[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5376 Engrossed Amendment Senate (EAS)]

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                  In the Senate of the United States,

                            August 7 (legislative day, August 6), 2022.
    Resolved, That the bill from the House of Representatives (H.R. 
5376) entitled ``An Act to provide for reconciliation pursuant to title 
II of S. Con. Res. 14.'', do pass with the following

                               AMENDMENT:

             Strike all after the enacting clause and insert the 
      following:

                     TITLE I--COMMITTEE ON FINANCE

                     Subtitle A--Deficit Reduction

SEC. 10001. AMENDMENT OF 1986 CODE.

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

                      PART 1--CORPORATE TAX REFORM

SEC. 10101. CORPORATE ALTERNATIVE MINIMUM TAX.

    (a) Imposition of Tax.--
            (1) In general.--Paragraph (2) of section 55(b) is amended 
        to read as follows:
            ``(2) Corporations.--
                    ``(A) Applicable corporations.--In the case of an 
                applicable corporation, the tentative minimum tax for 
                the taxable year shall be the excess of--
                            ``(i) 15 percent of the adjusted financial 
                        statement income for the taxable year (as 
                        determined under section 56A), over
                            ``(ii) the corporate AMT foreign tax credit 
                        for the taxable year.
                    ``(B) Other corporations.--In the case of any 
                corporation which is not an applicable corporation, the 
                tentative minimum tax for the taxable year shall be 
                zero.''.
            (2) Applicable corporation.--Section 59 is amended by 
        adding at the end the following new subsection:
    ``(k) Applicable Corporation.--For purposes of this part--
            ``(1) Applicable corporation defined.--
                    ``(A) In general.--The term `applicable 
                corporation' means, with respect to any taxable year, 
                any corporation (other than an S corporation, a 
                regulated investment company, or a real estate 
                investment trust) which meets the average annual 
                adjusted financial statement income test of 
                subparagraph (B) for one or more taxable years which--
                            ``(i) are prior to such taxable year, and
                            ``(ii) end after December 31, 2021.
                    ``(B) Average annual adjusted financial statement 
                income test.--For purposes of this subsection--
                            ``(i) a corporation meets the average 
                        annual adjusted financial statement income test 
                        for a taxable year if the average annual 
                        adjusted financial statement income of such 
                        corporation (determined without regard to 
                        section 56A(d)) for the 3-taxable-year period 
                        ending with such taxable year exceeds 
                        $1,000,000,000, and
                            ``(ii) in the case of a corporation 
                        described in paragraph (2), such corporation 
                        meets the average annual adjusted financial 
                        statement income test for a taxable year if--
                                    ``(I) the corporation meets the 
                                requirements of clause (i) for such 
                                taxable year (determined after the 
                                application of paragraph (2)), and
                                    ``(II) the average annual adjusted 
                                financial statement income of such 
                                corporation (determined without regard 
                                to the application of paragraph (2) and 
                                without regard to section 56A(d)) for 
                                the 3-taxable-year-period ending with 
                                such taxable year is $100,000,000 or 
                                more.
                    ``(C) Exception.--Notwithstanding subparagraph (A), 
                the term `applicable corporation' shall not include any 
                corporation which otherwise meets the requirements of 
                subparagraph (A) if--
                            ``(i) such corporation--
                                    ``(I) has a change in ownership, or
                                    ``(II) has a specified number (to 
                                be determined by the Secretary and 
                                which shall, as appropriate, take into 
                                account the facts and circumstances of 
                                the taxpayer) of consecutive taxable 
                                years, including the most recent 
                                taxable year, in which the corporation 
                                does not meet the average annual 
                                adjusted financial statement income 
                                test of subparagraph (B), and
                            ``(ii) the Secretary determines that it 
                        would not be appropriate to continue to treat 
                        such corporation as an applicable corporation.
                The preceding sentence shall not apply to any 
                corporation if, after the Secretary makes the 
                determination described in clause (ii), such 
                corporation meets the average annual adjusted financial 
                statement income test of subparagraph (B) for any 
                taxable year beginning after the first taxable year for 
                which such determination applies.
                    ``(D) Special rules for determining applicable 
                corporation status.--
                            ``(i) In general.--Solely for purposes of 
                        determining whether a corporation is an 
                        applicable corporation under this paragraph, 
                        all adjusted financial statement income of 
                        persons treated as a single employer with such 
                        corporation under subsection (a) or (b) of 
                        section 52 (determined with the modifications 
                        described in clause (ii)) shall be treated as 
                        adjusted financial statement income of such 
                        corporation, and adjusted financial statement 
                        income of such corporation shall be determined 
                        without regard to paragraphs (2)(D)(i) and (11) 
                        of section 56A(c).
                            ``(ii) Modifications.--For purposes of this 
                        subparagraph--
                                    ``(I) section 52(a) shall be 
                                applied by substituting `component 
                                members' for `members', and
                                    ``(II) for purposes of applying 
                                section 52(b), the term `trade or 
                                business' shall include any activity 
                                treated as a trade or business under 
                                paragraph (5) or (6) of section 469(c) 
                                (determined without regard to the 
                                phrase `To the extent provided in 
                                regulations' in such paragraph (6)).
                            ``(iii) Component member.--For purposes of 
                        this subparagraph, the term `component member' 
                        has the meaning given such term by section 
                        1563(b), except that the determination shall be 
                        made without regard to section 1563(b)(2).
                    ``(E) Other special rules.--
                            ``(i) Corporations in existence for less 
                        than 3 years.--If the corporation was in 
                        existence for less than 3-taxable years, 
                        subparagraph (B) shall be applied on the basis 
                        of the period during which such corporation was 
                        in existence.
                            ``(ii) Short taxable years.--Adjusted 
                        financial statement income for any taxable year 
                        of less than 12 months shall be annualized by 
                        multiplying the adjusted financial statement 
                        income for the short period by 12 and dividing 
                        the result by the number of months in the short 
                        period.
                            ``(iii) Treatment of predecessors.--Any 
                        reference in this subparagraph to a corporation 
                        shall include a reference to any predecessor of 
                        such corporation.
            ``(2) Special rule for foreign-parented multinational 
        groups.--
                    ``(A) In general.--If a corporation is a member of 
                a foreign-parented multinational group for any taxable 
                year, then, solely for purposes of determining whether 
                such corporation meets the average annual adjusted 
                financial statement income test under paragraph 
                (1)(B)(ii)(I) for such taxable year, the adjusted 
                financial statement income of such corporation for such 
                taxable year shall include the adjusted financial 
                statement income of all members of such group. Solely 
                for purposes of this subparagraph, adjusted financial 
                statement income shall be determined without regard to 
                paragraphs (2)(D)(i), (3), (4), and (11) of section 
                56A(c).
                    ``(B) Foreign-parented multinational group.--For 
                purposes of subparagraph (A), the term `foreign-
                parented multinational group' means, with respect to 
                any taxable year, two or more entities if--
                            ``(i) at least one entity is a domestic 
                        corporation and another entity is a foreign 
                        corporation,
                            ``(ii) such entities are included in the 
                        same applicable financial statement with 
                        respect to such year, and
                            ``(iii) either--
                                    ``(I) the common parent of such 
                                entities is a foreign corporation, or
                                    ``(II) if there is no common 
                                parent, the entities are treated as 
                                having a common parent which is a 
                                foreign corporation under subparagraph 
                                (D).
                    ``(C) Foreign corporations engaged in a trade or 
                business within the united states.--For purposes of 
                this paragraph, if a foreign corporation is engaged in 
                a trade or business within the United States, such 
                trade or business shall be treated as a separate 
                domestic corporation that is wholly owned by the 
                foreign corporation.
                    ``(D) Other rules.--The Secretary shall, applying 
                the principles of this section, prescribe rules for the 
                application of this paragraph, including rules for the 
                determination of--
                            ``(i) the entities (if any) which are to be 
                        to be treated under subparagraph (B)(iii)(II) 
                        as having a common parent which is a foreign 
                        corporation,
                            ``(ii) the entities to be included in a 
                        foreign-parented multinational group, and
                            ``(iii) the common parent of a foreign-
                        parented multinational group.
            ``(3) Regulations or other guidance.--The Secretary shall 
        provide regulations or other guidance for the purposes of 
        carrying out this subsection, including regulations or other 
        guidance--
                    ``(A) providing a simplified method for determining 
                whether a corporation meets the requirements of 
                paragraph (1), and
                    ``'(B) addressing the application of this 
                subsection to a corporation that experiences a change 
                in ownership.''.
            (3) Reduction for base erosion and anti-abuse tax.--Section 
        55(a)(2) is amended by inserting ``plus, in the case of an 
        applicable corporation, the tax imposed by section 59A'' before 
        the period at the end.
            (4) Conforming amendments.--
                    (A) Section 55(a) is amended by striking ``In the 
                case of a taxpayer other than a corporation, there'' 
                and inserting ``There''.
                    (B)(i) Section 55(b)(1) is amended--
                            (I) by striking so much as precedes 
                        subparagraph (A) and inserting the following:
            ``(1) Noncorporate taxpayers.--In the case of a taxpayer 
        other than a corporation--'', and
                            (II) by adding at the end the following new 
                        subparagraph:
                    ``(D) Alternative minimum taxable income.--The term 
                `alternative minimum taxable income' means the taxable 
                income of the taxpayer for the taxable year--
                            ``(i) determined with the adjustments 
                        provided in section 56 and section 58, and
                            ``(ii) increased by the amount of the items 
                        of tax preference described in section 57.
                If a taxpayer is subject to the regular tax, such 
                taxpayer shall be subject to the tax imposed by this 
                section (and, if the regular tax is determined by 
                reference to an amount other than taxable income, such 
                amount shall be treated as the taxable income of such 
                taxpayer for purposes of the preceding sentence).''.
                    (ii) Section 860E(a)(4) is amended by striking 
                ``55(b)(2)'' and inserting ``55(b)(1)(D)''.
                    (iii) Section 897(a)(2)(A)(i) is amended by 
                striking ``55(b)(2)'' and inserting ``55(b)(1)(D)''.
                    (C) Section 11(d) is amended by striking ``the tax 
                imposed by subsection (a)'' and inserting ``the taxes 
                imposed by subsection (a) and section 55''.
                    (D) Section 12 is amended by adding at the end the 
                following new paragraph:
            ``(5) For alternative minimum tax, see section 55.''.
                    (E) Section 882(a)(1) is amended by inserting ``, 
                55,'' after ``section 11''.
                    (F) Section 6425(c)(1)(A) is amended to read as 
                follows:
                    ``(A) the sum of--
                            ``(i) the tax imposed by section 11 or 
                        subchapter L of chapter 1, whichever is 
                        applicable, plus
                            ``(ii) the tax imposed by section 55, plus
                            ``(iii) the tax imposed by section 59A, 
                        over''.
                    (G) Section 6655(e)(2) is amended by inserting ``, 
                adjusted financial statement income (as defined in 
                section 56A),'' before ``and modified taxable income'' 
                each place it appears in subparagraphs (A)(i) and 
                (B)(i).
                    (H) Section 6655(g)(1)(A) is amended by 
                redesignating clauses (ii) and (iii) as clauses (iii) 
                and (iv), respectively, and by inserting after clause 
                (i) the following new clause:
                            ``(ii) the tax imposed by section 55,''.
    (b) Adjusted Financial Statement Income.--
            (1) In general.--Part VI of subchapter A of chapter 1 is 
        amended by inserting after section 56 the following new 
        section:

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

    ``(a) In General.--For purposes of this part, the term `adjusted 
financial statement income' means, with respect to any corporation for 
any taxable year, the net income or loss of the taxpayer set forth on 
the taxpayer's applicable financial statement for such taxable year, 
adjusted as provided in this section.
    ``(b) Applicable Financial Statement.--For purposes of this 
section, the term `applicable financial statement' means, with respect 
to any taxable year, an applicable financial statement (as defined in 
section 451(b)(3) or as specified by the Secretary in regulations or 
other guidance) which covers such taxable year.
    ``(c) General Adjustments.--
            ``(1) Statements covering different taxable years.--
        Appropriate adjustments shall be made in adjusted financial 
        statement income in any case in which an applicable financial 
        statement covers a period other than the taxable year.
            ``(2) Special rules for related entities.--
                    ``(A) Consolidated financial statements.--If the 
                financial results of a taxpayer are reported on the 
                applicable financial statement for a group of entities, 
                rules similar to the rules of section 451(b)(5) shall 
                apply.
                    ``(B) Consolidated returns.--Except as provided in 
                regulations prescribed by the Secretary, if the 
                taxpayer is part of an affiliated group of corporations 
                filing a consolidated return for any taxable year, 
                adjusted financial statement income for such group for 
                such taxable year shall take into account items on the 
                group's applicable financial statement which are 
                properly allocable to members of such group.
                    ``(C) Treatment of dividends and other amounts.--In 
                the case of any corporation which is not included on a 
                consolidated return with the taxpayer, adjusted 
                financial statement income of the taxpayer with respect 
                to such other corporation shall be determined by only 
                taking into account the dividends received from such 
                other corporation (reduced to the extent provided by 
                the Secretary in regulations or other guidance) and 
                other amounts which are includible in gross income or 
                deductible as a loss under this chapter (other than 
                amounts required to be included under sections 951 and 
                951A or such other amounts as provided by the 
                Secretary) with respect to such other corporation.
                    ``(D) Treatment of partnerships.--
                            ``(i) In general.--Except as provided by 
                        the Secretary, if the taxpayer is a partner in 
                        a partnership, adjusted financial statement 
                        income of the taxpayer with respect to such 
                        partnership shall be adjusted to only take into 
                        account the taxpayer's distributive share of 
                        adjusted financial statement income of such 
                        partnership.
                            ``(ii) Adjusted financial statement income 
                        of partnerships.--For the purposes of this 
                        part, the adjusted financial statement income 
                        of a partnership shall be the partnership's net 
                        income or loss set forth on such partnership's 
                        applicable financial statement (adjusted under 
                        rules similar to the rules of this section).
            ``(3) Adjustments to take into account certain items of 
        foreign income.--
                    ``(A) In general.--If, for any taxable year, a 
                taxpayer is a United States shareholder of one or more 
                controlled foreign corporations, the adjusted financial 
                statement income of such taxpayer with respect to such 
                controlled foreign corporation (as determined under 
                paragraph (2)(C)) shall be adjusted to also take into 
                account such taxpayer's pro rata share (determined 
                under rules similar to the rules under section 
                951(a)(2)) of items taken into account in computing the 
                net income or loss set forth on the applicable 
                financial statement (as adjusted under rules similar to 
                those that apply in determining adjusted financial 
                statement income) of each such controlled foreign 
                corporation with respect to which such taxpayer is a 
                United States shareholder.
                    ``(B) Negative adjustments.--In any case in which 
                the adjustment determined under subparagraph (A) would 
                result in a negative adjustment for such taxable year--
                            ``(i) no adjustment shall be made under 
                        this paragraph for such taxable year, and
                            ``(ii) the amount of the adjustment 
                        determined under this paragraph for the 
                        succeeding taxable year (determined without 
                        regard to this paragraph) shall be reduced by 
                        an amount equal to the negative adjustment for 
                        such taxable year.
            ``(4) Effectively connected income.--In the case of a 
        foreign corporation, to determine adjusted financial statement 
        income, the principles of section 882 shall apply.
            ``(5) Adjustments for certain taxes.--Adjusted financial 
        statement income shall be appropriately adjusted to disregard 
        any Federal income taxes, or income, war profits, or excess 
        profits taxes (within the meaning of section 901) with respect 
        to a foreign country or possession of the United States, which 
        are taken into account on the taxpayer's applicable financial 
        statement. To the extent provided by the Secretary, the 
        preceding sentence shall not apply to income, war profits, or 
        excess profits taxes (within the meaning of section 901) that 
        are imposed by a foreign country or possession of the United 
        States and taken into account on the taxpayer's applicable 
        financial statement if the taxpayer does not choose to have the 
        benefits of subpart A of part III of subchapter N for the 
        taxable year. The Secretary shall prescribe such regulations or 
        other guidance as may be necessary and appropriate to provide 
        for the proper treatment of current and deferred taxes for 
        purposes of this paragraph, including the time at which such 
        taxes are properly taken into account.
            ``(6) Adjustment with respect to disregarded entities.--
        Adjusted financial statement income shall be adjusted to take 
        into account any adjusted financial statement income of a 
        disregarded entity owned by the taxpayer.
            ``(7) Special rule for cooperatives.--In the case of a 
        cooperative to which section 1381 applies, the adjusted 
        financial statement income (determined without regard to this 
        paragraph) shall be reduced by the amounts referred to in 
        section 1382(b) (relating to patronage dividends and per-unit 
        retain allocations) to the extent such amounts were not 
        otherwise taken into account in determining adjusted financial 
        statement income.
            ``(8) Rules for alaska native corporations.--Adjusted 
        financial statement income shall be appropriately adjusted to 
        allow--
                    ``(A) cost recovery and depletion attributable to 
                property the basis of which is determined under section 
                21(c) of the Alaska Native Claims Settlement Act (43 
                U.S.C. 1620(c)), and
                    ``(B) deductions for amounts payable made pursuant 
                to section 7(i) or section 7(j) of such Act (43 U.S.C. 
                1606(i) and 1606(j)) only at such time as the 
                deductions are allowed for tax purposes.
            ``(9) Amounts attributable to elections for direct payment 
        of certain credits.--Adjusted financial statement income shall 
        be appropriately adjusted to disregard any amount treated as a 
        payment against the tax imposed by subtitle A pursuant to an 
        election under section 48D(d) or 6417, to the extent such 
        amount was not otherwise taken into account under paragraph 
        (5).
            ``(10) Consistent treatment of mortgage servicing income of 
        taxpayer other than a regulated investment company.--
                    ``(A) In general.--Adjusted financial statement 
                income shall be adjusted so as not to include any item 
                of income in connection with a mortgage servicing 
                contract any earlier than when such income is included 
                in gross income under any other provision of this 
                chapter.
                    ``(B) Rules for amounts not representing reasonable 
                compensation.--The Secretary shall provide regulations 
                to prevent the avoidance of taxes imposed by this 
                chapter with respect to amounts not representing 
                reasonable compensation (as determined by the 
                Secretary) with respect to a mortgage servicing 
                contract.
            ``(11) Adjustment with respect to defined benefit 
        pensions.--
                    ``(A) In general.--Except as otherwise provided in 
                rules prescribed by the Secretary in regulations or 
                other guidance, adjusted financial statement income 
                shall be--
                            ``(i) adjusted to disregard any amount of 
                        income, cost, or expense that would otherwise 
                        be included on the applicable financial 
                        statement in connection with any covered 
                        benefit plan,
                            ``(ii) increased by any amount of income in 
                        connection with any such covered benefit plan 
                        that is included in the gross income of the 
                        corporation under any other provision of this 
                        chapter, and
                            ``(iii) reduced by deductions allowed under 
                        any other provision of this chapter with 
                        respect to any such covered benefit plan.
                    ``(B) Covered benefit plan.--For purposes of this 
                paragraph, the term `covered benefit plan' means--
                            ``(i) a defined benefit plan (other than a 
                        multiemployer plan described in section 414(f)) 
                        if the trust which is part of such plan is an 
                        employees' trust described in section 401(a) 
                        which is exempt from tax under section 501(a),
                            ``(ii) any qualified foreign plan (as 
                        defined in section 404A(e)), or
                            ``(iii) any other defined benefit plan 
                        which provides post-employment benefits other 
                        than pension benefits.
            ``(12) Tax-exempt entities.--In the case of an organization 
        subject to tax under section 511, adjusted financial statement 
        income shall be appropriately adjusted to only take into 
        account any adjusted financial statement income--
                    ``(A) of an unrelated trade or business (as defined 
                in section 513) of such organization, or
                    ``(B) derived from debt-financed property (as 
                defined in section 514) to the extent that income from 
                such property is treated as unrelated business taxable 
                income.
            ``(13) Depreciation.--Adjusted financial statement income 
        shall be--
                    ``(A) reduced by depreciation deductions allowed 
                under section 167 with respect to property to which 
                section 168 applies to the extent of the amount allowed 
                as deductions in computing taxable income for the 
                taxable year, and
                    ``(B) appropriately adjusted--
                            ``(i) to disregard any amount of 
                        depreciation expense that is taken into account 
                        on the taxpayer's applicable financial 
                        statement with respect to such property, and
                            ``(ii) to take into account any other item 
                        specified by the Secretary in order to provide 
                        that such property is accounted for in the same 
                        manner as it is accounted for under this 
                        chapter.
            ``(14) Qualified wireless spectrum.--
                    ``(A) In general.--Adjusted financial statement 
                income shall be--
                            ``(i) reduced by amortization deductions 
                        allowed under section 197 with respect to 
                        qualified wireless spectrum to the extent of 
                        the amount allowed as deductions in computing 
                        taxable income for the taxable year, and
                            ``(ii) appropriately adjusted--
                                    ``(I) to disregard any amount of 
                                amortization expense that is taken into 
                                account on the taxpayer's applicable 
                                financial statement with respect to 
                                such qualified wireless spectrum, and
                                    ``(II) to take into account any 
                                other item specified by the Secretary 
                                in order to provide that such qualified 
                                wireless spectrum is accounted for in 
                                the same manner as it is accounted for 
                                under this chapter.
                    ``(B) Qualified wireless spectrum.--For purposes of 
                this paragraph, the term `qualified wireless spectrum' 
                means wireless spectrum which--
                            ``(i) is used in the trade or business of a 
                        wireless telecommunications carrier, and
                            ``(ii) was acquired after December 31, 
                        2007, and before the date of enactment of this 
                        section.
            ``(15) Secretarial authority to adjust items.--The 
        Secretary shall issue regulations or other guidance to provide 
        for such adjustments to adjusted financial statement income as 
        the Secretary determines necessary to carry out the purposes of 
        this section, including adjustments--
                    ``(A) to prevent the omission or duplication of any 
                item, and
                    ``(B) to carry out the principles of part II of 
                subchapter C of this chapter (relating to corporate 
                liquidations), part III of subchapter C of this chapter 
                (relating to corporate organizations and 
                reorganizations), and part II of subchapter K of this 
                chapter (relating to partnership contributions and 
                distributions).
    ``(d) Deduction for Financial Statement Net Operating Loss.--
            ``(1) In general.--Adjusted financial statement income 
        (determined after application of subsection (c) and without 
        regard to this subsection) shall be reduced by an amount equal 
        to the lesser of--
                    ``(A) the aggregate amount of financial statement 
                net operating loss carryovers to the taxable year, or
                    ``(B) 80 percent of adjusted financial statement 
                income computed without regard to the deduction 
                allowable under this subsection.
            ``(2) Financial statement net operating loss carryover.--A 
        financial statement net operating loss for any taxable year 
        shall be a financial statement net operating loss carryover to 
        each taxable year following the taxable year of the loss. The 
        portion of such loss which shall be carried to subsequent 
        taxable years shall be the amount of such loss remaining (if 
        any) after the application of paragraph (1).
            ``(3) Financial statement net operating loss defined.--For 
        purposes of this subsection, the term `financial statement net 
        operating loss' means the amount of the net loss (if any) set 
        forth on the corporation's applicable financial statement 
        (determined after application of subsection (c) and without 
        regard to this subsection) for taxable years ending after 
        December 31, 2019.
    ``(e) Regulations and Other Guidance.--The Secretary shall provide 
for such regulations and other guidance as necessary to carry out the 
purposes of this section, including regulations and other guidance 
relating to the effect of the rules of this section on partnerships 
with income taken into account by an applicable corporation.''.
            (2) Clerical amendment.--The table of sections for part VI 
        of subchapter A of chapter 1 is amended by inserting after the 
        item relating to section 56 the following new item:

``Sec. 56A. Adjusted financial statement income.''.
    (c) Corporate AMT Foreign Tax Credit.--Section 59, as amended by 
this section, is amended by adding at the end the following new 
subsection:
    ``(l) Corporate AMT Foreign Tax Credit.--
            ``(1) In general.--For purposes of this part, if an 
        applicable corporation chooses to have the benefits of subpart 
        A of part III of subchapter N for any taxable year, the 
        corporate AMT foreign tax credit for the taxable year of the 
        applicable corporation is an amount equal to sum of--
                    ``(A) the lesser of--
                            ``(i) the aggregate of the applicable 
                        corporation's pro rata share (as determined 
                        under section 56A(c)(3)) of the amount of 
                        income, war profits, and excess profits taxes 
                        (within the meaning of section 901) imposed by 
                        any foreign country or possession of the United 
                        States which are--
                                    ``(I) taken into account on the 
                                applicable financial statement of each 
                                controlled foreign corporation with 
                                respect to which the applicable 
                                corporation is a United States 
                                shareholder, and
                                    ``(II) paid or accrued (for Federal 
                                income tax purposes) by each such 
                                controlled foreign corporation, or
                            ``(ii) the product of the amount of the 
                        adjustment under section 56A(c)(3) and the 
                        percentage specified in section 55(b)(2)(A)(i), 
                        and
                    ``(B) in the case of an applicable corporation that 
                is a domestic corporation, the amount of income, war 
                profits, and excess profits taxes (within the meaning 
                of section 901) imposed by any foreign country or 
                possession of the United States to the extent such 
                taxes are--
                            ``(i) taken into account on the applicable 
                        corporation's applicable financial statement, 
                        and
                            ``(ii) paid or accrued (for Federal income 
                        tax purposes) by the applicable corporation.
            ``(2) Carryover of excess tax paid.--For any taxable year 
        for which an applicable corporation chooses to have the 
        benefits of subpart A of part III of subchapter N, the excess 
        of the amount described in paragraph (1)(A)(i) over the amount 
        described in paragraph (1)(A)(ii) shall increase the amount 
        described in paragraph (1)(A)(i) in any of the first 5 
        succeeding taxable years to the extent not taken into account 
        in a prior taxable year.
            ``(3) Regulations or other guidance.--The Secretary shall 
        provide for such regulations or other guidance as is necessary 
        to carry out the purposes of this subsection.''.
    (d) Treatment of General Business Credit.--Section 38(c)(6)(E) is 
amended to read as follows:
                    ``(E) Corporations.--In the case of a corporation--
                            ``(i) the first sentence of paragraph (1) 
                        shall be applied by substituting `25 percent of 
                        the taxpayer's net income tax as exceeds 
                        $25,000' for `the greater of' and all that 
                        follows,
                            ``(ii) paragraph (2)(A) shall be applied 
                        without regard to clause (ii)(I) thereof, and
                            ``(iii) paragraph (4)(A) shall be applied 
                        without regard to clause (ii)(I) thereof.''.
    (e) Credit for Prior Year Minimum Tax Liability.--
            (1) In general.--Section 53(e) is amended to read as 
        follows:
    ``(e) Application to Applicable Corporations.--In the case of a 
corporation--
            ``(1) subsection (b)(1) shall be applied by substituting 
        `the net minimum tax for all prior taxable years beginning 
        after 2022' for `the adjusted net minimum tax imposed for all 
        prior taxable years beginning after 1986', and
            ``(2) the amount determined under subsection (c)(1) shall 
        be increased by the amount of tax imposed under section 59A for 
        the taxable year.''.
            (2) Conforming amendments.--Section 53(d) is amended--
                    (A) in paragraph (2), by striking ``, except that 
                in the case'' and all that follows through ``treated as 
                zero'', and
                    (B) by striking paragraph (3).
    (f) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2022.

          PART 2--EXCISE TAX ON REPURCHASE OF CORPORATE STOCK

SEC. 10201. EXCISE TAX ON REPURCHASE OF CORPORATE STOCK.

    (a) In General.--Subtitle D is amended by inserting after chapter 
36 the following new chapter:

              ``CHAPTER 37--REPURCHASE OF CORPORATE STOCK

``Sec. 4501. Repurchase of corporate stock.

``SEC. 4501. REPURCHASE OF CORPORATE STOCK.

    ``(a) General Rule.--There is hereby imposed on each covered 
corporation a tax equal to 1 percent of the fair market value of any 
stock of the corporation which is repurchased by such corporation 
during the taxable year.
    ``(b) Covered Corporation.--For purposes of this section, the term 
`covered corporation' means any domestic corporation the stock of which 
is traded on an established securities market (within the meaning of 
section 7704(b)(1)).
    ``(c) Repurchase.--For purposes of this section--
            ``(1) In general.--The term `repurchase' means--
                    ``(A) a redemption within the meaning of section 
                317(b) with regard to the stock of a covered 
                corporation, and
                    ``(B) any transaction determined by the Secretary 
                to be economically similar to a transaction described 
                in subparagraph (A).
            ``(2) Treatment of purchases by specified affiliates.--
                    ``(A) In general.--The acquisition of stock of a 
                covered corporation by a specified affiliate of such 
                covered corporation, from a person who is not the 
                covered corporation or a specified affiliate of such 
                covered corporation, shall be treated as a repurchase 
                of the stock of the covered corporation by such covered 
                corporation.
                    ``(B) Specified affiliate.--For purposes of this 
                section, the term `specified affiliate' means, with 
                respect to any corporation--
                            ``(i) any corporation more than 50 percent 
                        of the stock of which is owned (by vote or by 
                        value), directly or indirectly, by such 
                        corporation, and
                            ``(ii) any partnership more than 50 percent 
                        of the capital interests or profits interests 
                        of which is held, directly or indirectly, by 
                        such corporation.
            ``(3) Adjustment.--The amount taken into account under 
        subsection (a) with respect to any stock repurchased by a 
        covered corporation shall be reduced by the fair market value 
        of any stock issued by the covered corporation during the 
        taxable year, including the fair market value of any stock 
        issued or provided to employees of such covered corporation or 
        employees of a specified affiliate of such covered corporation 
        during the taxable year, whether or not such stock is issued or 
        provided in response to the exercise of an option to purchase 
        such stock.
    ``(d) Special Rules for Acquisition of Stock of Certain Foreign 
Corporations.--
            ``(1) In general.--In the case of an acquisition of stock 
        of an applicable foreign corporation by a specified affiliate 
        of such corporation (other than a foreign corporation or a 
        foreign partnership (unless such partnership has a domestic 
        entity as a direct or indirect partner)) from a person who is 
        not the applicable foreign corporation or a specified affiliate 
        of such applicable foreign corporation, for purposes of this 
        section--
                    ``(A) such specified affiliate shall be treated as 
                a covered corporation with respect to such acquisition,
                    ``(B) such acquisition shall be treated as a 
                repurchase of stock of a covered corporation by such 
                covered corporation, and
                    ``(C) the adjustment under subsection (c)(3) shall 
                be determined only with respect to stock issued or 
                provided by such specified affiliate to employees of 
                the specified affiliate.
            ``(2) Surrogate foreign corporations.--In the case of a 
        repurchase of stock of a covered surrogate foreign corporation 
        by such covered surrogate foreign corporation, or an 
        acquisition of stock of a covered surrogate foreign corporation 
        by a specified affiliate of such corporation, for purposes of 
        this section--
                    ``(A) the expatriated entity with respect to such 
                covered surrogate foreign corporation shall be treated 
                as a covered corporation with respect to such 
                repurchase or acquisition,
                    ``(B) such repurchase or acquisition shall be 
                treated as a repurchase of stock of a covered 
                corporation by such covered corporation, and
                    ``(C) the adjustment under subsection (c)(3) shall 
                be determined only with respect to stock issued or 
                provided by such expatriated entity to employees of the 
                expatriated entity.
            ``(3) Definitions.--For purposes of this subsection--
                    ``(A) Applicable foreign corporation.--The term 
                `applicable foreign corporation' means any foreign 
                corporation the stock of which is traded on an 
                established securities market (within the meaning of 
                section 7704(b)(1)).
                    ``(B) Covered surrogate foreign corporation.--The 
                term `covered surrogate foreign corporation' means any 
                surrogate foreign corporation (as determined under 
                section 7874(a)(2)(B) by substituting `September 20, 
                2021' for `March 4, 2003' each place it appears) the 
                stock of which is traded on an established securities 
                market (within the meaning of section 7704(b)(1)), but 
                only with respect to taxable years which include any 
                portion of the applicable period with respect to such 
                corporation under section 7874(d)(1).
                    ``(C) Expatriated entity.--The term `expatriated 
                entity' has the meaning given such term by section 
                7874(a)(2)(A).
    ``(e) Exceptions.--Subsection (a) shall not apply--
            ``(1) to the extent that the repurchase is part of a 
        reorganization (within the meaning of section 368(a)) and no 
        gain or loss is recognized on such repurchase by the 
        shareholder under chapter 1 by reason of such reorganization,
            ``(2) in any case in which the stock repurchased is, or an 
        amount of stock equal to the value of the stock repurchased is, 
        contributed to an employer-sponsored retirement plan, employee 
        stock ownership plan, or similar plan,
            ``(3) in any case in which the total value of the stock 
        repurchased during the taxable year does not exceed $1,000,000,
            ``(4) under regulations prescribed by the Secretary, in 
        cases in which the repurchase is by a dealer in securities in 
        the ordinary course of business,
            ``(5) to repurchases by a regulated investment company (as 
        defined in section 851) or a real estate investment trust, or
            ``(6) to the extent that the repurchase is treated as a 
        dividend for purposes of this title.
    ``(f) Regulations and Guidance.--The Secretary shall prescribe such 
regulations and other guidance as are necessary or appropriate to carry 
out, and to prevent the avoidance of, the purposes of this section, 
including regulations and other guidance--
            ``(1) to prevent the abuse of the exceptions provided by 
        subsection (e),
            ``(2) to address special classes of stock and preferred 
        stock, and
            ``(3) for the application of the rules under subsection 
        (d).''.
    (b) Tax Not Deductible.--Paragraph (6) of section 275(a) is amended 
by inserting ``37,'' before ``41''.
    (c) Clerical Amendment.--The table of chapters for subtitle D is 
amended by inserting after the item relating to chapter 36 the 
following new item:

             ``Chapter 37--Repurchase of Corporate Stock''.

    (d) Effective Date.--The amendments made by this section shall 
apply to repurchases (within the meaning of section 4501(c) of the 
Internal Revenue Code of 1986, as added by this section) of stock after 
December 31, 2022.

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

SEC. 10301. ENHANCEMENT OF INTERNAL REVENUE SERVICE RESOURCES.

    In General.--The following sums are appropriated, out of any money 
in the Treasury not otherwise appropriated, for the fiscal year ending 
September 30, 2022:
            (1) Internal revenue service.--
                    (A) In general.--
                            (i) Taxpayer services.--For necessary 
                        expenses of the Internal Revenue Service to 
                        provide taxpayer services, including pre-filing 
                        assistance and education, filing and account 
                        services, taxpayer advocacy services, and other 
                        services as authorized by 5 U.S.C. 3109, at 
                        such rates as may be determined by the 
                        Commissioner, $3,181,500,000, to remain 
                        available until September 30, 2031: Provided, 
                        That these amounts shall be in addition to 
                        amounts otherwise available for such purposes.
                            (ii) Enforcement.--For necessary expenses 
                        for tax enforcement activities of the Internal 
                        Revenue Service to determine and collect owed 
                        taxes, to provide legal and litigation support, 
                        to conduct criminal investigations (including 
                        investigative technology), to provide digital 
                        asset monitoring and compliance activities, to 
                        enforce criminal statutes related to violations 
                        of internal revenue laws and other financial 
                        crimes, to purchase and hire passenger motor 
                        vehicles (31 U.S.C. 1343(b)), and to provide 
                        other services as authorized by 5 U.S.C. 3109, 
                        at such rates as may be determined by the 
                        Commissioner, $45,637,400,000, to remain 
                        available until September 30, 2031: Provided, 
                        That these amounts shall be in addition to 
                        amounts otherwise available for such purposes.
                            (iii) Operations support.--For necessary 
                        expenses of the Internal Revenue Service to 
                        support taxpayer services and enforcement 
                        programs, including rent payments; facilities 
                        services; printing; postage; physical security; 
                        headquarters and other IRS-wide administration 
                        activities; research and statistics of income; 
                        telecommunications; information technology 
                        development, enhancement, operations, 
                        maintenance, and security; the hire of 
                        passenger motor vehicles (31 U.S.C. 1343(b)); 
                        the operations of the Internal Revenue Service 
                        Oversight Board; and other services as 
                        authorized by 5 U.S.C. 3109, at such rates as 
                        may be determined by the Commissioner, 
                        $25,326,400,000, to remain available until 
                        September 30, 2031: Provided, That these 
                        amounts shall be in addition to amounts 
                        otherwise available for such purposes.
                            (iv) Business systems modernization.--For 
                        necessary expenses of the Internal Revenue 
                        Service's business systems modernization 
                        program, including development of callback 
                        technology and other technology to provide a 
                        more personalized customer service but not 
                        including the operation and maintenance of 
                        legacy systems, $4,750,700,000, to remain 
                        available until September 30, 2031: Provided, 
                        That these amounts shall be in addition to 
                        amounts otherwise available for such purposes.
                    (B) Task force to design an irs-run free ``direct 
                efile'' tax return system.--For necessary expenses of 
                the Internal Revenue Service to deliver to Congress, 
                within nine months following the date of the enactment 
                of this Act, a report on (I) the cost (including 
                options for differential coverage based on taxpayer 
                adjusted gross income and return complexity) of 
                developing and running a free direct efile tax return 
                system, including costs to build and administer each 
                release, with a focus on multi-lingual and mobile-
                friendly features and safeguards for taxpayer data; 
                (II) taxpayer opinions, expectations, and level of 
                trust, based on surveys, for such a free direct efile 
                system; and (III) the opinions of an independent third-
                party on the overall feasibility, approach, schedule, 
                cost, organizational design, and Internal Revenue 
                Service capacity to deliver such a direct efile tax 
                return system, $15,000,000, to remain available until 
                September 30, 2023: Provided, That these amounts shall 
                be in addition to amounts otherwise available for such 
                purposes.
            (2) Treasury inspector general for tax administration.--For 
        necessary expenses of the Treasury Inspector General for Tax 
        Administration in carrying out the Inspector General Act of 
        1978, as amended, including purchase and hire of passenger 
        motor vehicles (31 U.S.C. 1343(b)); and services authorized by 
        5 U.S.C. 3109, at such rates as may be determined by the 
        Inspector General for Tax Administration, $403,000,000, to 
        remain available until September 30, 2031: Provided, That these 
        amounts shall be in addition to amounts otherwise available for 
        such purposes.
            (3) Office of tax policy.--For necessary expenses of the 
        Office of Tax Policy of the Department of the Treasury to carry 
        out functions related to promulgating regulations under the 
        Internal Revenue Code of 1986, $104,533,803, to remain 
        available until September 30, 2031: Provided, That these 
        amounts shall be in addition to amounts otherwise available for 
        such purposes.
            (4) United states tax court.--For necessary expenses of the 
        United States Tax Court, including contract reporting and other 
        services as authorized by 5 U.S.C. 3109; $153,000,000, to 
        remain available until September 30, 2031: Provided, That these 
        amounts shall be in addition to amounts otherwise available for 
        such purposes.
            (5) Treasury departmental offices.--For necessary expenses 
        of the Departmental Offices of the Department of the Treasury 
        to provide for oversight and implementation support for actions 
        by the Internal Revenue Service to implement this Act and the 
        amendments made by this Act, $50,000,000, to remain available 
        until September 30, 2031: Provided, That these amounts shall be 
        in addition to amounts otherwise available for such purposes.

              Subtitle B--Prescription Drug Pricing Reform

         PART 1--LOWERING PRICES THROUGH DRUG PRICE NEGOTIATION

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

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

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

``SEC. 1191. ESTABLISHMENT OF PROGRAM.

    ``(a) In General.--The Secretary shall establish a Drug Price 
Negotiation Program (in this part referred to as the `program'). Under 
the program, with respect to each price applicability period, the 
Secretary shall--
            ``(1) publish a list of selected drugs in accordance with 
        section 1192;
            ``(2) enter into agreements with manufacturers of selected 
        drugs with respect to such period, in accordance with section 
        1193;
            ``(3) negotiate and, if applicable, renegotiate maximum 
        fair prices for such selected drugs, in accordance with section 
        1194;
            ``(4) carry out the publication and administrative duties 
        and compliance monitoring in accordance with sections 1195 and 
        1196.
    ``(b) Definitions Relating to Timing.--For purposes of this part:
            ``(1) Initial price applicability year.--The term `initial 
        price applicability year' means a year (beginning with 2026).
            ``(2) Price applicability period.--The term `price 
        applicability period' means, with respect to a qualifying 
        single source drug, the period beginning with the first initial 
        price applicability year with respect to which such drug is a 
        selected drug and ending with the last year during which the 
        drug is a selected drug.
            ``(3) Selected drug publication date.--The term `selected 
        drug publication date' means, with respect to each initial 
        price applicability year, February 1 of the year that begins 2 
        years prior to such year.
            ``(4) Negotiation period.--The term `negotiation period' 
        means, with respect to an initial price applicability year with 
        respect to a selected drug, the period--
                    ``(A) beginning on the sooner of--
                            ``(i) the date on which the manufacturer of 
                        the drug and the Secretary enter into an 
                        agreement under section 1193 with respect to 
                        such drug; or
                            ``(ii) February 28 following the selected 
                        drug publication date with respect to such 
                        selected drug; and
                    ``(B) ending on November 1 of the year that begins 
                2 years prior to the initial price applicability year.
    ``(c) Other Definitions.--For purposes of this part:
            ``(1) Manufacturer.--The term `manufacturer' has the 
        meaning given that term in section 1847A(c)(6)(A).
            ``(2) Maximum fair price eligible individual.--The term 
        `maximum fair price eligible individual' means, with respect to 
        a selected drug--
                    ``(A) in the case such drug is dispensed to the 
                individual at a pharmacy, by a mail order service, or 
                by another dispenser, an individual who is enrolled in 
                a prescription drug plan under part D of title XVIII or 
                an MA-PD plan under part C of such title if coverage is 
                provided under such plan for such selected drug; and
                    ``(B) in the case such drug is furnished or 
                administered to the individual by a hospital, 
                physician, or other provider of services or supplier, 
                an individual who is enrolled under part B of title 
                XVIII, including an individual who is enrolled in an MA 
                plan under part C of such title, if payment may be made 
                under part B for such selected drug.
            ``(3) Maximum fair price.--The term `maximum fair price' 
        means, with respect to a year during a price applicability 
        period and with respect to a selected drug (as defined in 
        section 1192(c)) with respect to such period, the price 
        negotiated pursuant to section 1194, and updated pursuant to 
        section 1195(b), as applicable, for such drug and year.
            ``(4) Reference product.--The term `reference product' has 
        the meaning given such term in section 351(i) of the Public 
        Health Service Act.
            ``(5) Total expenditures.--The term `total expenditures' 
        includes, in the case of expenditures with respect to part D of 
        title XVIII, the total gross covered prescription drug costs 
        (as defined in section 1860D-15(b)(3)). The term `total 
        expenditures' excludes, in the case of expenditures with 
        respect to part B of such title, expenditures for a drug or 
        biological product that are bundled or packaged into the 
        payment for another service.
            ``(6) Unit.--The term `unit' means, with respect to a drug 
        or biological product, the lowest identifiable amount (such as 
        a capsule or tablet, milligram of molecules, or grams) of the 
        drug or biological product that is dispensed or furnished.
    ``(d) Timing for Initial Price Applicability Year 2026.--
Notwithstanding the provisions of this part, in the case of initial 
price applicability year 2026, the following rules shall apply for 
purposes of implementing the program:
            ``(1) Subsection (b)(3) shall be applied by substituting 
        `September 1, 2023' for `, with respect to each initial price 
        applicability year, February 1 of the year that begins 2 years 
        prior to such year'.
            ``(2) Subsection (b)(4) shall be applied--
                    ``(A) in subparagraph (A)(ii), by substituting 
                `October 1, 2023' for `February 28 following the 
                selected drug publication date with respect to such 
                selected drug'; and
                    ``(B) in subparagraph (B), by substituting `August 
                1, 2024' for `November 1 of the year that begins 2 
                years prior to the initial price applicability year'.
            ``(3) Section 1192 shall be applied--
                    ``(A) in subsection (b)(1)(A), by substituting 
                `during the period beginning on June 1, 2022, and 
                ending on May 31, 2023' for `during the most recent 
                period of 12 months prior to the selected drug 
                publication date (but ending not later than October 31 
                of the year prior to the year of such drug publication 
                date), with respect to such year, for which data are 
                available'; and
                    ``(B) in subsection (d)(1)(A), by substituting 
                `during the period beginning on June 1, 2022, and 
                ending on May 31, 2023' for `during the most recent 
                period for which data are available of at least 12 
                months prior to the selected drug publication date (but 
                ending no later than October 31 of the year prior to 
                the year of such drug publication date), with respect 
                to such year'.
            ``(4) Section 1193(a) shall be applied by substituting 
        `October 1, 2023' for `February 28 following the selected drug 
        publication date with respect to such selected drug'.
            ``(5) Section 1194(b)(2) shall be applied--
                    ``(A) in subparagraph (A), by substituting `October 
                2, 2023' for `March 1 of the year of the selected drug 
                publication date, with respect to the selected drug';
                    ``(B) in subparagraph (B), by substituting 
                `February 1, 2024' for `the June 1 following the 
                selected drug publication date'; and
                    ``(C) in subparagraph (E), by substituting `August 
                1, 2024' for `the first day of November following the 
                selected drug publication date, with respect to the 
                initial price applicability year '.
            ``(6) Section 1195(a)(1) shall be applied by substituting 
        `September 1, 2024' for `November 30 of the year that is 2 
        years prior to such initial price applicability year'.

