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Title II — Industrial efficiency and competitiveness

S. 2074 · 113th Congress · Feb 27, 2014 · Lineage

II Industrial efficiency and competitiveness

A Manufacturing energy efficiency

Sec. 201 Purposes

The purposes of this subtitle are—
(1)
to reform and reorient the industrial efficiency programs of the Department of Energy;
(2)
to establish a clear and consistent authority for industrial efficiency programs of the Department;
(3)
to accelerate the deployment of technologies and practices that will increase industrial energy efficiency and improve productivity;
(4)
to accelerate the development and demonstration of technologies that will assist the deployment goals of the industrial efficiency programs of the Department and increase manufacturing efficiency;
(5)
to stimulate domestic economic growth and improve industrial productivity and competitiveness; and
(6)
to strengthen partnerships between Federal and State governmental agencies and the private and academic sectors.

Sec. 202 Future of Industry program

(a)
In general— Section 452 of the Energy Independence and Security Act of 2007 (42 U.S.C. 17111) is amended by striking the section heading and inserting the following: “Future of Industry program”.
(b)
Definition of energy service provider— Section 452(a) of the Energy Independence and Security Act of 2007 (42 U.S.C. 17111(a)) is amended—
(1)
by redesignating paragraphs (3) through (5) as paragraphs (4) through (6), respectively; and
(2)
by inserting after paragraph (2):

“(3) Energy service provider—The term energy service provider means any business providing technology or services to improve the energy efficiency, power factor, or load management of a manufacturing site or other industrial process in an energy-intensive industry, or any utility operating under a utility energy service project.”

(c)
Industrial research and assessment centers— Section 452(e) of the Energy Independence and Security Act of 2007 (42 U.S.C. 17111(e)) is amended—
(1)
by redesignating paragraphs (1) through (5) as subparagraphs (A) through (E), respectively, and indenting appropriately;
(2)
by striking “The Secretary” and inserting the following:

“(1) In general—The Secretary”

(3)
in subparagraph (A) (as redesignated by paragraph (1)), by inserting before the semicolon at the end the following: “, including assessments of sustainable manufacturing goals and the implementation of information technology advancements for supply chain analysis, logistics, system monitoring, industrial and manufacturing processes, and other purposes”; and
(4)
by adding at the end the following:

“(2) Coordination

“(A) In general—To increase the value and capabilities of the industrial research and assessment centers, the centers shall—

“(i) coordinate with Manufacturing Extension Partnership Centers of the National Institute of Standards and Technology;

“(ii) coordinate with the Building Technologies Program of the Department of Energy to provide building assessment services to manufacturers;

“(iii) increase partnerships with the National Laboratories of the Department of Energy to leverage the expertise and technologies of the National Laboratories for national industrial and manufacturing needs;

“(iv) increase partnerships with energy service providers and technology providers to leverage private sector expertise and accelerate deployment of new and existing technologies and processes for energy efficiency, power factor, and load management;

“(v) identify opportunities for reducing greenhouse gas emissions; and

“(vi) promote sustainable manufacturing practices for small- and medium-sized manufacturers.

“(3) Outreach—The Secretary shall provide funding for—

“(A) outreach activities by the industrial research and assessment centers to inform small- and medium-sized manufacturers of the information, technologies, and services available; and

“(B) coordination activities by each industrial research and assessment center to leverage efforts with—

“(i) Federal and State efforts;

“(ii) the efforts of utilities and energy service providers;

“(iii) the efforts of regional energy efficiency organizations; and

“(iv) the efforts of other industrial research and assessment centers.

“(4) Workforce training

“(A) In general—The Secretary shall pay the Federal share of associated internship programs under which students work with or for industries, manufacturers, and energy service providers to implement the recommendations of industrial research and assessment centers.

“(B) Federal share—The Federal share of the cost of carrying out internship programs described in subparagraph (A) shall be 50 percent.

“(5) Small business loans—The Administrator of the Small Business Administration shall, to the maximum extent practicable, expedite consideration of applications from eligible small business concerns for loans under the Small Business Act (15 U.S.C. 631 et seq.) to implement recommendations of industrial research and assessment centers established under paragraph (1).

“(6) Advanced manufacturing steering committee—The Secretary shall establish an advisory steering committee to provide recommendations to the Secretary on planning and implementation of the Advanced Manufacturing Office of the Department of Energy.”

Sec. 203 Sustainable manufacturing initiative

(a)
In general— Part E of title III of the Energy Policy and Conservation Act (42 U.S.C. 6341) is amended by adding at the end the following:

“376. Sustainable manufacturing initiative

“(a) In general—As part of the Office of Energy Efficiency and Renewable Energy, the Secretary, on the request of a manufacturer, shall conduct onsite technical assessments to identify opportunities for—

“(1) maximizing the energy efficiency of industrial processes and cross-cutting systems;

“(2) preventing pollution and minimizing waste;

“(3) improving efficient use of water in manufacturing processes;

“(4) conserving natural resources; and

“(5) achieving such other goals as the Secretary determines to be appropriate.

