Title: Energy Security and Independence Act of 2022
Policy area: Energy

Summary:
Energy Security and Independence Act of 2022
This bill addresses domestic industrial base and manufacturing capabilities for specified energy-efficiency and renewable energy systems and technologies (e.g., electric transportation systems), including by establishing a program to provide financial assistance for the construction of new facilities that manufacture components of specified energy-efficiency and renewable energy systems and technologies (or to retool, retrofit, or expand such facilities).

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 4013 Introduced in Senate (IS)]

<DOC>






117th CONGRESS
  2d Session
                                S. 4013

To promote United States energy security and independence by bolstering 
  renewable energy supply chains in the United States, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 6, 2022

  Mr. Sanders (for himself, Mr. Padilla, Mr. Booker, Ms. Warren, Mr. 
  Markey, Mr. Murphy, and Mr. Merkley) introduced the following bill; 
   which was read twice and referred to the Committee on Energy and 
                           Natural Resources

_______________________________________________________________________

                                 A BILL


 
To promote United States energy security and independence by bolstering 
  renewable energy supply chains in the United States, 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 ``Energy Security and Independence Act 
of 2022''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Covered energy-efficiency or renewable energy system or 
        technology.--The term ``covered energy-efficiency or renewable 
        energy system or technology'' means--
                    (A) a renewable energy generation system;
                    (B) a renewable energy storage system;
                    (C) an energy-efficiency system (including a heat 
                pump);
                    (D) an energy-efficiency technology;
                    (E) an electric transportation system;
                    (F) a renewable energy technology; and
                    (G) an energy storage technology utilizing energy 
                generated from a renewable energy source.
            (2) Direct loan.--
                    (A) In general.--The term ``direct loan'' means a 
                disbursement of funds by the Federal Government to a 
                non-Federal borrower under a contract that requires the 
                repayment of those funds with or without interest.
                    (B) Inclusion.--The term ``direct loan'' includes 
                the purchase of, or participation in--
                            (i) a loan made by another lender; or
                            (ii) a financing arrangement that defers 
                        payment for more than 90 days, including the 
                        sale of a Government asset on credit terms.
            (3) Eligible entity.--The term ``eligible entity'' means a 
        private entity, including a manufacturer, or a partnership of 
        private entities.
            (4) Environmental justice community.--The term 
        ``environmental justice community'' means a community with 
        significant representation of 1 or more communities of color, 
        low-income communities, or Tribal or indigenous communities 
        that experience, or are at risk of experiencing, higher or more 
        adverse human health or environmental effects as compared to 
        other communities.
            (5) Heat pump.--The term ``heat pump'' means a device 
        that--
                    (A) transfers heat from a colder area to a hotter 
                area by using mechanical energy; and
                    (B) is used to maintain a safe, comfortable, and 
                affordable temperature in a building.
            (6) Public heat pump.--The term ``public heat pump'' means 
        a heat pump that is owned or operated by--
                    (A) a unit of Federal, State, or local government; 
                or
                    (B) a cooperatively owned utility.
            (7) Renewable energy.--The term ``renewable energy'' means 
        energy generated from a renewable energy source.
            (8) Renewable energy source.--The term ``renewable energy 
        source'' means wind, solar, tidal, wave, or geothermal energy.

SEC. 3. FINDING.

    Congress finds that it is in the interests of the United States--
            (1) to have a viable domestic manufacturing supply chain 
        for components of covered energy-efficiency and renewable 
        energy systems and technologies; and
            (2) to reduce the reliance of United States manufacturers 
        on components of covered energy-efficiency and renewable energy 
        systems and technologies made in foreign countries.

SEC. 4. USE OF DEFENSE PRODUCTION ACT OF 1950 AUTHORITIES TO SUPPORT 
              DOMESTIC INDUSTRIAL BASE AND MANUFACTURING CAPABILITIES 
              FOR RENEWABLE ENERGY TECHNOLOGIES.

