In the nature of a substitute.

SA 5194. Mr. SCHUMER submitted an amendment intended to be proposed
by him to the bill H.R. 5376, to provide for reconciliation pursuant to
title II of S. Con. Res. 14; which was ordered to lie on the table; as
follows:

Strike all after the enacting clause and insert the
following:

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Inflation Reduction Act of
2022''.

TITLE I--COMMITTEE ON FINANCE

Subtitle A--Deficit Reduction

SEC. 10001. AMENDMENT OF 1986 CODE.

Except as otherwise expressly provided, whenever in this
subtitle an amendment or repeal is expressed in terms of an
amendment to, or repeal of, a section or other provision, the
reference shall be considered to be made to a section or
other provision of the Internal Revenue Code of 1986.

PART 1--CORPORATE TAX REFORM

SEC. 10101. CORPORATE ALTERNATIVE MINIMUM TAX.

(a) Imposition of Tax.--
(1) In general.--Paragraph (2) of section 55(b) is amended
to read as follows:
``(2) Corporations.--
``(A) Applicable corporations.--In the case of an
applicable corporation, the tentative minimum tax for the
taxable year shall be the excess of--
``(i) 15 percent of the adjusted financial statement income
for the taxable year (as determined under section 56A), over
``(ii) the corporate AMT foreign tax credit for the taxable
year.
``(B) Other corporations.--In the case of any corporation
which is not an applicable corporation, the tentative minimum
tax for the taxable year shall be zero.''.
(2) Applicable corporation.--Section 59 is amended by
adding at the end the following new subsection:
``(k) Applicable Corporation.--For purposes of this part--
``(1) Applicable corporation defined.--
``(A) In general.--The term `applicable corporation' means,
with respect to any taxable year, any corporation (other than
an S corporation, a regulated investment company, or a real
estate investment trust) which meets the average annual
adjusted financial statement income test of subparagraph (B)
for one or more taxable years which--
``(i) are prior to such taxable year, and
``(ii) end after December 31, 2021.
``(B) Average annual adjusted financial statement income
test.--For purposes of this subsection--
``(i) a corporation meets the average annual adjusted
financial statement income test for a taxable year if the
average annual

[[Page S3923]]

adjusted financial statement income of such corporation for
the 3-taxable-year period ending with such taxable year
exceeds $1,000,000,000, and
``(ii) in the case of a corporation described in paragraph
(2), such corporation meets the average annual adjusted
financial statement income test for a taxable year if--

``(I) the corporation meets the requirements of clause (i)
for such taxable year (determined after the application of
paragraph (2)), and
``(II) the average annual adjusted financial statement
income of such corporation (determined without regard to the
application of paragraph (2)) for the 3-taxable-year-period
ending with such taxable year is $100,000,000 or more.

``(C) Exception.--Notwithstanding subparagraph (A), the
term `applicable corporation' shall not include any
corporation which otherwise meets the requirements of
subparagraph (A) if--
``(i) such corporation--

``(I) has a change in ownership, or
``(II) has a specified number (to be determined by the
Secretary and which shall, as appropriate, take into account
the facts and circumstances of the taxpayer) of consecutive
taxable years, including the most recent taxable year, in
which the corporation does not meet the average annual
adjusted financial statement income test of subparagraph (B),
and

``(ii) the Secretary determines that it would not be
appropriate to continue to treat such corporation as an
applicable corporation.
The preceding sentence shall not apply to any corporation if,
after the Secretary makes the determination described in
clause (ii), such corporation meets the average annual
adjusted financial statement income test of subparagraph (B)
for any taxable year beginning after the first taxable year
for which such determination applies.
``(D) Special rules for determining applicable corporation
status.--Solely for purposes of determining whether a
corporation is an applicable corporation under paragraph (1),
all adjusted financial statement income of persons treated as
a single employer with such corporation under subsection (a)
or (b) of section 52 shall be treated as adjusted financial
statement of income of such corporation, and adjusted
financial statement income of such corporation shall be
determined without regard to paragraphs (2)(D)(i) and (11) of
section 56A(c).
``(E) Other special rules.--
``(i) Corporations in existence for less than 3 years.--If
the corporation was in existence for less than 3-taxable
years, subparagraph (B) shall be applied on the basis of the
period during which such corporation was in existence.
``(ii) Short taxable years.--Adjusted financial statement
income for any taxable year of less than 12 months shall be
annualized by multiplying the adjusted financial statement
income for the short period by 12 and dividing the result by
the number of months in the short period.
``(iii) Treatment of predecessors.--Any reference in this
subparagraph to a corporation shall include a reference to
any predecessor of such corporation.
``(2) Special rule for foreign-parented corporations.--
``(A) In general.--Solely for purposes of determining
whether a corporation meets the average annual adjusted
financial statement income test under paragraph
(1)(B)(ii)(I), in the case of any corporation which for any
taxable year is a member of an international financial
reporting group the common parent of which is a foreign
corporation, such corporation shall include in the adjusted
financial statement income of such corporation for such
taxable year the adjusted financial statement income of all
foreign members of such group. Solely for purposes of this
subparagraph, adjusted financial statement income shall be
determined without regard to paragraphs (2)(D)(i), (3), (4),
and (11) of section 56A(c).
``(B) International financial reporting group.--For
purposes of subparagraph (A), the term `international
financial reporting group' shall have the meaning given such
term by section 163(n)(3).
``(C) Common parent.--For purposes of subparagraph (A), the
term `common parent' has the meaning given such term under
section 163(n)(5).
``(3) Regulations or other guidance.--The Secretary shall
provide regulations or other guidance for the purposes of
carrying out this subsection, including regulations or other
guidance--
``(A) providing a simplified method for determining whether
a corporation meets the requirements of paragraph (1), and
``'(B) addressing the application of this subsection to a
corporation that experiences a change in ownership.''.
(3) Reduction for base erosion and anti-abuse tax.--Section
55(a)(2) is amended by inserting ``plus, in the case of an
applicable corporation, the tax imposed by section 59A''
before the period at the end.
(4) Conforming amendments.--
(A) Section 55(a) is amended by striking ``In the case of a
taxpayer other than a corporation, there'' and inserting
``There''.
(B)(i) Section 55(b)(1) is amended--
(I) by striking so much as precedes subparagraph (A) and
inserting the following:
``(1) Noncorporate taxpayers.--In the case of a taxpayer
other than a corporation--'', and
(II) by adding at the end the following new subparagraph:
``(D) Alternative minimum taxable income.--The term
`alternative minimum taxable income' means the taxable income
of the taxpayer for the taxable year--
``(i) determined with the adjustments provided in section
56 and section 58, and
``(ii) increased by the amount of the items of tax
preference described in section 57.
If a taxpayer is subject to the regular tax, such taxpayer
shall be subject to the tax imposed by this section (and, if
the regular tax is determined by reference to an amount other
than taxable income, such amount shall be treated as the
taxable income of such taxpayer for purposes of the preceding
sentence).''.
(ii) Section 860E(a)(4) is amended by striking ``55(b)(2)''
and inserting ``55(b)(1)(D)''.
(iii) Section 897(a)(2)(A)(i) is amended by striking
``55(b)(2)'' and inserting ``55(b)(1)(D)''.
(C) Section 11(d) is amended by striking ``the tax imposed
by subsection (a)'' and inserting ``the taxes imposed by
subsection (a) and section 55''.
(D) Section 12 is amended by adding at the end the
following new paragraph:
``(5) For alternative minimum tax, see section 55.''.
(E) Section 882(a)(1) is amended by inserting ``, 55,''
after ``section 11''.
(F) Section 6425(c)(1)(A) is amended to read as follows:
``(A) the sum of--
``(i) the tax imposed by section 11 or subchapter L of
chapter 1, whichever is applicable, plus
``(ii) the tax imposed by section 55, plus
``(iii) the tax imposed by section 59A, over''.
(G) Section 6655(e)(2) is amended by inserting ``, adjusted
financial statement income (as defined in section 56A),''
before ``and modified taxable income'' each place it appears
in subparagraphs (A)(i) and (B)(i).
(H) Section 6655(g)(1)(A) is amended by redesignating
clauses (ii) and (iii) as clauses (iii) and (iv),
respectively, and by inserting after clause (i) the following
new clause:
``(ii) the tax imposed by section 55,''.
(b) Adjusted Financial Statement Income.--
(1) In general.--Part VI of subchapter A of chapter 1 is
amended by inserting after section 56 the following new
section:

``SEC. 56A. ADJUSTED FINANCIAL STATEMENT INCOME.

``(a) In General.--For purposes of this part, the term
`adjusted financial statement income' means, with respect to
any corporation for any taxable year, the net income or loss
of the taxpayer set forth on the taxpayer's applicable
financial statement for such taxable year, adjusted as
provided in this section.
``(b) Applicable Financial Statement.--For purposes of this
section, the term `applicable financial statement' means,
with respect to any taxable year, an applicable financial
statement (as defined in section 451(b)(3) or as specified by
the Secretary in regulations or other guidance) which covers
such taxable year.
``(c) General Adjustments.--
``(1) Statements covering different taxable years.--
Appropriate adjustments shall be made in adjusted financial
statement income in any case in which an applicable financial
statement covers a period other than the taxable year.
``(2) Special rules for related entities.--
``(A) Consolidated financial statements.--If the financial
results of a taxpayer are reported on the applicable
financial statement for a group of entities, rules similar to
the rules of section 451(b)(5) shall apply.
``(B) Consolidated returns.--Except as provided in
regulations prescribed by the Secretary, if the taxpayer is
part of an affiliated group of corporations filing a
consolidated return for any taxable year, adjusted financial
statement income for such group for such taxable year shall
take into account items on the group's applicable financial
statement which are properly allocable to members of such
group.
``(C) Treatment of dividends and other amounts.--In the
case of any corporation which is not included on a
consolidated return with the taxpayer, adjusted financial
statement income of the taxpayer with respect to such other
corporation shall be determined by only taking into account
the dividends received from such other corporation (reduced
to the extent provided by the Secretary in regulations or
other guidance) and other amounts which are includible in
gross income or deductible as a loss under this chapter
(other than amounts required to be included under sections
951 and 951A or such other amounts as provided by the
Secretary) with respect to such other corporation.
``(D) Treatment of partnerships.--
``(i) In general.--Except as provided by the Secretary, if
the taxpayer is a partner in a partnership, adjusted
financial statement income of the taxpayer shall be adjusted
to only take into account the taxpayer's distributive share
of adjusted financial statement income of such partnership.
``(ii) Adjusted financial statement income of
partnerships.--For the purposes of this part, the adjusted
financial statement income of a partnership shall be the
partnership's net income or loss set forth on such
partnership's applicable financial statement (adjusted under
rules similar to the rules of this section).

[[Page S3924]]

``(3) Adjustments to take into account certain items of
foreign income.--
``(A) In general.--If, for any taxable year, a taxpayer is
a United States shareholder of one or more controlled foreign
corporations, the adjusted financial statement income of such
taxpayer shall be adjusted to take into account such
taxpayer's pro rata share (determined under rules similar to
the rules under section 951(a)(2)) of items taken into
account in computing the net income or loss set forth on the
applicable financial statement (as adjusted under rules
similar to those that apply in determining adjusted financial
statement income) of each such controlled foreign corporation
with respect to which such taxpayer is a United States
shareholder.
``(B) Negative adjustments.--In any case in which the
adjustment determined under subparagraph (A) would result in
a negative adjustment for such taxable year--
``(i) no adjustment shall be made under this paragraph for
such taxable year, and
``(ii) the amount of the adjustment determined under this
paragraph for the succeeding taxable year (determined without
regard to this paragraph) shall be reduced by an amount equal
to the negative adjustment for such taxable year.
``(4) Effectively connected income.--In the case of a
foreign corporation, to determine adjusted financial
statement income, the principles of section 882 shall apply.
``(5) Adjustments for certain taxes.--Adjusted financial
statement income shall be appropriately adjusted to disregard
any Federal income taxes, or income, war profits, or excess
profits taxes (within the meaning of section 901) with
respect to a foreign country or possession of the United
States, which are taken into account on the taxpayer's
applicable financial statement. To the extent provided by the
Secretary, the preceding sentence shall not apply to income,
war profits, or excess profits taxes (within the meaning of
section 901) that are imposed by a foreign country or
possession of the United States and taken into account on the
taxpayer's applicable financial statement if the taxpayer
does not choose to have the benefits of subpart A of part III
of subchapter N for the taxable year. The Secretary shall
prescribe such regulations or other guidance as may be
necessary and appropriate to provide for the proper treatment
of current and deferred taxes for purposes of this paragraph,
including the time at which such taxes are properly taken
into account.
``(6) Adjustment with respect to disregarded entities.--
Adjusted financial statement income shall be adjusted to take
into account any adjusted financial statement income of a
disregarded entity owned by the taxpayer.
``(7) Special rule for cooperatives.--In the case of a
cooperative to which section 1381 applies, the adjusted
financial statement income (determined without regard to this
paragraph) shall be reduced by the amounts referred to in
section 1382(b) (relating to patronage dividends and per-unit
retain allocations) to the extent such amounts were not
otherwise taken into account in determining adjusted
financial statement income.
``(8) Rules for alaska native corporations.--Adjusted
financial statement income shall be appropriately adjusted to
allow--
``(A) cost recovery and depletion attributable to property
the basis of which is determined under section 21(c) of the
Alaska Native Claims Settlement Act (43 U.S.C. 1620(c)), and
``(B) deductions for amounts payable made pursuant to
section 7(i) or section 7(j) of such Act (43 U.S.C. 1606(i)
and 1606(j)) only at such time as the deductions are allowed
for tax purposes.
``(9) Amounts attributable to elections for direct payment
of certain credits.--Adjusted financial statement income
shall be appropriately adjusted to disregard any amount
treated as a payment against the tax imposed by subtitle A
pursuant to an election under section 6417, to the extent
such amount was not otherwise taken into account under
paragraph (5).
``(10) Consistent treatment of mortgage servicing income of
taxpayer other than a regulated investment company.--
``(A) In general.--Adjusted financial statement income
shall be adjusted so as not to include any item of income in
connection with a mortgage servicing contract any earlier
than when such income is included in gross income under any
other provision of this chapter.
``(B) Rules for amounts not representing reasonable
compensation.--The Secretary shall provide regulations to
prevent the avoidance of taxes imposed by this chapter with
respect to amounts not representing reasonable compensation
(as determined by the Secretary) with respect to a mortgage
servicing contract.
``(11) Adjustment with respect to defined benefit
pensions.--
``(A) In general.--Except as otherwise provided in rules
prescribed by the Secretary in regulations or other guidance,
adjusted financial statement income shall be--
``(i) adjusted to disregard any amount of income, cost, or
expense that would otherwise be included on the applicable
financial statement in connection with any covered benefit
plan,
``(ii) increased by any amount of income in connection with
any such covered benefit plan that is included in the gross
income of the corporation under any other provision of this
chapter, and
``(iii) reduced by deductions allowed under any other
provision of this chapter with respect to any such covered
benefit plan.
``(B) Covered benefit plan.--For purposes of this
paragraph, the term `covered benefit plan' means--
``(i) a defined benefit plan (other than a multiemployer
plan described in section 414(f)) if the trust which is part
of such plan is an employees' trust described in section
401(a) which is exempt from tax under section 501(a),
``(ii) any qualified foreign plan (as defined in section
404A(e)), or
``(iii) any other defined benefit plan which provides post-
employment benefits other than pension benefits.
``(12) Tax-exempt entities.--In the case of an organization
subject to tax under section 511, adjusted financial
statement income shall be appropriately adjusted to only take
into account any adjusted financial statement income--
``(A) of an unrelated trade or business (as defined in
section 513) of such organization, or
``(B) derived from debt-financed property (as defined in
section 514) to the extent that income from such property is
treated as unrelated business taxable income.
``(13) Secretarial authority to adjust items.--The
Secretary shall issue regulations or other guidance to
provide for such adjustments to adjusted financial statement
income as the Secretary determines necessary to carry out the
purposes of this section, including adjustments--
``(A) to prevent the omission or duplication of any item,
and
``(B) to carry out the principles of part II of subchapter
C of this chapter (relating to corporate liquidations), part
III of subchapter C of this chapter (relating to corporate
organizations and reorganizations), and part II of subchapter
K of this chapter (relating to partnership contributions and
distributions).
``(d) Deduction for Financial Statement Net Operating
Loss.--
``(1) In general.--Adjusted financial statement income
(determined after application of subsection (c) and without
regard to this subsection) shall be reduced by an amount
equal to the lesser of--
``(A) the aggregate amount of financial statement net
operating loss carryovers to the taxable year, or
``(B) 80 percent of adjusted financial statement income
computed without regard to the deduction allowable under this
subsection.
``(2) Financial statement net operating loss carryover.--A
financial statement net operating loss for any taxable year
shall be a financial statement net operating loss carryover
to each taxable year following the taxable year of the loss.
The portion of such loss which shall be carried to subsequent
taxable years shall be the amount of such loss remaining (if
any) after the application of paragraph (1).
``(3) Financial statement net operating loss defined.--For
purposes of this subsection, the term `financial statement
net operating loss' means the amount of the net loss (if any)
set forth on the corporation's applicable financial statement
(determined after application of subsection (c) and without
regard to this subsection) for taxable years ending after
December 31, 2019.
``(e) Regulations and Other Guidance.--The Secretary shall
provide for such regulations and other guidance as necessary
to carry out the purposes of this section, including
regulations and other guidance relating to the effect of the
rules of this section on partnerships with income taken into
account by an applicable corporation.''.
(2) Clerical amendment.--The table of sections for part VI
of subchapter A of chapter 1 is amended by inserting after
the item relating to section 56 the following new item:

``Sec. 56A. Adjusted financial statement income.''.
(c) Corporate AMT Foreign Tax Credit.--Section 59, as
amended by this section, is amended by adding at the end the
following new subsection:
``(l) Corporate AMT Foreign Tax Credit.--
``(1) In general.--For purposes of this part, if an
applicable corporation chooses to have the benefits of
subpart A of part III of subchapter N for any taxable year,
the corporate AMT foreign tax credit for the taxable year of
the applicable corporation is an amount equal to sum of--
``(A) the lesser of--
``(i) the aggregate of the applicable corporation's pro
rata share (as determined under section 56A(c)(3)) of the
amount of income, war profits, and excess profits taxes
(within the meaning of section 901) imposed by any foreign
country or possession of the United States which are--

``(I) taken into account on the applicable financial
statement of each controlled foreign corporation with respect
to which the applicable corporation is a United States
shareholder, and
``(II) paid or accrued (for Federal income tax purposes) by
each such controlled foreign corporation, or

``(ii) the product of the amount of the adjustment under
section 56A(c)(3) and the percentage specified in section
55(b)(2)(A)(i), and
``(B) in the case of an applicable corporation that is a
domestic corporation, the amount of income, war profits, and
excess profits taxes (within the meaning of section 901)
imposed by any foreign country or possession of the United
States to the extent such taxes are--

[[Page S3925]]

``(i) taken into account on the applicable corporation's
applicable financial statement, and
``(ii) paid or accrued (for Federal income tax purposes) by
the applicable corporation.
``(2) Carryover of excess tax paid.--For any taxable year
for which an applicable corporation chooses to have the
benefits of subpart A of part III of subchapter N, the excess
of the amount described in paragraph (1)(A)(i) over the
amount described in paragraph (1)(A)(ii) shall increase the
amount described in paragraph (1)(A)(i) in any of the first 5
succeeding taxable years to the extent not taken into account
in a prior taxable year.
``(3) Regulations or other guidance.--The Secretary shall
provide for such regulations or other guidance as is
necessary to carry out the purposes of this subsection.''.
(d) Treatment of General Business Credit.--Section
38(c)(6)(E) is amended to read as follows:
``(E) Corporations.--In the case of a corporation--
``(i) the first sentence of paragraph (1) shall be applied
by substituting `25 percent of the taxpayer's net income tax
as exceeds $25,000' for `the greater of' and all that
follows,
``(ii) paragraph (2)(A) shall be applied without regard to
clause (ii)(I) thereof, and
``(iii) paragraph (4)(A) shall be applied without regard to
clause (ii)(I) thereof.''.
(e) Credit for Prior Year Minimum Tax Liability.--
(1) In general.--Section 53(e) is amended to read as
follows:
``(e) Application to Applicable Corporations.--In the case
of a corporation--
``(1) subsection (b)(1) shall be applied by substituting
`the net minimum tax for all prior taxable years beginning
after 2022' for `the adjusted net minimum tax imposed for all
prior taxable years beginning after 1986', and
``(2) the amount determined under subsection (c)(1) shall
be increased by the amount of tax imposed under section 59A
for the taxable year.''.
(2) Conforming amendments.--Section 53(d) is amended--
(A) in paragraph (2), by striking ``, except that in the
case'' and all that follows through ``treated as zero'', and
(B) by striking paragraph (3).
(f) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2022.

PART 2--CLOSING THE CARRIED INTEREST LOOPHOLE

SEC. 10201. MODIFICATION OF RULES FOR PARTNERSHIP INTERESTS
HELD IN CONNECTION WITH THE PERFORMANCE OF
SERVICES.

(a) In General.--Section 1061 is amended by striking
subsections (a) and (b) and inserting the following new
subsections:
``(a) In General.--If one or more applicable partnership
interests are held by a taxpayer at any time during the
taxable year, the taxpayer's net applicable partnership gain
for such taxable year shall be treated as short-term capital
gain.
``(b) Net Applicable Partnership Gain.--For purposes of
this section--
``(1) In general.--The term `net applicable partnership
gain' means--
``(A) the taxpayer's net long-term capital gain determined
by only taking into account gains and losses with respect to
one or more applicable partnership interests described in
subsection (a), and
``(B) any other amounts which are--
``(i) includible in the gross income of the taxpayer with
respect to one or more such applicable partnership interests,
and
``(ii) treated as capital gain or subject to tax at the
rate applicable to capital gain.
``(2) Holding period exception.--
``(A) In general.--Net applicable partnership gain shall be
determined without regard to any amount which is realized
after the date that is 5 years after the latest of:
``(i) The date on which the taxpayer acquired substantially
all of the applicable partnership interest with respect to
which the amount is realized.
``(ii) The date on which the partnership in which such
applicable partnership interest is held acquired
substantially all of the assets held by such partnership.
``(iii) If the partnership described in clause (i) owns,
directly or indirectly, interests in one or more other
partnerships, the dates determined by applying rules similar
to the rules in clauses (i) and (ii) in the case of each such
other partnership.
``(B) Shorter holding period in certain circumstances.--
Subparagraph (A) shall be applied by substituting `3 years'
for `5 years' in the case of--
``(i) a taxpayer (other than a trust or estate) with an
adjusted gross income (determined without regard to sections
911, 931 and 933) of less than $400,000, and
``(ii) any income with respect to any applicable
partnership interest that is attributable to a real property
trade or business within the meaning of section 469(c)(7)(C).
``(iii) The Secretary is directed to provide guidance
regarding determination of the amount described in subsection
(a) as applied in paragraph (1) hereof, and any necessary and
appropriate reporting by any partnership to carry out the
purposes of this section. --
``(3) Section 83 to not apply.--This section shall be
applied without regard to section 83 and any election in
effect under section 83(b).
``(4) Special rule.--To the extent provided by the
Secretary, subsection (a) shall not apply to income or gain
attributable to any asset not held for portfolio investment
on behalf of third party investors.''.
(b) Modifications Related to Definition of Applicable
Partnership Interest.--Section 1061(c) is amended--
(1) in paragraph (1), by striking ``to such other entity''
and inserting ``with respect to a trade or business that is
not an applicable trade or business'',
(2) in paragraph (3), by striking ``an interest in a
partnership to the extent of the partnership's proportionate
interest in any of the foregoing'' and inserting ``except as
otherwise provided by the Secretary, an interest in a
partnership if such partnership has a direct or indirect
interest in any of the foregoing'', and
(3) in paragraph (4)--
(A) by striking ``The term'' and inserting ``Except as
otherwise provided by the Secretary, the term'', and
(B) in subparagraph (A), by striking ``corporation'' and
inserting ``C corporation''.
(c) Recognition of Gain on Transfers of Applicable
Partnership Interests to Unrelated Parties.--Section 1061(d)
is amended to read as follows:
``(d) Transfer of Applicable Partnership Interest.--If a
taxpayer transfers any applicable partnership interest, gain
shall be recognized notwithstanding any other provision of
this subtitle.''.
(d) Regulations.--Section 1061(e) is amended by striking
the period at the end and inserting the following: ``,
including regulations or other guidance to--
``(1) to prevent the avoidance of the purposes of this
section, including through the distribution of property by a
partnership and through carry waivers, and
``(2) to provide for the application of this section to
financial instruments, contracts or interests in entities
other than partnerships to the extent necessary or
appropriate to carry out the purposes of this section.''.
(e) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2022.

PART 3--FUNDING THE INTERNAL REVENUE SERVICE AND IMPROVING TAXPAYER
COMPLIANCE

SEC. 10301. ENHANCEMENT OF INTERNAL REVENUE SERVICE
RESOURCES.

(a) Appropriations.--
(1) In general.--The following sums are appropriated, out
of any money in the Treasury not otherwise appropriated, for
the fiscal year ending September 30, 2022:
(A) Internal revenue service.--
(i) In general.--

(I) Taxpayer services.--For necessary expenses of the
Internal Revenue Service to provide taxpayer services,
including pre-filing assistance and education, filing and
account services, taxpayer advocacy services, and other
services as authorized by 5 U.S.C. 3109, at such rates as may
be determined by the Commissioner, $3,181,500,000, to remain
available until September 30, 2031: Provided, That these
amounts shall be in addition to amounts otherwise available
for such purposes.
(II) Enforcement.--For necessary expenses for tax
enforcement activities of the Internal Revenue Service to
determine and collect owed taxes, to provide legal and
litigation support, to conduct criminal investigations
(including investigative technology), to provide digital
asset monitoring and compliance activities, to enforce
criminal statutes related to violations of internal revenue
laws and other financial crimes, to purchase and hire
passenger motor vehicles (31 U.S.C. 1343(b)), and to provide
other services as authorized by 5 U.S.C. 3109, at such rates
as may be determined by the Commissioner, $45,637,400,000, to
remain available until September 30, 2031: Provided, That
these amounts shall be in addition to amounts otherwise
available for such purposes.
(III) Operations support.--For necessary expenses of the
Internal Revenue Service to support taxpayer services and
enforcement programs, including rent payments; facilities
services; printing; postage; physical security; headquarters
and other IRS-wide administration activities; research and
statistics of income; telecommunications; information
technology development, enhancement, operations, maintenance,
and security; the hire of passenger motor vehicles (31 U.S.C.
1343(b)); the operations of the Internal Revenue Service
Oversight Board; and other services as authorized by 5 U.S.C.
3109, at such rates as may be determined by the Commissioner,
$25,326,400,000, to remain available until September 30,
2031: Provided, That these amounts shall be in addition to
amounts otherwise available for such purposes.
(IV) Business systems modernization.--For necessary
expenses of the Internal Revenue Service's business systems
modernization program, including development of callback
technology and other technology to provide a more
personalized customer service but not including the operation
and maintenance of legacy systems, $4,750,700,000, to remain
available until September 30, 2031: Provided, That these
amounts shall be in addition to amounts otherwise available
for such purposes.

(ii) Task force to design an irs-run free ``direct efile''
tax return system.--For necessary expenses of the Internal
Revenue Service to deliver to Congress, within nine months
following the date of the enactment of this Act, a report on
(I) the cost (including options for differential coverage
based on taxpayer adjusted gross income and return

[[Page S3926]]

complexity) of developing and running a free direct efile tax
return system, including costs to build and administer each
release, with a focus on multi-lingual and mobile-friendly
features and safeguards for taxpayer data; (II) taxpayer
opinions, expectations, and level of trust, based on surveys,
for such a free direct efile system; and (III) the opinions
of an independent third-party on the overall feasibility,
approach, schedule, cost, organizational design, and Internal
Revenue Service capacity to deliver such a direct efile tax
return system, $15,000,000, to remain available until
September 30, 2023: Provided, That these amounts shall be in
addition to amounts otherwise available for such purposes.
(B) Treasury inspector general for tax administration.--For
necessary expenses of the Treasury Inspector General for Tax
Administration in carrying out the Inspector General Act of
1978, as amended, including purchase and hire of passenger
motor vehicles (31 U.S.C. 1343(b)); and services authorized
by 5 U.S.C. 3109, at such rates as may be determined by the
Inspector General for Tax Administration, $403,000,000, to
remain available until September 30, 2031: Provided, That
these amounts shall be in addition to amounts otherwise
available for such purposes.
(C) Office of tax policy.--For necessary expenses of the
Office of Tax Policy of the Department of the Treasury to
carry out functions related to promulgating regulations under
the Internal Revenue Code of 1986, $104,533,803, to remain
available until September 30, 2031: Provided, That these
amounts shall be in addition to amounts otherwise available
for such purposes.
(D) United states tax court.--For necessary expenses of the
United States Tax Court, including contract reporting and
other services as authorized by 5 U.S.C. 3109; $153,000,000,
to remain available until September 30, 2031: Provided, That
these amounts shall be in addition to amounts otherwise
available for such purposes.
(E) Treasury departmental offices.--For necessary expenses
of the Departmental Offices of the Department of the Treasury
to provide for oversight and implementation support for
actions by the Internal Revenue Service to implement this Act
and the amendments made by this Act, $50,000,000, to remain
available until September 30, 2031: Provided, That these
amounts shall be in addition to amounts otherwise available
for such purposes.
(2) Multi-year operational plan.--
(A) In general.--Not later than 6 months after the date of
the enactment of this Act, the Commissioner of Internal
Revenue shall submit to Congress a plan detailing how the
funds appropriated under paragraph (1)(A)(i) will be spent
over the ten-year period ending with fiscal year 2031.
(B) Quarterly updates.--
(i) In general.--Not later than the last day of each
calendar quarter beginning during the applicable period, the
Commissioner of Internal Revenue shall submit to Congress a
report on the plan established under subparagraph (A),
including--

(I) any updates to the plan;
(II) progress made in implementing the plan; and
(III) any changes in circumstances or challenges in
implementing the plan.

(ii) Applicable period.--For purposes of clause (i), the
applicable period is the period beginning 1 year after the
date the report under subparagraph (A) is due and ending on
September 30, 2031.
(C) Reduction in appropriation.--
(i) In general.--In the case of any failure to submit a
plan required under subparagraph (A) or a report required
under subparagraph (B) by the required date, the amounts made
available under paragraph (1)(A)(i) shall be reduced by
$100,000 for each day after such required date that report
has not been submitted to Congress.
(ii) Required date.--For purposes of clause (i), the
required date is the date that is 60 days after the date the
plan or report is required to be submitted under subparagraph
(A) or (B), as the case may be.
(3) No tax increases on certain taxpayers.--Nothing in this
subsection is intended to increase taxes on any taxpayer with
a taxable income below $400,000.
(b) Personnel Flexibilities.--The Secretary of the Treasury
(or the Secretary's delegate) may use the funds made
available under subsection (a)(1)(A), subject to such
policies as the Secretary (or the Secretary's delegate) may
establish, to take such personnel actions as the Secretary
(or the Secretary's delegate) determines necessary to
administer the Internal Revenue Code of 1986, including--
(1) utilizing direct hire authority to recruit and appoint
qualified applicants, without regard to any notice or
preference requirements, directly to positions in the
competitive service;
(2) in addition to the authority under section 7812(1) of
the Internal Revenue Code of 1986, appointing not more than
200 individuals to positions in the Internal Revenue Service
under streamlined critical pay authority, except that--
(A) the authority to offer streamlined critical pay under
this paragraph shall expire on September 30, 2031; and
(B) the positions for which streamlined critical pay is
authorized under this paragraph may include positions
critical to the purposes described in subclauses (I), (II),
and (III) of subsection (a)(1)(A)(i); and
(3) appointing not more than 300 individuals to positions
in the Internal Revenue Service for which--
(A) the rate of basic pay may be established by the
Secretary of the Treasury (or the Secretary's delegate) at a
rate that does not exceed the salary set in accordance with
section 104 of title 3, United States Code; and
(B) the total annual compensation paid to an employee in
such a position, including allowances, differentials,
bonuses, awards, and similar cash payments, may not exceed
the maximum amount of total annual compensation payable at
the salary set in accordance with section 104 of title 3,
United States Code.

Subtitle B--Prescription Drug Pricing Reform

PART 1--LOWERING PRICES THROUGH DRUG PRICE NEGOTIATION

SEC. 11001. PROVIDING FOR LOWER PRICES FOR CERTAIN HIGH-
PRICED SINGLE SOURCE DRUGS.

(a) Program To Lower Prices for Certain High-Priced Single
Source Drugs.--Title XI of the Social Security Act is amended
by adding after section 1184 (42 U.S.C. 1320e-3) the
following new part:

``PART E--PRICE NEGOTIATION PROGRAM TO LOWER PRICES FOR CERTAIN HIGH-
PRICED SINGLE SOURCE DRUGS

``SEC. 1191. ESTABLISHMENT OF PROGRAM.

``(a) In General.--The Secretary shall establish a Drug
Price Negotiation Program (in this part referred to as the
`program'). Under the program, with respect to each price
applicability period, the Secretary shall--
``(1) publish a list of selected drugs in accordance with
section 1192;
``(2) enter into agreements with manufacturers of selected
drugs with respect to such period, in accordance with section
1193;
``(3) negotiate and, if applicable, renegotiate maximum
fair prices for such selected drugs, in accordance with
section 1194;
``(4) carry out the publication and administrative duties
and compliance monitoring in accordance with sections 1195
and 1196.
``(b) Definitions Relating to Timing.--For purposes of this
part:
``(1) Initial price applicability year.--The term `initial
price applicability year' means a year (beginning with 2026).
``(2) Price applicability period.--The term `price
applicability period' means, with respect to a qualifying
single source drug, the period beginning with the first
initial price applicability year with respect to which such
drug is a selected drug and ending with the last year during
which the drug is a selected drug.
``(3) Selected drug publication date.--The term `selected
drug publication date' means, with respect to each initial
price applicability year, February 1 of the year that begins
2 years prior to such year.
``(4) Negotiation period.--The term `negotiation period'
means, with respect to an initial price applicability year
with respect to a selected drug, the period--
``(A) beginning on the sooner of--
``(i) the date on which the manufacturer of the drug and
the Secretary enter into an agreement under section 1193 with
respect to such drug; or
``(ii) February 28 following the selected drug publication
date with respect to such selected drug; and
``(B) ending on November 1 of the year that begins 2 years
prior to the initial price applicability year.
``(c) Other Definitions.--For purposes of this part:
``(1) Maximum fair price eligible individual.--The term
`maximum fair price eligible individual' means, with respect
to a selected drug--
``(A) in the case such drug is dispensed to the individual
at a pharmacy, by a mail order service, or by another
dispenser, an individual who is enrolled under a prescription
drug plan under part D of title XVIII or an MA-PD plan under
part C of such title if coverage is provided under such plan
for such selected drug; and
``(B) in the case such drug is furnished or administered to
the individual by a hospital, physician, or other provider of
services or supplier, an individual who is enrolled under
part B of title XVIII, including an individual who is
enrolled under an MA plan under part C of such title, if such
selected drug is covered under such part.
``(2) Maximum fair price.--The term `maximum fair price'
means, with respect to a year during a price applicability
period and with respect to a selected drug (as defined in
section 1192(c)) with respect to such period, the price
negotiated pursuant to section 1194, and updated pursuant to
section 1195(b), as applicable, for such drug and year.
``(3) Reference product.--The term `reference product' has
the meaning given such term in section 351(i) of the Public
Health Service Act.
``(4) Unit.--The term `unit' means, with respect to a drug
or biological product, the lowest identifiable amount (such
as a capsule or tablet, milligram of molecules, or grams) of
the drug or biological product that is dispensed or
furnished. The determination of a unit, with respect to a
drug or biological product, pursuant to this paragraph shall
not be subject to administrative or judicial review.
``(5) Total expenditures.--The term `total expenditures'
includes, in the case of expenditures with respect to part D
of title XVIII, the total gross covered prescription drug
costs (as defined in section 1860D-15(b)(3)).

[[Page S3927]]

The term `total expenditures' excludes, in the case of
expenditures with respect to part B of such title,
expenditures for a drug or biological product that are
bundled or packaged into the payment for another service.
``(d) Timing for Initial Price Applicability Year 2026.--
Notwithstanding the provisions of this part, in the case of
initial price applicability year 2026, the following rules
shall apply for purposes of implementing the program:
``(1) Subsection (b)(3) shall be applied by substituting
`September 1, 2023' for `, with respect to each initial price
applicability year, February 1 of the year that begins 2
years prior to such year'.
``(2) Subsection (b)(4) shall be applied--
``(A) in subparagraph (A)(ii), by substituting `October 1,
2023' for `February 28 following the selected drug
publication date with respect to such selected drug'; and
``(B) in subparagraph (B), by substituting `August 1, 2024'
for `November 1 of the year that begins 2 years prior to the
initial price applicability year'.
``(3) Section 1192 shall be applied--
``(A) in subsection (b)(1)(A), by substituting `during the
period beginning on June 1, 2022, and ending on May 31, 2023'
for `during the most recent period of 12 months prior to the
selected drug publication date (but ending not later than
October 31 of the year prior to the year of such drug
publication date), with respect to such year';
``(B) in subsection (d)(1)(A), by substituting `during the
period beginning on June 1, 2022, and ending on May 31, 2023'
for `during the most recent period for which data are
available of at least 12 months prior to the selected drug
publication date (but ending no later than October 31 of the
year prior to the year of such drug publication date), with
respect to such year'; and
``(C) in subsection (e)(3)(B), by substituting `during the
period beginning on June 1, 2022, and ending on May 31, 2023'
for `during the most recent period for which data are
available of at least 12 months prior to the selected drug
publication date (but ending no later than October 31 of the
year prior to the year of such drug publication date), with
respect to such year'.
``(4) Section 1193(a) shall be applied by substituting
`October 1, 2023' for `February 28 following the selected
drug publication date with respect to such selected drug '.
``(5) Section 1194(b)(2) shall be applied--
``(A) in subparagraph (A), by substituting `October 2,
2023' for `March 1 of the year of the selected drug
publication date, with respect to the selected drug';
``(B) in subparagraph (B), by substituting `February 1,
2024' for `the June 1 following the selected drug publication
date'; and
``(C) in subparagraph (E), by substituting `August 1, 2024'
for `the first day of November following the selected drug
publication date, with respect to the initial price
applicability year '.
``(6) Section 1195(a) shall be applied--
``(A) in paragraph (1), by substituting `September 1, 2024'
for `November 30 of the year that is 2 years prior to such
initial price applicability year'; and
``(B) in paragraph (2), by substituting `March 1, 2025' for
`March 1 of the year prior to such initial price
applicability year'.

``SEC. 1192. SELECTION OF NEGOTIATION-ELIGIBLE DRUGS AS
SELECTED DRUGS.

``(a) In General.--Not later than the selected drug
publication date with respect to an initial price
applicability year, in accordance with subsection (b), the
Secretary shall select and publish a list of--
``(1) with respect to the initial price applicability year
2026, 10 negotiation-eligible drugs described in subparagraph
(A) of subsection (d)(1), but not subparagraph (B) of such
subsection, with respect to such year (or, all (if such
number is less than 10) such negotiation-eligible drugs with
respect to such year);
``(2) with respect to the initial price applicability year
2027, 15 negotiation-eligible drugs described in subparagraph
(A) of subsection (d)(1), but not subparagraph (B) of such
subsection, with respect to such year (or, all (if such
number is less than 15) such negotiation-eligible drugs with
respect to such year);
``(3) with respect to the initial price applicability year
2028, 15 negotiation-eligible drugs described in subparagraph
(A) or (B) of subsection (d)(1) with respect to such year
(or, all (if such number is less than 15) such negotiation-
eligible drugs with respect to such year); and
``(4) with respect to the initial price applicability year
2029 or a subsequent year, 20 negotiation-eligible drugs
described in subparagraph (A) or (B) of subsection (d)(1),
with respect to such year (or, all (if such number is less
than 20) such negotiation-eligible drugs with respect to such
year); and
Subject to subsection (c)(2) and section 1194(f)(5), each
drug published on the list pursuant to the previous sentence
shall be subject to the negotiation process under section
1194 for the negotiation period with respect to such initial
price applicability year (and the renegotiation process under
such section as applicable for any subsequent year during the
applicable price applicability period).
``(b) Selection of Drugs.--
``(1) In general.--In carrying out subsection (a)(1),
subject to paragraph (2), the Secretary shall, with respect
to an initial price applicability year, do the following:
``(A) Rank negotiation-eligible drugs described in
subsection (d)(1) according to the total expenditures for
such drugs under parts B and D of title XVIII, as determined
by the Secretary, during the most recent period of 12 months
prior to the selected drug publication date (but ending not
later than October 31 of the year prior to the year of such
drug publication date), with respect to such year, for which
data are available, with the negotiation-eligible drugs with
the highest total expenditures being ranked the highest.
``(B) Select from such ranked drugs with respect to such
year the negotiation-eligible drugs with the highest such
rankings.
``(2) High spend part d drugs for 2026 and 2027.--With
respect to the initial price applicability year 2026 and with
respect to the initial price applicability year 2027, the
Secretary shall apply paragraph (1) as if the reference to
`negotiation-eligible drugs described in subsection (d)(1)'
were a reference to `negotiation-eligible drugs described in
subsection (d)(1)(A)' and as if the reference to `total
expenditures for such drugs under parts B and D of title
XVIII' were a reference to `total expenditures for such drugs
under part D of title XVIII'.
``(c) Selected Drug.--
``(1) In general.--For purposes of this part, in accordance
with subsection (e)(2) and subject to paragraph (2), each
negotiation-eligible drug included on the list published
under subsection (a) with respect to an initial price
applicability year shall be referred to as a `selected drug'
with respect to such year and each subsequent year beginning
before the first year that begins at least 9 months after the
date on which the Secretary determines at least one drug or
biological product--
``(A) is approved or licensed (as applicable)--
``(i) under section 505(j) of the Federal Food, Drug, and
Cosmetic Act using such drug as the listed drug; or
``(ii) under section 351(k) of the Public Health Service
Act using such drug as the reference product; and
``(B) is marketed pursuant to such approval or licensure.
``(2) Clarification.--A negotiation-eligible drug--
``(A) that is included on the list published under
subsection (a) with respect to an initial price applicability
year; and
``(B) for which the Secretary makes a determination
described in paragraph (1) before or during the negotiation
period with respect to such initial price applicability year;
shall not be subject to the negotiation process under section
1194 with respect to such negotiation period and shall
continue to be considered a selected drug under this part
with respect to the number of negotiation-eligible drugs
published on the list under subsection (a) with respect to
such initial price applicability year.
``(d) Negotiation-Eligible Drug.--
``(1) In general.--For purposes of this part, subject to
paragraph (2), the term `negotiation-eligible drug' means,
with respect to the selected drug publication date with
respect to an initial price applicability year, a qualifying
single source drug, as defined in subsection (e), that is
described in either of the following subparagraphs (or, with
respect to the initial price applicability year 2026 or 2027,
that is described in subparagraph (A)):
``(A) Part d high spend drugs.--The qualifying single
source drug is, determined in accordance with subsection
(e)(2), among the 50 qualifying single source drugs with the
highest total expenditures under part D of title XVIII, as
determined by the Secretary in accordance with paragraph (3),
during the most recent period for which data are available of
at least 12 months prior to the selected drug publication
date (but ending no later than October 31 of the year prior
to the year of such drug publication date), with respect to
such year.
``(B) Part b high spend drugs.--The qualifying single
source drug is, determined in accordance with subsection
(e)(2), among the 50 qualifying single source drugs with the
highest total expenditures under part B of title XVIII, as
determined by the Secretary in accordance with paragraph (3),
during such most recent period, as described in clause (i).
``(2) Exception for small biotech drugs.--
``(A) In general.--Subject to subparagraph (C), the term
`negotiation-eligible drug' shall not include, with respect
to the initial price applicability years 2026, 2027, and
2028, a qualifying single source drug that meets either of
the following:
``(i) Part d drugs.--The total expenditures for the
qualifying single source drug under part D of title XVIII, as
determined by the Secretary in accordance with paragraph
(3)(B), during 2021--

``(I) are equal to or less than 1 percent of the total
expenditures under such part D, as so determined, for all
covered part D drugs (as defined in section 1860D-2(e))
during such year; and
``(II) are equal to at least 80 percent of the total
expenditures under such part D, as so determined, for all
covered part D drugs for which the manufacturer of the drug
has an agreement in effect under section 1860D-14A during
such year.

``(ii) Part b drugs.--The total expenditures for the
qualifying single source drug under part B of title XVIII, as
determined by the Secretary in accordance with paragraph
(3)(B), during 2021--

``(I) are equal to or less than 1 percent of the total
expenditures under such part B, as so determined, for all
qualifying single source drugs covered under such part B
during such year; and

[[Page S3928]]

``(II) are equal to at least 80 percent of the total
expenditures under such part B, as so determined, for all
qualifying single source drugs of the manufacturer that are
covered under such part B during such year.

``(B) Clarifications relating to manufacturers.--
``(i) Aggregation rule.--All persons treated as a single
employer under subsection (a) or (b) of section 52 of the
Internal Revenue Code of 1986 shall be treated as one
manufacturer for purposes of this paragraph.
``(ii) Limitation.--A drug shall not be considered to be a
qualifying single source drug described in clause (i) or (ii)
of subparagraph (A) if the manufacturer of such drug is
acquired after 2021 by another manufacturer that does not
meet the definition of a specified manufacturer under section
1860D-14C(g)(4)(B)(ii), effective at the beginning of the
plan year immediately following such acquisition or, in the
case of an acquisition before 2025, effective January 1,
2025.
``(C) Drugs not included as small biotech drugs.--The
following shall not be considered a qualifying single source
drug described in subparagraph (A):
``(i) A vaccine that is licensed under section 351 of the
Public Health Service Act and is marketed pursuant to such
section.
``(ii) A new formulation, such as an extended release
formulation, of a qualifying single source drug.
``(3) Clarifications and determinations.--
``(A) Previously selected drugs and small biotech drugs
excluded.--In applying subparagraphs (A) and (B) of paragraph
(1), the Secretary shall not consider or count--
``(i) drugs that are already selected drugs; and
``(ii) for initial price applicability years 2026, 2027,
and 2028, qualifying single source drugs described in
paragraph (2)(A).
``(B) Use of data.--In determining whether a qualifying
single source drug satisfies any of the criteria described in
paragraph (1) or (2), the Secretary shall use data that is
aggregated across dosage forms and strengths of the drug,
including new formulations of the drug, such as an extended
release formulation, and not based on the specific
formulation or package size or package type of the drug.
``(e) Qualifying Single Source Drug.--
``(1) In general.--For purposes of this part, the term
`qualifying single source drug' means, with respect to an
initial price applicability year, subject to paragraphs (2)
and (3), a covered part D drug (as defined in section 1860D-
2(e)) that is described in any of the following or a drug or
biological product covered under part B of title XVIII that
is described in any of the following:
``(A) Drug products.--A drug--
``(i) that is approved under section 505(c) of the Federal
Food, Drug, and Cosmetic Act and is marketed pursuant to such
approval;
``(ii) for which, as of the selected drug publication date
with respect to such initial price applicability year, at
least 7 years will have elapsed since the date of such
approval; and
``(iii) that is not the listed drug for any drug that is
approved and marketed under section 505(j) of such Act.
``(B) Biological products.--A biological product--
``(i) that is licensed under section 351(a) of the Public
Health Service Act and is marketed under section 351 of such
Act;
``(ii) for which, as of the selected drug publication date
with respect to such initial price applicability year, at
least 11 years will have elapsed since the date of such
licensure; and
``(iii) that is not the reference product for any
biological product that is licensed and marketed under
section 351(k) of such Act.
``(2) Treatment of authorized generic drugs.--
``(A) In general.--In the case of a qualifying single
source drug described in subparagraph (A) or (B) of paragraph
(1) that is the listed drug (as such term is used in section
505(j) of the Federal Food, Drug, and Cosmetic Act) or a
product described in clause (ii) of subparagraph (B), with
respect to an authorized generic drug, in applying the
provisions of this part, such authorized generic drug and
such listed drug or such product shall be treated as the same
qualifying single source drug.
``(B) Authorized generic drug defined.--For purposes of
this paragraph, the term `authorized generic drug' means--
``(i) in the case of a drug, an authorized generic drug (as
such term is defined in section 505(t)(3) of the Federal
Food, Drug, and Cosmetic Act); and
``(ii) in the case of a biological product, a product
that--

``(I) has been licensed under section 351(a) of such Act;
and
``(II) is marketed, sold, or distributed directly or
indirectly to retail class of trade under a different
labeling, packaging (other than repackaging as the reference
product in blister packs, unit doses, or similar packaging
for use in institutions), product code, labeler code, trade
name, or trade mark than the reference product.

``(3) Exclusions.--In this part, the term `qualifying
single source drug' does not include any of the following:
``(A) Certain orphan drugs.--A drug that is designated as a
drug for only one rare disease or condition under section 526
of the Federal Food, Drug, and Cosmetic Act and for which the
only approved indication (or indications) is for such disease
or condition.
``(B) Low spend medicare drugs.--A drug or biological
product with respect to which the total expenditures under
parts B and D of title XVIII, as determined by the Secretary,
during the most recent period for which data are available of
at least 12 months prior to the selected drug publication
date (but ending no later than October 31 of the year prior
to the year of such drug publication date), with respect to
such year, is less than--
``(i) with respect to 2021, $200,000,000; or
``(ii) with respect to a subsequent year, the dollar amount
specified in this subparagraph for the previous year
increased by the annual percentage increase in the consumer
price index for all urban consumers (all items; United States
city average) for the 12-month period ending with September
of such previous year.
``(C) Plasma-derived products.--A biological product that
is derived from human whole blood or plasma.
``(f) No Administrative or Judicial Review.--The
determination of negotiation-eligible drugs under subsection
(d), the determination of qualifying single source drugs
under subsection (e), and the selection of drugs under this
section are not subject to administrative or judicial review.

``SEC. 1193. MANUFACTURER AGREEMENTS.

``(a) In General.--For purposes of section 1191(a)(2), the
Secretary shall enter into agreements with manufacturers of
selected drugs with respect to a price applicability period,
by not later than February 28 following the selected drug
publication date with respect to such selected drug, under
which--
``(1) during the negotiation period for the initial price
applicability year for the selected drug, the Secretary and
the manufacturer, in accordance with section 1194, negotiate
to determine (and, by not later than the last date of such
period, agree to) a maximum fair price for such selected drug
of the manufacturer in order for the manufacturer to provide
access to such price--
``(A) to maximum fair price eligible individuals who with
respect to such drug are described in subparagraph (A) of
section 1191(c)(1) and are dispensed such drug (and to
pharmacies, mail order services, and other dispensers, with
respect to such maximum fair price eligible individuals who
are dispensed such drugs) during, subject to paragraph (2),
the price applicability period; and
``(B) to hospitals, physicians, and other providers of
services and suppliers with respect to maximum fair price
eligible individuals who with respect to such drug are
described in subparagraph (B) of such section and are
furnished or administered such drug during, subject to
paragraph (2), the price applicability period;
``(2) the Secretary and the manufacturer shall, in
accordance with section 1194, renegotiate (and, by not later
than the last date of such period, agree to) the maximum fair
price for such drug, in order for the manufacturer to provide
access to such maximum fair price (as so renegotiated)--
``(A) to maximum fair price eligible individuals who with
respect to such drug are described in subparagraph (A) of
section 1191(c)(1) and are dispensed such drug (and to
pharmacies, mail order services, and other dispensers, with
respect to such maximum fair price eligible individuals who
are dispensed such drugs) during any year during the price
applicability period (beginning after such renegotiation)
with respect to such selected drug; and
``(B) to hospitals, physicians, and other providers of
services and suppliers with respect to maximum fair price
eligible individuals who with respect to such drug are
described in subparagraph (B) of such section and are
furnished or administered such drug during any year described
in subparagraph (A);
``(3) subject to subsection (d), access to the maximum fair
price (including as renegotiated pursuant to paragraph (2)),
with respect to such a selected drug, shall be provided by
the manufacturer to--
``(A) maximum fair price eligible individuals, who with
respect to such drug are described in subparagraph (A) of
section 1191(c)(1), at the pharmacy, mail order service, or
other dispenser at the point-of-sale of such drug (and shall
be provided by the manufacturer to the pharmacy, mail order
service, or other dispenser, with respect to such maximum
fair price eligible individuals who are dispensed such
drugs), as described in paragraph (1)(A) or (2)(A), as
applicable; and
``(B) hospitals, physicians, and other providers of
services and suppliers with respect to maximum fair price
eligible individuals who with respect to such drug are
described in subparagraph (B) of such section and are
furnished or administered such drug, as described in
paragraph (1)(B) or (2)(B), as applicable;
``(4) the manufacturer submits to the Secretary, in a form
and manner specified by the Secretary, for the negotiation
period for the price applicability period (and, if
applicable, before any period of renegotiation pursuant to
section 1194(f)) with respect to such drug--
``(A) information on the non-Federal average manufacturer
price (as defined in section 8126(h)(5) of title 38, United
States Code) for the drug for the applicable year or period;
and
``(B) information that the Secretary requires to carry out
the negotiation (or renegotiation process) under this part;
and

[[Page S3929]]

``(5) the manufacturer complies with requirements
determined by the Secretary to be necessary for purposes of
administering the program and monitoring compliance with the
program.
``(b) Agreement in Effect Until Drug Is No Longer a
Selected Drug.--An agreement entered into under this section
shall be effective, with respect to a selected drug, until
such drug is no longer considered a selected drug under
section 1192(c).
``(c) Confidentiality of Information.--Information
submitted to the Secretary under this part by a manufacturer
of a selected drug that is proprietary information of such
manufacturer (as determined by the Secretary) shall be used
only by the Secretary or disclosed to and used by the
Comptroller General of the United States for purposes of
carrying out this part.
``(d) Nonduplication With 340B Ceiling Price.--Under an
agreement entered into under this section, the manufacturer
of a selected drug shall not be required to provide access to
the maximum fair price under subsection (a)(3), with respect
to such selected drug and maximum fair price eligible
individuals who are eligible to be furnished, administered,
or dispensed such selected drug at a covered entity described
in section 340B(a)(4) of the Public Health Service Act, to
such covered entity if such selected drug is subject to an
agreement described in section 340B(a)(1) of such Act and the
ceiling price (defined in section 340B(a)(1) of such Act) is
lower than the maximum fair price for such selected drug,
except that the manufacturer shall provide for the maximum
fair price to such covered entity with respect to maximum
fair price eligible individuals who are eligible to be
furnished, administered, or dispensed such selected drug at
such entity at such ceiling price in a nonduplicated amount
to the ceiling price if the maximum fair price is below the
ceiling price for such selected drug.

``SEC. 1194. NEGOTIATION AND RENEGOTIATION PROCESS.

``(a) In General.--For purposes of this part, under an
agreement under section 1193 between the Secretary and a
manufacturer of a selected drug (or selected drugs), with
respect to the period for which such agreement is in effect
and in accordance with subsections (b), (c), and (d), the
Secretary and the manufacturer--
``(1) shall during the negotiation period with respect to
such drug, in accordance with this section, negotiate a
maximum fair price for such drug for the purpose described in
section 1193(a)(1); and
``(2) renegotiate, in accordance with the process specified
pursuant to subsection (f), such maximum fair price for such
drug for the purpose described in section 1193(a)(2) if such
drug is a renegotiation-eligible drug under such subsection.
``(b) Negotiation Process Requirements.--
``(1) Methodology and process.--The Secretary shall develop
and use a consistent methodology and process, in accordance
with paragraph (2), for negotiations under subsection (a)
that aims to achieve the lowest maximum fair price for each
selected drug.
``(2) Specific elements of negotiation process.--As part of
the negotiation process under this section, with respect to a
selected drug and the negotiation period with respect to the
initial price applicability year with respect to such drug,
the following shall apply:
``(A) Submission of information.--Not later than March 1 of
the year of the selected drug publication date, with respect
to the selected drug, the manufacturer of the drug shall
submit to the Secretary, in accordance with section
1193(a)(4), the information described in such section.
``(B) Initial offer by secretary.--Not later than the June
1 following the selected drug publication date, the Secretary
shall provide the manufacturer of a selected drug with a
written initial offer that contains the Secretary's proposal
for the maximum fair price of the drug and a list of the
factors described in section 1194(e) that were used in
developing such offer.
``(C) Response to initial offer.--
``(i) In general.--Not later than 30 days after the date of
receipt of an initial offer under subparagraph (B), the
manufacturer shall either accept such offer or propose a
counteroffer to such offer.
``(ii) Counteroffer requirements.--If a manufacturer
proposes a counteroffer, such counteroffer--

``(I) shall be in writing; and
``(II) shall be justified based on the factors described in
subsection (e).

``(D) Response to counteroffer.--After receiving a
counteroffer under subparagraph (C), the Secretary shall
respond in writing to such counteroffer.
``(E) Deadline.--All negotiations between the Secretary and
the manufacturer of the selected drug shall end prior to the
first day of November following the selected drug publication
date, with respect to the initial price applicability year.
``(F) Limitations on offer amount.--In negotiating the
maximum fair price of a selected drug, with respect to an
initial price applicability year for the selected drug, and,
as applicable, in renegotiating the maximum fair price for
such drug, with respect to a subsequent year during the price
applicability period for such drug, the Secretary shall not
offer (or agree to a counteroffer for) a maximum fair price
for the selected drug that--
``(i) exceeds the ceiling determined under subsection (c)
for the selected drug and year; or
``(ii) as applicable, is less than the floor determined
under subsection (d) for the selected drug and year.
``(G) Treatment of determination.--The determination of a
maximum fair price under this section is not subject to
administrative or judicial review.
``(c) Ceiling for Maximum Fair Price.--
``(1) General ceiling.--
``(A) In general.--The maximum fair price negotiated under
this section for a selected drug, with respect to the first
year of the price applicability period with respect to such
drug, shall not exceed the lower of the amount under
subparagraph (B) or the amount under subparagraph (C).
``(B) Subparagraph (B) amount.--An amount equal to the
following:
``(i) Covered part d drug.--In the case of a covered part D
drug (as defined in section 1860D-2(e)), the sum of the plan
specific enrollment weighted amounts for each prescription
drug plan or MA-PD plan (as determined under paragraph (2)).
``(ii) Part b drug or biological.--In the case of a drug or
biological product covered under part B of title XVIII, the
payment amount under section 1847A(b)(4) for the drug or
biological product for the year prior to the year of the
selected drug publication date with respect to the initial
price applicability year for the drug or biological product.
``(C) Subparagraph (C) amount.--An amount equal to the
applicable percent described in paragraph (3), with respect
to such drug, of the following:
``(i) Initial price applicability year 2026.--In the case
of a selected drug with respect to which such initial price
applicability year is 2026, the average non-Federal average
manufacturer price for such drug for 2021 (or, in the case
that there is not an average non-Federal average manufacturer
price available for such drug for 2021, for the first full
year following the market entry for such drug), increased by
the percentage increase in the consumer price index for all
urban consumers (all items; United States city average) from
September 2021 (or December of such first full year following
the market entry), as applicable, to September of the year
prior to the year of the selected drug publication date with
respect to such initial price applicability year.
``(ii) Initial price applicability year 2027 and subsequent
years.--In the case of a selected drug with respect to which
such initial price applicability year is 2027 or a subsequent
year, the lower of--

``(I) the average non-Federal average manufacturer price
for such drug for 2021 (or, in the case that there is not an
average non-Federal average manufacturer price available for
such drug for 2021, for the first full year following the
market entry for such drug), increased by the percentage
increase in the consumer price index for all urban consumers
(all items; United States city average) from September 2021
(or December of such first full year following the market
entry), as applicable, to September of the year prior to the
year of the selected drug publication date with respect to
such initial price applicability year; or
``(II) the average non-Federal average manufacturer price
for such drug for the year prior to the selected drug
publication date with respect to such initial price
applicability year.

``(2) Plan specific enrollment weighted amount.--For
purposes of paragraph (1)(B)(i), the plan specific enrollment
weighted amount for a prescription drug plan or an MA-PD plan
with respect to a covered Part D drug is an amount equal to
the product of--
``(A) the negotiated price of the drug under such plan
under part D of title XVIII, net of all price concessions
received by such plan or pharmacy benefit managers on behalf
of such plan, for the most recent year for which data is
available; and
``(B) a fraction--
``(i) the numerator of which is the total number of
individuals enrolled in such plan in such year; and
``(ii) the denominator of which is the total number of
individuals enrolled in a prescription drug plan or an MA-PD
plan in such year.
``(3) Applicable percent described.--For purposes of this
subsection, the applicable percent described in this
paragraph is the following:
``(A) Short-monopoly drugs and vaccines.--With respect to a
selected drug (other than an extended-monopoly drug and a
long-monopoly drug), 75 percent.
``(B) Extended-monopoly drugs.--With respect to an
extended-monopoly drug, 65 percent.
``(C) Long-monopoly drugs.--With respect to a long-monopoly
drug, 40 percent.
``(4) Extended-monopoly drug defined.--
``(A) In general.--In this part, subject to subparagraph
(B), the term `extended-monopoly drug' means, with respect to
an initial price applicability year, a selected drug for
which at least 12 years, but fewer than 16 years, have
elapsed since the date of approval of such drug under section
505(c) of the Federal Food, Drug, and Cosmetic Act or since
the date of licensure of such drug under section 351(a) of
the Public Health Service Act, as applicable.
``(B) Exclusions.--The term `extended-monopoly drug' shall
not include any of the following:
``(i) A vaccine that is licensed under section 351 of the
Public Health Service Act and marketed pursuant to such
section.

[[Page S3930]]

``(ii) A selected drug for which a manufacturer had an
agreement under this part with the Secretary with respect to
an initial price applicability year that is before 2030.
``(C) Clarification.--Nothing in subparagraph (B)(ii) shall
limit the transition of a selected drug described in
paragraph (3)(A) to a long-monopoly drug if the selected drug
meets the definition of a long-monopoly drug.
``(5) Long-monopoly drug defined.--
``(A) In general.--In this part, subject to subparagraph
(B), the term `long-monopoly drug' means, with respect to an
initial price applicability year, a selected drug for which
at least 16 years have elapsed since the date of approval of
such drug under section 505(c) of the Federal Food, Drug, and
Cosmetic Act or since the date of licensure of such drug
under section 351(a) of the Public Health Service Act, as
applicable.
``(B) Exclusion.--The term `long-monopoly drug' shall not
include a vaccine that is licensed under section 351 of the
Public Health Service Act and marketed pursuant to such
section.
``(6) Average non-federal average manufacturer price.--In
this part, the term `average non-Federal average manufacturer
price' means the average of the non-Federal average
manufacturer price (as defined in section 8126(h)(5) of title
38, United States Code) for the 4 calendar quarters of the
year involved.
``(d) Temporary Floor for Small Biotech Drugs.--In the case
of a selected drug that is a qualifying single source drug
described in section 1192(d)(2) and with respect to which the
first initial price applicability year of the price
applicability period with respect to such drug is 2029 or
2030, the maximum fair price negotiated under this section
for such drug for such initial price applicability year may
not be less than 66 percent of the average non-Federal
average manufacturer price for such drug (as defined in
subsection (c)(6)) for 2021 (or, in the case that there is
not an average non-Federal average manufacturer price
available for such drug for 2021, for the first full year
following the market entry for such drug), increased by the
percentage increase in the consumer price index for all urban
consumers (all items; United States city average) from
September 2021 (or December of such first full year following
the market entry), as applicable, to September of the year
prior to the selected drug publication date with respect to
the initial price applicability year.
``(e) Factors.--For purposes of negotiating the maximum
fair price of a selected drug under this part with the
manufacturer of the drug, the Secretary shall consider the
following factors (and, with respect to extended-monopoly
drugs and long-monopoly drugs, shall not, except in making a
determination of a material change under subsection
(f)(2)(D), consider factors other than those described in
subparagraphs (B) and (C) of paragraph (1)):
``(1) Manufacturer-specific information.--The following
information, with respect to such selected drug, including as
submitted by the manufacturer:
``(A) Research and development costs of the manufacturer
for the drug and the extent to which the manufacturer has
recouped research and development costs.
``(B) Market data for the drug.
``(C) Unit costs of production and distribution of the
drug.
``(D) Prior Federal financial support for novel therapeutic
discovery and development with respect to the drug.
``(E) Data on patents and on existing and pending
exclusivity for the drug.
``(F) National sales data for the drug.
``(G) Information on clinical trials for the drug.
``(2) Information on alternative treatments.--The following
information, with respect to such selected drug and
therapeutic alternatives to such drug:
``(A) The extent to which such drug represents a
therapeutic advance as compared to existing therapeutic
alternatives and, to the extent such information is
available, the costs of such existing therapeutic
alternatives.
``(B) Approval by the Food and Drug Administration of such
drug and therapeutic alternatives of such drug.
``(C) Comparative effectiveness of such drug and
therapeutic alternatives to such drug, taking into
consideration the effects of such drug and therapeutic
alternatives of such drug on specific populations, such as
individuals with disabilities, the elderly, the terminally
ill, children, and other patient populations.
``(D) The extent to which such drug and therapeutic
alternatives to such drug address unmet medical needs for a
condition for which treatment or diagnosis is not addressed
adequately by available therapy.
In considering information described in subparagraph (C), the
Secretary shall not use evidence or findings from comparative
clinical effectiveness research in a manner that treats
extending the life of an elderly, disabled, or terminally ill
individual as of lower value than extending the life of an
individual who is younger, nondisabled, or not terminally
ill.
``(f) Renegotiation Process.--
``(1) In general.--In the case of a renegotiation-eligible
drug (as defined in paragraph (2)) that is selected under
paragraph (3), the Secretary shall provide for a process of
renegotiation (for years (beginning with 2028) during the
price applicability period, with respect to such drug) of the
maximum fair price for such drug consistent with paragraph
(4).
``(2) Renegotiation-eligible drug defined.--In this
section, the term `renegotiation-eligible drug' means a
selected drug that is any of the following:
``(A) Addition of new indication.--A selected drug for
which a new indication is added to the drug.
``(B) Change of status to an extended-monopoly drug.--A
selected drug that--
``(i) is not an extended-monopoly or a long-monopoly drug;
and
``(ii) for which there is a change in status to that of an
extended-monopoly drug.
``(C) Change of status to a long-monopoly drug.--A selected
drug that--
``(i) is not a long-monopoly drug; and
``(ii) for which there is a change in status to that of a
long-monopoly drug.
``(D) Material changes.--A selected drug for which the
Secretary determines there has been a material change of any
of the factors described in paragraph (1) or (2) of
subsection (e).
``(3) Selection of drugs for renegotiation.--Each year the
Secretary shall select among renegotiation-eligible drugs for
renegotiation as follows:
``(A) All extended-monopoly negotiation-eligible drugs.--
The Secretary shall select all renegotiation-eligible drugs
described in paragraph (2)(B).
``(B) All long-monopoly negotiation-eligible drugs.--The
Secretary shall select all renegotiation-eligible drugs
described in paragraph (2)(C).
``(C) Remaining drugs.--Among the remaining renegotiation-
eligible drugs described in subparagraphs (A) and (D) of
paragraph (2), the Secretary shall select renegotiation-
eligible drugs for which the Secretary expects renegotiation
is likely to result in a significant change in the maximum
fair price otherwise negotiated.
``(4) Renegotiation process.--The Secretary shall specify
the process for renegotiation of maximum fair prices with the
manufacturer of a renegotiation-eligible drug selected for
renegotiation under this subsection. Such process shall, to
the extent practicable, be consistent with the methodology
and process established under subsection (b) and in
accordance with subsections (c) and (d), and for purposes of
applying subsections (c) and (d), the reference to the first
initial price applicability year of the price applicability
period with respect to such drug shall be treated as the
first initial price applicability year of such period for
which the maximum fair price established pursuant to such
renegotiation applies, including for applying subsection
(c)(3)(B) in the case of renegotiation-eligible drugs
described in paragraph (3)(A) of this subsection and
subsection (c)(3)(C) in the case of renegotiation-eligible
drugs described in paragraph (3)(B) of this subsection.
``(5) Clarification.--A renegotiation-eligible drug for
which the Secretary makes a determination described in
section 1192(c)(1) before or during the period of
renegotiation shall not be subject to the renegotiation
process under this section.
``(6) No administrative or judicial review.--The
determination of renegotiation-eligible drugs under paragraph
(2) and the selection of renegotiation-eligible drugs under
paragraph (3) are not subject to administrative or judicial
review.
``(g) Limitation.--
``(1) In general.--In no case shall the maximum fair price
negotiated under this section for a selected drug that is a
qualifying single source drug described in section 1192(e)(1)
apply before--
``(A) in the case the selected drug is a qualifying single
source drug described in subparagraph (A) of section
1192(e)(1), the date that is 9 years after the day on which
the drug was approved under section 505(c) of the Federal
Food, Drug, and Cosmetic Act; and
``(B) in the case the selected drug is a qualifying single
source drug described in subparagraph (B) of section
1192(e)(1), the date that is 13 years after the day on which
the drug was licensed under section 351(a) of the Public
Health Service Act.
``(2) Clarification.--The maximum fair price for a selected
drug described in subparagraph (A) or (B) of paragraph (1)
shall take effect no later than the first day of the first
calendar quarter that begins after the date described in
subparagraph (A) or (B), as applicable.

``SEC. 1195. PUBLICATION OF MAXIMUM FAIR PRICES.

``(a) In General.--With respect to an initial price
applicability year and a selected drug with respect to such
year--
``(1) not later than November 30 of the year that is 2
years prior to such initial price applicability year, the
Secretary shall publish the maximum fair price for such drug
negotiated with the manufacturer of such drug under this
part; and
``(2) not later than March 1 of the year prior to such
initial price applicability year, the Secretary shall
publish, subject to section 1193(c), the explanation for the
maximum fair price with respect to the factors as applied
under section 1194(e) for such drug described in paragraph
(1).
``(b) Updates.--
``(1) Subsequent year maximum fair prices.--For a selected
drug, for each year subsequent to the first initial price
applicability year of the price applicability period with
respect to such drug, with respect to which an agreement for
such drug is in effect

[[Page S3931]]

under section 1193, not later than November 30 of the year
that is 2 years prior to such subsequent year, the Secretary
shall publish the maximum fair price applicable to such drug
and year, which shall be--
``(A) subject to subparagraph (B), the amount equal to the
maximum fair price published for such drug for the previous
year, increased by the annual percentage increase in the
consumer price index for all urban consumers (all items;
United States city average) for the 12-month period ending
with September of such previous year; or
``(B) in the case the maximum fair price for such drug was
renegotiated, for the first year for which such price as so
renegotiated applies, such renegotiated maximum fair price.
``(2) Prices negotiated after deadline.--In the case of a
selected drug with respect to an initial price applicability
year for which the maximum fair price is determined under
this part after the date of publication under this section,
the Secretary shall publish such maximum fair price by not
later than 30 days after the date such maximum price is so
determined.

``SEC. 1196. ADMINISTRATIVE DUTIES AND COMPLIANCE MONITORING.

``(a) Administrative Duties.--For purposes of section
1191(a)(4), the administrative duties described in this
section are the following:
``(1) The establishment of procedures to ensure that the
maximum fair price for a selected drug is applied before--
``(A) any coverage or financial assistance under other
health benefit plans or programs that provide coverage or
financial assistance for the purchase or provision of
prescription drug coverage on behalf of maximum fair price
eligible individuals; and
``(B) any other discounts.
``(2) The establishment of procedures to compute and apply
the maximum fair price across different strengths and dosage
forms of a selected drug and not based on the specific
formulation or package size or package type of such drug.
``(3) The establishment of procedures to carry out the
provisions of this part, as applicable, with respect to--
``(A) maximum fair price eligible individuals who are
enrolled under a prescription drug plan under part D of title
XVIII or an MA-PD plan under part C of such title; and
``(B) maximum fair price eligible individuals who are
enrolled under part B of such title, including who are
enrolled under an MA plan under part C of such title.
``(4) The establishment of a negotiation process and
renegotiation process in accordance with section 1194.
``(5) The establishment of a process for manufacturers to
submit information described in section 1194(b)(2)(A).
``(6) The sharing with the Secretary of the Treasury of
such information as is necessary to determine the tax imposed
by section 4192 of the Internal Revenue Code of 1986
(relating to enforcement of this part).
``(7) The establishment of procedures for purposes of
applying section 1192(d)(2)(B).
``(b) Compliance Monitoring.--The Secretary shall monitor
compliance by a manufacturer with the terms of an agreement
under section 1193 and establish a mechanism through which
violations of such terms shall be reported.

``SEC. 1197. CIVIL MONETARY PENALTIES.

``(a) Violations Relating to Offering of Maximum Fair
Price.--Any manufacturer of a selected drug that has entered
into an agreement under section 1193, with respect to a year
during the price applicability period with respect to such
drug, that does not provide access to a price that is not
more than the maximum fair price (or a lesser price) for such
drug for such year--
``(1) to a maximum fair price eligible individual who with
respect to such drug is described in subparagraph (A) of
section 1191(c)(1) and who is dispensed such drug during such
year (and to pharmacies, mail order services, and other
dispensers, with respect to such maximum fair price eligible
individuals who are dispensed such drugs); or
``(2) to a hospital, physician, or other provider of
services or supplier with respect to maximum fair price
eligible individuals who with respect to such drug is
described in subparagraph (B) of such section and is
furnished or administered such drug by such hospital,
physician, or provider or supplier during such year;
shall be subject to a civil monetary penalty equal to ten
times the amount equal to the product of the number of units
of such drug so furnished, dispensed, or administered during
such year and the difference between the price for such drug
made available for such year by such manufacturer with
respect to such individual or hospital, physician, provider
of services, or supplier and the maximum fair price for such
drug for such year.
``(b) Violations of Certain Terms of Agreement.--Any
manufacturer of a selected drug that has entered into an
agreement under section 1193, with respect to a year during
the price applicability period with respect to such drug,
that is in violation of a requirement imposed pursuant to
section 1193(a)(5), including the requirement to submit
information pursuant to section 1193(a)(4), shall be subject
to a civil monetary penalty equal to $1,000,000 for each day
of such violation.
``(c) False Information.--Any manufacturer that knowingly
provides false information pursuant to section 1196(a)(7)
shall be subject to a civil monetary penalty equal to
$100,000,000 for each item of such false information.
``(d) Application.--The provisions of section 1128A (other
than subsections (a) and (b)) shall apply to a civil monetary
penalty under this section in the same manner as such
provisions apply to a penalty or proceeding under section
1128A(a).''.
(b) Application of Maximum Fair Prices and Conforming
Amendments.--
(1) Under medicare.--
(A) Application to payments under part b.--Section
1847A(b)(1)(B) of the Social Security Act (42 U.S.C. 1395w-
3a(b)(1)(B)) is amended by inserting ``or in the case of such
a drug or biological product that is a selected drug (as
referred to in section 1192(c)), with respect to a price
applicability period (as defined in section 1191(b)(2)), 106
percent of the maximum fair price (as defined in section
1191(c)(2)) applicable for such drug and a year during such
period'' after ``paragraph (4)''.
(B) Application under ma of cost-sharing for part b drugs
based off of negotiated price.--Section 1852(a)(1)(B)(iv) of
the Social Security Act (42 U.S.C. 1395w-22(a)(1)(B)(iv)) is
amended--
(i) by redesignating subclause (VII) as subclause (VIII);
and
(ii) by inserting after subclause (VI) the following
subclause:

``(VII) A drug or biological product that is a selected
drug (as referred to in section 1192(c)).''.

(C) Exception to part D non-interference.--Section 1860D-
11(i) of the Social Security Act (42 U.S.C. 1395w-111(i)) is
amended--
(i) in paragraph (1), by striking ``and'' at the end;
(ii) in paragraph (2), by striking the period at the end
and inserting ``, except as provided under section 1860D-
4(b)(3)(l); and''; and
(iii) by adding at the end the following new paragraph:
``(3) may not institute a price structure for the
reimbursement of covered part D drugs, except as provided
under part E of title XI.''.
(D) Application as negotiated price under part d.--Section
1860D-2(d)(1) of the Social Security Act (42 U.S.C. 1395w-
102(d)(1)) is amended--
(i) in subparagraph (B), by inserting ``, subject to
subparagraph (D),'' after ``negotiated prices''; and
(ii) by adding at the end the following new subparagraph:
``(D) Application of maximum fair price for selected
drugs.--In applying this section, in the case of a covered
part D drug that is a selected drug (as referred to in
section 1192(c)), with respect to a price applicability
period (as defined in section 1191(b)(2)), the negotiated
prices used for payment (as described in this subsection)
shall be no greater than the maximum fair price (as defined
in section 1191(c)(2)) for such drug and for each year during
such period plus any dispensing fees for such drug.''.
(E) Coverage of selected drugs.--Section 1860D-4(b)(3) of
the Social Security Act (42 U.S.C. 1395w-104(b)(3)) is
amended by adding at the end the following new subparagraph:
``(I) Required inclusion of selected drugs.--
``(i) In general.--For 2026 and each subsequent year, the
PDP sponsor offering a prescription drug plan shall include
each covered part D drug that is a selected drug under
section 1192 for which an agreement for such drug is in
effect under section 1193 with respect to the year.
``(ii) Clarification.--Nothing in clause (i) shall be
construed as prohibiting a PDP sponsor from removing such a
selected drug from a formulary if such removal would be
permitted under section 423.120(b)(5)(iv) of title 42, Code
of Federal Regulations (or any successor regulation).''.
(F) Information from prescription drug plans and ma-pd
plans required.--
(i) Prescription drug plans.--Section 1860D-12(b) of the
Social Security Act (42 U.S.C. 1395w-112(b)) is amended by
adding at the end the following new paragraph:
``(8) Provision of information related to maximum fair
prices.--Each contract entered into with a PDP sponsor under
this part with respect to a prescription drug plan offered by
such sponsor shall require the sponsor to provide information
to the Secretary as requested by the Secretary in accordance
with section 1194(g).''.
(ii) MA-PD plans.--Section 1857(f)(3) of the Social
Security Act (42 U.S.C. 1395w-27(f)(3)) is amended by adding
at the end the following new subparagraph:
``(E) Provision of information related to maximum fair
prices.--Section 1860D-12(b)(8).''.
(2) Drug price negotiation program prices included in best
price.--Section 1927(c)(1)(C) of the Social Security Act (42
U.S.C. 1396r-8(c)(1)(C)) is amended--
(A) in clause (i)(VI), by striking ``any prices charged''
and inserting ``subject to clause (ii)(V), any prices
charged''; and
(B) in clause (ii)--
(i) in subclause (III), by striking ``; and'' at the end;
(ii) in subclause (IV), by striking the period at the end
and inserting ``; and''; and
(iii) by adding at the end the following new subclause:

``(V) in the case of a rebate period and a covered
outpatient drug that is a selected drug (as referred to in
section 1192(c)) during such rebate period, shall be
inclusive of the maximum fair price (as defined in section
1191(c)(2)) for such drug with respect to such period.''.