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

    ``(a) In General.--Not later than the selected drug publication 
date with respect to an initial price applicability year, in accordance 
with subsection (b), the Secretary shall select and publish a list of--
            ``(1) with respect to the initial price applicability year 
        2026, 10 negotiation-eligible drugs described in subparagraph 
        (A) of subsection (d)(1), but not subparagraph (B) of such 
        subsection, with respect to such year (or, all (if such number 
        is less than 10) such negotiation-eligible drugs with respect 
        to such year);
            ``(2) with respect to the initial price applicability year 
        2027, 15 negotiation-eligible drugs described in subparagraph 
        (A) of subsection (d)(1), but not subparagraph (B) of such 
        subsection, with respect to such year (or, all (if such number 
        is less than 15) such negotiation-eligible drugs with respect 
        to such year);
            ``(3) with respect to the initial price applicability year 
        2028, 15 negotiation-eligible drugs described in subparagraph 
        (A) or (B) of subsection (d)(1) with respect to such year (or, 
        all (if such number is less than 15) such negotiation-eligible 
        drugs with respect to such year); and
            ``(4) with respect to the initial price applicability year 
        2029 or a subsequent year, 20 negotiation-eligible drugs 
        described in subparagraph (A) or (B) of subsection (d)(1), with 
        respect to such year (or, all (if such number is less than 20) 
        such negotiation-eligible drugs with respect to such year).
Subject to subsection (c)(2) and section 1194(f)(5), each drug 
published on the list pursuant to the previous sentence shall be 
subject to the negotiation process under section 1194 for the 
negotiation period with respect to such initial price applicability 
year (and the renegotiation process under such section as applicable 
for any subsequent year during the applicable price applicability 
period).
    ``(b) Selection of Drugs.--
            ``(1) In general.--In carrying out subsection (a), subject 
        to paragraph (2), the Secretary shall, with respect to an 
        initial price applicability year, do the following:
                    ``(A) Rank negotiation-eligible drugs described in 
                subsection (d)(1) according to the total expenditures 
                for such drugs under parts B and D of title XVIII, as 
                determined by the Secretary, during the most recent 
                period of 12 months prior to the selected drug 
                publication date (but ending not later than October 31 
                of the year prior to the year of such drug publication 
                date), with respect to such year, for which data are 
                available, with the negotiation-eligible drugs with the 
                highest total expenditures being ranked the highest.
                    ``(B) Select from such ranked drugs with respect to 
                such year the negotiation-eligible drugs with the 
                highest such rankings.
            ``(2) High spend part d drugs for 2026 and 2027.--With 
        respect to the initial price applicability year 2026 and with 
        respect to the initial price applicability year 2027, the 
        Secretary shall apply paragraph (1) as if the reference to 
        `negotiation-eligible drugs described in subsection (d)(1)' 
        were a reference to `negotiation-eligible drugs described in 
        subsection (d)(1)(A)' and as if the reference to `total 
        expenditures for such drugs under parts B and D of title XVIII' 
        were a reference to `total expenditures for such drugs under 
        part D of title XVIII'.
    ``(c) Selected Drug.--
            ``(1) In general.--For purposes of this part, in accordance 
        with subsection (e)(2) and subject to paragraph (2), each 
        negotiation-eligible drug included on the list published under 
        subsection (a) with respect to an initial price applicability 
        year shall be referred to as a `selected drug' with respect to 
        such year and each subsequent year beginning before the first 
        year that begins at least 9 months after the date on which the 
        Secretary determines at least one drug or biological product--
                    ``(A) is approved or licensed (as applicable)--
                            ``(i) under section 505(j) of the Federal 
                        Food, Drug, and Cosmetic Act using such drug as 
                        the listed drug; or
                            ``(ii) under section 351(k) of the Public 
                        Health Service Act using such drug as the 
                        reference product; and
                    ``(B) is marketed pursuant to such approval or 
                licensure.
            ``(2) Clarification.--A negotiation-eligible drug--
                    ``(A) that is included on the list published under 
                subsection (a) with respect to an initial price 
                applicability year; and
                    ``(B) for which the Secretary makes a determination 
                described in paragraph (1) before or during the 
                negotiation period with respect to such initial price 
                applicability year;
        shall not be subject to the negotiation process under section 
        1194 with respect to such negotiation period and shall continue 
        to be considered a selected drug under this part with respect 
        to the number of negotiation-eligible drugs published on the 
        list under subsection (a) with respect to such initial price 
        applicability year.
    ``(d) Negotiation-Eligible Drug.--
            ``(1) In general.--For purposes of this part, subject to 
        paragraph (2), the term `negotiation-eligible drug' means, with 
        respect to the selected drug publication date with respect to 
        an initial price applicability year, a qualifying single source 
        drug, as defined in subsection (e), that is described in either 
        of the following subparagraphs (or, with respect to the initial 
        price applicability year 2026 or 2027, that is described in 
        subparagraph (A)):
                    ``(A) Part d high spend drugs.--The qualifying 
                single source drug is, determined in accordance with 
                subsection (e)(2), among the 50 qualifying single 
                source drugs with the highest total expenditures under 
                part D of title XVIII, as determined by the Secretary 
                in accordance with paragraph (3), during the most 
                recent 12-month period for which data are available 
                prior to such selected drug publication date (but 
                ending no later than October 31 of the year prior to 
                the year of such drug publication date).
                    ``(B) Part b high spend drugs.--The qualifying 
                single source drug is, determined in accordance with 
                subsection (e)(2), among the 50 qualifying single 
                source drugs with the highest total expenditures under 
                part B of title XVIII, as determined by the Secretary 
                in accordance with paragraph (3), during such most 
                recent 12-month period, as described in subparagraph 
                (A).
            ``(2) Exception for small biotech drugs.--
                    ``(A) In general.--Subject to subparagraph (C), the 
                term `negotiation-eligible drug' shall not include, 
                with respect to the initial price applicability years 
                2026, 2027, and 2028, a qualifying single source drug 
                that meets either of the following:
                            ``(i) Part d drugs.--The total expenditures 
                        for the qualifying single source drug under 
                        part D of title XVIII, as determined by the 
                        Secretary in accordance with paragraph (3)(B), 
                        during 2021--
                                    ``(I) are equal to or less than 1 
                                percent of the total expenditures under 
                                such part D, as so determined, for all 
                                covered part D drugs (as defined in 
                                section 1860D-2(e)) during such year; 
                                and
                                    ``(II) are equal to at least 80 
                                percent of the total expenditures under 
                                such part D, as so determined, for all 
                                covered part D drugs for which the 
                                manufacturer of the drug has an 
                                agreement in effect under section 
                                1860D-14A during such year.
                            ``(ii) Part b drugs.--The total 
                        expenditures for the qualifying single source 
                        drug under part B of title XVIII, as determined 
                        by the Secretary in accordance with paragraph 
                        (3)(B), during 2021--
                                    ``(I) are equal to or less than 1 
                                percent of the total expenditures under 
                                such part B, as so determined, for all 
                                qualifying single source drugs for 
                                which payment may be made under such 
                                part B during such year; and
                                    ``(II) are equal to at least 80 
                                percent of the total expenditures under 
                                such part B, as so determined, for all 
                                qualifying single source drugs of the 
                                manufacturer for which payment may be 
                                made under such part B during such 
                                year.
                    ``(B) Clarifications relating to manufacturers.--
                            ``(i) Aggregation rule.--All persons 
                        treated as a single employer under subsection 
                        (a) or (b) of section 52 of the Internal 
                        Revenue Code of 1986 shall be treated as one 
                        manufacturer for purposes of this paragraph.
                            ``(ii) Limitation.--A drug shall not be 
                        considered to be a qualifying single source 
                        drug described in clause (i) or (ii) of 
                        subparagraph (A) if the manufacturer of such 
                        drug is acquired after 2021 by another 
                        manufacturer that does not meet the definition 
                        of a specified manufacturer under section 
                        1860D-14C(g)(4)(B)(ii), effective at the 
                        beginning of the plan year immediately 
                        following such acquisition or, in the case of 
                        an acquisition before 2025, effective January 
                        1, 2025.
                    ``(C) Drugs not included as small biotech drugs.--A 
                new formulation, such as an extended release 
                formulation, of a qualifying single source drug shall 
                not be considered a qualifying single source drug 
                described in subparagraph (A).
            ``(3) Clarifications and determinations.--
                    ``(A) Previously selected drugs and small biotech 
                drugs excluded.--In applying subparagraphs (A) and (B) 
                of paragraph (1), the Secretary shall not consider or 
                count--
                            ``(i) drugs that are already selected 
                        drugs; and
                            ``(ii) for initial price applicability 
                        years 2026, 2027, and 2028, qualifying single 
                        source drugs described in paragraph (2)(A).
                    ``(B) Use of data.--In determining whether a 
                qualifying single source drug satisfies any of the 
                criteria described in paragraph (1) or (2), the 
                Secretary shall use data that is aggregated across 
                dosage forms and strengths of the drug, including new 
                formulations of the drug, such as an extended release 
                formulation, and not based on the specific formulation 
                or package size or package type of the drug.
    ``(e) Qualifying Single Source Drug.--
            ``(1) In general.--For purposes of this part, the term 
        `qualifying single source drug' means, with respect to an 
        initial price applicability year, subject to paragraphs (2) and 
        (3), a covered part D drug (as defined in section 1860D-2(e)) 
        that is described in any of the following or a drug or 
        biological product for which payment may be made under part B 
        of title XVIII that is described in any of the following:
                    ``(A) Drug products.--A drug--
                            ``(i) that is approved under section 505(c) 
                        of the Federal Food, Drug, and Cosmetic Act and 
                        is marketed pursuant to such approval;
                            ``(ii) for which, as of the selected drug 
                        publication date with respect to such initial 
                        price applicability year, at least 7 years will 
                        have elapsed since the date of such approval; 
                        and
                            ``(iii) that is not the listed drug for any 
                        drug that is approved and marketed under 
                        section 505(j) of such Act.
                    ``(B) Biological products.--A biological product--
                            ``(i) that is licensed under section 351(a) 
                        of the Public Health Service Act and is 
                        marketed under section 351 of such Act;
                            ``(ii) for which, as of the selected drug 
                        publication date with respect to such initial 
                        price applicability year, at least 11 years 
                        will have elapsed since the date of such 
                        licensure; and
                            ``(iii) that is not the reference product 
                        for any biological product that is licensed and 
                        marketed under section 351(k) of such Act.
            ``(2) Treatment of authorized generic drugs.--
                    ``(A) In general.--In the case of a qualifying 
                single source drug described in subparagraph (A) or (B) 
                of paragraph (1) that is the listed drug (as such term 
                is used in section 505(j) of the Federal Food, Drug, 
                and Cosmetic Act) or a product described in clause (ii) 
                of subparagraph (B), with respect to an authorized 
                generic drug, in applying the provisions of this part, 
                such authorized generic drug and such listed drug or 
                such product shall be treated as the same qualifying 
                single source drug.
                    ``(B) Authorized generic drug defined.--For 
                purposes of this paragraph, the term `authorized 
                generic drug' means--
                            ``(i) in the case of a drug, an authorized 
                        generic drug (as such term is defined in 
                        section 505(t)(3) of the Federal Food, Drug, 
                        and Cosmetic Act); and
                            ``(ii) in the case of a biological product, 
                        a product that--
                                    ``(I) has been licensed under 
                                section 351(a) of such Act; and
                                    ``(II) is marketed, sold, or 
                                distributed directly or indirectly to 
                                retail class of trade under a different 
                                labeling, packaging (other than 
                                repackaging as the reference product in 
                                blister packs, unit doses, or similar 
                                packaging for use in institutions), 
                                product code, labeler code, trade name, 
                                or trade mark than the reference 
                                product.
            ``(3) Exclusions.--In this part, the term `qualifying 
        single source drug' does not include any of the following:
                    ``(A) Certain orphan drugs.--A drug that is 
                designated as a drug for only one rare disease or 
                condition under section 526 of the Federal Food, Drug, 
                and Cosmetic Act and for which the only approved 
                indication (or indications) is for such disease or 
                condition.
                    ``(B) Low spend medicare drugs.--A drug or 
                biological product with respect to which the total 
                expenditures under parts B and D of title XVIII, as 
                determined by the Secretary in accordance with 
                subsection (d)(3)(B)--
                            ``(i) with respect to initial price 
                        applicability year 2026, is less than, during 
                        the period beginning on June 1, 2022, and 
                        ending on May 31, 2023, $200,000,000;
                            ``(ii) with respect to initial price 
                        applicability year 2027, is less than, during 
                        the most recent 12-month period applicable 
                        under subparagraphs (A) and (B) of subsection 
                        (d)(1) for such year, the dollar amount 
                        specified in clause (i) increased by the annual 
                        percentage increase in the consumer price index 
                        for all urban consumers (all items; United 
                        States city average) for the period beginning 
                        on June 1, 2023, and ending on September 30, 
                        2024; or
                            ``(iii) with respect to a subsequent 
                        initial price applicability year, is less than, 
                        during the most recent 12-month period 
                        applicable under subparagraphs (A) and (B) of 
                        subsection (d)(1) for such year, the dollar 
                        amount specified in this subparagraph for the 
                        previous initial price applicability year 
                        increased by the annual percentage increase in 
                        such consumer price index for the 12-month 
                        period ending on September 30 of the year prior 
                        to the year of the selected drug publication 
                        date with respect to such subsequent initial 
                        price applicability year.
                    ``(C) Plasma-derived products.--A biological 
                product that is derived from human whole blood or 
                plasma.

``SEC. 1193. MANUFACTURER AGREEMENTS.

    ``(a) In General.--For purposes of section 1191(a)(2), the 
Secretary shall enter into agreements with manufacturers of selected 
drugs with respect to a price applicability period, by not later than 
February 28 following the selected drug publication date with respect 
to such selected drug, under which--
            ``(1) during the negotiation period for the initial price 
        applicability year for the selected drug, the Secretary and the 
        manufacturer, in accordance with section 1194, negotiate to 
        determine (and, by not later than the last date of such period, 
        agree to) a maximum fair price for such selected drug of the 
        manufacturer in order for the manufacturer to provide access to 
        such price--
                    ``(A) to maximum fair price eligible individuals 
                who with respect to such drug are described in 
                subparagraph (A) of section 1191(c)(2) and are 
                dispensed such drug (and to pharmacies, mail order 
                services, and other dispensers, with respect to such 
                maximum fair price eligible individuals who are 
                dispensed such drugs) during, subject to paragraph (2), 
                the price applicability period; and
                    ``(B) to hospitals, physicians, and other providers 
                of services and suppliers with respect to maximum fair 
                price eligible individuals who with respect to such 
                drug are described in subparagraph (B) of such section 
                and are furnished or administered such drug during, 
                subject to paragraph (2), the price applicability 
                period;
            ``(2) the Secretary and the manufacturer shall, in 
        accordance with section 1194, renegotiate (and, by not later 
        than the last date of the period of renegotiation, agree to) 
        the maximum fair price for such drug, in order for the 
        manufacturer to provide access to such maximum fair price (as 
        so renegotiated)--
                    ``(A) to maximum fair price eligible individuals 
                who with respect to such drug are described in 
                subparagraph (A) of section 1191(c)(2) and are 
                dispensed such drug (and to pharmacies, mail order 
                services, and other dispensers, with respect to such 
                maximum fair price eligible individuals who are 
                dispensed such drugs) during any year during the price 
                applicability period (beginning after such 
                renegotiation) with respect to such selected drug; and
                    ``(B) to hospitals, physicians, and other providers 
                of services and suppliers with respect to maximum fair 
                price eligible individuals who with respect to such 
                drug are described in subparagraph (B) of such section 
                and are furnished or administered such drug during any 
                year described in subparagraph (A);
            ``(3) subject to subsection (d), access to the maximum fair 
        price (including as renegotiated pursuant to paragraph (2)), 
        with respect to such a selected drug, shall be provided by the 
        manufacturer to--
                    ``(A) maximum fair price eligible individuals, who 
                with respect to such drug are described in subparagraph 
                (A) of section 1191(c)(2), at the pharmacy, mail order 
                service, or other dispenser at the point-of-sale of 
                such drug (and shall be provided by the manufacturer to 
                the pharmacy, mail order service, or other dispenser, 
                with respect to such maximum fair price eligible 
                individuals who are dispensed such drugs), as described 
                in paragraph (1)(A) or (2)(A), as applicable; and
                    ``(B) hospitals, physicians, and other providers of 
                services and suppliers with respect to maximum fair 
                price eligible individuals who with respect to such 
                drug are described in subparagraph (B) of such section 
                and are furnished or administered such drug, as 
                described in paragraph (1)(B) or (2)(B), as applicable;
            ``(4) the manufacturer submits to the Secretary, in a form 
        and manner specified by the Secretary, for the negotiation 
        period for the price applicability period (and, if applicable, 
        before any period of renegotiation pursuant to section 1194(f)) 
        with respect to such drug--
                    ``(A) information on the non-Federal average 
                manufacturer price (as defined in section 8126(h)(5) of 
                title 38, United States Code) for the drug for the 
                applicable year or period; and
                    ``(B) information that the Secretary requires to 
                carry out the negotiation (or renegotiation process) 
                under this part; and
            ``(5) the manufacturer complies with requirements 
        determined by the Secretary to be necessary for purposes of 
        administering the program and monitoring compliance with the 
        program.
    ``(b) Agreement in Effect Until Drug Is No Longer a Selected 
Drug.--An agreement entered into under this section shall be effective, 
with respect to a selected drug, until such drug is no longer 
considered a selected drug under section 1192(c).
    ``(c) Confidentiality of Information.--Information submitted to the 
Secretary under this part by a manufacturer of a selected drug that is 
proprietary information of such manufacturer (as determined by the 
Secretary) shall be used only by the Secretary or disclosed to and used 
by the Comptroller General of the United States for purposes of 
carrying out this part.
    ``(d) Nonduplication With 340B Ceiling Price.--Under an agreement 
entered into under this section, the manufacturer of a selected drug--
            ``(1) shall not be required to provide access to the 
        maximum fair price under subsection (a)(3), with respect to 
        such selected drug and maximum fair price eligible individuals 
        who are eligible to be furnished, administered, or dispensed 
        such selected drug at a covered entity described in section 
        340B(a)(4) of the Public Health Service Act, to such covered 
        entity if such selected drug is subject to an agreement 
        described in section 340B(a)(1) of such Act and the ceiling 
        price (defined in section 340B(a)(1) of such Act) is lower than 
        the maximum fair price for such selected drug; and
            ``(2) shall be required to provide access to the maximum 
        fair price to such covered entity with respect to maximum fair 
        price eligible individuals who are eligible to be furnished, 
        administered, or dispensed such selected drug at such entity at 
        such ceiling price in a nonduplicated amount to the ceiling 
        price if such maximum fair price is below the ceiling price for 
        such selected drug.

``SEC. 1194. NEGOTIATION AND RENEGOTIATION PROCESS.

    ``(a) In General.--For purposes of this part, under an agreement 
under section 1193 between the Secretary and a manufacturer of a 
selected drug (or selected drugs), with respect to the period for which 
such agreement is in effect and in accordance with subsections (b), 
(c), and (d), the Secretary and the manufacturer--
            ``(1) shall during the negotiation period with respect to 
        such drug, in accordance with this section, negotiate a maximum 
        fair price for such drug for the purpose described in section 
        1193(a)(1); and
            ``(2) renegotiate, in accordance with the process specified 
        pursuant to subsection (f), such maximum fair price for such 
        drug for the purpose described in section 1193(a)(2) if such 
        drug is a renegotiation-eligible drug under such subsection.
    ``(b) Negotiation Process Requirements.--
            ``(1) Methodology and process.--The Secretary shall develop 
        and use a consistent methodology and process, in accordance 
        with paragraph (2), for negotiations under subsection (a) that 
        aims to achieve the lowest maximum fair price for each selected 
        drug.
            ``(2) Specific elements of negotiation process.--As part of 
        the negotiation process under this section, with respect to a 
        selected drug and the negotiation period with respect to the 
        initial price applicability year with respect to such drug, the 
        following shall apply:
                    ``(A) Submission of information.--Not later than 
                March 1 of the year of the selected drug publication 
                date, with respect to the selected drug, the 
                manufacturer of the drug shall submit to the Secretary, 
                in accordance with section 1193(a)(4), the information 
                described in such section.
                    ``(B) Initial offer by secretary.--Not later than 
                the June 1 following the selected drug publication 
                date, the Secretary shall provide the manufacturer of 
                the selected drug with a written initial offer that 
                contains the Secretary's proposal for the maximum fair 
                price of the drug and a concise justification based on 
                the factors described in section 1194(e) that were used 
                in developing such offer.
                    ``(C) Response to initial offer.--
                            ``(i) In general.--Not later than 30 days 
                        after the date of receipt of an initial offer 
                        under subparagraph (B), the manufacturer shall 
                        either accept such offer or propose a 
                        counteroffer to such offer.
                            ``(ii) Counteroffer requirements.--If a 
                        manufacturer proposes a counteroffer, such 
                        counteroffer--
                                    ``(I) shall be in writing; and
                                    ``(II) shall be justified based on 
                                the factors described in subsection 
                                (e).
                    ``(D) Response to counteroffer.--After receiving a 
                counteroffer under subparagraph (C), the Secretary 
                shall respond in writing to such counteroffer.
                    ``(E) Deadline.--All negotiations between the 
                Secretary and the manufacturer of the selected drug 
                shall end prior to the first day of November following 
                the selected drug publication date, with respect to the 
                initial price applicability year.
                    ``(F) Limitations on offer amount.--In negotiating 
                the maximum fair price of a selected drug, with respect 
                to the initial price applicability year for the 
                selected drug, and, as applicable, in renegotiating the 
                maximum fair price for such drug, with respect to a 
                subsequent year during the price applicability period 
                for such drug, the Secretary shall not offer (or agree 
                to a counteroffer for) a maximum fair price for the 
                selected drug that--
                            ``(i) exceeds the ceiling determined under 
                        subsection (c) for the selected drug and year; 
                        or
                            ``(ii) as applicable, is less than the 
                        floor determined under subsection (d) for the 
                        selected drug and year.
    ``(c) Ceiling for Maximum Fair Price.--
            ``(1) General ceiling.--
                    ``(A) In general.--The maximum fair price 
                negotiated under this section for a selected drug, with 
                respect to the first initial price applicability year 
                of the price applicability period with respect to such 
                drug, shall not exceed the lower of the amount under 
                subparagraph (B) or the amount under subparagraph (C).
                    ``(B) Subparagraph (B) amount.--An amount equal to 
                the following:
                            ``(i) Covered part d drug.--In the case of 
                        a covered part D drug (as defined in section 
                        1860D-2(e)), the sum of the plan specific 
                        enrollment weighted amounts for each 
                        prescription drug plan or MA-PD plan (as 
                        determined under paragraph (2)).
                            ``(ii) Part b drug or biological.--In the 
                        case of a drug or biological product for which 
                        payment may be made under part B of title 
                        XVIII, the payment amount under section 
                        1847A(b)(4) for the drug or biological product 
                        for the year prior to the year of the selected 
                        drug publication date with respect to the 
                        initial price applicability year for the drug 
                        or biological product.
                    ``(C) Subparagraph (C) amount.--An amount equal to 
                the applicable percent described in paragraph (3), with 
                respect to such drug, of the following:
                            ``(i) Initial price applicability year 
                        2026.--In the case of a selected drug with 
                        respect to which such initial price 
                        applicability year is 2026, the average non-
                        Federal average manufacturer price for such 
                        drug for 2021 (or, in the case that there is 
                        not an average non-Federal average manufacturer 
                        price available for such drug for 2021, for the 
                        first full year following the market entry for 
                        such drug), increased by the percentage 
                        increase in the consumer price index for all 
                        urban consumers (all items; United States city 
                        average) from September 2021 (or December of 
                        such first full year following the market 
                        entry), as applicable, to September of the year 
                        prior to the year of the selected drug 
                        publication date with respect to such initial 
                        price applicability year.
                            ``(ii) Initial price applicability year 
                        2027 and subsequent years.--In the case of a 
                        selected drug with respect to which such 
                        initial price applicability year is 2027 or a 
                        subsequent year, the lower of--
                                    ``(I) the average non-Federal 
                                average manufacturer price for such 
                                drug for 2021 (or, in the case that 
                                there is not an average non-Federal 
                                average manufacturer price available 
                                for such drug for 2021, for the first 
                                full year following the market entry 
                                for such drug), increased by the 
                                percentage increase in the consumer 
                                price index for all urban consumers 
                                (all items; United States city average) 
                                from September 2021 (or December of 
                                such first full year following the 
                                market entry), as applicable, to 
                                September of the year prior to the year 
                                of the selected drug publication date 
                                with respect to such initial price 
                                applicability year; or
                                    ``(II) the average non-Federal 
                                average manufacturer price for such 
                                drug for the year prior to the selected 
                                drug publication date with respect to 
                                such initial price applicability year.
            ``(2) Plan specific enrollment weighted amount.--For 
        purposes of paragraph (1)(B)(i), the plan specific enrollment 
        weighted amount for a prescription drug plan or an MA-PD plan 
        with respect to a covered Part D drug is an amount equal to the 
        product of--
                    ``(A) the negotiated price of the drug under such 
                plan under part D of title XVIII, net of all price 
                concessions received by such plan or pharmacy benefit 
                managers on behalf of such plan, for the most recent 
                year for which data is available; and
                    ``(B) a fraction--
                            ``(i) the numerator of which is the total 
                        number of individuals enrolled in such plan in 
                        such year; and
                            ``(ii) the denominator of which is the 
                        total number of individuals enrolled in a 
                        prescription drug plan or an MA-PD plan in such 
                        year.
            ``(3) Applicable percent described.--For purposes of this 
        subsection, the applicable percent described in this paragraph 
        is the following:
                    ``(A) Short-monopoly drugs and vaccines.--With 
                respect to a selected drug (other than an extended-
                monopoly drug and a long-monopoly drug), 75 percent.
                    ``(B) Extended-monopoly drugs.--With respect to an 
                extended-monopoly drug, 65 percent.
                    ``(C) Long-monopoly drugs.--With respect to a long-
                monopoly drug, 40 percent.
            ``(4) Extended-monopoly drug defined.--
                    ``(A) In general.--In this part, subject to 
                subparagraph (B), the term `extended-monopoly drug' 
                means, with respect to an initial price applicability 
                year, a selected drug for which at least 12 years, but 
                fewer than 16 years, have elapsed since the date of 
                approval of such drug under section 505(c) of the 
                Federal Food, Drug, and Cosmetic Act or since the date 
                of licensure of such drug under section 351(a) of the 
                Public Health Service Act, as applicable.
                    ``(B) Exclusions.--The term `extended-monopoly 
                drug' shall not include any of the following:
                            ``(i) A vaccine that is licensed under 
                        section 351 of the Public Health Service Act 
                        and marketed pursuant to such section.
                            ``(ii) A selected drug for which a 
                        manufacturer had an agreement under this part 
                        with the Secretary with respect to an initial 
                        price applicability year that is before 2030.
                    ``(C) Clarification.--Nothing in subparagraph 
                (B)(ii) shall limit the transition of a selected drug 
                described in paragraph (3)(A) to a long-monopoly drug 
                if the selected drug meets the definition of a long-
                monopoly drug.
            ``(5) Long-monopoly drug defined.--
                    ``(A) In general.--In this part, subject to 
                subparagraph (B), the term `long-monopoly drug' means, 
                with respect to an initial price applicability year, a 
                selected drug for which at least 16 years have elapsed 
                since the date of approval of such drug under section 
                505(c) of the Federal Food, Drug, and Cosmetic Act or 
                since the date of licensure of such drug under section 
                351(a) of the Public Health Service Act, as applicable.
                    ``(B) Exclusion.--The term `long-monopoly drug' 
                shall not include a vaccine that is licensed under 
                section 351 of the Public Health Service Act and 
                marketed pursuant to such section.
            ``(6) Average non-federal average manufacturer price.--In 
        this part, the term `average non-Federal average manufacturer 
        price' means the average of the non-Federal average 
        manufacturer price (as defined in section 8126(h)(5) of title 
        38, United States Code) for the 4 calendar quarters of the year 
        involved.
    ``(d) Temporary Floor for Small Biotech Drugs.--In the case of a 
selected drug that is a qualifying single source drug described in 
section 1192(d)(2) and with respect to which the first initial price 
applicability year of the price applicability period with respect to 
such drug is 2029 or 2030, the maximum fair price negotiated under this 
section for such drug for such initial price applicability year may not 
be less than 66 percent of the average non-Federal average manufacturer 
price for such drug (as defined in subsection (c)(6)) for 2021 (or, in 
the case that there is not an average non-Federal average manufacturer 
price available for such drug for 2021, for the first full year 
following the market entry for such drug), increased by the percentage 
increase in the consumer price index for all urban consumers (all 
items; United States city average) from September 2021 (or December of 
such first full year following the market entry), as applicable, to 
September of the year prior to the selected drug publication date with 
respect to the initial price applicability year.
    ``(e) Factors.--For purposes of negotiating the maximum fair price 
of a selected drug under this part with the manufacturer of the drug, 
the Secretary shall consider the following factors, as applicable to 
the drug, as the basis for determining the offers and counteroffers 
under subsection (b) for the drug:
            ``(1) Manufacturer-specific data.--The following data, with 
        respect to such selected drug, as submitted by the 
        manufacturer:
                    ``(A) Research and development costs of the 
                manufacturer for the drug and the extent to which the 
                manufacturer has recouped research and development 
                costs.
                    ``(B) Current unit costs of production and 
                distribution of the drug.
                    ``(C) Prior Federal financial support for novel 
                therapeutic discovery and development with respect to 
                the drug.
                    ``(D) Data on pending and approved patent 
                applications, exclusivities recognized by the Food and 
                Drug Administration, and applications and approvals 
                under section 505(c) of the Federal Food, Drug, and 
                Cosmetic Act or section 351(a) of the Public Health 
                Service Act for the drug.
                    ``(E) Market data and revenue and sales volume data 
                for the drug in the United States.
            ``(2) Evidence about alternative treatments.--The following 
        evidence, as available, with respect to such selected drug and 
        therapeutic alternatives to such drug:
                    ``(A) The extent to which such drug represents a 
                therapeutic advance as compared to existing therapeutic 
                alternatives and the costs of such existing therapeutic 
                alternatives.
                    ``(B) Prescribing information approved by the Food 
                and Drug Administration for such drug and therapeutic 
                alternatives to such drug.
                    ``(C) Comparative effectiveness of such drug and 
                therapeutic alternatives to such drug, taking into 
                consideration the effects of such drug and therapeutic 
                alternatives to such drug on specific populations, such 
                as individuals with disabilities, the elderly, the 
                terminally ill, children, and other patient 
                populations.
                    ``(D) The extent to which such drug and therapeutic 
                alternatives to such drug address unmet medical needs 
                for a condition for which treatment or diagnosis is not 
                addressed adequately by available therapy.
        In using evidence described in subparagraph (C), the Secretary 
        shall not use evidence from comparative clinical effectiveness 
        research in a manner that treats extending the life of an 
        elderly, disabled, or terminally ill individual as of lower 
        value than extending the life of an individual who is younger, 
        nondisabled, or not terminally ill.
    ``(f) Renegotiation Process.--
            ``(1) In general.--In the case of a renegotiation-eligible 
        drug (as defined in paragraph (2)) that is selected under 
        paragraph (3), the Secretary shall provide for a process of 
        renegotiation (for years (beginning with 2028) during the price 
        applicability period, with respect to such drug) of the maximum 
        fair price for such drug consistent with paragraph (4).
            ``(2) Renegotiation-eligible drug defined.--In this 
        section, the term `renegotiation-eligible drug' means a 
        selected drug that is any of the following:
                    ``(A) Addition of new indication.--A selected drug 
                for which a new indication is added to the drug.
                    ``(B) Change of status to an extended-monopoly 
                drug.--A selected drug that--
                            ``(i) is not an extended-monopoly or a 
                        long-monopoly drug; and
                            ``(ii) for which there is a change in 
                        status to that of an extended-monopoly drug.
                    ``(C) Change of status to a long-monopoly drug.--A 
                selected drug that--
                            ``(i) is not a long-monopoly drug; and
                            ``(ii) for which there is a change in 
                        status to that of a long-monopoly drug.
                    ``(D) Material changes.--A selected drug for which 
                the Secretary determines there has been a material 
                change of any of the factors described in paragraph (1) 
                or (2) of subsection (e).
            ``(3) Selection of drugs for renegotiation.--For each year 
        (beginning with 2028), the Secretary shall select among 
        renegotiation-eligible drugs for renegotiation as follows:
                    ``(A) All extended-monopoly negotiation-eligible 
                drugs.--The Secretary shall select all renegotiation-
                eligible drugs described in paragraph (2)(B).
                    ``(B) All long-monopoly negotiation-eligible 
                drugs.--The Secretary shall select all renegotiation-
                eligible drugs described in paragraph (2)(C).
                    ``(C) Remaining drugs.--Among the remaining 
                renegotiation-eligible drugs described in subparagraphs 
                (A) and (D) of paragraph (2), the Secretary shall 
                select renegotiation-eligible drugs for which the 
                Secretary expects renegotiation is likely to result in 
                a significant change in the maximum fair price 
                otherwise negotiated.
            ``(4) Renegotiation process.--
                    ``(A) In general.--The Secretary shall specify the 
                process for renegotiation of maximum fair prices with 
                the manufacturer of a renegotiation-eligible drug 
                selected for renegotiation under this subsection.
                    ``(B) Consistent with negotiation process.--The 
                process specified under subparagraph (A) shall, to the 
                extent practicable, be consistent with the methodology 
                and process established under subsection (b) and in 
                accordance with subsections (c), (d), and (e), and for 
                purposes of applying subsections (c)(1)(A) and (d), the 
                reference to the first initial price applicability year 
                of the price applicability period with respect to such 
                drug shall be treated as the first initial price 
                applicability year of such period for which the maximum 
                fair price established pursuant to such renegotiation 
                applies, including for applying subsection (c)(3)(B) in 
                the case of renegotiation-eligible drugs described in 
                paragraph (3)(A) of this subsection and subsection 
                (c)(3)(C) in the case of renegotiation-eligible drugs 
                described in paragraph (3)(B) of this subsection.
            ``(5) Clarification.--A renegotiation-eligible drug for 
        which the Secretary makes a determination described in section 
        1192(c)(1) before or during the period of renegotiation shall 
        not be subject to the renegotiation process under this section.
    ``(g) Clarification.--The maximum fair price for a selected drug 
described in subparagraph (A) or (B) of paragraph (1) shall take effect 
no later than the first day of the first calendar quarter that begins 
after the date described in subparagraph (A) or (B), as applicable.

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

    ``(a) In General.--With respect to an initial price applicability 
year and a selected drug with respect to such year--
            ``(1) not later than November 30 of the year that is 2 
        years prior to such initial price applicability year, the 
        Secretary shall publish the maximum fair price for such drug 
        negotiated with the manufacturer of such drug under this part; 
        and
            ``(2) not later than March 1 of the year prior to such 
        initial price applicability year, the Secretary shall publish, 
        subject to section 1193(c), the explanation for the maximum 
        fair price with respect to the factors as applied under section 
        1194(e) for such drug described in paragraph (1).
    ``(b) Updates.--
            ``(1) Subsequent year maximum fair prices.--For a selected 
        drug, for each year subsequent to the first initial price 
        applicability year of the price applicability period with 
        respect to such drug, with respect to which an agreement for 
        such drug is in effect under section 1193, not later than 
        November 30 of the year that is 2 years prior to such 
        subsequent year, the Secretary shall publish the maximum fair 
        price applicable to such drug and year, which shall be--
                    ``(A) subject to subparagraph (B), the amount equal 
                to the maximum fair price published for such drug for 
                the previous year, increased by the annual percentage 
                increase in the consumer price index for all urban 
                consumers (all items; United States city average) for 
                the 12-month period ending with the July immediately 
                preceding such November 30; or
                    ``(B) in the case the maximum fair price for such 
                drug was renegotiated, for the first year for which 
                such price as so renegotiated applies, such 
                renegotiated maximum fair price.
            ``(2) Prices negotiated after deadline.--In the case of a 
        selected drug with respect to an initial price applicability 
        year for which the maximum fair price is determined under this 
        part after the date of publication under this section, the 
        Secretary shall publish such maximum fair price by not later 
        than 30 days after the date such maximum price is so 
        determined.

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

    ``(a) Administrative Duties.--For purposes of section 1191(a)(4), 
the administrative duties described in this section are the following:
            ``(1) The establishment of procedures to ensure that the 
        maximum fair price for a selected drug is applied before--
                    ``(A) any coverage or financial assistance under 
                other health benefit plans or programs that provide 
                coverage or financial assistance for the purchase or 
                provision of prescription drug coverage on behalf of 
                maximum fair price eligible individuals; and
                    ``(B) any other discounts.
            ``(2) The establishment of procedures to compute and apply 
        the maximum fair price across different strengths and dosage 
        forms of a selected drug and not based on the specific 
        formulation or package size or package type of such drug.
            ``(3) The establishment of procedures to carry out the 
        provisions of this part, as applicable, with respect to--
                    ``(A) maximum fair price eligible individuals who 
                are enrolled in a prescription drug plan under part D 
                of title XVIII or an MA-PD plan under part C of such 
                title; and
                    ``(B) maximum fair price eligible individuals who 
                are enrolled under part B of such title, including who 
                are enrolled in an MA plan under part C of such title.
            ``(4) The establishment of a negotiation process and 
        renegotiation process in accordance with section 1194.
            ``(5) The establishment of a process for manufacturers to 
        submit information described in section 1194(b)(2)(A).
            ``(6) The sharing with the Secretary of the Treasury of 
        such information as is necessary to determine the tax imposed 
        by section 5000D of the Internal Revenue Code of 1986, 
        including the application of such tax to a manufacturer, 
        producer, or importer or the determination of any date 
        described in section 5000D(c)(1) of such Code. For purposes of 
        the preceding sentence, such information shall include--
                    ``(A) the date on which the Secretary receives 
                notification of any termination of an agreement under 
                the Medicare coverage gap discount program under 
                section 1860D-14A and the date on which any subsequent 
                agreement under such program is entered into;
                    ``(B) the date on which the Secretary receives 
                notification of any termination of an agreement under 
                the manufacturer discount program under section 1860D-
                14C and the date on which any subsequent agreement 
                under such program is entered into; and
                    ``(C) the date on which the Secretary receives 
                notification of any termination of a rebate agreement 
                described in section 1927(b) and the date on which any 
                subsequent rebate agreement described in such section 
                is entered into.
            ``(7) The establishment of procedures for purposes of 
        applying section 1192(d)(2)(B).
    ``(b) Compliance Monitoring.--The Secretary shall monitor 
compliance by a manufacturer with the terms of an agreement under 
section 1193 and establish a mechanism through which violations of such 
terms shall be reported.

``SEC. 1197. CIVIL MONETARY PENALTIES.

