,,ii #aah? ,,congress #b;d ,session ,s4 #efbb ,,9 ,,! ,,s5ate ,,( ,,! ,,unit$ ,,/ates ,decemb] #ai 7legislative day1 ,decemb] #af71 #bjbd,mr4 ,m>key 7= himself & ,mr4 ,s&]s7 introduc$ ! foll[+ bill2 :i* 0 read twice & ref]r$ to ! ,committee on ,f9ance ,a ,,bill ,to am5d ! ,en]gy ,policy ,act ( #bjje to e/abli% an en]gy effici5t appliance rebate program to provide rebates = ! manufactur+1 di/ribution1 contract+1 in/allation1 & s]vic+ ( c]ta9 build+ electrification products & indu/rial heat pumps1 & = o!r purposes4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,in/all+ ,clean ,effici5t ,en]gy ,ha/5s ,our ,transition ,act ( #bjbd or ! ,,icee ,,hot ,act ( #bjbd4 #b4 ,en]gy effici5t appliance rebate program 7a7 ,def9itions ,section #abd7;a7 ( ! ,en]gy ,policy ,act ( #bjje 7#db ,u4,s4,c4 #aehba7;a77 is am5d$-- 7#a7 by r$esignat+ p>agraphs 7#a7 ?r\gh 7#e7 z p>agraphs 7#h71 7#i71 7#ae71 7#ag71 & 7#ah71 respectively2 7#b7 by ins]t+ be=e p>agraph 7#h7 7z s r$esignat$7 ! foll[+3 7#a7 ,contractor ,! t]m contractor means any individual or bus9ess entity t is lic5s$ "u applicable ,/ate or local laws to in/all1 s]vice1 ma9ta91 or repair eligible build+ electrification products1 includ+ g5]al contractors1 electricians1 ,,hvac speciali/s1 & plumb]s engag$ 9 ! in/allation & s]vic+ ( en]gy-effici5t appliances4 7#b7 ,disadvantag$ bus9ess ,! t]m disadvantag$ bus9ess means a contractor1 di/ributor1 or orig9al equipm5t manufactur] t is a small bus9ess p>ticipat+ 9 ! m9ority small bus9ess & capital own]%ip developm5t program ( ! ,small ,bus9ess ,adm9i/ration pursuant to section #h7;a7 ( ! ,small ,bus9ess ,act 7#ae ,u4,s4,c4 #fcg7;a77 7commonly kn[n z ! #h7;a7 program74 7#c7 ,disadvantag$ individual ,! t]m disadvantag$ individual means-- 7,a7 a ,black ,am]ican1 ,hispanic ,am]ican1 ,native ,am]ican1 ,asian ,pacific ,am]ican1 any o!r m9ority1 or any o!r individual f\nd to be disadvantag$ by ! ,small ,bus9ess ,adm9i/ration pursuant to section #h7;a7 ( ! ,small ,bus9ess ,act 7#ae ,u4,s4,c4 #fcg7;a772 & 7,b7 a woman4 7#d7 ,di/ributor ,! t]m di/ributor means any individual or bus9ess entity to :i* an eligible build+ electrification product is deliv]$ or sold = purposes ( di/ribution 9 comm]ce4 7#e7 ,electric resid5tial cold climate heat pump ,! t]m electric resid5tial cold climate heat pump means a heat pump t-- 7,a7 is c]tifi$ "u ! ,en]gy ,/> program2 7,b7 is optimiz$ = peak heat+ & "p-load cool+ p]=mance2 & 7,c7 meets-- 7i7 ! cold climate air s\rce heat pump specifications ( ! ,nor!a/ ,en]gy ,effici5cy ,p>tn]%ips2 or 7ii7 ! crit]ia = cold climate heat pumps "u ! ,en]gy ,/> program4 7#f7 ,electric resid5tial heat pump wat] heat] ,! t]m electric resid5tial heat pump wat] heat] means an electric heat pump wat] heat] = resid5tial use t is c]tifi$ "u ! ,en]gy ,/> program4 7#g7 ,eligible build+ electrification product ,! t]m eligible build+ electrification product means any ( ! foll[+ ,unit$ ,/ates-made products or _! critical compon5ts3 7,a7 ,an electric resid5tial heat pump wat] heat]4 7,b7 ,an electric resid5tial air s\rce heat pump4 7,c7 ,an electric resid5tial c5tral geo!rmal heat pump4 7,d7 ,an electric resid5tial cold climate heat pump4 7,e7 ,an induction or non9duction electric smoo? /ove1 flat cooktop1 range1 or ov54 7,f7 ,an electric heat pump clo!s dry] t-- 7i7 is c]tifi$ "u ! ,en]gy ,/> program2 or 7ii7 meets a m /r+5t /&>d1 z det]m9$ by ! ,secret>y1 if ! ,secret>y det]m9es a m /r+5t /&>d is appropriate4 7,g7 ,a sm>t panel or a panel t is "p ( an electric load or s]vice c5t] upgrade4 7,h7 ,any product describ$ 9 subp>agraphs 7,a7 ?r\gh 7,g7 in/all$ 9 a comm]cial or multifamily build+1 subject to ! condition t ! product meets applicable p]=mance /&>ds1 z det]m9$ by ! ,secret>y4 7,i7 ,any o!r electric product1 z det]m9$ by ! ,secret>y4 2 7#c7 by ins]t+ aft] p>agraph 7#i7 7z s r$esignat$7 ! foll[+3 7#aj7 ,indu/rial heat pump ,! t]m indu/rial heat pump means a high-capacity heat pump t-- 7,a7 is capable ( provid+ !rmal en]gy at temp]atures above #fe degrees ,celsius or #aej degrees ,fahr5heit1 suitable = indu/rial processes1 includ+ manufactur+ process+1 dry+1 di/illation1 pa/eurization1 & /eam production2 7,b7 incorporates te*nology t-- 7i7 enables wa/e heat recov]y or en]gy reuse1 if feasible1 & conv]sion to useful !rmal output2 & 7ii7 adh]es to specifications e/abli%$ by ! ,secret>y to ensure !rmal effici5cy & r$uce c>bon emissions2 & 7,c7 meets recogniz$ p]=mance & effici5cy /&>ds = indu/rial applications1 z def9$ by ! ,am]ican ,society ( ,heat+1 ,refrig]at+1 & ,air-,condition+ ,eng9e]s1 or equival5t indu/ry /&>ds z specifi$ by ! ,secret>y4 7#aa7 ,mid/ream rebate ,! t]m mid/ream rebate means a rebate provid$ by a ,/ate to a di/ributor or contractor "u a ,/ate program describ$ 9 subsection 7b77#a77;,a77ii74 7#ab7 ,orig9al equipm5t manufactur] ,! t]m orig9al equipm5t manufactur] means an entity t manufactures eligible build+ electrification products4 7#ac7 ,resid5tial air s\rce heat pump ,! t]m resid5tial air s\rce heat pump means a heat pump or c5tral air condition] 7z def9$ 9 section #cba7ba7 ( ! ,en]gy ,policy & ,cons]vation ,act 7#db ,u4,s4,c4 #fbia7ba777 t-- 7,a7 not)/&+ subp>agraph 7,e7 ( t section1 is a heat+ & cool+ unit & includes bo? duct$ & ductless configurations2 & 7,b7 is c]tifi$ "u ! ,en]gy ,/> program4 7#ad7 ,resid5tial c5tral geo!rmal heat pump ,! t]m resid5tial c5tral geo!rmal heat pump means equipm5t design$ = resid5tial use t-- 7,a7 uses ! gr\nd or gr\ndwat] z a !rmal en]gy s\rce to provide heat+ & cool+2 & 7,b7 is c]tifi$ "u ! ,en]gy ,/> program or meets effici5cy & p]=mance /&>ds e/abli%$ by ! ,secret>y4 2 7#d7 by ins]t+ aft] p>agraph 7#ae7 7z s r$esignat$7 ! foll[+3 7#af7 ,sm>t panel ,! t]m sm>t panel means an electrical