Section 1 Short title
This Act may be cited as the “Industrial Energy-Efficient Technology Act of 2021”.
Industrial Energy-Efficient Technology Act of 2021
A BILL
To establish an advanced industrial facilities deployment program and a State flex-tech energy program, and for other purposes.
Sec. 2 Advanced industrial facilities deployment program
Appropriation— In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $4,000,000,000, to remain available until September 30, 2026, to carry out this section.
Program— The Secretary shall use funds appropriated by subsection (a) to establish a program to provide financial assistance, on a competitive basis, to eligible entities to carry out projects for—
the purchase and installation, or implementation, of advanced industrial technology at an eligible facility;
retrofits, upgrades to, or operational improvements at an eligible facility to install or implement advanced industrial technology; or
engineering studies and other work needed to prepare an eligible facility for activities described in paragraph (1) or (2).
Application— To be eligible to receive financial assistance under the program established under subsection (b), 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, including the expected greenhouse gas emissions reductions to be achieved by carrying out the proposed project.
Priority— In providing financial assistance under the program established under subsection (b), the Secretary shall give priority consideration to projects on the basis of, as determined by the Secretary—
the expected greenhouse gas emissions reductions to be achieved by the project;
the extent to which the project would provide the greatest benefit for the greatest number of people within the area in which the eligible facility is located; and
whether the eligible entity participates or would participate in a partnership with purchasers of the output of the eligible facility.
Cost share— The Federal share of the cost of a project carried out using financial assistance provided under this section shall not exceed 50 percent.
Administrative costs— Of amounts made available under subsection (a), the Secretary shall reserve $200,000,000 for the administrative costs of carrying out this section.
Definitions— In this section:
Advanced industrial technology— The term “advanced industrial technology” means technology or processes designed to accelerate greenhouse gas emissions reduction progress to net-zero at an eligible facility, as determined by the Secretary, including—
industrial energy efficiency technologies;
equipment to electrify industrial processes;
equipment to utilize low- or zero-carbon fuels, feedstocks, and energy sources;
low- or zero-carbon process heat systems; and
carbon capture, transport, utilization, and storage systems.
Eligible entity— The term “eligible entity” means the owner or operator of an eligible facility.
Eligible facility— The term “eligible facility” means a domestic, non-Federal, nonpower industrial or manufacturing facility engaged in energy-intensive industrial processes, including production processes for iron, steel, steel mill products, aluminum, cement, concrete, glass, pulp, paper, and industrial ceramics.
Financial assistance— The term “financial assistance” means a grant, rebate, direct loan, or cooperative agreement.
Secretary— The term “Secretary” means the Secretary of Energy.
Sec. 3 State flex-tech energy program
In general— Part D of title III of the Energy Policy and Conservation Act (42 U.S.C. 6321 et seq.) is amended by adding at the end the following:
“367. Flex-tech energy program to enhance manufacturing competitiveness
“(a) Financial assistance—Upon request from the State energy agency of a State that has an approved State energy conservation plan in effect under this part, or an Indian Tribe, the Secretary shall provide financial assistance to the State energy agency or Indian Tribe to be used for the development, implementation, improvement, or expansion of a flex-tech energy program described in subsection (b) (referred to in this section as a “flex-tech energy program”) to enhance manufacturing competitiveness.
“(b) Flex-Tech energy program
“(1) In general—A flex-tech energy program shall include—
“(A) provision of technical and administrative assistance to manufacturers through qualified engineering firms, as determined by the State energy agency or Indian Tribe;
“(B) provision of financial assistance to manufacturers for—
“(i) energy studies of manufacturing facilities that are conducted by qualified engineering firms, as determined by the State energy agency or Indian Tribe; and
“(ii) the implementation of measures and recommendations identified in energy studies conducted under clause (i), including the design, acquisition, installation, testing, operation, maintenance, and repair of energy- and water-using systems, resiliency-related measures, emissions reduction-related measures, utility cost savings measures, and measures related to advanced manufacturing technologies and artificial intelligence; and
“(C) reporting on the monitoring, tracking, and success metrics of the flex-tech energy program.