    (a) Renewable Energy Technologies as Strategic and Critical 
Materials.--Section 106 of the Defense Production Act of 1950 (50 
U.S.C. 4516) is amended--
            (1) by inserting ``(a)'' before ``For purposes''; and
            (2) by adding at the end the following:
    ``(b) The designation of energy as a strategic and critical 
material under subsection (a) includes the designation of covered 
energy-efficiency and renewable energy systems and technologies (as 
defined in section 2 of the Energy Security and Independence Act of 
2022) as strategic and critical materials.''.
    (b) Appropriation.--
            (1) In general.--In addition to amounts otherwise 
        available, there is appropriated for fiscal year 2022, out of 
        any money in the Treasury not otherwise appropriated, 
        $100,000,000,000 to the President to carry out subsection (c).
            (2) Availability of amounts.--Amounts appropriated under 
        paragraph (1) shall remain available until September 30, 2032.
    (c) Support for Domestic Industrial Base and Manufacturing 
Capabilities.--
            (1) In general.--The President shall use the authorities 
        under titles I and III and section 708(c) of the Defense 
        Production Act of 1950 (50 U.S.C. 4501 et seq.) to establish, 
        maintain, protect, or restore the domestic industrial base and 
        manufacturing capabilities for covered energy-efficiency and 
        renewable energy systems and technologies, including by 
        providing loan guarantees, loans, purchase agreements, and 
        grants to manufacturing entities to expand the domestic 
        productive capacity of those entities and repurpose equipment 
        to meet the manufacturing demands of such systems and 
        technologies.
            (2) Requirements.--In carrying out paragraph (1), the 
        President shall--
                    (A) identify the domestic industrial base needs to 
                transform the United States domestic energy system into 
                a 100-percent renewable energy system;
                    (B) use the authorities under title I of the 
                Defense Production Act (50 U.S.C. 4501 et seq.)--
                            (i) to prioritize contracts and allocate 
                        materials, services, and facilities to achieve 
                        the goal described in subparagraph (A); and
                            (ii) to allocate the strategic and critical 
                        materials described in section 106(b) of that 
                        Act, as added by subsection (a), in a manner 
                        that prioritizes--
                                    (I) environmental justice 
                                communities first;
                                    (II) publicly owned systems of 
                                renewable energy;
                                    (III) systems that reduce utility 
                                and energy costs in the United States; 
                                and
                                    (IV) Federal agencies whose 
                                buildings can be used as public sources 
                                of solar energy for environmental 
                                justice communities; and
                    (C) take the actions described in subparagraph (B) 
                in tandem with existing financial and technical 
                assistance programs of the Department of Energy, the 
                Department of Transportation, and such other agencies 
                as the President considers appropriate; and
                    (D) coordinate with the task force established 
                under section 5.

SEC. 5. DOMESTIC RENEWABLE ENERGY INDUSTRIAL BASE TASK FORCE.

    (a) In General.--The President shall establish a domestic renewable 
energy industrial base task force that includes--
            (1) manufacturers, engineers, scientists, and planning 
        experts in the fields of--
                    (A) equitable energy; and
                    (B) energy democracy and transportation design;
            (2) environmental justice community leaders;
            (3) labor unions;
            (4) the Secretary of Energy, the Secretary of 
        Transportation, and the Secretary of Labor;
            (5) staff of the National Laboratories (as defined in 
        section 2 of the Energy Policy Act of 2005 (42 U.S.C. 15801)); 
        and
            (6) other relevant Federal, State, and local agencies.
    (b) Duties.--The task force established under subsection (a) shall 
develop a manufacturing and allocation plan--
            (1) to establish, maintain, protect, and restore a domestic 
        industrial base and manufacturing capabilities for covered 
        energy-efficiency and renewable energy systems and 
        technologies;
            (2) to reach the goal of a 100 percent renewable energy 
        system as soon as possible, using the best available science 
        and technologies;
            (3) to prioritize distributed energy resources and storage 
        to boost climate resilience and equity;
            (4) to make an equitable allocation of Federal renewable 
        energy investments and assistance, in partnership with 
        environmental justice communities and public entities; and
            (5) to ensure that the domestic industrial base of covered 
        energy-efficiency and renewable energy systems and technologies 
        creates and maintains high-quality jobs that are represented by 
        labor organizations.
    (c) Appropriations.--In addition to amounts otherwise available, 
there is appropriated, out of any money in the Treasury not otherwise 
appropriated, $25,000,000 to the President to carry out this section 
for fiscal year 2022, to remain available until September 30, 2031.