    ``(a) Violations Relating to Offering of Maximum Fair Price.--Any 
manufacturer of a selected drug that has entered into an agreement 
under section 1193, with respect to a year during the price 
applicability period with respect to such drug, that does not provide 
access to a price that is equal to or less than the maximum fair price 
for such drug for such year--
            ``(1) to a maximum fair price eligible individual who with 
        respect to such drug is described in subparagraph (A) of 
        section 1191(c)(2) and who is dispensed such drug during such 
        year (and to pharmacies, mail order services, and other 
        dispensers, with respect to such maximum fair price eligible 
        individuals who are dispensed such drugs); or
            ``(2) to a hospital, physician, or other provider of 
        services or supplier with respect to maximum fair price 
        eligible individuals who with respect to such drug is described 
        in subparagraph (B) of such section and is furnished or 
        administered such drug by such hospital, physician, or provider 
        or supplier during such year;
shall be subject to a civil monetary penalty equal to ten times the 
amount equal to the product of the number of units of such drug so 
furnished, dispensed, or administered during such year and the 
difference between the price for such drug made available for such year 
by such manufacturer with respect to such individual or hospital, 
physician, provider of services, or supplier and the maximum fair price 
for such drug for such year.
    ``(b) Violations of Certain Terms of Agreement.--Any manufacturer 
of a selected drug that has entered into an agreement under section 
1193, with respect to a year during the price applicability period with 
respect to such drug, that is in violation of a requirement imposed 
pursuant to section 1193(a)(5), including the requirement to submit 
information pursuant to section 1193(a)(4), shall be subject to a civil 
monetary penalty equal to $1,000,000 for each day of such violation.
    ``(c) False Information.--Any manufacturer that knowingly provides 
false information pursuant to section 1196(a)(7) shall be subject to a 
civil monetary penalty equal to $100,000,000 for each item of such 
false information.
    ``(d) Application.--The provisions of section 1128A (other than 
subsections (a) and (b)) shall apply to a civil monetary penalty under 
this section in the same manner as such provisions apply to a penalty 
or proceeding under section 1128A(a).

``SEC. 1198. LIMITATION ON ADMINISTRATIVE AND JUDICIAL REVIEW.

    ``There shall be no administrative or judicial review of any of the 
following:
            ``(1) The determination of a unit, with respect to a drug 
        or biological product, pursuant to section 1191(c)(6).
            ``(2) The selection of drugs under section 1192(b), the 
        determination of negotiation-eligible drugs under section 
        1192(d), and the determination of qualifying single source 
        drugs under section 1192(e).
            ``(3) The determination of a maximum fair price under 
        subsection (b) or (f) of section 1194.
            ``(4) The determination of renegotiation-eligible drugs 
        under section 1194(f)(2) and the selection of renegotiation-
        eligible drugs under section 1194(f)(3).''.
    (b) Application of Maximum Fair Prices and Conforming Amendments.--
            (1) Under medicare.--
                    (A) Application to payments under part b.--Section 
                1847A(b)(1)(B) of the Social Security Act (42 U.S.C. 
                1395w-3a(b)(1)(B)) is amended by inserting ``or in the 
                case of such a drug or biological product that is a 
                selected drug (as referred to in section 1192(c)), with 
                respect to a price applicability period (as defined in 
                section 1191(b)(2)), 106 percent of the maximum fair 
                price (as defined in section 1191(c)(3)) applicable for 
                such drug and a year during such period'' after 
                ``paragraph (4)''.
                    (B) Application under ma of cost-sharing for part b 
                drugs based off of negotiated price.--Section 
                1852(a)(1)(B)(iv) of the Social Security Act (42 U.S.C. 
                1395w-22(a)(1)(B)(iv)) is amended--
                            (i) by redesignating subclause (VII) as 
                        subclause (VIII); and
                            (ii) by inserting after subclause (VI) the 
                        following subclause:
                                    ``(VII) A drug or biological 
                                product that is a selected drug (as 
                                referred to in section 1192(c)).''.
                    (C) Exception to part D non-interference.--Section 
                1860D-11(i) of the Social Security Act (42 U.S.C. 
                1395w-111(i)) is amended--
                            (i) in paragraph (1), by striking ``and'' 
                        at the end;
                            (ii) in paragraph (2), by striking ``or 
                        institute a price structure for the 
                        reimbursement of covered part D drugs.'' and 
                        inserting ``, except as provided under section 
                        1860D-4(b)(3)(l); and''; and
                            (iii) by adding at the end the following 
                        new paragraph:
            ``(3) may not institute a price structure for the 
        reimbursement of covered part D drugs, except as provided under 
        part E of title XI.''.
                    (D) Application as negotiated price under part d.--
                Section 1860D-2(d)(1) of the Social Security Act (42 
                U.S.C. 1395w-102(d)(1)) is amended--
                            (i) in subparagraph (B), by inserting ``, 
                        subject to subparagraph (D),'' after 
                        ``negotiated prices''; and
                            (ii) by adding at the end the following new 
                        subparagraph:
                    ``(D) Application of maximum fair price for 
                selected drugs.--In applying this section, in the case 
                of a covered part D drug that is a selected drug (as 
                referred to in section 1192(c)), with respect to a 
                price applicability period (as defined in section 
                1191(b)(2)), the negotiated prices used for payment (as 
                described in this subsection) shall be no greater than 
                the maximum fair price (as defined in section 
                1191(c)(3)) for such drug and for each year during such 
                period plus any dispensing fees for such drug.''.
                    (E) Coverage of selected drugs.--Section 1860D-
                4(b)(3) of the Social Security Act (42 U.S.C. 1395w-
                104(b)(3)) is amended by adding at the end the 
                following new subparagraph:
                    ``(I) Required inclusion of selected drugs.--
                            ``(i) In general.--For 2026 and each 
                        subsequent year, the PDP sponsor offering a 
                        prescription drug plan shall include each 
                        covered part D drug that is a selected drug 
                        under section 1192 for which a maximum fair 
                        price (as defined in section 1191(c)(3)) is in 
                        effect with respect to the year.
                            ``(ii) Clarification.--Nothing in clause 
                        (i) shall be construed as prohibiting a PDP 
                        sponsor from removing such a selected drug from 
                        a formulary if such removal would be permitted 
                        under section 423.120(b)(5)(iv) of title 42, 
                        Code of Federal Regulations (or any successor 
                        regulation).''.
                    (F) Information from prescription drug plans and 
                ma-pd plans required.--
                            (i) Prescription drug plans.--Section 
                        1860D-12(b) of the Social Security Act (42 
                        U.S.C. 1395w-112(b)) is amended by adding at 
                        the end the following new paragraph:
            ``(8) Provision of information related to maximum fair 
        prices.--Each contract entered into with a PDP sponsor under 
        this part with respect to a prescription drug plan offered by 
        such sponsor shall require the sponsor to provide information 
        to the Secretary as requested by the Secretary for purposes of 
        carrying out section 1194.''.
                            (ii) MA-PD plans.--Section 1857(f)(3) of 
                        the Social Security Act (42 U.S.C. 1395w-
                        27(f)(3)) is amended by adding at the end the 
                        following new subparagraph:
                    ``(E) Provision of information related to maximum 
                fair prices.--Section 1860D-12(b)(8).''.
                    (G) Conditions for coverage.--
                            (i) Medicare part d.--Section 1860D-43(c) 
                        of the Social Security Act (42 U.S.C. 1395w-
                        153(c)) is amended--
                                    (I) by redesignating paragraphs (1) 
                                and (2) as subparagraphs (A) and (B), 
                                respectively;
                                    (II) by striking ``Agreements.--
                                Subsection'' and inserting the 
                                following: ``Agreements.--
            ``(1) In general.--Subject to paragraph (2), subsection''; 
        and
                                    (III) by adding at the end the 
                                following new paragraph:
            ``(2) Exception.--Paragraph (1)(A) shall not apply to a 
        covered part D drug of a manufacturer for any period described 
        in section 5000D(c)(1) of the Internal Revenue Code of 1986 
        with respect to the manufacturer.''.
                            (ii) Medicaid and medicare part b.--Section 
                        1927(a)(3) of the Social Security Act (42 
                        U.S.C. 1396r-8(a)(3)) is amended by adding at 
                        the end the following new sentence: ``The 
                        preceding sentence shall not apply to a single 
                        source drug or innovator multiple source drug 
                        of a manufacturer for any period described in 
                        section 5000D(c)(1) of the Internal Revenue 
                        Code of 1986 with respect to the 
                        manufacturer.''.
                    (H) Disclosure of information under medicare part 
                d.--
                            (i) Contract requirements.--Section 1860D-
                        12(b)(3)(D)(i) of the Social Security Act (42 
                        U.S.C. 1395w-112(b)(3)(D)(i)) is amended by 
                        inserting ``, or carrying out part E of title 
                        XI'' after ``appropriate)''.
                            (ii) Subsidies.--Section 1860D-
                        15(f)(2)(A)(i) of the Social Security Act (42 
                        U.S.C. 1395w-115(f)(2)(A)(i)) is amended by 
                        inserting ``or part E of title XI'' after 
                        ``this section''.
            (2) Drug price negotiation program prices included in best 
        price.--Section 1927(c)(1)(C) of the Social Security Act (42 
        U.S.C. 1396r-8(c)(1)(C)) is amended--
                    (A) in clause (i)(VI), by striking ``any prices 
                charged'' and inserting ``subject to clause (ii)(V), 
                any prices charged''; and
                    (B) in clause (ii)--
                            (i) in subclause (III), by striking ``; 
                        and'' at the end;
                            (ii) in subclause (IV), by striking the 
                        period at the end and inserting ``; and''; and
                            (iii) by adding at the end the following 
                        new subclause:
                                    ``(V) in the case of a rebate 
                                period and a covered outpatient drug 
                                that is a selected drug (as referred to 
                                in section 1192(c)) during such rebate 
                                period, shall be inclusive of the 
                                maximum fair price (as defined in 
                                section 1191(c)(3)) for such drug with 
                                respect to such period.''.
            (3) Maximum fair prices excluded from average manufacturer 
        price.--Section 1927(k)(1)(B)(i) of the Social Security Act (42 
        U.S.C. 1396r-8(k)(1)(B)(i)) is amended--
                    (A) in subclause (IV) by striking ``; and'' at the 
                end;
                    (B) in subclause (V) by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following new 
                subclause:
                                    ``(VI) any reduction in price paid 
                                during the rebate period to the 
                                manufacturer for a drug by reason of 
                                application of part E of title XI.''.
    (c) Implementation for 2026 Through 2028.--The Secretary of Health 
and Human Services shall implement this section, including the 
amendments made by this section, for 2026, 2027, and 2028 by program 
instruction or other forms of program guidance.

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

    (a) In General.--Part E of title XI of the Social Security Act, as 
added by section 11001, is amended--
            (1) in section 1192--
                    (A) in subsection (a), in the flush matter 
                following paragraph (4), by inserting ``and subsection 
                (b)(3)'' after ``the previous sentence'';
                    (B) in subsection (b)--
                            (i) in paragraph (1), by adding at the end 
                        the following new subparagraph:
                    ``(C) In the case of a biological product for which 
                the inclusion of the biological product as a selected 
                drug on a list published under subsection (a) has been 
                delayed under subsection (f)(2), remove such biological 
                product from the rankings under subparagraph (A) before 
                making the selections under subparagraph (B).''; and
                            (ii) by adding at the end the following new 
                        paragraph:
            ``(3) Inclusion of delayed biological products.--Pursuant 
        to subparagraphs (B)(ii)(I) and (C)(i) of subsection (f)(2), 
        the Secretary shall select and include on the list published 
        under subsection (a) the biological products described in such 
        subparagraphs. Such biological products shall count towards the 
        required number of drugs to be selected under subsection 
        (a)(1).''; and
                    (C) by adding at the end the following new 
                subsection:
    ``(f) Special Rule To Delay Selection and Negotiation of Biologics 
for Biosimilar Market Entry.--
            ``(1) Application.--
                    ``(A) In general.--Subject to subparagraph (B), in 
                the case of a biological product that would (but for 
                this subsection) be an extended-monopoly drug (as 
                defined in section 1194(c)(4)) included as a selected 
                drug on the list published under subsection (a) with 
                respect to an initial price applicability year, the 
                rules described in paragraph (2) shall apply if the 
                Secretary determines that there is a high likelihood 
                (as described in paragraph (3)) that a biosimilar 
                biological product (for which such biological product 
                will be the reference product) will be licensed and 
                marketed under section 351(k) of the Public Health 
                Service Act before the date that is 2 years after the 
                selected drug publication date with respect to such 
                initial price applicability year.
                    ``(B) Request required.--
                            ``(i) In general.--The Secretary shall not 
                        provide for a delay under--
                                    ``(I) paragraph (2)(A) unless a 
                                request is made for such a delay by a 
                                manufacturer of a biosimilar biological 
                                product prior to the selected drug 
                                publication date for the list published 
                                under subsection (a) with respect to 
                                the initial price applicability year 
                                for which the biological product may 
                                have been included as a selected drug 
                                on such list but for subparagraph 
                                (2)(A); or
                                    ``(II) paragraph (2)(B)(iii) unless 
                                a request is made for such a delay by 
                                such a manufacturer prior to the 
                                selected drug publication date for the 
                                list published under subsection (a) 
                                with respect to the initial price 
                                applicability year that is 1 year after 
                                the initial price applicability year 
                                for which the biological product 
                                described in subsection (a) would have 
                                been included as a selected drug on 
                                such list but for paragraph (2)(A).
                            ``(ii) Information and documents.--
                                    ``(I) In general.--A request made 
                                under clause (i) shall be submitted to 
                                the Secretary by such manufacturer at a 
                                time and in a form and manner specified 
                                by the Secretary, and contain--
                                            ``(aa) information and 
                                        documents necessary for the 
                                        Secretary to make 
                                        determinations under this 
                                        subsection, as specified by the 
                                        Secretary and including, to the 
                                        extent available, items 
                                        described in subclause (III); 
                                        and
                                            ``(bb) all agreements 
                                        related to the biosimilar 
                                        biological product filed with 
                                        the Federal Trade Commission or 
                                        the Assistant Attorney General 
                                        pursuant to subsections (a) and 
                                        (c) of section 1112 of the 
                                        Medicare Prescription Drug, 
                                        Improvement, and Modernization 
                                        Act of 2003.
                                    ``(II) Additional information and 
                                documents.--After the Secretary has 
                                reviewed the request and materials 
                                submitted under subclause (I), the 
                                manufacturer shall submit any 
                                additional information and documents 
                                requested by the Secretary necessary to 
                                make determinations under this 
                                subsection.
                                    ``(III) Items described.--The items 
                                described in this clause are the 
                                following:
                                            ``(aa) The manufacturing 
                                        schedule for such biosimilar 
                                        biological product submitted to 
                                        the Food and Drug 
                                        Administration during its 
                                        review of the application under 
                                        such section 351(k).
                                            ``(bb) Disclosures (in 
                                        filings by the manufacturer of 
                                        such biosimilar biological 
                                        product with the Securities and 
                                        Exchange Commission required 
                                        under section 12(b), 12(g), 
                                        13(a), or 15(d) of the 
                                        Securities Exchange Act of 1934 
                                        about capital investment, 
                                        revenue expectations, and 
                                        actions taken by the 
                                        manufacturer that are typical 
                                        of the normal course of 
                                        business in the year (or the 2 
                                        years, as applicable) before 
                                        marketing of a biosimilar 
                                        biological product) that 
                                        pertain to the marketing of 
                                        such biosimilar biological 
                                        product, or comparable 
                                        documentation that is 
                                        distributed to the shareholders 
                                        of privately held companies.
                    ``(C) Aggregation rule.--
                            ``(i) In general.--All persons treated as a 
                        single employer under subsection (a) or (b) of 
                        section 52 of the Internal Revenue Code of 
                        1986, or in a partnership, shall be treated as 
                        one manufacturer for purposes of paragraph 
                        (2)(D)(iv).
                            ``(ii) Partnership defined.--In clause (i), 
                        the term `partnership' means a syndicate, 
                        group, pool, joint venture, or other 
                        organization through or by means of which any 
                        business, financial operation, or venture is 
                        carried on by the manufacturer of the 
                        biological product and the manufacturer of the 
                        biosimilar biological product.
            ``(2) Rules described.--The rules described in this 
        paragraph are the following:
                    ``(A) Delayed selection and negotiation for 1 
                year.--If a determination of high likelihood is made 
                under paragraph (3), the Secretary shall delay the 
                inclusion of the biological product as a selected drug 
                on the list published under subsection (a) until such 
                list is published with respect to the initial price 
                applicability year that is 1 year after the initial 
                price applicability year for which the biological 
                product would have been included as a selected drug on 
                such list.
                    ``(B) If not licensed and marketed during the 
                initial delay.--
                            ``(i) In general.--If, during the time 
                        period between the selected drug publication 
                        date on which the biological product would have 
                        been included on the list as a selected drug 
                        pursuant to subsection (a) but for subparagraph 
                        (A) and the selected drug publication date with 
                        respect to the initial price applicability year 
                        that is 1 year after the initial price 
                        applicability year for which such biological 
                        product would have been included as a selected 
                        drug on such list, the Secretary determines 
                        that the biosimilar biological product for 
                        which the manufacturer submitted the request 
                        under paragraph (1)(B)(i)(II) (and for which 
                        the Secretary previously made a high likelihood 
                        determination under paragraph (3)) has not been 
                        licensed and marketed under section 351(k) of 
                        the Public Health Service Act, the Secretary 
                        shall, at the request of such manufacturer--
                                    ``(I) reevaluate whether there is a 
                                high likelihood (as described in 
                                paragraph (3)) that such biosimilar 
                                biological product will be licensed and 
                                marketed under such section 351(k) 
                                before the date that is 2 years after 
                                the selected drug publication date for 
                                which such biological product would 
                                have been included as a selected drug 
                                on such list published but for 
                                subparagraph (A); and
                                    ``(II) evaluate whether, on the 
                                basis of clear and convincing evidence, 
                                the manufacturer of such biosimilar 
                                biological product has made a 
                                significant amount of progress (as 
                                determined by the Secretary) towards 
                                both such licensure and the marketing 
                                of such biosimilar biological product 
                                (based on information from items 
                                described in subclauses (I)(bb) and 
                                (II) of paragraph (1)(B)(ii)) since the 
                                receipt by the Secretary of the request 
                                made by such manufacturer under 
                                paragraph (1)(B)(i)(I).
                            ``(ii) Selection and negotiation.--If the 
                        Secretary determines that there is not a high 
                        likelihood that such biosimilar biological 
                        product will be licensed and marketed as 
                        described in clause (i)(I) or there has not 
                        been a significant amount of progress as 
                        described in clause (i)(II)--
                                    ``(I) the Secretary shall include 
                                the biological product as a selected 
                                drug on the list published under 
                                subsection (a) with respect to the 
                                initial price applicability year that 
                                is 1 year after the initial price 
                                applicability year for which such 
                                biological product would have been 
                                included as a selected drug on such 
                                list but for subparagraph (A); and
                                    ``(II) the manufacturer of such 
                                biological product shall pay a rebate 
                                under paragraph (4) with respect to the 
                                year for which such manufacturer would 
                                have provided access to a maximum fair 
                                price for such biological product but 
                                for subparagraph (A).
                            ``(iii) Second 1-year delay.--If the 
                        Secretary determines that there is a high 
                        likelihood that such biosimilar biological 
                        product will be licensed and marketed (as 
                        described in clause (i)(I)) and a significant 
                        amount of progress has been made by the 
                        manufacturer of such biosimilar biological 
                        product towards such licensure and marketing 
                        (as described in clause (i)(II)), the Secretary 
                        shall delay the inclusion of the biological 
                        product as a selected drug on the list 
                        published under subsection (a) until the 
                        selected drug publication date of such list 
                        with respect to the initial price applicability 
                        year that is 2 years after the initial price 
                        applicability year for which such biological 
                        product would have been included as a selected 
                        drug on such list but for this subsection.
                    ``(C) If not licensed and marketed during the year 
                two delay.--If, during the time period between the 
                selected drug publication date of the list for which 
                the biological product would have been included as a 
                selected drug but for subparagraph (B)(iii) and the 
                selected drug publication date with respect to the 
                initial price applicability year that is 2 years after 
                the initial price applicability year for which such 
                biological product would have been included as a 
                selected drug on such list but for this subsection, the 
                Secretary determines that such biosimilar biological 
                product has not been licensed and marketed--
                            ``(i) the Secretary shall include such 
                        biological product as a selected drug on such 
                        list with respect to the initial price 
                        applicability year that is 2 years after the 
                        initial price applicability year for which such 
                        biological product would have been included as 
                        a selected drug on such list; and
                            ``(ii) the manufacturer of such biological 
                        product shall pay a rebate under paragraph (4) 
                        with respect to the years for which such 
                        manufacturer would have provided access to a 
                        maximum fair price for such biological product 
                        but for this subsection.
                    ``(D) Limitations on delays.--
                            ``(i) Limited to 2 years.--In no case shall 
                        the Secretary delay the inclusion of a 
                        biological product on the list published under 
                        subsection (a) for more than 2 years.
                            ``(ii) Exclusion of biological products 
                        that transitioned to a long-monopoly drug 
                        during the delay.--In the case of a biological 
                        product for which the inclusion on the list 
                        published pursuant to subsection (a) was 
                        delayed by 1 year under subparagraph (A) and 
                        for which there would have been a change in 
                        status to a long-monopoly drug (as defined in 
                        section 1194(c)(5)) if such biological product 
                        had been a selected drug, in no case may the 
                        Secretary provide for a second 1-year delay 
                        under subparagraph (B)(iii).
                            ``(iii) Exclusion of biological products if 
                        more than 1 year since licensure.--In no case 
                        shall the Secretary delay the inclusion of a 
                        biological product on the list published under 
                        subsection (a) if more than 1 year has elapsed 
                        since the biosimilar biological product has 
                        been licensed under section 351(k) of the 
                        Public Health Service Act and marketing has not 
                        commenced for such biosimilar biological 
                        product.
                            ``(iv) Certain manufacturers of biosimilar 
                        biological products excluded.--In no case shall 
                        the Secretary delay the inclusion of a 
                        biological product as a selected drug on the 
                        list published under subsection (a) if 
                        Secretary determined that the manufacturer of 
                        the biosimilar biological product described in 
                        paragraph (1)(A)--
                                    ``(I) is the same as the 
                                manufacturer of the reference product 
                                described in such paragraph or is 
                                treated as being the same pursuant to 
                                paragraph (1)(C); or
                                    ``(II) has, based on information 
                                from items described in paragraph 
                                (1)(B)(ii)(I)(bb), entered into any 
                                agreement described in such paragraph 
                                with the manufacturer of the reference 
                                product described in paragraph (1)(A) 
                                that--
                                            ``(aa) requires or 
                                        incentivizes the manufacturer 
                                        of the biosimilar biological 
                                        product to submit a request 
                                        described in paragraph (1)(B); 
                                        or
                                            ``(bb) restricts the 
                                        quantity (either directly or 
                                        indirectly) of the biosimilar 
                                        biological product that may be 
                                        sold in the United States over 
                                        a specified period of time.
            ``(3) High likelihood.--For purposes of this subsection, 
        there is a high likelihood described in paragraph (1) or 
        paragraph (2), as applicable, if the Secretary finds that--
                    ``(A) an application for licensure under section 
                351(k) of the Public Health Service Act for the 
                biosimilar biological product has been accepted for 
                review or approved by the Food and Drug Administration; 
                and
                    ``(B) information from items described in sub 
                clauses (I)(bb) and (III) of paragraph (1)(B)(ii) 
                submitted to the Secretary by the manufacturer 
                requesting a delay under such paragraph provides clear 
                and convincing evidence that such biosimilar biological 
                product will, within the time period specified under 
                paragraph (1)(A) or (2)(B)(i)(I), be marketed.
            ``(4) Rebate.--
                    ``(A) In general.--For purposes of subparagraphs 
                (B)(ii)(II) and (C)(ii) of paragraph (2), in the case 
                of a biological product for which the inclusion on the 
                list under subsection (a) was delayed under this 
                subsection and for which the Secretary has negotiated 
                and entered into an agreement under section 1193 with 
                respect to such biological product, the manufacturer 
                shall be required to pay a rebate to the Secretary at 
                such time and in such manner as determined by the 
                Secretary.
                    ``(B) Amount.--Subject to subparagraph (C), the 
                amount of the rebate under subparagraph (A) with 
                respect to a biological product shall be equal to the 
                estimated amount--
                            ``(i) in the case of a biological product 
                        that is a covered part D drug (as defined in 
                        section 1860D-2(e)), that is the sum of the 
                        products of--
                                    ``(I) 75 percent of the amount by 
                                which--
                                            ``(aa) the average 
                                        manufacturer price, as reported 
                                        by the manufacturer of such 
                                        covered part D drug under 
                                        section 1927 (or, if not 
                                        reported by such manufacturer 
                                        under section 1927, as reported 
                                        by such manufacturer to the 
                                        Secretary pursuant to the 
                                        agreement under section 
                                        1193(a)) for such biological 
                                        product, with respect to each 
                                        of the calendar quarters of the 
                                        price applicability period that 
                                        would have applied but for this 
                                        subsection; exceeds
                                            ``(bb) in the initial price 
                                        applicability year that would 
                                        have applied but for a delay 
                                        under--

                                                    ``(AA) paragraph 
                                                (2)(A), the maximum 
                                                fair price negotiated 
                                                under section 1194 for 
                                                such biological product 
                                                under such agreement; 
                                                or

                                                    ``(BB) paragraph 
                                                (2)(B)(iii), such 
                                                maximum fair price, 
                                                increased as described 
                                                in section 
                                                1195(b)(1)(A); and

                                    ``(II) the number of units 
                                dispensed under part D of title XVIII 
                                for such covered part D drug during 
                                each such calendar quarter of such 
                                price applicability period; and
                            ``(ii) in the case of a biological product 
                        for which payment may be made under part B of 
                        title XVIII, that is the sum of the products 
                        of--
                                    ``(I) 80 percent of the amount by 
                                which--
                                            ``(aa) the payment amount 
                                        for such biological product 
                                        under section 1847A(b), with 
                                        respect to each of the calendar 
                                        quarters of the price 
                                        applicability period that would 
                                        have applied but for this 
                                        subsection; exceeds
                                            ``(bb) in the initial price 
                                        applicability year that would 
                                        have applied but for a delay 
                                        under--

                                                    ``(AA) paragraph 
                                                (2)(A), the maximum 
                                                fair price negotiated 
                                                under section 1194 for 
                                                such biological product 
                                                under such agreement; 
                                                or

                                                    ``(BB) paragraph 
                                                (2)(B)(iii), such 
                                                maximum fair price, 
                                                increased as described 
                                                in section 
                                                1195(b)(1)(A); and

                                    ``(II) the number of units 
                                (excluding units that are packaged into 
                                the payment amount for an item or 
                                service and are not separately payable 
                                under such part B) of the billing and 
                                payment code of such biological product 
                                administered or furnished under such 
                                part B during each such calendar 
                                quarter of such price applicability 
                                period.
                    ``(C) Special rule for delayed biological products 
                that are long-monopoly drugs.--
                            ``(i) In general.--In the case of a 
                        biological product with respect to which a 
                        rebate is required to be paid under this 
                        paragraph, if such biological product qualifies 
                        as a long-monopoly drug (as defined in section 
                        1194(c)(5)) at the time of its inclusion on the 
                        list published under subsection (a), in 
                        determining the amount of the rebate for such 
                        biological product under subparagraph (B), the 
                        amount described in clause (ii) shall be 
                        substituted for the maximum fair price 
                        described in clause (i)(I) or (ii)(I) of such 
                        subparagraph (B), as applicable.
                            ``(ii) Amount described.--The amount 
                        described in this clause is an amount equal to 
                        65 percent of the average non-Federal average 
                        manufacturer price for the biological product 
                        for 2021 (or, in the case that there is not an 
                        average non-Federal average manufacturer price 
                        available for such biological product for 2021, 
                        for the first full year following the market 
                        entry for such biological product), increased 
                        by the percentage increase in the consumer 
                        price index for all urban consumers (all items; 
                        United States city average) from September 2021 
                        (or December of such first full year following 
                        the market entry), as applicable, to September 
                        of the year prior to the selected drug 
                        publication date with respect to the initial 
                        price applicability year that would have 
                        applied but for this subsection.
                    ``(D) Rebate deposits.--Amounts paid as rebates 
                under this paragraph shall be deposited into--
                            ``(i) in the case payment is made for such 
                        biological product under part B of title XVIII, 
                        the Federal Supplementary Medical Insurance 
                        Trust Fund established under section 1841; and
                            ``(ii) in the case such biological product 
                        is a covered part D drug (as defined in section 
                        1860D-2(e)), the Medicare Prescription Drug 
                        Account under section 1860D-16 in such Trust 
                        Fund.
            ``(5) Definitions of biosimilar biological product.--In 
        this subsection, the term `biosimilar biological product' has 
        the meaning given such term in section 1847A(c)(6).'';
            (2) in section 1193(a)(4)--
                    (A) in the matter preceding subparagraph (A), by 
                inserting ``, and for section 1192(f),'' after 
                ``section 1194(f))'';
                    (B) in subparagraph (A), by striking ``and'' at the 
                end;
                    (C) by adding at the end the following new 
                subparagraph:
                    ``(C) information that the Secretary requires to 
                carry out section 1192(f), including rebates under 
                paragraph (4) of such section; and'';
            (3) in section 1196(a)(7), by striking ``section 
        1192(d)(2)(B)'' and inserting ``subsections (d)(2)(B) and 
        (f)(1)(C) of section 1192'';
            (4) in section 1197--
                    (A) by redesignating subsections (b), (c), and (d) 
                as subsections (c), (d), and (e), respectively; and
                    (B) by inserting after subsection (a) the following 
                new subsection:
    ``(b) Violations Relating to Providing Rebates.--Any manufacturer 
that fails to comply with the rebate requirements under section 
1192(f)(4) shall be subject to a civil monetary penalty equal to 10 
times the amount of the rebate the manufacturer failed to pay under 
such section.''; and
            (5) in section 1198(b)(2), by inserting ``the application 
        of section 1192(f),'' after ``section 1192(e)''.
    (b) Conforming Amendments for Disclosure of Certain Information.--
Section 1927(b)(3)(D)(i) of the Social Security Act (42 U.S.C. 1396r-
8(b)(3)(D)(i)) is amended by striking ``or to carry out section 1847B'' 
and inserting ``or to carry out section 1847B or section 1192(f), 
including rebates under paragraph (4) of such section''.
    (c) Implementation for 2026 Through 2028.--The Secretary of Health 
and Human Services shall implement this section, including the 
amendments made by this section, for 2026, 2027, and 2028 by program 
instruction or other forms of program guidance.

SEC. 11003. EXCISE TAX IMPOSED ON DRUG MANUFACTURERS DURING 
              NONCOMPLIANCE PERIODS.

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

                    ``CHAPTER 50A--DESIGNATED DRUGS

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

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

    ``(a) In General.--There is hereby imposed on the sale by the 
manufacturer, producer, or importer of any designated drug during a day 
described in subsection (b) a tax in an amount such that the applicable 
percentage is equal to the ratio of--
            ``(1) such tax, divided by
            ``(2) the sum of such tax and the price for which so sold.
    ``(b) Noncompliance Periods.--A day is described in this subsection 
with respect to a designated drug if it is a day during one of the 
following periods:
            ``(1) The period beginning on the March 1st (or, in the 
        case of initial price applicability year 2026, the October 2nd) 
        immediately following the date on which such drug is included 
        on the list published under section 1192(a) of the Social 
        Security Act and ending on the earlier of--
                    ``(A) the first date on which the manufacturer of 
                such designated drug has in place an agreement 
                described in section 1193(a) of such Act with respect 
                to such drug, or
                    ``(B) the date that the Secretary of Health and 
                Human Services has made a determination described in 
                section 1192(c)(1) of such Act with respect to such 
                designated drug.
            ``(2) The period beginning on the November 2nd immediately 
        following the March 1st described in paragraph (1) (or, in the 
        case of initial price applicability year 2026, the August 2nd 
        immediately following the October 2nd described in such 
        paragraph) and ending on the earlier of--
                    ``(A) the first date on which the manufacturer of 
                such designated drug and the Secretary of Health and 
                Human Services have agreed to a maximum fair price 
                under an agreement described in section 1193(a) of the 
                Social Security Act, or
                    ``(B) the date that the Secretary of Health and 
                Human Services has made a determination described in 
                section 1192(c)(1) of such Act with respect to such 
                designated drug.
            ``(3) In the case of any designated drug which is a 
        selected drug (as defined in section 1192(c) of the Social 
        Security Act) that the Secretary of Health and Human Services 
        has selected for renegotiation under section 1194(f) of such 
        Act, the period beginning on the November 2nd of the year that 
        begins 2 years prior to the first initial price applicability 
        year of the price applicability period for which the maximum 
        fair price established pursuant to such renegotiation applies 
        and ending on the earlier of--
                    ``(A) the first date on which the manufacturer of 
                such designated drug has agreed to a renegotiated 
                maximum fair price under such agreement, or
                    ``(B) the date that the Secretary of Health and 
                Human Services has made a determination described in 
                section 1192(c)(1) of such Act with respect to such 
                designated drug.
            ``(4) With respect to information that is required to be 
        submitted to the Secretary of Health and Human Services under 
        an agreement described in section 1193(a) of the Social 
        Security Act, the period beginning on the date on which such 
        Secretary certifies that such information is overdue and ending 
        on the date that such information is so submitted.
    ``(c) Suspension of Tax.--
            ``(1) In general.--A day shall not be taken into account as 
        a day during a period described in subsection (b) if such day 
        is also a day during the period--
                    ``(A) beginning on the first date on which--
                            ``(i) the notice of terminations of all 
                        applicable agreements of the manufacturer have 
                        been received by the Secretary of Health and 
                        Human Services, and
                            ``(ii) none of the drugs of the 
                        manufacturer of the designated drug are covered 
                        by an agreement under section 1860D-14A or 
                        1860D-14C of the Social Security Act, and
                    ``(B) ending on the last day of February following 
                the earlier of--
                            ``(i) the first day after the date 
                        described in subparagraph (A) on which the 
                        manufacturer enters into any subsequent 
                        applicable agreement, or
                            ``(ii) the first date any drug of the 
                        manufacturer of the designated drug is covered 
                        by an agreement under section 1860D-14A or 
                        1860D-14C of the Social Security Act.
            ``(2) Applicable agreement.--For purposes of this 
        subsection, the term `applicable agreement' means the 
        following:
                    ``(A) An agreement under--
                            ``(i) the Medicare coverage gap discount 
                        program under section 1860D-14A of the Social 
                        Security Act, or
                            ``(ii) the manufacturer discount program 
                        under section 1860D-14C of such Act.
                    ``(B) A rebate agreement described in section 
                1927(b) of such Act.
    ``(d) Applicable Percentage.--For purposes of this section, the 
term `applicable percentage' means--
            ``(1) in the case of sales of a designated drug during the 
        first 90 days described in subsection (b) with respect to such 
        drug, 65 percent,
            ``(2) in the case of sales of such drug during the 91st day 
        through the 180th day described in subsection (b) with respect 
        to such drug, 75 percent,
            ``(3) in the case of sales of such drug during the 181st 
        day through the 270th day described in subsection (b) with 
        respect to such drug, 85 percent, and
            ``(4) in the case of sales of such drug during any 
        subsequent day, 95 percent.
    ``(e) Definitions.--For purposes of this section--
            ``(1) Designated drug.--The term `designated drug' means 
        any negotiation-eligible drug (as defined in section 1192(d) of 
        the Social Security Act) included on the list published under 
        section 1192(a) of such Act which is manufactured or produced 
        in the United States or entered into the United States for 
        consumption, use, or warehousing.
            ``(2) United states.--The term `United States' has the 
        meaning given such term by section 4612(a)(4).
            ``(3) Other terms.--The terms `initial price applicability 
        year', `price applicability period', and `maximum fair price' 
        have the meaning given such terms in section 1191 of the Social 
        Security Act.
    ``(f) Special Rules.--
            ``(1) Coordination with rules for possessions of the united 
        states.--Rules similar to the rules of paragraphs (2) and (4) 
        of section 4132(c) shall apply for purposes of this section.
            ``(2) Anti-abuse rule.--In the case of a sale which was 
        timed for the purpose of avoiding the tax imposed by this 
        section, the Secretary may treat such sale as occurring during 
        a day described in subsection (b).
    ``(g) Exports.--Rules similar to the rules of section 4662(e) 
(other than section 4662(e)(2)(A)(ii)(II)) shall apply for purposes of 
this chapter.
    ``(h) Regulations.--The Secretary shall prescribe such regulations 
and other guidance as may be necessary to carry out this section.''.
    (b) No Deduction for Excise Tax Payments.--Section 275(a)(6) of the 
Internal Revenue Code of 1986 is amended by inserting ``50A,'' after 
``46,''.
    (c) Clerical Amendment.--The table of chapters for subtitle D of 
the Internal Revenue Code of 1986 is amended by adding at the end the 
following new item:

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

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

SEC. 11004. FUNDING.

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

              PART 2--PRESCRIPTION DRUG INFLATION REBATES

SEC. 11101. MEDICARE PART B REBATE BY MANUFACTURERS.