p[] di/ribution panel ) an integrat$ communications & en]gy managem5t sy/em capable (-- 7,a7 int]op]ability ) electric utility di/ribution networks2 & 7,b7 monitor+ & controll+ individual circuits to ensure t ! total load on ! electrical s]vice does n exce$ a programm$ set-po9t4 2 7#e7 9 p>agraph 7#ah7 7z s r$esignat$71 by /rik+ 7b77#a7 & ins]t+ 7b77#a77;,a72 & 7#f7 by add+ at ! end ! foll[+3 7#ai7 ,unit$ ,/ates-made 7,a7 ,9 g5]al ,! t]m ,unit$ ,/ates-made1 ) respect to an eligible build+ electrification product1 means t ! total co/ ( compon5ts ( ! eligible build+ electrification product t are m9$1 produc$1 or manufactur$1 z applicable1 9 ! ,unit$ ,/ates1 z det]m9$ by ! ,secret>y1 is n less ?an #ee p]c5t ( ! total co/ ( all ( ! compon5ts ( ! eligible build+ electrification product1 unless a waiv] is made 9 accordance ) subp>agraph 7,b74 7,b7 ,waiv] 7i7 ,9 g5]al ,! ,secret>y may waive ! requirem5t "u subp>agraph 7,a7 :]e ! t]m ,unit$ ,/ates-made is us$ 9 ?is subtitle if ! ,secret>y f9ds t-- 7,i7 apply+ ! requirem5t w\ld be inconsi/5t ) ! public int]e/2 7,,ii7 #a or m compon5ts ( ! eligible build+ electrification product are n produc$ 9 ! ,unit$ ,/ates 9 suffici5t & reasonably available quantities or ( a satisfactory quality2 or 7,,iii7 ! inclusion ( #a or m compon5ts ( ! eligible build+ electrification product produc$ 9 ! ,unit$ ,/ates w increase ! co/ ( ! build+ electrification product by m ?an #be p]c5t4 7ii7 ,writt5 ,ju/ification ,be=e issu+ a waiv] "u clause 7i71 ! ,secret>y %all-- 7,i7 make publicly available 9 an easily accessible location on a website designat$ by ! ,(fice ( ,managem5t & ,budget & on ! website ( ! ,dep>tm5t ( ,en]gy a detail$ writt5 explanation = ! propos$ det]m9ation to issue ! waiv]2 & 7,,ii7 provide a p]iod ( n less ?an #ae days = public comm5t on ! propos$ waiv]4 7#bj7 ,up/ream rebate ,! t]m up/ream rebate means a rebate provid$ by a ,/ate to a di/ributor or orig9al equipm5t manufactur] "u a ,/ate program describ$ 9 subsection 7b77#a77;,a77ii74 4 7b7 ,program ,section #abd ( ! ,en]gy ,policy ,act ( #bjje 7#db ,u4,s4,c4 #aehba7 is am5d$-- 7#a7 9 subsection 7b7-- 7,a7 by r$esignat+ p>agraphs 7#a7 ?r\gh 7#c7 z subp>agraphs 7,a7 ?r\gh 7,c71 respectively1 & ind5t+ appropriately2 7,b7 9 ! matt] prec$+ subp>agraph 7,a7 7z s r$esignat$71 by /rik+ ,a ,/ate & ins]t+ ! foll[+3 7#a7 ,9 g5]al ,a ,/ate 2 7,c7 9 subp>agraph 7,a7 7z s r$esignat$7-- 7i7 by /rik+ program to provide & ins]t+ ! foll[+3 8program-- 7i7 to provide 2 7ii7 9 clause 7i7 7z s designat$71 by add+ or at ! end aft] ! semicolon2 & 7iii7 by add+ at ! end ! foll[+3 7ii7 to provide mid/ream rebates & up/ream rebates to contractors1 di/ributors1 & orig9al equipm5t manufactur]s1 z applicable1 = #cj p]c5t ( ! co/ ( manufactur+1 di/ribut+1 in/all+1 or s]vic+ an eligible build+ electrification product or product compon5t or an indu/rial heat pump2 2 & 