SEC. 6. RENEWABLE ENERGY GENERATION SYSTEM COMPONENT MANUFACTURING 
              SUPPLY CHAIN ASSISTANCE.

    (a) In General.--Not later than 180 days after the date of 
enactment of this Act, the Secretary of Energy (referred to in this 
section as the ``Secretary'') shall establish a program (referred to in 
this section as the ``program'') to provide financial assistance, 
including grants, direct loans, and loan guarantees, to eligible 
entities to carry out projects--
            (1) to construct new facilities that manufacture components 
        of covered energy-efficiency and renewable energy systems and 
        technologies; and
            (2) to retool, retrofit, or expand existing facilities that 
        manufacture, or have the ability to manufacture, components of 
        covered energy-efficiency and renewable energy systems and 
        technologies.
    (b) Application.--To be eligible to receive financial assistance 
under the program, an eligible entity shall submit to the Secretary an 
application at such time, in such manner, and containing such 
information as the Secretary may require.
    (c) Priority.--In providing financial assistance under the program, 
the Secretary shall give priority to projects that--
            (1) have the potential to benefit an environmental justice 
        community, including by reducing the pollution and emissions 
        within, and the utility costs of, such a community;
            (2) are strategically located near manufacturers of 
        components of covered energy-efficiency and renewable energy 
        systems and technologies to create a geographic concentration 
        of those manufacturers in the manufacturing supply chain;
            (3) have potential to directly and indirectly create 
        domestic jobs, including jobs for low-income communities, 
        dislocated workers, and workers from groups that are 
        underrepresented in the manufacturing industry, including 
        formerly incarcerated workers;
            (4) will result in economic development or economic 
        diversification in economically distressed regions or 
        localities; and
            (5) do not expedite or fast track any applicable 
        environmental review processes.
    (d) Direct Loan Conditions.--A direct loan made under the program 
shall--
            (1) bear interest at a rate that does not exceed a level 
        that the Secretary determines to be appropriate; and
            (2) be subject to such other terms and conditions as the 
        Secretary determines to be appropriate.
    (e) Cost Sharing for Grants.--Section 988(c) of the Energy Policy 
Act of 2005 (42 U.S.C. 16352(c)) shall apply to a grant made under the 
program.
    (f) Conditions of Receipt of Financial Assistance.--
            (1) Required agreement.--An eligible entity awarded 
        financial assistance under the program shall enter into an 
        agreement that specifies that, during the 5-year period 
        immediately following the award of the financial assistance--
                    (A) the eligible entity will not--
                            (i) repurchase an equity security of the 
                        eligible entity or any parent company of the 
                        eligible entity that is listed on a national 
                        securities exchange, except to the extent 
                        required under a contractual obligation that is 
                        in effect as of the date of enactment of this 
                        Act;
                            (ii) outsource or offshore jobs to a 
                        location outside of the United States; or
                            (iii) abrogate existing collective 
                        bargaining agreements; and
                    (B) the eligible entity will remain neutral in any 
                union organizing effort.
            (2) Financial protection of government.--
                    (A) In general.--Financial assistance may not be 
                awarded under the program to an eligible entity 
                unless--
                            (i)(I) the eligible entity has issued 
                        securities that are traded on a national 
                        securities exchange; and
                            (II) the Secretary of the Treasury receives 
                        a warrant or equity interest in the eligible 