(3) Maximum fair prices excluded from average manufacturer
price.--Section

[[Page S3932]]

1927(k)(1)(B)(i) of the Social Security Act (42 U.S.C. 1396r-
8(k)(1)(B)(i)) is amended--
(A) in subclause (IV) by striking ``; and'' at the end;
(B) in subclause (V) by striking the period at the end and
inserting ``; and''; and
(C) by adding at the end the following new subclause:

``(VI) any reduction in price paid during the rebate period
to the manufacturer for a drug by reason of application of
part E of title XI.''.

(c) Implementation for 2026 Through 2028.--The Secretary of
Health and Human Services shall implement this section,
including the amendments made by this section, for 2026,
2027, and 2028 by program instruction or other forms of
program guidance.

SEC. 11002. SPECIAL RULE TO DELAY SELECTION AND NEGOTIATION
OF BIOLOGICS FOR BIOSIMILAR MARKET ENTRY.

(a) In General.--Part E of title XI of the Social Security
Act, as added by section 11001, is amended--
(1) in section 1192--
(A) in subsection (a), in the flush matter following
paragraph (2), by inserting ``and subsection (b)(3)'' after
``the previous sentence'';
(B) in subsection (b)--
(i) in paragraph (1), by adding at the end the following
new subparagraph:
``(C) In the case of a biological product for which the
inclusion of the biological product as a selected drug on a
list published under subsection (a) has been delayed under
subsection (f)(2), remove such biological product from the
rankings under subparagraph (A) before making the selections
under subparagraph (B).''; and
(ii) by adding at the end the following new paragraph:
``(3) Inclusion of delayed biological products.--Pursuant
to subparagraphs (B)(ii)(I) and (C)(i) of subsection (f)(2),
the Secretary shall select and include on the list published
under subsection (a) the biological products described in
such subparagraphs. Such biological products shall count
towards the required number of drugs to be selected under
subsection (a)(1).'';
(C) by redesignating subsection (f) as subsection (g);
(D) by inserting after subsection (e) the following new
subsection:
``(f) Special Rule To Delay Selection and Negotiation of
Biologics for Biosimilar Market Entry.--
``(1) Application.--
``(A) In general.--Subject to subparagraph (B), in the case
of a biological product that would (but for this subsection)
be an extended-monopoly drug (as defined in section
1194(c)(4)) included as a selected drug on the list published
under subsection (a) with respect to an initial price
applicability year, the rules described in paragraph (2)
shall apply if the Secretary determines that there is a high
likelihood (as described in paragraph (3)) that a biosimilar
biological product (for which such biological product will be
the reference product) will be licensed and marketed under
section 351(k) of the Public Health Service Act before the
date that is 2 years after the selected drug publication date
with respect to such initial price applicability year.
``(B) Request required.--
``(i) In general.--The Secretary shall not provide for a
delay under--

``(I) paragraph (2)(A) unless a request is made for such a
delay by a manufacturer of a biosimilar biological product
prior to the selected drug publication date for the list
published under subsection (a) with respect to the initial
price applicability year for which the biological product
would have been included as a selected drug on such list but
for subparagraph (2)(A); or
``(II) paragraph (2)(B)(iii) unless a request is made for
such a delay by such a manufacturer prior to the selected
drug publication date for the list published under subsection
(a) with respect to the initial price applicability year that
is 1 year after the initial price applicability year for
which the biological product described in subsection (a)
would have been included as a selected drug on such list but
for paragraph (2)(A).

``(ii) Information and documents.--

``(I) In general.--A request made under clause (i) shall be
submitted to the Secretary by such manufacturer at a time and
in a form and manner specified by the Secretary, and
contain--

``(aa) information and documents necessary for the
Secretary to make determinations under this subsection, as
specified by the Secretary; and
``(bb) all agreements related to the biosimilar biological
product filed with the Federal Trade Commission or the
Assistant Attorney General pursuant to subsections (a) and
(c) of section 1112 of the Medicare Prescription Drug,
Improvement, and Modernization Act of 2003.

``(II) Additional information and documents.--After the
Secretary has reviewed the request and materials submitted
under subclause (I), the manufacturer shall submit any
additional information and documents requested by the
Secretary necessary to make determinations under this
subsection.

``(C) Aggregation rule.--
``(i) In general.--All persons treated as a single employer
under subsection (a) or (b) of section 52 of the Internal
Revenue Code of 1986, or in a partnership, shall be treated
as one manufacturer for purposes of paragraph (2)(D)(iv).
``(ii) Partnership defined.--In clause (i), the term
`partnership' means a syndicate, group, pool, joint venture,
or other organization through or by means of which any
business, financial operation, or venture is carried on by
the manufacturer of the biological product and the
manufacturer of the biosimilar biological product.
``(2) Rules described.--The rules described in this
paragraph are the following:
``(A) Delayed selection and negotiation for 1 year.--If a
determination of high likelihood is made under paragraph (3),
the Secretary shall delay the inclusion of the biological
product as a selected drug on the list published under
subsection (a) until such list is published with respect to
the initial price applicability year that is 1 year after the
initial price applicability year for which the biological
product would have been included as a selected drug on such
list.
``(B) If not licensed and marketed during the initial
delay.--
``(i) In general.--If, during the time period between the
selected drug publication date on which the biological
product would have been included on the list as a selected
drug pursuant to subsection (a) but for subparagraph (A) and
the selected drug publication date with respect to the
initial price applicability year that is 1 year after the
initial price applicability year for which such biological
product would have been included as a selected drug on such
list, the Secretary determines that the biosimilar biological
product for which the manufacturer submitted the request
under paragraph (1)(B)(i)(II) (and for which the Secretary
previously made a high likelihood determination under
paragraph (3)) has not been licensed and marketed under such
section 351(k), the Secretary shall, at the request of such
manufacturer--

``(I) reevaluate whether there is a high likelihood (as
described in paragraph (3)) that such biosimilar biological
product will be licensed and marketed under such section
351(k) before the selected drug publication date that is 2
years after the selected drug publication date for which such
biological product would have been included as a selected
drug on such list published but for subparagraph (A); and
``(II) evaluate whether, on the basis of clear and
convincing evidence, the manufacturer of such biosimilar
biological product has made a significant amount of progress
(as determined by the Secretary) towards both such licensure
and the marketing of such biosimilar biological product
(based on the items described in paragraph (3)(B)) since the
receipt by the Secretary of the request made by such
manufacturer under paragraph (1)(B)(i)(I).

``(ii) Selection and negotiation.--If the Secretary
determines that there is not a high likelihood that such
biosimilar biological product will be licensed and marketed
as described in clause (i)(I) or there has not been a
significant amount of progress as described in clause
(i)(II)--

``(I) the Secretary shall include the biological product as
a selected drug on the list published under subsection (a)
with respect to the initial price applicability year that is
1 year after the initial price applicability year for which
such biological product would have been included as a
selected drug on such list but for subparagraph (A); and
``(II) the manufacturer of such biological product shall
pay a rebate under paragraph (4) with respect to the year for
which such manufacturer would have provided access to a
maximum fair price for such biological product but for
subparagraph (A).

``(iii) Second 1-year delay.--If the Secretary determines
that there is a high likelihood that such biosimilar
biological product will be licensed and marketed (as
described in clause (i)(I)) and a significant amount of
progress has been made by the manufacturer of such biosimilar
biological product towards such licensure and marketing (as
described in clause (i)(II)), the Secretary shall delay the
inclusion of the biological product as a selected drug on the
list published under subsection (a) until the selected drug
publication date of such list with respect to the initial
price applicability year that is 2 years after the initial
price applicability year for which such biological product
would have been included as a selected drug on such list but
for this subsection.
``(C) If not licensed and marketed during the year two
delay.--If, during the time period between the selected drug
publication date of the list for which the biological product
would have been included as a selected drug but for
subparagraph (B)(iii) and the selected drug publication date
with respect to the initial price applicability year that is
2 years after the initial price applicability year for which
such biological product would have been included as a
selected drug on such list but for this subsection, the
Secretary determines that such biosimilar biological product
has not been licensed and marketed--
``(i) the Secretary shall include such biological product
as a selected drug on such list with respect to the initial
price applicability year that is 2 years after the initial
price applicability year for which such biological product
would have been included as a selected drug on such list; and
``(ii) the manufacturer of such biological product shall
pay a rebate under paragraph (4) with respect to the years
for which such manufacturer would have provided access to a
maximum fair price for such biological product but for this
subsection.
``(D) Limitations on delays.--

[[Page S3933]]

``(i) Limited to 2 years.--In no case shall the Secretary
delay the inclusion of a biological product on the list
published under subsection (a) for more than 2 years.
``(ii) Exclusion of biological products that transitioned
to a long-monopoly drug during the delay.--In the case of a
biological product for which the inclusion on the list
published pursuant to subsection (a) was delayed by 1 year
under subparagraph (A) and for which there would have been a
change in status to a long-monopoly drug (as defined in
section 1194(c)(5)) if such biological product had been a
selected drug, in no case may the Secretary provide for a
second 1-year delay under subparagraph (B)(iii).
``(iii) Exclusion of biological products if more than 1
year since licensure.--In no case shall the Secretary delay
the inclusion of a biological product on the list published
under subsection (a) if more than 1 year has elapsed since
the biosimilar biological product has been licensed under
section 351(k) and marketing has not commenced for such
biosimilar biological product.
``(iv) Certain manufacturers of biosimilar biological
products excluded.--In no case shall the Secretary delay the
inclusion of a biological product as a selected drug on the
list published under subsection (a) if the manufacturer of
the biosimilar biological product described in paragraph
(1)(A)--

``(I) is the same as the manufacturer of the reference
product described in such paragraph or is treated as being
the same pursuant to paragraph (1)(C);
``(II) has--

``(aa) in the past 5 years, been subject to exclusion under
section 1128(b)(7) or to the imposition of civil monetary
penalties under section 1128A; or
``(bb) an integrity agreement in effect with the Inspector
General of the Department of Health and Human Services that
was entered into in lieu of exclusion under section
1128(b)(7);

``(III) is currently subject to a cease and desist order or
an injunction in a proceeding or civil action brought by the
Federal Trade Commission except for proceedings or actions
related solely to a merger or acquisition; or
``(IV) has entered into any agreement described in
paragraph (1)(B)(ii)(I)(bb) with the manufacturer of the
reference product described in paragraph (1)(A) that requires
or incentivizes the manufacturer of the biosimilar biological
product to submit a request described in paragraph (1)(B).

``(E) Public notification.--If the Secretary delays the
inclusion of a biological product as a selected drug on the
list published under this section pursuant to subparagraph
(A) or (B)(iii), the Secretary shall, within 30 days of
making the determination with respect to such delay, provide
notification to the public of such delay in a form and manner
determined by the Secretary.
``(3) High likelihood.--
``(A) In general.--For purposes of this subsection, there
is a high likelihood described in paragraph (1) or paragraph
(2), as applicable, if the Secretary finds that--
``(i) an application for licensure under such section
351(k) for the biosimilar biological product has been
accepted for review or approved by the Food and Drug
Administration; and
``(ii) information from documents described in paragraph
(1)(B)(ii) submitted by the manufacturer requesting a delay
under paragraph (1)(B) to the Secretary provides clear and
convincing evidence that such biosimilar biological product
will, within the time period specified under paragraph (1)(A)
or (2)(B)(i)(I), be marketed.
``(B) Items described.--The items described in this
subparagraph are the following:
``(i) The manufacturing schedule for such biosimilar
biological product submitted to the Food and Drug
Administration during its review of the application under
such section 351(k).
``(ii) Disclosures (in filings by the manufacturer of such
biosimilar biological product with the Securities and
Exchange Commission required under section 12(b), 12(g),
13(a), or 15(d) of the Securities Exchange Act of 1934 about
capital investment, revenue expectations, and actions taken
by the manufacturer that are typical of the normal course of
business in the year (or the 2 years, as applicable) before
marketing of a biosimilar biological product) that pertain to
the marketing of such biosimilar biological product, or
comparable documentation that is distributed to the
shareholders of privately held companies.
``(iii) Agreements filed with the Federal Trade Commission
or the Assistant Attorney General pursuant to subsections (a)
and (c) of section 1112 of the Medicare Prescription Drug,
Improvement, and Modernization Act of 2003.
``(4) Rebate.--
``(A) In general.--For purposes of subparagraphs
(B)(ii)(II) and (C)(ii) of paragraph (2), in the case of a
biological product for which the inclusion on the list under
subsection (a) was delayed under this subsection and for
which the Secretary has negotiated and entered into an
agreement under section 1193 with respect to such biological
product, the manufacturer shall be required to pay a rebate
to the Secretary at such time and in such manner as
determined by the Secretary.
``(B) Amount.--Subject to subparagraph (C), the amount of
the rebate under subparagraph (A) with respect to a
biological product shall be equal to the estimated amount--
``(i) in the case of a biological product that is a covered
part D drug (as defined in section 1860D-2(e)), that is the
sum of the products of--

``(I) 75 percent of the amount by which--

``(aa) the average manufacturer price, as reported by the
manufacturer of such covered part D drug under section 1927
(or, if not reported by such manufacturer under section 1927,
as reported by such manufacturer to the Secretary pursuant to
the agreement under section 1193(a)) for such biological
product, with respect to each of the calendar quarters of the
price applicability period that would have applied but for
this subsection; exceeds
``(bb) in the initial price applicability year that would
have applied but for a delay under--
``(AA) paragraph (2)(A), the maximum fair price negotiated
under section 1194 for such biological product under such
agreement; or
``(BB) paragraph (2)(B)(iii), such maximum fair price,
increased by the annual percentage increase in the consumer
price index for all urban consumers (all items; United States
city average) for the 12-month period ending with September
of such previous year; and

``(II) the number of units dispensed under part D of title
XVIII for such covered part D drug during each such quarter
of such price applicability period; and

``(ii) in the case of a biological product covered under
part B of title XVIII, that is the sum of the products of--

``(I) 80 percent of the amount by which--

``(aa) the payment amount for such biological product under
section 1847A(b), with respect to each of the calendar
quarters of the price applicability period that would have
applied but for this subsection; exceeds
``(bb) in the initial price applicability year that would
have applied but for a delay under--
``(AA) paragraph (2)(A), the maximum fair price negotiated
under section 1194 for such biological product under such
agreement; or
``(BB) paragraph (2)(B)(iii), such maximum fair price,
increased by the annual percentage increase in the consumer
price index for all urban consumers (all items; United States
city average) for the 12-month period ending with September
of such previous year; and

``(II) the number of units (excluding units that are
packaged into the payment amount for an item or service and
are not separately payable under such part B) of the billing
and payment code of such biological product administered or
furnished under such part B during each such calendar quarter
of such price applicability period.

``(C) Special rule for delayed biological products that are
long-monopoly drugs.--
``(i) In general.--In the case of a biological product with
respect to which a rebate is required to be paid under this
paragraph, if such biological product qualifies as a long-
monopoly drug (as defined in section 1194(c)(5)) at the time
of its inclusion on the list published under subsection (a),
in determining the amount of the rebate for such biological
product under subparagraph (B), the amount described in
clause (ii) shall be substituted for the maximum fair price
described in clause (i)(I) or (ii)(I) of such subparagraph
(B), as applicable.
``(ii) Amount described.--The amount described in this
clause is an amount equal to 65 percent of the average non-
Federal average manufacturer price for the biological product
for 2021 (or, in the case that there is not an average non-
Federal average manufacturer price available for such
biological product for 2021, for the first full year
following the market entry for such biological product),
increased by the percentage increase in the consumer price
index for all urban consumers (all items; United States city
average) from September 2021 (or December of such first full
year following the market entry), as applicable, to September
of the year prior to the selected drug publication date with
respect to the initial price applicability year that would
have applied but for this subsection.
``(D) Rebate deposits.--Amounts paid as rebates under this
paragraph shall be deposited into--
``(i) in the case payment is made for such biological
product under part B of title XVIII, the Federal
Supplementary Medical Insurance Trust Fund established under
section 1841; and
``(ii) in the case such biological product is a covered
part D drug (as defined in section 1860D-2(e)), the Medicare
Prescription Drug Account under section 1860D-16 in such
Trust Fund.
``(5) Determinations.--The determinations of high
likelihood and significant amount of progress under this
subsection and the determinations required under paragraph
(2)(D)(iv) shall be based on information available to the
Secretary, including information required by the Secretary
from the manufacturer of the biosimilar biological product
making a request for a delay under this subsection.
``(6) Definitions of biosimilar biological product.--In
this subsection, the term `biosimilar biological product' has
the meanings given such term in section 1847A(c)(6).''; and
(E) in subsection (g), as redesignated by subparagraph (C),
by inserting ``the application of subsection (f),'' after
``subsection (e),'';
(2) in section 1193(a)(4)--

[[Page S3934]]

(A) in the matter preceding subparagraph (A), by inserting
``and for section 1192(f)'' after ``section 1194(f)'';
(B) in subparagraph (A), by striking ``and'' at the end;
(C) by adding at the end the following new subparagraph:
``(C) information that the Secretary requires to carry out
section 1192(f), including rebates under paragraph (4) of
such section; and'';
(3) in section 1196(a)(7), by inserting ``,
1192(f)(1)(C),'' after ``sections 1192(d)(2)(B)''; and
(4) in section 1197--
(A) by redesignating subsections (b), (c), and (d) as
subsections (c), (d), and (e), respectively; and
(B) by inserting after subsection (a) the following new
subsection:
``(b) Violations Relating to Providing Rebates.--Any
manufacturer that fails to comply with the rebate
requirements under section 1192(f)(4) shall be subject to a
civil monetary penalty equal to 10 times the amount of the
rebate the manufacturer failed to pay under such section.''.
(b) Conforming Amendments for Disclosure of Certain
Information.--Section 1927(b)(3)(D) of the Social Security
Act (42 U.S.C. 1396r-8(b)(3)(D)) is amended--
(1) in clause (vi), by striking ``and'' at the end;
(2) in clause (vii), by striking the period at the end and
inserting ``; and''; and
(3) by inserting after clause (vii) the following new
clause:
``(viii) as the Secretary determines necessary to carry out
section 1192(f), including rebates under paragraph (4) of
such section.''.
(c) Implementation for 2026 Through 2028.--The Secretary of
Health and Human Services shall implement this section,
including the amendments made by this section, for 2026,
2027, and 2028 by program instruction or other forms of
program guidance.

SEC. 11003. SELECTED DRUG MANUFACTURER EXCISE TAX IMPOSED
DURING NONCOMPLIANCE PERIODS.

(a) In General.--Subtitle D of the Internal Revenue Code of
1986 is amended by adding at the end the following new
chapter:

``CHAPTER 50A--SELECTED DRUGS

``Sec. 5000D. Selected drugs during noncompliance periods.

``SEC. 5000D. SELECTED DRUGS DURING NONCOMPLIANCE PERIODS.

``(a) In General.--There is hereby imposed on the sale by
the manufacturer, producer, or importer of any selected drug
during a day described in subsection (b) a tax in an amount
such that the applicable percentage is equal to the ratio
of--
``(1) such tax, divided by
``(2) the sum of such tax and the price for which so sold.
``(b) Noncompliance Periods.--A day is described in this
subsection with respect to a selected drug if it is a day
during one of the following periods:
``(1) The period beginning on the March 1st (or, in the
case of initial price applicability year 2026, the October
2nd) immediately following the selected drug publication date
and ending on the first date during which the manufacturer of
the drug has in place an agreement described in subsection
(a) of section 1193 of the Social Security Act with respect
to such drug.
``(2) The period beginning on the November 2nd immediately
following the March 1st described in paragraph (1) (or, in
the case of initial price applicability year 2026, the August
2nd immediately following the October 2nd described in such
paragraph) and ending on the first date during which the
manufacturer of the drug and the Secretary of Health and
Human Services have agreed to a maximum fair price under such
agreement.
``(3) In the case of a selected drug with respect to which
the Secretary of Health and Human Services has specified a
renegotiation period under such agreement, the period
beginning on the first date after the last date of such
renegotiation period and ending on the first date during
which the manufacturer of the drug has agreed to a
renegotiated maximum fair price under such agreement.
``(4) With respect to information that is required to be
submitted to the Secretary of Health and Human Services under
such agreement, the period beginning on the date on which
such Secretary certifies that such information is overdue and
ending on the date that such information is so submitted.
``(c) Applicable Percentage.--For purposes of this section,
the term `applicable percentage' means--
``(1) in the case of sales of a selected drug during the
first 90 days described in subsection (b) with respect to
such drug, 65 percent,
``(2) in the case of sales of such drug during the 91st day
through the 180th day described in subsection (b) with
respect to such drug, 75 percent,
``(3) in the case of sales of such drug during the 181st
day through the 270th day described in subsection (b) with
respect to such drug, 85 percent, and
``(4) in the case of sales of such drug during any
subsequent day, 95 percent.
``(d) Selected Drug.--For purposes of this section--
``(1) In general.--The term `selected drug' means any
selected drug (within the meaning of section 1192(c) of the
Social Security Act) which is manufactured or produced in the
United States or entered into the United States for
consumption, use, or warehousing.
``(2) United states.--The term `United States' has the
meaning given such term by section 4612(a)(4).
``(3) Coordination with rules for possessions of the united
states.--Rules similar to the rules of paragraphs (2) and (4)
of section 4132(c) shall apply for purposes of this section.
``(e) Other Definitions.--For purposes of this section, the
terms `initial price applicability year', `selected drug
publication date', and `maximum fair price' have the meaning
given such terms in section 1191 of the Social Security Act.
``(f) Special Rules.--
``(1) Anti-abuse rule.--In the case of a sale which was
timed for the purpose of avoiding the tax imposed by this
section, the Secretary may treat such sale as occurring
during a day described in subsection (b).
``(2) Prohibition on administrative appeals.--Any tax
controversy with respect to the tax imposed by this section
shall not be referred to, or considered by, the Internal
Revenue Service Independent Office of Appeals.
``(g) Exports.--Rules similar to the rules of section
4662(e) (other than section 4662(e)(2)(A)(ii)(II)) shall
apply for purposes of this chapter.
``(h) Regulations.--The Secretary shall prescribe such
regulations and other guidance as may be necessary or
appropriate to carry out this section.''.
(b) No Deduction for Excise Tax Payments.--Section
275(a)(6) of the Internal Revenue Code of 1986 is amended by
inserting ``50A,'' after ``46,''.
(c) Civil Actions for Refund.--Section 7422 of the Internal
Revenue Code of 1986 is amended by inserting after subsection
(g) the following new subsection:
``(h) Special Rules for Excise Tax Imposed by Chapter
50A.--No suit or proceeding shall be maintained in any court
for the recovery of any tax imposed under section 5000D until
payment has been made by the taxpayer in an amount equal to
the full amount of the tax imposed under such section
(including any interest or penalties in connection with such
tax) with respect to any sales of a selected drug (as defined
in section 5000D(d)(1)) during the period for which a return
is required to be made with respect to such tax (as
determined under regulations prescribed by the Secretary).''.
(d) Clerical Amendment.--The table of chapters for subtitle
D of the Internal Revenue Code of 1986 is amended by adding
at the end the following new item:

``Chapter 50A--Selected Drugs''.

(e) Effective Date.--The amendments made by this section
shall apply to sales after the date of the enactment of this
Act.

SEC. 11004. FUNDING.

In addition to amounts otherwise available, there is
appropriated to the Centers for Medicare & Medicaid Services,
out of any money in the Treasury not otherwise appropriated,
$3,000,000,000 for fiscal year 2022, to remain available
until expended, to carry out the provisions of, including the
amendments made by, this part.

PART 2--PRESCRIPTION DRUG INFLATION REBATES

SEC. 11101. MEDICARE PART B REBATE BY MANUFACTURERS.

(a) In General.--Section 1847A of the Social Security Act
(42 U.S.C. 1395w-3a) is amended--
(1) by redesignating subsection (i) as subsection (j) and
by inserting after subsection (h) the following subsection:
``(i) Rebate by Manufacturers for Single Source Drugs and
Biologicals With Prices Increasing Faster Than Inflation.--
``(1) Requirements.--
``(A) Secretarial provision of information.--Not later than
6 months after the end of each calendar quarter beginning on
or after January 1, 2023, the Secretary shall, for each part
B rebatable drug, report to each manufacturer of such part B
rebatable drug the following for such calendar quarter:
``(i) Information on the total number of billing units of
the billing and payment code described in subparagraph (A)(i)
of paragraph (3) with respect to such drug and calendar
quarter.
``(ii) Information on the amount (if any) of the excess
average sales price increase described in subparagraph
(A)(ii) of such paragraph for such drug and calendar quarter.
``(iii) The rebate amount specified under such paragraph
for such part B rebatable drug and calendar quarter.
``(B) Manufacturer requirement.--For each calendar quarter
beginning on or after January 1, 2023, the manufacturer of a
part B rebatable drug shall, for such drug, not later than 30
days after the date of receipt from the Secretary of the
information described in subparagraph (A) for such calendar
quarter, provide to the Secretary a rebate that is equal to
the amount specified in paragraph (3) for such drug for such
calendar quarter.
``(C) Transition rule for reporting.--The Secretary may,
for each part B rebatable drug, delay the timeframe for
reporting the information described in subparagraph (A) for
calendar quarters beginning in 2023 and 2024 until not later
than September 30, 2025.
``(2) Part b rebatable drug defined.--
``(A) In general.--In this subsection, the term `part B
rebatable drug' means a single source drug or biological (as
defined in subparagraph (D) of subsection (c)(6)), including

[[Page S3935]]

a biosimilar biological product (as defined in subparagraph
(H) of such subsection) but excluding a qualifying biosimilar
biological product (as defined in subsection (b)(8)(B)(iii)),
that would be payable under this part if such drug were
furnished to an individual enrolled under this part, except
such term shall not include such a drug or biological--
``(i) if, as determined by the Secretary, the average total
allowed charges for such drug or biological under this part
for a year per individual that uses such a drug or biological
are less than, subject to subparagraph (B), $100; or
``(ii) that is a vaccine described in subparagraph (A) or
(B) of section 1861(s)(10).
``(B) Increase.--The dollar amount applied under
subparagraph (A)(i)--
``(i) for 2024, shall be the dollar amount specified under
such subparagraph for 2023, increased by the percentage
increase in the consumer price index for all urban consumers
(United States city average) for the 12-month period ending
with June of the previous year; and
``(ii) for a subsequent year, shall be the dollar amount
specified in this clause (or clause (i)) for the previous
year (without application of subparagraph (C)), increased by
the percentage increase in the consumer price index for all
urban consumers (United States city average) for the 12-month
period ending with June of the previous year.
``(C) Rounding.--Any dollar amount determined under
subparagraph (B) that is not a multiple of $10 shall be
rounded to the nearest multiple of $10.
``(3) Rebate amount.--
``(A) In general.--For purposes of paragraph (1), the
amount specified in this paragraph for a part B rebatable
drug assigned to a billing and payment code for a calendar
quarter is, subject to subparagraphs (B) and (G) and
paragraph (4), the estimated amount equal to the product of--
``(i) the total number of billing units determined under
subparagraph (B) for the billing and payment code of such
drug; and
``(ii) the amount (if any) by which--

``(I) the amount equal to--

``(aa) in the case of a part B rebatable drug described in
paragraph (1)(B) of section 1847A(b), 106 percent of the
amount determined under paragraph (4) of such section for
such drug during the calendar quarter; or
``(bb) in the case of a part B rebatable drug described in
paragraph (1)(C) of such section, the payment amount under
such paragraph for such drug during the calendar quarter;
exceeds

``(II) the inflation-adjusted payment amount determined
under subparagraph (C) for such part B rebatable drug during
the calendar quarter.

``(B) Total number of billing units.--For purposes of
subparagraph (A)(i), the total number of billing units with
respect to a part B rebatable drug is determined as follows:
``(i) Determine the total number of units equal to--

``(I) the total number of units, as reported under
subsection (c)(1)(B) for each National Drug Code of such drug
during the calendar quarter that is two calendar quarters
prior to the calendar quarter as described in subparagraph
(A), minus
``(II) the total number of units with respect to each
National Drug Code of such drug for which payment was made
under a State plan under title XIX (or waiver of such plan),
as reported by States under section 1927(b)(2)(A) for the
rebate period that is the same calendar quarter as described
in subclause (I).

``(ii) Convert the units determined under clause (i) to
billing units for the billing and payment code of such drug,
using a methodology similar to the methodology used under
this section, by dividing the units determined under clause
(i) for each National Drug Code of such drug by the billing
unit for the billing and payment code of such drug.
``(iii) Compute the sum of the billing units for each
National Drug Code of such drug in clause (ii).
``(C) Determination of inflation-adjusted payment amount.--
The inflation-adjusted payment amount determined under this
subparagraph for a part B rebatable drug for a calendar
quarter is--
``(i) the payment amount for the billing and payment code
for such drug in the payment amount benchmark quarter (as
defined in subparagraph (D)); increased by
``(ii) the percentage by which the rebate period CPI-U (as
defined in subparagraph (F)) for the calendar quarter exceeds
the benchmark period CPI-U (as defined in subparagraph (E)).
``(D) Payment amount benchmark quarter.--The term `payment
amount benchmark quarter' means the calendar quarter
beginning July 1, 2021.
``(E) Benchmark period cpi-u.--The term `benchmark period
CPI-U' means the consumer price index for all urban consumers
(United States city average) for January 2021.
``(F) Rebate period cpi-u.--The term `rebate period CPI-U'
means, with respect to a calendar quarter described in
subparagraph (C), the greater of the benchmark period CPI-U
and the consumer price index for all urban consumers (United
States city average) for the first month of the calendar
quarter that is two calendar quarters prior to such described
calendar quarter.
``(G) Reduction or waiver for shortages and severe supply
chain disruptions.--The Secretary shall reduce or waive the
amount under subparagraph (A) with respect to a part B
rebatable drug and a calendar quarter--
``(i) in the case of a part B rebatable drug that is
described as currently in shortage on the shortage list in
effect under section 506E of the Federal Food, Drug, and
Cosmetic Act at any point during the calendar quarter; or
``(ii) in the case of a biosimilar biological product, when
the Secretary determines there is a severe supply chain
disruption during the calendar quarter, such as that caused
by a natural disaster or other unique or unexpected event.
``(4) Special treatment of certain drugs and exemption.--
``(A) Subsequently approved drugs.--In the case of a part B
rebatable drug first approved or licensed by the Food and
Drug Administration after December 1, 2020, clause (i) of
paragraph (3)(C) shall be applied as if the term `payment
amount benchmark quarter' were defined under paragraph (3)(D)
as the third full calendar quarter after the day on which the
drug was first marketed and clause (ii) of paragraph (3)(C)
shall be applied as if the term `benchmark period CPI-U' were
defined under paragraph (3)(E) as if the reference to
`January 2021' under such paragraph were a reference to `the
first month of the first full calendar quarter after the day
on which the drug was first marketed'.
``(B) Timeline for provision of rebates for subsequently
approved drugs.--In the case of a part B rebatable drug first
approved or licensed by the Food and Drug Administration
after December 1, 2020, paragraph (1)(B) shall be applied as
if the reference to `January 1, 2023' under such paragraph
were a reference to `the later of the 6th full calendar
quarter after the day on which the drug was first marketed or
January 1, 2023'.
``(C) Selected drugs.--In the case of a part B rebatable
drug that is a selected drug (as defined in section 1192(c))
with respect to a price applicability period (as defined in
section 1191(b)(2)), in the case such drug is no longer
considered to be a selected drug under section 1192(c), for
each applicable period (as defined under subsection (g)(7))
beginning after the price applicability period with respect
to such drug, clause (i) of paragraph (3)(C) shall be applied
as if the term `payment amount benchmark quarter' were
defined under paragraph (3)(D) as the calendar quarter
beginning January 1 of the last year during such price
applicability period with respect to such selected drug and
clause (ii) of paragraph (3)(C) shall be applied as if the
term `benchmark period CPI-U' were defined under paragraph
(3)(E) as if the reference to `January 2021' under such
paragraph were a reference to `the July of the year preceding
such last year'.
``(5) Application to beneficiary coinsurance.--In the case
of a part B rebatable drug furnished on or after April 1,
2023, if the payment amount described in paragraph
(3)(A)(ii)(I) (or, in the case of a part B rebatable drug
that is a selected drug (as defined in section 1192(c)), the
payment amount described in subsection (b)(1)(B) for such
drug) for a calendar quarter exceeds the inflation adjusted
payment for such quarter--
``(A) in computing the amount of any coinsurance applicable
under this part to an individual to whom such drug is
furnished, the computation of such coinsurance shall be equal
to 20 percent of the inflation-adjusted payment amount
determined under paragraph (3)(C) for such part B rebatable
drug; and
``(B) the amount of such coinsurance for such calendar
quarter, as computed under subparagraph (A), shall be applied
as a percent, as determined by the Secretary, to the payment
amount that would otherwise apply under subparagraphs (B) or
(C) of subsection (b)(1).
``(6) Rebate deposits.--Amounts paid as rebates under
paragraph (1)(B) shall be deposited into the Federal
Supplementary Medical Insurance Trust Fund established under
section 1841.
``(7) Civil money penalty.--If a manufacturer of a part B
rebatable drug has failed to comply with the requirements
under paragraph (1)(B) for such drug for a calendar quarter,
the manufacturer shall be subject to, in accordance with a
process established by the Secretary pursuant to regulations,
a civil money penalty in an amount equal to at least 125
percent of the amount specified in paragraph (3) for such
drug for such calendar quarter. The provisions of section
1128A (other than subsections (a) (with respect to amounts of
penalties or additional assessments) and (b)) shall apply to
a civil money penalty under this paragraph in the same manner
as such provisions apply to a penalty or proceeding under
section 1128A(a).''; and
(2) in subsection (j), as redesignated by paragraph (1)--
(A) in paragraph (4), by striking at the end ``and'';
(B) in paragraph (5), by striking at the end the period and
inserting a semicolon; and
(C) by adding at the end the following new paragraphs:
``(6) the determination of units under subsection (i);
``(7) the determination of whether a drug is a part B
rebatable drug under subsection (i);
``(8) the calculation of the rebate amount under subsection
(i); and
``(9) the computation of coinsurance under subsection
(i)(5); and
``(10) the computation of amounts paid under section
1833(a)(1)(EE).''.

[[Page S3936]]

(b) Amounts Payable; Cost-Sharing.--Section 1833 of the
Social Security Act (42 U.S.C. 1395l) is amended--
(1) in subsection (a)(1)--
(A) in subparagraph (G), by inserting ``, subject to
subsection (i)(9),'' after ``the amounts paid'';
(B) in subparagraph (S), by striking ``with respect to''
and inserting ``subject to subparagraph (EE), with respect
to'';
(C) by striking ``and (DD)'' and inserting ``(DD)''; and
(D) by inserting before the semicolon at the end the
following: ``, and (EE) with respect to a part B rebatable
drug (as defined in paragraph (2) of section 1847A(i))
furnished on or after April 1, 2023, for which the payment
amount for a calendar quarter under paragraph (3)(A)(ii)(I)
of such section (or, in the case of a part B rebatable drug
that is a selected drug (as defined in section 1192(c) for
which, the payment amount described in section
1847A(b)(1)(B)) for such drug for such quarter exceeds the
inflation-adjusted payment under paragraph (3)(A)(ii)(II) of
such section for such quarter, the amounts paid shall be
equal to the percent of the payment amount under paragraph
(3)(A)(ii)(I) of such section or section 1847A(b)(1)(B), as
applicable, that equals the difference between (i) 100
percent, and (ii) the percent applied under section
1847A(i)(5)(B)'';
(2) in subsection (i), by adding at the end the following
new paragraph:
``(9) In the case of a part B rebatable drug (as defined in
paragraph (2) of section 1847A(i)) for which payment under
this subsection is not packaged into a payment for a service
furnished on or after April 1, 2023, under the revised
payment system under this subsection, in lieu of calculation
of coinsurance and the amount of payment otherwise applicable
under this subsection, the provisions of section 1847A(i)(5)
and paragraph (1)(EE) of subsection (a), shall, as determined
appropriate by the Secretary, apply under this subsection in
the same manner as such provisions of section 1847A(i)(5) and
subsection (a) apply under such section and subsection.'';
and
(3) in subsection (t)(8), by adding at the end the
following new subparagraph:
``(F) Part b rebatable drugs.--In the case of a part B
rebatable drug (as defined in paragraph (2) of section
1847A(i), except if such drug does not have a copayment
amount as a result of application of subparagraph (E)) for
which payment under this part is not packaged into a payment
for a covered OPD service (or group of services) furnished on
or after April 1, 2023, and the payment for such drug under
this subsection is the same as the amount for a calendar
quarter under paragraph (3)(A)(ii)(I) of section 1847A(i),
under the system under this subsection, in lieu of
calculation of the copayment amount and the amount of payment
otherwise applicable under this subsection (other than the
application of the limitation described in subparagraph (C)),
the provisions of section 1847A(i)(5) and paragraph (1)(EE)
of subsection (a), shall, as determined appropriate by the
Secretary, apply under this subsection in the same manner as
such provisions of section 1847A(i)(5) and subsection (a)
apply under such section and subsection.''.
(c) Conforming Amendments.--
(1) To part b asp calculation.--Section 1847A(c)(3) of the
Social Security Act (42 U.S.C. 1395w-3a(c)(3)) is amended by
inserting ``subsection (i) or'' before ``section 1927''.
(2) Excluding part b drug inflation rebate from best
price.--Section 1927(c)(1)(C)(ii)(I) of the Social Security
Act (42 U.S.C. 1396r-8(c)(1)(C)(ii)(I)) is amended by
inserting ``or section 1847A(i)'' after ``this section''.
(3) Coordination with medicaid rebate information
disclosure.--Section 1927(b)(3)(D)(i) of the Social Security
Act (42 U.S.C. 1396r-8(b)(3)(D)(i)) is amended by inserting
``and the rebate'' after ``the payment amount''.
(4) Excluding part b drug inflation rebates from average
manufacturer price.--Section 1927(k)(1)(B)(i) of the Social
Security Act (42 U.S.C. 1396r-8(k)(1)(B)(i)), as amended by
section 11001(b)(3), is amended--
(A) in subclause (V), by striking ``and'' at the end;
(B) in subclause (VI), by striking the period at the end
and inserting a semicolon; and
(C) by adding at the end the following new subclause:

``(VII) rebates paid by manufacturers under section
1847A(i); and''.

(d) Funding.--In addition to amounts otherwise available,
there are appropriated to the Centers for Medicare & Medicaid
Services, out of any money in the Treasury not otherwise
appropriated, $80,000,000 for fiscal year 2022, including
$12,500,000 to carry out the provisions of, including the
amendments made by, this section in fiscal year 2022, and
$7,500,000 to carry out the provisions of, including the
amendments made by, this section in each of fiscal years 2023
through 2031, to remain available until expended.

SEC. 11102. MEDICARE PART D REBATE BY MANUFACTURERS.

(a) In General.--Part D of title XVIII of the Social
Security Act is amended by inserting after section 1860D-14A
(42 U.S.C. 1395w-114a) the following new section:

``SEC. 1860D-14B. MANUFACTURER REBATE FOR CERTAIN DRUGS WITH
PRICES INCREASING FASTER THAN INFLATION.

``(a) Requirements.--
``(1) Secretarial provision of information.--Not later than
9 months after the end of each applicable period (as defined
in subsection (g)(7)), subject to paragraph (3), the
Secretary shall, for each part D rebatable drug, report to
each manufacturer of such part D rebatable drug the following
for such period:
``(A) The amount (if any) of the excess annual manufacturer
price increase described in subsection (b)(1)(A)(ii) for each
dosage form and strength with respect to such drug and
period.
``(B) The rebate amount specified under subsection (b) for
each dosage form and strength with respect to such drug and
period.
``(2) Manufacturer requirements.--For each applicable
period, the manufacturer of a part D rebatable drug, for each
dosage form and strength with respect to such drug, not later
than 30 days after the date of receipt from the Secretary of
the information described in paragraph (1) for such period,
shall provide to the Secretary a rebate that is equal to the
amount specified in subsection (b) for such dosage form and
strength with respect to such drug for such period.
``(3) Transition rule for reporting.--The Secretary may,
for each rebatable covered part D drug, delay the timeframe
for reporting the information and rebate amount described in
subparagraphs (A) and (B) of such paragraph for the
applicable periods beginning October 1, 2022, and October 1,
2023, until not later than December 31, 2025.
``(b) Rebate Amount.--
``(1) In general.--
``(A) Calculation.--For purposes of this section, the
amount specified in this subsection for a dosage form and
strength with respect to a part D rebatable drug and
applicable period is, subject to subparagraph (C), paragraph
(5)(B), and paragraph (6), the estimated amount equal to the
product of--
``(i) subject to subparagraph (B) of this paragraph, the
total number of units that are used to calculate the average
manufacturer price of such dosage form and strength with
respect to such part D rebatable drug, as reported by the
manufacturer of such drug under section 1927 for each month,
with respect to such period; and
``(ii) the amount (if any) by which--

``(I) the annual manufacturer price (as determined in
paragraph (2)) paid for such dosage form and strength with
respect to such part D rebatable drug for the period; exceeds
``(II) the inflation-adjusted payment amount determined
under paragraph (3) for such dosage form and strength with
respect to such part D rebatable drug for the period.

``(B) Excluded units.--For purposes of subparagraph (A)(i),
the Secretary shall exclude from the total number of units
for a dosage form and strength with respect to a part D
rebatable drug, with respect to an applicable period, the
following:
``(i) Units of each dosage form and strength of such part D
rebatable drug for which payment was made under a State plan
under title XIX (or waiver of such plan), as reported by
States under section 1927(b)(2)(A).
``(ii) Units of each dosage form and strength of such part
D rebatable drug for which a rebate is paid under section
1847A(i).
``(C) Reduction or waiver for shortages and severe supply
chain disruptions.--The Secretary shall reduce or waive the
amount under subparagraph (A) with respect to a part D
rebatable drug and an applicable period--
``(i) in the case of a part D rebatable drug that is
described as currently in shortage on the shortage list in
effect under section 506E of the Federal Food, Drug, and
Cosmetic Act at any point during the applicable period;
``(ii) in the case of a generic part D rebatable drug
(described in subsection (g)(1)(C)(ii)) or a biosimilar
(defined as a biological product licensed under section
351(k) of the Public Health Service Act), when the Secretary
determines there is a severe supply chain disruption during
the applicable period, such as that caused by a natural
disaster or other unique or unexpected event; and
``(iii) in the case of a generic Part D rebatable drug (as
so described), if the Secretary determines that without such
reduction or waiver, the drug is likely to be described as in
shortage on such shortage list during a subsequent applicable
period.
``(2) Determination of annual manufacturer price.--The
annual manufacturer price determined under this paragraph for
a dosage form and strength, with respect to a part D
rebatable drug and an applicable period, is the sum of the
products of--
``(A) the average manufacturer price (as defined in
subsection (g)(6)) of such dosage form and strength, as
calculated for a unit of such drug, with respect to each of
the calendar quarters of such period; and
``(B) the ratio of--
``(i) the total number of units of such dosage form and
strength reported under section 1927 with respect to each
such calendar quarter of such period; to
``(ii) the total number of units of such dosage form and
strength reported under section 1927 with respect to such
period, as determined by the Secretary.
``(3) Determination of inflation-adjusted payment amount.--
The inflation-adjusted payment amount determined under this
paragraph for a dosage form and strength with respect to a
part D rebatable drug for an applicable period, subject to
paragraph (5), is--
``(A) the benchmark period manufacturer price determined
under paragraph (4) for

[[Page S3937]]

such dosage form and strength with respect to such drug and
period; increased by
``(B) the percentage by which the applicable period CPI-U
(as defined in subsection (g)(5)) for the period exceeds the
benchmark period CPI-U (as defined in subsection (g)(4)).
``(4) Determination of benchmark period manufacturer
price.--The benchmark period manufacturer price determined
under this paragraph for a dosage form and strength, with
respect to a part D rebatable drug and an applicable period,
is the sum of the products of--
``(A) the average manufacturer price (as defined in
subsection (g)(6)) of such dosage form and strength, as
calculated for a unit of such drug, with respect to each of
the calendar quarters of the payment amount benchmark period
(as defined in subsection (g)(3)); and
``(B) the ratio of--
``(i) the total number of units reported under section 1927
of such dosage form and strength with respect to each such
calendar quarter of such payment amount benchmark period; to
``(ii) the total number of units reported under section
1927 of such dosage form and strength with respect to such
payment amount benchmark period.
``(5) Special treatment of certain drugs and exemption.--
``(A) Subsequently approved drugs.--In the case of a part D
rebatable drug first approved or licensed by the Food and
Drug Administration after October 1, 2021, subparagraphs (A)
and (B) of paragraph (4) shall be applied as if the term
`payment amount benchmark period' were defined under
subsection (g)(3) as the first calendar year beginning after
the day on which the drug was first marketed and subparagraph
(B) of paragraph (3) shall be applied as if the term
`benchmark period CPI-U' were defined under subsection (g)(4)
as if the reference to `January 2021' under such subsection
were a reference to `January of the first year beginning
after the date on which the drug was first marketed'.
``(B) Treatment of new formulations.--
``(i) In general.--In the case of a part D rebatable drug
that is a line extension of a part D rebatable drug that is
an oral solid dosage form, the Secretary shall establish a
formula for determining the rebate amount under paragraph (1)
and the inflation adjusted payment amount under paragraph (3)
with respect to such part D rebatable drug and an applicable
period, consistent with the formula applied under subsection
(c)(2)(C) of section 1927 for determining a rebate obligation
for a rebate period under such section.
``(ii) Line extension defined.--In this subparagraph, the
term `line extension' means, with respect to a part D
rebatable drug, a new formulation of the drug, such as an
extended release formulation, but does not include an abuse-
deterrent formulation of the drug (as determined by the
Secretary), regardless of whether such abuse-deterrent
formulation is an extended release formulation.
``(C) Selected drugs.--In the case of a part D rebatable
drug that is a selected drug (as defined in section 1192(c))
with respect to a price applicability period (as defined in
section 1191(b)(2)), in the case such drug is no longer
considered to be a selected drug under section 1192(c), for
each applicable period (as defined under subsection (g)(7))
beginning after the price applicability period with respect
to such drug, subparagraphs (A) and (B) of paragraph (4)
shall be applied as if the term `payment amount benchmark
period' were defined under subsection (g)(3) as the last year
beginning during such price applicability period with respect
to such selected drug and subparagraph (B) of paragraph (3)
shall be applied as if the term `benchmark period CPI-U' were
defined under subsection (g)(4) as if the reference to
`January 2021' under such subsection were a reference to
`January of the last year beginning during such price
applicability period with respect to such drug'.
``(6) Reconciliation in case of revised amp reports.--The
Secretary shall provide for a method and process under which,
in the case of a manufacturer of a part D rebatable drug that
submits revisions to information submitted under section 1927
by the manufacturer with respect to such drug, the Secretary
determines, pursuant to such revisions, adjustments, if any,
to the calculation of the amount specified in this subsection
for a dosage form and strength with respect to such part D
rebatable drug and an applicable period and reconciles any
overpayments or underpayments in amounts paid as rebates
under this subsection. Any identified underpayment shall be
rectified by the manufacturer not later than 30 days after
the date of receipt from the Secretary of information on such
underpayment.
``(c) Rebate Deposits.--Amounts paid as rebates under
subsection (b) shall be deposited into the Medicare
Prescription Drug Account in the Federal Supplementary
Medical Insurance Trust Fund established under section 1841.
``(d) Information.--For purposes of carrying out this
section, the Secretary shall use information submitted by
manufacturers under section 1927(b)(3) and information
submitted by States under section 1927(b)(2)(A).
``(e) Civil Money Penalty.--If a manufacturer of a part D
rebatable drug has failed to comply with the requirement
under subsection (a)(2) with respect to such drug for an
applicable period, the manufacturer shall be subject to, in
accordance with a process established by the Secretary
pursuant to regulations, a civil money penalty in an amount
equal to 125 percent of the amount specified in subsection
(b) for such drug for such period. The provisions of section
1128A (other than subsections (a) (with respect to amounts of
penalties or additional assessments) and (b)) shall apply to
a civil money penalty under this subsection in the same
manner as such provisions apply to a penalty or proceeding
under section 1128A(a).
``(f) No Administrative or Judicial Review.--There shall be
no administrative or judicial review of the following:
``(1) The determination of units under this section.
``(2) The determination of whether a drug is a part D
rebatable drug under this section.
``(3) The calculation of the rebate amount under this
section.
``(g) Definitions.--In this section:
``(1) Part d rebatable drug.--
``(A) In general.--Except as provided in subparagraph (B),
the term `part D rebatable drug' means, with respect to an
applicable period, a drug or biological described in
subparagraph (C) that would (without application of this
section) be a covered part D drug (as such term is defined
under section 1860D-2(e)).
``(B) Exclusion.--
``(i) In general.--Such term shall, with respect to an
applicable period, not include a drug or biological if the
average annual total cost under this part for such period per
individual who uses such a drug or biological, as determined
by the Secretary, is less than, subject to clause (ii), $100,
as determined by the Secretary using the most recent data
available or, if data is not available, as estimated by the
Secretary.
``(ii) Increase.--The dollar amount applied under clause
(i)--

``(I) for the applicable period beginning October 1, 2023,
shall be the dollar amount specified under such clause for
the applicable period beginning October 1, 2022, increased by
the percentage increase in the consumer price index for all
urban consumers (United States city average) for the 12-month
period beginning with October of 2023; and
``(II) for a subsequent applicable period, shall be the
dollar amount specified in this clause for the previous
applicable period, increased by the percentage increase in
the consumer price index for all urban consumers (United
States city average) for the 12-month period beginning with
October of the previous period.

Any dollar amount specified under this clause that is not a
multiple of $10 shall be rounded to the nearest multiple of
$10.
``(C) Drug or biological described.--A drug or biological
described in this subparagraph is a drug or biological that,
as of the first day of the applicable period involved, is--
``(i) a drug approved under a new drug application under
section 505(c) of the Federal Food, Drug, and Cosmetic Act;
``(ii) a drug approved under an abbreviated new drug
application under section 505(j) of the Federal Food, Drug,
and Cosmetic Act, in the case where--

``(I) the reference listed drug approved under section
505(c) of the Federal Food, Drug, and Cosmetic Act, including
any `authorized generic drug' (as that term is defined in
section 505(t)(3) of the Federal Food, Drug, and Cosmetic
Act), is not being marketed, as identified in the Food and
Drug Administration's National Drug Code Directory;
``(II) there is no other drug approved under section 505(j)
of the Federal Food, Drug, and Cosmetic Act that is rated as
therapeutically equivalent (under the Food and Drug
Administration's most recent publication of `Approved Drug
Products with Therapeutic Equivalence Evaluations') and that
is being marketed, as identified in the Food and Drug
Administration's National Drug Code Directory;
``(III) the manufacturer is not a `first applicant' during
the `180-day exclusivity period', as those terms are defined
in section 505(j)(5)(B)(iv) of the Federal Food, Drug, and
Cosmetic Act; and
``(IV) the manufacturer is not a `first approved applicant'
for a competitive generic therapy, as that term is defined in
section 505(j)(5)(B)(v) of the Federal Food, Drug, and
Cosmetic Act; or

``(iii) a biological licensed under section 351 of the
Public Health Service Act.
``(2) Unit.--The term `unit' means, with respect to a part
D rebatable drug, the lowest dispensable amount (such as a
capsule or tablet, milligram of molecules, or grams) of the
part D rebatable drug, as reported under section 1927.
``(3) Payment amount benchmark period.--The term `payment
amount benchmark period' means the period beginning January
1, 2021, and ending in the month immediately prior to October
1, 2021.
``(4) Benchmark period cpi-u.--The term `benchmark period
CPI-U' means the consumer price index for all urban consumers
(United States city average) for January 2021.
``(5) Applicable period cpi-u.--The term `applicable period
CPI-U' means, with respect to an applicable period, the
consumer price index for all urban consumers (United States
city average) for the first month of such applicable period.
``(6) Average manufacturer price.--The term `average
manufacturer price' has the meaning, with respect to a part D
rebatable drug of a manufacturer, given such term in section
1927(k)(1), with respect to a covered outpatient drug of a
manufacturer for a rebate period under section 1927.

[[Page S3938]]

``(7) Applicable period.--The term `applicable period'
means a 12-month period beginning with October 1 of a year
(beginning with October 1, 2022).
``(h) Implementation for 2022, 2023, and 2024.--The
Secretary shall implement this section for 2022, 2023, and
2024 by program instruction or other forms of program
guidance.''.
(b) Conforming Amendments.--
(1) To part b asp calculation.--Section 1847A(c)(3) of the
Social Security Act (42 U.S.C. 1395w-3a(c)(3)), as amended by
section 11101(c)(1), is amended by striking ``subsection (i)
or section 1927'' and inserting ``subsection (i), section
1927, or section 1860D-14B''.
(2) Excluding part d drug inflation rebate from best
price.--Section 1927(c)(1)(C)(ii)(I) of the Social Security
Act (42 U.S.C. 1396r-8(c)(1)(C)(ii)(I)), as amended by
section 11101(c)(2), is amended by striking ``or section
1847A(i)'' and inserting ``, section 1847A(i), or section
1860D-14B''.
(3) Coordination with medicaid rebate information
disclosure.--Section 1927(b)(3)(D)(i) of the Social Security
Act (42 U.S.C. 1396r-8(b)(3)(D)(i)), as amended by section
11101(c)(3), is amended by striking ``or to carry out section
1847B'' and inserting ``or to carry out section 1847B or
section 1860D-14B''.
(4) Excluding part d drug inflation rebates from average
manufacturer price.--Section 1927(k)(1)(B)(i) of the Social
Security Act (42 U.S.C. 1396r-8(k)(1)(B)(i)), as amended by
section 11001(b)(3) and section 11101(c)(4), is amended by
adding at the end the following new subclause:
(A) in subclause (VI), by striking ``and'' at the end;
(B) in subclause (VII), by striking the period at the end
and inserting a semicolon; and
(C) by adding at the end the following new subclause:

``(VIII) rebates paid by manufacturers under section 1860D-
14B.''.

(c) Funding.--In addition to amounts otherwise available,
there are appropriated to the Centers for Medicare & Medicaid
Services, out of any money in the Treasury not otherwise
appropriated, $80,000,000 for fiscal year 2022, including
$12,500,000 to carry out the provisions of, including the
amendments made by, this section in fiscal year 2022, and
$7,500,000 to carry out the provisions of, including the
amendments made by, this section in each of fiscal years 2023
through 2031, to remain available until expended.

PART 3--PART D IMPROVEMENTS AND MAXIMUM OUT-OF-POCKET CAP FOR MEDICARE
BENEFICIARIES

SEC. 11201. MEDICARE PART D BENEFIT REDESIGN.

(a) Benefit Structure Redesign.--Section 1860D-2(b) of the
Social Security Act (42 U.S.C. 1395w-102(b)) is amended--
(1) in paragraph (2)--
(A) in subparagraph (A), in the matter preceding clause
(i), by inserting ``for a year preceding 2025 and for costs
above the annual deductible specified in paragraph (1) and up
to the annual out-of-pocket threshold specified in paragraph
(4)(B) for 2025 and each subsequent year'' after ``paragraph
(3)'';
(B) in subparagraph (C)--
(i) in clause (i), in the matter preceding subclause (I),
by inserting ``for a year preceding 2025,'' after ``paragraph
(4),''; and
(ii) in clause (ii)(III), by striking ``and each subsequent
year'' and inserting ``through 2024''; and
(C) in subparagraph (D)--
(i) in clause (i)--

(I) in the matter preceding subclause (I), by inserting
``for a year preceding 2025,'' after ``paragraph (4),''; and
(II) in subclause (I)(bb), by striking ``a year after
2018'' and inserting ``each of years 2019 through 2024''; and

(ii) in clause (ii)(V), by striking ``2019 and each
subsequent year'' and inserting ``each of years 2019 through
2024'';
(2) in paragraph (3)(A)--
(A) in the matter preceding clause (i), by inserting ``for
a year preceding 2025,'' after ``and (4),''; and
(B) in clause (ii), by striking ``for a subsequent year''
and inserting ``for each of years 2007 through 2024''; and
(3) in paragraph (4)--
(A) in subparagraph (A)--
(i) in clause (i)--

(I) by redesignating subclauses (I) and (II) as items (aa)
and (bb), respectively, and moving the margin of each such
redesignated item 2 ems to the right;
(II) in the matter preceding item (aa), as redesignated by
subclause (I), by striking ``is equal to the greater of--''
and inserting ``is equal to--
``(I) for a year preceding 2024, the greater of--'';
(III) by striking the period at the end of item (bb), as
redesignated by subclause (I), and inserting ``; and''; and
(IV) by adding at the end the following:
``(II) for 2024 and each succeeding year, $0.''; and

(ii) in clause (ii)--

(I) by striking ``clause (i)(I)'' and inserting ``clause
(i)(I)(aa)''; and
(II) by adding at the end the following new sentence: ``The
Secretary shall continue to calculate the dollar amounts
specified in clause (i)(I)(aa), including with the adjustment
under this clause, after 2023 for purposes of section 1860D-
14(a)(1)(D)(iii).'';

(B) in subparagraph (B)--
(i) in clause (i)--

(I) in subclause (V), by striking ``or'' at the end;
(II) in subclause (VI)--

(aa) by striking ``for a subsequent year'' and inserting
``for each of years 2021 through 2024''; and
(bb) by striking the period at the end and inserting a
semicolon; and

(III) by adding at the end the following new subclauses:
``(VII) for 2025, is equal to $2,000; or
``(VIII) for a subsequent year, is equal to the amount
specified in this subparagraph for the previous year,
increased by the annual percentage increase described in
paragraph (6) for the year involved.''; and

(ii) in clause (ii), by striking ``clause (i)(II)'' and
inserting ``clause (i)'';
(C) in subparagraph (C)--
(i) in clause (i), by striking ``and for amounts'' and
inserting ``and, for a year preceding 2025, for amounts'';
and
(ii) in clause (iii)--

(I) by redesignating subclauses (I) through (IV) as items
(aa) through (dd) and indenting appropriately;
(II) by striking ``if such costs are borne or paid'' and
inserting ``if such costs--
``(I) are borne or paid--''; and
(III) in item (dd), by striking the period at the end and
inserting ``; or''; and
(IV) by adding at the end the following new subclause:
``(II) for 2025 and subsequent years, are reimbursed
through insurance, a group health plan, or certain other
third party payment arrangements, but not including the
coverage provided by a prescription drug plan or an MA-PD
plan that is basic prescription drug coverage (as defined in
subsection (a)(3)) or any payments by a manufacturer under
the manufacturer discount program under section 1860D-14C.'';
and

(D) in subparagraph (E), by striking ``In applying'' and
inserting ``For each of years 2011 through 2024, in
applying''.
(b) Reinsurance Payment Amount.--Section 1860D-15(b) of the
Social Security Act (42 U.S.C. 1395w-115(b)) is amended--
(1) in paragraph (1)--
(A) by striking ``equal to 80 percent'' and inserting
``equal to--
``(A) for a year preceding 2025, 80 percent'';
(B) in subparagraph (A), as added by subparagraph (A), by
striking the period at the end and inserting ``; and''; and
(C) by adding at the end the following new subparagraph:
``(B) for 2025 and each subsequent year, the sum of--
``(i) with respect to applicable drugs (as defined in
section 1860D-14C(g)(2)), an amount equal to 20 percent of
such allowable reinsurance costs attributable to that portion
of gross covered prescription drug costs as specified in
paragraph (3) incurred in the coverage year after such
individual has incurred costs that exceed the annual out-of-
pocket threshold specified in section 1860D-2(b)(4)(B); and
``(ii) with respect to covered part D drugs that are not
applicable drugs (as so defined), an amount equal to 40
percent of such allowable reinsurance costs attributable to
that portion of gross covered prescription drug costs as
specified in paragraph (3) incurred in the coverage year
after such individual has incurred costs that exceed the
annual out-of-pocket threshold specified in section 1860D-
2(b)(4)(B).'';
(2) in paragraph (2)--
(A) by striking ``COSTS.--For purposes'' and inserting
``Costs.--
``(A) In general.--Subject to subparagraph (B), for
purposes''; and
(B) by adding at the end the following new subparagraph:
``(B) Inclusion of manufacturer discounts on applicable
drugs.--For purposes of applying subparagraph (A), the term
`allowable reinsurance costs' shall include the portion of
the negotiated price (as defined in section 1860D-14C(g)(6))
of an applicable drug (as defined in section 1860D-14C(g)(2))
that was paid by a manufacturer under the manufacturer
discount program under section 1860D-14C.''; and
(3) in paragraph (3)--
(A) in the first sentence, by striking ``For purposes'' and
inserting ``Subject to paragraph (2)(B), for purposes''; and
(B) in the second sentence, by inserting ``(or, with
respect to 2025 and subsequent years, in the case of an
applicable drug, as defined in section 1860D-14C(g)(2), by a
manufacturer)'' after ``by the individual or under the
plan''.
(c) Manufacturer Discount Program.--
(1) In general.--Part D of title XVIII of the Social
Security Act (42 U.S.C. 1395w-101 through 42 U.S.C. 1395w-
153), as amended by section 11102, is amended by inserting
after section 1860D-14B the following new sections:

``SEC. 1860D-14C. MANUFACTURER DISCOUNT PROGRAM.

``(a) Establishment.--The Secretary shall establish a
manufacturer discount program (in this section referred to as
the `program'). Under the program, the Secretary shall enter
into agreements described in subsection (b) with
manufacturers and provide for the performance of the duties
described in subsection (c).
``(b) Terms of Agreement.--
``(1) In general.--
``(A) Agreement.--An agreement under this section shall
require the manufacturer to provide, in accordance with this
section, discounted prices for applicable drugs of the
manufacturer that are dispensed to applicable beneficiaries
on or after January 1, 2025.

[[Page S3939]]

``(B) Clarification.--Nothing in this section shall be
construed as affecting--
``(i) the application of a coinsurance of 25 percent of the
negotiated price, as applied under paragraph (2)(A) of
section 1860D-2(b), for costs described in such paragraph; or
``(ii) the application of the copayment amount described in
paragraph (4)(A) of such section, with respect to costs
described in such paragraph.
``(C) Timing of agreement.--
``(i) Special rule for 2025.--In order for an agreement
with a manufacturer to be in effect under this section with
respect to the period beginning on January 1, 2025, and
ending on December 31, 2025, the manufacturer shall enter
into such agreement not later than March 1, 2024.
``(ii) 2026 and subsequent years.--In order for an
agreement with a manufacturer to be in effect under this
section with respect to plan year 2026 or a subsequent plan
year, the manufacturer shall enter into such agreement not
later than a calendar quarter or semi-annual deadline
established by the Secretary.
``(2) Provision of appropriate data.--Each manufacturer
with an agreement in effect under this section shall collect
and have available appropriate data, as determined by the
Secretary, to ensure that it can demonstrate to the Secretary
compliance with the requirements under the program.
``(3) Compliance with requirements for administration of
program.--Each manufacturer with an agreement in effect under
this section shall comply with requirements imposed by the
Secretary, as applicable, for purposes of administering the
program, including any determination under subparagraph (A)
of subsection (c)(1) or procedures established under such
subsection (c)(1).
``(4) Length of agreement.--
``(A) In general.--An agreement under this section shall be
effective for an initial period of not less than 12 months
and shall be automatically renewed for a period of not less
than 1 year unless terminated under subparagraph (B).
``(B) Termination.--
``(i) By the secretary.--The Secretary shall provide for
termination of an agreement under this section for a knowing
and willful violation of the requirements of the agreement or
other good cause shown. Such termination shall not be
effective earlier than 30 days after the date of notice to
the manufacturer of such termination. The Secretary shall
provide, upon request, a manufacturer with a hearing
concerning such a termination, and such hearing shall take
place prior to the effective date of the termination with
sufficient time for such effective date to be repealed if the
Secretary determines appropriate.
``(ii) By a manufacturer.--A manufacturer may terminate an
agreement under this section for any reason. Any such
termination shall be effective, with respect to a plan year--

``(I) if the termination occurs before January 31 of a plan
year, as of the day after the end of the plan year; and
``(II) if the termination occurs on or after January 31 of
a plan year, as of the day after the end of the succeeding
plan year.

``(iii) Effectiveness of termination.--Any termination
under this subparagraph shall not affect discounts for
applicable drugs of the manufacturer that are due under the
agreement before the effective date of its termination.
``(5) Effective date of agreement.--An agreement under this
section shall take effect at the start of a calendar quarter
or another date specified by the Secretary.
``(c) Duties Described.--The duties described in this
subsection are the following:
``(1) Administration of program.--Administering the
program, including--
``(A) the determination of the amount of the discounted
price of an applicable drug of a manufacturer;
``(B) the establishment of procedures to ensure that, not
later than the applicable number of calendar days after the
dispensing of an applicable drug by a pharmacy or mail order
service, the pharmacy or mail order service is reimbursed for
an amount equal to the difference between--
``(i) the negotiated price of the applicable drug; and
``(ii) the discounted price of the applicable drug;
``(C) the establishment of procedures to ensure that the
discounted price for an applicable drug under this section is
applied before any coverage or financial assistance under
other health benefit plans or programs that provide coverage
or financial assistance for the purchase or provision of
prescription drug coverage on behalf of applicable
beneficiaries as specified by the Secretary; and
``(D) providing a reasonable dispute resolution mechanism
to resolve disagreements between manufacturers, prescription
drug plans and MA-PD plans, and the Secretary.
``(2) Monitoring compliance.--The Secretary shall monitor
compliance by a manufacturer with the terms of an agreement
under this section.
``(3) Collection of data from prescription drug plans and
ma-pd plans.--The Secretary may collect appropriate data from
prescription drug plans and MA-PD plans in a timeframe that
allows for discounted prices to be provided for applicable
drugs under this section.
``(d) Administration.--
``(1) In general.--Subject to paragraph (2), the Secretary
shall provide for the implementation of this section,
including the performance of the duties described in
subsection (c).
``(2) Limitation.--In providing for the implementation of
this section, the Secretary shall not receive or distribute
any funds of a manufacturer under the program.
``(e) Enforcement.--
``(1) Audits.--Each manufacturer with an agreement in
effect under this section shall be subject to periodic audit
by the Secretary.
``(2) Civil money penalty.--
``(A) In general.--A manufacturer that fails to provide
discounted prices for applicable drugs of the manufacturer
dispensed to applicable beneficiaries in accordance with such
agreement shall be subject to a civil money penalty for each
such failure in an amount the Secretary determines is equal
to the sum of--
``(i) the amount that the manufacturer would have paid with
respect to such discounts under the agreement, which will
then be used to pay the discounts which the manufacturer had
failed to provide; and
``(ii) 25 percent of such amount.
``(B) Application.--The provisions of section 1128A (other
than subsections (a) and (b)) shall apply to a civil money
penalty under this paragraph in the same manner as such
provisions apply to a penalty or proceeding under section
1128A(a).
``(f) Clarification Regarding Availability of Other Covered
Part D Drugs.--Nothing in this section shall prevent an
applicable beneficiary from purchasing a covered part D drug
that is not an applicable drug (including a generic drug or a
drug that is not on the formulary of the prescription drug
plan or MA-PD plan that the applicable beneficiary is
enrolled in).
``(g) Definitions.--In this section:
``(1) Applicable beneficiary.--The term `applicable
beneficiary' means an individual who, on the date of
dispensing a covered part D drug--
``(A) is enrolled in a prescription drug plan or an MA-PD
plan;
``(B) is not enrolled in a qualified retiree prescription
drug plan; and
``(C) has incurred costs, as determined in accordance with
section 1860D-2(b)(4)(C), for covered part D drugs in the
year that exceed the annual deductible specified in section
1860D-2(b)(1).
``(2) Applicable drug.--The term `applicable drug', with
respect to an applicable beneficiary--
``(A) means a covered part D drug--
``(i) approved under a new drug application under section
505(c) of the Federal Food, Drug, and Cosmetic Act or, in the
case of a biologic product, licensed under section 351 of the
Public Health Service Act; and
``(ii)(I) if the PDP sponsor of the prescription drug plan
or the MA organization offering the MA-PD plan uses a
formulary, which is on the formulary of the prescription drug
plan or MA-PD plan that the applicable beneficiary is
enrolled in;
``(II) if the PDP sponsor of the prescription drug plan or
the MA organization offering the MA-PD plan does not use a
formulary, for which benefits are available under the
prescription drug plan or MA-PD plan that the applicable
beneficiary is enrolled in; or
``(III) is provided through an exception or appeal; and
``(B) does not include a selected drug (as referred to
under section 1192(c)) during a price applicability period
(as defined in section 1191(b)(2)) with respect to such drug.
``(3) Applicable number of calendar days.--The term
`applicable number of calendar days' means--
``(A) with respect to claims for reimbursement submitted
electronically, 14 days; and
``(B) with respect to claims for reimbursement submitted
otherwise, 30 days.
``(4) Discounted price.--
``(A) In general.--The term `discounted price' means,
subject to subparagraphs (B) and (C), with respect to an
applicable drug of a manufacturer dispensed during a year to
an applicable beneficiary--
``(i) who has not incurred costs, as determined in
accordance with section 1860D-2(b)(4)(C), for covered part D
drugs in the year that are equal to or exceed the annual out-
of-pocket threshold specified in section 1860D-2(b)(4)(B)(i)
for the year, 90 percent of the negotiated price of such
drug; and
``(ii) who has incurred such costs, as so determined, in
the year that are equal to or exceed such threshold for the
year, 80 percent of the negotiated price of such drug.
``(B) Phase-in for certain drugs dispensed to lis
beneficiaries.--
``(i) In general.--In the case of an applicable drug of a
specified manufacturer (as defined in clause (ii)) that is
marketed as of the date of enactment of this subparagraph and
dispensed for an applicable beneficiary who is a subsidy
eligible individual (as defined in section 1860D-14(a)(3)),
the term `discounted price' means the specified LIS percent
(as defined in clause (iii)) of the negotiated price of the
applicable drug of the manufacturer.
``(ii) Specified manufacturer.--

``(I) In general.--In this subparagraph, subject to
subclause (II), the term `specified manufacturer' means a
manufacturer of an applicable drug for which, in 2021--

``(aa) the manufacturer had a coverage gap discount
agreement under section 1860D-14A;
``(bb) the total expenditures for all of the specified
drugs of the manufacturer covered by such agreement or
agreements for such year and covered under this part during
such year represented less than 1.0 percent of the

[[Page S3940]]

total expenditures under this part for all covered Part D
drugs during such year; and
``(cc) the total expenditures for all of the specified
drugs of the manufacturer that are single source drugs and
biological products covered under part B during such year
represented less than 1.0 percent of the total expenditures
under part B for all drugs or biological products covered
under such part during such year.

``(II) Specified drugs.--

``(aa) In general.--For purposes of this clause, the term
`specified drug' means, with respect to a specified
manufacturer, for 2021, an applicable drug that is produced,
prepared, propagated, compounded, converted, or processed by
the manufacturer.
``(bb) Aggregation rule.--All persons treated as a single
employer under subsection (a) or (b) of section 52 of the
Internal Revenue Code of 1986 shall be treated as one
manufacturer for purposes of this subparagraph. For purposes
of making a determination pursuant to the previous sentence,
an agreement under this section shall require that a
manufacturer provide and attest to such information as
specified by the Secretary as necessary.

``(III) Limitation.--The term `specified manufacturer'
shall not include a manufacturer described in subclause (I)
if such manufacturer is acquired after 2021 by another
manufacturer that is not a specified manufacturer, effective
at the beginning of the plan year immediately following such
acquisition or, in the case of an acquisition before 2025,
effective January 1, 2025.

``(iii) Specified lis percent.--In this subparagraph, the
`specified LIS percent' means, with respect to a year--

``(I) for an applicable drug dispensed for an applicable
beneficiary described in clause (i) who has not incurred
costs, as determined in accordance with section 1860D-
2(b)(4)(C), for covered part D drugs in the year that are
equal to or exceed the annual out-of-pocket threshold
specified in section 1860D-2(b)(4)(B)(i) for the year--

``(aa) for 2025, 99 percent;
``(bb) for 2026, 98 percent;
``(cc) for 2027, 95 percent;
``(dd) for 2028, 92 percent; and
``(ee) for 2029 and each subsequent year, 90 percent; and

``(II) for an applicable drug dispensed for an applicable
beneficiary described in clause (i) who has incurred costs,
as determined in accordance with section 1860D-2(b)(4)(C),
for covered part D drugs in the year that are equal to or
exceed the annual out-of-pocket threshold specified in
section 1860D-2(b)(4)(B)(i) for the year--

``(aa) for 2025, 99 percent;
``(bb) for 2026, 98 percent;
``(cc) for 2027, 95 percent;
``(dd) for 2028, 92 percent;
``(ee) for 2029, 90 percent;
``(ff) for 2030, 85 percent; and
``(gg) for 2031 and each subsequent year, 80 percent.
``(C) Phase-in for specified small manufacturers.--
``(i) In general.--In the case of an applicable drug of a
specified small manufacturer (as defined in clause (ii)) that
is marketed as of the date of enactment of this subparagraph
and dispensed for an applicable beneficiary, the term
`discounted price' means the specified small manufacturer
percent (as defined in clause (iii)) of the negotiated price
of the applicable drug of the manufacturer.
``(ii) Specified small manufacturer.--

``(I) In general.--In this subparagraph, subject to
subclause (III), the term `specified small manufacturer'
means a manufacturer of an applicable drug for which, in
2021--

``(aa) the manufacturer is a specified manufacturer (as
defined in subparagraph (B)(ii)); and
``(bb) the total expenditures under part D for any one of
the specified small manufacturer drugs of the manufacturer
that are covered by the agreement or agreements under section
1860D-14A of such manufacturer for such year and covered
under this part during such year are equal to or more than 80
percent of the total expenditures under this part for all
specified small manufacturer drugs of the manufacturer that
are covered by such agreement or agreements for such year and
covered under this part during such year.

``(II) Specified small manufacturer drugs.--

``(aa) In general.--For purposes of this clause, the term
`specified small manufacturer drugs' means, with respect to a
specified small manufacturer, for 2021, an applicable drug
that is produced, prepared, propagated, compounded,
converted, or processed by the manufacturer.
``(bb) Aggregation rule.--All persons treated as a single
employer under subsection (a) or (b) of section 52 of the
Internal Revenue Code of 1986 shall be treated as one
manufacturer for purposes of this subparagraph. For purposes
of making a determination pursuant to the previous sentence,
an agreement under this section shall require that a
manufacturer provide and attest to such information as
specified by the Secretary as necessary.

``(III) Limitation.--The term `specified small
manufacturer' shall not include a manufacturer described in
subclause (I) if such manufacturer is acquired after 2021 by
another manufacturer that is not a specified small
manufacturer, effective at the beginning of the plan year
immediately following such acquisition or, in the case of an
acquisition before 2025, effective January 1, 2025.

