Title: ICEE HOT Act of 2022
Policy area: Commerce

Summary:
Installing Clean Efficient Energy Hastens Our Transition Act of 2022 or the ICEE HOT Act of 2022
This bill revises the State Energy Efficient Appliance Rebate Program by allowing states to provide rebates to distributors and original equipment manufacturers of certain electrical heating appliances (e.g., heat pumps, heat pump water heaters, and heat pump clothes dryers) that are made in the United States.

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 4144 Introduced in Senate (IS)]

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117th CONGRESS
  2d Session
                                S. 4144

To amend the Energy Policy Act of 2005 to establish an energy efficient 
  appliance rebate program to provide rebates for the manufacturing, 
    distribution, and shipment of certain building electrification 
                   products, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 4, 2022

 Mr. Markey (for himself, Ms. Warren, Mr. Sanders, Mr. Booker, and Ms. 
Smith) introduced the following bill; which was read twice and referred 
                      to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To amend the Energy Policy Act of 2005 to establish an energy efficient 
  appliance rebate program to provide rebates for the manufacturing, 
    distribution, and shipment of certain building electrification 
                   products, 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 ``Installing Clean Efficient Energy 
Hastens Our Transition Act of 2022'' or the ``ICEE HOT Act of 2022''.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) additional measures are needed to further reduce United 
        States and European dependence on Russia and other 
        authoritarian petrostates while also saving money for people in 
        the United States, protecting public health, and combating the 
        climate crisis;
            (2) over the past 5 years, the United States has, on 
        average, imported approximately 500,000 barrels of oil per day 
        from Russia;
            (3) almost 40 percent, or 196,500 barrels per day, of 
        Russian oil supplied to the United States can be replaced by 
        swapping out the 5,300,000 residential oil heating devices in 
        the United States with efficient electric heat pumps;
            (4) in 2020, 104,000 heat pump water heaters were installed 
        in the United States;
            (5) in 2021, 3,900,000 air source heat pumps were installed 
        in the United States;
            (6) through the modified energy efficient appliance rebate 
        program of the Department of Energy, the United States could 
        provide midstream incentives and upstream incentives that 
        support and increase manufacturing capacity and supply chain 
        security for technologies that reduce fossil fuel demand and 
        fuel costs, such as electric heat pumps and efficient electric 
        appliances;
            (7) $10,000,000,000 in midstream incentives and upstream 
        incentives at $1,000 per unit for cold climate and $500 per 
        unit for noncold climate would--
                    (A) help the manufacture of an additional 7,500,000 
                heat pumps in the United States; and
                    (B) lay the groundwork to bring down manufacturing 
                and distribution costs in the medium and long term, 
                thus transforming the heat pump marketplace; and
            (8) combined with climate justice and clean energy 
        investment, generation, and domestic manufacturing incentives, 
        the incentives described in paragraph (6) will provide 
        additional support for national security, climate action, and 
        consumer protection goals.

SEC. 3. ENERGY EFFICIENT APPLIANCE REBATE PROGRAM.

