[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7611 Introduced in House (IH)]
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118th CONGRESS
2d Session
H. R. 7611
To require the Secretary of Energy to establish a program to provide
loans to manufacturers of energy grid products and components.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 11, 2024
Mr. Higgins of Louisiana introduced the following bill; which was
referred to the Committee on Energy and Commerce, and in addition to
the Committee on Appropriations, for a period to be subsequently
determined by the Speaker, in each case for consideration of such
provisions as fall within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To require the Secretary of Energy to establish a program to provide
loans to manufacturers of energy grid products and components.
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 ``Facilitating the Reshoring of Energy
Grid Component Manufacturing Act of 2024''.
SEC. 2. ENERGY GRID PRODUCT AND COMPONENT MANUFACTURING IN THE UNITED
STATES.
(a) Definitions.--In this section:
(1) Component.--The term ``component'' means any part or
element of an energy grid product.
(2) Eligible project.--The term ``eligible project'' means
a project to reequip, expand, or establish (including through
new construction) a manufacturing facility in the United States
to produce energy grid products or components.
(3) Energy grid product.--The term ``energy grid product''
means--
(A) a bulk-power system (as defined in section
215(a) of the Federal Power Act (16 U.S.C. 824o(a)));
(B) a large power transformer;
(C) a switchgear or breaker;
(D) a converter;
(E) a direct current filter;
(F) an alternating current switch or switchyard;
(G) an insulated-gate bipolar transistor;
(H) a capacitor;
(I) an inductor;
(J) an arrestor;
(K) a resistor;
(L) a distribution transformer;
(M) grain-oriented electrical steel;
(N) continuously transposed conduction (CTC) copper
wire;
(O) silicon steel;
(P) any insulating material; and
(Q) any other electrical equipment commonly used
for the transmission or distribution of electric energy
by public electric utilities.
(4) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
(b) Loan Program.--
(1) Establishment.--
(A) In general.--Not later than 180 days after the
date of enactment of this Act, and subject to the
availability of appropriated funds, the Secretary shall
establish and carry out a program to provide a total of
not more than $8,000,000,000 in loans to eligible
individuals and entities (as determined by the
Secretary) for the costs of activities relating to
eligible projects.
(B) Financing method.--
(i) In general.--Except as provided in
clause (ii), a loan under this subsection shall
be provided through the Federal Financing Bank,
with the full faith and credit of the United
States Government on the principal and
interest.
(ii) Cooperation with other institutions.--
A loan under this subsection may be provided in
cooperation with 1 or more banks or other
financial institutions through agreements to
participate on an immediate or deferred
(guaranteed) basis.
(C) Credit subsidy.--The full credit subsidy for
each loan provided under this subsection shall be paid
by the Secretary using appropriated funds.
(2) Application.--An individual or entity desiring a loan
under this subsection shall submit to the Secretary an
application at such time, in such manner, and containing such
information as the Secretary may require, including a written
assurance that--
(A) all laborers and mechanics employed by
contractors or subcontractors during any construction,
alteration, or repair that is financed, in whole or in
part, by a loan provided under this subsection shall be
paid wages at rates not less than those prevailing on
projects of a character similar in the locality, as
determined by the Secretary of Labor in accordance with
sections 3141 through 3144, 3146, and 3147 of title 40,
United States Code; and
(B) the Secretary of Labor shall, with respect to
the labor standards described in this paragraph, have
the authority and functions set forth in Reorganization
Plan Numbered 14 of 1950 (5 U.S.C. App.) and section
3145 of title 40, United States Code.
(3) Selection of loan recipients and eligible projects.--
(A) In general.--The Secretary may provide a loan
under this subsection if the Secretary determines
that--
(i) the loan recipient--
(I) has a reasonable prospect of
repaying the principal and interest on
the loan;
(II) will provide sufficient
information to the Secretary for the
Secretary to ensure that the loan
proceeds are expended efficiently and
effectively; and
(III) has met such other criteria
as may be established and published by
the Secretary; and
(ii) the amount of the loan (when combined
with amounts available to the loan recipient
from other sources) will be sufficient to carry
out the eligible project for which the loan is
provided.
(B) Reasonable prospect of repayment.--The
Secretary shall base a determination of whether there
is a reasonable prospect of repayment of the principal
and interest on a loan under subparagraph (A)(i)(I) on
a comprehensive evaluation of whether the loan
recipient has a reasonable prospect of repaying the
principal and interest, including, as applicable, an
evaluation of--
(i) the strength of the contractual terms
of the applicable eligible project (if
commercially reasonably available);
(ii) the forecast of noncontractual cash
flows supported by market projections from
reputable sources, as determined by the
Secretary;
(iii) cash sweeps and other structure
enhancements;
(iv) the projected financial strength of
the loan recipient--
(I) at the time of loan close; and
(II) throughout the loan term after
the applicable eligible project is
completed;
(v) the financial strength of the investors
and strategic partners of the loan recipient,
if applicable; and
(vi) other financial metrics and analyses
that are relied on by the private lending
community and nationally recognized credit
rating agencies, as determined to be
appropriate by the Secretary.
