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Title II — Industrial efficiency and competitiveness

H.R. 3962 · 116th Congress · Jul 25, 2019 · Lineage

II Industrial efficiency and competitiveness

A Manufacturing energy efficiency

Sec. 201 Purposes

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

Sec. 202 Future of Industry program and industrial research and assessment centers

(a)
Future of Industry program— Section 452 of the Energy Independence and Security Act of 2007 (42 U.S.C. 17111) is amended—
(1)
by striking the section heading and inserting the following: “Future of Industry program”;
(2)
in subsection (a)(2)—
(A)
by redesignating subparagraph (E) as subparagraph (F); and
(B)
by inserting after subparagraph (D) the following:

“(E) water and wastewater treatment facilities, including systems that treat municipal, industrial, and agricultural waste; and”

(3)
by striking subsection (e); and
(4)
by redesignating subsection (f) as subsection (e).
(b)
Industrial research and assessment centers— Subtitle D of title IV of the Energy Independence and Security Act of 2007 (42 U.S.C. 17111 et seq.) is amended by adding at the end the following:

“454. Industrial research and assessment centers

“(a) Definitions—In this section:

“(1) Energy service provider—The term energy service provider means—

“(A) any business providing technology or services to improve the energy efficiency, water efficiency, power factor, or load management of a manufacturing site or other industrial process in an energy-intensive industry (as defined in section 452(a)); and

“(B) any utility operating under a utility energy service project.

“(2) Industrial research and assessment center—The term industrial research and assessment center means—

“(A) an institution of higher education-based industrial research and assessment center that is funded by the Secretary under subsection (b); and

“(B) an industrial research and assessment center at a trade school, community college, or union training program that is funded by the Secretary under subsection (f).

“(b) Institution of higher education-Based industrial research and assessment centers

“(1) In general—The Secretary shall provide funding to institution of higher education-based industrial research and assessment centers.

“(2) Purpose—The purpose of each institution of higher education-based industrial research and assessment center shall be—

“(A) to identify opportunities for optimizing energy efficiency and environmental performance, including implementation of—

“(i) smart manufacturing;

“(ii) energy management systems;

“(iii) sustainable manufacturing; and

“(iv) information technology advancements for supply chain analysis, logistics, system monitoring, industrial and manufacturing processes, and other purposes;

“(B) to promote applications of emerging concepts and technologies in small- and medium-sized manufacturers (including water and wastewater treatment facilities and federally owned manufacturing facilities);

“(C) to promote research and development for the use of alternative energy sources to supply heat, power, and new feedstocks for energy-intensive industries;

“(D) to coordinate with appropriate Federal and State research offices;

“(E) to provide a clearinghouse for industrial process and energy efficiency technical assistance resources; and

“(F) to coordinate with State-accredited technical training centers and community colleges, while ensuring appropriate services to all regions of the United States.

“(c) Coordination—To increase the value and capabilities of the industrial research and assessment centers, the centers shall—

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

“(2) coordinate with the Federal Energy Management Program and the Building Technologies Program of the Department of Energy to provide building assessment services to manufacturers;

“(3) increase partnerships with the National Laboratories of the Department of Energy to leverage the expertise, technologies, and research and development capabilities of the National Laboratories for national industrial and manufacturing needs;

“(4) 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;

“(5) identify opportunities for reducing greenhouse gas emissions and other air emissions; and

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

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

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

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

“(A) Federal and State efforts;

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

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

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

“(e) Centers of Excellence

“(1) Establishment—The Secretary shall establish a Center of Excellence at not more than 5 of the highest-performing industrial research and assessment centers, as determined by the Secretary.

“(2) Duties—A Center of Excellence shall coordinate with and advise the industrial research and assessment centers located in the region of the Center of Excellence, including—

“(A) by mentoring new directors and staff of the industrial research and assessment centers with respect to—

“(i) the availability of resources; and

“(ii) best practices for carrying out assessments, including through the participation of the staff of the Center of Excellence in assessments carried out by new industrial research and assessment centers;

“(B) by providing training to staff and students at the industrial research and assessment centers on new technologies, practices, and tools to expand the scope and impact of the assessments carried out by the centers;

“(C) by assisting the industrial research and assessment centers with specialized technical opportunities, including by providing a clearinghouse of available expertise and tools to assist the centers and clients of the centers in assessing and implementing those opportunities;

“(D) by identifying and coordinating with regional, State, local, and utility energy efficiency programs for the purpose of facilitating efforts by industrial research and assessment centers to connect industrial facilities receiving assessments from those centers with regional, State, local, and utility energy efficiency programs that could aid the industrial facilities in implementing any recommendations resulting from the assessments;

“(E) by facilitating coordination between the industrial research and assessment centers and other Federal programs described in paragraphs (1) through (3) of subsection (c); and

“(F) by coordinating the outreach activities of the industrial research and assessment centers under subsection (d)(1).