    (a) In General.--Section 1847A of the Social Security Act (42 
U.S.C. 1395w-3a) is amended by redesignating subsection (i) as 
subsection (j) and by inserting after subsection (h) the following 
subsection:
    ``(i) Rebate by Manufacturers for Single Source Drugs and 
Biologicals With Prices Increasing Faster Than Inflation.--
            ``(1) Requirements.--
                    ``(A) Secretarial provision of information.--Not 
                later than 6 months after the end of each calendar 
                quarter beginning on or after January 1, 2023, the 
                Secretary shall, for each part B rebatable drug, report 
                to each manufacturer of such part B rebatable drug the 
                following for such calendar quarter:
                            ``(i) Information on the total number of 
                        units of the billing and payment code described 
                        in subparagraph (A)(i) of paragraph (3) with 
                        respect to such drug and calendar quarter.
                            ``(ii) Information on the amount (if any) 
                        of the excess average sales price increase 
                        described in subparagraph (A)(ii) of such 
                        paragraph for such drug and calendar quarter.
                            ``(iii) The rebate amount specified under 
                        such paragraph for such part B rebatable drug 
                        and calendar quarter.
                    ``(B) Manufacturer requirement.--For each calendar 
                quarter beginning on or after January 1, 2023, the 
                manufacturer of a part B rebatable drug shall, for such 
                drug, not later than 30 days after the date of receipt 
                from the Secretary of the information described in 
                subparagraph (A) for such calendar quarter, provide to 
                the Secretary a rebate that is equal to the amount 
                specified in paragraph (3) for such drug for such 
                calendar quarter.
                    ``(C) Transition rule for reporting.--The Secretary 
                may, for each part B rebatable drug, delay the 
                timeframe for reporting the information described in 
                subparagraph (A) for calendar quarters beginning in 
                2023 and 2024 until not later than September 30, 2025.
            ``(2) Part b rebatable drug defined.--
                    ``(A) In general.--In this subsection, the term 
                `part B rebatable drug' means a single source drug or 
                biological (as defined in subparagraph (D) of 
                subsection (c)(6)), including a biosimilar biological 
                product (as defined in subparagraph (H) of such 
                subsection) but excluding a qualifying biosimilar 
                biological product (as defined in subsection 
                (b)(8)(B)(iii)), for which payment is made under this 
                part, except such term shall not include such a drug or 
                biological--
                            ``(i) if, as determined by the Secretary, 
                        the average total allowed charges for such drug 
                        or biological under this part for a year per 
                        individual that uses such a drug or biological 
                        are less than, subject to subparagraph (B), 
                        $100; or
                            ``(ii) that is a vaccine described in 
                        subparagraph (A) or (B) of section 1861(s)(10).
                    ``(B) Increase.--The dollar amount applied under 
                subparagraph (A)(i)--
                            ``(i) for 2024, shall be the dollar amount 
                        specified under such subparagraph for 2023, 
                        increased by the percentage increase in the 
                        consumer price index for all urban consumers 
                        (United States city average) for the 12-month 
                        period ending with June of the previous year; 
                        and
                            ``(ii) for a subsequent year, shall be the 
                        dollar amount specified in this clause (or 
                        clause (i)) for the previous year (without 
                        application of subparagraph (C)), increased by 
                        the percentage increase in the consumer price 
                        index for all urban consumers (United States 
                        city average) for the 12-month period ending 
                        with June of the previous year.
                    ``(C) Rounding.--Any dollar amount determined under 
                subparagraph (B) that is not a multiple of $10 shall be 
                rounded to the nearest multiple of $10.
            ``(3) Rebate amount.--
                    ``(A) In general.--For purposes of paragraph (1), 
                the amount specified in this paragraph for a part B 
                rebatable drug assigned to a billing and payment code 
                for a calendar quarter is, subject to subparagraphs (B) 
                and (G) and paragraph (4), the estimated amount equal 
                to the product of--
                            ``(i) the total number of units determined 
                        under subparagraph (B) for the billing and 
                        payment code of such drug; and
                            ``(ii) the amount (if any) by which--
                                    ``(I) the amount equal to--
                                            ``(aa) in the case of a 
                                        part B rebatable drug described 
                                        in paragraph (1)(B) of 
                                        subsection (b), 106 percent of 
                                        the amount determined under 
                                        paragraph (4) of such section 
                                        for such drug during the 
                                        calendar quarter; or
                                            ``(bb) in the case of a 
                                        part B rebatable drug described 
                                        in paragraph (1)(C) of such 
                                        subsection, the payment amount 
                                        under such paragraph for such 
                                        drug during the calendar 
                                        quarter; exceeds
                                    ``(II) the inflation-adjusted 
                                payment amount determined under 
                                subparagraph (C) for such part B 
                                rebatable drug during the calendar 
                                quarter.
                    ``(B) Total number of units.--For purposes of 
                subparagraph (A)(i), the total number of units for the 
                billing and payment code with respect to a part B 
                rebatable drug furnished during a calendar quarter 
                described in subparagraph (A) is equal to--
                            ``(i) the number of units for the billing 
                        and payment code of such drug furnished during 
                        such calendar quarter, minus
                            ``(ii) the number of units for such billing 
                        and payment code of such drug furnished during 
                        such calendar quarter--
                                    ``(I) with respect to which the 
                                manufacturer provides a discount under 
                                the program under section 340B of the 
                                Public Health Service Act or a rebate 
                                under section 1927; or
                                    ``(II) that are packaged into the 
                                payment amount for an item or service 
                                and are not separately payable.
                    ``(C) Determination of inflation-adjusted payment 
                amount.--The inflation-adjusted payment amount 
                determined under this subparagraph for a part B 
                rebatable drug for a calendar quarter is--
                            ``(i) the payment amount for the billing 
                        and payment code for such drug in the payment 
                        amount benchmark quarter (as defined in 
                        subparagraph (D)); increased by
                            ``(ii) the percentage by which the rebate 
                        period CPI-U (as defined in subparagraph (F)) 
                        for the calendar quarter exceeds the benchmark 
                        period CPI-U (as defined in subparagraph (E)).
                    ``(D) Payment amount benchmark quarter.--The term 
                `payment amount benchmark quarter' means the calendar 
                quarter beginning July 1, 2021.
                    ``(E) Benchmark period cpi-u.--The term `benchmark 
                period CPI-U' means the consumer price index for all 
                urban consumers (United States city average) for 
                January 2021.
                    ``(F) Rebate period cpi-u.--The term `rebate period 
                CPI-U' means, with respect to a calendar quarter 
                described in subparagraph (C), the greater of the 
                benchmark period CPI-U and the consumer price index for 
                all urban consumers (United States city average) for 
                the first month of the calendar quarter that is two 
                calendar quarters prior to such described calendar 
                quarter.
                    ``(G) Reduction or waiver for shortages and severe 
                supply chain disruptions.--The Secretary shall reduce 
                or waive the amount under subparagraph (A) with respect 
                to a part B rebatable drug and a calendar quarter--
                            ``(i) in the case of a part B rebatable 
                        drug that is described as currently in shortage 
                        on the shortage list in effect under section 
                        506E of the Federal Food, Drug, and Cosmetic 
                        Act at any point during the calendar quarter; 
                        or
                            ``(ii) in the case of a biosimilar 
                        biological product, when the Secretary 
                        determines there is a severe supply chain 
                        disruption during the calendar quarter, such as 
                        that caused by a natural disaster or other 
                        unique or unexpected event.
            ``(4) Special treatment of certain drugs and exemption.--
                    ``(A) Subsequently approved drugs.--In the case of 
                a part B rebatable drug first approved or licensed by 
                the Food and Drug Administration after December 1, 
                2020, clause (i) of paragraph (3)(C) shall be applied 
                as if the term `payment amount benchmark quarter' were 
                defined under paragraph (3)(D) as the third full 
                calendar quarter after the day on which the drug was 
                first marketed and clause (ii) of paragraph (3)(C) 
                shall be applied as if the term `benchmark period CPI-
                U' were defined under paragraph (3)(E) as if the 
                reference to `January 2021' under such paragraph were a 
                reference to `the first month of the first full 
                calendar quarter after the day on which the drug was 
                first marketed'.
                    ``(B) Timeline for provision of rebates for 
                subsequently approved drugs.--In the case of a part B 
                rebatable drug first approved or licensed by the Food 
                and Drug Administration after December 1, 2020, 
                paragraph (1)(B) shall be applied as if the reference 
                to `January 1, 2023' under such paragraph were a 
                reference to `the later of the 6th full calendar 
                quarter after the day on which the drug was first 
                marketed or January 1, 2023'.
                    ``(C) Selected drugs.--In the case of a part B 
                rebatable drug that is a selected drug (as defined in 
                section 1192(c)) with respect to a price applicability 
                period (as defined in section 1191(b)(2)), in the case 
                such drug is no longer considered to be a selected drug 
                under section 1192(c), for each applicable period (as 
                defined under subsection (g)(7)) beginning after the 
                price applicability period with respect to such drug, 
                clause (i) of paragraph (3)(C) shall be applied as if 
                the term `payment amount benchmark quarter' were 
                defined under paragraph (3)(D) as the calendar quarter 
                beginning January 1 of the last year during such price 
                applicability period with respect to such selected drug 
                and clause (ii) of paragraph (3)(C) shall be applied as 
                if the term `benchmark period CPI-U' were defined under 
                paragraph (3)(E) as if the reference to `January 2021' 
                under such paragraph were a reference to `the July of 
                the year preceding such last year'.
            ``(5) Application to beneficiary coinsurance.--In the case 
        of a part B rebatable drug furnished on or after April 1, 2023, 
        if the payment amount described in paragraph (3)(A)(ii)(I) (or, 
        in the case of a part B rebatable drug that is a selected drug 
        (as defined in section 1192(c)), the payment amount described 
        in subsection (b)(1)(B) for such drug) for a calendar quarter 
        exceeds the inflation adjusted payment for such quarter--
                    ``(A) in computing the amount of any coinsurance 
                applicable under this part to an individual to whom 
                such drug is furnished, the computation of such 
                coinsurance shall be equal to 20 percent of the 
                inflation-adjusted payment amount determined under 
                paragraph (3)(C) for such part B rebatable drug; and
                    ``(B) the amount of such coinsurance for such 
                calendar quarter, as computed under subparagraph (A), 
                shall be applied as a percent, as determined by the 
                Secretary, to the payment amount that would otherwise 
                apply under subparagraphs (B) or (C) of subsection 
                (b)(1).
            ``(6) Rebate deposits.--Amounts paid as rebates under 
        paragraph (1)(B) shall be deposited into the Federal 
        Supplementary Medical Insurance Trust Fund established under 
        section 1841.
            ``(7) Civil money penalty.--If a manufacturer of a part B 
        rebatable drug has failed to comply with the requirements under 
        paragraph (1)(B) for such drug for a calendar quarter, the 
        manufacturer shall be subject to, in accordance with a process 
        established by the Secretary pursuant to regulations, a civil 
        money penalty in an amount equal to at least 125 percent of the 
        amount specified in paragraph (3) for such drug for such 
        calendar quarter. The provisions of section 1128A (other than 
        subsections (a) (with respect to amounts of penalties or 
        additional assessments) and (b)) shall apply to a civil money 
        penalty under this paragraph in the same manner as such 
        provisions apply to a penalty or proceeding under section 
        1128A(a).
            ``(8) Limitation on administrative or judicial review.--
        There shall be no administrative or judicial review of any of 
        the following:
                    ``(A) The determination of units under this 
                subsection.
                    ``(B) The determination of whether a drug is a part 
                B rebatable drug under this subsection.
                    ``(C) The calculation of the rebate amount under 
                this subsection.
                    ``(D) The computation of coinsurance under 
                paragraph (5) of this subsection.
                    ``(E) The computation of amounts paid under section 
                1833(a)(1)(EE).''.
    (b) Amounts Payable; Cost-Sharing.--Section 1833 of the Social 
Security Act (42 U.S.C. 1395l) is amended--
            (1) in subsection (a)(1)--
                    (A) in subparagraph (G), by inserting ``, subject 
                to subsection (i)(9),'' after ``the amounts paid'';
                    (B) in subparagraph (S), by striking ``with respect 
                to'' and inserting ``subject to subparagraph (EE), with 
                respect to'';
                    (C) by striking ``and (DD)'' and inserting 
                ``(DD)''; and
                    (D) by inserting before the semicolon at the end 
                the following: ``, and (EE) with respect to a part B 
                rebatable drug (as defined in paragraph (2) of section 
                1847A(i)) furnished on or after April 1, 2023, for 
                which the payment amount for a calendar quarter under 
                paragraph (3)(A)(ii)(I) of such section (or, in the 
                case of a part B rebatable drug that is a selected drug 
                (as defined in section 1192(c) for which, the payment 
                amount described in section 1847A(b)(1)(B)) for such 
                drug for such quarter exceeds the inflation-adjusted 
                payment under paragraph (3)(A)(ii)(II) of such section 
                for such quarter, the amounts paid shall be equal to 
                the percent of the payment amount under paragraph 
                (3)(A)(ii)(I) of such section or section 
                1847A(b)(1)(B), as applicable, that equals the 
                difference between (i) 100 percent, and (ii) the 
                percent applied under section 1847A(i)(5)(B)'';
            (2) in subsection (i), by adding at the end the following 
        new paragraph:
    ``(9) In the case of a part B rebatable drug (as defined in 
paragraph (2) of section 1847A(i)) for which payment under this 
subsection is not packaged into a payment for a service furnished on or 
after April 1, 2023, under the revised payment system under this 
subsection, in lieu of calculation of coinsurance and the amount of 
payment otherwise applicable under this subsection, the provisions of 
section 1847A(i)(5) and paragraph (1)(EE) of subsection (a), shall, as 
determined appropriate by the Secretary, apply under this subsection in 
the same manner as such provisions of section 1847A(i)(5) and 
subsection (a) apply under such section and subsection.''; and
            (3) in subsection (t)(8), by adding at the end the 
        following new subparagraph:
                    ``(F) Part b rebatable drugs.--In the case of a 
                part B rebatable drug (as defined in paragraph (2) of 
                section 1847A(i), except if such drug does not have a 
                copayment amount as a result of application of 
                subparagraph (E)) for which payment under this part is 
                not packaged into a payment for a covered OPD service 
                (or group of services) furnished on or after April 1, 
                2023, and the payment for such drug under this 
                subsection is the same as the amount for a calendar 
                quarter under paragraph (3)(A)(ii)(I) of section 
                1847A(i), under the system under this subsection, in 
                lieu of calculation of the copayment amount and the 
                amount of payment otherwise applicable under this 
                subsection (other than the application of the 
                limitation described in subparagraph (C)), the 
                provisions of section 1847A(i)(5) and paragraph (1)(EE) 
                of subsection (a), shall, as determined appropriate by 
                the Secretary, apply under this subsection in the same 
                manner as such provisions of section 1847A(i)(5) and 
                subsection (a) apply under such section and 
                subsection.''.
    (c) Conforming Amendments.--
            (1) To part b asp calculation.--Section 1847A(c)(3) of the 
        Social Security Act (42 U.S.C. 1395w-3a(c)(3)) is amended by 
        inserting ``subsection (i) or'' before ``section 1927''.
            (2) Excluding part b drug inflation rebate from best 
        price.--Section 1927(c)(1)(C)(ii)(I) of the Social Security Act 
        (42 U.S.C. 1396r-8(c)(1)(C)(ii)(I)) is amended by inserting 
        ``or section 1847A(i)'' after ``this section''.
            (3) Coordination with medicaid rebate information 
        disclosure.--Section 1927(b)(3)(D)(i) of the Social Security 
        Act (42 U.S.C. 1396r-8(b)(3)(D)(i)) is amended by inserting 
        ``and the rebate'' after ``the payment amount''.
            (4) Excluding part b drug inflation rebates from average 
        manufacturer price.--Section 1927(k)(1)(B)(i) of the Social 
        Security Act (42 U.S.C. 1396r-8(k)(1)(B)(i)), as amended by 
        section 11001(b)(3), is amended--
                    (A) in subclause (V), by striking ``and'' at the 
                end;
                    (B) in subclause (VI), by striking the period at 
                the end and inserting a semicolon; and
                    (C) by adding at the end the following new 
                subclause:
                                    ``(VII) rebates paid by 
                                manufacturers under section 1847A(i); 
                                and''.
    (d) Funding.--In addition to amounts otherwise available, there are 
appropriated to the Centers for Medicare & Medicaid Services, out of 
any money in the Treasury not otherwise appropriated, $80,000,000 for 
fiscal year 2022, including $12,500,000 to carry out the provisions of, 
including the amendments made by, this section in fiscal year 2022, and 
$7,500,000 to carry out the provisions of, including the amendments 
made by, this section in each of fiscal years 2023 through 2031, to 
remain available until expended.

SEC. 11102. MEDICARE PART D REBATE BY MANUFACTURERS.

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

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

    ``(a) Requirements.--
            ``(1) Secretarial provision of information.--Not later than 
        9 months after the end of each applicable period (as defined in 
        subsection (g)(7)), subject to paragraph (3), the Secretary 
        shall, for each part D rebatable drug, report to each 
        manufacturer of such part D rebatable drug the following for 
        such period:
                    ``(A) The amount (if any) of the excess annual 
                manufacturer price increase described in subsection 
                (b)(1)(A)(ii) for each dosage form and strength with 
                respect to such drug and period.
                    ``(B) The rebate amount specified under subsection 
                (b) for each dosage form and strength with respect to 
                such drug and period.
            ``(2) Manufacturer requirements.--For each applicable 
        period, the manufacturer of a part D rebatable drug, for each 
        dosage form and strength with respect to such drug, not later 
        than 30 days after the date of receipt from the Secretary of 
        the information described in paragraph (1) for such period, 
        shall provide to the Secretary a rebate that is equal to the 
        amount specified in subsection (b) for such dosage form and 
        strength with respect to such drug for such period.
            ``(3) Transition rule for reporting.--The Secretary may, 
        for each rebatable covered part D drug, delay the timeframe for 
        reporting the information and rebate amount described in 
        subparagraphs (A) and (B) of such paragraph for the applicable 
        periods beginning October 1, 2022, and October 1, 2023, until 
        not later than December 31, 2025.
    ``(b) Rebate Amount.--
            ``(1) In general.--
                    ``(A) Calculation.--For purposes of this section, 
                the amount specified in this subsection for a dosage 
                form and strength with respect to a part D rebatable 
                drug and applicable period is, subject to subparagraph 
                (C), paragraph (5)(B), and paragraph (6), the estimated 
                amount equal to the product of--
                            ``(i) subject to subparagraph (B) of this 
                        paragraph, the total number of units of such 
                        dosage form and strength for each rebatable 
                        covered part D drug dispensed under this part 
                        during the applicable period; and
                            ``(ii) the amount (if any) by which--
                                    ``(I) the annual manufacturer price 
                                (as determined in paragraph (2)) paid 
                                for such dosage form and strength with 
                                respect to such part D rebatable drug 
                                for the period; exceeds
                                    ``(II) the inflation-adjusted 
                                payment amount determined under 
                                paragraph (3) for such dosage form and 
                                strength with respect to such part D 
                                rebatable drug for the period.
                    ``(B) Excluded units.--For purposes of subparagraph 
                (A)(i), beginning with plan year 2026, the Secretary 
                shall exclude from the total number of units for a 
                dosage form and strength with respect to a part D 
                rebatable drug, with respect to an applicable period, 
                units of each dosage form and strength of such part D 
                rebatable drug for which the manufacturer provides a 
                discount under the program under section 340B of the 
                Public Health Service Act.
                    ``(C) Reduction or waiver for shortages and severe 
                supply chain disruptions.--The Secretary shall reduce 
                or waive the amount under subparagraph (A) with respect 
                to a part D rebatable drug and an applicable period--
                            ``(i) in the case of a part D rebatable 
                        drug that is described as currently in shortage 
                        on the shortage list in effect under section 
                        506E of the Federal Food, Drug, and Cosmetic 
                        Act at any point during the applicable period;
                            ``(ii) in the case of a generic part D 
                        rebatable drug (described in subsection 
                        (g)(1)(C)(ii)) or a biosimilar (defined as a 
                        biological product licensed under section 
                        351(k) of the Public Health Service Act), when 
                        the Secretary determines there is a severe 
                        supply chain disruption during the applicable 
                        period, such as that caused by a natural 
                        disaster or other unique or unexpected event; 
                        and
                            ``(iii) in the case of a generic Part D 
                        rebatable drug (as so described), if the 
                        Secretary determines that without such 
                        reduction or waiver, the drug is likely to be 
                        described as in shortage on such shortage list 
                        during a subsequent applicable period.
            ``(2) Determination of annual manufacturer price.--The 
        annual manufacturer price determined under this paragraph for a 
        dosage form and strength, with respect to a part D rebatable 
        drug and an applicable period, is the sum of the products of--
                    ``(A) the average manufacturer price (as defined in 
                subsection (g)(6)) of such dosage form and strength, as 
                calculated for a unit of such drug, with respect to 
                each of the calendar quarters of such period; and
                    ``(B) the ratio of--
                            ``(i) the total number of units of such 
                        dosage form and strength reported under section 
                        1927 with respect to each such calendar quarter 
                        of such period; to
                            ``(ii) the total number of units of such 
                        dosage form and strength reported under section 
                        1927 with respect to such period, as determined 
                        by the Secretary.
            ``(3) Determination of inflation-adjusted payment amount.--
        The inflation-adjusted payment amount determined under this 
        paragraph for a dosage form and strength with respect to a part 
        D rebatable drug for an applicable period, subject to paragraph 
        (5), is--
                    ``(A) the benchmark period manufacturer price 
                determined under paragraph (4) for such dosage form and 
                strength with respect to such drug and period; 
                increased by
                    ``(B) the percentage by which the applicable period 
                CPI-U (as defined in subsection (g)(5)) for the period 
                exceeds the benchmark period CPI-U (as defined in 
                subsection (g)(4)).
            ``(4) Determination of benchmark period manufacturer 
        price.--The benchmark period manufacturer price determined 
        under this paragraph for a dosage form and strength, with 
        respect to a part D rebatable drug and an applicable period, is 
        the sum of the products of--
                    ``(A) the average manufacturer price (as defined in 
                subsection (g)(6)) of such dosage form and strength, as 
                calculated for a unit of such drug, with respect to 
                each of the calendar quarters of the payment amount 
                benchmark period (as defined in subsection (g)(3)); and
                    ``(B) the ratio of--
                            ``(i) the total number of units reported 
                        under section 1927 of such dosage form and 
                        strength with respect to each such calendar 
                        quarter of such payment amount benchmark 
                        period; to
                            ``(ii) the total number of units reported 
                        under section 1927 of such dosage form and 
                        strength with respect to such payment amount 
                        benchmark period.
            ``(5) Special treatment of certain drugs and exemption.--
                    ``(A) Subsequently approved drugs.--In the case of 
                a part D rebatable drug first approved or licensed by 
                the Food and Drug Administration after October 1, 2021, 
                subparagraphs (A) and (B) of paragraph (4) shall be 
                applied as if the term `payment amount benchmark 
                period' were defined under subsection (g)(3) as the 
                first calendar year beginning after the day on which 
                the drug was first marketed and subparagraph (B) of 
                paragraph (3) shall be applied as if the term 
                `benchmark period CPI-U' were defined under subsection 
                (g)(4) as if the reference to `January 2021' under such 
                subsection were a reference to `January of the first 
                year beginning after the date on which the drug was 
                first marketed'.
                    ``(B) Treatment of new formulations.--
                            ``(i) In general.--In the case of a part D 
                        rebatable drug that is a line extension of a 
                        part D rebatable drug that is an oral solid 
                        dosage form, the Secretary shall establish a 
                        formula for determining the rebate amount under 
                        paragraph (1) and the inflation adjusted 
                        payment amount under paragraph (3) with respect 
                        to such part D rebatable drug and an applicable 
                        period, consistent with the formula applied 
                        under subsection (c)(2)(C) of section 1927 for 
                        determining a rebate obligation for a rebate 
                        period under such section.
                            ``(ii) Line extension defined.--In this 
                        subparagraph, the term `line extension' means, 
                        with respect to a part D rebatable drug, a new 
                        formulation of the drug, such as an extended 
                        release formulation, but does not include an 
                        abuse-deterrent formulation of the drug (as 
                        determined by the Secretary), regardless of 
                        whether such abuse-deterrent formulation is an 
                        extended release formulation.
                    ``(C) Selected drugs.--In the case of a part D 
                rebatable drug that is a selected drug (as defined in 
                section 1192(c)) with respect to a price applicability 
                period (as defined in section 1191(b)(2)), in the case 
                such drug is no longer considered to be a selected drug 
                under section 1192(c), for each applicable period (as 
                defined under subsection (g)(7)) beginning after the 
                price applicability period with respect to such drug, 
                subparagraphs (A) and (B) of paragraph (4) shall be 
                applied as if the term `payment amount benchmark 
                period' were defined under subsection (g)(3) as the 
                last year beginning during such price applicability 
                period with respect to such selected drug and 
                subparagraph (B) of paragraph (3) shall be applied as 
                if the term `benchmark period CPI-U' were defined under 
                subsection (g)(4) as if the reference to `January 2021' 
                under such subsection were a reference to `January of 
                the last year beginning during such price applicability 
                period with respect to such drug'.
            ``(6) Reconciliation in case of revised information.--The 
        Secretary shall provide for a method and process under which, 
        in the case where a PDP sponsor of a prescription drug plan or 
        an MA organization offering an MA-PD plan submits revisions to 
        the number of units of a rebatable covered part D drug 
        dispensed, the Secretary determines, pursuant to such 
        revisions, adjustments, if any, to the calculation of the 
        amount specified in this subsection for a dosage form and 
        strength with respect to such part D rebatable drug and an 
        applicable period and reconciles any overpayments or 
        underpayments in amounts paid as rebates under this subsection. 
        Any identified underpayment shall be rectified by the 
        manufacturer not later than 30 days after the date of receipt 
        from the Secretary of information on such underpayment.
    ``(c) Rebate Deposits.--Amounts paid as rebates under subsection 
(b) shall be deposited into the Medicare Prescription Drug Account in 
the Federal Supplementary Medical Insurance Trust Fund established 
under section 1841.
    ``(d) Information.--For purposes of carrying out this section, the 
Secretary shall use information submitted by--
            ``(1) manufacturers under section 1927(b)(3);
            ``(2) States under section 1927(b)(2)(A); and
            ``(3) PDP sponsors of prescription drug plans and MA 
        organization offering MA-PD plans under this part.
    ``(e) Civil Money Penalty.--If a manufacturer of a part D rebatable 
drug has failed to comply with the requirement under subsection (a)(2) 
with respect to such drug for an applicable period, the manufacturer 
shall be subject to a civil money penalty in an amount equal to 125 
percent of the amount specified in subsection (b) for such drug for 
such period. The provisions of section 1128A (other than subsections 
(a) (with respect to amounts of penalties or additional assessments) 
and (b)) shall apply to a civil money penalty under this subsection in 
the same manner as such provisions apply to a penalty or proceeding 
under section 1128A(a).
    ``(f) Limitation on Administrative or Judicial Review.--There shall 
be no administrative or judicial review of any of the following:
            ``(1) The determination of units under this section.
            ``(2) The determination of whether a drug is a part D 
        rebatable drug under this section.
            ``(3) The calculation of the rebate amount under this 
        section.
    ``(g) Definitions.--In this section:
            ``(1) Part d rebatable drug.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the term `part D rebatable drug' 
                means, with respect to an applicable period, a drug or 
                biological described in subparagraph (C) that is a 
                covered part D drug (as such term is defined under 
                section 1860D-2(e)).
                    ``(B) Exclusion.--
                            ``(i) In general.--Such term shall, with 
                        respect to an applicable period, not include a 
                        drug or biological if the average annual total 
                        cost under this part for such period per 
                        individual who uses such a drug or biological, 
                        as determined by the Secretary, is less than, 
                        subject to clause (ii), $100, as determined by 
                        the Secretary using the most recent data 
                        available or, if data is not available, as 
                        estimated by the Secretary.
                            ``(ii) Increase.--The dollar amount applied 
                        under clause (i)--
                                    ``(I) for the applicable period 
                                beginning October 1, 2023, shall be the 
                                dollar amount specified under such 
                                clause for the applicable period 
                                beginning October 1, 2022, increased by 
                                the percentage increase in the consumer 
                                price index for all urban consumers 
                                (United States city average) for the 
                                12-month period beginning with October 
                                of 2023; and
                                    ``(II) for a subsequent applicable 
                                period, shall be the dollar amount 
                                specified in this clause for the 
                                previous applicable period, increased 
                                by the percentage increase in the 
                                consumer price index for all urban 
                                consumers (United States city average) 
                                for the 12-month period beginning with 
                                October of the previous period.
                        Any dollar amount specified under this clause 
                        that is not a multiple of $10 shall be rounded 
                        to the nearest multiple of $10.
                    ``(C) Drug or biological described.--A drug or 
                biological described in this subparagraph is a drug or 
                biological that, as of the first day of the applicable 
                period involved, is--
                            ``(i) a drug approved under a new drug 
                        application under section 505(c) of the Federal 
                        Food, Drug, and Cosmetic Act;
                            ``(ii) a drug approved under an abbreviated 
                        new drug application under section 505(j) of 
                        the Federal Food, Drug, and Cosmetic Act, in 
                        the case where--
                                    ``(I) the reference listed drug 
                                approved under section 505(c) of the 
                                Federal Food, Drug, and Cosmetic Act, 
                                including any `authorized generic drug' 
                                (as that term is defined in section 
                                505(t)(3) of the Federal Food, Drug, 
                                and Cosmetic Act), is not being 
                                marketed, as identified in the Food and 
                                Drug Administration's National Drug 
                                Code Directory;
                                    ``(II) there is no other drug 
                                approved under section 505(j) of the 
                                Federal Food, Drug, and Cosmetic Act 
                                that is rated as therapeutically 
                                equivalent (under the Food and Drug 
                                Administration's most recent 
                                publication of `Approved Drug Products 
                                with Therapeutic Equivalence 
                                Evaluations') and that is being 
                                marketed, as identified in the Food and 
                                Drug Administration's National Drug 
                                Code Directory;
                                    ``(III) the manufacturer is not a 
                                `first applicant' during the `180-day 
                                exclusivity period', as those terms are 
                                defined in section 505(j)(5)(B)(iv) of 
                                the Federal Food, Drug, and Cosmetic 
                                Act; and
                                    ``(IV) the manufacturer is not a 
                                `first approved applicant' for a 
                                competitive generic therapy, as that 
                                term is defined in section 
                                505(j)(5)(B)(v) of the Federal Food, 
                                Drug, and Cosmetic Act; or
                            ``(iii) a biological licensed under section 
                        351 of the Public Health Service Act.
            ``(2) Unit.--The term `unit' means, with respect to a part 
        D rebatable drug, the lowest dispensable amount (such as a 
        capsule or tablet, milligram of molecules, or grams) of the 
        part D rebatable drug, as reported under section 1927.
            ``(3) Payment amount benchmark period.--The term `payment 
        amount benchmark period' means the period beginning January 1, 
        2021, and ending in the month immediately prior to October 1, 
        2021.
            ``(4) Benchmark period cpi-u.--The term `benchmark period 
        CPI-U' means the consumer price index for all urban consumers 
        (United States city average) for January 2021.
            ``(5) Applicable period cpi-u.--The term `applicable period 
        CPI-U' means, with respect to an applicable period, the 
        consumer price index for all urban consumers (United States 
        city average) for the first month of such applicable period.
            ``(6) Average manufacturer price.--The term `average 
        manufacturer price' has the meaning, with respect to a part D 
        rebatable drug of a manufacturer, given such term in section 
        1927(k)(1), with respect to a covered outpatient drug of a 
        manufacturer for a rebate period under section 1927.
            ``(7) Applicable period.--The term `applicable period' 
        means a 12-month period beginning with October 1 of a year 
        (beginning with October 1, 2022).
    ``(h) Implementation for 2022, 2023, and 2024.--The Secretary shall 
implement this section for 2022, 2023, and 2024 by program instruction 
or other forms of program guidance.''.
    (b) Conforming Amendments.--
            (1) To part b asp calculation.--Section 1847A(c)(3) of the 
        Social Security Act (42 U.S.C. 1395w-3a(c)(3)), as amended by 
        section 11101(c)(1), is amended by striking ``subsection (i) or 
        section 1927'' and inserting ``subsection (i), section 1927, or 
        section 1860D-14B''.
            (2) Excluding part d drug inflation rebate from best 
        price.--Section 1927(c)(1)(C)(ii)(I) of the Social Security Act 
        (42 U.S.C. 1396r-8(c)(1)(C)(ii)(I)), as amended by section 
        11101(c)(2), is amended by striking ``or section 1847A(i)'' and 
        inserting ``, section 1847A(i), or section 1860D-14B''.
            (3) Coordination with medicaid rebate information 
        disclosure.--Section 1927(b)(3)(D)(i) of the Social Security 
        Act (42 U.S.C. 1396r-8(b)(3)(D)(i)), as amended by sections 
        11002(b) and 11101(c)(3), is amended by striking ``or section 
        1192(f), including rebates under paragraph (4) of such 
        section'' and inserting ``, section 1192(f), including rebates 
        under paragraph (4) of such section, or section 1860D-14B''.
            (4) Excluding part d drug inflation rebates from average 
        manufacturer price.--Section 1927(k)(1)(B)(i) of the Social 
        Security Act (42 U.S.C. 1396r-8(k)(1)(B)(i)), as amended by 
        section 11001(b)(3) and section 11101(c)(4), is amended by 
        adding at the end the following new subclause:
                    (A) in subclause (VI), by striking ``and'' at the 
                end;
                    (B) in subclause (VII), by striking the period at 
                the end and inserting a semicolon; and
                    (C) by adding at the end the following new 
                subclause:
                                    ``(VIII) rebates paid by 
                                manufacturers under section 1860D-
                                14B.''.
    (c) Funding.--In addition to amounts otherwise available, there are 
appropriated to the Centers for Medicare & Medicaid Services, out of 
any money in the Treasury not otherwise appropriated, $80,000,000 for 
fiscal year 2022, including $12,500,000 to carry out the provisions of, 
including the amendments made by, this section in fiscal year 2022, and 
$7,500,000 to carry out the provisions of, including the amendments 
made by, this section in each of fiscal years 2023 through 2031, to 
remain available until expended.

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

SEC. 11201. MEDICARE PART D BENEFIT REDESIGN.

    (a) Benefit Structure Redesign.--Section 1860D-2(b) of the Social 
Security Act (42 U.S.C. 1395w-102(b)) is amended--
            (1) in paragraph (2)--
                    (A) in subparagraph (A), in the matter preceding 
                clause (i), by inserting ``for a year preceding 2025 
                and for costs above the annual deductible specified in 
                paragraph (1) and up to the annual out-of-pocket 
                threshold specified in paragraph (4)(B) for 2025 and 
                each subsequent year'' after ``paragraph (3)'';
                    (B) in subparagraph (C)--
                            (i) in clause (i), in the matter preceding 
                        subclause (I), by inserting ``for a year 
                        preceding 2025,'' after ``paragraph (4),''; and
                            (ii) in clause (ii)(III), by striking ``and 
                        each subsequent year'' and inserting ``through 
                        2024''; and
                    (C) in subparagraph (D)--
                            (i) in clause (i)--
                                    (I) in the matter preceding 
                                subclause (I), by inserting ``for a 
                                year preceding 2025,'' after 
                                ``paragraph (4),''; and
                                    (II) in subclause (I)(bb), by 
                                striking ``a year after 2018'' and 
                                inserting ``each of years 2019 through 
                                2024''; and
                            (ii) in clause (ii)(V), by striking ``2019 
                        and each subsequent year'' and inserting ``each 
                        of years 2019 through 2024'';
            (2) in paragraph (3)(A)--
                    (A) in the matter preceding clause (i), by 
                inserting ``for a year preceding 2025,'' after ``and 
                (4),''; and
                    (B) in clause (ii), by striking ``for a subsequent 
                year'' and inserting ``for each of years 2007 through 
                2024''; and
            (3) in paragraph (4)--
                    (A) in subparagraph (A)--
                            (i) in clause (i)--
                                    (I) by redesignating subclauses (I) 
                                and (II) as items (aa) and (bb), 
                                respectively, and moving the margin of 
                                each such redesignated item 2 ems to 
                                the right;
                                    (II) in the matter preceding item 
                                (aa), as redesignated by subclause (I), 
                                by striking ``is equal to the greater 
                                of--'' and inserting ``is equal to--
                                    ``(I) for a year preceding 2024, 
                                the greater of--'';
                                    (III) by striking the period at the 
                                end of item (bb), as redesignated by 
                                subclause (I), and inserting ``; and''; 
                                and
                                    (IV) by adding at the end the 
                                following:
                                    ``(II) for 2024 and each succeeding 
                                year, $0.''; and
                            (ii) in clause (ii)--
                                    (I) by striking ``clause (i)(I)'' 
                                and inserting ``clause (i)(I)(aa)''; 
                                and
                                    (II) by adding at the end the 
                                following new sentence: ``The Secretary 
                                shall continue to calculate the dollar 
                                amounts specified in clause (i)(I)(aa), 
                                including with the adjustment under 
                                this clause, after 2023 for purposes of 
                                section 1860D-14(a)(1)(D)(iii).'';
                    (B) in subparagraph (B)--
                            (i) in clause (i)--
                                    (I) in subclause (V), by striking 
                                ``or'' at the end;
                                    (II) in subclause (VI)--
                                            (aa) by striking ``for a 
                                        subsequent year'' and inserting 
                                        ``for each of years 2021 
                                        through 2024''; and
                                            (bb) by striking the period 
                                        at the end and inserting a 
                                        semicolon; and
                                    (III) by adding at the end the 
                                following new subclauses:
                                    ``(VII) for 2025, is equal to 
                                $2,000; or
                                    ``(VIII) for a subsequent year, is 
                                equal to the amount specified in this 
                                subparagraph for the previous year, 
                                increased by the annual percentage 
                                increase described in paragraph (6) for 
                                the year involved.''; and
                            (ii) in clause (ii), by striking ``clause 
                        (i)(II)'' and inserting ``clause (i)'';
                    (C) in subparagraph (C)--
                            (i) in clause (i), by striking ``and for 
                        amounts'' and inserting ``and, for a year 
                        preceding 2025, for amounts''; and
                            (ii) in clause (iii)--
                                    (I) by redesignating subclauses (I) 
                                through (IV) as items (aa) through (dd) 
                                and indenting appropriately;
                                    (II) by striking ``if such costs 
                                are borne or paid'' and inserting ``if 
                                such costs--
                                    ``(I) are borne or paid--''; and
                                    (III) in item (dd), by striking the 
                                period at the end and inserting ``; 
                                or''; and
                                    (IV) by adding at the end the 
                                following new subclause:
                                    ``(II) for 2025 and subsequent 
                                years, are reimbursed through 
                                insurance, a group health plan, or 
                                certain other third party payment 
                                arrangements, but not including the 
                                coverage provided by a prescription 
                                drug plan or an MA-PD plan that is 
                                basic prescription drug coverage (as 
                                defined in subsection (a)(3)) or any 
                                payments by a manufacturer under the 
                                manufacturer discount program under 
                                section 1860D-14C.''; and
                    (D) in subparagraph (E), by striking ``In 
                applying'' and inserting ``For each of years 2011 
                through 2024, in applying''.
    (b) Reinsurance Payment Amount.--Section 1860D-15(b) of the Social 
Security Act (42 U.S.C. 1395w-115(b)) is amended--
            (1) in paragraph (1)--
                    (A) by striking ``equal to 80 percent'' and 
                inserting ``equal to--
                    ``(A) for a year preceding 2025, 80 percent'';
                    (B) in subparagraph (A), as added by subparagraph 
                (A), by striking the period at the end and inserting 
                ``; and''; and
                    (C) by adding at the end the following new 
                subparagraph:
                    ``(B) for 2025 and each subsequent year, the sum 
                of--
                            ``(i) with respect to applicable drugs (as 
                        defined in section 1860D-14C(g)(2)), an amount 
                        equal to 20 percent of such allowable 
                        reinsurance costs attributable to that portion 
                        of gross covered prescription drug costs as 
                        specified in paragraph (3) incurred in the 
                        coverage year after such individual has 
                        incurred costs that exceed the annual out-of-
                        pocket threshold specified in section 1860D-
                        2(b)(4)(B); and
                            ``(ii) with respect to covered part D drugs 
                        that are not applicable drugs (as so defined), 
                        an amount equal to 40 percent of such allowable 
                        reinsurance costs attributable to that portion 
                        of gross covered prescription drug costs as 
                        specified in paragraph (3) incurred in the 
                        coverage year after such individual has 
                        incurred costs that exceed the annual out-of-
                        pocket threshold specified in section 1860D-
                        2(b)(4)(B).'';
            (2) in paragraph (2)--
                    (A) by striking ``COSTS.--For purposes'' and 
                inserting ``Costs.--
                    ``(A) In general.--Subject to subparagraph (B), for 
                purposes''; and
                    (B) by adding at the end the following new 
                subparagraph:
                    ``(B) Inclusion of manufacturer discounts on 
                applicable drugs.--For purposes of applying 
                subparagraph (A), the term `allowable reinsurance 
                costs' shall include the portion of the negotiated 
                price (as defined in section 1860D-14C(g)(6)) of an 
                applicable drug (as defined in section 1860D-14C(g)(2)) 
                that was paid by a manufacturer under the manufacturer 
                discount program under section 1860D-14C.''; and
            (3) in paragraph (3)--
                    (A) in the first sentence, by striking ``For 
                purposes'' and inserting ``Subject to paragraph (2)(B), 
                for purposes''; and
                    (B) in the second sentence, by inserting ``(or, 
                with respect to 2025 and subsequent years, in the case 
                of an applicable drug, as defined in section 1860D-
                14C(g)(2), by a manufacturer)'' after ``by the 
                individual or under the plan''.
    (c) Manufacturer Discount Program.--
            (1) In general.--Part D of title XVIII of the Social 
        Security Act (42 U.S.C. 1395w-101 through 42 U.S.C. 1395w-153), 
        as amended by section 11102, is amended by inserting after 
        section 1860D-14B the following new sections:

