[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 4144 Introduced in Senate (IS)]
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117th CONGRESS
2d Session
S. 4144
To amend the Energy Policy Act of 2005 to establish an energy efficient
appliance rebate program to provide rebates for the manufacturing,
distribution, and shipment of certain building electrification
products, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
May 4, 2022
Mr. Markey (for himself, Ms. Warren, Mr. Sanders, Mr. Booker, and Ms.
Smith) introduced the following bill; which was read twice and referred
to the Committee on Finance
_______________________________________________________________________
A BILL
To amend the Energy Policy Act of 2005 to establish an energy efficient
appliance rebate program to provide rebates for the manufacturing,
distribution, and shipment of certain building electrification
products, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Installing Clean Efficient Energy
Hastens Our Transition Act of 2022'' or the ``ICEE HOT Act of 2022''.
SEC. 2. FINDINGS.
Congress finds that--
(1) additional measures are needed to further reduce United
States and European dependence on Russia and other
authoritarian petrostates while also saving money for people in
the United States, protecting public health, and combating the
climate crisis;
(2) over the past 5 years, the United States has, on
average, imported approximately 500,000 barrels of oil per day
from Russia;
(3) almost 40 percent, or 196,500 barrels per day, of
Russian oil supplied to the United States can be replaced by
swapping out the 5,300,000 residential oil heating devices in
the United States with efficient electric heat pumps;
(4) in 2020, 104,000 heat pump water heaters were installed
in the United States;
(5) in 2021, 3,900,000 air source heat pumps were installed
in the United States;
(6) through the modified energy efficient appliance rebate
program of the Department of Energy, the United States could
provide midstream incentives and upstream incentives that
support and increase manufacturing capacity and supply chain
security for technologies that reduce fossil fuel demand and
fuel costs, such as electric heat pumps and efficient electric
appliances;
(7) $10,000,000,000 in midstream incentives and upstream
incentives at $1,000 per unit for cold climate and $500 per
unit for noncold climate would--
(A) help the manufacture of an additional 7,500,000
heat pumps in the United States; and
(B) lay the groundwork to bring down manufacturing
and distribution costs in the medium and long term,
thus transforming the heat pump marketplace; and
(8) combined with climate justice and clean energy
investment, generation, and domestic manufacturing incentives,
the incentives described in paragraph (6) will provide
additional support for national security, climate action, and
consumer protection goals.
SEC. 3. ENERGY EFFICIENT APPLIANCE REBATE PROGRAM.
(a) Definitions.--Section 124(a) of the Energy Policy Act of 2005
(42 U.S.C. 15821(a)) is amended--
(1) by redesignating paragraphs (1) through (5) as
paragraphs (7), (8), (13), (15), and (16), respectively;
(2) by inserting before paragraph (7) (as so redesignated)
the following:
``(1) Disadvantaged business.--The term `disadvantaged
business' means a distributor or original equipment
manufacturer that is a small business participating in the
minority small business and capital ownership development
program of the Small Business Administration pursuant to
section 8(a) of the Small Business Act (15 U.S.C. 637(a))
(commonly known as the `8(a) program').
``(2) Disadvantaged individual.--The term `disadvantaged
individual' means--
``(A) a Black American, Hispanic American, Native
American, Asian Pacific American, any other minority,
or any other individual found to be disadvantaged by
the Small Business Administration pursuant to section
8(a) of the Small Business Act (15 U.S.C. 637(a)); and
``(B) a woman.
``(3) Distributor.--The term `distributor' means a person
to which an eligible building electrification product is
delivered or sold for purposes of distribution in commerce.
``(4) Electric residential cold climate heat pump.--The
term `electric residential cold climate heat pump' means a heat
pump that--
``(A) is certified under the Energy Star program;
``(B) is optimized for peak heating and part-load
cooling performance; and
``(C) meets--
``(i) the cold climate air source heat pump
specifications of the Northeast Energy
Efficiency Partnerships; or
``(ii) the criteria for cold climate heat
pumps under the Energy Star program.
``(5) Electric residential heat pump water heater.--The
term `electric residential heat pump water heater' means an
electric heat pump water heater for residential use that is
certified under the Energy Star program.
``(6) Eligible building electrification product.--The term
`eligible building electrification product' means any of the
following United States-made products:
``(A) An electric residential heat pump water
heater.
``(B) An electric residential air source heat pump.
``(C) An electric residential central geothermal
heat pump.
``(D) An electric residential cold climate heat
pump.
``(E) An induction or noninduction electric smooth
stove, flat cooktop, range, or oven.
``(F) An electric heat pump clothes dryer that--
``(i) is certified under the Energy Star
program; or
``(ii) meets a more stringent standard, as
determined by the Secretary, if the Secretary
determines a more stringent standard is
appropriate.
``(G) A smart panel or a panel that is part of an
electric load or service center upgrade.
``(H) Any other electric product, as determined by
the Secretary.'';
(3) by inserting after paragraph (8) (as so redesignated)
the following:
``(9) Midstream rebate.--The term `midstream rebate' means
a rebate provided by a State to a distributor under a State
program described in subsection (b)(1)(B).
``(10) Original equipment manufacturer.--The term `original
equipment manufacturer' means an entity that manufactures
eligible building electrification products.
``(11) Residential air source heat pump.--The term
`residential air source heat pump' means a heat pump or central
air conditioner (as defined in section 321(21) of the Energy
Policy and Conservation Act (42 U.S.C. 6291(21))) that--
``(A) notwithstanding subparagraph (E) of that
section, is a heating and cooling unit; and
``(B) is certified under the Energy Star program.
