II 117th CONGRESS 2d Session S. 4566 IN THE SENATE OF THE UNITED STATES July 20, 2022 Ms. Cortez Masto (for herself and Mr. Luján ) introduced the following bill; which was read twice and referred to the Committee on Energy and Natural Resources A BILL To amend the Energy Independence and Security Act of 2007 to establish a regional clean energy innovation program, and for other purposes.

1. Short title This Act may be cited as the Regional Clean Energy Innovation Act of 2022 . 2. Regional Clean Energy Innovation Program (a) In general Subtitle C of title IX of the Energy Independence and Security Act of 2007 ( 42 U.S.C. 17371 et seq. ) is amended by adding at the end the following: 936. Regional Clean Energy Innovation Program (a) Definitions In this section: (1) Covered entity The term covered entity means any of the following: (A) An institution of higher education or a consortium of institutions of higher education. (B) A workforce training provider, including a vocational school and community college. (C) A private sector entity or group of private sector entities, including a trade or industry association. (D) A nonprofit organization. (E) A community group. (F) A labor group. (G) A National Laboratory. (H) A venture development organization. (I) A community development financial institution. (J) A minority depository institution. (K) A worker cooperative membership association. (L) A State or local employee ownership or cooperative development center. (M) An organization focused on clean energy technology innovation or entrepreneurship. (N) A business accelerator or incubator. (O) An economic development organization. (P) A manufacturing facility or organization. (Q) A clean energy incubator or clean energy accelerator. (R) A multi-institutional collaboration of at least 3 institutions. (S) Any other entity that the Secretary determines to be relevant. (2) Eligible entity The term eligible entity means— (A) a partnership of not less than 2 covered entities; and (B) a regional clean energy innovation partnership in existence as of the date of enactment of the Regional Clean Energy Innovation Act of 2022 . (3) Program The term program means the Regional Clean Energy Innovation Program established under subsection (b). (4) Regional clean energy innovation partnership The term regional clean energy innovation partnership means a partnership— (A) among— (i) a government entity, including a unit of State, local, or Tribal government; and (ii) not less than 2 covered entities; and (B) that carries out or coordinates activities or programs that further the purposes of the program described in subsection (c), including the activities described in subsection (f). (b) Establishment The Secretary shall establish a research, development, demonstration, and commercial application program, to be known as the Regional Clean Energy Innovation Program , to enhance the economic, environmental, and energy security of the United States and accelerate the pace of innovation of diverse clean energy technologies through the formation of new, or support of existing, regional clean energy innovation partnerships that— (1) account for the diverse domestic energy resources available in the United States; (2) are responsive to the needs of industry, workforce, policy landscape, and clean energy innovation capabilities of the region served by a regional clean energy innovation partnership; (3) enhance and accelerate clean energy innovation; (4) are located in diverse geographic regions of the United States, including United States territories; and (5) maximize the opportunities for cooperation between institutions of higher education, industry, State and local governments, and nonprofit research institutions with shared areas of energy expertise. (c) Purposes The purposes of the program are— (1) to improve the competitiveness of the United States in clean energy technology research, development, demonstration, and commercial application; and (2) to support the development of clean energy tools and technologies best suited for use in diverse regions of the United States, including in rural, tribal, and low-income communities. (d) Grants (1) In general Under the program, the Secretary shall competitively award grants to— (A) eligible entities described in subsection (a)(2)(A) to establish new regional clean energy innovation partnerships; and (B) eligible entities described in subsection (a)(2)(B) to support ongoing activities of those eligible entities, in accordance with the requirements of the program. (2) Grant amount The amount of a grant awarded to an eligible entity under the program in a calendar year— (A) shall not exceed $10,000,000; and (B) shall be, subject to a waiver by the Secretary, less than the amount of a grant awarded to the eligible entity under the program the previous calendar year, if applicable. (3) Administrative costs The Secretary may allow an eligible entity awarded a grant under the program to allocate a portion of the grant funds for administrative or indirect costs. (4) Non-federal cost share In the case of a grant awarded under the program that has a term of 3 or more years, the Secretary shall require, as a condition of receipt of