To modify the bill.

SA 5281. Mr. SANDERS (for himself and Mr. Merkley) proposed an
amendment to amendment SA 5194 proposed by Mr. Schumer to the bill H.R.
5376, to provide for reconciliation pursuant to title II of S; as
follows:

Strike sections 13104 through 50265 and insert the
following:

SEC. 13104. 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 16 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.--Subject to clause (iii), 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. For purposes of determining the
amount received during such taxable year, the taxpayer shall
take into account any reductions required under such 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

[[Page S4258]]

whole or in part, the zero-emission, zero-carbon, or air
quality attributes of any portion of the electricity produced
by such facility.
``(iii) Exclusion.--For purposes of clause (i), any amount
received by the taxpayer from a zero-emission credit program
shall be excluded from the amount determined under
subparagraph (A)(ii)(I) if the full amount of the credit
calculated pursuant to subsection (a) (determined without
regard to this subparagraph) is used to reduce payments from
such zero-emission credit program.
``(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.--
``(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 the taxpayer or any contractor or
subcontractor 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 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.--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, the portion of
which is not kerosene, 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

[[Page S4259]]

``(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 or importer 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).
``(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 or importing 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.

[[Page S4260]]

``(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
``(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 the taxpayer or any
contractor or subcontractor 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 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)(1), 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).

[[Page S4261]]

``(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 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.

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 fuel
blends at least 50 percent of the volume of which consists of
an eligible fuel.

``(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

[[Page S4262]]

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 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) Section 25D(d)(3) is amended by inserting ``, without
regard to subparagraph (D) thereof'' after ``section
48(c)(1)''.
(2) The heading for section 25D is amended by striking
``energy efficient property'' and inserting ``clean energy
credit''.
(3) 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 deduction 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 the taxpayer or any contractor or subcontractor
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.
``(6) Regulations.--The Secretary shall issue such
regulations or other guidance as the Secretary determines
necessary to carry

[[Page S4263]]

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.''.
(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).
(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 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

[[Page S4264]]

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.--Paragraph (2) of section
45L(a) 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--
``(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 (a)(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 the taxpayer or any contractor or subcontractor
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 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).''.

[[Page S4265]]

(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--

``(I) in the United States, or
``(II) 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 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 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 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, 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.

[[Page S4266]]

``(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(d)(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 subsection
pursuant to section 104 of the Federally Recognized Indian
Tribe List Act of 1994 (25 U.S.C. 5131).
``(10) Recapture.--In the case of any taxpayer who has made
an election described in paragraph (1) with respect to a new
clean vehicle and received a payment described in paragraph
(2)(C) from an eligible entity, if the credit under
subsection (a) would otherwise (but for this subsection) not
be allowable to such taxpayer pursuant to the application of
subsection (f)(10), the tax imposed on such taxpayer under
this chapter for the taxable year in which such vehicle was
placed in service shall be increased by the amount of the
payment received by such taxpayer.''.
(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--

[[Page S4267]]

``(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 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.--Rules similar to the rules under
subsection (f) of section 30D (without regard to paragraph
(10) or (11) thereof) shall apply for purposes of this
section.
``(2) 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).
``(3) 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 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

[[Page S4268]]

(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 2 or 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.--
``(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 the taxpayer or
any contractor or subcontractor 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 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.--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 a census tract which--
``(A) is described in clause (iii) of section 45(b)(11)(B),
and
``(B) prior to the date of enactment of this subsection,
had no project which 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 the
taxpayer or any contractor or subcontractor 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

[[Page S4269]]

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,
``(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, 48E, 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.--
``(A) In general.--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) Election.--
``(i) In general.--At the election of the taxpayer (in such
form and manner as the Secretary may prescribe), a sale of
components by such taxpayer to a related person shall be
deemed to have been made to an unrelated person.
``(ii) Requirement.--As a condition of, and prior to, any
election described in clause (i), the Secretary may require
such information or registration as the Secretary deems
necessary for purposes of preventing duplication, fraud, or
any improper or excessive amount determined under paragraph
(1).
``(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.--

[[Page S4270]]

``(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).
``(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 12 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--

[[Page S4271]]

