[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 2399 Introduced in Senate (IS)]

<DOC>






114th CONGRESS
  1st Session
                                S. 2399

      To provide for emissions reductions, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           December 10, 2015

  Mr. Sanders introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
      To provide for emissions reductions, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Climate Protection 
and Justice Act of 2015''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings and purposes.
Sec. 3. Statement of policy.
Sec. 4. Sense of Congress.
Sec. 5. Definition of Administrator.
                TITLE I--ACHIEVING EMISSIONS REDUCTIONS

Sec. 101. Carbon pollution fee.
Sec. 102. Carbon Fee Rebate Program.
 TITLE II--PROTECTING VULNERABLE PEOPLE OF THE UNITED STATES FROM THE 
                       IMPACTS OF CLIMATE CHANGE

              Subtitle A--Ensuring Climate Justice for All

Sec. 201. Findings.
Sec. 202. Definitions.
Sec. 203. Climate Justice Resiliency Council.
Sec. 204. Climate Justice Resiliency Grant Program.
Sec. 205. Low-income and municipal energy efficiency.
  Subtitle B--Strengthening Environmental Protections for Communities 
             Disproportionately Impacted by Climate Change

Sec. 211. Ending toxic air pollution from incinerators.
    TITLE III--PROTECTING AND ENHANCING UNITED STATES MANUFACTURING

Sec. 301. Carbon equivalency fee border adjustments for carbon 
                            pollution-intensive goods.
Sec. 302. Carbon equivalency fee fund.
   TITLE IV--PROTECTING AGRICULTURE AND ENHANCING FARM OPPORTUNITIES

Sec. 401. Rural Energy for America Program.
Sec. 402. Soil quality improvement.
Sec. 403. Nitrous oxide emissions reductions.
                   TITLE V--WHOLESALE DEMAND RESPONSE

Sec. 501. Wholesale demand response.
Sec. 502. General right to neutrality of interconnection.

SEC. 2. FINDINGS AND PURPOSES.

    (a) Findings.--Congress finds that--
            (1) greenhouse gases are accumulating in the atmosphere at 
        a rate that may cause average temperatures to rise 8 degrees 
        Fahrenheit or more;
            (2) the expected rise in average temperatures poses a risk 
        of--
                    (A) increasing global average air and ocean 
                temperatures;
                    (B) widespread melting of snow and ice; and
                    (C) rising global average sea level;
            (3) the overwhelming majority of the scientific community 
        is clear that climate change is--
                    (A) real;
                    (B) caused by human activity; and
                    (C) already causing devastating problems in the 
                United States and around the world; and
            (4) mandatory steps will be required to move aggressively 
        to transform the energy system of the United States away from 
        fossil fuels to energy efficiency and sustainable energy.
    (b) Purposes.--The purposes of this Act are--
            (1) to reduce, in conjunction with other laws, emissions of 
        carbon pollution to ensure that the contribution of the United 
        States to global climate change is lower than the level 
        required to keep global average temperature increases below 2 
        degrees Celsius;
            (2) to implement solutions that acknowledge the 
        intersections of environmental degradation that perpetuate 
        racial, social, and economic inequities;
            (3) to protect the lives of low-income, minority, and 
        tribal communities and reinvest in those communities;
            (4) to empower communities to prepare for, and react to, 
        the impacts of climate change that are already being 
        experienced by communities; and
            (5) to demonstrate to the international community a 
        commitment by the Government of the United States to 
        aggressively reduce carbon pollution emissions.

SEC. 3. STATEMENT OF POLICY.

    It is the policy of the United States that--
            (1) the Government of the United States should lead the 
        international community in an aggressive transition away from 
        fossil fuels and toward sustainable energy;
            (2) the Government of the United States should tax carbon 
        pollution to capture the price on the atmosphere and motivate 
        significant reductions in emissions; and
            (3) the transition away from fossil fuels shall focus on 
        climate justice, which requires solutions that consider--
                    (A) the needs of workers; and
                    (B) the manners in which the causes and effects of 
                climate change disproportionately impact low-income and 
                minority communities.

SEC. 4. SENSE OF CONGRESS.

    It is the sense of Congress that Congress agrees with the opinion 
of virtually the entire worldwide scientific community that--
            (1) climate change is real;
            (2) climate change is caused by human activities;
            (3) climate change has already caused devastating problems 
        in the United States and around the world;
            (4) a brief window of opportunity exists before the United 
        States and the entire planet suffer irreparable harm; and
            (5) it is imperative that the United States transform the 
        energy system of the United States away from fossil fuels and 
        toward energy efficiency and sustainable energy as rapidly as 
        possible.

SEC. 5. DEFINITION OF ADMINISTRATOR.

    In this Act, the term ``Administrator'' means the Administrator of 
the Environmental Protection Agency.

                TITLE I--ACHIEVING EMISSIONS REDUCTIONS

SEC. 101. CARBON POLLUTION FEE.

    (a) In General.--Title I of the Clean Air Act (42 U.S.C. 7401 et 
seq.) is amended by adding at the end the following:

                     ``PART E--EMISSIONS REDUCTIONS

``SEC. 194. DEFINITIONS.

    ``In this part:
            ``(1) Carbon polluting substance.--The term `carbon 
        polluting substance' means coal (including lignite and peat), 
        petroleum and any petroleum product, or natural gas that--
                    ``(A) when combusted or otherwise used, will 
                release greenhouse gas emissions; and
                    ``(B) is--
                            ``(i) extracted, manufactured, or produced 
                        in the United States; or
                            ``(ii) imported into the United States for 
                        consumption, use, or warehousing.
            ``(2) Carbon pollution-intensive good.--The term `carbon 
        pollution-intensive good' means a good that is (as identified 
        by the Administrator, by rule) iron, steel, a steel mill 
        product (including pipe and tube), aluminum, cement, glass 
        (including flat, container, and specialty glass and 
        fiberglass), pulp, paper, a chemical, or an industrial ceramic.
            ``(3) Rate of inflation.--The term `rate of inflation' 
        means the cost-of-living adjustment determined under section 
        1(f)(3) of the Internal Revenue Code of 1986 for the calendar 
        year in which the taxable year begins, determined by 
        substituting `calendar year 2017' for `calendar year 1992' in 
        subparagraph (B) of that section.
            ``(4) Substantially equivalent measure.--The term 
        `substantially equivalent measure' means a fee or other 
        regulatory requirement that imposes a cost on manufacturers of 
        carbon pollution-intensive goods located outside the United 
        States approximately equal to the cost imposed by the fee under 
        this part on manufacturers of comparable carbon pollution-
        intensive goods located in the United States.

``SEC. 195. EMISSIONS REDUCTIONS TARGETS.

    ``It is the policy of the United States that greenhouse gas 
emissions from all sectors of the United States economy should not 
exceed--
            ``(1) 5,800,000,000 tons in 2020;
            ``(2) 3,700,000,000 tons in 2030;
            ``(3) 2,500,000,000 tons in 2040; and
            ``(4) 1,260,000,000 tons in 2050.

``SEC. 196. CARBON POLLUTION FEE.

