[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 5622 Introduced in Senate (IS)]
<DOC>
118th CONGRESS
2d Session
S. 5622
To amend the Energy Policy Act of 2005 to establish an energy efficient
appliance rebate program to provide rebates for the manufacturing,
distribution, contracting, installation, and servicing of certain
building electrification products and industrial heat pumps, and for
other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
December 19 (legislative day, December 16), 2024
Mr. Markey (for himself and Mr. Sanders) 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, contracting, installation, and servicing of certain
building electrification products and industrial heat pumps, 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 2024'' or the ``ICEE HOT Act of 2024''.
SEC. 2. 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 (8), (9), (15), (17), and (18), respectively;
(2) by inserting before paragraph (8) (as so redesignated)
the following:
``(1) Contractor.--The term `contractor' means any
individual or business entity that is licensed under applicable
State or local laws to install, service, maintain, or repair
eligible building electrification products, including general
contractors, electricians, HVAC specialists, and plumbers
engaged in the installation and servicing of energy-efficient
appliances.
``(2) Disadvantaged business.--The term `disadvantaged
business' means a contractor, 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').
``(3) 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.
``(4) Distributor.--The term `distributor' means any
individual or business entity to which an eligible building
electrification product is delivered or sold for purposes of
distribution in commerce.
``(5) 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.
``(6) 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.
``(7) Eligible building electrification product.--The term
`eligible building electrification product' means any of the
following United States-made products or their critical
components:
``(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 product described in subparagraphs (A)
through (G) installed in a commercial or multifamily
building, subject to the condition that the product
meets applicable performance standards, as determined
by the Secretary.
``(I) Any other electric product, as determined by
the Secretary.'';
(3) by inserting after paragraph (9) (as so redesignated)
the following:
``(10) Industrial heat pump.--The term `industrial heat
pump' means a high-capacity heat pump that--
``(A) is capable of providing thermal energy at
temperatures above 65 degrees Celsius or 150 degrees
Fahrenheit, suitable for industrial processes,
including manufacturing processing, drying,
distillation, pasteurization, and steam production;
``(B) incorporates technology that--
``(i) enables waste heat recovery or energy
reuse, if feasible, and conversion to useful
thermal output; and
``(ii) adheres to specifications
established by the Secretary to ensure thermal
efficiency and reduce carbon emissions; and
``(C) meets recognized performance and efficiency
standards for industrial applications, as defined by
the American Society of Heating, Refrigerating, and
Air-Conditioning Engineers, or equivalent industry
standards as specified by the Secretary.
``(11) Midstream rebate.--The term `midstream rebate' means
a rebate provided by a State to a distributor or contractor
under a State program described in subsection (b)(1)(A)(ii).
``(12) Original equipment manufacturer.--The term `original
equipment manufacturer' means an entity that manufactures
eligible building electrification products.
``(13) 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 includes
both ducted and ductless configurations; and
``(B) is certified under the Energy Star program.
``(14) Residential central geothermal heat pump.--The term
`residential central geothermal heat pump' means equipment
designed for residential use that--
``(A) uses the ground or groundwater as a thermal
energy source to provide heating and cooling; and
``(B) is certified under the Energy Star program or
meets efficiency and performance standards established
by the Secretary.'';
(4) by inserting after paragraph (15) (as so redesignated)
the following:
``(16) 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.'';
(5) in paragraph (18) (as so redesignated), by striking
``(b)(1)'' and inserting ``(b)(1)(A)''; and
(6) by adding at the end the following:
``(19) United states-made.--
``(A) In general.--The term `United States-made',
with respect to an eligible building electrification
product, means that the total cost of components of the
eligible building electrification product that are
mined, produced, or manufactured, as applicable, in the
United States, as determined by the Secretary, is not
less than 55 percent of the total cost of all of the
components of the eligible building electrification
product, unless a waiver is made in accordance with
subparagraph (B).
``(B) Waiver.--
``(i) In general.--The Secretary may waive
the requirement under subparagraph (A) where
the term `United States-made' is used in this
subtitle if the Secretary finds that--
``(I) applying the requirement
would be inconsistent with the public
interest;
``(II) 1 or more components of the
eligible building electrification
product are not produced in the United
States in sufficient and reasonably
available quantities or of a
satisfactory quality; or
``(III) the inclusion of 1 or more
components of the eligible building
electrification product produced in the
United States will increase the cost of
the building electrification product by
more than 25 percent.