``(iii) Specified small manufacturer percent.--In this
subparagraph, the term `specified small manufacturer percent'
means, with respect to a year--

``(I) for an applicable drug dispensed for an applicable
beneficiary who has not incurred costs, as determined in
accordance with section 1860D-2(b)(4)(C), for covered part D
drugs in the year that are equal to or exceed the annual out-
of-pocket threshold specified in section 1860D-2(b)(4)(B)(i)
for the year--

``(aa) for 2025, 99 percent;
``(bb) for 2026, 98 percent;
``(cc) for 2027, 95 percent;
``(dd) for 2028, 92 percent; and
``(ee) for 2029 and each subsequent year, 90 percent; and

``(II) for an applicable drug dispensed for an applicable
beneficiary who has incurred costs, as determined in
accordance with section 1860D-2(b)(4)(C), for covered part D
drugs in the year that are equal to or exceed the annual out-
of-pocket threshold specified in section 1860D-2(b)(4)(B)(i)
for the year--

``(aa) for 2025, 99 percent;
``(bb) for 2026, 98 percent;
``(cc) for 2027, 95 percent;
``(dd) for 2028, 92 percent;
``(ee) for 2029, 90 percent;
``(ff) for 2030, 85 percent; and
``(gg) for 2031 and each subsequent year, 80 percent.
``(D) Total expenditures.--For purposes of this paragraph,
the term `total expenditures' includes, in the case of
expenditures with respect to part D, the total gross covered
prescription drug costs as defined in section 1860D-15(b)(3).
The term `total expenditures' excludes, in the case of
expenditures with respect to part B, expenditures for a drug
or biological that are bundled or packaged into the payment
for another service.
``(E) Special case for certain claims.--
``(i) Claims spanning deductible.--In the case where the
entire amount of the negotiated price of an individual claim
for an applicable drug with respect to an applicable
beneficiary does not fall above the annual deductible
specified in section 1860D-2(b)(1) for the year, the
manufacturer of the applicable drug shall provide the
discounted price under this section on only the portion of
the negotiated price of the applicable drug that falls above
such annual deductible.
``(ii) Claims spanning out-of-pocket threshold.--In the
case where the entire amount of the negotiated price of an
individual claim for an applicable drug with respect to an
applicable beneficiary does not fall entirely below or
entirely above the annual out-of-pocket threshold specified
in section 1860D-2(b)(4)(B)(i) for the year, the manufacturer
of the applicable drug shall provide the discounted price--

``(I) in accordance with subparagraph (A)(i) on the portion
of the negotiated price of the applicable drug that falls
below such threshold; and
``(II) in accordance with subparagraph (A)(ii) on the
portion of such price of such drug that falls at or above
such threshold.

``(5) Manufacturer.--The term `manufacturer' means any
entity which is engaged in the production, preparation,
propagation, compounding, conversion, or processing of
prescription drug products, either directly or indirectly by
extraction from substances of natural origin, or
independently by means of chemical synthesis, or by a
combination of extraction and chemical synthesis. Such term
does not include a wholesale distributor of drugs or a retail
pharmacy licensed under State law.
``(6) Negotiated price.--The term `negotiated price' has
the meaning given such term for purposes of section 1860D-
2(d)(1)(B), and, with respect to an applicable drug, such
negotiated price shall include any dispensing fee and, if
applicable, any vaccine administration fee for the applicable
drug.
``(7) Qualified retiree prescription drug plan.--The term
`qualified retiree prescription drug plan' has the meaning
given such term in section 1860D-22(a)(2).

``SEC. 1860D-14D. SELECTED DRUG SUBSIDY PROGRAM.

``With respect to covered part D drugs that would be
applicable drugs (as defined in section 1860D-14C(g)(2)) but
for the application of subparagraph (B) of such section, the
Secretary shall provide a process whereby, in the case of an
applicable beneficiary (as defined in section 1860D-
14C(g)(1)) who, with respect to a year, is enrolled in a
prescription drug plan or is enrolled in an MA-PD plan, has
not incurred costs that are equal to or exceed the annual
out-of-pocket threshold specified in section 1860D-
2(b)(4)(B)(i), and is dispensed such a drug, the Secretary
(periodically and on a timely basis) provides the PDP sponsor
or the MA organization offering the plan, a subsidy with
respect to such drug that is equal to 10 percent of the
negotiated price (as defined in section 1860D-14C(g)(6)) of
such drug.''.
(2) Sunset of medicare coverage gap discount program.--
Section 1860D-14A of the Social Security Act (42 U.S.C.
1395w-114a) is amended--
(A) in subsection (a), in the first sentence, by striking
``The Secretary'' and inserting ``Subject to subsection (h),
the Secretary''; and
(B) by adding at the end the following new subsection:
``(h) Sunset of Program.--

[[Page S3941]]

``(1) In general.--The program shall not apply with respect
to applicable drugs dispensed on or after January 1, 2025,
and, subject to paragraph (2), agreements under this section
shall be terminated as of such date.
``(2) Continued application for applicable drugs dispensed
prior to sunset.--The provisions of this section (including
all responsibilities and duties) shall continue to apply on
and after January 1, 2025, with respect to applicable drugs
dispensed prior to such date.''.
(3) Selected drug subsidy payments from medicare
prescription drug account.--Section 1860D-16(b)(1) of the
Social Security Act (42 U.S.C. 1395w-116(b)(1)) is amended--
(A) in subparagraph (C), by striking ``and'' at the end;
(B) in subparagraph (D), by striking the period at the end
and inserting ``; and''; and
(C) by adding at the end the following new subparagraph:
``(E) payments under section 1860D-14D (relating to
selected drug subsidy payments).''.
(d) Medicare Part D Premium Stabilization.--
(1) 2024 through 2029.--Section 1860D-13 of the Social
Security Act (42 U.S.C. 1395w-113) is amended--
(A) in subsection (a)--
(i) in paragraph (1)(A), by inserting ``or (8) (as
applicable)'' after ``paragraph (2)'';
(ii) in paragraph (2), in the matter preceding subparagraph
(A), by striking ``The base'' and inserting ``Subject to
paragraph (8), the base'';
(iii) in paragraph (7)--

(I) in subparagraph (B)(ii), by inserting ``or (8) (as
applicable)'' after ``paragraph (2)''; and
(II) in subparagraph (E)(i), by inserting ``or (8) (as
applicable)'' after ``paragraph (2)''; and

(iv) by adding at the end the following new paragraph:
``(8) Premium stabilization.--
``(A) In general.--The base beneficiary premium under this
paragraph for a prescription drug plan for a month in 2024
through 2029 shall be computed as follows:
``(i) 2024.--The base beneficiary premium for a month in
2024 shall be equal to the lesser of--

``(I) the base beneficiary premium computed under paragraph
(2) for a month in 2023 increased by 6 percent; or
``(II) the base beneficiary premium computed under
paragraph (2) for a month in 2024 that would have applied if
this paragraph had not been enacted.

``(ii) 2025.--The base beneficiary premium for a month in
2025 shall be equal to the lesser of--

``(I) the base beneficiary premium computed under clause
(i) for a month in 2024 increased by 6 percent; or
``(II) the base beneficiary premium computed under
paragraph (2) for a month in 2025 that would have applied if
this paragraph had not been enacted.

``(iii) 2026.--The base beneficiary premium for a month in
2026 shall be equal to the lesser of--

``(I) the base beneficiary premium computed under clause
(ii) for a month in 2025 increased by 6 percent; or
``(II) the base beneficiary premium computed under
paragraph (2) for a month in 2026 that would have applied if
this paragraph had not been enacted.

``(iv) 2027.--The base beneficiary premium for a month in
2027 shall be equal to the lesser of--

``(I) the base beneficiary premium computed under clause
(iii) for a month in 2026 increased by 6 percent; or
``(II) the base beneficiary premium computed under
paragraph (2) for a month in 2027 that would have applied if
this paragraph had not been enacted.

``(v) 2028.--The base beneficiary premium for a month in
2028 shall be equal to the lesser of--

``(I) the base beneficiary premium computed under clause
(iv) for a month in 2027 increased by 6 percent; or
``(II) the base beneficiary premium computed under
paragraph (2) for a month in 2028 that would have applied if
this paragraph had not been enacted.

``(vi) 2029.--The base beneficiary premium for a month in
2029 shall be equal to the lesser of--

``(I) the base beneficiary premium computed under clause
(v) for a month in 2028 increased by 6 percent; or
``(II) the base beneficiary premium computed under
paragraph (2) for a month in 2029 that would have applied if
this paragraph had not been enacted.

``(B) Clarification regarding 2030 and subsequent years.--
The base beneficiary premium for a month in 2030 or a
subsequent year shall be computed under paragraph (2) without
regard to this paragraph.''; and
(B) in subsection (b)(3)(A)(ii), by striking ``subsection
(a)(2)'' and inserting ``paragraph (2) or (8) of subsection
(a) (as applicable)''.
(2) Adjustment to beneficiary premium percentage for 2030
and subsequent years.--Section 1860D-13(a) of the Social
Security Act (42 U.S.C. 1395w-113(a)), as amended by
paragraph (1), is amended--
(A) in paragraph (3)(A), by inserting ``(or, for 2030 and
each subsequent year, the percent specified under paragraph
(9))'' after ``25.5 percent''; and
(B) by adding at the end the following new paragraph:
``(9) Percent specified.--
``(A) In general.--Subject to subparagraph (B), for
purposes of paragraph (3)(A), the percent specified under
this paragraph for 2030 and each subsequent year is the
percent that the Secretary determines is necessary to ensure
that the base beneficiary premium computed under paragraph
(2) for a month in 2030 is equal to the lesser of--
``(i) the base beneficiary premium computed under paragraph
(8)(A)(vi) for a month in 2029 increased by 6 percent; or
``(ii) the base beneficiary premium computed under
paragraph (2) for a month in 2030 that would have applied if
this paragraph had not been enacted.
``(B) Floor.--The percent specified under subparagraph (A)
may not be less than 20 percent.''.
(3) Conforming amendments.--
(A) Section 1854(b)(2)(B) of the Social Security Act 42
U.S.C. 1395w-24(b)(2)(B)) is amended by striking ``section
1860D-13(a)(2)'' and inserting ``paragraph (2) or (8) (as
applicable) of section 1860D-13(a)''.
(B) Section 1860D-11(g)(6) of the Social Security Act (42
U.S.C. 1395w-111(g)(6)) is amended by inserting ``(or, for
2030 and each subsequent year, the percent specified under
section 1860D-13(a)(9))'' after ``25.5 percent''.
(C) Section 1860D-13(a)(7)(B)(i) of the Social Security Act
(42 U.S.C. 1395w-113(a)(7)(B)(i)) is amended--
(i) in subclause (I), by inserting ``(or, for 2030 and each
subsequent year, the percent specified under paragraph (9))''
after ``25.5 percent''; and
(ii) in subclause (II), by inserting ``(or, for 2030 and
each subsequent year, the percent specified under paragraph
(9))'' after ``25.5 percent''.
(D) Section 1860D-15(a) of the Social Security Act (42
U.S.C. 1395w-115(a)) is amended--
(i) in the matter preceding paragraph (1), by inserting
``(or, for each of 2024 through 2029, the percent applicable
as a result of the application of section 1860D-13(a)(8), or,
for 2030 and each subsequent year, 100 percent minus the
percent specified under section 1860D-13(a)(9))'' after
``74.5 percent''; and
(ii) in paragraph (1)(B), by striking ``paragraph (2) of
section 1860D-13(a)'' and inserting ``paragraph (2) or (8) of
section 1860D-13(a) (as applicable)''.
(e) Conforming Amendments.--
(1) Section 1860D-2 of the Social Security Act (42 U.S.C.
1395w-102) is amended--
(A) in subsection (a(2)(A)(i)(I), by striking ``, or an
increase in the initial'' and inserting ``or, for a year
preceding 2025, an increase in the initial'';
(B) in subsection (c)(1)(C)--
(i) in the subparagraph heading, by striking ``at initial
coverage limit''; and
(ii) by inserting ``for a year preceding 2025 or the annual
out-of-pocket threshold specified in subsection (b)(4)(B) for
the year for 2025 and each subsequent year'' after
``subsection (b)(3) for the year'' each place it appears; and
(C) in subsection (d)(1)(A), by striking ``or an initial''
and inserting ``or, for a year preceding 2025, an initial''.
(2) Section 1860D-4(a)(4)(B)(i) of the Social Security Act
(42 U.S.C. 1395w-104(a)(4)(B)(i)) is amended by striking
``the initial'' and inserting ``for a year preceding 2025,
the initial''.
(3) Section 1860D-14(a) of the Social Security Act (42
U.S.C. 1395w-114(a)) is amended--
(A) in paragraph (1)--
(i) in subparagraph (C), by striking ``The continuation''
and inserting ``For a year preceding 2025, the
continuation'';
(ii) in subparagraph (D)(iii), by striking ``1860D-
2(b)(4)(A)(i)(I)'' and inserting ``1860D-
2(b)(4)(A)(i)(I)(aa)''; and
(iii) in subparagraph (E), by striking ``The elimination''
and inserting ``For a year preceding 2024, the elimination'';
and
(B) in paragraph (2)--
(i) in subparagraph (C), by striking ``The continuation''
and inserting ``For a year preceding 2025, the
continuation''; and
(ii) in subparagraph (E), by striking ``1860D-
2(b)(4)(A)(i)(I)'' and inserting ``1860D-2(b)(4)(A)(i)(I)(aa)
(for a year preceding 2024)''.
(4) Section 1860D-21(d)(7) of the Social Security Act (42
U.S.C. 1395w-131(d)(7)) is amended by striking ``section
1860D-2(b)(4)(B)(i)'' and inserting ``section 1860D-
2(b)(4)(C)(i)''.
(5) Section 1860D-22(a)(2)(A) of the Social Security Act
(42 U.S.C. 1395w-132(a)(2)(A)) is amended--
(A) by striking ``the value of any discount'' and inserting
the following: ``the value of--
``(i) for years prior to 2025, any discount'';
(B) in clause (i), as inserted by subparagraph (A) of this
paragraph, by striking the period at the end and inserting
``; and''; and
(C) by adding at the end the following new clause:
``(ii) for 2025 and each subsequent year, any discount
provided pursuant to section 1860D-14C.''.
(6) Section 1860D-41(a)(6) of the Social Security Act (42
U.S.C. 1395w-151(a)(6)) is amended--
(A) by inserting ``for a year before 2025'' after ``1860D-
2(b)(3)''; and
(B) by inserting ``for such year'' before the period.
(7) Section 1860D-43 of the Social Security Act (42 U.S.C.
1395w-153) is amended--
(A) in subsection (a)--
(i) by striking paragraph (1) and inserting the following:
``(1) participate in--
``(A) for 2011 through 2024, the Medicare coverage gap
discount program under section 1860D-14A; and
``(B) for 2025 and each subsequent year, the manufacturer
discount program under section 1860D-14C;'';

[[Page S3942]]

(ii) by striking paragraph (2) and inserting the following:
``(2) have entered into and have in effect--
``(A) for 2011 through 2024, an agreement described in
subsection (b) of section 1860D-14A with the Secretary; and
``(B) for 2025 and each subsequent year, an agreement
described in subsection (b) of section 1860D-14C with the
Secretary; and''; and
(iii) in paragraph (3), by striking ``such section'' and
inserting ``section 1860D-14A''; and
(B) by striking subsection (b) and inserting the following:
``(b) Effective Date.--Paragraphs (1)(A), (2)(A), and (3)
of subsection (a) shall apply to covered part D drugs
dispensed under this part on or after January 1, 2011, and
before January 1, 2025, and paragraphs (1)(B) and (2)(B) of
such subsection shall apply to covered part D drugs dispensed
under this part on or after January 1, 2025.''.
(8) Section 1927 of the Social Security Act (42 U.S.C.
1396r-8) is amended--
(A) in subsection (c)(1)(C)(i)(VI), by inserting before the
period at the end the following: ``or under the manufacturer
discount program under section 1860D-14C''; and
(B) in subsection (k)(1)(B)(i)(V), by inserting before the
period at the end the following: ``or under section 1860D-
14C''.
(f) Implementation for 2024 Through 2026.--The Secretary
shall implement this section, including the amendments made
by this section, for 2024, 2025, and 2026 by program
instruction or other forms of program guidance.
(g) Funding.--In addition to amounts otherwise available,
there are appropriated to the Centers for Medicare & Medicaid
Services, out of any money in the Treasury not otherwise
appropriated, $341,000,000 for fiscal year 2022, including
$20,000,000 and $65,000,000 to carry out the provisions of,
including the amendments made by, this section in fiscal
years 2022 and 2023, respectively, and $32,000,000 to carry
out the provisions of, including the amendments made by, this
section in each of fiscal years 2024 through 2031, to remain
available until expended.

SEC. 11202. MAXIMUM MONTHLY CAP ON COST-SHARING PAYMENTS
UNDER PRESCRIPTION DRUG PLANS AND MA-PD PLANS.

(a) In General.--Section 1860D-2(b) of the Social Security
Act (42 U.S.C. 1395w-102(b)) is amended--
(1) in paragraph (2)--
(A) in subparagraph (A), by striking ``and (D)'' and
inserting ``, (D), and (E)''; and
(B) by adding at the end the following new subparagraph:
``(E) Maximum monthly cap on cost-sharing payments.--
``(i) In general.--For plan years beginning on or after
January 1, 2025, each PDP sponsor offering a prescription
drug plan and each MA organization offering an MA-PD plan
shall provide to any enrollee of such plan, including an
enrollee who is a subsidy eligible individual (as defined in
paragraph (3) of section 1860D-14(a)), the option to elect
with respect to a plan year to pay cost-sharing under the
plan in monthly amounts that are capped in accordance with
this subparagraph.
``(ii) Determination of maximum monthly cap.--For each
month in the plan year for which an enrollee in a
prescription drug plan or an MA-PD plan has made an election
pursuant to clause (i), the PDP sponsor or MA organization
shall determine a maximum monthly cap (as defined in clause
(iv)) for such enrollee.
``(iii) Beneficiary monthly payments.--With respect to an
enrollee who has made an election pursuant to clause (i), for
each month described in clause (ii), the PDP sponsor or MA
organization shall bill such enrollee an amount (not to
exceed the maximum monthly cap) for the out-of-pocket costs
of such enrollee in such month.
``(iv) Maximum monthly cap defined.--In this subparagraph,
the term `maximum monthly cap' means, with respect to an
enrollee--

``(I) for the first month for which the enrollee has made
an election pursuant to clause (i), an amount determined by
calculating--

``(aa) the annual out-of-pocket threshold specified in
paragraph (4)(B) minus the incurred costs of the enrollee as
described in paragraph (4)(C); divided by
``(bb) the number of months remaining in the plan year; and

``(II) for a subsequent month, an amount determined by
calculating--

``(aa) the sum of any remaining out-of-pocket costs owed by
the enrollee from a previous month that have not yet been
billed to the enrollee and any additional out-of-pocket costs
incurred by the enrollee; divided by
``(bb) the number of months remaining in the plan year.
``(v) Additional requirements.--The following requirements
shall apply with respect to the option to make an election
pursuant to clause (i) under this subparagraph:

``(I) Secretarial responsibilities.--The Secretary shall
provide information to part D eligible individuals on the
option to make such election through educational materials,
including through the notices provided under section 1804(a).
``(II) Timing of election.--An enrollee in a prescription
drug plan or an MA-PD plan may make such an election--

``(aa) prior to the beginning of the plan year; or
``(bb) in any month during the plan year.

``(III) Pdp sponsor and ma organization responsibilities.--
Each PDP sponsor offering a prescription drug plan or MA
organization offering an MA-PD plan--

``(aa) may not limit the option for an enrollee to make
such an election to certain covered part D drugs;
``(bb) shall, prior to the plan year, notify prospective
enrollees of the option to make such an election in
promotional materials;
``(cc) shall include information on such option in enrollee
educational materials;
``(dd) shall have in place a mechanism to notify a pharmacy
during the plan year when an enrollee incurs out-of-pocket
costs with respect to covered part D drugs that make it
likely the enrollee may benefit from making such an election;
``(ee) shall provide that a pharmacy, after receiving a
notification described in item (dd) with respect to an
enrollee, informs the enrollee of such notification;
``(ff) shall ensure that such an election by an enrollee
has no effect on the amount paid to pharmacies (or the timing
of such payments) with respect to covered part D drugs
dispensed to the enrollee; and
``(gg) shall have in place a financial reconciliation
process to correct inaccuracies in payments made by an
enrollee under this subparagraph with respect to covered part
D drugs during the plan year.

``(IV) Failure to pay amount billed.--If an enrollee fails
to pay the amount billed for a month as required under this
subparagraph--

``(aa) the election of the enrollee pursuant to clause (i)
shall be terminated and the enrollee shall pay the cost-
sharing otherwise applicable for any covered part D drugs
subsequently dispensed to the enrollee up to the annual out-
of-pocket threshold specified in paragraph (4)(B); and
``(bb) the PDP sponsor or MA organization may preclude the
enrollee from making an election pursuant to clause (i) in a
subsequent plan year.

``(V) Clarification regarding past due amounts.--Nothing in
this subparagraph shall be construed as prohibiting a PDP
sponsor or an MA organization from billing an enrollee for an
amount owed under this subparagraph.
``(VI) Treatment of unsettled balances.--Any unsettled
balances with respect to amounts owed under this subparagraph
shall be treated as plan losses and the Secretary shall not
be liable for any such balances outside of those assumed as
losses estimated in plan bids.''; and

(2) in paragraph (4)--
(A) in subparagraph (C), by striking ``subparagraph (E)''
and inserting ``subparagraph (E) or subparagraph (F)''; and
(B) by adding at the end the following new subparagraph:
``(F) Inclusion of costs paid under maximum monthly cap
option.--In applying subparagraph (A), with respect to an
enrollee who has made an election pursuant to clause (i) of
paragraph (2)(E), costs shall be treated as incurred if such
costs are paid by a PDP sponsor or an MA organization under
the option provided under such paragraph.''.
(b) Application to Alternative Prescription Drug
Coverage.--Section 1860D-2(c) of the Social Security Act (42
U.S.C. 1395w-102(c)) is amended by adding at the end the
following new paragraph:
``(4) Same maximum monthly cap on cost-sharing.--The
maximum monthly cap on cost-sharing payments shall apply to
coverage with respect to an enrollee who has made an election
pursuant to clause (i) of subsection (b)(2)(E) under the
option provided under such subsection.''.
(c) Implementation for 2025.--The Secretary shall implement
this section, including the amendments made by this section,
for 2025 by program instruction or other forms of program
guidance.
(d) Funding.--In addition to amounts otherwise available,
there are appropriated to the Centers for Medicare & Medicaid
Services, out of any money in the Treasury not otherwise
appropriated, $10,000,000 for fiscal year 2023, to remain
available until expended, to carry out the provisions of,
including the amendments made by, this section.

PART 4--REPEAL OF PRESCRIPTION DRUG REBATE RULE

SEC. 11301. PROHIBITING IMPLEMENTATION OF RULE RELATING TO
ELIMINATING THE ANTI-KICKBACK STATUTE SAFE
HARBOR PROTECTION FOR PRESCRIPTION DRUG
REBATES.

Section 90006 of division I of the Infrastructure
Investment and Jobs Act (42 U.S.C. 1320a-7b note), as amended
by section 13101 of division A of the Bipartisan Safer
Communities Act, is amended by striking ``, prior to January
1, 2027,''.

PART 5--MISCELLANEOUS

SEC. 11401. COVERAGE OF ADULT VACCINES RECOMMENDED BY THE
ADVISORY COMMITTEE ON IMMUNIZATION PRACTICES
UNDER MEDICARE PART D.

(a) Ensuring Treatment of Cost-sharing and Deductible Is
Consistent With Treatment of Vaccines Under Medicare Part
B.--Section 1860D-2 of the Social Security Act (42 U.S.C.
1395w-102), as amended by sections 11201 and 11202, is
amended--
(1) in subsection (b)--
(A) in paragraph (1)(A), by striking ``The coverage'' and
inserting ``Subject to paragraph (8), the coverage'';
(B) in paragraph (2)--
(i) in subparagraph (A), by inserting ``and paragraph (8)''
after ``and (E)'';

[[Page S3943]]

(ii) in subparagraph (C)(i), in the matter preceding
subclause (I), by striking ``paragraph (4)'' and inserting
``paragraphs (4) and (8)''; and
(iii) in subparagraph (D)(i), in the matter preceding
subclause (I), by striking ``paragraph (4)'' and inserting
``paragraphs (4) and (8)'';
(C) in paragraph (4)(A)(i), by striking ``The coverage''
and inserting ``Subject to paragraph (8), the coverage''; and
(D) by adding at the end the following new paragraph:
``(8) Treatment of cost-sharing for adult vaccines
recommended by the advisory committee on immunization
practices consistent with treatment of vaccines under part
b.--
``(A) In general.--For plan years beginning on or after
January 1, 2023, with respect to an adult vaccine recommended
by the Advisory Committee on Immunization Practices (as
defined in subparagraph (B))--
``(i) the deductible under paragraph (1) shall not apply;
and
``(ii) there shall be no coinsurance or other cost-sharing
under this part with respect to such vaccine.
``(B) Adult vaccines recommended by the advisory committee
on immunization practices.--For purposes of this paragraph,
the term `adult vaccine recommended by the Advisory Committee
on Immunization Practices' means a covered part D drug that
is a vaccine licensed under section 351 of the Public Health
Service Act for use by adult populations and administered in
accordance with recommendations of the Advisory Committee on
Immunization Practices of the Centers for Disease Control and
Prevention.''; and
(2) in subsection (c), by adding at the end the following
new paragraph:
``(5) Treatment of cost-sharing for adult vaccines
recommended by the advisory committee on immunization
practices.--The coverage is in accordance with subsection
(b)(8).''.
(b) Conforming Amendments to Cost-sharing for Low-income
Individuals.--Section 1860D-14(a) of the Social Security Act
(42 U.S.C. 1395w-114(a)), as amended by section 11201, is
amended--
(1) in paragraph (1)(D), in each of clauses (ii) and (iii),
by striking ``In the case'' and inserting ``Subject to
paragraph (6), in the case'';
(2) in paragraph (2)--
(A) in subparagraph (B), by striking ``A reduction'' and
inserting ``Subject to section 1860D-2(b)(8), a reduction'';
(B) in subparagraph (D), by striking ``The substitution''
and inserting ``Subject to paragraph (6), the substitution'';
and
(C) in subparagraph (E), by striking ``and subsection (c)''
and inserting ``, paragraph (6) of this subsection, and
subsection (c)''; and
(3) by adding at the end the following new paragraph:
``(6) No application of cost-sharing or deductible for
adult vaccines recommended by the advisory committee on
immunization practices.--For plan years beginning on or after
January 1, 2023, with respect to an adult vaccine recommended
by the Advisory Committee on Immunization Practices (as
defined in section 1860D-2(b)(8)(B))--
``(A) the deductible under section 1860D-2(b)(1) shall not
apply; and
``(B) there shall be no cost-sharing under this section
with respect to such vaccine.''.
(c) Temporary Retrospective Subsidy.--Section 1860D-15 of
the Social Security Act (42 U.S.C. 1395w-115) is amended by
adding at the end the following new subsection:
``(h) Temporary Retrospective Subsidy for Reduction in
Cost-sharing for Adult Vaccines Recommended by the Advisory
Committee on Immunization Practices During 2023.--
``(1) In general.--In addition to amounts otherwise payable
under this section to a PDP sponsor of a prescription drug
plan or an MA organization offering an MA-PD plan, for plan
year 2023, the Secretary shall provide the PDP sponsor or MA
organization offering the plan subsidies in an amount equal
to the aggregate reduction in cost-sharing by reason of the
application of section 1860D-2(b)(8) for individuals under
the plan during the year.
``(2) Timing.--The Secretary shall provide a subsidy under
paragraph (1), as applicable, not later than 18 months
following the end of the applicable plan year.''.
(d) Rule of Construction.--Nothing in this section shall be
construed as limiting coverage under part D of title XVIII of
the Social Security Act for vaccines that are not recommended
by the Advisory Committee on Immunization Practices.
(e) Implementation for 2023 Through 2025.--The Secretary
shall implement this section, including the amendments made
by this section, for 2023, 2024, and 2025, by program
instruction or other forms of program guidance.

SEC. 11402. PAYMENT FOR BIOSIMILAR BIOLOGICAL PRODUCTS DURING
INITIAL PERIOD.

Section 1847A(c)(4) of the Social Security Act (42 U.S.C.
1395w-3a(c)(4)) is amended--
(1) in each of subparagraphs (A) and (B), by redesignating
clauses (i) and (ii) as subclauses (I) and (II),
respectively, and moving such subclauses 2 ems to the right;
(2) by redesignating subparagraphs (A) and (B) as clauses
(i) and (ii) and moving such clauses 2 ems to the right;
(3) by striking ``unavailable.--In the case'' and inserting
``unavailable.--
``(A) In general.--Subject to subparagraph (B), in the
case''; and
(4) by adding at the end the following new subparagraph:
``(B) Limitation on payment amount for biosimilar
biological products during initial period.--In the case of a
biosimilar biological product furnished on or after July 1,
2024, during the initial period described in subparagraph (A)
with respect to the biosimilar biological product, the amount
payable under this section for the biosimilar biological
product is the lesser of the following:
``(i) The amount determined under clause (ii) of such
subparagraph for the biosimilar biological product.
``(ii) The amount determined under subsection (b)(1)(B) for
the reference biological product.''.

SEC. 11403. TEMPORARY INCREASE IN MEDICARE PART B PAYMENT FOR
CERTAIN BIOSIMILAR BIOLOGICAL PRODUCTS.

Section 1847A(b)(8) of the Social Security Act (42 U.S.C.
1395w-3a(b)(8)) is amended--
(1) by redesignating subparagraphs (A) and (B) as clauses
(i) and (ii), respectively, and moving the margin of each
such redesignated clause 2 ems to the right;
(2) by striking ``product.--The amount'' and inserting the
following: ``product.--
``(A) In general.--Subject to subparagraph (B), the
amount''; and
(3) by adding at the end the following new subparagraph:
``(B) Temporary payment increase.--
``(i) In general.--In the case of a qualifying biosimilar
biological product that is furnished during the applicable 5-
year period for such product, the amount specified in this
paragraph for such product with respect to such period is the
sum determined under subparagraph (A), except that clause
(ii) of such subparagraph shall be applied by substituting `8
percent' for `6 percent'.
``(ii) Applicable 5-year period.--For purposes of clause
(i), the applicable 5-year period for a qualifying biosimilar
biological product is--

``(I) in the case of such a product for which payment was
made under this paragraph as of September 30, 2022, the 5-
year period beginning on October 1, 2022; and
``(II) in the case of such a product for which payment is
first made under this paragraph during a calendar quarter
during the period beginning October 1, 2022, and ending
December 31, 2027, the 5-year period beginning on the first
day of such calendar quarter during which such payment is
first made.

``(iii) Qualifying biosimilar biological product defined.--
For purposes of this subparagraph, the term `qualifying
biosimilar biological product' means a biosimilar biological
product described in paragraph (1)(C) with respect to which--

``(I) in the case of a product described in clause (ii)(I),
the average sales price under paragraph (8)(A)(i) for a
calendar quarter during the 5-year period described in such
clause is not more than the average sales price under
paragraph (4)(A) for such quarter for the reference
biological product; and
``(II) in the case of a product described in clause
(ii)(II), the average sales price under paragraph (8)(A)(i)
for a calendar quarter during the 5-year period described in
such clause is not more than the average sales price under
paragraph (4)(A) for such quarter for the reference
biological product.''.

SEC. 11404. EXPANDING ELIGIBILITY FOR LOW-INCOME SUBSIDIES
UNDER PART D OF THE MEDICARE PROGRAM.

Section 1860D-14(a) of the Social Security Act (42 U.S.C.
1395w-114(a)), as amended by section 11201, is amended--
(1) in the subsection heading, by striking ``Individuals''
and all that follows through ``Line'' and inserting ``Certain
Individuals'';
(2) in paragraph (1)--
(A) by striking the paragraph heading and inserting
``Individuals with certain low incomes''; and
(B) in the matter preceding subparagraph (A), by inserting
``(or, with respect to a plan year beginning on or after
January 1, 2024, 150 percent)'' after ``135 percent''; and
(3) in paragraph (2)--
(A) by striking the paragraph heading and inserting ``Other
low-income individuals''; and
(B) in the matter preceding subparagraph (A), by striking
``In the case of a subsidy'' and inserting ``With respect to
a plan year beginning before January 1, 2024, in the case of
a subsidy''.

SEC. 11405. IMPROVING ACCESS TO ADULT VACCINES UNDER MEDICAID
AND CHIP.

(a) Medicaid.--
(1) Requiring coverage of adult vaccinations.--
(A) In general.--Section 1902(a)(10)(A) of the Social
Security Act (42 U.S.C. 1396a(a)(10)(A)) is amended in the
matter preceding clause (i) by inserting ``(13)(B),'' after
``(5),''.
(B) Medically needy.--Section 1902(a)(10)(C)(iv) of such
Act (42 U.S.C. 1396a(a)(10)(C)(iv)) is amended by inserting
``, (13)(B),'' after ``(5)''.
(2) No cost sharing for vaccinations.--
(A) General cost-sharing limitations.--Section 1916 of the
Social Security Act (42 U.S.C. 1396o) is amended--
(i) in subsection (a)(2)--

(I) in subparagraph (G), by inserting a comma after ``State
plan'';
(II) in subparagraph (H), by striking ``; or'' and
inserting a comma;
(III) in subparagraph (I), by striking ``; and'' and
inserting ``, or''; and

[[Page S3944]]

(IV) by adding at the end the following new subparagraph:

``(J) vaccines described in section 1905(a)(13)(B) and the
administration of such vaccines; and''; and
(ii) in subsection (b)(2)--

(I) in subparagraph (G), by inserting a comma after ``State
plan'';
(II) in subparagraph (H), by striking ``; or'' and
inserting a comma;
(III) in subparagraph (I), by striking ``; and'' and
inserting ``, or''; and
(IV) by adding at the end the following new subparagraph:

``(J) vaccines described in section 1905(a)(13)(B) and the
administration of such vaccines; and''.
(B) Application to alternative cost sharing.--Section
1916A(b)(3)(B) of the Social Security Act (42 U.S.C. 1396o-
1(b)(3)(B)) is amended by adding at the end the following new
clause:
``(xiv) Vaccines described in section 1905(a)(13)(B) and
the administration of such vaccines.''.
(3) Increased fmap for adult vaccines and their
administration.--Section 1905(b) of the Social Security Act
(42 U.S.C. 1396d(b)) is amended--
(A) by striking ``and (5)'' and inserting ``(5)'';
(B) by striking ``services and vaccines described in
subparagraphs (A) and (B) of subsection (a)(13), and
prohibits cost-sharing for such services and vaccines'' and
inserting ``services described in subsection (a)(13)(A), and
prohibits cost-sharing for such services'';
(C) by striking ``medical assistance for such services and
vaccines'' and inserting ``medical assistance for such
services''; and
(D) by inserting ``, and (6) during the first 8 fiscal
quarters beginning on or after the effective date of this
clause, in the case of a State which, as of the date of
enactment of the Inflation Reduction Act of 2022, provides
medical assistance for vaccines described in subsection
(a)(13)(B) and their administration and prohibits cost-
sharing for such vaccines, the Federal medical assistance
percentage, as determined under this subsection and
subsection (y), shall be increased by 1 percentage point with
respect to medical assistance for such vaccines and their
administration'' before the first period.
(b) CHIP.--
(1) Requiring coverage of adult vaccinations.--Section
2103(c) of the Social Security Act (42 U.S.C. 1397cc(c)) is
amended by adding at the end the following paragraph:
``(12) Required coverage of approved, recommended adult
vaccines and their administration.--Regardless of the type of
coverage elected by a State under subsection (a), if the
State child health plan or a waiver of such plan provides
child health assistance or pregnancy-related assistance (as
defined in section 2112) to an individual who is 19 years of
age or older, such assistance shall include coverage of
vaccines described in section 1905(a)(13)(B) and their
administration.''.
(2) No cost-sharing for vaccinations.--Section 2103(e)(2)
of such Act (42 U.S.C. 1397cc(e)(2)) is amended by inserting
``vaccines described in subsection (c)(12) (and the
administration of such vaccines),'' after ``in vitro
diagnostic products described in subsection (c)(10) (and
administration of such products),''.
(c) Effective Date.--The amendments made by this section
take effect on the 1st day of the 1st fiscal quarter that
begins on or after the date that is 1 year after the date of
enactment of this Act and shall apply to expenditures made
under a State plan or waiver of such plan under title XIX of
the Social Security Act (42 U.S.C. 1396 through 1396w-6) or
under a State child health plan or waiver of such plan under
title XXI of such Act (42 U.S.C. 1397aa through 1397mm) on or
after such effective date.

Subtitle C--Affordable Care Act Subsidies

SEC. 12001. IMPROVE AFFORDABILITY AND REDUCE PREMIUM COSTS OF
HEALTH INSURANCE FOR CONSUMERS.

(a) In General.--Clause (iii) of section 36B(b)(3)(A) of
the Internal Revenue Code of 1986 is amended--
(1) by striking ``in 2021 or 2022'' and inserting ``after
December 31, 2020, and before January 1, 2026'', and
(2) by striking ``2021 and 2022'' in the heading and
inserting ``2021 through 2025''.
(b) Extension Through 2025 of Rule to Allow Credit to
Taxpayers Whose Household Income Exceeds 400 Percent of the
Poverty Line.--Section 36B(c)(1)(E) of the Internal Revenue
Code of 1986 is amended--
(1) by striking ``in 2021 or 2022'' and inserting ``after
December 31, 2020, and before January 1, 2026'', and
(2) by striking ``2021 and 2022'' in the heading and
inserting ``2021 through 2025''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2022.

Subtitle D--Energy Security

SEC. 13001. AMENDMENT OF 1986 CODE.

Except as otherwise expressly provided, whenever in this
subtitle an amendment or repeal is expressed in terms of an
amendment to, or repeal of, a section or other provision, the
reference shall be considered to be made to a section or
other provision of the Internal Revenue Code of 1986.

PART 1--CLEAN ELECTRICITY AND REDUCING CARBON EMISSIONS

SEC. 13101. EXTENSION AND MODIFICATION OF CREDIT FOR
ELECTRICITY PRODUCED FROM CERTAIN RENEWABLE
RESOURCES.

(a) In General.--The following provisions of section 45(d)
are each amended by striking ``January 1, 2022'' each place
it appears and inserting ``January 1, 2025'':
(1) Paragraph (2)(A).
(2) Paragraph (3)(A).
(3) Paragraph (6).
(4) Paragraph (7).
(5) Paragraph (9).
(6) Paragraph (11)(B).
(b) Base Credit Amount.--Section 45 is amended--
(1) in subsection (a)(1), by striking ``1.5 cents'' and
inserting ``0.3 cents'', and
(2) in subsection (b)(2), by striking ``1.5 cent'' and
inserting ``0.3 cent''.
(c) Application of Extension to Geothermal and Solar.--
Section 45(d)(4) is amended by striking ``and which'' and all
that follows through ``January 1, 2022'' and inserting ``and
the construction of which begins before January 1, 2025''.
(d) Extension of Election to Treat Qualified Facilities as
Energy Property.--Section 48(a)(5)(C)(ii) is amended by
striking ``January 1, 2022'' and inserting ``January 1,
2025''.
(e) Application of Extension to Wind Facilities.--
(1) In general.--Section 45(d)(1) is amended by striking
``January 1, 2022'' and inserting ``January 1, 2025''.
(2) Application of phaseout percentage.--
(A) Renewable electricity production credit.--Section
45(b)(5) is amended by inserting ``which is placed in service
before January 1, 2022'' after ``using wind to produce
electricity''.
(B) Energy credit.--Section 48(a)(5)(E) is amended by
inserting ``placed in service before January 1, 2022, and''
before ``treated as energy property''.
(3) Qualified offshore wind facilities under energy
credit.--Section 48(a)(5)(F)(i) is amended by striking
``offshore wind facility'' and all that follows and inserting
the following: ``offshore wind facility, subparagraph (E)
shall not apply.''.
(f) Wage and Apprenticeship Requirements.--Section 45(b) is
amended by adding at the end the following new paragraphs:
``(6) Increased credit amount for qualified facilities.--
``(A) In general.--In the case of any qualified facility
which satisfies the requirements of subparagraph (B), the
amount of the credit determined under subsection (a)
(determined after the application of paragraphs (1) through
(5) and without regard to this paragraph) shall be equal to
such amount multiplied by 5.
``(B) Qualified facility requirements.--A qualified
facility meets the requirements of this subparagraph if it is
one of the following:
``(i) A facility with a maximum net output of less than 1
megawatt (as measured in alternating current).
``(ii) A facility the construction of which begins prior to
the date that is 60 days after the Secretary publishes
guidance with respect to the requirements of paragraphs
(7)(A) and (8).
``(iii) A facility which satisfies the requirements of
paragraphs (7)(A) and (8).
``(7) Prevailing wage requirements.--
``(A) In general.--The requirements described in this
subparagraph with respect to any qualified facility are that
the taxpayer shall ensure that any laborers and mechanics
employed by contractors and subcontractors in--
``(i) the construction of such facility, and
``(ii) with respect to any taxable year, for any portion of
such taxable year which is within the period described in
subsection (a)(2)(A)(ii), the alteration or repair of such
facility,
shall be paid wages at rates not less than the prevailing
rates for construction, alteration, or repair of a similar
character in the locality in which such facility is located
as most recently determined by the Secretary of Labor, in
accordance with subchapter IV of chapter 31 of title 40,
United States Code. For purposes of determining an increased
credit amount under paragraph (6)(A) for a taxable year, the
requirement under clause (ii) is applied to such taxable year
in which the alteration or repair of the qualified facility
occurs.''
``(B) Correction and penalty related to failure to satisfy
wage requirements.--
``(i) In general.--In the case of any taxpayer which fails
to satisfy the requirement under subparagraph (A) with
respect to the construction of any qualified facility or with
respect to the alteration or repair of a facility in any year
during the period described in subparagraph (A)(ii), such
taxpayer shall be deemed to have satisfied such requirement
under such subparagraph with respect to such facility for any
year if, with respect to any laborer or mechanic who was paid
wages at a rate below the rate described in such subparagraph
for any period during such year, such taxpayer--

``(I) makes payment to such laborer or mechanic in an
amount equal to the sum of--

``(aa) an amount equal to the difference between--
``(AA) the amount of wages paid to such laborer or mechanic
during such period, and
``(BB) the amount of wages required to be paid to such
laborer or mechanic pursuant to such subparagraph during such
period, plus
``(bb) interest on the amount determined under item (aa) at
the underpayment rate established under section 6621
(determined by

[[Page S3945]]

substituting `6 percentage points' for `3 percentage points'
in subsection (a)(2) of such section) for the period
described in such item, and

``(II) makes payment to the Secretary of a penalty in an
amount equal to the product of--

``(aa) $5,000, multiplied by
``(bb) the total number of laborers and mechanics who were
paid wages at a rate below the rate described in subparagraph
(A) for any period during such year.
``(ii) Deficiency procedures not to apply.--Subchapter B of
chapter 63 (relating to deficiency procedures for income,
estate, gift, and certain excise taxes) shall not apply with
respect to the assessment or collection of any penalty
imposed by this paragraph.
``(iii) Intentional disregard.--If the Secretary determines
that any failure described in clause (i) is due to
intentional disregard of the requirements under subparagraph
(A), such clause shall be applied--

``(I) in subclause (I), by substituting `three times the
sum' for `the sum', and
``(II) in subclause (II), by substituting `$10,000' for
`5,000' in item (aa) thereof.

``(iv) Limitation on period for payment.--Pursuant to rules
issued by the Secretary, in the case of a final determination
by the Secretary with respect to any failure by the taxpayer
to satisfy the requirement under subparagraph (A),
subparagraph (B)(i) shall not apply unless the payments
described in subclauses (I) and (II) of such subparagraph are
made by the taxpayer on or before the date which is 180 days
after the date of such determination.
``(8) Apprenticeship requirements.--The requirements
described in this paragraph with respect to the construction
of any qualified facility are as follows:
``(A) Labor hours.--
``(i) Percentage of total labor hours.--Taxpayers shall
ensure that, with respect to the construction of any
qualified facility, not less than the applicable percentage
of the total labor hours of the construction, alteration, or
repair work (including such work performed by any contractor
or subcontractor) with respect to such facility shall,
subject to subparagraph (B), be performed by qualified
apprentices.
``(ii) Applicable percentage.--For purposes of clause (i),
the applicable percentage shall be--

``(I) in the case of a qualified facility the construction
of which begins before January 1, 2023, 10 percent,
``(II) in the case of a qualified facility the construction
of which begins after December 31, 2022, and before January
1, 2024, 12.5 percent, and
``(III) in the case of a qualified facility the
construction of which begins after December 31, 2023, 15
percent.

``(B) Apprentice to journeyworker ratio.--The requirement
under subparagraph (A)(i) shall be subject to any applicable
requirements for apprentice-to-journeyworker ratios of the
Department of Labor or the applicable State apprenticeship
agency.
``(C) Participation.--Each contractor and subcontractor who
employs 4 or more individuals to perform construction,
alteration, or repair work with respect to the construction
of a qualified facility shall employ 1 or more qualified
apprentices to perform such work.
``(D) Exception.--
``(i) In general.--A taxpayer shall not be treated as
failing to satisfy the requirements of this paragraph if such
taxpayer--

``(I) satisfies the requirements described in clause (ii),
or
``(II) subject to clause (iii), in the case of any failure
by the taxpayer to satisfy the requirement under
subparagraphs (A) and (C) with respect to the construction,
alteration, or repair work on any qualified facility to which
subclause (I) does not apply, makes payment to the Secretary
of a penalty in an amount equal to the product of--

``(aa) $50, multiplied by
``(bb) the total labor hours for which the requirement
described in such subparagraph was not satisfied with respect
to the construction, alteration, or repair work on such
qualified facility.
``(ii) Good faith effort.--For purposes of clause (i), a
taxpayer shall be deemed to have satisfied the requirements
under this paragraph with respect to a qualified facility if
such taxpayer has requested qualified apprentices from a
registered apprenticeship program, as defined in section
3131(e)(3)(B), and--

``(I) such request has been denied, provided that such
denial is not the result of a refusal by the contractors or
subcontractors engaged in the performance of construction,
alteration, or repair work with respect to such qualified
facility to comply with the established standards and
requirements of the registered apprenticeship program, or
``(II) the registered apprenticeship program fails to
respond to such request within 5 business days after the date
on which such registered apprenticeship program received such
request.

``(iii) Intentional disregard.--If the Secretary determines
that any failure described in subclause (i)(II) is due to
intentional disregard of the requirements under subparagraphs
(A) and (C), subclause (i)(II) shall be applied by
substituting `$500' for `$50' in item (aa) thereof.
``(E) Definitions.--For purposes of this paragraph--
``(i) Labor hours.--The term `labor hours'--

``(I) means the total number of hours devoted to the
performance of construction, alteration, or repair work by
employees of the taxpayer (including construction,
alteration, or repair work by any contractor or
subcontractor), and
``(II) excludes any hours worked by--

``(aa) foremen,
``(bb) superintendents,
``(cc) owners, or
``(dd) persons employed in a bona fide executive,
administrative, or professional capacity (within the meaning
of those terms in part 541 of title 29, Code of Federal
Regulations).
``(ii) Qualified apprentice.--The term `qualified
apprentice' means an individual who is an employee of the
contractor or subcontractor and who is participating in a
registered apprenticeship program, as defined in section
3131(e)(3)(B).
``(9) Regulations and guidance.--The Secretary shall issue
such regulations or other guidance as the Secretary
determines necessary or appropriate to carry out the purposes
of this subsection, including regulations or other guidance
which provides for requirements for recordkeeping or
information reporting for purposes of administering the
requirements of this subsection.''.
(g) Domestic Content, Phaseout, and Energy Communities.--
Section 45(b), as amended by subsection (f), is amended--
(1) by redesignating paragraph (9) as paragraph (12), and
(2) by inserting after paragraph (8) the following:
``(9) Domestic content bonus credit amount.--
``(A) In general.--In the case of any qualified facility
which satisfies the requirement under subparagraph (B)(i),
the amount of the credit determined under subsection (a)
(determined after the application of paragraphs (1) through
(8)) shall be increased by an amount equal to 10 percent of
the amount so determined.
``(B) Requirement.--
``(i) In general.--The requirement described in this
subclause is satisfied with respect to any qualified facility
if the taxpayer certifies to the Secretary (at such time, and
in such form and manner, as the Secretary may prescribe) that
any steel, iron, or manufactured product which is a component
of such facility (upon completion of construction) was
produced in the United States (as determined under section
661 of title 49, Code of Federal Regulations).
``(ii) Steel and iron.--In the case of steel or iron,
clause (i) shall be applied in a manner consistent with
section 661.5 of title 49, Code of Federal Regulations.
``(iii) Manufactured product.--For purposes of clause (i),
the manufactured products which are components of a qualified
facility upon completion of construction shall be deemed to
have been produced in the United States if not less than the
adjusted percentage (as determined under subparagraph (C)) of
the total costs of all such manufactured products of such
facility are attributable to manufactured products (including
components) which are mined, produced, or manufactured in the
United States.
``(C) Adjusted percentage.--
``(i) In general.--Subject to subclause (ii), for purposes
of subparagraph (B)(iii), the adjusted percentage shall be 40
percent.
``(ii) Offshore wind facility.--For purposes of
subparagraph (B)(iii), in the case of a qualified facility
which is an offshore wind facility, the adjusted percentage
shall be 20 percent.
``(10) Phaseout for elective payment.--
``(A) In general.--In the case of a taxpayer making an
election under section 6417 with respect to a credit under
this section, the amount of such credit shall be replaced
with--
``(i) the value of such credit (determined without regard
to this paragraph), multiplied by
``(ii) the applicable percentage.
``(B) 100 percent applicable percentage for certain
qualified facilities.--In the case of any qualified
facility--
``(i) which satisfies the requirements under paragraph
(9)(B) with respect to the construction of such facility, or
``(ii) with a maximum net output of less than 1 megawatt
(as measured in alternating current),
the applicable percentage shall be 100 percent.
``(C) Phased domestic content requirement.--Subject to
subparagraph (D), in the case of any qualified facility which
is not described in subparagraph (B), the applicable
percentage shall be--
``(i) if construction of such facility began before January
1, 2024, 100 percent, and
``(ii) if construction of such facility began in calendar
year 2024, 90 percent.
``(D) Exception.--
``(i) In general.--For purposes of this paragraph, the
Secretary shall provide exceptions to the requirements under
this paragraph for the construction of qualified facilities
if--

``(I) the inclusion of steel, iron, or manufactured
products which are produced in the United States increases
the overall costs of construction of qualified facilities by
more than 25 percent, or
``(II) relevant steel, iron, or manufactured products are
not produced in the United States in sufficient and
reasonably available quantities or of a satisfactory quality.

``(ii) Applicable percentage.--In any case in which the
Secretary provides an exception pursuant to clause (i), the
applicable percentage shall be 100 percent.

[[Page S3946]]

``(11) Special rule for qualified facility located in
energy community.--
``(A) In general.--In the case of a qualified facility
which is located in an energy community, the credit
determined under subsection (a) (determined after the
application of paragraphs (1) through (10), without the
application of paragraph (9)) shall be increased by an amount
equal to 10 percent of the amount so determined.
``(B) Energy community.--For purposes of this paragraph,
the term `energy community' means--
``(i) a brownfield site (as defined in subparagraphs (A),
(B), and (D)(ii)(III) of section 101(39) of the Comprehensive
Environmental Response, Compensation, and Liability Act of
1980 (42 U.S.C. 9601(39))),
``(ii) an area which has (or, at any time during the period
beginning after December 31, 1999, had) significant
employment related to the extraction, processing, transport,
or storage of coal, oil, or natural gas (as determined by the
Secretary), or
``(iii) a census tract--

``(I) in which--

``(aa) after December 31, 1999, a coal mine has closed, or
``(bb) after December 31, 2009, a coal-fired electric
generating unit has been retired, or

``(II) which is directly adjoining to any census tract
described in subclause (I).''.

(h) Credit Reduced for Tax-exempt Bonds.--Section 45(b)(3)
is amended to read as follows:
``(3) Credit reduced for tax-exempt bonds.--The amount of
the credit determined under subsection (a) with respect to
any facility for any taxable year (determined after the
application of paragraphs (1) and (2)) shall be reduced by
the amount which is the product of the amount so determined
for such year and the lesser of 15 percent or a fraction--
``(A) the numerator of which is the sum, for the taxable
year and all prior taxable years, of proceeds of an issue of
any obligations the interest on which is exempt from tax
under section 103 and which is used to provide financing for
the qualified facility, and
``(B) the denominator of which is the aggregate amount of
additions to the capital account for the qualified facility
for the taxable year and all prior taxable years.
The amounts under the preceding sentence for any taxable year
shall be determined as of the close of the taxable year.''.
(i) Rounding Adjustment.--
(1) In general.--Section 45(b)(2) is amended by striking
the second sentence and inserting the following: ``If the 0.3
cent amount as increased under the preceding sentence is not
a multiple of 0.05 cent, such amount shall be rounded to the
nearest multiple of 0.05 cent. In any other case, if an
amount as increased under this paragraph is not a multiple of
0.1 cent, such amount shall be rounded to the nearest
multiple of 0.1 cent.''.
(2) Conforming amendment.--Section 45(b)(4)(A) is amended
by striking ``last sentence'' and inserting ``last two
sentences''.
(j) Hydropower.--
(1) Elimination of credit rate reduction for qualified
hydroelectric production and marine and hydrokinetic
renewable energy.--Section 45(b)(4)(A), as amended by the
preceding provisions of this section, is amended by striking
``(7), (9), or (11)'' and inserting ``or (7)''.
(2) Marine and hydrokinetic renewable energy.--Section 45
is amended--
(A) in subsection (c)(10)(A)--
(i) in clause (iii), by striking ``or'',
(ii) in clause (iv), by striking the period at the end and
inserting ``, or'' and
(iii) by adding at the end the following:
``(v) pressurized water used in a pipeline (or similar man-
made water conveyance) which is operated--

``(I) for the distribution of water for agricultural,
municipal, or industrial consumption, and
``(II) not primarily for the generation of electricity.'',
and

(B) in subsection (d)(11)(A), by striking ``150'' and
inserting ``25''.
(k) Effective Dates.--
(1) In general.--Except as provided in paragraphs (2) and
(3), the amendments made by this section shall apply to
facilities placed in service after December 31, 2021.
(2) Credit reduced for tax-exempt bonds.--The amendment
made by subsection (h) shall apply to facilities the
construction of which begins after the date of enactment of
this Act.
(3) Domestic content, phaseout, energy communities, and
hydropower.--The amendments made by subsections (g) and (j)
shall apply to facilities placed in service after December
31, 2022.

SEC. 13102. EXTENSION AND MODIFICATION OF ENERGY CREDIT.

(a) Extension of Credit.--The following provisions of
section 48 are each amended by striking ``January 1, 2024''
each place it appears and inserting ``January 1, 2025'':
(1) Subsection (a)(2)(A)(i)(II).
(2) Subsection (a)(3)(A)(ii).
(3) Subsection (c)(1)(D).
(4) Subsection (c)(2)(D).
(5) Subsection (c)(3)(A)(iv).
(6) Subsection (c)(4)(C).
(7) Subsection (c)(5)(D).
(b) Further Extension for Certain Energy Property.--Section
48(a)(3)(A)(vii) is amended by striking ``January 1, 2024''
and inserting ``January 1, 2035''.
(c) Phaseout of Credit.--Section 48(a) is amended by
striking paragraphs (6) and (7) and inserting the following
new paragraph:
``(6) Phaseout for certain energy property.--In the case of
any qualified fuel cell property, qualified small wind
property, or energy property described in clause (i) or
clause (ii) of paragraph (3)(A) the construction of which
begins after December 31, 2019, and which is placed in
service before January 1, 2022, the energy percentage
determined under paragraph (2) shall be equal to 26
percent.''.
(d) Base Energy Percentage Amount.--Section 48(a) is
amended--
(1) in paragraph (2)(A)--
(A) in clause (i), by striking ``30 percent'' and inserting
``6 percent'', and
(B) in clause (ii), by striking ``10 percent'' and
inserting ``2 percent'', and
(2) in paragraph (5)(A)(ii), by striking ``30 percent'' and
inserting ``6 percent''.
(e) 6 Percent Credit for Geothermal.--Section
48(a)(2)(A)(i)(II) is amended by striking ``paragraph
(3)(A)(i)'' and inserting ``clause (i) or (iii) of paragraph
(3)(A)''.
(f) Energy Storage Technologies; Qualified Biogas Property;
Microgrid Controllers; Extension of Other Property.--
(1) In general.--Section 48(a)(3)(A) is amended by striking
``or'' at the end of clause (vii), and by adding at the end
the following new clauses:
``(ix) energy storage technology,
``(x) qualified biogas property, or
``(xi) microgrid controllers,''.
(2) Application of 6 percent credit.--Section
48(a)(2)(A)(i) is amended by striking ``and'' at the end of
subclauses (IV) and (V) and adding at the end the following
new subclauses:

``(VI) energy storage technology,
``(VII) qualified biogas property,
``(VIII) microgrid controllers, and
``(IX) energy property described in clauses (v) and (vii)
of paragraph (3)(A), and''.

(3) Definitions.--Section 48(c) is amended by adding at the
end the following new paragraphs:
``(6) Energy storage technology.--
``(A) In general.--The term `energy storage technology'
means--
``(i) property (other than property primarily used in the
transportation of goods or individuals and not for the
production of electricity) which receives, stores, and
delivers energy for conversion to electricity (or, in the
case of hydrogen, which stores energy), and has a nameplate
capacity of not less than 5 kilowatt hours, and
``(ii) thermal energy storage property.
``(B) Modifications of certain property.--In the case of
any property which either--
``(i) was placed in service before the date of enactment of
this section and would be described in subparagraph (A)(i),
except that such property has a capacity of less than 5
kilowatt hours and is modified in a manner that such property
(after such modification) has a nameplate capacity of not
less than 5 kilowatt hours, or
``(ii) is described in subparagraph (A)(i) and is modified
in a manner that such property (after such modification) has
an increase in nameplate capacity of not less than 5 kilowatt
hours,
such property shall be treated as described in subparagraph
(A)(i) except that the basis of any existing property prior
to such modification shall not be taken into account for
purposes of this section. In the case of any property to
which this subparagraph applies, subparagraph (D) shall be
applied by substituting `modification' for `construction'.
``(C) Thermal energy storage property.--
``(i) In general.--Subject to clause (ii), for purposes of
this paragraph, the term `thermal energy storage property'
means a system which--

``(I) is directly connected to a heating, ventilation, or
air conditioning system,
``(II) removes heat from, or adds heat to, a storage medium
for subsequent use, and
``(III) provides energy for the heating or cooling of the
interior of a residential or commercial building.

``(ii) Exclusion.--The term `thermal energy storage
property' shall not include--

``(I) a swimming pool,
``(II) combined heat and power system property, or
``(III) a building or its structural components.

``(D) Termination.--The term `energy storage technology'
shall not include any property the construction of which
begins after December 31, 2024.
``(7) Qualified biogas property.--
``(A) In general.--The term `qualified biogas property'
means property comprising a system which--
``(i) converts biomass (as defined in section 45K(c)(3), as
in effect on the date of enactment of this paragraph) into a
gas which--

``(I) consists of not less than 52 percent methane by
volume, or
``(II) is concentrated by such system into a gas which
consists of not less than 52 percent methane, and

``(ii) captures such gas for sale or productive use, and
not for disposal via combustion.
``(B) Inclusion of cleaning and conditioning property.--The
term `qualified biogas property' includes any property which
is part of such system which cleans or conditions such gas.
``(C) Termination.--The term `qualified biogas property'
shall not include any property the construction of which
begins after December 31, 2024.
``(8) Microgrid controller.--

[[Page S3947]]

``(A) In general.--The term `microgrid controller' means
equipment which is--
``(i) part of a qualified microgrid, and
``(ii) designed and used to monitor and control the energy
resources and loads on such microgrid.
``(B) Qualified microgrid.--The term `qualified microgrid'
means an electrical system which--
``(i) includes equipment which is capable of generating not
less than 4 kilowatts and not greater than 20 megawatts of
electricity,
``(ii) is capable of operating--

``(I) in connection with the electrical grid and as a
single controllable entity with respect to such grid, and
``(II) independently (and disconnected) from such grid, and

``(iii) is not part of a bulk-power system (as defined in
section 215 of the Federal Power Act (16 U.S.C. 824o)).
``(C) Termination.--The term `microgrid controller' shall
not include any property the construction of which begins
after December 31, 2024.''.
(4) Denial of double benefit for qualified biogas
property.--Section 45(e) is amended by adding at the end the
following new paragraph:
``(12) Coordination with energy credit for qualified biogas
property.--The term `qualified facility' shall not include
any facility which produces electricity from gas produced by
qualified biogas property (as defined in section 48(c)(7)) if
a credit is allowed under section 48 with respect to such
property for the taxable year or any prior taxable year.''.
(5) Phaseout of certain energy property.--Section 48(a), as
amended by the preceding provisions of this Act, is amended
by adding at the end the following new paragraph:
``(7) Phaseout for certain energy property.--In the case of
any energy property described in clause (vii) of paragraph
(3)(A), the energy percentage determined under paragraph (2)
shall be equal to--
``(A) in the case of any property the construction of which
begins before January 1, 2033, and which is placed in service
after December 31, 2021, 6 percent,
``(B) in the case of any property the construction of which
begins after December 31, 2032, and before January 1, 2034,
5.2 percent, and
``(C) in the case of any property the construction of which
begins after December 31, 2033, and before January 1, 2035,
4.4 percent.''.
(6) Public utility property.--Paragraph (2) of section
50(d) is amended--
(A) by adding after the first sentence the following new
sentence: ``At the election of a taxpayer, this paragraph
shall not apply to any energy storage technology (as defined
in section 48(c)(6)), provided--'', and
(B) by adding the following new subparagraphs:
``(A) no election under this paragraph shall be permitted
if the making of such election is prohibited by a State or
political subdivision thereof, by any agency or
instrumentality of the United States, or by a public service
or public utility commission or other similar body of any
State or political subdivision that regulates public
utilities as described in section 7701(a)(33)(A),
``(B) an election under this paragraph shall be made
separately with respect to each energy storage technology by
the due date (including extensions) of the Federal tax return
for the taxable year in which the energy storage technology
is placed in service by the taxpayer, and once made, may be
revoked only with the consent of the Secretary, and
``(C) an election shall not apply with respect to any
energy storage technology if such energy storage technology
has a maximum capacity equal to or less than 500 kilowatt
hours.''.
(g) Fuel Cells Using Electromechanical Processes.--
(1) In general.--Section 48(c)(1) is amended--
(A) in subparagraph (A)(i)--
(i) by inserting ``or electromechanical'' after
``electrochemical'', and
(ii) by inserting ``(1 kilowatt in the case of a fuel cell
power plant with a linear generator assembly)'' after ``0.5
kilowatt'', and
(B) in subparagraph (C)--
(i) by inserting ``, or linear generator assembly,'' after
``a fuel cell stack assembly'', and
(ii) by inserting ``or electromechanical'' after
``electrochemical''.
(2) Linear generator assembly limitation.--Section 48(c)(1)
is amended by redesignating subparagraph (D) as subparagraph
(E) and by inserting after subparagraph (C) the following new
subparagraph:
``(D) Linear generator assembly.--The term `linear
generator assembly' does not include any assembly which
contains rotating parts.''.
(h) Dynamic Glass.--Section 48(a)(3)(A)(ii) is amended by
inserting ``, or electrochromic glass which uses electricity
to change its light transmittance properties in order to heat
or cool a structure,'' after ``sunlight''.
(i) Coordination With Low Income Housing Tax Credit.--
Paragraph (3) of section 50(c) is amended--
(1) by striking ``and'' at the end of subparagraph (A),
(2) by striking the period at the end of subparagraph (B)
and inserting ``, and'', and
(3) by adding at the end the following new subparagraph:
``(C) paragraph (1) shall not apply for purposes of
determining eligible basis under section 42.''.
(j) Interconnection Property.--Section 48(a), as amended by
the preceding provisions of this Act, is amended by adding at
the end the following new paragraph:
``(8) Interconnection property.--
``(A) In general.--For purposes of determining the credit
under subsection (a), energy property shall include amounts
paid or incurred by the taxpayer for qualified
interconnection property in connection with the installation
of energy property (as defined in paragraph (3)) which has a
maximum net output of not greater than 5 megawatts (as
measured in alternating current), to provide for the
transmission or distribution of the electricity produced or
stored by such property, and which are properly chargeable to
the capital account of the taxpayer.
``(B) Qualified interconnection property.--The term
`qualified interconnection property' means, with respect to
an energy project which is not a microgrid controller, any
tangible property--
``(i) which is part of an addition, modification, or
upgrade to a transmission or distribution system which is
required at or beyond the point at which the energy project
interconnects to such transmission or distribution system in
order to accommodate such interconnection,
``(ii) either--

``(I) which is constructed, reconstructed, or erected by
the taxpayer, or
``(II) for which the cost with respect to the construction,
reconstruction, or erection of such property is paid or
incurred by such taxpayer, and

``(iii) the original use of which, pursuant to an
interconnection agreement, commences with a utility.
``(C) Interconnection agreement.--The term `interconnection
agreement' means an agreement with a utility for the purposes
of interconnecting the energy property owned by such taxpayer
to the transmission or distribution system of such utility.
``(D) Utility.--For purposes of this paragraph, the term
`utility' means the owner or operator of an electrical
transmission or distribution system which is subject to the
regulatory authority of a State or political subdivision
thereof, any agency or instrumentality of the United States,
a public service or public utility commission or other
similar body of any State or political subdivision thereof,
or the governing or ratemaking body of an electric
cooperative.
``(E) Special rule for interconnection property.--In the
case of expenses paid or incurred for interconnection
property, amounts otherwise chargeable to capital account
with respect to such expenses shall be reduced under rules
similar to the rules of section 50(c).''.
(k) Energy Projects, Wage Requirements, and Apprenticeship
Requirements.--Section 48(a), as amended by the preceding
provisions of this Act, is amended by adding at the end the
following new paragraphs:
``(9) Increased credit amount for energy projects.--
``(A) In general.--
``(i) Rule.--In the case of any energy project which
satisfies the requirements of subparagraph (B), the amount of
the credit determined under this subsection (determined after
the application of paragraphs (1) through (8) and without
regard to this clause) shall be equal to such amount
multiplied by 5.
``(ii) Energy project defined.--For purposes of this
subsection, the term `energy project' means a project
consisting of one or more energy properties that are part of
a single project.
``(B) Project requirements.--A project meets the
requirements of this subparagraph if it is one of the
following:
``(i) A project with a maximum net output of less than 1
megawatt (as measured in alternating current) of electrical
or thermal energy.
``(ii) A project the construction of which begins before
the date that is 60 days after the Secretary publishes
guidance with respect to the requirements of paragraphs
(10)(A) and (11).
``(iii) A project which satisfies the requirements of
paragraphs (10)(A) and (11).
``(10) Prevailing wage requirements.--
``(A) In general.--The requirements described in this
subparagraph with respect to any energy project are that the
taxpayer shall ensure that any laborers and mechanics
employed by contractors and subcontractors in--
``(i) the construction of such energy project, and
``(ii) for the 5-year period beginning on the date such
project is originally placed in service, the alteration or
repair of such project,
shall be paid wages at rates not less than the prevailing
rates for construction, alteration, or repair of a similar
character in the locality in which such project is located as
most recently determined by the Secretary of Labor, in
accordance with subchapter IV of chapter 31 of title 40,
United States Code. Subject to subparagraph (C), for purposes
of any determination under paragraph (9)(A)(i) for the
taxable year in which the energy project is placed in
service, the taxpayer shall be deemed to satisfy the
requirement under clause (ii) at the time such project is
placed in service.
``(B) Correction and penalty related to failure to satisfy
wage requirements.--Rules similar to the rules of section
45(b)(7)(B) shall apply.

[[Page S3948]]

``(C) Recapture.--The Secretary shall, by regulations or
other guidance, provide for recapturing the benefit of any
increase in the credit allowed under this subsection by
reason of this paragraph with respect to any project which
does not satisfy the requirements under subparagraph (A)
(after application of subparagraph (B)) for the period
described in clause (ii) of subparagraph (A) (but which does
not cease to be investment credit property within the meaning
of section 50(a)). The period and percentage of such
recapture shall be determined under rules similar to the
rules of section 50(a).
``(11) Apprenticeship requirements.--Rules similar to the
rules of section 45(b)(8) shall apply.''.
(l) Domestic Content; Phaseout for Elective Payment.--
Section 48(a), as amended by the preceding provisions of this
Act, is amended by adding at the end the following new
paragraphs:
``(12) Domestic content bonus credit amount.--
``(A) In general.--In the case of any energy project which
satisfies the requirement under subparagraph (B), for
purposes of applying paragraph (2) with respect to such
property, the energy percentage shall be increased by the
applicable credit rate increase.
``(B) Requirement.--Rules similar to the rules of section
45(b)(9)(B) shall apply.
``(C) Applicable credit rate increase.--For purposes of
subparagraph (A), the applicable credit rate increase shall
be--
``(i) in the case of an energy project which does not
satisfy the requirements of paragraph (9)(B), 2 percentage
points, and
``(ii) in the case of an energy project which satisfies the
requirements of paragraph (9)(B), 10 percentage points.
``(13) Phaseout for elective payment.--In the case of a
taxpayer making an election under section 6417 with respect
to a credit under this section, rules similar to the rules of
section 45(b)(10) shall apply.''.
(m) Special Rule for Property Financed by Tax-exempt
Bonds.--Section 48(a)(4) is amended to read as follows:
``(4) Special rule for property financed by tax-exempt
bonds.--Rules similar to the rule under section 45(b)(3)
shall apply for purposes of this section.''.
(n) Treatment of Certain Contracts Involving Energy
Storage.--Section 7701(e) is amended--
(1) in paragraph (3)--
(A) in subparagraph (A)(i), by striking ``or'' at the end
of subclause (II), by striking ``and'' at the end of
subclause (III) and inserting ``or'', and by adding at the
end the following new subclause:

``(IV) the operation of a storage facility, and'', and

(B) by adding at the end the following new subparagraph:
``(F) Storage facility.--For purposes of subparagraph (A),
the term `storage facility' means a facility which uses
energy storage technology within the meaning of section
48(c)(6).'', and
(2) in paragraph (4), by striking ``or water treatment
works facility'' and inserting ``water treatment works
facility, or storage facility''.
(o) Increase in Credit Rate for Energy Communities.--
Section 48(a), as amended by the preceding provisions of this
Act, is amended by adding at the end the following new
paragraph:
``(14) Increase in credit rate for energy communities.--
``(A) In general.--In the case of any energy project that
is placed in service within an energy community (as defined
in section 45(b)(11)(B), as applied by substituting `energy
project' for `qualified facility' each place it appears), for
purposes of applying paragraph (2) with respect to energy
property which is part of such project, the energy percentage
shall be increased by the applicable credit rate increase.
``(B) Applicable credit rate increase.--For purposes of
subparagraph (A), the applicable credit rate increase shall
be equal to--
``(i) in the case of any energy project which does not
satisfy the requirements of paragraph (9)(B), 2 percentage
points, and
``(ii) in the case of any energy project which satisfies
the requirements of paragraph (9)(B), 10 percentage
points.''.
(p) Regulations.--Section 48(a), as amended by the
preceding provisions of this Act, is amended by adding at the
end the following new paragraph:
``(15) Regulations and guidance.--The Secretary shall issue
such regulations or other guidance as the Secretary
determines necessary or appropriate to carry out the purposes
of this subsection, including regulations or other guidance
which provides for requirements for recordkeeping or
information reporting for purposes of administering the
requirements of this subsection.''.
(q) Effective Dates.--
(1) In general.--Except as provided in paragraphs (2) and
(3), the amendments made by this section shall apply to
property placed in service after December 31, 2021.
(2) Other property.--The amendments made by subsections
(f), (g), (h), (i), (j), (l), (n), and (o) shall apply to
property placed in service after December 31, 2022.
(3) Special rule for property financed by tax-exempt
bonds.--The amendments made by subsection (m) shall apply to
property the construction of which begins after the date of
enactment of this Act.

SEC. 13103. INCREASE IN ENERGY CREDIT FOR SOLAR AND WIND
FACILITIES PLACED IN SERVICE IN CONNECTION WITH
LOW-INCOME COMMUNITIES.

(a) In General.--Section 48 is amended by adding at the end
the following new subsection:
``(e) Special Rules for Certain Solar and Wind Facilities
Placed in Service in Connection With Low-income
Communities.--
``(1) In general.--In the case of any qualified solar and
wind facility with respect to which the Secretary makes an
allocation of environmental justice solar and wind capacity
limitation under paragraph (4)--
``(A) the energy percentage otherwise determined under
paragraph (2) or (5) of subsection (a) with respect to any
eligible property which is part of such facility shall be
increased by--
``(i) in the case of a facility described in subclause (I)
of paragraph (2)(A)(iii) and not described in subclause (II)
of such paragraph, 10 percentage points, and
``(ii) in the case of a facility described in subclause
(II) of paragraph (2)(A)(iii), 20 percentage points, and
``(B) the increase in the credit determined under
subsection (a) by reason of this subsection for any taxable
year with respect to all property which is part of such
facility shall not exceed the amount which bears the same
ratio to the amount of such increase (determined without
regard to this subparagraph) as--
``(i) the environmental justice solar and wind capacity
limitation allocated to such facility, bears to
``(ii) the total megawatt nameplate capacity of such
facility, as measured in direct current.
``(2) Qualified solar and wind facility.--For purposes of
this subsection--
``(A) In general.--The term `qualified solar and wind
facility' means any facility--
``(i) which generates electricity solely from property
described in section 45(d)(1) or in clause (i) or (vi) of
subsection (a)(3)(A),
``(ii) which has a maximum net output of less than 5
megawatts (as measured in alternating current), and
``(iii) which--

``(I) is located in a low-income community (as defined in
section 45D(e)) or on Indian land (as defined in section
2601(2) of the Energy Policy Act of 1992 (25 U.S.C.
3501(2))), or
``(II) is part of a qualified low-income residential
building project or a qualified low-income economic benefit
project.

``(B) Qualified low-income residential building project.--A
facility shall be treated as part of a qualified low-income
residential building project if--
``(i) such facility is installed on a residential rental
building which participates in a covered housing program (as
defined in section 41411(a) of the Violence Against Women Act
of 1994 (34 U.S.C. 12491(a)(3)), a housing assistance program
administered by the Department of Agriculture under title V
of the Housing Act of 1949, a housing program administered by
a tribally designated housing entity (as defined in section
4(22) of the Native American Housing Assistance and Self-
Determination Act of 1996 (25 U.S.C. 4103(22))) or such other
affordable housing programs as the Secretary may provide, and
``(ii) the financial benefits of the electricity produced
by such facility are allocated equitably among the occupants
of the dwelling units of such building.
``(C) Qualified low-income economic benefit project.--A
facility shall be treated as part of a qualified low-income
economic benefit project if at least 50 percent of the
financial benefits of the electricity produced by such
facility are provided to households with income of--
``(i) less than 200 percent of the poverty line (as defined
in section 36B(d)(3)(A)) applicable to a family of the size
involved, or
``(ii) less than 80 percent of area median gross income (as
determined under section 142(d)(2)(B)).
``(D) Financial benefit.--For purposes of subparagraphs (B)
and (C), electricity acquired at a below-market rate shall
not fail to be taken into account as a financial benefit.
``(3) Eligible property.--For purposes of this section, the
term `eligible property' means energy property which--
``(A) is part of a facility described in section 45(d)(1)
for which an election was made under subsection (a)(5), or
``(B) is described in clause (i) or (vi) of subsection
(a)(3)(A),
including energy storage technology (as described in
subsection (a)(3)(A)(ix)) installed in connection with such
energy property.
``(4) Allocations.--
``(A) In general.--Not later than 180 days after the date
of enactment of this subsection, the Secretary shall
establish a program to allocate amounts of environmental
justice solar and wind capacity limitation to qualified solar
and wind facilities. In establishing such program and to
carry out the purposes of this subsection, the Secretary
shall provide procedures to allow for an efficient allocation
process, including, when determined appropriate,
consideration of multiple projects in a single application if
such projects will be placed in service by a single taxpayer.
``(B) Limitation.--The amount of environmental justice
solar and wind capacity limitation allocated by the Secretary
under subparagraph (A) during any calendar year shall not
exceed the annual capacity limitation with respect to such
year.
``(C) Annual capacity limitation.--For purposes of this
paragraph, the term `annual

[[Page S3949]]

capacity limitation' means 1.8 gigawatts of direct current
capacity for each of calendar years 2023 and 2024, and zero
thereafter.
``(D) Carryover of unused limitation.--If the annual
capacity limitation for any calendar year exceeds the
aggregate amount allocated for such year under this
paragraph, such limitation for the succeeding calendar year
shall be increased by the amount of such excess. No amount
may be carried under the preceding sentence to any calendar
year after 2024 except as provided in section
48D(h)(4)(D)(ii).
``(E) Placed in service deadline.--
``(i) In general.--Paragraph (1) shall not apply with
respect to any property which is placed in service after the
date that is 4 years after the date of the allocation with
respect to the facility of which such property is a part.
``(ii) Application of carryover.--Any amount of
environmental justice solar and wind capacity limitation
which expires under clause (i) during any calendar year shall
be taken into account as an excess described in subparagraph
(D) (or as an increase in such excess) for such calendar
year, subject to the limitation imposed by the last sentence
of such subparagraph.
``(5) Recapture.--The Secretary shall, by regulations or
other guidance, provide for recapturing the benefit of any
increase in the credit allowed under subsection (a) by reason
of this subsection with respect to any property which ceases
to be property eligible for such increase (but which does not
cease to be investment credit property within the meaning of
section 50(a)). The period and percentage of such recapture
shall be determined under rules similar to the rules of
section 50(a). To the extent provided by the Secretary, such
recapture may not apply with respect to any property if,
within 12 months after the date the taxpayer becomes aware
(or reasonably should have become aware) of such property
ceasing to be property eligible for such increase, the
eligibility of such property for such increase is restored.
The preceding sentence shall not apply more than once with
respect to any facility.''.
(b) Effective Date.--The amendments made by this section
shall take effect on January 1, 2023.