    ``(a) In General.--The Secretary of the Treasury, in consultation 
with the Administrator, shall impose on any manufacturer, producer, or 
importer of a carbon polluting substance a fee in accordance with this 
section.
    ``(b) Amount.--
            ``(1) In general.--The amount of the carbon pollution fee 
        imposed under subsection (a) on any carbon polluting substance 
        shall be assessed per ton of carbon dioxide content (including 
        carbon dioxide equivalent content of methane) of the carbon 
        polluting substance, as determined by the Secretary of the 
        Treasury, in consultation with the Administrator and the 
        Secretary of Energy.
            ``(2) Fractional part of ton.--In the case of a fraction of 
        a ton of a carbon polluting substance, the fee imposed under 
        subsection (a) shall be the same fraction of the amount of the 
        fee imposed on a whole ton of the carbon polluting substance.
            ``(3) Applicable amount for calendar years 2017 through 
        2035.--For purposes of paragraph (1), the amount of the fee for 
        the following calendar years shall be--


------------------------------------------------------------------------
                                                               Fee rate
                                                               (dollars
                         ``Fee year                           per metric
                                                                 ton)
------------------------------------------------------------------------
2017.......................................................          $15
2018.......................................................          $17
2019.......................................................          $19
2020.......................................................          $21
2021.......................................................          $24
2022.......................................................          $27
2023.......................................................          $30
2024.......................................................          $33
2025.......................................................          $36
2026.......................................................          $39
2027.......................................................          $41
2028.......................................................          $44
2029.......................................................          $47
2030.......................................................          $50
2031.......................................................          $54
2032.......................................................          $58
2033.......................................................          $63
2034.......................................................          $68
2035.......................................................         $73.
------------------------------------------------------------------------

            ``(4) Applicable amount after calendar year 2035.--For 
        purposes of paragraph (1), for each calendar year occurring 
        after calendar year 2035, the amount of the fee shall be an 
        amount equal to the sum of--
                    ``(A) the amount in effect for the preceding 
                calendar year; and
                    ``(B) the product (rounded to the nearest dollar) 
                obtained by multiplying--
                            ``(i) the amount described in subparagraph 
                        (A); and
                            ``(ii) 5 percent, plus the rate of 
                        inflation.
    ``(c) Single Imposition of Fee.--No fee shall be imposed under 
subsection (a) with respect to a carbon polluting substance if the 
person that would be liable for the fee establishes that a prior fee 
imposed under that subsection has been imposed with respect to that 
carbon polluting substance.
    ``(d) Limitations.--No fee shall be imposed against a person under 
subsection (a) if during the calendar year, in accordance with such 
regulations as the Secretary of the Treasury, in consultation with the 
Administrator, may prescribe--
            ``(1) for a calendar year before calendar year 2036, the 
        person uses a carbon polluting substance as a feedstock so that 
        the carbon associated with that carbon polluting substance will 
        not be emitted; or
            ``(2) a fee under subsection (a) was paid with respect to 
        another carbon polluting substance that is used by the person 
        in the manufacture or production of the applicable carbon 
        polluting substance.

``SEC. 197. INTERAGENCY CLIMATE COUNCIL.

    ``(a) Establishment.--There is established a council, to be known 
as the `Interagency Climate Council' (referred to in this section as 
the `Council').
    ``(b) Membership.--The Council shall be composed of--
            ``(1) the Administrator, who shall be the Chairperson;
            ``(2) the Secretary of the Treasury;
            ``(3) the Secretary of Energy;
            ``(4) the Secretary of Transportation;
            ``(5) the Secretary of Commerce;
            ``(6) the Secretary of the Interior;
            ``(7) the Secretary of Agriculture;
            ``(8) the Director of the Office of Science and Technology 
        Policy;
            ``(9) the Director of the Office of Management and Budget; 
        and
            ``(10) the Chairperson of the Council of Environmental 
        Quality.
    ``(c) Activities.--
            ``(1) Efficacy assessment.--Beginning in 2020 and every 3 
        years thereafter, the Council shall assess the efficacy of 
        Federal, State, and local actions in effect as of the date of 
        the assessment, including Federal statutory or regulatory 
        policies and policies established by the Climate Protection and 
        Justice Act of 2015, in achieving the greenhouse gas emissions 
        reduction targets described in section 195.
            ``(2) Reduction opportunities.--The Council shall identify 
        and evaluate potential greenhouse gas emissions reductions 
        opportunities in all sectors of the economy, including 
        opportunities for the promulgation under this Act of new or 
        updated regulations for stationary and mobile sources.
    ``(d) Regulations.--If the Council finds, in carrying out an 
assessment under subsection (c)(1), that the United States has not met 
any emissions reductions target described in section 195, or if there 
is substantial risk that the United States may not meet an emissions 
reduction target described in that section, the Administrator shall, 
not later than 2 years after the date of the assessment by the Council, 
promulgate final regulations under this Act to update existing 
regulations or establish new regulations relating to a sector of the 
economy identified by the Council, with sufficient stringency and 
coverage to ensure that the United States meets the emissions 
reductions target.

``SEC. 198. SAVINGS PROVISIONS.

    ``(a) In General.--For purposes of other provisions of this Act, 
nothing in this part shall--
            ``(1) affect the regulatory status of carbon dioxide or any 
        other greenhouse gas; or
            ``(2) limit regulatory authority relating to carbon dioxide 
        or any other greenhouse gas.
    ``(b) No Preemption.--Nothing in this chapter shall preempt or 
limit State or local actions to address climate change.''.
    (b) Technical Amendments.--Title IV of the Clean Air Act (relating 
to noise pollution) (42 U.S.C. 7641 et seq.) is--
            (1) amended by redesignating sections 401 through 403 as 
        sections 701 through 703, respectively; and
            (2) redesignated as title VII and moved to appear at the 
        end of that Act.

SEC. 102. CARBON FEE REBATE PROGRAM.