``(i) converted from bauxite to a minimum purity of 99
percent alumina by mass, or
``(ii) purified to a minimum purity of 99.9 percent
aluminum by mass.
``(B) Antimony.--Antimony which is--
``(i) converted to antimony trisulfide concentrate with a
minimum purity of 90 percent antimony trisulfide by mass, or
``(ii) purified to a minimum purity of 99.65 percent
antimony by mass.
``(C) Barite.--Barite which is barium sulfate purified to a
minimum purity of 80 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 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 99.99 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
``(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 which is
purified to a minimum purity of 99 percent neodymium-
praseodymium oxide by mass,
``(ii) converted to neodymium oxide which is purified to a
minimum purity of 99.5 percent neodymium oxide by mass
``(iii) purified to a minimum purity of 99.9 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 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 99.999 percent yttrium oxide by mass, or
``(ii) purified to a minimum purity of 99.9 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

[[Page S4272]]

``(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 48E
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
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

[[Page S4273]]

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.
``(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.
``(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 (as determined without application of
paragraph (7)).
``(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 before January 1, 2025, 40 percent,
``(II) in the case of a facility the construction of which
begins after December 31, 2024, and before January 1, 2026,
45 percent,
``(III) in the case of a facility the construction of which
begins after December 31, 2025, and before January 1, 2027,
50 percent, and
``(IV) 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 before January 1, 2025, 20 percent,
``(II) in the case of a facility the construction of which
begins after December 31, 2024, and before January 1, 2026,
27.5 percent,
``(III) in the case of a facility the construction of which
begins after December 31, 2025, and before January 1, 2027,
35 percent,
``(IV) in the case of a facility the construction of which
begins after December 31, 2026, and before January 1, 2028,
45 percent, and
``(V) 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), 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,
``(ii) if construction of such facility began in calendar
year 2024, 90 percent,
``(iii) if construction of such facility began in calendar
year 2025, 85 percent, and
``(iv) 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 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

[[Page S4274]]

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, as amended by section 107(a) of the CHIPS Act of
2022, is amended by inserting after section 48D the following
new section:

``SEC. 48E. 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 of applying paragraph (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 45Y(g)(12) 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,

[[Page S4275]]

``(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 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) Section 46, as amended by section 107(d) of the CHIPS
Act of 2022, is amended--
(A) in paragraph (5), by striking ``and'' at the end,
(B) in paragraph (6), by striking the period at the end and
inserting ``, and'', and
(C) by adding at the end the following:
``(7) the clean electricity investment credit.''.
(2) Section 49(a)(1)(C), as amended by section 107(d) of
the CHIPS Act of 2022, is amended--
(A) by striking ``and'' at the end of clause (v),
(B) by striking the period at the end of clause (vi) and
inserting a comma, and
(C) by adding at the end the following new clauses:
``(vii) the basis of any qualified property which is part
of a qualified facility under section 48E, and
``(viii) the basis of any energy storage technology under
section 48E.''.
(3) Section 50(a)(2)(E), as amended by section 107(d) of
the CHIPS Act of 2022, is amended by striking ``or
48D(b)(5)'' and inserting ``48D(b)(5), or 48E(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, as amended by section 107(d) of
the CHIPS Act of 2022, is amended by inserting after the item
relating to section 48D the following new item:

``48E. 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,

[[Page S4276]]

(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 48E) 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, the portion of which is not kerosene, 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
``(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)(15) 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

[[Page S4277]]

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).''.
(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 48E.
``(c) Application to Partnerships and S Corporations.--
``(1) In general.--In the case of any applicable credit
determined with respect to any facility or property held
directly by a partnership or S corporation, any election
under subsection (a) shall be made by such partnership or S
corporation. If such partnership or S corporation makes an
election under such subsection (in such manner as the
Secretary may provide) with respect to such credit--
``(A) the Secretary shall make a payment to such
partnership or S corporation equal to the amount of such
credit,
``(B) subsection (e) shall be applied with respect to such
credit before determining any partner's distributive share,
or shareholder's pro rata share, of such credit,
``(C) any amount with respect to which the election in
subsection (a) is made shall be treated as tax exempt income
for purposes of sections 705 and 1366, and
``(D) a partner's distributive share of such tax exempt
income shall be based on such partner's distributive share of
the otherwise applicable 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 applicable credit
determined with respect to such facility or property.
``(3) Treatment of payments to partnerships and s
corporations.--For purposes of section 1324 of title 31,
United States Code, the payments under paragraph (1)(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.
``(d) Special Rules.--For purposes of this section--
``(1) Applicable entity.--
``(A) In general.--The term `applicable entity' means--
``(i) any organization exempt from the tax imposed by
subtitle A,
``(ii) any State or political subdivision thereof,
``(iii) the Tennessee Valley Authority,
``(iv) an Indian tribal government (as defined in section
30D(g)(9)),
``(v) any Alaska Native Corporation (as defined in section
3 of the Alaska Native Claims Settlement Act (43 U.S.C.
1602(m)), or
``(vi) any corporation operating on a cooperative basis
which is engaged in furnishing electric energy to persons in
rural areas.
``(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

[[Page S4278]]

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.