“(b) Coordination—The Secretary shall carry out the initiative in coordination with the private sector and appropriate agencies, including the National Institute of Standards and Technology, to accelerate adoption of new and existing technologies and processes that improve energy efficiency.

“(c) Research and development program for sustainable manufacturing and industrial technologies and processes—As part of the industrial efficiency programs of the Department of Energy, the Secretary shall carry out a joint industry-government partnership program to research, develop, and demonstrate new sustainable manufacturing and industrial technologies and processes that maximize the energy efficiency of industrial plants, reduce pollution, and conserve natural resources.”

(b)
Table of contents— The table of contents of the Energy Policy and Conservation Act (42 U.S.C. prec. 6201) is amended by adding at the end of the items relating to part E of title III the following:

Sec. 204 Conforming amendments

(a)
Section 106 of the Energy Policy Act of 2005 (42 U.S.C. 15811) is repealed.
(b)
Sections 131, 132, 133, 2103, and 2107 of the Energy Policy Act of 1992 (42 U.S.C. 6348, 6349, 6350, 13453, 13456) are repealed.
(c)
Section 2101(a) of the Energy Policy Act of 1992 (42 U.S.C. 13451(a)) is amended in the third sentence by striking “sections 2102, 2103, 2104, 2105, 2106, 2107, and 2108” and inserting “sections 2102, 2104, 2105, 2106, and 2108 of this Act and section 376 of the Energy Policy and Conservation Act,”.

B Supply Star

Sec. 211 Supply Star

The Energy Policy and Conservation Act is amended by inserting after section 324A (42 U.S.C. 6294a) the following:

“324B. Supply Star Program

“(a) In general—There is established within the Department of Energy a Supply Star program to identify and promote practices, recognize companies, and, as appropriate, recognize products that use highly efficient supply chains in a manner that conserves energy, water, and other resources.

“(b) Coordination—In carrying out the program described in subsection (a), the Secretary shall—

“(1) consult with other appropriate agencies; and

“(2) coordinate efforts with the Energy Star program established under section 324A.

“(c) Duties—In carrying out the Supply Star program described in subsection (a), the Secretary shall—

“(1) promote practices, recognize companies, and, as appropriate, recognize products that comply with the Supply Star program as the preferred practices, companies, and products in the marketplace for maximizing supply chain efficiency;

“(2) work to enhance industry and public awareness of the Supply Star program;

“(3) collect and disseminate data on supply chain energy resource consumption;

“(4) develop and disseminate metrics, processes, and analytical tools (including software) for evaluating supply chain energy resource use;

“(5) develop guidance at the sector level for improving supply chain efficiency;

“(6) work with domestic and international organizations to harmonize approaches to analyzing supply chain efficiency, including the development of a consistent set of tools, templates, calculators, and databases; and

“(7) work with industry, including small businesses, to improve supply chain efficiency through activities that include—

“(A) developing and sharing best practices; and

“(B) providing opportunities to benchmark supply chain efficiency.

“(d) Evaluation—In any evaluation of supply chain efficiency carried out by the Secretary with respect to a specific product, the Secretary shall consider energy consumption and resource use throughout the entire lifecycle of a product, including production, transport, packaging, use, and disposal.

“(e) Grants and Incentives

“(1) In general—The Secretary may award grants or other forms of incentives on a competitive basis to eligible entities, as determined by the Secretary, for the purposes of—

“(A) studying supply chain energy resource efficiency; and

“(B) demonstrating and achieving reductions in the energy resource consumption of commercial products through changes and improvements to the production supply and distribution chain of the products.

“(2) Use of information—Any information or data generated as a result of the grants or incentives described in paragraph (1) shall be used to inform the development of the Supply Star Program.

“(f) Training—The Secretary shall use funds to support professional training programs to develop and communicate methods, practices, and tools for improving supply chain efficiency.

“(g) Effect of outsourcing of American jobs—For purposes of this section, the outsourcing of American jobs in the production of a product shall not count as a positive factor in determining supply chain efficiency.

“(h) Authorization of Appropriations—There is authorized to be appropriated to carry out this section $10,000,000 for the period of fiscal years 2014 through 2023.”

C Electric motor rebate program

Sec. 221 Energy saving motor control, electric motor, and advanced motor systems rebate program

