senate (IS)]

<DOC>






116th CONGRESS
  1st Session
                                S. 2185

   To provide labor standards for certain energy jobs, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 18, 2019

 Mr. Merkley (for himself, Mrs. Gillibrand, Mr. Blumenthal, Ms. Smith, 
   Mr. Booker, Ms. Harris, Ms. Stabenow, Mr. Brown, Ms. Hirono, Mr. 
 Schatz, and Mr. Bennet) introduced the following bill; which was read 
             twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
   To provide labor standards for certain energy jobs, 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 ``Good Jobs for 21st Century Energy 
Act''.

SEC. 2. DEPARTMENT OF LABOR CERTIFICATION OF QUALIFIED ENTITIES.

    (a) Definitions.--In this section:
            (1) Applicable construction project.--The term ``applicable 
        construction project'', with respect to an entity, means 
        construction by the entity of any property described in section 
        45L, 48D, or 179D of the Internal Revenue Code of 1986.
            (2) Covered project labor agreement.--The term ``covered 
        project labor agreement'' means a project labor agreement 
        that--
                    (A) binds all contractors and subcontractors on the 
                construction project through the inclusion of 
                appropriate specifications in all relevant solicitation 
                provisions and contract documents;
                    (B) allows all contractors and subcontractors to 
                compete for contracts and subcontracts without regard 
                to whether they are otherwise a party to a collective 
                bargaining agreement;
                    (C) contains guarantees against strikes, lockouts, 
                and other similar job disruptions;
                    (D) sets forth effective, prompt, and mutually 
                binding procedures for resolving labor disputes arising 
                during the covered project labor agreement; and
                    (E) provides other mechanisms for labor-management 
                cooperation on matters of mutual interest and concern, 
                including productivity, quality of work, safety, and 
                health.
            (3) Project labor agreement.--The term ``project labor 
        agreement'' means a pre-hire collective bargaining agreement 
        with one or more labor organizations that establishes the terms 
        and conditions of employment for a specific construction 
        project and is described in section 8(f) of the National Labor 
        Relations Act (29 U.S.C. 158(f)).
            (4) Qualified entity.--The term ``qualified entity'' means 
        an entity that the Secretary of Labor certifies as a qualified 
        entity in accordance with subsection (b).
            (5) Registered apprenticeship program.--The term 
        ``registered apprenticeship program'' has the meaning given the 
        term in section 171 of the Workforce Innovation and Opportunity 
        Act (29 U.S.C. 3226).
    (b) Certification of Qualified Entities.--
            (1) In general.--The Secretary of Labor shall establish a 
        process for certifying entities that submit an application 
        under paragraph (2) as qualified entities for purposes of the 
        amendments made by sections 3, 4, and 5.
            (2) Application process.--
                    (A) In general.--An entity seeking certification as 
                a qualified entity under this subsection shall submit 
                an application to the Secretary of Labor at such time, 
                in such manner, and containing such information as the 
                Secretary may reasonably require, including information 
                to demonstrate compliance with the requirements under 
                paragraph (3).
                    (B) Requests for additional information.--Not later 
                than 1 year after receiving an application from an 
                entity under subparagraph (A)--
                            (i) the Secretary of Labor may request 
                        additional information from the entity in order 
                        to determine whether the entity is in 
                        compliance with the requirements under 
                        paragraph (3); and
                            (ii) the entity shall provide such 
                        additional information.
                    (C) Determination deadline.--The Secretary of Labor 
                shall make a determination on whether to certify an 
                entity under this subsection not later than--
                            (i) in a case in which the Secretary 
                        requests additional information described in 
                        subparagraph (B)(i), 1 year after the Secretary 
                        receives such additional information from the 
                        entity; or
                            (ii) in a case that is not described in 
                        clause (i), 1 year after the date on which the 
                        entity submits the application under 
                        subparagraph (A).
                    (D) Pre-certification remedies.--The Secretary 
                shall consider any corrective actions taken by an 
                entity seeking certification under this subsection to 
                remedy an administrative merits determination, arbitral 
                award or decision, or civil judgment identified under 
                paragraph (3)(A)(iv) and shall impose as a condition of 
                certification any additional remedies necessary to 
                avoid further or repeated violations.
            (3) Labor standards requirements.--
                    (A) In general.--The Secretary of Labor shall 
                require an entity, as a condition of certification 
                under this subsection, to satisfy each of the following 
                requirements:
                            (i) The entity shall ensure that all 
                        laborers and mechanics employed by contractors 
                        and subcontractors in the performance of any 
                        applicable construction project shall be paid 
                        wages at rates not less than those prevailing 
                        on projects of a similar character in the 
                        locality as determined by the Secretary of 
                        Labor in accordance with subchapter IV of 
                        chapter 31 of title 40, United States Code 
                        (commonly known as the ``Davis-Bacon Act'').
                            (ii) The entity shall give preference in 
                        hiring to workers who--
                                    (I) have been previously employed 
                                in the fossil fuel industry;
                                    (II) are members of 
                                deindustrialized communities; or
                                    (III) are members of communities 
                                with a significant presence of fossil 
                                fuel infrastructure or operations.
                            (iii) The entity shall be a party to, or 
                        require contractors and subcontractors in the 
                        performance of any applicable construction 
                        project to consent to, a covered project labor 
                        agreement.
                            (iv) The entity, and all contractors and 
                        subcontractors in performance of any applicable 
                        construction project, shall represent in the 
                        application submitted under paragraph (2) 
                        whether there has been any administrative 
                        merits determination, arbitral award or 
                        decision, or civil judgment, as defined in 
                        guidance issued by the Secretary of Labor, 
                        rendered against the entity in the preceding 3 
                        years for violations of--
                                    (I) the Fair Labor Standards Act of 