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

    ``(a) Establishment.--The Secretary shall establish a manufacturer 
discount program (in this section referred to as the `program'). Under 
the program, the Secretary shall enter into agreements described in 
subsection (b) with manufacturers and provide for the performance of 
the duties described in subsection (c).
    ``(b) Terms of Agreement.--
            ``(1) In general.--
                    ``(A) Agreement.--An agreement under this section 
                shall require the manufacturer to provide, in 
                accordance with this section, discounted prices for 
                applicable drugs of the manufacturer that are dispensed 
                to applicable beneficiaries on or after January 1, 
                2025.
                    ``(B) Clarification.--Nothing in this section shall 
                be construed as affecting--
                            ``(i) the application of a coinsurance of 
                        25 percent of the negotiated price, as applied 
                        under paragraph (2)(A) of section 1860D-2(b), 
                        for costs described in such paragraph; or
                            ``(ii) the application of the copayment 
                        amount described in paragraph (4)(A) of such 
                        section, with respect to costs described in 
                        such paragraph.
                    ``(C) Timing of agreement.--
                            ``(i) Special rule for 2025.--In order for 
                        an agreement with a manufacturer to be in 
                        effect under this section with respect to the 
                        period beginning on January 1, 2025, and ending 
                        on December 31, 2025, the manufacturer shall 
                        enter into such agreement not later than March 
                        1, 2024.
                            ``(ii) 2026 and subsequent years.--In order 
                        for an agreement with a manufacturer to be in 
                        effect under this section with respect to plan 
                        year 2026 or a subsequent plan year, the 
                        manufacturer shall enter into such agreement 
                        not later than a calendar quarter or semi-
                        annual deadline established by the Secretary.
            ``(2) Provision of appropriate data.--Each manufacturer 
        with an agreement in effect under this section shall collect 
        and have available appropriate data, as determined by the 
        Secretary, to ensure that it can demonstrate to the Secretary 
        compliance with the requirements under the program.
            ``(3) Compliance with requirements for administration of 
        program.--Each manufacturer with an agreement in effect under 
        this section shall comply with requirements imposed by the 
        Secretary, as applicable, for purposes of administering the 
        program, including any determination under subparagraph (A) of 
        subsection (c)(1) or procedures established under such 
        subsection (c)(1).
            ``(4) Length of agreement.--
                    ``(A) In general.--An agreement under this section 
                shall be effective for an initial period of not less 
                than 12 months and shall be automatically renewed for a 
                period of not less than 1 year unless terminated under 
                subparagraph (B).
                    ``(B) Termination.--
                            ``(i) By the secretary.--The Secretary 
                        shall provide for termination of an agreement 
                        under this section for a knowing and willful 
                        violation of the requirements of the agreement 
                        or other good cause shown. Such termination 
                        shall not be effective earlier than 30 days 
                        after the date of notice to the manufacturer of 
                        such termination. The Secretary shall provide, 
                        upon request, a manufacturer with a hearing 
                        concerning such a termination, and such hearing 
                        shall take place prior to the effective date of 
                        the termination with sufficient time for such 
                        effective date to be repealed if the Secretary 
                        determines appropriate.
                            ``(ii) By a manufacturer.--A manufacturer 
                        may terminate an agreement under this section 
                        for any reason. Any such termination shall be 
                        effective, with respect to a plan year--
                                    ``(I) if the termination occurs 
                                before January 31 of a plan year, as of 
                                the day after the end of the plan year; 
                                and
                                    ``(II) if the termination occurs on 
                                or after January 31 of a plan year, as 
                                of the day after the end of the 
                                succeeding plan year.
                            ``(iii) Effectiveness of termination.--Any 
                        termination under this subparagraph shall not 
                        affect discounts for applicable drugs of the 
                        manufacturer that are due under the agreement 
                        before the effective date of its termination.
            ``(5) Effective date of agreement.--An agreement under this 
        section shall take effect at the start of a calendar quarter or 
        another date specified by the Secretary.
    ``(c) Duties Described.--The duties described in this subsection 
are the following:
            ``(1) Administration of program.--Administering the 
        program, including--
                    ``(A) the determination of the amount of the 
                discounted price of an applicable drug of a 
                manufacturer;
                    ``(B) the establishment of procedures to ensure 
                that, not later than the applicable number of calendar 
                days after the dispensing of an applicable drug by a 
                pharmacy or mail order service, the pharmacy or mail 
                order service is reimbursed for an amount equal to the 
                difference between--
                            ``(i) the negotiated price of the 
                        applicable drug; and
                            ``(ii) the discounted price of the 
                        applicable drug;
                    ``(C) the establishment of procedures to ensure 
                that the discounted price for an applicable drug under 
                this section is applied before any coverage or 
                financial assistance under other health benefit plans 
                or programs that provide coverage or financial 
                assistance for the purchase or provision of 
                prescription drug coverage on behalf of applicable 
                beneficiaries as specified by the Secretary; and
                    ``(D) providing a reasonable dispute resolution 
                mechanism to resolve disagreements between 
                manufacturers, prescription drug plans and MA-PD plans, 
                and the Secretary.
            ``(2) Monitoring compliance.--The Secretary shall monitor 
        compliance by a manufacturer with the terms of an agreement 
        under this section.
            ``(3) Collection of data from prescription drug plans and 
        ma-pd plans.--The Secretary may collect appropriate data from 
        prescription drug plans and MA-PD plans in a timeframe that 
        allows for discounted prices to be provided for applicable 
        drugs under this section.
    ``(d) Administration.--
            ``(1) In general.--Subject to paragraph (2), the Secretary 
        shall provide for the implementation of this section, including 
        the performance of the duties described in subsection (c).
            ``(2) Limitation.--In providing for the implementation of 
        this section, the Secretary shall not receive or distribute any 
        funds of a manufacturer under the program.
    ``(e) Civil Money Penalty.--
            ``(1) In general.--A manufacturer that fails to provide 
        discounted prices for applicable drugs of the manufacturer 
        dispensed to applicable beneficiaries in accordance with an 
        agreement in effect under this section shall be subject to a 
        civil money penalty for each such failure in an amount the 
        Secretary determines is equal to the sum of--
                    ``(A) the amount that the manufacturer would have 
                paid with respect to such discounts under the 
                agreement, which will then be used to pay the discounts 
                which the manufacturer had failed to provide; and
                    ``(B) 25 percent of such amount.
            ``(2) Application.--The provisions of section 1128A (other 
        than subsections (a) and (b)) shall apply to a civil money 
        penalty under this subsection in the same manner as such 
        provisions apply to a penalty or proceeding under section 
        1128A(a).
    ``(f) Clarification Regarding Availability of Other Covered Part D 
Drugs.--Nothing in this section shall prevent an applicable beneficiary 
from purchasing a covered part D drug that is not an applicable drug 
(including a generic drug or a drug that is not on the formulary of the 
prescription drug plan or MA-PD plan that the applicable beneficiary is 
enrolled in).
    ``(g) Definitions.--In this section:
            ``(1) Applicable beneficiary.--The term `applicable 
        beneficiary' means an individual who, on the date of dispensing 
        a covered part D drug--
                    ``(A) is enrolled in a prescription drug plan or an 
                MA-PD plan;
                    ``(B) is not enrolled in a qualified retiree 
                prescription drug plan; and
                    ``(C) has incurred costs, as determined in 
                accordance with section 1860D-2(b)(4)(C), for covered 
                part D drugs in the year that exceed the annual 
                deductible specified in section 1860D-2(b)(1).
            ``(2) Applicable drug.--The term `applicable drug', with 
        respect to an applicable beneficiary--
                    ``(A) means a covered part D drug--
                            ``(i) approved under a new drug application 
                        under section 505(c) of the Federal Food, Drug, 
                        and Cosmetic Act or, in the case of a biologic 
                        product, licensed under section 351 of the 
                        Public Health Service Act; and
                            ``(ii)(I) if the PDP sponsor of the 
                        prescription drug plan or the MA organization 
                        offering the MA-PD plan uses a formulary, which 
                        is on the formulary of the prescription drug 
                        plan or MA-PD plan that the applicable 
                        beneficiary is enrolled in;
                            ``(II) if the PDP sponsor of the 
                        prescription drug plan or the MA organization 
                        offering the MA-PD plan does not use a 
                        formulary, for which benefits are available 
                        under the prescription drug plan or MA-PD plan 
                        that the applicable beneficiary is enrolled in; 
                        or
                            ``(III) is provided through an exception or 
                        appeal; and
                    ``(B) does not include a selected drug (as referred 
                to under section 1192(c)) during a price applicability 
                period (as defined in section 1191(b)(2)) with respect 
                to such drug.
            ``(3) Applicable number of calendar days.--The term 
        `applicable number of calendar days' means--
                    ``(A) with respect to claims for reimbursement 
                submitted electronically, 14 days; and
                    ``(B) with respect to claims for reimbursement 
                submitted otherwise, 30 days.
            ``(4) Discounted price.--
                    ``(A) In general.--The term `discounted price' 
                means, subject to subparagraphs (B) and (C), with 
                respect to an applicable drug of a manufacturer 
                dispensed during a year to an applicable beneficiary--
                            ``(i) who has not incurred costs, as 
                        determined in accordance with section 1860D-
                        2(b)(4)(C), for covered part D drugs in the 
                        year that are equal to or exceed the annual 
                        out-of-pocket threshold specified in section 
                        1860D-2(b)(4)(B)(i) for the year, 90 percent of 
                        the negotiated price of such drug; and
                            ``(ii) who has incurred such costs, as so 
                        determined, in the year that are equal to or 
                        exceed such threshold for the year, 80 percent 
                        of the negotiated price of such drug.
                    ``(B) Phase-in for certain drugs dispensed to lis 
                beneficiaries.--
                            ``(i) In general.--In the case of an 
                        applicable drug of a specified manufacturer (as 
                        defined in clause (ii)) that is marketed as of 
                        the date of enactment of this subparagraph and 
                        dispensed for an applicable beneficiary who is 
                        a subsidy eligible individual (as defined in 
                        section 1860D-14(a)(3)), the term `discounted 
                        price' means the specified LIS percent (as 
                        defined in clause (iii)) of the negotiated 
                        price of the applicable drug of the 
                        manufacturer.
                            ``(ii) Specified manufacturer.--
                                    ``(I) In general.--In this 
                                subparagraph, subject to subclause 
                                (II), the term `specified manufacturer' 
                                means a manufacturer of an applicable 
                                drug for which, in 2021--
                                            ``(aa) the manufacturer had 
                                        a coverage gap discount 
                                        agreement under section 1860D-
                                        14A;
                                            ``(bb) the total 
                                        expenditures for all of the 
                                        specified drugs of the 
                                        manufacturer covered by such 
                                        agreement or agreements for 
                                        such year and covered under 
                                        this part during such year 
                                        represented less than 1.0 
                                        percent of the total 
                                        expenditures under this part 
                                        for all covered Part D drugs 
                                        during such year; and
                                            ``(cc) the total 
                                        expenditures for all of the 
                                        specified drugs of the 
                                        manufacturer that are single 
                                        source drugs and biological 
                                        products for which payment may 
                                        be made under part B during 
                                        such year represented less than 
                                        1.0 percent of the total 
                                        expenditures under part B for 
                                        all drugs or biological 
                                        products for which payment may 
                                        be made under such part during 
                                        such year.
                                    ``(II) Specified drugs.--
                                            ``(aa) In general.--For 
                                        purposes of this clause, the 
                                        term `specified drug' means, 
                                        with respect to a specified 
                                        manufacturer, for 2021, an 
                                        applicable drug that is 
                                        produced, prepared, propagated, 
                                        compounded, converted, or 
                                        processed by the manufacturer.
                                            ``(bb) Aggregation rule.--
                                        All persons treated as a single 
                                        employer under subsection (a) 
                                        or (b) of section 52 of the 
                                        Internal Revenue Code of 1986 
                                        shall be treated as one 
                                        manufacturer for purposes of 
                                        this subparagraph. For purposes 
                                        of making a determination 
                                        pursuant to the previous 
                                        sentence, an agreement under 
                                        this section shall require that 
                                        a manufacturer provide and 
                                        attest to such information as 
                                        specified by the Secretary as 
                                        necessary.
                                    ``(III) Limitation.--The term 
                                `specified manufacturer' shall not 
                                include a manufacturer described in 
                                subclause (I) if such manufacturer is 
                                acquired after 2021 by another 
                                manufacturer that is not a specified 
                                manufacturer, effective at the 
                                beginning of the plan year immediately 
                                following such acquisition or, in the 
                                case of an acquisition before 2025, 
                                effective January 1, 2025.
                            ``(iii) Specified lis percent.--In this 
                        subparagraph, the `specified LIS percent' 
                        means, with respect to a year--
                                    ``(I) for an applicable drug 
                                dispensed for an applicable beneficiary 
                                described in clause (i) who has not 
                                incurred costs, as determined in 
                                accordance with section 1860D-
                                2(b)(4)(C), for covered part D drugs in 
                                the year that are equal to or exceed 
                                the annual out-of-pocket threshold 
                                specified in section 1860D-
                                2(b)(4)(B)(i) for the year--
                                            ``(aa) for 2025, 99 
                                        percent;
                                            ``(bb) for 2026, 98 
                                        percent;
                                            ``(cc) for 2027, 95 
                                        percent;
                                            ``(dd) for 2028, 92 
                                        percent; and
                                            ``(ee) for 2029 and each 
                                        subsequent year, 90 percent; 
                                        and
                                    ``(II) for an applicable drug 
                                dispensed for an applicable beneficiary 
                                described in clause (i) who has 
                                incurred costs, as determined in 
                                accordance with section 1860D-
                                2(b)(4)(C), for covered part D drugs in 
                                the year that are equal to or exceed 
                                the annual out-of-pocket threshold 
                                specified in section 1860D-
                                2(b)(4)(B)(i) for the year--
                                            ``(aa) for 2025, 99 
                                        percent;
                                            ``(bb) for 2026, 98 
                                        percent;
                                            ``(cc) for 2027, 95 
                                        percent;
                                            ``(dd) for 2028, 92 
                                        percent;
                                            ``(ee) for 2029, 90 
                                        percent;
                                            ``(ff) for 2030, 85 
                                        percent; and
                                            ``(gg) for 2031 and each 
                                        subsequent year, 80 percent.
                    ``(C) Phase-in for specified small manufacturers.--
                            ``(i) In general.--In the case of an 
                        applicable drug of a specified small 
                        manufacturer (as defined in clause (ii)) that 
                        is marketed as of the date of enactment of this 
                        subparagraph and dispensed for an applicable 
                        beneficiary, the term `discounted price' means 
                        the specified small manufacturer percent (as 
                        defined in clause (iii)) of the negotiated 
                        price of the applicable drug of the 
                        manufacturer.
                            ``(ii) Specified small manufacturer.--
                                    ``(I) In general.--In this 
                                subparagraph, subject to subclause 
                                (III), the term `specified small 
                                manufacturer' means a manufacturer of 
                                an applicable drug for which, in 2021--
                                            ``(aa) the manufacturer is 
                                        a specified manufacturer (as 
                                        defined in subparagraph 
                                        (B)(ii)); and
                                            ``(bb) the total 
                                        expenditures under part D for 
                                        any one of the specified small 
                                        manufacturer drugs of the 
                                        manufacturer that are covered 
                                        by the agreement or agreements 
                                        under section 1860D-14A of such 
                                        manufacturer for such year and 
                                        covered under this part during 
                                        such year are equal to or more 
                                        than 80 percent of the total 
                                        expenditures under this part 
                                        for all specified small 
                                        manufacturer drugs of the 
                                        manufacturer that are covered 
                                        by such agreement or agreements 
                                        for such year and covered under 
                                        this part during such year.
                                    ``(II) Specified small manufacturer 
                                drugs.--
                                            ``(aa) In general.--For 
                                        purposes of this clause, the 
                                        term `specified small 
                                        manufacturer drugs' means, with 
                                        respect to a specified small 
                                        manufacturer, for 2021, an 
                                        applicable drug that is 
                                        produced, prepared, propagated, 
                                        compounded, converted, or 
                                        processed by the manufacturer.
                                            ``(bb) Aggregation rule.--
                                        All persons treated as a single 
                                        employer under subsection (a) 
                                        or (b) of section 52 of the 
                                        Internal Revenue Code of 1986 
                                        shall be treated as one 
                                        manufacturer for purposes of 
                                        this subparagraph. For purposes 
                                        of making a determination 
                                        pursuant to the previous 
                                        sentence, an agreement under 
                                        this section shall require that 
                                        a manufacturer provide and 
                                        attest to such information as 
                                        specified by the Secretary as 
                                        necessary.
                                    ``(III) Limitation.--The term 
                                `specified small manufacturer' shall 
                                not include a manufacturer described in 
                                subclause (I) if such manufacturer is 
                                acquired after 2021 by another 
                                manufacturer that is not a specified 
                                small manufacturer, effective at the 
                                beginning of the plan year immediately 
                                following such acquisition or, in the 
                                case of an acquisition before 2025, 
                                effective January 1, 2025.
                            ``(iii) Specified small manufacturer 
                        percent.--In this subparagraph, the term 
                        `specified small manufacturer percent' means, 
                        with respect to a year--
                                    ``(I) for an applicable drug 
                                dispensed for an applicable beneficiary 
                                who has not incurred costs, as 
                                determined in accordance with section 
                                1860D-2(b)(4)(C), for covered part D 
                                drugs in the year that are equal to or 
                                exceed the annual out-of-pocket 
                                threshold specified in section 1860D-
                                2(b)(4)(B)(i) for the year--
                                            ``(aa) for 2025, 99 
                                        percent;
                                            ``(bb) for 2026, 98 
                                        percent;
                                            ``(cc) for 2027, 95 
                                        percent;
                                            ``(dd) for 2028, 92 
                                        percent; and
                                            ``(ee) for 2029 and each 
                                        subsequent year, 90 percent; 
                                        and
                                    ``(II) for an applicable drug 
                                dispensed for an applicable beneficiary 
                                who has incurred costs, as determined 
                                in accordance with section 1860D-
                                2(b)(4)(C), for covered part D drugs in 
                                the year that are equal to or exceed 
                                the annual out-of-pocket threshold 
                                specified in section 1860D-
                                2(b)(4)(B)(i) for the year--
                                            ``(aa) for 2025, 99 
                                        percent;
                                            ``(bb) for 2026, 98 
                                        percent;
                                            ``(cc) for 2027, 95 
                                        percent;
                                            ``(dd) for 2028, 92 
                                        percent;
                                            ``(ee) for 2029, 90 
                                        percent;
                                            ``(ff) for 2030, 85 
                                        percent; and
                                            ``(gg) for 2031 and each 
                                        subsequent year, 80 percent.
                    ``(D) Total expenditures.--For purposes of this 
                paragraph, the term `total expenditures' includes, in 
                the case of expenditures with respect to part D, the 
                total gross covered prescription drug costs as defined 
                in section 1860D-15(b)(3). The term `total 
                expenditures' excludes, in the case of expenditures 
                with respect to part B, expenditures for a drug or 
                biological that are bundled or packaged into the 
                payment for another service.
                    ``(E) Special case for certain claims.--
                            ``(i) Claims spanning deductible.--In the 
                        case where the entire amount of the negotiated 
                        price of an individual claim for an applicable 
                        drug with respect to an applicable beneficiary 
                        does not fall above the annual deductible 
                        specified in section 1860D-2(b)(1) for the 
                        year, the manufacturer of the applicable drug 
                        shall provide the discounted price under this 
                        section on only the portion of the negotiated 
                        price of the applicable drug that falls above 
                        such annual deductible.
                            ``(ii) Claims spanning out-of-pocket 
                        threshold.--In the case where the entire amount 
                        of the negotiated price of an individual claim 
                        for an applicable drug with respect to an 
                        applicable beneficiary does not fall entirely 
                        below or entirely above the annual out-of-
                        pocket threshold specified in section 1860D-
                        2(b)(4)(B)(i) for the year, the manufacturer of 
                        the applicable drug shall provide the 
                        discounted price--
                                    ``(I) in accordance with 
                                subparagraph (A)(i) on the portion of 
                                the negotiated price of the applicable 
                                drug that falls below such threshold; 
                                and
                                    ``(II) in accordance with 
                                subparagraph (A)(ii) on the portion of 
                                such price of such drug that falls at 
                                or above such threshold.
            ``(5) Manufacturer.--The term `manufacturer' means any 
        entity which is engaged in the production, preparation, 
        propagation, compounding, conversion, or processing of 
        prescription drug products, either directly or indirectly by 
        extraction from substances of natural origin, or independently 
        by means of chemical synthesis, or by a combination of 
        extraction and chemical synthesis. Such term does not include a 
        wholesale distributor of drugs or a retail pharmacy licensed 
        under State law.
            ``(6) Negotiated price.--The term `negotiated price' has 
        the meaning given such term for purposes of section 1860D-
        2(d)(1)(B), and, with respect to an applicable drug, such 
        negotiated price shall include any dispensing fee and, if 
        applicable, any vaccine administration fee for the applicable 
        drug.
            ``(7) Qualified retiree prescription drug plan.--The term 
        `qualified retiree prescription drug plan' has the meaning 
        given such term in section 1860D-22(a)(2).

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

    ``With respect to covered part D drugs that would be applicable 
drugs (as defined in section 1860D-14C(g)(2)) but for the application 
of subparagraph (B) of such section, the Secretary shall provide a 
process whereby, in the case of an applicable beneficiary (as defined 
in section 1860D-14C(g)(1)) who, with respect to a year, is enrolled in 
a prescription drug plan or is enrolled in an MA-PD plan, has not 
incurred costs that are equal to or exceed the annual out-of-pocket 
threshold specified in section 1860D-2(b)(4)(B)(i), and is dispensed 
such a drug, the Secretary (periodically and on a timely basis) 
provides the PDP sponsor or the MA organization offering the plan, a 
subsidy with respect to such drug that is equal to 10 percent of the 
negotiated price (as defined in section 1860D-14C(g)(6)) of such 
drug.''.
            (2) Sunset of medicare coverage gap discount program.--
        Section 1860D-14A of the Social Security Act (42 U.S.C. 1395w-
        114a) is amended--
                    (A) in subsection (a), in the first sentence, by 
                striking ``The Secretary'' and inserting ``Subject to 
                subsection (h), the Secretary''; and
                    (B) by adding at the end the following new 
                subsection:
    ``(h) Sunset of Program.--
            ``(1) In general.--The program shall not apply with respect 
        to applicable drugs dispensed on or after January 1, 2025, and, 
        subject to paragraph (2), agreements under this section shall 
        be terminated as of such date.
            ``(2) Continued application for applicable drugs dispensed 
        prior to sunset.--The provisions of this section (including all 
        responsibilities and duties) shall continue to apply on and 
        after January 1, 2025, with respect to applicable drugs 
        dispensed prior to such date.''.
            (3) Selected drug subsidy payments from medicare 
        prescription drug account.--Section 1860D-16(b)(1) of the 
        Social Security Act (42 U.S.C. 1395w-116(b)(1)) is amended--
                    (A) in subparagraph (C), by striking ``and'' at the 
                end;
                    (B) in subparagraph (D), by striking the period at 
                the end and inserting ``; and''; and
                    (C) by adding at the end the following new 
                subparagraph:
                    ``(E) payments under section 1860D-14D (relating to 
                selected drug subsidy payments).''.
    (d) Medicare Part D Premium Stabilization.--
            (1) 2024 through 2029.--Section 1860D-13 of the Social 
        Security Act (42 U.S.C. 1395w-113) is amended--
                    (A) in subsection (a)--
                            (i) in paragraph (1)(A), by inserting ``or 
                        (8) (as applicable)'' after ``paragraph (2)'';
                            (ii) in paragraph (2), in the matter 
                        preceding subparagraph (A), by striking ``The 
                        base'' and inserting ``Subject to paragraph 
                        (8), the base'';
                            (iii) in paragraph (7)--
                                    (I) in subparagraph (B)(ii), by 
                                inserting ``or (8) (as applicable)'' 
                                after ``paragraph (2)''; and
                                    (II) in subparagraph (E)(i), by 
                                inserting ``or (8) (as applicable)'' 
                                after ``paragraph (2)''; and
                            (iv) by adding at the end the following new 
                        paragraph:
            ``(8) Premium stabilization.--
                    ``(A) In general.--The base beneficiary premium 
                under this paragraph for a prescription drug plan for a 
                month in 2024 through 2029 shall be computed as 
                follows:
                            ``(i) 2024.--The base beneficiary premium 
                        for a month in 2024 shall be equal to the 
                        lesser of--
                                    ``(I) the base beneficiary premium 
                                computed under paragraph (2) for a 
                                month in 2023 increased by 6 percent; 
                                or
                                    ``(II) the base beneficiary premium 
                                computed under paragraph (2) for a 
                                month in 2024 that would have applied 
                                if this paragraph had not been enacted.
                            ``(ii) 2025.--The base beneficiary premium 
                        for a month in 2025 shall be equal to the 
                        lesser of--
                                    ``(I) the base beneficiary premium 
                                computed under clause (i) for a month 
                                in 2024 increased by 6 percent; or
                                    ``(II) the base beneficiary premium 
                                computed under paragraph (2) for a 
                                month in 2025 that would have applied 
                                if this paragraph had not been enacted.
                            ``(iii) 2026.--The base beneficiary premium 
                        for a month in 2026 shall be equal to the 
                        lesser of--
                                    ``(I) the base beneficiary premium 
                                computed under clause (ii) for a month 
                                in 2025 increased by 6 percent; or
                                    ``(II) the base beneficiary premium 
                                computed under paragraph (2) for a 
                                month in 2026 that would have applied 
                                if this paragraph had not been enacted.
                            ``(iv) 2027.--The base beneficiary premium 
                        for a month in 2027 shall be equal to the 
                        lesser of--
                                    ``(I) the base beneficiary premium 
                                computed under clause (iii) for a month 
                                in 2026 increased by 6 percent; or
                                    ``(II) the base beneficiary premium 
                                computed under paragraph (2) for a 
                                month in 2027 that would have applied 
                                if this paragraph had not been enacted.
                            ``(v) 2028.--The base beneficiary premium 
                        for a month in 2028 shall be equal to the 
                        lesser of--
                                    ``(I) the base beneficiary premium 
                                computed under clause (iv) for a month 
                                in 2027 increased by 6 percent; or
                                    ``(II) the base beneficiary premium 
                                computed under paragraph (2) for a 
                                month in 2028 that would have applied 
                                if this paragraph had not been enacted.
                            ``(vi) 2029.--The base beneficiary premium 
                        for a month in 2029 shall be equal to the 
                        lesser of--
                                    ``(I) the base beneficiary premium 
                                computed under clause (v) for a month 
                                in 2028 increased by 6 percent; or
                                    ``(II) the base beneficiary premium 
                                computed under paragraph (2) for a 
                                month in 2029 that would have applied 
                                if this paragraph had not been enacted.
                    ``(B) Clarification regarding 2030 and subsequent 
                years.--The base beneficiary premium for a month in 
                2030 or a subsequent year shall be computed under 
                paragraph (2) without regard to this paragraph.''; and
                    (B) in subsection (b)(3)(A)(ii), by striking 
                ``subsection (a)(2)'' and inserting ``paragraph (2) or 
                (8) of subsection (a) (as applicable)''.
            (2) Adjustment to beneficiary premium percentage for 2030 
        and subsequent years.--Section 1860D-13(a) of the Social 
        Security Act (42 U.S.C. 1395w-113(a)), as amended by paragraph 
        (1), is amended--
                    (A) in paragraph (3)(A), by inserting ``(or, for 
                2030 and each subsequent year, the percent specified 
                under paragraph (9))'' after ``25.5 percent''; and
                    (B) by adding at the end the following new 
                paragraph:
            ``(9) Percent specified.--
                    ``(A) In general.--Subject to subparagraph (B), for 
                purposes of paragraph (3)(A), the percent specified 
                under this paragraph for 2030 and each subsequent year 
                is the percent that the Secretary determines is 
                necessary to ensure that the base beneficiary premium 
                computed under paragraph (2) for a month in 2030 is 
                equal to the lesser of--
                            ``(i) the base beneficiary premium computed 
                        under paragraph (8)(A)(vi) for a month in 2029 
                        increased by 6 percent; or
                            ``(ii) the base beneficiary premium 
                        computed under paragraph (2) for a month in 
                        2030 that would have applied if this paragraph 
                        had not been enacted.
                    ``(B) Floor.--The percent specified under 
                subparagraph (A) may not be less than 20 percent.''.
            (3) Conforming amendments.--
                    (A) Section 1854(b)(2)(B) of the Social Security 
                Act 42 U.S.C. 1395w-24(b)(2)(B)) is amended by striking 
                ``section 1860D-13(a)(2)'' and inserting ``paragraph 
                (2) or (8) (as applicable) of section 1860D-13(a)''.
                    (B) Section 1860D-11(g)(6) of the Social Security 
                Act (42 U.S.C. 1395w-111(g)(6)) is amended by inserting 
                ``(or, for 2030 and each subsequent year, the percent 
                specified under section 1860D-13(a)(9))'' after ``25.5 
                percent''.
                    (C) Section 1860D-13(a)(7)(B)(i) of the Social 
                Security Act (42 U.S.C. 1395w-113(a)(7)(B)(i)) is 
                amended--
                            (i) in subclause (I), by inserting ``(or, 
                        for 2030 and each subsequent year, the percent 
                        specified under paragraph (9))'' after ``25.5 
                        percent''; and
                            (ii) in subclause (II), by inserting ``(or, 
                        for 2030 and each subsequent year, the percent 
                        specified under paragraph (9))'' after ``25.5 
                        percent''.
                    (D) Section 1860D-15(a) of the Social Security Act 
                (42 U.S.C. 1395w-115(a)) is amended--
                            (i) in the matter preceding paragraph (1), 
                        by inserting ``(or, for each of 2024 through 
                        2029, the percent applicable as a result of the 
                        application of section 1860D-13(a)(8), or, for 
                        2030 and each subsequent year, 100 percent 
                        minus the percent specified under section 
                        1860D-13(a)(9))'' after ``74.5 percent''; and
                            (ii) in paragraph (1)(B), by striking 
                        ``paragraph (2) of section 1860D-13(a)'' and 
                        inserting ``paragraph (2) or (8) of section 
                        1860D-13(a) (as applicable)''.
    (e) Conforming Amendments.--
            (1) Section 1860D-2 of the Social Security Act (42 U.S.C. 
        1395w-102) is amended--
                    (A) in subsection (a)(2)(A)(i)(I), by striking ``, 
                or an increase in the initial'' and inserting ``or, for 
                a year preceding 2025, an increase in the initial'';
                    (B) in subsection (c)(1)(C)--
                            (i) in the subparagraph heading, by 
                        striking ``at initial coverage limit''; and
                            (ii) by inserting ``for a year preceding 
                        2025 or the annual out-of-pocket threshold 
                        specified in subsection (b)(4)(B) for the year 
                        for 2025 and each subsequent year'' after 
                        ``subsection (b)(3) for the year'' each place 
                        it appears; and
                    (C) in subsection (d)(1)(A), by striking ``or an 
                initial'' and inserting ``or, for a year preceding 
                2025, an initial''.
            (2) Section 1860D-4(a)(4)(B)(i) of the Social Security Act 
        (42 U.S.C. 1395w-104(a)(4)(B)(i)) is amended by striking ``the 
        initial'' and inserting ``for a year preceding 2025, the 
        initial''.
            (3) Section 1860D-14(a) of the Social Security Act (42 
        U.S.C. 1395w-114(a)) is amended--
                    (A) in paragraph (1)--
                            (i) in subparagraph (C), by striking ``The 
                        continuation'' and inserting ``For a year 
                        preceding 2025, the continuation'';
                            (ii) in subparagraph (D)(iii), by striking 
                        ``1860D-2(b)(4)(A)(i)(I)'' and inserting 
                        ``1860D-2(b)(4)(A)(i)(I)(aa)''; and
                            (iii) in subparagraph (E), by striking 
                        ``The elimination'' and inserting ``For a year 
                        preceding 2024, the elimination''; and
                    (B) in paragraph (2)(E), by striking ``1860D-
                2(b)(4)(A)(i)(I)'' and inserting ``1860D-
                2(b)(4)(A)(i)(I)(aa)''.
            (4) Section 1860D-21(d)(7) of the Social Security Act (42 
        U.S.C. 1395w-131(d)(7)) is amended by striking ``section 1860D-
        2(b)(4)(B)(i)'' and inserting ``section 1860D-2(b)(4)(C)(i)''.
            (5) Section 1860D-22(a)(2)(A) of the Social Security Act 
        (42 U.S.C. 1395w-132(a)(2)(A)) is amended--
                    (A) by striking ``the value of any discount'' and 
                inserting the following: ``the value of--
                            ``(i) for years prior to 2025, any 
                        discount'';
                    (B) in clause (i), as inserted by subparagraph (A) 
                of this paragraph, by striking the period at the end 
                and inserting ``; and''; and
                    (C) by adding at the end the following new clause:
                            ``(ii) for 2025 and each subsequent year, 
                        any discount provided pursuant to section 
                        1860D-14C.''.
            (6) Section 1860D-41(a)(6) of the Social Security Act (42 
        U.S.C. 1395w-151(a)(6)) is amended--
                    (A) by inserting ``for a year before 2025'' after 
                ``1860D-2(b)(3)''; and
                    (B) by inserting ``for such year'' before the 
                period.
            (7) Section 1860D-43 of the Social Security Act (42 U.S.C. 
        1395w-153) is amended--
                    (A) in subsection (a)--
                            (i) by striking paragraph (1) and inserting 
                        the following:
            ``(1) participate in--
                    ``(A) for 2011 through 2024, the Medicare coverage 
                gap discount program under section 1860D-14A; and
                    ``(B) for 2025 and each subsequent year, the 
                manufacturer discount program under section 1860D-
                14C;'';
                            (ii) by striking paragraph (2) and 
                        inserting the following:
            ``(2) have entered into and have in effect--
                    ``(A) for 2011 through 2024, an agreement described 
                in subsection (b) of section 1860D-14A with the 
                Secretary; and
                    ``(B) for 2025 and each subsequent year, an 
                agreement described in subsection (b) of section 1860D-
                14C with the Secretary; and''; and
                            (iii) in paragraph (3), by striking ``such 
                        section'' and inserting ``section 1860D-14A''; 
                        and
                    (B) by striking subsection (b) and inserting the 
                following:
    ``(b) Effective Date.--Paragraphs (1)(A), (2)(A), and (3) of 
subsection (a) shall apply to covered part D drugs dispensed under this 
part on or after January 1, 2011, and before January 1, 2025, and 
paragraphs (1)(B) and (2)(B) of such subsection shall apply to covered 
part D drugs dispensed under this part on or after January 1, 2025.''.
            (8) Section 1927 of the Social Security Act (42 U.S.C. 
        1396r-8) is amended--
                    (A) in subsection (c)(1)(C)(i)(VI), by inserting 
                before the period at the end the following: ``or under 
                the manufacturer discount program under section 1860D-
                14C''; and
                    (B) in subsection (k)(1)(B)(i)(V), by inserting 
                before the period at the end the following: ``or under 
                section 1860D-14C''.
    (f) Implementation for 2024 Through 2026.--The Secretary shall 
implement this section, including the amendments made by this section, 
for 2024, 2025, and 2026 by program instruction or other forms of 
program guidance.
    (g) Funding.--In addition to amounts otherwise available, there are 
appropriated to the Centers for Medicare & Medicaid Services, out of 
any money in the Treasury not otherwise appropriated, $341,000,000 for 
fiscal year 2022, including $20,000,000 and $65,000,000 to carry out 
the provisions of, including the amendments made by, this section in 
fiscal years 2022 and 2023, respectively, and $32,000,000 to carry out 
the provisions of, including the amendments made by, this section in 
each of fiscal years 2024 through 2031, to remain available until 
expended.

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

    (a) In General.--Section 1860D-2(b) of the Social Security Act (42 
U.S.C. 1395w-102(b)) is amended--
            (1) in paragraph (2)--
                    (A) in subparagraph (A), by striking ``and (D)'' 
                and inserting ``, (D), and (E)''; and
                    (B) by adding at the end the following new 
                subparagraph:
                    ``(E) Maximum monthly cap on cost-sharing 
                payments.--
                            ``(i) In general.--For plan years beginning 
                        on or after January 1, 2025, each PDP sponsor 
                        offering a prescription drug plan and each MA 
                        organization offering an MA-PD plan shall 
                        provide to any enrollee of such plan, including 
                        an enrollee who is a subsidy eligible 
                        individual (as defined in paragraph (3) of 
                        section 1860D-14(a)), the option to elect with 
                        respect to a plan year to pay cost-sharing 
                        under the plan in monthly amounts that are 
                        capped in accordance with this subparagraph.
                            ``(ii) Determination of maximum monthly 
                        cap.--For each month in the plan year for which 
                        an enrollee in a prescription drug plan or an 
                        MA-PD plan has made an election pursuant to 
                        clause (i), the PDP sponsor or MA organization 
                        shall determine a maximum monthly cap (as 
                        defined in clause (iv)) for such enrollee.
                            ``(iii) Beneficiary monthly payments.--With 
                        respect to an enrollee who has made an election 
                        pursuant to clause (i), for each month 
                        described in clause (ii), the PDP sponsor or MA 
                        organization shall bill such enrollee an amount 
                        (not to exceed the maximum monthly cap) for the 
                        out-of-pocket costs of such enrollee in such 
                        month.
                            ``(iv) Maximum monthly cap defined.--In 
                        this subparagraph, the term `maximum monthly 
                        cap' means, with respect to an enrollee--
                                    ``(I) for the first month for which 
                                the enrollee has made an election 
                                pursuant to clause (i), an amount 
                                determined by calculating--
                                            ``(aa) the annual out-of-
                                        pocket threshold specified in 
                                        paragraph (4)(B) minus the 
                                        incurred costs of the enrollee 
                                        as described in paragraph 
                                        (4)(C); divided by
                                            ``(bb) the number of months 
                                        remaining in the plan year; and
                                    ``(II) for a subsequent month, an 
                                amount determined by calculating--
                                            ``(aa) the sum of any 
                                        remaining out-of-pocket costs 
                                        owed by the enrollee from a 
                                        previous month that have not 
                                        yet been billed to the enrollee 
                                        and any additional out-of-
                                        pocket costs incurred by the 
                                        enrollee; divided by
                                            ``(bb) the number of months 
                                        remaining in the plan year.
                            ``(v) Additional requirements.--The 
                        following requirements shall apply with respect 
                        to the option to make an election pursuant to 
                        clause (i) under this subparagraph:
                                    ``(I) Secretarial 
                                responsibilities.--The Secretary shall 
                                provide information to part D eligible 
                                individuals on the option to make such 
                                election through educational materials, 
                                including through the notices provided 
                                under section 1804(a).
                                    ``(II) Timing of election.--An 
                                enrollee in a prescription drug plan or 
                                an MA-PD plan may make such an 
                                election--
                                            ``(aa) prior to the 
                                        beginning of the plan year; or
                                            ``(bb) in any month during 
                                        the plan year.
                                    ``(III) Pdp sponsor and ma 
                                organization responsibilities.--Each 
                                PDP sponsor offering a prescription 
                                drug plan or MA organization offering 
                                an MA-PD plan--
                                            ``(aa) may not limit the 
                                        option for an enrollee to make 
                                        such an election to certain 
                                        covered part D drugs;
                                            ``(bb) shall, prior to the 
                                        plan year, notify prospective 
                                        enrollees of the option to make 
                                        such an election in promotional 
                                        materials;
                                            ``(cc) shall include 
                                        information on such option in 
                                        enrollee educational materials;
                                            ``(dd) shall have in place 
                                        a mechanism to notify a 
                                        pharmacy during the plan year 
                                        when an enrollee incurs out-of-
                                        pocket costs with respect to 
                                        covered part D drugs that make 
                                        it likely the enrollee may 
                                        benefit from making such an 
                                        election;
                                            ``(ee) shall provide that a 
                                        pharmacy, after receiving a 
                                        notification described in item 
                                        (dd) with respect to an 
                                        enrollee, informs the enrollee 
                                        of such notification;
                                            ``(ff) shall ensure that 
                                        such an election by an enrollee 
                                        has no effect on the amount 
                                        paid to pharmacies (or the 
                                        timing of such payments) with 
                                        respect to covered part D drugs 
                                        dispensed to the enrollee; and
                                            ``(gg) shall have in place 
                                        a financial reconciliation 
                                        process to correct inaccuracies 
                                        in payments made by an enrollee 
                                        under this subparagraph with 
                                        respect to covered part D drugs 
                                        during the plan year.
                                    ``(IV) Failure to pay amount 
                                billed.--If an enrollee fails to pay 
                                the amount billed for a month as 
                                required under this subparagraph--
                                            ``(aa) the election of the 
                                        enrollee pursuant to clause (i) 
                                        shall be terminated and the 
                                        enrollee shall pay the cost-
                                        sharing otherwise applicable 
                                        for any covered part D drugs 
                                        subsequently dispensed to the 
                                        enrollee up to the annual out-
                                        of-pocket threshold specified 
                                        in paragraph (4)(B); and
                                            ``(bb) the PDP sponsor or 
                                        MA organization may preclude 
                                        the enrollee from making an 
                                        election pursuant to clause (i) 
                                        in a subsequent plan year.
                                    ``(V) Clarification regarding past 
                                due amounts.--Nothing in this 
                                subparagraph shall be construed as 
                                prohibiting a PDP sponsor or an MA 
                                organization from billing an enrollee 
                                for an amount owed under this 
                                subparagraph.
                                    ``(VI) Treatment of unsettled 
                                balances.--Any unsettled balances with 
                                respect to amounts owed under this 
                                subparagraph shall be treated as plan 
                                losses and the Secretary shall not be 
                                liable for any such balances outside of 
                                those assumed as losses estimated in 
                                plan bids.''; and
            (2) in paragraph (4)--
                    (A) in subparagraph (C), by striking ``subparagraph 
                (E)'' and inserting ``subparagraph (E) or subparagraph 
                (F)''; and
                    (B) by adding at the end the following new 
                subparagraph:
                    ``(F) Inclusion of costs paid under maximum monthly 
                cap option.--In applying subparagraph (A), with respect 
                to an enrollee who has made an election pursuant to 
                clause (i) of paragraph (2)(E), costs shall be treated 
                as incurred if such costs are paid by a PDP sponsor or 
                an MA organization under the option provided under such 
                paragraph.''.
    (b) Application to Alternative Prescription Drug Coverage.--Section 
1860D-2(c) of the Social Security Act (42 U.S.C. 1395w-102(c)) is 
amended by adding at the end the following new paragraph:
            ``(4) Same maximum monthly cap on cost-sharing.--The 
        maximum monthly cap on cost-sharing payments shall apply to 
        coverage with respect to an enrollee who has made an election 
        pursuant to clause (i) of subsection (b)(2)(E) under the option 
        provided under such subsection.''.
    (c) Implementation for 2025.--The Secretary shall implement this 
section, including the amendments made by this section, for 2025 by 
program instruction or other forms of program guidance.
    (d) Funding.--In addition to amounts otherwise available, there are 
appropriated to the Centers for Medicare & Medicaid Services, out of 
any money in the Treasury not otherwise appropriated, $10,000,000 for 
fiscal year 2023, to remain available until expended, to carry out the 
provisions of, including the amendments made by, this section.

 PART 4--CONTINUED DELAY OF IMPLEMENTATION OF PRESCRIPTION DRUG REBATE 
                                  RULE

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

    The Secretary of Health and Human Services shall not, prior to 
January 1, 2032, implement, administer, or enforce the provisions of 
the final rule published by the Office of the Inspector General of the 
Department of Health and Human Services on November 30, 2020, and 
titled ``Fraud and Abuse; Removal of Safe Harbor Protection for Rebates 
Involving Prescription Pharmaceuticals and Creation of New Safe Harbor 
Protection for Certain Point-of-Sale Reductions in Price on 
Prescription Pharmaceuticals and Certain Pharmacy Benefit Manager 
Service Fees'' (85 Fed. Reg. 76666).

                         PART 5--MISCELLANEOUS

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

    (a) Ensuring Treatment of Cost-sharing and Deductible Is Consistent 
With Treatment of Vaccines Under Medicare Part B.--Section 1860D-2 of 
the Social Security Act (42 U.S.C. 1395w-102), as amended by sections 
11201 and 11202, is amended--
            (1) in subsection (b)--
                    (A) in paragraph (1)(A), by striking ``The 
                coverage'' and inserting ``Subject to paragraph (8), 
                the coverage'';
                    (B) in paragraph (2)--
                            (i) in subparagraph (A), by inserting ``and 
                        paragraph (8)'' after ``and (E)'';
                            (ii) in subparagraph (C)(i), in the matter 
                        preceding subclause (I), by striking 
                        ``paragraph (4)'' and inserting ``paragraphs 
                        (4) and (8)''; and
                            (iii) in subparagraph (D)(i), in the matter 
                        preceding subclause (I), by striking 
                        ``paragraph (4)'' and inserting ``paragraphs 
                        (4) and (8)'';
                    (C) in paragraph (3)(A), in the matter preceding 
                clause (i), by striking ``and (4)'' and inserting 
                ``(4), and (8)'';
                    (D) in paragraph (4)(A)(i), by striking ``The 
                coverage'' and inserting ``Subject to paragraph (8), 
                the coverage''; and
                    (E) by adding at the end the following new 
                paragraph:
            ``(8) Treatment of cost-sharing for adult vaccines 
        recommended by the advisory committee on immunization practices 
        consistent with treatment of vaccines under part b.--
                    ``(A) In general.--For plan years beginning on or 
                after January 1, 2023, with respect to an adult vaccine 
                recommended by the Advisory Committee on Immunization 
                Practices (as defined in subparagraph (B))--
                            ``(i) the deductible under paragraph (1) 
                        shall not apply; and
                            ``(ii) there shall be no coinsurance or 
                        other cost-sharing under this part with respect 
                        to such vaccine.
                    ``(B) Adult vaccines recommended by the advisory 
                committee on immunization practices.--For purposes of 
                this paragraph, the term `adult vaccine recommended by 
                the Advisory Committee on Immunization Practices' means 
                a covered part D drug that is a vaccine licensed under 
                section 351 of the Public Health Service Act for use by 
                adult populations and administered in accordance with 
                recommendations of the Advisory Committee on 
                Immunization Practices of the Centers for Disease 
                Control and Prevention.''; and
            (2) in subsection (c), by adding at the end the following 
        new paragraph:
            ``(5) Treatment of cost-sharing for adult vaccines 
        recommended by the advisory committee on immunization 
        practices.--The coverage is in accordance with subsection 
        (b)(8).''.
    (b) Conforming Amendments to Cost-sharing for Low-income 
Individuals.--Section 1860D-14(a) of the Social Security Act (42 U.S.C. 
1395w-114(a)), as amended by section 11201, is amended--
            (1) in paragraph (1)(D), in each of clauses (ii) and (iii), 
        by striking ``In the case'' and inserting ``Subject to 
        paragraph (6), in the case'';
            (2) in paragraph (2)--
                    (A) in subparagraph (B), by striking ``A 
                reduction'' and inserting ``Subject to section 1860D-
                2(b)(8), a reduction'';
                    (B) in subparagraph (D), by striking ``The 
                substitution'' and inserting ``Subject to paragraph 
                (6), the substitution''; and
                    (C) in subparagraph (E), by striking ``subsection 
                (c)'' and inserting ``paragraph (6) of this subsection 
                and subsection (c)''; and
            (3) by adding at the end the following new paragraph:
            ``(6) No application of cost-sharing or deductible for 
        adult vaccines recommended by the advisory committee on 
        immunization practices.--For plan years beginning on or after 
        January 1, 2023, with respect to an adult vaccine recommended 
        by the Advisory Committee on Immunization Practices (as defined 
        in section 1860D-2(b)(8)(B))--
                    ``(A) the deductible under section 1860D-2(b)(1) 
                shall not apply; and
                    ``(B) there shall be no cost-sharing under this 
                section with respect to such vaccine.''.
    (c) Temporary Retrospective Subsidy.--
            (1) In general.--Section 1860D-15 of the Social Security 
        Act (42 U.S.C. 1395w-115) is amended by adding at the end the 
        following new subsection:
    ``(h) Temporary Retrospective Subsidy for Reduction in Cost-sharing 
and Deductible for Adult Vaccines Recommended by the Advisory Committee 
on Immunization Practices During 2023.--
            ``(1) In general.--In addition to amounts otherwise payable 
        under this section to a PDP sponsor of a prescription drug plan 
        or an MA organization offering an MA-PD plan, for plan year 
        2023, the Secretary shall provide the PDP sponsor or MA 
        organization offering the plan subsidies in an amount equal to 
        the aggregate reduction in cost-sharing and deductible by 
        reason of the application of section 1860D-2(b)(8) for 
        individuals under the plan during the year.
            ``(2) Timing.--The Secretary shall provide a subsidy under 
        paragraph (1), as applicable, not later than 18 months 
        following the end of the applicable plan year.''.
            (2) Treatment as incurred costs.--Section 1860D-
        2(b)(4)(C)(iii)(I) of the Social Security Act (42 U.S.C. 1395w-
        102(b)(4)(C)(iii)(I)), as amended by section 11201(a)(3)(C), is 
        amended--
                    (A) in item (cc), by striking ``or'' at the end; 
                and
                    (B) by adding at the end the following new item:
                                            ``(dd) under section 1860D-
                                        15(h); or''.
    (d) Rule of Construction.--Nothing in this section shall be 
construed as limiting coverage under part D of title XVIII of the 
Social Security Act for vaccines that are not recommended by the 
Advisory Committee on Immunization Practices.
    (e) Implementation for 2023 Through 2025.--The Secretary shall 
implement this section, including the amendments made by this section, 
for 2023, 2024, and 2025, by program instruction or other forms of 
program guidance.