SEC. 13104. EXTENSION AND MODIFICATION OF CREDIT FOR CARBON
OXIDE SEQUESTRATION.

(a) Modification of Carbon Oxide Capture Requirements.--
(1) In general.--Section 45Q(d) is amended to read as
follows:
``(d) Qualified Facility.--For purposes of this section,
the term `qualified facility' means any industrial facility
or direct air capture facility--
``(1) the construction of which begins before January 1,
2033, and either--
``(A) construction of carbon capture equipment begins
before such date, or
``(B) the original planning and design for such facility
includes installation of carbon capture equipment, and
``(2) which--
``(A) in the case of a direct air capture facility,
captures not less than 1,000 metric tons of qualified carbon
oxide during the taxable year,
``(B) in the case of an electricity generating facility--
``(i) captures not less than 18,750 metric tons of
qualified carbon oxide during the taxable year, and
``(ii) with respect to any carbon capture equipment for the
applicable electric generating unit at such facility, has a
capture design capacity of not less than 75 percent of the
baseline carbon oxide production of such unit, or
``(C) in the case of any other facility, captures not less
than 12,500 metric tons of qualified carbon oxide during the
taxable year.''.
(2) Definitions.--
(A) In general.--Section 45Q(e) is amended--
(i) by redesignating paragraphs (1) through (3) as
paragraphs (3) through (5), respectively, and
(ii) by inserting after ``For purposes of this section--''
the following new paragraphs:
``(1) Applicable electric generating unit.--The term
`applicable electric generating unit' means the principal
electric generating unit for which the carbon capture
equipment is originally planned and designed.
``(2) Baseline carbon oxide production.--
``(A) In general.--The term `baseline carbon oxide
production' means either of the following:
``(i) In the case of an applicable electric generating unit
which was originally placed in service more than 1 year prior
to the date on which construction of the carbon capture
equipment begins, the average annual carbon oxide production,
by mass, from such unit during the shorter of either the
following periods:

``(I) The period beginning on the date such unit was placed
in service and ending on the date on which construction of
such equipment began.
``(II) The 6-year period preceding the date on which
construction of such equipment began.

``(ii) In the case of an applicable electric generating
unit which--

``(I) as of the date on which construction of the carbon
capture equipment begins, is not yet placed in service, or
``(II) was placed in service during the 1-year period prior
to the date on which construction of the carbon capture
equipment begins,

the designed annual carbon oxide production, by mass, as
determined based on an assumed capacity factor of 60 percent.
``(B) Capacity factor.--The term `capacity factor' means
the ratio (expressed as a percentage) of the actual electric
output from the applicable electric generating unit to the
potential electric output from such unit.''.
(B) Conforming amendment.--Section 142(o)(1)(B) is amended
by striking ``section 45Q(e)(1)'' and inserting ``section
45Q(e)(3)''.
(b) Modified Applicable Dollar Amount.--Section
45Q(b)(1)(A) is amended--
(1) in clause (i)--
(A) in subclause (I), by striking ``the dollar amount'' and
all that follows through ``such period'' and inserting
``$17'', and
(B) in subclause (II), by striking ``the dollar amount''
and all that follows through ``such period'' and inserting
``$12'', and
(2) in clause (ii)--
(A) in subclause (I), by striking ``$50'' and inserting
``$17'', and
(B) in subclause (II), by striking ``$35'' and inserting
``$12''.
(c) Determination of Applicable Dollar Amount.--
(1) In general.--Section 45Q(b)(1), as amended by the
preceding provisions of this Act, is amended--
(A) by redesignating subparagraph (B) as subparagraph (D),
and
(B) by inserting after subparagraph (A) the following new
subparagraphs:
``(B) Special rule for direct air capture facilities.--In
the case of any qualified facility described in subsection
(d)(2)(A) which is placed in service after December 31, 2022,
the applicable dollar amount shall be an amount equal to the
applicable dollar amount otherwise determined with respect to
such qualified facility under subparagraph (A), except that
such subparagraph shall be applied--
``(i) by substituting `$36' for `$17' each place it
appears, and
``(ii) by substituting `$26' for `$12' each place it
appears.
``(C) Applicable dollar amount for additional carbon
capture equipment.--In the case of any qualified facility
which is placed in service before January 1, 2023, if any
additional carbon capture equipment is installed at such
facility and such equipment is placed in service after
December 31, 2022, the applicable dollar amount shall be an
amount equal to the applicable dollar amount otherwise
determined under this paragraph, except that subparagraph (B)
shall be applied--
``(i) by substituting `before January 1, 2023' for `after
December 31, 2022', and
``(ii) by substituting `the additional carbon capture
equipment installed at such qualified facility' for `such
qualified facility'.''.
(2) Conforming amendments.--
(A) Section 45Q(b)(1)(A) is amended by striking ``The
applicable dollar amount'' and inserting ``Except as provided
in subparagraph (B) or (C), the applicable dollar amount''.
(B) Section 45Q(b)(1)(D), as redesignated by paragraph
(1)(A), is amended by striking ``subparagraph (A)'' and
inserting ``subparagraph (A), (B), or (C)''.
(d) Installation of Additional Carbon Capture Equipment on
Certain Facilities.--
(1) In general.--Section 45Q(b) is amended by redesignating
paragraph (3) as paragraph (4) and by inserting after
paragraph (2) the following new paragraph:
``(3) Installation of additional carbon capture equipment
on certain facilities.--In the case of a qualified facility
described in paragraph (1)(C), the amount of qualified carbon
oxide which is captured by the taxpayer for purposes of
subsection (a) shall be determined pursuant to paragraph (2),
as applied--
``(A) in the matter preceding subparagraph (A)--
``(i) by substituting `January 1, 2023' for `the date of
the enactment of the Bipartisan Budget Act of 2018', and
``(ii) by substituting `after December 31, 2022' for `on or
after the date of the enactment of such Act', and
``(B) in subparagraph (A)(ii), by substituting `December
31, 2022' for `the day before the date of the enactment of
the Bipartisan Budget Act of 2018'.''.
(2) Conforming amendment.--Section 45Q(b)(2) is amended by
striking ``In the case'' and inserting ``Subject to paragraph
(3), in the case''.
(e) Wage and Apprenticeship Requirements.--Section 45Q is
amended by redesignating subsection (h) as subsection (i) and
inserting after subsection (g) following new subsection:
``(h) Increased Credit Amount for Qualified Facilities and
Carbon Capture Equipment.--
``(1) In general.--In the case of any qualified facility or
any carbon capture equipment which satisfy the requirements
of paragraph (2), the amount of the credit determined under
subsection (a) shall be equal to such amount (determined
without regard to this sentence) multiplied by 5.
``(2) Requirements.--The requirements described in this
paragraph are that--
``(A) with respect to any qualified facility the
construction of which begins on or after the date that is 60
days after the Secretary publishes guidance with respect to
the requirements of paragraphs (3)(A) and (4), as well as any
carbon capture equipment placed in service at such facility--

[[Page S3950]]

``(i) subject to subparagraph (B) of paragraph (3), the
taxpayer satisfies the requirements under subparagraph (A) of
such paragraph with respect to such facility and equipment,
and
``(ii) the taxpayer satisfies the requirements under
paragraph (4) with respect to the construction of such
facility and equipment,
``(B) with respect to any carbon capture equipment the
construction of which begins after the date that is 60 days
after the Secretary publishes guidance with respect to the
requirements of paragraphs (3)(A) and (4), and which is
installed at a qualified facility the construction of which
began prior to such date--
``(i) subject to subparagraph (B) of paragraph (3), the
taxpayer satisfies the requirements under subparagraph (A) of
such paragraph with respect to such equipment, and
``(ii) the taxpayer satisfies the requirements under
paragraph (4) with respect to the construction of such
equipment, or
``(C) the construction of carbon capture equipment begins
prior to the date that is 60 days after the Secretary
publishes guidance with respect to the requirements of
paragraphs (3)(A) and (4), and such equipment is installed at
a qualified facility the construction of which begins prior
to such date.
``(3) Prevailing wage requirements.--
``(A) In general.--The requirements described in this
subparagraph with respect to any qualified facility and any
carbon capture equipment placed in service at such facility
are that the taxpayer shall ensure that any laborers and
mechanics employed by contractors and subcontractors in--
``(i) the construction of such facility or equipment, and
``(ii) with respect to any taxable year, for any portion of
such taxable year which is within the period described in
paragraph (3)(A) or (4)(A) of subsection (a), the alteration
or repair of such facility or such equipment,
shall be paid wages at rates not less than the prevailing
rates for construction, alteration, or repair of a similar
character in the locality in which such facility and
equipment are located as most recently determined by the
Secretary of Labor, in accordance with subchapter IV of
chapter 31 of title 40, United States Code. For purposes of
determining an increased credit amount under paragraph (1)
for a taxable year, the requirement under clause (ii) of this
subparagraph is applied to such taxable year in which the
alteration or repair of qualified facility occurs.
``(B) Correction and penalty related to failure to satisfy
wage requirements.--Rules similar to the rules of section
45(b)(7)(B) shall apply.
``(4) Apprenticeship requirements.--Rules similar to the
rules of section 45(b)(8) shall apply.
``(5) Regulations and guidance.--The Secretary shall issue
such regulations or other guidance as the Secretary
determines necessary or appropriate to carry out the purposes
of this subsection, including regulations or other guidance
which provides for requirements for recordkeeping or
information reporting for purposes of administering the
requirements of this subsection.''.
(f) Credit Reduced for Tax-exempt Bonds.--Section 45Q(f) is
amended--
(1) by striking the second paragraph (3), as added at the
end of such section by section 80402(e) of the Infrastructure
Investment and Jobs Act (Public Law 117-58), and
(2) by adding at the end the following new paragraph:
``(8) Credit reduced for tax-exempt bonds.--Rules similar
to the rule under section 45(b)(3) shall apply for purposes
of this section.''.
(g) Application of Section for Certain Carbon Capture
Equipment.--Section 45Q(g) is amended by inserting ``the
earlier of January 1, 2023, and'' before ``the end of the
calendar year''.
(h) Election.--Section 45Q(f), as amended by subsection
(f), is amended by adding at the end the following new
paragraph:
``(9) Election.--For purposes of paragraphs (3) and (4) of
subsection (a), a person described in paragraph (3)(A)(ii)
may elect, at such time and in such manner as the Secretary
may prescribe, to have the 12-year period begin on the first
day of the first taxable year in which a credit under this
section is claimed with respect to carbon capture equipment
which is originally placed in service at a qualified facility
on or after the date of the enactment of the Bipartisan
Budget Act of 2018 (after application of subsection (f)(6),
where applicable) if--
``(A) no taxpayer claimed a credit under this section with
respect to such carbon capture equipment for any prior
taxable year,
``(B) the qualified facility at which such carbon capture
equipment is placed in service is located in an area affected
by a federally-declared disaster (as defined by section
165(i)(5)(A)) after the carbon capture equipment is
originally placed in service, and
``(C) such federally-declared disaster results in a
cessation of the operation of the qualified facility or the
carbon capture equipment after such equipment is originally
placed in service.''.
(i) Regulations for Baseline Carbon Oxide Production.--
Subsection (i) of section 45Q, as redesignated by subsection
(e), is amended--
(1) in paragraph (1), by striking ``and'',
(2) in paragraph (2), by striking the period at the end and
inserting ``, and'', and
(3) by adding at the end the following new paragraph:
``(3) for purposes of subsection (d)(2)(B)(ii), adjust the
baseline carbon oxide production with respect to any
applicable electric generating unit at any electricity
generating facility if--
``(A) after the date on which the carbon capture equipment
is placed in service, modifications are made to such unit
which result in a significant increase or decrease in carbon
oxide production, or
``(B) for any reason other than a modification described in
subparagraph (A), there is a significant increase or decrease
in carbon oxide production with respect to such unit.''.
(j) Effective Dates.--
(1) In general.--Except as provided in paragraphs (2), (3),
and (4), the amendments made by this section shall apply to
facilities or equipment placed in service after December 31,
2022.
(2) Modification of carbon oxide capture requirements.--The
amendments made by subsection (a) shall apply to facilities
or equipment the construction of which begins after the date
of enactment of this Act.
(3) Application of section for certain carbon capture
equipment.--The amendments made by subsection (g) shall take
effect on the date of enactment of this Act.
(4) Election.--The amendments made by subsection (h) shall
apply to carbon oxide captured and disposed of after December
31, 2021.

SEC. 13105. ZERO-EMISSION NUCLEAR POWER PRODUCTION CREDIT.

(a) In General.--Subpart D of part IV of subchapter A of
chapter 1 is amended by adding at the end the following new
section:

``SEC. 45U. ZERO-EMISSION NUCLEAR POWER PRODUCTION CREDIT.

``(a) Amount of Credit.--For purposes of section 38, the
zero-emission nuclear power production credit for any taxable
year is an amount equal to the amount by which--
``(1) the product of--
``(A) 0.3 cents, multiplied by
``(B) the kilowatt hours of electricity--
``(i) produced by the taxpayer at a qualified nuclear power
facility, and
``(ii) sold by the taxpayer to an unrelated person during
the taxable year, exceeds
``(2) the reduction amount for such taxable year.
``(b) Definitions.--
``(1) Qualified nuclear power facility.--For purposes of
this section, the term `qualified nuclear power facility'
means any nuclear facility--
``(A) which is owned by the taxpayer and which uses nuclear
energy to produce electricity,
``(B) which is not an advanced nuclear power facility as
defined in subsection (d)(1) of section 45J, and
``(C) which is placed in service before the date of the
enactment of this section.
``(2) Reduction amount.--
``(A) In general.--For purposes of this section, the term
`reduction amount' means, with respect to any qualified
nuclear power facility for any taxable year, the amount equal
to the lesser of--
``(i) the amount determined under subsection (a)(1), or
``(ii) the amount equal to 80 percent of the excess of--

``(I) subject to subparagraph (B), the gross receipts from
any electricity produced by such facility (including any
electricity services or products provided in conjunction with
the electricity produced by such facility) and sold to an
unrelated person during such taxable year, over
``(II) the amount equal to the product of--

``(aa) 2.5 cents, multiplied by
``(bb) the amount determined under subsection (a)(1)(B).
``(B) Treatment of certain receipts.--
``(i) In general.--The amount determined under subparagraph
(A)(ii)(I) shall include any amount received by the taxpayer
during the taxable year with respect to the qualified nuclear
power facility from a zero-emission credit program.
``(ii) Zero-emission credit program.--For purposes of this
subparagraph, the term `zero-emission credit program' means
any payments with respect to a qualified nuclear power
facility as a result of any Federal, State or local
government program for, in whole or in part, the zero-
emission, zero-carbon, or air quality attributes of any
portion of the electricity produced by such facility.
``(3) Electricity.--For purposes of this section, the term
`electricity' means the energy produced by a qualified
nuclear power facility from the conversion of nuclear fuel
into electric power.
``(c) Other Rules.--
``(1) Inflation adjustment.--The 0.3 cent amount in
subsection (a)(1)(A) and the 2.5 cent amount in subsection
(b)(2)(A)(ii)(II)(aa) shall each be adjusted by multiplying
such amount by the inflation adjustment factor (as determined
under section 45(e)(2), as applied by substituting `calendar
year 2023' for `calendar year 1992' in subparagraph (B)
thereof) for the calendar year in which the sale occurs. If
the 0.3 cent amount as increased under this paragraph is not
a multiple of 0.05 cent, such amount shall be rounded to the
nearest multiple of 0.05 cent. If the 2.5 cent amount as
increased under this paragraph is not a multiple of 0.1 cent,
such amount shall be rounded to the nearest multiple of 0.1
cent.
``(2) Special rules.--Rules similar to the rules of
paragraphs (1), (3), (4), and (5) of section 45(e) shall
apply for purposes of this section.
``(d) Wage Requirements.--

[[Page S3951]]

``(1) Increased credit amount for qualified nuclear power
facilities.--In the case of any qualified nuclear power
facility which satisfies the requirements of paragraph
(2)(A), the amount of the credit determined under subsection
(a) shall be equal to such amount (as determined without
regard to this sentence) multiplied by 5.
``(2) Prevailing wage requirements.--
``(A) In general.--The requirements described in this
subparagraph with respect to any qualified nuclear power
facility are that the taxpayer shall ensure that any laborers
and mechanics employed by contractors and subcontractors in
the alteration or repair of such facility shall be paid wages
at rates not less than the prevailing rates for alteration or
repair of a similar character in the locality in which such
facility is located as most recently determined by the
Secretary of Labor, in accordance with subchapter IV of
chapter 31 of title 40, United States Code.
``(B) Correction and penalty related to failure to satisfy
wage requirements.--Rules similar to the rules of section
45(b)(7)(B) shall apply.
``(3) Regulations and guidance.--The Secretary shall issue
such regulations or other guidance as the Secretary
determines necessary or appropriate to carry out the purposes
of this subsection, including regulations or other guidance
which provides for requirements for recordkeeping or
information reporting for purposes of administering the
requirements of this subsection.
``(e) Termination.--This section shall not apply to taxable
years beginning after December 31, 2032.''.
(b) Conforming Amendments.--
(1) Section 38(b) is amended--
(A) in paragraph (32), by striking ``plus'' at the end,
(B) in paragraph (33), by striking the period at the end
and inserting ``, plus'', and
(C) by adding at the end the following new paragraph:
``(34) the zero-emission nuclear power production credit
determined under section 45U(a).''.
(2) The table of sections for subpart D of part IV of
subchapter A of chapter 1 is amended by adding at the end the
following new item:

``Sec. 45U. Zero-emission nuclear power production credit.''.
(c) Effective Date.--This section shall apply to
electricity produced and sold after December 31, 2023, in
taxable years beginning after such date.

PART 2--CLEAN FUELS

SEC. 13201. EXTENSION OF INCENTIVES FOR BIODIESEL, RENEWABLE
DIESEL AND ALTERNATIVE FUELS.

(a) Biodiesel and Renewable Diesel Credit.--Section 40A(g)
is amended by striking ``December 31, 2022'' and inserting
``December 31, 2024''.
(b) Biodiesel Mixture Credit.--
(1) In general.--Section 6426(c)(6) is amended by striking
``December 31, 2022'' and inserting ``December 31, 2024''.
(2) Fuels not used for taxable purposes.--Section
6427(e)(6)(B) is amended by striking ``December 31, 2022''
and inserting ``December 31, 2024''.
(c) Alternative Fuel Credit.--Section 6426(d)(5) is amended
by striking ``December 31, 2021'' and inserting ``December
31, 2024''.
(d) Alternative Fuel Mixture Credit.--Section 6426(e)(3) is
amended by striking ``December 31, 2021'' and inserting
``December 31, 2024''.
(e) Payments for Alternative Fuels.--Section 6427(e)(6)(C)
is amended by striking ``December 31, 2021'' and inserting
``December 31, 2024''.
(f) Effective Date.--The amendments made by this section
shall apply to fuel sold or used after December 31, 2021.
(g) Special Rule.--Notwithstanding any other provision of
law, in the case of any alternative fuel credit properly
determined under section 6426(d) of the Internal Revenue Code
of 1986 for the period beginning on January 1, 2022, and
ending with the close of the last calendar quarter beginning
before the date of the enactment of this Act, such credit
shall be allowed, and any refund or payment attributable to
such credit (including any payment under section 6427(e) of
such Code) shall be made, only in such manner as the
Secretary of the Treasury (or the Secretary's delegate) shall
provide. Such Secretary shall issue guidance within 30 days
after the date of the enactment of this Act providing for a
one-time submission of claims covering periods described in
the preceding sentence. Such guidance shall provide for a
180-day period for the submission of such claims (in such
manner as prescribed by such Secretary) to begin not later
than 30 days after such guidance is issued. Such claims shall
be paid by such Secretary not later than 60 days after
receipt. If such Secretary has not paid pursuant to a claim
filed under this subsection within 60 days after the date of
the filing of such claim, the claim shall be paid with
interest from such date determined by using the overpayment
rate and method under section 6621 of such Code.

SEC. 13202. EXTENSION OF SECOND GENERATION BIOFUEL
INCENTIVES.

(a) In General.--Section 40(b)(6)(J)(i) is amended by
striking ``2022'' and inserting ``2025''.
(b) Effective Date.--The amendment made by subsection (a)
shall apply to qualified second generation biofuel production
after December 31, 2021.

SEC. 13203. SUSTAINABLE AVIATION FUEL CREDIT.

(a) In General.--Subpart D of part IV of subchapter A of
chapter 1 is amended by inserting after section 40A the
following new section:

``SEC. 40B. SUSTAINABLE AVIATION FUEL CREDIT.

``(a) In General.--For purposes of section 38, the
sustainable aviation fuel credit determined under this
section for the taxable year is, with respect to any sale or
use of a qualified mixture which occurs during such taxable
year, an amount equal to the product of--
``(1) the number of gallons of sustainable aviation fuel in
such mixture, multiplied by
``(2) the sum of--
``(A) $1.25, plus
``(B) the applicable supplementary amount with respect to
such sustainable aviation fuel.
``(b) Applicable Supplementary Amount.--For purposes of
this section, the term `applicable supplementary amount'
means, with respect to any sustainable aviation fuel, an
amount equal to $0.01 for each percentage point by which the
lifecycle greenhouse gas emissions reduction percentage with
respect to such fuel exceeds 50 percent. In no event shall
the applicable supplementary amount determined under this
subsection exceed $0.50.
``(c) Qualified Mixture.--For purposes of this section, the
term `qualified mixture' means a mixture of sustainable
aviation fuel and kerosene if--
``(1) such mixture is produced by the taxpayer in the
United States,
``(2) such mixture is used by the taxpayer (or sold by the
taxpayer for use) in an aircraft,
``(3) such sale or use is in the ordinary course of a trade
or business of the taxpayer, and
``(4) the transfer of such mixture to the fuel tank of such
aircraft occurs in the United States.
``(d) Sustainable Aviation Fuel.--
``(1) In general.--For purposes of this section, the term
`sustainable aviation fuel' means liquid fuel which--
``(A) meets the requirements of--
``(i) ASTM International Standard D7566, or
``(ii) the Fischer Tropsch provisions of ASTM International
Standard D1655, Annex A1,
``(B) is not derived from coprocessing an applicable
material (or materials derived from an applicable material)
with a feedstock which is not biomass,
``(C) is not derived from palm fatty acid distillates or
petroleum, and
``(D) has been certified in accordance with subsection (e)
as having a lifecycle greenhouse gas emissions reduction
percentage of at least 50 percent.
``(2) Definitions.--In this subsection--
``(A) Applicable material.--The term `applicable material'
means--
``(i) monoglycerides, diglycerides, and triglycerides,
``(ii) free fatty acids, and
``(iii) fatty acid esters.
``(B) Biomass.--The term `biomass' has the same meaning
given such term in section 45K(c)(3).
``(e) Lifecycle Greenhouse Gas Emissions Reduction
Percentage.--For purposes of this section, the term
`lifecycle greenhouse gas emissions reduction percentage'
means, with respect to any sustainable aviation fuel, the
percentage reduction in lifecycle greenhouse gas emissions
achieved by such fuel as compared with petroleum-based jet
fuel, as defined in accordance with--
``(1) the most recent Carbon Offsetting and Reduction
Scheme for International Aviation which has been adopted by
the International Civil Aviation Organization with the
agreement of the United States, or
``(2) any similar methodology which satisfies the criteria
under section 211(o)(1)(H) of the Clean Air Act (42 U.S.C.
7545(o)(1)(H)), as in effect on the date of enactment of this
section.
``(f) Registration of Sustainable Aviation Fuel
Producers.--No credit shall be allowed under this section
with respect to any sustainable aviation fuel unless the
producer of such fuel--
``(1) is registered with the Secretary under section 4101,
and
``(2) provides--
``(A) certification (in such form and manner as the
Secretary shall prescribe) from an unrelated party
demonstrating compliance with--
``(i) any general requirements, supply chain traceability
requirements, and information transmission requirements
established under the Carbon Offsetting and Reduction Scheme
for International Aviation described in paragraph (1) of
subsection (e), or
``(ii) in the case of any methodology established under
paragraph (2) of such subsection, requirements similar to the
requirements described in clause (i), and
``(B) such other information with respect to such fuel as
the Secretary may require for purposes of carrying out this
section.
``(g) Coordination With Credit Against Excise Tax.--The
amount of the credit determined under this section with
respect to any sustainable aviation fuel shall, under rules
prescribed by the Secretary, be properly reduced to take into
account any benefit provided with respect to such sustainable
aviation fuel solely by reason of the application of section
6426 or 6427(e).

[[Page S3952]]

``(h) Termination.--This section shall not apply to any
sale or use after December 31, 2024.''.
(b) Credit Made Part of General Business Credit.-- Section
38(b), as amended by the preceding provisions of this Act, is
amended by striking ``plus'' at the end of paragraph (33), by
striking the period at the end of paragraph (34) and
inserting ``, plus'', and by inserting after paragraph (34)
the following new paragraph:
``(35) the sustainable aviation fuel credit determined
under section 40B.''.
(c) Coordination With Biodiesel Incentives.--
(1) In general.--Section 40A(d)(1) is amended by inserting
``or 40B'' after ``determined under section 40''.
(2) Conforming amendment.--Section 40A(f) is amended by
striking paragraph (4).
(d) Sustainable Aviation Fuel Added to Credit for Alcohol
Fuel, Biodiesel, and Alternative Fuel Mixtures.--
(1) In general.--Section 6426 is amended by adding at the
end the following new subsection:
``(k) Sustainable Aviation Fuel Credit.--
``(1) In general.--For purposes of this section, the
sustainable aviation fuel credit for the taxable year is,
with respect to any sale or use of a qualified mixture, an
amount equal to the product of--
``(A) the number of gallons of sustainable aviation fuel in
such mixture, multiplied by
``(B) the sum of--
``(i) $1.25, plus
``(ii) the applicable supplementary amount with respect to
such sustainable aviation fuel.
``(2) Definitions.--Any term used in this subsection which
is also used in section 40B shall have the meaning given such
term by section 40B.
``(3) Registration requirement.--For purposes of this
subsection, rules similar to the rules of section 40B(f)
shall apply.''.
(2) Conforming amendments.--
(A) Section 6426 is amended--
(i) in subsection (a)(1), by striking ``and (e)'' and
inserting ``(e), and (k)'', and
(ii) in subsection (h), by striking ``under section 40 or
40A'' and inserting ``under section 40, 40A, or 40B''.
(B) Section 6427(e) is amended--
(i) in the heading, by striking ``or Alternative Fuel'' and
inserting, ``Alternative Fuel, or Sustainable Aviation
Fuel'',
(ii) in paragraph (1), by inserting ``or the sustainable
aviation fuel mixture credit'' after ``alternative fuel
mixture credit'', and
(iii) in paragraph (6)--

(I) in subparagraph (C), by striking ``and'' at the end,
(II) in subparagraph (D), by striking the period at the end
and inserting ``, and'', and
(III) by adding at the end the following new subparagraph:

``(E) any qualified mixture of sustainable aviation fuel
(as defined in section 6426(k)(3)) sold or used after
December 31, 2024.''.
(C) Section 4101(a)(1) is amended by inserting ``every
person producing sustainable aviation fuel (as defined in
section 40B),'' before ``and every person producing second
generation biofuel''.
(D) The table of sections for subpart D of subchapter A of
chapter 1 is amended by inserting after the item relating to
section 40A the following new item:

``Sec. 40B. Sustainable aviation fuel credit.''.
(e) Amount of Credit Included in Gross Income.--Section 87
is amended by striking ``and'' in paragraph (1), by striking
the period at the end of paragraph (2) and inserting ``,
and'', and by adding at the end the following new paragraph:
``(3) the sustainable aviation fuel credit determined with
respect to the taxpayer for the taxable year under section
40B(a).''.
(f) Effective Date.--The amendments made by this section
shall apply to fuel sold or used after December 31, 2022.

SEC. 13204. CLEAN HYDROGEN.

(a) Credit for Production of Clean Hydrogen.--
(1) In general.--Subpart D of part IV of subchapter A of
chapter 1, as amended by the preceding provisions of this
Act, is amended by adding at the end the following new
section:

``SEC. 45V. CREDIT FOR PRODUCTION OF CLEAN HYDROGEN.

``(a) Amount of Credit.--For purposes of section 38, the
clean hydrogen production credit for any taxable year is an
amount equal to the product of--
``(1) the kilograms of qualified clean hydrogen produced by
the taxpayer during such taxable year at a qualified clean
hydrogen production facility during the 10-year period
beginning on the date such facility was originally placed in
service, multiplied by
``(2) the applicable amount (as determined under subsection
(b)) with respect to such hydrogen.
``(b) Applicable Amount.--
``(1) In general.--For purposes of subsection (a)(2), the
applicable amount shall be an amount equal to the applicable
percentage of $0.60. If any amount as determined under the
preceding sentence is not a multiple of 0.1 cent, such amount
shall be rounded to the nearest multiple of 0.1 cent.
``(2) Applicable percentage.--For purposes of paragraph
(1), the applicable percentage shall be determined as
follows:
``(A) In the case of any qualified clean hydrogen which is
produced through a process that results in a lifecycle
greenhouse gas emissions rate of--
``(i) not greater than 4 kilograms of CO2e per kilogram of
hydrogen, and
``(ii) not less than 2.5 kilograms of CO2e per kilogram of
hydrogen,
the applicable percentage shall be 20 percent.
``(B) In the case of any qualified clean hydrogen which is
produced through a process that results in a lifecycle
greenhouse gas emissions rate of--
``(i) less than 2.5 kilograms of CO2e per kilogram of
hydrogen, and
``(ii) not less than 1.5 kilograms of CO2e per kilogram of
hydrogen,
the applicable percentage shall be 25 percent.
``(C) In the case of any qualified clean hydrogen which is
produced through a process that results in a lifecycle
greenhouse gas emissions rate of--
``(i) less than 1.5 kilograms of CO2e per kilogram of
hydrogen, and
``(ii) not less than 0.45 kilograms of CO2e per kilogram of
hydrogen,
the applicable percentage shall be 33.4 percent.
``(D) In the case of any qualified clean hydrogen which is
produced through a process that results in a lifecycle
greenhouse gas emissions rate of less than 0.45 kilograms of
CO2e per kilogram of hydrogen, the applicable percentage
shall be 100 percent.
``(3) Inflation adjustment.--The $0.60 amount in paragraph
(1) shall be adjusted by multiplying such amount by the
inflation adjustment factor (as determined under section
45(e)(2), determined by substituting `2022' for `1992' in
subparagraph (B) thereof) for the calendar year in which the
qualified clean hydrogen is produced. If any amount as
increased under the preceding sentence is not a multiple of
0.1 cent, such amount shall be rounded to the nearest
multiple of 0.1 cent.
``(c) Definitions.--For purposes of this section--
``(1) Lifecycle greenhouse gas emissions.--
``(A) In general.--Subject to subparagraph (B), the term
`lifecycle greenhouse gas emissions' has the same meaning
given such term under subparagraph (H) of section 211(o)(1)
of the Clean Air Act (42 U.S.C. 7545(o)(1)), as in effect on
the date of enactment of this section.
``(B) GREET model.--The term `lifecycle greenhouse gas
emissions' shall only include emissions through the point of
production (well-to-gate), as determined under the most
recent Greenhouse gases, Regulated Emissions, and Energy use
in Transportation model (commonly referred to as the `GREET
model') developed by Argonne National Laboratory, or a
successor model (as determined by the Secretary).
``(2) Qualified clean hydrogen.--
``(A) In general.--The term `qualified clean hydrogen'
means hydrogen which is produced through a process that
results in a lifecycle greenhouse gas emissions rate of not
greater than 4 kilograms of CO2e per kilogram of hydrogen.
``(B) Additional requirements.--Such term shall not include
any hydrogen unless--
``(i) such hydrogen is produced--

``(I) in the United States (as defined in section 638(1))
or a possession of the United States (as defined in section
638(2)),
``(II) in the ordinary course of a trade or business of the
taxpayer, and
``(III) for sale or use, and

``(ii) the production and sale or use of such hydrogen is
verified by an unrelated party.
``(C) Provisional emissions rate.--In the case of any
hydrogen for which a lifecycle greenhouse gas emissions rate
has not been determined for purposes of this section, a
taxpayer producing such hydrogen may file a petition with the
Secretary for determination of the lifecycle greenhouse gas
emissions rate with respect to such hydrogen.
``(3) Qualified clean hydrogen production facility.--The
term `qualified clean hydrogen production facility' means a
facility--
``(A) owned by the taxpayer,
``(B) which produces qualified clean hydrogen, and
``(C) the construction of which begins before January 1,
2033.
``(d) Special Rules.--
``(1) Treatment of facilities owned by more than 1
taxpayer.--Rules similar to the rules section 45(e)(3) shall
apply for purposes of this section.
``(2) Coordination with credit for carbon oxide
sequestration.--No credit shall be allowed under this section
with respect to any qualified clean hydrogen produced at a
facility which includes carbon capture equipment for which a
credit is allowed to any taxpayer under section 45Q for the
taxable year or any prior taxable year.
``(e) Increased Credit Amount for Qualified Clean Hydrogen
Production Facilities.--
``(1) In general.--In the case of any qualified clean
hydrogen production facility which satisfies the requirements
of paragraph (2), the amount of the credit determined under
subsection (a) with respect to qualified clean hydrogen
described in subsection (b)(2) shall be equal to such amount
(determined without regard to this sentence) multiplied by 5.
``(2) Requirements.--A facility meets the requirements of
this paragraph if it is one of the following:
``(A) A facility--
``(i) the construction of which begins prior to the date
that is 60 days after the Secretary publishes guidance with
respect to the requirements of paragraphs (3)(A) and (4), and

[[Page S3953]]

``(ii) which meets the requirements of paragraph (3)(A)
with respect to alteration or repair of such facility which
occurs after such date.
``(B) A facility which satisfies the requirements of
paragraphs (3)(A) and (4).
``(3) Prevailing wage requirements.--
``(A) In general.--The requirements described in this
subparagraph with respect to any qualified clean hydrogen
production facility are that the taxpayer shall ensure that
any laborers and mechanics employed by contractors and
subcontractors in--
``(i) the construction of such facility, and
``(ii) with respect to any taxable year, for any portion of
such taxable year which is within the period described in
subsection (a)(2), the alteration or repair of such facility,
shall be paid wages at rates not less than the prevailing
rates for construction, alteration, or repair of a similar
character in the locality in which such facility is located
as most recently determined by the Secretary of Labor, in
accordance with subchapter IV of chapter 31 of title 40,
United States Code. For purposes of determining an increased
credit amount under paragraph (1) for a taxable year, the
requirement under clause (ii) of this subparagraph is applied
to such taxable year in which the alteration or repair of
qualified facility occurs.
``(B) Correction and penalty related to failure to satisfy
wage requirements.--Rules similar to the rules of section
45(b)(7)(B) shall apply.
``(4) Apprenticeship requirements.--Rules similar to the
rules of section 45(b)(8) shall apply.
``(5) Regulations and guidance.--The Secretary shall issue
such regulations or other guidance as the Secretary
determines necessary or appropriate to carry out the purposes
of this subsection, including regulations or other guidance
which provides for requirements for recordkeeping or
information reporting for purposes of administering the
requirements of this subsection.
``(f) Regulations.--Not later than 1 year after the date of
enactment of this section, the Secretary shall issue
regulations or other guidance to carry out the purposes of
this section, including regulations or other guidance for
determining lifecycle greenhouse gas emissions.''.
(2) Credit reduced for tax-exempt bonds.--Section 45V(d),
as added by this section, is amended by adding at the end the
following new paragraph:
``(3) Credit reduced for tax-exempt bonds.--Rules similar
to the rule under section 45(b)(3) shall apply for purposes
of this section.''.
(3) Modification of existing facilities.--Section 45V(d),
as added and amended by the preceding provisions of this
section, is amended by adding at the end the following new
paragraph:
``(4) Modification of existing facilities.--For purposes of
subsection (a)(2), in the case of any facility which--
``(A) was originally placed in service before January 1,
2023, and, prior to the modification described in
subparagraph (B), did not produce qualified clean hydrogen,
and
``(B) after the date such facility was originally placed in
service--
``(i) is modified to produce qualified clean hydrogen, and
``(ii) amounts paid or incurred with respect to such
modification are properly chargeable to capital account of
the taxpayer,
such facility shall be deemed to have been originally placed
in service as of the date that the property required to
complete the modification described in subparagraph (B) is
placed in service.''.
(4) Conforming amendments.--
(A) Section 38(b), as amended by the preceding provisions
of this Act, is amended--
(i) in paragraph (34), by striking ``plus'' at the end,
(ii) in paragraph (35), by striking the period at the end
and inserting ``, plus'', and
(iii) by adding at the end the following new paragraph:
``(36) the clean hydrogen production credit determined
under section 45V(a).''.
(B) The table of sections for subpart D of part IV of
subchapter A of chapter 1, as amended by the preceding
provisions of this Act, is amended by adding at the end the
following new item:

``Sec. 45V. Credit for production of clean hydrogen.''.
(5) Effective dates.--
(A) In general.--The amendments made by paragraphs (1) and
(4) of this subsection shall apply to hydrogen produced after
December 31, 2022.
(B) Credit reduced for tax-exempt bonds.--The amendment
made by paragraph (2) shall apply to facilities the
construction of which begins after the date of enactment of
this Act.
(C) Modification of existing facilities.--The amendment
made by paragraph (3) shall apply to modifications made after
December 31, 2022.
(b) Credit for Electricity Produced From Renewable
Resources Allowed if Electricity Is Used to Produce Clean
Hydrogen.--
(1) In general.--Section 45(e), as amended by the preceding
provisions of this Act, is amended by adding at the end the
following new paragraph:
``(13) Special rule for electricity used at a qualified
clean hydrogen production facility.--Electricity produced by
the taxpayer shall be treated as sold by such taxpayer to an
unrelated person during the taxable year if--
``(A) such electricity is used during such taxable year by
the taxpayer or a person related to the taxpayer at a
qualified clean hydrogen production facility (as defined in
section 45V(c)(3)) to produce qualified clean hydrogen (as
defined in section 45V(c)(2)), and
``(B) such use and production is verified (in such form or
manner as the Secretary may prescribe) by an unrelated third
party.''.
(2) Similar rule for zero-emission nuclear power production
credit.--Subsection (c)(2) of section 45U, as added by
section 13105 of this Act, is amended by striking ``and (5)''
and inserting ``(5), and (13)''.
(3) Effective date.--The amendments made by this subsection
shall apply to electricity produced after December 31, 2022.
(c) Election to Treat Clean Hydrogen Production Facilities
as Energy Property.--
(1) In general.--Section 48(a), as amended by the preceding
provisions of this Act, is amended--
(A) by redesignating paragraph (15) as paragraph (16), and
(B) by inserting after paragraph (14) the following new
paragraph:
``(15) Election to treat clean hydrogen production
facilities as energy property.--
``(A) In general.--In the case of any qualified property
(as defined in paragraph (5)(D)) which is part of a specified
clean hydrogen production facility--
``(i) such property shall be treated as energy property for
purposes of this section, and
``(ii) the energy percentage with respect to such property
is--

``(I) in the case of a facility which is designed and
reasonably expected to produce qualified clean hydrogen which
is described in a subparagraph (A) of section 45V(b)(2), 1.2
percent,
``(II) in the case of a facility which is designed and
reasonably expected to produce qualified clean hydrogen which
is described in a subparagraph (B) of such section, 1.5
percent,
``(III) in the case of a facility which is designed and
reasonably expected to produce qualified clean hydrogen which
is described in a subparagraph (C) of such section, 2
percent, and
``(IV) in the case of a facility which is designed and
reasonably expected to produce qualified clean hydrogen which
is described in subparagraph (D) of such section, 6 percent.

``(B) Denial of production credit.--No credit shall be
allowed under section 45V or section 45Q for any taxable year
with respect to any specified clean hydrogen production
facility or any carbon capture equipment included at such
facility.
``(C) Specified clean hydrogen production facility.--For
purposes of this paragraph, the term `specified clean
hydrogen production facility' means any qualified clean
hydrogen production facility (as defined in section
45V(c)(3))--
``(i) which is placed in service after December 31, 2022,
``(ii) with respect to which--

``(I) no credit has been allowed under section 45V or 45Q,
and
``(II) the taxpayer makes an irrevocable election to have
this paragraph apply, and

``(iii) for which an unrelated third party has verified (in
such form or manner as the Secretary may prescribe) that such
facility produces hydrogen through a process which results in
lifecycle greenhouse gas emissions which are consistent with
the hydrogen that such facility was designed and expected to
produce under subparagraph (A)(ii).
``(D) Qualified clean hydrogen.--For purposes of this
paragraph, the term `qualified clean hydrogen' has the
meaning given such term by section 45V(c)(2).
``(E) Regulations.--The Secretary shall issue such
regulations or other guidance as the Secretary determines
necessary or appropriate to carry out the purposes of this
section, including regulations or other guidance which
recaptures so much of any credit allowed under this section
as exceeds the amount of the credit which would have been
allowed if the expected production were consistent with the
actual verified production (or all of the credit so allowed
in the absence of such verification).''.
(2) Conforming amendment.--Paragraph (9)(A)(i) of section
48(a), as added by section 13102, is amended by inserting
``and paragraph (15)'' after ``paragraphs (1) through (8)''.
(3) Effective date.--The amendments made by this subsection
shall apply to property placed in service after December 31,
2022, and, for any property the construction of which begins
prior to January 1, 2023, only to the extent of the basis
thereof attributable to the construction, reconstruction, or
erection after December 31, 2022.
(d) Termination of Excise Tax Credit for Hydrogen.--
(1) In general.--Section 6426(d)(2) is amended by striking
subparagraph (D) and by redesignating subparagraphs (E), (F),
and (G) as subparagraphs (D), (E), and (F), respectively.
(2) Conforming amendment.--Section 6426(e)(2) is amended by
striking ``(F)'' and inserting ``(E)''.
(3) Effective date.--The amendments made by this subsection
shall apply to fuel sold or used after December 31, 2022.

[[Page S3954]]

PART 3--CLEAN ENERGY AND EFFICIENCY INCENTIVES FOR INDIVIDUALS

SEC. 13301. EXTENSION, INCREASE, AND MODIFICATIONS OF
NONBUSINESS ENERGY PROPERTY CREDIT.

(a) Extension of Credit.--Section 25C(g)(2) is amended by
striking ``December 31, 2021'' and inserting ``December 31,
2032''.
(b) Allowance of Credit.--Section 25C(a) is amended to read
as follows:
``(a) Allowance of Credit.--In the case of an individual,
there shall be allowed as a credit against the tax imposed by
this chapter for the taxable year an amount equal to 30
percent of the sum of--
``(1) the amount paid or incurred by the taxpayer for
qualified energy efficiency improvements installed during
such taxable year, and
``(2) the amount of the residential energy property
expenditures paid or incurred by the taxpayer during such
taxable year.''.
(c) Application of Annual Limitation in Lieu of Lifetime
Limitation.--Section 25C(b) is amended to read as follows:
``(b) Limitations.--
``(1) In general.--The credit allowed under this section
with respect to any taxpayer for any taxable year shall not
exceed $1,200.
``(2) Energy property.--The credit allowed under this
section by reason of subsection (a)(2) with respect to any
taxpayer for any taxable year shall not exceed, with respect
to any item of qualified energy property, $600.
``(3) Windows.--The credit allowed under this section by
reason of subsection (a)(1) with respect to any taxpayer for
any taxable year shall not exceed, in the aggregate with
respect to all exterior windows and skylights, $600.
``(4) Doors.--The credit allowed under this section by
reason of subsection (a)(1) with respect to any taxpayer for
any taxable year shall not exceed--
``(A) $250 in the case of any exterior door, and
``(B) $500 in the aggregate with respect to all exterior
doors.
``(5) Heat pump and heat pump water heaters; biomass stoves
and boilers.--Notwithstanding paragraphs (1) and (2), the
credit allowed under this section by reason of subsection
(a)(2) with respect to any taxpayer for any taxable year
shall not, in the aggregate, exceed $2,000 with respect to
amounts paid or incurred for property described in clauses
(i) and (ii) of subsection (d)(2)(A) and in subsection
(d)(2)(B).''.
(d) Modifications Related to Qualified Energy Efficiency
Improvements.--
(1) Standards for energy efficient building envelope
components.--Section 25C(c)(2) is amended by striking
``meets--'' and all that follows through the period at the
end and inserting the following: ``meets--
``(A) in the case of an exterior window or skylight, Energy
Star most efficient certification requirements,
``(B) in the case of an exterior door, applicable Energy
Star requirements, and
``(C) in the case of any other component, the prescriptive
criteria for such component established by the most recent
International Energy Conservation Code standard in effect as
of the beginning of the calendar year which is 2 years prior
to the calendar year in which such component is placed in
service.''.
(2) Roofs not treated as building envelope components.--
Section 25C(c)(3) is amended by adding ``and'' at the end of
subparagraph (B), by striking ``, and'' at the end of
subparagraph (C) and inserting a period, and by striking
subparagraph (D).
(3) Air sealing insulation added to definition of building
envelope component.--Section 25C(c)(3)(A) is amended by
inserting ``, including air sealing material or system,''
after ``material or system''.
(e) Modification of Residential Energy Property
Expenditures.--Section 25C(d) is amended to read as follows:
``(d) Residential Energy Property Expenditures.--For
purposes of this section--
``(1) In general.--The term `residential energy property
expenditures' means expenditures made by the taxpayer for
qualified energy property which is--
``(A) installed on or in connection with a dwelling unit
located in the United States and used as a residence by the
taxpayer, and
``(B) originally placed in service by the taxpayer.
Such term includes expenditures for labor costs properly
allocable to the onsite preparation, assembly, or original
installation of the property.
``(2) Qualified energy property.--The term `qualified
energy property' means any of the following:
``(A) Any of the following which meet or exceed the highest
efficiency tier (not including any advanced tier) established
by the Consortium for Energy Efficiency which is in effect as
of the beginning of the calendar year in which the property
is placed in service:
``(i) An electric or natural gas heat pump water heater.
``(ii) An electric or natural gas heat pump.
``(iii) A central air conditioner.
``(iv) A natural gas, propane, or oil water heater.
``(v) A natural gas, propane, or oil furnace or hot water
boiler.
``(B) A biomass stove or boiler which--
``(i) uses the burning of biomass fuel to heat a dwelling
unit located in the United States and used as a residence by
the taxpayer, or to heat water for use in such a dwelling
unit, and
``(ii) has a thermal efficiency rating of at least 75
percent (measured by the higher heating value of the fuel).
``(C) Any oil furnace or hot water boiler which--
``(i) is placed in service after December 31, 2022, and
before January 1, 2027, and--

``(I) meets or exceeds 2021 Energy Star efficiency
criteria, and
``(II) is rated by the manufacturer for use with fuel
blends at least 20 percent of the volume of which consists of
an eligible fuel, or

``(ii) is placed in service after December 31, 2026, and--

``(I) achieves an annual fuel utilization efficiency rate
of not less than 90, and
``(II) is rated by the manufacturer for use with eligible
fuel blends of 50 percent or more.

``(D) Any improvement to, or replacement of, a panelboard,
sub-panelboard, branch circuits, or feeders which--
``(i) is installed in a manner consistent with the National
Electric Code,
``(ii) has a load capacity of not less than 200 amps,
``(iii) is installed in conjunction with--

``(I) any qualified energy efficiency improvements, or
``(II) any qualified energy property described in
subparagraphs (A) through (C) for which a credit is allowed
under this section for expenditures with respect to such
property, and

``(iv) enables the installation and use of any property
described in subclause (I) or (II) of clause (iii).
``(3) Eligible fuel.--For purposes of paragraph (2), the
term `eligible fuel' means--
``(A) biodiesel and renewable diesel (within the meaning of
section 40A), and
``(B) second generation biofuel (within the meaning of
section 40).''.
(f) Home Energy Audits.--
(1) In general.--Section 25C(a), as amended by subsection
(b), is amended by striking ``and'' at the end of paragraph
(1), by striking the period at the end of paragraph (2) and
inserting ``, and'', and by adding at the end the following
new paragraph:
``(3) the amount paid or incurred by the taxpayer during
the taxable year for home energy audits.''.
(2) Limitation.--Section 25C(b), as amended by subsection
(c), is amended adding at the end the following new
paragraph:
``(6) Home energy audits.--
``(A) Dollar limitation.--The amount of the credit allowed
under this section by reason of subsection (a)(3) shall not
exceed $150.
``(B) Substantiation requirement.--No credit shall be
allowed under this section by reason of subsection (a)(3)
unless the taxpayer includes with the taxpayer's return of
tax such information or documentation as the Secretary may
require.''.
(3) Home energy audits.--
(A) In general.--Section 25C is amended by redesignating
subsections (e), (f), and (g), as subsections (f), (g), and
(h), respectively, and by inserting after subsection (d) the
following new subsection:
``(e) Home Energy Audits.--For purposes of this section,
the term `home energy audit' means an inspection and written
report with respect to a dwelling unit located in the United
States and owned or used by the taxpayer as the taxpayer's
principal residence (within the meaning of section 121)
which--
``(1) identifies the most significant and cost-effective
energy efficiency improvements with respect to such dwelling
unit, including an estimate of the energy and cost savings
with respect to each such improvement, and
``(2) is conducted and prepared by a home energy auditor
that meets the certification or other requirements specified
by the Secretary in regulations or other guidance (as
prescribed by the Secretary not later than 365 days after the
date of the enactment of this subsection).''.
(B) Conforming amendment.--Section 1016(a)(33) is amended
by striking ``section 25C(f)'' and inserting ``section
25C(g)''.
(4) Lack of substantiation treated as mathematical or
clerical error.--Section 6213(g)(2) is amended--
(A) in subparagraph (P), by striking ``and'' at the end,
(B) in subparagraph (Q), by striking the period at the end
and inserting ``, and'', and
(C) by inserting after subparagraph (Q) the following:
``(R) an omission of information or documentation required
under section 25C(b)(6)(B) (relating to home energy audits)
to be included on a return.''.
(g) Identification Number Requirement.--
(1) In general.--Section 25C, as amended by this section,
is amended by redesignating subsection (h) as subsection (i)
and by inserting after subsection (g) the following new
subsection:
``(h) Product Identification Number Requirement.--
``(1) In general.--No credit shall be allowed under
subsection (a) with respect to any item of specified property
placed in service after December 31, 2024, unless--
``(A) such item is produced by a qualified manufacturer,
and
``(B) the taxpayer includes the qualified product
identification number of such item on the return of tax for
the taxable year.
``(2) Qualified product identification number.--For
purposes of this section, the term `qualified product
identification number' means, with respect to any item of
specified property, the product identification

[[Page S3955]]

number assigned to such item by the qualified manufacturer
pursuant to the methodology referred to in paragraph (3).
``(3) Qualified manufacturer.--For purposes of this
section, the term `qualified manufacturer' means any
manufacturer of specified property which enters into an
agreement with the Secretary which provides that such
manufacturer will--
``(A) assign a product identification number to each item
of specified property produced by such manufacturer utilizing
a methodology that will ensure that such number (including
any alphanumeric) is unique to each such item (by utilizing
numbers or letters which are unique to such manufacturer or
by such other method as the Secretary may provide),
``(B) label such item with such number in such manner as
the Secretary may provide, and
``(C) make periodic written reports to the Secretary (at
such times and in such manner as the Secretary may provide)
of the product identification numbers so assigned and
including such information as the Secretary may require with
respect to the item of specified property to which such
number was so assigned.
``(4) Specified property.--For purposes of this subsection,
the term `specified property' means any qualified energy
property and any property described in subparagraph (B) or
(C) of subsection (c)(3).''.
(2) Omission of correct product identification number
treated as mathematical or clerical error.--Section
6213(g)(2), as amended by the preceding provisions of this
Act, is amended--
(A) in subparagraph (Q), by striking ``and'' at the end,
(B) in subparagraph (R), by striking the period at the end
and inserting ``, and'', and
(C) by inserting after subparagraph (R) the following:
``(S) an omission of a correct product identification
number required under section 25C(h) (relating to credit for
nonbusiness energy property) to be included on a return.''.
(h) Energy Efficient Home Improvement Credit.--
(1) In general.--The heading for section 25C is amended by
striking ``nonbusiness energy property'' and inserting
``energy efficient home improvement credit''.
(2) Clerical amendment.--The table of sections for subpart
A of part IV of subchapter A of chapter 1 is amended by
striking the item relating to section 25C and inserting after
the item relating to section 25B the following item:

``Sec. 25C. Energy efficient home improvement credit.''.
(i) Effective Dates.--
(1) In general.--Except as otherwise provided by this
subsection, the amendments made by this section shall apply
to property placed in service after December 31, 2022.
(2) Extension of credit.--The amendments made by subsection
(a) shall apply to property placed in service after December
31, 2021.
(3) Identification number requirement.--The amendments made
by subsection (g) shall apply to property placed in service
after December 31, 2024.

SEC. 13302. RESIDENTIAL CLEAN ENERGY CREDIT.

(a) Extension of Credit.--
(1) In general.--Section 25D(h) is amended by striking
``December 31, 2023'' and inserting ``December 31, 2034''.
(2) Application of phaseout.--Section 25D(g) is amended--
(A) in paragraph (2), by striking ``before January 1, 2023,
26 percent, and'' and inserting ``before January 1, 2022, 26
percent,'', and
(B) by striking paragraph (3) and by inserting after
paragraph (2) the following new paragraphs:
``(3) in the case of property placed in service after
December 31, 2021, and before January 1, 2033, 30 percent,
``(4) in the case of property placed in service after
December 31, 2032, and before January 1, 2034, 26 percent,
and
``(5) in the case of property placed in service after
December 31, 2033, and before January 1, 2035, 22 percent.''.
(b) Residential Clean Energy Credit for Battery Storage
Technology; Certain Expenditures Disallowed.--
(1) Allowance of credit.--Paragraph (6) of section 25D(a)
is amended to read as follows:
``(6) the qualified battery storage technology
expenditures,''.
(2) Definition of qualified battery storage technology
expenditure.--Paragraph (6) of section 25D(d) is amended to
read as follows:
``(6) Qualified battery storage technology expenditure.--
The term `qualified battery storage technology expenditure'
means an expenditure for battery storage technology which--
``(A) is installed in connection with a dwelling unit
located in the United States and used as a residence by the
taxpayer, and
``(B) has a capacity of not less than 3 kilowatt hours.''.
(c) Conforming Amendments.--
(1) The heading for section 25D is amended by striking
``energy efficient property'' and inserting ``clean energy
credit''.
(2) The table of sections for subpart A of part IV of
subchapter A of chapter 1 is amended by striking the item
relating to section 25D and inserting the following:

``Sec. 25D. Residential clean energy credit.''.
(d) Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to expenditures
made after December 31, 2021.
(2) Residential clean energy credit for battery storage
technology; certain expenditures disallowed.--The amendments
made by subsection (b) shall apply to expenditures made after
December 31, 2022.

SEC. 13303. ENERGY EFFICIENT COMMERCIAL BUILDINGS DEDUCTION.

(a) In General.--
(1) Maximum amount of deduction.--Subsection (b) of section
179D is amended to read as follows:
``(b) Maximum Amount of Deduction.--
``(1) In general.--The deduction under subsection (a) with
respect to any building for any taxable year shall not exceed
the excess (if any) of--
``(A) the product of--
``(i) the applicable dollar value, and
``(ii) the square footage of the building, over
``(B) the aggregate amount of the deductions under
subsections (a) and (f) with respect to the building for the
3 taxable years immediately preceding such taxable year (or,
in the case of any such deduction allowable to a person other
than the taxpayer, for any taxable year ending during the 4-
taxable-year period ending with such taxable year).
``(2) Applicable dollar value.--For purposes of paragraph
(1)(A)(i), the applicable dollar value shall be an amount
equal to $0.50 increased (but not above $1.00) by $0.02 for
each percentage point by which the total annual energy and
power costs for the building are certified to be reduced by a
percentage greater than 25 percent.
``(3) Increased credit amount for certain property.--
``(A) In general.--In the case of any property which
satisfies the requirements of subparagraph (B), paragraph (2)
shall be applied by substituting `$2.50' for `$0.50', `$.10'
for `$.02', and `$5.00' for `$1.00'.
``(B) Property requirements.--In the case of any energy
efficient commercial building property, energy efficient
building retrofit property, or property installed pursuant to
a qualified retrofit plan, such property shall meet the
requirements of this subparagraph if --
``(i) installation of such property begins prior to the
date that is 60 days after the Secretary publishes guidance
with respect to the requirements of paragraphs (4)(A) and
(5), or
``(ii) installation of such property satisfies the
requirements of paragraphs (4)(A) and (5).
``(4) Prevailing wage requirements.--
``(A) In general.--The requirements described in this
subparagraph with respect to any property are that the
taxpayer shall ensure that any laborers and mechanics
employed by contractors and subcontractors in the
installation of any property shall be paid wages at rates not
less than the prevailing rates for construction, alteration,
or repair of a similar character in the locality in which
such property is located as most recently determined by the
Secretary of Labor, in accordance with subchapter IV of
chapter 31 of title 40, United States Code.
``(B) Correction and penalty related to failure to satisfy
wage requirements.--Rules similar to the rules of section
45(b)(7)(B) shall apply.
``(5) Apprenticeship requirements.--Rules similar to the
rules of section 45(b)(8) shall apply.''.
(2) Modification of efficiency standard.--Section
179D(c)(1)(D) is amended by striking ``50 percent'' and
inserting ``25 percent''.
(3) Reference standard.--Section 179D(c)(2) is amended by
striking ``the most recent'' and inserting the following:
``the more recent of--
``(A) Standard 90.1-2007 published by the American Society
of Heating, Refrigerating, and Air Conditioning Engineers and
the Illuminating Engineering Society of North America, or
``(B) the most recent''.
(4) Final determination; extension of period; placed in
service deadline.--Subparagraph (B) of section 179D(c)(2), as
amended by paragraph (3), is amended--
(A) by inserting ``for which the Department of Energy has
issued a final determination and'' before ``which has been
affirmed'',
(B) by striking ``2 years'' and inserting ``4 years'', and
(C) by striking ``that construction of such property
begins'' and inserting ``such property is placed in
service''.
(5) Elimination of partial allowance.--
(A) In general.--Section 179D(d) is amended--
(i) by striking paragraph (1), and
(ii) by redesignating paragraphs (2) through (6) as
paragraphs (1) through (5), respectively.
(B) Conforming amendments.--
(i) Section 179D(c)(1)(D) is amended--

(I) by striking ``subsection (d)(6)'' and inserting
``subsection (d)(5)'', and
(II) by striking ``subsection (d)(2)'' and inserting
``subsection (d)(1)''.

(ii) Paragraph (2)(A) of section 179D(d), as redesignated
by subparagraph (A), is amended by striking ``paragraph (2)''
and inserting ``paragraph (1)''.
(iii) Paragraph (4) of section 179D(d), as redesignated by
subparagraph (A), is amended by striking ``paragraph
(3)(B)(iii)'' and inserting ``paragraph (2)(B)(iii)''.
(iv) Section 179D is amended by striking subsection (f).

[[Page S3956]]

(v) Section 179D(h) is amended by striking ``or
(d)(1)(A)''.
(6) Allocation of deduction by certain tax-exempt
entities.--Paragraph (3) of section 179D(d), as redesignated
by paragraph (5)(A), is amended to read as follows:
``(3) Allocation of deduction by certain tax-exempt
entities.--
``(A) In general.--In the case of energy efficient
commercial building property installed on or in property
owned by a specified tax-exempt entity, the Secretary shall
promulgate regulations or guidance to allow the allocation of
the deduction to the person primarily responsible for
designing the property in lieu of the owner of such property.
Such person shall be treated as the taxpayer for purposes of
this section.
``(B) Specified tax-exempt entity.--For purposes of this
paragraph, the term `specified tax-exempt entity' means--
``(i) the United States, any State or local government (or
political subdivision thereof), any possession of the United
States, or any agency or instrumentality of any of the
foregoing,
``(ii) an Indian tribal government (as defined in section
30D(g)(9)) or Alaska Native Corporation (as defined in
section 3 of the Alaska Native Claims Settlement Act (43
U.S.C. 1602(m)), and
``(iii) any organization exempt from tax imposed by this
chapter.''.
(7) Alternative deduction for energy efficient building
retrofit property.--Section 179D, as amended by the preceding
provisions of this section, is amended by inserting after
subsection (e) the following new subsection:
``(f) Alternative Deduction for Energy Efficient Building
Retrofit Property.--
``(1) In general.--In the case of a taxpayer which elects
(at such time and in such manner as the Secretary may
provide) the application of this subsection with respect to
any qualified building, there shall be allowed as a deduction
for the taxable year which includes the date of the
qualifying final certification with respect to the qualified
retrofit plan of such building, an amount equal to the lesser
of--
``(A) the excess described in subsection (b) (determined by
substituting `energy use intensity' for `total annual energy
and power costs' in paragraph (2) thereof), or
``(B) the aggregate adjusted basis (determined after taking
into account all adjustments with respect to such taxable
year other than the reduction under subsection (e)) of energy
efficient building retrofit property placed in service by the
taxpayer pursuant to such qualified retrofit plan.
``(2) Qualified retrofit plan.--For purposes of this
subsection, the term `qualified retrofit plan' means a
written plan prepared by a qualified professional which
specifies modifications to a building which, in the
aggregate, are expected to reduce such building's energy use
intensity by 25 percent or more in comparison to the baseline
energy use intensity of such building. Such plan shall
provide for a qualified professional to--
``(A) as of any date during the 1-year period ending on the
date on which the property installed pursuant to such plan is
placed in service, certify the energy use intensity of such
building as of such date,
``(B) certify the status of property installed pursuant to
such plan as meeting the requirements of subparagraphs (B)
and (C) of paragraph (3), and
``(C) as of any date that is more than 1 year after the
date on which the property installed pursuant to such plan is
placed in service, certify the energy use intensity of such
building as of such date.
``(3) Energy efficient building retrofit property.--For
purposes of this subsection, the term `energy efficient
building retrofit property' means property--
``(A) with respect to which depreciation (or amortization
in lieu of depreciation) is allowable,
``(B) which is installed on or in any qualified building,
``(C) which is installed as part of--
``(i) the interior lighting systems,
``(ii) the heating, cooling, ventilation, and hot water
systems, or
``(iii) the building envelope, and
``(D) which is certified in accordance with paragraph
(2)(B) as meeting the requirements of subparagraphs (B) and
(C).
``(4) Qualified building.--For purposes of this subsection,
the term `qualified building' means any building which--
``(A) is located in the United States, and
``(B) was originally placed in service not less than 5
years before the establishment of the qualified retrofit plan
with respect to such building.
``(5) Qualifying final certification.--For purposes of this
subsection, the term `qualifying final certification' means,
with respect to any qualified retrofit plan, the
certification described in paragraph (2)(C) if the energy use
intensity certified in such certification is not more than 75
percent of the baseline energy use intensity of the building.
``(6) Baseline energy use intensity.--
``(A) In general.--For purposes of this subsection, the
term `baseline energy use intensity' means the energy use
intensity certified under paragraph (2)(A), as adjusted to
take into account weather.
``(B) Determination of adjustment.--For purposes of
subparagraph (A), the adjustments described in such
subparagraph shall be determined in such manner as the
Secretary may provide.
``(7) Other definitions.--For purposes of this subsection--
``(A) Energy use intensity.--The term `energy use
intensity' means the annualized, measured site energy use
intensity determined in accordance with such regulations or
other guidance as the Secretary may provide and measured in
British thermal units.
``(B) Qualified professional.--The term `qualified
professional' means an individual who is a licensed architect
or a licensed engineer and meets such other requirements as
the Secretary may provide.
``(8) Coordination with deduction otherwise allowed under
subsection (a).--
``(A) In general.--In the case of any building with respect
to which an election is made under paragraph (1), the term
`energy efficient commercial building property' shall not
include any energy efficient building retrofit property with
respect to which a deduction is allowable under this
subsection.
``(B) Certain rules not applicable.--
``(i) In general.--Except as provided in clause (ii),
subsection (d) shall not apply for purposes of this
subsection.
``(ii) Allocation of deduction by certain tax-exempt
entities.--Rules similar to subsection (d)(3) shall apply for
purposes of this subsection.''.
(8) Inflation adjustment.--Section 179D(g) is amended--
(A) by striking ``2020'' and inserting ``2022'',
(B) by striking ``or subsection (d)(1)(A)'', and
(C) by striking ``2019'' and inserting ``2021''.
(b) Application to Real Estate Investment Trust Earnings
and Profits.--Section 312(k)(3)(B) is amended--
(1) by striking ``For purposes of computing the earnings
and profits of a corporation'' and inserting the following:
``(i) In general.--For purposes of computing the earnings
and profits of a corporation, except as provided in clause
(ii)'', and
(2) by adding at the end the following new clause:
``(ii) Special rule.--In the case of a corporation that is
a real estate investment trust, any amount deductible under
section 179D shall be allowed in the year in which the
property giving rise to such deduction is placed in service
(or, in the case of energy efficient building retrofit
property, the year in which the qualifying final
certification is made).''.
(c) Conforming Amendment.--Paragraph (1) of section
179D(d), as redesignated by subsection (a)(5)(A), is amended
by striking ``not later than the date that is 2 years before
the date that construction of such property begins'' and
inserting ``not later than the date that is 4 years before
the date such property is placed in service''.
(d) Effective Date.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply
to taxable years beginning after December 31, 2022.
(2) Alternative deduction for energy efficient building
retrofit property.--Subsection (f) of section 179D of the
Internal Revenue Code of 1986 (as amended by this section),
and any other provision of such section solely for purposes
of applying such subsection, shall apply to property placed
in service after December 31, 2022 (in taxable years ending
after such date) if such property is placed in service
pursuant to qualified retrofit plan (within the meaning of
such section) established after such date.

SEC. 13304. EXTENSION, INCREASE, AND MODIFICATIONS OF NEW
ENERGY EFFICIENT HOME CREDIT.

(a) Extension of Credit.--Section 45L(g) is amended by
striking ``December 31, 2021'' and inserting ``December 31,
2032''.
(b) Increase in Credit Amounts.--Section 45L(a)(2) is
amended to read as follows:
``(2) Applicable amount.--For purposes of paragraph (1),
the applicable amount is an amount equal to--
``(A) in the case of a dwelling unit which is eligible to
participate in the Energy Star Residential New Construction
Program or the Energy Star Manufactured New Homes program--
``(i) which meets the requirements of subsection (c)(1)(A)
(and which does not meet the requirements of subsection
(c)(1)(B)), $2,500, and
``(ii) which meets the requirements of subsection
(c)(1)(B), $5,000, and
``(B) in the case of a dwelling unit which is part of a
building eligible to participate in the Energy Star
Multifamily New Construction Program--
``(i) which meets the requirements of subsection (c)(1)(A)
(and which does not meet the requirements of subsection
(c)(1)(B)), $500, and
``(ii) which meets the requirements of subsection
(c)(1)(B), $1,000.''.
(c) Modification of Energy Saving Requirements.--Section
45L(c) is amended to read as follows:
``(c) Energy Saving Requirements.--
``(1) In general.--
``(A) In general.--A dwelling unit meets the requirements
of this subparagraph if such dwelling unit meets the
requirements of paragraph (2) or (3) (whichever is
applicable).
``(B) Zero energy ready home program.--A dwelling unit
meets the requirements of this subparagraph if such dwelling
unit is certified as a zero energy ready home under the zero
energy ready home program of the Department of Energy as in
effect on January 1, 2023 (or any successor program
determined by the Secretary).
``(2) Single-family home requirements.--A dwelling unit
meets the requirements of this paragraph if--

[[Page S3957]]

``(A) such dwelling unit meets--
``(i)(I) in the case of a dwelling unit acquired before
January 1, 2025, the Energy Star Single-Family New Homes
National Program Requirements 3.1, or
``(II) in the case of a dwelling unit acquired after
December 31, 2024, the Energy Star Single-Family New Homes
National Program Requirements 3.2, and
``(ii) the most recent Energy Star Single-Family New Homes
Program Requirements applicable to the location of such
dwelling unit (as in effect on the latter of January 1, 2023,
or January 1 of two calendar years prior to the date the
dwelling unit was acquired), or
``(B) such dwelling unit meets the most recent Energy Star
Manufactured Home National program requirements as in effect
on the latter of January 1, 2023, or January 1 of two
calendar years prior to the date such dwelling unit is
acquired.
``(3) Multi-family home requirements.--A dwelling unit
meets the requirements of this paragraph if--
``(A) such dwelling unit meets the most recent Energy Star
Multifamily New Construction National Program Requirements
(as in effect on either January 1, 2023, or January 1 of
three calendar years prior to the date the dwelling was
acquired, whichever is later), and
``(B) such dwelling unit meets the most recent Energy Star
Multifamily New Construction Regional Program Requirements
applicable to the location of such dwelling unit (as in
effect on either January 1, 2023, or January 1 of three
calendar years prior to the date the dwelling was acquired,
whichever is later).''.
(d) Prevailing Wage Requirement.--Section 45L is amended by
redesignating subsection (g) as subsection (h) and by
inserting after subsection (f) the following new subsection:
``(g) Prevailing Wage Requirement.--
``(1) In general.--In the case of a qualifying residence
described in subsection (b)(2)(B) meeting the prevailing wage
requirements of paragraph (2)(A), the credit amount allowed
with respect to such residence shall be--
``(A) $2,500 in the case of a residence which meets the
requirements of subparagraph (A) of subsection (c)(1) (and
which does not meet the requirements of subparagraph (B) of
such subsection), and
``(B) $5,000 in the case of a residence which meets the
requirements of subsection (c)(1)(B).
``(2) Prevailing wage requirements.--
``(A) In general.--The requirements described in this
subparagraph with respect to any qualified residence are that
the taxpayer shall ensure that any laborers and mechanics
employed by contractors and subcontractors in the
construction of such residence shall be paid wages at rates
not less than the prevailing rates for construction,
alteration, or repair of a similar character in the locality
in which such residence is located as most recently
determined by the Secretary of Labor, in accordance with
subchapter IV of chapter 31 of title 40, United States Code.
``(B) Correction and penalty related to failure to satisfy
wage requirements.--Rules similar to the rules of section
45(b)(7)(B) shall apply.
``(3) Regulations and guidance.--The Secretary shall issue
such regulations or other guidance as the Secretary
determines necessary or appropriate to carry out the purposes
of this subsection, including regulations or other guidance
which provides for requirements for recordkeeping or
information reporting for purposes of administering the
requirements of this subsection.''.
(e) Basis Adjustment.--Section 45L(e) is amended by
inserting after the first sentence the following: ``This
subsection shall not apply for purposes of determining the
adjusted basis of any building under section 42.''.
(f) Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to dwelling units
acquired after December 31, 2022.
(2) Extension of credit.--The amendments made by subsection
(a) shall apply to dwelling units acquired after December 31,
2021.

PART 4--CLEAN VEHICLES

SEC. 13401. CLEAN VEHICLE CREDIT.

