---
kind: "section"
citation: "42 U.S.C. § 18742"
title: "42"
title_heading: "The Public Health and Welfare"
number: "18742"
heading: "Advanced energy manufacturing and recycling grant program"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/42/18742"
units:
  - "Chapter 162 — Energy Infrastructure"
  - "Subchapter II — Supply Chains for Clean Energy Technologies"
---

# §18742. Advanced energy manufacturing and recycling grant program

- (a) **Definitions—** In this section:
  - (1) **Advanced energy property—** The term “advanced energy property” means—
    - (A) property designed to be used to produce energy from the sun, water, wind, geothermal or hydrothermal (as those terms are defined in [section 17191 of this title](/usc/42/17191.md)) resources, enhanced geothermal systems (as defined in that section), or other renewable resources;
    - (B) fuel cells, microturbines, or energy storage systems and components;
    - (C) electric grid [modernization](/usc/42/300s–3.md?p=9) equipment or components;
    - (D) property designed to capture, remove, use, or sequester carbon oxide emissions;
    - (E) equipment designed to refine, electrolyze, or blend any fuel, chemical, or product that is—
      - (i) renewable; or
      - (ii) low-carbon and low-emission;
    - (F) property designed to produce energy conservation technologies (including for residential, commercial, and industrial applications);
    - (G)
      - (i) light-, medium-, or heavy-duty electric or fuel cell vehicles, electric or fuel cell locomotives, electric or fuel cell maritime vessels, or electric or fuel cell planes;
      - (ii) technologies, components, and materials of those vehicles, locomotives, maritime vessels, or planes; and
      - (iii) charging or refueling infrastructure associated with those vehicles, locomotives, maritime vessels, or planes;
    - (H)
      - (i) hybrid vehicles with a gross vehicle weight rating of not less than 14,000 pounds; and
      - (ii) technologies, components, and materials for those vehicles; and
    - (I) other advanced energy property designed to reduce greenhouse gas emissions, as may be determined by the [Secretary](/usc/42/18701.md?p=3).
  - (2) **Covered census tract—** The term “covered census tract” means a census tract—
    - (A) in which, after December 31, 1999, a coal mine had closed;
    - (B) in which, after December 31, 2009, a coal-fired electricity generating unit had been retired; or
    - (C) that is immediately adjacent to a census tract described in subparagraph [(A)](#a-2-A) or [(B)](#a-2-B).
  - (3) **Eligible entity—** The term “eligible entity” 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 $2,500,000.
  - (4) **Minority-owned—** The term “minority-owned”, with respect to an eligible entity, means an eligible entity not less than 51 percent of which is owned by 1 or more individuals who are—
    - (A) citizens of the United States; and
    - (B) Asian American, Native Hawaiian, Pacific Islander, African American, Hispanic, Puerto Rican, Native American, or Alaska Native.
  - (5) **Program—** The term “[Program](/usc/42/18791.md?p=2)” means the grant [program](/usc/42/18791.md?p=2) established under [subsection (b)](#b).
  - (6) **Qualifying advanced energy project—** The term “qualifying advanced energy [project](/usc/42/13641.md?p=2)” means a [project](/usc/42/13641.md?p=2) that—
    - (A)
      - (i) re-equips, expands, or establishes a manufacturing or recycling facility for the production or recycling, as applicable, of advanced energy property; or
      - (ii) re-equips an industrial or manufacturing facility with equipment designed to reduce the greenhouse gas emissions of that facility substantially below the greenhouse gas emissions under current best [practices](/usc/42/17061.md?p=19), as determined by the [Secretary](/usc/42/18701.md?p=3), through the installation of—
        - (I) low- or zero-carbon process heat systems;
        - (II) carbon capture, transport, utilization, and storage systems;
        - (III) technology relating to energy efficiency and reduction in waste from industrial processes; or
        - (IV) any other industrial technology that significantly reduces greenhouse gas emissions, as determined by the [Secretary](/usc/42/18701.md?p=3);
    - (B) has a reasonable expectation of commercial viability, as determined by the [Secretary](/usc/42/18701.md?p=3); and
    - (C) is located in a covered census tract.
- (b) **Establishment—** Not later than 180 days after November 15, 2021, the [Secretary](/usc/42/18701.md?p=3) shall establish a [program](/usc/42/18791.md?p=2) to award grants to eligible entities to carry out qualifying advanced energy [projects](/usc/42/13641.md?p=2).
- (c) **Applications—**
  - (1) **In general—** Each eligible entity seeking a grant under the [Program](/usc/42/18791.md?p=2) shall submit to the [Secretary](/usc/42/18701.md?p=3) an application at such time, in such manner, and containing such information as the [Secretary](/usc/42/18701.md?p=3) may require, including a description of the proposed qualifying advanced energy [project](/usc/42/13641.md?p=2) to be carried out using the grant.