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

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

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

    Section 1847A(b)(8) of the Social Security Act (42 U.S.C. 1395w-
3a(b)(8)) is amended--
            (1) by redesignating subparagraphs (A) and (B) as clauses 
        (i) and (ii), respectively, and moving the margin of each such 
        redesignated clause 2 ems to the right;
            (2) by striking ``product.--The amount'' and inserting the 
        following: ``product.--
                    ``(A) In general.--Subject to subparagraph (B), the 
                amount''; and
            (3) by adding at the end the following new subparagraph:
                    ``(B) Temporary payment increase.--
                            ``(i) In general.--In the case of a 
                        qualifying biosimilar biological product that 
                        is furnished during the applicable 5-year 
                        period for such product, the amount specified 
                        in this paragraph for such product with respect 
                        to such period is the sum determined under 
                        subparagraph (A), except that clause (ii) of 
                        such subparagraph shall be applied by 
                        substituting `8 percent' for `6 percent'.
                            ``(ii) Applicable 5-year period.--For 
                        purposes of clause (i), the applicable 5-year 
                        period for a qualifying biosimilar biological 
                        product is--
                                    ``(I) in the case of such a product 
                                for which payment was made under this 
                                paragraph as of September 30, 2022, the 
                                5-year period beginning on October 1, 
                                2022; and
                                    ``(II) in the case of such a 
                                product for which payment is first made 
                                under this paragraph during a calendar 
                                quarter during the period beginning 
                                October 1, 2022, and ending December 
                                31, 2027, the 5-year period beginning 
                                on the first day of such calendar 
                                quarter during which such payment is 
                                first made.
                            ``(iii) Qualifying biosimilar biological 
                        product defined.--For purposes of this 
                        subparagraph, the term `qualifying biosimilar 
                        biological product' means a biosimilar 
                        biological product described in paragraph 
                        (1)(C) with respect to which--
                                    ``(I) in the case of a product 
                                described in clause (ii)(I), the 
                                average sales price under paragraph 
                                (8)(A)(i) for a calendar quarter during 
                                the 5-year period described in such 
                                clause is not more than the average 
                                sales price under paragraph (4)(A) for 
                                such quarter for the reference 
                                biological product; and
                                    ``(II) in the case of a product 
                                described in clause (ii)(II), the 
                                average sales price under paragraph 
                                (8)(A)(i) for a calendar quarter during 
                                the 5-year period described in such 
                                clause is not more than the average 
                                sales price under paragraph (4)(A) for 
                                such quarter for the reference 
                                biological product.''.

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

    Section 1860D-14(a) of the Social Security Act (42 U.S.C. 1395w-
114(a)), as amended by sections 11201 and 11401, is amended--
            (1) in the subsection heading, by striking ``Individuals'' 
        and all that follows through ``Line'' and inserting ``Certain 
        Individuals'';
            (2) in paragraph (1)--
                    (A) by striking the paragraph heading and inserting 
                ``Individuals with certain low incomes''; and
                    (B) in the matter preceding subparagraph (A)--
                            (i) by inserting ``(or, with respect to a 
                        plan year beginning on or after January 1, 
                        2024, 150 percent)'' after ``135 percent''; and
                            (ii) by inserting ``(or, with respect to a 
                        plan year beginning on or after January 1, 
                        2024, paragraph (3)(E))'' after ``the resources 
                        requirement described in paragraph (3)(D)''; 
                        and
            (3) in paragraph (2)--
                    (A) by striking the paragraph heading and inserting 
                ``Other low-income individuals''; and
                    (B) in the matter preceding subparagraph (A), by 
                striking ``In the case of a subsidy'' and inserting 
                ``With respect to a plan year beginning before January 
                1, 2024, in the case of a subsidy''.

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

    (a) Medicaid.--
            (1) Requiring coverage of adult vaccinations.--
                    (A) In general.--Section 1902(a)(10)(A) of the 
                Social Security Act (42 U.S.C. 1396a(a)(10)(A)) is 
                amended in the matter preceding clause (i) by inserting 
                ``(13)(B),'' after ``(5),''.
                    (B) Medically needy.--Section 1902(a)(10)(C)(iv) of 
                such Act (42 U.S.C. 1396a(a)(10)(C)(iv)) is amended by 
                inserting ``, (13)(B),'' after ``(5)''.
            (2) No cost sharing for vaccinations.--
                    (A) General cost-sharing limitations.--Section 1916 
                of the Social Security Act (42 U.S.C. 1396o) is 
                amended--
                            (i) in subsection (a)(2)--
                                    (I) in subparagraph (G), by 
                                inserting a comma after ``State plan'';
                                    (II) in subparagraph (H), by 
                                striking ``; or'' and inserting a 
                                comma;
                                    (III) in subparagraph (I), by 
                                striking ``; and'' and inserting ``, 
                                or''; and
                                    (IV) by adding at the end the 
                                following new subparagraph:
                    ``(J) vaccines described in section 1905(a)(13)(B) 
                and the administration of such vaccines; and''; and
                            (ii) in subsection (b)(2)--
                                    (I) in subparagraph (G), by 
                                inserting a comma after ``State plan'';
                                    (II) in subparagraph (H), by 
                                striking ``; or'' and inserting a 
                                comma;
                                    (III) in subparagraph (I), by 
                                striking ``; and'' and inserting ``, 
                                or''; and
                                    (IV) by adding at the end the 
                                following new subparagraph:
                    ``(J) vaccines described in section 1905(a)(13)(B) 
                and the administration of such vaccines; and''.
                    (B) Application to alternative cost sharing.--
                Section 1916A(b)(3)(B) of the Social Security Act (42 
                U.S.C. 1396o-1(b)(3)(B)) is amended by adding at the 
                end the following new clause:
                            ``(xiv) Vaccines described in section 
                        1905(a)(13)(B) and the administration of such 
                        vaccines.''.
            (3) Increased fmap for adult vaccines and their 
        administration.--Section 1905(b) of the Social Security Act (42 
        U.S.C. 1396d(b)) is amended--
                    (A) by striking ``and (5)'' and inserting ``(5)'';
                    (B) by striking ``services and vaccines described 
                in subparagraphs (A) and (B) of subsection (a)(13), and 
                prohibits cost-sharing for such services and vaccines'' 
                and inserting ``services described in subsection 
                (a)(13)(A), and prohibits cost-sharing for such 
                services'';
                    (C) by striking ``medical assistance for such 
                services and vaccines'' and inserting ``medical 
                assistance for such services''; and
                    (D) by inserting ``, and (6) during the first 8 
                fiscal quarters beginning on or after the effective 
                date of this clause, in the case of a State which, as 
                of the date of enactment of the Act titled `An Act to 
                provide for reconciliation pursuant to title II of S. 
                Con. Res. 14', provides medical assistance for vaccines 
                described in subsection (a)(13)(B) and their 
                administration and prohibits cost-sharing for such 
                vaccines, the Federal medical assistance percentage, as 
                determined under this subsection and subsection (y), 
                shall be increased by 1 percentage point with respect 
                to medical assistance for such vaccines and their 
                administration'' before the first period.
    (b) CHIP.--
            (1) Requiring coverage of adult vaccinations.--Section 
        2103(c) of the Social Security Act (42 U.S.C. 1397cc(c)) is 
        amended by adding at the end the following paragraph:
            ``(12) Required coverage of approved, recommended adult 
        vaccines and their administration.--Regardless of the type of 
        coverage elected by a State under subsection (a), if the State 
        child health plan or a waiver of such plan provides child 
        health assistance or pregnancy-related assistance (as defined 
        in section 2112) to an individual who is 19 years of age or 
        older, such assistance shall include coverage of vaccines 
        described in section 1905(a)(13)(B) and their 
        administration.''.
            (2) No cost-sharing for vaccinations.--Section 2103(e)(2) 
        of such Act (42 U.S.C. 1397cc(e)(2)) is amended by inserting 
        ``vaccines described in subsection (c)(12) (and the 
        administration of such vaccines),'' after ``in vitro diagnostic 
        products described in subsection (c)(10) (and administration of 
        such products),''.
    (c) Effective Date.--The amendments made by this section take 
effect on the 1st day of the 1st fiscal quarter that begins on or after 
the date that is 1 year after the date of enactment of this Act and 
shall apply to expenditures made under a State plan or waiver of such 
plan under title XIX of the Social Security Act (42 U.S.C. 1396 through 
1396w-6) or under a State child health plan or waiver of such plan 
under title XXI of such Act (42 U.S.C. 1397aa through 1397mm) on or 
after such effective date.

SEC. 11406. APPROPRIATE COST-SHARING FOR COVERED INSULIN PRODUCTS UNDER 
              MEDICARE PART D.

    (a) In General.--Section 1860D-2 of the Social Security Act (42 
U.S.C. 1395w-102), as amended by sections 11201, 11202, and 11401, is 
amended--
            (1) in subsection (b)--
                    (A) in paragraph (1)(A), by striking ``paragraph 
                (8)'' and inserting ``paragraphs (8) and (9)'';
                    (B) in paragraph (2)--
                            (i) in subparagraph (A), by striking 
                        ``paragraph (8)'' and inserting ``paragraphs 
                        (8) and (9)'';
                            (ii) in subparagraph (C)(i), in the matter 
                        preceding subclause (I), by striking ``and 
                        (8)'' and inserting ``, (8), and (9)''; and
                            (iii) in subparagraph (D)(i), in the matter 
                        preceding subclause (I), by striking ``and 
                        (8)'' and inserting ``, (8), and (9)'';
                    (C) in paragraph (3)(A), in the matter preceding 
                clause (i), by striking ``and (8)'' and inserting 
                ``(8), and (9)'';
                    (D) in paragraph (4)(A)(i), by striking ``paragraph 
                (8)'' and inserting ``paragraphs (8) and (9)''; and
                    (E) by adding at the end the following new 
                paragraph:
            ``(9) Treatment of cost-sharing for covered insulin 
        products.--
                    ``(A) No application of deductible.--For plan year 
                2023 and subsequent plan years, the deductible under 
                paragraph (1) shall not apply with respect to any 
                covered insulin product.
                    ``(B) Application of cost-sharing.--
                            ``(i) Plan years 2023 and 2024.--For plan 
                        years 2023 and 2024, the coverage provides 
                        benefits for any covered insulin product, 
                        regardless of whether an individual has reached 
                        the initial coverage limit under paragraph (3) 
                        or the out-of-pocket threshold under paragraph 
                        (4), with cost-sharing for a month's supply 
                        that does not exceed the applicable copayment 
                        amount.
                            ``(ii) Plan year 2025 and subsequent plan 
                        years.--For a plan year beginning on or after 
                        January 1, 2025, the coverage provides benefits 
                        for any covered insulin product, prior to an 
                        individual reaching the out-of-pocket threshold 
                        under paragraph (4), with cost-sharing for a 
                        month's supply that does not exceed the 
                        applicable copayment amount.
                    ``(C) Covered insulin product.--In this paragraph, 
                the term `covered insulin product' means an insulin 
                product that is a covered part D drug covered under the 
                prescription drug plan or MA-PD plan that is approved 
                under section 505 of the Federal Food, Drug, and 
                Cosmetic Act or licensed under section 351 of the 
                Public Health Service Act and marketed pursuant to such 
                approval or licensure, including any covered insulin 
                product that has been deemed to be licensed under 
                section 351 of the Public Health Service Act pursuant 
                to section 7002(e)(4) of the Biologics Price 
                Competition and Innovation Act of 2009 and marketed 
                pursuant to such section.
                    ``(D) Applicable copayment amount.--In this 
                paragraph, the term `applicable copayment amount' 
                means, with respect to a covered insulin product under 
                a prescription drug plan or an MA-PD plan dispensed--
                            ``(i) during plan years 2023, 2024, and 
                        2025, $35; and
                            ``(ii) during plan year 2026 and each 
                        subsequent plan year, the lesser of--
                                    ``(I) $35;
                                    ``(II) an amount equal to 25 
                                percent of the maximum fair price 
                                established for the covered insulin 
                                product in accordance with part E of 
                                title XI; or
                                    ``(III) an amount equal to 25 
                                percent of the negotiated price of the 
                                covered insulin product under the 
                                prescription drug plan or MA-PD plan.
                    ``(E) Special rule for first 3 months of 2023.--
                With respect to a month's supply of a covered insulin 
                product dispensed during the period beginning on 
                January 1, 2023, and ending on March 31, 2023, a PDP 
                sponsor offering a prescription drug plan or an MA 
                organization offering an MA-PD plan shall reimburse an 
                enrollee within 30 days for any cost-sharing paid by 
                such enrollee that exceeds the cost-sharing applied by 
                the prescription drug plan or MA-PD plan under 
                subparagraph (B)(i) at the point-of-sale for such 
                month's supply.''; and
            (2) in subsection (c), by adding at the end the following 
        new paragraph:
            ``(6) Treatment of cost-sharing for covered insulin 
        products.--The coverage is provided in accordance with 
        subsection (b)(9).''.
    (b) Conforming Amendments to Cost-sharing for Low-income 
Individuals.--Section 1860D-14(a) of the Social Security Act (42 U.S.C. 
1395w-114(a)), as amended by sections 11201, 11401, and 11404, is 
amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (D)(iii), by adding at the end 
                the following new sentence: ``For plan year 2023 and 
                subsequent plan years, the copayment amount applicable 
                under the preceding sentence to a month's supply of a 
                covered insulin product (as defined in section 1860D-
                2(b)(9)(C)) dispensed to the individual may not exceed 
                the applicable copayment amount for the product under 
                the prescription drug plan or MA-PD plan in which the 
                individual is enrolled.''; and
                    (B) in subparagraph (E), by inserting the following 
                before the period at the end: ``or under section 1860D-
                2(b)(9) in the case of a covered insulin product (as 
                defined in subparagraph (C) of such section)''; and
            (2) in paragraph (2)--
                    (A) in subparagraph (B), by striking ``section 
                1860D-2(b)(8)'' and inserting ``paragraphs (8) and (9) 
                of section 1860D-2(b)'';
                    (B) in subparagraph (D), by adding at the end the 
                following new sentence: ``For plan year 2023, the 
                amount of the coinsurance applicable under the 
                preceding sentence to a month's supply of a covered 
                insulin product (as defined in section 1860D-
                2(b)(9)(C)) dispensed to the individual may not exceed 
                the applicable copayment amount for the product under 
                the prescription drug plan or MA-PD plan in which the 
                individual is enrolled.''; and
                    (C) in subparagraph (E), by adding at the end the 
                following new sentence: ``For plan year 2023, the 
                amount of the copayment or coinsurance applicable under 
                the preceding sentence to a month's supply of a covered 
                insulin product (as defined in section 1860D-
                2(b)(9)(C)) dispensed to the individual may not exceed 
                the applicable copayment amount for the product under 
                the prescription drug plan or MA-PD plan in which the 
                individual is enrolled.''.
    (c) Temporary Retrospective Subsidy.--Section 1860D-15(h) of the 
Social Security Act (42 U.S.C. 1395w-115(h)), as added by section 
11401(c), is amended--
            (1) in the subsection heading, by inserting ``and Insulin'' 
        after ``Practices''; and
            (2) in paragraph (1), by striking ``section 1860D-2(b)(8)'' 
        and inserting ``paragraph (8) or (9) of section 1860D-2(b)''.
    (d) Implementation for 2023 Through 2025.--The Secretary shall 
implement this section for plan years 2023, 2024, and 2025 by program 
instruction or other forms of program guidance.
    (e) Funding.--In addition to amounts otherwise available, there is 
appropriated to the Centers for Medicare & Medicaid Services, out of 
any money in the Treasury not otherwise appropriated, $1,500,000 for 
fiscal year 2022, to remain available until expended, to carry out the 
provisions of, including the amendments made by, this section.

SEC. 11407. LIMITATION ON MONTHLY COINSURANCE AND ADJUSTMENTS TO 
              SUPPLIER PAYMENT UNDER MEDICARE PART B FOR INSULIN 
              FURNISHED THROUGH DURABLE MEDICAL EQUIPMENT.

    (a) Waiver of Deductible.--The first sentence of section 1833(b) of 
the Social Security Act (42 U.S.C. 1395l(b)) is amended--
            (1) by striking ``and (12)'' and inserting ``(12)''; and
            (2) by inserting before the period the following: ``, and 
        (13) such deductible shall not apply with respect to insulin 
        furnished on or after July 1, 2023, through an item of durable 
        medical equipment covered under section 1861(n).''.
    (b) Coinsurance.--
            (1) In general.--Section 1833(a)(1)(S) of the Social 
        Security Act (42 U.S.C. 1395l(a)(1)(S)) is amended--
                    (A) by inserting ``(i) except as provided in clause 
                (ii),'' after ``(S)''; and
                    (B) by inserting after ``or 1847B),'' the 
                following: ``and (ii) with respect to insulin furnished 
                on or after July 1, 2023, through an item of durable 
                medical equipment covered under section 1861(n), the 
                amounts paid shall be, subject to the fourth sentence 
                of this subsection, 80 percent of the payment amount 
                established under section 1847A (or section 1847B, if 
                applicable) for such insulin,''.
            (2) Adjustment to supplier payments; limitation on monthly 
        coinsurance.--Section 1833(a) of the Social Security Act (42 
        U.S.C. 1395l(a)) is amended, in the flush matter at the end, by 
        adding at the end the following new sentence: ``The Secretary 
        shall make such adjustments as may be necessary to the amounts 
        paid as specified under paragraph (1)(S)(ii) for insulin 
        furnished on or after July 1, 2023, through an item of durable 
        medical equipment covered under section 1861(n), such that the 
        amount of coinsurance payable by an individual enrolled under 
        this part for a month's supply of such insulin does not exceed 
        $35.''.
    (c) Implementation.--The Secretary of Health and Human Services 
shall implement this section for 2023 by program instruction or other 
forms of program guidance.

SEC. 11408. SAFE HARBOR FOR ABSENCE OF DEDUCTIBLE FOR INSULIN.

    (a) In General.--Paragraph (2) of section 223(c) of the Internal 
Revenue Code of 1986 is amended by adding at the end the following new 
subparagraph:
                    ``(G) Safe harbor for absence of deductible for 
                certain insulin products.--
                            ``(i) In general.--A plan shall not fail to 
                        be treated as a high deductible health plan by 
                        reason of failing to have a deductible for 
                        selected insulin products.
                            ``(ii) Selected insulin products.--For 
                        purposes of this subparagraph--
                                    ``(I) In general.--The term 
                                `selected insulin products' means any 
                                dosage form (such as vial, pump, or 
                                inhaler dosage forms) of any different 
                                type (such as rapid-acting, short-
                                acting, intermediate-acting, long-
                                acting, ultra long-acting, and 
                                premixed) of insulin.
                                    ``(II) Insulin.--The term `insulin' 
                                means insulin that is licensed under 
                                subsection (a) or (k) of section 351 of 
                                the Public Health Service Act (42 
                                U.S.C. 262) and continues to be 
                                marketed under such section, including 
                                any insulin product that has been 
                                deemed to be licensed under section 
                                351(a) of such Act pursuant to section 
                                7002(e)(4) of the Biologics Price 
                                Competition and Innovation Act of 2009 
                                (Public Law 111-148) and continues to 
                                be marketed pursuant to such 
                                licensure.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to plan years beginning after December 31, 2022.

               Subtitle C--Affordable Care Act Subsidies

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

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

                      Subtitle D--Energy Security

SEC. 13001. AMENDMENT OF 1986 CODE.

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

        PART 1--CLEAN ELECTRICITY AND REDUCING CARBON EMISSIONS

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

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

                                                    ``(AA) the amount 
                                                of wages paid to such 
                                                laborer or mechanic 
                                                during such period, and

                                                    ``(BB) the amount 
                                                of wages required to be 
                                                paid to such laborer or 
                                                mechanic pursuant to 
                                                such subparagraph 
                                                during such period, 
                                                plus

                                            ``(bb) interest on the 
                                        amount determined under item 
                                        (aa) at the underpayment rate 
                                        established under section 6621 
                                        (determined by substituting `6 
                                        percentage points' for `3 
                                        percentage points' in 
                                        subsection (a)(2) of such 
                                        section) for the period 
                                        described in such item, and
                                    ``(II) makes payment to the 
                                Secretary of a penalty in an amount 
                                equal to the product of--
                                            ``(aa) $5,000, multiplied 
                                        by
                                            ``(bb) the total number of 
                                        laborers and mechanics who were 
                                        paid wages at a rate below the 
                                        rate described in subparagraph 
                                        (A) for any period during such 
                                        year.
                            ``(ii) Deficiency procedures not to 
                        apply.--Subchapter B of chapter 63 (relating to 
                        deficiency procedures for income, estate, gift, 
                        and certain excise taxes) shall not apply with 
                        respect to the assessment or collection of any 
                        penalty imposed by this paragraph.
                            ``(iii) Intentional disregard.--If the 
                        Secretary determines that any failure described 
                        in clause (i) is due to intentional disregard 
                        of the requirements under subparagraph (A), 
                        such clause shall be applied--
                                    ``(I) in subclause (I), by 
                                substituting `three times the sum' for 
                                `the sum', and
                                    ``(II) in subclause (II), by 
                                substituting `$10,000' for `5,000' in 
                                item (aa) thereof.
                            ``(iv) Limitation on period for payment.--
                        Pursuant to rules issued by the Secretary, in 
                        the case of a final determination by the 
                        Secretary with respect to any failure by the 
                        taxpayer to satisfy the requirement under 
                        subparagraph (A), subparagraph (B)(i) shall not 
                        apply unless the payments described in 
                        subclauses (I) and (II) of such subparagraph 
                        are made by the taxpayer on or before the date 
                        which is 180 days after the date of such 
                        determination.
            ``(8) Apprenticeship requirements.--The requirements 
        described in this paragraph with respect to the construction of 
        any qualified facility are as follows:
                    ``(A) Labor hours.--
                            ``(i) Percentage of total labor hours.--
                        Taxpayers shall ensure that, with respect to 
                        the construction of any qualified facility, not 
                        less than the applicable percentage of the 
                        total labor hours of the construction, 
                        alteration, or repair work (including such work 
                        performed by any contractor or subcontractor) 
                        with respect to such facility shall, subject to 
                        subparagraph (B), be performed by qualified 
                        apprentices.
                            ``(ii) Applicable percentage.--For purposes 
                        of clause (i), the applicable percentage shall 
                        be--
                                    ``(I) in the case of a qualified 
                                facility the construction of which 
                                begins before January 1, 2023, 10 
                                percent,
                                    ``(II) in the case of a qualified 
                                facility the construction of which 
                                begins after December 31, 2022, and 
                                before January 1, 2024, 12.5 percent, 
                                and
                                    ``(III) in the case of a qualified 
                                facility the construction of which 
                                begins after December 31, 2023, 15 
                                percent.
                    ``(B) Apprentice to journeyworker ratio.--The 
                requirement under subparagraph (A)(i) shall be subject 
                to any applicable requirements for apprentice-to-
                journeyworker ratios of the Department of Labor or the 
                applicable State apprenticeship agency.
                    ``(C) Participation.--Each taxpayer, contractor, or 
                subcontractor who employs 4 or more individuals to 
                perform construction, alteration, or repair work with 
                respect to the construction of a qualified facility 
                shall employ 1 or more qualified apprentices to perform 
                such work.
                    ``(D) Exception.--
                            ``(i) In general.--A taxpayer shall not be 
                        treated as failing to satisfy the requirements 
                        of this paragraph if such taxpayer--
                                    ``(I) satisfies the requirements 
                                described in clause (ii), or
                                    ``(II) subject to clause (iii), in 
                                the case of any failure by the taxpayer 
                                to satisfy the requirement under 
                                subparagraphs (A) and (C) with respect 
                                to the construction, alteration, or 
                                repair work on any qualified facility 
                                to which subclause (I) does not apply, 
                                makes payment to the Secretary of a 
                                penalty in an amount equal to the 
                                product of--
                                            ``(aa) $50, multiplied by
                                            ``(bb) the total labor 
                                        hours for which the requirement 
                                        described in such subparagraph 
                                        was not satisfied with respect 
                                        to the construction, 
                                        alteration, or repair work on 
                                        such qualified facility.
                            ``(ii) Good faith effort.--For purposes of 
                        clause (i), a taxpayer shall be deemed to have 
                        satisfied the requirements under this paragraph 
                        with respect to a qualified facility if such 
                        taxpayer has requested qualified apprentices 
                        from a registered apprenticeship program, as 
                        defined in section 3131(e)(3)(B), and--
                                    ``(I) such request has been denied, 
                                provided that such denial is not the 
                                result of a refusal by the taxpayer or 
                                any contractors or subcontractors 
                                engaged in the performance of 
                                construction, alteration, or repair 
                                work with respect to such qualified 
                                facility to comply with the established 
                                standards and requirements of the 
                                registered apprenticeship program, or
                                    ``(II) the registered 
                                apprenticeship program fails to respond 
                                to such request within 5 business days 
                                after the date on which such registered 
                                apprenticeship program received such 
                                request.
                            ``(iii) Intentional disregard.--If the 
                        Secretary determines that any failure described 
                        in subclause (i)(II) is due to intentional 
                        disregard of the requirements under 
                        subparagraphs (A) and (C), subclause (i)(II) 
                        shall be applied by substituting `$500' for 
                        `$50' in item (aa) thereof.
                    ``(E) Definitions.--For purposes of this 
                paragraph--
                            ``(i) Labor hours.--The term `labor 
                        hours'--
                                    ``(I) means the total number of 
                                hours devoted to the performance of 
                                construction, alteration, or repair 
                                work by any individual employed by the 
                                taxpayer or by any contractor or 
                                subcontractor, and
                                    ``(II) excludes any hours worked 
                                by--
                                            ``(aa) foremen,
                                            ``(bb) superintendents,
                                            ``(cc) owners, or
                                            ``(dd) persons employed in 
                                        a bona fide executive, 
                                        administrative, or professional 
                                        capacity (within the meaning of 
                                        those terms in part 541 of 
                                        title 29, Code of Federal 
                                        Regulations).
                            ``(ii) Qualified apprentice.--The term 
                        `qualified apprentice' means an individual who 
                        is employed by the taxpayer or by any 
                        contractor or subcontractor and who is 
                        participating in a registered apprenticeship 
                        program, as defined in section 3131(e)(3)(B).
            ``(9) Regulations and guidance.--The Secretary shall issue 
        such regulations or other guidance as the Secretary determines 
        necessary to carry out the purposes of this subsection, 
        including regulations or other guidance which provides for 
        requirements for recordkeeping or information reporting for 
        purposes of administering the requirements of this 
        subsection.''.
    (g) Domestic Content, Phaseout, and Energy Communities.--Section 
45(b), as amended by subsection (f), is amended--
            (1) by redesignating paragraph (9) as paragraph (12), and
            (2) by inserting after paragraph (8) the following:
            ``(9) Domestic content bonus credit amount.--
                    ``(A) In general.--In the case of any qualified 
                facility which satisfies the requirement under 
                subparagraph (B)(i), the amount of the credit 
                determined under subsection (a) (determined after the 
                application of paragraphs (1) through (8)) shall be 
                increased by an amount equal to 10 percent of the 
                amount so determined.
                    ``(B) Requirement.--
                            ``(i) In general.--The requirement 
                        described in this clause is satisfied with 
                        respect to any qualified facility if the 
                        taxpayer certifies to the Secretary (at such 
                        time, and in such form and manner, as the 
                        Secretary may prescribe) that any steel, iron, 
                        or manufactured product which is a component of 
                        such facility (upon completion of construction) 
                        was produced in the United States (as 
                        determined under section 661 of title 49, Code 
                        of Federal Regulations).
                            ``(ii) Steel and iron.--In the case of 
                        steel or iron, clause (i) shall be applied in a 
                        manner consistent with section 661.5 of title 
                        49, Code of Federal Regulations.
                            ``(iii) Manufactured product.--For purposes 
                        of clause (i), the manufactured products which 
                        are components of a qualified facility upon 
                        completion of construction shall be deemed to 
                        have been produced in the United States if not 
                        less than the adjusted percentage (as 
                        determined under subparagraph (C)) of the total 
                        costs of all such manufactured products of such 
                        facility are attributable to manufactured 
                        products (including components) which are 
                        mined, produced, or manufactured in the United 
                        States.
                    ``(C) Adjusted percentage.--
                            ``(i) In general.--Subject to subclause 
                        (ii), for purposes of subparagraph (B)(iii), 
                        the adjusted percentage shall be 40 percent.
                            ``(ii) Offshore wind facility.--For 
                        purposes of subparagraph (B)(iii), in the case 
                        of a qualified facility which is an offshore 
                        wind facility, the adjusted percentage shall be 
                        20 percent.
            ``(10) Phaseout for elective payment.--
                    ``(A) In general.--In the case of a taxpayer making 
                an election under section 6417 with respect to a credit 
                under this section, the amount of such credit shall be 
                replaced with--
                            ``(i) the value of such credit (determined 
                        without regard to this paragraph), multiplied 
                        by
                            ``(ii) the applicable percentage.
                    ``(B) 100 percent applicable percentage for certain 
                qualified facilities.--In the case of any qualified 
                facility--
                            ``(i) which satisfies the requirements 
                        under paragraph (9)(B), or
                            ``(ii) with a maximum net output of less 
                        than 1 megawatt (as measured in alternating 
                        current),
                the applicable percentage shall be 100 percent.
                    ``(C) Phased domestic content requirement.--Subject 
                to subparagraph (D), in the case of any qualified 
                facility which is not described in subparagraph (B), 
                the applicable percentage shall be--
                            ``(i) if construction of such facility 
                        began before January 1, 2024, 100 percent, and
                            ``(ii) if construction of such facility 
                        began in calendar year 2024, 90 percent.
                    ``(D) Exception.--
                            ``(i) In general.--For purposes of this 
                        paragraph, the Secretary shall provide 
                        exceptions to the requirements under this 
                        paragraph 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.
            ``(11) Special rule for qualified facility located in 
        energy community.--
                    ``(A) In general.--In the case of a qualified 
                facility which is located in an energy community, the 
                credit determined under subsection (a) (determined 
                after the application of paragraphs (1) through (10), 
                without the application of paragraph (9)) shall be 
                increased by an amount equal to 10 percent of the 
                amount so determined.
                    ``(B) Energy community.--For purposes of this 
                paragraph, the term `energy community' means--
                            ``(i) a brownfield site (as defined in 
                        subparagraphs (A), (B), and (D)(ii)(III) of 
                        section 101(39) of the Comprehensive 
                        Environmental Response, Compensation, and 
                        Liability Act of 1980 (42 U.S.C. 9601(39))),
                            ``(ii) a metropolitan statistical area or 
                        non-metropolitan statistical area which--
                                    ``(I) has (or, at any time during 
                                the period beginning after December 31, 
                                2009, had) 0.17 percent or greater 
                                direct employment or 25 percent or 
                                greater local tax revenues related to 
                                the extraction, processing, transport, 
                                or storage of coal, oil, or natural gas 
                                (as determined by the Secretary), and
                                    ``(II) has an unemployment rate at 
                                or above the national average 
                                unemployment rate for the previous year 
                                (as determined by the Secretary), or
                            ``(iii) a census tract--
                                    ``(I) in which--
                                            ``(aa) after December 31, 
                                        1999, a coal mine has closed, 
                                        or
                                            ``(bb) after December 31, 
                                        2009, a coal-fired electric 
                                        generating unit has been 
                                        retired, or
                                    ``(II) which is directly adjoining 
                                to any census tract described in 
                                subclause (I).''.
    (h) Credit Reduced for Tax-exempt Bonds.--Section 45(b)(3) is 
amended to read as follows:
            ``(3) Credit reduced for tax-exempt bonds.--The amount of 
        the credit determined under subsection (a) with respect to any 
        facility for any taxable year (determined after the application 
        of paragraphs (1) and (2)) shall be reduced by the amount which 
        is the product of the amount so determined for such year and 
        the lesser of 15 percent or a fraction--
                    ``(A) the numerator of which is the sum, for the 
                taxable year and all prior taxable years, of proceeds 
                of an issue of any obligations the interest on which is 
                exempt from tax under section 103 and which is used to 
                provide financing for the qualified facility, and
                    ``(B) the denominator of which is the aggregate 
                amount of additions to the capital account for the 
                qualified facility for the taxable year and all prior 
                taxable years.
        The amounts under the preceding sentence for any taxable year 
        shall be determined as of the close of the taxable year.''.
    (i) Rounding Adjustment.--
            (1) In general.--Section 45(b)(2) is amended by striking 
        the second sentence and inserting the following: ``If the 0.3 
        cent amount as increased under the preceding sentence is not a 
        multiple of 0.05 cent, such amount shall be rounded to the 
        nearest multiple of 0.05 cent. In any other case, if an amount 
        as increased under this paragraph is not a multiple of 0.1 
        cent, such amount shall be rounded to the nearest multiple of 
        0.1 cent.''.
            (2) Conforming amendment.--Section 45(b)(4)(A) is amended 
        by striking ``last sentence'' and inserting ``last two 
        sentences''.
    (j) Hydropower.--
            (1) Elimination of credit rate reduction for qualified 
        hydroelectric production and marine and hydrokinetic renewable 
        energy.--Section 45(b)(4)(A), as amended by the preceding 
        provisions of this section, is amended by striking ``(7), (9), 
        or (11)'' and inserting ``or (7)''.
            (2) Marine and hydrokinetic renewable energy.--Section 45 
        is amended--
                    (A) in subsection (c)(10)(A)--
                            (i) in clause (iii), by striking ``or'',
                            (ii) in clause (iv), by striking the period 
                        at the end and inserting ``, or'' and
                            (iii) by adding at the end the following:
                            ``(v) pressurized water used in a pipeline 
                        (or similar man-made water conveyance) which is 
                        operated--
                                    ``(I) for the distribution of water 
                                for agricultural, municipal, or 
                                industrial consumption, and
                                    ``(II) not primarily for the 
                                generation of electricity.'', and
                    (B) in subsection (d)(11)(A), by striking ``150'' 
                and inserting ``25''.
    (k) Effective Dates.--
            (1) In general.--Except as provided in paragraphs (2) and 
        (3), the amendments made by this section shall apply to 
        facilities placed in service after December 31, 2021.
            (2) Credit reduced for tax-exempt bonds.--The amendment 
        made by subsection (h) shall apply to facilities the 
        construction of which begins after the date of enactment of 
        this Act.
            (3) Domestic content, phaseout, energy communities, and 
        hydropower.--The amendments made by subsections (g) and (j) 
        shall apply to facilities placed in service after December 31, 
        2022.

SEC. 13102. EXTENSION AND MODIFICATION OF ENERGY CREDIT.