(a) Per Vehicle Dollar Limitation.--Section 30D(b) is
amended by striking paragraphs (2) and (3) and inserting the
following:
``(2) Critical minerals.--In the case of a vehicle with
respect to which the requirement described in subsection
(e)(1)(A) is satisfied, the amount determined under this
paragraph is $3,750.
``(3) Battery components.--In the case of a vehicle with
respect to which the requirement described in subsection
(e)(2)(A) is satisfied, the amount determined under this
paragraph is $3,750.''.
(b) Final Assembly.--Section 30D(d) is amended--
(1) in paragraph (1)--
(A) in subparagraph (E), by striking ``and'' at the end,
(B) in subparagraph (F)(ii), by striking the period at the
end and inserting ``, and'', and
(C) by adding at the end the following:
``(G) the final assembly of which occurs within North
America.'',
(2) by adding at the end the following:
``(5) Final assembly.--For purposes of paragraph (1)(G),
the term `final assembly' means the process by which a
manufacturer produces a new clean vehicle at, or through the
use of, a plant, factory, or other place from which the
vehicle is delivered to a dealer or importer with all
component parts necessary for the mechanical operation of the
vehicle included with the vehicle, whether or not the
component parts are permanently installed in or on the
vehicle.''.
(c) Definition of New Clean Vehicle.--
(1) In general.--Section 30D(d), as amended by the
preceding provisions of this section, is amended--
(A) in the heading, by striking ``Qualified Plug-in
Electric Drive Motor'' and inserting ``Clean'',
(B) in paragraph (1)--
(i) in the matter preceding subparagraph (A), by striking
``qualified plug-in electric drive motor'' and inserting
``clean'',
(ii) in subparagraph (C), by inserting ``qualified'' before
``manufacturer'',
(iii) in subparagraph (F)--

(I) in clause (i), by striking ``4'' and inserting ``7'',
and
(II) in clause (ii), by striking ``and'' at the end,

(iv) in subparagraph (G), by striking the period at the end
and inserting ``, and'', and
(v) by adding at the end the following:
``(H) for which the person who sells any vehicle to the
taxpayer furnishes a report to the taxpayer and to the
Secretary, at such time and in such manner as the Secretary
shall provide, containing--
``(i) the name and taxpayer identification number of the
taxpayer,
``(ii) the vehicle identification number of the vehicle,
unless, in accordance with any applicable rules promulgated
by the Secretary of Transportation, the vehicle is not
assigned such a number,
``(iii) the battery capacity of the vehicle,
``(iv) verification that original use of the vehicle
commences with the taxpayer, and
``(v) the maximum credit under this section allowable to
the taxpayer with respect to the vehicle.'',
(C) in paragraph (3)--
(i) in the heading, by striking ``Manufacturer'' and
inserting ``Qualified manufacturer'',
(ii) by striking ``The term `manufacturer' has the meaning
given such term in'' and inserting ``The term `qualified
manufacturer' means any manufacturer (within the meaning of
the'', and
(iii) by inserting ``) which enters into a written
agreement with the Secretary under which such manufacturer
agrees to make periodic written reports to the Secretary (at
such times and in such manner as the Secretary may provide)
providing vehicle identification numbers and such other
information related to each vehicle manufactured by such
manufacturer as the Secretary may require'' before the period
at the end, and
(D) by adding at the end the following:
``(6) New qualified fuel cell motor vehicle.--For purposes
of this section, the term `new clean vehicle' shall include
any new qualified fuel cell motor vehicle (as defined in
section 30B(b)(3)) which meets the requirements under
subparagraphs (G) and (H) of paragraph (1).''.
(2) Conforming amendments.--Section 30D is amended--
(A) in subsection (a), by striking ``new qualified plug-in
electric drive motor vehicle'' and inserting ``new clean
vehicle'', and
(B) in subsection (b)(1), by striking ``new qualified plug-
in electric drive motor vehicle'' and inserting ``new clean
vehicle''.
(d) Elimination of Limitation on Number of Vehicles
Eligible for Credit.--Section 30D is amended by striking
subsection (e).
(e) Critical Mineral and Battery Component Requirements.--
(1) In general.--Section 30D, as amended by the preceding
provisions of this section, is amended by inserting after
subsection (d) the following:
``(e) Critical Mineral and Battery Component
Requirements.--
``(1) Critical minerals requirement.--
``(A) In general.--The requirement described in this
subparagraph with respect to a vehicle is that, with respect
to the battery from which the electric motor of such vehicle
draws electricity, the percentage of the value of the
applicable critical minerals (as defined in section
45X(c)(6)) contained in such battery that were--
``(i) extracted or processed in any country with which the
United States has a free trade agreement in effect, or
``(ii) recycled in North America,
is equal to or greater than the applicable percentage (as
certified by the qualified manufacturer, in such form or
manner as prescribed by the Secretary).
``(B) Applicable percentage.--For purposes of subparagraph
(A), the applicable percentage shall be--
``(i) in the case of a vehicle placed in service after the
date on which the proposed guidance described in paragraph
(3)(B) is issued by the Secretary and before January 1, 2024,
40 percent,
``(ii) in the case of a vehicle placed in service during
calendar year 2024, 50 percent,
``(iii) in the case of a vehicle placed in service during
calendar year 2025, 60 percent,
``(iv) in the case of a vehicle placed in service during
calendar year 2026, 70 percent, and
``(v) in the case of a vehicle placed in service after
December 31, 2026, 80 percent.
``(2) Battery components.--
``(A) In general.--The requirement described in this
subparagraph with respect to a vehicle is that, with respect
to the battery from which the electric motor of such vehicle
draws electricity, the percentage of the

[[Page S3958]]

value of the components contained in such battery that were
manufactured or assembled in North America is equal to or
greater than the applicable percentage (as certified by the
qualified manufacturer, in such form or manner as prescribed
by the Secretary).
``(B) Applicable percentage.--For purposes of subparagraph
(A), the applicable percentage shall be--
``(i) in the case of a vehicle placed in service after the
date on which the proposed guidance described in paragraph
(3)(B) is issued by the Secretary and before January 1, 2024,
50 percent,
``(ii) in the case of a vehicle placed in service during
calendar year 2024 or 2025, 60 percent,
``(iii) in the case of a vehicle placed in service during
calendar year 2026, 70 percent,
``(iv) in the case of a vehicle placed in service during
calendar year 2027, 80 percent,
``(v) in the case of a vehicle placed in service during
calendar year 2028, 90 percent,
``(vi) in the case of a vehicle placed in service after
December 31, 2028, 100 percent.
``(3) Regulations and guidance.--
``(A) In general.--The Secretary shall issue such
regulations or other guidance as the Secretary determines
necessary or appropriate to carry out the purposes of this
subsection, including regulations or other guidance which
provides for requirements for recordkeeping or information
reporting for purposes of administering the requirements of
this subsection.
``(B) Deadline for proposed guidance.--Not later than
December 31, 2022, the Secretary shall issue proposed
guidance with respect to the requirements under this
subsection.''.
(2) Excluded entities.--Section 30D(d), as amended by the
preceding provisions of this section, is amended by adding at
the end the following:
``(7) Excluded entities.--For purposes of this section, the
term `new clean vehicle' shall not include--
``(A) any vehicle placed in service after December 31,
2024, with respect to which any of the applicable critical
minerals contained in the battery of such vehicle (as
described in subsection (e)(1)(A)) were extracted, processed,
or recycled by a foreign entity of concern (as defined in
section 40207(a)(5) of the Infrastructure Investment and Jobs
Act (42 U.S.C. 18741(a)(5))), or
``(B) any vehicle placed in service after December 31,
2023, with respect to which any of the components contained
in the battery of such vehicle (as described in subsection
(e)(2)(A)) were manufactured or assembled by a foreign entity
of concern (as so defined).''.
(f) Special Rules.--Section 30D(f) is amended by adding at
the end the following:
``(8) One credit per vehicle.--In the case of any vehicle,
the credit described in subsection (a) shall only be allowed
once with respect to such vehicle, as determined based upon
the vehicle identification number of such vehicle.
``(9) VIN requirement.--No credit shall be allowed under
this section with respect to any vehicle unless the taxpayer
includes the vehicle identification number of such vehicle on
the return of tax for the taxable year.
``(10) Limitation based on modified adjusted gross
income.--
``(A) In general.--No credit shall be allowed under
subsection (a) for any taxable year if--
``(i) the lesser of--

``(I) the modified adjusted gross income of the taxpayer
for such taxable year, or
``(II) the modified adjusted gross income of the taxpayer
for the preceding taxable year, exceeds

``(ii) the threshold amount.
``(B) Threshold amount.--For purposes of subparagraph
(A)(ii), the threshold amount shall be--
``(i) in the case of a joint return or a surviving spouse
(as defined in section 2(a)), $300,000,
``(ii) in the case of a head of household (as defined in
section 2(b)), $225,000, and
``(iii) in the case of a taxpayer not described in clause
(i) or (ii), $150,000.
``(C) Modified adjusted gross income.--For purposes of this
paragraph, the term `modified adjusted gross income' means
adjusted gross income increased by any amount excluded from
gross income under section 911, 931, or 933.
``(11) Manufacturer's suggested retail price limitation.--
``(A) In general.--No credit shall be allowed under
subsection (a) for a vehicle with a manufacturer's suggested
retail price in excess of the applicable limitation.
``(B) Applicable limitation.--For purposes of subparagraph
(A), the applicable limitation for each vehicle
classification is as follows:
``(i) Vans.--In the case of a van, $80,000.
``(ii) Sport utility vehicles.--In the case of a sport
utility vehicle, $80,000.
``(iii) Pickup trucks.--In the case of a pickup truck,
$80,000.
``(iv) Other.--In the case of any other vehicle, $55,000.
``(C) Regulations and guidance.--For purposes of this
paragraph, the Secretary shall prescribe such regulations or
other guidance as the Secretary determines necessary or
appropriate for determining vehicle classifications using
criteria similar to that employed by the Environmental
Protection Agency and the Department of the Energy to
determine size and class of vehicles.''.
(g) Transfer of Credit.--
(1) In general.--Section 30D is amended by striking
subsection (g) and inserting the following:
``(g) Transfer of Credit.--
``(1) In general.--Subject to such regulations or other
guidance as the Secretary determines necessary or
appropriate, if the taxpayer who acquires a new clean vehicle
elects the application of this subsection with respect to
such vehicle, the credit which would (but for this
subsection) be allowed to such taxpayer with respect to such
vehicle shall be allowed to the eligible entity specified in
such election (and not to such taxpayer).
``(2) Eligible entity.--For purposes of this subsection,
the term `eligible entity' means, with respect to the vehicle
for which the credit is allowed under subsection (a), the
dealer which sold such vehicle to the taxpayer and has--
``(A) subject to paragraph (4), registered with the
Secretary for purposes of this paragraph, at such time, and
in such form and manner, as the Secretary may prescribe,
``(B) prior to the election described in paragraph (1) and
not later than at the time of such sale, disclosed to the
taxpayer purchasing such vehicle--
``(i) the manufacturer's suggested retail price,
``(ii) the value of the credit allowed and any other
incentive available for the purchase of such vehicle, and
``(iii) the amount provided by the dealer to such taxpayer
as a condition of the election described in paragraph (1),
``(C) not later than at the time of such sale, made payment
to such taxpayer (whether in cash or in the form of a partial
payment or down payment for the purchase of such vehicle) in
an amount equal to the credit otherwise allowable to such
taxpayer, and
``(D) with respect to any incentive otherwise available for
the purchase of a vehicle for which a credit is allowed under
this section, including any incentive in the form of a rebate
or discount provided by the dealer or manufacturer, ensured
that--
``(i) the availability or use of such incentive shall not
limit the ability of a taxpayer to make an election described
in paragraph (1), and
``(ii) such election shall not limit the value or use of
such incentive.
``(3) Timing.--An election described in paragraph (1) shall
be made by the taxpayer not later than the date on which the
vehicle for which the credit is allowed under subsection (a)
is purchased.
``(4) Revocation of registration.--Upon determination by
the Secretary that a dealer has failed to comply with the
requirements described in paragraph (2), the Secretary may
revoke the registration (as described in subparagraph (A) of
such paragraph) of such dealer.
``(5) Tax treatment of payments.--With respect to any
payment described in paragraph (2)(C), such payment--
``(A) shall not be includible in the gross income of the
taxpayer, and
``(B) with respect to the dealer, shall not be deductible
under this title.
``(6) Application of certain other requirements.--In the
case of any election under paragraph (1) with respect to any
vehicle--
``(A) the requirements of paragraphs (1) and (2) of
subsection (f) shall apply to the taxpayer who acquired the
vehicle in the same manner as if the credit determined under
this section with respect to such vehicle were allowed to
such taxpayer,
``(B) paragraph (6) of such subsection shall not apply, and
``(C) the requirement of paragraph (9) of such subsection
(f) shall be treated as satisfied if the eligible entity
provides the vehicle identification number of such vehicle to
the Secretary in such manner as the Secretary may provide.
``(7) Advance payment to registered dealers.--
``(A) In general.--The Secretary shall establish a program
to make advance payments to any eligible entity in an amount
equal to the cumulative amount of the credits allowed under
subsection (a) with respect to any vehicles sold by such
entity for which an election described in paragraph (1) has
been made.
``(B) Excessive payments.--Rules similar to the rules of
section 6417(c)(6) shall apply for purposes of this
paragraph.
``(C) Treatment of advance payments.--For purposes of
section 1324 of title 31, United States Code, the payments
under subparagraph (A) shall be treated in the same manner as
a refund due from a credit provision referred to in
subsection (b)(2) of such section.
``(8) Dealer.--For purposes of this subsection, the term
`dealer' means a person licensed by a State, the District of
Columbia, the Commonwealth of Puerto Rico, any other
territory or possession of the United States, an Indian
tribal government, or any Alaska Native Corporation (as
defined in section 3 of the Alaska Native Claims Settlement
Act (43 U.S.C. 1602(m)) to engage in the sale of vehicles.
``(9) Indian tribal government.--For purposes of this
subsection, the term `Indian tribal government' means the
recognized governing body of any Indian or Alaska Native
tribe, band, nation, pueblo, village, community, component
band, or component reservation, individually identified
(including parenthetically) in the list published most
recently as of the date of enactment of this

[[Page S3959]]

subsection pursuant to section 104 of the Federally
Recognized Indian Tribe List Act of 1994 (25 U.S.C. 5131).''.
(2) Conforming amendments.--Section 30D, as amended by the
preceding provisions of this section, is amended--
(A) in subsection (d)(1)(H) of such section--
(i) in clause (iv), by striking ``and'' at the end,
(ii) in clause (v), by striking the period at the end and
inserting ``, and'', and
(iii) by adding at the end the following:
``(vi) in the case of a taxpayer who makes an election
under subsection (g)(1), any amount described in subsection
(g)(2)(C) which has been provided to such taxpayer.'', and
(B) in subsection (f)--
(i) by striking paragraph (3), and
(ii) in paragraph (8), by inserting ``, including any
vehicle with respect to which the taxpayer elects the
application of subsection (g)'' before the period at the end.
(h) Termination.--Section 30D is amended by adding at the
end the following:
``(h) Termination.--No credit shall be allowed under this
section with respect to any vehicle placed in service after
December 31, 2032.''.
(i) Additional Conforming Amendments.--
(1) The heading of section 30D is amended by striking ``new
qualified plug-in electric drive motor vehicles'' and
inserting ``clean vehicle credit''.
(2) Section 30B is amended--
(A) in subsection (h)(8), by striking ``, except that no
benefit shall be recaptured if such property ceases to be
eligible for such credit by reason of conversion to a
qualified plug-in electric drive motor vehicle'', and
(B) by striking subsection (i).
(3) Section 38(b)(30) is amended by striking ``qualified
plug-in electric drive motor'' and inserting ``clean''.
(4) Section 6213(g)(2), as amended by the preceding
provisions of this Act, is amended--
(A) in subparagraph (R), by striking ``and'' at the end,
(B) in subparagraph (S), by striking the period at the end
and inserting ``, and'', and
(C) by inserting after subparagraph (S) the following:
``(T) an omission of a correct vehicle identification
number required under section 30D(f)(9) (relating to credit
for new clean vehicles) to be included on a return.''.
(5) Section 6501(m) is amended by striking ``30D(e)(4)''
and inserting ``30D(f)(6)''.
(6) The table of sections for subpart B of part IV of
subchapter A of chapter 1 is amended by striking the item
relating to section 30D and inserting after the item relating
to section 30C the following item:

``Sec. 30D. Clean vehicle credit.''.
(j) Gross-up of Direct Spending.--Beginning in fiscal year
2023 and each fiscal year thereafter, the portion of any
credit allowed to an eligible entity (as defined in section
30D(g)(2) of the Internal Revenue Code of 1986) pursuant to
an election made under section 30D(g) of the Internal Revenue
Code of 1986 that is direct spending shall be increased by
6.0445 percent.
(k) Effective Dates.--
(1) In general.--Except as provided in paragraphs (2), (3),
(4), and (5), the amendments made by this section shall apply
to vehicles placed in service after December 31, 2022.
(2) Final assembly.--The amendments made by subsection (b)
shall apply to vehicles sold after the date of enactment of
this Act.
(3) Per vehicle dollar limitation and related
requirements.--The amendments made by subsections (a) and (e)
shall apply to vehicles placed in service after the date on
which the proposed guidance described in paragraph (3)(B) of
section 30D(e) of the Internal Revenue Code of 1986 (as added
by subsection (e)) is issued by the Secretary of the Treasury
(or the Secretary's delegate).
(4) Transfer of credit.--The amendments made by subsection
(g) shall apply to vehicles placed in service after December
31, 2023.
(5) Elimination of manufacturer limitation.--The amendment
made by subsection (d) shall apply to vehicles sold after
December 31, 2022.
(l) Transition Rule.--Solely for purposes of the
application of section 30D of the Internal Revenue Code of
1986, in the case of a taxpayer that--
(1) after December 31, 2021, and before the date of
enactment of this Act, purchased, or entered into a written
binding contract to purchase, a new qualified plug-in
electric drive motor vehicle (as defined in section 30D(d)(1)
of the Internal Revenue Code of 1986, as in effect on the day
before the date of enactment of this Act), and
(2) placed such vehicle in service on or after the date of
enactment of this Act,
such taxpayer may elect (at such time, and in such form and
manner, as the Secretary of the Treasury, or the Secretary's
delegate, may prescribe) to treat such vehicle as having been
placed in service on the day before the date of enactment of
this Act.

SEC. 13402. CREDIT FOR PREVIOUSLY-OWNED CLEAN VEHICLES.

(a) In General.--Subpart A of part IV of subchapter A of
chapter 1 is amended by inserting after section 25D the
following new section:

``SEC. 25E. PREVIOUSLY-OWNED CLEAN VEHICLES.

``(a) Allowance of Credit.--In the case of a qualified
buyer who during a taxable year places in service a
previously-owned clean vehicle, there shall be allowed as a
credit against the tax imposed by this chapter for the
taxable year an amount equal to the lesser of--
``(1) $4,000, or
``(2) the amount equal to 30 percent of the sale price with
respect to such vehicle.
``(b) Limitation Based on Modified Adjusted Gross Income.--
``(1) In general.--No credit shall be allowed under
subsection (a) for any taxable year if--
``(A) the lesser of--
``(i) the modified adjusted gross income of the taxpayer
for such taxable year, or
``(ii) the modified adjusted gross income of the taxpayer
for the preceding taxable year, exceeds
``(B) the threshold amount.
``(2) Threshold amount.--For purposes of paragraph (1)(B),
the threshold amount shall be--
``(A) in the case of a joint return or a surviving spouse
(as defined in section 2(a)), $150,000,
``(B) in the case of a head of household (as defined in
section 2(b)), $112,500, and
``(C) in the case of a taxpayer not described in
subparagraph (A) or (B), $75,000.
``(3) Modified adjusted gross income.--For purposes of this
subsection, the term `modified adjusted gross income' means
adjusted gross income increased by any amount excluded from
gross income under section 911, 931, or 933.
``(c) Definitions.--For purposes of this section--
``(1) Previously-owned clean vehicle.--The term
`previously-owned clean vehicle' means, with respect to a
taxpayer, a motor vehicle--
``(A) the model year of which is at least 2 years earlier
than the calendar year in which the taxpayer acquires such
vehicle,
``(B) the original use of which commences with a person
other than the taxpayer,
``(C) which is acquired by the taxpayer in a qualified
sale, and
``(D) which--
``(i) meets the requirements of subparagraphs (C), (D),
(E), (F), and (H) (except for clause (iv) thereof) of section
30D(d)(1), or
``(ii) is a motor vehicle which--

``(I) satisfies the requirements under subparagraphs (A)
and (B) of section 30B(b)(3), and
``(II) has a gross vehicle weight rating of less than
14,000 pounds.

``(2) Qualified sale.--The term `qualified sale' means a
sale of a motor vehicle--
``(A) by a dealer (as defined in section 30D(g)(8)),
``(B) for a sale price which does not exceed $25,000, and
``(C) which is the first transfer since the date of the
enactment of this section to a qualified buyer other than the
person with whom the original use of such vehicle commenced.
``(3) Qualified buyer.--The term `qualified buyer' means,
with respect to a sale of a motor vehicle, a taxpayer--
``(A) who is an individual,
``(B) who purchases such vehicle for use and not for
resale,
``(C) with respect to whom no deduction is allowable with
respect to another taxpayer under section 151, and
``(D) who has not been allowed a credit under this section
for any sale during the 3-year period ending on the date of
the sale of such vehicle.
``(4) Motor vehicle; capacity.--The terms `motor vehicle'
and `capacity' have the meaning given such terms in
paragraphs (2) and (4) of section 30D(d), respectively.
``(d) VIN Number Requirement.--No credit shall be allowed
under subsection (a) with respect to any vehicle unless the
taxpayer includes the vehicle identification number of such
vehicle on the return of tax for the taxable year.
``(e) Application of Certain Rules.--For purposes of this
section, rules similar to the rules of section 30D(f)
(without regard to paragraph (10) or (11) thereof) shall
apply for purposes of this section.
``(f) Termination.--No credit shall be allowed under this
section with respect to any vehicle acquired after December
31, 2032.''.
(b) Transfer of Credit.--Section 25E, as added by
subsection (a), is amended--
(1) by redesignating subsection (f) as subsection (g), and
(2) by inserting after subsection (e) the following:
``(f) Transfer of Credit.--Rules similar to the rules of
section 30D(g) shall apply.''.
(c) Conforming Amendments.--Section 6213(g)(2), as amended
by the preceding provisions of this Act, is amended--
(1) in subparagraph (S), by striking ``and'' at the end,
(2) in subparagraph (T), by striking the period at the end
and inserting ``, and'', and
(3) by inserting after subparagraph (T) the following:
``(U) an omission of a correct vehicle identification
number required under section 25E(d) (relating to credit for
previously-owned clean vehicles) to be included on a
return.''.
(d) Clerical Amendment.--The table of sections for subpart
A of part IV of subchapter A of chapter 1 is amended by
inserting after the item relating to section 25D the
following new item:

``Sec. 25E. Previously-owned clean vehicles.''.
(e) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this

[[Page S3960]]

section shall apply to vehicles acquired after December 31,
2022.
(2) Transfer of credit.--The amendments made by subsection
(b) shall apply to vehicles acquired after December 31, 2023.

SEC. 13403. QUALIFIED COMMERCIAL CLEAN VEHICLES.

(a) In General.--Subpart D of part IV of subchapter A of
chapter 1, as amended by the preceding provisions of this
Act, is amended by adding at the end the following new
section:

``SEC. 45W. CREDIT FOR QUALIFIED COMMERCIAL CLEAN VEHICLES.

``(a) In General.--For purposes of section 38, the
qualified commercial clean vehicle credit for any taxable
year is an amount equal to the sum of the credit amounts
determined under subsection (b) with respect to each
qualified commercial clean vehicle placed in service by the
taxpayer during the taxable year.
``(b) Per Vehicle Amount.--
``(1) In general.--Subject to paragraph (4), the amount
determined under this subsection with respect to any
qualified commercial clean vehicle shall be equal to the
lesser of--
``(A) 15 percent of the basis of such vehicle (30 percent
in the case of a vehicle not powered by a gasoline or diesel
internal combustion engine), or
``(B) the incremental cost of such vehicle.
``(2) Incremental cost.--For purposes of paragraph (1)(B),
the incremental cost of any qualified commercial clean
vehicle is an amount equal to the excess of the purchase
price for such vehicle over such price of a comparable
vehicle.
``(3) Comparable vehicle.--For purposes of this subsection,
the term `comparable vehicle' means, with respect to any
qualified commercial clean vehicle, any vehicle which is
powered solely by a gasoline or diesel internal combustion
engine and which is comparable in size and use to such
vehicle.
``(4) Limitation.--The amount determined under this
subsection with respect to any qualified commercial clean
vehicle shall not exceed--
``(A) in the case of a vehicle which has a gross vehicle
weight rating of less than 14,000 pounds, $7,500, and
``(B) in the case of a vehicle not described in
subparagraph (A), $40,000.
``(c) Qualified Commercial Clean Vehicle.--For purposes of
this section, the term `qualified commercial clean vehicle'
means any vehicle which--
``(1) meets the requirements of section 30D(d)(1)(C) and is
acquired for use or lease by the taxpayer and not for resale,
``(2) either--
``(A) meets the requirements of subparagraph (D) of section
30D(d)(1) and is manufactured primarily for use on public
streets, roads, and highways (not including a vehicle
operated exclusively on a rail or rails), or
``(B) is mobile machinery, as defined in section 4053(8)
(including vehicles that are not designed to perform a
function of transporting a load over the public highways),
``(3) either--
``(A) is propelled to a significant extent by an electric
motor which draws electricity from a battery which has a
capacity of not less than 15 kilowatt hours (or, in the case
of a vehicle which has a gross vehicle weight rating of less
than 14,000 pounds, 7 kilowatt hours) and is capable of being
recharged from an external source of electricity, or
``(B) is a motor vehicle which satisfies the requirements
under subparagraphs (A) and (B) of section 30B(b)(3), and
``(4) is of a character subject to the allowance for
depreciation.
``(d) Special Rules.--
``(1) In general.--Subject to paragraph (2), rules similar
to the rules under subsection (f) of section 30D shall apply
for purposes of this section.
``(2) Recapture.--The Secretary shall, by regulations or
other guidance, provide for recapturing the benefit of any
credit allowed under subsection (a) with respect to any
property which ceases to be property eligible for such
credit.
``(3) Vehicles placed in service by tax-exempt entities.--
Subsection (c)(4) shall not apply to any vehicle which is not
subject to a lease and which is placed in service by a tax-
exempt entity described in clause (i), (ii), or (iv) of
section 168(h)(2)(A).
``(4) No double benefit.--No credit shall be allowed under
this section with respect to any vehicle for which a credit
was allowed under section 30D.
``(e) VIN Number Requirement.--No credit shall be
determined under subsection (a) with respect to any vehicle
unless the taxpayer includes the vehicle identification
number of such vehicle on the return of tax for the taxable
year.
``(f) Regulations and Guidance.--The Secretary shall issue
such regulations or other guidance as the Secretary
determines necessary or appropriate to carry out the purposes
of this section, including regulations or other guidance
relating to determination of the incremental cost of any
qualified commercial clean vehicle.
``(g) Termination.--No credit shall be determined under
this section with respect to any vehicle acquired after
December 31, 2032.''.
(b) Conforming Amendments.--
(1) Section 38(b), as amended by the preceding provisions
of this Act, is amended--
(A) in paragraph (35), by striking ``plus'' at the end,
(B) in paragraph (36), by striking the period at the end
and inserting ``, plus'', and
(C) by adding at the end the following new paragraph:
``(37) the qualified commercial clean vehicle credit
determined under section 45W.''.
(2) Section 6213(g)(2), as amended by the preceding
provisions of this Act, is amended--
(A) in subparagraph (T), by striking ``and'' at the end,
(B) in subparagraph (U), by striking the period at the end
and inserting ``, and'', and
(C) by inserting after subparagraph (U) the following:
``(V) an omission of a correct vehicle identification
number required under section 45W(e) (relating to commercial
clean vehicle credit) to be included on a return.''.
(3) The table of sections for subpart D of part IV of
subchapter A of chapter 1, as amended by the preceding
provisions of this Act, is amended by adding at the end the
following new item:

``Sec. 45W. Qualified commercial clean vehicle credit.''.
(c) Effective Date.--The amendments made by this section
shall apply to vehicles acquired after December 31, 2022.

SEC. 13404. ALTERNATIVE FUEL REFUELING PROPERTY CREDIT.

(a) In General.--Section 30C(g) is amended by striking
``December 31, 2021'' and inserting ``December 31, 2032''.
(b) Credit for Property of a Character Subject to
Depreciation.--
(1) In general.--Section 30C(a) is amended by inserting
``(6 percent in the case of property of a character subject
to depreciation)'' after ``30 percent''.
(2) Modification of credit limitation.--Subsection (b) of
section 30C is amended--
(A) in the matter preceding paragraph (1)--
(i) by striking ``with respect to all'' and inserting
``with respect to any single item of'', and
(ii) by striking ``at a location'', and
(B) in paragraph (1), by striking ``$30,000 in the case of
a property'' and inserting ``$100,000 in the case of any such
item of property''.
(3) Bidirectional charging equipment included as qualified
alternative fuel vehicle refueling property.--Section 30C(c)
is amended to read as follows:
``(c) Qualified Alternative Fuel Vehicle Refueling
Property.--For purposes of this section--
``(1) In general.--The term `qualified alternative fuel
vehicle refueling property' has the same meaning as the term
`qualified clean-fuel vehicle refueling property' would have
under section 179A if--
``(A) paragraph (1) of section 179A(d) did not apply to
property installed on property which is used as the principal
residence (within the meaning of section 121) of the
taxpayer, and
``(B) only the following were treated as clean-burning
fuels for purposes of section 179A(d):
``(i) Any fuel at least 85 percent of the volume of which
consists of one or more of the following: ethanol, natural
gas, compressed natural gas, liquified natural gas, liquefied
petroleum gas, or hydrogen.
``(ii) Any mixture--

``(I) which consists of two or more of the following:
biodiesel (as defined in section 40A(d)(1)), diesel fuel (as
defined in section 4083(a)(3)), or kerosene, and
``(II) at least 20 percent of the volume of which consists
of biodiesel (as so defined) determined without regard to any
kerosene in such mixture.

``(iii) Electricity.
``(2) Bidirectional charging equipment.--Property shall not
fail to be treated as qualified alternative fuel vehicle
refueling property solely because such property--
``(A) is capable of charging the battery of a motor vehicle
propelled by electricity, and
``(B) allows discharging electricity from such battery to
an electric load external to such motor vehicle.''.
(c) Certain Electric Charging Stations Included as
Qualified Alternative Fuel Vehicle Refueling Property.--
Section 30C is amended by redesignating subsections (f) and
(g) as subsections (g) and (h), respectively, and by
inserting after subsection (e) the following:
``(f) Special Rule for Electric Charging Stations for
Certain Vehicles With 2 or 3 Wheels.--For purposes of this
section--
``(1) In general.--The term `qualified alternative fuel
vehicle refueling property' includes any property described
in subsection (c) for the recharging of a motor vehicle
described in paragraph (2), but only if such property--
``(A) meets the requirements of subsection (a)(2), and
``(B) is of a character subject to depreciation.
``(2) Motor vehicle.--A motor vehicle is described in this
paragraph if the motor vehicle--
``(A) is manufactured primarily for use on public streets,
roads, or highways (not including a vehicle operated
exclusively on a rail or rails),
``(B) has at least 2, but not more than 3, wheels, and
``(C) is propelled by electricity.''.
(d) Wage and Apprenticeship Requirements.--Section 30C, as
amended by this section, is further amended by redesignating
subsections (g) and (h) as subsections (h) and (i) and by
inserting after subsection (f) the following new subsection:
``(g) Wage and Apprenticeship Requirements.--
``(1) Increased credit amount.--

[[Page S3961]]

``(A) In general.--In the case of any qualified alternative
fuel vehicle refueling project which satisfies the
requirements of subparagraph (C), the amount of the credit
determined under subsection (a) for any qualified alternative
fuel vehicle refueling property of a character subject to an
allowance for depreciation which is part of such project
shall be equal to such amount (determined without regard to
this sentence) multiplied by 5.
``(B) Qualified alternative fuel vehicle refueling
project.--For purposes of this subsection, the term
`qualified alternative fuel vehicle refueling project' means
a project consisting of one or more properties that are part
of a single project.
``(C) Project requirements.--A project meets the
requirements of this subparagraph if it is one of the
following:
``(i) A project the construction of which begins prior to
the date that is 60 days after the Secretary publishes
guidance with respect to the requirements of paragraphs
(2)(A) and (3).
``(ii) A project which satisfies the requirements of
paragraphs (2)(A) and (3).
``(2) Prevailing wage requirements.--
``(A) In general.--The requirements described in this
subparagraph with respect to any qualified alternative fuel
vehicle refueling project are that the taxpayer shall ensure
that any laborers and mechanics employed by contractors and
subcontractors in the construction of any qualified
alternative fuel vehicle refueling property which is part of
such project shall be paid wages at rates not less than the
prevailing rates for construction, alteration, or repair of a
similar character in the locality in which such project is
located as most recently determined by the Secretary of
Labor, in accordance with subchapter IV of chapter 31 of
title 40, United States Code.
``(B) Correction and penalty related to failure to satisfy
wage requirements.--Rules similar to the rules of section
45(b)(7)(B) shall apply.
``(3) Apprenticeship requirements.--Rules similar to the
rules of section 45(b)(8) shall apply.
``(4) Regulations and guidance.--The Secretary shall issue
such regulations or other guidance as the Secretary
determines necessary or appropriate to carry out the purposes
of this subsection, including regulations or other guidance
which provides for requirements for recordkeeping or
information reporting for purposes of administering the
requirements of this subsection.''.
(e) Eligible Census Tracts.--Subsection (c) of section 30C,
as amended by subsection (b)(3), is amended by adding at the
end the following:
``(3) Property required to be located in eligible census
tracts.--
``(A) In general.--Property shall not be treated as
qualified alternative fuel vehicle refueling property unless
such property is placed in service in an eligible census
tract.
``(B) Eligible census tract.--
``(i) In general.--For purposes of this paragraph, the term
`eligible census tract' means any population census tract
which--

``(I) is described in section 45D(e), or
``(II) is not an urban area.

``(ii) Urban area.--For purposes of clause (i)(II), the
term `urban area' means a census tract (as defined by the
Bureau of the Census) which, according to the most recent
decennial census, has been designated as an urban area by the
Secretary of Commerce.''.
(f) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to property
placed in service after December 31, 2022.
(2) Extension.--The amendments made by subsection (a) shall
apply to property placed in service after December 31, 2021.

PART 5--INVESTMENT IN CLEAN ENERGY MANUFACTURING AND ENERGY SECURITY

SEC. 13501. EXTENSION OF THE ADVANCED ENERGY PROJECT CREDIT.

(a) Extension of Credit.--Section 48C is amended by
redesignating subsection (e) as subsection (f) and by
inserting after subsection (d) the following new subsection:
``(e) Additional Allocations.--
``(1) In general.--Not later than 180 days after the date
of enactment of this subsection, the Secretary shall
establish a program to consider and award certifications for
qualified investments eligible for credits under this section
to qualifying advanced energy project sponsors.
``(2) Limitation.--
``(A) In general.--The total amount of credits which may be
allocated under the program established under paragraph (1)
shall not exceed $10,000,000,000, of which not greater than
$6,000,000,000 may be allocated to qualified investments
which are not located within energy communities described in
clause (iii) of section 45(b)(11)(B).
``(B) No prior certification and allocation.--No credits
may be allocated under the program established under
paragraph (1) for any project which is located in a census
tract which, prior to the date of enactment of this
subsection, had received a certification and allocation of
credits under subsection (d).
``(3) Certifications.--
``(A) Application requirement.--Each applicant for
certification under this subsection shall submit an
application at such time and containing such information as
the Secretary may require.
``(B) Time to meet criteria for certification.--Each
applicant for certification shall have 2 years from the date
of acceptance by the Secretary of the application during
which to provide to the Secretary evidence that the
requirements of the certification have been met.
``(C) Period of issuance.--An applicant which receives a
certification shall have 2 years from the date of issuance of
the certification in order to place the project in service
and to notify the Secretary that such project has been so
placed in service, and if such project is not placed in
service by that time period, then the certification shall no
longer be valid. If any certification is revoked under this
subparagraph, the amount of the limitation under paragraph
(2) shall be increased by the amount of the credit with
respect to such revoked certification.
``(D) Location of project.--In the case of an applicant
which receives a certification, if the Secretary determines
that the project has been placed in service at a location
which is materially different than the location specified in
the application for such project, the certification shall no
longer be valid.
``(4) Credit rate conditioned upon wage and apprenticeship
requirements.--
``(A) Base rate.--For purposes of allocations under this
subsection, the amount of the credit determined under
subsection (a) shall be determined by substituting `6
percent' for `30 percent'.
``(B) Alternative rate.--In the case of any project which
satisfies the requirements of paragraphs (5)(A) and (6),
subparagraph (A) shall not apply.
``(5) Prevailing wage requirements.--
``(A) In general.--The requirements described in this
subparagraph with respect to a project are that the taxpayer
shall ensure that any laborers and mechanics employed by
contractors and subcontractors in the re-equipping,
expansion, or establishment of a manufacturing facility shall
be paid wages at rates not less than the prevailing rates for
construction, alteration, or repair of a similar character in
the locality in which such project is located as most
recently determined by the Secretary of Labor, in accordance
with subchapter IV of chapter 31 of title 40, United States
Code.
``(B) Correction and penalty related to failure to satisfy
wage requirements.--Rules similar to the rules of section
45(b)(7)(B) shall apply.
``(6) Apprenticeship requirements.--Rules similar to the
rules of section 45(b)(8) shall apply.
``(7) Disclosure of allocations.--The Secretary shall, upon
making a certification under this subsection, publicly
disclose the identity of the applicant and the amount of the
credit with respect to such applicant.''.
(b) Modification of Qualifying Advanced Energy Projects.--
Section 48C(c)(1)(A) is amended--
(1) by inserting ``, any portion of the qualified
investment of which is certified by the Secretary under
subsection (e) as eligible for a credit under this section''
after ``means a project'',
(2) in clause (i)--
(A) by striking ``a manufacturing facility for the
production of'' and inserting ``an industrial or
manufacturing facility for the production or recycling of'',
(B) in clause (I), by inserting ``water,'' after ``sun,'',
(C) in clause (II), by striking ``an energy storage system
for use with electric or hybrid-electric motor vehicles'' and
inserting ``energy storage systems and components'',
(D) in clause (III), by striking ``grids to support the
transmission of intermittent sources of renewable energy,
including storage of such energy'' and inserting ``grid
modernization equipment or components'',
(E) in subclause (IV), by striking ``and sequester carbon
dioxide emissions'' and inserting ``, remove, use, or
sequester carbon oxide emissions'',
(F) by striking subclause (V) and inserting the following:

``(V) equipment designed to refine, electrolyze, or blend
any fuel, chemical, or product which is--

``(aa) renewable, or
``(bb) low-carbon and low-emission,'',
(G) by striking subclause (VI),
(H) by redesignating subclause (VII) as subclause (IX),
(I) by inserting after subclause (V) the following new
subclauses:

``(VI) property designed to produce energy conservation
technologies (including residential, commercial, and
industrial applications),
``(VII) light-, medium-, or heavy-duty electric or fuel
cell vehicles, as well as--

``(aa) technologies, components, or materials for such
vehicles, and
``(bb) associated charging or refueling infrastructure,

``(VIII) hybrid vehicles with a gross vehicle weight rating
of not less than 14,000 pounds, as well as technologies,
components, or materials for such vehicles, or'', and

(J) in subclause (IX), as so redesignated, by striking
``and'' at the end, and
(3) by striking clause (ii) and inserting the following:
``(ii) which re-equips an industrial or manufacturing
facility with equipment designed to reduce greenhouse gas
emissions by at least 20 percent through the installation
of--

``(I) low- or zero-carbon process heat systems,
``(II) carbon capture, transport, utilization and storage
systems,

[[Page S3962]]

``(III) energy efficiency and reduction in waste from
industrial processes, or
``(IV) any other industrial technology designed to reduce
greenhouse gas emissions, as determined by the Secretary, or

``(iii) which re-equips, expands, or establishes an
industrial facility for the processing, refining, or
recycling of critical materials (as defined in section
7002(a) of the Energy Act of 2020 (30 U.S.C. 1606(a)).''.
(c) Conforming Amendment.--Subparagraph (A) of section
48C(c)(2) is amended to read as follows:
``(A) which is necessary for--
``(i) the production or recycling of property described in
clause (i) of paragraph (1)(A),
``(ii) re-equipping an industrial or manufacturing facility
described in clause (ii) of such paragraph, or
``(iii) re-equipping, expanding, or establishing an
industrial facility described in clause (iii) of such
paragraph,''.
(d) Denial of Double Benefit.--48C(f), as redesignated by
this section, is amended by striking ``or 48B'' and inserting
``48B, 48D, 45Q, or 45V''.
(e) Effective Date.--The amendments made by this section
shall take effect on January 1, 2023.

SEC. 13502. ADVANCED MANUFACTURING PRODUCTION CREDIT.

(a) In General.--Subpart D of part IV of subchapter A of
chapter 1, as amended by the preceding provisions of this
Act, is amended by adding at the end the following new
section:

``SEC. 45X. ADVANCED MANUFACTURING PRODUCTION CREDIT.

``(a) In General.--
``(1) Allowance of credit.--For purposes of section 38, the
advanced manufacturing production credit for any taxable year
is an amount equal to the sum of the credit amounts
determined under subsection (b) with respect to each eligible
component which is--
``(A) produced by the taxpayer, and
``(B) during the taxable year, sold by such taxpayer to an
unrelated person.
``(2) Production and sale must be in trade or business.--
Any eligible component produced and sold by the taxpayer
shall be taken into account only if the production and sale
described in paragraph (1) is in a trade or business of the
taxpayer.
``(3) Unrelated person.--For purposes of this subsection, a
taxpayer shall be treated as selling components to an
unrelated person if such component is sold to such person by
a person related to the taxpayer.
``(b) Credit Amount.--
``(1) In general.--Subject to paragraph (3), the amount
determined under this subsection with respect to any eligible
component, including any eligible component it incorporates,
shall be equal to--
``(A) in the case of a thin film photovoltaic cell or a
crystalline photovoltaic cell, an amount equal to the product
of--
``(i) 4 cents, multiplied by
``(ii) the capacity of such cell (expressed on a per direct
current watt basis),
``(B) in the case of a photovoltaic wafer, $12 per square
meter,
``(C) in the case of solar grade polysilicon, $3 per
kilogram,
``(D) in the case of a polymeric backsheet, 40 cents per
square meter,
``(E) in the case of a solar module, an amount equal to the
product of--
``(i) 7 cents, multiplied by
``(ii) the capacity of such module (expressed on a per
direct current watt basis),
``(F) in the case of a wind energy component--
``(i) if such component is a related offshore wind vessel,
an amount equal to 10 percent of the sales price of such
vessel, and
``(ii) if such component is not described in clause (i), an
amount equal to the product of--

``(I) the applicable amount with respect to such component
(as determined under paragraph (2)(A)), multiplied by
``(II) the total rated capacity (expressed on a per watt
basis) of the completed wind turbine for which such component
is designed,

``(G) in the case of a torque tube, 87 cents per kilogram,
``(H) in the case of a structural fastener, $2.28 per
kilogram,
``(I) in the case of an inverter, an amount equal to the
product of--
``(i) the applicable amount with respect to such inverter
(as determined under paragraph (2)(B)), multiplied by
``(ii) the capacity of such inverter (expressed on a per
alternating current watt basis),
``(J) in the case of electrode active materials, an amount
equal to 10 percent of the costs incurred by the taxpayer
with respect to production of such materials,
``(K) in the case of a battery cell, an amount equal to the
product of--
``(i) $35, multiplied by
``(ii) subject to paragraph (4), the capacity of such
battery cell (expressed on a kilowatt-hour basis),
``(L) in the case of a battery module, an amount equal to
the product of--
``(i) $10 (or, in the case of a battery module which does
not use battery cells, $45), multiplied by
``(ii) subject to paragraph (4), the capacity of such
battery module (expressed on a kilowatt-hour basis), and
``(M) in the case of any applicable critical mineral, an
amount equal to 10 percent of the costs incurred by the
taxpayer with respect to production of such mineral.
``(2) Applicable amounts.--
``(A) Wind energy components.--For purposes of paragraph
(1)(F)(ii), the applicable amount with respect to any wind
energy component shall be--
``(i) in the case of a blade, 2 cents,
``(ii) in the case of a nacelle, 5 cents,
``(iii) in the case of a tower, 3 cents, and
``(iv) in the case of an offshore wind foundation--

``(I) which uses a fixed platform, 2 cents, or
``(II) which uses a floating platform, 4 cents.

``(B) Inverters.--For purposes of paragraph (1)(I), the
applicable amount with respect to any inverter shall be--
``(i) in the case of a central inverter, 0.25 cents,
``(ii) in the case of a utility inverter, 1.5 cents,
``(iii) in the case of a commercial inverter, 2 cents,
``(iv) in the case of a residential inverter, 6.5 cents,
and
``(v) in the case of a microinverter or a distributed wind
inverter, 11 cents.
``(3) Phase out.--
``(A) In general.--Subject to subparagraph (C), in the case
of any eligible component sold after December 31, 2029, the
amount determined under this subsection with respect to such
component shall be equal to the product of--
``(i) the amount determined under paragraph (1) with
respect to such component, as determined without regard to
this paragraph, multiplied by
``(ii) the phase out percentage under subparagraph (B).
``(B) Phase out percentage.--The phase out percentage under
this subparagraph is equal to--
``(i) in the case of an eligible component sold during
calendar year 2030, 75 percent,
``(ii) in the case of an eligible component sold during
calendar year 2031, 50 percent,
``(iii) in the case of an eligible component sold during
calendar year 2032, 25 percent,
``(iv) in the case of an eligible component sold after
December 31, 2032, 0 percent.
``(C) Exception.--For purposes of determining the amount
under this subsection with respect to any applicable critical
mineral, this paragraph shall not apply.
``(4) Limitation on capacity of battery cells and battery
modules.--
``(A) In general.--For purposes of subparagraph (K)(ii) or
(L)(ii) of paragraph (1), the capacity determined under
either subparagraph with respect to a battery cell or battery
module shall not exceed a capacity-to-power ratio of 100:1.
``(B) Capacity-to-power ratio.--For purposes of this
paragraph, the term `capacity-to-power ratio' means, with
respect to a battery cell or battery module, the ratio of the
capacity of such cell or module to the maximum discharge
amount of such cell or module.
``(c) Definitions.--For purposes of this section--
``(1) Eligible component.--
``(A) In general.--The term `eligible component' means--
``(i) any solar energy component,
``(ii) any wind energy component,
``(iii) any inverter described in subparagraphs (B) through
(G) of paragraph (2),
``(iv) any qualifying battery component, and
``(v) any applicable critical mineral.
``(B) Application with other credits.--The term `eligible
component' shall not include any property which is produced
at a facility if the basis of any property which is part of
such facility is taken into account for purposes of the
credit allowed under section 48C after the date of the
enactment of this section.
``(2) Inverters.--
``(A) In general.--The term `inverter' means an end product
which is suitable to convert direct current electricity from
1 or more solar modules or certified distributed wind energy
systems into alternating current electricity.
``(B) Central inverter.--The term `central inverter' means
an inverter which is suitable for large utility-scale systems
and has a capacity which is greater than 1,000 kilowatts
(expressed on a per alternating current watt basis).
``(C) Commercial inverter.--The term `commercial inverter'
means an inverter which--
``(i) is suitable for commercial or utility-scale
applications,
``(ii) has a rated output of 208, 480, 600, or 800 volt
three-phase power, and
``(iii) has a capacity which is not less than 20 kilowatts
and not greater than 125 kilowatts (expressed on a per
alternating current watt basis).
``(D) Distributed wind inverter.--
``(i) In general.--The term `distributed wind inverter'
means an inverter which--

``(I) is used in a residential or non-residential system
which utilizes 1 or more certified distributed wind energy
systems, and
``(II) has a rated output of not greater than 150
kilowatts.

``(ii) Certified distributed wind energy system.--The term
`certified distributed wind energy system' means a wind
energy system which is certified by an accredited
certification agency to meet Standard 9.1-2009 of the
American Wind Energy Association (including any subsequent
revisions to or modifications of such Standard which have
been approved by the American National Standards Institute).

[[Page S3963]]

``(E) Microinverter.--The term `microinverter' means an
inverter which--
``(i) is suitable to connect with one solar module,
``(ii) has a rated output of--

``(I) 120 or 240 volt single-phase power, or
``(II) 208 or 480 volt three-phase power, and

``(iii) has a capacity which is not greater than 650 watts
(expressed on a per alternating current watt basis).
``(F) Residential inverter.--The term `residential
inverter' means an inverter which--
``(i) is suitable for a residence,
``(ii) has a rated output of 120 or 240 volt single-phase
power, and
``(iii) has a capacity which is not greater than 20
kilowatts (expressed on a per alternating current watt
basis).
``(G) Utility inverter.--The term `utility inverter' means
an inverter which--
``(i) is suitable for commercial or utility-scale systems,
``(ii) has a rated output of not less than 600 volt three-
phase power, and
``(iii) has a capacity which is greater than 125 kilowatts
and not greater than 1000 kilowatts (expressed on a per
alternating current watt basis)
``(3) Solar energy component.--
``(A) In general.--The term `solar energy component' means
any of the following:
``(i) Solar modules.
``(ii) Photovoltaic cells.
``(iii) Photovoltaic wafers.
``(iv) Solar grade polysilicon.
``(v) Torque tubes or structural fasteners.
``(vi) Polymeric backsheets.
``(B) Associated definitions.--
``(i) Photovoltaic cell.--The term `photovoltaic cell'
means the smallest semiconductor element of a solar module
which performs the immediate conversion of light into
electricity.
``(ii) Photovoltaic wafer.--The term `photovoltaic wafer'
means a thin slice, sheet, or layer of semiconductor material
of at least 240 square centimeters--

``(I) produced by a single manufacturer either--

``(aa) directly from molten or evaporated solar grade
polysilicon or deposition of solar grade thin film
semiconductor photon absorber layer, or
``(bb) through formation of an ingot from molten
polysilicon and subsequent slicing, and

``(II) which comprises the substrate or absorber layer of
one or more photovoltaic cells.

``(iii) Polymeric backsheet.--The term `polymeric
backsheet' means a sheet on the back of a solar module which
acts as an electric insulator and protects the inner
components of such module from the surrounding environment.
``(iv) Solar grade polysilicon.--The term `solar grade
polysilicon' means silicon which is--

``(I) suitable for use in photovoltaic manufacturing, and
``(II) purified to a minimum purity of 99.999999 percent
silicon by mass.

``(v) Solar module.--The term `solar module' means the
connection and lamination of photovoltaic cells into an
environmentally protected final assembly which is--

``(I) suitable to generate electricity when exposed to
sunlight, and
``(II) ready for installation without an additional
manufacturing process.

``(vi) Solar tracker.--The term `solar tracker' means a
mechanical system that moves solar modules according to the
position of the sun and to increase energy output.
``(vii) Solar tracker components.--

``(I) Torque tube.--The term `torque tube' means a
structural steel support element (including longitudinal
purlins) which--

``(aa) is part of a solar tracker,
``(bb) is of any cross-sectional shape,
``(cc) may be assembled from individually manufactured
segments,
``(dd) spans longitudinally between foundation posts,
``(ee) supports solar panels and is connected to a mounting
attachment for solar panels (with or without separate module
interface rails), and
``(ff) is rotated by means of a drive system.

``(II) Structural fastener.--The term `structural fastener'
means a component which is used--

``(aa) to connect the mechanical and drive system
components of a solar tracker to the foundation of such solar
tracker,
``(bb) to connect torque tubes to drive assemblies, or
``(cc) to connect segments of torque tubes to one another.
``(4) Wind energy component.--
``(A) In general.--The term `wind energy component' means
any of the following:
``(i) Blades.
``(ii) Nacelles.
``(iii) Towers.
``(iv) Offshore wind foundations.
``(v) Related offshore wind vessels.
``(B) Associated definitions.--
``(i) Blade.--The term `blade' means an airfoil-shaped
blade which is responsible for converting wind energy to low-
speed rotational energy.
``(ii) Offshore wind foundation.--The term `offshore wind
foundation' means the component (including transition piece)
which secures an offshore wind tower and any above-water
turbine components to the seafloor using--

``(I) fixed platforms, such as offshore wind monopiles,
jackets, or gravity-based foundations, or
``(II) floating platforms and associated mooring systems.

``(iii) Nacelle.--The term `nacelle' means the assembly of
the drivetrain and other tower-top components of a wind
turbine (with the exception of the blades and the hub) within
their cover housing.
``(iv) Related offshore wind vessel.--The term `related
offshore wind vessel' means any vessel which is purpose-built
or retrofitted for purposes of the development, transport,
installation, operation, or maintenance of offshore wind
energy components.
``(v) Tower.--The term `tower' means a tubular or lattice
structure which supports the nacelle and rotor of a wind
turbine.
``(5) Qualifying battery component.--
``(A) In general.--The term `qualifying battery component'
means any of the following:
``(i) Electrode active materials.
``(ii) Battery cells.
``(iii) Battery modules.
``(B) Associated definitions.--
``(i) Electrode active material.--The term `electrode
active material' means cathode materials, anode materials,
anode foils, and electrochemically active materials,
including solvents, additives, and electrolyte salts that
contribute to the electrochemical processes necessary for
energy storage .
``(ii) Battery cell.--The term `battery cell' means an
electrochemical cell--

``(I) comprised of 1 or more positive electrodes and 1 or
more negative electrodes,
``(II) with an energy density of not less than 100 watt-
hours per liter, and
``(III) capable of storing at least 20 watt-hours of
energy.

``(iii) Battery module.--The term `battery module' means a
module--

``(I)(aa) in the case of a module using battery cells, with
2 or more battery cells which are configured electrically, in
series or parallel, to create voltage or current, as
appropriate, to a specified end use, or
``(bb) with no battery cells, and
``(II) with an aggregate capacity of not less than 7
kilowatt-hours (or, in the case of a module for a hydrogen
fuel cell vehicle, not less than 1 kilowatt-hour).

``(6) Applicable critical minerals.--The term `applicable
critical mineral' means any of the following:
``(A) Aluminum.--Aluminum which is--
``(i) converted to metallurgical grade bauxite, or
``(ii) purified to a minimum purity of 99.99 percent
aluminum by mass.
``(B) Antimony.--Antimony which is--
``(i) converted to antimony trisulfide, or
``(ii) purified to a minimum purity of 99 percent antimony
by mass.
``(C) Barite.--Barite which is--
``(i) converted to barium sulfate, or
``(ii) purified to a minimum purity of 99 percent barite by
mass.
``(D) Beryllium.--Beryllium which is--
``(i) converted to copper-beryllium master alloy, or
``(ii) purified to a minimum purity of 99 percent beryllium
by mass.
``(E) Cerium.--Cerium which is--
``(i) converted to cerium oxide which is purified to a
minimum purity of 99.9 percent cerium oxide by mass, or
``(ii) purified to a minimum purity of 99 percent cerium by
mass.
``(F) Cesium.--Cesium which is--
``(i) converted to cesium formate or cesium carbonate, or
``(ii) purified to a minimum purity of 99 percent cesium by
mass.
``(G) Chromium.--Chromium which is--
``(i) converted to ferrochromium consisting of not less
than 60 percent chromium by mass, or
``(ii) purified to a minimum purity of 99 percent chromium
by mass.
``(H) Cobalt.--Cobalt which is--
``(i) converted to cobalt sulfate, or
``(ii) purified to a minimum purity of 99.6 percent cobalt
by mass.
``(I) Dysprosium.--Dysprosium which is--
``(i) converted to not less than 99 percent pure dysprosium
iron alloy by mass, or
``(ii) purified to a minimum purity of 99 percent
dysprosium by mass.
``(J) Europium.--Europium which is--
``(i) converted to europium oxide which is purified to a
minimum purity of 99.9 percent europium oxide by mass, or
``(ii) purified to a minimum purity of 99 percent by mass.
``(K) Fluorspar.--Fluorspar which is--
``(i) converted to acid grade fluorspar which is purified
to a minimum purity of 97 percent calcium fluoride by mass,
or
``(ii) purified to a minimum purity of 99 percent fluorspar
by mass.
``(L) Gadolinium.--Gadolinium which is--
``(i) converted to gadolinium oxide which is purified to a
minimum purity of 99.9 percent gadolinium oxide by mass, or
``(ii) purified to a minimum purity of 99 percent
gadolinium by mass.
``(M) Germanium.--Germanium which is--
``(i) converted to germanium tetrachloride, or
``(ii) purified to a minimum purity of 99 percent germanium
by mass.
``(N) Graphite.--Graphite which is purified to a minimum
purity of 99.9 percent graphitic carbon by mass.
``(O) Indium.--Indium which is--
``(i) converted to--

``(I) indium tin oxide, or

[[Page S3964]]

``(II) indium oxide which is purified to a minimum purity
of 99.9 percent indium oxide by mass, or

``(ii) purified to a minimum purity of 99 percent indium by
mass.
``(P) Lithium.--Lithium which is--
``(i) converted to lithium carbonate or lithium hydroxide,
or
``(ii) purified to a minimum purity of 99.9 percent lithium
by mass.
``(Q) Manganese.--Manganese which is--
``(i) converted to manganese sulphate, or
``(ii) purified to a minimum purity of 99.7 percent
manganese by mass.
``(R) Neodymium.--Neodymium which is--
``(i) converted to neodymium-praseodymium oxide, or
``(ii) purified to a minimum purity of 99 percent neodymium
by mass.
``(S) Nickel.--Nickel which is--
``(i) converted to nickel sulphate, or
``(ii) purified to a minimum purity of 99 percent nickel by
mass.
``(T) Niobium.--Niobium which is--
``(i) converted to ferronibium, or
``(ii) purified to a minimum purity of 99 percent niobium
by mass.
``(U) Tellurium.--Tellurium which is--
``(i) converted to cadmium telluride, or
``(ii) purified to a minimum purity of 99 percent tellurium
by mass.
``(V) Tin.--Tin which is--
``(i) converted to indium tin oxide, or
``(ii) purified to low alpha emitting tin which--

``(I) has a purity of greater than 99.99 percent by mass,
and
``(II) possesses an alpha emission rate of not greater than
0.01 counts per hour per centimeter square.

``(W) Tungsten.--Tungsten which is converted to ammonium
paratungstate or ferrotungsten.
``(X) Vanadium.--Vanadium which is converted to
ferrovanadium or vanadium pentoxide.
``(Y) Yttrium.--Yttrium which is--
``(i) converted to yttrium oxide which is purified to a
minimum purity of 99.9 percent yttrium oxide by mass, or
``(ii) purified to a minimum purity of 99 percent yttrium
by mass.
``(Z) Other minerals.--Any of the following minerals,
provided that such mineral is purified to a minimum purity of
99 percent by mass:
``(i) Arsenic.
``(ii) Bismuth.
``(iii) Erbium.
``(iv) Gallium.
``(v) Hafnium.
``(vi) Holmium.
``(vii) Iridium.
``(viii) Lanthanum.
``(ix) Lutetium.
``(x) Magnesium.
``(xi) Palladium.
``(xii) Platinum.
``(xiii) Praseodymium.
``(xiv) Rhodium.
``(xv) Rubidium.
``(xvi) Ruthenium.
``(xvii) Samarium.
``(xviii) Scandium.
``(xix) Tantalum.
``(xx) Terbium.
``(xxi) Thulium.
``(xxii) Titanium.
``(xxiii) Ytterbium.
``(xxiv) Zinc.
``(xxv) Zirconium.
``(d) Special Rules.--In this section--
``(1) Related persons.--Persons shall be treated as related
to each other if such persons would be treated as a single
employer under the regulations prescribed under section
52(b).
``(2) Only production in the united states taken into
account.--Sales shall be taken into account under this
section only with respect to eligible components the
production of which is within--
``(A) the United States (within the meaning of section
638(1)), or
``(B) a possession of the United States (within the meaning
of section 638(2)).
``(3) Pass-thru in the case of estates and trusts.--Under
regulations prescribed by the Secretary, rules similar to the
rules of subsection (d) of section 52 shall apply.
``(4) Sale of integrated components.--For purposes of this
section, a person shall be treated as having sold an eligible
component to an unrelated person if such component is
integrated, incorporated, or assembled into another eligible
component which is sold to an unrelated person.''.
(b) Conforming Amendments.--
(1) Section 38(b) of the Internal Revenue Code of 1986, as
amended by the preceding provisions of this Act, is amended--
(A) in paragraph (36), by striking ``plus'' at the end,
(B) in paragraph (37), by striking the period at the end
and inserting ``, plus'', and
(C) by adding at the end the following new paragraph:
``(38) the advanced manufacturing production credit
determined under section 45X(a).''.
(2) The table of sections for subpart D of part IV of
subchapter A of chapter 1, as amended by the preceding
provisions of this Act, is amended by adding at the end the
following new item:

``Sec. 45X. Advanced manufacturing production credit.''.
(c) Effective Date.--The amendments made by this section
shall apply to components produced and sold after December
31, 2022.

PART 6--SUPERFUND

SEC. 13601. REINSTATEMENT OF SUPERFUND.

(a)  Hazardous Substance Superfund Financing Rate.--
(1) Extension.--Section 4611 is amended by striking
subsection (e).
(2) Adjustment for inflation.--
(A) Section 4611(c)(2)(A) is amended by striking ``9.7
cents'' and inserting ``16.4 cents''.
(B) Section 4611(c) is amended by adding at the end the
following:
``(3) Adjustment for inflation.--
``(A) In general.--In the case of a year beginning after
2023, the amount in paragraph (2)(A) shall be increased by an
amount equal to--
``(i) such amount, multiplied by
``(ii) the cost-of-living adjustment determined under
section 1(f)(3) for the calendar year, determined by
substituting `calendar year 2022' for `calendar year 2016' in
subparagraph (A)(ii) thereof.
``(B) Rounding.--If any amount as adjusted under
subparagraph (A) is not a multiple of $0.01, such amount
shall be rounded to the next lowest multiple of $0.01.''.
(b) Authority for Advances.--Section 9507(d)(3)(B) is
amended by striking ``December 31, 1995'' and inserting
``December 31, 2032''.
(c) Effective Date.--The amendments made by this section
shall take effect on January 1, 2023.

PART 7--INCENTIVES FOR CLEAN ELECTRICITY AND CLEAN TRANSPORTATION

SEC. 13701. CLEAN ELECTRICITY PRODUCTION CREDIT.

(a) In General.--Subpart D of part IV of subchapter A of
chapter 1, as amended by the preceding provisions of this
Act, is amended by adding at the end the following new
section:

``SEC. 45Y. CLEAN ELECTRICITY PRODUCTION CREDIT.

``(a) Amount of Credit.--
``(1) In general.--For purposes of section 38, the clean
electricity production credit for any taxable year is an
amount equal to the product of--
``(A) the kilowatt hours of electricity--
``(i) produced by the taxpayer at a qualified facility, and
``(ii)(I) sold by the taxpayer to an unrelated person
during the taxable year, or
``(II) in the case of a qualified facility which is
equipped with a metering device which is owned and operated
by an unrelated person, sold, consumed, or stored by the
taxpayer during the taxable year, multiplied by
``(B) the applicable amount with respect to such qualified
facility.
``(2) Applicable amount.--
``(A) Base amount.--Subject to subsection (g)(7), in the
case of any qualified facility which is not described in
clause (i) or (ii) of subparagraph (B) and does not satisfy
the requirements described in clause (iii) of such
subparagraph, the applicable amount shall be 0.3 cents.
``(B) Alternative amount.--Subject to subsection (g)(7), in
the case of any qualified facility--
``(i) with a maximum net output of less than 1 megawatt (as
measured in alternating current),
``(ii) the construction of which begins prior to the date
that is 60 days after the Secretary publishes guidance with
respect to the requirements of paragraphs (9) and (10) of
subsection (g), or
``(iii) which--

``(I) satisfies the requirements under paragraph (9) of
subsection (g), and
``(II) with respect to the construction of such facility,
satisfies the requirements under paragraph (10) of subsection
(g),

the applicable amount shall be 1.5 cents.
``(b) Qualified Facility.--
``(1) In general.--
``(A) Definition.--Subject to subparagraphs (B), (C), and
(D), the term `qualified facility' means a facility owned by
the taxpayer--
``(i) which is used for the generation of electricity,
``(ii) which is placed in service after December 31, 2024,
and
``(iii) for which the greenhouse gas emissions rate (as
determined under paragraph (2)) is not greater than zero.
``(B) 10-year production credit.--For purposes of this
section, a facility shall only be treated as a qualified
facility during the 10-year period beginning on the date the
facility was originally placed in service.
``(C) Expansion of facility; incremental production.--The
term `qualified facility' shall include either of the
following in connection with a facility described in
subparagraph (A) (without regard to clause (ii) of such
subparagraph) which was placed in service before January 1,
2025, but only to the extent of the increased amount of
electricity produced at the facility by reason of the
following:
``(i) A new unit which is placed in service after December
31, 2024.
``(ii) Any additions of capacity which are placed in
service after December 31, 2024.
``(D) Coordination with other credits.--The term `qualified
facility' shall not include any facility for which a credit
determined under section 45, 45J, 45Q, 45U, 48, 48A, or 48D
is allowed under section 38 for the taxable year or any prior
taxable year.
``(2) Greenhouse gas emissions rate.--
``(A) In general.--For purposes of this section, the term
`greenhouse gas emissions rate' means the amount of
greenhouse gases emitted into the atmosphere by a facility in

[[Page S3965]]

the production of electricity, expressed as grams of
CO<inf>2</inf>e per KWh.
``(B) Fuel combustion and gasification.--In the case of a
facility which produces electricity through combustion or
gasification, the greenhouse gas emissions rate for such
facility shall be equal to the net rate of greenhouse gases
emitted into the atmosphere by such facility (taking into
account lifecycle greenhouse gas emissions, as described in
section 211(o)(1)(H) of the Clean Air Act (42 U.S.C.
7545(o)(1)(H))) in the production of electricity, expressed
as grams of CO<inf>2</inf>e per KWh.
``(C) Establishment of emissions rates for facilities.--
``(i) Publishing emissions rates.--The Secretary shall
annually publish a table that sets forth the greenhouse gas
emissions rates for types or categories of facilities, which
a taxpayer shall use for purposes of this section.
``(ii) Provisional emissions rate.--In the case of any
facility for which an emissions rate has not been established
by the Secretary, a taxpayer which owns such facility may
file a petition with the Secretary for determination of the
emissions rate with respect to such facility.
``(D) Carbon capture and sequestration equipment.--For
purposes of this subsection, the amount of greenhouse gases
emitted into the atmosphere by a facility in the production
of electricity shall not include any qualified carbon dioxide
that is captured by the taxpayer and--
``(i) pursuant to any regulations established under
paragraph (2) of section 45Q(f), disposed of by the taxpayer
in secure geological storage, or
``(ii) utilized by the taxpayer in a manner described in
paragraph (5) of such section.
``(c) Inflation Adjustment.--
``(1) In general.--In the case of a calendar year beginning
after 2024, the 0.3 cent amount in paragraph (2)(A) of
subsection (a) and the 1.5 cent amount in paragraph (2)(B) of
such subsection shall each be adjusted by multiplying such
amount by the inflation adjustment factor for the calendar
year in which the sale, consumption, or storage of the
electricity occurs. If the 0.3 cent amount as increased under
this paragraph is not a multiple of 0.05 cent, such amount
shall be rounded to the nearest multiple of 0.05 cent. If the
1.5 cent amount as increased under this paragraph is not a
multiple of 0.1 cent, such amount shall be rounded to the
nearest multiple of 0.1 cent.
``(2) Annual computation.--The Secretary shall, not later
than April 1 of each calendar year, determine and publish in
the Federal Register the inflation adjustment factor for such
calendar year in accordance with this subsection.
``(3) Inflation adjustment factor.--The term `inflation
adjustment factor' means, with respect to a calendar year, a
fraction the numerator of which is the GDP implicit price
deflator for the preceding calendar year and the denominator
of which is the GDP implicit price deflator for the calendar
year 1992. The term `GDP implicit price deflator' means the
most recent revision of the implicit price deflator for the
gross domestic product as computed and published by the
Department of Commerce before March 15 of the calendar year.
``(d) Credit Phase-out.--
``(1) In general.--The amount of the clean electricity
production credit under subsection (a) for any qualified
facility the construction of which begins during a calendar
year described in paragraph (2) shall be equal to the product
of--
``(A) the amount of the credit determined under subsection
(a) without regard to this subsection, multiplied by
``(B) the phase-out percentage under paragraph (2).
``(2) Phase-out percentage.--The phase-out percentage under
this paragraph is equal to--
``(A) for a facility the construction of which begins
during the first calendar year following the applicable year,
100 percent,
``(B) for a facility the construction of which begins
during the second calendar year following the applicable
year, 75 percent,
``(C) for a facility the construction of which begins
during the third calendar year following the applicable year,
50 percent, and
``(D) for a facility the construction of which begins
during any calendar year subsequent to the calendar year
described in subparagraph (C), 0 percent.
``(3) Applicable year.--For purposes of this subsection,
the term `applicable year' means the later of--
``(A) the calendar year in which the Secretary determines
that the annual greenhouse gas emissions from the production
of electricity in the United States are equal to or less than
25 percent of the annual greenhouse gas emissions from the
production of electricity in the United States for calendar
year 2022, or
``(B) 2032.
``(e) Definitions.--For purposes of this section:
``(1) CO<inf>2</inf>e per KWh.--The term `CO<inf>2</inf>e
per KWh' means, with respect to any greenhouse gas, the
equivalent carbon dioxide (as determined based on global
warming potential) per kilowatt hour of electricity produced.
``(2) Greenhouse gas.--The term `greenhouse gas' has the
same meaning given such term under section 211(o)(1)(G) of
the Clean Air Act (42 U.S.C. 7545(o)(1)(G)), as in effect on
the date of the enactment of this section.
``(3) Qualified carbon dioxide.--The term `qualified carbon
dioxide' means carbon dioxide captured from an industrial
source which--
``(A) would otherwise be released into the atmosphere as
industrial emission of greenhouse gas,
``(B) is measured at the source of capture and verified at
the point of disposal or utilization, and
``(C) is captured and disposed or utilized within the
United States (within the meaning of section 638(1)) or a
possession of the United States (within the meaning of
section 638(2)).
``(f) Guidance.--Not later than January 1, 2025, the
Secretary shall issue guidance regarding implementation of
this section, including calculation of greenhouse gas
emission rates for qualified facilities and determination of
clean electricity production credits under this section.
``(g) Special Rules.--
``(1) Only production in the united states taken into
account.--Consumption, sales, or storage shall be taken into
account under this section only with respect to electricity
the production of which is within--
``(A) the United States (within the meaning of section
638(1)), or
``(B) a possession of the United States (within the meaning
of section 638(2)).
``(2) Combined heat and power system property.--
``(A) In general.--For purposes of subsection (a)--
``(i) the kilowatt hours of electricity produced by a
taxpayer at a qualified facility shall include any production
in the form of useful thermal energy by any combined heat and
power system property within such facility, and
``(ii) the amount of greenhouse gases emitted into the
atmosphere by such facility in the production of such useful
thermal energy shall be included for purposes of determining
the greenhouse gas emissions rate for such facility.
``(B) Combined heat and power system property.--For
purposes of this paragraph, the term `combined heat and power
system property' has the same meaning given such term by
section 48(c)(3) (without regard to subparagraphs (A)(iv),
(B), and (D) thereof).
``(C) Conversion from btu to kwh.--
``(i) In general.--For purposes of subparagraph (A)(i), the
amount of kilowatt hours of electricity produced in the form
of useful thermal energy shall be equal to the quotient of--

``(I) the total useful thermal energy produced by the
combined heat and power system property within the qualified
facility, divided by
``(II) the heat rate for such facility.

``(ii) Heat rate.--For purposes of this subparagraph, the
term `heat rate' means the amount of energy used by the
qualified facility to generate 1 kilowatt hour of
electricity, expressed as British thermal units per net
kilowatt hour generated.
``(3) Production attributable to the taxpayer.--In the case
of a qualified facility in which more than 1 person has an
ownership interest, except to the extent provided in
regulations prescribed by the Secretary, production from the
facility shall be allocated among such persons in proportion
to their respective ownership interests in the gross sales
from such facility.
``(4) Related persons.--Persons shall be treated as related
to each other if such persons would be treated as a single
employer under the regulations prescribed under section
52(b). In the case of a corporation which is a member of an
affiliated group of corporations filing a consolidated
return, such corporation shall be treated as selling
electricity to an unrelated person if such electricity is
sold to such a person by another member of such group.
``(5) Pass-thru in the case of estates and trusts.--Under
regulations prescribed by the Secretary, rules similar to the
rules of subsection (d) of section 52 shall apply.
``(6) Allocation of credit to patrons of agricultural
cooperative.--
``(A) Election to allocate.--
``(i) In general.--In the case of an eligible cooperative
organization, any portion of the credit determined under
subsection (a) for the taxable year may, at the election of
the organization, be apportioned among patrons of the
organization on the basis of the amount of business done by
the patrons during the taxable year.
``(ii) Form and effect of election.--An election under
clause (i) for any taxable year shall be made on a timely
filed return for such year. Such election, once made, shall
be irrevocable for such taxable year. Such election shall not
take effect unless the organization designates the
apportionment as such in a written notice mailed to its
patrons during the payment period described in section
1382(d).
``(B) Treatment of organizations and patrons.--The amount
of the credit apportioned to any patrons under subparagraph
(A)--
``(i) shall not be included in the amount determined under
subsection (a) with respect to the organization for the
taxable year, and
``(ii) shall be included in the amount determined under
subsection (a) for the first taxable year of each patron
ending on or after the last day of the payment period (as
defined in section 1382(d)) for the taxable year of the
organization or, if earlier, for the taxable year of each
patron ending on or after the date on which the patron
receives notice from the cooperative of the apportionment.

[[Page S3966]]

``(C) Special rules for decrease in credits for taxable
year.--If the amount of the credit of a cooperative
organization determined under subsection (a) for a taxable
year is less than the amount of such credit shown on the
return of the cooperative organization for such year, an
amount equal to the excess of--
``(i) such reduction, over
``(ii) the amount not apportioned to such patrons under
subparagraph (A) for the taxable year,
shall be treated as an increase in tax imposed by this
chapter on the organization. Such increase shall not be
treated as tax imposed by this chapter for purposes of
determining the amount of any credit under this chapter.
``(D) Eligible cooperative defined.--For purposes of this
section, the term `eligible cooperative' means a cooperative
organization described in section 1381(a) which is owned more
than 50 percent by agricultural producers or by entities
owned by agricultural producers. For this purpose an entity
owned by an agricultural producer is one that is more than 50
percent owned by agricultural producers.
``(7) Increase in credit in energy communities.--In the
case of any qualified facility which is located in an energy
community (as defined in section 45(b)(11)(B)), for purposes
of determining the amount of the credit under subsection (a)
with respect to any electricity produced by the taxpayer at
such facility during the taxable year, the applicable amount
under paragraph (2) of such subsection shall be increased by
an amount equal to 10 percent of the amount otherwise in
effect under such paragraph (without application of
subparagraph (B)).
``(8) Credit reduced for tax-exempt bonds.--Rules similar
to the rules of section 45(b)(3) shall apply.
``(9) Wage requirements.--Rules similar to the rules of
section 45(b)(7) shall apply.
``(10) Apprenticeship requirements.--Rules similar to the
rules of section 45(b)(8) shall apply.
``(11) Domestic content bonus credit amount.--
``(A) In general.--In the case of any qualified facility
which satisfies the requirement under subparagraph (B)(i),
the amount of the credit determined under subsection (a)
shall be increased by an amount equal to 10 percent of the
amount so determined.
``(B) Requirement.--
``(i) In general.--The requirement described in this
subclause is satisfied with respect to any qualified facility
if the taxpayer certifies to the Secretary (at such time, and
in such form and manner, as the Secretary may prescribe) that
any steel, iron, or manufactured product which is a component
of such facility (upon completion of construction) was
produced in the United States (as determined under section
661 of title 49, Code of Federal Regulations).
``(ii) Steel and iron.--In the case of steel or iron,
clause (i) shall be applied in a manner consistent with
section 661.5 of title 49, Code of Federal Regulations.
``(iii) Manufactured product.--For purposes of clause (i),
the manufactured products which are components of a qualified
facility upon completion of construction shall be deemed to
have been produced in the United States if not less than the
adjusted percentage (as determined under subparagraph (C)) of
the total costs of all such manufactured products of such
facility are attributable to manufactured products (including
components) which are mined, produced, or manufactured in the
United States.
``(C) Adjusted percentage.--
``(i) In general.--Subject to subclause (ii), for purposes
of subparagraph (B)(iii), the adjusted percentage shall be--

``(I) in the case of a facility the construction of which
begins after December 31, 2024, and before January 1, 2026,
45 percent,
``(II) in the case of a facility the construction of which
begins after December 31, 2025, and before January 1, 2027,
50 percent, and
``(III) in the case of a facility the construction of which
begins after December 31, 2026, 55 percent.

``(ii) Offshore wind facility.--For purposes of
subparagraph (B)(iii), in the case of a qualified facility
which is an offshore wind facility, the adjusted percentage
shall be--

``(I) in the case of a facility the construction of which
begins after December 31, 2024, and before January 1, 2026,
27.5 percent,
``(II) in the case of a facility the construction of which
begins after December 31, 2025, and before January 1, 2027,
35 percent,
``(III) in the case of a facility the construction of which
begins after December 31, 2026, and before January 1, 2028,
45 percent, and
``(IV) in the case of a facility the construction of which
begins after December 31, 2027, 55 percent.

``(12) Phaseout for elective payment.--
``(A) In general.--In the case of a taxpayer making an
election under section 6417 with respect to a credit under
this section, the amount of such credit shall be replaced
with--
``(i) the value of such credit (determined without regard
to this paragraph), multiplied by
``(ii) the applicable percentage.
``(B) 100 percent applicable percentage for certain
qualified facilities.--In the case of any qualified
facility--
``(i) which satisfies the requirements under paragraph
(11)(B) with respect to the construction of such facility, or
``(ii) with a maximum net output of less than 1 megawatt
(as measured in alternating current),
the applicable percentage shall be 100 percent.
``(C) Phased domestic content requirement.--Subject to
subparagraph (D), in the case of any qualified facility which
is not described in subparagraph (B), the applicable
percentage shall be--
``(i) if construction of such facility began in calendar
year 2025, 85 percent, and
``(ii) if construction of such facility began after
December 31, 2025, 0 percent.
``(D) Exception.--
``(i) In general.--For purposes of this paragraph, the
Secretary shall provide exceptions to the requirements under
this paragraph for the construction of qualified facilities
if--

``(I) the inclusion of steel, iron, or manufactured
products which are produced in the United States increases
the overall costs of construction of qualified facilities by
more than 25 percent, or
``(II) relevant steel, iron, or manufactured products are
not produced in the United States in sufficient and
reasonably available quantities or of a satisfactory quality.

``(ii) Applicable percentage.--In any case in which the
Secretary provides an exception pursuant to clause (i), the
applicable percentage shall be 100 percent.''.
(b) Conforming Amendments.--
(1) Section 38(b), as amended by the preceding provisions
of this Act, is amended--
(A) in paragraph (37), by striking ``plus'' at the end,
(B) in paragraph (38), by striking the period at the end
and inserting ``, plus'', and
(C) by adding at the end the following new paragraph:
``(39) the clean electricity production credit determined
under section 45Y(a).''.
(2) The table of sections for subpart D of part IV of
subchapter A of chapter 1, as amended by the preceding
provisions of this Act, is amended by adding at the end the
following new item:

``Sec. 45Y. Clean electricity production credit.''.
(c) Effective Date.--The amendments made by this section
shall apply to facilities placed in service after December
31, 2024.

SEC. 13702. CLEAN ELECTRICITY INVESTMENT CREDIT.

(a) In General.--Subpart E of part IV of subchapter A of
chapter 1 is amended by inserting after section 48C the
following new section:

``SEC. 48D. CLEAN ELECTRICITY INVESTMENT CREDIT.

``(a) Investment Credit for Qualified Property.--
``(1) In general.--For purposes of section 46, the clean
electricity investment credit for any taxable year is an
amount equal to the applicable percentage of the qualified
investment for such taxable year with respect to--
``(A) any qualified facility, and
``(B) any energy storage technology.
``(2) Applicable percentage.--
``(A) Qualified facilities.--Subject to paragraph (3)--
``(i) Base rate.--In the case of any qualified facility
which is not described in subclause (I) or (II) of clause
(ii) and does not satisfy the requirements described in
subclause (III) of such clause, the applicable percentage
shall be 6 percent.
``(ii) Alternative rate.--In the case of any qualified
facility--

``(I) with a maximum net output of less than 1 megawatt (as
measured in alternating current),
``(II) the construction of which begins prior to the date
that is 60 days after the Secretary publishes guidance with
respect to the requirements of paragraphs (3) and (4) of
subsection (d), or
``(III) which--

``(aa) satisfies the requirements of subsection (d)(3), and
``(bb) with respect to the construction of such facility,
satisfies the requirements of subsection (d)(4),
the applicable percentage shall be 30 percent.
``(B) Energy storage technology.--Subject to paragraph
(3)--
``(i) Base rate.--In the case of any energy storage
technology which is not described in subclause (I) or (II) of
clause (ii) and does not satisfy the requirements described
in subclause (III) of such clause, the applicable percentage
shall be 6 percent.
``(ii) Alternative rate.--In the case of any energy storage
technology--

``(I) with a capacity of less than 1 megawatt,
``(II) the construction of which begins prior to the date
that is 60 days after the Secretary publishes guidance with
respect to the requirements of paragraphs (3) and (4) of
subsection (d), or
``(III) which--

``(aa) satisfies the requirements of subsection (d)(3), and
``(bb) with respect to the construction of such property,
satisfies the requirements of subsection (d)(4),
the applicable percentage shall be 30 percent.
``(3) Increase in credit rate in certain cases.--
``(A) Energy communities.--
``(i) In general.--In the case of any qualified investment
with respect to a qualified facility or with respect to
energy storage technology which is placed in service within
an energy community (as defined in section 45(b)(11)(B)), for
purposes applying paragraph

[[Page S3967]]

(2) with respect to such property or investment, the
applicable percentage shall be increased by the applicable
credit rate increase.
``(ii) Applicable credit rate increase.--For purposes of
clause (i), the applicable credit rate increase shall be an
amount equal to--

``(I) in the case of any qualified investment with respect
to a qualified facility described in paragraph (2)(A)(i) or
with respect to energy storage technology described in
paragraph (2)(B)(i), 2 percentage points, and
``(II) in the case of any qualified investment with respect
to a qualified facility described in paragraph (2)(A)(ii) or
with respect to energy storage technology described in
paragraph (2)(B)(ii), 10 percentage points.

