[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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