,,ii #aagth ,,congress #b;d ,session ,s4 #dadd ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,may #d1 #bjbb,mr4 ,markey 7for himself1 ,ms4 ,warren1 ,mr4 ,sanders1 ,mr4 ,booker1 and ,ms4 ,smith7 introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to amend the ,energy ,policy ,act of #bjje to establish an energy efficient appliance rebate program to provide rebates for the manufacturing1 distribution1 and shipment of certain building electrification products1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,installing ,clean ,efficient ,energy ,hastens ,our ,transition ,act of #bjbb or the ,,icee ,,hot ,act of #bjbb4 #b4 ,findings ,congress finds that-- 7#a7 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 ,states1 protecting public health1 and combating the climate crisis2 7#b7 over the past #e years1 the ,united ,states has1 on average1 imported approximately #ejj1jjj barrels of oil per day from ,russia2 7#c7 almost #dj percent1 or #aif1ejj barrels per day1 of ,russian oil supplied to the ,united ,states can be replaced by swapping out the #e1cjj1jjj residential oil heating devices in the ,united ,states with efficient electric heat pumps2 7#d7 in #bjbj1 #ajd1jjj heat pump water heaters were installed in the ,united ,states2 7#e7 in #bjba1 #c1ijj1jjj air source heat pumps were installed in the ,united ,states2 7#f7 through the modified energy efficient appliance rebate program of the ,department of ,energy1 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 costs1 such as electric heat pumps and efficient electric appliances2 7#g7 #aj1jjj1jjj1jjj in midstream incentives and upstream incentives at #a1jjj per unit for cold climate and #ejj per unit for noncold climate would-- 7,a7 help the manufacture of an additional #g1ejj1jjj heat pumps in the ,united ,states2 and 7,b7 lay the groundwork to bring down manufacturing and distribution costs in the medium and long term1 thus transforming the heat pump marketplace2 and 7#h7 combined with climate justice and clean energy investment1 generation1 and domestic manufacturing incentives1 the incentives described in paragraph 7#f7 will provide additional support for national security1 climate action1 and consumer protection goals4 #c4 ,energy efficient appliance rebate program 7a7 ,definitions ,section #abd7;a7 of the ,energy ,policy ,act of #bjje 7#db ,u4,s4,c4 #aehba7;a77 is amended-- 7#a7 by redesignating paragraphs 7#a7 through 7#e7 as paragraphs 7#g71 7#h71 7#ac71 7#ae71 and 7#af71 respectively2 7#b7 by inserting before paragraph 7#g7 7as so redesignated7 the following3 7#a7 ,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 #h7;a7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcg7;a77 7commonly known as the #h7;a7 program74 7#b7 ,disadvantaged individual ,the term disadvantaged individual means-- 7,a7 a ,black ,american1 ,hispanic ,american1 ,native ,american1 ,asian ,pacific ,american1 any other minority1 or any other individual found to be disadvantaged by the ,small ,business ,administration pursuant to section #h7;a7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcg7;a772 and 7,b7 a woman4 7#c7 ,distributor ,the term distributor means a person to which an eligible building electrification product is delivered or sold for purposes of distribution in commerce4 7#d7 ,electric residential cold climate heat pump ,the term electric residential cold climate heat pump means a heat pump that-- 7,a7 is certified under the ,energy ,star program2 7,b7 is optimized for peak heating and part-load cooling performance2 and 7,c7 meets-- 7i7 the cold climate air source heat pump specifications of the ,northeast ,energy ,efficiency ,partnerships2 or 7ii7 the criteria for cold climate heat pumps under the ,energy ,star program4 7#e7 ,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 program4 7#f7 ,eligible building electrification product ,the term eligible building electrification product means any of the following ,united ,states-made products3 7,a7 ,an electric residential heat pump water heater4 7,b7 ,an electric residential air source heat pump4 7,c7 ,an electric residential central geothermal heat pump4 7,d7 ,an electric residential cold climate heat pump4 7,e7 ,an induction or noninduction electric smooth stove1 flat cooktop1 range1 or oven4 7,f7 ,an electric heat pump clothes dryer that-- 7i7 is certified under the ,energy ,star program2 or 7ii7 meets a more stringent standard1 as determined by the ,secretary1 if the ,secretary determines a more stringent standard is appropriate4 7,g7 ,a smart panel or a panel that is part of an electric load or service center upgrade4 7,h7 ,any other electric product1 as determined by the ,secretary4 2 7#c7 by inserting after paragraph 7#h7 7as so redesignated7 the following3 7#i7 ,midstream rebate ,the term midstream rebate means a rebate provided by a ,state to a distributor under a ,state program described in subsection 7b77#a77;,b74 7#aj7 ,original equipment manufacturer ,the term original equipment manufacturer means an entity that manufactures eligible building electrification products4 7#aa7 ,residential air source heat pump ,the term residential air source heat pump means a heat pump or central air conditioner 7as defined in section #cba7ba7 of the ,energy ,policy and ,conservation ,act 7#db ,u4,s4,c4 #fbia7ba777 that-- 7,a7 notwithstanding subparagraph 7,e7 of that section1 is a heating and cooling unit2 and 7,b7 is certified under the ,energy ,star program4 7#ab7 ,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 #be;,d7d77#e77;,b7 of the ,internal ,revenue ,code of #aihf4 2 7#d7 by inserting after paragraph 7#ac7 7as so redesignated7 the following3 7#ad7 ,smart panel ,the term smart panel means an electrical power distribution panel with an integrated communications and energy management system capable of-- 7,a7 interoperability with electric utility distribution networks2 and 7,b7 monitoring and controlling individual circuits to ensure that the total load on the electrical service does not exceed a programmed set-point4 2 and 7#e7 by adding at the end the following3 7#ag7 ,united ,states-made ,the term ,united ,states-made1 with respect to an eligible building electrification product1 means that not less than #ee percent of the components of the eligible building electrification product are mined1 produced1 or manufactured1 as applicable1 in the ,united ,states1 as determined by the ,secretary4 7#ah7 ,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 7b77#a77;,b74 4 7b7 ,program ,section #abd of the ,energy ,policy ,act of #bjje 7#db ,u4,s4,c4 #aehba7 is amended-- 7#a7 in subsection 7b77#a7-- 7,a7 by striking program to provide and inserting the following3 program-- 7,a7 to provide 2 7,b7 in subparagraph 7,a7 7as so designated71 by adding or at the end after the semicolon2 and 7,c7 by adding at the end the following3 7,b7 to provide midstream rebates and upstream rebates to original equipment manufacturers and distributors1 as applicable1 for the manufacturing1 distribution1 or shipment of eligible building electrification products2 2 7#b7 in subsection 7d7-- 7,a7 by striking ,the allocation and inserting the following3 7#a7 ,in general ,the allocation 2 and 7,b7 by adding at the end the following3 7#b7 ,disadvantaged businesses and individuals ,of the amount used by a ,state to carry out a ,state program described in subsection 7b77#a77;,b71 not less than #dj percent shall be used to provide midstream rebates and upstream rebates-- 7,a7 to disadvantaged businesses2 or 7,b7 to original equipment manufacturers or distributors that employ disadvantaged individuals4 7#c7 ,union facilities ,of the amount used by a ,state to carry out a ,state program described in subsection 7b77#a77;,b71 not less than #dj percent shall be used to provide midstream rebates and upstream rebates to distributors and original equipment manufacturers1 as applicable1 that own or operate facilities operating under a collective bargaining agreement negotiated by a labor organization 7as defined in section #b of the ,national ,labor ,relations ,act 7#bi ,u4,s4,c4 #aeb77 in accordance with the requirements of section #i of the ,national ,labor ,relations ,act 7#bi ,u4,s4,c4 #aei74 2 7#c7 in subsection 7e7-- 7,a7 by redesignating paragraphs 7#a7 through 7#c7 as subparagraphs 7,a71 7,c71 and 7,d71 respectively1 and indenting appropriately2 7,b7 in the matter preceding subparagraph 7,a7 7as so redesignated71 by striking ,rebates in the first sentence and all that follows through ,the amount in the second sentence and inserting the following3 7#a7 ,in general ,rebates may be provided to-- 7,a7 residential consumers that meet the requirements of the ,state program described in subsection 7b77#a77;,a72 and 7,b7 original equipment manufacturers and distributors of eligible building electrification products that meet the requirements of the ,state program described in subsection 7b77#a77;,b74 7#b7 ,amount ,the amount 2 and 7,c7 in paragraph 7#b7 7as so designated7-- 7i7 in the matter preceding subparagraph 7,a7 7as so redesignated71 by striking consideration-- and inserting consideration1 as applicable--2 and 7ii7 by inserting after subparagraph 7,a7 7as so redesignated7 the following3 7,b7 the amount of any ,federal or ,state tax incentive available for the manufacturing or distribution of eligible building electrification products2 2 and 7#d7 by striking subsection 7f7 and inserting the following3 7f7 ,administrative requirements for recipients of midstream and upstream rebates 7#a7 ,pass-through 7,a7 ,in general ,as a condition of receipt of a midstream rebate or upstream rebate1 a distributor or original equipment manufacturer shall pass through not less than #ij percent of the value of the midstream rebate or upstream rebate1 as applicable1 to a distributor or other customer in the form of a reduced price for the purchase of an eligible building electrification product4 7,b7 ,use of remainder ,after carrying out subparagraph 7,a71 a distributor or original equipment manufacturer may retain not more than #aj percent of the remainder of the applicable midstream rebate or upstream rebate as a processing fee4 7#b7 ,coordination with existing programs ,an entity that receives a midstream rebate or upstream rebate is encouraged to coordinate with ,federal and ,state agencies1 electric utilities1 natural gas utilities1 nonprofit organizations1 and other entities carrying out other relevant ,federal or ,state rebate programs4 7#c7 ,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-- 7,a7 an upstream rebate or midstream rebate1 respectively1 for the same eligible building electrification product2 or 7,b7 a second midstream rebate or upstream rebate1 respectively1 for the same eligible building electrification product4 7#d7 ,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 #aihf4 7g7 ,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 7b77#a77;,b7 #aj1jjj1jjj1jjj for the period of fiscal years #bjbc through #bjcj4 4