  - (2) **Selection criteria—**
    - (A) **Projects—** In selecting eligible entities to receive grants under the [Program](/usc/42/18791.md?p=2), the [Secretary](/usc/42/18701.md?p=3) shall, with respect to the qualifying advanced energy [projects](/usc/42/13641.md?p=2) proposed by the eligible entities, give higher priority to [projects](/usc/42/13641.md?p=2) that—
      - (i) will provide higher net impact in avoiding or reducing anthropogenic emissions of greenhouse gases;
      - (ii) will result in a higher level of domestic job creation (both direct and indirect) during the lifetime of the [project](/usc/42/13641.md?p=2);
      - (iii) will result in a higher level of job creation in the vicinity of the [project](/usc/42/13641.md?p=2), particularly with respect to—
        - (I) low-income communities (as described in section 45D(e) of the Internal Revenue Code of 1986); and
        - (II) dislocated workers who were previously employed in manufacturing, coal power plants, or coal mining;
      - (iv) have higher potential for technological innovation and commercial deployment;
      - (v) have a lower levelized cost of—
        - (I) generated or stored energy; or
        - (II) measured reduction in energy consumption or greenhouse gas emission (based on costs of the full supply chain); and
      - (vi) have a shorter [project](/usc/42/13641.md?p=2) time.
    - (B) **Eligible entities—** In selecting eligible entities to receive grants under the [Program](/usc/42/18791.md?p=2), the [Secretary](/usc/42/18701.md?p=3) shall give priority to eligible entities that are minority-owned.
- (d) **Project completion and location; return of unobligated funds—**
  - (1) **Completion; return of unobligated funds—** An eligible entity that receives a grant under the [Program](/usc/42/18791.md?p=2) shall be required—
    - (A) to complete the qualifying advanced energy [project](/usc/42/13641.md?p=2) funded by the grant not later than 3 years after the date of receipt of the grant funds; and
    - (B) to return to the [Secretary](/usc/42/18701.md?p=3) any grant funds that remain unobligated at the end of that 3-year period.
  - (2) **Location—** If the [Secretary](/usc/42/18701.md?p=3) determines that an eligible entity awarded a grant under the [Program](/usc/42/18791.md?p=2) has carried out the applicable qualifying advanced energy [project](/usc/42/13641.md?p=2) at a location that is materially different from the location specified in the application for the grant, the eligible entity shall be required to return the grant funds to the [Secretary](/usc/42/18701.md?p=3).
- (e) **Technical assistance—**
  - (1) **In general—** Not later than 180 days after November 15, 2021, the [Secretary](/usc/42/18701.md?p=3) shall provide technical assistance on a selective basis to eligible entities that are seeking a grant under the [Program](/usc/42/18791.md?p=2) to enhance the impact of the qualifying advanced energy [project](/usc/42/13641.md?p=2) to be carried out using the grant with respect to the selection criteria described in [subsection (c)(2)(A)](#c-2-A).
  - (2) **Applications—** An eligible entity desiring technical assistance under [paragraph (1)](#e-1) shall submit to the [Secretary](/usc/42/18701.md?p=3) an application at such time, in such manner, and containing such information as the [Secretary](/usc/42/18701.md?p=3) may require.
  - (3) **Factors for consideration—** In selecting eligible entities for technical assistance under [paragraph (1)](#e-1), the [Secretary](/usc/42/18701.md?p=3) shall give higher priority to eligible entities that propose a qualifying advanced energy [project](/usc/42/13641.md?p=2) that has greater potential for enhancement of the impact of the [project](/usc/42/13641.md?p=2) with respect to the selection criteria described in [subsection (c)(2)(A)](#c-2-A).
- (f) **Publication of grants—** The [Secretary](/usc/42/18701.md?p=3) shall make publicly available the identity of each eligible entity awarded a grant under the [Program](/usc/42/18791.md?p=2) and the amount of the grant.
- (g) **Report—** Not later than 4 years after November 15, 2021, the [Secretary](/usc/42/18701.md?p=3) shall—
  - (1) review the grants awarded under the [Program](/usc/42/18791.md?p=2); and
  - (2) submit to the Committee on Energy and Natural Resources of the Senate and the Committee on Energy and Commerce of the House of Representatives a report describing those grants.
- (h) **Authorization of appropriations—** There is authorized to be appropriated to the [Secretary](/usc/42/18701.md?p=3) to carry out the [Program](/usc/42/18791.md?p=2) $750,000,000 for the period of fiscal years 2022 through 2026.

## Source credit

(Pub. L. 117–58, div. D, title II, § 40209, Nov. 15, 2021, 135 Stat. 975.)

## Notes

### 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.