“(2) Studies—An energy study of a manufacturing facility conducted pursuant to paragraph (1)(B)(i) may include—
“(A) an evaluation of the energy-using systems of the facility, including an evaluation of the performance of energy-using systems relative to design intent, operational needs of the facility and occupants of the facility, and operation and maintenance procedures;
“(B) an evaluation of emissions related to the facility, including greenhouse gas emissions, and recommendations on sustainability planning and practices;
“(C) an evaluation of potential energy efficiency, water efficiency, greenhouse gas emissions mitigation, and load reduction measures for the facility;
“(D) an evaluation of potential on-site energy measures, including grid-interactive efficiency systems, combined heat and power, efficient compressed air systems, energy storage, energy management systems, renewable thermal systems, and electrification or other forms of fuel switching;
“(E) recommendations on the use of new technologies at the facility; and
“(F) detailed estimates of potential implementation costs, operating cost savings, energy savings, emissions reductions, and simple payback periods for measures and recommendations identified as part of the energy study.
“(3) Use of funds
“(A) In general—Of the amount of financial assistance received pursuant to this section for a fiscal year, a State energy agency or Indian Tribe shall use—
“(i) not more than 50 percent for energy studies;
“(ii) not more than 50 percent to support the implementation of recommendations from those energy studies; and
“(iii) not more than 10 percent for administrative expenses, including outreach and technical assistance.
“(B) Individual manufacturing facility—A State energy agency that receives financial assistance pursuant to this section for a fiscal year may not use more than 5 percent of that financial assistance with respect to a single manufacturing facility.
“(C) Financing—To the extent practicable, a State energy agency or Indian Tribe shall implement a flex-tech energy program using funding provided under this Act, public financing, private financing, and any other sources of funds.
“(4) Determination of qualified engineering firms—A State energy agency or Indian Tribe administering a flex-tech energy program shall maintain and regularly update a publicly available list of qualified engineering firms that are approved by the State energy agency or Indian Tribe, as applicable, to provide assistance to manufacturers pursuant to this section.
“(c) Technical assistance
“(1) In general—On request of a State energy agency or Indian Tribe, the Secretary shall provide information and technical assistance in the development, implementation, improvement, or expansion of a flex-tech energy program.
“(2) Inclusions—Technical assistance provided pursuant to paragraph (1) may include, with respect to manufacturers that employ fewer than 500 full-time equivalent employees at a manufacturing facility, program design options—
“(A) to meet the needs of such manufacturers; and
“(B) to encourage the use of advanced manufacturing processes by such manufacturers, including use of additive manufacturing, advanced sensors and controls, techniques to reduce embedded emissions, and advanced composite materials.
“(d) Funding
“(1) Allocation—Except as provided in paragraph (2), to the extent practicable, the Secretary shall allocate funding made available to carry out this section for each fiscal year in accordance with the formula used for distribution of Federal financial assistance provided pursuant to this part to States that have in effect an approved State energy conservation plan under this part.
“(2) Indian Tribes—The Secretary shall set aside and distribute not less than 5 percent of amounts made available for each fiscal year to carry out this section to provide financial assistance—
“(A) to Indian Tribes; or
“(B) directly to manufacturers located in Indian Country or, in the case of Alaska, an Alaska Native Village Statistical Area, as identified by the Bureau of the Census.
“(3) Supplement—Financial assistance provided to a State energy agency or Indian Tribe pursuant to this section shall be used to supplement, not supplant, any Federal, State, or other funds otherwise made available to that State energy agency or Indian Tribe under this part.
“(e) Definitions—In this section:
“(1) Indian Country—The term Indian Country has the meaning given the term in section 1151 of title 18, United States Code.
“(2) 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).
“(3) State energy agency—The term State energy agency has the meaning given the term in section 391.”
Authorization of appropriations— Section 365(f) of the Energy Policy and Conservation Act (42 U.S.C. 6325(f)) is amended—
by striking “(f) For the purpose” and inserting the following:
“(f) Authorization of appropriations
“(1) In general—For the purpose”
in paragraph (1) (as so designated), by striking “2007 through 2012” and inserting “2022 through 2026”; and
by adding at the end the following:
“(2) Flex-tech energy program—In addition to the amounts authorized to be appropriated under paragraph (1), for the purposes of carrying out section 367, there are authorized to be appropriated $100,000,000 for each of fiscal years 2022 through 2026.”
Conforming amendment— The table of contents for the Energy Policy and Conservation Act is amended by adding after the item related to section 366 the following: