[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 3682 Introduced in Senate (IS)]
110th CONGRESS
2d Session
S. 3682
To provide incentives to small business concerns for innovative energy-
efficient technologies and products, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
October 2 (legislative day, September 17), 2008
Ms. Snowe (for herself, Ms. Cantwell, and Mr. Stevens) introduced the
following bill; which was read twice and referred to the Committee on
Energy and Natural Resources
_______________________________________________________________________
A BILL
To provide incentives to small business concerns for innovative energy-
efficient technologies and products, 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; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Small Business
Energy Innovation Act of 2008''.
(b) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--DEPARTMENT OF ENERGY
Sec. 101. Grants to small business concerns for innovative energy-
efficient technologies and products.
Sec. 102. Loan guarantees for small business concerns for innovative
energy-efficient technologies and products.
TITLE II--SMALL BUSINESS ADMINISTRATION
Sec. 201. Director of Energy Innovation.
TITLE I--DEPARTMENT OF ENERGY
SEC. 101. GRANTS TO SMALL BUSINESS CONCERNS FOR INNOVATIVE ENERGY-
EFFICIENT TECHNOLOGIES AND PRODUCTS.
Title XVII of the Energy Policy Act of 2005 (42 U.S.C. 16511 et
seq.) is amended--
(1) by redesignating section 1704 (42 U.S.C. 16514) as
section 1706; and
(2) by inserting after section 1703 (42 U.S.C. 16513) the
following:
``SEC. 1704. GRANTS TO SMALL BUSINESS CONCERNS FOR INNOVATIVE ENERGY-
EFFICIENT TECHNOLOGIES AND PRODUCTS.
``(a) Definitions.--In this section:
``(1) Secretary.--The term `Secretary' means the Secretary
of Energy, in consultation with the Administrator of the Small
Business Administration.
``(2) Small business concern.--
``(A) In general.--The term `small business
concern' means a small business concern (within the
meaning of section 3 of the Small Business Act (15
U.S.C. 632)), except as the Secretary otherwise
determines appropriate.
``(B) Inclusion.--The term `small business concern'
includes a micro-innovator (as defined by the
Secretary).
``(b) Grants.--The Secretary shall make grants to small business
concerns for the development of innovative energy-efficient
technologies and products described in subsection (c) in 2 phases
described in subsections (d) and (e).
``(c) Categories.--A grant under this section may be used to carry
out a project in any of the following categories:
``(1) Renewable energy systems.
``(2) Advanced energy-efficiency systems, including systems
for improved commercial and residential building efficiencies.
``(3) Advanced transportation fuels (including cellulosic
ethanol) for residential, industrial, or transportation
applications.
``(4) Carbon capture and sequestration practices and
technologies, including agricultural and forestry practices
that store and sequester carbon.
``(5) Efficient electrical generation, transmission, and
distribution technologies.
``(6) Efficient end-use energy technologies.
``(7) Production facilities for fuel efficient vehicles,
including hybrid and advanced diesel vehicles.
``(8) Pollution control equipment.
``(9) Any other category determined appropriate by the
Secretary.
``(d) Phase 1 Grants.--
``(1) Eligibility.--
``(A) In general.--To be eligible for a phase 1
grant under this section, a recipient shall--
``(i) be a small business concern that
employs not more than 100 full-time employees;
and
``(ii) have a primary goal of making an
innovative energy-efficient technology or
product a commercial technology or product not
later than 5 years after the date of receipt of
the grant.
``(B) Selection criteria.--The Secretary shall
publish the criteria to be used in any competition for
grants under this subsection.
``(2) Competition.--In making phase 1 grants under this
subsection, the Secretary shall--
``(A) award any grant pursuant to a full and open
competition; and
``(B) advertise any competition under this section.
``(3) Maximum number of grants.--An entity shall be
eligible to receive under this subsection phase 1 grants for
not more than 2 fiscal years for each project carried out under
this section.
``(4) Amount of grant.--The amount of a phase 1 grant made
to an eligible entity for a project under this subsection shall
not be--
``(A) less than $25,000; or
``(B) more than $250,000.
``(e) Phase 2 Grants.--
``(1) Eligibility.--To be eligible for a phase 2 grant
under this section, a recipient shall--
``(A) have received a phase 1 grant under
subsection (d); and
``(B) demonstrate to the Secretary (through a
review process established by the Secretary) that--
``(i) the phase 1 grant has been used to
develop an innovative energy-efficient
technology or product described in subsection
(c); and
``(ii) the innovative energy-efficient
technology or product is viable.
``(2) Maximum number of grants.--An entity shall be
eligible to receive under this subsection phase 2 grants for
not more than 3 fiscal years for each project carried out under
this section.
``(3) Amount of grant.--The amount of a phase 2 grant made
to an eligible entity for a project under this subsection shall
not be--
``(A) less than $250,000; or
``(B) more than $1,000,000.
``(f) State Distribution.--The Secretary shall ensure, to the
maximum extent practicable, that the number of grants made under this
section (regardless of the dollar amounts) are equally dispersed among
small, medium, and large States.
``(g) Termination.--The Secretary may terminate providing grants to
a recipient under this section if the Secretary determines that the
recipient is not eligible for the grants or is not complying with the
terms and conditions of the grant.
``(h) Regulations.--Not later than 1 year after the date of
enactment of the Small Business Energy Innovation Act of 2008, the
Secretary shall promulgate such regulations as are necessary to carry
out this section.
``(i) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $20,000,000 for each of fiscal
years 2009 through 2013.''.
SEC. 102. LOAN GUARANTEES FOR SMALL BUSINESS CONCERNS FOR INNOVATIVE
ENERGY-EFFICIENT TECHNOLOGIES AND PRODUCTS.
Title XVII of the Energy Policy Act of 2005 (42 U.S.C. 16511 et
seq.) (as amended by section 101) is amended by inserting after section
1704 the following:
``SEC. 1705. LOAN GUARANTEES FOR SMALL BUSINESS CONCERNS FOR INNOVATIVE
ENERGY-EFFICIENT TECHNOLOGIES AND PRODUCTS.
``(a) Definitions.--In this section:
``(1) Secretary.--The term `Secretary' means the Secretary
of Energy, in consultation with the Administrator of the Small
Business Administration.
``(2) Small business concern.--
``(A) In general.--The term `small business
concern' means a small business concern (within the
meaning of section 3 of the Small Business Act (15
U.S.C. 632)), except as the Secretary otherwise
determines appropriate.
``(B) Inclusion.--The term `small business concern'
includes a micro-innovator (as defined by the
Secretary).
``(b) Loan Guarantees.--
``(1) Authority.--The Secretary may make guarantees for
loans made to small business concerns for the development of
innovative energy-efficient technologies and products.
``(2) Amount.--In making guarantees under this section, the
Secretary may guarantee the repayment of not more than 90
percent of the loan amount for a loan that does not exceed
$10,000,000.
``(c) Eligibility.--
``(1) In general.--To be eligible for a loan guarantee
under this section, a recipient shall--
``(A) be a small business concern; and
``(B) have a primary goal of making an innovative
energy-efficient technology or product a commercial
technology or product not later than 5 years after the
date of receipt of the loan guarantee.
``(2) Selection criteria.--The Secretary shall publish the
criteria to be used in any competition for loan guarantees
under this section.
``(d) Categories.--A loan may be guaranteed under this section to
carry out a project in any of the following categories:
``(1) Renewable energy systems.
``(2) Advanced energy-efficiency systems including systems
for improved commercial and residential building efficiencies.
``(3) Advanced transportation fuels (including cellulosic
ethanol) for residential, industrial, or transportation
applications.
``(4) Carbon capture and sequestration practices and
technologies, including agricultural and forestry practices
that store and sequester carbon.
``(5) Efficient electrical generation, transmission, and
distribution technologies.
``(6) Efficient end-use energy technologies.
