[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 685 Introduced in Senate (IS)]

<DOC>






117th CONGRESS
  1st Session
                                 S. 685

To amend the Internal Revenue Code of 1986 to establish a carbon fee to 
        reduce greenhouse gas emissions, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 10, 2021

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

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to establish a carbon fee to 
        reduce greenhouse gas emissions, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``America's Clean Future Fund Act''.

SEC. 2. CLIMATE CHANGE FINANCE CORPORATION.

    (a) Establishment.--
            (1) In general.--There is established in the executive 
        branch an independent agency, to be known as the ``Climate 
        Change Finance Corporation'' (referred to in this section as 
        the ``C2FC''), which shall finance clean energy and climate 
        change resiliency activities in accordance with this section.
            (2) Mission.--
                    (A) In general.--The mission of the C2FC is to 
                combat and reduce the effects of climate change by 
                building resilience among communities facing harmful 
                impacts of climate change and supporting a dramatic 
                reduction in greenhouse gas emissions--
                            (i) through the deployment of clean and 
                        renewable technology, resilient infrastructure, 
                        research and development, the commercialization 
                        of new technology, clean energy manufacturing, 
                        and industrial decarbonization; and
                            (ii) to meet the goals of--
                                    (I) by 2030, a net reduction of 
                                greenhouse gas emissions by 45 percent, 
                                based on 2018 levels; and
                                    (II) by 2050, a net reduction of 
                                greenhouse gas emissions by 100 
                                percent, based on 2018 levels.
                    (B) Activities.--The C2FC shall carry out the 
                mission described in subparagraph (A) by--
                            (i) financing investments in clean energy 
                        and transportation, resiliency, and 
                        infrastructure;
                            (ii) using Federal investment to encourage 
                        the infusion of private capital and investment 
                        into the clean energy and resilient 
                        infrastructure sectors, while creating new 
                        workforce opportunities; and
                            (iii) providing financing in cases where 
                        private capital cannot be leveraged, while 
                        minimizing competition with private investment.
            (3) Exercise of powers.--Except as otherwise provided 
        expressly by law, all Federal laws dealing with public or 
        Federal contracts, property, works, officers, employees, 
        budgets, or funds, including the provisions of chapters 5 and 7 
        of title 5, United States Code, shall apply to the exercise of 
        the powers of the C2FC.
    (b) Board of Directors.--
            (1) In general.--The management of the C2FC shall be vested 
        in a Board of Directors (referred to in this section as the 
        ``Board'') consisting of 7 members, who shall be appointed by 
        the President, by and with the advice and consent of the 
        Senate.
            (2) Chairperson and vice chairperson.--
                    (A) In general.--A Chairperson and Vice Chairperson 
                of the Board shall be appointed by the President, by 
                and with the advice and consent of the Senate, from 
                among the individuals appointed to the Board under 
                paragraph (1).
                    (B) Term.--An individual--
                            (i) shall serve as Chairperson or Vice 
                        Chairperson of the Board for a 3-year term; and
                            (ii) may be renominated for the position 
                        until the term of that individual on the Board 
                        under paragraph (3)(C) expires.
            (3) Board members.--
                    (A) Citizenship required.--Each member of the Board 
                shall be an individual who is a citizen of the United 
                States.
                    (B) Representation.--The members of the Board shall 
                fairly represent agricultural, educational, research, 
                industrial, nongovernmental, labor, and commercial 
                interests throughout the United States.
                    (C) Term.--
                            (i) In general.--Except as otherwise 
                        provided in this section, each member of the 
                        Board--
                                    (I) shall be appointed for a term 
                                of 6 years; and
                                    (II) may be reappointed for 1 
                                additional term.
                            (ii) Initial staggered terms.--Of the 
                        members first appointed to the Board--
                                    (I) 2 shall each be appointed for a 
                                term of 2 years;
                                    (II) 3 shall each be appointed for 
                                a term of 4 years; and
                                    (III) 2 shall each be appointed for 
                                a term of 6 years.
            (4) Initial meeting.--Not later than 30 days after the date 
        on which all members of the Board are appointed under paragraph 
        (1), the Board shall hold an initial meeting.
    (c) Working Groups.--
            (1) In general.--The Board shall create, oversee, and 
        incorporate feedback from the following working groups (each 
        referred to in this section as a ``working group''):
                    (A) An environmental justice working group.
                    (B) A worker and community transition assistance 
                working group.
                    (C) A research and innovation working group.
            (2) Working group members.--
                    (A) In general.--Each working group shall--
                            (i) be chaired by a Board member; and
                            (ii) comprise not less than 10 and not more 
                        than 20 individuals, who shall be experts, 
                        members of directly impacted communities 
                        relating to the subject matter of the working 
                        group, and other relevant stakeholders.
                    (B) Diversity.--Individuals on a working group 
                shall, to the maximum extent practicable, represent--
                            (i) a diverse array of interests related to 
                        the subject matter of the working group; and
                            (ii) diverse geographical, racial, 
                        religious, gender, educational, age, 
                        disability, and socioeconomic backgrounds.
            (3) Meetings.--Each working group shall meet not less than 
        2 times per year.
            (4) Community and stakeholder engagement.--
                    (A) In general.--Each working group shall create 
                and engage in meaningful community and stakeholder 
                involvement opportunities, including through regular 
                community engagement activities, for purposes of--
                            (i) maintaining up-to-date situational 
                        awareness about the needs of relevant 
                        communities and stakeholders;
                            (ii) using the feedback obtained through 
                        those opportunities to inform the advice of the 
                        working group to the Board; and
                            (iii) providing a mechanism for direct and 
                        substantial community feedback relating to the 
                        investment plan and the funding decisions of 
                        the C2FC.
                    (B) Public awareness.--Each working group shall 
                inform the public about C2FC investment by engaging in 
                public awareness campaigns, which shall target relevant 
                communities through electronic media, newspapers, 
                radio, direct mailings, canvassing, or other outreach 
                methods suited for the relevant community.
                    (C) Broad participation.--In carrying out 
                subparagraph (A), each working group shall, to the 
                maximum extent practicable, maximize participation from 
                a broad group of stakeholders, including by holding 
                multiple meetings with significant advance notice and 
                holding meetings at different times and in multiple 
                languages.
            (5) Tasks.--Each working group shall, as it relates to the 
        subject matter of the working group--
                    (A) advise and provide general input to the Board 
                regarding loans and grants provided by the C2FC; and
                    (B) consult with and, based on the activities 
                described in paragraph (4), provide recommendations to, 
                the Board in the development of and updates to the 
                investment plan of the C2FC.
    (d) Investment Plan.--
            (1) In general.--The Board, in consultation with each 
        working group described in subsection (c)(1), shall develop an 
        investment plan (referred to in this subsection as the 
        ``investment plan'') for the C2FC in accordance with this 
        subsection.
            (2) Purposes.--The purposes of the investment plan are--
                    (A) to ensure that investments made by the C2FC--
                            (i) are equitable and reach the prioritized 
                        communities described in subsection (e)(2);
                            (ii) are effective at progressing towards 
                        the goals described in subsection 
                        (a)(2)(A)(ii);
                            (iii) support the advancement of research 
                        in clean technologies and resilience; and
                            (iv) are transparent to the public; and
                    (B) to provide methods and standards by which the 
                Board and the working groups described in subsection 
                (c)(1) shall choose projects in which to invest.
            (3) Distribution of grant funds.--The initial investment 
        plan shall require that, of the total amount of grant funds 
        provided under subsection (e)(3)(A) each year, not less than 40 
        percent shall be used to benefit communities described in 
        subsection (e)(2)(A).
            (4) Investment plan updates.--
                    (A) In general.--The Board, in consultation with 
                each working group described in subsection (c)(1), 
                shall update the investment plan not later than 
                December 31, 2023, and every 4 years thereafter, 
                including by taking into account--
                            (i) the current needs of the prioritized 
                        communities described in subsection (e)(2);
                            (ii) the effectiveness of the previous 
                        investment plan in addressing the needs of 
                        those communities;
                            (iii) the current state of relevant 
                        research and technology;
                            (iv) the resiliency needs of local 
                        communities;
                            (v) the goals described in subsection 
                        (a)(2)(A)(ii); and
                            (vi) the 2 most recent program reviews 
                        conducted under subsection (f).
                    (B) Effectiveness.--An investment plan shall remain 
                in effect until the date on which the Board approves an 
                updated investment plan.
                    (C) Public input.--In updating the investment plan, 
                the Board and the working groups described in 
                subsection (c)(1) shall--
                            (i) engage stakeholders and the public in a 
                        public comment and feedback process; and
                            (ii) ensure that the prioritized 
                        communities described in subsection (e)(2) have 
                        access to participate in that process.
            (5) Public updates.--The Board shall make publicly 
        available on a quarterly basis information relating to the 
        expenditure of funds under the investment plan.
    (e) Investment Tools.--
            (1) Definitions.--In this subsection:
                    (A) Community of color.--The term ``community of 
                color'' means a geographically distinct area in which 
                the population of any of the following categories of 
                individuals is higher than the average population of 
                that category for the State in which the community is 
                located:
                            (i) Black.
                            (ii) African American.
                            (iii) Asian.
                            (iv) Pacific Islander.
                            (v) Other non-White race.
                            (vi) Hispanic.
                            (vii) Latino.
                            (viii) Linguistically isolated.
                    (B) Eligible borrower.--The term ``eligible 
                borrower'' means any person, including a business owner 
                or project developer, that seeks a loan to carry out 
                approved practices or projects described in 
                subparagraph (A)(i) of paragraph (3) from an eligible 
                lender that may receive a loan guarantee under that 
                paragraph for that loan, according to criteria 
                determined by the C2FC.
                    (C) Eligible entity.--The term ``eligible entity'' 
                means--
                            (i) a State;
                            (ii) an Indian Tribe;
                            (iii) a unit of local government; and
                            (iv) a research and development institution 
                        (including a National Laboratory).
                    (D) Eligible lender.--The term ``eligible lender'' 
                means--
                            (i) a Federal- or State-chartered bank;
                            (ii) a Federal- or State-chartered credit 
                        union;
                            (iii) an agricultural credit corporation;
                            (iv) a United States Green Bank 
                        Institution;
                            (v) a community development financial 
                        institution (as defined in section 103 of the 
                        Community Development Banking and Financial 
                        Institutions Act of 1994 (12 U.S.C. 4702));
                            (vi) a minority depository institution (as 
                        defined in section 308(b) of the Financial 
                        Institutions Reform, Recovery, and Enforcement 
                        Act of 1989 (12 U.S.C. 1463 note; Public Law 
                        101-73)); and
                            (vii) any other lender that the Board 
                        determines has a demonstrated ability to 
                        underwrite and service loans for the intended 
