Overview
Title
To support and fund the Federal procurement of clean energy products, and for other purposes.
ELI5 AI
The "Buy Green Act of 2024" is a plan to help the government buy products that are good for the environment, like clean energy, and it sets aside a lot of money to do this while making sure that the businesses involved treat their workers fairly.
Summary AI
The "Buy Green Act of 2024" aims to promote the Federal government's purchase of clean energy products and establish a Clean Energy Fund by 2026. It provides guidelines for Federal agencies and offers grants to state, tribal, and local governments to buy eco-friendly products, with a focus on supporting small businesses and communities affected by climate change. The bill also sets labor standards and requires compliance with environmental regulations, ensuring fair wages, neutral labor policies, and sustainable practices in manufacturing. An advisory board and the Comptroller General will oversee the program's implementation and reporting.
Published
Keywords AI
Sources
Bill Statistics
Size
Language
Complexity
AnalysisAI
General Summary of the Bill
H.R. 10428, known as the "Buy Green Act of 2024," is a legislative effort aimed at supporting and funding federal procurement of clean energy products. The bill's primary focus is to establish the Clean Energy Fund by the Department of Energy, starting from January 1, 2026, with the intention of promoting the purchase of environmentally friendly products. It seeks to fund green procurement by state and local governments, modernize federal buildings, and replace federal vehicles with zero-emission models. A significant element of the bill is the involvement of small businesses and providing grants for innovative energy solutions. The legislation outlines detailed labor requirements and establishes the Green Procurement Oversight Advisory Board to ensure transparency and compliance.
Summary of Significant Issues
Several significant issues arise from the provisions outlined in the bill:
Appropriations Amount: The bill authorizes $1.5 trillion through 2045, which is substantial and raises concerns about potential wasteful spending if not adequately managed.
Oversight and Governance: There is a noted lack of detailed oversight mechanisms, particularly concerning the roles and actions of the Oversight Advisory Board, which could lead to misallocation of funds.
Broad Definitions: Terms such as "renewable energy source" and "covered product" are broad, which might inadvertently favor specific products or companies, potentially leading to loopholes.
Purchasing Requirements: Requirements for significant fund allocations to small businesses may clash with cost efficiency, questioning the balance between supporting small enterprises and prudent financial utilization.
Labor and Compliance Burdens: The outlined labor requirements, such as annual wage calculations and ensuring neutrality toward union labor, could present challenges for businesses, particularly smaller entities, due to increased administrative demands.
Buy American Provisions: The bill lacks clarity on exceptions and waivers under the Buy American mandate, causing potential ambiguity and conflicts.
Impact on the Public
The bill promises to significantly influence public sectors by promoting green energy integration into federal operations. By modernizing infrastructure with eco-friendly resources, the bill could drive environmental improvements and energy cost savings, benefiting the broader public. Additionally, efforts to engage small businesses could stimulate economic growth and job creation within this sector.
Impact on Stakeholders
Different stakeholders might experience varying impacts from this bill:
Government Entities: Federal agencies will need to adjust procurement practices to emphasize green products, potentially requiring additional training and administrative capacity.
Small Businesses: While the bill aims to support small businesses through procurement mandates, the administrative burdens and strict compliance requirements might present challenges, particularly for entities with limited resources.
Manufacturers: Companies involved in producing energy-efficient products may see increased opportunities for procurement; however, they must adhere to stringent environmental and labor standards.
Labor Unions and Workers: The labor provisions ensure fair wages and benefits, particularly for those involved in the manufacturing of covered products, aligning with labor union interests.
Environmental Advocates: The bill aligns with sustainability goals, providing a structured push towards cleaner energy practices and reduced carbon footprints in public sector operations.
In conclusion, while the "Buy Green Act of 2024" sets a forward-thinking agenda with potential environmental benefits and business opportunities, the implementation must be managed with clarity to avoid unintended challenges and ensure the effective use of taxpayers' funds.
Financial Assessment
The "Buy Green Act of 2024" seeks to enhance Federal procurement of clean energy products by establishing financial mechanisms and providing specific funding allocations. A significant financial focus of the bill is the establishment of the Clean Energy Fund and broader financial appropriations meant to support its objectives.
