,,ii #aahth ,,congress #b;d ,session ,s4 #efbb ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,december #ai 7legislative day1 ,december #af71 #bjbd,mr4 ,markey 7for himself and ,mr4 ,sanders7 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 contracting1 installation1 and servicing of certain building electrification products and industrial heat pumps1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,installing ,clean ,efficient ,energy ,hastens ,our ,transition ,act of #bjbd or the ,,icee ,,hot ,act of #bjbd4 #b4 ,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#h71 7#i71 7#ae71 7#ag71 and 7#ah71 respectively2 7#b7 by inserting before paragraph 7#h7 7as so redesignated7 the following3 7#a7 ,contractor ,the term contractor means any individual or business entity that is licensed under applicable ,state or local laws to install1 service1 maintain1 or repair eligible building electrification products1 including general contractors1 electricians1 ,,hvac specialists1 and plumbers engaged in the installation and servicing of energy-efficient appliances4 7#b7 ,disadvantaged business ,the term disadvantaged business means a contractor1 distributor1 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#c7 ,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#d7 ,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 commerce4 7#e7 ,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#f7 ,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#g7 ,eligible building electrification product ,the term eligible building electrification product means any of the following ,united ,states-made products or their critical components3 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 product described in subparagraphs 7,a7 through 7,g7 installed in a commercial or multifamily building1 subject to the condition that the product meets applicable performance standards1 as determined by the ,secretary4 7,i7 ,any other electric product1 as determined by the ,secretary4 2 7#c7 by inserting after paragraph 7#i7 7as so redesignated7 the following3 7#aj7 ,industrial heat pump ,the term industrial heat pump means a high-capacity heat pump that-- 7,a7 is capable of providing thermal energy at temperatures above #fe degrees ,celsius or #aej degrees ,fahrenheit1 suitable for industrial processes1 including manufacturing processing1 drying1 distillation1 pasteurization1 and steam production2 7,b7 incorporates technology that-- 7i7 enables waste heat recovery or energy reuse1 if feasible1 and conversion to useful thermal output2 and 7ii7 adheres to specifications established by the ,secretary to ensure thermal efficiency and reduce carbon emissions2 and 7,c7 meets recognized performance and efficiency standards for industrial applications1 as defined by the ,american ,society of ,heating1 ,refrigerating1 and ,air-,conditioning ,engineers1 or equivalent industry standards as specified by the ,secretary4 7#aa7 ,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 7b77#a77;,a77ii74 7#ab7 ,original equipment manufacturer ,the term original equipment manufacturer means an entity that manufactures eligible building electrification products4 7#ac7 ,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 unit and includes both ducted and ductless configurations2 and 7,b7 is certified under the ,energy ,star program4 7#ad7 ,residential central geothermal heat pump ,the term residential central geothermal heat pump means equipment designed for residential use that-- 7,a7 uses the ground or groundwater as a thermal energy source to provide heating and cooling2 and 7,b7 is certified under the ,energy ,star program or meets efficiency and performance standards established by the ,secretary4 2 7#d7 by inserting after paragraph 7#ae7 7as so redesignated7 the following3 7#af7 ,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 7#e7 in paragraph 7#ah7 7as so redesignated71 by striking 7b77#a7 and inserting 7b77#a77;,a72 and 7#f7 by adding at the end the following3 7#ai7 ,united ,states-made 7,a7 ,in general ,the term ,united ,states-made1 with respect to an eligible building electrification product1 means that the total cost of components of the eligible building electrification product that are mined1 produced1 or manufactured1 as applicable1 in the ,united ,states1 as determined by the ,secretary1 is not less than #ee percent of the total cost of all of the components of the eligible building electrification product1 unless a waiver is made in accordance with subparagraph 7,b74 7,b7 ,waiver 7i7 ,in general ,the ,secretary may waive the requirement under subparagraph 7,a7 where the term ,united ,states-made is used in this subtitle if the ,secretary finds that-- 7,i7 applying the requirement would be inconsistent with the public