``(iii) Prohibition on transfer.--For any taxable year
described in clause (ii)(I), no election may be made by the
taxpayer under section 6418(a) for such taxable year with
respect to eligible components for purposes of the credit
described in subsection (b)(7).
``(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
``(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 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), or the amount of the payment made pursuant to
subsection (c), 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)(ii) 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), or the amount of the
payment made pursuant to subsection (c), 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.
``(e) 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.
``(f) Mirror Code Possessions.--In the case of any
possession of the United States with a mirror code tax system
(as defined in

[[Page S4279]]

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.
``(g) 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.
``(h) Regulations.--The Secretary shall issue such
regulations or other guidance as may be necessary 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 48E.
``(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 `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(d)(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 for
purposes of preventing duplication, fraud, improper payments,
or excessive payments under this section.
``(2) Excessive credit transfer.--
``(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 credit transfer, 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 credit transfer, plus
``(ii) an amount equal to 20 percent of such excessive
credit transfer.
``(B) Reasonable cause.--Subparagraph (A)(ii) shall not
apply if the transferee taxpayer demonstrates to the
satisfaction of the Secretary that the excessive credit
transfer resulted from reasonable cause.
``(C) Excessive credit transfer defined.--For purposes of
this paragraph, the term `excessive credit transfer' 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 under this
title with respect to such facility or property for such
taxable year.
``(3) Basis reduction; notification of recapture.--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)--
``(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, and
``(B) if, during any taxable year, the applicable
investment credit property (as defined in subsection (a)(5)
of section 50) is disposed of, or otherwise ceases to be
investment credit property with respect to the eligible
taxpayer, before the close of the recapture period (as
described in subsection (a)(1) of such section)--
``(i) such eligible taxpayer shall provide notice of such
occurrence to the transferee taxpayer (in such form and
manner as the Secretary shall prescribe), and
``(ii) the transferee taxpayer shall provide notice of the
recapture amount (as defined in subsection (c)(2) of such
section), if any, to the eligible taxpayer (in such form and
manner as the Secretary shall prescribe).
``(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 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

[[Page S4280]]

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) Gross-up of Direct Spending.--Beginning in fiscal year
2023 and each fiscal year thereafter, the portion of any
payment made to a taxpayer pursuant to an election under
section 6417 of the Internal Revenue Code of 1986, or any
amount treated as a payment which is made by the taxpayer
under subsection (a) of such section, that is direct spending
shall be increased by 6.0445 percent.
(g) 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 9--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.

SEC. 13903. TAX TREATMENT OF CERTAIN ASSISTANCE TO FARMERS,
ETC.

For purposes of the Internal Revenue Code of 1986, in the
case of any payment described in section 1006(e) of the
American Rescue Plan Act of 2021 (as amended by section 22007
of this Act) or section 22006 of this Act--
(1) such payment shall not be included in the gross income
of the person on whose behalf, or to whom, such payment is
made,
(2) no deduction shall be denied, no tax attribute shall be
reduced, and no basis increase shall be denied, by reason of
the exclusion from gross income provided by paragraph (1),
and
(3) in the case of a partnership or S corporation on whose
behalf, or to whom, such a payment is made--
(A) any amount excluded from income by reason of paragraph
(1) shall be treated as tax exempt income for purposes of
sections 705 and 1366 of such Code, and
(B) except as provided by the Secretary of the Treasury (or
the Secretary's delegate), any increase in the adjusted basis
of a partner's interest in a partnership under section 705 of
such Code with respect to any amount described in
subparagraph (A) shall equal the partner's distributive share
of deductions resulting from interest that is part of such
payment and the partner's share, as determined under section
752 of such Code, of principal that is part of such payment.