Financial Allocations and Spending
A primary component of the bill captures the authorization of appropriations for $1.5 trillion for the period from fiscal years 2026 through 2035. This large sum is intended to fund various initiatives outlined in the bill, with the intent that these funds remain available until January 1, 2045. Within this allocation:
- At least $750 billion is earmarked for the grant program aimed at state, tribal, and local governments.
- $250 billion is reserved for grants to eligible entities within the industry for activities that include retrofitting facilities and supporting environmentally responsible manufacturing capabilities.
The total appropriation is notable for its size, which covers a long time frame and aims to encompass a wide range of activities.
Financial Issues in the Bill
Potential Wasteful Spending: The size of the appropriation—$1.5 trillion—raises concerns about potential wasteful spending. Given the vast sum involved, there is a risk that without proper oversight and detailed spending plans, some funds may be mismanaged or used inefficiently.
Need for Effective Oversight: The creation of the Oversight Advisory Board aims to monitor the use of these funds. However, clarity is lacking regarding how this board will function and enforce oversight, which can lead to inefficiencies. Without robust checks, there may be opportunities for the misallocation of resources.
Allocation to Small Businesses: A notable provision requires that at least 20% of the funds given to Federal agencies be used to purchase products from small businesses and covered small businesses. While supporting small businesses is important, this could potentially conflict with securing the best value for procurement, potentially affecting efficiency and fund utilization.
Labor Requirements and Associated Costs: The bill sets specific labor standards that could incur additional administrative or financial burdens. For entities engaged in producing or selling products under this initiative, adhering to labor requirements such as a minimum wage of $17 per hour and neutrality toward organized labor could prove costly, especially for smaller businesses.
Buy American Provisions: While the bill mandates compliance with the "Buy American" standards in purchases, it does not thoroughly define how exceptions and waivers might be managed or implicit in these transactions. This ambiguity could lead to discrepancies in interpretation and application, potentially causing issues in cost control and product sourcing.
Conclusion
The "Buy Green Act of 2024" includes ambitious financial spending goals designed to bolster clean energy procurement across different levels of government and industry. However, its successful implementation will heavily depend on effective oversight, clear definitions, and strategies for allocating funds appropriately. Without addressing these concerns, there is a risk that the allocated funds may not achieve their intended effect efficiently or equitably.
Issues
The authorization of appropriations at $1,500,000,000,000 is extremely high, which might lead to potential wasteful spending if not properly managed. This is outlined in Section 3 ('Establishment of Clean Energy Fund').
The bill lacks detailed mechanisms for oversight, especially in terms of how funds will be monitored and the role of the Oversight Advisory Board, which creates potential for funds to be misallocated or used inefficiently. This is detailed in Section 3 ('Establishment of Clean Energy Fund') and Section 7 ('Green procurement oversight advisory board').
The definitions of terms like 'renewable energy source' and 'covered product' are broad and lack specificity, potentially leading to loopholes or favoritism towards specific products or manufacturers if not carefully regulated. This is highlighted in Section 2 ('Definitions').
The requirement for a significant portion of the fund to be allocated to purchases from small businesses and covered small businesses could conflict with achieving the best value considerations in purchasing, potentially impacting the efficiency of fund utilization. This is outlined in Section 3 ('Establishment of Clean Energy Fund').
The bill does not provide an explicit definition of 'appropriate cost controls,' which makes it unclear how these will be enforced or evaluated, leading to potential cost overruns. This is discussed in Section 5 ('Requirements for procurement of covered products').
The labor requirements, especially the calculation of minimum wage and neutrality toward organized labor, could impose significant administrative and financial burdens on the covered entities, particularly smaller businesses. This is discussed in Section 6 ('Labor requirements').
The provisions for the 'Buy American' requirement are not well defined, creating ambiguity about what exceptions and waivers might be considered appropriate, potentially leading to conflicts. This is outlined in Section 3 ('Establishment of Clean Energy Fund').
The lack of specificity in the composition, powers, and procedures of the Oversight Advisory Board could lead to governance issues and questions about the board's effectiveness in influencing procurement decisions. This is noted in Section 7 ('Green procurement oversight advisory board').
The section does not outline clear checks and balances for the Comptroller General's authority in overseeing the funds, which could lead to potential overreach or inadequate oversight. This is addressed in Section 8 ('Oversight by Comptroller General').