(4) Rates, terms, and repayment of loans.--A loan provided
under this subsection--
(A) shall have an interest rate that, as of the
date on which the loan is provided, is equal to the
cost of funds to the Department of the Treasury for
obligations of comparable maturity;
(B) shall have a term equal to the lesser of--
(i) the projected life, in years, of the
eligible project to be carried out using
proceeds from the loan, as determined by the
Secretary; and
(ii) 20 years;
(C) may be subject to a deferral in repayment for
not more than 5 years after the date on which the
eligible project carried out using proceeds from the
loan first begins operations, as determined by the
Secretary;
(D) shall be made by the Federal Financing Bank;
and
(E) shall be subject to the condition that the loan
is not subordinate to other financing.
(5) Conflicts of interest.--For each loan provided under
this subsection, the Secretary shall certify that political
influence did not affect the provision of the loan, including--
(A) selection of the eligible project for which the
loan was provided; and
(B) selection of the loan recipient.
(6) Administrative fee.--The Secretary may charge a fee for
the administrative and closing costs of a loan provided under
this subsection, subject to the condition that the fee does not
exceed the lesser of--
(A) $100,000; and
(B) 10 basis points of the principal amount of the
loan.
(c) Improvement.--Not later than 90 days after the date of
enactment of this Act, the Secretary shall promulgate an interim final
rule establishing regulations that the Secretary determines to be
necessary to administer this section and any loans provided by the
Secretary under subsection (b).
(d) Priority.--
(1) In general.--In providing loans under this section to
manufacturers (including component suppliers) that have
existing facilities, the Secretary shall give priority to
manufacturers that are seeking to expand manufacturing output
through--
(A) the establishment of 1 or more new facilities;
or
(B) the reopening of 1 or more facilities.
(2) Idle facilities.--A facility described in subparagraph
(A) or (B) of paragraph (1) may be sitting idle as of the date
on which the applicable loan is provided under this section.
(e) Set Aside for Small Energy Grid Product Manufacturers and
Component Suppliers.--
(1) Definition of covered firm.--In this subsection, the
term ``covered firm'' means a firm that--
(A) employs fewer than 500 individuals; and
(B) manufactures energy grid products or
components.
(2) Set aside.--Of the amounts used to provide loans each
fiscal year under subsection (b), the Secretary shall use not
less than 5 percent to provide loans to--
(A) covered firms; or
(B) consortia led by covered firms.
(f) Appointment and Pay of Personnel.--
(1) In general.--The Secretary may use direct hiring
authority pursuant to section 3304(a)(3) of title 5, United
States Code, to appoint such professional and administrative
personnel as the Secretary determines to be necessary to carry
out this section and any functions of the Secretary under this
section.
(2) Rate of pay.--The rate of pay for a person appointed
pursuant to paragraph (1) shall not exceed the maximum rate
payable for GS-15 of the General Schedule under chapter 53 of
title 5, United States Code.
(3) Consultants.--The Secretary may retain, pursuant to
section 1901 of title 41, United States Code, such consultants
as the Secretary determines to be necessary to carry out this
section and any functions of the Secretary under this section.
(g) Outreach.--In carrying out this section, the Secretary shall--
(1) provide assistance with the completion of applications
for loans under this section; and
(2) conduct outreach, including through conferences and
online programs, to disseminate information about loans under
this section to potential applicants.
(h) Report.--Not later than 2 years after the date of enactment of
this Act, and every 2 years thereafter, the Secretary shall submit to
Congress a report on the status of projects supported by a loan under
this section, including--
(1) a list of projects for which a loan was provided under
this section, including, with respect to each project--
(A) the loan amount; and
(B) the construction status of the project;
(2) the status of the loan repayment for each project,
including future repayment projections;
(3) data regarding the number of direct and indirect jobs
retained, restored, or created by financed projects;
(4) a projection of the number of new projects for which
the Secretary expects to provide a loan under this section
during the 2-year period beginning on the date of the report,
including the projected aggregate loan amount over that 2-year
period;
(5) an evaluation of ongoing compliance with the assurances
and commitments (and the accuracy of any predictions) made by
applicants pursuant to paragraphs (2) and (3) of subsection
(b);
(6) the total number of applications received by the
Secretary each year; and
(7) any other metrics that the Secretary determines to be
appropriate.
(i) Funding.--
(1) Rescission.--Of the unobligated balance of amounts made
available by section 129 of division A of the Consolidated
Security, Disaster Assistance, and Continuing Appropriations
Act, 2009 (Public Law 110-329; 122 Stat. 3578), $2,400,000,000
are rescinded.
(2) Direct appropriation.--If sufficient unobligated
amounts made available by section 129 of division A of the
Consolidated Security, Disaster Assistance, and Continuing
Appropriations Act, 2009 (Public Law 110-329; 122 Stat. 3578),
are available on the date of enactment of this Act to execute
the entire rescission described in paragraph (1), on the day
after the execution of the entire rescission, there is
appropriated to the Secretary, out of amounts in the Treasury
not otherwise appropriated, $2,400,000,000 to carry out this
section, to remain available until expended.
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