“(3) Funding—Subject to the availability of appropriations, for each fiscal year, out of any amounts made available to carry out this section under subsection (i), the Secretary shall use not less than $500,000 to support each Center of Excellence.

“(f) Expansion of industrial research and assessment centers

“(1) In general—The Secretary shall provide funding to establish additional industrial research and assessment centers at trade schools, community colleges, and union training programs.

“(2) Purpose

“(A) In general—Subject to subparagraph (B), to the maximum extent practicable, an industrial research and assessment center established under paragraph (1) shall have the same purpose as an institution of higher education-based industrial research center that is funded by the Secretary under subsection (b)(1).

“(B) Consideration of capabilities—In evaluating or establishing the purpose of an industrial research and assessment center established under paragraph (1), the Secretary shall take into consideration the varying capabilities of trade schools, community colleges, and union training programs.

“(g) Workforce training

“(1) Internships—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.

“(2) Apprenticeships—The Secretary shall pay the Federal share of associated apprenticeship programs under which—

“(A) students work with or for industries, manufacturers, and energy service providers to implement the recommendations of industrial research and assessment centers; and

“(B) employees of facilities that have received an assessment from an industrial research and assessment center work with or for an industrial research and assessment center to gain knowledge on engineering practices and processes to improve productivity and energy savings.

“(3) Federal share—The Federal share of the cost of carrying out internship programs described in paragraph (1) and apprenticeship programs described in paragraph (2) shall be 50 percent.

“(h) 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 developed by the industrial research and assessment centers.

“(i) Funding—There is authorized to be appropriated to the Secretary to carry out this section $30,000,000 for each fiscal year, to remain available until expended.”

(c)
Clerical amendment— The table of contents of the Energy Independence and Security Act of 2007 (42 U.S.C. prec. 17001) is amended by adding at the end of the items relating to subtitle D of title IV the following:

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 et seq.) 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 of the Department of Energy, the Secretary, on the request of a manufacturer, shall carry out 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—To implement any recommendations resulting from an onsite technical assessment carried out under subsection (a) and to accelerate the adoption of new and existing technologies and processes that improve energy efficiency, the Secretary shall coordinate with—

“(1) the Advanced Manufacturing Office of the Department of Energy;

“(2) the Building Technologies Office of the Department of Energy;

“(3) the Federal Energy Management Program of the Department of Energy; and

“(4) the private sector and other appropriate agencies, including the National Institute of Standards and Technology.

“(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)
Clerical amendment— 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 Extended product system rebate program

Sec. 211 Extended Product System Rebate Program

(a)
Definitions— In this section:
(1)
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).
(2)
Electronic control— The term electronic control means—
(A)
a power converter; or
(B)
a combination of a power circuit and control circuit included on 1 chassis.
(3)
Extended product system— The term extended product system means an electric motor and any required associated electronic control and driven load that—
(A)
offers variable speed or multispeed operation;
(B)
offers partial load control that reduces input energy requirements (as measured in kilowatt-hours) as compared to identified base levels set by the Secretary; and
(C)
(i)
has greater than 1 horsepower; and
(ii)
uses an extended product system technology, as determined by the Secretary.
(4)
Qualified extended product system—
(A)
In general— The term qualified extended product system means an extended product system that—
(i)
includes an electric motor and an electronic control; and
(ii)
reduces the input energy (as measured in kilowatt-hours) required to operate the extended product system by not less than 5 percent, as compared to identified base levels set by the Secretary.
(B)
Inclusions— The term qualified extended product system includes commercial or industrial machinery or equipment that—
(i)
(I)
did not previously make use of the extended product system prior to the redesign described in subclause (II); and
(II)
incorporates an extended product system that has greater than 1 horsepower into redesigned machinery or equipment; and
(ii)
was previously used prior to, and was placed back into service during, calendar year 2020 or 2021.
(b)
Establishment— Not later than 180 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 or installation of a qualified extended product system.
(c)
Qualified entities—
(1)
Eligibility requirements— A qualified entity under this section shall be—
(A)
in the case of a qualified extended product system described in subsection (a)(4)(A), the purchaser of the qualified extended product that is installed; and
(B)
in the case of a qualified extended product system described in subsection (a)(4)(B), the manufacturer of the commercial or industrial machinery or equipment that incorporated the extended product system into that machinery or equipment.
(2)
Application— To be eligible to receive a rebate under this section, a qualified entity shall submit to the Secretary—
(A)
an application in such form, at such time, and containing such information as the Secretary may require; and
(B)
a certification that includes demonstrated evidence—
(i)
that the entity is a qualified entity; and
(ii)
(I)
in the case of a qualified entity described in paragraph (1)(A)—
(aa)
that the qualified entity installed the qualified extended product system during the 2 fiscal years following the date of enactment of this Act;
(bb)
that the qualified extended product system meets the requirements of subsection (a)(4)(A); and
(cc)
showing the serial number, manufacturer, and model number from the nameplate of the installed motor of the qualified entity on which the qualified extended product system was installed; or
(II)
in the case of a qualified entity described in paragraph (1)(B), demonstrated evidence—
(aa)
that the qualified extended product system meets the requirements of subsection (a)(4)(B); and
(bb)
showing the serial number, manufacturer, and model number from the nameplate of the installed motor of the qualified entity with which the extended product system is integrated.
(d)
Authorized amount of rebate—
(1)
In general— The Secretary may provide to a qualified entity a rebate in an amount equal to the product obtained by multiplying—
(A)
an amount equal to the sum of the nameplate rated horsepower of—
(i)
the electric motor to which the qualified extended product system is attached; and
(ii)
the electronic control; and
(B)
$25.
(2)
Maximum aggregate amount— A qualified entity shall not be entitled to aggregate rebates under this section in excess of $25,000 per calendar year.
(e)
Authorization of appropriations— There is authorized to be appropriated to carry out this section $5,000,000 for each of the first 2 full fiscal years following the date of enactment of this Act, to remain available until expended.