Sections
Sections are presented as they are annotated in the original legislative text. Any missing headers, numbers, or non-consecutive order is due to the original text.
1. Short title Read Opens in new tab
Summary AI
The first section of the bill specifies that it can be referred to as the "Buy Green Act of 2024."
2. Definitions Read Opens in new tab
Summary AI
This section defines key terms used in the Act, such as “clean power” which refers to energy from renewable sources, “covered product” which includes various energy-efficient products like zero-emission vehicles, and “frontline, vulnerable, and disadvantaged community” which refers to communities disproportionately affected by climate change and environmental issues. It also describes what qualifies as a “small business” and outlines what constitutes a “renewable energy source.”
3. Establishment of Clean Energy Fund Read Opens in new tab
Summary AI
The "Clean Energy Fund" is established by the Secretary of Energy, starting January 1, 2026, to support the purchase of eco-friendly products, promote green procurement by state and local governments through grants, and encourage the modernization of federal buildings and replacement of federal vehicles with zero-emission models. The fund also focuses on assisting small businesses, reducing greenhouse gas emissions, and prioritizing American-made and environmentally responsible products, with substantial financial appropriations through 2045.
Money References
- (j) Authorization of appropriations.—There is authorized to be appropriated to the Fund $1,500,000,000,000 for the period of fiscal years 2026 through 2035, to remain available until January 1, 2045, of which not less than— (1) $750,000,000,000 shall be used to carry out the grant program established under subsection (c); and (2) $250,000,000,000 shall be used to carry out the grant program established under subsection (d).
4. Procurement practices for the Department of Energy Read Opens in new tab
Summary AI
The section outlines new rules for the Department of Energy regarding the environmental impact of materials they use. By January 1, 2025, the Secretary must list materials and set limits on their global warming potential, adjusting these limits every three years to encourage lower emissions, but never increasing them.
5. Requirements for procurement of covered products Read Opens in new tab
Summary AI
An entity buying a covered product as per this Act must ensure that the process follows fair competition and cost controls, supports whistleblower protections, requires contractors to keep records and provide audited financial statements, and complies with open records laws like the Freedom of Information Act.
6. Labor requirements Read Opens in new tab
Summary AI
The text outlines labor requirements for certain entities involved in producing or manufacturing products or receiving grants under the act. It establishes minimum wage regulations, protects employee interests, requires neutrality toward organized labor, mandates paid family and medical leave, ensures fair scheduling practices, and sets hiring preferences, while also specifying that independent contractors have specific criteria to not be classified as employees.
Money References
- (b) Requirements.—The labor requirements under this section with respect to a covered entity are each of the following: (1) MINIMUM WAGE.— (A) IN GENERAL.—All employees employed in the performance of covered activities shall be paid at a rate of not less than— (i) $17.00 an hour, beginning on the date of enactment of this Act; and (ii) beginning on the date that is 1 year after such date of enactment, and annually thereafter, the amount in effect under this subparagraph for the preceding year, increased by the annual percentage increase, if any, in the median hourly wage of all employees as determined by the Bureau of Labor Statistics and rounded up to the nearest multiple of $0.05 (if not otherwise a multiple of $0.05). (B) CALCULATION.—In calculating the annual percentage increase in the median hourly wage of all employees for purposes of subparagraph (A)(ii), the Secretary of Labor, through the Bureau of Labor Statistics, shall— (i) compile data on the hourly wages of all employees to determine such a median hourly wage; and (ii) compare such median hourly wage for the most recent year for which data are available with the median hourly wage determined for the preceding year.
7. Green procurement oversight advisory board Read Opens in new tab
Summary AI
The Green Procurement Oversight Advisory Board, established within the Department of Energy, coordinates with key offices to ensure federal agencies efficiently and lawfully procure eco-friendly products, issue recommendations for grant recipients, report to federal authorities, and has the power to issue subpoenas and refer fraud cases. It's recognized as an advisory committee according to U.S. law.
8. Oversight by Comptroller General Read Opens in new tab
Summary AI
The section mandates that the Comptroller General of the United States oversees the use of funds from this Act to ensure transparency and compliance, and requires the Comptroller to publish an annual report evaluating the effectiveness of the Act's programs and suggesting improvements.