                        entity; or
                            (ii) in the case of an eligible entity 
                        other than an eligible entity described in 
                        clause (i)(I), the Secretary of the Treasury 
                        receives, in the discretion of the Secretary of 
                        the Treasury--
                                    (I) a warrant or equity interest in 
                                the eligible entity; or
                                    (II) a senior debt instrument 
                                issued by the eligible entity.
                    (B) Terms and conditions.--The terms and conditions 
                of any warrant, equity interest, or senior debt 
                instrument received under subparagraph (A)(ii) shall be 
                set by the Secretary and shall meet the following 
                requirements:
                            (i) Purposes.--Such terms and conditions 
                        shall be designed to provide for reasonable 
                        participation by the Secretary, for the benefit 
                        of taxpayers, in--
                                    (I) equity appreciation in the case 
                                of a warrant or other equity interest; 
                                or
                                    (II) a reasonable interest rate 
                                premium, in the case of a debt 
                                instrument.
                            (ii) Authority to sell, exercise, or 
                        surrender.--
                                    (I) In general.--For the primary 
                                benefit of taxpayers, the Secretary may 
                                sell, exercise, or surrender a warrant 
                                or any senior debt instrument received 
                                under this paragraph.
                                    (II) No voting.--The Secretary 
                                shall not exercise voting power with 
                                respect to any shares of common stock 
                                acquired under this paragraph.
                            (iii) Sufficiency.--If the Secretary 
                        determines that an eligible entity cannot 
                        feasibly issue warrants or other equity 
                        interests as required by this paragraph, the 
                        Secretary may accept a senior debt instrument 
                        in an amount and on such terms as the Secretary 
                        determines appropriate.
    (g) Free, Prior, and Informed Consent for Indigenous Communities in 
the Siting Process.--The Secretary shall establish standards and 
procedural requirements to secure free, prior, and informed consent of 
Indian Tribes to the siting of projects carried out with financial 
assistance under the program that affect Indian land, water, 
livelihoods, and culture, including off-reservation treaty-reserved 
rights to hunting, fishing, gathering, and protection of, and access 
to, sacred sites.
    (h) Prohibition.--In carrying out the program, the Secretary may 
not provide financial assistance for projects that will source 
components of covered energy-efficiency and renewable energy systems 
and technologies from, or supply components of covered energy-
efficiency and renewable energy systems and technologies to, entities 
that use forced labor (as defined in section 307 of the Tariff Act of 
1930 (19 U.S.C. 1307)).
    (i) Study and Report.--Not later than 1 year after the date of 
enactment of this Act, the Secretary shall conduct, and submit to 
Congress a report describing the results of, a study on--
            (1) opportunities to convert fossil fuel infrastructure 
        into renewable energy infrastructure;
            (2) gaps in the current United States manufacturing supply 
        chains for covered energy-efficiency and renewable energy 
        systems and technologies; and
            (3) benefits to the energy security of the United States of 
        onshoring supply chains for covered energy-efficiency and 
        renewable energy systems and technologies.
    (j) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $10,000,000,000 for the period 
of fiscal years 2023 through 2032.

