    [Congressional Bills 117th Congress]
    [From the U.S. Government Publishing Office]
    [H.R. 5376 Enrolled Bill (ENR)]

            H.R.5376

                        One Hundred Seventeenth Congress

                                     of the

                            United States of America

                              AT THE SECOND SESSION

               Begun and held at the City of Washington on Monday,
              the third day of January, two thousand and twenty-two

                                     An Act

     To provide for reconciliation pursuant to title II of S. Con. Res. 14.

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

                         TITLE I--COMMITTEE ON FINANCE
                         Subtitle A--Deficit Reduction

    SECTION 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.

                                   Speaker of the House of Representatives.

                                Vice President of the United States and
                                                   President of the Senate.