                        approved practice for which the loan will be 
                        used.
                    (E) Environmental justice community.--The term 
                ``environmental justice community'' means a community 
                with significant representation of communities of 
                color, low-income communities, or Tribal and indigenous 
                communities that experiences, or is at risk of 
                experiencing, higher or more adverse human health or 
                environmental effects.
                    (F) 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).
                    (G) Low-income community.--The term ``low-income 
                community'' means any census block group in which 30 
                percent or more of the population are individuals with 
                an annual household income equal to, or less than, the 
                greater of--
                            (i) an amount equal to 80 percent of the 
                        median income of the area in which the 
                        household is located, as reported by the 
                        Department of Housing and Urban Development; 
                        and
                            (ii) 200 percent of the Federal poverty 
                        line.
                    (H) State.--The term ``State'' means--
                            (i) a State;
                            (ii) the District of Columbia;
                            (iii) the Commonwealth of Puerto Rico; and
                            (iv) any other territory or possession of 
                        the United States.
            (2) Community prioritization.--In providing financial and 
        other assistance under paragraph (3), the C2FC shall give 
        priority to, as determined by the C2FC--
                    (A) environmental justice communities, communities 
                with populations of color, communities of color, 
                indigenous communities, and low-income communities 
                that--
                            (i) experience a disproportionate burden of 
                        the negative human health and environmental 
                        impacts of pollution or other environmental 
                        hazards, such as natural disasters; or
                            (ii) may not have access to public 
                        information and opportunities for meaningful 
                        public participation relating to human health 
                        and environmental planning, regulations, and 
                        enforcement;
                    (B) deindustrialized communities or communities 
                with significant local economic reliance on carbon-
                intensive industries;
                    (C) low-income communities at risk of impacts of 
                natural disasters or sea level rise exacerbated by 
                climate change;
                    (D) public or nonprofit entities that serve 
                dislocated workers, veterans, or individuals with a 
                barrier to employment; and
                    (E) communities that have minimal or no investment 
                in the approved practices and projects described in 
                paragraph (3)(A)(i).
            (3) Grants, loan guarantees, and other investment tools.--
                    (A) In general.--The C2FC--
                            (i) shall provide grants to eligible 
                        entities and loan guarantees to eligible 
                        lenders issuing loans to eligible borrowers for 
                        approved practices and projects relating to 
                        climate change mitigation and resilience 
                        measures, including--
                                    (I) energy efficiency upgrades to 
                                infrastructure;
                                    (II) electric, hydrogen, and clean 
                                transportation programs and deployment, 
                                including programs--
                                            (aa) to purchase personal 
                                        vehicles, commercial vehicles, 
                                        and public transportation 
                                        fleets and school bus fleets;
                                            (bb) to deploy electric 
                                        vehicle charging and hydrogen 
                                        infrastructure; and
                                            (cc) to develop and deploy 
                                        low carbon sustainable aviation 
                                        fuels;
                                    (III) clean energy and vehicle 
                                manufacturing research, demonstrations, 
                                and deployment;
                                    (IV) battery storage research, 
                                demonstrations, and deployment;
                                    (V) development or purchase of 
                                equipment for practices described in 
                                section 6;
                                    (VI) development and deployment of 
                                clean energy and clean technologies, 
                                with a focus on--
                                            (aa) carbon capture, 
                                        utilization, and sequestration, 
                                        bioenergy with carbon capture 
                                        and sequestration, direct air 
                                        capture, and infrastructure 
                                        associated with those 
                                        processes, including 
                                        construction of carrier 
                                        pipelines for the 
                                        transportation of anthropogenic 
                                        carbon dioxide;
                                            (bb) energy storage and 
                                        grid modernization;
                                            (cc) geothermal energy;
                                            (dd) commercial and 
                                        residential solar;
                                            (ee) wind energy; and
                                            (ff) any other clean 
                                        technology use or development, 
                                        as determined by the Board;
                                    (VII) measures that anticipate and 
                                prepare for climate change impacts, and 
                                reduce risks and enhance resilience to 
                                sea level rise, extreme weather events, 
                                heat island impacts, and other climate 
                                change impacts, including by--
                                            (aa) building resilient 
                                        energy, water, and 
                                        transportation infrastructure;
                                            (bb) providing 
                                        weatherization assistance for 
                                        low-income households; and
                                            (cc) increasing the 
                                        resilience of the agriculture 
                                        sector; and
                                    (VIII) natural infrastructure 
                                research, demonstrations, and 
                                deployment; and
                            (ii) may implement other investment tools 
                        and products approved by the Board, pursuant to 
                        subparagraph (C), to achieve the mission of the 
                        C2FC described in subsection (a)(2).
                    (B) Loan guarantees.--
                            (i) In general.--In providing loan 
                        guarantees under subparagraph (A), the C2FC 
                        shall cooperate with eligible lenders through 
                        agreements to participate on a deferred 
                        (guaranteed) basis.
                            (ii) Level of participation in guaranteed 
                        loans.--In providing a loan guarantee under 
                        subparagraph (A), the C2FC shall guarantee 75 
                        percent of the balance of the financing 
                        outstanding at the time of disbursement of the 
                        loan.
                            (iii) Interest rates.--Notwithstanding the 
                        provisions of the constitution of any State or 
                        the laws of any State limiting the rate or 
                        amount of interest that may be charged, taken, 
                        received, or reserved, the maximum legal rate 
                        of interest on any financing made on a deferred 
                        basis under this subsection shall not exceed a 
                        rate prescribed by the C2FC.
                            (iv) Guarantee fees.--
                                    (I) In general.--With respect to 
                                each loan guaranteed under this 
                                subsection (other than a loan that is 
                                repayable in 1 year or less), the C2FC 
                                shall collect a guarantee fee, which 
                                shall be payable by the eligible 
                                lender, and may be charged to the 
                                eligible borrower in accordance with 
                                subclause (II).
                                    (II) Borrower charges.--A guarantee 
                                fee described in subclause (I) charged 
                                to an eligible borrower shall not--
                                            (aa) exceed 2 percent of 
                                        the deferred participation 
                                        share of a total loan amount 
                                        that is equal to or less than 
                                        $150,000;
                                            (bb) exceed 3 percent of 
                                        the deferred participation 
                                        share of a total loan amount 
                                        that is greater than $150,000 
                                        but less than $700,000; or
                                            (cc) exceed 3.5 percent of 
                                        the deferred participation 
                                        share of a total loan amount 
                                        that is equal to or greater 
                                        than $700,000.
                    (C) Other investment tools and products.--
                            (i) In general.--The Board may, based on 
                        market needs, develop and implement any other 
                        investment tool or product necessary to achieve 
                        the mission of the C2FC described in subsection 
                        (a)(2) and the deployment of projects described 
                        in subparagraph (A)(i), including offering--
                                    (I) warehousing and aggregation 
                                credit facilities;
                                    (II) zero interest loans;
                                    (III) credit enhancements; and
                                    (IV) construction finance.
                            (ii) State and local green banks.--The 
                        Board shall provide--
                                    (I) funds to United States Green 
                                Bank Institutions as necessary to 
                                finance projects that are best served 
                                by those entities; and
                                    (II) technical assistance as 
                                necessary to States and localities 
                                seeking to establish green banks.
            (4) Wage rate requirements.--
                    (A) In general.--All laborers and mechanics 
                employed by eligible entities and eligible borrowers on 
                projects funded directly by or assisted in whole or in 
                part by the activities of the C2FC under this section 
                shall be paid at wages at rates not less than those 
                prevailing on projects of a similar character in the 
                locality as determined by the Secretary of Labor in 
                accordance with subchapter IV of chapter 31 of title 
                40, United States Code (commonly known as the ``Davis-
                Bacon Act'').
                    (B) Authority.--With respect to the labor standards 
                specified in subparagraph (A), the Secretary of Labor 
                shall have the authority and functions set forth in 
                Reorganization Plan Numbered 14 of 1950 (64 Stat. 1267; 
                5 U.S.C. App.) and section 3145 of title 40, United 
                States Code.
            (5) Buy america requirements.--
                    (A) In general.--All iron, steel, and manufactured 
                goods used for projects under this section shall be 
                produced in the United States.
                    (B) Waiver.--The Board may waive the requirement in 
                subparagraph (A) if the Board finds that--
                            (i) enforcing the requirement would be 
                        inconsistent with the public interest;
                            (ii) the iron, steel, and manufactured 
                        goods produced in the United States are not 
                        produced in a sufficient and reasonably 
                        available amount or are not of a satisfactory 
                        quality; or
                            (iii) enforcing the requirement will 
                        increase the overall cost of the project by 
                        more than 25 percent.
    (f) Program Review and Report.--Not later than 2 years after the 
date of enactment of this Act, and every 2 years thereafter, the Board 
shall--
            (1) conduct a review of the activities of the C2FC and 
        identify projects and funding opportunities that were a part of 
        the current investment plan; and
            (2) submit to Congress and make publicly available a report 
        that--
                    (A) describes the projects and funding 
                opportunities that have been most successful in 
                progressing towards the mission described in subsection 
                (a)(2) during the time period covered by the report;
                    (B) includes recommendations on the clean energy 
                and resiliency projects that should be prioritized in 
                forthcoming years to achieve that mission;
                    (C) quantifies the total amount and percentage of 
                funding given to prioritized communities described in 
                subsection (e)(2); and
                    (D) identifies barriers for disadvantaged groups to 
                receive C2FC funding and provides recommendations to 
                address those barriers.
    (g) Initial Capitalization.--There is appropriated to carry out 
this section, out of any funds in the Treasury not otherwise 
appropriated, $7,500,000,000 for each of fiscal years 2022 and 2023, to 
remain available until expended.