the grant funds, that the non-Federal share of the cost of activities carried out using the grant funds shall be not less than 50 percent of the cost of the activities during the third, fourth, and fifth year of the grant, as applicable. (5) Duration (A) In general The term of a grant awarded under the program shall not exceed 5 years. (B) Renewal A grant awarded to an eligible entity under the program may be renewed for a period of not more than 5 years, subject to a rigorous merit review based on the progress of the regional clean energy innovation partnership in achieving the purposes of the program described in subsection (c) and the metrics developed under subsection (h)(2). (6) Termination The Secretary may terminate grant funding under the program to an eligible entity during the performance period if the Secretary determines that the applicable regional clean energy innovation partnership is underperforming. (e) Applications (1) In general An eligible entity shall submit to the Secretary an application to receive a grant under the program at such time, in such manner, and containing such information as the Secretary may require, including— (A) a list of members of the proposed or existing regional clean energy innovation partnership, the roles of those members, and any other relevant stakeholders; (B) a description of— (i) the geographical region served, or to be served, by the regional clean energy innovation partnership; (ii) (I) the activities that the proposed or existing regional clean energy innovation partnership intends to undertake; and (II) the manner in which those activities will achieve the purposes of the program described in subsection (c) and the proposed outcomes described in clause (iii); and (iii) the proposed outcomes of the regional clean energy innovation partnership; (C) an assessment of— (i) the relevant clean energy innovation assets needed in the geographical region identified under subparagraph (B)(i) to achieve the proposed outcomes described in subparagraph (B)(iii), such as education and training programs, research facilities, infrastructure or site development, access to capital, manufacturing capabilities, or other assets; and (ii) the clean energy resource potential of that geographical region; (D) a plan for attracting additional funds, including identification of non-Federal funding sources, to deliver the proposed outcomes described in subparagraph (B)(iii); (E) a plan for partnering and collaborating with community development financial institutions, minority depository institutions, labor and community groups, worker cooperative membership associations, local and State employee ownership and cooperative development centers, and other local institutions— (i) to promote employee, community, and public ownership in the clean energy sector; and (ii) to advance models of local economic development that build and retain wealth in the region; (F) a plan for sustaining the activities of the regional clean energy innovation partnership after funds received under the program have been expended; and (G) a proposed budget, including financial contributions from non-Federal sources. (2) Selection considerations In awarding grants under the program, the Secretary shall, to the maximum extent practicable— (A) give special consideration to applications from eligible entities located in rural, tribal, and low-income communities; and (B) ensure geographic diversity among the eligible entities awarded grants. (f) Permissible activities Activities that may be carried out by a regional clean energy innovation partnership established or supported using a grant awarded under the program shall include— (1) facilitating the commercial application of clean energy products, processes, and services, including through research, development, demonstration, or technology transfer; (2) improving strategic and cost-effective coordination among the partners of the regional clean energy innovation partnership; (3) improving stakeholder involvement in developing the goals and activities of the regional clean energy innovation partnership; (4) assessing different incentive mechanisms for clean energy development and commercial application in the region served by the regional clean energy innovation partnership; (5) hosting events and conferences; (6) establishing and updating roadmaps to measure progress on relevant goals, including goals relevant to metrics developed under subsection (h)(2); and (7) any other activity determined appropriate by the Secretary to achieve the purposes of the program described in subsection (c). (g) Planning awards The Secretary may competitively award grants to a covered entity or a government entity, including a State, local, or tribal government, or unit of such government, in an amount not greater than $2,000,000, for a term of not more than 2 years, to conduct planning for the purpose of establishing a regional clean energy innovation partnership. (h) Administration (1) Best practices As part of the program, the Secretary shall support the gathering, analysis, and dissemination of information on best practices for developing and operating successful regional clean energy innovation partnerships. (2) Metrics