``(ii) Written justification.--Before
issuing a waiver under clause (i), the
Secretary shall--
``(I) make publicly available in an
easily accessible location on a website
designated by the Office of Management
and Budget and on the website of the
Department of Energy a detailed written
explanation for the proposed
determination to issue the waiver; and
``(II) provide a period of not less
than 15 days for public comment on the
proposed waiver.
``(20) 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)(A)(ii).''.
(b) Program.--Section 124 of the Energy Policy Act of 2005 (42
U.S.C. 15821) is amended--
(1) in subsection (b)--
(A) by redesignating paragraphs (1) through (3) as
subparagraphs (A) through (C), respectively, and
indenting appropriately;
(B) in the matter preceding subparagraph (A) (as so
redesignated), by striking ``A State'' and inserting
the following:
``(1) In general.--A State'';
(C) in subparagraph (A) (as so redesignated)--
(i) by striking ``program to provide'' and
inserting the following: ``program--
``(i) to provide'';
(ii) in clause (i) (as so designated), by
adding ``or'' at the end after the semicolon;
and
(iii) by adding at the end the following:
``(ii) to provide midstream rebates and
upstream rebates to contractors, distributors,
and original equipment manufacturers, as
applicable, for 30 percent of the cost of
manufacturing, distributing, installing, or
servicing an eligible building electrification
product or product component or an industrial
heat pump;''; and
(D) by adding at the end the following:
``(2) Purposes.--The purpose of the rebates described in
paragraph (1)(A)(ii) are--
``(A) to resolve barriers that limit the efficient
production, distribution, and deployment of eligible
building electrification products and industrial heat
pumps, including--
``(i) by increasing the production and
availability of residential and industrial-
grade critical components, such as reversing
valves, variable speed compressors, or other
parts necessary for proper functionality in
both heating and cooling modes; and
``(ii) addressing other factors, such as
market challenges, product technical
requirements, and environmental and equity
goals, with respect to those barriers, as
determined by the Secretary, through the public
stakeholder process described in subsection
(g); and
``(B) in the case of contractors installing
eligible building electrification products and
industrial heat pumps--
``(i) encourages the installation of
appropriately sized heat pumps or other
electrification products to encourage the
adoption of right-sized and energy-efficient
technologies; and
``(ii) supports the passing through of
rebates to end users, to the extent
practicable.'';
(2) in subsection (c)(1), by striking ``subsection (f)''
and inserting ``subsection (h)'';
(3) 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)(A)(ii), to the extent practicable for
specific technologies, as determined by the Secretary, not less
than 40 percent shall be used to provide midstream rebates and
upstream rebates--
``(A) to disadvantaged businesses; or
``(B) to contractors, distributors, or original
equipment manufacturers 40 percent of the employees of
which are disadvantaged individuals.'';
(4) 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 applicable State program described
in subsection (b)(1)(A); and
``(B) contractors, distributors, and original
equipment manufacturers of eligible building
electrification products and industrial heat pumps that
meet the requirements of the State program described in
clause (ii) of that subsection.
``(2) Amount.--The amount'';
(C) in paragraph (2) (as so designated)--
(i) in the matter preceding subparagraph
(A) (as so redesignated)--
(I) by inserting ``under a State
program described in subsection
(b)(1)(A)(i)'' after ``rebate''; and
(II) 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,
distribution, or installation of eligible building
electrification products and industrial heat pumps,
including tax credits or rebates offered under--
``(i) section 25C, 45L, or 48C of the
Internal Revenue Code of 1986;
``(ii) a HOMES rebate program (as defined
in section 50121(d) of Public Law 117-169
(commonly known as the `Inflation Reduction Act
of 2022') (42 U.S.C. 18795(d))); or
``(iii) a high-efficiency electric home
rebate program (as defined in section 50122(d)
of that Act (42 U.S.C. 18795a(d)));''; and
(D) by adding at the end the following:
``(3) Additional rebates.--
``(A) Union labor.--Under a State program described
in subsection (b)(1)(A)(ii), a State energy office
shall provide an additional incentive of 10 percent of
the midstream or upstream rebate value to contractors,
distributors, and original equipment manufacturers, as
applicable, that operate 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).