    (a) Definitions.--Section 124(a) of the Energy Policy Act of 2005 
(42 U.S.C. 15821(a)) is amended--
            (1) by redesignating paragraphs (1) through (5) as 
        paragraphs (7), (8), (13), (15), and (16), respectively;
            (2) by inserting before paragraph (7) (as so redesignated) 
        the following:
            ``(1) Disadvantaged business.--The term `disadvantaged 
        business' means a distributor or original equipment 
        manufacturer that is a small business participating in the 
        minority small business and capital ownership development 
        program of the Small Business Administration pursuant to 
        section 8(a) of the Small Business Act (15 U.S.C. 637(a)) 
        (commonly known as the `8(a) program').
            ``(2) Disadvantaged individual.--The term `disadvantaged 
        individual' means--
                    ``(A) a Black American, Hispanic American, Native 
                American, Asian Pacific American, any other minority, 
                or any other individual found to be disadvantaged by 
                the Small Business Administration pursuant to section 
                8(a) of the Small Business Act (15 U.S.C. 637(a)); and
                    ``(B) a woman.
            ``(3) Distributor.--The term `distributor' means a person 
        to which an eligible building electrification product is 
        delivered or sold for purposes of distribution in commerce.
            ``(4) Electric residential cold climate heat pump.--The 
        term `electric residential cold climate heat pump' means a heat 
        pump that--
                    ``(A) is certified under the Energy Star program;
                    ``(B) is optimized for peak heating and part-load 
                cooling performance; and
                    ``(C) meets--
                            ``(i) the cold climate air source heat pump 
                        specifications of the Northeast Energy 
                        Efficiency Partnerships; or
                            ``(ii) the criteria for cold climate heat 
                        pumps under the Energy Star program.
            ``(5) Electric residential heat pump water heater.--The 
        term `electric residential heat pump water heater' means an 
        electric heat pump water heater for residential use that is 
        certified under the Energy Star program.
            ``(6) Eligible building electrification product.--The term 
        `eligible building electrification product' means any of the 
        following United States-made products:
                    ``(A) An electric residential heat pump water 
                heater.
                    ``(B) An electric residential air source heat pump.
                    ``(C) An electric residential central geothermal 
                heat pump.
                    ``(D) An electric residential cold climate heat 
                pump.
                    ``(E) An induction or noninduction electric smooth 
                stove, flat cooktop, range, or oven.
                    ``(F) An electric heat pump clothes dryer that--
                            ``(i) is certified under the Energy Star 
                        program; or
                            ``(ii) meets a more stringent standard, as 
                        determined by the Secretary, if the Secretary 
                        determines a more stringent standard is 
                        appropriate.
                    ``(G) A smart panel or a panel that is part of an 
                electric load or service center upgrade.
                    ``(H) Any other electric product, as determined by 
                the Secretary.'';
            (3) by inserting after paragraph (8) (as so redesignated) 
        the following:
            ``(9) Midstream rebate.--The term `midstream rebate' means 
        a rebate provided by a State to a distributor under a State 
        program described in subsection (b)(1)(B).
            ``(10) Original equipment manufacturer.--The term `original 
        equipment manufacturer' means an entity that manufactures 
        eligible building electrification products.
            ``(11) Residential air source heat pump.--The term 
        `residential air source heat pump' means a heat pump or central 
        air conditioner (as defined in section 321(21) of the Energy 
        Policy and Conservation Act (42 U.S.C. 6291(21))) that--
                    ``(A) notwithstanding subparagraph (E) of that 
                section, is a heating and cooling unit; and
                    ``(B) is certified under the Energy Star program.
            ``(12) Residential central geothermal heat pump.--The term 
        `residential central geothermal heat pump' has the meaning 
        given the term `qualified geothermal heat pump property' in 
        section 25D(d)(5)(B) of the Internal Revenue Code of 1986.'';
            (4) by inserting after paragraph (13) (as so redesignated) 
        the following:
            ``(14) Smart panel.--The term `smart panel' means an 
        electrical power distribution panel with an integrated 
        communications and energy management system capable of--
                    ``(A) interoperability with electric utility 
                distribution networks; and
                    ``(B) monitoring and controlling individual 
                circuits to ensure that the total load on the 
                electrical service does not exceed a programmed set-
                point.''; and
            (5) by adding at the end the following:
            ``(17) United states-made.--The term `United States-made', 
        with respect to an eligible building electrification product, 
        means that not less than 55 percent of the components of the 
        eligible building electrification product are mined, produced, 
        or manufactured, as applicable, in the United States, as 
        determined by the Secretary.
            ``(18) Upstream rebate.--The term `upstream rebate' means a 
        rebate provided by a State to a distributor or original 
        equipment manufacturer under a State program described in 
        subsection (b)(1)(B).''.
    (b) Program.--Section 124 of the Energy Policy Act of 2005 (42 