``(B) Domestic content.--Rules similar to the rules of
section 48(a)(12) shall apply.
``(b) Qualified Investment With Respect to a Qualified
Facility.--
``(1) In general.--For purposes of subsection (a), the
qualified investment with respect to any qualified facility
for any taxable year is the sum of--
``(A) the basis of any qualified property placed in service
by the taxpayer during such taxable year which is part of a
qualified facility, plus
``(B) the amount of any expenditures which are--
``(i) paid or incurred by the taxpayer for qualified
interconnection property--

``(I) in connection with a qualified facility which has a
maximum net output of not greater than 5 megawatts (as
measured in alternating current), and
``(II) placed in service during the taxable year of the
taxpayer, and

``(ii) properly chargeable to capital account of the
taxpayer.
``(2) Qualified property.--For purposes of this section,
the term `qualified property' means property--
``(A) which is--
``(i) tangible personal property, or
``(ii) other tangible property (not including a building or
its structural components), but only if such property is used
as an integral part of the qualified facility,
``(B) with respect to which depreciation (or amortization
in lieu of depreciation) is allowable, and
``(C)(i) the construction, reconstruction, or erection of
which is completed by the taxpayer, or
``(ii) which is acquired by the taxpayer if the original
use of such property commences with the taxpayer.
``(3) Qualified facility.--
``(A) In general.--For purposes of this section, the term
`qualified facility' means a facility--
``(i) which is used for the generation of electricity,
``(ii) which is placed in service after December 31, 2024,
and
``(iii) for which the anticipated greenhouse gas emissions
rate (as determined under subparagraph (B)(ii)) is not
greater than zero.
``(B) Additional rules.--
``(i) Expansion of facility; incremental production.--Rules
similar to the rules of section 45Y(b)(1)(C) shall apply for
purposes of this paragraph.
``(ii) Greenhouse gas emissions rate.--Rules similar to the
rules of section 45Y(b)(2) shall apply for purposes of this
paragraph.
``(C) Exclusion.--The term `qualified facility' shall not
include any facility for which--
``(i) a renewable electricity production credit determined
under section 45,
``(ii) an advanced nuclear power facility production credit
determined under section 45J,
``(iii) a carbon oxide sequestration credit determined
under section 45Q,
``(iv) a zero-emission nuclear power production credit
determined under section 45U,
``(v) a clean electricity production credit determined
under section 45Y,
``(vi) an energy credit determined under section 48, or
``(vii) a qualifying advanced coal project credit under
section 48A,
is allowed under section 38 for the taxable year or any prior
taxable year.
``(4) Qualified interconnection property.--For purposes of
this paragraph, the term `qualified interconnection property'
has the meaning given such term in section 48(a)(8)(B).
``(5) Coordination with rehabilitation credit.--The
qualified investment with respect to any qualified facility
for any taxable year shall not include that portion of the
basis of any property which is attributable to qualified
rehabilitation expenditures (as defined in section 47(c)(2)).
``(6) Definitions.--For purposes of this subsection, the
terms `CO2e per KWh' and `greenhouse gas emissions rate' have
the same meaning given such terms under section 45Y.
``(c) Qualified Investment With Respect to Energy Storage
Technology.--
``(1) Qualified investment.--For purposes of subsection
(a), the qualified investment with respect to energy storage
technology for any taxable year is the basis of any energy
storage technology placed in service by the taxpayer during
such taxable year.
``(2) Energy storage technology.--For purposes of this
section, the term `energy storage technology' has the meaning
given such term in section 48(c)(6) (except that subparagraph
(D) of such section shall not apply).
``(d) Special Rules.--
``(1) Certain progress expenditure rules made applicable.--
Rules similar to the rules of subsections (c)(4) and (d) of
section 46 (as in effect on the day before the date of the
enactment of the Revenue Reconciliation Act of 1990) shall
apply for purposes of subsection (a).
``(2) Special rule for property financed by subsidized
energy financing or private activity bonds.--Rules similar to
the rules of section 45(b)(3) shall apply.
``(3) Prevailing wage requirements.--Rules similar to the
rules of section 48(a)(10) shall apply.
``(4) Apprenticeship requirements.--Rules similar to the
rules of section 45(b)(8) shall apply.
``(5) Domestic content requirement for elective payment.--
In the case of a taxpayer making an election under section
6417 with respect to a credit under this section, rules
similar to the rules of section 45(b)(10) shall apply.
``(e) Credit Phase-Out.--
``(1) In general.--The amount of the clean electricity
investment credit under subsection (a) for any qualified
investment with respect to any qualified facility or energy
storage technology the construction of which begins during a
calendar year described in paragraph (2) shall be equal to
the product of--
``(A) the amount of the credit determined under subsection
(a) without regard to this subsection, multiplied by
``(B) the phase-out percentage under paragraph (2).
``(2) Phase-out percentage.--The phase-out percentage under
this paragraph is equal to--
``(A) for any qualified investment with respect to any
qualified facility or energy storage technology the
construction of which begins during the first calendar year
following the applicable year, 100 percent,
``(B) for any qualified investment with respect to any
qualified facility or energy storage technology the
construction of which begins during the second calendar year
following the applicable year, 75 percent,
``(C) for any qualified investment with respect to any
qualified facility or energy storage technology the
construction of which begins during the third calendar year
following the applicable year, 50 percent, and
``(D) for any qualified investment with respect to any
qualified facility or energy storage technology the
construction of which begins during any calendar year
subsequent to the calendar year described in subparagraph
(C), 0 percent.
``(3) Applicable year.--For purposes of this subsection,
the term `applicable year' has the same meaning given such
term in section 45Y(d)(3).
``(f) Greenhouse Gas.--In this section, the term
`greenhouse gas' has the same meaning given such term under
section 45Y(e)(2).
``(g) Recapture of Credit.--For purposes of section 50, if
the Secretary determines that the greenhouse gas emissions
rate for a qualified facility is greater than 10 grams of
CO<inf>2</inf>e per KWh, any property for which a credit was
allowed under this section with respect to such facility
shall cease to be investment credit property in the taxable
year in which the determination is made.
``(h) Special Rules for Certain Facilities Placed in
Service in Connection With Low-income Communities.--
``(1) In general.--In the case of any applicable facility
with respect to which the Secretary makes an allocation of
environmental justice capacity limitation under paragraph
(4)--
``(A) the applicable percentage otherwise determined under
subsection (a)(2) with respect to any eligible property which
is part of such facility shall be increased by--
``(i) in the case of a facility described in subclause (I)
of paragraph (2)(A)(iii) and not described in subclause (II)
of such paragraph, 10 percentage points, and
``(ii) in the case of a facility described in subclause
(II) of paragraph (2)(A)(iii), 20 percentage points, and
``(B) the increase in the credit determined under
subsection (a) by reason of this subsection for any taxable
year with respect to all property which is part of such
facility shall not exceed the amount which bears the same
ratio to the amount of such increase (determined without
regard to this subparagraph) as--
``(i) the environmental justice capacity limitation
allocated to such facility, bears to
``(ii) the total megawatt nameplate capacity of such
facility, as measured in direct current.
``(2) Applicable facility.--For purposes of this
subsection--
``(A) In general.--The term `applicable facility' means any
qualified facility--
``(i) which is not described in section 45Y(b)(2)(B),
``(ii) which has a maximum net output of less than 5
megawatts (as measured in alternating current), and
``(iii) which--

``(I) is located in a low-income community (as defined in
section 45D(e)) or on Indian land (as defined in section
2601(2) of the Energy Policy Act of 1992 (25 U.S.C.
3501(2))), or
``(II) is part of a qualified low-income residential
building project or a qualified low-income economic benefit
project.

``(B) Qualified low-income residential building project.--A
facility shall be treated as part of a qualified low-income
residential building project if--
``(i) such facility is installed on a residential rental
building which participates in a

[[Page S3968]]

covered housing program (as defined in section 41411(a) of
the Violence Against Women Act of 1994 (34 U.S.C.
12491(a)(3)), a housing assistance program administered by
the Department of Agriculture under title V of the Housing
Act of 1949, a housing program administered by a tribally
designated housing entity (as defined in section 4(22) of the
Native American Housing Assistance and Self-Determination Act
of 1996 (25 U.S.C. 4103(22))) or such other affordable
housing programs as the Secretary may provide, and
``(ii) the financial benefits of the electricity produced
by such facility are allocated equitably among the occupants
of the dwelling units of such building.
``(C) Qualified low-income economic benefit project.--A
facility shall be treated as part of a qualified low-income
economic benefit project if at least 50 percent of the
financial benefits of the electricity produced by such
facility are provided to households with income of--
``(i) less than 200 percent of the poverty line (as defined
in section 36B(d)(3)(A)) applicable to a family of the size
involved, or
``(ii) less than 80 percent of area median gross income (as
determined under section 142(d)(2)(B)).
``(D) Financial benefit.--For purposes of subparagraphs (B)
and (C), electricity acquired at a below-market rate shall
not fail to be taken into account as a financial benefit.
``(3) Eligible property.--For purposes of this subsection,
the term `eligible property' means a qualified investment
with respect to any applicable facility.
``(4) Allocations.--
``(A) In general.--Not later than January 1, 2025, the
Secretary shall establish a program to allocate amounts of
environmental justice capacity limitation to applicable
facilities. In establishing such program and to carry out the
purposes of this subsection, the Secretary shall provide
procedures to allow for an efficient allocation process,
including, when determined appropriate, consideration of
multiple projects in a single application if such projects
will be placed in service by a single taxpayer.
``(B) Limitation.--The amount of environmental justice
capacity limitation allocated by the Secretary under
subparagraph (A) during any calendar year shall not exceed
the annual capacity limitation with respect to such year.
``(C) Annual capacity limitation.--For purposes of this
paragraph, the term `annual capacity limitation' means 1.8
gigawatts of direct current capacity for each calendar year
during the period beginning on January 1, 2025, and ending on
December 31 of the applicable year (as defined in section
45Y(d)(3)), and zero thereafter.
``(D) Carryover of unused limitation.--
``(i) In general.--If the annual capacity limitation for
any calendar year exceeds the aggregate amount allocated for
such year under this paragraph, such limitation for the
succeeding calendar year shall be increased by the amount of
such excess. No amount may be carried under the preceding
sentence to any calendar year after the third calendar year
following the applicable year (as defined in section
45Y(d)(3)).
``(ii) Carryover from section 48 for calendar year 2025.--
If the annual capacity limitation for calendar year 2024
under section 48(e)(4)(D) exceeds the aggregate amount
allocated for such year under such section, such excess
amount may be carried over and applied to the annual capacity
limitation under this subsection for calendar year 2025. The
annual capacity limitation for calendar year 2025 shall be
increased by the amount of such excess.
``(E) Placed in service deadline.--
``(i) In general.--Paragraph (1) shall not apply with
respect to any property which is placed in service after the
date that is 4 years after the date of the allocation with
respect to the facility of which such property is a part.
``(ii) Application of carryover.--Any amount of
environmental justice capacity limitation which expires under
clause (i) during any calendar year shall be taken into
account as an excess described in subparagraph (D)(i) (or as
an increase in such excess) for such calendar year, subject
to the limitation imposed by the last sentence of such
subparagraph.
``(5) Recapture.--The Secretary shall, by regulations or
other guidance, provide for recapturing the benefit of any
increase in the credit allowed under subsection (a) by reason
of this subsection with respect to any property which ceases
to be property eligible for such increase (but which does not
cease to be investment credit property within the meaning of
section 50(a)). The period and percentage of such recapture
shall be determined under rules similar to the rules of
section 50(a). To the extent provided by the Secretary, such
recapture may not apply with respect to any property if,
within 12 months after the date the taxpayer becomes aware
(or reasonably should have become aware) of such property
ceasing to be property eligible for such increase, the
eligibility of such property for such increase is restored.
The preceding sentence shall not apply more than once with
respect to any facility.
``(i) Guidance.--Not later than January 1, 2025, the
Secretary shall issue guidance regarding implementation of
this section.''.
(b) Conforming Amendments.--
(1) Paragraph (6) of section 46 is amended to read as
follows:
``(6) the clean electricity investment credit.''.
(2) Section 49(a)(1)(C) is amended--
(A) by striking ``and'' at the end of clause (iv),
(B) by striking the period at the end of clause (v) and
inserting a comma, and
(C) by adding at the end the following new clauses:
``(vi) the basis of any qualified property which is part of
a qualified facility under section 48D, and
``(vii) the basis of any energy storage technology under
section 48D.''.
(3) Section 50(a)(2)(E) is amended by striking ``or
48C(b)(2)'' and inserting ``48C(b)(2), or 48D(e)''.
(4) Section 50(c)(3) is amended by inserting ``or clean
electricity investment credit'' after ``In the case of any
energy credit''.
(5) The table of sections for subpart E of part IV of
subchapter A of chapter 1 is amended by inserting after the
item relating to section 48C the following new item:

``48D. Clean electricity investment credit.''.
(c) Effective Date.--The amendments made by this section
shall apply to property placed in service after December 31,
2024.

SEC. 13703. COST RECOVERY FOR QUALIFIED FACILITIES, QUALIFIED
PROPERTY, AND ENERGY STORAGE TECHNOLOGY.

(a) In General.--Section 168(e)(3)(B) is amended--
(1) in clause (vi)(III), by striking ``and'' at the end,
(2) in clause (vii), by striking the period at the end and
inserting ``, and'', and
(3) by inserting after clause (vii) the following:
``(viii) any qualified facility (as defined in section
45Y(b)(1)(A)), any qualified property (as defined in
subsection (b)(2) of section 48D) which is a qualified
investment (as defined in subsection (b)(1) of such section),
or any energy storage technology (as defined in subsection
(c)(2) of such section).''.
(b) Effective Date.--The amendments made by this section
shall apply to facilities and property placed in service
after December 31, 2024.

SEC. 13704. CLEAN FUEL PRODUCTION CREDIT.

(a) In General.--Subpart D of part IV of subchapter A of
chapter 1, as amended by the preceding provisions of this
Act, is amended by adding at the end the following new
section:

``SEC. 45Z. CLEAN FUEL PRODUCTION CREDIT.

``(a) Amount of Credit.--
``(1) In general.--For purposes of section 38, the clean
fuel production credit for any taxable year is an amount
equal to the product of--
``(A) the applicable amount per gallon (or gallon
equivalent) with respect to any transportation fuel which
is--
``(i) produced by the taxpayer at a qualified facility, and
``(ii) sold by the taxpayer in a manner described in
paragraph (4) during the taxable year, and
``(B) the emissions factor for such fuel (as determined
under subsection (b)).
``(2) Applicable amount.--
``(A) Base amount.--In the case of any transportation fuel
produced at a qualified facility which does not satisfy the
requirements described in subparagraph (B), the applicable
amount shall be 20 cents.
``(B) Alternative amount.--In the case of any
transportation fuel produced at a qualified facility which
satisfies the requirements under paragraphs (6) and (7) of
subsection (f), the applicable amount shall be $1.00.
``(3) Special rate for sustainable aviation fuel.--
``(A) In general.--In the case of a transportation fuel
which is sustainable aviation fuel, paragraph (2) shall be
applied--
``(i) in the case of fuel produced at a qualified facility
described in paragraph (2)(A), by substituting `35 cents' for
`20 cents', and
``(ii) in the case of fuel produced at a qualified facility
described in paragraph (2)(B), by substituting `$1.75' for
`$1.00'.
``(B) Sustainable aviation fuel.--For purposes of this
subparagraph (A), the term `sustainable aviation fuel' means
liquid fuel which is sold for use in an aircraft and which--
``(i) meets the requirements of--

``(I) ASTM International Standard D7566, or
``(II) the Fischer Tropsch provisions of ASTM International
Standard D1655, Annex A1, and

``(ii) is not derived from palm fatty acid distillates or
petroleum.
``(4) Sale.--For purposes of paragraph (1), the
transportation fuel is sold in a manner described in this
paragraph if such fuel is sold by the taxpayer to an
unrelated person--
``(A) for use by such person in the production of a fuel
mixture,
``(B) for use by such person in a trade or business, or
``(C) who sells such fuel at retail to another person and
places such fuel in the fuel tank of such other person.
``(5) Rounding.--If any amount determined under paragraph
(1) is not a multiple of 1 cent, such amount shall be rounded
to the nearest cent.
``(b) Emissions Factors.--
``(1) Emissions factor.--
``(A) Calculation.--
``(i) In general.--The emissions factor of a transportation
fuel shall be an amount equal to the quotient of--

``(I) an amount equal to--

``(aa) 50 kilograms of CO<inf>2</inf>e per mmBTU, minus

[[Page S3969]]

``(bb) the emissions rate for such fuel, divided by

``(II) 50 kilograms of CO<inf>2</inf>e per mmBTU.

``(B) Establishment of emissions rate.--
``(i) In general.--Subject to clauses (ii) and (iii), the
Secretary shall annually publish a table which sets forth the
emissions rate for similar types and categories of
transportation fuels based on the amount of lifecycle
greenhouse gas emissions (as described in section
211(o)(1)(H) of the Clean Air Act (42 U.S.C. 7545(o)(1)(H)),
as in effect on the date of the enactment of this section)
for such fuels, expressed as kilograms of CO<inf>2</inf>e per
mmBTU, which a taxpayer shall use for purposes of this
section.
``(ii) Non-aviation fuel.--In the case of any
transportation fuel which is not a sustainable aviation fuel,
the lifecycle greenhouse gas emissions of such fuel shall be
based on the most recent determinations under the Greenhouse
gases, Regulated Emissions, and Energy use in Transportation
model developed by Argonne National Laboratory, or a
successor model (as determined by the Secretary).
``(iii) Aviation fuel.--In the case of any transportation
fuel which is a sustainable aviation fuel, the lifecycle
greenhouse gas emissions of such fuel shall be determined in
accordance with--

``(I) the most recent Carbon Offsetting and Reduction
Scheme for International Aviation which has been adopted by
the International Civil Aviation Organization with the
agreement of the United States, or
``(II) any similar methodology which satisfies the criteria
under section 211(o)(1)(H) of the Clean Air Act (42 U.S.C.
7545(o)(1)(H)), as in effect on the date of enactment of this
section.

``(C) Rounding of emissions rate.--
``(i) In general.--Subject to clause (ii), the Secretary
may round the emissions rates under subparagraph (B) to the
nearest multiple of 5 kilograms of CO<inf>2</inf>e per mmBTU.
``(ii) Exception.--In the case of an emissions rate that is
between 2.5 kilograms of CO<inf>2</inf>e per mmBTU and -2.5
kilograms of CO<inf>2</inf>e per mmBTU, the Secretary may
round such rate to zero.
``(D) Provisional emissions rate.--In the case of any
transportation fuel for which an emissions rate has not been
established under subparagraph (B), a taxpayer producing such
fuel may file a petition with the Secretary for determination
of the emissions rate with respect to such fuel.
``(2) Rounding.--If any amount determined under paragraph
(1)(A) is not a multiple of 0.1, such amount shall be rounded
to the nearest multiple of 0.1.
``(c) Inflation Adjustment.--
``(1) In general.--In the case of calendar years beginning
after 2024, the 20 cent amount in subsection (a)(2)(A), the
$1.00 amount in subsection (a)(2)(B), the 35 cent amount in
subsection (a)(3)(A)(i), and the $1.75 amount in subsection
(a)(3)(A)(ii) shall each be adjusted by multiplying such
amount by the inflation adjustment factor for the calendar
year in which the sale of the transportation fuel occurs. If
any amount as increased under the preceding sentence is not a
multiple of 1 cent, such amount shall be rounded to the
nearest multiple of 1 cent.
``(2) Inflation adjustment factor.--For purposes of
paragraph (1), the inflation adjustment factor shall be the
inflation adjustment factor determined and published by the
Secretary pursuant to section 45Y(c), determined by
substituting `calendar year 2022' for `calendar year 1992' in
paragraph (3) thereof.
``(d) Definitions.--In this section:
``(1) mmBTU.--The term `mmBTU' means 1,000,000 British
thermal units.
``(2) CO<inf>2</inf>e.--The term `CO<inf>2</inf>e' means,
with respect to any greenhouse gas, the equivalent carbon
dioxide (as determined based on relative global warming
potential).
``(3) Greenhouse gas.--The term `greenhouse gas' has the
same meaning given that term under section 211(o)(1)(G) of
the Clean Air Act (42 U.S.C. 7545(o)(1)(G)), as in effect on
the date of the enactment of this section.
``(4) Qualified facility.--The term `qualified facility'--
``(A) means a facility used for the production of
transportation fuels, and
``(B) does not include any facility for which one of the
following credits is allowed under section 38 for the taxable
year:
``(i) The credit for production of clean hydrogen under
section 45V.
``(ii) The credit determined under section 46 to the extent
that such credit is attributable to the energy credit
determined under section 48 with respect to any specified
clean hydrogen production facility for which an election is
made under subsection (a)(16) of such section.
``(iii) The credit for carbon oxide sequestration under
section 45Q.
``(5) Transportation fuel.--
``(A) In general.--The term `transportation fuel' means a
fuel which--
``(i) is suitable for use as a fuel in a highway vehicle or
aircraft,
``(ii) has an emissions rate which is not greater than 50
kilograms of CO<inf>2</inf>e per mmBTU, and
``(iii) is not derived from coprocessing an applicable
material (or materials derived from an applicable material)
with a feedstock which is not biomass.
``(B) Definitions.--In this paragraph--
``(i) Applicable material.--The term `applicable material'
means--

``(I) monoglycerides, diglycerides, and triglycerides,
``(II) free fatty acids, and
``(III) fatty acid esters.

``(ii) Biomass.--The term `biomass' has the same meaning
given such term in section 45K(c)(3).
``(e) Guidance.--Not later than January 1, 2025, the
Secretary shall issue guidance regarding implementation of
this section, including calculation of emissions factors for
transportation fuel, the table described in subsection
(b)(1)(B)(i), and the determination of clean fuel production
credits under this section.
``(f) Special Rules.--
``(1) Only registered production in the united states taken
into account.--
``(A) In general.--No clean fuel production credit shall be
determined under subsection (a) with respect to any
transportation fuel unless--
``(i) the taxpayer--

``(I) is registered as a producer of clean fuel under
section 4101 at the time of production, and
``(II) in the case of any transportation fuel which is a
sustainable aviation fuel, provides--

``(aa) certification (in such form and manner as the
Secretary shall prescribe) from an unrelated party
demonstrating compliance with--
``(AA) any general requirements, supply chain traceability
requirements, and information transmission requirements
established under the Carbon Offsetting and Reduction Scheme
for International Aviation described in subclause (I) of
subsection (b)(1)(B)(iii), or
``(BB) in the case of any methodology described in
subclause (II) of such subsection, requirements similar to
the requirements described in subitem (AA), and
``(bb) such other information with respect to such fuel as
the Secretary may require for purposes of carrying out this
section, and
``(ii) such fuel is produced in the United States.
``(B) United states.--For purposes of this paragraph, the
term `United States' includes any possession of the United
States.
``(2) Production attributable to the taxpayer.--In the case
of a facility in which more than 1 person has an ownership
interest, except to the extent provided in regulations
prescribed by the Secretary, production from the facility
shall be allocated among such persons in proportion to their
respective ownership interests in the gross sales from such
facility.
``(3) Related persons.--Persons shall be treated as related
to each other if such persons would be treated as a single
employer under the regulations prescribed under section
52(b). In the case of a corporation which is a member of an
affiliated group of corporations filing a consolidated
return, such corporation shall be treated as selling fuel to
an unrelated person if such fuel is sold to such a person by
another member of such group.
``(4) Pass-thru in the case of estates and trusts.--Under
regulations prescribed by the Secretary, rules similar to the
rules of subsection (d) of section 52 shall apply.
``(5) Allocation of credit to patrons of agricultural
cooperative.--Rules similar to the rules of section 45Y(g)(6)
shall apply.
``(6) Prevailing wage requirements.--
``(A) In general.--Subject to subparagraph (B), rules
similar to the rules of section 45(b)(7) shall apply.
``(B) Special rule for facilities placed in service before
january 1, 2025.--For purposes of subparagraph (A), in the
case of any qualified facility placed in service before
January 1, 2025--
``(i) clause (i) of section 45(b)(7)(A) shall not apply,
and
``(ii) clause (ii) of such section shall be applied by
substituting `with respect to any taxable year beginning
after December 31, 2024, for which the credit is allowed
under this section' for `with respect to any taxable year,
for any portion of such taxable year which is within the
period described in subsection (a)(2)(A)(ii)'.
``(7) Apprenticeship requirements.--Rules similar to the
rules of section 45(b)(8) shall apply.
``(g) Termination.--This section shall not apply to
transportation fuel sold after December 31, 2027.''.
(b) Conforming Amendments.--
(1) Section 25C(d)(3), as amended by the preceding
provisions of this Act, is amended--
(A) in subparagraph (A), by striking ``and'' at the end,
(B) in subparagraph (B), by striking the period at the end
and inserting ``, and'', and
(C) by adding at the end the following new subparagraph:
``(C) transportation fuel (as defined in section
45Z(d)(5)).''.
(2) Section 30C(c)(1)(B), as amended by the preceding
provisions of this Act, is amended by adding at the end the
following new clause:
``(iv) Any transportation fuel (as defined in section
45Z(d)(5)).''.
(3) Section 38(b), as amended by the preceding provisions
of this Act, is amended--
(A) in paragraph (38), by striking ``plus'' at the end,
(B) in paragraph (39), by striking the period at the end
and inserting ``, plus'', and
(C) by adding at the end the following new paragraph:
``(40) the clean fuel production credit determined under
section 45Z(a).''.

[[Page S3970]]

(4) The table of sections for subpart D of part IV of
subchapter A of chapter 1, as amended by the preceding
provisions of this Act, is amended by adding at the end the
following new item:

``Sec. 45Z. Clean fuel production credit.''.
(5) Section 4101(a)(1), as amended by the preceding
provisions of this Act, is amended by inserting ``every
person producing a fuel eligible for the clean fuel
production credit (pursuant to section 45Z),'' after
``section 6426(k)(3)),''.
(c) Effective Date.--The amendments made by this section
shall apply to transportation fuel produced after December
31, 2024.

PART 8--CREDIT MONETIZATION AND APPROPRIATIONS

SEC. 13801. ELECTIVE PAYMENT FOR ENERGY PROPERTY AND
ELECTRICITY PRODUCED FROM CERTAIN RENEWABLE
RESOURCES, ETC.

(a) In General.--Subchapter B of chapter 65 is amended by
inserting after section 6416 the following new section:

``SEC. 6417. ELECTIVE PAYMENT OF APPLICABLE CREDITS.

``(a) In General.--In the case of an applicable entity
making an election (at such time and in such manner as the
Secretary may provide) under this section with respect to any
applicable credit determined with respect to such entity,
such entity shall be treated as making a payment against the
tax imposed by subtitle A (for the taxable year with respect
to which such credit was determined) equal to the amount of
such credit.
``(b) Applicable Credit.--The term `applicable credit'
means each of the following:
``(1) So much of the credit for alternative fuel vehicle
refueling property allowed under section 30C which, pursuant
to subsection (d)(1) of such section, is treated as a credit
listed in section 38(b).
``(2) So much of the renewable electricity production
credit determined under section 45(a) as is attributable to
qualified facilities which are originally placed in service
after December 31, 2022.
``(3) So much of the credit for carbon oxide sequestration
determined under section 45Q(a) as is attributable to carbon
capture equipment which is originally placed in service after
December 31, 2022.
``(4) The zero-emission nuclear power production credit
determined under section 45U(a).
``(5) So much of the credit for production of clean
hydrogen determined under section 45V(a) as is attributable
to qualified clean hydrogen production facilities which are
originally placed in service after December 31, 2012.
``(6) In the case of a tax-exempt entity described in
clause (i), (ii), or (iv) of section 168(h)(2)(A), the credit
for qualified commercial vehicles determined under section
45W by reason of subsection (d)(3) thereof.
``(7) The credit for advanced manufacturing production
under section 45X(a).
``(8) The clean electricity production credit determined
under section 45Y(a).
``(9) The clean fuel production credit determined under
section 45Z(a).
``(10) The energy credit determined under section 48.
``(11) The qualifying advanced energy project credit
determined under section 48C.
``(12) The clean electricity investment credit determined
under section 48D.
``(c) Special Rules.--For purposes of this section--
``(1) Applicable entity.--
``(A) In general.--The term `applicable entity' means any
organization exempt from the tax imposed by subtitle A, any
State or local government (or political subdivision thereof),
the Tennessee Valley Authority, an Indian tribal government
(as defined in section 30D(g)(9)), or any Alaska Native
Corporation (as defined in section 3 of the Alaska Native
Claims Settlement Act (43 U.S.C. 1602(m)).
``(B) Election with respect to credit for production of
clean hydrogen.--If a taxpayer other than an entity described
in subparagraph (A) makes an election under this subparagraph
with respect to any taxable year in which such taxpayer has
placed in service a qualified clean hydrogen production
facility (as defined in section 45V(c)(3)), such taxpayer
shall be treated as an applicable entity for purposes of this
section for such taxable year, but only with respect to the
credit described in subsection (b)(5).
``(C) Election with respect to credit for carbon oxide
sequestration.--If a taxpayer other than an entity described
in subparagraph (A) makes an election under this subparagraph
with respect to any taxable year in which such taxpayer has,
after December 31, 2022, placed in service carbon capture
equipment at a qualified facility (as defined in section
45Q(d)), such taxpayer shall be treated as an applicable
entity for purposes of this section for such taxable year,
but only with respect to the credit described in subsection
(b)(3).
``(D) Election with respect to advanced manufacturing
production credit.--
``(i) In general.--If a taxpayer other than an entity
described in subparagraph (A) makes an election under this
subparagraph with respect to any taxable year in which such
taxpayer has, after December 31, 2022, produced eligible
components (as defined in section 45X(c)(1)), such taxpayer
shall be treated as an applicable entity for purposes of this
section for such taxable year, but only with respect to the
credit described in subsection (b)(7).
``(ii) Limitation.--

``(I) In general.--Except as provided in subclause (II), if
a taxpayer makes an election under this subparagraph with
respect to any taxable year, such taxpayer shall be treated
as having made such election for each of the 4 succeeding
taxable years ending before January 1, 2033.
``(II) Exception.--A taxpayer may elect to revoke the
application of the election made under this subparagraph to
any taxable year described in subclause (I). Any such
election, if made, shall apply to the applicable year
specified in such election and each subsequent taxable year
within the period described in subclause (I). Any election
under this subclause may not be subsequently revoked.

``(E) Other rules.--
``(i) In general.--An election made under subparagraph (B),
(C), or (D) shall be made at such time and in such manner as
the Secretary may provide.
``(ii) Limitation.--No election may be made under
subparagraph (B), (C), or (D) with respect to any taxable
year beginning after December 31, 2032.
``(2) Application.--In the case of any applicable entity
which makes the election described in subsection (a), any
applicable credit shall be determined--
``(A) without regard to paragraphs (3) and (4)(A)(i) of
section 50(b), and
``(B) by treating any property with respect to which such
credit is determined as used in a trade or business of the
applicable entity.
``(3) Elections.--
``(A) In general.--
``(i) Due date.--Any election under subsection (a) shall be
made not later than--

``(I) in the case of any government, or political
subdivision, described in paragraph (1) and for which no
return is required under section 6011 or 6033(a), such date
as is determined appropriate by the Secretary, or
``(II) in any other case, the due date (including
extensions of time) for the return of tax for the taxable
year for which the election is made, but in no event earlier
than 180 days after the date of the enactment of this
section.

``(ii) Additional rules.--Any election under subsection
(a), once made, shall be irrevocable and shall apply (except
as otherwise provided in this paragraph) with respect to any
credit for the taxable year for which the election is made.
``(B) Renewable electricity production credit.--In the case
of the credit described in subsection (b)(2), any election
under subsection (a) shall--
``(i) apply separately with respect to each qualified
facility,
``(ii) be made for the taxable year in which such qualified
facility is originally placed in service, and
``(iii) shall apply to such taxable year and to any
subsequent taxable year which is within the period described
in subsection (a)(2)(A)(ii) of section 45 with respect to
such qualified facility.
``(C) Credit for carbon oxide sequestration.--
``(i) In general.--In the case of the credit described in
subsection (b)(3), any election under subsection (a) shall--

``(I) apply separately with respect to the carbon capture
equipment originally placed in service by the applicable
entity during a taxable year, and
``(II)(aa) in the case of a taxpayer who makes an election
described in paragraph (1)(C), apply to the taxable year in
which such equipment is placed in service and the 4
subsequent taxable years with respect to such equipment which
end before January 1, 2033, and
``(bb) in any other case, apply to such taxable year and to
any subsequent taxable year which is within the period
described in paragraph (3)(A) or (4)(A) of section 45Q(a)
with respect to such equipment.

``(ii) Prohibition on transfer.--For any taxable year
described in clause (i)(II)(aa) with respect to carbon
capture equipment, no election may be made by the taxpayer
under section 6418(a) for such taxable year with respect to
such equipment for purposes of the credit described in
subsection (b)(3).
``(iii) Revocation of election.--In the case of a taxpayer
who makes an election described in paragraph (1)(C) with
respect to carbon capture equipment, such taxpayer may, at
any time during the period described in clause (i)(II)(aa),
revoke the application of such election with respect to such
equipment for any subsequent taxable years during such
period. Any such election, if made, shall apply to the
applicable year specified in such election and each
subsequent taxable year within the period described in clause
(i)(II)(aa). Any election under this subclause may not be
subsequently revoked.
``(D) Credit for production of clean hydrogen.--
``(i) In general.--In the case of the credit described in
subsection (b)(5), any election under subsection (a) shall--

``(I) apply separately with respect to each qualified clean
hydrogen production facility,
``(II) be made for the taxable year in which such facility
is placed in service (or within the 1-year period subsequent
to the date of enactment of this section in the case of
facilities placed in service before December 31, 2022), and
``(III)(aa) in the case of a taxpayer who makes an election
described in paragraph (1)(B), apply to such taxable year and
the 4 subsequent taxable years with respect to such facility
which end before January 1, 2033, and

[[Page S3971]]

``(bb) in any other case, apply to such taxable year and
all subsequent taxable years with respect to such facility.

``(ii) Prohibition on transfer.--For any taxable year
described in clause (i)(III)(aa) with respect to a qualified
clean hydrogen production facility, no election may be made
by the taxpayer under section 6418(a) for such taxable year
with respect to such facility for purposes of the credit
described in subsection (b)(5).
``(iii) Revocation of election.--In the case of a taxpayer
who makes an election described in paragraph (1)(B) with
respect to a qualified clean hydrogen production facility,
such taxpayer may, at any time during the period described in
clause (i)(III)(aa), revoke the application of such election
with respect to such facility for any subsequent taxable
years during such period. Any such election, if made, shall
apply to the applicable year specified in such election and
each subsequent taxable year within the period described in
clause (i)(II)(aa). Any election under this subclause may not
be subsequently revoked.
``(E) Clean electricity production credit.--In the case of
the credit described in subsection (b)(8), any election under
subsection (a) shall--
``(i) apply separately with respect to each qualified
facility,
``(ii) be made for the taxable year in which such facility
is placed in service, and
``(iii) shall apply to such taxable year and to any
subsequent taxable year which is within the period described
in subsection (b)(1)(B) of section 45Y with respect to such
facility.
``(4) Timing.--The payment described in subsection (a)
shall be treated as made on--
``(A) in the case of any government, or political
subdivision, described in paragraph (1) and for which no
return is required under section 6011 or 6033(a), the later
of the date that a return would be due under section 6033(a)
if such government or subdivision were described in that
section or the date on which such government or subdivision
submits a claim for credit or refund (at such time and in
such manner as the Secretary shall provide), and
``(B) in any other case, the later of the due date
(determined without regard to extensions) of the return of
tax for the taxable year or the date on which such return is
filed.
``(5) Additional information.--As a condition of, and prior
to, any amount being treated as a payment which is made by an
applicable entity under subsection (a), the Secretary may
require such information or registration as the Secretary
deems necessary or appropriate for purposes of preventing
duplication, fraud, improper payments, or excessive payments
under this section.
``(6) Excessive payment.--
``(A) In general.--In the case of any amount treated as a
payment which is made by the applicable entity under
subsection (a) which the Secretary determines constitutes an
excessive payment, the tax imposed on such entity by chapter
1 (regardless of whether such entity would otherwise be
subject to tax under such chapter) for the taxable year in
which such determination is made shall be increased by an
amount equal to the sum of--
``(i) the amount of such excessive payment, plus
``(ii) an amount equal to 20 percent of such excessive
payment.
``(B) Reasonable cause.--Subparagraph (A) shall not apply
if the applicable entity demonstrates to the satisfaction of
the Secretary that the excessive payment resulted from
reasonable cause.
``(C) Excessive payment defined.--For purposes of this
paragraph, the term `excessive payment' means, with respect
to a facility or property for which an election is made under
this section for any taxable year, an amount equal to the
excess of--
``(i) the amount treated as a payment which is made by the
applicable entity under subsection (a) with respect to such
facility or property for such taxable year, over
``(ii) the amount of the credit which, without application
of this section, would be otherwise allowable (as determined
pursuant to paragraph (2) and without regard to section
38(c)) under this title with respect to such facility or
property for such taxable year.
``(d) Denial of Double Benefit.--In the case of an
applicable entity making an election under this section with
respect to an applicable credit, such credit shall be reduced
to zero and shall, for any other purposes under this title,
be deemed to have been allowed to such entity for such
taxable year.
``(e) Mirror Code Possessions.--In the case of any
possession of the United States with a mirror code tax system
(as defined in section 24(k)), this section shall not be
treated as part of the income tax laws of the United States
for purposes of determining the income tax law of such
possession unless such possession elects to have this section
be so treated.
``(f) Basis Reduction and Recapture.--Except as otherwise
provided in subsection (c)(2)(A), rules similar to the rules
of section 50 shall apply for purposes of this section.
``(g) Regulations.--The Secretary shall issue such
regulations or other guidance as may be necessary or
appropriate to carry out the purposes of this section,
including guidance to ensure that the amount of the payment
or deemed payment made under this section is commensurate
with the amount of the credit that would be otherwise
allowable (determined without regard to section 38(c)).''.
(b) Transfer of Certain Credits.--Subchapter B of chapter
65, as amended by subsection (a), is amended by inserting
after section 6417 the following new section:

``SEC. 6418. TRANSFER OF CERTAIN CREDITS.

``(a) In General.--In the case of an eligible taxpayer
which elects to transfer all (or any portion specified in the
election) of an eligible credit determined with respect to
such taxpayer for any taxable year to a taxpayer (referred to
in this section as the `transferee taxpayer') which is not
related (within the meaning of section 267(b) or 707(b)(1))
to the eligible taxpayer, the transferee taxpayer specified
in such election (and not the eligible taxpayer) shall be
treated as the taxpayer for purposes of this title with
respect to such credit (or such portion thereof).
``(b) Treatment of Payments Made in Connection With
Transfer.--With respect to any amount paid by a transferee
taxpayer to an eligible taxpayer as consideration for a
transfer described in subsection (a), such consideration--
``(1) shall be required to be paid in cash,
``(2) shall not be includible in gross income of the
eligible taxpayer, and
``(3) with respect to the transferee taxpayer, shall not be
deductible under this title.
``(c) Application to Partnerships and S Corporations.--
``(1) In general.--In the case of any eligible credit
determined with respect to any facility or property held
directly by a partnership or S corporation, if such
partnership or S corporation makes an election under
subsection (a) (in such manner as the Secretary may provide)
with respect to such credit--
``(A) any amount received as consideration for a transfer
described in such subsection shall be treated as tax exempt
income for purposes of sections 705 and 1366, and
``(B) a partner's distributive share of such tax exempt
income shall be based on such partner's distributive share of
the otherwise eligible credit for each taxable year.
``(2) Coordination with application at partner or
shareholder level.--In the case of any facility or property
held directly by a partnership or S corporation, no election
by any partner or shareholder shall be allowed under
subsection (a) with respect to any eligible credit determined
with respect to such facility or property.
``(d) Taxable Year in Which Credit Taken Into Account.--In
the case of any credit (or portion thereof) with respect to
which an election is made under subsection (a), such credit
shall be taken into account in the first taxable year of the
transferee taxpayer ending with, or after, the taxable year
of the eligible taxpayer with respect to which the credit was
determined.
``(e) Limitations on Election.--
``(1) Time for election.--An election under subsection (a)
to transfer any portion of an eligible credit shall be made
not later than the due date (including extensions of time)
for the return of tax for the taxable year for which the
credit is determined, but in no event earlier than 180 days
after the date of the enactment of this section. Any such
election, once made, shall be irrevocable.
``(2) No additional transfers.--No election may be made
under subsection (a) by a transferee taxpayer with respect to
any portion of an eligible credit which has been previously
transferred to such taxpayer pursuant to this section.
``(f) Definitions.--For purposes of this section--
``(1) Eligible credit.--
``(A) In general.--The term `eligible credit' means each of
the following:
``(i) So much of the credit for alternative fuel vehicle
refueling property allowed under section 30C which, pursuant
to subsection (d)(1) of such section, is treated as a credit
listed in section 38(b).
``(ii) The renewable electricity production credit
determined under section 45(a).
``(iii) The credit for carbon oxide sequestration
determined under section 45Q(a).
``(iv) The zero-emission nuclear power production credit
determined under section 45U(a).
``(v) The clean hydrogen production credit determined under
section 45V(a).
``(vi) The advanced manufacturing production credit
determined under section 45X(a).
``(vii) The clean electricity production credit determined
under section 45Y(a).
``(viii) The clean fuel production credit determined under
section 45Z(a).
``(ix) The energy credit determined under section 48.
``(x) The qualifying advanced energy project credit
determined under section 48C.
``(xi) The clean electricity investment credit determined
under section 48D.
``(B) Election for certain credits.--In the case of any
eligible credit described in clause (ii), (iii), (v), or
(vii) of subparagraph (A), an election under subsection (a)
shall be made--
``(i) separately with respect to each facility for which
such credit is determined, and
``(ii) for each taxable year during the 10-year period
beginning on the date such facility was originally placed in
service (or, in the case of the credit described in clause
(iii), for each year during the 12-year period beginning on
the date the carbon capture equipment was originally placed
in service at such facility).
``(C) Exception for business credit carryforwards or
carrybacks.--The term

[[Page S3972]]

`eligible credit' shall not include any business credit
carryforward or business credit carryback determined under
section 39.
``(2) Eligible taxpayer.--The term `eligible taxpayer'
means any taxpayer which is not described in section
6417(c)(1)(A).
``(g) Special Rules.--For purposes of this section--
``(1) Additional information.--As a condition of, and prior
to, any transfer of any portion of an eligible credit
pursuant to subsection (a), the Secretary may require such
information (including, in such form or manner as is
determined appropriate by the Secretary, such information
returns) or registration as the Secretary deems necessary or
appropriate for purposes of preventing duplication, fraud,
improper payments, or excessive payments under this section.
``(2) Excessive payment.--
``(A) In general.--In the case of any portion of an
eligible credit which is transferred to a transferee taxpayer
pursuant to subsection (a) which the Secretary determines
constitutes an excessive payment, the tax imposed on the
transferee taxpayer by chapter 1 (regardless of whether such
entity would otherwise be subject to tax under such chapter)
for the taxable year in which such determination is made
shall be increased by an amount equal to the sum of--
``(i) the amount of such excessive payment, plus
``(ii) an amount equal to 20 percent of such excessive
payment.
``(B) Reasonable cause.--Subparagraph (A) shall not apply
if the transferee taxpayer demonstrates to the satisfaction
of the Secretary that the excessive payment resulted from
reasonable cause.
``(C) Excessive payment defined.--For purposes of this
paragraph, the term `excessive payment' means, with respect
to a facility or property for which an election is made under
subsection (a) for any taxable year, an amount equal to the
excess of--
``(i) the amount of the eligible credit claimed by the
transferee taxpayer with respect to such facility or property
for such taxable year, over
``(ii) the amount of such credit which, without application
of this section, would be otherwise allowable (determined
without regard to section 38(c)) under this title with
respect to such facility or property for such taxable year.
``(3) Basis reduction.--In the case of any election under
subsection (a) with respect to any portion of an eligible
credit described in clauses (ix) through (xi) of subsection
(f)(1)(A), subsection (c) of section 50 shall apply to the
applicable investment credit property (as defined in
subsection (a)(5) of such section) as if such eligible credit
was allowed to the eligible taxpayer.
``(4) Prohibition on election or transfer with respect to
progress expenditures.--This section shall not apply with
respect to any amount of an eligible credit which is allowed
pursuant to rules similar to the rules of subsections (c)(4)
and (d) of section 46 (as in effect on the day before the
date of the enactment of the Revenue Reconciliation Act of
1990).
``(h) Regulations.--The Secretary shall issue such
regulations or other guidance as may be necessary or
appropriate to carry out the purposes of this section,
including regulations or other guidance providing rules for
determining a partner's distributive share of the tax exempt
income described in subsection (c)(1).''.
(c) Real Estate Investment Trusts.--Section 50(d) is
amended by adding at the end the following: ``In the case of
a real estate investment trust making an election under
section 6418, paragraphs (1)(B) and (2)(B) of the section
46(e) referred to in paragraph (1) of this subsection shall
not apply to any investment credit property of such real
estate investment trust to which such election applies.''.
(d) 3-year Carryback for Applicable Credits.--Section 39(a)
is amended by adding at the end the following:
``(4) 3-year carryback for applicable credits.--
Notwithstanding subsection (d), in the case of any applicable
credit (as defined in section 6417(b))--
``(A) this section shall be applied separately from the
business credit (other than the applicable credit),
``(B) paragraph (1) shall be applied by substituting `each
of the 3 taxable years' for `the taxable year' in
subparagraph (A) thereof, and
``(C) paragraph (2) shall be applied--
``(i) by substituting `23 taxable years' for `21 taxable
years' in subparagraph (A) thereof, and
``(ii) by substituting `22 taxable years' for `20 taxable
years' in subparagraph (B) thereof.''.
(e) Clerical Amendment.--The table of sections for
subchapter B of chapter 65 is amended by inserting after the
item relating to section 6416 the following new items:

``Sec. 6417. Elective payment of applicable credits.
``Sec. 6418. Transfer of certain credits.''.
(f) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2022.

SEC. 13802. APPROPRIATIONS.

Immediately upon the enactment of this Act, in addition to
amounts otherwise available, there are appropriated for
fiscal year 2022, out of any money in the Treasury not
otherwise appropriated, $500,000,000 to remain available
until September 30, 2031, for necessary expenses for the
Internal Revenue Service to carry out this subtitle (and the
amendments made by this subtitle), which shall supplement and
not supplant any other appropriations that may be available
for this purpose.

PART IX--OTHER PROVISIONS

SEC. 13901. PERMANENT EXTENSION OF TAX RATE TO FUND BLACK
LUNG DISABILITY TRUST FUND.

(a) In General.--Section 4121 is amended by striking
subsection (e).
(b) Effective Date.--The amendment made by this section
shall apply to sales in calendar quarters beginning after the
date of the enactment of this Act.

SEC. 13902. INCREASE IN RESEARCH CREDIT AGAINST PAYROLL TAX
FOR SMALL BUSINESSES.

(a) In General.--Clause (i) of section 41(h)(4)(B) is
amended--
(1) by striking ``Amount.--The amount'' and inserting
``Amount.--

``(I) In general.--The amount'', and

(2) by adding at the end the following new subclause:

``(II) Increase.--In the case of taxable years beginning
after December 31, 2022, the amount in subclause (I) shall be
increased by $250,000.''.

(b) Allowance of Credit.--
(1) In general.--Paragraph (1) of section 3111(f) is
amended--
(A) by striking ``for a taxable year, there shall be
allowed'' and inserting ``for a taxable year--
``(A) there shall be allowed'',
(B) by striking ``equal to the'' and inserting ``equal to
so much of the'',
(C) by striking the period at the end and inserting ``as
does not exceed the limitation of subclause (I) of section
41(h)(4)(B)(i) (applied without regard to subclause (II)
thereof), and'', and
(D) by adding at the end the following new subparagraph:
``(B) there shall be allowed as a credit against the tax
imposed by subsection (b) for the first calendar quarter
which begins after the date on which the taxpayer files the
return specified in section 41(h)(4)(A)(ii) an amount equal
to so much of the payroll tax credit portion determined under
section 41(h)(2) as is not allowed as a credit under
subparagraph (A).''.
(2) Limitation.--Paragraph (2) of section 3111(f) is
amended--
(A) by striking ``paragraph (1)'' and inserting ``paragraph
(1)(A)'', and
(B) by inserting ``, and the credit allowed by paragraph
(1)(B) shall not exceed the tax imposed by subsection (b) for
any calendar quarter,'' after ``calendar quarter''.
(3) Carryover.--Paragraph (3) of section 3111(f) is amended
by striking ``the credit'' and inserting ``any credit''.
(4) Deduction allowed.--Paragraph (4) of section 3111(f) is
amended--
(A) by striking ``credit'' and inserting ``credits'', and
(B) by striking ``subsection (a)'' and inserting
``subsection (a) or (b)''.
(c) Aggregation Rules.--Clause (ii) of section 41(h)(5)(B)
is amended by striking ``the $250,000 amount'' and inserting
``each of the $250,000 amounts''.
(d) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2022.

TITLE II--COMMITTEE ON AGRICULTURE, NUTRITION, AND FORESTRY

Subtitle A--General Provisions

SEC. 20001. DEFINITION OF SECRETARY.

In this title, the term ``Secretary'' means the Secretary
of Agriculture.

Subtitle B--Conservation

SEC. 21001. ADDITIONAL AGRICULTURAL CONSERVATION INVESTMENTS.

(a) Appropriations.--In addition to amounts otherwise
available (and subject to subsection (b)), there are
appropriated to the Secretary, out of any money in the
Treasury not otherwise appropriated, to remain available
until September 30, 2031 (subject to the condition that no
such funds may be disbursed after September 30, 2031)--
(1) to carry out, using the facilities and authorities of
the Commodity Credit Corporation, the environmental quality
incentives program under subchapter A of chapter 4 of
subtitle D of title XII of the Food Security Act of 1985 (16
U.S.C. 3839aa through 3839aa-8)--
(A)(i) $250,000,000 for fiscal year 2023;
(ii) $1,750,000,000 for fiscal year 2024;
(iii) $3,000,000,000 for fiscal year 2025; and
(iv) $3,450,000,000 for fiscal year 2026; and
(B) subject to the conditions on the use of the funds
that--
(i) section 1240B(f)(1) of the Food Security Act of 1985
(16 U.S.C. 3839aa-2(f)(1)) shall not apply;
(ii) section 1240H(c)(2) of the Food Security Act of 1985
(16 U.S.C. 3839aa-8(c)(2)) shall be applied--

(I) by substituting ``$50,000,000'' for ``$25,000,000'';
and
(II) with the Secretary prioritizing proposals that utilize
diet and feed management to reduce enteric methane emissions
from ruminants;

(iii) the funds shall be available for 1 or more
agricultural conservation practices or enhancements that the
Secretary determines directly improve soil carbon or reduce
nitrogen losses or greenhouse gas emissions, or capture or
sequester greenhouse gas emissions, associated with
agricultural production; and

[[Page S3973]]

(iv) the Secretary shall prioritize projects and activities
that mitigate or address climate change through the
management of agricultural production, including by reducing
or avoiding greenhouse gas emissions;
(2) to carry out, using the facilities and authorities of
the Commodity Credit Corporation, the conservation
stewardship program under subchapter B of that chapter (16
U.S.C. 3839aa-21 through 3839aa-25)--
(A)(i) $250,000,000 for fiscal year 2023;
(ii) $500,000,000 for fiscal year 2024;
(iii) $1,000,000,000 for fiscal year 2025; and
(iv) $1,500,000,000 for fiscal year 2026; and
(B) subject to the conditions on the use of the funds
that--
(i) the funds shall only be available for--

(I) 1 or more agricultural conservation practices or
enhancements that the Secretary determines directly improve
soil carbon or reduce nitrogen losses or greenhouse gas
emissions, or capture or sequester greenhouse gas emissions,
associated with agricultural production; or
(II) State-specific or region-specific groupings or bundles
of agricultural conservation activities for climate change
mitigation appropriate for cropland, pastureland, rangeland,
nonindustrial private forest land, and producers
transitioning to organic or perennial production systems; and

(ii) the Secretary shall prioritize projects and activities
that mitigate or address climate change through the
management of agricultural production, including by reducing
or avoiding greenhouse gas emissions;
(3) to carry out, using the facilities and authorities of
the Commodity Credit Corporation, the agricultural
conservation easement program under subtitle H of title XII
of that Act (16 U.S.C. 3865 through 3865d)--
(A)(i) $100,000,000 for fiscal year 2023;
(ii) $200,000,000 for fiscal year 2024;
(iii) $500,000,000 for fiscal year 2025; and
(iv) $600,000,000 for fiscal year 2026; and
(B) subject to the condition on the use of the funds that
the Secretary shall prioritize projects and activities that
mitigate or address climate change through the management of
agricultural production, including by reducing or avoiding
greenhouse gas emissions; and
(4) to carry out, using the facilities and authorities of
the Commodity Credit Corporation, the regional conservation
partnership program under subtitle I of title XII of that Act
(16 U.S.C. 3871 through 3871f)--
(A)(i) $250,000,000 for fiscal year 2023;
(ii) $1,200,000,000 for fiscal year 2024;
(iii) $2,250,000,000 for fiscal year 2025; and
(iv) $3,050,000,000 for fiscal year 2026; and
(B) subject to the conditions on the use of the funds that
the Secretary--
(i) shall prioritize partnership agreements under section
1271C(d) of the Food Security Act of 1985 (16 U.S.C.
3871c(d)) that support the implementation of conservation
projects that assist agricultural producers and nonindustrial
private forestland owners in directly improving soil carbon
or reducing nitrogen losses or greenhouse gas emissions, or
capturing or sequestering greenhouse gas emissions,
associated with agricultural production;
(ii) shall prioritize projects and activities that mitigate
or address climate change through the management of
agricultural production, including by reducing or avoiding
greenhouse gas emissions; and
(iii) may prioritize projects that--

(I) leverage corporate supply chain sustainability
commitments; or
(II) utilize models that pay for outcomes from targeting
methane and nitrous oxide emissions associated with
agricultural production systems.

(b) Conditions.--The funds made available under subsection
(a) are subject to the conditions that the Secretary shall
not--
(1) enter into any agreement--
(A) that is for a term extending beyond September 30, 2031;
or
(B) under which any payment could be outlaid or funds
disbursed after September 30, 2031; or
(2) use any other funds available to the Secretary to
satisfy obligations initially made under this section.
(c) Conforming Amendments.--
(1) Section 1240B of the Food Security Act of 1985 (16
U.S.C. 3839aa-2) is amended--
(A) in subsection (a), by striking ``2023'' and inserting
``2031''; and
(B) in subsection (f)(2)(B)--
(i) in the subparagraph heading, by striking ``2023'' and
inserting ``2031''; and
(ii) by striking ``2023'' and inserting ``2031''.
(2) Section 1240H of the Food Security Act of 1985 (16
U.S.C. 3839aa-8) is amended by striking ``2023'' each place
it appears and inserting ``2031''.
(3) Section 1240J(a) of the Food Security Act of 1985 (16
U.S.C. 3839aa-22(a)) is amended, in the matter preceding
paragraph (1), by striking ``2023'' and inserting ``2031''.
(4) Section 1240L(h)(2)(A) of the Food Security Act of 1985
(16 U.S.C. 3839aa-24(h)(2)(A)) is amended by striking
``2023'' and inserting ``2031''.
(5) Section 1241 of the Food Security Act of 1985 (16
U.S.C. 3841) is amended--
(A) in subsection (a)--
(i) in the matter preceding paragraph (1), by striking
``2023'' and inserting ``2031'';
(ii) in paragraph (1), by striking ``2023'' each place it
appears and inserting ``2031'';
(iii) in paragraph (2)(F), by striking ``2023'' and
inserting ``2031''; and
(iv) in paragraph (3), by striking ``fiscal year 2023''
each place it appears and inserting ``each of fiscal years
2023 through 2031'';
(B) in subsection (b), by striking ``2023'' and inserting
``2031''; and
(C) in subsection (h)--
(i) in paragraph (1)(B), in the subparagraph heading, by
striking ``2023'' and inserting ``2031''; and
(ii) by striking ``2023'' each place it appears and
inserting ``2031''.
(6) Section 1244(n)(3)(A) of the Food Security Act of 1985
(16 U.S.C. 3844(n)(3)(A)) is amended by striking ``2023'' and
inserting ``2031''.
(7) Section 1271D(a) of the Food Security Act of 1985 (16
U.S.C. 3871d(a)) is amended by striking ``2023'' and
inserting ``2031''.

SEC. 21002. CONSERVATION TECHNICAL ASSISTANCE.

(a) Appropriations.--In addition to amounts otherwise
available (and subject to subsection (b)), there are
appropriated to the Secretary for fiscal year 2022, out of
any money in the Treasury not otherwise appropriated, to
remain available until September 30, 2031 (subject to the
condition that no such funds may be disbursed after September
30, 2031)--
(1) $1,000,000,000 to provide conservation technical
assistance through the Natural Resources Conservation
Service; and
(2) $300,000,000 to carry out a carbon sequestration and
greenhouse gas emissions quantification program through which
the Natural Resources Conservation Service, including through
technical service providers and other partners, shall collect
field-based data to assess the carbon sequestration and
greenhouse gas emissions reduction outcomes associated with
activities carried out pursuant to this section and use the
data to monitor and track greenhouse gas emissions and carbon
sequestration trends through the Greenhouse Gas Inventory and
Assessment Program of the Department of Agriculture.
(b) Conditions.--The funds made available under this
section are subject to the conditions that the Secretary
shall not--
(1) enter into any agreement--
(A) that is for a term extending beyond September 30, 2031;
or
(B) under which any payment could be outlaid or funds
disbursed after September 30, 2031;
(2) use any other funds available to the Secretary to
satisfy obligations initially made under this section; or
(3) interpret this section to authorize funds of the
Commodity Credit Corporation for activities under this
section if such funds are not expressly authorized or
currently expended for such purposes.
(c) Administrative Costs.--In addition to amounts otherwise
available, there is appropriated to the Secretary for fiscal
year 2022, out of any money in the Treasury not otherwise
appropriated, $100,000,000, to remain available until
September 30, 2028, for administrative costs of the agencies
and offices of the Department of Agriculture for costs
related to implementing this section.

Subtitle C--Rural Development

SEC. 22001. ADDITIONAL FUNDING FOR ELECTRIC LOANS FOR
RENEWABLE ENERGY.

Section 9003 of the Farm Security and Rural Investment Act
of 2002 (7 U.S.C. 8103) is amended by adding at the end the
following:
``(h) Additional Funding for Electric Loans for Renewable
Energy.--
``(1) Appropriations.--Notwithstanding subsections (a)
through (e), and (g), in addition to amounts otherwise
available, there is appropriated to the Secretary for fiscal
year 2022, out of any money in the Treasury not otherwise
appropriated, $1,000,000,000, to remain available until
September 30, 2031, for the cost of loans under section 317
of the Rural Electrification Act of 1936 (7 U.S.C. 940g),
including for projects that store electricity that support
the types of eligible projects under that section, which
shall be forgiven based on how the borrower and the project
meets the terms and conditions for loan forgiveness
consistent with the purposes of that section established by
the Secretary.
``(2) Limitation.--The Secretary shall not enter into any
loan agreement pursuant this subsection that could result in
disbursements after September 30, 2031.
``(3) Restriction.--A loan under paragraph (1) shall be
forgiven in an amount that is not greater than 50 percent of
the loan, unless the Secretary waives such restriction.''.

SEC. 22002. RURAL ENERGY FOR AMERICA PROGRAM.

(a) Appropriation.--In addition to amounts otherwise
available, there is appropriated to the Secretary, out of any
money in the Treasury not otherwise appropriated, for
eligible projects under section 9007 of the Farm Security and
Rural Investment Act of 2002 (7 U.S.C. 8107), and
notwithstanding section 9007(c)(3)(A) of that Act, the amount
of a grant shall not exceed 50 percent of the cost of the
activity carried out using the grant funds--
(1) $820,250,000 for fiscal year 2022, to remain available
until September 30, 2031; and
(2) $180,276,500 for each of fiscal years 2023 through
2027, to remain available until September 30, 2031.
(b) Underutilized Renewable Energy Technologies.--In
addition to amounts otherwise available, there is
appropriated to the Secretary, out of any money in the
Treasury not otherwise appropriated, to provide grants and
loans guaranteed by the Secretary (including the costs of
such loans) under the program described in subsection (a)
relating to underutilized renewable energy technologies, and
to provide technical

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assistance for applying to the program described in
subsection (a), including for underutilized renewable energy
technologies, notwithstanding section 9007(c)(3)(A) of the
Farm Security and Rural Investment Act of 2002 (7 U.S.C.
8107(c)(3)(A)), the amount of a grant shall not exceed 50
percent of the cost of the activity carried out using the
grant funds, and to the extent the following amounts remain
available at the end of each fiscal year, the Secretary shall
use such amounts in accordance with subsection (a)--
(1) $144,750,000 for fiscal year 2022, to remain available
until September 30, 2031; and
(2) $31,813,500 for each of fiscal years 2023 through 2027,
to remain available until September 30, 2031.
(c) Limitation.--The Secretary shall not enter into,
pursuant to this section--
(1) any loan agreement that may result in a disbursement
after September 30, 2031; or
(2) any grant agreement that may result in any outlay after
September 30, 2031.

SEC. 22003. BIOFUEL INFRASTRUCTURE AND AGRICULTURE PRODUCT
MARKET EXPANSION.

Section 9003 of the Farm Security and Rural Investment Act
of 2002 (7 U.S.C. 8103) (as amended by section 22001) is
amended by adding at the end the following:
``(i) Biofuel Infrastructure and Agriculture Product Market
Expansion.--
``(1) Appropriation.--Notwithstanding subsections (a)
through (e) and subsection (g), in addition to amounts
otherwise available, there is appropriated to the Secretary
for fiscal year 2022, out of any money in the Treasury not
otherwise appropriated, $500,000,000, to remain available
until September 30, 2031, to carry out this subsection.
``(2) Use of funds.--The Secretary shall use the amounts
made available by paragraph (1) to provide grants, for which
the Federal share shall be not more than 75 percent of the
total cost of carrying out a project for which the grant is
provided, on a competitive basis, to increase the sale and
use of agricultural commodity-based fuels through
infrastructure improvements for blending, storing, supplying,
or distributing biofuels, except for transportation
infrastructure not on location where such biofuels are
blended, stored, supplied, or distributed--
``(A) by installing, retrofitting, or otherwise upgrading
fuel dispensers or pumps and related equipment, storage tank
system components, and other infrastructure required at a
location related to dispensing certain biofuels blends to
ensure the increased sales of fuels with high levels of
commodity-based ethanol and biodiesel that are at or greater
than the levels required in the Notice of Funding
Availability for the Higher Blends Infrastructure Incentive
Program for Fiscal Year 2020, published in the Federal
Register (85 Fed. Reg. 26656), as determined by the
Secretary; and
``(B) by building and retrofitting home heating oil
distribution centers or equivalent entities and distribution
systems for ethanol and biodiesel blends.
``(3) Limitation.--The Secretary may not limit the amount
of funding an eligible entity may receive under this
subsection provided that no eligible entity may receive more
than 10 percent of the funds appropriated under paragraph (1)
unless there are insufficient eligible applicants, as
determined by the Secretary, to which to award those
funds.''.

SEC. 22004. USDA ASSISTANCE FOR RURAL ELECTRIC COOPERATIVES.

Section 9003 of the Farm Security and Rural Investment Act
of 2002 (7 U.S.C. 8103) (as amended by section 22003) is
amended by adding at the end the following:
``(j) USDA Assistance for Rural Electric Cooperatives.--
``(1) Appropriation.--Notwithstanding subsections (a)
through (e) and (g), in addition to amounts otherwise
available, there is appropriated to the Secretary for fiscal
year 2022, out of any money in the Treasury not otherwise
appropriated, $9,700,000,000, to remain available until
September 30, 2031, for the long-term resiliency,
reliability, and affordability of rural electric systems and
for purposes described in section 310B(a)(2)(C) of the
Consolidated Farm and Rural Development Act (7 U.S.C.
1932(a)(2)(C)) (provided that the term renewable energy
system in that paragraph has the meaning given that term in
section 9001), for zero-emission systems, or for carbon
capture and storage systems, by providing to an eligible
entity (defined as an electric cooperative described in
section 501(c)(12) or 1381(a)(2) of the Internal Revenue Code
of 1986 and is or has been a Rural Utilities Service electric
loan borrower pursuant to the Rural Electrification Act of
1936 or serving a predominantly rural area or a wholly or
jointly owned subsidiary of such electric cooperative)
financial assistance, including loans and the cost of loans
and modifications thereof, to purchase renewable energy,
renewable energy systems, zero-emission systems, and carbon
capture and storage systems, to deploy such systems, or to
make energy efficiency improvements to electric generation
and transmission systems of the eligible entity after the
date of enactment of this subsection, that will achieve the
greatest reduction in greenhouse gas emissions associated
with rural electric systems using financial assistance
provided under this subsection and that will otherwise aid
disadvantaged rural communities, as determined by the
Secretary.
``(2) Limitation.--No eligible entity may receive an amount
equal to more than 10 percent of the total amount made
available by this subsection.
``(3) Requirement.--The amount of a grant under this
subsection shall be not more than 25 percent of the total
project costs of the eligible entity carrying out a project
using a grant under this subsection.
``(4) Prohibition.--Nothing in this subsection shall be
interpreted to authorize funds of the Commodity Credit
Corporation for activities under this subsection if such
funds are not expressly authorized or currently expended for
such purposes.
``(5) Disbursements.--The Secretary shall not enter into,
pursuant to this subsection--
``(A) any loan agreement that may result in a disbursement
after September 30, 2031; or
``(B) any grant agreement that may result in any outlay
after September 30, 2031.''.

SEC. 22005. ADDITIONAL USDA RURAL DEVELOPMENT ADMINISTRATIVE
FUNDS.

In addition to amounts otherwise available, there is
appropriated to the Secretary for fiscal year 2022, out of
any money in the Treasury not otherwise appropriated,
$100,000,000, to remain available until September 30, 2031,
for administrative costs and salaries and expenses for the
Rural Development mission area and expenses of the agencies
and offices of the Department for costs related to
implementing this subtitle.

Subtitle D--Forestry

SEC. 23001. NATIONAL FOREST SYSTEM RESTORATION AND FUELS
REDUCTION PROJECTS.

(a) Appropriations.--In addition to amounts otherwise
available, there are appropriated to the Secretary for fiscal
year 2022, out of any money in the Treasury not otherwise
appropriated, to remain available until September 30, 2031--
(1) $1,800,000,000 for hazardous fuels reduction projects
on National Forest System land within the wildland-urban
interface;
(2) $200,000,000 for vegetation management projects on
National Forest System land carried out in accordance with a
water source management plan or a watershed protection and
restoration action plan;
(3) $100,000,000 to provide for more efficient and more
effective environmental reviews by the Chief of the Forest
Service in satisfying the obligations of the Chief of the
Forest Service under the National Environmental Policy Act of
1969 (42 U.S.C. 4321 through 4370m-12); and
(4) $50,000,000 to develop and carry out activities and
tactics for the protection of old-growth forests on National
Forest System land and to complete an inventory of old-growth
forests and mature forests within the National Forest System.
(b) Priority for Funding.--For projects described in
paragraphs (1) and (2) of subsection (a), the Secretary shall
prioritize for implementation projects--
(1) for which an environmental assessment or an
environmental impact statement required under the National
Environmental Policy Act of 1969 (42 U.S.C. 4321 through
4370m-12) has been completed;
(2) that are collaboratively developed; or
(3) that include opportunities to restore sustainable
recreation infrastructure or access or accomplish other
recreation outcomes on National Forest System lands, if the
opportunities are compatible with the primary restoration
purposes of the project.
(c) Restrictions.--None of the funds made available by this
section may be used for any activity--
(1) conducted in a wilderness area or wilderness study
area;
(2) that includes the construction of a permanent road or
motorized trail;
(3) that includes the construction of a temporary road,
except in the case of a temporary road that is decommissioned
by the Secretary not later than 3 years after the earlier
of--
(A) the date on which the temporary road is no longer
needed; and
(B) the date on which the project for which the temporary
road was constructed is completed;
(4) inconsistent with the applicable land management plan;
(5) inconsistent with the prohibitions of the rule of the
Forest Service entitled ``Special Areas; Roadless Area
Conservation'' (66 Fed. Reg. 3244 (January 12, 2001)), as
modified by subparts C and D of part 294 of title 36, Code of
Federal Regulations; or
(6) carried out on any land that is not National Forest
System land, including other forested land on Federal, State,
Tribal, or private land.
(d) Limitations.--Nothing in this section shall be
interpreted to authorize funds of the Commodity Credit
Corporation for activities under this section if such funds
are not expressly authorized or currently expended for such
purposes.
(e) Cost-sharing Waiver.--
(1) In general.--The non-Federal cost-share requirement of
a project described in paragraph (2) may be waived at the
discretion of the Secretary.
(2) Project described.--A project referred to in paragraph
(1) is a project that--
(A) is carried out using funds made available under this
section;
(B) requires a partnership agreement, including a
cooperative agreement or mutual interest agreement; and
(C) is subject to a non-Federal cost-share requirement.
(f) Definitions.--In this section:
(1) Collaboratively developed.--The term ``collaboratively
developed'' means, with respect to a project located
exclusively on National Forest System land, that the

[[Page S3975]]

project is developed and implemented through a collaborative
process that--
(A) includes multiple interested persons representing
diverse interests, except such persons shall not be employed
by the Federal Government or be representatives of foreign
entities; and
(B)(i) is transparent and nonexclusive; or
(ii) meets the requirements for a resource advisory
committee under subsections (c) through (f) of section 205 of
the Secure Rural Schools and Community Self-Determination Act
of 2000 (16 U.S.C. 7125).
(2) Decommission.--The term ``decommission'' means, with
respect to a road--
(A) reestablishing native vegetation on the road;
(B) restoring any natural drainage, watershed function, or
other ecological processes that were disrupted or adversely
impacted by the road by removing or hydrologically
disconnecting the road prism and reestablishing stable slope
contours; and
(C) effectively blocking the road to vehicular traffic,
where feasible.
(3) Ecological integrity.--The term ``ecological
integrity'' has the meaning given the term in section 219.19
of title 36, Code of Federal Regulations (as in effect on the
date of enactment of this Act).
(4) Hazardous fuels reduction project.--The term
``hazardous fuels reduction project'' means an activity,
including the use of prescribed fire, to protect structures
and communities from wildfire that is carried out on National
Forest System land.
(5) Restoration.--The term ``restoration'' has the meaning
given the term in section 219.19 of title 36, Code of Federal
Regulations (as in effect on the date of enactment of this
Act).
(6) Vegetation management project.--The term ``vegetation
management project'' means an activity carried out on
National Forest System land to enhance the ecological
integrity and achieve the restoration of a forest ecosystem
through the removal of vegetation, the use of prescribed
fire, the restoration of aquatic habitat, or the
decommissioning of an unauthorized, temporary, or system
road.
(7) Water source management plan.--The term ``water source
management plan'' means a plan developed under section
303(d)(1) of the Healthy Forests Restoration Act of 2003 (16
U.S.C. 6542(d)(1)).
(8) Watershed protection and restoration action plan.--The
term ``watershed protection and restoration action plan''
means a plan developed under section 304(a)(3) of the Healthy
Forests Restoration Act of 2003 (16 U.S.C. 6543(a)(3)).
(9) Wildland-urban interface.--The term ``wildland-urban
interface'' has the meaning given the term in section 101 of
the Healthy Forests Restoration Act of 2003 (16 U.S.C. 6511).

SEC. 23002. COMPETITIVE GRANTS FOR NON-FEDERAL FOREST
LANDOWNERS.

(a) Appropriations.--In addition to amounts otherwise
available, there are appropriated to the Secretary for fiscal
year 2022, out of any money in the Treasury not otherwise
appropriated, to remain available until September 30, 2031--
(1) $150,000,000 for the competitive grant program under
section 13A of the Cooperative Forestry Assistance Act of
1978 (16 U.S.C. 2109a) for providing through that program a
cost share to carry out climate mitigation or forest
resilience practices in the case of underserved forest
landowners, subject to the condition that subsection (h) of
that section shall not apply;
(2) $150,000,000 for the competitive grant program under
section 13A of the Cooperative Forestry Assistance Act of
1978 (16 U.S.C. 2109a) for providing through that program
grants to support the participation of underserved forest
landowners in emerging private markets for climate mitigation
or forest resilience, subject to the condition that
subsection (h) of that section shall not apply;
(3) $100,000,000 for the competitive grant program under
section 13A of the Cooperative Forestry Assistance Act of
1978 (16 U.S.C. 2109a) for providing through that program
grants to support the participation of forest landowners who
own less than 2,500 acres of forest land in emerging private
markets for climate mitigation or forest resilience, subject
to the condition that subsection (h) of that section shall
not apply;
(4) $50,000,000 for the competitive grant program under
section 13A of the Cooperative Forestry Assistance Act of
1978 (16 U.S.C. 2109a) to provide grants to states and other
eligible entities to provide payments to owners of private
forest land for implementation of forestry practices on
private forest land, that are determined by the Secretary,
based on the best available science, to provide measurable
increases in carbon sequestration and storage beyond
customary practices on comparable land, subject to the
conditions that--
(A) those payments shall not preclude landowners from
participation in other public and private sector financial
incentive programs; and
(B) subsection (h) of that section shall not apply; and
(5) $100,000,000 to provide grants under the wood
innovation grant program under section 8643 of the
Agriculture Improvement Act of 2018 (7 U.S.C. 7655d),
including for the construction of new facilities that advance
the purposes of the program and for the hauling of material
removed to reduce hazardous fuels to locations where that
material can be utilized, subject to the conditions that--
(A) the amount of such a grant shall be not more than
$5,000,000;
(B) notwithstanding subsection (d) of that section, a
recipient of such a grant shall provide funds equal to not
less than 50 percent of the amount received under the grant,
to be derived from non-Federal sources; and
(C) a priority shall be placed on projects that create a
financial model for addressing forest restoration needs on
public or private forest land.
(b) Cost-sharing Requirement.--Any partnership agreements,
including cooperative agreements and mutual interest
agreements, using funds made available under this section
shall be subject to a non-Federal cost-share requirement of
not less than 20 percent of the project cost, which may be
waived at the discretion of the Secretary.
(c) Limitations.--Nothing in this section shall be
interpreted to authorize funds of the Commodity Credit
Corporation for activities under this section if such funds
are not expressly authorized or currently expended for such
purposes.

SEC. 23003. STATE AND PRIVATE FORESTRY CONSERVATION PROGRAMS.

(a) Appropriations.--In addition to amounts otherwise
available, there are appropriated to the Secretary for fiscal
year 2022, out of any money in the Treasury not otherwise
appropriated, to remain available until September 30, 2031--
(1) $700,000,000 to provide competitive grants to States
through the Forest Legacy Program established under section 7
of the Cooperative Forestry Assistance Act of 1978 (16 U.S.C.
2103c) to acquire land and interests in land, with priority
given to grant applications that offer significant natural
carbon sequestration benefits or provide benefits to
underserved populations; and
(2) $1,500,000,000 to provide multiyear, programmatic,
competitive grants to a State agency, a local governmental
entity, an agency or governmental entity of the District of
Columbia, an Indian Tribe, or a nonprofit organization
through the Urban and Community Forestry Assistance program
established under section 9(c) of the Cooperative Forestry
Assistance Act of 1978 (16 U.S.C. 2105(c)) for tree planting
and related activities, with a priority for projects that
benefit underserved populations and areas.
(b) Waiver.--Any non-Federal cost-share requirement
otherwise applicable to projects carried out under this
section may be waived at the discretion of the Secretary.

SEC. 23004. LIMITATION.

The funds made available under this subtitle are subject to
the condition that the Secretary shall not--
(1) enter into any agreement--
(A) that is for a term extending beyond September 30, 2031;
or
(B) under which any payment could be outlaid or funds
disbursed after September 30, 2031; or
(2) use any other funds available to the Secretary to
satisfy obligations initially made under this subtitle.

SEC. 23005. ADMINISTRATIVE COSTS.

In addition to amounts otherwise available, there is
appropriated to the Secretary for fiscal year 2022, out of
any money in the Treasury not otherwise appropriated,
$100,000,000 to remain available until September 30, 2031,
for administrative costs of the agencies and offices of the
Department of Agriculture for costs related to implementing
this subtitle.

TITLE III--COMMITTEE ON BANKING, HOUSING, AND URBAN AFFAIRS

SEC. 30001. ENHANCED USE OF DEFENSE PRODUCTION ACT OF 1950.

In addition to amounts otherwise available, there is
appropriated for fiscal year 2022, out of any money in the
Treasury not otherwise appropriated, $500,000,000, to remain
available until September 30, 2024, to carry out the Defense
Production Act of 1950 (50 U.S.C. 4501 et seq.).

SEC. 30002. IMPROVING ENERGY EFFICIENCY OR WATER EFFICIENCY
OR CLIMATE RESILIENCE OF AFFORDABLE HOUSING.