SEC. 7. WEATHERIZATION ASSISTANCE PROGRAM.

    Section 422 of the Energy Conservation and Production Act (42 
U.S.C. 6872) is amended--
            (1) by striking the section designation and heading and all 
        that follows through ``For the'' and inserting the following:

``SEC. 422. APPROPRIATIONS.

    ``For the''; and
            (2) in the matter preceding paragraph (1), by striking 
        ``are authorized to be appropriated--'' and all that follows 
        through the period at the end of paragraph (2) and inserting 
        ``is appropriated, out of any funds in the Treasury not 
        otherwise appropriated, $3,000,000,000 for each of fiscal years 
        2023 through 2032.''.

SEC. 8. PUBLIC HEAT PUMPS.

     In addition to amounts otherwise available, there is appropriated 
for fiscal year 2022, out of any funds in the Treasury not otherwise 
appropriated, $10,000,000,000 to the Secretary of Energy, acting 
through the Office of Energy Efficiency and Renewable Energy, to 
procure and install public heat pumps, to remain available until 
September 30, 2032.

SEC. 9. MINIMUM LABOR STANDARDS.

    (a) Definitions.--In this section:
            (1) Covered entity.--The term ``covered entity'' means an 
        entity that directly or indirectly receives funds or assistance 
        under a covered energy program, without regard to the form, 
        amount, or type of Federal assistance provided.
            (2) Covered energy program.--The term ``covered energy 
        program'' means--
                    (A) a program authorized under this Act; or
                    (B) the Weatherization Assistance Program for Low-
                Income Persons established under part A of title IV of 
                the Energy Conservation and Production Act (42 U.S.C. 
                6861 et seq.).
            (3) Project labor agreement.--The term ``project labor 
        agreement'' means a pre-hire collective bargaining agreement 
        with one or more labor organizations that--
                    (A) establishes the terms and conditions of 
                employment for a specific construction project; and
                    (B) is an agreement described in section 8(f) of 
                the National Labor Relations Act (29 U.S.C. 158(f)).
    (b) Labor Standard Requirements.--Notwithstanding any other 
provision of law, a covered entity shall comply with the labor 
standards under this section.
    (c) Prevailing Wages.--A covered entity shall ensure the following:
            (1) Laborers and mechanics.--Any laborer or mechanic 
        employed by the covered entity, or any contractor or 
        subcontractor in the performance of work funded or assisted, in 
        whole or in part, under a covered energy program, shall be paid 
        wages at rates not less than those prevailing on work of a 
        similar character in the locality, as determined by the 
        Secretary of Labor under subchapter IV of chapter 31 of title 
        40, United States Code (commonly known as the ``Davis-Bacon 
        Act''). With respect to the labor standards in this subsection, 
        the Secretary of Labor shall have the authority and functions 
        set forth in Reorganization Plan Numbered 14 of 1950 (64 Stat. 
        1267; 5 U.S.C. App.) and section 3145 of title 40, United 
        States Code.
            (2) Other workers.--All individuals employed by the covered 
        entity, or any contractor or subcontractor using funds or other 
        assistance provided under a covered energy program, in the 
        manufacture or furnishing of materials, supplies, articles, or 
        equipment shall be paid wages at rates not less than employees 
        performing similar work or in the particular or similar 
        industries or groups of industries currently operating in the 
        locality in which the materials, supplies, articles, or 
        equipment are to be manufactured or furnished, as determined by 
        the Secretary of Labor in accordance with sections 6501 through 
        6511 of title 41, United States Code (commonly known as the 
        ``Public Contracts Act'').
    (d) Labor-Management Cooperation.--
            (1) Definitions.--In this subsection:
                    (A) NLRA definitions.--The terms ``employee'', 
                ``employer'', and ``labor organization'' have the 
                meanings given the terms in section 2 of the National 
                Labor Relations Act (29 U.S.C. 152).
                    (B) Board.--The term ``Board'' means the National 
                Labor Relations Board.
            (2) In general.--Notwithstanding any contrary provision of 
        law, including the National Labor Relations Act (29 U.S.C. 151 
        et seq.), paragraphs (3) through (8) shall apply with respect 
        to any covered entity that is an employer and any labor 
        organization who represents or seeks to represent employees of 
        such covered entity.
            (3) Labor peace.--Any employer that is a covered entity 
        shall recognize for purposes of collective bargaining a labor 
        organization that demonstrates that a majority of the employees 
        in a unit appropriate for bargaining who perform or will 
        perform work funded or assisted, in whole or in part, by a 
        covered energy program have signed valid authorizations 
        designating the labor organization as their bargaining 
        representative and that no other labor organization is 
        currently certified or recognized as the exclusive 
        representative of any of the employees in the unit pursuant to 
        the National Labor Relations Act (29 U.S.C. 151 et seq.). Upon 
        such showing of majority status, the employer shall notify the 
        labor organization and the Board that the employer has 
        determined that the labor organization represents a majority of 
        the employees and that the employer is recognizing the labor 
        organization as the exclusive representative of the employees 
        for the purposes of collective bargaining pursuant to section 9 
        of such Act (29 U.S.C. 159).
            (4) Certification.--Should a dispute over majority status 
        or the appropriateness of the unit arise between the employer 
        and the labor organization, either party may request that the 
        Board investigate and resolve the dispute. If the Board finds 