    (a) Definitions.--In this section:
            (1) Eligible dividend recipient.--The term ``eligible 
        dividend recipient'' includes--
                    (A) a citizen of the United States;
                    (B) a lawful permanent resident of the United 
                States;
                    (C) an individual whom the President may designate 
                as meeting the requirements for deferred action 
                described in the Department of Homeland Security 
                memorandum entitled ``Exercising Prosecutorial 
                Discretion with Respect to Individuals Who Came to the 
                United States As Children'' (dated June 15, 2012);
                    (D) an individual whom the President may designate 
                as meeting the requirements for deferred action 
                described in the Department of Homeland Security 
                memorandum entitled ``Exercising Prosecutorial 
                Discretion with Respect to Individuals Who Came to the 
                United States As Children and with Respect to Certain 
                Individuals Who Are the Parents of U.S. Citizens or 
                Permanent Residents'' (dated November 20, 2014);
                    (E) an asylee;
                    (F) a refugee; and
                    (G) any other individual designated by the 
                President.
            (2) Fund.--The term ``Fund'' means the Carbon Fee Rebate 
        Fund established by subsection (c)(1).
    (b) Office of Climate Dividend.--There is established an office 
within the Department of the Treasury, to be known as the ``Office of 
Climate Dividend'', which shall administer the distribution of carbon 
fee rebates under subsection (d).
    (c) Carbon Fee Rebate Fund.--
            (1) In general.--There is established in the Treasury a 
        fund, to be known as the ``Carbon Fee Rebate Fund''.
            (2) Deposits to fund.--For each fiscal year, there shall be 
        deposited in the Fund, amounts collected from fees imposed 
        under section 196 of the Clean Air Act.
            (3) Expenditures.--Amounts deposited in the Fund shall be 
        available without appropriation for the purposes described in 
        subsection (d).
    (d) Carbon Fee Rebate Program.--
            (1) In general.--On a quarterly basis, the Secretary of the 
        Treasury shall remit from the Fund to each eligible dividend 
        recipient a carbon fee dividend, which, except as provided in 
        paragraph (3), shall be in an amount equal to--
                    (A) the receipts from the fee imposed under section 
                196 of the Clean Air Act for the preceding quarter, 
                divided by
                    (B) the number of eligible dividend recipients on 
                the last day of the preceding quarter.
            (2) Regulations.--The Secretary of the Treasury shall 
        promulgate regulations governing the dispersal of funds under 
        paragraph (1), including--
                    (A) procedures for the identification and 
                maintenance of an accurate list of eligible dividend 
                recipients;
                    (B) the disbursement of funds to individuals under 
                the age of 18 years; and
                    (C) the use of electronic means for transfers of 
                funds, to the maximum extent practicable.
            (3) Phase out of carbon tax dividend for high income 
        households.--
                    (A) In general.--The amount of the carbon fee 
                dividend for any eligible dividend recipient under 
                paragraph (1) (determined without regard to this 
                paragraph) shall be reduced by the amount determined 
                under subparagraph (B).
                    (B) Amount of reduction.--The amount determined 
                under this subparagraph is the amount which bears the 
                same ratio to the amount which would be paid under 
                paragraph (1) as--
                            (i) the excess of--
                                    (I) the eligible individual's 
                                adjusted gross income for the most 
                                recent taxable year, over
                                    (II) the $100,000, bears to
                            (ii) the phaseout range.
                    (C) Phaseout range.--For purposes of subparagraph 
                (B), the phaseout range is--
                            (i) in the case of an eligible taxpayer who 
                        filed a joint return, $10,000,
                            (ii) in the case of an eligible taxpayer 
                        who filed as a head of household, $8,000, and
                            (iii) in the case of any other eligible 
                        taxpayer, $5,000.
                    (D) Inflation adjustment.--
                            (i) In general.--In the case of any 
                        calendar year beginning after 2017, the 
                        $100,000 amount in subparagraph (B)(i)(II) 
                        shall be increased by an amount equal to--
                                    (I) such dollar amount, multiplied 
                                by
                                    (II) the cost-of-living adjustment 
                                determined under section 1(f)(3) of the 
                                Internal Revenue Code of 1986, by 
                                substituting ``2016'' for ``1992'' in 
                                subparagraph (B) thereof.
                            (ii) Inflation adjustment.--The amount of 
                        any increase under clause (i) shall be rounded 
                        to the nearest multiple of $5,000.
                    (E) Definitions.--Any term used in this paragraph 
                which is also used in the Internal Revenue Code of 1986 
                shall have the meaning given such term under such Code.

 TITLE II--PROTECTING VULNERABLE PEOPLE OF THE UNITED STATES FROM THE 
                       IMPACTS OF CLIMATE CHANGE

              Subtitle A--Ensuring Climate Justice for All

SEC. 201. FINDINGS.

    Congress finds that--
            (1) minority and low-income communities in the United 
        States are disproportionately affected by the causes of climate 
        change because--
                    (A) according to a 2012 study by the National 
                Association for the Advancement of Colored People--
                            (i) the nearly 6,000,000 people in the 
                        United States who live within 3 miles of a coal 
                        power plant have an average per capita annual 
                        income of $18,400, which is lower than the 
                        national average of $21,587; and
                            (ii) among the people who live within 3 
                        miles of a coal power plant, 39 percent are 
                        people of color, while people of color comprise 
                        only 36 percent of the total population of the 
                        United States;
                    (B) 82.3 percent of Native Americans and Alaska 
                Natives live within 50 miles of major sources of NO and 
                NO<INF>2</INF> and 65.8 percent of Native Americans and 
                Alaska Natives live within 25 miles of PM-10 point 
                sources; and
                    (C) the Centers for Disease Control and Prevention 
                has found that--
                            (i) African-Americans are 2 to 3 times more 
                        likely to die from asthma than any other racial 
                        or ethnic group;
                            (ii) African-American and Hispanic children 
                        visit emergency departments for asthma care 
                        more often than Caucasian children;
                            (iii) more than 1 in 4 African-American 
                        adults cannot afford routine doctor visits;
                            (iv) nearly 1 in 7 Hispanic adults cannot 
                        afford routine doctor visits;
                            (v) Hispanic individuals are 30 percent 
                        more likely to visit the hospital for asthma; 
                        and
                            (vi) Hispanic children are 40 percent more 
                        likely to die from asthma than Caucasian 
                        children; and
            (2) minority and low-income people of the United States are 
        disproportionately affected by the impacts of climate change 
        because--
                    (A) hurricanes disproportionately impact low-income 
                and minority communities, and regarding Hurricane 
                Katrina in 2005--
                            (i) after the hurricane, people of color 
                        were much less likely to return to the homes in 
                        New Orleans from which those individuals were 
                        evacuated;
                            (ii) according to the Bureau of Labor and 
                        Statistics, only 54 percent of African-
                        Americans who were evacuated during Hurricane 
                        Katrina returned to New Orleans, compared to 82 
                        percent of Caucasian evacuees;
                            (iii) the damage occurred in areas--
                                    (I) with populations that were 45.8 
                                percent African-American, compared to 
                                undamaged areas with populations that 
                                were 26.4 percent African-American; and
                                    (II) in which 20.9 percent of the 
                                households had incomes below the 
                                poverty line, compared to undamaged 
                                areas in which 15.3 percent of the 
                                households had incomes below the 
                                poverty line;
                            (iv) African-Americans are estimated to 
                        have accounted for approximately 44 percent of 
                        the Hurricane Katrina victims;
                            (v) \1/5\ of the individuals displaced by 
                        Hurricane Katrina were likely to have been 
                        poor, and 30 percent of those individuals had 
                        incomes that were below 150 percent of the 
                        poverty line; and
                            (vi) nearly \1/2\ of all individuals aged 
                        65 or older who live in flooded or damage-
                        affected areas report having a disability, and 
                        26 percent of those individuals report having 2 
                        or more types of disabilities;
                    (B) extreme weather disproportionately impacts low-
                income and minority communities, and regarding 
                Hurricane Sandy in 2012--
                            (i) 80,000 residents living in low-income 
                        housing lost power, heat, and hot water for 
                        more than 2 weeks in the middle of winter;
                            (ii) 1 in 5 public housing units and almost 
                        1 in 7 affordable rental housing units were 
                        damaged;
                            (iii) in contrast to the effects of 
                        Hurricane Sandy on low-income communities, Wall 
                        Street went back to business with the lights on 
                        and stock tickers running only 2 days after 
                        Hurricane Sandy hit New York City;
                            (iv) 55 percent of the victims of Hurricane 
                        Sandy in New York City were very-low-income 
                        renters, with incomes that averaged $18,000 per 
                        year;
                            (v) 67 percent of recipients of assistance 
                        from the Federal Emergency Management Agency 
                        were low-income individuals; and
                            (vi) the median rent paid by households 
                        affected by Hurricane Sandy has increased $200 
                        per month since the date Hurricane Sandy hit 
                        New York City;
                    (C) heat waves disproportionately impact low-income 
                and minority communities because--
                            (i) African-Americans are 52 percent more 
                        likely than Caucasians to live in dense, urban 
                        neighborhoods that may be 22 degrees Fahrenheit 
                        hotter than rural neighborhoods, which 
                        increases the risk of health complications for 
                        African-Americans, including death from heat-
                        related complications;
                            (ii) although access to air conditioning 
                        lowers the risk of mortality from heat-related 
                        health complications by 80 percent, 1 in 5 low-
                        income households has no access to air 
                        conditioning;
                            (iii) in 2011 and 2012, drought and heat 
                        waves affected communities with median incomes 
                        that were 5 percent lower than the national 
                        average;
                            (iv) heat waves--
                                    (I) cause more deaths in the United 
                                States than all other weather events 
                                combined; and
                                    (II) are particularly dangerous for 
                                Hispanic people, who are 
                                disproportionately likely to have low 
                                incomes;
                            (v) the number of unhealthy ``red alert'' 
                        air quality days in more than 12 cities in the 
                        eastern United States--
                                    (I) will likely double due to 
                                increased ozone formation caused by 
                                rising temperatures; and
                                    (II) will increase rates of asthma 
                                complications for Hispanic people, who 
                                are also at risk for cardiovascular 
                                conditions; and
                            (vi) by the end of the 21st century, 
                        climate change is projected to triple the 
                        average number of extremely hot days in the 
                        United States, the consequences of which--
                                    (I) include--
                                            (aa) thousands of premature 
                                        deaths annually by 2100;
                                            (bb) nearly 2,000,000,000 
                                        lost labor hours per year; and
                                            (cc) over $100,000,000,000 
                                        in lost wages annually; and
                                    (II) disproportionately burden 
                                Hispanic people, who comprise--
                                            (aa) 42 percent of 
                                        construction laborers; and
                                            (bb) approximately 75 
                                        percent of agricultural field 
                                        workers;
                    (D) floods disproportionately impact low-income and 
                minority communities, for example--
                            (i) in 2011 and 2012, floods affected 
                        communities with median incomes that were 14 
                        percent lower than the national average; and
                            (ii) in June 2011, extreme Missouri River 
                        rain runoff hit record highs and caused 
                        $1,500,000,000 in damages, including damages in 
                        communities in Arkansas and Mississippi with 
                        median incomes that were 23 percent and 30 
                        percent lower, respectively, than the national 
                        average;
                    (E) tornadoes disproportionately impact low-income 
                and minority communities--
                            (i) because even though mobile homes 
                        comprise only 8 percent of housing in the 
                        United States, \1/2\ of all fatalities during 
                        tornadoes are fatalities of individuals who 
                        reside in mobile homes; and
                            (ii) with the deadliest tornado in the 
                        history of the United States having occurred in 
                        Joplin, Missouri, a community with--
                                    (I) a median income that is 29 
                                percent lower than the national 
                                average; and
                                    (II) a 20-percent poverty rate;
                    (F) wildfires disproportionately impact low-income 
                and minority communities, for example--
                            (i) the Ash Creek Fire devastated an Indian 
                        reservation on which--
                                    (I) \1/3\ of the families live 
                                below the poverty line; and
                                    (II) \2/3\ of the adults are 
                                unemployed; and
                            (ii) the most destructive wildfire in Texas 
                        history destroyed almost 1,700 homes in 
                        Bastrop, a community with 14 percent of 
                        households at, or below, the poverty line;
                    (G) droughts disproportionately impact low-income 
                and minority communities because--
                            (i) droughts are expected to increase the 
                        prices of fruits and vegetables by roughly 3 
                        percent in 2015, which increases the economic 
                        burden of nutrition on low-income families;
                            (ii) in California, farmworkers, of whom 92 
                        percent identify as Latino and \3/4\ earn less 
                        than 200 percent of the Federal poverty level, 
                        are projected to experience significant 
                        employment difficulties related to drought;
                            (iii) all of the Indian tribes in the State 
                        of Arizona and several Indian tribes in the 
                        States of New Mexico, Colorado, Utah, Nevada, 
                        and California have Indian reservations (as 
                        defined in section 3 of the Indian Financing 
                        Act of 1974 (25 U.S.C. 1452)) within the 
                        Colorado River watershed, which is predicted to 
                        be reduced by approximately 45 percent by 2050; 
                        and
                            (iv) approximately 30 percent of the people 
                        of the Navajo Nation--
                                    (I) are not served by municipal 
                                water systems; and
                                    (II) risk severe water shortages 
                                due to worsening droughts caused by 
                                climate change; and
                    (H)(i) sea level rise and erosion 
                disproportionately impact low-income and minority 
                communities;
                    (ii) in 2008, the Comptroller General of the United 
                States found that more than 86 percent of the 216 
                Alaska Native villages are already subject to flooding 
                and erosion caused by increasing temperatures due to 
                climate change; and
                    (iii) the land under the village of Newtok, Alaska, 
                is eroding at the rate of 72 feet per year, which may 
                require the village to move.