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; and

(iii) the funds shall be available for 1 or more
agricultural conservation practices or enhancements that the
Secretary determines directly improve soil carbon, reduce
nitrogen losses, or reduce, capture, avoid, or sequester
carbon dioxide, methane, or nitrous oxide emissions,
associated with agricultural production;
(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 condition on the use of the funds that
the funds shall only be available for 1 or more agricultural
conservation practices, enhancements, or bundles that the
Secretary determines directly improve soil carbon, reduce
nitrogen losses, or reduce, capture, avoid, or sequester
carbon dioxide, methane, or nitrous oxide emissions,
associated with agricultural production;
(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) for easements or
interests in land that will most reduce, capture, avoid, or
sequester carbon dioxide, methane, or nitrous oxide emissions
associated with land eligible for the program--
(A) $100,000,000 for fiscal year 2023;
(B) $200,000,000 for fiscal year 2024;
(C) $500,000,000 for fiscal year 2025; and
(D) $600,000,000 for fiscal year 2026; 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) $800,000,000 for fiscal year 2024;
(iii) $1,500,000,000 for fiscal year 2025; and
(iv) $2,400,000,000 for fiscal year 2026; and
(B) subject to the conditions on the use of the funds
that--
(i) section 1271C(d)(2)(B) of the Food Security Act of 1985
(16 U.S.C. 3871c(d)(2)(B)) shall not apply; and
(ii) the Secretary 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, reducing nitrogen losses, or reducing,
capturing, avoiding, or sequestering carbon dioxide, methane,
or nitrous oxide emissions, associated with agricultural
production.

[[Page S4281]]

(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 (2)(F), by striking ``2023'' and
inserting ``2031''; and
(iii) 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 program to quantify carbon
sequestration and carbon dioxide, methane, and nitrous oxide
emissions, through which the Natural Resources Conservation
Service shall collect field-based data to assess the carbon
sequestration and reduction in carbon dioxide, methane, and
nitrous oxide emissions outcomes associated with activities
carried out pursuant to this section and use the data to
monitor and track those carbon sequestration and emissions
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 and Agricultural Credit

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 in an amount that is not greater than 50
percent of the loan 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, except as provided in paragraph (3).
``(2) Limitation.--The Secretary shall not enter into any
loan agreement pursuant this subsection that could result in
disbursements after September 30, 2031.
``(3) Exception.--The Secretary shall establish criteria
for waiving the 50 percent limitation described in paragraph
(1).''.

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 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 biofuel 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.''.

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

[[Page S4282]]

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 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) loans, modifications of loans, the cost
of loans and modifications, and other financial assistance to
achieve the greatest reduction in carbon dioxide, methane,
and nitrous oxide emissions associated with rural electric
systems through the purchase of renewable energy, renewable
energy systems, and zero-emission 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.
``(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 administrative costs of
the agencies and offices of the Department for costs related
to implementing this subtitle.

SEC. 22006. FARM LOAN IMMEDIATE RELIEF FOR BORROWERS WITH AT-
RISK AGRICULTURAL OPERATIONS.

In addition to amounts otherwise available, there is
appropriated to the Secretary for fiscal year 2022, out of
amounts in the Treasury not otherwise appropriated,
$3,100,000,000, to remain available until September 30, 2031,
to provide payments to, for the cost of loans or loan
modifications for, or to carry out section 331(b)(4) of the
Consolidated Farm and Rural Development Act (7 U.S.C.
1981(b)(4)) with respect to distressed borrowers of direct or
guaranteed loans administered by the Farm Service Agency
under subtitle A, B, or C of that Act (7 U.S.C. 1922 through
1970). In carrying out this section, the Secretary shall
provide relief to those borrowers whose agricultural
operations are at financial risk as expeditiously as
possible, as determined by the Secretary.

SEC. 22007. USDA ASSISTANCE AND SUPPORT FOR UNDERSERVED
FARMERS, RANCHERS, AND FORESTERS.

Section 1006 of the American Rescue Plan Act of 2021 (7
U.S.C. 2279 note; Public Law 117-2) is amended to read as
follows:

``SEC. 1006. USDA ASSISTANCE AND SUPPORT FOR UNDERSERVED
FARMERS, RANCHERS, FORESTERS.

