II 117th CONGRESS 1st Session S. 3066 IN THE SENATE OF THE UNITED STATES October 26, 2021 Ms. Cortez Masto (for herself and Mr. King ) introduced the following bill; which was read twice and referred to the Committee on Energy and Natural Resources A BILL To require the Secretary of Energy to establish a battery material processing grant program and a battery manufacturing and recycling grant program, and for other purposes.

1. Short title This Act may be cited as the Battery Material Processing and Component Manufacturing Act of 2021 . 2. Battery material processing and battery manufacturing and recycling grants (a) Definitions In this section: (1) Advanced battery The term advanced battery means a battery that consists of a battery cell that can be integrated into a module, pack, or system to be used in energy storage applications, including electric vehicles and the electric grid. (2) Advanced battery component (A) In general The term advanced battery component means a component of an advanced battery. (B) Inclusions The term advanced battery component includes materials, enhancements, enclosures, anodes, cathodes, electrolytes, cells, and other associated technologies that comprise an advanced battery. (3) Battery material The term battery material means the raw and processed form of a mineral, metal, chemical, or other material used in an advanced battery component. (4) Eligible entity The term eligible entity means an entity described in any of paragraphs (1) through (5) of section 989(b) of the Energy Policy Act of 2005 ( 42 U.S.C. 16353(b) ). (5) Foreign entity of concern The term foreign entity of concern means a foreign entity that is— (A) designated as a foreign terrorist organization by the Secretary of State under section 219(a) of the Immigration and Nationality Act ( 8 U.S.C. 1189(a) ); (B) included on the list of specially designated nationals and blocked persons maintained by the Office of Foreign Assets Control of the Department of the Treasury (commonly known as the SDN list ); (C) owned by, controlled by, or subject to the jurisdiction or direction of a government of a foreign country that is a covered nation (as defined in section 2533c(d) of title 10, United States Code); (D) alleged by the Attorney General to have been involved in activities for which a conviction was obtained under— (i) chapter 37 of title 18, United States Code (commonly known as the Espionage Act ); (ii) section 951 or 1030 of title 18, United States Code; (iii) chapter 90 of title 18, United States Code (commonly known as the Economic Espionage Act of 1996 ); (iv) the Arms Export Control Act ( 22 U.S.C. 2751 et seq. ); (v) section 224, 225, 226, 227, or 236 of the Atomic Energy Act of 1954 ( 42 U.S.C. 2274 , 2275, 2276, 2277, and 2284); (vi) the Export Control Reform Act of 2018 ( 50 U.S.C. 4801 et seq. ); or (vii) the International Emergency Economic Powers Act ( 50 U.S.C. 1701 et seq. ); or (E) determined by the Secretary, in consultation with the Secretary of Defense and the Director of National Intelligence, to be engaged in unauthorized conduct that is detrimental to the national security or foreign policy of the United States. (6) Indian Tribe The term Indian Tribe has the meaning given the term in section 4 of the Indian Self-Determination and Education Assistance Act ( 25 U.S.C. 5304 ). (7) Manufacturing The term manufacturing , with respect to an advanced battery and an advanced battery component, means the industrial and chemical steps taken to produce that advanced battery or advanced battery component, respectively. (8) Processing The term processing , with respect to battery material, means the refining of materials, including the treating, baking, and coating processes used to convert raw products into constituent materials employed directly in advanced battery manufacturing. (9) Recycling The term recycling means the recovery of materials from advanced batteries to be reused in similar applications, including the extracting, processing, and recoating of battery materials and advanced battery components. (10) Secretary The term Secretary means the Secretary of Energy. (b) Battery material processing grants (1) In general Not later than 180 days after the date of enactment of this Act, the Secretary shall establish within the Office of Fossil Energy a program, to be known as the Battery Material Processing Grant Program (referred to in this subsection as the program ), under which the Secretary shall award grants in accordance with this subsection. (2) Purposes The purposes of the program are— (A) to ensure that the United States has a viable battery materials processing industry to supply the North American battery supply chain; (B) to expand the capabilities of the United States in advanced battery manufacturing; (C) to enhance national security by reducing the reliance of the United States on foreign competitors for critical materials and technologies; and (D) to enhance the domestic processing capacity of minerals necessary for battery materials and advanced batteries. (3) Grants (A) In general Under the program, the Secretary shall award grants to eligible entities— (i) to carry out 1 or more demonstration projects in the United States for the processing of battery materials; (ii) to construct 1 or more new commercial-scale battery material processing facilities in the United States; and (iii) to retool, retrofit, or