SEC. 202. DEFINITIONS.

    In this subtitle:
            (1) Climate impacts.--The term ``climate impacts''--
                    (A) means the damage to the health of human and 
                natural environments, habitats, and the economy caused 
                by factors including erratic climate and weather 
                extremes due to excess carbon pollution in the 
                atmosphere; and
                    (B) includes--
                            (i) the increased frequency of--
                                    (I) extreme weather such as 
                                hurricanes, tornadoes, and snow storms;
                                    (II) floods;
                                    (III) wildfires;
                                    (IV) droughts;
                                    (V) disease; and
                                    (VI) heat waves;
                            (ii) sea level rise;
                            (iii) ocean acidification; and
                            (iv) altered--
                                    (I) ecosystems and habitats; and
                                    (II) soil health and crop 
                                availability.
            (2) Climate justice resiliency project.--The term ``climate 
        justice resiliency project'' means a project, plan, fund, or 
        other proposal to mitigate climate impacts on a climate 
        resiliency hotspot community.
            (3) Climate resiliency hotspot community.--The term 
        ``climate resiliency hotspot community'' means a community that 
        is--
                    (A) likely to experience climate impacts;
                    (B) traditionally unable to afford the management 
                or mitigation of climate impacts; and
                    (C) likely to receive a high score in the report 
                described in section 204(h).
            (4) Council.--The term ``Council'' means the Climate 
        Justice Resiliency Council established by section 203(a).
            (5) Eligible entity.--The term ``eligible entity'' means--
                    (A) a State;
                    (B) an Indian tribe;
                    (C) a territory;
                    (D) a municipality;
                    (E) a county;
                    (F) a locality;
                    (G) a native Hawaiian community; and
                    (H) a nonprofit community organization.
            (6) 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. 450b).

SEC. 203. CLIMATE JUSTICE RESILIENCY COUNCIL.

    (a) Establishment.--There is established within the Environmental 
Protection Agency, a council to be known as the ``Climate Justice 
Resiliency Council''.
    (b) Membership.--The Council shall be composed of--
            (1) the Administrator, who shall serve as the Chairperson 
        of the Council;
            (2) the Secretary of Health and Human Services;
            (3) the Secretary of Housing and Urban Development;
            (4) the Secretary of Agriculture;
            (5) the Secretary of Transportation;
            (6) the Director of the Office of Science and Technology 
        Policy;
            (7) the Secretary of Energy;
            (8) the Secretary of Labor; and
            (9) the Secretary of the Interior.
    (c) Activities.--The Administrator, in consultation with the 
Council, may promulgate regulations to carry out the Climate Justice 
Resiliency Grant Program under section 204.

SEC. 204. CLIMATE JUSTICE RESILIENCY GRANT PROGRAM.