SEC. 3. CARBON FEE.

    (a) In General.--Chapter 38 of subtitle D of the Internal Revenue 
Code of 1986 is amended by adding at the end the following new 
subchapter:

                       ``Subchapter E--Carbon Fee

``Sec. 4691. Definitions.
``Sec. 4692. Carbon fee.
``Sec. 4693. Fee on noncovered fuel emissions.
``Sec. 4694. Refunds for carbon capture, sequestration, and 
                            utilization.
``Sec. 4695. Border adjustments.

``SEC. 4691. DEFINITIONS.

    ``For purposes of this subchapter--
            ``(1) Administrator.--The term `Administrator' means the 
        Administrator of the Environmental Protection Agency.
            ``(2) Carbon dioxide equivalent or co<INF>2</INF>-e.--The 
        term `carbon dioxide equivalent' or `CO<INF>2</INF>-e' means 
        the number of metric tons of carbon dioxide emissions with the 
        same global warming potential over a 100-year period as one 
        metric ton of another greenhouse gas.
            ``(3) Carbon-intensive product.--The term `carbon-intensive 
        product' means--
                    ``(A) iron, steel, steel mill products (including 
                pipe and tube), aluminum, cement, glass (including 
                flat, container, and specialty glass and fiberglass), 
                pulp, paper, chemicals, or industrial ceramics, and
                    ``(B) any manufactured product which the Secretary, 
                in consultation with the Administrator, the Secretary 
                of Commerce, and the Secretary of Energy, determines is 
                energy-intensive and trade-exposed (with the exception 
                of any covered fuel).
            ``(4) Covered entity.--The term `covered entity' means--
                    ``(A) in the case of crude oil--
                            ``(i) any operator of a United States 
                        refinery (as described in subsection (d)(1) of 
                        section 4611), and
                            ``(ii) any person entering such product 
                        into the United States for consumption, use, or 
                        warehousing (as described in subsection (d)(2) 
                        of such section),
                    ``(B) in the case of coal--
                            ``(i) any producer subject to the tax under 
                        section 4121, and
                            ``(ii) any importer of coal into the United 
                        States,
                    ``(C) in the case of natural gas--
                            ``(i) any entity which produces natural gas 
                        (as defined in section 613A(e)(2)) from a well 
                        located in the United States, and
                            ``(ii) any importer of natural gas into the 
                        United States,
                    ``(D) in the case of any noncovered fuel emissions, 
                the entity which is the source of such emissions, 
                provided that the total amount of carbon dioxide or 
                methane emitted by such entity for the preceding year 
                (as determined using the methodology required under 
                section 4692(e)(4)) was not less than 25,000 metric 
                tons, and
                    ``(E) any entity or class of entities which, as 
                determined by the Secretary, is transporting, selling, 
                or otherwise using a covered fuel in a manner which 
                emits a greenhouse gas into the atmosphere and which 
                has not been covered by the carbon fee, the fee on 
                noncovered fuel emissions, or the carbon border fee 
                adjustment.
            ``(5) Covered fuel.--The term `covered fuel' means crude 
        oil, natural gas, coal, or any other product derived from crude 
        oil, natural gas, or coal which shall be used so as to emit 
        greenhouse gases to the atmosphere.
            ``(6) Greenhouse gas.--The term `greenhouse gas'--
                    ``(A) has the meaning given such term in section 
                901 of the Energy Independence and Security Act of 2007 
                (42 U.S.C. 17321), and
                    ``(B) includes any other gases identified by rule 
                of the Administrator.
            ``(7) Greenhouse gas content.--The term `greenhouse gas 
        content' means the amount of greenhouse gases, expressed in 
        metric tons of CO<INF>2</INF>-e, which would be emitted to the 
        atmosphere by the use of a covered fuel.
            ``(8) Noncovered fuel emission.--The term `noncovered fuel 
        emission' means any carbon dioxide or methane emitted as a 
        result of the production, processing, transport, or use of any 
        product or material within the energy or industrial sectors--
                    ``(A) including any fugitive or process emissions 
                associated with the production, processing, or 
                transport of a covered fuel, and
                    ``(B) excluding any emissions from the combustion 
                or use of a covered fuel.
            ``(9) Qualified carbon oxide.--The term `qualified carbon 
        oxide' has the meaning given the term in section 45Q(c).
            ``(10) United states.--The term `United States' shall be 
        treated as including each possession of the United States 
        (including the Commonwealth of Puerto Rico and the Commonwealth 
        of the Northern Mariana Islands).

``SEC. 4692. CARBON FEE.

    ``(a) Definitions.--In this section:
            ``(1) Applicable period.--The term `applicable period' 
        means, with respect to any determination made by the Secretary 
        under subsection (e)(3) for any calendar year, the period--
                    ``(A) beginning on January 1, 2023, and
                    ``(B) ending on December 31 of the preceding 
                calendar year.
            ``(2) Cumulative emissions.--The term `cumulative 
        emissions' means an amount equal to the sum of any greenhouse 
        gas emissions resulting from the use of covered fuels and any 
        noncovered fuel emissions for all years during the applicable 
        period.
            ``(3) Cumulative emissions target.--The term `cumulative 
        emissions target' means an amount equal to the sum of the 
        emissions targets for all years during the applicable period.
            ``(4) Emissions target.--The term `emissions target' means 
        the target for greenhouse gas emissions during a calendar year 
        as determined under subsection (e)(1).
    ``(b) Carbon Fee.--During any calendar year that begins after 
December 31, 2022, there is imposed a carbon fee on any covered 
entity's use, sale, or transfer of any covered fuel.
    ``(c) Amount of the Carbon Fee.--The carbon fee imposed by this 
section is an amount equal to--
            ``(1) the greenhouse gas content of the covered fuel, 
        multiplied by
            ``(2) the carbon fee rate, as determined under subsection 
        (d).
    ``(d) Carbon Fee Rate.--The carbon fee rate shall be determined in 
accordance with the following:
            ``(1) In general.--The carbon fee rate, with respect to any 
        use, sale, or transfer during a calendar year, shall be--
                    ``(A) in the case of calendar year 2023, $25, and
                    ``(B) except as provided in paragraphs (2) and (3), 
                in the case of any calendar year after 2023, the amount 
                equal to the sum of--
                            ``(i) the amount under subparagraph (A), 
                        plus
                            ``(ii)(I) in the case of calendar year 
                        2024, $10, and
                            ``(II) in the case of any calendar year 
                        after 2024, the amount in effect under this 
                        clause for the preceding calendar year, plus 
                        $10.
            ``(2) Inflation adjustment.--
                    ``(A) In general.--In the case of any calendar year 
                after 2023, the amount determined under paragraph 
                (1)(B) shall be increased by an amount equal to--
                            ``(i) that dollar amount, multiplied by
                            ``(ii) the cost-of-living adjustment 
                        determined under section 1(f)(3) for that 
                        calendar year, determined by substituting 
                        `2022' for `2016' in subparagraph (A)(ii) 
                        thereof.
                    ``(B) Rounding.--If any increase determined under 
                subparagraph (A) is not a multiple of $1, such increase 
                shall be rounded up to the next whole dollar amount.
            ``(3) Adjustment of carbon fee rate.--
                    ``(A) Increase in rate following missed cumulative 
                emissions target.--In the case of any calendar year 
                following a determination by the Secretary pursuant to 
                subsection (e)(3) that the cumulative emissions for the 
                preceding calendar year exceeded the cumulative 
                emissions target for such year, paragraph 
                (1)(B)(ii)(II) shall be applied--
                            ``(i) in the case of calendar years 2026 
                        through 2030, by substituting `$15' for `$10',
                            ``(ii) in the case of calendar years 2031 
                        through 2040, by substituting `$20' for `$10', 
                        and
                            ``(iii) in the case of any calendar year 
                        beginning after 2040, by substituting `$25' for 
                        `$10'.
                    ``(B) Cessation of rate increase following 
                achievement of cumulative emissions target.--In the 
                case of any year following a determination by the 
                Secretary pursuant to subsection (e)(3) that--
                            ``(i) the average annual emissions of 
                        greenhouse gases from covered entities over the 
                        preceding 3-year period are not more than 10 
                        percent of the greenhouse gas emissions during 
                        the year 2018, and
                            ``(ii) the cumulative emissions did not 
                        exceed the cumulative emissions target,
                paragraph (1)(B)(ii)(II) shall be applied by 
                substituting `$0' for `$10'.
                    ``(C) Methodology.--With respect to any year, the 
                annual greenhouse gas emissions and cumulative 
                emissions described in subparagraph (A) or (B) shall be 
                determined using the methodology required under 
                subsection (e)(4).
    ``(e) Emissions Targets.--
            ``(1) In general.--
                    ``(A) Reference year.--For purposes of subsection 
                (d), the emissions target for any year shall be the 
                amount of greenhouse gas emissions that is equal to--
                            ``(i) for calendar years 2023 and 2024, the 
                        applicable percentage of the total amount of 
                        greenhouse gas emissions from the use of any 
                        covered fuel during calendar year 2018, and
                            ``(ii) for calendar year 2025 and each 
                        calendar year thereafter, the applicable 
                        percentage of the total amount of greenhouse 
                        gas emissions from the use of any covered fuel 
                        and noncovered fuel emissions during calendar 
                        year 2018.
                    ``(B) Methodology.--For purposes of subparagraph 
                (A), with respect to determining the total amount of 
                greenhouse gas emissions from the use of any covered 
                fuel and noncovered fuel emissions during calendar year 
                2018, the Administrator shall use such methods as are 
                determined appropriate, provided that such methods are, 
                to the greatest extent practicable, comparable to the 
                methods established under paragraph (4).
            ``(2) Applicable percentage.--
                    ``(A) 2023 through 2035.--In the case of calendar 
                years 2023 through 2035, the applicable percentage 
                shall be determined as follows:
``Year                              Applicable percentage
        2023...............................................  81 percent
        2024...............................................  75 percent
        2025...............................................  70 percent
        2026...............................................  67 percent
        2027...............................................  63 percent
        2028...............................................  60 percent
        2029...............................................  57 percent
        2030...............................................  55 percent
        2031...............................................  52 percent
        2032...............................................  49 percent
        2033...............................................  46 percent
        2034...............................................  43 percent
        2035...............................................  40 percent