C Transformer rebate program

Sec. 221 Energy Efficient Transformer Rebate Program

(a)
Definitions— In this section:
(1)
Qualified energy efficient transformer— The term qualified energy efficient transformer means a transformer that meets or exceeds the applicable energy conservation standards described in the tables in subsection (b)(2) and paragraphs (1) and (2) of subsection (c) of section 431.196 of title 10, Code of Federal Regulations (as in effect on the date of enactment of this Act).
(2)
Qualified energy inefficient transformer— The term qualified energy inefficient transformer means a transformer with an equal number of phases and capacity to a transformer described in any of the tables in subsection (b)(2) and paragraphs (1) and (2) of subsection (c) of section 431.196 of title 10, Code of Federal Regulations (as in effect on the date of enactment of this Act) that—
(A)
does not meet or exceed the applicable energy conservation standards described in paragraph (1); and
(B)
(i)
was manufactured between January 1, 1987, and December 31, 2008, for a transformer with an equal number of phases and capacity as a transformer described in the table in subsection (b)(2) of section 431.196 of title 10, Code of Federal Regulations (as in effect on the date of enactment of this Act); or
(ii)
was manufactured between January 1, 1992, and December 31, 2011, for a transformer with an equal number of phases and capacity as a transformer described in the table in paragraph (1) or (2) of subsection (c) of that section (as in effect on the date of enactment of this Act).
(3)
Qualified entity— The term qualified entity means an owner of industrial or manufacturing facilities, commercial buildings, or multifamily residential buildings, a utility, or an energy service company that fulfills the requirements of subsection (d).
(b)
Establishment— Not later than 90 days after the date of enactment of this Act, the Secretary shall establish a program to provide rebates to qualified entities for expenditures made by the qualified entity for the replacement of a qualified energy inefficient transformer with a qualified energy efficient transformer.
(c)
Requirements— To be eligible to receive a rebate under this section, an entity 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—
(1)
that the entity purchased a qualified energy efficient transformer;
(2)
of the core loss value of the qualified energy efficient transformer;
(3)
of the age of the qualified energy inefficient transformer being replaced;
(4)
of the core loss value of the qualified energy inefficient transformer being replaced—
(A)
as measured by a qualified professional or verified by the equipment manufacturer, as applicable; or
(B)
for transformers described in subsection (a)(2)(B)(i), as selected from a table of default values as determined by the Secretary in consultation with applicable industry; and
(5)
that the qualified energy inefficient transformer has been permanently decommissioned and scrapped.
(d)
Authorized amount of rebate— The amount of a rebate provided under this section shall be—
(1)
for a 3-phase or single-phase transformer with a capacity of not less than 10 and not greater than 2,500 kilovolt-amperes, twice the amount equal to the difference in Watts between the core loss value (as measured in accordance with paragraphs (2) and (4) of subsection (c)) of—
(A)
the qualified energy inefficient transformer; and
(B)
the qualified energy efficient transformer; or
(2)
for a transformer described in subsection (a)(2)(B)(i), the amount determined using a table of default rebate values by rated transformer output, as measured in kilovolt-amperes, as determined by the Secretary in consultation with applicable industry.
(e)
Authorization of appropriations— There is authorized to be appropriated to carry out this section $5,000,000 for each of fiscal years 2020 and 2021, to remain available until expended.
(f)
Termination of effectiveness— The authority provided by this section terminates on December 31, 2021.