7,d7 by add+ at ! end ! foll[+3 7#b7 ,purposes ,! purpose ( ! rebates describ$ 9 p>agraph 7#a77;,a77ii7 are-- 7,a7 to resolve b>ri]s t limit ! effici5t production1 di/ribution1 & deploym5t ( eligible build+ electrification products & indu/rial heat pumps1 includ+-- 7i7 by increas+ ! production & availability ( resid5tial & indu/rial-grade critical compon5ts1 su* z rev]s+ valves1 v>iable spe$ compressors1 or o!r p>ts necess>y = prop] functionality 9 bo? heat+ & cool+ modes2 & 7ii7 address+ o!r factors1 su* z m>ket *all5ges1 product te*nical requirem5ts1 & environm5tal & equity goals1 ) respect to ^? b>ri]s1 z det]m9$ by ! ,secret>y1 ?r\gh ! public /akehold] process describ$ 9 subsection 7g72 & 7,b7 9 ! case ( contractors in/all+ eligible build+ electrification products & indu/rial heat pumps-- 7i7 enc\rages ! in/allation ( appropriately siz$ heat pumps or o!r electrification products to enc\rage ! adoption ( "r-siz$ & en]gy-effici5t te*nologies2 & 7ii7 supports ! pass+ ?r\gh ( rebates to end us]s1 to ! ext5t practicable4 2 7#b7 9 subsection 7c77#a71 by /rik+ subsection 7f7 & ins]t+ subsection 7h72 7#c7 9 subsection 7d7-- 7,a7 by /rik+ ,! allocation & ins]t+ ! foll[+3 7#a7 ,9 g5]al ,! allocation 2 & 7,b7 by add+ at ! end ! foll[+3 7#b7 ,disadvantag$ bus9esses & individuals ,( ! am\nt us$ by a ,/ate to c>ry out a ,/ate program describ$ 9 subsection 7b77#a77;,a77ii71 to ! ext5t practicable = specific te*nologies1 z det]m9$ by ! ,secret>y1 n less ?an #dj p]c5t %all be us$ to provide mid/ream rebates & up/ream rebates-- 7,a7 to disadvantag$ bus9esses2 or 7,b7 to contractors1 di/ributors1 or orig9al equipm5t manufactur]s #dj p]c5t ( ! employees ( :i* are disadvantag$ individuals4 2 7#d7 9 subsection 7e7-- 7,a7 by r$esignat+ p>agraphs 7#a7 ?r\gh 7#c7 z subp>agraphs 7,a71 7,c71 & 7,d71 respectively1 & ind5t+ appropriately2 7,b7 9 ! matt] prec$+ subp>agraph 7,a7 7z s r$esignat$71 by /rik+ ,rebates 9 ! fir/ s5t5ce & all t foll[s ?r\gh ,! am\nt 9 ! second s5t5ce & ins]t+ ! foll[+3 7#a7 ,9 g5]al ,rebates may be provid$ to-- 7,a7 resid5tial consum]s t meet ! requirem5ts ( ! applicable ,/ate program describ$ 9 subsection 7b77#a77;,a72 & 7,b7 contractors1 di/ributors1 & orig9al equipm5t manufactur]s ( eligible build+ electrification products & indu/rial heat pumps t meet ! requirem5ts ( ! ,/ate program describ$ 9 clause 7ii7 ( t subsection4 7#b7 ,am\nt ,! am\nt 2 7,c7 9 p>agraph 7#b7 7z s designat$7-- 7i7 9 ! matt] prec$+ subp>agraph 7,a7 7z s r$esignat$7-- 7,i7 by ins]t+ "u a ,/ate program describ$ 9 subsection 7b77#a77;,a77i7 aft] rebate2 & 7,,ii7 by /rik+ consid]ation-- & ins]t+ consid]ation1 z applicable--2 & 7ii7 by ins]t+ aft] subp>agraph 7,a7 7z s r$esignat$7 ! foll[+3 7,b7 ! am\nt ( any ,f$]al or ,/ate tax inc5tive available = ! manufactur+1 di/ribution1 or in/allation ( eligible build+ electrification products & indu/rial heat