                    ``(B) 2036 through 2050.--In the case of calendar 
                years 2036 through 2050, the applicable percentage 
                shall be equal to--
                            ``(i) the applicable percentage for the 
                        preceding year, minus
                            ``(ii) 2 percentage points.
                    ``(C) After 2050.--In the case of any calendar year 
                beginning after 2050, the applicable percentage shall 
                be equal to 10 percent.
            ``(3) Emissions reporting and determinations.--
                    ``(A) Reporting.--Not later than September 30, 
                2024, and annually thereafter, the Administrator, in 
                consultation with the Secretary, shall make available 
                to the public a report on--
                            ``(i) the cumulative emissions with respect 
                        to the preceding calendar year, and
                            ``(ii) any other relevant information, as 
                        determined appropriate by the Administrator.
                    ``(B) Determinations.--Not later than September 30, 
                2025, and annually thereafter, the Administrator, in 
                consultation with the Secretary and as part of the 
                report described in subparagraph (A), shall determine 
                whether cumulative emissions with respect to the 
                preceding calendar year exceeded the cumulative 
                emissions target with respect to such year.
            ``(4) Emissions accounting methodology.--
                    ``(A) In general.--Not later than January 1, 2023, 
                the Administrator shall prescribe rules for greenhouse 
                gas accounting for covered entities for purposes of 
                this subchapter, which shall--
                            ``(i) to the greatest extent practicable, 
                        employ existing data collection methodologies 
                        and greenhouse gas accounting practices,
                            ``(ii) ensure that the method of 
                        accounting--
                                    ``(I) applies to--
                                            ``(aa) all greenhouse gas 
                                        emissions from covered fuels 
                                        and all noncovered fuel 
                                        emissions, and
                                            ``(bb) all covered 
                                        entities,
                                    ``(II) excludes--
                                            ``(aa) any greenhouse gas 
                                        emissions which are not 
                                        described item (aa) of 
                                        subclause (I), and
                                            ``(bb) any entities which 
                                        are not described in item (bb) 
                                        of such subclause, and
                                    ``(III) appropriately accounts 
                                for--
                                            ``(aa) qualified carbon 
                                        oxide which is captured and 
                                        disposed or used in a manner 
                                        described in section 4694, and
                                            ``(bb) nonemitting uses of 
                                        covered fuels, as described in 
                                        subsection (f),
                            ``(iii) subject to such penalties as are 
                        determined appropriate by the Administrator, 
                        require any covered entity to report, not later 
                        than April 1 of each calendar year--
                                    ``(I) the total greenhouse gas 
                                content of any covered fuels used, 
                                sold, or transferred by such covered 
                                entity during the preceding calendar 
                                year, and
                                    ``(II) the total noncovered fuel 
                                emissions of the covered entity during 
                                the preceding calendar year, and
                            ``(iv) require any information reported 
                        pursuant to clause (iii) to be verified by a 
                        third-party entity that, subject to such 
                        process as is determined appropriate by the 
                        Administrator, has been certified by the 
                        Administrator with respect to the 
                        qualifications, independence, and reliability 
                        of such entity.
                    ``(B) Greenhouse gas reporting program.--For 
                purposes of establishing the rules described in 
                subparagraph (A), the Administrator may elect to modify 
                the activities of the Greenhouse Gas Reporting Program 
                to satisfy the requirements described in clauses (i) 
                through (iv) of such subparagraph.
            ``(5) Revisions.--With respect to any determination made by 
        the Administrator as to the amount of greenhouse gas emissions 
        for any calendar year (including calendar year 2018), any 
        subsequent revision by the Administrator with respect to such 
        amount shall apply for purposes of the fee imposed under 
        subsection (b) for any calendar years beginning after such 
        revision.
    ``(f) Exemption and Refund.--The Secretary shall prescribe such 
rules as are necessary to ensure the carbon fee imposed by this section 
is not imposed with respect to any nonemitting use, or any sale or 
transfer for a nonemitting use, including rules providing for the 
refund of any carbon fee paid under this section with respect to any 
such use, sale, or transfer.
    ``(g) Administrative Authority.--The Secretary, in consultation 
with the Administrator, shall prescribe such regulations, and other 
guidance, to assess and collect the carbon fee imposed by this section, 
including--
            ``(1) the identification of covered entities that are 
        liable for payment of a fee under this section or section 4693,
            ``(2) as may be necessary or convenient, rules for 
        distinguishing between different types of covered entities,
            ``(3) as may be necessary or convenient, rules for 
        distinguishing between the greenhouse gas emissions of a 
        covered entity and the greenhouse gas emissions that are 
        attributed to the covered entity but not directly emitted by 
        the covered entity,
            ``(4) requirements for the quarterly payment of such fees, 
        and
            ``(5) rules to ensure that the carbon fee under this 
        section, the fee on noncovered fuel emissions under section 
        4693, or the carbon border fee adjustment is not imposed on an 
        emission from covered fuel or noncovered fuel emission more 
        than once.

``SEC. 4693. FEE ON NONCOVERED FUEL EMISSIONS.

    ``(a) In General.--During any calendar year that begins after 
December 31, 2024, there is imposed a fee on a covered entity for any 
noncovered fuel emissions which occur during the calendar year.
    ``(b) Amount.--The fee to be paid under subsection (a) by the 
covered entity which is the source of the emissions described in that 
subsection shall be an amount equal to--
            ``(1) the total amount, in metric tons of CO<INF>2</INF>-e, 
        of emitted greenhouse gases, multiplied by
            ``(2) an amount equal to the carbon fee rate in effect 
        under section 4692(d) for the calendar year of such emission.
    ``(c) Administrative Authority.--The Secretary, in consultation 
with the Administrator, shall prescribe such regulations, and other 
guidance, to assess and collect the carbon fee imposed by this section, 
including regulations describing the requirements for the quarterly 
payment of such fees.

``SEC. 4694. REFUNDS FOR CARBON CAPTURE, SEQUESTRATION, AND 
              UTILIZATION.

    ``(a) In General.--
            ``(1) Capture, sequestration, and use.--The Secretary, in 
        consultation with the Administrator and the Secretary of 
        Energy, shall prescribe regulations for providing payments to 
        any person which captures qualified carbon oxide which is--
                    ``(A) disposed of by such person in secure 
                geological storage, as described in section 45Q(f)(2), 
                or
                    ``(B) used in a manner which has been approved by 
                the Secretary pursuant to subsection (c).
            ``(2) Election.--If the person described in paragraph (1) 
        makes an election under this paragraph in such time and manner 
        as the Secretary may prescribe by regulations, the credit under 
        this section--
                    ``(A) shall be allowable to the person that owns 
                the facility described in subsection (b)(1), and
                    ``(B) shall not be allowable to the person 
                described in paragraph (1).
    ``(b) Payments for Carbon Capture.--
            ``(1) In general.--In the case of any facility for which 
        carbon capture equipment has been placed in service, the 
        Secretary shall make payments in the same manner as if such 
        payment was a refund of an overpayment of the fee imposed by 
        section 4692 or 4693.
            ``(2) Amount of payment.--The payment determined under this 
        subsection shall be an amount equal to--
                    ``(A) the metric tons of qualified carbon oxide 
                captured and disposed of, used, or utilized in a manner 
                consistent with subsection (a), multiplied by
                    ``(B)(i) the carbon fee rate during the year in 
                which the carbon fee was imposed by section 4692 on the 
                covered fuel to which such carbon oxide relates, or
                    ``(ii) in the case of a direct air capture facility 
                (as defined in section 45Q(e)(1)), the carbon fee rate 
                during the year in which the qualified carbon oxide was 
                captured and disposed of, used, or utilized.
    ``(c) Approved Uses of Qualified Carbon Oxide.--The Secretary, in 
consultation with Administrator and the Secretary of Energy, shall, 
through regulation or other public guidance, determine which uses of 
qualified carbon oxide are eligible for payments under this section, 
which may include--
            ``(1) utilization in a manner described in clause (i) or 
        (ii) of section 45Q(f)(5)(A), or
            ``(2) any other use which ensures minimal leakage or escape 
        of such carbon oxide.
    ``(d) Exception.--In the case of any facility which is owned by an 
entity that is determined to be--
            ``(1) in violation of any applicable air or water quality 
        regulations, or
            ``(2) with respect to any environmental justice community 
        (as defined in section 2(d)(1)(D) of the America's Clean Future 
        Fund Act), creating health or environmental harm to such 
        community,
such facility shall not be eligible for any payment under this section 
during the period of such violation.

``SEC. 4695. BORDER ADJUSTMENTS.