``(a) Technical and Other Assistance.--In addition to
amounts otherwise available, there is appropriated to the
Secretary of Agriculture for fiscal year 2022, to remain
available until September 30, 2031, out of any money in the
Treasury not otherwise appropriated, $125,000,000 to provide
outreach, mediation, financial training, capacity building
training, cooperative development and agricultural credit
training and support, and other technical assistance on
issues concerning food, agriculture, agricultural credit,
agricultural extension, rural development, or nutrition to
underserved farmers, ranchers, or forest landowners,
including veterans, limited resource producers, beginning
farmers and ranchers, and farmers, ranchers, and forest
landowners living in high poverty areas.
``(b) Land Loss Assistance.--In addition to amounts
otherwise available, there is appropriated to the Secretary
of Agriculture for fiscal year 2022, to remain available
until September 30, 2031, out of any money in the Treasury
not otherwise appropriated, $250,000,000 to provide grants
and loans to eligible entities, as determined by the
Secretary, to improve land access (including heirs' property
and fractionated land issues) for underserved farmers,
ranchers, and forest landowners, including veterans, limited
resource producers, beginning farmers and ranchers, and
farmers, ranchers, and forest landowners living in high
poverty areas.
``(c) Equity Commissions.--In addition to amounts otherwise
available, there is appropriated to the Secretary of
Agriculture for fiscal year 2022, to remain available until
September 30, 2031, out of any money in the Treasury not
otherwise appropriated, $10,000,000 to fund the activities of
one or more equity commissions that will address racial
equity issues within the Department of Agriculture and the
programs of the Department of Agriculture.
``(d) Research, Education, and Extension.--In addition to
amounts otherwise available, there is appropriated to the
Secretary of Agriculture for fiscal year 2022, to remain
available until September 30, 2031, out of any money in the
Treasury not otherwise appropriated, $250,000,000 to support
and supplement agricultural research, education, and
extension, as well as scholarships and programs that provide
internships and pathways to agricultural sector or Federal
employment, for 1890 Institutions (as defined in section 2 of
the Agricultural, Research, Extension, and Education Reform
Act of 1998 (7 U.S.C. 7601)), 1994 Institutions (as defined
in section 532 of the Equity in Educational Land-Grant Status
Act of 1994 (7 U.S.C. 301 note; Public Law 103-382)), Alaska
Native serving institutions and Native Hawaiian serving
institutions eligible to receive grants under subsections (a)
and (b), respectively, of section 1419B of the National
Agricultural Research, Extension, and Teaching Policy Act of
1977 (7 U.S.C. 3156), Hispanic-serving institutions eligible
to receive grants under section 1455 of the National
Agricultural Research, Extension, and Teaching Policy Act of
1977 (7 U.S.C. 3241), and the insular area institutions of
higher education located in the territories of the United
States, as referred to in section 1489 of the National
Agricultural Research, Extension, and Teaching Policy Act of
1977 (7 U.S.C. 3361).
``(e) Discrimination Financial Assistance.--In addition to
amounts otherwise available, there is appropriated to the
Secretary of Agriculture for fiscal year 2022, to remain
available until September 30, 2031, out of any money in the
Treasury not otherwise appropriated, $2,200,000,000 for a
program to provide financial assistance, including the cost
of any financial assistance, to farmers, ranchers, or forest
landowners determined to have experienced discrimination
prior to January 1, 2021, in Department of Agriculture farm
lending programs, under which the amount of financial
assistance provided to a recipient may be not more than
$500,000, as determined to be appropriate based on any
consequences experienced from the discrimination, which
program shall be administered through 1 or more qualified
nongovernmental entities selected by the Secretary subject to
standards set and enforced by the Secretary.
``(f) Administrative Costs.--In addition to amounts
otherwise available, there is appropriated to the Secretary
of Agriculture for fiscal year 2022, to remain available
until September 30, 2031, out of any money in the Treasury
not otherwise appropriated, $24,000,000 for administrative
costs, including training employees, of the agencies and
offices of the Department of Agriculture to carry out this
section.
``(g) Limitation.--The funds made available under this
section are subject to the condition that the Secretary shall
not--
``(1) enter into any agreement 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.''.

SEC. 22008. REPEAL OF FARM LOAN ASSISTANCE.

Section 1005 of the American Rescue Plan Act of 2021 (7
U.S.C. 1921 note; Public Law 117-2) is repealed.