    (a) In General.--The Administrator, in consultation with the 
Council, shall establish a Climate Justice Resiliency Grant Program to 
provide block grants to eligible entities with the goal of promoting 
climate justice resiliency projects described in subsection (f).
    (b) Environmental Justice Study.--
            (1) In general.--To facilitate administration of grants 
        under this section, not later than 1 year after the date of 
        enactment of this Act, the Council shall conduct a county-by-
        county or equivalent regional or tribal environmental justice 
        study to identify climate resiliency hotspot communities.
            (2) Requirements.--The study described in paragraph (1)--
                    (A) shall be conducted in consultation with--
                            (i) climate resiliency hotspot communities; 
                        and
                            (ii) communities that are likely to receive 
                        a high score in the report described in 
                        subsection (h);
                    (B) shall identify localities based on geographical 
                proximity to climate impacts, socioeconomic, public 
                health, and environmental hazard criteria; and
                    (C) may include an area--
                            (i) that is disproportionately affected by 
                        climate impacts or other hazards that lead to 
                        negative public health effects, exposure, or 
                        environmental degradation;
                            (ii) with a concentration of individuals 
                        who have--
                                    (I) a low income;
                                    (II) high unemployment;
                                    (III) a low level of homeownership;
                                    (IV) a high rent burden;
                                    (V) a low level of educational 
                                attainment; or
                                    (VI) a disproportionate health 
                                burden; or
                            (iii) with a climate-sensitive population.
    (c) Eligibility for Grant Funds.--
            (1) Multi-year plan.--
                    (A) In general.--To be eligible to receive a grant 
                under this section, an eligible entity shall submit to 
                the Council a plan for a climate justice resiliency 
                investment for not less than 5 years that describes 
                climate justice resiliency projects to be prioritized 
                based on the study carried out under subsection (b).
                    (B) Contents.--The multi-year plan described in 
                subparagraph (A) shall include--
                            (i) a description of--
                                    (I) the proposed climate justice 
                                resiliency project; and
                                    (II) the climate resiliency hotspot 
                                communities intended to benefit from 
                                the proposed climate justice resiliency 
                                project;
                            (ii) the expected climate resiliency 
                        improvement benefits; and
                            (iii) a funding level request.
    (d) Application Process.--The Council shall establish application 
requirements for participation in the Climate Justice Resiliency Grant 
Program.
    (e) Grant Funds.--The Administrator, in consultation with the 
Council, shall award to eligible entities grant funds commensurate with 
the duration and scope of the proposed climate justice resiliency 
project.
    (f) Climate Justice Resiliency Projects.--
            (1) In general.--An eligible entity may use grant funds 
        made available in accordance with subsection (a) for a climate 
        justice resiliency project, including--
                    (A) a project relating to--
                            (i) climate impact disaster adaptation and 
                        planning;
                            (ii) wetland restoration;
                            (iii) mine reclamation;
                            (iv) a seawall, levee, or other coastal 
                        flood mitigation effort;
                            (v) the development of--
                                    (I) a community evacuation plan;
                                    (II) resources for safe and 
                                complete evacuation;
                                    (III) a community plan for 
                                returning after an evacuation; or
                                    (IV) a plan and funding for the 
                                relocation of Indian tribes in the 
                                event of a climate impact disaster;
                            (vi) brownfields redevelopment;
                            (vii) rural water and waste disposal;
                            (viii) lead and asbestos hazard reduction 
                        in homes with high flood, hurricane, or sea 
                        level rise exposure risk;
                            (ix) flood mapping, planning, and 
                        adaptation;
                            (x) public transportation;
                            (xi) vehicle traffic emissions exposure 
                        reduction;
                            (xii) a road or bridge that facilitates 
                        disaster evacuation;
                            (xiii) a local food cooperative or market;
                            (xiv) public sewage;
                            (xv) broadband Internet;
                            (xvi) a microgrid;
                            (xvii) air conditioning units for low-
                        income housing; or
                            (xviii) emergency communication 
                        infrastructure;
                    (B) a fund established to assist evacuees to return 
                home after an evacuation; or
                    (C) a disaster loan.
            (2) Exclusions.--An eligible entity shall not use funds 
        made available in accordance with subsection (a) for an 
        activity relating to--
                    (A) the generation of electricity;
                    (B) carbon capture or sequestration; or
                    (C) a highway.
    (g) Cost-Sharing Requirement.--The Council--
            (1) shall require eligible entities that receive funds 
        under this section to enter into a cost-sharing agreement for, 
        at a minimum, 20 percent of the total cost of the proposed 
        climate justice resiliency project; and
            (2) may, at the discretion of the Council, waive the cost-
        sharing requirement described in paragraph (1).
    (h) Report to Congress.--Not later than 180 days after the date of 
enactment of this Act, the Council shall submit to the appropriate 
committees of Congress a report that describes--
            (1) in detail the manner in which this section has been 
        carried out; and
            (2) the results of the study carried out under subsection 
        (b), including a score for each locality studied based on the 
        level of climate impacts experienced by the locality.
    (i) Funding.--Notwithstanding any other provision of law, on 
October 1, 2016, and on each October 1 thereafter, out of any funds in 
the Treasury not otherwise appropriated, the Secretary of the Treasury 
shall transfer to the Administrator for the cost of grants to carry out 
this section $20,000,000,000, to remain available until expended.

SEC. 205. LOW-INCOME AND MUNICIPAL ENERGY EFFICIENCY.

    (a) Weatherization Assistance Program.--
            (1) In general.--Part A of title IV of the Energy 
        Conservation and Production Act is amended by striking section 
        422 (42 U.S.C. 6872) and inserting the following:

``SEC. 422. FUNDING.

    ``(a) In General.--Notwithstanding any other provision of law, on 
October 1, 2016, and on each October 1 thereafter, out of any funds in 
the Treasury not otherwise appropriated, the Secretary of the Treasury 
shall transfer to the Secretary for the cost of grants to carry out 
this part $1,500,000,000, to remain available until expended.
    ``(b) Receipt and Acceptance.--The Secretary shall be entitled to 
receive, shall accept, and shall use to carry out this part the funds 
transferred under subsection (a), without further appropriation.''.
            (2) Technical correction.--Section 415 of the Energy 
        Conservation and Production Act (42 U.S.C. 6865) is amended, in 
        subsections (d) and (e)(1)(A), by striking ``section 422(b)'' 
        each place it appears and inserting ``section 422''.
    (b) Energy Efficiency and Conservation Block Grant Program.--
Section 548 of the Energy Independence and Security Act of 2007 (42 
U.S.C. 17158) is amended by striking subsection (a) and inserting the 
following:
    ``(a) In General.--
            ``(1) Grants.--Notwithstanding any other provision of law, 
        on October 1, 2016, and on each October 1 thereafter, out of 
        any funds in the Treasury not otherwise appropriated, the 
        Secretary of the Treasury shall transfer to the Secretary for 
        the cost of grants to carry out this section $30,000,000, to 
        remain available until expended.
            ``(2) Receipt and acceptance.--The Secretary shall be 
        entitled to receive, shall accept, and shall use to carry out 
        this section the funds transferred under paragraph (1), without 
        further appropriation.''.

  Subtitle B--Strengthening Environmental Protections for Communities 
             Disproportionately Impacted by Climate Change

SEC. 211. ENDING TOXIC AIR POLLUTION FROM INCINERATORS.

