Sec. 6. Renewable energy generation system component manufacturing supply chain assistance
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Not later than 180 days after the date of enactment of this Act, the Secretary of Energy (referred to in this section as the Secretary ) shall establish a program (referred to in this section as the program ) to provide financial assistance, including grants, direct loans, and loan guarantees, to eligible entities to carry out projects— to construct new facilities that manufacture components of covered energy-efficiency and renewable energy systems and technologies; and to retool, retrofit, or expand existing facilities that manufacture, or have the ability to manufacture, components of covered energy-efficiency and renewable energy systems and technologies.
To be eligible to receive financial assistance under the program, an eligible entity shall submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require. In providing financial assistance under the program, the Secretary shall give priority to projects that— have the potential to benefit an environmental justice community, including by reducing the pollution and emissions within, and the utility costs of, such a community; are strategically located near manufacturers of components of covered energy-efficiency and renewable energy systems and technologies to create a geographic concentration of those manufacturers in the manufacturing supply chain; have potential to directly and indirectly create domestic jobs, including jobs for low-income communities, dislocated workers, and workers from groups that are underrepresented in the manufacturing industry, including formerly incarcerated workers; will result in economic development or economic diversification in economically distressed regions or localities; and do not expedite or fast track any applicable environmental review processes.
A direct loan made under the program shall— bear interest at a rate that does not exceed a level that the Secretary determines to be appropriate; and be subject to such other terms and conditions as the Secretary determines to be appropriate. Section 988(c) of the Energy Policy Act of 2005 ( 42 U.S.C. 16352(c) ) shall apply to a grant made under the program. An eligible entity awarded financial assistance under the program shall enter into an agreement that specifies that, during the 5-year period immediately following the award of the financial assistance— the eligible entity will not— repurchase an equity security of the eligible entity or any parent company of the eligible entity that is listed on a national securities exchange, except to the extent required under a contractual obligation that is in effect as of the date of enactment of this Act; outsource or offshore jobs to a location outside of the United States; or abrogate existing collective bargaining agreements; and the eligible entity will remain neutral in any union organizing effort.
Financial assistance may not be awarded under the program to an eligible entity unless— the eligible entity has issued securities that are traded on a national securities exchange; and the Secretary of the Treasury receives a warrant or equity interest in the eligible entity; or in the case of an eligible entity other than an eligible entity described in clause (i)(I), the Secretary of the Treasury receives, in the discretion of the Secretary of the Treasury— a warrant or equity interest in the eligible entity; or a senior debt instrument issued by the eligible entity.
The terms and conditions of any warrant, equity interest, or senior debt instrument received under subparagraph (A)(ii) shall be set by the Secretary and shall meet the following requirements: Such terms and conditions shall be designed to provide for reasonable participation by the Secretary, for the benefit of taxpayers, in— equity appreciation in the case of a warrant or other equity interest; or a reasonable interest rate premium, in the case of a debt instrument. For the primary benefit of taxpayers, the Secretary may sell, exercise, or surrender a warrant or any senior debt instrument received under this paragraph.
The Secretary shall not exercise voting power with respect to any shares of common stock acquired under this paragraph. If the Secretary determines that an eligible entity cannot feasibly issue warrants or other equity interests as required by this paragraph, the Secretary may accept a senior debt instrument in an amount and on such terms as the Secretary determines appropriate. The Secretary shall establish standards and procedural requirements to secure free, prior, and informed consent of Indian Tribes to the siting of projects carried out with financial assistance under the program that affect Indian land, water, livelihoods, and culture, including off-reservation treaty-reserved rights to hunting, fishing, gathering, and protection of, and access to, sacred sites.
In carrying out the program, the Secretary may not provide financial assistance for projects that will source components of covered energy-efficiency and renewable energy systems and technologies from, or supply components of covered energy-efficiency and renewable energy systems and technologies to, entities that use forced labor (as defined in section 307 of the Tariff Act of 1930 ( 19 U.S.C. 1307 )). Not later than 1 year after the date of enactment of this Act, the Secretary shall conduct, and submit to Congress a report describing the results of, a study on— opportunities to convert fossil fuel infrastructure into renewable energy infrastructure; gaps in the current United States manufacturing supply chains for covered energy-efficiency and renewable energy systems and technologies; and benefits to the energy security of the United States of onshoring supply chains for covered energy-efficiency and renewable energy systems and technologies.
There is authorized to be appropriated to carry out this section $10,000,000,000 for the period of fiscal years 2023 through 2032.
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Sec. 6
Renewable energy generation system component manufacturing supply chain assistance
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