The Secretary shall collaborate with program evaluation experts to develop and make publicly available metrics by which to measure the progress of a regional clean energy innovation partnership in achieving the purposes of the program described in subsection (c), including, as a result of activities carried out under the regional clean energy innovation partnership— (A) the number and quality of— (i) new clean energy companies created in the region, including clean energy companies created or preserved through employee ownership and cooperative development; (ii) new or expanded workforce development or training programs in the region; and (iii) support services provided to clean energy technology developers in the region; (B) changes in clean energy employment in the region; (C) the amount of capital investment in clean energy companies in the region; and (D) the completion of new or updated clean energy resource assessments in the region. (3) Coordination In carrying out the program, the Secretary shall coordinate with, and avoid unnecessary duplication of— (A) activities under other research entities of the Department, including the National Laboratories, the Office of Science, the Advanced Research Projects Agency—Energy, the Office of Technology Transitions, Energy Innovation Hubs, and Energy Frontier Research Centers; and (B) relevant programs at other Federal agencies, including— (i) programs under the Office of Innovation and Entrepreneurship of the Economic Development Administration; (ii) the regional innovation program established under section 27 of the Stevenson-Wydler Technology Innovation Act of 1980 ( 15 U.S.C. 3722 ); (iii) the Hollings Manufacturing Extension Partnership established under section 25 of the National Institute of Standards and Technology Act ( 15 U.S.C. 278k ); (iv) the Manufacturing USA Program established under section 34 of the National Institute of Standards and Technology Act ( 15 U.S.C. 278s ); (v) the Defense Manufacturing Community Support Program established under section 846 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 ( 10 U.S.C. 2501 note; Public Law 115–232 ); (vi) the Office of Economic Adjustment of the Department of Defense; (vii) programs under the rural development mission area of the Department of Agriculture; and (viii) programs under the energy and mineral resources mission area of the Department of the Interior. (4) Conflicts of interest In carrying out the program, the Secretary shall maintain conflict of interest procedures consistent with the conflict of interest procedures of the Department. (i) Reports and plan (1) Annual Report As part of the annual budget of the Department submitted to Congress for a fiscal year, the Secretary shall annually submit to Congress a report that describes the activities carried out by each regional clean energy innovation partnership established or supported using grants awarded under the program during the fiscal year covered by the report. (2) Strategic Plan Not later than 1 year after the date of enactment of the Regional Clean Energy Innovation Act of 2022 , and not less frequently than once every 5 years thereafter, the Secretary shall submit to Congress a 5-year strategic plan describing how the Secretary shall utilize regional clean energy innovation partnerships to deploy clean energy technologies. (3) Evaluation by Comptroller General Not later than 3 years after the date of enactment of the Regional Clean Energy Innovation Act of 2022 , and every 3 years thereafter, the Comptroller General of the United States shall submit to the Committee on Science, Space, and Technology of the House of Representatives and the Committee on Energy and Natural Resources of the Senate an evaluation of the operation of the program during the most recent 3-year period, including— (A) an assessment of the progress made in achieving the purposes described in subsection (c) based on the metrics developed under subsection (h)(2); (B) the short-term and long-term metrics used to determine the success of the program under subsection (h)(2), and any recommended changes to those metrics; (C) the regional clean energy innovation partnerships established or supported by grants received under the program; and (D) any recommendations for improvement to the program. (j) Security In carrying out this section, the Secretary shall ensure that proper security controls are in place to protect sensitive information, as appropriate. (k) Funding (1) Authorization of appropriations There is authorized to be appropriated to the Secretary to carry out this section $50,000,000 for each of fiscal years 2022 through 2026. (2) Additional funding The Secretary may accept funds from other Federal agencies to support funding and activities under the program. (3) No funds for construction None of the funds made available to carry out the program may be used for construction. . (b) Clerical amendment The table of contents in section 1(b) of the Energy Independence and Security Act of 2007 ( Public Law 110–140 ; 121 Stat. 1497) is amended by adding at the end of the items relating to subtitle C of title IX the following: Sec. 936. Regional Clean Energy Innovation Program. .