``(7) Production facilities for fuel efficient vehicles,
including hybrid and advanced diesel vehicles.
``(8) Pollution control equipment.
``(9) Any other category determined appropriate by the
Secretary.
``(e) Terms and Conditions.--
``(1) In general.--Except as otherwise provided in this
section, a loan guaranteed under this section shall be subject
to the terms and conditions of section 1702 and this section
and such terms and conditions as the Secretary may prescribe.
``(2) Repayment.--A loan may not be guaranteed under this
section unless the Secretary determines that--
``(A) the lender is responsible;
``(B) there is a reasonable assurance of repayment;
and
``(C) adequate provisions are made for--
``(i) servicing the loan on reasonable
terms; and
``(ii) protecting the financial interest of
the United States;
``(3) Collateral or security.--An eligible entity shall
provide significant collateral or security for repayment of a
loan guaranteed under this section, as determined by the
Secretary.
``(f) Interest Rate Buydown.--The Secretary may buy down the
interest rate of a loan guaranteed under this section by no more than 2
percent.
``(g) Regulations.--Not later than 1 year after the date of
enactment of the Small Business Energy Innovation Act of 2008, the
Secretary shall promulgate such regulations as are necessary to carry
out this section, including regulations that establish--
``(1) lending standards for loans guaranteed under this
section; and
``(2) standards for use in periodically assessing credit
risk and eligibility requirements for loans guaranteed loans
under this section.
``(h) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $70,000,000 for each of fiscal
years 2009 through 2013.''.
TITLE II--SMALL BUSINESS ADMINISTRATION
SEC. 201. DIRECTOR OF ENERGY INNOVATION.
(a) In General.--The Small Business Act (15 U.S.C. 631 et seq.) is
amended--
(1) by redesignating section 44 (15 U.S.C. 631 note; Public
Law 85-536) as section 45; and
(2) by inserting after section 43 (15 U.S.C. 657o) the
following:
``SEC. 44. DIRECTOR OF ENERGY INNOVATION.
``(a) Director of Energy Innovation.--
``(1) In general.--There shall be in the Administration a
Director of Energy Innovation, who shall--
``(A) be appointed by the Administrator;
``(B) have documented experience in working on
energy or innovation related issues; and
``(C) coordinate the energy innovation activities
of the Administration, as determined by the
Administrator, which shall include promoting small
business concerns that are engaged in promoting energy
independence.
``(2) Employment status.--The Administrator shall establish
the position of Director of Energy Innovation as--
``(A) a position at GS-15 of the General Schedule;
or
``(B) a Senior Executive Service position to be
filled by a career appointee, as defined under section
3132(a)(4) of title 5, United States Code.
``(3) Implementation of programs.--The Director of Energy
Innovation shall work with the offices of the Administration on
issues relating to energy under the programs of the
Administration, including the technical assistance programs of
the Administration, the Small Business Development Center
Program under section 21, the women's business center program
under section 29, and the Service Corps of Retired Executives
established under section 8(b)(1)(B).
``(4) Authorization of appropriations.--There are
authorized to be appropriated such sums as are necessary to
carry out this subsection.
``(b) Energy Innovation Grant Program.--
``(1) Definitions.--In this subsection:
``(A) Eligible organization.--The term `eligible
organization' means an organization that--
``(i) is a private, nonprofit organization,
including a private, nonprofit organization
that is an institution of higher education, as
defined in section 101(a) of the Higher
Education Act of 1965 (20 U.S.C. 1001(a));
``(ii) is capable of providing technical
assistance relating to--
``(I) renewable energy systems;
``(II) advanced energy efficiency
systems, including systems for improved
commercial and residential building
efficiencies;
``(III) advanced transportation
fuels (including cellulosic ethanol)
for residential, industrial, or
transportation applications;
``(IV) carbon capture and
sequestration practices and
technologies, including agricultural
and forestry practices that store and
sequester carbon;
``(V) efficient electrical
generation, transmission, and
distribution technologies;
``(VI) efficient end-use energy
technologies;
``(VII) production facilities for
fuel efficient vehicles, including
hybrid and advanced diesel vehicles;
``(VIII) pollution control
equipment; or
``(IX) any other type of energy
innovation project determined
appropriate by the Director of Energy
Innovation; and
``(iii) meets any other criteria
established by the Director of Energy
Innovation under paragraph (3).