(a) Appropriation.--In addition to amounts otherwise
available, there is appropriated to the Secretary of Housing
and Urban Development (in this section referred to as the
``Secretary'') for fiscal year 2022, out of any money in the
Treasury not otherwise appropriated--
(1) $837,500,000, to remain available until September 30,
2028, for the cost of providing direct loans, including the
costs of modifying such loans, and for grants, as provided
for and subject to terms and conditions in subsection (b),
including to subsidize gross obligations for the principal
amount of direct loans, not to exceed $4,000,000,000, to fund
projects that improve energy or water efficiency, indoor air
quality or sustainability, implement the use of low-emission
technologies, materials, or processes, including zero-
emission electricity generation, energy storage, or building
electrification, or address climate resilience, of an
eligible property;
(2) $60,000,000, to remain available until September 30,
2030, for the costs to the Secretary of administering and
overseeing the implementation of this section, including
information technology, financial reporting, research and
evaluation, other cross-program costs in support of programs
administered by the Secretary in this title, and other costs;
(3) $60,000,000, to remain available until September 30,
2029, for expenses of contracts

[[Page S3976]]

administered by the Secretary, including to carry out
property climate risk, energy, or water assessments, due
diligence, and underwriting functions for such grant and
direct loan program; and
(4) $42,500,000, to remain available until September 30,
2028, for energy and water benchmarking of properties
eligible to receive grants or loans under this section,
regardless of whether they actually received such grants,
along with associated data analysis and evaluation at the
property and portfolio level, including the development of
information technology systems necessary for the collection,
evaluation, and analysis of such data.
(b) Loan and Grant Terms and Conditions.--Amounts made
available under this section shall be for direct loans,
grants, and direct loans that can be converted to grants to
eligible recipients that agree to an extended period of
affordability for the property.
(c) Definitions.--As used in this section--
(1) the term ``eligible recipient'' means any owner or
sponsor of an eligible property; and
(2) the term ``eligible property'' means a property
assisted pursuant to--
(A) section 202 of the Housing Act of 1959 (12 U.S.C.
1701q);
(B) section 202 of the Housing Act of 1959 (former 12
U.S.C. 1701q), as such section existed before the enactment
of the Cranston-Gonzalez National Affordable Housing Act;
(C) section 811 of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 8013);
(D) section 8(b) of the United States Housing Act of 1937
(42 U.S.C. 1437f(b));
(E) section 236 of the National Housing Act (12 U.S.C.
1715z-1); or
(F) a Housing Assistance Payments contract for Project-
Based Rental Assistance in fiscal year 2021.
(d) Waiver.--The Secretary may waive or specify alternative
requirements for any provision of subsection (c) or (bb) of
section 8 of the United States Housing Act of 1937 (42 U.S.C.
1437f(c), 1437f(bb)) upon a finding that the waiver or
alternative requirement is necessary to facilitate the use of
amounts made available under this section.
(e) Implementation.--The Secretary shall have the authority
to establish by notice any requirements that the Secretary
determines are necessary for timely and effective
implementation of the program and expenditure of funds
appropriated, which requirements shall take effect upon
issuance.

TITLE IV--COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

SEC. 40001. INVESTING IN COASTAL COMMUNITIES AND CLIMATE
RESILIENCE.

(a) In General.--In addition to amounts otherwise
available, there is appropriated to the National Oceanic and
Atmospheric Administration for fiscal year 2022, out of any
money in the Treasury not otherwise appropriated,
$2,600,000,000, to remain available until September 30, 2026,
to provide funding through direct expenditure, contracts,
grants, cooperative agreements, or technical assistance to
coastal states (as defined in paragraph (4) of section 304 of
the Coastal Zone Management Act of 1972 (16 U.S.C. 1453(4))),
the District of Columbia, Tribal Governments, nonprofit
organizations, local governments, and institutions of higher
education (as defined in subsection (a) of section 101 of the
Higher Education Act of 1965 (20 U.S.C. 1001(a))), for the
conservation, restoration, and protection of coastal and
marine habitats and resources, including fisheries, to enable
coastal communities to prepare for extreme storms and other
changing climate conditions, and for projects that support
natural resources that sustain coastal and marine resource
dependent communities, and for related administrative
expenses.
(b) Tribal Government Defined.--In this section, the term
``Tribal Government'' means the recognized governing body of
any Indian or Alaska Native tribe, band, nation, pueblo,
village, community, component band, or component reservation,
individually identified (including parenthetically) in the
list published most recently as of the date of enactment of
this subsection pursuant to section 104 of the Federally
Recognized Indian Tribe List Act of 1994 (25 U.S.C. 5131).

SEC. 40002. FACILITIES OF THE NATIONAL OCEANIC AND
ATMOSPHERIC ADMINISTRATION AND NATIONAL MARINE
SANCTUARIES.

(a) National Oceanic and Atmospheric Administration
Facilities.--In addition to amounts otherwise available,
there is appropriated to the National Oceanic and Atmospheric
Administration for fiscal year 2022, out of any money in the
Treasury not otherwise appropriated, $150,000,000, to remain
available until September 30, 2026, for the construction of
new facilities (including facilities in need of replacement)
including piers, marine operations facilities, and fisheries
laboratories.
(b) National Marine Sanctuaries Facilities.--In addition to
amounts otherwise available, there is appropriated to the
National Oceanic and Atmospheric Administration for fiscal
year 2022, out of any money in the Treasury not otherwise
appropriated, $50,000,000, to remain available until
September 30, 2026, for the construction of facilities to
support the National Marine Sanctuary System established
under subsection (c) of section 301 of the National Marine
Sanctuaries Act (16 U.S.C. 1431(c)).

SEC. 40003. NOAA EFFICIENT AND EFFECTIVE REVIEWS.

In addition to amounts otherwise available, there is
appropriated to the National Oceanic and Atmospheric
Administration for fiscal year 2022, out of any money in the
Treasury not otherwise appropriated, $20,000,000, to remain
available until September 30, 2026, to conduct more
efficient, accurate, and timely reviews for planning,
permitting and approval processes through the hiring and
training of personnel, and the purchase of technical and
scientific services and new equipment, and to improve agency
transparency, accountability, and public engagement.

SEC. 40004. OCEANIC AND ATMOSPHERIC RESEARCH AND FORECASTING
FOR WEATHER AND CLIMATE.

(a) Forecasting and Research.--In addition to amounts
otherwise available, there is appropriated to the National
Oceanic and Atmospheric Administration for fiscal year 2022,
out of any money in the Treasury not otherwise appropriated,
$150,000,000, to remain available until September 30, 2026,
to accelerate advances and improvements in research,
observation systems, modeling, forecasting, assessments, and
dissemination of information to the public as it pertains to
ocean and atmospheric processes related to weather, coasts,
oceans, and climate, and to carry out section 102(a) of the
Weather Research and Forecasting Innovation Act of 2017 (15
U.S.C. 8512(a)), and for related administrative expenses.
(b) Research Grants and Science Information, Products, and
Services.--In addition to amounts otherwise available, there
are appropriated to the National Oceanic and Atmospheric
Administration for fiscal year 2022, out of any money in the
Treasury not otherwise appropriated, to remain available
until September 30, 2026, $50,000,000 for competitive grants
to fund climate research as it relates to weather, ocean,
coastal, and atmospheric processes and conditions, and
impacts to marine species and coastal habitat, and for
related administrative expenses.

SEC. 40005. COMPUTING CAPACITY AND RESEARCH FOR WEATHER,
OCEANS, AND CLIMATE.

In addition to amounts otherwise available, there is
appropriated to the National Oceanic and Atmospheric
Administration for fiscal year 2022, out of any money in the
Treasury not otherwise appropriated, $190,000,000, to remain
available until September 30, 2026, for the procurement of
additional high-performance computing, data processing
capacity, data management, and storage assets, to carry out
section 204(a)(2) of the High-Performance Computing Act of
1991 (15 U.S.C. 5524(a)(2)), and for transaction agreements
authorized under section 301(d)(1)(A) of the Weather Research
and Forecasting Innovation Act of 2017 (15 U.S.C.
8531(d)(1)(A)), and for related administrative expenses.

SEC. 40006. ACQUISITION OF HURRICANE FORECASTING AIRCRAFT.

In addition to amounts otherwise available, there is
appropriated to the National Oceanic and Atmospheric
Administration for fiscal year 2022, out of any money in the
Treasury not otherwise appropriated, $100,000,000, to remain
available until September 30, 2026, for the acquisition of
hurricane hunter aircraft under section 413(a) of the Weather
Research and Forecasting Innovation Act of 2017 (15 U.S.C.
8549(a)).

SEC. 40007. ALTERNATIVE FUEL AND LOW-EMISSION AVIATION
TECHNOLOGY PROGRAM.

(a) Appropriation and Establishment.--For purposes of
establishing a competitive grant program for eligible
entities to carry out projects located in the United States
that produce, transport, blend, or store sustainable aviation
fuel, or develop, demonstrate, or apply low-emission aviation
technologies, in addition to amounts otherwise available,
there are appropriated to the Secretary for fiscal year 2022,
out of any money in the Treasury not otherwise appropriated,
to remain available until September 30, 2026--
(1) $244,530,000 for projects relating to the production,
transportation, blending, or storage of sustainable aviation
fuel;
(2) $46,530,000 for projects relating to low-emission
aviation technologies; and
(3) $5,940,000 to fund the award of grants under this
section, and oversight of the program, by the Secretary.
(b) Considerations.--In carrying out subsection (a), the
Secretary shall consider, with respect to a proposed
project--
(1) the capacity for the eligible entity to increase the
domestic production and deployment of sustainable aviation
fuel or the use of low-emission aviation technologies among
the United States commercial aviation and aerospace industry;
(2) the projected greenhouse gas emissions from such
project, including emissions resulting from the development
of the project, and the potential the project has to reduce
or displace, on a lifecycle basis, United States greenhouse
gas emissions associated with air travel;
(3) the capacity to create new jobs and develop supply
chain partnerships in the United States;
(4) for projects related to the production of sustainable
aviation fuel, the projected lifecycle greenhouse gas
emissions benefits from the proposed project, which shall
include feedstock and fuel production and potential direct
and indirect greenhouse gas emissions (including resulting
from changes in land use); and

[[Page S3977]]

(5) the benefits of ensuring a diversity of feedstocks for
sustainable aviation fuel, including the use of waste carbon
oxides and direct air capture.
(c) Cost Share.--The Federal share of the cost of a project
carried out using grant funds under subsection (a) shall be
75 percent of the total proposed cost of the project, except
that such Federal share shall increase to 90 percent of the
total proposed cost of the project if the eligible entity is
a small hub airport or nonhub airport, as such terms are
defined in section 47102 of title 49, United States Code.
(d) Fuel Emissions Reduction Test.--For purposes of clause
(ii) of subsection (e)(7)(E), the Secretary shall, not later
than 2 years after the date of enactment of this section,
adopt at least 1 methodology for testing lifecycle greenhouse
gas emissions that meets the requirements of such clause.
(e) Definitions.--In this section:
(1) Eligible entity.--The term ``eligible entity'' means--
(A) a State or local government, including the District of
Columbia, other than an airport sponsor;
(B) an air carrier;
(C) an airport sponsor;
(D) an accredited institution of higher education;
(E) a research institution;
(F) a person or entity engaged in the production,
transportation, blending, or storage of sustainable aviation
fuel in the United States or feedstocks in the United States
that could be used to produce sustainable aviation fuel;
(G) a person or entity engaged in the development,
demonstration, or application of low-emission aviation
technologies; or
(H) nonprofit entities or nonprofit consortia with
experience in sustainable aviation fuels, low-emission
aviation technologies, or other clean transportation research
programs.
(2) Feedstock.--The term ``feedstock'' means sources of
hydrogen and carbon not originating from unrefined or refined
petrochemicals.
(3) Induced land-use change values.--The term ``induced
land-use change values'' means the greenhouse gas emissions
resulting from the conversion of land to the production of
feedstocks and from the conversion of other land due to the
displacement of crops or animals for which the original land
was previously used.
(4) Lifecycle greenhouse gas emissions.--The term
``lifecycle greenhouse gas emissions'' means the combined
greenhouse gas emissions from feedstock production,
collection of feedstock, transportation of feedstock to fuel
production facilities, conversion of feedstock to fuel,
transportation and distribution of fuel, and fuel combustion
in an aircraft engine, as well as from induced land-use
change values.
(5) Low-emission aviation technologies.--The term ``low-
emission aviation technologies'' means technologies, produced
in the United States, that significantly--
(A) improve aircraft fuel efficiency;
(B) increase utilization of sustainable aviation fuel; or
(C) reduce greenhouse gas emissions produced during
operation of civil aircraft.
(6) Secretary.--The term ``Secretary'' means the Secretary
of Transportation.
(7) Sustainable aviation fuel.--The term ``sustainable
aviation fuel'' means liquid fuel, produced in the United
States, that--
(A) consists of synthesized hydrocarbons;
(B) meets the requirements of--
(i) ASTM International Standard D7566; or
(ii) the co-processing provisions of ASTM International
Standard D1655, Annex A1 (or such successor standard);
(C) is derived from biomass (in a similar manner as such
term is defined in section 45K(c)(3) of the Internal Revenue
Code of 1986), waste streams, renewable energy sources, or
gaseous carbon oxides;
(D) is not derived from palm fatty acid distillates; and
(E) achieves at least a 50 percent lifecycle greenhouse gas
emissions reduction in comparison with petroleum-based jet
fuel, as determined by a test that shows--
(i) the fuel production pathway achieves at least a 50
percent reduction of the aggregate attributional core
lifecycle emissions and the induced land-use change values
under a lifecycle methodology for sustainable aviation fuels
similar to that adopted by the International Civil Aviation
Organization with the agreement of the United States; or
(ii) the fuel production pathway achieves at least a 50
percent reduction of the aggregate attributional core
lifecycle greenhouse gas emissions values and the induced
land-use change values under another methodology that the
Secretary determines is--

(I) reflective of the latest scientific understanding of
lifecycle greenhouse gas emissions; and
(II) as stringent as the requirement under clause (i).

TITLE V--COMMITTEE ON ENERGY AND NATURAL RESOURCES

Subtitle A--Energy

PART 1--GENERAL PROVISIONS

SEC. 50111. DEFINITIONS.

In this subtitle:
(1) Greenhouse gas.--The term ``greenhouse gas'' has the
meaning given the term in section 1610(a) of the Energy
Policy Act of 1992 (42 U.S.C. 13389(a)).
(2) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
(3) State.--The term ``State'' means a State, the District
of Columbia, and a United States Insular Area (as that term
is defined in section 50211).
(4) State energy office.--The term ``State energy office''
has the meaning given the term in section 124(a) of the
Energy Policy Act of 2005 (42 U.S.C. 15821(a)).
(5) State energy program.--The term ``State Energy
Program'' means the State Energy Program established pursuant
to part D of title III of the Energy Policy and Conservation
Act (42 U.S.C. 6321 through 6326).

PART 2--RESIDENTIAL EFFICIENCY AND ELECTRIFICATION REBATES

SEC. 50121. HOME ENERGY PERFORMANCE-BASED, WHOLE-HOUSE
REBATES.

(a) Appropriation.--
(1) In general.--In addition to amounts otherwise
available, there is appropriated to the Secretary for fiscal
year 2022, out of any money in the Treasury not otherwise
appropriated, $4,300,000,000, to remain available through
September 30, 2031, to carry out a program to award grants to
State energy offices to develop and implement a HOMES rebate
program.
(2) Allocation of funds.--
(A) In general.--The Secretary shall reserve funds made
available under paragraph (1) for each State energy office--
(i) in accordance with the allocation formula for the State
Energy Program in effect on January 1, 2022; and
(ii) to be distributed to a State energy office if the
application of the State energy office under subsection (b)
is approved.
(B) Additional funds.--Not earlier than 2 years after the
date of enactment of this Act, any money reserved under
subparagraph (A) but not distributed under clause (ii) of
that subparagraph shall be redistributed to the State energy
offices operating a HOMES rebate program using a grant
received under this section in proportion to the amount
distributed to those State energy offices under subparagraph
(A)(ii).
(3) Administrative expenses.--Of the funds made available
under paragraph (1), the Secretary shall use not more than 3
percent for--
(A) administrative purposes; and
(B) providing technical assistance relating to activities
carried out under this section.
(b) Application.--A State energy office seeking a grant
under this section shall submit to the Secretary an
application that includes a plan to implement a HOMES rebate
program, including a plan--
(1) to use procedures, as approved by the Secretary, for
determining the reductions in home energy use resulting from
the implementation of a home energy efficiency retrofit that
is calibrated to historical energy usage for a home
consistent with BPI 2400, for purposes of modeled performance
home rebates;
(2) to use open-source advanced measurement and
verification software, as approved by the Secretary, for
determining and documenting the monthly and hourly (if
available) weather-normalized energy use of a home before and
after the implementation of a home energy efficiency
retrofit, for purposes of measured performance home rebates;
(3) to value savings based on time, location, or greenhouse
gas emissions;
(4) for quality monitoring to ensure that each home energy
efficiency retrofit for which a rebate is provided is
documented in a certificate that--
(A) is provided by the contractor and certified by a third
party to the homeowner; and
(B) details the work performed, the equipment and materials
installed, and the projected energy savings or energy
generation to support accurate valuation of the retrofit;
(5) to provide a contractor performing a home energy
efficiency retrofit or an aggregator who has the right to
claim a rebate $200 for each home located in an underserved
community that receives a home energy efficiency retrofit for
which a rebate is provided under the program; and
(6) to ensure that a homeowner or aggregator does not
receive a rebate for the same upgrade through both a HOMES
rebate program and any other Federal grant or rebate program,
pursuant to subsection (c)(8).
(c) HOMES Rebate Program.--
(1) In general.--A HOMES rebate program carried out by a
State energy office receiving a grant pursuant to this
section shall provide rebates to homeowners and aggregators
for whole-house energy saving retrofits begun on or after the
date of enactment of this Act and completed by not later than
September 30, 2031.
(2) Amount of rebate.--Subject to paragraph (3)(B), under a
HOMES rebate program, the amount of a rebate shall not
exceed--
(A) for individuals and aggregators carrying out energy
efficiency upgrades of single-family homes--
(i) in the case of a retrofit that achieves modeled energy
system savings of not less than 20 percent but less than 35
percent, the lesser of--

(I) $2,000; and
(II) 50 percent of the project cost;

(ii) in the case of a retrofit that achieves modeled energy
system savings of not less than 35 percent, the lesser of--

(I) $4,000; and
(II) 50 percent of the project cost; and

(iii) for measured energy savings, in the case of a home or
portfolio of homes that

[[Page S3978]]

achieves energy savings of not less than 15 percent--

(I) a payment rate per kilowatt hour saved, or kilowatt
hour-equivalent saved, equal to $2,000 for a 20 percent
reduction of energy use for the average home in the State; or
(II) 50 percent of the project cost;

(B) for multifamily building owners and aggregators
carrying out energy efficiency upgrades of multifamily
buildings--
(i) in the case of a retrofit that achieves modeled energy
system savings of not less than 20 percent but less than 35
percent, $2,000 per dwelling unit, with a maximum of $200,000
per multifamily building;
(ii) in the case of a retrofit that achieves modeled energy
system savings of not less than 35 percent, $4,000 per
dwelling unit, with a maximum of $400,000 per multifamily
building; or
(iii) for measured energy savings, in the case of a
multifamily building or portfolio of multifamily buildings
that achieves energy savings of not less than 15 percent--

(I) a payment rate per kilowatt hour saved, or kilowatt
hour-equivalent saved, equal to $2,000 for a 20 percent
reduction of energy use per dwelling unit for the average
multifamily building in the State; or
(II) 50 percent of the project cost; and

(C) for individuals and aggregators carrying out energy
efficiency upgrades of a single-family home occupied by a
low- or moderate-income household or a multifamily building
not less than 50 percent of the dwelling units of which are
occupied by low- or moderate-income households--
(i) in the case of a retrofit that achieves modeled energy
system savings of not less than 20 percent but less than 35
percent, the lesser of--

(I) $4,000 per single-family home or dwelling unit; and
(II) 80 percent of the project cost;

(ii) in the case of a retrofit that achieves modeled energy
system savings of not less than 35 percent, the lesser of--

(I) $8,000 per single-family home or dwelling unit; and
(II) 80 percent of the project cost; and

(iii) for measured energy savings, in the case of a single-
family home, multifamily building, or portfolio of single-
family homes or multifamily buildings that achieves energy
savings of not less than 15 percent--

(I) a payment rate per kilowatt hour saved, or kilowatt
hour-equivalent saved, equal to $4,000 for a 20 percent
reduction of energy use per single-family home or dwelling
unit, as applicable, for the average single-family home or
multifamily building in the State; or
(II) 80 percent of the project cost.

(3) Rebates to low- or moderate-income households.--
(A) In general.--A State energy office carrying out a HOMES
rebate program using a grant awarded pursuant to this section
is encouraged to provide rebates, to the maximum extent
practicable, to low- or moderate-income households.
(B) Increase in rebate amount.--On approval from the
Secretary, notwithstanding paragraph (2), a State energy
office carrying out a HOMES rebate program using a grant
awarded pursuant to this section may increase rebate amounts
for low- or moderate-income households.
(4) Use of funds.--A State energy office that receives a
grant pursuant to this section may use not more than 20
percent of the grant amount for planning, administration, or
technical assistance related to a HOMES rebate program.
(5) Data access guidelines.--The Secretary shall develop
and publish guidelines for States relating to residential
electric and natural gas energy data sharing.
(6) Coordination.--In carrying out this section, the
Secretary shall coordinate with State energy offices to
ensure that HOMES rebate programs for which grants are
provided under this section are developed to achieve maximum
greenhouse gas emissions reductions and household energy and
costs savings regardless of source energy.
(7) Exemption.--Activities carried out by a State energy
office using a grant awarded pursuant to this section shall
not be subject to the expenditure prohibitions and
limitations described in section 420.18 of title 10, Code of
Federal Regulations.
(8) Prohibition on combining rebates.--A rebate provided by
a State energy office under a HOMES rebate program may not be
combined with any other Federal grant or rebate, including a
rebate provided under a high-efficiency electric home rebate
program (as defined in section 50122(d)), for the same single
upgrade.
(d) Definitions.--In this section:
(1) HOMES rebate program.--The term ``HOMES rebate
program'' means a Home Owner Managing Energy Savings rebate
program established by a State energy office as part of an
approved State energy conservation plan under the State
Energy Program.
(2) Low- or moderate-income household.--The term ``low- or
moderate-income household'' means an individual or family the
total annual income of which is less than 80 percent of the
median income of the area in which the individual or family
resides, as reported by the Department of Housing and Urban
Development, including an individual or family that has
demonstrated eligibility for another Federal program with
income restrictions equal to or below 80 percent of area
median income.
(3) Underserved community.--The term ``underserved
community'' means--
(A) a community located in a ZIP code that includes 1 or
more census tracts that include--
(i) a low-income community; or
(ii) a community of racial or ethnic minority
concentration; and
(B) any other community that the Secretary determines is
disproportionately vulnerable to, or bears a disproportionate
burden of, any combination of economic, social, and
environmental stressors.

SEC. 50122. HIGH-EFFICIENCY ELECTRIC HOME REBATE PROGRAM.

(a) Appropriations.--
(1) Funds to state energy offices and indian tribes.--In
addition to amounts otherwise available, there is
appropriated to the Secretary for fiscal year 2022, out of
any money in the Treasury not otherwise appropriated, to
carry out a program--
(A) to award grants to State energy offices to develop and
implement a high-efficiency electric home rebate program in
accordance with subsection (c), $4,275,000,000, to remain
available through September 30, 2031; and
(B) to award grants to Indian Tribes to develop and
implement a high-efficiency electric home rebate program in
accordance with subsection (c), $225,000,000, to remain
available through September 30, 2031.
(2) Allocation of funds.--
(A) State energy offices.--The Secretary shall reserve
funds made available under paragraph (1)(A) for each State
energy office--
(i) in accordance with the allocation formula for the State
Energy Program in effect on January 1, 2022; and
(ii) to be distributed to a State energy office if the
application of the State energy office under subsection (b)
is approved.
(B) Indian tribes.--The Secretary shall reserve funds made
available under paragraph (1)(B)--
(i) in a manner determined appropriate by the Secretary;
and
(ii) to be distributed to an Indian Tribe if the
application of the Indian Tribe under subsection (b) is
approved.
(C) Additional funds.--Not earlier than 2 years after the
date of enactment of this Act, any money reserved under--
(i) subparagraph (A) but not distributed under clause (ii)
of that subparagraph shall be redistributed to the State
energy offices operating a high-efficiency electric home
rebate program in proportion to the amount distributed to
those State energy offices under that clause; and
(ii) subparagraph (B) but not distributed under clause (ii)
of that subparagraph shall be redistributed to the Indian
Tribes operating a high-efficiency electric home rebate
program in proportion to the amount distributed to those
Indian Tribes under that clause.
(3) Administrative expenses.--Of the funds made available
under paragraph (1), the Secretary shall use not more than 3
percent for--
(A) administrative purposes; and
(B) providing technical assistance relating to activities
carried out under this section.
(b) Application.--A State energy office or Indian Tribe
seeking a grant under the program shall submit to the
Secretary an application that includes a plan to implement a
high-efficiency electric home rebate program, including--
(1) a plan to verify the income eligibility of eligible
entities seeking a rebate for a qualified electrification
project;
(2) a plan to allow rebates for qualified electrification
projects at the point of sale in a manner that ensures that
the income eligibility of an eligible entity seeking a rebate
may be verified at the point of sale;
(3) a plan to ensure that an eligible entity does not
receive a rebate for the same qualified electrification
project through both a high-efficiency electric home rebate
program and any other Federal grant or rebate program,
pursuant to subsection (c)(8); and
(4) any additional information that the Secretary may
require.
(c) High-efficiency Electric Home Rebate Program.--
(1) In general.--Under the program, the Secretary shall
award grants to State energy offices and Indian Tribes to
establish a high-efficiency electric home rebate program
under which rebates shall be provided to eligible entities
for qualified electrification projects.
(2) Guidelines.--The Secretary shall prescribe guidelines
for high-efficiency electric home rebate programs, including
guidelines for providing point of sale rebates in a manner
consistent with the income eligibility requirements under
this section.
(3) Amount of rebate.--
(A) Appliance upgrades.--The amount of a rebate provided
under a high-efficiency electric home rebate program for the
purchase of an appliance under a qualified electrification
project shall be--
(i) not more than $1,750 for a heat pump water heater;
(ii) not more than $8,000 for a heat pump for space heating
or cooling; and
(iii) not more than $840 for--

(I) an electric stove, cooktop, range, or oven; or
(II) an electric heat pump clothes dryer.

(B) Nonappliance upgrades.--The amount of a rebate provided
under a high-efficiency electric home rebate program for the
purchase of a nonappliance upgrade under a qualified
electrification project shall be--
(i) not more than $4,000 for an electric load service
center upgrade;

[[Page S3979]]

(ii) not more than $1,600 for insulation, air sealing, and
ventilation; and
(iii) not more than $2,500 for electric wiring.
(C) Maximum rebate.--An eligible entity receiving multiple
rebates under this section may receive not more than a total
of $14,000 in rebates.
(4) Limitations.--A rebate provided using funding under
this section shall not exceed--
(A) in the case of an eligible entity described in
subsection (d)(1)(A)--
(i) 50 percent of the cost of the qualified electrification
project for a household the annual income of which is not
less than 80 percent and not greater than 150 percent of the
area median income; and
(ii) 100 percent of the cost of the qualified
electrification project for a household the annual income of
which is less than 80 percent of the area median income;
(B) in the case of an eligible entity described in
subsection (d)(1)(B)--
(i) 50 percent of the cost of the qualified electrification
project for a multifamily building not less than 50 percent
of the residents of which are households the annual income of
which is not less than 80 percent and not greater than 150
percent of the area median income; and
(ii) 100 percent of the cost of the qualified
electrification project for a multifamily building not less
than 50 percent of the residents of which are households the
annual income of which is less than 80 percent of the area
median income; or
(C) in the case of an eligible entity described in
subsection (d)(1)(C)--
(i) 50 percent of the cost of the qualified electrification
project for a household--

(I) on behalf of which the eligible entity is working; and
(II) the annual income of which is not less than 80 percent
and not greater than 150 percent of the area median income;
and

(ii) 100 percent of the cost of the qualified
electrification project for a household--

(I) on behalf of which the eligible entity is working; and
(II) the annual income of which is less than 80 percent of
the area median income.

(5) Amount for installation of upgrades.--
(A) In general.--In the case of an eligible entity
described in subsection (d)(1)(C) that receives a rebate
under the program and performs the installation of the
applicable qualified electrification project, a State energy
office or Indian Tribe shall provide to that eligible entity,
in addition to the rebate, an amount that--
(i) does not exceed $500; and
(ii) is commensurate with the scale of the upgrades
installed as part of the qualified electrification project
and any enhanced labor practices, as determined by the
Secretary.
(B) Treatment.--An amount received under subparagraph (A)
by an eligible entity described in that subparagraph shall
not be subject to the requirement under paragraph (6).
(6) Requirement.--An eligible entity described in
subparagraph (C) of subsection (d)(1) shall discount the
amount of a rebate received for a qualified electrification
project from any amount charged by that eligible entity to
the eligible entity described in subparagraph (A) or (B) of
that subsection on behalf of which the qualified
electrification project is carried out.
(7) Exemption.--Activities carried out by a State energy
office using a grant provided under the program shall not be
subject to the expenditure prohibitions and limitations
described in section 420.18 of title 10, Code of Federal
Regulations.
(8) Prohibition on combining rebates.--A rebate provided by
a State energy office or Indian Tribe under a high-efficiency
electric home rebate program may not be combined with any
other Federal grant or rebate, including a rebate provided
under a HOMES rebate program (as defined in section
50121(d)), for the same qualified electrification project.
(9) Administrative costs.--A State energy office or Indian
Tribe that receives a grant under the program shall use not
more than 20 percent of the grant amount for planning,
administration, or technical assistance relating to a high-
efficiency electric home rebate program.
(d) Definitions.--In this section:
(1) Eligible entity.--The term ``eligible entity'' means--
(A) a low- or moderate-income household;
(B) an individual or entity that owns a multifamily
building not less than 50 percent of the residents of which
are low- or moderate-income households; and
(C) a governmental, commercial, or nonprofit entity, as
determined by the Secretary, carrying out a qualified
electrification project on behalf of an entity described in
subparagraph (A) or (B).
(2) High-efficiency electric home rebate program.--The term
``high-efficiency electric home rebate program'' means a
rebate program carried out by a State energy office or Indian
Tribe pursuant to subsection (c) using a grant received under
the program.
(3) Indian tribe.--The term ``Indian Tribe'' has the
meaning given the term in section 4 of the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 5304).
(4) Low- or moderate-income household.--The term ``low- or
moderate-income household'' means an individual or family the
total annual income of which is less than 150 percent of the
median income of the area in which the individual or family
resides, as reported by the Department of Housing and Urban
Development, including an individual or family that has
demonstrated eligibility for another Federal program with
income restrictions equal to or below 150 percent of area
median income.
(5) Program.--The term ``program'' means the program
carried out by the Secretary under subsection (a)(1).
(6) Qualified electrification project.--
(A) In general.--The term ``qualified electrification
project'' means a project that--
(i) includes the purchase and installation of--

(I) an electric heat pump water heater;
(II) an electric heat pump for space heating and cooling;
(III) an electric stove, cooktop, range, or oven;
(IV) an electric heat pump clothes dryer;
(V) an electric load service center;
(VI) insulation;
(VII) air sealing and materials to improve ventilation; or
(VIII) electric wiring;

(ii) with respect to any appliance described in clause (i),
the purchase of which is carried out--

(I) as part of new construction;
(II) to replace a nonelectric appliance; or
(III) as a first-time purchase with respect to that
appliance; and

(iii) is carried out at, or relating to, a single-family
home or multifamily building, as applicable and defined by
the Secretary.
(B) Exclusions.--The term ``qualified electrification
project'' does not include any project with respect to which
the appliance, system, equipment, infrastructure, component,
or other item described in subclauses (I) through (VIII) of
subparagraph (A)(i) is not certified under the Energy Star
program established by section 324A of the Energy Policy and
Conservation Act (42 U.S.C. 6294a), if applicable.

SEC. 50123. STATE-BASED HOME ENERGY EFFICIENCY CONTRACTOR
TRAINING GRANTS.

(a) Appropriation.--In addition to amounts otherwise
available, there is appropriated to the Secretary for fiscal
year 2022, out of any money in the Treasury not otherwise
appropriated, $200,000,000, to remain available through
September 30, 2031, to carry out a program to provide
financial assistance to States to develop and implement a
State program described in section 362(d)(13) of the Energy
Policy and Conservation Act (42 U.S.C. 6322(d)(13)), which
shall provide training and education to contractors involved
in the installation of home energy efficiency and
electrification improvements, including improvements eligible
for rebates under a HOMES rebate program (as defined in
section 50121(d)) or a high-efficiency electric home rebate
program (as defined in section 50122(d)), as part of an
approved State energy conservation plan under the State
Energy Program.
(b) Use of Funds.--A State may use amounts received under
subsection (a)--
(1) to reduce the cost of training contractor employees;
(2) to provide testing and certification of contractors
trained and educated under a State program developed and
implemented pursuant to subsection (a); and
(3) to partner with nonprofit organizations to develop and
implement a State program pursuant to subsection (a).
(c) Administrative Expenses.--Of the amounts received by a
State under subsection (a), a State shall use not more than
10 percent for administrative expenses associated with
developing and implementing a State program pursuant to that
subsection.

PART 3--BUILDING EFFICIENCY AND RESILIENCE

SEC. 50131. ASSISTANCE FOR LATEST AND ZERO BUILDING ENERGY
CODE ADOPTION.

(a) Appropriation.--In addition to amounts otherwise
available, there is appropriated to the Secretary for fiscal
year 2022, out of any money in the Treasury not otherwise
appropriated--
(1) $330,000,000, to remain available through September 30,
2029, to carry out activities under part D of title III of
the Energy Policy and Conservation Act (42 U.S.C. 6321
through 6326) in accordance with subsection (b); and
(2) $670,000,000, to remain available through September 30,
2029, to carry out activities under part D of title III of
the Energy Policy and Conservation Act (42 U.S.C. 6321
through 6326) in accordance with subsection (c).
(b) Latest Building Energy Code.--The Secretary shall use
funds made available under subsection (a)(1) for grants to
assist States, and units of local government that have
authority to adopt building codes--
(1) to adopt--
(A) a building energy code (or codes) for residential
buildings that meets or exceeds the 2021 International Energy
Conservation Code, or achieves equivalent or greater energy
savings;
(B) a building energy code (or codes) for commercial
buildings that meets or exceeds the ANSI/ASHRAE/IES Standard
90.1-2019, or achieves equivalent or greater energy savings;
or
(C) any combination of building energy codes described in
subparagraph (A) or (B); and
(2) to implement a plan for the jurisdiction to achieve
full compliance with any building energy code adopted under
paragraph (1) in new and renovated residential or commercial

[[Page S3980]]

buildings, as applicable, which plan shall include active
training and enforcement programs and measurement of the rate
of compliance each year.
(c) Zero Energy Code.--The Secretary shall use funds made
available under subsection (a)(2) for grants to assist
States, and units of local government that have authority to
adopt building codes--
(1) to adopt a building energy code (or codes) for
residential and commercial buildings that meets or exceeds
the zero energy provisions in the 2021 International Energy
Conservation Code or an equivalent stretch code; and
(2) to implement a plan for the jurisdiction to achieve
full compliance with any building energy code adopted under
paragraph (1) in new and renovated residential and commercial
buildings, which plan shall include active training and
enforcement programs and measurement of the rate of
compliance each year.
(d) State Match.--The State cost share requirement under
the item relating to ``Department of Energy--Energy
Conservation'' in title II of the Department of the Interior
and Related Agencies Appropriations Act, 1985 (42 U.S.C.
6323a; 98 Stat. 1861), shall not apply to assistance provided
under this section.
(e) Administrative Costs.--Of the amounts made available
under this section, the Secretary shall reserve 5 percent for
administrative costs necessary to carry out this section.

PART 4--DOE LOAN AND GRANT PROGRAMS

SEC. 50141. FUNDING FOR DEPARTMENT OF ENERGY LOAN PROGRAMS
OFFICE.

(a) Commitment Authority.--In addition to commitment
authority otherwise available and previously provided, the
Secretary may make commitments to guarantee loans for
eligible projects under section 1703 of the Energy Policy Act
of 2005 (42 U.S.C. 16513), up to a total principal amount of
$40,000,000,000, to remain available through September 30,
2026.
(b) Appropriation.--In addition to amounts otherwise
available and previously provided, there is appropriated to
the Secretary for fiscal year 2022, out of any money in the
Treasury not otherwise appropriated, $3,600,000,000, to
remain available through September 30, 2026, for the costs of
guarantees made under section 1703 of the Energy Policy Act
of 2005 (42 U.S.C. 16513), using the loan guarantee authority
provided under subsection (a) of this section.
(c) Administrative Expenses.--Of the amount made available
under subsection (b), the Secretary shall reserve 3 percent
for administrative expenses to carry out title XVII of the
Energy Policy Act of 2005 and for carrying out section
1702(h)(3) of such Act (42 U.S.C. 16512(h)(3)).
(d) Limitations.--
(1) Certification.--None of the amounts made available
under this section for loan guarantees shall be available for
any project unless the President has certified in advance in
writing that the loan guarantee and the project comply with
the provisions under this section.
(2) Denial of double benefit.--Except as provided in
paragraph (3), none of the amounts made available under this
section for loan guarantees shall be available for
commitments to guarantee loans for any projects under which
funds, personnel, or property (tangible or intangible) of any
Federal agency, instrumentality, personnel, or affiliated
entity are expected to be used (directly or indirectly)
through acquisitions, contracts, demonstrations, exchanges,
grants, incentives, leases, procurements, sales, other
transaction authority, or other arrangements to support the
project or to obtain goods or services from the project.
(3) Exception.--Paragraph (2) shall not preclude the use of
the loan guarantee authority provided under this section for
commitments to guarantee loans for--
(A) projects benefitting from otherwise allowable Federal
tax benefits;
(B) projects benefitting from being located on Federal land
pursuant to a lease or right-of-way agreement for which all
consideration for all uses is--
(i) paid exclusively in cash;
(ii) deposited in the Treasury as offsetting receipts; and
(iii) equal to the fair market value;
(C) projects benefitting from the Federal insurance program
under section 170 of the Atomic Energy Act of 1954 (42 U.S.C.
2210); or
(D) electric generation projects using transmission
facilities owned or operated by a Federal Power Marketing
Administration or the Tennessee Valley Authority that have
been authorized, approved, and financed independent of the
project receiving the guarantee.
(e) Guarantee.--Section 1701(4)(A) of the Energy Policy Act
of 2005 (42 U.S.C. 16511(4)(A)) is amended by inserting ``,
except that a loan guarantee may guarantee any debt
obligation of a non-Federal borrower to any Eligible Lender
(as defined in section 609.2 of title 10, Code of Federal
Regulations)'' before the period at the end.
(f) Source of Payments.--Section 1702(b) of the Energy
Policy Act of 2005 (42 U.S.C. 16512(b)(2)) is amended by
adding at the end the following:
``(3) Source of payments.--The source of a payment received
from a borrower under subparagraph (A) or (B) of paragraph
(2) may not be a loan or other debt obligation that is made
or guaranteed by the Federal Government.''.

SEC. 50142. ADVANCED TECHNOLOGY VEHICLE MANUFACTURING.

(a) Appropriation.--In addition to amounts otherwise
available, there is appropriated to the Secretary for fiscal
year 2022, out of any money in the Treasury not otherwise
appropriated, $3,000,000,000, to remain available through
September 30, 2028, for the costs of providing direct loans
under section 136(d) of the Energy Independence and Security
Act of 2007 (42 U.S.C. 17013(d)):  Provided, That funds
appropriated by this section may be used for the costs of
providing direct loans for reequipping, expanding, or
establishing a manufacturing facility in the United States to
produce, or for engineering integration performed in the
United States of, advanced technology vehicles described in
subparagraph (C), (D), (E), or (F) of section 136(a)(1) of
such Act (42 U.S.C. 17013(a)(1)) only if such advanced
technology vehicles emit, under any possible operational mode
or condition, low or zero exhaust emissions of greenhouse
gases.
(b) Administrative Costs.--The Secretary shall reserve
$25,000,000 of amounts made available under subsection (a)
for administrative costs of providing loans as described in
subsection (a).
(c) Elimination of Loan Program Cap.--Section 136(d)(1) of
the Energy Independence and Security Act of 2007 (42 U.S.C.
17013(d)(1)) is amended by striking ``a total of not more
than $25,000,000,000 in''.

SEC. 50143. DOMESTIC MANUFACTURING CONVERSION GRANTS.

(a) Appropriation.--In addition to amounts otherwise
available, there is appropriated to the Secretary for fiscal
year 2022, out of any money in the Treasury not otherwise
appropriated, $2,000,000,000, to remain available through
September 30, 2031, to provide grants for domestic production
of efficient hybrid, plug-in electric hybrid, plug-in
electric drive, and hydrogen fuel cell electric vehicles, in
accordance with section 712 of the Energy Policy Act of 2005
(42 U.S.C. 16062).
(b) Cost Share.--The Secretary shall require a recipient of
a grant provided under subsection (a) to provide not less
than 50 percent of the cost of the project carried out using
the grant.
(c) Administrative Costs.--The Secretary shall reserve 3
percent of amounts made available under subsection (a) for
administrative costs of making grants described in such
subsection (a) pursuant to section 712 of the Energy Policy
Act of 2005 (42 U.S.C. 16062).

SEC. 50144. ENERGY INFRASTRUCTURE REINVESTMENT FINANCING.

(a) Appropriation.--In addition to amounts otherwise
available, there is appropriated to the Secretary for fiscal
year 2022, out of any money in the Treasury not otherwise
appropriated, $5,000,000,000, to remain available through
September 30, 2026, to carry out activities under section
1706 of the Energy Policy Act of 2005.
(b) Commitment Authority.--The Secretary may make, through
September 30, 2026, commitments to guarantee loans for
projects under section 1706 of the Energy Policy Act of 2005
the total principal amount of which is not greater than
$250,000,000,000, subject to the limitations that apply to
loan guarantees under section 50141(d).
(c) Energy Infrastructure Reinvestment Financing.--Title
XVII of the Energy Policy Act of 2005 is amended by inserting
after section 1705 (42 U.S.C. 16516) the following:

``SEC. 1706. ENERGY INFRASTRUCTURE REINVESTMENT FINANCING.

``(a) In General.--Notwithstanding section 1703, the
Secretary may make guarantees, including refinancing, under
this section only for projects that--
``(1) retool, repower, repurpose, or replace energy
infrastructure that has ceased operations; or
``(2) enable operating energy infrastructure to avoid,
reduce, utilize, or sequester air pollutants or anthropogenic
emissions of greenhouse gases.
``(b) Inclusion.--A project under subsection (a) may
include the remediation of environmental damage associated
with energy infrastructure.
``(c) Requirement.--A project under subsection (a)(1) that
involves electricity generation through the use of fossil
fuels shall be required to have controls or technologies to
avoid, reduce, utilize, or sequester air pollutants and
anthropogenic emissions of greenhouse gases.
``(d) Application.--To apply for a guarantee under this
section, an applicant shall submit to the Secretary an
application at such time, in such manner, and containing such
information as the Secretary may require, including--
``(1) a detailed plan describing the proposed project;
``(2) an analysis of how the proposed project will engage
with and affect associated communities; and
``(3) in the case of an applicant that is an electric
utility, an assurance that the electric utility shall pass on
any financial benefit from the guarantee made under this
section to the customers of, or associated communities served
by, the electric utility.
``(e) Term.--Notwithstanding section 1702(f), the term of
an obligation shall require full repayment over a period not
to exceed 30 years.
``(f) Definition of Energy Infrastructure.--In this
section, the term `energy infrastructure' means a facility,
and associated equipment, used for--

[[Page S3981]]

``(1) the generation or transmission of electric energy; or
``(2) the production, processing, and delivery of fossil
fuels, fuels derived from petroleum, or petrochemical
feedstocks.''.
(d) Conforming Amendment.--Section 1702(o)(3) of the Energy
Policy Act of 2005 (42 U.S.C. 16512(o)(3)) is amended by
inserting ``and projects described in section 1706(a)''
before the period at the end.
(e) Clerical Amendment.--The table of contents for the
Energy Policy Act of 2005 is amended by inserting after the
item relating to section 1705 (Public Law 109-58; 119 Stat.
604; 123 Stat. 145) the following:

``Sec. 1706. Energy infrastructure reinvestment financing.''.

SEC. 50145. TRIBAL ENERGY LOAN GUARANTEE PROGRAM.

(a) Appropriation.--In addition to amounts otherwise
available, there is appropriated to the Secretary for fiscal
year 2022, out of any money in the Treasury not otherwise
appropriated, $75,000,000, to remain available through
September 30, 2028, to carry out section 2602(c) of the
Energy Policy Act of 1992 (25 U.S.C. 3502(c)), subject to the
limitations that apply to loan guarantees under section
50141(d).
(b) Department of Energy Tribal Energy Loan Guarantee
Program.--Section 2602(c) of the Energy Policy Act of 1992
(25 U.S.C. 3502(c)) is amended--
(1) in paragraph (1), by striking ``) for an amount equal
to not more than 90 percent of'' and inserting ``, except
that a loan guarantee may guarantee any debt obligation of a
non-Federal borrower to any Eligible Lender (as defined in
section 609.2 of title 10, Code of Federal Regulations))
for''; and
(2) in paragraph (4), by striking ``$2,000,000,000'' and
inserting ``$20,000,000,000''.

PART 5--ELECTRIC TRANSMISSION

SEC. 50151. TRANSMISSION FACILITY FINANCING.

(a) Appropriation.--In addition to amounts otherwise
available, there is appropriated to the Secretary for fiscal
year 2022, out of any money in the Treasury not otherwise
appropriated, $2,000,000,000, to remain available through
September 30, 2030, to carry out this section:  Provided,
That the Secretary shall not enter into any loan agreement
pursuant to this section that could result in disbursements
after September 30, 2031.
(b) Use of Funds.--The Secretary shall use the amounts made
available by subsection (a) to carry out a program to make
direct loans to non-Federal borrowers, subject to the
limitations that apply to loan guarantees under section
50141(d) and under such terms and conditions as the Secretary
determines to be appropriate, for the construction or
modification of electric transmission facilities designated
by the Secretary to be necessary in the national interest
under section 216(a) of the Federal Power Act (16 U.S.C.
824p(a)).
(c) Loans.--A direct loan provided under this section--
(1) shall have a term that does not exceed the lesser of--
(A) 90 percent of the projected useful life, in years, of
the eligible transmission facility; and
(B) 30 years;
(2) shall not exceed 80 percent of the project costs; and
(3) shall, on first issuance, be subject to the condition
that the direct loan is not subordinate to other financing.
(d) Interest Rates.--A direct loan provided under this
section shall bear interest at a rate determined by the
Secretary, taking into consideration market yields on
outstanding marketable obligations of the United States of
comparable maturities as of the date on which the direct loan
is made.
(e) Definition of Direct Loan.--In this section, the term
``direct loan'' has the meaning given the term in section 502
of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a).

SEC. 50152. GRANTS TO FACILITATE THE SITING OF INTERSTATE
ELECTRICITY TRANSMISSION LINES.

(a) Appropriation.--In addition to amounts otherwise
available, there is appropriated to the Secretary for fiscal
year 2022, out of any money in the Treasury not otherwise
appropriated, $760,000,000, to remain available through
September 30, 2029, for making grants in accordance with this
section and for administrative expenses associated with
carrying out this section.
(b) Use of Funds.--
(1) In general.--The Secretary may make a grant under this
section to a siting authority for, with respect to a covered
transmission project, any of the following activities:
(A) Studies and analyses of the impacts of the covered
transmission project.
(B) Examination of up to 3 alternate siting corridors
within which the covered transmission project feasibly could
be sited.
(C) Hosting and facilitation of negotiations in settlement
meetings involving the siting authority, the covered
transmission project applicant, and opponents of the covered
transmission project, for the purpose of identifying and
addressing issues that are preventing approval of the
application relating to the siting or permitting of the
covered transmission project.
(D) Participation by the siting authority in regulatory
proceedings or negotiations in another jurisdiction, or under
the auspices of a Transmission Organization (as defined in
section 3 of the Federal Power Act (16 U.S.C. 796)) that is
also considering the siting or permitting of the covered
transmission project.
(E) Participation by the siting authority in regulatory
proceedings at the Federal Energy Regulatory Commission or a
State regulatory commission for determining applicable rates
and cost allocation for the covered transmission project.
(F) Other measures and actions that may improve the chances
of, and shorten the time required for, approval by the siting
authority of the application relating to the siting or
permitting of the covered transmission project, as the
Secretary determines appropriate.
(2) Economic development.--The Secretary may make a grant
under this section to a siting authority, or other State,
local, or Tribal governmental entity, for economic
development activities for communities that may be affected
by the construction and operation of a covered transmission
project, provided that the Secretary shall not enter into any
grant agreement pursuant to this section that could result in
any outlays after September 30, 2031.
(c) Conditions.--
(1) Final decision on application.--In order to receive a
grant for an activity described in subsection (b)(1), the
Secretary shall require a siting authority to agree, in
writing, to reach a final decision on the application
relating to the siting or permitting of the applicable
covered transmission project not later than 2 years after the
date on which such grant is provided, unless the Secretary
authorizes an extension for good cause.
(2) Federal share.--The Federal share of the cost of an
activity described in subparagraph (D) or (E) of subsection
(b)(1) shall not exceed 50 percent.
(3) Economic development.--The Secretary may only disburse
grant funds for economic development activities under
subsection (b)(2)--
(A) to a siting authority upon approval by the siting
authority of the applicable covered transmission project; and
(B) to any other State, local, or Tribal governmental
entity upon commencement of construction of the applicable
covered transmission project in the area under the
jurisdiction of the entity.
(d) Returning Funds.--If a siting authority that receives a
grant for an activity described in subsection (b)(1) fails to
use all grant funds within 2 years of receipt, the siting
authority shall return to the Secretary any such unused
funds.
(e) Definitions.--In this section:
(1) Covered transmission project.--The term ``covered
transmission project'' means a high-voltage interstate or
offshore electricity transmission line--
(A) that is proposed to be constructed and to operate--
(i) at a minimum of 275 kilovolts of either alternating-
current or direct-current electric energy by an entity; or
(ii) offshore and at a minimum of 200 kilovolts of either
alternating-current or direct-current electric energy by an
entity; and
(B) for which such entity has applied, or informed a siting
authority of such entity's intent to apply, for regulatory
approval.
(2) Siting authority.--The term ``siting authority'' means
a State, local, or Tribal governmental entity with authority
to make a final determination regarding the siting,
permitting, or regulatory status of a covered transmission
project that is proposed to be located in an area under the
jurisdiction of the entity.

SEC. 50153. INTERREGIONAL AND OFFSHORE WIND ELECTRICITY
TRANSMISSION PLANNING, MODELING, AND ANALYSIS.

(a) Appropriation.--In addition to amounts otherwise
available, there is appropriated to the Secretary for fiscal
year 2022, out of any money in the Treasury not otherwise
appropriated, $100,000,000, to remain available through
September 30, 2031, to carry out this section.
(b) Use of Funds.--The Secretary shall use amounts made
available under subsection (a)--
(1) to pay expenses associated with convening relevant
stakeholders, including States, generation and transmission
developers, regional transmission organizations, independent
system operators, environmental organizations, electric
utilities, and other stakeholders the Secretary determines
appropriate, to address the development of interregional
electricity transmission and transmission of electricity that
is generated by offshore wind; and
(2) to conduct planning, modeling, and analysis regarding
interregional electricity transmission and transmission of
electricity that is generated by offshore wind, taking into
account the local, regional, and national economic,
reliability, resilience, security, public policy, and
environmental benefits of interregional electricity
transmission and transmission of electricity that is
generated by offshore wind, including planning, modeling, and
analysis, as the Secretary determines appropriate, pertaining
to--
(A) clean energy integration into the electric grid,
including the identification of renewable energy zones;
(B) the effects of changes in weather due to climate change
on the reliability and resilience of the electric grid;
(C) cost allocation methodologies that facilitate the
expansion of the bulk power system;

[[Page S3982]]

(D) the benefits of coordination between generator
interconnection processes and transmission planning
processes;
(E) the effect of increased electrification on the electric
grid;
(F) power flow modeling;
(G) the benefits of increased interconnections or interties
between or among the Western Interconnection, the Eastern
Interconnection, the Electric Reliability Council of Texas,
and other interconnections, as applicable;
(H) the cooptimization of transmission and generation,
including variable energy resources, energy storage, and
demand-side management;
(I) the opportunities for use of nontransmission
alternatives, energy storage, and grid-enhancing
technologies;
(J) economic development opportunities for communities
arising from development of interregional electricity
transmission and transmission of electricity that is
generated by offshore wind;
(K) evaluation of existing rights-of-way and the need for
additional transmission corridors; and
(L) a planned national transmission grid, which would
include a networked transmission system to optimize the
existing grid for interconnection of offshore wind farms.

PART 6--INDUSTRIAL

SEC. 50161. ADVANCED INDUSTRIAL FACILITIES DEPLOYMENT
PROGRAM.

(a) Office of Clean Energy Demonstrations.--In addition to
amounts otherwise available, there is appropriated to the
Secretary, acting through the Office of Clean Energy
Demonstrations, for fiscal year 2022, out of any money in the
Treasury not otherwise appropriated, $5,812,000,000, to
remain available through September 30, 2026, to carry out
this section.
(b) Financial Assistance.--The Secretary shall use funds
appropriated by subsection (a) to provide financial
assistance, on a competitive basis, to eligible entities to
carry out projects for--
(1) the purchase and installation, or implementation, of
advanced industrial technology at an eligible facility;
(2) retrofits, upgrades to, or operational improvements at
an eligible facility to install or implement advanced
industrial technology; or
(3) engineering studies and other work needed to prepare an
eligible facility for activities described in paragraph (1)
or (2).
(c) Application.--To be eligible to receive financial
assistance under subsection (b), 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, including the expected greenhouse gas emissions
reductions to be achieved by carrying out the project.
(d) Priority.--In providing financial assistance under
subsection (b), the Secretary shall give priority
consideration to projects on the basis of, as determined by
the Secretary--
(1) the expected greenhouse gas emissions reductions to be
achieved by carrying out the project;
(2) the extent to which the project would provide the
greatest benefit for the greatest number of people within the
area in which the eligible facility is located; and
(3) whether the eligible entity participates or would
participate in a partnership with purchasers of the output of
the eligible facility.
(e) Cost Share.--The Secretary shall require an eligible
entity to provide not less than 50 percent of the cost of a
project carried out pursuant to this section.
(f) Administrative Costs.--The Secretary shall reserve
$200,000,000 of amounts made available under subsection (a)
for administrative costs of carrying out this section.
(g) Definitions.--In this section:
(1) Advanced industrial technology.--The term ``advanced
industrial technology'' means a technology directly involved
in an industrial process, as described in any of paragraphs
(1) through (6) of section 454(c) of the Energy Independence
and Security Act of 2007 (42 U.S.C. 17113(c)), and designed
to accelerate greenhouse gas emissions reduction progress to
net-zero at an eligible facility, as determined by the
Secretary.
(2) Eligible entity.--The term ``eligible entity'' means
the owner or operator of an eligible facility.
(3) Eligible facility.--The term ``eligible facility''
means a domestic, non-Federal, nonpower industrial or
manufacturing facility engaged in energy-intensive industrial
processes, including production processes for iron, steel,
steel mill products, aluminum, cement, concrete, glass, pulp,
paper, industrial ceramics, chemicals, and other energy
intensive industrial processes, as determined by the
Secretary.
(4) Financial assistance.--The term ``financial
assistance'' means a grant, rebate, direct loan, or
cooperative agreement.

PART 7--OTHER ENERGY MATTERS

SEC. 50171. DEPARTMENT OF ENERGY OVERSIGHT.

In addition to amounts otherwise available, there is
appropriated to the Secretary for fiscal year 2022, out of
any money in the Treasury not otherwise appropriated,
$10,000,000, to remain available through September 30, 2031,
for oversight by the Department of Energy Office of Inspector
General of the Department of Energy activities for which
funding is appropriated in this subtitle.

SEC. 50172. NATIONAL LABORATORY INFRASTRUCTURE.

(a) Office of Science.--In addition to amounts otherwise
available, there is appropriated to the Secretary, acting
through the Director of the Office of Science, for fiscal
year 2022, out of any money in the Treasury not otherwise
appropriated, to remain available through September 30,
2027--
(1) $133,240,000 to carry out activities for science
laboratory infrastructure projects;
(2) $303,656,000 to carry out activities for high energy
physics construction and major items of equipment projects;
(3) $280,000,000 to carry out activities for fusion energy
science construction and major items of equipment projects;
(4) $217,000,000 to carry out activities for nuclear
physics construction and major items of equipment projects;
(5) $163,791,000 to carry out activities for advanced
scientific computing research facilities;
(6) $294,500,000 to carry out activities for basic energy
sciences projects; and
(7) $157,813,000 to carry out activities for isotope
research and development facilities.
(b) Office of Fossil Energy and Carbon Management.--In
addition to amounts otherwise available, there is
appropriated to the Secretary for fiscal year 2022, out of
any money in the Treasury not otherwise appropriated,
$150,000,000, to remain available through September 30, 2027,
to carry out activities for infrastructure and general plant
projects carried out by the Office of Fossil Energy and
Carbon Management.
(c) Office of Nuclear Energy.--In addition to amounts
otherwise available, there is appropriated to the Secretary
for fiscal year 2022, out of any money in the Treasury not
otherwise appropriated, $150,000,000, to remain available
through September 30, 2027, to carry out activities for
infrastructure and general plant projects carried out by the
Office of Nuclear Energy.
(d) Office of Energy Efficiency and Renewable Energy.--In
addition to amounts otherwise available, there is
appropriated to the Secretary for fiscal year 2022, out of
any money in the Treasury not otherwise appropriated,
$150,000,000, to remain available through September 30, 2027,
to carry out activities for infrastructure and general plant
projects carried out by the Office of Energy Efficiency and
Renewable Energy.

SEC. 50173. AVAILABILITY OF HIGH-ASSAY LOW-ENRICHED URANIUM.

(a) Appropriations.--In addition to amounts otherwise
available, there is appropriated to the Secretary of for
fiscal year 2022, out of any money in the Treasury not
otherwise appropriated, to remain available through September
30, 2026--
(1) $100,000,000 to carry out the program elements
described in subparagraphs (A) through (C) of section
2001(a)(2) of the Energy Act of 2020 (42 U.S.C. 16281(a)(2));
(2) $500,000,000 to carry out the program elements
described in subparagraphs (D) through (H) of that section;
and
(3) $100,000,000 to carry out activities to support the
availability of high-assay low-enriched uranium for civilian
domestic research, development, demonstration, and commercial
use under section 2001 of the Energy Act of 2020 (42 U.S.C.
16281).
(b) Competitive Procedures.--To the maximum extent
practicable, the Department of Energy shall, in a manner
consistent with section 989 of the Energy Policy Act of 2005
(42 U.S.C. 16353), use a competitive, merit-based review
process in carrying out research, development, demonstration,
and deployment activities under section 2001 of the Energy
Act of 2020 (42 U.S.C. 16281).
(c) Administrative Expenses.--The Secretary may use not
more than 3 percent of the amounts appropriated by subsection
(a) for administrative purposes.

Subtitle B--Natural Resources

PART 1--GENERAL PROVISIONS

SEC. 50211. DEFINITIONS.

In this subtitle:
(1) Secretary.--The term ``Secretary'' means the Secretary
of the Interior.
(2) United states insular areas.--The term ``United States
Insular Areas'' means American Samoa, the Commonwealth of the
Northern Mariana Islands, Guam, the Commonwealth of Puerto
Rico, and the United States Virgin Islands.

PART 2--PUBLIC LANDS

SEC. 50221. NATIONAL PARKS AND PUBLIC LANDS CONSERVATION AND
RESILIENCE.

In addition to amounts otherwise available, there is
appropriated to the Secretary for fiscal year 2022, out of
any money in the Treasury not otherwise appropriated,
$250,000,000, to remain available through September 30, 2031,
to carry out projects for the conservation, protection, and
resiliency of lands and resources administered by the
National Park Service and Bureau of Land Management. None of
the funds provided under this section shall be subject to
cost-share or matching requirements.

SEC. 50222. NATIONAL PARKS AND PUBLIC LANDS CONSERVATION AND
ECOSYSTEM RESTORATION.

In addition to amounts otherwise available, there is
appropriated to the Secretary for fiscal year 2022, out of
any money in the Treasury not otherwise appropriated,
$250,000,000, to remain available through September 30, 2031,
to carry out conservation, ecosystem and habitat restoration
projects on lands administered by the National Park Service
and Bureau of Land Management. None of the funds provided
under this section shall be subject to cost-share or matching
requirements.

[[Page S3983]]

SEC. 50223. NATIONAL PARK SERVICE EMPLOYEES.

In addition to amounts otherwise available, there is
appropriated to the Secretary for fiscal year 2022, out of
any money in the Treasury not otherwise appropriated,
$500,000,000, to remain available through September 30, 2030,
to hire employees in units of the National Park System.

PART 3--DROUGHT RESPONSE AND PREPAREDNESS

SEC. 50231. BUREAU OF RECLAMATION DOMESTIC WATER SUPPLY
PROJECTS.

In addition to amounts otherwise available, there is
appropriated to the Secretary, acting through the
Commissioner of Reclamation, for fiscal year 2022, out of any
money in the Treasury not otherwise appropriated,
$550,000,000, to remain available through September 30, 2031,
for grants, contracts, or financial assistance agreements for
disadvantaged communities (identified according to criteria
adopted by the Commissioner of Reclamation) in a manner as
determined by the Commissioner of Reclamation for up to 100
percent of the cost of the planning, design, or construction
of water projects the primary purpose of which is to provide
domestic water supplies to communities or households that do
not have reliable access to domestic water supplies in a
State or territory described in the first section of the Act
of June 17, 1902 (43 U.S.C. 391; 32 Stat. 388, chapter 1093).

SEC. 50232. CANAL IMPROVEMENT PROJECTS.

In addition to amounts otherwise available, there is
appropriated to the Secretary, acting through the
Commissioner of Reclamation, for fiscal year 2022, out of any
money in the Treasury not otherwise appropriated,
$25,000,000, to remain available through September 30, 2031,
for the design, study, and implementation of projects
(including pilot and demonstration projects) to cover water
conveyance facilities with solar panels to generate renewable
energy in a manner as determined by the Secretary or for
other solar projects associated with Bureau of Reclamation
projects that increase water efficiency and assist in
implementation of clean energy goals.

PART 4--INSULAR AFFAIRS

SEC. 50241. OFFICE OF INSULAR AFFAIRS CLIMATE CHANGE
TECHNICAL ASSISTANCE.

(a) In General.--In addition to amounts otherwise
available, there is appropriated to the Secretary, acting
through the Office of Insular Affairs, for fiscal year 2022,
out of any money in the Treasury not otherwise appropriated,
$15,000,000, to remain available through September 30, 2026,
to provide technical assistance for climate change planning,
mitigation, adaptation, and resilience to United States
Insular Areas.
(b) Administrative Expenses.--In addition to amounts
otherwise available, there is appropriated to the Secretary,
acting through the Office of Insular Affairs, for fiscal year
2022, out of any money in the Treasury not otherwise
appropriated, $900,000, to remain available through September
30, 2026, for necessary administrative expenses associated
with carrying out this section.

PART 5--OFFSHORE WIND

SEC. 50251. LEASING ON THE OUTER CONTINENTAL SHELF.

(a) Leasing Authorized.--The Secretary may grant leases,
easements, and rights-of-way pursuant to section 8(p)(1)(C)
of the Outer Continental Shelf Lands Act (43 U.S.C.
1337(p)(1)(C)) in an area withdrawn by--
(1) the Presidential memorandum entitled ``Memorandum on
the Withdrawal of Certain Areas of the United States Outer
Continental Shelf from Leasing Disposition'' and dated
September 8, 2020; or
(2) the Presidential memorandum entitled ``Presidential
Determination on the Withdrawal of Certain Areas of the
United States Outer Continental Shelf from Leasing
Disposition'' and dated September 25, 2020.
(b) Offshore Wind for the Territories.--
(1) Application of outer continental shelf lands act with
respect to territories of the united states.--
(A) In general.--Section 2 of the Outer Continental Shelf
Lands Act (43 U.S.C. 1331) is amended--
(i) in subsection (a)--

(I) by striking ``means all'' and inserting the following:
``means--

``(1) all''; and

(II) in paragraph (1) (as so designated), by striking
``control;'' and inserting the following: ``control or within
the exclusive economic zone of the United States and adjacent
to any territory of the United States; and''; and
(III) by adding at the end following:

``(2) does not include any area conveyed by Congress to a
territorial government for administration;'';
(ii) in subsection (p), by striking ``and'' after the
semicolon at the end;
(iii) in subsection (q), by striking the period at the end
and inserting ``; and''; and
(iv) by adding at the end the following:
``(r) The term `State' means--
``(1) each of the several States;
``(2) the Commonwealth of Puerto Rico;
``(3) Guam;
``(4) American Samoa;
``(5) the United States Virgin Islands; and
``(6) the Commonwealth of the Northern Mariana Islands.''.
(B) Exclusions.--Section 18 of the Outer Continental Shelf
Lands Act (43 U.S.C. 1344) is amended by adding at the end
the following:
``(i) Application.--This section shall not apply to the
scheduling of any lease sale in an area of the outer
Continental Shelf that is adjacent to the Commonwealth of
Puerto Rico, Guam, American Samoa, the United States Virgin
Islands, or the Commonwealth of the Northern Mariana
Islands.''.
(2) Wind lease sales for areas of the outer continental
shelf.--The Outer Continental Shelf Lands Act (43 U.S.C. 1331
et seq.) is amended by adding at the end the following:

``SEC. 33. WIND LEASE SALES FOR AREAS OF THE OUTER
CONTINENTAL SHELF OFFSHORE OF TERRITORIES OF
THE UNITED STATES.

``(a) Wind Lease Sales Off Coasts of Territories of the
United States.--
``(1) Call for information and nominations.--
``(A) In general.--The Secretary shall issue calls for
information and nominations for proposed wind lease sales for
areas of the outer Continental Shelf described in paragraph
(2) that are determined to be feasible.
``(B) Initial call.--Not later than September 30, 2025, the
Secretary shall issue an initial call for information and
nominations under this paragraph.
``(2) Conditional wind lease sales.--The Secretary may
conduct wind lease sales in each area within the exclusive
economic zone of the United States adjacent to the
Commonwealth of Puerto Rico, Guam, American Samoa, the United
States Virgin Islands, or the Commonwealth of the Northern
Mariana Islands that meets each of the following criteria:
``(A) The Secretary has concluded that a wind lease sale in
the area is feasible.
``(B) The Secretary has determined that there is sufficient
interest in leasing the area.
``(C) The Secretary has consulted with the Governor of the
territory regarding the suitability of the area for wind
energy development.''.

PART 6--FOSSIL FUEL RESOURCES

SEC. 50261. OFFSHORE OIL AND GAS ROYALTY RATE.

Section 8(a)(1) of the Outer Continental Shelf Lands Act
(43 U.S.C. 1337(a)(1)) is amended--
(1) in each of subparagraphs (A) and (C), by striking ``not
less than 12\1/2\ per centum'' each place it appears and
inserting ``not less than 16\2/3\ percent, but not more than
18\3/4\ percent, during the 10-year period beginning on the
date of enactment of the Inflation Reduction Act of 2022, and
not less than 16\2/3\ percent thereafter,'';
(2) in subparagraph (F), by striking ``no less than 12\1/2\
per centum'' and inserting ``not less than 16\2/3\ percent,
but not more than 18\3/4\ percent, during the 10-year period
beginning on the date of enactment of the Inflation Reduction
Act of 2022, and not less than 16\2/3\ percent thereafter,'';
and
(3) in subparagraph (H), by striking ``no less than 12 and
\1/2\ per centum'' and inserting ``not less than 16\2/3\
percent, but not more than 18\3/4\ percent, during the 10-
year period beginning on the date of enactment of the
Inflation Reduction Act of 2022, and not less than 16\2/3\
percent thereafter,''.

SEC. 50262. MINERAL LEASING ACT MODERNIZATION.

(a) Onshore Oil and Gas Royalty Rates.--
(1) Lease of oil and gas land.--Section 17 of the Mineral
Leasing Act (30 U.S.C. 226) is amended--
(A) in subsection (b)(1)(A), in the fifth sentence--
(i) by striking ``12.5'' and inserting ``16\2/3\''; and
(ii) by inserting ``or, in the case of a lease issued
during the 10-year period beginning on the date of enactment
of the Inflation Reduction Act of 2022, 16\2/3\ percent in
amount or value of the production removed or sold from the
lease'' before the period at the end; and
(B) by striking ``12\1/2\ per centum'' each place it
appears and inserting ``16\2/3\ percent''.
(2) Conditions for reinstatement.--Section 31(e)(3) of the
Mineral Leasing Act (30 U.S.C. 188(e)(3)) is amended by
striking ``16\2/3\'' each place it appears and inserting
``20''.
(b) Oil and Gas Minimum Bid.--Section 17(b) of the Mineral
Leasing Act (30 U.S.C. 226(b)) is amended--
(1) in paragraph (1)(B), in the first sentence, by striking
``$2 per acre for a period of 2 years from the date of
enactment of the Federal Onshore Oil and Gas Leasing Reform
Act of 1987.'' and inserting ``$10 per acre during the 10-
year period beginning on the date of enactment of the
Inflation Reduction Act of 2022.''; and
(2) in paragraph (2)(C), by striking ``$2 per acre'' and
inserting ``$10 per acre''.
(c) Fossil Fuel Rental Rates.--
(1) Annual rentals.--Section 17(d) of the Mineral Leasing
Act (30 U.S.C. 226(d)) is amended, in the first sentence, by
striking ``$1.50 per acre'' and all that follows through the
period at the end and inserting ``$3 per acre per year during
the 2-year period beginning on the date the lease begins for
new leases, and after the end of that 2-year period, $5 per
acre per year for the following 6-year period, and not less
than $15 per acre per year thereafter, or, in the case of a
lease issued during the 10-year period beginning on the date
of enactment of the Inflation Reduction Act of 2022, $3 per
acre per year during the 2-year period beginning on the date
the lease begins, and after the end of that 2-year period, $5
per acre per year for the following 6-year period, and $15
per acre per year thereafter.''.

[[Page S3984]]

(2) Rentals in reinstated leases.--Section 31(e)(2) of the
Mineral Leasing Act (30 U.S.C. 188(e)(2)) is amended by
striking ``$10'' and inserting ``$20''.
(d) Expression of Interest Fee.--Section 17 of the Mineral
Leasing Act (30 U.S.C. 226) is amended by adding at the end
the following:
``(q) Fee for Expression of Interest.--
``(1) In general.--The Secretary shall assess a
nonrefundable fee against any person that, in accordance with
procedures established by the Secretary to carry out this
subsection, submits an expression of interest in leasing land
available for disposition under this section for exploration
for, and development of, oil or gas.
``(2) Amount of fee.--
``(A) In general.--Subject to subparagraph (B), the fee
assessed under paragraph (1) shall be $5 per acre of the area
covered by the applicable expression of interest.
``(B) Adjustment of fee.--The Secretary shall, by
regulation, not less frequently than every 4 years, adjust
the amount of the fee under subparagraph (A) to reflect the
change in inflation.''.
(e) Elimination of Noncompetitive Leasing.--
(1) In general.--Section 17 of the Mineral Leasing Act (20
U.S.C. 226) is amended--
(A) in subsection (b)--
(i) in paragraph (1)(A)--

(I) in the first sentence, by striking ``paragraphs (2) and
(3) of this subsection'' and inserting ``paragraph (2)''; and
(II) by striking the last sentence; and

(ii) by striking paragraph (3);
(B) by striking subsection (c) and inserting the following:
``(c) Additional Rounds of Competitive Bidding.--Land made
available for leasing under subsection (b)(1) for which no
bid is accepted or received, or the land for which a lease
terminates, expires, is cancelled, or is relinquished, may be
made available by the Secretary of the Interior for a new
round of competitive bidding under that subsection.''; and
(C) by striking subsection (e) and inserting the following:
``(e) Term of Lease.--
``(1) In general.--Any lease issued under this section,
including a lease for tar sand areas, shall be for a primary
term of 10 years.
``(2) Continuation of lease.--A lease described in
paragraph (1) shall continue after the primary term of the
lease for any period during which oil or gas is produced in
paying quantities.
``(3) Additional extensions.--Any lease issued under this
section for land on which, or for which under an approved
cooperative or unit plan of development or operation, actual
drilling operations were commenced and diligently prosecuted
prior to the end of the primary term of the lease shall be
extended for 2 years and for any period thereafter during
which oil or gas is produced in paying quantities.''.
(2) Conforming amendments.--Section 31 of the Mineral
Leasing Act (30 U.S.C. 188) is amended--
(A) in subsection (d)(1), in the first sentence, by
striking ``or section 17(c) of this Act'';
(B) in subsection (e)--
(i) in paragraph (2)--

(I) by striking ``either''; and
(II) by striking ``or the inclusion'' and all that follows
through ``, all''; and

(ii) in paragraph (3)--

(I) in subparagraph (A), by adding ``and'' after the
semicolon;
(II) by striking subparagraph (B); and
(III) by striking ``(3)(A) payment'' and inserting the
following:

``(3) payment'';
(C) in subsection (g)--
(i) in paragraph (1), by striking ``as a competitive'' and
all that follows through ``of this Act'' and inserting ``in
the same manner as the original lease issued pursuant to
section 17'';
(ii) by striking paragraph (2);
(iii) by redesignating paragraphs (3) and (4) as paragraphs
(2) and (3), respectively; and
(iv) in paragraph (2) (as so redesignated), by striking
``applicable to leases issued under subsection 17(c) of this
Act (30 U.S.C. 226(c)) except,'' and inserting ``except'';
(D) in subsection (h), by striking ``subsections (d) and
(f) of this section'' and inserting ``subsection (d)'';
(E) in subsection (i), by striking ``(i)(1) In acting'' and
all that follows through ``of this section'' in paragraph (2)
and inserting the following:
``(i) Royalty reduction in reinstated leases.--In acting on
a petition for reinstatement pursuant to subsection (d)'';
(F) by striking subsection (f); and
(G) by redesignating subsections (g) through (j) as
subsections (f) through (i), respectively.
(f) Oil and Gas Bonding Requirements.--Section 17(g) of the
Mineral Leasing Act (30 U.S.C. 226(g)) is amended by
inserting after the third sentence the following: ``At a
minimum each bond, surety, or other financial arrangement
established for a lease shall be considered inadequate if the
bond, surety, or other financial arrangement is for less than
$150,000, in the case of an individual oil or gas lease in a
State, or for less than $500,000, in the case of an
arrangement for all of the oil and gas leases of an operating
entity in a State, or for less than $2,000,000, in the case
of an arrangement for all of the oil and gas leases of an
operating entity nationwide. The Secretary shall, by
regulation, not less frequently than every 4 years, adjust
the amount at which a bond, surety, or other financial
arrangement is considered inadequate to reflect the change in
inflation.''.

SEC. 50263. ROYALTIES ON ALL EXTRACTED METHANE.

(a) In General.--For all leases issued after the date of
enactment of this Act, except as provided in subsection (b),
royalties paid for gas produced from Federal land and on the
outer Continental Shelf shall be assessed on all gas
produced, including all gas that is consumed or lost by
venting, flaring, or negligent releases through any equipment
during upstream operations.
(b) Exception.--Subsection (a) shall not apply with respect
to--
(1) gas vented or flared for not longer than 48 hours in an
emergency situation that poses a danger to human health,
safety, or the environment;
(2) gas used or consumed within the area of the lease,
unit, or communitized area for the benefit of the lease,
unit, or communitized area; or
(3) gas that is unavoidably lost.

SEC. 50264. LEASE SALES UNDER THE 2017-2022 OUTER CONTINENTAL
SHELF LEASING PROGRAM.

(a) Definitions.--In this section:
(1) 2022 lease sales.--The term ``2022 Lease Sales'' means
each of the following lease sales described in the 2017-2022
Outer Continental Shelf Oil and Gas Leasing Proposed Final
Program published on November 18, 2016, and approved by the
Secretary in the Record of Decision issued on January 17,
2017, described in the notice of availability entitled
``Record of Decision for the 2017-2022 Outer Continental
Shelf Oil and Gas Leasing Program Final Programmatic
Environmental Impact Statement; MMAA104000'' (82 Fed. Reg.
6643 (January 19, 2017)):
(A) Lease Sale 258.
(B) Lease Sale 259.
(2) Lease sale 257.--The term ``Lease Sale 257'' means the
lease sale numbered 257 that was approved in the Record of
Decision described in the notice of availability of a record
of decision issued on August 31, 2021, entitled ``Gulf of
Mexico, Outer Continental Shelf (OCS), Oil and Gas Lease Sale
257'' (86 Fed. Reg. 50160 (September 7, 2021)), and is the
subject of the final notice of sale entitled ``Gulf of Mexico
Outer Continental Shelf Oil and Gas Lease Sale 257'' (86 Fed.
Reg. 54728 (October 4, 2021)).
(3) Lease sale 261.--The term ``Lease Sale 261'' means the
lease sale numbered 261 described in the 2017-2022 Outer
Continental Shelf Oil and Gas Leasing Proposed Final Program
published on November 18, 2016, and approved by the Secretary
in the Record of Decision issued on January 17, 2017,
described in the notice of availability entitled ``Record of
Decision for the 2017-2022 Outer Continental Shelf Oil and
Gas Leasing Program Final Programmatic Environmental Impact
Statement; MMAA104000'' (82 Fed. Reg. 6643 (January 19,
2017)).
(b) Lease Sale 257 Reinstatement.--
(1) Acceptance of bids.--Not later 30 days after the date
of enactment of this Act, the Secretary shall, without
modification or delay--
(A) accept the highest valid bid for each tract or bidding
unit of Lease Sale 257 for which a valid bid was received on
November 17, 2021; and
(B) provide the appropriate lease form to the winning
bidder to execute and return.
(2) Lease issuance.--On receipt of an executed lease form
under paragraph (1)(B) and payment of the rental for the
first year, the balance of the bonus bid (unless deferred),
and any required bond or security from the high bidder, the
Secretary shall promptly issue to the high bidder a fully
executed lease, in accordance with--
(A) the regulations in effect on the date of Lease Sale
257; and
(B) the terms and conditions of the final notice of sale
entitled ``Gulf of Mexico Outer Continental Shelf Oil and Gas
Lease Sale 257'' (86 Fed. Reg. 54728 (October 4, 2021)).
(c) Requirement for 2022 Lease Sales.--Notwithstanding the
expiration of the 2017-2022 leasing program, not later than
December 31, 2022, the Secretary shall conduct the 2022 Lease
Sales in accordance with the Record of Decision approved by
the Secretary on January 17, 2017, described in the notice of
availability entitled ``Record of Decision for the 2017-2022
Outer Continental Shelf Oil and Gas Leasing Program Final
Programmatic Environmental Impact Statement; MMAA104000''
issued on January 17, 2017 (82 Fed. Reg. 6643 (January 19,
2017)).
(d) Requirement for Lease Sale 261.--Notwithstanding the
expiration of the 2017-2022 leasing program, not later than
September 30, 2023, the Secretary shall conduct Lease Sale
261 in accordance with the Record of Decision approved by the
Secretary on January 17, 2017, described in the notice of
availability entitled ``Record of Decision for the 2017-2022
Outer Continental Shelf Oil and Gas Leasing Program Final
Programmatic Environmental Impact Statement; MMAA104000''
issued on January 17, 2017 (82 Fed. Reg. 6643 (January 19,
2017)).