interest2 7,,ii7 #a 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 quality2 or 7,,iii7 the inclusion of #a 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 #be percent4 7ii7 ,written ,justification ,before issuing a waiver under clause 7i71 the ,secretary shall-- 7,i7 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 waiver2 and 7,,ii7 provide a period of not less than #ae days for public comment on the proposed waiver4 7#bj7 ,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;,a77ii74 4 7b7 ,program ,section #abd of the ,energy ,policy ,act of #bjje 7#db ,u4,s4,c4 #aehba7 is amended-- 7#a7 in subsection 7b7-- 7,a7 by redesignating paragraphs 7#a7 through 7#c7 as subparagraphs 7,a7 through 7,c71 respectively1 and indenting appropriately2 7,b7 in the matter preceding subparagraph 7,a7 7as so redesignated71 by striking ,a ,state and inserting the following3 7#a7 ,in general ,a ,state 2 7,c7 in subparagraph 7,a7 7as so redesignated7-- 7i7 by striking program to provide and inserting the following3 8program-- 7i7 to provide 2 7ii7 in clause 7i7 7as so designated71 by adding or at the end after the semicolon2 and 7iii7 by adding at the end the following3 7ii7 to provide midstream rebates and upstream rebates to contractors1 distributors1 and original equipment manufacturers1 as applicable1 for #cj percent of the cost of manufacturing1 distributing1 installing1 or servicing an eligible building electrification product or product component or an industrial heat pump2 2 and 7,d7 by adding at the end the following3 7#b7 ,purposes ,the purpose of the rebates described in paragraph 7#a77;,a77ii7 are-- 7,a7 to resolve barriers that limit the efficient production1 distribution1 and deployment of eligible building electrification products and industrial heat pumps1 including-- 7i7 by increasing the production and availability of residential and industrial-grade critical components1 such as reversing valves1 variable speed compressors1 or other parts necessary for proper functionality in both heating and cooling modes2 and 7ii7 addressing other factors1 such as market challenges1 product technical requirements1 and environmental and equity goals1 with respect to those barriers1 as determined by the ,secretary1 through the public stakeholder process described in subsection 7g72 and 7,b7 in the case of contractors installing eligible building electrification products and industrial heat pumps-- 7i7 encourages the installation of appropriately sized heat pumps or other electrification products to encourage the adoption of right-sized and energy-efficient technologies2 and 7ii7 supports the passing through of rebates to end users1 to the extent practicable4 2 7#b7 in subsection 7c77#a71 by striking subsection 7f7 and inserting subsection 7h72 7#c7 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;,a77ii71 to the extent practicable for specific technologies1 as determined by the ,secretary1 not less than #dj percent shall be used to provide midstream rebates and upstream rebates-- 7,a7 to disadvantaged businesses2 or 7,b7 to contractors1 distributors1 or original equipment manufacturers #dj percent of the employees of which are disadvantaged individuals4 2 7#d7 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 applicable ,state program described in subsection 7b77#a77;,a72 and 7,b7 contractors1 distributors1 and original equipment manufacturers of eligible building electrification products and industrial heat pumps that meet the requirements of the ,state program described in clause 7ii7 of that subsection4 7#b7 ,amount ,the amount 2 7,c7 in paragraph 7#b7 7as so designated7-- 7i7 in the matter preceding subparagraph 7,a7 7as so redesignated7-- 7,i7 by inserting under a ,state program described in subsection 7b77#a77;,a77i7 after rebate2 and 7,,ii7 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 manufacturing1 distribution1 or installation of eligible building electrification products and industrial heat pumps1 including tax credits or rebates offered under-- 7i7 section #be;,c1 #de,l1 or #dh;,c of the ,internal ,revenue ,code of #aihf2 7ii7 a ,,homes rebate program 7as defined in section #ejaba7;d7 of ,public ,law #aag-afi 7commonly known as the ,inflation ,reduction ,act of #bjbb7 7#db ,u4,s4,c4 #ahgie7;d7772 or 7iii7 a high-efficiency electric home rebate program 7as defined in section #ejabb7;d7 of that ,act 7#db ,u4,s4,c4 #ahgie;a7d7772 2 and 7,d7 by adding at the end the following3 7#c7 ,additional rebates 7,a7 ,union labor ,under a ,state program described in subsection 7b77#a77;,a77ii71 a ,state energy office shall provide an additional incentive of #aj percent of the midstream or upstream rebate value to contractors1 distributors1 and original equipment manufacturers1 as applicable1 that