U.S.C. 15821) is amended--
            (1) in subsection (b)(1)--
                    (A) by striking ``program to provide'' and 
                inserting the following: ``program--
                    ``(A) to provide'';
                    (B) in subparagraph (A) (as so designated), by 
                adding ``or'' at the end after the semicolon; and
                    (C) by adding at the end the following:
                    ``(B) to provide midstream rebates and upstream 
                rebates to original equipment manufacturers and 
                distributors, as applicable, for the manufacturing, 
                distribution, or shipment of eligible building 
                electrification products;'';
            (2) in subsection (d)--
                    (A) by striking ``The allocation'' and inserting 
                the following:
            ``(1) In general.--The allocation''; and
                    (B) by adding at the end the following:
            ``(2) Disadvantaged businesses and individuals.--Of the 
        amount used by a State to carry out a State program described 
        in subsection (b)(1)(B), not less than 40 percent shall be used 
        to provide midstream rebates and upstream rebates--
                    ``(A) to disadvantaged businesses; or
                    ``(B) to original equipment manufacturers or 
                distributors that employ disadvantaged individuals.
            ``(3) Union facilities.--Of the amount used by a State to 
        carry out a State program described in subsection (b)(1)(B), 
        not less than 40 percent shall be used to provide midstream 
        rebates and upstream rebates to distributors and original 
        equipment manufacturers, as applicable, that own or operate 
        facilities operating under a collective bargaining agreement 
        negotiated by a labor organization (as defined in section 2 of 
        the National Labor Relations Act (29 U.S.C. 152)) in accordance 
        with the requirements of section 9 of the National Labor 
        Relations Act (29 U.S.C. 159).'';
            (3) in subsection (e)--
                    (A) by redesignating paragraphs (1) through (3) as 
                subparagraphs (A), (C), and (D), respectively, and 
                indenting appropriately;
                    (B) in the matter preceding subparagraph (A) (as so 
                redesignated), by striking ``Rebates'' in the first 
                sentence and all that follows through ``The amount'' in 
                the second sentence and inserting the following:
            ``(1) In general.--Rebates may be provided to--
                    ``(A) residential consumers that meet the 
                requirements of the State program described in 
                subsection (b)(1)(A); and
                    ``(B) original equipment manufacturers and 
                distributors of eligible building electrification 
                products that meet the requirements of the State 
                program described in subsection (b)(1)(B).
            ``(2) Amount.--The amount''; and
                    (C) in paragraph (2) (as so designated)--
                            (i) in the matter preceding subparagraph 
                        (A) (as so redesignated), by striking 
                        ``consideration--'' and inserting 
                        ``consideration, as applicable--''; and
                            (ii) by inserting after subparagraph (A) 
                        (as so redesignated) the following:
                    ``(B) the amount of any Federal or State tax 
                incentive available for the manufacturing or 
                distribution of eligible building electrification 
                products;''; and
            (4) by striking subsection (f) and inserting the following:
    ``(f) Administrative Requirements for Recipients of Midstream and 
Upstream Rebates.--
            ``(1) Pass-through.--
                    ``(A) In general.--As a condition of receipt of a 
                midstream rebate or upstream rebate, a distributor or 
                original equipment manufacturer shall pass through not 
                less than 90 percent of the value of the midstream 
                rebate or upstream rebate, as applicable, to a 
                distributor or other customer in the form of a reduced 
                price for the purchase of an eligible building 
                electrification product.
                    ``(B) Use of remainder.--After carrying out 
                subparagraph (A), a distributor or original equipment 
                manufacturer may retain not more than 10 percent of the 
                remainder of the applicable midstream rebate or 
                upstream rebate as a processing fee.
            ``(2) Coordination with existing programs.--An entity that 
        receives a midstream rebate or upstream rebate is encouraged to 
        coordinate with Federal and State agencies, electric utilities, 
        natural gas utilities, nonprofit organizations, and other 
        entities carrying out other relevant Federal or State rebate 
        programs.
            ``(3) No multiple midstream and upstream rebates.--An 
        entity that receives a midstream rebate or upstream rebate for 
        an eligible building electrification product may not receive--
                    ``(A) an upstream rebate or midstream rebate, 
                respectively, for the same eligible building 
                electrification product; or
                    ``(B) a second midstream rebate or upstream rebate, 
                respectively, for the same eligible building 
                electrification product.
            ``(4) Taxation.--A midstream rebate or upstream rebate 
        shall not be considered to be gross income of the recipient of 
        the rebate for purposes of the Internal Revenue Code of 1986.
    ``(g) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary to carry out this section to provide 
allocations only to States that have established a State program 
described in subsection (b)(1)(B) $10,000,000,000 for the period of 
fiscal years 2023 through 2030.''.
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