    ``(a) In General.--The fees imposed by, and refunds allowed under, 
this section shall be referred to as `the carbon border fee 
adjustment'.
    ``(b) Exports.--
            ``(1) Carbon-intensive products.--In the case of any 
        carbon-intensive product which is exported from the United 
        States, the Secretary shall pay to the person exporting such 
        product a refund equal to the amount of the cost of such 
        product attributable to any fees imposed under this subchapter 
        related to the manufacturing of such product (as determined 
        under regulations established by the Secretary).
            ``(2) Covered fuels.--In the case of any covered fuel which 
        is exported from the United States, the Secretary shall pay to 
        the person exporting such fuel a refund equal to the amount of 
        the cost of such fuel attributable to any fees imposed under 
        this subchapter related to the use, sale, or transfer of such 
        fuel.
    ``(c) Imports.--
            ``(1) Carbon-intensive products.--
                    ``(A) Imposition of equivalency fee.--In the case 
                of any carbon-intensive product imported into the 
                United States, there is imposed an equivalency fee on 
                the person importing such product in an amount equal to 
                the cost of such product that would be attributable to 
                any fees imposed under this subchapter related to the 
                manufacturing of such product if any inputs or 
                processes used in manufacturing such product were 
                subject to such fees (as determined under regulations 
                established by the Secretary).
                    ``(B) Reduction in fee.--The amount of the 
                equivalency fee under subparagraph (A) shall be reduced 
                by the amount, if any, of any fees imposed on the 
                carbon-intensive product by the foreign nation or 
                governmental units from which such product was 
                imported.
            ``(2) Covered fuels.--
                    ``(A) In general.--In the case of any covered fuel 
                imported into the United States, there is imposed a fee 
                on the person importing such fuel in an amount equal to 
                the amount of any fees that would be imposed under this 
                subchapter related to the use, sale, or transfer of 
                such fuel.
                    ``(B) Reduction in fee.--The amount of the fee 
                under subparagraph (A) shall be reduced by the amount, 
                if any, of any fees imposed on the covered fuel by the 
                foreign nation or governmental units from which the 
                fuel was imported.
    ``(d) Treatment of Alternative Policies as Fees.--Under regulations 
established by the Secretary, foreign policies that have substantially 
the same effect in reducing emissions of greenhouse gases as fees shall 
be treated as fees for purposes of subsections (b) and (c).
    ``(e) Regulatory Authority.--
            ``(1) In general.--The Secretary shall consult with the 
        Administrator, the Secretary of Commerce, and the Secretary of 
        Energy in establishing rules and regulations implementing the 
        purposes of this section.
            ``(2) Treaties.--The Secretary, in consultation with the 
        Secretary of State, may adjust the applicable amounts of the 
        refunds and equivalency fees under this section in a manner 
        that is consistent with any obligations of the United States 
        under an international agreement.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to periods beginning after December 31, 2022.

SEC. 4. AMERICA'S CLEAN FUTURE FUND.

    (a) In General.--Subchapter A of chapter 98 of the Internal Revenue 
Code of 1986 is amended by adding at the end the following:

``SEC. 9512. AMERICA'S CLEAN FUTURE FUND.

    ``(a) Establishment and Funding.--There is established in the 
Treasury of the United States a trust fund to be known as the 
`America's Clean Future Fund' (referred to in this section as the 
`Trust Fund'), consisting of such amounts as are appropriated to the 
Trust Fund under subsection (b).
    ``(b) Transfers to America's Clean Future Fund.--There is 
appropriated to the Trust Fund, out of any funds in the Treasury not 
otherwise appropriated, amounts equal to the fees received into the 
Treasury under sections 4692, 4693, and 4695, less--
            ``(1) any amounts refunded or paid under sections 4692(d), 
        4694, and 4695(b), and
            ``(2) for each of the first 18 fiscal years beginning after 
        September 30, 2023, an amount equal to the quotient of--
                    ``(A) $100,000,000,000, and
                    ``(B) 18.
    ``(c) Expenditures.--For each fiscal year, amounts in the Trust 
Fund shall be apportioned as follows:
            ``(1) Carbon fee rebate and agricultural decarbonization 
        transition payments.--
                    ``(A) Carbon fee rebate.--For the purposes 
                described in section 5 of the America's Clean Future 
                Fund Act and any expenses necessary to administer such 
                section--
                            ``(i) for each of the first 10 fiscal years 
                        beginning after September 30, 2023, an amount 
                        equal to--
                                    ``(I) 75 percent of those amounts, 
                                minus
                                    ``(II) the amount determined under 
                                subparagraph (B) for such fiscal year, 
                                and
                            ``(ii) for any fiscal year beginning after 
                        the period described in clause (i), the 
                        applicable percentage of such amounts.
                    ``(B) Agricultural decarbonization transition 
                payments.--For the purposes described in section 6 of 
                the America's Clean Future Fund Act, for each of the 
                first 10 fiscal years beginning after September 30, 
                2023, an amount equal to 7 percent of the amount 
                determined annually under subparagraph (A)(i)(I).
                    ``(C) Applicable percentage.--For purposes of 
                subparagraph (A)(ii), the applicable percentage shall 
                be equal to--
                            ``(i) for the first fiscal year beginning 
                        after the period described in subparagraph 
                        (A)(i), 76 percent,
                            ``(ii) for each of the first 3 fiscal years 
                        subsequent to the period described in clause 
                        (i), the applicable percentage for the 
                        preceding fiscal year increased by 1 percentage 
                        point, and
                            ``(iii) for any fiscal year subsequent to 
                        the period described in clause (ii), 80 
                        percent.
            ``(2) Climate change finance corporation.--
                    ``(A) In general.--For the purposes described in 
                section 2 of the America's Clean Future Fund Act, the 
                applicable percentage of such amounts.
                    ``(B) Applicable percentage.--For purposes of this 
                paragraph, the applicable percentage shall be equal 
                to--
                            ``(i) for each of the first 10 fiscal years 
                        beginning after the period described in 
                        subsection (e) of such section, 15 percent,
                            ``(ii) for each of the first 4 fiscal years 
                        subsequent to the period described in clause 
                        (i), the applicable percentage for the 
                        preceding fiscal year increased by 1 percentage 
                        point, and
                            ``(iii) for any fiscal year subsequent to 
                        the period described in clause (ii), 20 
                        percent.
            ``(3) Transition assistance for impacted communities.--
                    ``(A) In general.--For the purposes described in 
                section 7 of the America's Clean Future Fund Act, the 
                applicable percentage of such amounts.
                    ``(B) Applicable percentage.--For purposes of this 
                paragraph, the applicable percentage shall be equal 
                to--
                            ``(i) for each of the first 10 fiscal years 
                        beginning after September 30, 2023, 10 percent,
                            ``(ii) for each of the first 4 fiscal years 
                        subsequent to the period described in clause 
                        (i), the applicable percentage for the 
                        preceding fiscal year reduced by 2 percentage 
                        points, and
                            ``(iii) for any fiscal year subsequent to 
                        the period described in clause (ii), 0 
                        percent.''.
    (b) Clerical Amendment.--The table of sections for subchapter A of 
chapter 98 of the Internal Revenue Code of 1986 is amended by adding at 
the end the following new item:

``Sec. 9512. America's Clean Future Fund.''.

SEC. 5. AMERICA'S CLEAN FUTURE FUND STIMULUS.