operate 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 7,b7 ,high-efficiency building electrification products ,under a ,state program described in subsection 7b77#a77;,a77ii71 a ,state energy office shall provide additional rebates of not more than #aj percent of the cost of manufacturing1 distributing1 installing1 or servicing an eligible building electrification product that exceeds baseline standards under the ,energy ,star program or other efficiency benchmarks approved by the ,secretary4 7,c7 ,high-efficiency industrial heat pumps ,under a ,state program described in subsection 7b77#a77;,a77ii71 a ,state energy office shall provide additional rebates of not more than #aj percent of the cost of manufacturing1 distributing1 installing1 or servicing an industrial heat pump based on system capacity1 energy savings1 emissions reduction1 and heat recovery functions that exceed baseline standards for industrial energy efficiency1 as determined by the ,state energy office4 2 7#e7 by redesignating subsection 7f7 as subsection 7h72 7#f7 by inserting after subsection 7e7 the following3 7f7 ,administrative requirements for recipients of midstream and upstream rebates 7#a7 ,pass-through 7,a7 ,in general ,under a ,state program described in subsection 7b77#a77;,a77ii71 as a condition of receipt of a midstream rebate or upstream rebate1 a contractor1 distributor1 or original equipment manufacturer shall pass through not less than #he percent of the value of the midstream rebate or upstream rebate1 as applicable1 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 pump4 7,b7 ,use of remainder ,after carrying out subparagraph 7,a71 a contractor1 distributor1 or original equipment manufacturer may retain not more than #ae percent of the remainder of the applicable midstream rebate or upstream rebate4 7#b7 ,participation in multiple building electrification and heat pump programs 7,a7 ,in general ,the ,secretary1 in consultation with the ,secretary of the ,treasury1 shall issue guidelines to simplify participation in a ,state program described in subsection 7b77#a77;,a77ii7 and any other ,federal or ,state rebate or tax credit program relating to energy efficiency upgrades1 building electrification products1 and industrial heat pumps-- 7i7 to ensure that eligible entities can receive all applicable rebates and tax credits2 and 7ii7 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 standards4 7,b7 ,automatic application ,if a rebate is claimed by an eligible entity under a ,state program described in subsection 7b77#a77;,a77ii71 any other ,federal rebate for which the entity would be eligible relating to energy efficiency upgrades1 building electrification products1 or industrial heat pumps1 as applicable1 shall automatically apply4 7#c7 ,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 7b77#a77;,a77ii7 is encouraged to coordinate with ,federal and ,state agencies1 utilities1 nonprofit organizations1 and other entities carrying out other relevant ,federal or ,state rebate programs4 7#d7 ,no multiple midstream and upstream rebates ,an entity that receives a midstream rebate or upstream rebate under a ,state program described in subsection 7b77#a77;,a77ii7 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#e7 ,taxation ,a midstream rebate or upstream rebate under a ,state program described in subsection 7b77#a77;,a77ii7 shall not be considered to be gross income of the recipient of the rebate for purposes of the ,internal ,revenue ,code of #aihf4 7g7 ,public stakeholder process 7#a7 ,in general ,the ,secretary shall establish a process to solicit input from public stakeholders in establishing parameters for a ,state program described in subsection 7b77#a77;,a77ii74 7#b7 ,issues ,the ,secretary shall solicit input under the process established under paragraph 7#a7 on the following issues3 7,a7 ,meeting the purposes described in subsection 7b77#b74 7,b7 ,boosting production and availability of residential and industrial heat pumps4 7,c7 ,parameters for rebate structure and eligibility requirements4 7,d7 ,technical standards1 especially for industrial heat pumps and new residential heat pump technology not covered under the ,energy ,star program4 7,e7 ,any other relevant issue1 as determined by the ,secretary4 2 and 7#g7 in subsection 7h7 7as so redesignated7-- 7,a7 by striking ,there are and inserting the following3 7#a7 ,in general ,there are 2 and 7,b7 by adding at the end the following3 7#b7 ,additional authorization of appropriations ,there is authorized to be appropriated to the ,secretary1 to provide allocations under subsection 7c7 only to ,states that have established a ,state program described in subsection 7b77#a77;,a77ii71 #aj1jjj1jjj1jjj for the period of fiscal years #bjbe through #bjcb4 4