                                1938 (29 U.S.C. 201 et seq.);
                                    (II) the Occupational Safety and 
                                Health Act of 1970 (29 U.S.C. 651 et 
                                seq.);
                                    (III) the Migrant and Seasonal 
                                Agricultural Worker Protection Act (29 
                                U.S.C. 1801 et seq.);
                                    (IV) the National Labor Relations 
                                Act (29 U.S.C. 151 et seq.);
                                    (V) subchapter IV of chapter 31 of 
                                title 40, United States Code (commonly 
                                known as the ``Davis-Bacon Act'');
                                    (VI) chapter 67 of title 41, United 
                                States Code (commonly known as the 
                                ``Service Contract Act'');
                                    (VII) Executive Order 11246 (42 
                                U.S.C. 2000e note; relating to equal 
                                employment opportunity);
                                    (VIII) section 503 of the 
                                Rehabilitation Act of 1973 (29 U.S.C. 
                                793);
                                    (IX) section 4212 of title 38, 
                                United States Code;
                                    (X) the Family and Medical Leave 
                                Act of 1993 (29 U.S.C. 2601 et seq.);
                                    (XI) title VII of the Civil Rights 
                                Act of 1964 (42 U.S.C. 2000e et seq.);
                                    (XII) the Americans with 
                                Disabilities Act of 1990 (42 U.S.C. 
                                12101 et seq.);
                                    (XIII) the Age Discrimination in 
                                Employment Act of 1967 (29 U.S.C. 621 
                                et seq.);
                                    (XIV) Executive Order 13658 (79 
                                Fed. Reg. 9851; relating to 
                                establishing a minimum wage for 
                                contractors); or
                                    (XV) equivalent State laws, as 
                                defined in guidance issued by the 
                                Secretary of Labor.
                            (v) The entity, and all contractors and 
                        subcontractors in the performance of any 
                        applicable construction project, shall not 
                        require mandatory arbitration for any dispute 
                        involving a worker engaged in a service for the 
                        entity.
                            (vi) The entity, and all contractors and 
                        subcontractors in the performance of any 
                        applicable construction project, shall consider 
                        an individual performing any service in such 
                        performance as an employee (and not an 
                        independent contractor) of the entity, 
                        contractor, or subcontractor, respectively, 
                        unless--
                                    (I) the individual is free from 
                                control and direction in connection 
                                with the performance of the service, 
                                both under the contract for the 
                                performance of the service and in fact;
                                    (II) the service is performed 
                                outside the usual course of the 
                                business of the entity, contractor, or 
                                subcontractor, respectively; and
                                    (III) the individual is customarily 
                                engaged in an independently established 
                                trade, occupation, profession, or 
                                business of the same nature as that 
                                involved in such service.
                            (vii) The entity shall prohibit all 
                        contractors and subcontractors in the 
                        performance of any applicable construction 
                        project from hiring employees through a 
                        temporary staffing agency unless the relevant 
                        State workforce agency certifies that temporary 
                        employees are necessary to address an acute, 
                        short-term labor demand.
                            (viii) The entity shall require all 
                        contractors, subcontractors, successors in 
                        interest of the entity, and other entities that 
                        may acquire the entity, in the performance or 
                        acquisition of any applicable construction 
                        project, to have an explicit neutrality policy 
                        on any issue involving the organization of 
                        employees of the entity, and all contractors 
                        and subcontractors in the performance of any 
                        applicable construction project, for purposes 
                        of collective bargaining.
                            (ix) The entity shall, for each skilled 
                        craft employed on any applicable construction 
                        project, demonstrate an ability to use and 
                        commit to use individuals enrolled in a 
                        registered apprenticeship program, which such 
                        individuals shall, to the greatest extent 
                        practicable, constitute not less than 20 
                        percent of the individuals working on such 
                        project.
                            (x) The entity, and all contractors and 
                        subcontractors in the performance of any 
                        applicable construction project, shall not 
                        request or otherwise consider the criminal 
                        history of an applicant for employment before 
                        extending a conditional offer to the applicant, 
                        unless--
                                    (I) a background check is otherwise 
                                required by law;
                                    (II) the position is for a Federal 
                                law enforcement officer (as defined in 
                                section 115(c) of title 18, United 
                                States Code) position; or
                                    (III) the Secretary, in 
                                consultation with the Secretary of 
                                Energy, certifies that precluding 
                                criminal history prior to the 
                                conditional offer would pose a threat 
                                to national security.
                    (B) Davis-bacon act.--The Secretary of Labor shall 
                have, with respect to the labor standards described in 
                subparagraph (A)(i), 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.
            (4) Period of validity for certifications.--A certification 
        made under this subsection shall be in effect for a period of 5 
        years. An entity may reapply to the Secretary of Labor for an 
        additional certification under this subsection in accordance 
        with the application process under paragraph (2).
            (5) Revocation of qualified entity status.--The Secretary 
        of Labor may revoke the certification of an entity under this 
        subsection as a qualified entity at any time in which the 
        Secretary determines the entity is no longer in compliance with 
        paragraph (3).
    (c) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $10,000,000 for fiscal year 2019 
and each fiscal year thereafter.

