---
kind: "section"
citation: "42 U.S.C. § 17116"
title: "42"
title_heading: "The Public Health and Welfare"
number: "17116"
heading: "Industrial research and assessment centers"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/42/17116"
units:
  - "Chapter 152 — Energy Independence and Security"
  - "Subchapter III — Energy Savings in Buildings and Industry"
  - "Part D — Industrial Energy Efficiency"
---

# §17116. Industrial research and assessment centers

- (a) **Definitions—** In this section:
  - (1) **Covered project—** The term “covered [project](/usc/42/13641.md?p=2)” means a [project](/usc/42/13641.md?p=2)—
    - (A) that has been recommended in an energy assessment described in [paragraph (2)(A)](#a-2-A) conducted for an [eligible entity](/usc/42/17151.md?p=1); and
    - (B) with respect to which the plant site of that [eligible entity](/usc/42/17151.md?p=1)—
      - (i) improves—
        - (I) energy efficiency;
        - (II) material efficiency;
        - (III) cybersecurity; or
        - (IV) productivity; or
      - (ii) reduces—
        - (I) waste production;
        - (II) greenhouse gas emissions; or
        - (III) nongreenhouse gas pollution.
  - (2) **Eligible entity—** The term “[eligible entity](/usc/42/17151.md?p=1)” means a small- or medium-sized manufacturer that has had an energy assessment completed by—
    - (A) an industrial research and assessment center;
    - (B) a [Department](/usc/42/17001.md?p=1) of Energy Combined Heat and Power Technical Assistance Partnership jointly with an industrial research and assessment center; or
    - (C) a third-party assessor that provides an assessment equivalent to an assessment described in subparagraph [(A)](#a-2-A) or [(B)](#a-2-B), as determined by the [Secretary](/usc/42/17001.md?p=3).
  - (3) **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 17111(a) of this title](/usc/42/17111.md?p=a)); and
    - (B) any utility operating under a utility energy service [project](/usc/42/13641.md?p=2).
  - (4) **Industrial research and assessment center—** The term “industrial research and assessment center” means—
    - (A) an [institution of higher education](/usc/42/17001.md?p=2)-based industrial research and assessment center that is funded by the [Secretary](/usc/42/17001.md?p=3) under [subsection (b)](#b); and
    - (B) an industrial research and assessment center at a trade school, community college, or union training [program](/usc/42/17151.md?p=5) that is funded by the [Secretary](/usc/42/17001.md?p=3) under [subsection (f)](#f).
  - (5) **Program—** The term “[Program](/usc/42/17151.md?p=5)” means the [program](/usc/42/17151.md?p=5) for implementation grants established under [subsection (i)(1)](#i-1).
  - (6) **Small- or medium-sized manufacturer—** The term “small- or medium-sized manufacturer” means a manufacturing firm—
    - (A) the gross annual sales of which are less than $100,000,000;
    - (B) that has fewer than 500 employees at the plant site of the manufacturing firm; and
    - (C) the annual energy bills of which total more than $100,000 but less than $3,500,000.
- (b) **Institution of higher education-based industrial research and assessment centers—**
  - (1) **In general—** The [Secretary](/usc/42/17001.md?p=3) shall provide funding to [institution of higher education](/usc/42/17001.md?p=2)-based industrial research and assessment centers.
  - (2) **Purpose—** The purpose of each [institution of higher education](/usc/42/17001.md?p=2)-based industrial research and assessment center shall be—
    - (A) to provide in-depth assessments of small- and medium-sized manufacturer plant sites to evaluate the facilities, services, and manufacturing operations of the plant sites;
    - (B) to identify opportunities for optimizing energy efficiency and environmental performance, including implementation of—
      - (i) smart manufacturing;
      - (ii) energy management systems;
      - (iii) sustainable manufacturing;
      - (iv) information technology advancements for supply chain analysis, logistics, system monitoring, industrial and manufacturing processes, and other purposes; and
      - (v) waste management systems;
    - (C) to promote applications of emerging concepts and technologies in small- and medium-sized manufacturers (including water and wastewater [treatment](/usc/42/11851.md?p=11) facilities and federally owned manufacturing facilities);
    - (D) to promote research and development for the use of alternative energy sources to supply heat, power, and new feedstocks for energy-intensive industries;
    - (E) to coordinate with appropriate Federal and [State](/usc/42/17151.md?p=6) research offices;
    - (F) to provide a clearinghouse for industrial process and energy efficiency technical assistance resources; and
    - (G) to coordinate with [State](/usc/42/17151.md?p=6)-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](/usc/42/17151.md?p=5) and the Building Technologies Office of the [Department](/usc/42/17001.md?p=1) of Energy to provide building assessment services to manufacturers;
  - (3) increase partnerships with the [National Laboratories](/usc/42/17211.md?p=4) of the [Department](/usc/42/17001.md?p=1) of Energy to leverage the expertise, technologies, and research and development capabilities of the [National Laboratories](/usc/42/17211.md?p=4) 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](/usc/42/17061.md?p=19) for small- and medium-sized manufacturers.
- (d) **Outreach—** The [Secretary](/usc/42/17001.md?p=3) 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, [State](/usc/42/17151.md?p=6), and Tribal 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](/usc/42/17001.md?p=3) 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](/usc/42/17001.md?p=3).
  - (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](/usc/42/11851.md?p=5) and staff of the industrial research and assessment centers with respect to—
      - (i) the availability of resources; and
