[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.