    (a) Eligible Individual.--
            (1) In general.--In this section, the term ``eligible 
        individual'' means, with respect to any quarter, any natural 
        living person--
                    (A) who has a valid Social Security number or 
                taxpayer identification number,
                    (B) who has attained 18 years of age, and
                    (C) whose principal place of abode is in the United 
                States for more than one-half of the most recent 
                taxable year for which a return has been filed.
            (2) Verification.--The Secretary of the Treasury, or the 
        Secretary's delegate (referred to in this section as the 
        ``Secretary'') may verify the eligibility of an individual to 
        receive a carbon fee rebate payment under subsection (b).
    (b) Rebates.--Subject to subsections (c)(2) and (k), from amounts 
in the America's Clean Future Fund established by section 9512(c)(1)(A) 
of the Internal Revenue Code of 1986 that are available in any year, 
the Secretary shall, for each calendar quarter beginning after 
September 30, 2023, make carbon fee rebate payments to each eligible 
individual, to be known as ``America's Clean Future Fund Stimulus 
payments'' (referred to in this section as ``carbon fee rebate 
payments'').
    (c) Pro-Rata Share.--
            (1) In general.--With respect to each quarter during any 
        fiscal year beginning after September 30, 2023, the carbon fee 
        rebate payment is 1 pro-rata share for each eligible individual 
        of an amount equal to 25 percent of amounts apportioned under 
        section 9512(c)(1)(A) of the Internal Revenue Code of 1986 for 
        such fiscal year.
            (2) Initial annual rebate payments.--
                    (A) In general.--From amounts appropriated under 
                subsection (j), the Secretary shall, for each of fiscal 
                years 2022 and 2023, make carbon fee rebate payments to 
                each eligible individual during the third quarter of 
                each such fiscal year.
                    (B) Pro-rata share.--For purposes of this 
                paragraph, the carbon fee rebate payment is 1 pro-rata 
                share for each eligible individual of the amount 
                appropriated under subsection (j) for the fiscal year.
            (3) Estimate.--For each fiscal year described in paragraph 
        (1), the Secretary shall, not later than the first day of such 
        fiscal year, publicly announce an estimate of the amount of the 
        carbon fee rebate payment for each quarter during such fiscal 
        year.
    (d) Phaseout.--
            (1) Definitions.--In this subsection:
                    (A) Modified adjusted gross income.--The term 
                ``modified adjusted gross income'' means adjusted gross 
                income increased by any amount excluded from gross 
                income under section 911, 931, or 933 of the Internal 
                Revenue Code of 1986.
                    (B) Household member.--The term ``household member 
                of the taxpayer'' means the taxpayer, the taxpayer's 
                spouse, and any dependent of the taxpayer.
                    (C) Threshold amount.--The term ``threshold 
                amount'' means--
                            (i) $150,000 in the case of a taxpayer 
                        filing a joint return, and
                            (ii) $75,000 in the case of a taxpayer not 
                        filing a joint return.
            (2) Phaseout of payments.--In the case of any taxpayer 
        whose modified adjusted gross income for the most recent 
        taxable year for which a return has been filed exceeds the 
        threshold amount, the amount of the carbon fee rebate payment 
        otherwise payable to any household member of the taxpayer under 
        this section shall be reduced (but not below zero) by a dollar 
        amount equal to 5 percent of such payment (as determined before 
        application of this paragraph) for each $1,000 (or fraction 
        thereof) by which the modified adjusted gross income of the 
        taxpayer exceeds the threshold amount.
    (e) Fee Treatment of Payments.--Amounts paid under this section 
shall not be includible in gross income for purposes of Federal income 
taxes.
    (f) Federal Programs and Federal Assisted Programs.--The carbon fee 
rebate payment received by any eligible individual shall not be taken 
into account as income and shall not be taken into account as resources 
for purposes of determining the eligibility of such individual or any 
other individual for benefits or assistance, or the amount or extent of 
benefits or assistance, under any Federal program or under any State or 
local program financed in whole or in part with Federal funds.
    (g) Disclosure of Return Information.--Section 6103(l) of the 
Internal Revenue Code of 1986 is amended by adding at the end the 
following new paragraph:
            ``(23) Disclosure of return information relating to carbon 
        fee rebate payments.--
                    ``(A) Department of treasury.--Return information 
                with respect to any taxpayer shall, without written 
                request, be open to inspection by or disclosure to 
                officers and employees of the Department of the 
                Treasury whose official duties require such inspection 
                or disclosure for purposes of administering section 5 
                of the America's Clean Future Fund Act.
                    ``(B) Restriction on disclosure.--Information 
                disclosed under this paragraph shall be disclosed only 
                for purposes of, and to the extent necessary in, 
                carrying out such section.''.
    (h) Regulations.--The Secretary shall prescribe such regulations, 
and other guidance, as may be necessary to carry out the purposes of 
this section, including--
            (1) establishment of rules for eligible individuals who 
        have not filed a recent tax return, and
            (2) in coordination with the Commissioner of Social 
        Security, the Secretary of Veterans Affairs, and any relevant 
        State agencies, establish methods to identify eligible 
        individuals and provide carbon fee rebate payments to such 
        individuals through appropriate means of distribution, 
        including through the use of electronic benefit transfer cards.
    (i) Public Awareness Campaign.--The Secretary shall conduct a 
public awareness campaign, in coordination with the Commissioner of 
Social Security, the heads of other relevant Federal agencies, and 
Indian Tribes (as defined in section 4 of the Indian Self-Determination 
and Education Assistance Act (25 U.S.C. 5304)), to provide information 
to the public regarding the availability of carbon fee rebate payments 
under this section.
    (j) Initial Appropriation.--For purposes of subsection (c)(2), 
there is appropriated, out of any funds in the Treasury not otherwise 
appropriated, to remain available until expended--
            (1) for the fiscal year ending September 30, 2022, 
        $37,500,000,000, and
            (2) for the fiscal year ending September 30, 2023, 
        $37,500,000,000.
    (k) Termination.--This section shall not apply to any calendar 
quarter beginning after--
            (1) a determination by the Secretary under section 
        4692(d)(3)(B) of the Internal Revenue Code of 1986; or
            (2) any period of 8 consecutive calendar quarters for which 
        the amount of carbon fee rebate payment (without application of 
        subsection (d)) during each such quarter is less than $20.

SEC. 6. AGRICULTURAL DECARBONIZATION TRANSITION PAYMENTS.