pumps1 includ+ tax cr$its or rebates (f]$ "u-- 7i7 section #be;,c1 #de,l1 or #dh;,c ( ! ,int]nal ,rev5ue ,code ( #aihf2 7ii7 a ,,homes rebate program 7z def9$ 9 section #ejaba7;d7 ( ,public ,law #aag-afi 7commonly kn[n z ! ,inflation ,r$uction ,act ( #bjbb7 7#db ,u4,s4,c4 #ahgie7;d7772 or 7iii7 a high-effici5cy electric home rebate program 7z def9$ 9 section #ejabb7;d7 ( t ,act 7#db ,u4,s4,c4 #ahgie;a7d7772 2 & 7,d7 by add+ at ! end ! foll[+3 7#c7 ,additional rebates 7,a7 ,union labor ,"u a ,/ate program describ$ 9 subsection 7b77#a77;,a77ii71 a ,/ate en]gy (fice %all provide an additional inc5tive ( #aj p]c5t ( ! mid/ream or up/ream rebate value to contractors1 di/ributors1 & orig9al equipm5t manufactur]s1 z applicable1 t op]ate "u a collective b>ga9+ agreem5t negotiat$ by a labor organization 7z def9$ 9 section #b ( ! ,national ,labor ,relations ,act 7#bi ,u4,s4,c4 #aeb77 9 accordance ) ! requirem5ts ( section #i ( ! ,national ,labor ,relations ,act 7#bi ,u4,s4,c4 #aei74 7,b7 ,high-effici5cy build+ electrification products ,"u a ,/ate program describ$ 9 subsection 7b77#a77;,a77ii71 a ,/ate en]gy (fice %all provide additional rebates ( n m ?an #aj p]c5t ( ! co/ ( manufactur+1 di/ribut+1 in/all+1 or s]vic+ an eligible build+ electrification product t exce$s basel9e /&>ds "u ! ,en]gy ,/> program or o!r effici5cy b5*m>ks approv$ by ! ,secret>y4 7,c7 ,high-effici5cy indu/rial heat pumps ,"u a ,/ate program describ$ 9 subsection 7b77#a77;,a77ii71 a ,/ate en]gy (fice %all provide additional rebates ( n m ?an #aj p]c5t ( ! co/ ( manufactur+1 di/ribut+1 in/all+1 or s]vic+ an indu/rial heat pump bas$ on sy/em capacity1 en]gy sav+s1 emissions r$uction1 & heat recov]y functions t exce$ basel9e /&>ds = indu/rial en]gy effici5cy1 z det]m9$ by ! ,/ate en]gy (fice4 2 7#e7 by r$esignat+ subsection 7f7 z subsection 7h72 7#f7 by ins]t+ aft] subsection 7e7 ! foll[+3 7f7 ,adm9i/rative requirem5ts = recipi5ts ( mid/ream & up/ream rebates 7#a7 ,pass-?r\gh 7,a7 ,9 g5]al ,"u a ,/ate program describ$ 9 subsection 7b77#a77;,a77ii71 z a condition ( receipt ( a mid/ream rebate or up/ream rebate1 a contractor1 di/ributor1 or orig9al equipm5t manufactur] %all pass ?r\gh n less ?an #he p]c5t ( ! value ( ! mid/ream rebate or up/ream rebate1 z applicable1 to ! next entity 9 ! supply *a9 or ! end consum] 9 ! =m ( a r$uc$ price = ! pur*ase ( an eligible build+ electrification product or an indu/rial heat pump4 7,b7 ,use ( rema9d] ,aft] c>ry+ out subp>agraph 7,a71 a contractor1 di/ributor1 or orig9al equipm5t manufactur] may reta9 n m ?an #ae p]c5t ( ! rema9d] ( ! applicable mid/ream rebate or up/ream rebate4 7#b7 ,p>ticipation 9 multiple build+ electrification & heat pump programs 7,a7 ,9 g5]al ,! ,secret>y1 9 consultation ) ! ,secret>y ( ! ,treasury1 %all issue guidel9es to simplify p>ticipation 9 a ,/ate program describ$ 9 subsection 7b77#a77;,a77ii7 & any o!r ,f$]al or ,/ate rebate or tax cr$it program relat+ to en]gy effici5cy upgrades1 build+ electrification products1 & indu/rial heat pumps-- 7i7 to ensure t eligible entities c receive all applicable rebates & tax cr$its2 & 7ii7 to m9imize adm9i/rative hurdles by provid+ cle> guidance on inc5tive /ack+ & docum5tation requirem5ts consi/5t ) ,f$]al & ,/ate build+ electrification product & indu/rial heat pump /&>ds4 7,b7 ,automatic application ,if a rebate is claim$ by an eligible entity "u a ,/ate program describ$ 9 subsection 7b77#a77;,a77ii71 any o!r ,f$]al rebate = :i* ! entity w\ld be eligible relat+ to en]gy effici5cy upgrades1 build+ electrification products1 or indu/rial heat pumps1 z applicable1 %all automatically apply4 7#c7 ,coord9ation ,an entity t receives a mid/ream rebate or up/ream rebate = an eligible build+ electrification product or indu/rial heat pump "u a ,/ate program describ$ 9 subsection 7b77#a77;,a77ii7 is enc\rag$ to coord9ate ) ,f$]al & ,/ate ag5cies1 utilities1 nonpr(it organizations1 & o!r entities c>ry+ out o!r relevant ,f$]al or ,/ate rebate programs4 7#d7 ,no multiple mid/ream & up/ream rebates ,an entity t receives a mid/ream rebate or up/ream rebate "u a ,/ate program describ$ 9 subsection 7b77#a77;,a77ii7 = an eligible build+ electrification product may n receive-- 7,a7 an up/ream rebate or mid/ream rebate1 respectively1 = ! same eligible build+ electrification product2 or 7,b7 a second mid/ream rebate or up/ream rebate1 respectively1 = ! same eligible build+ electrification product4 7#e7 ,taxation ,a mid/ream rebate or up/ream rebate "u a ,/ate program describ$ 9 subsection 7b77#a77;,a77ii7 %all n be consid]$ to be gross income ( ! recipi5t ( ! rebate = purposes ( ! ,int]nal ,rev5ue ,code ( #aihf4 7g7 ,public /akehold] process 7#a7 ,9 g5]al ,! ,secret>y %all e/abli% a process to solicit input f public /akehold]s 9 e/abli%+ p>amet]s = a ,/ate program describ$ 9 subsection 7b77#a77;,a77ii74 7#b7 ,issues ,! ,secret>y %all solicit input "u ! process e/abli%$ "u p>agraph 7#a7 on ! foll[+ issues3 7,a7 ,meet+ ! purposes describ$ 9 subsection 7b77#b74 7,b7 ,boo/+ production & availability ( resid5tial & indu/rial heat pumps4 7,c7 ,p>amet]s = rebate /ructure & eligibility requirem5ts4 7,d7 ,te*nical /&>ds1 especially = indu/rial heat pumps & new resid5tial heat pump te*nology n cov]$ "u ! ,en]gy ,/> program4 7,e7 ,any o!r relevant issue1 z det]m9$ by ! ,secret>y4 2 & 7#g7 9 subsection 7h7 7z s r$esignat$7-- 7,a7 by /rik+ ,!re are & ins]t+ ! foll[+3 7#a7 ,9 g5]al ,!re are 2 & 7,b7 by add+ at ! end ! foll[+3 7#b7 ,additional au?orization ( appropriations ,!re is au?oriz$ to be appropriat$ to ! ,secret>y1 to provide allocations "u subsection 7c7 only to ,/ates t h e/abli%$ a ,/ate program describ$ 9 subsection 7b77#a77;,a77ii71 #aj1jjj1jjj1jjj = ! p]iod ( fiscal ye>s #bjbe ?r\gh #bjcb4 4