    (a) Extension of Credit.--The following provisions of section 48 
are each amended by striking ``January 1, 2024'' each place it appears 
and inserting ``January 1, 2025'':
            (1) Subsection (a)(2)(A)(i)(II).
            (2) Subsection (a)(3)(A)(ii).
            (3) Subsection (c)(1)(D).
            (4) Subsection (c)(2)(D).
            (5) Subsection (c)(3)(A)(iv).
            (6) Subsection (c)(4)(C).
            (7) Subsection (c)(5)(D).
    (b) Further Extension for Certain Energy Property.--Section 
48(a)(3)(A)(vii) is amended by striking ``January 1, 2024'' and 
inserting ``January 1, 2035''.
    (c) Phaseout of Credit.--Section 48(a) is amended by striking 
paragraphs (6) and (7) and inserting the following new paragraph:
            ``(6) Phaseout for certain energy property.--In the case of 
        any qualified fuel cell property, qualified small wind 
        property, or energy property described in clause (i) or clause 
        (ii) of paragraph (3)(A) the construction of which begins after 
        December 31, 2019, and which is placed in service before 
        January 1, 2022, the energy percentage determined under 
        paragraph (2) shall be equal to 26 percent.''.
    (d) Base Energy Percentage Amount; Phaseout of Certain Energy 
Property.--
            (1) Base energy percentage amount.--Section 48(a) is 
        amended--
                    (A) in paragraph (2)(A)--
                            (i) in clause (i), by striking ``30 
                        percent'' and inserting ``6 percent'', and
                            (ii) in clause (ii), by striking ``10 
                        percent'' and inserting ``2 percent'', and
                    (B) in paragraph (5)(A)(ii), by striking ``30 
                percent'' and inserting ``6 percent''.
            (2) Phaseout of certain energy property.--Section 48(a), as 
        amended by the preceding provisions of this Act, is amended by 
        adding at the end the following new paragraph:
            ``(7) Phaseout for certain energy property.--In the case of 
        any energy property described in clause (vii) of paragraph 
        (3)(A), the energy percentage determined under paragraph (2) 
        shall be equal to--
                    ``(A) in the case of any property the construction 
                of which begins before January 1, 2033, and which is 
                placed in service after December 31, 2021, 6 percent,
                    ``(B) in the case of any property the construction 
                of which begins after December 31, 2032, and before 
                January 1, 2034, 5.2 percent, and
                    ``(C) in the case of any property the construction 
                of which begins after December 31, 2033, and before 
                January 1, 2035, 4.4 percent.''.
    (e) 6 Percent Credit for Geothermal.--Section 48(a)(2)(A)(i)(II) is 
amended by striking ``paragraph (3)(A)(i)'' and inserting ``clause (i) 
or (iii) of paragraph (3)(A)''.
    (f) Energy Storage Technologies; Qualified Biogas Property; 
Microgrid Controllers; Extension of Other Property.--
            (1) In general.--Section 48(a)(3)(A) is amended by striking 
        ``or'' at the end of clause (vii), and by adding at the end the 
        following new clauses:
                            ``(ix) energy storage technology,
                            ``(x) qualified biogas property, or
                            ``(xi) microgrid controllers,''.
            (2) Application of 6 percent credit.--Section 
        48(a)(2)(A)(i) is amended by striking ``and'' at the end of 
        subclauses (IV) and (V) and adding at the end the following new 
        subclauses:
                                    ``(VI) energy storage technology,
                                    ``(VII) qualified biogas property,
                                    ``(VIII) microgrid controllers, and
                                    ``(IX) energy property described in 
                                clauses (v) and (vii) of paragraph 
                                (3)(A), and''.
            (3) Definitions.--Section 48(c) is amended by adding at the 
        end the following new paragraphs:
            ``(6) Energy storage technology.--
                    ``(A) In general.--The term `energy storage 
                technology' means--
                            ``(i) property (other than property 
                        primarily used in the transportation of goods 
                        or individuals and not for the production of 
                        electricity) which receives, stores, and 
                        delivers energy for conversion to electricity 
                        (or, in the case of hydrogen, which stores 
                        energy), and has a nameplate capacity of not 
                        less than 5 kilowatt hours, and
                            ``(ii) thermal energy storage property.
                    ``(B) Modifications of certain property.--In the 
                case of any property which either--
                            ``(i) was placed in service before the date 
                        of enactment of this section and would be 
                        described in subparagraph (A)(i), except that 
                        such property has a capacity of less than 5 
                        kilowatt hours and is modified in a manner that 
                        such property (after such modification) has a 
                        nameplate capacity of not less than 5 kilowatt 
                        hours, or
                            ``(ii) is described in subparagraph (A)(i) 
                        and is modified in a manner that such property 
                        (after such modification) has an increase in 
                        nameplate capacity of not less than 5 kilowatt 
                        hours,
                such property shall be treated as described in 
                subparagraph (A)(i) except that the basis of any 
                existing property prior to such modification shall not 
                be taken into account for purposes of this section. In 
                the case of any property to which this subparagraph 
                applies, subparagraph (D) shall be applied by 
                substituting `modification' for `construction'.
                    ``(C) Thermal energy storage property.--
                            ``(i) In general.--Subject to clause (ii), 
                        for purposes of this paragraph, the term 
                        `thermal energy storage property' means 
                        property comprising a system which--
                                    ``(I) is directly connected to a 
                                heating, ventilation, or air 
                                conditioning system,
                                    ``(II) removes heat from, or adds 
                                heat to, a storage medium for 
                                subsequent use, and
                                    ``(III) provides energy for the 
                                heating or cooling of the interior of a 
                                residential or commercial building.
                            ``(ii) Exclusion.--The term `thermal energy 
                        storage property' shall not include--
                                    ``(I) a swimming pool,
                                    ``(II) combined heat and power 
                                system property, or
                                    ``(III) a building or its 
                                structural components.
                    ``(D) Termination.--The term `energy storage 
                technology' shall not include any property the 
                construction of which begins after December 31, 2024.
            ``(7) Qualified biogas property.--
                    ``(A) In general.--The term `qualified biogas 
                property' means property comprising a system which--
                            ``(i) converts biomass (as defined in 
                        section 45K(c)(3), as in effect on the date of 
                        enactment of this paragraph) into a gas which--
                                    ``(I) consists of not less than 52 
                                percent methane by volume, or
                                    ``(II) is concentrated by such 
                                system into a gas which consists of not 
                                less than 52 percent methane, and
                            ``(ii) captures such gas for sale or 
                        productive use, and not for disposal via 
                        combustion.
                    ``(B) Inclusion of cleaning and conditioning 
                property.--The term `qualified biogas property' 
                includes any property which is part of such system 
                which cleans or conditions such gas.
                    ``(C) Termination.--The term `qualified biogas 
                property' shall not include any property the 
                construction of which begins after December 31, 2024.
            ``(8) Microgrid controller.--
                    ``(A) In general.--The term `microgrid controller' 
                means equipment which is--
                            ``(i) part of a qualified microgrid, and
                            ``(ii) designed and used to monitor and 
                        control the energy resources and loads on such 
                        microgrid.
                    ``(B) Qualified microgrid.--The term `qualified 
                microgrid' means an electrical system which--
                            ``(i) includes equipment which is capable 
                        of generating not less than 4 kilowatts and not 
                        greater than 20 megawatts of electricity,
                            ``(ii) is capable of operating--
                                    ``(I) in connection with the 
                                electrical grid and as a single 
                                controllable entity with respect to 
                                such grid, and
                                    ``(II) independently (and 
                                disconnected) from such grid, and
                            ``(iii) is not part of a bulk-power system 
                        (as defined in section 215 of the Federal Power 
                        Act (16 U.S.C. 824o)).
                    ``(C) Termination.--The term `microgrid controller' 
                shall not include any property the construction of 
                which begins after December 31, 2024.''.
            (4) Denial of double benefit for qualified biogas 
        property.--Section 45(e) is amended by adding at the end the 
        following new paragraph:
            ``(12) Coordination with energy credit for qualified biogas 
        property.--The term `qualified facility' shall not include any 
        facility which produces electricity from gas produced by 
        qualified biogas property (as defined in section 48(c)(7)) if a 
        credit is allowed under section 48 with respect to such 
        property for the taxable year or any prior taxable year.''.
            (5) Public utility property.--Paragraph (2) of section 
        50(d) is amended--
                    (A) by adding after the first sentence the 
                following new sentence: ``At the election of a 
                taxpayer, this paragraph shall not apply to any energy 
                storage technology (as defined in section 48(c)(6)), 
                provided--'', and
                    (B) by adding the following new subparagraphs:
                    ``(A) no election under this paragraph shall be 
                permitted if the making of such election is prohibited 
                by a State or political subdivision thereof, by any 
                agency or instrumentality of the United States, or by a 
                public service or public utility commission or other 
                similar body of any State or political subdivision that 
                regulates public utilities as described in section 
                7701(a)(33)(A),
                    ``(B) an election under this paragraph shall be 
                made separately with respect to each energy storage 
                technology by the due date (including extensions) of 
                the Federal tax return for the taxable year in which 
                the energy storage technology is placed in service by 
                the taxpayer, and once made, may be revoked only with 
                the consent of the Secretary, and
                    ``(C) an election shall not apply with respect to 
                any energy storage technology if such energy storage 
                technology has a maximum capacity equal to or less than 
                500 kilowatt hours.''.
    (g) Fuel Cells Using Electromechanical Processes.--
            (1) In general.--Section 48(c)(1) is amended--
                    (A) in subparagraph (A)(i)--
                            (i) by inserting ``or electromechanical'' 
                        after ``electrochemical'', and
                            (ii) by inserting ``(1 kilowatt in the case 
                        of a fuel cell power plant with a linear 
                        generator assembly)'' after ``0.5 kilowatt'', 
                        and
                    (B) in subparagraph (C)--
                            (i) by inserting ``, or linear generator 
                        assembly,'' after ``a fuel cell stack 
                        assembly'', and
                            (ii) by inserting ``or electromechanical'' 
                        after ``electrochemical''.
            (2) Linear generator assembly limitation.--Section 48(c)(1) 
        is amended by redesignating subparagraph (D) as subparagraph 
        (E) and by inserting after subparagraph (C) the following new 
        subparagraph:
                    ``(D) Linear generator assembly.--The term `linear 
                generator assembly' does not include any assembly which 
                contains rotating parts.''.
    (h) Dynamic Glass.--Section 48(a)(3)(A)(ii) is amended by inserting 
``, or electrochromic glass which uses electricity to change its light 
transmittance properties in order to heat or cool a structure,'' after 
``sunlight''.
    (i) Coordination With Low Income Housing Tax Credit.--Paragraph (3) 
of section 50(c) is amended--
            (1) by striking ``and'' at the end of subparagraph (A),
            (2) by striking the period at the end of subparagraph (B) 
        and inserting ``, and'', and
            (3) by adding at the end the following new subparagraph:
                    ``(C) paragraph (1) shall not apply for purposes of 
                determining eligible basis under section 42.''.
    (j) Interconnection Property.--Section 48(a), as amended by the 
preceding provisions of this Act, is amended by adding at the end the 
following new paragraph:
            ``(8) Interconnection property.--
                    ``(A) In general.--For purposes of determining the 
                credit under subsection (a), energy property shall 
                include amounts paid or incurred by the taxpayer for 
                qualified interconnection property in connection with 
                the installation of energy property (as defined in 
                paragraph (3)) which has a maximum net output of not 
                greater than 5 megawatts (as measured in alternating 
                current), to provide for the transmission or 
                distribution of the electricity produced or stored by 
                such property, and which are properly chargeable to the 
                capital account of the taxpayer.
                    ``(B) Qualified interconnection property.--The term 
                `qualified interconnection property' means, with 
                respect to an energy project which is not a microgrid 
                controller, any tangible property--
                            ``(i) which is part of an addition, 
                        modification, or upgrade to a transmission or 
                        distribution system which is required at or 
                        beyond the point at which the energy project 
                        interconnects to such transmission or 
                        distribution system in order to accommodate 
                        such interconnection,
                            ``(ii) either--
                                    ``(I) which is constructed, 
                                reconstructed, or erected by the 
                                taxpayer, or
                                    ``(II) for which the cost with 
                                respect to the construction, 
                                reconstruction, or erection of such 
                                property is paid or incurred by such 
                                taxpayer, and
                            ``(iii) the original use of which, pursuant 
                        to an interconnection agreement, commences with 
                        a utility.
                    ``(C) Interconnection agreement.--The term 
                `interconnection agreement' means an agreement with a 
                utility for the purposes of interconnecting the energy 
                property owned by such taxpayer to the transmission or 
                distribution system of such utility.
                    ``(D) Utility.--For purposes of this paragraph, the 
                term `utility' means the owner or operator of an 
                electrical transmission or distribution system which is 
                subject to the regulatory authority of a State or 
                political subdivision thereof, any agency or 
                instrumentality of the United States, a public service 
                or public utility commission or other similar body of 
                any State or political subdivision thereof, or the 
                governing or ratemaking body of an electric 
                cooperative.
                    ``(E) Special rule for interconnection property.--
                In the case of expenses paid or incurred for 
                interconnection property, amounts otherwise chargeable 
                to capital account with respect to such expenses shall 
                be reduced under rules similar to the rules of section 
                50(c).''.
    (k) Energy Projects, Wage Requirements, and Apprenticeship 
Requirements.--Section 48(a), as amended by the preceding provisions of 
this Act, is amended by adding at the end the following new paragraphs:
            ``(9) Increased credit amount for energy projects.--
                    ``(A) In general.--
                            ``(i) Rule.--In the case of any energy 
                        project which satisfies the requirements of 
                        subparagraph (B), the amount of the credit 
                        determined under this subsection (determined 
                        after the application of paragraphs (1) through 
                        (8) and without regard to this clause) shall be 
                        equal to such amount multiplied by 5.
                            ``(ii) Energy project defined.--For 
                        purposes of this subsection, the term `energy 
                        project' means a project consisting of one or 
                        more energy properties that are part of a 
                        single project.
                    ``(B) Project requirements.--A project meets the 
                requirements of this subparagraph if it is one of the 
                following:
                            ``(i) A project with a maximum net output 
                        of less than 1 megawatt of electrical (as 
                        measured in alternating current) or thermal 
                        energy.
                            ``(ii) A project the construction of which 
                        begins before the date that is 60 days after 
                        the Secretary publishes guidance with respect 
                        to the requirements of paragraphs (10)(A) and 
                        (11).
                            ``(iii) A project which satisfies the 
                        requirements of paragraphs (10)(A) and (11).
            ``(10) Prevailing wage requirements.--
                    ``(A) In general.--The requirements described in 
                this subparagraph with respect to any energy project 
                are that the taxpayer shall ensure that any laborers 
                and mechanics employed by the taxpayer or any 
                contractor or subcontractor in--
                            ``(i) the construction of such energy 
                        project, and
                            ``(ii) for the 5-year period beginning on 
                        the date such project is originally placed in 
                        service, the alteration or repair of such 
                        project,
                shall be paid wages at rates not less than the 
                prevailing rates for construction, alteration, or 
                repair of a similar character in the locality in which 
                such project is located as most recently determined by 
                the Secretary of Labor, in accordance with subchapter 
                IV of chapter 31 of title 40, United States Code. 
                Subject to subparagraph (C), for purposes of any 
                determination under paragraph (9)(A)(i) for the taxable 
                year in which the energy project is placed in service, 
                the taxpayer shall be deemed to satisfy the requirement 
                under clause (ii) at the time such project is placed in 
                service.
                    ``(B) Correction and penalty related to failure to 
                satisfy wage requirements.--Rules similar to the rules 
                of section 45(b)(7)(B) shall apply.
                    ``(C) Recapture.--The Secretary shall, by 
                regulations or other guidance, provide for recapturing 
                the benefit of any increase in the credit allowed under 
                this subsection by reason of this paragraph with 
                respect to any project which does not satisfy the 
                requirements under subparagraph (A) (after application 
                of subparagraph (B)) for the period described in clause 
                (ii) of subparagraph (A) (but which does not cease to 
                be investment credit property within the meaning of 
                section 50(a)). The period and percentage of such 
                recapture shall be determined under rules similar to 
                the rules of section 50(a).
            ``(11) Apprenticeship requirements.--Rules similar to the 
        rules of section 45(b)(8) shall apply.''.
    (l) Domestic Content; Phaseout for Elective Payment.--Section 
48(a), as amended by the preceding provisions of this Act, is amended 
by adding at the end the following new paragraphs:
            ``(12) Domestic content bonus credit amount.--
                    ``(A) In general.--In the case of any energy 
                project which satisfies the requirement under 
                subparagraph (B), for purposes of applying paragraph 
                (2) with respect to such property, the energy 
                percentage shall be increased by the applicable credit 
                rate increase.
                    ``(B) Requirement.--Rules similar to the rules of 
                section 45(b)(9)(B) shall apply.
                    ``(C) Applicable credit rate increase.--For 
                purposes of subparagraph (A), the applicable credit 
                rate increase shall be--
                            ``(i) in the case of an energy project 
                        which does not satisfy the requirements of 
                        paragraph (9)(B), 2 percentage points, and
                            ``(ii) in the case of an energy project 
                        which satisfies the requirements of paragraph 
                        (9)(B), 10 percentage points.
            ``(13) Phaseout for elective payment.--In the case of a 
        taxpayer making an election under section 6417 with respect to 
        a credit under this section, rules similar to the rules of 
        section 45(b)(10) shall apply.''.
    (m) Special Rule for Property Financed by Tax-exempt Bonds.--
Section 48(a)(4) is amended to read as follows:
            ``(4) Special rule for property financed by tax-exempt 
        bonds.--Rules similar to the rule under section 45(b)(3) shall 
        apply for purposes of this section.''.
    (n) Treatment of Certain Contracts Involving Energy Storage.--
Section 7701(e) is amended--
            (1) in paragraph (3)--
                    (A) in subparagraph (A)(i), by striking ``or'' at 
                the end of subclause (II), by striking ``and'' at the 
                end of subclause (III) and inserting ``or'', and by 
                adding at the end the following new subclause:
                                    ``(IV) the operation of a storage 
                                facility, and'', and
                    (B) by adding at the end the following new 
                subparagraph:
                    ``(F) Storage facility.--For purposes of 
                subparagraph (A), the term `storage facility' means a 
                facility which uses energy storage technology within 
                the meaning of section 48(c)(6).'', and
            (2) in paragraph (4), by striking ``or water treatment 
        works facility'' and inserting ``water treatment works 
        facility, or storage facility''.
    (o) Increase in Credit Rate for Energy Communities.--Section 48(a), 
as amended by the preceding provisions of this Act, is amended by 
adding at the end the following new paragraph:
            ``(14) Increase in credit rate for energy communities.--
                    ``(A) In general.--In the case of any energy 
                project that is placed in service within an energy 
                community (as defined in section 45(b)(11)(B), as 
                applied by substituting `energy project' for `qualified 
                facility' each place it appears), for purposes of 
                applying paragraph (2) with respect to energy property 
                which is part of such project, the energy percentage 
                shall be increased by the applicable credit rate 
                increase.
                    ``(B) Applicable credit rate increase.--For 
                purposes of subparagraph (A), the applicable credit 
                rate increase shall be equal to--
                            ``(i) in the case of any energy project 
                        which does not satisfy the requirements of 
                        paragraph (9)(B), 2 percentage points, and
                            ``(ii) in the case of any energy project 
                        which satisfies the requirements of paragraph 
                        (9)(B), 10 percentage points.''.
    (p) Regulations.--Section 48(a), as amended by the preceding 
provisions of this Act, is amended by adding at the end the following 
new paragraph:
            ``(15) Regulations and guidance.--The Secretary shall issue 
        such regulations or other guidance as the Secretary determines 
        necessary to carry out the purposes of this subsection, 
        including regulations or other guidance which provides for 
        requirements for recordkeeping or information reporting for 
        purposes of administering the requirements of this 
        subsection.''.
    (q) Effective Dates.--
            (1) In general.--Except as provided in paragraphs (2) and 
        (3), the amendments made by this section shall apply to 
        property placed in service after December 31, 2021.
            (2) Other property.--The amendments made by subsections 
        (f), (g), (h), (i), (j), (l), (n), and (o) shall apply to 
        property placed in service after December 31, 2022.
            (3) Special rule for property financed by tax-exempt 
        bonds.--The amendments made by subsection (m) shall apply to 
        property the construction of which begins after the date of 
        enactment of this Act.

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

    (a) In General.--Section 48 is amended by adding at the end the 
following new subsection:
    ``(e) Special Rules for Certain Solar and Wind Facilities Placed in 
Service in Connection With Low-income Communities.--
            ``(1) In general.--In the case of any qualified solar and 
        wind facility with respect to which the Secretary makes an 
        allocation of environmental justice solar and wind capacity 
        limitation under paragraph (4)--
                    ``(A) the energy percentage otherwise determined 
                under paragraph (2) or (5) of subsection (a) with 
                respect to any eligible property which is part of such 
                facility shall be increased by--
                            ``(i) in the case of a facility described 
                        in subclause (I) of paragraph (2)(A)(iii) and 
                        not described in subclause (II) of such 
                        paragraph, 10 percentage points, and
                            ``(ii) in the case of a facility described 
                        in subclause (II) of paragraph (2)(A)(iii), 20 
                        percentage points, and
                    ``(B) the increase in the credit determined under 
                subsection (a) by reason of this subsection for any 
                taxable year with respect to all property which is part 
                of such facility shall not exceed the amount which 
                bears the same ratio to the amount of such increase 
                (determined without regard to this subparagraph) as--
                            ``(i) the environmental justice solar and 
                        wind capacity limitation allocated to such 
                        facility, bears to
                            ``(ii) the total megawatt nameplate 
                        capacity of such facility, as measured in 
                        direct current.
            ``(2) Qualified solar and wind facility.--For purposes of 
        this subsection--
                    ``(A) In general.--The term `qualified solar and 
                wind facility' means any facility--
                            ``(i) which generates electricity solely 
                        from property described in section 45(d)(1) or 
                        in clause (i) or (vi) of subsection (a)(3)(A),
                            ``(ii) which has a maximum net output of 
                        less than 5 megawatts (as measured in 
                        alternating current), and
                            ``(iii) which--
                                    ``(I) is located in a low-income 
                                community (as defined in section 
                                45D(e)) or on Indian land (as defined 
                                in section 2601(2) of the Energy Policy 
                                Act of 1992 (25 U.S.C. 3501(2))), or
                                    ``(II) is part of a qualified low-
                                income residential building project or 
                                a qualified low-income economic benefit 
                                project.
                    ``(B) Qualified low-income residential building 
                project.--A facility shall be treated as part of a 
                qualified low-income residential building project if--
                            ``(i) such facility is installed on a 
                        residential rental building which participates 
                        in a covered housing program (as defined in 
                        section 41411(a) of the Violence Against Women 
                        Act of 1994 (34 U.S.C. 12491(a)(3)), a housing 
                        assistance program administered by the 
                        Department of Agriculture under title V of the 
                        Housing Act of 1949, a housing program 
                        administered by a tribally designated housing 
                        entity (as defined in section 4(22) of the 
                        Native American Housing Assistance and Self-
                        Determination Act of 1996 (25 U.S.C. 4103(22))) 
                        or such other affordable housing programs as 
                        the Secretary may provide, and
                            ``(ii) the financial benefits of the 
                        electricity produced by such facility are 
                        allocated equitably among the occupants of the 
                        dwelling units of such building.
                    ``(C) Qualified low-income economic benefit 
                project.--A facility shall be treated as part of a 
                qualified low-income economic benefit project if at 
                least 50 percent of the financial benefits of the 
                electricity produced by such facility are provided to 
                households with income of--
                            ``(i) less than 200 percent of the poverty 
                        line (as defined in section 36B(d)(3)(A)) 
                        applicable to a family of the size involved, or
                            ``(ii) less than 80 percent of area median 
                        gross income (as determined under section 
                        142(d)(2)(B)).
                    ``(D) Financial benefit.--For purposes of 
                subparagraphs (B) and (C), electricity acquired at a 
                below-market rate shall not fail to be taken into 
                account as a financial benefit.
            ``(3) Eligible property.--For purposes of this section, the 
        term `eligible property' means energy property which--
                    ``(A) is part of a facility described in section 
                45(d)(1) for which an election was made under 
                subsection (a)(5), or
                    ``(B) is described in clause (i) or (vi) of 
                subsection (a)(3)(A),
        including energy storage technology (as described in subsection 
        (a)(3)(A)(ix)) installed in connection with such energy 
        property.
            ``(4) Allocations.--
                    ``(A) In general.--Not later than 180 days after 
                the date of enactment of this subsection, the Secretary 
                shall establish a program to allocate amounts of 
                environmental justice solar and wind capacity 
                limitation to qualified solar and wind facilities. In 
                establishing such program and to carry out the purposes 
                of this subsection, the Secretary shall provide 
                procedures to allow for an efficient allocation 
                process, including, when determined appropriate, 
                consideration of multiple projects in a single 
                application if such projects will be placed in service 
                by a single taxpayer.
                    ``(B) Limitation.--The amount of environmental 
                justice solar and wind capacity limitation allocated by 
                the Secretary under subparagraph (A) during any 
                calendar year shall not exceed the annual capacity 
                limitation with respect to such year.
                    ``(C) Annual capacity limitation.--For purposes of 
                this paragraph, the term `annual capacity limitation' 
                means 1.8 gigawatts of direct current capacity for each 
                of calendar years 2023 and 2024, and zero thereafter.
                    ``(D) Carryover of unused limitation.--If the 
                annual capacity limitation for any calendar year 
                exceeds the aggregate amount allocated for such year 
                under this paragraph, such limitation for the 
                succeeding calendar year shall be increased by the 
                amount of such excess. No amount may be carried under 
                the preceding sentence to any calendar year after 2024 
                except as provided in section 48E(h)(4)(D)(ii).
                    ``(E) Placed in service deadline.--
                            ``(i) In general.--Paragraph (1) shall not 
                        apply with respect to any property which is 
                        placed in service after the date that is 4 
                        years after the date of the allocation with 
                        respect to the facility of which such property 
                        is a part.
                            ``(ii) Application of carryover.--Any 
                        amount of environmental justice solar and wind 
                        capacity limitation which expires under clause 
                        (i) during any calendar year shall be taken 
                        into account as an excess described in 
                        subparagraph (D) (or as an increase in such 
                        excess) for such calendar year, subject to the 
                        limitation imposed by the last sentence of such 
                        subparagraph.
            ``(5) Recapture.--The Secretary shall, by regulations or 
        other guidance, provide for recapturing the benefit of any 
        increase in the credit allowed under subsection (a) by reason 
        of this subsection with respect to any property which ceases to 
        be property eligible for such increase (but which does not 
        cease to be investment credit property within the meaning of 
        section 50(a)). The period and percentage of such recapture 
        shall be determined under rules similar to the rules of section 
        50(a). To the extent provided by the Secretary, such recapture 
        may not apply with respect to any property if, within 12 months 
        after the date the taxpayer becomes aware (or reasonably should 
        have become aware) of such property ceasing to be property 
        eligible for such increase, the eligibility of such property 
        for such increase is restored. The preceding sentence shall not 
        apply more than once with respect to any facility.''.
    (b) Effective Date.--The amendments made by this section shall take 
effect on January 1, 2023.

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

    (a) Modification of Carbon Oxide Capture Requirements.--
            (1) In general.--Section 45Q(d) is amended to read as 
        follows:
    ``(d) Qualified Facility.--For purposes of this section, the term 
`qualified facility' means any industrial facility or direct air 
capture facility--
            ``(1) the construction of which begins before January 1, 
        2033, and either--
                    ``(A) construction of carbon capture equipment 
                begins before such date, or
                    ``(B) the original planning and design for such 
                facility includes installation of carbon capture 
                equipment, and
            ``(2) which--
                    ``(A) in the case of a direct air capture facility, 
                captures not less than 1,000 metric tons of qualified 
                carbon oxide during the taxable year,
                    ``(B) in the case of an electricity generating 
                facility--
                            ``(i) captures not less than 18,750 metric 
                        tons of qualified carbon oxide during the 
                        taxable year, and
                            ``(ii) with respect to any carbon capture 
                        equipment for the applicable electric 
                        generating unit at such facility, has a capture 
                        design capacity of not less than 75 percent of 
                        the baseline carbon oxide production of such 
                        unit, or
                    ``(C) in the case of any other facility, captures 
                not less than 12,500 metric tons of qualified carbon 
                oxide during the taxable year.''.
            (2) Definitions.--
                    (A) In general.--Section 45Q(e) is amended--
                            (i) by redesignating paragraphs (1) through 
                        (3) as paragraphs (3) through (5), 
                        respectively, and
                            (ii) by inserting after ``For purposes of 
                        this section--'' the following new paragraphs:
            ``(1) Applicable electric generating unit.--The term 
        `applicable electric generating unit' means the principal 
        electric generating unit for which the carbon capture equipment 
        is originally planned and designed.
            ``(2) Baseline carbon oxide production.--
                    ``(A) In general.--The term `baseline carbon oxide 
                production' means either of the following:
                            ``(i) In the case of an applicable electric 
                        generating unit which was originally placed in 
                        service more than 1 year prior to the date on 
                        which construction of the carbon capture 
                        equipment begins, the average annual carbon 
                        oxide production, by mass, from such unit 
                        during--
                                    ``(I) in the case of an applicable 
                                electric generating unit which was 
                                originally placed in service more than 
                                1 year prior to the date on which 
                                construction of the carbon capture 
                                equipment begins and on or after the 
                                date which is 3 years prior to the date 
                                on which construction of such equipment 
                                begins, the period beginning on the 
                                date such unit was placed in service 
                                and ending on the date on which 
                                construction of such equipment began, 
                                and
                                    ``(II) in the case of an applicable 
                                electric generating unit which was 
                                originally placed in service more than 
                                3 years prior to the date on which 
                                construction of the carbon capture 
                                equipment begins, the 3 years with the 
                                highest annual carbon oxide production 
                                during the 12-year period preceding the 
                                date on which construction of such 
                                equipment began.
                            ``(ii) In the case of an applicable 
                        electric generating unit which--
                                    ``(I) as of the date on which 
                                construction of the carbon capture 
                                equipment begins, is not yet placed in 
                                service, or
                                    ``(II) was placed in service during 
                                the 1-year period prior to the date on 
                                which construction of the carbon 
                                capture equipment begins,
                        the designed annual carbon oxide production, by 
                        mass, as determined based on an assumed 
                        capacity factor of 60 percent.
                    ``(B) Capacity factor.--The term `capacity factor' 
                means the ratio (expressed as a percentage) of the 
                actual electric output from the applicable electric 
                generating unit to the potential electric output from 
                such unit.''.
                    (B) Conforming amendment.--Section 142(o)(1)(B) is 
                amended by striking ``section 45Q(e)(1)'' and inserting 
                ``section 45Q(e)(3)''.
    (b) Modified Applicable Dollar Amount.--Section 45Q(b)(1)(A) is 
amended--
            (1) in clause (i)--
                    (A) in subclause (I), by striking ``the dollar 
                amount'' and all that follows through ``such period'' 
                and inserting ``$17'', and
                    (B) in subclause (II), by striking ``the dollar 
                amount'' and all that follows through ``such period'' 
                and inserting ``$12'', and
            (2) in clause (ii)--
                    (A) in subclause (I), by striking ``$50'' and 
                inserting ``$17'', and
                    (B) in subclause (II), by striking ``$35'' and 
                inserting ``$12''.
    (c) Determination of Applicable Dollar Amount.--
            (1) In general.--Section 45Q(b)(1), as amended by the 
        preceding provisions of this Act, is amended--
                    (A) by redesignating subparagraph (B) as 
                subparagraph (D), and
                    (B) by inserting after subparagraph (A) the 
                following new subparagraphs:
                    ``(B) Special rule for direct air capture 
                facilities.--In the case of any qualified facility 
                described in subsection (d)(2)(A) which is placed in 
                service after December 31, 2022, the applicable dollar 
                amount shall be an amount equal to the applicable 
                dollar amount otherwise determined with respect to such 
                qualified facility under subparagraph (A), except that 
                such subparagraph shall be applied--
                            ``(i) by substituting `$36' for `$17' each 
                        place it appears, and
                            ``(ii) by substituting `$26' for `$12' each 
                        place it appears.
                    ``(C) Applicable dollar amount for additional 
                carbon capture equipment.--In the case of any qualified 
                facility which is placed in service before January 1, 
                2023, if any additional carbon capture equipment is 
                installed at such facility and such equipment is placed 
                in service after December 31, 2022, the applicable 
                dollar amount shall be an amount equal to the 
                applicable dollar amount otherwise determined under 
                this paragraph, except that subparagraph (B) shall be 
                applied--
                            ``(i) by substituting `before January 1, 
                        2023' for `after December 31, 2022', and
                            ``(ii) by substituting `the additional 
                        carbon capture equipment installed at such 
                        qualified facility' for `such qualified 
                        facility'.''.
            (2) Conforming amendments.--
                    (A) Section 45Q(b)(1)(A) is amended by striking 
                ``The applicable dollar amount'' and inserting ``Except 
                as provided in subparagraph (B) or (C), the applicable 
                dollar amount''.
                    (B) Section 45Q(b)(1)(D), as redesignated by 
                paragraph (1)(A), is amended by striking ``subparagraph 
                (A)'' and inserting ``subparagraph (A), (B), or (C)''.
    (d) Wage and Apprenticeship Requirements.--Section 45Q is amended 
by redesignating subsection (h) as subsection (i) and inserting after 
subsection (g) following new subsection:
    ``(h) Increased Credit Amount for Qualified Facilities and Carbon 
Capture Equipment.--
            ``(1) In general.--In the case of any qualified facility or 
        any carbon capture equipment which satisfy the requirements of 
        paragraph (2), the amount of the credit determined under 
        subsection (a) shall be equal to such amount (determined 
        without regard to this sentence) multiplied by 5.
            ``(2) Requirements.--The requirements described in this 
        paragraph are that--
                    ``(A) with respect to any qualified facility the 
                construction of which begins on or after the date that 
                is 60 days after the Secretary publishes guidance with 
                respect to the requirements of paragraphs (3)(A) and 
                (4), as well as any carbon capture equipment placed in 
                service at such facility--
                            ``(i) subject to subparagraph (B) of 
                        paragraph (3), the taxpayer satisfies the 
                        requirements under subparagraph (A) of such 
                        paragraph with respect to such facility and 
                        equipment, and
                            ``(ii) the taxpayer satisfies the 
                        requirements under paragraph (4) with respect 
                        to the construction of such facility and 
                        equipment,
                    ``(B) with respect to any carbon capture equipment 
                the construction of which begins on or after the date 
                that is 60 days after the Secretary publishes guidance 
                with respect to the requirements of paragraphs (3)(A) 
                and (4), and which is installed at a qualified facility 
                the construction of which began prior to such date--
                            ``(i) subject to subparagraph (B) of 
                        paragraph (3), the taxpayer satisfies the 
                        requirements under subparagraph (A) of such 
                        paragraph with respect to such equipment, and
                            ``(ii) the taxpayer satisfies the 
                        requirements under paragraph (4) with respect 
                        to the construction of such equipment, or
                    ``(C) the construction of carbon capture equipment 
                begins prior to the date that is 60 days after the 
                Secretary publishes guidance with respect to the 
                requirements of paragraphs (3)(A) and (4), and such 
                equipment is installed at a qualified facility the 
                construction of which begins prior to such date.
            ``(3) Prevailing wage requirements.--
                    ``(A) In general.--The requirements described in 
                this subparagraph with respect to any qualified 
                facility and any carbon capture equipment placed in 
                service at such facility are that the taxpayer shall 
                ensure that any laborers and mechanics employed by the 
                taxpayer or any contractor or subcontractor in--
                            ``(i) the construction of such facility or 
                        equipment, and
                            ``(ii) with respect to any taxable year, 
                        for any portion of such taxable year which is 
                        within the period described in paragraph (3)(A) 
                        or (4)(A) of subsection (a), the alteration or 
                        repair of such facility or such equipment,
                shall be paid wages at rates not less than the 
                prevailing rates for construction, alteration, or 
                repair of a similar character in the locality in which 
                such facility and equipment are located as most 
                recently determined by the Secretary of Labor, in 
                accordance with subchapter IV of chapter 31 of title 
                40, United States Code. For purposes of determining an 
                increased credit amount under paragraph (1) for a 
                taxable year, the requirement under clause (ii) of this 
                subparagraph is applied to such taxable year in which 
                the alteration or repair of qualified facility occurs.
                    ``(B) Correction and penalty related to failure to 
                satisfy wage requirements.--Rules similar to the rules 
                of section 45(b)(7)(B) shall apply.
            ``(4) Apprenticeship requirements.--Rules similar to the 
        rules of section 45(b)(8) shall apply.
            ``(5) Regulations and guidance.--The Secretary shall issue 
        such regulations or other guidance as the Secretary determines 
        necessary 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) Credit Reduced for Tax-exempt Bonds.--Section 45Q(f) is 
amended--
            (1) by striking the second paragraph (3), as added at the 
        end of such section by section 80402(e) of the Infrastructure 
        Investment and Jobs Act (Public Law 117-58), and
            (2) by adding at the end the following new paragraph:
            ``(8) Credit reduced for tax-exempt bonds.--Rules similar 
        to the rule under section 45(b)(3) shall apply for purposes of 
        this section.''.
    (f) Application of Section for Certain Carbon Capture Equipment.--
Section 45Q(g) is amended by inserting ``the earlier of January 1, 
2023, and'' before ``the end of the calendar year''.
    (g) Election.--Section 45Q(f), as amended by subsection (e), is 
amended by adding at the end the following new paragraph:
            ``(9) Election.--For purposes of paragraphs (3) and (4) of 
        subsection (a), a person described in paragraph (3)(A)(ii) may 
        elect, at such time and in such manner as the Secretary may 
        prescribe, to have the 12-year period begin on the first day of 
        the first taxable year in which a credit under this section is 
        claimed with respect to carbon capture equipment which is 
        originally placed in service at a qualified facility on or 
        after the date of the enactment of the Bipartisan Budget Act of 
        2018 (after application of paragraph (6), where applicable) 
        if--
                    ``(A) no taxpayer claimed a credit under this 
                section with respect to such carbon capture equipment 
                for any prior taxable year,
                    ``(B) the qualified facility at which such carbon 
                capture equipment is placed in service is located in an 
                area affected by a federally-declared disaster (as 
                defined by section 165(i)(5)(A)) after the carbon 
                capture equipment is originally placed in service, and
                    ``(C) such federally-declared disaster results in a 
                cessation of the operation of the qualified facility or 
                the carbon capture equipment after such equipment is 
                originally placed in service.''.
    (h) Regulations for Baseline Carbon Oxide Production.--Subsection 
(i) of section 45Q, as redesignated by subsection (d), is amended--
            (1) in paragraph (1), by striking ``and'',
            (2) in paragraph (2), by striking the period at the end and 
        inserting ``, and'', and
            (3) by adding at the end the following new paragraph:
            ``(3) for purposes of subsection (d)(2)(B)(ii), adjust the 
        baseline carbon oxide production with respect to any applicable 
        electric generating unit at any electricity generating facility 
        if, after the date on which the carbon capture equipment is 
        placed in service, modifications which are chargeable to 
        capital account are made to such unit which result in a 
        significant increase or decrease in carbon oxide production.''.
    (i) Effective Dates.--
            (1) In general.--Except as provided in paragraphs (2), (3), 
        and (4), the amendments made by this section shall apply to 
        facilities or equipment placed in service after December 31, 
        2022.
            (2) Modification of carbon oxide capture requirements.--The 
        amendments made by subsection (a) shall apply to facilities or 
        equipment the construction of which begins after the date of 
        enactment of this Act.
            (3) Application of section for certain carbon capture 
        equipment.--The amendments made by subsection (f) shall take 
        effect on the date of enactment of this Act.
            (4) Election.--The amendments made by subsection (g) shall 
        apply to carbon oxide captured and disposed of after December 
        31, 2021.

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

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

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

    ``(a) Amount of Credit.--For purposes of section 38, the zero-
emission nuclear power production credit for any taxable year is an 
amount equal to the amount by which--
            ``(1) the product of--
                    ``(A) 0.3 cents, multiplied by
                    ``(B) the kilowatt hours of electricity--
                            ``(i) produced by the taxpayer at a 
                        qualified nuclear power facility, and
                            ``(ii) sold by the taxpayer to an unrelated 
                        person during the taxable year, exceeds
            ``(2) the reduction amount for such taxable year.
    ``(b) Definitions.--
            ``(1) Qualified nuclear power facility.--For purposes of 
        this section, the term `qualified nuclear power facility' means 
        any nuclear facility--
                    ``(A) which is owned by the taxpayer and which uses 
                nuclear energy to produce electricity,
                    ``(B) which is not an advanced nuclear power 
                facility as defined in subsection (d)(1) of section 
                45J, and
                    ``(C) which is placed in service before the date of 
                the enactment of this section.
            ``(2) Reduction amount.--
                    ``(A) In general.--For purposes of this section, 
                the term `reduction amount' means, with respect to any 
                qualified nuclear power facility for any taxable year, 
                the amount equal to the lesser of--
                            ``(i) the amount determined under 
                        subsection (a)(1), or
                            ``(ii) the amount equal to 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 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
            ``(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.
            ``(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).
                    ``(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 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 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 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).''.
            (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.
            ``(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--
                    ``(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 (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 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.--
                    ``(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--
                            ``(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
                            ``(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 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 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,
                    ``(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,
            (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 
                                                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 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 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 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 which is 1 day 
after the date of 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. REINSTATEMENT OF LIMITATION RULES FOR DEDUCTION FOR STATE 
              AND LOCAL, ETC., TAXES; EXTENSION OF LIMITATION ON EXCESS 
              BUSINESS LOSSES OF NONCORPORATE TAXPAYERS.

    (a) Reinstatement of Limitation Rules for Deduction for State and 
Local, etc., Taxes.--
            (1) In general.--Section 164(b)(6), as amended by section 
        13904, is further amended--
                    (A) in the heading, by striking ``2026'' and 
                inserting ``2025'', and
                    (B) by striking ``2027'' and inserting ``2026''.
            (2) Effective date.--The amendments made by this subsection 
        shall apply to taxable years beginning after December 31, 2022.
    (b) Extension of Limitation on Excess Business Losses of 
Noncorporate Taxpayers.--
            (1) In general.--Section 461(l)(1) is amended by striking 
        ``January 1, 2027'' each place it appears and inserting 
        ``January 1, 2029''.
            (2) Effective date.--The amendments made by this subsection 
        shall apply to taxable years beginning after December 31, 2026.

SEC. 13904. REMOVAL OF HARMFUL SMALL BUSINESS TAXES; EXTENSION OF 
              LIMITATION ON DEDUCTION FOR STATE AND LOCAL, ETC., TAXES.

    (a) Removal of Harmful Small Business Taxes.--Subparagraph (D) of 
section 59(k)(1), as added by section 10101, is amended to read as 
follows:
                    ``(D) Special rules for determining applicable 
                corporation status.--Solely for purposes of determining 
                whether a corporation is an applicable corporation 
                under this paragraph, all adjusted financial statement 
                income of persons treated as a single employer with 
                such corporation under subsection (a) or (b) of section 
                52 shall be treated as adjusted financial statement 
                income of such corporation, and adjusted financial 
                statement income of such corporation shall be 
                determined without regard to paragraphs (2)(D)(i) and 
                (11) of section 56A(c).''.
    (b) Extension of Limitation on Deduction for State and Local, etc., 
Taxes.--
            (1) In general.--Section 164(b)(6) is amended--
                    (A) in the heading, by striking ``2025'' and 
                inserting ``2026'', and
                    (B) by striking ``2026'' and inserting ``2027''.
            (2) Effective date.--The amendments made by this subsection 
        shall apply to taxable years beginning after December 31, 2022.

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

                     Subtitle A--General Provisions

SEC. 20001. DEFINITION OF SECRETARY.

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

                        Subtitle B--Conservation

SEC. 21001. ADDITIONAL AGRICULTURAL CONSERVATION INVESTMENTS.

    (a) Appropriations.--In addition to amounts otherwise available 
(and subject to subsection (b)), there are appropriated to the 
Secretary, out of any money in the Treasury not otherwise appropriated, 
to remain available until September 30, 2031 (subject to the condition 
that no such funds may be disbursed after September 30, 2031)--
            (1) to carry out, using the facilities and authorities of 
        the Commodity Credit Corporation, the environmental quality 
        incentives program under subchapter A of chapter 4 of subtitle 
        D of title XII of the Food Security Act of 1985 (16 U.S.C. 
        3839aa through 3839aa-8)--
                    (A)(i) $250,000,000 for fiscal year 2023;
                    (ii) $1,750,000,000 for fiscal year 2024;
                    (iii) $3,000,000,000 for fiscal year 2025; and
                    (iv) $3,450,000,000 for fiscal year 2026; and
                    (B) subject to the conditions on the use of the 
                funds that--
                            (i) section 1240B(f)(1) of the Food 
                        Security Act of 1985 (16 U.S.C. 3839aa-2(f)(1)) 
                        shall not apply;
                            (ii) section 1240H(c)(2) of the Food 
                        Security Act of 1985 (16 U.S.C. 3839aa-8(c)(2)) 
                        shall be applied--
                                    (I) by substituting ``$50,000,000'' 
                                for ``$25,000,000''; and
                                    (II) with the Secretary 
                                prioritizing proposals that utilize 
                                diet and feed management to reduce 
                                enteric methane emissions from 
                                ruminants; 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.
    (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 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, 
        zero-emission systems, and carbon capture and storage systems, 
        to deploy such systems, or to make energy efficiency 
        improvements to electric generation and transmission systems of 
        the eligible entity after the date of enactment of this 
        subsection.
            ``(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;
            (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 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 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;
                    (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
                            (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 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''.

                     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).
    (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 Fossil Energy and Carbon Management.--In addition to 
amounts otherwise available, there is appropriated to the Secretary for 
fiscal year 2022, out of any money in the Treasury not otherwise 
appropriated, $150,000,000, to remain available through September 30, 
2027, to carry out activities for infrastructure and general plant 
projects carried out by the Office of Fossil Energy and Carbon 
Management.
    (c) Office of Nuclear Energy.--In addition to amounts otherwise 
available, there is appropriated to the Secretary for fiscal year 2022, 
out of any money in the Treasury not otherwise appropriated, 
$150,000,000, to remain available through September 30, 2027, to carry 
out activities for infrastructure and general plant projects carried 
out by the Office of Nuclear Energy.
    (d) Office of Energy Efficiency and Renewable Energy.--In addition 
to amounts otherwise available, there is appropriated to the Secretary 
for fiscal year 2022, out of any money in the Treasury not otherwise 
appropriated, $150,000,000, to remain available through September 30, 
2027, to carry out activities for infrastructure and general plant 
projects carried out by the Office of Energy Efficiency and Renewable 
Energy.

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

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

                     Subtitle B--Natural Resources

                       PART 1--GENERAL PROVISIONS

SEC. 50211. DEFINITIONS.

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

                          PART 2--PUBLIC LANDS

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

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

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

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

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.

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, but not more than 
        18\3/4\ percent, 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 
        not less than 16\2/3\ percent thereafter,'';
            (2) in subparagraph (F), by striking ``no less than 12\1/2\ 
        per centum'' and inserting ``not less than 16\2/3\ percent, but 
        not more than 18\3/4\ percent, during the 10-year period 
        beginning on the date of enactment of the Act titled `An Act to 
        provide for reconciliation pursuant to title II of S. Con. Res. 
        14', and not less than 16\2/3\ percent thereafter,''; and
            (3) in subparagraph (H), by striking ``no less than 12 and 
        \1/2\ per centum'' and inserting ``not less than 16\2/3\ 
        percent, but not more than 18\3/4\ percent, during the 10-year 
        period beginning on the date of enactment of the Act titled `An 
        Act to provide for reconciliation pursuant to title II of S. 
        Con. Res. 14', and not less than 16\2/3\ percent thereafter,''.

SEC. 50262. MINERAL LEASING ACT MODERNIZATION.

    (a) Onshore Oil and Gas Royalty Rates.--
            (1) Lease of oil and gas land.--Section 17 of the Mineral 
        Leasing Act (30 U.S.C. 226) is amended--
                    (A) in subsection (b)(1)(A), in the fifth 
                sentence--
                            (i) by striking ``12.5'' and inserting 
                        ``16\2/3\''; and
                            (ii) by inserting ``or, in the case of a 
                        lease issued during the 10-year period 
                        beginning on the date of enactment of the 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.
            ``(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.

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

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

SEC. 50265. ENSURING ENERGY SECURITY.

    (a) Definitions.--In this section:
            (1) Federal land.--The term ``Federal land'' means public 
        lands (as defined in section 103 of the Federal Land Policy and 
        Management Act of 1976 (43 U.S.C. 1702)).
            (2) Offshore lease sale.--The term ``offshore lease sale'' 
        means an oil and gas lease sale--
                    (A) that is held by the Secretary in accordance 
                with the Outer Continental Shelf Lands Act (43 U.S.C. 
                1331 et seq.); and
                    (B) that, if any acceptable bids have been received 
                for any tract offered in the lease sale, results in the 
                issuance of a lease.
            (3) Onshore lease sale.--The term ``onshore lease sale'' 
        means a quarterly oil and gas lease sale--
                    (A) that is held by the Secretary in accordance 
                with section 17 of the Mineral Leasing Act (30 U.S.C. 
                226); and
                    (B) that, if any acceptable bids have been received 
                for any parcel offered in the lease sale, results in 
                the issuance of a lease.
    (b) Limitation on Issuance of Certain Leases or Rights-of-way.--
During the 10-year period beginning on the date of enactment of this 
Act--
            (1) the Secretary may not issue a right-of-way for wind or 
        solar energy development on Federal land unless--
                    (A) an onshore lease sale has been held during the 
                120-day period ending on the date of the issuance of 
                the right-of-way for wind or solar energy development; 
                and
                    (B) the sum total of acres offered for lease in 
                onshore lease sales during the 1-year period ending on 
                the date of the issuance of the right-of-way for wind 
                or solar energy development is not less than the lesser 
                of--
                            (i) 2,000,000 acres; and
                            (ii) 50 percent of the acreage for which 
                        expressions of interest have been submitted for 
                        lease sales during that period; and
            (2) the Secretary may not issue a lease for offshore wind 
        development under section 8(p)(1)(C) of the Outer Continental 
        Shelf Lands Act (43 U.S.C. 1337(p)(1)(C)) unless--
                    (A) an offshore lease sale has been held during the 
                1-year period ending on the date of the issuance of the 
                lease for offshore wind development; and
                    (B) the sum total of acres offered for lease in 
                offshore lease sales during the 1-year period ending on 
                the date of the issuance of the lease for offshore wind 
                development is not less than 60,000,000 acres.
    (c) Savings.--Except as expressly provided in paragraphs (1) and 
(2) of subsection (b), nothing in this section supersedes, amends, or 
modifies existing law.