    Section 129(g) of the Clean Air Act (42 U.S.C. 7429(g)) is 
amended--
            (1) by redesignating paragraphs (1), (2), (4), (5), and (6) 
        as paragraphs (7), (5), (1), (4), and (2), respectively;
            (2) by moving the paragraphs so as to appear in 
        alphabetical order;
            (3) in paragraph (2) (as so redesignated), by striking 
        ``(2)'' and all that follows through ``have the meanings'' and 
        inserting the following:
            ``(2) Medical waste.--The term `medical waste' shall have 
        the meaning''; and
            (4) by inserting after paragraph (5) (as so redesignated) 
        the following:
            ``(6) Solid waste.--
                    ``(A) In general.--The term `solid waste' 
                includes--
                            ``(i) whole, shredded, or otherwise 
                        processed tires;
                            ``(ii) tire-derived fuel;
                            ``(iii) hogged fuel, including fuel from 
                        wood pallets;
                            ``(iv) paper;
                            ``(v) paper or cardboard recycling 
                        residuals, including--
                                    ``(I) paper-derived fuel cubes;
                                    ``(II) paper fines; and
                                    ``(III) paper and cardboard 
                                rejects;
                            ``(vi) construction and demolition debris;
                            ``(vii) animal--
                                    ``(I) manure; and
                                    ``(II) bedding material;
                            ``(viii) any plastic;
                            ``(ix) non-hazardous solvents;
                            ``(x) residue from wet and dry pollution 
                        control systems;
                            ``(xi) automotive shredder residue or 
                        fluff;
                            ``(xii) wood, including railroad ties and 
                        utility poles, that is--
                                    ``(I) creosote-treated;
                                    ``(II) borate-treated;
                                    ``(III) sap-stained; or
                                    ``(IV) otherwise treated;
                            ``(xiii) any material derived or processed 
                        from any material described in clauses (i) 
                        through (xii); and
                            ``(xiv) any material derived or processed 
                        from municipal waste.
                    ``(B) Regulatory definition.--The Administrator 
                shall ensure that all regulations of the Administrator 
                define the term `solid waste' in a manner consistent 
                with subparagraph (A).''.

    TITLE III--PROTECTING AND ENHANCING UNITED STATES MANUFACTURING

SEC. 301. CARBON EQUIVALENCY FEE BORDER ADJUSTMENTS FOR CARBON 
              POLLUTION-INTENSIVE GOODS.

    (a) In General.--There is imposed on each person importing a carbon 
pollution-intensive good into the United States a fee in an amount that 
is equal to the cost that a producer of a good that is comparable to 
the carbon pollution-intensive good (as determined by the Secretary of 
the Treasury, in consultation with the Administrator, the Secretary of 
State, and the Secretary of Energy) and is produced in the United 
States incurs as a result of--
            (1) any fee imposed under section 196 of the Clean Air Act, 
        as added by section 101 of this Act--
                    (A) paid by the producer of the comparable good 
                with respect to a carbon-polluting substance used in 
                the production of the comparable good; or
                    (B) paid by a person that imported a carbon-
                polluting substance used in the production of the 
                comparable good; and
            (2) any fee imposed under this subsection paid by a person 
        that imported a carbon pollution-intensive good that was used 
        in the production of the comparable good.
    (b) Determination of Fee Amount.--
            (1) In general.--In determining the amount of the fee 
        imposed under subsection (a) with respect to a carbon 
        pollution-intensive good, the Secretary of the Treasury shall--
                    (A) determine the amount of the fee annually; and
                    (B) determine different amounts for such goods--
                            (i) based on class of good and country of 
                        origin; and
                            (ii) taking into account the quantity of 
                        greenhouse gas emissions released during the 
                        process of manufacturing such goods and 
                        transporting such goods from the country of 
                        origin to the United States.
            (2) Petitions for adjustment.--The Secretary of the 
        Treasury shall establish a process for petitioning for 
        adjustment of the fee imposed under subsection (a).
    (c) Termination.--The fee imposed under subsection (a) shall cease 
to apply with respect to goods imported from a country at such time as, 
and to the extent that--
            (1)(A) in the case of a country that adopts and ratifies an 
        international agreement requiring countries that emit 
        greenhouse gases and produce carbon pollution-intensive goods 
        for exportation to adopt substantially equivalent measures, 
        that agreement takes effect; or
            (B) in the case of a country that has not adopted and 
        ratified such an agreement, the country has implemented 
        substantially equivalent measures, as determined by the 
        President; and
            (2) the Secretary of the Treasury determines that the 
        application of the fee with respect to imports from that 
        country is no longer appropriate.
    (d) Regulations.--The Secretary of the Treasury, in consultation 
with the Administrator, the Secretary of Commerce, and the Secretary of 
Energy, shall prescribe such regulations as are necessary to carry out 
this section.
    (e) Definitions.--In this section, the terms ``carbon pollution-
intensive good'' and ``substantially equivalent measure'' have the 
meanings given those terms in section 194 of the Clean Air Act, as 
added by section 101 of this Act.

SEC. 302. CARBON EQUIVALENCY FEE FUND.

    (a) Establishment.--There is established in the Treasury a fund, to 
be known as the ``Carbon Equivalency Fee Fund'' (in this section 
referred to as the ``Fund'').
    (b) Deposits to Fund.--In each fiscal year, there shall be 
deposited in the Fund amounts collected from fees imposed under section 
301(a).
    (c) Expenditures.--Amounts deposited in the Fund shall be available 
without further appropriation in a fiscal year, as follows:
            (1) The lesser of $150,000,000, or 5 percent of amounts in 
        the Fund, shall be made available to the Secretary of Commerce 
        for the Hollings Manufacturing Extension Partnership under 
        section 25 of the National Institute of Standards and 
        Technology Act (15 U.S.C. 278k).
            (2) Twenty percent of such amounts shall be made available 
        to the Secretary of Energy, to be used, in consultation with 
        the Secretary of Commerce, for activities of the Advanced 
        Manufacturing Office of the Office of Energy Efficiency and 
        Renewable Energy.
            (3) Thirty percent of such amounts shall be made available 
        to the Secretary of Energy for the State Energy Program, to be 
        used exclusively by energy offices of States and territories to 
        promote energy efficiency projects at industrial facilities 
        within the jurisdiction of such States and territories.
            (4) Any of such amounts remaining after distributions under 
        paragraphs (1), (2), and (3) shall be made available to the 
        Secretary of Energy for industrial energy efficiency programs 
        authorized under part E of the Energy Policy and Conservation 
        Act (42 U.S.C. 6341 et seq.) or subtitle D of title IV of the 
        Energy Independence and Security Act of 2007 (Public Law 110-
        140; 121 Stat. 1623).

   TITLE IV--PROTECTING AGRICULTURE AND ENHANCING FARM OPPORTUNITIES

SEC. 401. RURAL ENERGY FOR AMERICA PROGRAM.

    Section 9007(g) of the Farm Security and Rural Investment Act of 
2002 (7 U.S.C. 8107(g)) is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (D), by striking ``and'' at the 
                end;
                    (B) in subparagraph (E), by striking ``year 2014 
                and each fiscal year thereafter.'' and inserting 
                ``years 2014 and 2015; and''; and
                    (C) by adding at the end the following:
                    ``(F) $500,000,000 for fiscal year 2016 and each 
                fiscal year thereafter.'';
            (2) by redesignating paragraph (3) as paragraph (4); and
            (3) by inserting after paragraph (2) the following:
            ``(3) Biodigester funding.--Of the funds made available for 
        each fiscal year under paragraph (1)(F), not less than 
        $30,000,000 shall be used to support the deployment of 
        biodigesters--
                    ``(A) as part of a manure management strategy to 
                reduce methane emissions; and
                    ``(B) in a manner that includes safeguards to 
                maintain or improve local air quality.''.