``(B) Energy innovation.--The term `energy
innovation project' means a project from the following
categories:
``(i) Renewable energy systems.
``(ii) Energy efficiency, including
improved commercial and residential building
efficiencies.
``(iii) Advanced transportation fuels
(including cellulosic ethanol) for residential,
industrial, or transportation applications.
``(iv) Efficient electrical generation,
transmission, and distribution technologies.
``(v) Efficient end-use energy
technologies.
``(vi) Production facilities for fuel
efficient vehicles, including hybrid and
advanced diesel vehicles.
``(vii) Pollution control equipment.
``(viii) Any other category determined
appropriate by the Administrator.
``(2) Establishment.--The Administrator, acting through the
Director of Energy Innovation, shall establish an energy
innovation grant program, under which the Director of Energy
Innovation may make grants on a competitive basis to eligible
organizations.
``(3) Criteria for eligible organizations.--The Director of
Energy Innovation shall establish and publish criteria for
determining whether an organization is an eligible
organization.
``(4) Amount and period of grants.--A grant under this
subsection--
``(A) shall be for not less than $100,000 or more
than $500,000 for a fiscal year;
``(B) may be for a period of not more than 5 years;
and
``(C) may be renewed, as determined appropriate by
the Director of Energy Innovation.
``(5) Use of funds.--A grant under this subsection may be
used to establish a program to provide assistance to small
business concerns in carrying out an energy innovation project,
including establishing educational curriculum, creating a
technical assistance center, and providing technical assistance
online.
``(6) Distribution of grants.--The Director of Energy
Innovation shall ensure, to the maximum extent practicable,
that the number of grants under this subsection made to States
with small, medium, and large populations (as determined by the
Administrator) is equal.
``(7) Cost-sharing requirement.--The Federal share of the
total cost of carrying out a program described in paragraph (5)
shall be not more than 75 percent.
``(8) Notice.--The Director of Energy Innovation shall
advertise the grant program under this subsection.
``(9) Regulations.--Not later than 1 year after the date of
enactment of the Small Business Energy Innovation Act of 2008,
the Administrator shall promulgate regulations to carry out the
program under this subsection.
``(10) Authorization of appropriations.--There is
authorized to be appropriated $40,000,000 for each of fiscal
years 2009 through 2013 to carry out this subsection.
``(c) Coordination of Energy Innovation Programs.--
``(1) In general.--The Director of Energy Innovation shall
ensure that the energy innovation programs of the
Administration are coordinated, to the maximum extent
practicable, with the energy programs of the Department of
Commerce, the Department of Energy, the Environmental
Protection Agency, and other Federal departments and agencies,
as determined appropriate by the Administrator.
``(2) Technical assistance programs.--The Director of
Energy Innovation shall--
``(A) coordinate with the head of the technical
assistance programs of the Administration (including
the Small Business Development Center Program under
section 21, the women's business center program under
section 29, and the Service Corps of Retired Executives
established under section 8(b)(1)(B)) to create
programs to provide technical assistance for the grant
and loan programs under the Small Business Energy
Innovation Act of 2008 or an amendment made by that
Act; and
``(B) work to leverage the resources and expand the
energy innovation technical assistance programs of
other Federal departments and agencies.''.
(b) Appointment of First Director of Energy Innovation Programs.--
The first individual appointed as the Director of Energy Innovation
Programs under section 44(a)(1) of the Small Business Act, as added by
subsection (a) of this section, may, if determined appropriate by the
Administrator of the Small Business Administration, be an individual
who is employed by the Small Business Administration on the date of
enactment of this Act.
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