    (a) Purposes.--The purposes of this section are--
            (1) to provide transition assistance to eligible producers 
        in the agricultural, livestock, and forestry sectors to prepare 
        for and facilitate entry into private sector greenhouse gas 
        credit markets; and
            (2) to provide for the collection and reporting of data 
        under subsection (d).
    (b) Definitions.--In this section:
            (1) Eligible land.--
                    (A) In general.--The term ``eligible land'' means 
                land in the United States--
                            (i) on which farming, ranching, or forestry 
                        may physically and legally be conducted; and
                            (ii) that is--
                                    (I) cropland, grassland, 
                                pastureland, rangeland, hayland, or 
                                other land on which food, feed, fiber, 
                                crops, livestock, or other agricultural 
                                products are produced or capable of 
                                being produced; or
                                    (II) nonindustrial private forest 
                                land (as defined in section 5(c) of the 
                                Cooperative Forestry Assistance Act of 
                                1978 (16 U.S.C. 2103a(c))).
                    (B) Inclusion of tribal land.--The term ``eligible 
                land'' includes land described in subparagraph (A) that 
                is Indian land (as defined in section 2601 of the 
                Energy Policy Act of 1992 (25 U.S.C. 3501)).
            (2) Eligible producer.--The term ``eligible producer'' 
        means an individual or legal entity that--
                    (A) is an owner, operator, or tenant of eligible 
                land;
                    (B) has control over the eligible land;
                    (C) is actively engaged in farming, ranching, or 
                forestry on the eligible land, as determined by the 
                Secretary;
                    (D) bears the risk of loss of the farming, 
                ranching, or forestry on the eligible land; and
                    (E) has the ability to enter into an agreement with 
                the Secretary to carry out qualifying practices 
                described in subsection (c)(2) under the program.
            (3) Greenhouse gas emissions reduction.--The term 
        ``greenhouse gas emissions reduction'' means the reduction in 
        greenhouse gas emissions as a result of the adoption of 
        qualifying practices described in subsection (c)(2), as 
        compared to a historical baseline.
            (4) Historically underserved.--The term ``historically 
        underserved'', with respect to an eligible producer, means that 
        the eligible producer--
                    (A) is American Indian or Alaskan Native;
                    (B) is Asian or Asian American;
                    (C) is Black or African American;
                    (D) is Native Hawaiian or Pacific Islander;
                    (E) is Hispanic;
                    (F) is disabled;
                    (G) is female;
                    (H) is new to farming, ranching, or forestry, as 
                determined by the Secretary;
                    (I)(i) has served in the United States Armed 
                Forces; and
                    (ii)(I) has not operated a farm, ranch, or forestry 
                operation;
                    (II) is new to farming, ranching, or forestry, as 
                determined by the Secretary; or
                    (III) first obtained veteran status during the 
                previous 5-year period; or
                    (J) is an owner, operator, or tenant of a limited 
                resource farming, ranching, or forestry operation or 
                has a household income not greater than the national 
                poverty level.
            (5) Program.--The term ``program'' means the program 
        established under subsection (c)(1).
            (6) Secretary.--The term ``Secretary'' means the Secretary 
        of Agriculture.
    (c) Establishment of Program.--
            (1) In general.--The Secretary, in consultation with the 
        Administrator of the Environmental Protection Agency, shall 
        establish a program to provide payments to eligible producers 
        that will assist with the transition to reducing greenhouse gas 
        emissions through the adoption of qualifying practices 
        described in paragraph (2).
            (2) Qualifying practices.--
                    (A) In general.--To be eligible for payments under 
                the program, a practice shall be--
                            (i) approved by the Secretary; and
                            (ii) measurable, reportable, and verifiable 
                        for reducing greenhouse gas emissions, as 
                        determined by the Secretary.
                    (B) Included practices.--Practices that the 
                Secretary may determine to be qualifying practices 
                under the program include--
                            (i) improved crop, soil health, water, and 
                        land management systems, including--
                                    (I) diversified soil health-
                                enhancing cropping systems that may 
                                include resource-conserving crop 
                                rotations, cover crops, and sod crops;
                                    (II) conservation plantings, such 
                                as prairie strips, contour grass 
                                strips, filter strips and riparian 
                                buffers, field borders, hedgerows, 
                                windbreaks, alley cropping, and 
                                silvopasture or other agroforestry 
                                plantings;
                                    (III) conservation tillage;
                                    (IV) fertilizer practice 
                                improvements, including biologically 
                                based nutrient management;
                                    (V) ecologically appropriate 
                                reforestation and other sustainable 
                                forestry and related stewardship 
                                practices;
                                    (VI) application of soil carbon 
                                amendments, such as compost or biochar;
                                    (VII) restoration or avoidance of 
                                the conversion of grassland, wetland, 
                                and forest land; and
                                    (VIII) the adoption of organic and 
                                other similar advanced agroecological 
                                production systems;
                            (ii) livestock management, including--
                                    (I) enteric fermentation reduction, 
                                including--
                                            (aa) improved feed, forage, 
                                        and grazing; and
                                            (bb) feed additives 
                                        approved by the Commissioner of 
                                        Food and Drugs;
                                    (II) improved manure management, 
                                including anaerobic digesters; and
                                    (III) the integration of livestock 
                                and crop production;
                            (iii) on-site capital upgrades and 
                        infrastructure investments, including--
                                    (I) building and equipment 
                                refurbishment or upgrades, including 
                                energy efficiency technologies and 
                                digital technologies; and
                                    (II) the adoption of renewable or 
                                clean energy;
                            (iv) conservation easements, including 
                        farm, ranch, and forest land preservation, that 
                        include conservation activities to improve soil 
                        health and reduce greenhouse gas emissions; and
                            (v) other similar practices, as determined 
                        by the Secretary.
            (3) Considerations.--In determining the rate and duration 
        of a payment under paragraph (1), the Secretary shall 
        consider--
                    (A) the degree of additionality of the greenhouse 
                gas emissions reduction;
                    (B) whether the recipient of the payment was an 
                early adopter of 1 or more practices that reduce 
                greenhouse gas emissions;
                    (C) the likelihood that the applicable qualifying 
                practice described in paragraph (2) would have been 
                carried out absent the provision of the payment;
                    (D) the degree of transitionality or permanence of 
                the greenhouse gas emissions reduction;
                    (E) whether the applicable qualifying practice 
                described in paragraph (2) provides multiple 
                environmental and health co-benefits in addition to 
                reduced greenhouse gas emissions;
                    (F) the degree to which current soil conditions 
                influence the greenhouse gas emissions reductions;
                    (G) the degree to which the recipient of the 
                payment is a historically underserved eligible 
                producer;
                    (H) the integration with and enhancement of 
                payments and policies of similar Federal, State, or 
                local programs; and
                    (I) any payments received, or to be received, by 
                the applicable eligible producer from a private carbon 
                offset market due to the applicable qualifying practice 
                described in paragraph (2).
            (4) Ineligibility.--A person that is determined to be in 
        violation of any applicable water or air quality regulation, 
        including under the Federal Water Pollution Control Act (33 
        U.S.C. 1251 et seq.) (including regulations), shall not be 
        eligible for any payment under paragraph (1) during the period 
        of the violation.
            (5) Effectiveness.--The authority to provide payments under 
        this subsection shall be effective for each of the first 10 
        fiscal years beginning after September 30, 2022.
    (d) Collection of Data and Reporting.--
            (1) Measurement system.--
                    (A) In general.--The Secretary shall establish an 
                outcomes-based measurement system (referred to in this 
                paragraph as the ``measurement system'') that uses the 
                best available science and technology for cost-
                effective recordkeeping, modeling, and measurement of 
                farm-level greenhouse gas emissions on eligible land 
                enrolled in the program.
                    (B) Standards.--Not later than 18 months after the 
                date of enactment of this Act, the Secretary shall 
                promulgate standards on the measurement system, based 
                on information obtained from--
                            (i) agro-ecosystem models;
                            (ii) remote sensing data and analysis;
                            (iii) soil health demonstration trials; and
                            (iv) field-level measurement.
                    (C) Protocols.--In developing the measurement 
                system, the Secretary shall compile and publish a list 
                of generally accepted public and private protocols for 
                soil health and greenhouse gas programs and markets.
                    (D) Review.--The Secretary shall maintain the 
                measurement system by--
                            (i) conducting an annual review of the 
                        measurement system; and
                            (ii) making any necessary updates to the 
                        measurement system.
            (2) Inventory.--
                    (A) In general.--For the purposes of providing 
                payments under the program, the Secretary shall conduct 
                a nationwide soil health and agricultural greenhouse 
                gas emissions inventory that uses the best available 
                science and data to establish baselines and expected 
                average performance for soil carbon drawdown and 
                storage and greenhouse gas emissions reduction by 
                primary production type and production region.
                    (B) Database.--The Secretary shall--
                            (i) establish an accessible and 
                        interoperable database for the inventory 
                        established under subparagraph (A) using the 
                        measurement system established under paragraph 
                        (1); and
                            (ii) improve and update the database as new 
                        data is collected, but not less frequently than 
                        once every 2 years.
            (3) Criteria.--
                    (A) In general.--The Secretary shall establish 
                criteria for payments under the program to inform 
                policy and markets established to promote soil carbon 
                sequestration or greenhouse gas emissions reductions.
                    (B) Requirements.--The criteria established under 
                subparagraph (A) shall--
                            (i) have a documented likelihood to lead to 
                        transitioning towards or providing long-term 
                        net greenhouse gas emissions reductions, 
                        according to the best available science;
                            (ii) be based in part on environmental 
                        impact modeling of the changes of shifting from 
                        baseline practices to new or improved 
                        practices; and
                            (iii) prevent, to the maximum extent 
                        practicable, the degradation of other natural 
                        resource or environmental conditions.
            (4) Measurement, reporting, monitoring, and verification 
        services.--
                    (A) In general.--The Secretary--
                            (i) shall provide services described in 
                        subparagraph (B) to eligible producers 
                        participating in the program; and
                            (ii) may approve and provide oversight of 1 
                        or more third-party agents to provide services 
                        described in subparagraph (B) to eligible 
                        producers participating in the program.
                    (B) Services described.--Services referred to in 
                subparagraph (A) are determining the greenhouse gas 
                emissions reduction by--
                            (i) measurement;
                            (ii) reporting;
                            (iii) monitoring; and
                            (iv) verification.
                    (C) Use of protocols.--Services referred to in 
                subparagraph (A) shall be provided using--
                            (i) the measurement system described in 
                        paragraph (1); and
                            (ii) the criteria described in paragraph 
                        (3).
                    (D) Use of department of agriculture resources.--
                The Secretary shall require a third-party agent 
                approved under subparagraph (A)(ii) to use the 
                resources, boards, committees, geospatial data, aerial 
                or other maps, employees, offices, and capacities of 
                the Department of Agriculture, to the maximum extent 
                practicable, in providing services under that 
                subparagraph to eligible producers.
                    (E) Privacy and data security.--
                            (i) In general.--The Secretary shall 
                        establish--
                                    (I) safeguards to protect the 
                                privacy of information that is 
                                submitted through or retained by a 
                                third-party agent approved under 
                                subparagraph (A), including employees 
                                and contractors of the third-party 
                                agent; and
                                    (II) such other rules and standards 
                                of data security as the Secretary 
                                determines to be appropriate to carry 
                                out this subsection.
                            (ii) Penalties.--The Secretary shall 
                        establish penalties for any violations of 
                        privacy or confidentiality under clause (i).
                    (F) Disclosure of information.--
                            (i) Public disclosure.--Information 
                        collected for purposes of services provided 
                        under subparagraph (A) may be disclosed to the 
                        public--
                                    (I) if the information is 
                                transformed into a statistical or 
                                aggregate form such that the 
                                information does not include any 
                                identifiable or personal information of 
                                individual producers; or
                                    (II) in a form that may include 
                                identifiable or personal information of 
                                a producer only if that producer 
                                consents to the disclosure of the 
                                information.
                            (ii) Requirement.--The participation of a 
                        producer in, and the receipt of any benefit by 
                        the producer under, a program under this 
                        section or any other program administered by 
                        the Secretary may not be conditioned on the 
                        producer providing consent under clause 
                        (i)(II).
                            (iii) Research, audit, and program 
                        improvement.--Information collected for the 
                        purposes of services provided under 
                        subparagraph (A) may be disclosed for the 
                        purposes of providing technical assistance, 
                        including audit, research, or improvement of a 
                        program under this section, either in aggregate 
                        or in a form that includes identifiable or 
                        personal information of a producer, if the 
                        Secretary obtains adequate assurances that--
                                    (I) the recipient shall ensure 
                                privacy safeguards of identifiable or 
                                personal information of a producer; and
                                    (II) the release of any data to the 
                                public will only occur only if the data 
                                has been transformed into a statistical 
                                or aggregate form.
    (e) Regulations.--Not later than July 1, 2022, the Secretary shall 
promulgate regulations to carry out this section, including--
            (1) the amount of a payment under subsection (c), which 
        shall be based on--
                    (A) the quantity of carbon dioxide equivalent 
                emissions reduced; and
                    (B) the considerations described in subsection 
                (c)(3);
            (2) a methodology that any third-party agents approved 
        under subsection (d)(4)(A)(ii) shall use to provide the 
        services under that subsection, including--
                    (A) an accreditation process; and
                    (B) a conflict of interest policy; and
            (3) provisions for the ownership and transportability of 
        data, including historical data, generated by an eligible 
        producer for the purpose of determining eligibility for 
        payments under the program.

SEC. 7. TRANSITION ASSISTANCE FOR IMPACTED COMMUNITIES.