                PART 7--UNITED STATES GEOLOGICAL SURVEY

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

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

                PART 8--OTHER NATURAL RESOURCES MATTERS

SEC. 50281. DEPARTMENT OF THE INTERIOR OVERSIGHT.

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

                   Subtitle C--Environmental Reviews

SEC. 50301. DEPARTMENT OF ENERGY.

    In addition to amounts otherwise available, there is appropriated 
to the Secretary of Energy for fiscal year 2022, out of any money in 
the Treasury not otherwise appropriated, $115,000,000, to remain 
available through September 30, 2031, to provide for the hiring and 
training of personnel, the development of programmatic environmental 
documents, the procurement of technical or scientific services for 
environmental reviews, the development of environmental data or 
information systems, stakeholder and community engagement, and the 
purchase of new equipment for environmental analysis to facilitate 
timely and efficient environmental reviews and authorizations.

SEC. 50302. FEDERAL ENERGY REGULATORY COMMISSION.

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

SEC. 50303. DEPARTMENT OF THE INTERIOR.

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

          TITLE VI--COMMITTEE ON ENVIRONMENT AND PUBLIC WORKS

                       Subtitle A--Air Pollution

SEC. 60101. CLEAN HEAVY-DUTY VEHICLES.

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

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

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

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

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

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

    ``(a) Appropriations.--
            ``(1) General assistance.--In addition to amounts otherwise 
        available, there is appropriated to the Administrator for 
        fiscal year 2022, out of any money in the Treasury not 
        otherwise appropriated, $2,250,000,000, to remain available 
        until September 30, 2027, to award rebates and grants to 
        eligible recipients on a competitive basis--
                    ``(A) to purchase or install zero-emission port 
                equipment or technology for use at, or to directly 
                serve, one or more ports;
                    ``(B) to conduct any relevant planning or 
                permitting in connection with the purchase or 
                installation of such zero-emission port equipment or 
                technology; and
                    ``(C) to develop qualified climate action plans.
            ``(2) Nonattainment areas.--In addition to amounts 
        otherwise available, there is appropriated to the Administrator 
        for fiscal year 2022, out of any money in the Treasury not 
        otherwise appropriated, $750,000,000, to remain available until 
        September 30, 2027, to award rebates and grants to eligible 
        recipients to carry out activities described in paragraph (1) 
        with respect to ports located in air quality areas designated 
        pursuant to section 107 as nonattainment for an air pollutant.
    ``(b) Limitation.--Funds awarded under this section shall not be 
used by any recipient or subrecipient to purchase or install zero-
emission port equipment or technology that will not be located at, or 
directly serve, the one or more ports involved.
    ``(c) Administration of Funds.--Of the funds made available by this 
section, the Administrator shall reserve 2 percent for administrative 
costs necessary to carry out this section.
    ``(d) Definitions.--In this section:
            ``(1) Eligible recipient.--The term `eligible recipient' 
        means--
                    ``(A) a port authority;
                    ``(B) a State, regional, local, or Tribal agency 
                that has jurisdiction over a port authority or a port;
                    ``(C) an air pollution control agency; or
                    ``(D) a private entity that--
                            ``(i) applies for a grant under this 
                        section in partnership with an entity described 
                        in any of subparagraphs (A) through (C); and
                            ``(ii) owns, operates, or uses the 
                        facilities, cargo-handling equipment, 
                        transportation equipment, or related technology 
                        of a port.
            ``(2) Greenhouse gas.--The term `greenhouse gas' means the 
        air pollutants carbon dioxide, hydrofluorocarbons, methane, 
        nitrous oxide, perfluorocarbons, and sulfur hexafluoride.
            ``(3) Qualified climate action plan.--The term `qualified 
        climate action plan' means a detailed and strategic plan that--
                    ``(A) establishes goals, implementation strategies, 
                and accounting and inventory practices to reduce 
                emissions at one or more ports of--
                            ``(i) greenhouse gases;
                            ``(ii) an air pollutant that is listed 
                        pursuant to section 108(a) (or any precursor to 
                        such an air pollutant); and
                            ``(iii) hazardous air pollutants;
                    ``(B) includes a strategy to collaborate with, 
                communicate with, and address potential effects on low-
                income and disadvantaged near-port communities and 
                other stakeholders that may be affected by 
                implementation of the plan; and
                    ``(C) describes how an eligible recipient has 
                implemented or will implement measures to increase the 
                resilience of the one or more ports involved.
            ``(4) Zero-emission port equipment or technology.--The term 
        `zero-emission port equipment or technology' means human-
        operated equipment or human-maintained technology that--
                    ``(A) produces zero emissions of any air pollutant 
                that is listed pursuant to section 108(a) (or any 
                precursor to such an air pollutant) and any greenhouse 
                gas other than water vapor; or
                    ``(B) captures 100 percent of the emissions 
                described in subparagraph (A) that are produced by an 
                ocean-going vessel at berth.''.

SEC. 60103. GREENHOUSE GAS REDUCTION FUND.

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

``SEC. 134. GREENHOUSE GAS REDUCTION FUND.

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

SEC. 60104. DIESEL EMISSIONS REDUCTIONS.

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

SEC. 60105. FUNDING TO ADDRESS AIR POLLUTION.

    (a) Fenceline Air Monitoring and Screening Air Monitoring.--In 
addition to amounts otherwise available, there is appropriated to the 
Administrator of the Environmental Protection Agency for fiscal year 
2022, out of any money in the Treasury not otherwise appropriated, 
$117,500,000, to remain available until September 30, 2031, for grants 
and other activities authorized under subsections (a) through (c) of 
section 103 and section 105 of the Clean Air Act (42 U.S.C. 7403(a)-
(c), 7405) to deploy, integrate, support, and maintain fenceline air 
monitoring, screening air monitoring, national air toxics trend 
stations, and other air toxics and community monitoring.
    (b) Multipollutant Monitoring Stations.--In addition to amounts 
otherwise available, there is appropriated to the Administrator of the 
Environmental Protection Agency for fiscal year 2022, out of any money 
in the Treasury not otherwise appropriated, $50,000,000, to remain 
available until September 30, 2031, for grants and other activities 
authorized under subsections (a) through (c) of section 103 and section 
105 of the Clean Air Act (42 U.S.C. 7403(a)-(c), 7405)--
            (1) to expand the national ambient air quality monitoring 
        network with new multipollutant monitoring stations; and
            (2) to replace, repair, operate, and maintain existing 
        monitors.
    (c) Air Quality Sensors in Low-income and Disadvantaged 
Communities.--In addition to amounts otherwise available, there is 
appropriated to the Administrator of the Environmental Protection 
Agency for fiscal year 2022, out of any money in the Treasury not 
otherwise appropriated, $3,000,000, to remain available until September 
30, 2031, for grants and other activities authorized under subsections 
(a) through (c) of section 103 and section 105 of the Clean Air Act (42 
U.S.C. 7403(a)-(c), 7405) to deploy, integrate, and operate air quality 
sensors in low-income and disadvantaged communities.
    (d) Emissions From Wood Heaters.--In addition to amounts otherwise 
available, there is appropriated to the Administrator of the 
Environmental Protection Agency for fiscal year 2022, out of any money 
in the Treasury not otherwise appropriated, $15,000,000, to remain 
available until September 30, 2031, for grants and other activities 
authorized under subsections (a) through (c) of section 103 and section 
105 of the Clean Air Act (42 U.S.C. 7403(a)-(c), 7405) for testing and 
other agency activities to address emissions from wood heaters.
    (e) Methane Monitoring.--In addition to amounts otherwise 
available, there is appropriated to the Administrator of the 
Environmental Protection Agency for fiscal year 2022, out of any money 
in the Treasury not otherwise appropriated, $20,000,000, to remain 
available until September 30, 2031, for grants and other activities 
authorized under subsections (a) through (c) of section 103 and section 
105 of the Clean Air Act (42 U.S.C. 7403(a)-(c), 7405) for monitoring 
emissions of methane.
    (f) Clean Air Act Grants.--In addition to amounts otherwise 
available, there is appropriated to the Administrator of the 
Environmental Protection Agency for fiscal year 2022, out of any money 
in the Treasury not otherwise appropriated, $25,000,000, to remain 
available until September 30, 2031, for grants and other activities 
authorized under subsections (a) through (c) of section 103 and section 
105 of the Clean Air Act (42 U.S.C. 7403(a)-(c), 7405).
    (g) Greenhouse Gas and Zero-emission Standards for Mobile 
Sources.--In addition to amounts otherwise available, there is 
appropriated to the Administrator of the Environmental Protection 
Agency for fiscal year 2022, out of any money in the Treasury not 
otherwise appropriated, $5,000,000, to remain available until September 
30, 2031, to provide grants to States to adopt and implement greenhouse 
gas and zero-emission standards for mobile sources pursuant to section 
177 of the Clean Air Act (42 U.S.C. 7507).
    (h) Definition of Greenhouse Gas.--In this section, the term 
``greenhouse gas'' means the air pollutants carbon dioxide, 
hydrofluorocarbons, methane, nitrous oxide, perfluorocarbons, and 
sulfur hexafluoride.

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

    (a) In General.--In addition to amounts otherwise available, there 
is appropriated to the Administrator of the Environmental Protection 
Agency for fiscal year 2022, out of any money in the Treasury not 
otherwise appropriated, $37,500,000, to remain available until 
September 30, 2031, for grants and other activities to monitor and 
reduce greenhouse gas emissions and other air pollutants at schools in 
low-income and disadvantaged communities under subsections (a) through 
(c) of section 103 of the Clean Air Act (42 U.S.C. 7403(a)-(c)) and 
section 105 of that Act (42 U.S.C. 7405).
    (b) Technical Assistance.--In addition to amounts otherwise 
available, there is appropriated to the Administrator of the 
Environmental Protection Agency for fiscal year 2022, out of any money 
in the Treasury not otherwise appropriated, $12,500,000, to remain 
available until September 30, 2031, for providing technical assistance 
to schools in low-income and disadvantaged communities under 
subsections (a) through (c) of section 103 of the Clean Air Act (42 
U.S.C. 7403(a)-(c)) and section 105 of that Act (42 U.S.C. 7405)--
            (1) to address environmental issues;
            (2) to develop school environmental quality plans that 
        include standards for school building, design, construction, 
        and renovation; and
            (3) to identify and mitigate ongoing air pollution hazards.
    (c) Definition of Greenhouse Gas.--In this section, the term 
``greenhouse gas'' means the air pollutants carbon dioxide, 
hydrofluorocarbons, methane, nitrous oxide, perfluorocarbons, and 
sulfur hexafluoride.

SEC. 60107. LOW EMISSIONS ELECTRICITY PROGRAM.

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

``SEC. 135. LOW EMISSIONS ELECTRICITY PROGRAM.

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

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

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

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

    (a) Appropriations.--
            (1) In general.--In addition to amounts otherwise 
        available, there is appropriated to the Administrator of the 
        Environmental Protection Agency for fiscal year 2022, out of 
        any money in the Treasury not otherwise appropriated, 
        $20,000,000, to remain available until September 30, 2026, to 
        carry out subsections (a) through (i) and subsection (k) of 
        section 103 of division S of Public Law 116-260 (42 U.S.C. 
        7675).
            (2) Implementation and compliance tools.--In addition to 
        amounts otherwise available, there is appropriated to the 
        Administrator of the Environmental Protection Agency for fiscal 
        year 2022, out of any money in the Treasury not otherwise 
        appropriated, $3,500,000, to remain available until September 
        30, 2026, to deploy new implementation and compliance tools to 
        carry out subsections (a) through (i) and subsection (k) of 
        section 103 of division S of Public Law 116-260 (42 U.S.C. 
        7675).
            (3) Competitive grants.--In addition to amounts otherwise 
        available, there is appropriated to the Administrator of the 
        Environmental Protection Agency for fiscal year 2022, out of 
        any money in the Treasury not otherwise appropriated, 
        $15,000,000, to remain available until September 30, 2026, for 
        competitive grants for reclaim and innovative destruction 
        technologies under subsections (a) through (i) and subsection 
        (k) of section 103 of division S of Public Law 116-260 (42 
        U.S.C. 7675).
    (b) Administration of Funds.--Of the funds made available pursuant 
to subsection (a)(3), the Administrator of the Environmental Protection 
Agency shall reserve 5 percent for administrative costs necessary to 
carry out activities pursuant to such subsection.

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

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

SEC. 60111. GREENHOUSE GAS CORPORATE REPORTING.

    (a) In General.--In addition to amounts otherwise available, there 
is appropriated to the Administrator of the Environmental Protection 
Agency for fiscal year 2022, out of any money in the Treasury not 
otherwise appropriated, $5,000,000, to remain available until September 
30, 2031, for the Environmental Protection Agency to support--
            (1) enhanced standardization and transparency of corporate 
        climate action commitments and plans to reduce greenhouse gas 
        emissions;
            (2) enhanced transparency regarding progress toward meeting 
        such commitments and implementing such plans; and
            (3) progress toward meeting such commitments and 
        implementing such plans.
    (b) Definition of Greenhouse Gas.--In this section, the term 
``greenhouse gas'' means the air pollutants carbon dioxide, 
hydrofluorocarbons, methane, nitrous oxide, perfluorocarbons, and 
sulfur hexafluoride.

SEC. 60112. ENVIRONMENTAL PRODUCT DECLARATION ASSISTANCE.

    (a) In General.--In addition to amounts otherwise available, there 
is appropriated to the Administrator of the Environmental Protection 
Agency for fiscal year 2022, out of any money in the Treasury not 
otherwise appropriated, $250,000,000, to remain available until 
September 30, 2031, to develop and carry out a program to support the 
development, enhanced standardization and transparency, and reporting 
criteria for environmental product declarations that include 
measurements of the embodied greenhouse gas emissions of the material 
or product associated with all relevant stages of production, use, and 
disposal, and conform with international standards, for construction 
materials and products by--
            (1) providing grants to businesses that manufacture 
        construction materials and products for developing and 
        verifying environmental product declarations, and to States, 
        Indian Tribes, and nonprofit organizations that will support 
        such businesses;
            (2) providing technical assistance to businesses that 
        manufacture construction materials and products in developing 
        and verifying environmental product declarations, and to 
        States, Indian Tribes, and nonprofit organizations that will 
        support such businesses; and
            (3) carrying out other activities that assist in measuring, 
        reporting, and steadily reducing the quantity of embodied 
        carbon of construction materials and products.
    (b) Administrative Costs.--Of the amounts made available under this 
section, the Administrator of the Environmental Protection Agency shall 
reserve 5 percent for administrative costs necessary to carry out this 
section.
    (c) Definitions.--In this section:
            (1) Greenhouse gas.--The term ``greenhouse gas'' means the 
        air pollutants carbon dioxide, hydrofluorocarbons, methane, 
        nitrous oxide, perfluorocarbons, and sulfur hexafluoride.
            (2) State.--The term ``State'' has the meaning given to 
        that term in section 302(d) of the Clean Air Act (42 U.S.C. 
        7602(d)).

SEC. 60113. METHANE EMISSIONS REDUCTION PROGRAM.

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

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

    ``(a) Incentives for Methane Mitigation and Monitoring.--In 
addition to amounts otherwise available, there is appropriated to the 
Administrator for fiscal year 2022, out of any money in the Treasury 
not otherwise appropriated, $850,000,000, to remain available until 
September 30, 2028--
            ``(1) for grants, rebates, contracts, loans, and other 
        activities of the Environmental Protection Agency for the 
        purposes of providing financial and technical assistance to 
        owners and operators of applicable facilities to prepare and 
        submit greenhouse gas reports under subpart W of part 98 of 
        title 40, Code of Federal Regulations;
            ``(2) for grants, rebates, contracts, loans, and other 
        activities of the Environmental Protection Agency authorized 
        under subsections (a) through (c) of section 103 for methane 
        emissions monitoring;
            ``(3) for grants, rebates, contracts, loans, and other 
        activities of the Environmental Protection Agency for the 
        purposes of providing financial and technical assistance to 
        reduce methane and other greenhouse gas emissions from 
        petroleum and natural gas systems, mitigate legacy air 
        pollution from petroleum and natural gas systems, and provide 
        funding for--
                    ``(A) improving climate resiliency of communities 
                and petroleum and natural gas systems;
                    ``(B) improving and deploying industrial equipment 
                and processes that reduce methane and other greenhouse 
                gas emissions and waste;
                    ``(C) supporting innovation in reducing methane and 
                other greenhouse gas emissions and waste from petroleum 
                and natural gas systems;
                    ``(D) permanently shutting in and plugging wells on 
                non-Federal land;
                    ``(E) mitigating health effects of methane and 
                other greenhouse gas emissions, and legacy air 
                pollution from petroleum and natural gas systems in 
                low-income and disadvantaged communities; and
                    ``(F) supporting environmental restoration; and
            ``(4) to cover all direct and indirect costs required to 
        administer this section, prepare inventories, gather empirical 
        data, and track emissions.
    ``(b) Incentives for Methane Mitigation From Conventional Wells.--
In addition to amounts otherwise available, there is appropriated to 
the Administrator for fiscal year 2022, out of any money in the 
Treasury not otherwise appropriated, $700,000,000, to remain available 
until September 30, 2028, for activities described in paragraphs (1) 
through (4) of subsection (a) at marginal conventional wells.
    ``(c) Waste Emissions Charge.--The Administrator shall impose and 
collect a charge on methane emissions that exceed an applicable waste 
emissions threshold under subsection (f) from an owner or operator of 
an applicable facility that reports more than 25,000 metric tons of 
carbon dioxide equivalent of greenhouse gases emitted per year pursuant 
to subpart W of part 98 of title 40, Code of Federal Regulations, 
regardless of the reporting threshold under that subpart.
    ``(d) Applicable Facility.--For purposes of this section, the term 
`applicable facility' means a facility within the following industry 
segments, as defined in subpart W of part 98 of title 40, Code of 
Federal Regulations:
            ``(1) Offshore petroleum and natural gas production.
            ``(2) Onshore petroleum and natural gas production.
            ``(3) Onshore natural gas processing.
            ``(4) Onshore natural gas transmission compression.
            ``(5) Underground natural gas storage.
            ``(6) Liquefied natural gas storage.
            ``(7) Liquefied natural gas import and export equipment.
            ``(8) Onshore petroleum and natural gas gathering and 
        boosting.
            ``(9) Onshore natural gas transmission pipeline.
    ``(e) Charge Amount.--The amount of a charge under subsection (c) 
for an applicable facility shall be equal to the product obtained by 
multiplying--
            ``(1) the number of metric tons of methane emissions 
        reported pursuant to subpart W of part 98 of title 40, Code of 
        Federal Regulations, for the applicable facility that exceed 
        the applicable annual waste emissions threshold listed in 
        subsection (f) during the previous reporting period; and
            ``(2)(A) $900 for emissions reported for calendar year 
        2024;
            ``(B) $1,200 for emissions reported for calendar year 2025; 
        or
            ``(C) $1,500 for emissions reported for calendar year 2026 
        and each year thereafter.
    ``(f) Waste Emissions Threshold.--
            ``(1) Petroleum and natural gas production.--With respect 
        to imposing and collecting the charge under subsection (c) for 
        an applicable facility in an industry segment listed in 
        paragraph (1) or (2) of subsection (d), the Administrator shall 
        impose and collect the charge on the reported metric tons of 
        methane emissions from such facility that exceed--
                    ``(A) 0.20 percent of the natural gas sent to sale 
                from such facility; or
                    ``(B) 10 metric tons of methane per million barrels 
                of oil sent to sale from such facility, if such 
                facility sent no natural gas to sale.
            ``(2) Nonproduction petroleum and natural gas systems.--
        With respect to imposing and collecting the charge under 
        subsection (c) for an applicable facility in an industry 
        segment listed in paragraph (3), (6), (7), or (8) of subsection 
        (d), the Administrator shall impose and collect the charge on 
        the reported metric tons of methane emissions that exceed 0.05 
        percent of the natural gas sent to sale from or through such 
        facility.
            ``(3) Natural gas transmission.--With respect to imposing 
        and collecting the charge under subsection (c) for an 
        applicable facility in an industry segment listed in paragraph 
        (4), (5), or (9) of subsection (d), the Administrator shall 
        impose and collect the charge on the reported metric tons of 
        methane emissions that exceed 0.11 percent of the natural gas 
        sent to sale from or through such facility.
            ``(4) Common ownership or control.--In calculating the 
        total emissions charge obligation for facilities under common 
        ownership or control, the Administrator shall allow for the 
        netting of emissions by reducing the total obligation to 
        account for facility emissions levels that are below the 
        applicable thresholds within and across all applicable segments 
        identified in subsection (d).
            ``(5) Exemption.--Charges shall not be imposed pursuant to 
        paragraph (1) on emissions that exceed the waste emissions 
        threshold specified in such paragraph if such emissions are 
        caused by unreasonable delay, as determined by the 
        Administrator, in environmental permitting of gathering or 
        transmission infrastructure necessary for offtake of increased 
        volume as a result of methane emissions mitigation 
        implementation.
            ``(6) Exemption for regulatory compliance.--
                    ``(A) In general.--Charges shall not be imposed 
                pursuant to subsection (c) on an applicable facility 
                that is subject to and in compliance with methane 
                emissions requirements pursuant to subsections (b) and 
                (d) of section 111 upon a determination by the 
                Administrator that--
                            ``(i) methane emissions standards and plans 
                        pursuant to subsections (b) and (d) of section 
                        111 have been approved and are in effect in all 
                        States with respect to the applicable 
                        facilities; and
                            ``(ii) compliance with the requirements 
                        described in clause (i) will result in 
                        equivalent or greater emissions reductions as 
                        would be achieved by the proposed rule of the 
                        Administrator entitled `Standards of 
                        Performance for New, Reconstructed, and 
                        Modified Sources and Emissions Guidelines for 
                        Existing Sources: Oil and Natural Gas Sector 
                        Climate Review' (86 Fed. Reg. 63110 (November 
                        15, 2021)), if such rule had been finalized and 
                        implemented.
                    ``(B) Resumption of charge.--If the conditions in 
                clause (i) or (ii) of subparagraph (A) cease to apply 
                after the Administrator has made the determination in 
                that subparagraph, the applicable facility will again 
                be subject to the charge under subsection (c) beginning 
                in the first calendar year in which the conditions in 
                either clause (i) or (ii) of that subparagraph are no 
                longer met.
            ``(7) Plugged wells.--Charges shall not be imposed with 
        respect to the emissions rate from any well that has been 
        permanently shut-in and plugged in the previous year in 
        accordance with all applicable closure requirements, as 
        determined by the Administrator.
    ``(g) Period.--The charge under subsection (c) shall be imposed and 
collected beginning with respect to emissions reported for calendar 
year 2024 and for each year thereafter.
    ``(h) Reporting.--Not later than 2 years after the date of 
enactment of this section, the Administrator shall revise the 
requirements of subpart W of part 98 of title 40, Code of Federal 
Regulations, to ensure the reporting under such subpart, and 
calculation of charges under subsections (e) and (f) of this section, 
are based on empirical data, including data collected pursuant to 
subsection (a)(4), accurately reflect the total methane emissions and 
waste emissions from the applicable facilities, and allow owners and 
operators of applicable facilities to submit empirical emissions data, 
in a manner to be prescribed by the Administrator, to demonstrate the 
extent to which a charge under subsection (c) is owed.
    ``(i) Definition of Greenhouse Gas.--In this section, the term 
`greenhouse gas' means the air pollutants carbon dioxide, 
hydrofluorocarbons, methane, nitrous oxide, perfluorocarbons, and 
sulfur hexafluoride.''.

SEC. 60114. CLIMATE POLLUTION REDUCTION GRANTS.

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

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

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

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

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

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

    (a) In General.--In addition to amounts otherwise available, there 
is appropriated to the Administrator of the Environmental Protection 
Agency for fiscal year 2022, out of any money in the Treasury not 
otherwise appropriated, $100,000,000, to remain available until 
September 30, 2026, for necessary administrative costs of the 
Administrator of the Environmental Protection Agency to carry out this 
section and to develop and carry out a program, in consultation with 
the Administrator of the Federal Highway Administration for 
construction materials used in transportation projects and the 
Administrator of General Services for construction materials used for 
Federal buildings, to identify and label construction materials and 
products that have substantially lower levels of embodied greenhouse 
gas emissions associated with all relevant stages of production, use, 
and disposal, as compared to estimated industry averages of similar 
materials or products, as determined by the Administrator of the 
Environmental Protection Agency, based on--
            (1) environmental product declarations; or
            (2) determinations by State agencies, as verified by the 
        Administrator of the Environmental Protection Agency.
    (b) Definition of Greenhouse Gas.--In this section, the term 
``greenhouse gas'' means the air pollutants carbon dioxide, 
hydrofluorocarbons, methane, nitrous oxide, perfluorocarbons, and 
sulfur hexafluoride.

                    Subtitle B--Hazardous Materials

SEC. 60201. ENVIRONMENTAL AND CLIMATE JUSTICE BLOCK GRANTS.

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

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

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

          Subtitle C--United States Fish and Wildlife Service

SEC. 60301. ENDANGERED SPECIES ACT RECOVERY PLANS.

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

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

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

              Subtitle D--Council on Environmental Quality

SEC. 60401. ENVIRONMENTAL AND CLIMATE DATA COLLECTION.

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

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

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

             Subtitle E--Transportation and Infrastructure

SEC. 60501. NEIGHBORHOOD ACCESS AND EQUITY GRANT PROGRAM.

    (a) In General.--Chapter 1 of title 23, United States Code, is 
amended by adding at the end the following:
``Sec. 177. Neighborhood access and equity grant program
    ``(a) In General.--In addition to amounts otherwise available, 
there is appropriated for fiscal year 2022, out of any money in the 
Treasury not otherwise appropriated, $1,893,000,000, to remain 
available until September 30, 2026, to the Administrator of the Federal 
Highway Administration for competitive grants to eligible entities 
described in subsection (b)--
            ``(1) to improve walkability, safety, and affordable 
        transportation access through projects that are context-
        sensitive--
                    ``(A) to remove, remediate, or reuse a facility 
                described in subsection (c)(1);
                    ``(B) to replace a facility described in subsection 
                (c)(1) with a facility that is at-grade or lower speed;
                    ``(C) to retrofit or cap a facility described in 
                subsection (c)(1);
                    ``(D) to build or improve complete streets, 
                multiuse trails, regional greenways, or active 
                transportation networks and spines; or
                    ``(E) to provide affordable access to essential 
                destinations, public spaces, or transportation links 
                and hubs;
            ``(2) to mitigate or remediate negative impacts on the 
        human or natural environment resulting from a facility 
        described in subsection (c)(2) in a disadvantaged or 
        underserved community through--
                    ``(A) noise barriers to reduce impacts resulting 
                from a facility described in subsection (c)(2);
                    ``(B) technologies, infrastructure, and activities 
                to reduce surface transportation-related greenhouse gas 
                emissions and other air pollution;
                    ``(C) natural infrastructure, pervious, permeable, 
                or porous pavement, or protective features to reduce or 
                manage stormwater run-off resulting from a facility 
                described in subsection (c)(2);
                    ``(D) infrastructure and natural features to reduce 
                or mitigate urban heat island hot spots in the 
                transportation right-of-way or on surface 
                transportation facilities; or
                    ``(E) safety improvements for vulnerable road 
                users; and
            ``(3) for planning and capacity building activities in 
        disadvantaged or underserved communities to--
                    ``(A) identify, monitor, or assess local and 
                ambient air quality, emissions of transportation 
                greenhouse gases, hot spot areas of extreme heat or 
                elevated air pollution, gaps in tree canopy coverage, 
                or flood prone transportation infrastructure;
                    ``(B) assess transportation equity or pollution 
                impacts and develop local anti-displacement policies 
                and community benefit agreements;
                    ``(C) conduct predevelopment activities for 
                projects eligible under this subsection;
                    ``(D) expand public participation in transportation 
                planning by individuals and organizations in 
                disadvantaged or underserved communities; or
                    ``(E) administer or obtain technical assistance 
                related to activities described in this subsection.
    ``(b) Eligible Entities Described.--An eligible entity referred to 
in subsection (a) is--
            ``(1) a State;
            ``(2) a unit of local government;
            ``(3) a political subdivision of a State;
            ``(4) an entity described in section 207(m)(1)(E);
            ``(5) a territory of the United States;
            ``(6) a special purpose district or public authority with a 
        transportation function;
            ``(7) a metropolitan planning organization (as defined in 
        section 134(b)(2)); or
            ``(8) with respect to a grant described in subsection 
        (a)(3), in addition to an eligible entity described in 
        paragraphs (1) through (7), a nonprofit organization or 
        institution of higher education that has entered into a 
        partnership with an eligible entity described in paragraphs (1) 
        through (7).
    ``(c) Facility Described.--A facility referred to in subsection (a) 
is--
            ``(1) a surface transportation facility for which high 
        speeds, grade separation, or other design factors create an 
        obstacle to connectivity within a community; or
            ``(2) a surface transportation facility which is a source 
        of air pollution, noise, stormwater, or other burden to a 
        disadvantaged or underserved community.
    ``(d) Investment in Economically Disadvantaged Communities.--
            ``(1) In general.--In addition to amounts otherwise 
        available, there is appropriated for fiscal year 2022, out of 
        any money in the Treasury not otherwise appropriated, 
        $1,262,000,000, to remain available until September 30, 2026, 
        to the Administrator of the Federal Highway Administration to 
        provide grants for projects in communities described in 
        paragraph (2) for the same purposes and administered in the 
        same manner as described in subsection (a).
            ``(2) Communities described.--A community referred to in 
        paragraph (1) is a community that--
                    ``(A) is economically disadvantaged, underserved, 
                or located in an area of persistent poverty;
                    ``(B) has entered or will enter into a community 
                benefits agreement with representatives of the 
                community;
                    ``(C) has an anti-displacement policy, a community 
                land trust, or a community advisory board in effect; or
                    ``(D) has demonstrated a plan for employing local 
                residents in the area impacted by the activity or 
                project proposed under this section.
    ``(e) Administration.--
            ``(1) In general.--A project carried out under subsection 
        (a) or (d) shall be treated as a project on a Federal-aid 
        highway.
            ``(2) Compliance with existing requirements.--Funds made 
        available for a grant under this section and administered by or 
        through a State department of transportation shall be expended 
        in compliance with the U.S. Department of Transportation's 
        Disadvantaged Business Enterprise Program.
    ``(f) Cost Share.--The Federal share of the cost of an activity 
carried out using a grant awarded under this section shall be not more 
than 80 percent, except that the Federal share of the cost of a project 
in a disadvantaged or underserved community may be up to 100 percent.
    ``(g) Technical Assistance.--In addition to amounts otherwise 
available, there is appropriated for fiscal year 2022, out of any money 
in the Treasury not otherwise appropriated, $50,000,000, to remain 
available until September 30, 2026, to the Administrator of the Federal 
Highway Administration for--
            ``(1) guidance, technical assistance, templates, training, 
        or tools to facilitate efficient and effective contracting, 
        design, and project delivery by units of local government;
            ``(2) subgrants to units of local government to build 
        capacity of such units of local government to assume 
        responsibilities to deliver surface transportation projects; 
        and
            ``(3) operations and administration of the Federal Highway 
        Administration.
    ``(h) Limitations.--Amounts made available under this section shall 
not--
            ``(1) be subject to any restriction or limitation on the 
        total amount of funds available for implementation or execution 
        of programs authorized for Federal-aid highways; and
            ``(2) be used for a project for additional through travel 
        lanes for single-occupant passenger vehicles.''.
    (b) Clerical Amendment.--The analysis for chapter 1 of title 23, 
United States Code, is amended by adding at the end the following:

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

SEC. 60502. ASSISTANCE FOR FEDERAL BUILDINGS.

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

SEC. 60503. USE OF LOW-CARBON MATERIALS.

    (a) Appropriation.--In addition to amounts otherwise available, 
there is appropriated for fiscal year 2022, out of any money in the 
Treasury not otherwise appropriated, $2,150,000,000, to remain 
available until September 30, 2026, to be deposited in the Federal 
Buildings Fund established under section 592 of title 40, United States 
Code, to acquire and install materials and products for use in the 
construction or alteration of buildings under the jurisdiction, 
custody, and control of the General Services Administration that have 
substantially lower levels of embodied greenhouse gas emissions 
associated with all relevant stages of production, use, and disposal as 
compared to estimated industry averages of similar materials or 
products, as determined by the Administrator of the Environmental 
Protection Agency.
    (b) Definition of Greenhouse Gas.--In this section, the term 
``greenhouse gas'' means the air pollutants carbon dioxide, 
hydrofluorocarbons, methane, nitrous oxide, perfluorocarbons, and 
sulfur hexafluoride.

SEC. 60504. GENERAL SERVICES ADMINISTRATION EMERGING TECHNOLOGIES.

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

SEC. 60505. ENVIRONMENTAL REVIEW IMPLEMENTATION FUNDS.

    (a) In General.--Chapter 1 of title 23, United States Code, is 
further amended by adding at the end the following:
``Sec. 178. Environmental review implementation funds
    ``(a) Establishment.--In addition to amounts otherwise available, 
for fiscal year 2022, there is appropriated to the Administrator, out 
of any money in the Treasury not otherwise appropriated, $100,000,000, 
to remain available until September 30, 2026, for the purpose of 
facilitating the development and review of documents for the 
environmental review process for proposed projects through--
            ``(1) the provision of guidance, technical assistance, 
        templates, training, or tools to facilitate an efficient and 
        effective environmental review process for surface 
        transportation projects and any administrative expenses of the 
        Federal Highway Administration to conduct activities described 
        in this section; and
            ``(2) providing funds made available under this subsection 
        to eligible entities--
                    ``(A) to build capacity of such eligible entities 
                to conduct environmental review processes;
                    ``(B) to facilitate the environmental review 
                process for proposed projects by--
                            ``(i) defining the scope or study areas;
                            ``(ii) identifying impacts, mitigation 
                        measures, and reasonable alternatives;
                            ``(iii) preparing planning and 
                        environmental studies and other documents prior 
                        to and during the environmental review process, 
                        for potential use in the environmental review 
                        process in accordance with applicable statutes 
                        and regulations;
                            ``(iv) conducting public engagement 
                        activities; and
                            ``(v) carrying out permitting or other 
                        activities, as the Administrator determines to 
                        be appropriate, to support the timely 
                        completion of an environmental review process 
                        required for a proposed project; and
                    ``(C) for administrative expenses of the eligible 
                entity to conduct any of the activities described in 
                subparagraphs (A) and (B).
    ``(b) Cost Share.--
            ``(1) In general.--The Federal share of the cost of an 
        activity carried out under this section by an eligible entity 
        shall be not more than 80 percent.
            ``(2) Source of funds.--The non-Federal share of the cost 
        of an activity carried out under this section by an eligible 
        entity may be satisfied using funds made available to the 
        eligible entity under any other Federal, State, or local grant 
        program.
    ``(c) Definitions.--In this section:
            ``(1) Administrator.--The term `Administrator' means the 
        Administrator of the Federal Highway Administration.
            ``(2) Eligible entity.--The term `eligible entity' means--
                    ``(A) a State;
                    ``(B) a unit of local government;
                    ``(C) a political subdivision of a State;
                    ``(D) a territory of the United States;
                    ``(E) an entity described in section 207(m)(1)(E);
                    ``(F) a recipient of funds under section 203; or
                    ``(G) a metropolitan planning organization (as 
                defined in section 134(b)(2)).
            ``(3) Environmental review process.--The term 
        `environmental review process' has the meaning given the term 
        in section 139(a)(5).
            ``(4) Proposed project.--The term `proposed project' means 
        a surface transportation project for which an environmental 
        review process is required.''.
    (b) Clerical Amendment.--The analysis for chapter 1 of title 23, 
United States Code, is further amended by adding at the end the 
following:

``178. Environmental review implementation funds.''.

SEC. 60506. LOW-CARBON TRANSPORTATION MATERIALS GRANTS.

    (a) In General.--Chapter 1 of title 23, United States Code, is 
further amended by adding at the end the following:
``Sec. 179. Low-carbon transportation materials grants
    ``(a) Federal Highway Administration Appropriation.--In addition to 
amounts otherwise available, there is appropriated for fiscal year 
2022, out of any money in the Treasury not otherwise appropriated, 
$2,000,000,000, to remain available until September 30, 2026, to the 
Administrator to reimburse or provide incentives to eligible recipients 
for the use, in projects, of construction materials and products that 
have substantially lower levels of embodied greenhouse gas emissions 
associated with all relevant stages of production, use, and disposal as 
compared to estimated industry averages of similar materials or 
products, as determined by the Administrator of the Environmental 
Protection Agency, and for the operations and administration of the 
Federal Highway Administration to carry out this section.
    ``(b) Reimbursement of Incremental Costs; Incentives.--
            ``(1) In general.--The Administrator shall, subject to the 
        availability of funds, either reimburse or provide incentives 
        to eligible recipients that use low-embodied carbon 
        construction materials and products on a project funded under 
        this title.
            ``(2) Reimbursement and incentive amounts.--
                    ``(A) Incremental amount.--The amount of 
                reimbursement under paragraph (1) shall be equal to the 
                incrementally higher cost of using such materials 
                relative to the cost of using traditional materials, as 
                determined by the eligible recipient and verified by 
                the Administrator.
                    ``(B) Incentive amount.--The amount of an incentive 
                under paragraph (1) shall be equal to 2 percent of the 
                cost of using low-embodied carbon construction 
                materials and products on a project funded under this 
                title.
            ``(3) Federal share.--If a reimbursement or incentive is 
        provided under paragraph (1), the total Federal share payable 
        for the project for which the reimbursement or incentive is 
        provided shall be up to 100 percent.
            ``(4) Limitations.--
                    ``(A) In general.--The Administrator shall only 
                provide a reimbursement or incentive under paragraph 
                (1) for a project on a--
                            ``(i) Federal-aid highway;
                            ``(ii) tribal transportation facility;
                            ``(iii) Federal lands transportation 
                        facility; or
                            ``(iv) Federal lands access transportation 
                        facility.
                    ``(B) Other restrictions.--Amounts made available 
                under this section shall not be subject to any 
                restriction or limitation on the total amount of funds 
                available for implementation or execution of programs 
                authorized for Federal-aid highways.
                    ``(C) Single occupant passenger vehicles.--Funds 
                made available under this section shall not be used for 
                projects that result in additional through travel lanes 
                for single occupant passenger vehicles.
            ``(5) Materials identification.--The Administrator shall 
        review the low-embodied carbon construction materials and 
        products identified by the Administrator of the Environmental 
        Protection Agency and shall identify low-embodied carbon 
        construction materials and products--
                    ``(A) appropriate for use in projects eligible 
                under this title; and
                    ``(B) eligible for reimbursement or incentives 
                under this section.
    ``(c) Definitions.--In this section:
            ``(1) Administrator.--The term `Administrator' means the 
        Administrator of the Federal Highway Administration.
            ``(2) Eligible recipient.--The term `eligible recipient' 
        means--
                    ``(A) a State;
                    ``(B) a unit of local government;
                    ``(C) a political subdivision of a State;
                    ``(D) a territory of the United States;
                    ``(E) an entity described in section 207(m)(1)(E);
                    ``(F) a recipient of funds under section 203;
                    ``(G) a metropolitan planning organization (as 
                defined in section 134(b)(2)); or
                    ``(H) a special purpose district or public 
                authority with a transportation function.
            ``(3) Greenhouse gas.--The term `greenhouse gas' means the 
        air pollutants carbon dioxide, hydrofluorocarbons, methane, 
        nitrous oxide, perfluorocarbons, and sulfur hexafluoride.''.
    (b) Clerical Amendment.--The analysis for chapter 1 of title 23, 
United States Code, is further amended by adding at the end the 
following:

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

   TITLE VII--COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS

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

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

SEC. 70002. UNITED STATES POSTAL SERVICE CLEAN FLEETS.

    In addition to amounts otherwise available, there is appropriated 
to the United States Postal Service for fiscal year 2022, out of any 
money in the Treasury not otherwise appropriated, the following 
amounts, to be deposited into the Postal Service Fund established under 
section 2003 of title 39, United States Code:
            (1) $1,290,000,000, to remain available through September 
        30, 2031, for the purchase of zero-emission delivery vehicles.
            (2) $1,710,000,000, to remain available through September 
        30, 2031, for the purchase, design, and installation of the 
        requisite infrastructure to support zero-emission delivery 
        vehicles at facilities that the United States Postal Service 
        owns or leases from non-Federal entities.

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

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

SEC. 70004. GOVERNMENT ACCOUNTABILITY OFFICE OVERSIGHT.

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

SEC. 70005. OFFICE OF MANAGEMENT AND BUDGET OVERSIGHT.

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

SEC. 70006. FEMA BUILDING MATERIALS PROGRAM.

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

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

    In addition to amounts otherwise available, there is appropriated 
to the Federal Permitting Improvement Steering Council Environmental 
Review Improvement Fund, out of any money in the Treasury not otherwise 
appropriated, $350,000,000 for fiscal year 2023, to remain available 
through September 30, 2031.

                TITLE VIII--COMMITTEE ON INDIAN AFFAIRS

SEC. 80001. TRIBAL CLIMATE RESILIENCE.

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

SEC. 80002. NATIVE HAWAIIAN CLIMATE RESILIENCE.

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

SEC. 80003. TRIBAL ELECTRIFICATION PROGRAM.

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

SEC. 80004. EMERGENCY DROUGHT RELIEF FOR TRIBES.

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

            Attest:

                                                             Secretary.
117th CONGRESS

  2d Session

                               H.R. 5376

_______________________________________________________________________

                               AMENDMENT