      - (ii) best [practices](/usc/42/17061.md?p=19) 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](/usc/42/17061.md?p=19), 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](/usc/42/17151.md?p=6), local, Tribal, and utility energy efficiency [programs](/usc/42/17151.md?p=5) for the purpose of facilitating efforts by industrial research and assessment centers to connect industrial facilities receiving assessments from those centers with regional, [State](/usc/42/17151.md?p=6), local, and utility energy efficiency [programs](/usc/42/17151.md?p=5) 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](/usc/42/17151.md?p=5) described in paragraphs [(1)](#c-1) through [(3)](#c-3) of subsection (c); and
    - (F) by coordinating the outreach activities of the industrial research and assessment centers under [subsection (d)(1)](#d-1).
  - (3) **Funding—** For each fiscal year, out of any amounts made available to carry out this section under [subsection (j)](#j), the [Secretary](/usc/42/17001.md?p=3) 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](/usc/42/17001.md?p=3) shall provide funding to establish additional industrial research and assessment centers at trade schools, community colleges, and union training [programs](/usc/42/17151.md?p=5).
  - (2) **Purpose—**
    - (A) **In general—** Subject to [subparagraph (B)](#f-2-B), to the maximum extent practicable, an industrial research and assessment center established under [paragraph (1)](#f-1) shall have the same purpose as an [institution of higher education](/usc/42/17001.md?p=2)-based industrial research center that is funded by the [Secretary](/usc/42/17001.md?p=3) under [subsection (b)(1)](#b-1).
    - (B) **Consideration of capabilities—** In evaluating or establishing the purpose of an industrial research and assessment center established under [paragraph (1)](#f-1), the [Secretary](/usc/42/17001.md?p=3) shall take into consideration the varying capabilities of trade schools, community colleges, and union training [programs](/usc/42/17151.md?p=5).
- (g) **Workforce training—**
  - (1) **Internships—** The [Secretary](/usc/42/17001.md?p=3) shall pay the Federal share of associated internship [programs](/usc/42/17151.md?p=5) 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](/usc/42/17001.md?p=3) shall pay the Federal share of associated apprenticeship [programs](/usc/42/17151.md?p=5) 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](/usc/42/17061.md?p=19) and processes to improve productivity and energy savings.
  - (3) **Federal share—** The Federal share of the cost of carrying out internship [programs](/usc/42/17151.md?p=5) described in [paragraph (1)](#g-1) and apprenticeship [programs](/usc/42/17151.md?p=5) described in [paragraph (2)](#g-2) shall be 50 percent.
- (h) **Small business loans—** The [Administrator](/usc/42/4005.md?p=1) 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](/usc/15/631.md) et seq.) to implement recommendations developed by the industrial research and assessment centers.
- (i) **Implementation grants—**
  - (1) **In general—** The [Secretary](/usc/42/17001.md?p=3) shall establish a [program](/usc/42/17151.md?p=5) under which the [Secretary](/usc/42/17001.md?p=3) shall provide grants to [eligible entities](/usc/42/17151.md?p=1) to implement covered [projects](/usc/42/13641.md?p=2).
  - (2) **Application—** An [eligible entity](/usc/42/17151.md?p=1) seeking a grant under the [Program](/usc/42/17151.md?p=5) shall submit to the [Secretary](/usc/42/17001.md?p=3) an application at such time, in such manner, and containing such information as the [Secretary](/usc/42/17001.md?p=3) may require, including a demonstration of need for financial assistance to implement the proposed covered [project](/usc/42/13641.md?p=2).
  - (3) **Priority—** In awarding grants under the [Program](/usc/42/17151.md?p=5), the [Secretary](/usc/42/17001.md?p=3) shall give priority to [eligible entities](/usc/42/17151.md?p=1) that—
    - (A) have had an energy assessment completed by an industrial research and assessment center; and
    - (B) propose to carry out a covered [project](/usc/42/13641.md?p=2) with a greater potential for—
      - (i) energy efficiency gains; or
      - (ii) greenhouse gas emissions reductions.
  - (4) **Grant amount—**
    - (A) **Maximum amount—** The amount of a grant provided to an [eligible entity](/usc/42/17151.md?p=1) under the [Program](/usc/42/17151.md?p=5) shall not exceed $300,000.
    - (B) **Federal share—** A grant awarded under the [Program](/usc/42/17151.md?p=5) for a covered [project](/usc/42/13641.md?p=2) shall be in an amount that is not more than 50 percent of the cost of the covered [project](/usc/42/13641.md?p=2).
    - (C) **Supplement—** A grant received by an [eligible entity](/usc/42/17151.md?p=1) under the [Program](/usc/42/17151.md?p=5) shall supplement, not supplant, any private or [State](/usc/42/17151.md?p=6) funds available to the [eligible entity](/usc/42/17151.md?p=1) to carry out the covered [project](/usc/42/13641.md?p=2).
- (j) **Authorization of appropriations—** There are authorized to be appropriated to the [Secretary](/usc/42/17001.md?p=3) for the period of fiscal years 2022 through 2026—
  - (1) $150,000,000 to carry out subsections [(a)](#a) through [(h)](#h); and
  - (2) $400,000,000 to carry out [subsection (i)](#i).

## Source credit

(Pub. L. 110–140, title IV, § 457, as added Pub. L. 117–58, div. D, title V, § 40521(b), Nov. 15, 2021, 135 Stat. 1062.)

## Notes

### Editorial Notes

### References in Text

The Small Business Act, referred to in subsec. (h), is Pub. L. 85–536, § 2(1 et seq.), July 18, 1958, 72 Stat. 384, which is classified generally to chapter 14A (§ 631 et seq.) of Title 15, Commerce and Trade. For complete classification of this Act to the Code, see Short Title note set out under section 631 of Title 15 and Tables.

### Statutory Notes and Related Subsidiaries

### Wage Rate Requirements

For provisions relating to rates of wages to be paid to laborers and mechanics on projects for construction, alteration, or repair work funded under div. D or an amendment by div. D of Pub. L. 117–58, including authority of Secretary of Labor, see section 18851 of this title.