SEC. 3. JOBS IN ENERGY CREDIT.

    (a) In General.--Subpart E of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by inserting after 
section 48C the following new section:

``SEC. 48D. JOBS IN ENERGY CREDIT.

    ``(a) Investment Credit for Qualified Property.--For purposes of 
section 46, the Jobs in Energy credit for any taxable year in which the 
taxpayer has been certified as a qualified entity (as defined in 
subsection (e)) is an amount equal to 10 percent of the qualified 
investment for such taxable year with respect to--
            ``(1) any qualified facility,
            ``(2) qualified carbon capture and sequestration equipment, 
        and
            ``(3) energy storage property.
    ``(b) Qualified Investment With Respect to Any Qualified 
Facility.--
            ``(1) In general.--For purposes of subsection (a)(1), the 
        qualified investment with respect to any qualified facility for 
        any taxable year is the basis of any qualified property placed 
        in service by the taxpayer during such taxable year which is 
        part of a qualified facility.
            ``(2) Qualified property.--The term `qualified property' 
        means property--
                    ``(A) which is--
                            ``(i) tangible personal property, or
                            ``(ii) other tangible property (not 
                        including a building or its structural 
                        components), but only if such property is used 
                        as an integral part of the qualified facility,
                    ``(B) with respect to which depreciation (or 
                amortization in lieu of depreciation) is allowable,
                    ``(C) which is constructed, reconstructed, erected, 
                or acquired by the taxpayer, and
                    ``(D) the original use of which commences with the 
                taxpayer.
            ``(3) Qualified facility.--For purposes of this section, 
        the term `qualified facility' means a facility which is--
                    ``(A)(i) used for the generation of electricity 
                from qualified energy resources (as such term is 
                defined in section 45(c)(1)), or
                    ``(ii) described in section 638(a)(1) of the Energy 
                Policy Act of 2005 (42 U.S.C. 16014(a)(1)), and
                    ``(B) originally placed in service after December 
                31, 2020.
    ``(c) Qualified Investment With Respect to Qualified Carbon Capture 
and Sequestration Equipment.--
            ``(1) In general.--For purposes of subsection (a)(2), the 
        qualified investment with respect to qualified carbon capture 
        and sequestration equipment for any taxable year is the basis 
        of any qualified carbon capture and sequestration equipment 
        placed in service by the taxpayer during such taxable year.
            ``(2) Qualified carbon capture and sequestration 
        equipment.--The term `qualified carbon capture and 
        sequestration equipment' means property--
                    ``(A) installed at a facility placed in service 
                before January 1, 2021, which--
                            ``(i) produces electricity, or
                            ``(ii) emits greenhouse gases as a result 
                        of industrial processes,
                    ``(B) which results in the elimination of carbon 
                dioxide emissions from the facility through the capture 
                and disposal or utilization of qualified carbon dioxide 
                (as defined in paragraph (3)),
                    ``(C) with respect to which depreciation is 
                allowable,
                    ``(D) which is constructed, reconstructed, erected, 
                or acquired by the taxpayer, and
                    ``(E) the original use of which commences with the 
                taxpayer.
            ``(3) Qualified carbon dioxide.--The term `qualified carbon 
        dioxide' means carbon dioxide captured from an industrial 
        source which--
                    ``(A) would otherwise be released into the 
                atmosphere as industrial emission of greenhouse gas,
                    ``(B) is measured at the source of capture and 
                verified at the point of disposal or utilization,
                    ``(C)(i) is disposed of by the taxpayer in secure 
                geological storage (as such term is defined under 
                section 45Q(f)(2)), or
                    ``(ii) utilized by the taxpayer in a manner 
                described in section 45Q(f)(5), and
                    ``(D) is captured and disposed or utilized within 
                the United States (within the meaning of section 
                638(1)) or a possession of the United States (within 
                the meaning of section 638(2)).
    ``(d) Qualified Investment With Respect to Energy Storage 
Property.--
            ``(1) In general.--For purposes of subsection (a)(3), the 
        qualified investment with respect to energy storage property 
        for any taxable year is the basis of any energy storage 
        property placed in service by the taxpayer during such taxable 
        year.
            ``(2) Energy storage property.--The term `energy storage 
        property' means property--
                    ``(A) which receives, stores, and delivers 
                electricity, or energy for conversion to electricity, 
                provided that such electricity is--
                            ``(i) sold by the taxpayer to an unrelated 
                        person, or
                            ``(ii) in the case of a facility which is 
                        equipped with a metering device which is owned 
                        and operated by an unrelated person, sold or 
                        consumed by the taxpayer,
                    ``(B) with respect to which depreciation is 
                allowable,
                    ``(C) which is constructed, reconstructed, erected, 
                or acquired by the taxpayer,
                    ``(D) the original use of which commences with the 
                taxpayer, and
                    ``(E) which is placed in service after December 31, 
                2020.
    ``(e) Qualified Entity.--
            ``(1) In general.--For purposes of this section, the term 
        `qualified entity' means an entity which has been certified by 
        the Secretary of Labor as being in compliance with all of the 
        applicable requirements under section 2 of the Good Jobs for 
        21st Century Energy Act.
            ``(2) Aggregation rule.--All persons which are treated as a 
        single employer under subsections (a) and (b) of section 52 
        shall be treated as a single taxpayer.
            ``(3) Requirement for certification prior to 
        construction.--For purposes of this section, an entity shall 
        not be considered a qualified entity unless such entity--
                    ``(A) has been certified by the Secretary of Labor 
                as being in compliance with all of the applicable 
                requirements described in paragraph (1) prior to the 
                date with respect to which construction of the property 
                begins, and
                    ``(B) maintains such certification for the entirety 
                of the period beginning on the date described in 
                subparagraph (A) and ending on the date in which the 
                property is placed in service.''.
    (b) Conforming Amendments.--
            (1) Section 46 of such Code is amended--
                    (A) by striking ``and'' at the end of paragraph 
                (5),
                    (B) by striking the period at the end of paragraph 
                (6) and inserting ``, and'', and
                    (C) by adding at the end the following new 
                paragraph:
            ``(7) the Jobs in Energy credit.''.
            (2) Section 49(a)(1)(C) of such Code is amended--
                    (A) by striking ``and'' at the end of clause (iv),
                    (B) by striking the period at the end of clause (v) 
                and inserting a comma, and
                    (C) by adding at the end the following new clauses:
                            ``(vi) the basis of any qualified property 
                        which is part of a qualified facility under 
                        section 48D,
                            ``(vii) the basis of any qualified carbon 
                        capture and sequestration equipment under 
                        section 48D, and
                            ``(viii) the basis of any energy storage 
                        property under section 48D.''.
            (3) The table of sections for subpart E of part IV of 
        subchapter A of chapter 1 of such Code is amended by inserting 
        after the item relating to section 48C the following new item:

``48D. Jobs in Energy credit.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service after December 31, 2020.

SEC. 4. EXTENSION AND ENHANCEMENT OF NEW ENERGY EFFICIENT HOME CREDIT.

    (a) Extension.--Subsection (g) of section 45L of the Internal 
Revenue Code of 1986 is amended by striking ``December 31, 2017'' and 
inserting ``December 31, 2030''.
    (b) Increase in Credit for Qualified Entities.--Subsection (a) of 
such section is amended by adding at the end the following:
            ``(3) Adjustment for qualified entities.--In the case of 
        any taxable year in which the eligible contractor has been 
        certified as a qualified entity (as defined in section 48D(e)), 
        paragraph (2) shall be applied--
                    ``(A) in subparagraph (A) of such paragraph, by 
                substituting `$2,200' for `$2,000', and
                    ``(B) in subparagraph (B) of such paragraph, by 
                substituting `$1,100' for `$1,000'.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to any qualified new energy efficient home acquired after 
December 31, 2020.

SEC. 5. EXTENSION AND ENHANCEMENT OF ENERGY EFFICIENT COMMERCIAL 
              BUILDING DEDUCTION.

    (a) Extension.--Subsection (h) of section 179D of the Internal 
Revenue Code of 1986 is amended by striking ``December 31, 2017'' and 
inserting ``December 31, 2030''.
    (b) Increase in Deduction for Qualified Entities.--Subsection (d) 
of such section is amended by adding at the end the following:
            ``(7) Adjustment for qualified entities.--In the case of 
        any energy efficient commercial building property placed in 
        service during any taxable year, if such property was installed 
        by an entity which is certified as a qualified entity (as 
        defined in section 48D(e)) for such taxable year, subsection 
        (b)(1) shall be applied by substituting `$2.00' for `$1.80' in 
        subparagraph (A) thereof.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to any property placed in service after December 31, 2020.

SEC. 6. CLEAN ENERGY MANUFACTURING INITIATIVE.

    (a) In General.--The Secretary of Energy (referred to in this 
section as the ``Secretary'') shall establish a Clean Energy 
Manufacturing Initiative within the Department of Energy--
            (1) to increase the competitiveness of the United States in 
        manufacturing clean energy technologies;
            (2) to increase the competitiveness of the United States 
        across the manufacturing sector by--
                    (A) boosting energy productivity; and
                    (B) leveraging clean affordable domestic energy 
                resources and feedstocks; and
            (3) to develop manufacturing supply chains--
                    (A) for the clean energy economy;
                    (B) that prioritize family-sustaining jobs; and
                    (C) that prioritize the development of 
                manufacturing facilities in deindustrialized 
                communities.
    (b) Clean Jobs Workforce Hub.--
            (1) In general.--As part of the Clean Energy Manufacturing 
        Initiative established under subsection (a), the Secretary 
        shall establish a clean jobs workforce hub under which the 
        Secretary shall convene the entities described in paragraph (2) 
        to work together to train and provide direct assistance to 
        underserved communities in accessing renewable energy-related 
        jobs.
            (2) Entities described.--The entities referred to in 
        paragraph (1) are--
                    (A) labor organizations;
                    (B) renewable energy employers and industry;
                    (C) frontline and deindustrialized communities; and
                    (D) any other community, industry, or public sector 
                stakeholders, as determined by the Secretary.
            (3) Funding.--Of the funding authorized under subsection 
        (c) for each fiscal year, the Secretary shall use to carry out 
        this subsection $25,000,000 each fiscal year.
    (c) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary to carry out this section $100,000,000 
for fiscal year 2019 and each fiscal year thereafter.

SEC. 7. JOB CREATION THROUGH ENERGY EFFICIENT MANUFACTURING.

    (a) Definitions.--In this section:
            (1) Energy management plan.--The term ``energy management 
        plan'' means a plan established under subsection (b)(3)(D).
            (2) Program.--The term ``program'' means the Financing 
        Energy Efficient Manufacturing Program established under 
        subsection (b)(1).
            (3) Program manager.--The term ``program manager'' means a 
        qualified entity that receives a grant under subsection (b)(1).
            (4) 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.
            (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 utility;
                    (C) an electric cooperative group; and
                    (D) 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)).
            (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.
    (b) Financing Energy Efficient Manufacturing Program.--
            (1) 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.
            (2) Grant applications; selection of grant recipients.--
                    (A) Grant applications.--
                            (i) In general.--Not later than 180 days 
                        after the date of enactment of this Act, 
                        qualified entities desiring a grant under 
                        paragraph (1) 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)(aa) any history of the 
                                qualified entity of working 
                                collaboratively with the regional 
                                technical assistance programs of the 
                                Department; and
                                    (bb) 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--
                                            (aa) to demonstrate how 
                                        energy efficiency improvements 
                                        are being achieved; and
                                            (bb) to maximize 
                                        opportunities for project 
                                        success.
                            (ii) Partnerships.--Two or more qualified 
                        entities may form a partnership to apply, and 
                        act as program manager, for a grant under this 
                        paragraph.
                    (B) Selection of grant recipients.--
                            (i) In general.--Not later than 90 days 
                        after the date on which the Secretary receives 
                        an application under subparagraph (A), 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 
                                clause (ii).
                            (ii) Selection criteria.--
                                    (I) In general.--The Secretary 
                                shall select for grants under this 
                                paragraph 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 subclause (I), the 
                                Secretary shall give priority to 
                                qualified entities that demonstrate--
                                            (aa) effective methods for 
                                        reducing barriers to entry that 
                                        might otherwise prevent small- 
                                        and medium-sized manufacturers 
                                        from participating in the 
                                        subgrant program under 
                                        paragraph (3);
                                            (bb) flexibility in 
                                        addressing the needs of 
                                        different small- and medium-
                                        sized manufacturers; and
                                            (cc) a commitment to hiring 
                                        for projects contractors that 
                                        comply with the labor 
                                        requirements described in 
                                        paragraph (4)(B).
            (3) Subgrants for energy efficiency improvements.--
                    (A) In general.--A qualified entity (including a 
                partnership of 1 or more qualified entities under 
                paragraph (2)(A)(ii)) that receives a grant under 
                paragraph (1) 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--
                            (i) to improve the energy efficiency of the 
                        small- or medium-sized manufacturer; and
                            (ii) to develop technologies to reduce 
                        electricity or natural gas use by the small- or 
                        medium-sized manufacturer.
                    (B) Applications.--A small- or medium-sized 
                manufacturer desiring a subgrant under subparagraph (A) 
                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.
                    (C) Priority.--In selecting small- or medium-sized 
                manufacturers for subgrants under this paragraph, 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 paragraph (4)(B).
                    (D) Eligibility requirements.--To be eligible to 
                receive a subgrant under subparagraph (A), a small- or 
                medium-sized manufacturer shall be a private, 
                nongovernmental entity.
                    (E) Energy management plans.--Each small- or 
                medium-sized manufacturer receiving a subgrant under 
                subparagraph (A), 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.
                    (F) Effect on title to property.--The receipt of 
                Federal funds under this paragraph 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.
            (4) Contractors.--
                    (A) 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.
                    (B) Labor requirements.--In an application for a 
                grant or subgrant under this subsection, a program 
                manager or a small- or medium-sized manufacturer, 
                respectively, shall commit to hiring contractors that 
                are certified by the Secretary of Labor under section 2 
                as being in compliance with all of the applicable 