SEC. 402. SOIL QUALITY IMPROVEMENT.

    Chapter 2 of subtitle D of title XII of the Food Security Act of 
1985 (16 U.S.C. 3838 et seq.) is amended by adding at the end the 
following:

            ``Subchapter C--Soil Quality Improvement Program

``SEC. 1238H. SOIL QUALITY IMPROVEMENT PROGRAM.

    ``(a) No-Till Farm Equipment Grant and Loan Program.--
            ``(1) In general.--The Secretary shall establish, in the 
        Natural Resources Conservation Service, a program to provide 
        grants and loans to agricultural producers with the goal, not 
        later than January 1, 2026, of increasing to 50 percent the 
        total percent of farmed acres in the United States under 
        continuous no-till cultivation.
            ``(2) Grants.--The Secretary shall use not less than 20 
        percent of the funds made available for the program established 
        under paragraph (1) to make grants.
            ``(3) Purchase or lease of equipment.--An agricultural 
        producer may use funds made available under this section to 
        finance or otherwise incentivize the purchase or lease of 
        equipment necessary to carry out continuous no-till 
        cultivation, as determined by the Secretary.
            ``(4) Education and outreach.--In establishing the program 
        under this section, the Secretary shall include an education 
        and outreach program, carried out by the Secretary in 
        coordination with--
                    ``(A) State and local farm agencies;
                    ``(B) institutions of higher education;
                    ``(C) the National Institute of Food and 
                Agriculture;
                    ``(D) the National Association of Conservation 
                Districts;
                    ``(E) the Soil and Water Conservation Society; and
                    ``(F) the Agricultural Tri-Societies.
    ``(b) Report on Soil Carbon Uptake.--Not later than 1 year after 
the date of enactment of this subchapter, the Secretary shall publish a 
report that includes--
            ``(1) methodologies and protocols for tracking practices 
        (including conservation tillage, continuous no-till 
        cultivation, and the use of cover crops) that increase the 
        uptake of carbon into soils, including--
                    ``(A) the use of satellite-based and other remote 
                sensing technologies; and
                    ``(B) methods for monitoring net carbon transfer 
                rates between soils and the atmosphere, including 
                biogeochemical process models; and
            ``(2) an assessment of--
                    ``(A) carbon stocks in United States soils as of 
                the date of the report;
                    ``(B) the potential for United States soils as a 
                reservoir for carbon;
                    ``(C) the net mass transfer rate of carbon between 
                soils and the atmosphere on agricultural land and 
                rangeland, including--
                            ``(i) conservation tillage land;
                            ``(ii) no-till cultivated land; and
                            ``(iii) land on which cover crops are used 
                        in rotation; and
                    ``(D) rangeland management practices that increase 
                soil carbon sequestration.
    ``(c) Environmental Quality Incentives Program.--The Chief of the 
Natural Resources Conservation Service shall carry out a soil carbon 
uptake initiative within the environmental quality incentives program 
established under chapter 4 of this subtitle to foster the adoption and 
sustained use of practices that increase the amount and the rate of 
carbon uptake in soils.
    ``(d) Funding.--Of the funds of the Commodity Credit Corporation, 
the Secretary shall use to carry out this section $300,000,000 for 
fiscal year 2016 and each fiscal year thereafter, to remain available 
until expended.''.

SEC. 403. NITROUS OXIDE EMISSIONS REDUCTIONS.

    (a) Findings.--Congress finds that--
            (1) fertilizer is a significant cost input in many 
        agricultural operations;
            (2) opportunities exist for agricultural producers--
                    (A) to reduce the amount of fertilizer inputs; and
                    (B) to increase the efficiency of fertilizer use 
                through the development of more effective fertilizer 
                application protocols that maximize the uptake of 
                fertilizer by crops while maintaining or increasing 
                yields; and
            (3) improving the application of nitrogen fertilizers at 
        the correct rate, in the correct manner, at the correct time, 
        and in the correct place will provide significant benefits to 
        the environment, including reductions of--
                    (A) nitrogen runoff, which will improve water 
                quality; and
                    (B) emissions of nitrous oxide, a powerful 
                greenhouse gas associated with climate change.
    (b) Nitrous Oxide Emissions Reductions.--Chapter 5 of subtitle D of 
title XII of the Food Security Act of 1985 (16 U.S.C. 3839bb et seq.) 
is amended by adding at the end the following:

``SEC. 1240S. NITROUS OXIDE EMISSIONS REDUCTIONS.

    ``(a) Agricultural Research Data.--
            ``(1) Federally funded research data.--
                    ``(A) In general.--Not later than 1 year after the 
                date of enactment of this section, the Secretary shall 
                make available all relevant data relating to fertilizer 
                application in a format that is--
                            ``(i) aggregated so as not to divulge 
                        proprietary or confidential business 
                        information; and
                            ``(ii) searchable and accessible to the 
                        public, including, to the maximum extent 
                        possible, all federally funded research data, 
                        including data of--
                                    ``(I) the Department of 
                                Agriculture; and
                                    ``(II) land-grant colleges and 
                                universities (as defined in section 
                                1404 of the National Agricultural 
                                Research, Extension, and Teaching 
                                Policy Act of 1977 (7 U.S.C. 3103)).
                    ``(B) Exceptions.--Subparagraph (A) shall not apply 
                to the release of data or information in a format that 
                may divulge proprietary or confidential business 
                information.
            ``(2) Non-federally funded research data.--The Secretary 
        shall develop incentives to encourage the sharing of non-
        federally funded research data relating to fertilizer 
        application, including data from--
                    ``(A) research funded through a State program; and
                    ``(B) independent or privately held research.
    ``(b) Nitrogen Uptake Pilot Program.--
            ``(1) In general.--The Secretary shall establish and carry 
        out a 5-year pilot program for the development and optimization 
        of nitrogen fertilizer application rates, timing, location, and 
        formulation for--
                    ``(A) corn;
                    ``(B) soybeans;
                    ``(C) wheat;
                    ``(D) barley;
                    ``(E) cotton;
                    ``(F) oats;
                    ``(G) sorghum;
                    ``(H) rice; and
                    ``(I) potatoes.
            ``(2) Requirements.--The pilot program described in 
        paragraph (1) shall--
                    ``(A) consist of projects in a diverse range of--
                            ``(i) geographies;
                            ``(ii) soil types;
                            ``(iii) drainage conditions;
                            ``(iv) tillage practices; and
                            ``(v) climatic conditions; and
                    ``(B) consider--
                            ``(i) the effect of crop rotation;
                            ``(ii) the use of cover crops;
                            ``(iii) the use of soil amendments; and
                            ``(iv) any other factor that the Secretary 
                        determines to be appropriate--
                                    ``(I) to enhance the optimization 
                                of fertilizer application practices 
                                that reduce the generation of nitrous 
                                oxide and leached nitrogen; and
                                    ``(II) to support high agricultural 
                                yields.
    ``(c) Environmental Quality Incentives Program.--The Chief of the 
Natural Resources Conservation Service shall carry out a nitrous oxide 
reduction initiative within the environmental quality incentives 
program established under chapter 4 of this subtitle to foster the 
adoption and continued use of fertilizer application protocols that 
reduce the production of nitrous oxide associated with the use of 
nitrogen fertilizer.
    ``(d) Funding.--Of the funds of the Commodity Credit Corporation, 
the Secretary shall use to carry out this section $150,000,000 for 
fiscal year 2016 and each fiscal year thereafter, to remain available 
until expended.''.