SEC. 50265. ENSURING ENERGY SECURITY.

(a) Definitions.--In this section:
(1) Federal land.--The term ``Federal land'' means public
lands (as defined in section 103 of the Federal Land Policy
and Management Act of 1976 (43 U.S.C. 1702)).
(2) Offshore lease sale.--The term ``offshore lease sale''
means an oil and gas lease sale--

[[Page S3985]]

(A) that is held by the Secretary in accordance with the
Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.);
and
(B) that, if any acceptable bids have been received for any
tract offered in the lease sale, results in the issuance of a
lease.
(3) Onshore lease sale.--The term ``onshore lease sale''
means a quarterly oil and gas lease sale--
(A) that is held by the Secretary in accordance with
section 17 of the Mineral Leasing Act (30 U.S.C. 226); and
(B) that, if any acceptable bids have been received for any
parcel offered in the lease sale, results in the issuance of
a lease.
(b) Limitation on Issuance of Certain Leases or Rights-of-
way.--During the 10-year period beginning on the date of
enactment of this Act--
(1) the Secretary may not issue a right-of-way for wind or
solar energy development on Federal land unless--
(A) an onshore lease sale has been held during the 120-day
period ending on the date of the issuance of the right-of-way
for wind or solar energy development; and
(B) the sum total of acres offered for lease in onshore
lease sales during the 1-year period ending on the date of
the issuance of the right-of-way for wind or solar energy
development is not less than the lesser of--
(i) 2,000,000 acres; and
(ii) 50 percent of the acreage for which expressions of
interest have been submitted for lease sales during that
period; and
(2) the Secretary may not issue a lease for offshore wind
development under section 8(p)(1)(C) of the Outer Continental
Shelf Lands Act (43 U.S.C. 1337(p)(1)(C)) unless--
(A) an offshore lease sale has been held during the 1-year
period ending on the date of the issuance of the lease for
offshore wind development; and
(B) the sum total of acres offered for lease in offshore
lease sales during the 1-year period ending on the date of
the issuance of the lease for offshore wind development is
not less than 60,000,000 acres.
(c) Savings.--Except as expressly provided in paragraphs
(1) and (2) of subsection (b), nothing in this section
supersedes, amends, or modifies existing law.

PART 7--UNITED STATES GEOLOGICAL SURVEY

SEC. 50271. UNITED STATES GEOLOGICAL SURVEY 3D ELEVATION
PROGRAM.

In addition to amounts otherwise available, there is
appropriated to the Secretary, acting through the Director of
the United States Geological Survey, for fiscal year 2022,
out of any money in the Treasury not otherwise appropriated,
$23,500,000, to remain available through September 30, 2031,
to produce, collect, disseminate, and use 3D elevation data.

PART 8--OTHER NATURAL RESOURCES MATTERS

SEC. 50281. DEPARTMENT OF THE INTERIOR OVERSIGHT.

In addition to amounts otherwise available, there is
appropriated to the Secretary for fiscal year 2022, out of
any money in the Treasury not otherwise appropriated,
$10,000,000, to remain available through September 30, 2031,
for oversight by the Department of the Interior Office of
Inspector General of the Department of the Interior
activities for which funding is appropriated in this
subtitle.

Subtitle C--Environmental Reviews

SEC. 50301. DEPARTMENT OF ENERGY.

In addition to amounts otherwise available, there is
appropriated to the Secretary of Energy for fiscal year 2022,
out of any money in the Treasury not otherwise appropriated,
$125,000,000, to remain available through September 30, 2031,
to provide for the hiring and training of personnel, the
development of programmatic environmental documents, the
procurement of technical or scientific services for
environmental reviews, the development of environmental data
or information systems, stakeholder and community engagement,
and the purchase of new equipment for environmental analysis
to facilitate timely and efficient environmental reviews and
authorizations.

SEC. 50302. FEDERAL ENERGY REGULATORY COMMISSION.

(a) In General.--In addition to amounts otherwise
available, there is appropriated to the Federal Energy
Regulatory Commission for fiscal year 2022, out of any money
in the Treasury not otherwise appropriated, $100,000,000, to
remain available through September 30, 2031, to provide for
the hiring and training of personnel, the development of
programmatic environmental documents, the procurement of
technical or scientific services for environmental reviews,
the development of environmental data or information systems,
stakeholder and community engagement, and the purchase of new
equipment for environmental analysis to facilitate timely and
efficient environmental reviews and authorizations.
(b) Fees and Charges.--Section 3401(a) of the Omnibus
Budget Reconciliation Act of 1986 (42 U.S.C. 7178(a)) shall
not apply to the costs incurred by the Federal Energy
Regulatory Commission in carrying out this section.

SEC. 50303. DEPARTMENT OF THE INTERIOR.

In addition to amounts otherwise available, there is
appropriated to the Secretary of the Interior for fiscal year
2022, out of any money in the Treasury not otherwise
appropriated, $150,000,000, to remain available through
September 30, 2026, to provide for the hiring and training of
personnel, the development of programmatic environmental
documents, the procurement of technical or scientific
services for environmental reviews, the development of
environmental data or information systems, stakeholder and
community engagement, and the purchase of new equipment for
environmental analysis to facilitate timely and efficient
environmental reviews and authorizations by the National Park
Service, the Bureau of Land Management, the Bureau of Ocean
Energy Management, the Bureau of Reclamation, the Bureau of
Safety and Environmental Enforcement, and the Office of
Surface Mining Reclamation and Enforcement.

TITLE VI--COMMITTEE ON ENVIRONMENT AND PUBLIC WORKS

Subtitle A--Air Pollution

SEC. 60101. CLEAN HEAVY-DUTY VEHICLES.

The Clean Air Act is amended by inserting after section 131
of such Act (42 U.S.C. 7431) the following:

``SEC. 132. CLEAN HEAVY-DUTY VEHICLES.

``(a) Appropriations.--
``(1) In general.--In addition to amounts otherwise
available, there is appropriated to the Administrator for
fiscal year 2022, out of any money in the Treasury not
otherwise appropriated, $600,000,000, to remain available
until September 30, 2031, to carry out this section.
``(2) Nonattainment areas.--In addition to amounts
otherwise available, there is appropriated to the
Administrator for fiscal year 2022, out of any money in the
Treasury not otherwise appropriated, $400,000,000, to remain
available until September 30, 2031, to make awards under this
section to eligible recipients and to eligible contractors
that propose to replace eligible vehicles to serve 1 or more
communities located in an air quality area designated
pursuant to section 107 as nonattainment for any air
pollutant.
``(3) Reservation.--Of the funds appropriated by paragraph
(1), the Administrator shall reserve 3 percent for
administrative costs necessary to carry out this section.
``(b) Program.--Beginning not later than 180 days after the
date of enactment of this section, the Administrator shall
implement a program to make awards of grants and rebates to
eligible recipients, and to make awards of contracts to
eligible contractors for providing rebates, for up to 100
percent of costs for--
``(1) the incremental costs of replacing an eligible
vehicle that is not a zero-emission vehicle with a zero-
emission vehicle, as determined by the Administrator based on
the market value of the vehicles;
``(2) purchasing, installing, operating, and maintaining
infrastructure needed to charge, fuel, or maintain zero-
emission vehicles;
``(3) workforce development and training to support the
maintenance, charging, fueling, and operation of zero-
emission vehicles; and
``(4) planning and technical activities to support the
adoption and deployment of zero-emission vehicles.
``(c) Applications.--To seek an award under this section,
an eligible recipient or eligible contractor shall submit to
the Administrator an application at such time, in such
manner, and containing such information as the Administrator
shall prescribe.
``(d) Definitions.--For purposes of this section:
``(1) Eligible contractor.--The term `eligible contractor'
means a contractor that has the capacity--
``(A) to sell, lease, license, or contract for service
zero-emission vehicles, or charging or other equipment needed
to charge, fuel, or maintain zero-emission vehicles, to
individuals or entities that own, lease, license, or contract
for service an eligible vehicle; or
``(B) to arrange financing for such a sale, lease, license,
or contract for service.
``(2) Eligible recipient.--The term `eligible recipient'
means--
``(A) a State;
``(B) a municipality;
``(C) an Indian tribe; or
``(D) a nonprofit school transportation association.
``(3) Eligible vehicle.--The term `eligible vehicle' means
a Class 6 or Class 7 heavy-duty vehicle as defined in section
1037.801 of title 40, Code of Federal Regulations (as in
effect on the date of enactment of this section).
``(4) Zero-emission vehicle.--The term `zero-emission
vehicle' means a vehicle that has a drivetrain that produces,
under any possible operational mode or condition, zero
exhaust emissions of--
``(A) any air pollutant that is listed pursuant to section
108(a) (or any precursor to such an air pollutant); and
``(B) any greenhouse gas (as defined in section
211(o)(1)(G) (as in effect on the date of enactment of this
section)).''.

SEC. 60102. GRANTS TO REDUCE AIR POLLUTION AT PORTS.

The Clean Air Act is amended by inserting after section 132
of such Act, as added by section 60101 of this Act, the
following:

``SEC. 133. GRANTS TO REDUCE AIR POLLUTION AT PORTS.

``(a) Appropriations.--
``(1) General assistance.--In addition to amounts otherwise
available, there is appropriated to the Administrator for
fiscal year 2022, out of any money in the Treasury not
otherwise appropriated, $2,250,000,000, to remain available
until September 30, 2027, to award rebates and grants to
eligible recipients on a competitive basis--
``(A) to purchase or install zero-emission port equipment
or technology for use at, or to directly serve, one or more
ports;

[[Page S3986]]

``(B) to conduct any relevant planning or permitting in
connection with the purchase or installation of such zero-
emission port equipment or technology; and
``(C) to develop qualified climate action plans.
``(2) Nonattainment areas.--In addition to amounts
otherwise available, there is appropriated to the
Administrator for fiscal year 2022, out of any money in the
Treasury not otherwise appropriated, $750,000,000, to remain
available until September 30, 2027, to award rebates and
grants to eligible recipients to carry out activities
described in paragraph (1) with respect to ports located in
air quality areas designated pursuant to section 107 as
nonattainment for an air pollutant.
``(b) Limitation.--Funds awarded under this section shall
not be used by any recipient or subrecipient to purchase or
install zero-emission port equipment or technology that will
not be located at, or directly serve, the one or more ports
involved.
``(c) Administration of Funds.--Of the funds made available
by this section, the Administrator shall reserve 2 percent
for administrative costs necessary to carry out this section.
``(d) Definitions.--In this section:
``(1) Eligible recipient.--The term `eligible recipient'
means--
``(A) a port authority;
``(B) a State, regional, local, or Tribal agency that has
jurisdiction over a port authority or a port;
``(C) an air pollution control agency; or
``(D) a private entity (including a nonprofit organization)
that--
``(i) applies for a grant under this section in partnership
with an entity described in any of subparagraphs (A) through
(C); and
``(ii) owns, operates, or uses the facilities, cargo-
handling equipment, transportation equipment, or related
technology of a port.
``(2) Greenhouse gas.--The term `greenhouse gas' has the
meaning given the term in section 211(o)(1)(G) (as in effect
on the date of enactment of this section).
``(3) Qualified climate action plan.--The term `qualified
climate action plan' means a detailed and strategic plan
that--
``(A) establishes goals, implementation strategies, and
accounting and inventory practices (including practices used
to measure progress toward stated goals) to reduce emissions
at one or more ports of--
``(i) greenhouse gases;
``(ii) an air pollutant that is listed pursuant to section
108(a) (or any precursor to such an air pollutant); and
``(iii) hazardous air pollutants;
``(B) includes a strategy to collaborate with, communicate
with, and address potential effects on stakeholders that may
be affected by implementation of the plan, including low-
income and disadvantaged near-port communities; and
``(C) describes how an eligible recipient has implemented
or will implement measures to increase the resilience of the
one or more ports involved, including measures related to
withstanding and recovering from extreme weather events.
``(4) Zero-emission port equipment or technology.--The term
`zero-emission port equipment or technology' means human-
operated equipment or human-maintained technology that--
``(A) produces zero emissions of any air pollutant that is
listed pursuant to section 108(a) (or any precursor to such
an air pollutant) and any greenhouse gas other than water
vapor; or
``(B) captures 100 percent of the emissions described in
subparagraph (A) that are produced by an ocean-going vessel
at berth.''.

SEC. 60103. GREENHOUSE GAS REDUCTION FUND.

The Clean Air Act is amended by inserting after section 133
of such Act, as added by section 60102 of this Act, the
following:

``SEC. 134. GREENHOUSE GAS REDUCTION FUND.

``(a) Appropriations.--
``(1) Zero-emission technologies.--In addition to amounts
otherwise available, there is appropriated to the
Administrator for fiscal year 2022, out of any money in the
Treasury not otherwise appropriated, $7,000,000,000, to
remain available until September 30, 2024, to make grants, on
a competitive basis and beginning not later than 180 calendar
days after the date of enactment of this section, to States,
municipalities, Tribal governments, and eligible recipients
for the purposes of providing grants, loans, or other forms
of financial assistance, as well as technical assistance, to
enable low-income and disadvantaged communities to deploy or
benefit from zero-emission technologies, including
distributed technologies on residential rooftops, and to
carry out other greenhouse gas emission reduction activities,
as determined appropriate by the Administrator in accordance
with this section.
``(2) General assistance.--In addition to amounts otherwise
available, there is appropriated to the Administrator for
fiscal year 2022, out of any money in the Treasury not
otherwise appropriated, $11,970,000,000, to remain available
until September 30, 2024, to make grants, on a competitive
basis and beginning not later than 180 calendar days after
the date of enactment of this section, to eligible recipients
for the purposes of providing financial assistance and
technical assistance in accordance with subsection (b).
``(3) Low-income and disadvantaged communities.--In
addition to amounts otherwise available, there is
appropriated to the Administrator for fiscal year 2022, out
of any money in the Treasury not otherwise appropriated,
$8,000,000,000, to remain available until September 30, 2024,
to make grants, on a competitive basis and beginning not
later than 180 calendar days after the date of enactment of
this section, to eligible recipients for the purposes of
providing financial assistance and technical assistance in
low-income and disadvantaged communities in accordance with
subsection (b).
``(4) Administrative costs.--In addition to amounts
otherwise available, there is appropriated to the
Administrator for fiscal year 2022, out of any money in the
Treasury not otherwise appropriated, $30,000,000, to remain
available until September 30, 2031, for the administrative
costs necessary to carry out activities under this section.
``(b) Use of Funds.--An eligible recipient that receives a
grant pursuant to subsection (a) shall use the grant in
accordance with the following:
``(1) Direct investment.--The eligible recipient shall--
``(A) provide financial assistance to qualified projects at
the national, regional, State, and local levels;
``(B) prioritize investment in qualified projects that
would otherwise lack access to financing; and
``(C) retain, manage, recycle, and monetize all repayments
and other revenue received from fees, interest, repaid loans,
and all other types of financial assistance provided using
grant funds under this section to ensure continued
operability.
``(2) Indirect investment.--The eligible recipient shall
provide funding and technical assistance to establish new or
support existing public, quasi-public, not-for-profit, or
nonprofit entities that provide financial assistance to
qualified projects at the State, local, territorial, or
Tribal level or in the District of Columbia, including
community- and low-income-focused lenders and capital
providers.
``(c) Definitions.--In this section:
``(1) Eligible recipient.--The term `eligible recipient'
means a nonprofit organization that--
``(A) is designed to provide capital, including by
leveraging private capital, and other forms of financial
assistance for the rapid deployment of low- and zero-emission
products, technologies, and services;
``(B) does not take deposits other than deposits from
repayments and other revenue received from financial
assistance provided using grant funds under this section;
``(C) is funded by public or charitable contributions; and
``(D) invests in or finances projects alone or in
conjunction with other investors.
``(2) Greenhouse gas.--The term `greenhouse gas' has the
meaning given the term in section 211(o)(1)(G) (as in effect
on the date of enactment of this section).
``(3) Qualified project.--The term `qualified project'
includes any project, activity, or technology that--
``(A) reduces or avoids greenhouse gas emissions and other
forms of air pollution in partnership with, and by leveraging
investment from, the private sector; or
``(B) assists communities in the efforts of those
communities to reduce or avoid greenhouse gas emissions and
other forms of air pollution.
``(4) Publicly available equipment.--The term `publicly
available equipment' means equipment that--
``(A) is located at a multi-unit housing structure;
``(B) is located at a workplace and is available to
employees of such workplace or employees of a nearby
workplace; or
``(C) is at a location that is publicly accessible for a
minimum of 12 hours per day at least 5 days per week and
networked or otherwise capable of being monitored remotely.
``(5) Zero-emission technology.--The term `zero-emission
technology' means any technology that produces zero emissions
of--
``(A) any air pollutant that is listed pursuant to section
108(a) (or any precursor to such an air pollutant); and
``(B) any greenhouse gas.''.

SEC. 60104. DIESEL EMISSIONS REDUCTIONS.

(a) Goods Movement.--In addition to amounts otherwise
available, there is appropriated to the Administrator of the
Environmental Protection Agency for fiscal year 2022, out of
any money in the Treasury not otherwise appropriated,
$60,000,000, to remain available until September 30, 2031,
for grants, rebates, and loans under section 792 of the
Energy Policy Act of 2005 (42 U.S.C. 16132) to identify and
reduce diesel emissions resulting from goods movement
facilities, and vehicles servicing goods movement facilities,
in low-income and disadvantaged communities to address the
health impacts of such emissions on such communities.
(b) Administrative Costs.--The Administrator of the
Environmental Protection Agency shall reserve 2 percent of
the amounts made available under this section for the
administrative costs necessary to carry out activities
pursuant to this section.

SEC. 60105. FUNDING TO ADDRESS AIR POLLUTION.

(a) Fenceline Air Monitoring and Screening Air
Monitoring.--In addition to amounts otherwise available,
there is appropriated to the Administrator of the
Environmental Protection Agency for fiscal year 2022, out of
any money in the Treasury not otherwise appropriated,
$117,500,000, to remain available until September 30, 2031,
for grants and other activities authorized under subsections
(a) through (c) of section 103 and

[[Page S3987]]

section 105 of the Clean Air Act (42 U.S.C. 7403(a)-(c),
7405) to deploy, integrate, support, and maintain fenceline
air monitoring, screening air monitoring, national air toxics
trend stations, and other air toxics and community
monitoring.
(b) Multipollutant Monitoring Stations.--In addition to
amounts otherwise available, there is appropriated to the
Administrator of the Environmental Protection Agency for
fiscal year 2022, out of any money in the Treasury not
otherwise appropriated, $50,000,000, to remain available
until September 30, 2031, for grants and other activities
authorized under subsections (a) through (c) of section 103
and section 105 of the Clean Air Act (42 U.S.C. 7403(a)-(c),
7405)--
(1) to expand the national ambient air quality monitoring
network with new multipollutant monitoring stations; and
(2) to replace, repair, operate, and maintain existing
monitors.
(c) Air Quality Sensors in Low-income and Disadvantaged
Communities.--In addition to amounts otherwise available,
there is appropriated to the Administrator of the
Environmental Protection Agency for fiscal year 2022, out of
any money in the Treasury not otherwise appropriated,
$3,000,000, to remain available until September 30, 2031, for
grants and other activities authorized under subsections (a)
through (c) of section 103 and section 105 of the Clean Air
Act (42 U.S.C. 7403(a)-(c), 7405) to deploy, integrate, and
operate air quality sensors in low-income and disadvantaged
communities.
(d) Emissions From Wood Heaters.--In addition to amounts
otherwise available, there is appropriated to the
Administrator of the Environmental Protection Agency for
fiscal year 2022, out of any money in the Treasury not
otherwise appropriated, $15,000,000, to remain available
until September 30, 2031, for grants and other activities
authorized under subsections (a) through (c) of section 103
and section 105 of the Clean Air Act (42 U.S.C. 7403(a)-(c),
7405) for testing and other agency activities to address
emissions from wood heaters.
(e) Methane Monitoring.--In addition to amounts otherwise
available, there is appropriated to the Administrator of the
Environmental Protection Agency for fiscal year 2022, out of
any money in the Treasury not otherwise appropriated,
$20,000,000, to remain available until September 30, 2031,
for grants and other activities authorized under subsections
(a) through (c) of section 103 and section 105 of the Clean
Air Act (42 U.S.C. 7403(a)-(c), 7405) for monitoring
emissions of methane.
(f) Clean Air Act Grants.--In addition to amounts otherwise
available, there is appropriated to the Administrator of the
Environmental Protection Agency for fiscal year 2022, out of
any money in the Treasury not otherwise appropriated,
$25,000,000, to remain available until September 30, 2031,
for grants and other activities authorized under subsections
(a) through (c) of section 103 and section 105 of the Clean
Air Act (42 U.S.C. 7403(a)-(c), 7405).
(g) Other Activities.--In addition to amounts otherwise
available, there is appropriated to the Administrator of the
Environmental Protection Agency for fiscal year 2022, out of
any money in the Treasury not otherwise appropriated,
$45,000,000, to remain available until September 30, 2031, to
carry out, with respect to greenhouse gases, sections 111,
115, 165, 177, 202, 211, 213, 231, and 612 of the Clean Air
Act (42 U.S.C. 7411, 7415, 7475, 7507, 7521, 7545, 7547,
7571, and 7671k).
(h) Greenhouse Gas and Zero-emission Standards for Mobile
Sources.--In addition to amounts otherwise available, there
is appropriated to the Administrator of the Environmental
Protection Agency for fiscal year 2022, out of any money in
the Treasury not otherwise appropriated, $5,000,000, to
remain available until September 30, 2031, to provide grants
to States to adopt and implement greenhouse gas and zero-
emission standards for mobile sources pursuant to section 177
of the Clean Air Act (42 U.S.C. 7507).
(i) Definition of Greenhouse Gas.--In this section, the
term ``greenhouse gas'' has the meaning given the term in
section 211(o)(1)(G) of the Clean Air Act (42 U.S.C.
7545(o)(1)(G)) (as in effect on the date of enactment of this
Act).

SEC. 60106. FUNDING TO ADDRESS AIR POLLUTION AT SCHOOLS.

(a) In General.--In addition to amounts otherwise
available, there is appropriated to the Administrator of the
Environmental Protection Agency for fiscal year 2022, out of
any money in the Treasury not otherwise appropriated,
$37,500,000, to remain available until September 30, 2031,
for grants and other activities to monitor and reduce air
pollution and greenhouse gas (as defined in section
211(o)(1)(G) of the Clean Air Act (42 U.S.C. 7545(o)(1)(G))
(as in effect on the date of enactment of this Act))
emissions at schools in low-income and disadvantaged
communities under subsections (a) through (c) of section 103
of the Clean Air Act (42 U.S.C. 7403(a)-(c)) and section 105
of that Act (42 U.S.C. 7405).
(b) Technical Assistance.--In addition to amounts otherwise
available, there is appropriated to the Administrator of the
Environmental Protection Agency for fiscal year 2022, out of
any money in the Treasury not otherwise appropriated,
$12,500,000, to remain available until September 30, 2031,
for providing technical assistance to schools in low-income
and disadvantaged communities under subsections (a) through
(c) of section 103 of the Clean Air Act (42 U.S.C. 7403(a)-
(c)) and section 105 of that Act (42 U.S.C. 7405)--
(1) to address environmental issues;
(2) to develop school environmental quality plans that
include standards for school building, design, construction,
and renovation; and
(3) to identify and mitigate ongoing air pollution hazards.

SEC. 60107. LOW EMISSIONS ELECTRICITY PROGRAM.

The Clean Air Act is amended by inserting after section 134
of such Act, as added by section 60103 of this Act, the
following:

``SEC. 135. LOW EMISSIONS ELECTRICITY PROGRAM.

``(a) Appropriation.--In addition to amounts otherwise
available, there is appropriated to the Administrator for
fiscal year 2022, out of any money in the Treasury not
otherwise appropriated, to remain available until September
30, 2031--
``(1) $17,000,000 for consumer-related education and
partnerships with respect to reductions in greenhouse gas
emissions that result from domestic electricity generation
and use;
``(2) $17,000,000 for education, technical assistance, and
partnerships within low-income and disadvantaged communities
with respect to reductions in greenhouse gas emissions that
result from domestic electricity generation and use;
``(3) $17,000,000 for industry-related outreach and
technical assistance, including through partnerships, with
respect to reductions in greenhouse gas emissions that result
from domestic electricity generation and use;
``(4) $17,000,000 for outreach and technical assistance to
State, Tribal, and local governments, including through
partnerships, with respect to reductions in greenhouse gas
emissions that result from domestic electricity generation
and use;
``(5) $1,000,000 to assess, not later than 1 year after the
date of enactment of this section, the reductions in
greenhouse gas emissions that result from changes in domestic
electricity generation and use that are anticipated to occur
on an annual basis through fiscal year 2031; and
``(6) $18,000,000 to carry out this section to ensure that
reductions in greenhouse gas emissions from domestic
electricity generation and use are achieved through use of
the authorities of this Act, including through the
establishment of requirements under this Act, incorporating
the assessment under paragraph (5) as a baseline.
``(b) Administration of Funds.--Of the amounts made
available under subsection (a), the Administrator shall
reserve 2 percent for the administrative costs necessary to
carry out activities pursuant to that subsection.
``(c) Definition of Greenhouse Gas.--In this section, the
term `greenhouse gas' has the meaning given the term in
section 211(o)(1)(G) (as in effect on the date of enactment
of this section).''.

SEC. 60108. FUNDING FOR SECTION 211(O) OF THE CLEAN AIR ACT.

(a) Test and Protocol Development.--In addition to amounts
otherwise available, there is appropriated to the
Administrator of the Environmental Protection Agency for
fiscal year 2022, out of any money in the Treasury not
otherwise appropriated, $5,000,000, to remain available until
September 30, 2031, to carry out section 211(o) of the Clean
Air Act (42 U.S.C. 7545(o)) with respect to--
(1) the development and establishment of tests and
protocols regarding the environmental and public health
effects of a fuel or fuel additive;
(2) internal and extramural data collection and analyses to
regularly update applicable regulations, guidance, and
procedures for determining lifecycle greenhouse gas emissions
of a fuel; and
(3) the review, analysis and evaluation of the impacts of
all transportation fuels, including fuel lifecycle
implications, on the general public and on low-income and
disadvantaged communities.
(b) Investments in Advanced Biofuels.--In addition to
amounts otherwise available, there is appropriated to the
Administrator of the Environmental Protection Agency for
fiscal year 2022, out of any money in the Treasury not
otherwise appropriated, $10,000,000, to remain available
until September 30, 2031, for new grants to industry and
other related activities under section 211(o) of the Clean
Air Act (42 U.S.C. 7545(o)) to support investments in
advanced biofuels.
(c) Definition of Greenhouse Gas.--In this section, the
term ``greenhouse gas'' has the meaning given the term in
section 211(o)(1)(G) of the Clean Air Act (42 U.S.C.
7545(o)(1)(G)) (as in effect on the date of enactment of this
Act).

SEC. 60109. FUNDING FOR IMPLEMENTATION OF THE AMERICAN
INNOVATION AND MANUFACTURING ACT.

(a) Appropriations.--
(1) In general.--In addition to amounts otherwise
available, there is appropriated to the Administrator of the
Environmental Protection Agency for fiscal year 2022, out of
any money in the Treasury not otherwise appropriated,
$20,000,000, to remain available until September 30, 2026, to
carry out subsections (a) through (i) and subsection (k) of
section 103 of division S of Public Law 116-260 (42 U.S.C.
7675).
(2) Implementation and compliance tools.--In addition to
amounts otherwise available, there is appropriated to the
Administrator of the Environmental Protection Agency for
fiscal year 2022, out of any money

[[Page S3988]]

in the Treasury not otherwise appropriated, $3,500,000, to
remain available until September 30, 2026, to deploy new
implementation and compliance tools to carry out subsections
(a) through (i) and subsection (k) of section 103 of division
S of Public Law 116-260 (42 U.S.C. 7675).
(3) Competitive grants.--In addition to amounts otherwise
available, there is appropriated to the Administrator of the
Environmental Protection Agency for fiscal year 2022, out of
any money in the Treasury not otherwise appropriated,
$15,000,000, to remain available until September 30, 2026,
for competitive grants for reclaim and innovative destruction
technologies under subsections (a) through (i) and subsection
(k) of section 103 of division S of Public Law 116-260 (42
U.S.C. 7675).
(b) Administration of Funds.--Of the funds made available
pursuant to subsection (a)(3), the Administrator of the
Environmental Protection Agency shall reserve 5 percent for
administrative costs necessary to carry out activities
pursuant to such subsection.

SEC. 60110. FUNDING FOR ENFORCEMENT TECHNOLOGY AND PUBLIC
INFORMATION.

(a) Compliance Monitoring.--In addition to amounts
otherwise available, there is appropriated to the
Administrator of the Environmental Protection Agency for
fiscal year 2022, out of any money in the Treasury not
otherwise appropriated, $18,000,000, to remain available
until September 30, 2031, to update the Integrated Compliance
Information System of the Environmental Protection Agency and
any associated systems, necessary information technology
infrastructure, or public access software tools to ensure
access to compliance data and related information.
(b) Communications With ICIS.--In addition to amounts
otherwise available, there is appropriated to the
Administrator of the Environmental Protection Agency for
fiscal year 2022, out of any money in the Treasury not
otherwise appropriated, $3,000,000, to remain available until
September 30, 2031, for grants to States, Indian tribes, and
air pollution control agencies (as such terms are defined in
section 302 of the Clean Air Act (42 U.S.C. 7602)) to update
their systems to ensure communication with the Integrated
Compliance Information System of the Environmental Protection
Agency and any associated systems.
(c) Inspection Software.--In addition to amounts otherwise
available, there is appropriated to the Administrator of the
Environmental Protection Agency for fiscal year 2022, out of
any money in the Treasury not otherwise appropriated,
$4,000,000, to remain available until September 30, 2031--
(1) to acquire or update inspection software for use by the
Environmental Protection Agency, States, Indian tribes, and
air pollution control agencies (as such terms are defined in
section 302 of the Clean Air Act (42 U.S.C. 7602)); or
(2) to acquire necessary devices on which to run such
inspection software.

SEC. 60111. GREENHOUSE GAS CORPORATE REPORTING.

In addition to amounts otherwise available, there is
appropriated to the Administrator of the Environmental
Protection Agency for fiscal year 2022, out of any money in
the Treasury not otherwise appropriated, $5,000,000, to
remain available until September 30, 2031, for the
Environmental Protection Agency to support--
(1) enhanced standardization and transparency of corporate
climate action commitments and plans to reduce greenhouse gas
(as defined in section 211(o)(1)(G) of the Clean Air Act (42
U.S.C. 7545(o)(1)(G)) (as in effect on the date of enactment
of this Act)) emissions;
(2) enhanced transparency regarding progress toward meeting
such commitments and implementing such plans; and
(3) progress toward meeting such commitments and
implementing such plans.

SEC. 60112. ENVIRONMENTAL PRODUCT DECLARATION ASSISTANCE.

(a) In General.--In addition to amounts otherwise
available, there is appropriated to the Administrator of the
Environmental Protection Agency for fiscal year 2022, out of
any money in the Treasury not otherwise appropriated,
$250,000,000, to remain available until September 30, 2031,
to develop and carry out a program to support the
development, and enhanced standardization and transparency,
of environmental product declarations for construction
materials and products, including by--
(1) providing grants to businesses that manufacture
construction materials and products for developing and
verifying environmental product declarations, and to States,
Indian Tribes, and nonprofit organizations that will support
such businesses;
(2) providing technical assistance to businesses that
manufacture construction materials and products in developing
and verifying environmental product declarations, and to
States, Indian Tribes, and nonprofit organizations that will
support such businesses; and
(3) carrying out other activities that assist in measuring,
reporting, and steadily reducing the quantity of embodied
carbon of construction materials and products.
(b) Administrative Costs.--Of the amounts made available
under this section, the Administrator of the Environmental
Protection Agency shall reserve 5 percent for administrative
costs necessary to carry out this section.
(c) Definitions.--In this section:
(1) Embodied carbon.--The term ``embodied carbon'' means
the quantity of greenhouse gas (as defined in section
211(o)(1)(G) of the Clean Air Act (42 U.S.C. 7545(o)(1)(G))
(as in effect on the date of enactment of this Act))
emissions associated with all relevant stages of production
of a material or product, measured in kilograms of carbon
dioxide-equivalent per unit of such material or product.
(2) Environmental product declaration.--The term
``environmental product declaration'' means a document that
reports the environmental impact of a material or product
that--
(A) includes measurement of the embodied carbon of the
material or product;
(B) conforms with international standards, such as a Type
III environmental product declaration, as defined by the
International Organization for Standardization standard
14025; and
(C) is developed in accordance with any standardized
reporting criteria specified by the Administrator of the
Environmental Protection Agency.
(3) State.--The term ``State'' has the meaning given to
that term in section 302(d) of the Clean Air Act (42 U.S.C.
7602(d)).

SEC. 60113. METHANE EMISSIONS REDUCTION PROGRAM.

The Clean Air Act is amended by inserting after section 135
of such Act, as added by section 60107 of this Act, the
following:

``SEC. 136. METHANE EMISSIONS AND WASTE REDUCTION INCENTIVE
PROGRAM FOR PETROLEUM AND NATURAL GAS SYSTEMS.

``(a) Incentives for Methane Mitigation and Monitoring.--In
addition to amounts otherwise available, there is
appropriated to the Administrator for fiscal year 2022, out
of any money in the Treasury not otherwise appropriated,
$850,000,000, to remain available until September 30, 2028--
``(1) for grants, rebates, contracts, loans, and other
activities of the Environmental Protection Agency for the
purposes of providing financial and technical assistance to
owners and operators of applicable facilities to prepare and
submit greenhouse gas reports under subpart W of part 98 of
title 40, Code of Federal Regulations;
``(2) for grants, rebates, contracts, loans, and other
activities of the Environmental Protection Agency authorized
under subsections (a) through (c) of section 103 for methane
emissions monitoring;
``(3) for grants, rebates, contracts, loans, and other
activities of the Environmental Protection Agency for the
purposes of providing financial and technical assistance to
reduce methane and other greenhouse gas emissions from
petroleum and natural gas systems, mitigate legacy air
pollution from petroleum and natural gas systems, and provide
support for communities, including funding for--
``(A) improving climate resiliency of communities and
petroleum and natural gas systems;
``(B) improving and deploying industrial equipment and
processes that reduce methane and other greenhouse gas
emissions and waste;
``(C) supporting innovation in reducing methane and other
greenhouse gas emissions and waste from petroleum and natural
gas systems;
``(D) permanently shutting in and plugging wells on non-
Federal land;
``(E) mitigating health effects of methane and other
greenhouse gas emissions, and legacy air pollution from
petroleum and natural gas systems in low-income and
disadvantaged communities; and
``(F) supporting environmental restoration; and
``(4) to cover all direct and indirect costs required to
administer this section, including the costs of implementing
the waste emissions charge under subsection (c), preparing
inventories, gathering empirical data, and tracking
emissions.
``(b) Incentives for Methane Mitigation From Conventional
Wells.--In addition to amounts otherwise available, there is
appropriated to the Administrator for fiscal year 2022, out
of any money in the Treasury not otherwise appropriated,
$700,000,000, to remain available until September 30, 2028,
for activities described in paragraphs (1) through (4) of
subsection (a) at marginal conventional wells.
``(c) Waste Emissions Charge.--The Administrator shall
impose and collect a charge on methane emissions that exceed
an applicable waste emissions threshold under subsection (f)
from an owner or operator of an applicable facility that
reports more than 25,000 metric tons of carbon dioxide
equivalent of greenhouse gases emitted per year pursuant to
subpart W of part 98 of title 40, Code of Federal
Regulations, regardless of the reporting threshold under that
subpart.
``(d) Applicable Facility.--For purposes of this section,
the term `applicable facility' means a facility within the
following industry segments, as defined in subpart W of part
98 of title 40, Code of Federal Regulations:
``(1) Offshore petroleum and natural gas production.
``(2) Onshore petroleum and natural gas production.
``(3) Onshore natural gas processing.
``(4) Onshore natural gas transmission compression.
``(5) Underground natural gas storage.
``(6) Liquefied natural gas storage.
``(7) Liquefied natural gas import and export equipment.
``(8) Onshore petroleum and natural gas gathering and
boosting.

[[Page S3989]]

``(9) Onshore natural gas transmission pipeline.
``(e) Charge Amount.--The amount of a charge under
subsection (c) for an applicable facility shall be equal to
the product obtained by multiplying--
``(1) the number of metric tons of methane emissions
reported pursuant to subpart W of part 98 of title 40, Code
of Federal Regulations, for the applicable facility that
exceed the applicable annual waste emissions threshold listed
in subsection (f) during the previous reporting period; and
``(2)(A) $900 for emissions reported for calendar year
2024;
``(B) $1,200 for emissions reported for calendar year 2025;
or
``(C) $1,500 for emissions reported for calendar year 2026
and each year thereafter.
``(f) Waste Emissions Threshold.--
``(1) Petroleum and natural gas production.--With respect
to imposing and collecting the charge under subsection (c)
for an applicable facility in an industry segment listed in
paragraph (1) or (2) of subsection (d), the Administrator
shall impose and collect the charge on the reported metric
tons of methane emissions from such facility that exceed--
``(A) 0.20 percent of the natural gas sent to sale from
such facility; or
``(B) 10 metric tons of methane per million barrels of oil
sent to sale from such facility, if such facility sent no
natural gas to sale.
``(2) Nonproduction petroleum and natural gas systems.--
With respect to imposing and collecting the charge under
subsection (c) for an applicable facility in an industry
segment listed in paragraph (3), (6), (7), or (8) of
subsection (d), the Administrator shall impose and collect
the charge on the reported metric tons of methane emissions
that exceed 0.05 percent of the natural gas sent to sale from
such facility.
``(3) Natural gas transmission.--With respect to imposing
and collecting the charge under subsection (c) for an
applicable facility in an industry segment listed in
paragraph (4), (5), or (9) of subsection (d), the
Administrator shall impose and collect the charge on the
reported metric tons of methane emissions that exceed 0.11
percent of the natural gas sent to sale from such facility.
``(4) Common ownership or control.--In calculating the
total emissions charge obligation for facilities under common
ownership or control, the Administrator shall allow for the
netting of emissions by reducing the total obligation to
account for facility emissions levels that are below the
applicable thresholds within and across all applicable
segments identified in subsection (d).
``(5) Exemption.--Charges shall not be imposed pursuant to
paragraph (1) on emissions that exceed the waste emissions
threshold specified in such paragraph if such emissions are
caused by unreasonable delay, as determined by the
Administrator, in environmental permitting of gathering or
transmission infrastructure necessary for offtake of
increased volume as a result of methane emissions mitigation
implementation.
``(6) Exemption for regulatory compliance.--
``(A) In general.--Charges shall not be imposed pursuant to
subsection (c) on an applicable facility that is subject to
and in compliance with methane emissions requirements
pursuant to subsections (b) and (d) of section 111 upon a
determination by the Administrator that--
``(i) methane emissions standards and plans pursuant to
subsections (b) and (d) of section 111 have been approved and
are in effect in all States with respect to the applicable
facilities; and
``(ii) compliance with the requirements described in clause
(i) will result in equivalent or greater emissions reductions
as would be achieved by the proposed rule of the
Administrator entitled `Standards of Performance for New,
Reconstructed, and Modified Sources and Emissions Guidelines
for Existing Sources: Oil and Natural Gas Sector Climate
Review' (86 Fed. Reg. 63110 (November 15, 2021)), if such
rule had been finalized and implemented.
``(B) Resumption of charge.--If the conditions in clause
(i) or (ii) of subparagraph (A) cease to apply after the
Administrator has made the determination in that
subparagraph, the applicable facility will again be subject
to the charge under subsection (c) beginning in the first
calendar year in which the conditions in either clause (i) or
(ii) of that subparagraph are no longer met.
``(7) Plugged wells.--Charges shall not be imposed with
respect to the emissions rate from any well that has been
permanently shut-in and plugged in the previous year in
accordance with all applicable closure requirements, as
determined by the Administrator.
``(g) Period.--The charge under subsection (c) shall be
imposed and collected beginning with respect to emissions
reported for calendar year 2024 and for each year thereafter.
``(h) Implementation.--In addition to other authorities in
this Act addressing air pollution from the oil and natural
gas sectors, the Administrator may issue guidance or
regulations as necessary to carry out this section.
``(i) Reporting.--Not later than 2 years after the date of
enactment of this section, and as necessary thereafter, the
Administrator shall revise the requirements of subpart W of
part 98 of title 40, Code of Federal Regulations, to ensure
the reporting under such subpart, and calculation of charges
under subsections (e) and (f) of this section, are based on
empirical data, including data collected pursuant to
subsection (a)(4), accurately reflect the total methane
emissions and waste emissions from the applicable facilities,
and allow owners and operators of applicable facilities to
submit empirical emissions data, in a manner to be prescribed
by the Administrator, to demonstrate the extent to which a
charge under subsection (c) is owed.
``(j) Liability for Charge Payment.--Except as established
under this section, a facility owner or operator's liability
for payment of the charge under subsection (c) is not
affected in any way by emission standards, permit fees,
penalties, or other requirements under this Act or any other
legal authorities.
``(k) Definition of Greenhouse Gas.--In this section, the
term `greenhouse gas' has the meaning given the term in
section 211(o)(1)(G) (as in effect on the date of enactment
of this section).''.

SEC. 60114. CLIMATE POLLUTION REDUCTION GRANTS.

The Clean Air Act is amended by inserting after section 136
of such Act, as added by section 60113 of this Act, the
following:

``SEC. 137. GREENHOUSE GAS AIR POLLUTION PLANS AND
IMPLEMENTATION GRANTS.

``(a) Appropriations.--
``(1) Greenhouse gas air pollution planning grants.--In
addition to amounts otherwise available, there is
appropriated to the Administrator for fiscal year 2022, out
of any amounts in the Treasury not otherwise appropriated,
$250,000,000, to remain available until September 30, 2031,
to carry out subsection (b).
``(2) Greenhouse gas air pollution implementation grants.--
In addition to amounts otherwise available, there is
appropriated to the Administrator for fiscal year 2022, out
of any amounts in the Treasury not otherwise appropriated,
$4,750,000,000, to remain available until September 30, 2026,
to carry out subsection (c).
``(3) Administrative costs.--Of the funds made available
under paragraph (2), the Administrator shall reserve 3
percent for administrative costs necessary to carry out this
section, including providing technical assistance to eligible
entities, developing a plan that could be used as a model by
grantees in developing a plan under subsection (b), and
modeling the effects of plans described in this section.
``(b) Greenhouse Gas Air Pollution Planning Grants.--The
Administrator shall make a grant to at least one eligible
entity in each State for the costs of developing a plan for
the reduction of greenhouse gas air pollution to be submitted
with an application for a grant under subsection (c). Each
such plan shall include programs, policies, measures, and
projects that will achieve or facilitate the reduction of
greenhouse gas air pollution. Not later than 270 days after
the date of enactment of this section, the Administrator
shall publish a funding opportunity announcement for grants
under this subsection.
``(c) Greenhouse Gas Air Pollution Reduction Implementation
Grants.--
``(1) In general.--The Administrator shall competitively
award grants to eligible entities to implement plans
developed under subsection (b).
``(2) Application.--To apply for a grant under this
subsection, an eligible entity shall submit to the
Administrator an application at such time, in such manner,
and containing such information as the Administrator shall
require, which such application shall include information
regarding--
``(A) the degree to which greenhouse gas air pollution is
projected to be reduced, including with respect to low-income
and disadvantaged communities; and
``(B) the quantifiability, specificity, additionality,
permanence, and verifiability of such projected greenhouse
gas air pollution reduction.
``(3) Terms and conditions.--The Administrator shall make
funds available to a grantee under this subsection in such
amounts, upon such a schedule, and subject to such conditions
based on its performance in implementing its plan submitted
under this section and in achieving projected greenhouse gas
air pollution reduction, as determined by the Administrator.
``(d) Definitions.--In this section:
``(1) Eligible entity.--The term `eligible entity' means--
``(A) a State;
``(B) an air pollution control agency;
``(C) a municipality;
``(D) an Indian tribe; and
``(E) a group of one or more entities listed in
subparagraphs (A) through (D).
``(2) Greenhouse gas.--The term `greenhouse gas' has the
meaning given the term in section 211(o)(1)(G) (as in effect
on the date of enactment of this section).''.

SEC. 60115. ENVIRONMENTAL PROTECTION AGENCY EFFICIENT,
ACCURATE, AND TIMELY REVIEWS.

In addition to amounts otherwise available, there is
appropriated to the Environmental Protection Agency for
fiscal year 2022, out of any money in the Treasury not
otherwise appropriated, $40,000,000, to remain available
until September 30, 2026, to provide for the development of
efficient, accurate, and timely reviews for permitting and
approval processes through the hiring and training of
personnel, the development of programmatic documents, the
procurement of technical or scientific services for reviews,
the development of environmental data or information systems,
stakeholder and community engagement, the purchase of new

[[Page S3990]]

equipment for environmental analysis, and the development of
geographic information systems and other analysis tools,
techniques, and guidance to improve agency transparency,
accountability, and public engagement.

SEC. 60116. LOW-EMBODIED CARBON LABELING FOR CONSTRUCTION
MATERIALS.

(a) In General.--In addition to amounts otherwise
available, there is appropriated to the Administrator of the
Environmental Protection Agency for fiscal year 2022, out of
any money in the Treasury not otherwise appropriated,
$100,000,000, to remain available until September 30, 2026,
for necessary administrative costs of the Administrator of
the Environmental Protection Agency to carry out this section
and to develop and carry out a program, in consultation with
the Administrator of the Federal Highway Administration for
construction materials used in transportation projects and
the Administrator of General Services for construction
materials used for Federal buildings, to identify and label
low-embodied carbon construction materials and products based
on--
(1) environmental product declarations;
(2) determinations of the California Department of General
Services Procurement Division, in consultation with the
California Air Resources Board; or
(3) determinations by other State agencies, as verified by
the Administrator of the Environmental Protection Agency.
(b) Definitions.--In this section:
(1) Embodied carbon.--The term ``embodied carbon'' means
the quantity of greenhouse gas (as defined in section
211(o)(1)(G) of the Clean Air Act (42 U.S.C. 7545(o)(1)(G))
(as in effect on the date of enactment of this Act))
emissions associated with all relevant stages of production
of a material or product, measured in kilograms of carbon
dioxide-equivalent per unit of such material or product.
(2) Environmental product declaration.--The term
``environmental product declaration'' means a document that
reports the environmental impact of a material or product
that--
(A) includes measurement of the embodied carbon of the
material or product;
(B) conforms with international standards, such as a Type
III environmental product declaration as defined by the
International Organization for Standardization standard
14025; and
(C) is developed in accordance with any standardized
reporting criteria specified by the Administrator of the
Environmental Protection Agency.
(3) Low-embodied carbon construction materials and
products.--The term ``low-embodied carbon construction
materials and products'' means construction materials and
products identified by the Administrator of the Environmental
Protection Agency as having substantially lower levels of
embodied carbon as compared to estimated industry averages of
similar materials or products.

Subtitle B--Hazardous Materials

SEC. 60201. ENVIRONMENTAL AND CLIMATE JUSTICE BLOCK GRANTS.

The Clean Air Act is amended by inserting after section
137, as added by subtitle A of this title, the following:

``SEC. 138. ENVIRONMENTAL AND CLIMATE JUSTICE BLOCK GRANTS.

``(a) Appropriation.--In addition to amounts otherwise
available, there is appropriated to the Administrator for
fiscal year 2022, out of any money in the Treasury not
otherwise appropriated--
``(1) $2,800,000,000 to remain available until September
30, 2026, to award grants for the activities described in
subsection (b); and
``(2) $200,000,000 to remain available until September 30,
2026, to provide technical assistance to eligible entities
related to grants awarded under this section.
``(b) Grants.--
``(1) In general.--The Administrator shall use amounts made
available under subsection (a)(1) to award grants for periods
of up to 3 years to eligible entities to carry out activities
described in paragraph (2) that benefit disadvantaged
communities, as defined by the Administrator.
``(2) Eligible activities.--An eligible entity may use a
grant awarded under this subsection for--
``(A) community-led air and other pollution monitoring,
prevention, and remediation, and investments in low- and
zero-emission and resilient technologies and related
infrastructure and workforce development that help reduce
greenhouse gas (as defined in section 211(o)(1)(G) (as in
effect on the date of enactment of this section)) emissions
and other air pollutants;
``(B) mitigating climate and health risks from urban heat
islands, extreme heat, wood heater emissions, and wildfire
events;
``(C) climate resiliency and adaptation;
``(D) reducing indoor toxics and indoor air pollution; or
``(E) facilitating engagement of disadvantaged communities
in State and Federal public processes, including facilitating
such engagement in advisory groups, workshops, and
rulemakings.
``(3) Eligible entities.--In this subsection, the term
`eligible entity' means--
``(A) a partnership between--
``(i) an Indian tribe, a local government, or an
institution of higher education; and
``(ii) a community-based nonprofit organization;
``(B) a community-based nonprofit organization; or
``(C) a partnership of community-based nonprofit
organizations.
``(c) Administrative Costs.--The Administrator shall
reserve 7 percent of the amounts made available under
subsection (a) for administrative costs to carry out this
section.''.

Subtitle C--United States Fish and Wildlife Service

SEC. 60301. ENDANGERED SPECIES ACT RECOVERY PLANS.

In addition to amounts otherwise available, there is
appropriated to the United States Fish and Wildlife Service
for fiscal year 2022, out of any money in the Treasury not
otherwise appropriated, $125,000,000, to remain available
until expended, for the purposes of developing and
implementing recovery plans under paragraphs (1), (3), and
(4) of subsection (f) of section 4 of the Endangered Species
Act of 1973 (16 U.S.C. 1533(f)).

SEC. 60302. FUNDING FOR THE UNITED STATES FISH AND WILDLIFE
SERVICE TO ADDRESS CLIMATE-INDUCED WEATHER
EVENTS.

(a) In General.--In addition to amounts otherwise
available, there is appropriated to the United States Fish
and Wildlife Service for fiscal year 2022, out of any money
in the Treasury not otherwise appropriated, $121,250,000, to
remain available until September 30, 2026, to make direct
expenditures, award grants, and enter into contracts and
cooperative agreements for the purposes of rebuilding and
restoring units of the National Wildlife Refuge System and
State wildlife management areas, including by--
(1) addressing the threat of invasive species;
(2) increasing the resiliency and capacity of habitats and
infrastructure to withstand climate-induced weather events;
and
(3) reducing the amount of damage caused by climate-induced
weather events.
(b) Administrative Costs.--In addition to amounts otherwise
available, there is appropriated to the United States Fish
and Wildlife Service for fiscal year 2022, out of any money
in the Treasury not otherwise appropriated, $3,750,000, to
remain available until September 30, 2026, for necessary
administrative expenses associated with carrying out this
section.

Subtitle D--Council on Environmental Quality

SEC. 60401. ENVIRONMENTAL AND CLIMATE DATA COLLECTION.

In addition to amounts otherwise available, there is
appropriated to the Chair of the Council on Environmental
Quality for fiscal year 2022, out of any money in the
Treasury not otherwise appropriated, $32,500,000, to remain
available until September 30, 2026--
(1) to support data collection efforts relating to--
(A) disproportionate negative environmental harms and
climate impacts; and
(B) cumulative impacts of pollution and temperature rise;
(2) to establish, expand, and maintain efforts to track
disproportionate burdens and cumulative impacts, including
academic and workforce support for analytics and informatics
infrastructure and data collection systems; and
(3) to support efforts to ensure that any mapping or
screening tool is accessible to community-based organizations
and community members.

SEC. 60402. COUNCIL ON ENVIRONMENTAL QUALITY EFFICIENT AND
EFFECTIVE ENVIRONMENTAL REVIEWS.

In addition to amounts otherwise available, there is
appropriated to the Chair of the Council on Environmental
Quality for fiscal year 2022, out of any money in the
Treasury not otherwise appropriated, $30,000,000, to remain
available until September 30, 2026, to carry out the Council
on Environmental Quality's functions and for the purposes of
training personnel, developing programmatic environmental
documents, and developing tools, guidance, and techniques to
improve stakeholder and community engagement.

Subtitle E--Transportation and Infrastructure

SEC. 60501. NEIGHBORHOOD ACCESS AND EQUITY GRANT PROGRAM.

(a) In General.--Chapter 1 of title 23, United States Code,
is further amended by adding at the end the following:

``Sec. 178. Neighborhood access and equity grant program

``(a) In General.--In addition to amounts otherwise
available, there is appropriated for fiscal year 2022, out of
any money in the Treasury not otherwise appropriated,
$1,893,000,000, to remain available until September 30, 2026,
to the Administrator of the Federal Highway Administration
for competitive grants to eligible entities described in
subsection (b)--
``(1) to improve walkability, safety, and affordable
transportation access through construction of projects that
are context-sensitive--
``(A) to remove, remediate, or reuse a facility described
in subsection (c)(1);
``(B) to replace a facility described in subsection (c)(1)
with a facility that is at-grade or lower speed;
``(C) to retrofit or cap a facility described in subsection
(c)(1);
``(D) to build or improve complete streets, multiuse
trails, regional greenways, or active transportation networks
and spines; or
``(E) to provide affordable access to essential
destinations, public spaces, or transportation links and
hubs;

[[Page S3991]]

``(2) to mitigate or remediate negative impacts on the
human or natural environment resulting from a facility
described in subsection (c)(2) in a disadvantaged or
underserved community, including construction of--
``(A) noise barriers to reduce impacts resulting from a
facility described in subsection (c)(2);
``(B) technologies, infrastructure, and activities to
reduce surface transportation-related air pollution,
including greenhouse gas emissions;
``(C) infrastructure or protective features to reduce or
manage stormwater run-off resulting from a facility described
in subsection (c)(2), including through natural
infrastructure and pervious, permeable, or porous pavement;
``(D) infrastructure and natural features to reduce or
mitigate urban heat island hot spots in the transportation
right-of-way or on surface transportation facilities; or
``(E) safety improvements for vulnerable road users; and
``(3) for planning and capacity building activities in
disadvantaged or underserved communities to--
``(A) identify, monitor, or assess local and ambient air
quality, emissions of transportation greenhouse gases, hot
spot areas of extreme heat or elevated air pollution, gaps in
tree canopy coverage, or flood prone transportation
infrastructure;
``(B) assess transportation equity or pollution impacts and
develop local anti-displacement policies and community
benefit agreements;
``(C) conduct predevelopment activities for projects
eligible under this subsection;
``(D) expand public participation in transportation
planning by individuals and organizations in disadvantaged or
underserved communities; or
``(E) administer or obtain technical assistance related to
activities described in this subsection.
``(b) Eligible Entities Described.--An eligible entity
referred to in subsection (a) is--
``(1) a State;
``(2) a unit of local government;
``(3) a political subdivision of a State;
``(4) an entity described in section 207(m)(1)(E);
``(5) a territory of the United States;
``(6) a special purpose district or public authority with a
transportation function;
``(7) a metropolitan planning organization (as defined in
section 134(b)(2)); or
``(8) with respect to a grant described in subsection
(a)(3), in addition to an eligible entity described in
paragraphs (1) through (7), a nonprofit organization or
institution of higher education that has entered into a
partnership with an eligible entity described in paragraphs
(1) through (7).
``(c) Facility Described.--A facility referred to in
subsection (a) is--
``(1) a surface transportation facility for which high
speeds, grade separation, or other design factors create an
obstacle to connectivity within a community; or
``(2) a surface transportation facility which is a source
of air pollution, noise, stormwater, or other burden to a
disadvantaged or underserved community.
``(d) Investment in Economically Disadvantaged
Communities.--
``(1) In general.--In addition to amounts otherwise
available, there is appropriated for fiscal year 2022, out of
any money in the Treasury not otherwise appropriated,
$1,109,950,000, to remain available until September 30, 2026,
to the Administrator of the Federal Highway Administration to
provide grants for projects in communities described in
paragraph (2) for the same purposes and administered in the
same manner as described in subsection (a).
``(2) Communities described.--A community referred to in
paragraph (1) is a community that--
``(A) is economically disadvantaged, including an
underserved community or a community located in an area of
persistent poverty;
``(B) has entered or will enter into a community benefits
agreement with representatives of the community;
``(C) has an anti-displacement policy, a community land
trust, or a community advisory board in effect; or
``(D) has demonstrated a plan for employing local residents
in the area impacted by the activity or project proposed
under this section.
``(e) Administration.--
``(1) In general.--A project carried out under subsection
(a) or (d) shall be treated as a project on a Federal-aid
highway.
``(2) Compliance with existing requirements.--Funds made
available for a grant under this section and administered by
or through a State department of transportation shall be
expended in compliance with the U.S. Department of
Transportation's Disadvantaged Business Enterprise Program.
``(f) Cost Share.--The Federal share of the cost of an
activity carried out using a grant awarded under this section
shall be not more than 80 percent, except that the Federal
share of the cost of a project in a disadvantaged or
underserved community may be up to 100 percent.
``(g) Technical Assistance.--In addition to amounts
otherwise available, there is appropriated for fiscal year
2022, out of any money in the Treasury not otherwise
appropriated, $42,150,000, to remain available until
September 30, 2026, to the Administrator of the Federal
Highway Administration for--
``(1) guidance, technical assistance, templates, training,
or tools to facilitate efficient and effective contracting,
design, and project delivery by units of local government;
``(2) subgrants to units of local government to build
capacity of such units of local government to assume
responsibilities to deliver surface transportation projects;
and
``(3) operations and administration of the Federal Highway
Administration.
``(h) Limitations.--Amounts made available under this
section shall not--
``(1) be subject to any restriction or limitation on the
total amount of funds available for implementation or
execution of programs authorized for Federal-aid highways;
and
``(2) be used for a project for additional through travel
lanes for single-occupant passenger vehicles.
``(i) Definition of Greenhouse Gas.--In this section, the
term `greenhouse gas' has the meaning given the term in
section 211(o)(1)(G) of the Clean Air Act (42 U.S.C.
7545(o)(1)(G)) (as in effect on the date of enactment of this
section).''.
(b) Clerical Amendment.--The analysis for chapter 1 of
title 23, United States Code, is further amended by adding at
the end the following:

``178. Neighborhood access and equity grant program.''.

SEC. 60502. ASSISTANCE FOR FEDERAL BUILDINGS.

In addition to amounts otherwise available, there is
appropriated for fiscal year 2022, out of any money in the
Treasury not otherwise appropriated, $250,000,000, to remain
available until September 30, 2031, to be deposited in the
Federal Buildings Fund established under section 592 of title
40, United States Code, for measures necessary to convert
facilities of the Administrator of General Services to high-
performance green buildings (as defined in section 401 of the
Energy Independence and Security Act of 2007 (42 U.S.C.
17061)).

SEC. 60503. USE OF LOW-CARBON MATERIALS.

(a) Appropriation.--In addition to amounts otherwise
available, there is appropriated for fiscal year 2022, out of
any money in the Treasury not otherwise appropriated,
$2,150,000,000, to remain available until September 30, 2026,
to be deposited in the Federal Buildings Fund established
under section 592 of title 40, United States Code, to acquire
and install low-embodied carbon materials and products for
use in the construction or alteration of buildings under the
jurisdiction, custody, and control of the General Services
Administration.
(b) Definitions.--In this section:
(1) Embodied carbon.--The term ``embodied carbon'' means
the quantity of greenhouse gas (as defined in section
211(o)(1)(G) of the Clean Air Act (42 U.S.C. 7545(o)(1)(G))
(as in effect on the date of enactment of this Act))
emissions associated with all relevant stages of production
of a material or product, measured in kilograms of carbon
dioxide-equivalent per unit of such material or product.
(2) Low-embodied carbon materials and products.--The term
``low-embodied carbon materials and products'' means
materials and products identified by the Administrator of the
Environmental Protection Agency as having substantially lower
levels of embodied carbon as compared to estimated industry
averages of similar products or materials.

SEC. 60504. GENERAL SERVICES ADMINISTRATION EMERGING
TECHNOLOGIES.

In addition to amounts otherwise available, there is
appropriated to the Administrator of General Services for
fiscal year 2022, out of any money in the Treasury not
otherwise appropriated, $975,000,000, to remain available
until September 30, 2026, to be deposited in the Federal
Buildings Fund established under section 592 of title 40,
United States Code, for emerging and sustainable
technologies, and related sustainability and environmental
programs.

SEC. 60505. ENVIRONMENTAL REVIEW IMPLEMENTATION FUNDS.

(a) In General.--Chapter 1 of title 23, United States Code,
is further amended by adding at the end the following:

``Sec. 179. Environmental review implementation funds

``(a) Establishment.--In addition to amounts otherwise
available, for fiscal year 2022, there is appropriated to the
Administrator, out of any money in the Treasury not otherwise
appropriated, $100,000,000, to remain available until
September 30, 2026, for the purpose of facilitating the
development and review of documents for the environmental
review process for proposed projects, including through--
``(1) the provision of guidance, technical assistance,
templates, training, or tools to facilitate an efficient and
effective environmental review process for surface
transportation projects, including any administrative
expenses of the Federal Highway Administration to conduct
such activities; and
``(2) providing funds made available under this subsection
to eligible entities--
``(A) to build capacity of such eligible entities and
facilitate the environmental review process for proposed
projects, including--
``(i) defining the scope or study areas;
``(ii) identifying impacts, mitigation measures, and
reasonable alternatives;
``(iii) preparing planning and environmental studies and
other documents prior to and during the environmental review
process, for potential use in the environmental

[[Page S3992]]

review process in accordance with applicable statutes and
regulations;
``(iv) conducting public engagement activities; and
``(v) carrying out other activities, including permitting
activities, as the Administrator determines to be
appropriate, to support the timely completion of an
environmental review process required for a proposed project;
and
``(B) for administrative expenses of the eligible entity to
conduct any of the activities described in subparagraph (A).
``(b) Cost Share.--
``(1) In general.--The Federal share of the cost of an
activity carried out under this section by an eligible entity
shall be not more than 80 percent.
``(2) Source of funds.--The non-Federal share of the cost
of an activity carried out under this section by an eligible
entity may be satisfied using funds made available to the
eligible entity under any other Federal, State, or local
grant program, including funds made available to the eligible
entity under this title or administered by the U.S.
Department of Transportation.
``(c) Definitions.--In this section:
``(1) Administrator.--The term `Administrator' means the
Administrator of the Federal Highway Administration.
``(2) Eligible entity.--The term `eligible entity' means--
``(A) a State;
``(B) a unit of local government;
``(C) a political subdivision of a State;
``(D) a territory of the United States;
``(E) an entity described in section 207(m)(1)(E);
``(F) a recipient of funds under section 203; or
``(G) a metropolitan planning organization (as defined in
section 134(b)(2)).
``(3) Environmental review process.--The term
`environmental review process' has the meaning given the term
in section 139(a)(5).
``(4) Proposed project.--The term `proposed project' means
a surface transportation project for which an environmental
review process is required.''.
(b) Clerical Amendment.--The analysis for chapter 1 of
title 23, United States Code, is further amended by adding at
the end the following:

``179. Environmental review implementation funds.''.

SEC. 60506. LOW-CARBON TRANSPORTATION MATERIALS GRANTS.

(a) In General.--Chapter 1 of title 23, United States Code,
is further amended by adding at the end the following:

``Sec. 180. Low-carbon transportation materials grants

``(a) Federal Highway Administration Appropriation.--In
addition to amounts otherwise available, there is
appropriated for fiscal year 2022, out of any money in the
Treasury not otherwise appropriated, $2,000,000,000, to
remain available until September 30, 2026, to the
Administrator to reimburse or provide incentives to eligible
recipients for the use of low-embodied carbon construction
materials and products in projects, and for the operations
and administration of the Federal Highway Administration to
carry out this section.
``(b) Reimbursement of Incremental Costs; Incentives.--
``(1) In general.--The Administrator shall, subject to the
availability of funds, either reimburse or provide incentives
to eligible recipients that use low-embodied carbon
construction materials and products on a project funded under
this title.
``(2) Reimbursement and incentive amounts.--
``(A) Incremental amount.--The amount of reimbursement
under paragraph (1) shall be equal to the incrementally
higher cost of using such materials relative to the cost of
using traditional materials, as determined by the eligible
recipient and verified by the Administrator.
``(B) Incentive amount.--The amount of an incentive under
paragraph (1) shall be equal to 2 percent of the cost of
using low-embodied carbon construction materials and products
on a project funded under this title.
``(3) Federal share.--If a reimbursement or incentive is
provided under paragraph (1), the total Federal share payable
for the project for which the reimbursement or incentive is
provided shall be up to 100 percent.
``(4) Limitations.--
``(A) In general.--The Administrator shall only provide a
reimbursement or incentive under paragraph (1) for a project
on a--
``(i) Federal-aid highway;
``(ii) tribal transportation facility;
``(iii) Federal lands transportation facility; or
``(iv) Federal lands access transportation facility.
``(B) Other restrictions.--Amounts made available under
this section shall not be subject to any restriction or
limitation on the total amount of funds available for
implementation or execution of programs authorized for
Federal-aid highways.
``(C) Single occupant passenger vehicles.--Funds made
available under this section shall not be used for projects
that result in additional through travel lanes for single
occupant passenger vehicles.
``(5) Materials identification.--The Administrator shall
review the low-embodied carbon construction materials and
products identified by the Administrator of the Environmental
Protection Agency and shall identify low-embodied carbon
construction materials and products--
``(A) appropriate for use in projects eligible under this
title; and
``(B) eligible for reimbursement or incentives under this
section.
``(c) Definitions.--In this section:
``(1) Administrator.--The term `Administrator' means the
Administrator of the Federal Highway Administration.
``(2) Eligible recipient.--The term `eligible recipient'
means--
``(A) a State;
``(B) a unit of local government;
``(C) a political subdivision of a State;
``(D) a territory of the United States;
``(E) an entity described in section 207(m)(1)(E));
``(F) a recipient of funds under section 203;
``(G) a metropolitan planning organization (as defined in
section 134(b)(2)); or
``(H) a special purpose district or public authority with a
transportation function.
``(3) Embodied carbon.--The term `embodied carbon' means
the quantity of greenhouse gas (as defined in section
211(o)(1)(G) of the Clean Air Act (42 U.S.C. 7545(o)(1)(G))
(as in effect on the date of enactment of this Act))
emissions associated with all relevant stages of production
of a material or product, measured in kilograms of carbon
dioxide-equivalent per unit of such material or product.
``(4) Low-embodied carbon construction materials and
products.--The term `low-embodied carbon construction
materials and products' means construction materials and
products identified by the Administrator of the Environmental
Protection Agency as having substantially lower levels of
embodied carbon as compared to estimated industry averages of
similar products or materials.''.
(b) Clerical Amendment.--The analysis for chapter 1 of
title 23, United States Code, is further amended by adding at
the end the following:

``180. Low-carbon transportation materials grants.''.

TITLE VII--COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS

SEC. 70001. DHS OFFICE OF CHIEF READINESS SUPPORT OFFICER.

In addition to the amounts otherwise available, there is
appropriated to the Secretary of Homeland Security for fiscal
year 2022, out of any money in the Treasury not otherwise
appropriated, $500,000,000, to remain available until
September 30, 2028, for the Office of the Chief Readiness
Support Officer to carry out sustainability and environmental
programs.

SEC. 70002. UNITED STATES POSTAL SERVICE CLEAN FLEETS.

In addition to amounts otherwise available, there is
appropriated to the United States Postal Service for fiscal
year 2022, out of any money in the Treasury not otherwise
appropriated, to be deposited into the Postal Service Fund
established under section 2003 of title 39, United States
Code, $3,000,000,000, to remain available through September
30, 2031, for--
(1) the purchase of zero-emission delivery vehicles; and
(2) the purchase, design, and installation of the requisite
infrastructure to support zero-emission delivery vehicles at
facilities that the United States Postal Service owns or
leases from non-Federal entities.

SEC. 70003. UNITED STATES POSTAL SERVICE OFFICE OF INSPECTOR
GENERAL.

In addition to amounts otherwise available, there is
appropriated to the Office of Inspector General of the United
States Postal Service for fiscal year 2022, out of any money
in the Treasury not otherwise appropriated, $15,000,000, to
remain available through September 30, 2031, to support
oversight of United States Postal Service activities
implemented pursuant to this Act.

SEC. 70004. GOVERNMENT ACCOUNTABILITY OFFICE OVERSIGHT.

In addition to amounts otherwise available, there is
appropriated to the Comptroller General of the United States
for fiscal year 2022, out of any money in the Treasury not
otherwise appropriated, $25,000,000, to remain available
until September 30, 2031, for necessary expenses of the
Government Accountability Office to support the oversight
of--
(1) the distribution and use of funds appropriated under
this Act; and
(2) whether the economic, social, and environmental impacts
of the funds described in paragraph (1) are equitable.

SEC. 70005. OFFICE OF MANAGEMENT AND BUDGET OVERSIGHT.

In addition to amounts otherwise available, there are
appropriated to the Director of the Office of Management and
Budget for fiscal year 2022, out of any money in the Treasury
not otherwise appropriated, $25,000,000, to remain available
until September 30, 2026, for necessary expenses to--
(1) oversee the implementation of this Act; and
(2) track labor, equity, and environmental standards and
performance.

SEC. 70006. FEMA BUILDING MATERIALS PROGRAM.

Through September 30, 2026, the Administrator of the
Federal Emergency Management Agency may provide financial
assistance under sections 203(h), 404(a), and 406(b) of the
Robert T. Stafford Disaster Relief and Emergency Assistance
Act (42 U.S.C. 5133(h), 42 U.S.C. 5170c(a), 42 U.S.C.
5172(b)) for--
(1) costs associated with low-carbon materials; and
(2) incentives that encourage low-carbon and net-zero
energy projects, which may include an increase in the Federal
cost share for those projects.

[[Page S3993]]

SEC. 70007. FEDERAL PERMITTING IMPROVEMENT STEERING COUNCIL
ENVIRONMENTAL REVIEW IMPROVEMENT FUND MANDATORY
FUNDING.

(a) In General.--In addition to amounts otherwise
available, there is appropriated to the Environmental Review
Improvement Fund established by section 41009(d)(1) of the
FAST Act (42 U.S.C. 4370m-8(d)(1)), out of any money in the
Treasury not otherwise appropriated, $70,000,000 for each of
fiscal years 2022 through 2026.
(b) Availability.--Notwithstanding section 41009(d)(2) of
the FAST Act (42 U.S.C. 4370m-8(d)(2)), funds appropriated
under subsection (a) for a fiscal year shall remain available
for the following 5 fiscal years.

TITLE VIII--COMMITTEE ON INDIAN AFFAIRS

SEC. 80001. TRIBAL CLIMATE RESILIENCE.

(a) Tribal Climate Resilience and Adaptation.--In addition
to amounts otherwise available, there is appropriated to the
Director of the Bureau of Indian Affairs for fiscal year
2022, out of any money in the Treasury not otherwise
appropriated, $220,000,000, to remain available until
September 30, 2031, for Tribal climate resilience and
adaptation programs.
(b) Bureau of Indian Affairs Fish Hatcheries.--In addition
to amounts otherwise available, there is appropriated to the
Director of the Bureau of Indian Affairs for fiscal year
2022, out of any money in the Treasury not otherwise
appropriated, $10,000,000, to remain available until
September 30, 2031, for fish hatchery operations and
maintenance programs of the Bureau of Indian Affairs.
(c) Administration.--In addition to amounts otherwise
available, there is appropriated to the Director of the
Bureau of Indian Affairs for fiscal year 2022, out of any
money in the Treasury not otherwise appropriated, $5,000,000,
to remain available until September 30, 2031, for the
administrative costs of carrying out this section.
(d) Cost-sharing and Matching Requirements.--None of the
funds provided by this section shall be subject to cost-
sharing or matching requirements.
(e) Small and Needy Program.--Amounts made available under
this section shall be excluded from the calculation of funds
received by those Tribal governments that participate in the
``Small and Needy'' program.
(f) Distribution; Use of Funds.--Amounts made available
under this section that are distributed to Indian Tribes and
Tribal organizations for services pursuant to a self-
determination contract (as defined in subsection (j) of
section 4 of the Indian Self-Determination and Education
Assistance Act (25 U.S.C. 5304(j))) or a self-governance
compact entered into pursuant to subsection (a) of section
404 of the Indian Self-Determination and Education Assistance
Act (25 U.S.C. 5364(a))--
(1) shall be distributed on a 1-time basis;
(2) shall not be part of the amount required by subsections
(a) through (b) of section 106 of the Indian Self-
Determination and Education Assistance Act (25 U.S.C.
5325(a)-(b)); and
(3) shall only be used for the purposes identified under
the applicable subsection.

SEC. 80002. NATIVE HAWAIIAN CLIMATE RESILIENCE.

(a) Native Hawaiian Climate Resilience and Adaptation.--In
addition to amounts otherwise available, there is
appropriated to the Senior Program Director of the Office of
Native Hawaiian Relations for fiscal year 2022, out of any
money in the Treasury not otherwise appropriated,
$23,500,000, to remain available until September 30, 2031, to
carry out, through financial assistance, technical
assistance, direct expenditure, grants, contracts, or
cooperative agreements, climate resilience and adaptation
activities that serve the Native Hawaiian Community.
(b) Administration.--In addition to amounts otherwise
available, there is appropriated to the Senior Program
Director of the Office of Native Hawaiian Relations for
fiscal year 2022, out of any money in the Treasury not
otherwise appropriated, $1,500,000, to remain available until
September 30, 2031, for the administrative costs of carrying
out this section.
(c) Cost-sharing and Matching Requirements.--None of the
funds provided by this section shall be subject to cost-
sharing or matching requirements.

SEC. 80003. TRIBAL ELECTRIFICATION PROGRAM.

(a) Tribal Electrification Program.--In addition to amounts
otherwise available, there is appropriated to the Director of
the Bureau of Indian Affairs for fiscal year 2022, out of any
money in the Treasury not otherwise appropriated,
$145,500,000, to remain available until September 30, 2031,
for--
(1) the provision of electricity to unelectrified Tribal
homes through zero-emissions energy systems;
(2) transitioning electrified Tribal homes to zero-
emissions energy systems; and
(3) associated home repairs and retrofitting necessary to
install the zero-emissions energy systems authorized under
paragraphs (1) and (2).
(b) Administration.--In addition to amounts otherwise
available, there is appropriated to the Director of the
Bureau of Indian Affairs for fiscal year 2022, out of any
money in the Treasury not otherwise appropriated, $4,500,000,
to remain available until September 30, 2031, for the
administrative costs of carrying out this section.
(c) Cost-sharing and Matching Requirements.--None of the
funds provided by this section shall be subject to cost-
sharing or matching requirements.
(d) Small and Needy Program.--Amounts made available under
this section shall be excluded from the calculation of funds
received by those Tribal governments that participate in the
``Small and Needy'' program.
(e) Distribution; Use of Funds.--Amounts made available
under this section that are distributed to Indian Tribes and
Tribal organizations for services pursuant to a self-
determination contract (as defined in subsection (j) of
section 4 of the Indian Self-Determination and Education
Assistance Act (25 U.S.C. 5304(j))) or a self-governance
compact entered into pursuant to subsection (a) of section
404 of the Indian Self-Determination and Education Assistance
Act (25 U.S.C. 5364(a))--
(1) shall be distributed on a 1-time basis;
(2) shall not be part of the amount required by subsections
(a) through (b) of section 106 of the Indian Self-
Determination and Education Assistance Act (25 U.S.C.
5325(a)-(b)); and
(3) shall only be used for the purposes identified under
the applicable subsection.

SEC. 80004. EMERGENCY DROUGHT RELIEF FOR TRIBES.

(a) Emergency Drought Relief for Tribes.--In addition to
amounts otherwise available, there is appropriated to the
Commissioner of the Bureau of Reclamation for fiscal year
2022, out of any money in the Treasury not otherwise
appropriated, $12,500,000, to remain available until
September 30, 2026, for near-term drought relief actions to
mitigate drought impacts for Indian Tribes that are impacted
by the operation of a Bureau of Reclamation water project,
including through direct financial assistance to address
drinking water shortages and to mitigate the loss of Tribal
trust resources.
(b) Cost-sharing and Matching Requirements.--None of the
funds provided by this section shall be subject to cost-
sharing or matching requirements.
______