                requirements under that section.
            (5) American iron, steel, and manufactured products.--
                    (A) Definitions.--In this paragraph:
                            (i) 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--
                                            (aa) aluminum and 
                                        polyvinylchloride;
                                            (bb) glass;
                                            (cc) fiber optics;
                                            (dd) plastic;
                                            (ee) wood;
                                            (ff) masonry;
                                            (gg) rubber;
                                            (hh) manufactured stone; 
                                        and
                                            (ii) any other non-ferrous 
                                        metals; and
                                    (III) any unmanufactured 
                                construction material.
                            (ii) Produced in the united states.--
                                    (I) In general.--The term 
                                ``produced in the United States''--
                                            (aa) 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
                                            (bb) 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 the materials and 
                                components of which were manufactured--
                                            (aa) abroad from semi-
                                        finished steel or iron from the 
                                        United States; or
                                            (bb) in the United States 
                                        from semi-finished steel or 
                                        iron of foreign origin.
                    (B) 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.
                    (C) Waiver.--
                            (i) 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 subparagraph (B) if 
                        the Secretary finds that--
                                    (I) the application of subparagraph 
                                (B) 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--
                                            (aa) in sufficient and 
                                        reasonably available 
                                        quantities; or
                                            (bb) 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.
                            (ii) Public notice.--On receipt of a 
                        request for a waiver under clause (i), the 
                        Secretary shall--
                                    (I) make available to the public, 
                                including by electronic means, 
                                including on the official public 
                                website of the Department, 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 clause (i).
            (6) Reporting requirements.--
                    (A) In general.--Each program manager shall--
                            (i) determine what data shall be required--
                                    (I) to be collected by or from each 
                                small- or medium-sized manufacturer 
                                receiving a subgrant under paragraph 
                                (3); and
                                    (II) to be submitted to the program 
                                manager to permit analysis of the 
                                subgrant program under paragraph (3); 
                                and
                            (ii) develop metrics to determine the 
                        success of the subgrant program under paragraph 
                        (3).
                    (B) Provision of data.--As a condition of receiving 
                a subgrant under paragraph (3), a small- or medium-
                sized manufacturer shall provide to the program manager 
                relevant data, as determined by the program manager 
                under subparagraph (A)(i).
                    (C) Proprietary information.--In carrying out this 
                paragraph, each program manager, as appropriate, shall 
                provide for the protection of proprietary information 
                and intellectual property rights.
            (7) Funding.--
                    (A) In general.--Out of amounts made available to 
                the Secretary and not otherwise obligated, the 
                Secretary shall use to carry out this subsection not 
                more than $600,000,000.
                    (B) 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--
                            (i) to hire and train staff to assist the 
                        program manager in administering the subgrant 
                        program of the program manager; and
                            (ii) to market the subgrant program to 
                        small- and medium-sized manufacturers.
                    (C) Management and oversight.--The Secretary may 
                use not greater than 0.25 percent of the funds made 
                available under subparagraph (A) to carry out paragraph 
                (5).

SEC. 8. INCENTIVES FOR INNOVATIVE TECHNOLOGIES.

    Section 1703(b) of the Energy Policy Act of 2005 (42 U.S.C. 
16513(b)) is amended--
            (1) by redesignating paragraphs (1) through (10) as 
        subparagraphs (A) through (J), respectively, and indenting 
        appropriately;
            (2) in the matter preceding subparagraph (A) (as so 
        redesignated), by striking ``Projects'' and inserting the 
        following:
            ``(1) In general.--Projects''; and
            (3) by adding at the end the following:
            ``(2) Priority.--In making guarantees under this section, 
        the Secretary shall give priority to projects proposed by 
        applicants that commit to hiring contractors that have been 
        certified by the Secretary of Labor under section 2 of the Good 
        Jobs for 21st Century Energy Act as being in compliance with 
        all of the applicable requirements under that section.''.
                                 <all>