``(12) Residential central geothermal heat pump.--The term
`residential central geothermal heat pump' has the meaning
given the term `qualified geothermal heat pump property' in
section 25D(d)(5)(B) of the Internal Revenue Code of 1986.'';
(4) by inserting after paragraph (13) (as so redesignated)
the following:
``(14) Smart panel.--The term `smart panel' means an
electrical power distribution panel with an integrated
communications and energy management system capable of--
``(A) interoperability with electric utility
distribution networks; and
``(B) monitoring and controlling individual
circuits to ensure that the total load on the
electrical service does not exceed a programmed set-
point.''; and
(5) by adding at the end the following:
``(17) United states-made.--The term `United States-made',
with respect to an eligible building electrification product,
means that not less than 55 percent of the components of the
eligible building electrification product are mined, produced,
or manufactured, as applicable, in the United States, as
determined by the Secretary.
``(18) Upstream rebate.--The term `upstream rebate' means a
rebate provided by a State to a distributor or original
equipment manufacturer under a State program described in
subsection (b)(1)(B).''.
(b) Program.--Section 124 of the Energy Policy Act of 2005 (42
U.S.C. 15821) is amended--
(1) in subsection (b)(1)--
(A) by striking ``program to provide'' and
inserting the following: ``program--
``(A) to provide'';
(B) in subparagraph (A) (as so designated), by
adding ``or'' at the end after the semicolon; and
(C) by adding at the end the following:
``(B) to provide midstream rebates and upstream
rebates to original equipment manufacturers and
distributors, as applicable, for the manufacturing,
distribution, or shipment of eligible building
electrification products;'';
(2) in subsection (d)--
(A) by striking ``The allocation'' and inserting
the following:
``(1) In general.--The allocation''; and
(B) by adding at the end the following:
``(2) Disadvantaged businesses and individuals.--Of the
amount used by a State to carry out a State program described
in subsection (b)(1)(B), not less than 40 percent shall be used
to provide midstream rebates and upstream rebates--
``(A) to disadvantaged businesses; or
``(B) to original equipment manufacturers or
distributors that employ disadvantaged individuals.
``(3) Union facilities.--Of the amount used by a State to
carry out a State program described in subsection (b)(1)(B),
not less than 40 percent shall be used to provide midstream
rebates and upstream rebates to distributors and original
equipment manufacturers, as applicable, that own or operate
facilities operating under a collective bargaining agreement
negotiated by a labor organization (as defined in section 2 of
the National Labor Relations Act (29 U.S.C. 152)) in accordance
with the requirements of section 9 of the National Labor
Relations Act (29 U.S.C. 159).'';
(3) in subsection (e)--
(A) by redesignating paragraphs (1) through (3) as
subparagraphs (A), (C), and (D), respectively, and
indenting appropriately;
(B) in the matter preceding subparagraph (A) (as so
redesignated), by striking ``Rebates'' in the first
sentence and all that follows through ``The amount'' in
the second sentence and inserting the following:
``(1) In general.--Rebates may be provided to--
``(A) residential consumers that meet the
requirements of the State program described in
subsection (b)(1)(A); and
``(B) original equipment manufacturers and
distributors of eligible building electrification
products that meet the requirements of the State
program described in subsection (b)(1)(B).
``(2) Amount.--The amount''; and
(C) in paragraph (2) (as so designated)--
(i) in the matter preceding subparagraph
(A) (as so redesignated), by striking
``consideration--'' and inserting
``consideration, as applicable--''; and
(ii) by inserting after subparagraph (A)
(as so redesignated) the following:
``(B) the amount of any Federal or State tax
incentive available for the manufacturing or
distribution of eligible building electrification
products;''; and
(4) by striking subsection (f) and inserting the following:
``(f) Administrative Requirements for Recipients of Midstream and
Upstream Rebates.--
``(1) Pass-through.--
``(A) In general.--As a condition of receipt of a
midstream rebate or upstream rebate, a distributor or
original equipment manufacturer shall pass through not
less than 90 percent of the value of the midstream
rebate or upstream rebate, as applicable, to a
distributor or other customer in the form of a reduced
price for the purchase of an eligible building
electrification product.
``(B) Use of remainder.--After carrying out
subparagraph (A), a distributor or original equipment
manufacturer may retain not more than 10 percent of the
remainder of the applicable midstream rebate or
upstream rebate as a processing fee.
``(2) Coordination with existing programs.--An entity that
receives a midstream rebate or upstream rebate is encouraged to
coordinate with Federal and State agencies, electric utilities,
natural gas utilities, nonprofit organizations, and other
entities carrying out other relevant Federal or State rebate
programs.
``(3) No multiple midstream and upstream rebates.--An
entity that receives a midstream rebate or upstream rebate for
an eligible building electrification product may not receive--
``(A) an upstream rebate or midstream rebate,
respectively, for the same eligible building
electrification product; or
``(B) a second midstream rebate or upstream rebate,
respectively, for the same eligible building
electrification product.
``(4) Taxation.--A midstream rebate or upstream rebate
shall not be considered to be gross income of the recipient of
the rebate for purposes of the Internal Revenue Code of 1986.
``(g) Authorization of Appropriations.--There is authorized to be
appropriated to the Secretary to carry out this section to provide
allocations only to States that have established a State program
described in subsection (b)(1)(B) $10,000,000,000 for the period of
fiscal years 2023 through 2030.''.
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