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
plan developed under section 303(d)(1) or 304(a)(3) of the
Healthy Forests Restoration Act of 2003 (16 U.S.C. 6542(d)(1)
or 6543(a)(3));
(3) $100,000,000 to provide for 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 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) Restrictions.--None of the funds made available by
paragraph (1) or (2) of subsection (a) 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;

[[Page S4283]]

(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.
(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.
(d) 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.
(e) Definitions.--In this section:
(1) 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.
(2) 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).
(3) 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.
(4) 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).
(5) 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.
(6) 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; and
(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.
(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) for projects for the acquisition of land and interests
in land; 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 agency or governmental entity of an insular area
(as defined in section 1404 of the National Agricultural
Research, Extension, and Teaching Policy Act of 1977 (7
U.S.C. 3103)), 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.
(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, 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
such loans, not to exceed $4,000,000,000, to fund projects
that improve energy or water efficiency, enhance indoor air
quality or sustainability, implement the use of zero-emission
electricity generation, low-emission building materials or
processes, energy storage, or building electrification
strategies, 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 for information
technology, research and evaluation, and administering and
overseeing the implementation of this section;
(3) $60,000,000, to remain available until September 30,
2029, for expenses of contracts

[[Page S4284]]

or cooperative agreements administered by the Secretary; 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 or
loans, along with associated data analysis and evaluation at
the property and portfolio level, and 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, resources, Pacific salmon and other marine
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, marine fishery and
marine mammal stock assessments, 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, facilities in need of replacement, 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
(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

[[Page S4285]]

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
are 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 a disadvantaged
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)(7).
(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), 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 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;

[[Page S4286]]

(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.--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) 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.
(7) 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) Disadvantaged community.--The term ``disadvantaged
community'' means a community that the Secretary determines,
based on appropriate data, indices, and screening tools, is
economically, socially, or environmentally disadvantaged.
(2) 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.
(3) 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.

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;
(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

[[Page S4287]]

(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,
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
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 not more than
5

[[Page S4288]]

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 not more
than 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 not
more than $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 not
more than 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--
``(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.

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''.

[[Page S4289]]

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 pay the
costs of 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) 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.
(D) 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.
(E) 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 (C) or (D) 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 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;
(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).

[[Page S4290]]

(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 not
more than $300,000,000 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,
$20,000,000, 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 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.
(c) 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.

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 to serve in units of the National Park
System or national historic or national scenic trails
administered by the National Park Service.

SEC. 50224. NATIONAL PARK SYSTEM DEFERRED MAINTENANCE.

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, 2026,
to carry out priority deferred maintenance projects, through
direct expenditures or transfers, within the boundaries 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.

[[Page S4291]]

SEC. 50233. DROUGHT MITIGATION IN THE RECLAMATION STATES.

(a) Definition of Reclamation State.--In this section, the
term ``Reclamation State'' means a State or territory
described in the first section of the Act of June 17, 1902
(32 Stat. 388, chapter 1093; 43 U.S.C. 391).
(b) Appropriation.--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, $4,000,000,000, to remain available through
September 30, 2026, for grants, contracts, or financial
assistance agreements, in accordance with the reclamation
laws, to or with public entities and Indian Tribes, that
provide for the conduct of the following activities to
mitigate the impacts of drought in the Reclamation States,
with priority given to the Colorado River Basin and other
basins experiencing comparable levels of long-term drought,
to be implemented in compliance with applicable environmental
law:
(1) Compensation for a temporary or multiyear voluntary
reduction in diversion of water or consumptive water use.
(2) Voluntary system conservation projects that achieve
verifiable reductions in use of or demand for water supplies
or provide environmental benefits in the Lower Basin or Upper
Basin of the Colorado River.
(3) Ecosystem and habitat restoration projects to address
issues directly caused by drought in a river basin or inland
water body.
(c) Report.--Not later than 1 year after the date of
enactment of this Act, and each year thereafter, the
Secretary shall submit to Congress a report that describes
any expenditures under this section.

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'';
(2) in subparagraph (F), by striking ``no less than 12\1/2\
per centum'' and inserting ``not less than 16\2/3\ percent'';
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''.

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 Act titled `An Act to provide for reconciliation
pursuant to title II of S. Con. Res. 14', 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 Act
titled `An Act to provide for reconciliation pursuant to
title II of S. Con. Res. 14'.''; 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 Act titled `An Act to provide for
reconciliation pursuant to title II of S. Con. Res. 14', $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.''.
(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.

[[Page S4292]]

``(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 (30
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.

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.
______