    (a) Definitions.--In this section:
            (1) 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).
            (2) Individual with a barrier to employment.--The term 
        ``individual with a barrier to employment'' has the meaning 
        given the term in section 3 of the Workforce Innovation and 
        Opportunity Act (29 U.S.C. 3102).
            (3) Institution of higher education.--The term 
        ``institution of higher education'' has the meaning given the 
        term in section 101 of the Higher Education Act of 1965 (20 
        U.S.C. 1001).
            (4) Local board.--The term ``local board'' has the meaning 
        given the term in section 3 of the Workforce Innovation and 
        Opportunity Act (29 U.S.C. 3102).
            (5) Recognized postsecondary credential.--The term 
        ``recognized postsecondary credential'' has the meaning given 
        the term in section 3 of the Workforce Innovation and 
        Opportunity Act (29 U.S.C. 3102).
            (6) Secretary.--The term ``Secretary'' means the Secretary 
        of Commerce, acting through the Assistant Secretary of Commerce 
        for Economic Development.
            (7) State.--The term ``State'' means--
                    (A) a State;
                    (B) the District of Columbia;
                    (C) the Commonwealth of Puerto Rico; and
                    (D) any other territory or possession of the United 
                States.
            (8) State board.--The term ``State board'' has the meaning 
        given the term in section 3 of the Workforce Innovation and 
        Opportunity Act (29 U.S.C. 3102).
            (9) Supportive services.--The term ``supportive services'' 
        has the meaning given the term in section 3 of the Workforce 
        Innovation and Opportunity Act (29 U.S.C. 3102).
    (b) Grants.--The Secretary, in coordination with the Secretary of 
Labor, shall provide grants to eligible entities for transition 
assistance to a low-carbon economy.
    (c) Eligible Entities.--An entity eligible to receive a grant under 
this section is a labor organization, an institution of higher 
education, a unit of State or local government, an Indian Tribe, an 
economic development organization, a nonprofit organization, community-
based organization, or intermediary, or a State board or local board 
that serves or is located in a community that--
            (1) as determined by the Secretary, in coordination with 
        the Secretary of Labor, has been or will be impacted by 
        economic changes in carbon-intensive industries, including job 
        losses;
            (2) as determined by the Secretary, in consultation with 
        the Administrator of the Federal Emergency Management Agency, 
        has been or is at risk of being impacted by extreme weather 
        events, sea level rise, and natural disasters related to 
        climate change; or
            (3) as determined by the Secretary, in consultation with 
        the Administrator of the Environmental Protection Agency, has 
        been impacted by harmful residuals from a fossil fuel or 
        carbon-intensive industry.
    (d) Use of Funds.--An eligible entity that receives a grant under 
this section shall use the grant for--
            (1) economic and workforce development activities, such 
        as--
                    (A) job creation;
                    (B) providing reemployment and worker transition 
                assistance, including registered apprenticeships, 
                subsidized employment, job training, transitional jobs, 
                and supportive services, with priority given to--
                            (i) workers impacted by changes in carbon-
                        intensive industries;
                            (ii) individuals with a barrier to 
                        employment; and
                            (iii) programs that lead to a recognized 
                        postsecondary credential;
                    (C) local and regional investment, including 
                commercial and industrial economic diversification;
                    (D) export promotion; and
                    (E) establishment of a monthly subsidy payment for 
                workers who retire early due to economic changes in 
                carbon-intensive industries;
            (2) climate change resiliency, such as--
                    (A) building electrical, communications, utility, 
                transportation, and other infrastructure in flood-prone 
                areas above flood zone levels;
                    (B) building flood and stormproofing measures in 
                flood-prone areas and erosion-prone areas;
                    (C) increasing the resilience of a surface 
                transportation infrastructure asset to withstand 
                extreme weather events and climate change impacts;
                    (D) improving stormwater infrastructure;
                    (E) increasing the resilience of agriculture to 
                extreme weather;
                    (F) ecological restoration;
                    (G) increasing the resilience of forests to 
                wildfires;
                    (H) increasing coastal resilience; and
                    (I) implementing heat island cooling strategies;
            (3) environmental cleanup from fossil fuel industry 
        facilities that are abandoned or retired, or closed due to 
        bankruptcy, and residuals from carbon-intensive industries, 
        such as--
                    (A) coal ash and petroleum coke cleanup;
                    (B) mine reclamation;
                    (C) reclamation and plugging of abandoned oil and 
                natural gas wells on private and public land; and
                    (D) remediation of impaired waterways and drinking 
                water resources; or
            (4) other activities as the Secretary, in coordination with 
        the Secretary of Labor, the Administrator of the Federal 
        Emergency Management Agency, and the Administrator of the 
        Environmental Protection Agency, determines to be appropriate.
    (e) Requirements.--
            (1) Labor standards; nondiscrimination.--An eligible entity 
        that receives a grant under this section shall use the funds in 
        a manner consistent with sections 181 and 188 of the Workforce 
        Innovation and Opportunity Act (29 U.S.C. 3241, 3248).
            (2) Wage rate requirements.--
                    (A) In general.--All laborers and mechanics 
                employed by eligible entities to carry out projects and 
                activities funded directly by or assisted in whole or 
                in part by a grant under this section shall be paid at 
                wages at rates not less than those prevailing on 
                projects of a similar character in the locality as 
                determined by the Secretary of Labor in accordance with 
                subchapter IV of chapter 31 of title 40, United States 
                Code (commonly known as the ``Davis-Bacon Act'').
                    (B) Authority.--With respect to the labor standards 
                specified in subparagraph (A), the Secretary of Labor 
                shall have the authority and functions set forth in 
                Reorganization Plan Numbered 14 of 1950 (64 Stat. 1267; 
                5 U.S.C. App.) and section 3145 of title 40, United 
                States Code.
            (3) Buy america requirements.--
                    (A) In general.--All iron, steel, and manufactured 
                goods used for projects and activities carried out with 
                a grant under this section shall be produced in the 
                United States.
                    (B) Waiver.--The Secretary may waive the 
                requirement in subparagraph (A) if the Secretary finds 
                that--
                            (i) enforcing the requirement would be 
                        inconsistent with the public interest;
                            (ii) the iron, steel, and manufactured 
                        goods produced in the United States are not 
                        produced in a sufficient and reasonably 
                        available amount or are not of a satisfactory 
                        quality; or
                            (iii) enforcing the requirement will 
                        increase the overall cost of the project or 
                        activity by more than 25 percent.
    (f) Coordination.--An eligible entity that receives a grant under 
this section is encouraged to collaborate or partner with other 
eligible entities in carrying out activities with that grant.
    (g) Report.--Not later than 3 years after the date on which the 
Secretary establishes the grant program under this section, the 
Secretary and the Secretary of Labor shall submit to Congress a report 
on the effectiveness of the grant program, including--
            (1) the number of individuals that have received 
        reemployment or worker transition assistance under this 
        section;
            (2) a description of any job creation activities carried 
        out with a grant under this section and the number of jobs 
        created from those activities;
            (3) the percentage of individuals that have received 
        reemployment or worker transition assistance under this section 
        who are, during the second and fourth quarters after exiting 
        the program--
                    (A) in education or training activities; or
                    (B) employed;
            (4) the average wages of individuals that have received 
        reemployment or worker transition assistance under this section 
        during the second and fourth quarters after exit from the 
        program;
            (5) a description of any regional investment activities 
        carried out with a grant under this section;
            (6) a description of any export promotion activities 
        carried out with a grant under this section, including--
                    (A) a description of the products promoted; and
                    (B) an analysis of any increase in exports as a 
                result of the promotion;
            (7) a description of any resilience activities carried out 
        with a grant under this section;
            (8) a description of any cleanup activities from fossil 
        fuel industry facilities or carbon-intensive industries carried 
        out with a grant under this section; and
            (9) the distribution of funding among geographic and 
        socioeconomic groups, including urban and rural communities, 
        low-income communities, communities of color, and Indian 
        Tribes.
    (h) Funding.--
            (1) Initial funding.--There is appropriated to the 
        Secretary, out of any funds in the Treasury not otherwise 
        appropriated, $5,000,000,000 for each of fiscal years 2022 and 
        2023 to carry out this section, to remain available until 
        expended.
            (2) America's clean future fund.--The Secretary shall carry 
        out this section using amounts made available from the 
        America's Clean Future Fund under section 9512 of the Internal 
        Revenue Code of 1986 (as added by section 4).

SEC. 8. STUDY ON CARBON PRICING.

    (a) In General.--Not later than January 1, 2025, the Administrator 
of the Environmental Protection Agency (referred to in this section as 
the ``Administrator'') shall seek to enter into an agreement with the 
National Academy of Sciences under which the National Academy of 
Sciences shall carry out a study not less frequently than once every 5 
years to evaluate the effectiveness of the fees established under 
sections 4692 and 4693 of the Internal Revenue Code of 1986 in 
achieving the following goals:
            (1) A net reduction of greenhouse gas emissions by 45 
        percent, based on 2018 levels, by 2030.
            (2) A net reduction of greenhouse gas emissions by 100 
        percent, based on 2018 levels, by 2050.
    (b) Requirements.--In executing the agreement under subsection (a), 
the Administrator shall ensure that, in carrying out a study under that 
subsection, the National Academy of Sciences--
            (1) includes an evaluation of--
                    (A) total annual greenhouse gas emissions by the 
                United States, including greenhouse gas emissions not 
                subject to the fees described in that subsection;
                    (B) the historic trends in the total greenhouse gas 
                emissions evaluated under subparagraph (A); and
                    (C) the impacts of the fees established under 
                sections 4692 and 4693 of the Internal Revenue Code of 
                1986 on changes in the levels of fossil fuel-related 
                localized air pollutants in environmental justice 
                communities;
            (2) analyzes the extent to which greenhouse gas emissions 
        have been or would be reduced as a result of current and 
        potential future policies, including--
                    (A) a projection of greenhouse gas emissions 
                reductions that would result if the regulations of the 
                Administrator were to be adjusted to impose stricter 
                limits on greenhouse gas emissions than the goals 
                described in that subsection, with a particular focus 
                on greenhouse gas emissions not subject to the fees 
                described in that subsection;
                    (B) the status of greenhouse gas emissions 
                reductions that result from the fees established under 
                sections 4692 and 4693 of the Internal Revenue Code of 
                1986;
                    (C) a projection of greenhouse gas emissions 
                reductions that would result if the fees established 
                under those sections were annually increased--
                            (i) at the current price path; and
                            (ii) above the current price path;
                    (D) an analysis of greenhouse gas emissions 
                reductions that result from the policies of States, 
                units of local government, Tribal communities, and the 
                private sector;
                    (E) a projection of greenhouse gas emissions 
                reductions that would result from the promulgation of 
                additional Federal climate policies, including a clean 
                energy standard, increased fuel economy and greenhouse 
                gas emissions standards for motor vehicles, a low-
                carbon fuel standard, electrification of cars and 
                heavy-duty trucks, and reforestation of not less than 
                3,000,000 acres of land within the National Forest 
                System; and
                    (F) the status and projections of decarbonization 
                in other major economies; and
            (3) submits a report to the Administrator, Congress, and 
        the Board of Directors of the Climate Change Finance 
        Corporation describing the results of the study.

SEC. 9. ESTABLISHMENT OF TARGETS FOR CARBON SEQUESTRATION BY LAND AND 
              WATER.

    (a) In General.--The Chair of the Council on Environmental Quality, 
in consultation with the Secretaries of Agriculture, Commerce, and the 
Interior, the Chief of Engineers, and the Administrator of the 
Environmental Protection Agency, shall--
            (1) establish a target for carbon sequestration that can 
        reasonably be achieved through enhancing the ability of public 
        and private land and water to function as natural carbon sinks;
            (2) develop strategies for meeting that target; and
            (3) develop strategies to expand protections for coastal 
        ecosystems that sequester carbon and provide resiliency 
        benefits, such as--
                    (A) flood protection;
                    (B) soil and beach retention;
                    (C) erosion reduction;
                    (D) biodiversity;
                    (E) water purification; and
                    (F) nutrient cycling.
    (b) Report.--As soon as practicable after the date of enactment of 
this Act, the Chair of the Council on Environmental Quality shall 
submit to Congress a report describing--
            (1) the target and strategies described in paragraphs (1) 
        through (3) of subsection (a); and
            (2) any additional statutory authorities or authorized 
        funding levels needed to successfully implement those 
        strategies.
                                 <all>