        that a majority of the employees in a unit appropriate for 
        bargaining has signed valid authorizations designating the 
        labor organization as their bargaining representative and that 
        no other individual or labor organization is currently 
        certified or recognized as the exclusive representative of any 
        of the employees in the unit, the Board shall not direct an 
        election but shall certify the labor organization as the 
        representative described in section 9(a) of the National Labor 
        Relations Act (29 U.S.C. 159(a)).
            (5) Commencement of bargaining.--Not later than 10 days 
        after receiving a written request for collective bargaining 
        from a recognized or certified labor organization, or within 
        such period as the parties agree upon, the labor organization 
        and employer shall meet and commence to bargain collectively 
        and shall make every reasonable effort to conclude and sign a 
        collective bargaining agreement.
            (6) Mediation.--If after the expiration of the 90-day 
        period beginning on the date on which bargaining is commenced, 
        or such additional period as the parties may agree upon, the 
        parties have failed to reach an agreement, either party may 
        notify the Federal Mediation and Conciliation Service of the 
        existence of a dispute and request mediation. Whenever such a 
        request is received, it shall be the duty of the Service 
        promptly to put itself in communication with the parties and to 
        use its best efforts, by mediation and conciliation, to bring 
        them to agreement.
            (7) Arbitration.--If after the expiration of the 30-day 
        period beginning on the date on which the request for mediation 
        is made under paragraph (6), or such additional period as the 
        parties may agree upon, the Federal Mediation and Conciliation 
        Service is not able to bring the parties to agreement by 
        conciliation, the Service shall refer the dispute to a 
        tripartite arbitration panel established in accordance with 
        such regulations as may be prescribed by the Service, with one 
        member selected by the labor organization, one member selected 
        by the employer, and one neutral member mutually agreed to by 
        the parties. The labor organization and employer must each 
        select the members of the tripartite arbitration panel within 
        14 days of the Service's referral; if the labor organization or 
        employer fail to do so, the Service shall designate any members 
        not selected by the labor organization or the employer. A 
        majority of the tripartite arbitration panel shall render a 
        decision settling the dispute as soon as practicable and not 
        later than within 120 days of the selection of all members of 
        the panel, absent extraordinary circumstances or by agreement 
        or permission of the parties, and such decision shall be 
        binding upon the parties for a period of 2 years, unless 
        amended during such period by written consent of the parties. 
        Such decision shall be based on--
                    (A) the employer's financial status and prospects;
                    (B) the size and type of the employer's operations 
                and business;
                    (C) the employees' cost of living;
                    (D) the employees' ability to sustain themselves, 
                their families, and their dependents on the wages and 
                benefits they earn from the employer; and
                    (E) the wages and benefits other employers in the 
                same business provide their employees.
            (8) Contractors and subcontractors.--Any employer that is a 
        covered entity shall require any contractor or subcontractor 
        whose employees perform or will perform work funded or 
        assisted, in whole or in part, by a covered energy program to 
        comply with the requirements set forth in paragraphs (2) 
        through (7).
    (e) Project Labor Agreement.--A covered entity performing any 
construction project funded or assisted, in whole or in part, by a 
covered energy program shall be a party to, or, as applicable, require 
contractors and subcontractors in the performance of such project to be 
a party to, a project labor agreement.
    (f) Limits on Background Checks.--A covered entity, and each 
contractor and subcontractor in the performance of any work funded or 
assisted, in whole or in part, by a covered energy program, shall not 
request or otherwise consider the criminal history of an applicant for 
employment before extending a conditional offer to the applicant, 
unless--
            (1) a background check is otherwise required by law;
            (2) the position is for a Federal law enforcement officer 
        (as defined in section 115(c) of title 18, United States Code) 
        position; or
            (3) the Secretary of Labor, in consultation with the 
        Secretary of Energy, certifies that precluding criminal history 
        prior to the conditional offer would pose a threat to national 
        security.
    (g) Employee Status.--A covered entity, and each contractor and 
subcontractor of the covered entity in the performance of any project 
funded or assisted, in whole or in part, by a covered energy program, 
shall consider an individual performing any service in such performance 
as an employee (and not an independent contractor) of the covered 
entity, contractor, or subcontractor, respectively, unless--
            (1) 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;
            (2) the service is performed outside the usual course of 
        the business of the covered entity, contractor, or 
        subcontractor, respectively; and
            (3) the individual is customarily engaged in an 
        independently established trade, occupation, profession, or 
        business of the same nature as that involved in such service.

SEC. 10. EQUITABLE ALLOCATION OF FUNDS.

    The President and the Secretary of Energy shall each ensure that of 
the total amount of Federal support and assistance provided under this 
Act by the President and the Secretary of Energy, respectively, not 
less than 40 percent shall be invested in environmental justice 
communities.
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