(a)
Definitions— In this section:
(1)
Advanced motor and drive system— The term advanced motor and drive system means an electric motor and any required associated electronic control that—
(A)
offers variable or multiple speed operation;
(B)
offers efficiency at a rated full load that is greater than the efficiency described for the equivalent rating in—
(i)
table 12–12 of National Electrical Manufacturers Association (NEMA MG 1–2011); or
(ii)
section 431.446 of National Electrical Manufacturers Association (2012); and
(C)
uses—
(i)
permanent magnet alternating current synchronous motor technology;
(ii)
electronically commutated motor technology;
(iii)
switched reluctance motor technology;
(iv)
synchronous reluctance motor technology; or
(v)
such other motor that has greater than 1 horsepower and uses a drive systems technology, as determined by the Secretary.
(2)
Electric motor— The term electric motor has the meaning given the term in section 431.12 of title 10, Code of Federal Regulations (as in effect on the date of enactment of this Act).
(3)
Qualified product— The term qualified product means—
(A)
a new constant speed electric motor control that—
(i)
is attached to an electric motor; and
(ii)
reduces the energy use of the electric motor by not less than 5 percent; and
(B)
commercial or industrial machinery or equipment that—
(i)
is manufactured and incorporates an advanced motor and drive system that has greater than 1 horsepower into a redesigned machine or equipment that did not previously make use of the advanced motor and drive system; or
(ii)
was previously used and placed back into service in calendar year 2014 or 2015 that upgrades the existing machine or equipment with an advanced motor and drive system.
(b)
Establishment— Not later than 90 days after the date of enactment of this Act, the Secretary shall establish a program to provide rebates for expenditures made by qualified entities for the purchase and installation of qualified products.
(c)
Qualified entities— A qualified entity under this section shall be—
(1)
in the case of a qualified product described in subsection (a)(3)(A), the purchaser of the qualified product for whom the qualified product is installed; and
(2)
in the case of a qualified product described in subsection (a)(3)(B)), the manufacturer of the machine or equipment that incorporated the advanced motor and drive system into the machine or equipment.
(d)
Requirements—
(1)
Application— To be eligible to receive a rebate under this section, a qualified entity shall submit to the Secretary or an entity designated by the Secretary an application and certification in such form, at such time, and containing such information as the Secretary may require, including demonstrated evidence that the qualified entity purchased a qualified product and—
(A)
in the case of a qualified product described in subsection (a)(3)(A)—
(i)
demonstrated evidence that the qualified entity installed the qualified product in calendar year 2014 or 2015;
(ii)
demonstrated evidence that the qualified product reduces motor energy use by not less than 5 percent, in accordance with procedures approved by the Secretary; and
(iii)
the serial number, manufacturer, and model number from the nameplate of the installed motor of the qualified entity on which the qualified product was installed; and
(B)
in the case of a qualified product described in subsection (a)(3)(B)—
(i)
demonstrated evidence that the manufacturer—
(I)
redesigned a machine or equipment of a manufacturer that did not previously make use of an advanced motor and drive system; or
(II)
upgraded a used machine or equipment to incorporate an advanced motor and drive system;
(ii)
demonstrated evidence that the qualified product was sold, installed, or placed back into service in calendar year 2014 or 2015; and
(iii)
the serial number, manufacturer, and model number from the nameplate of the installed motor of the qualified entity with which the advanced motor and drive system is integrated.
(2)
Authorized amount of rebate— The Secretary may provide to a qualified entity that has satisfied the requirements of paragraph (1) a rebate the amount of which shall be equal to the product obtained by multiplying—
(A)
the nameplate rated horsepower of—
(i)
the electric motor to which the new constant speed electric motor control is attached;
(ii)
the new electric motor that replaced a previously installed electric motor; or
(iii)
the advanced electric motor control system; and
(B)
$25.
(3)
Maximum aggregate amount— No entity shall be entitled to aggregate rebates under this section in excess of $250,000.
(e)
Authorization of appropriations— There is authorized to be appropriated to carry out this section $5,000,000 for each of fiscal years 2014 and 2015, to remain available until expended.

D Transformer rebate program

Sec. 231 Energy efficient transformer rebate program

(a)
Definition of qualified transformer— In this section, the term qualified transformer means a transformer that meets or exceeds the National Electrical Manufacturers Association (NEMA) Premium Efficiency designation, calculated to 2 decimal points, as having 30 percent fewer losses than the NEMA TP–1–2002 efficiency standard for a transformer of the same number of phases and capacity, as measured in kilovolt-amperes.
(b)
Establishment— Not later than January 1, 2014, the Secretary shall establish a program under which rebates are provided for expenditures made by owners of industrial or manufacturing facilities, commercial buildings, and multifamily residential buildings for the purchase and installation of a new energy efficient transformers.
(c)
Requirements—
(1)
Application— To be eligible to receive a rebate under this section, an owner shall submit to the Secretary an application in such form, at such time, and containing such information as the Secretary may require, including demonstrated evidence that the owner purchased a qualified transformer.
(2)
Authorized amount of rebate— For qualified transformers, rebates, in dollars per kilovolt-ampere (referred to in this paragraph as kVA) shall be—
(A)
for 3-phase transformers—
(i)
with a capacity of not greater than 10 kVA, 15;
(ii)
with a capacity of not less than 10 kVA and not greater than 100 kVA, the difference between 15 and the quotient obtained by dividing—
(I)
the difference between—
(aa)
the capacity of the transformer in kVA; and
(bb)
10; by
(II)
9; and
(iii)
with a capacity greater than or equal to 100 kVA, 5; and
(B)
for single-phase transformers, 75 percent of the rebate for a 3-phase transformer of the same capacity.
(d)
Authorization of appropriations— There is authorized to be appropriated to carry out this section $5,000,000 for each of fiscal years 2014 and 2015, to remain available until expended.
(e)
Termination of effectiveness— The authority provided by this section terminates effective December 31, 2015.