                   TITLE V--WHOLESALE DEMAND RESPONSE

SEC. 501. WHOLESALE DEMAND RESPONSE.

    (a) Definitions.--Section 3 of the Federal Power Act (16 U.S.C. 
796) is amended--
            (1) in paragraph (17)(C)--
                    (A) by indenting appropriately; and
                    (B) by inserting ``(including a demand response 
                energy resource in any State in which a State 
                regulatory authority or nonregulated electric utility 
                determines not to establish standards in accordance 
                with paragraph (20) of section 111(d) of the Public 
                Utility Regulatory Policies Act of 1978 (16 U.S.C. 
                2621(d)))'' before ``that the Commission determines'';
            (2) in paragraph (18)(B)--
                    (A) by indenting appropriately; and
                    (B) by inserting ``(including a demand response 
                energy resource in any State in which a State 
                regulatory authority or nonregulated electric utility 
                determines not to establish standards in accordance 
                with paragraph (20) of section 111(d) of the Public 
                Utility Regulatory Policies Act of 1978 (16 U.S.C. 
                2621(d)))'' before ``that the Commission determines''; 
                and
            (3) by adding at the end the following:
            ``(30) Aggregator.--The term `aggregator' means a wholesale 
        buyer or broker of electric utility service who packages the 
        electric utility service for sale to a local distribution 
        utility.
            ``(31) Demand response energy resource.--The term `demand 
        response energy resource' means a resource bid into an 
        organized wholesale market or sold to an electricity utility 
        service provider that includes--
                    ``(A) a direct load control program that provides 
                the ability for power companies to cycle air 
                conditioners and water heaters on and off during 
                periods of peak demand in exchange for a financial 
                incentive and lower electric bills; or
                    ``(B) time-of-use pricing that--
                            ``(i) may account for locational benefit;
                            ``(ii) is provided on an unbundled basis 
                        after--
                                    ``(I) accounting for the 2-way 
                                valuation of time-of-use rates; and
                                    ``(II) progressing to real-time 
                                pricing; and
                            ``(iii) is provided for--
                                    ``(I) energy sold to an electric 
                                utility;
                                    ``(II) energy purchased from an 
                                electric utility;
                                    ``(III) capacity;
                                    ``(IV) energy conservation;
                                    ``(V) demand-side management or 
                                demand response;
                                    ``(VI) peak monthly demand; or
                                    ``(VII) the provision of ancillary 
                                services.
            ``(32) Electric utility service.--The term `electric 
        utility service' means the safe and reliable provision of end-
        use electricity.
            ``(33) Organized market.--The term `organized market' means 
        an auction-based day-ahead and real-time wholesale market--
                    ``(A) in which a single entity may--
                            ``(i) receive 1 or more offers to sell, or 
                        bids to buy, electric energy or ancillary 
                        services from 1 or more sellers, or buyers, 
                        respectively; and
                            ``(ii) determine which sales and purchases 
                        are completed, and at what prices, based on 
                        formal rules contained in tariffs approved by 
                        the Commission; and
                    ``(B) the prices of which are used by transmission 
                organizations for establishing transmission usage 
                charges set by the Federal Energy Regulatory 
                Commission.''.
    (b) Requirement.--Part I of the Federal Power Act (16 U.S.C. 792 et 
seq.) is amended by adding at the end the following:

``SEC. 34. WHOLESALE DEMAND RESPONSE.

    ``The Commission shall require that sellers and aggregators of 
demand response energy resources be permitted to participate in any 
organized market on terms that are--
            ``(1) comparable to terms applicable to sellers of electric 
        capacity or energy; and
            ``(2) just, reasonable, and not unduly discriminatory.''.

SEC. 502. GENERAL RIGHT TO NEUTRALITY OF INTERCONNECTION.

    (a) In General.--The Public Utility Regulatory Policies Act of 1978 
is amended by inserting after section 4 (16 U.S.C. 2603) the following:

``SEC. 5. GENERAL RIGHT TO NEUTRALITY OF INTERCONNECTION.

    ``(a) In General.--Demand response energy resources (as defined in 
section 3 of the Federal Power Act (16 U.S.C. 796)) shall have a 
general right of interconnection under this Act on terms comparable to 
the terms available to a seller of electric capacity or energy.
    ``(b) Rate and Fees.--All rates and fees for interconnection of 
demand response energy resources under this Act, regardless of whether 
the demand response energy resource is a qualifying facility--
            ``(1) shall be just and reasonable;
            ``(2) shall provide for the 2-way benefit, as required by 
        the Federal Energy Regulatory Commission, for the demand 
        response energy resource and the electricity grid;
            ``(3) shall not exceed the actual cost of service, 
        including reasonable return on investment; and
            ``(4) shall not be punitive.
    ``(c) Timeframes.--Timeframes for interconnection of demand 
response energy resources under this Act, regardless of whether the 
demand response energy resource is a qualifying facility, shall be 
well-defined, expeditious, not unduly protracted, and comparable to the 
timeframes available to a seller of electric capacity or energy.''.
    (b) Improved Interconnection Standards for Demand Response Energy 
Resources.--Section 111(d) of the Public Utility Regulatory Policies 
Act of 1978 (16 U.S.C. 2621(d)) is amended by adding at the end the 
following:
            ``(20) Demand response energy resources.--Each State 
        regulatory authority or nonregulated electric utility shall 
        consider requiring that demand response energy resources (as 
        defined in section 3 of the Federal Power Act (16 U.S.C. 796)) 
        be eligible to receive just and reasonable energy and rate 
        treatment for--
                    ``(A) the societal value of demand response energy 
                resources; and
                    ``(B) any other benefits of demand response energy 
                resources that the State regulatory authority or 
                nonregulated electric utility considers to be 
                appropriate.
            ``(21) Improved interconnections standards for demand 
        response energy resources.--Each State regulatory authority or 
        nonregulated electric utility, acting under State authority in 
        a State that has determined not to establish standards under 
        paragraph (20), shall consider--
                    ``(A) removing discriminatory rate barriers for 
                demand response energy resources by setting rates that 
                exceed the incremental cost of alternative electric 
                energy for purchases from any demand response energy 
                resource (as defined in section 3 of the Federal Power 
                Act (16 U.S.C. 796)) that is, under this Act, a 
                qualifying facility interconnected with--
                            ``(i) the rates to be established at the 
                        full retail rate; and
                            ``(ii) fixed monthly charges for 
                        residential electricity bills to be established 
                        at a charge of not more than 10 dollars per 
                        month, with optional reevaluations by the State 
                        authority of the amount of charge to be 
                        considered on a periodic basis;
                    ``(B) making any demand response energy resource 
                project exempt from filing requirements with the 
                Commission;
                    ``(C) ensuring that any requirements considered 
                under this paragraph would not affect the purchase 
                obligation under section 210 for demand response energy 
                resource facilities; and
                    ``(D) requiring that all rates and fees for 
                interconnection of demand response facilities--
                            ``(i) shall be just and reasonable;
                            ``(ii) shall provide for the benefit of the 
                        demand response energy resource to the 
                        electricity grid and benefit of the electricity 
                        grid to the demand response energy resource; 
                        and
                            ``(iii) shall not exceed the actual cost of 
                        service.''.
                                 <all>