# State Industrial Competitiveness Act of 2021: Plain Language Summary

This bill creates a new federal funding program to help manufacturers become more energy-efficient and competitive. The federal government would provide money to states and Native American tribes to run what's called a "flex-tech energy program." Essentially, states and tribes would use these funds to help factories and manufacturing plants figure out how to use less energy and operate more efficiently, which saves them money on utility bills while also reducing emissions.

Here's how it would work in practice: A manufacturing company could get help from qualified engineers hired through the state program to conduct a detailed energy audit of their facility. These engineers would examine everything from heating and cooling systems to compressed air equipment and lighting, then recommend specific upgrades like installing more efficient motors, better insulation, renewable energy systems, or new manufacturing technologies. The program would then help pay for some of these improvements. For example, a small factory might get assistance to install solar panels or upgrade to more efficient machinery, with the program covering part of the cost. The bill specifically sets aside at least 5 percent of all funding for Native American tribes and manufacturers in tribal areas, recognizing they often have fewer resources to make these kinds of upgrades.

The bill would provide $100 million per year from 2022 through 2026 for this program. There are some built-in guardrails: states can't spend more than half their money on energy studies, can't spend more than half on implementing recommendations, and can't use more than 10 percent for administrative costs. No single factory can receive more than 5 percent of a state's total funding. The program is designed to help smaller manufacturers especially—those with fewer than 500 employees—by offering technical assistance tailored to their needs and encouraging them to adopt advanced manufacturing technologies like 3D printing and advanced sensors.

State Industrial Competitiveness Act of 2021

Tonko, Paul

State Industrial Competitiveness Act of 2021 This bill requires the Department of Energy, upon the request from states or Indian tribes with approved energy conservation plans under the Energy Policy and Conservation Act, to provide financial assistance to such states or Indian tribes for the development, implementation, improvement, or expansion of a flex-tech energy program to enhance manufacturing competitiveness.