``(B) High-efficiency building electrification
products.--Under a State program described in
subsection (b)(1)(A)(ii), a State energy office shall
provide additional rebates of not more than 10 percent
of the cost of manufacturing, distributing, installing,
or servicing an eligible building electrification
product that exceeds baseline standards under the
Energy Star program or other efficiency benchmarks
approved by the Secretary.
``(C) High-efficiency industrial heat pumps.--Under
a State program described in subsection (b)(1)(A)(ii),
a State energy office shall provide additional rebates
of not more than 10 percent of the cost of
manufacturing, distributing, installing, or servicing
an industrial heat pump based on system capacity,
energy savings, emissions reduction, and heat recovery
functions that exceed baseline standards for industrial
energy efficiency, as determined by the State energy
office.'';
(5) by redesignating subsection (f) as subsection (h);
(6) by inserting after subsection (e) the following:
``(f) Administrative Requirements for Recipients of Midstream and
Upstream Rebates.--
``(1) Pass-through.--
``(A) In general.--Under a State program described
in subsection (b)(1)(A)(ii), as a condition of receipt
of a midstream rebate or upstream rebate, a contractor,
distributor, or original equipment manufacturer shall
pass through not less than 85 percent of the value of
the midstream rebate or upstream rebate, as applicable,
to the next entity in the supply chain or the end
consumer in the form of a reduced price for the
purchase of an eligible building electrification
product or an industrial heat pump.
``(B) Use of remainder.--After carrying out
subparagraph (A), a contractor, distributor, or
original equipment manufacturer may retain not more
than 15 percent of the remainder of the applicable
midstream rebate or upstream rebate.
``(2) Participation in multiple building electrification
and heat pump programs.--
``(A) In general.--The Secretary, in consultation
with the Secretary of the Treasury, shall issue
guidelines to simplify participation in a State program
described in subsection (b)(1)(A)(ii) and any other
Federal or State rebate or tax credit program relating
to energy efficiency upgrades, building electrification
products, and industrial heat pumps--
``(i) to ensure that eligible entities can
receive all applicable rebates and tax credits;
and
``(ii) to minimize administrative hurdles
by providing clear guidance on incentive
stacking and documentation requirements
consistent with Federal and State building
electrification product and industrial heat
pump standards.
``(B) Automatic application.--If a rebate is
claimed by an eligible entity under a State program
described in subsection (b)(1)(A)(ii), any other
Federal rebate for which the entity would be eligible
relating to energy efficiency upgrades, building
electrification products, or industrial heat pumps, as
applicable, shall automatically apply.
``(3) Coordination.--An entity that receives a midstream
rebate or upstream rebate for an eligible building
electrification product or industrial heat pump under a State
program described in subsection (b)(1)(A)(ii) is encouraged to
coordinate with Federal and State agencies, utilities,
nonprofit organizations, and other entities carrying out other
relevant Federal or State rebate programs.
``(4) No multiple midstream and upstream rebates.--An
entity that receives a midstream rebate or upstream rebate
under a State program described in subsection (b)(1)(A)(ii) 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.
``(5) Taxation.--A midstream rebate or upstream rebate
under a State program described in subsection (b)(1)(A)(ii)
shall not be considered to be gross income of the recipient of
the rebate for purposes of the Internal Revenue Code of 1986.
``(g) Public Stakeholder Process.--
``(1) In general.--The Secretary shall establish a process
to solicit input from public stakeholders in establishing
parameters for a State program described in subsection
(b)(1)(A)(ii).
``(2) Issues.--The Secretary shall solicit input under the
process established under paragraph (1) on the following
issues:
``(A) Meeting the purposes described in subsection
(b)(2).
``(B) Boosting production and availability of
residential and industrial heat pumps.
``(C) Parameters for rebate structure and
eligibility requirements.
``(D) Technical standards, especially for
industrial heat pumps and new residential heat pump
technology not covered under the Energy Star program.
``(E) Any other relevant issue, as determined by
the Secretary.''; and
(7) in subsection (h) (as so redesignated)--
(A) by striking ``There are'' and inserting the
following:
``(1) In general.--There are''; and
(B) by adding at the end the following:
``(2) Additional authorization of appropriations.--There is
authorized to be appropriated to the Secretary, to provide
allocations under subsection (c) only to States that have
established a State program described in subsection
(b)(1)(A)(ii), $10,000,000,000 for the period of fiscal years
2025 through 2032.''.
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