expand 1 or more existing battery material processing facilities located in the United States and determined qualified by the Secretary. (B) Amount limitation The amount of a grant awarded under the program shall be not less than— (i) $50,000,000 for an eligible entity carrying out 1 or more projects described in subparagraph (A)(i); (ii) $100,000,000 for an eligible entity carrying out 1 or more projects described in subparagraph (A)(ii); and (iii) $50,000,000 for an eligible entity carrying out 1 or more projects described in subparagraph (A)(iii). (C) Priority; consideration In awarding grants to eligible entities under the program, the Secretary shall— (i) give priority to an eligible entity that— (I) is located and operates in the United States; (II) is owned by a United States entity; (III) deploys North American-owned intellectual property and content; (IV) represents consortia or industry partnerships; and (V) will not use battery material supplied by or originating from a foreign entity of concern; and (ii) take into consideration whether a project— (I) provides workforce opportunities in low- and moderate-income communities; (II) encourages partnership with universities and laboratories to spur innovation and drive down costs; (III) partners with Indian Tribes; and (IV) takes into account— (aa) greenhouse gas emissions reductions and energy efficient battery material processing opportunities throughout the manufacturing process; and (bb) supply chain logistics. (4) Authorization of appropriations There is authorized to be appropriated to the Secretary to carry out the program $3,000,000,000 for the period of fiscal years 2022 through 2026, to remain available until expended. (c) Battery manufacturing and recycling grants (1) In general Not later than 180 days after the date of enactment of this Act, the Secretary shall establish within the Office of Energy Efficiency and Renewable Energy a battery manufacturing and recycling grant program (referred to in this subsection as the program ). (2) Purpose The purpose of the program is to ensure that the United States has a viable domestic manufacturing and recycling capability to support and sustain a North American battery supply chain. (3) Grants (A) In general Under the program, the Secretary shall award grants to eligible entities— (i) to carry out 1 or more demonstration projects for advanced battery component manufacturing, advanced battery manufacturing, and recycling; (ii) to construct 1 or more new commercial-scale advanced battery component manufacturing, advanced battery manufacturing, or recycling facilities in the United States; and (iii) to retool, retrofit, or expand 1 or more existing facilities located in the United States and determined qualified by the Secretary for advanced battery component manufacturing, advanced battery manufacturing, and recycling. (B) Amount limitation The amount of a grant awarded under the program shall be not less than— (i) $50,000,000 for an eligible entity carrying out 1 or more projects described in subparagraph (A)(i); (ii) $100,000,000 for an eligible entity carrying out 1 or more projects described in subparagraph (A)(ii); and (iii) $50,000,000 for an eligible entity carrying out 1 or more projects described in subparagraph (A)(iii). (C) Priority; consideration In awarding grants to eligible entities under the program, the Secretary shall— (i) give priority to an eligible entity that— (I) is located and operates in the United States; (II) is owned by a United States entity; (III) deploys North American-owned intellectual property and content; (IV) represents consortia or industry partnerships; and (V) (aa) if the eligible entity will use the grant for advanced battery component manufacturing, will not use battery material supplied by or originating from a foreign entity of concern; or (bb) if the eligible entity will use the grant for battery recycling, will not export recovered critical materials to a foreign entity of concern; and (ii) take into consideration whether a project— (I) provides workforce opportunities in low- and moderate-income or rural communities; (II) provides workforce opportunities in communities that have lost jobs due to the displacements of fossil energy jobs; (III) encourages partnership with universities and laboratories to spur innovation and drive down costs; (IV) partners with Indian Tribes; (V) takes into account— (aa) greenhouse gas emissions reductions and energy efficient battery material processing opportunities throughout the manufacturing process; and (bb) supply chain logistics; and (VI) utilizes feedstock produced in the United States. (4) Authorization of appropriations There is authorized to be appropriated to the Secretary to carry out the program $3,000,000,000 for the period of fiscal years 2022 through 2026, to remain available until expended. (d) Reporting requirements Not later than 1 year after the date of enactment of this Act, and annually thereafter, the Secretary shall submit to Congress a report on the grant programs established under subsections (b) and (c), including, with respect to each grant program, a description of— (1) the number of grant applications received; (2) the number of grants awarded and the amount of each award; (3) the purpose and status of each project carried out using a grant; and (4) any other information the Secretary determines necessary.