[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9334 Introduced in House (IH)]

<DOC>






118th CONGRESS
  2d Session
                                H. R. 9334

 To strengthen domestic manufacturing, bring next generation iron and 
   steel back to the United States, and revitalize deindustrialized 
                                regions.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             August 9, 2024

  Mr. Khanna (for himself, Mr. Deluzio, Ms. Kaptur, Ms. Stevens, Mrs. 
  Dingell, Ms. Adams, Mr. Davis of North Carolina, Ms. Budzinski, Mr. 
    Lynch, Mrs. Foushee, Ms. Lee of Pennsylvania, and Mr. Thanedar) 
 introduced the following bill; which was referred to the Committee on 
    Ways and Means, and in addition to the Committee on Energy and 
Commerce, for a period to be subsequently determined by the Speaker, in 
   each case for consideration of such provisions as fall within the 
                jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
 To strengthen domestic manufacturing, bring next generation iron and 
   steel back to the United States, and revitalize deindustrialized 
                                regions.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Steel 
Modernization Act of 2024''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
                     TITLE I--INDUSTRIAL INNOVATION

Sec. 101. Covered financial assistance.
Sec. 102. Contract for differences pilot program.
Sec. 103. Near-zero emissions intensity iron production credit.
Sec. 104. Green iron and steel facility energy investment credits.
Sec. 105. Study and report on demand generation.
Sec. 106. Report on strategy to bring zero-greenhouse gas emissions 
                            electricity to the electric grid.
Sec. 107. Prohibition.
Sec. 108. Definitions.
                TITLE II--TARIFF ON DIRTY IMPORTED STEEL

Sec. 201. Calculation of emissions intensity.
Sec. 202. Imposition of emissions intensity tariff.
Sec. 203. Definitions.
                   TITLE III--EXPENDITURE OF REVENUES

Sec. 301. Administrative expenses.
Sec. 302. Economic Support Fund.

                     TITLE I--INDUSTRIAL INNOVATION

SEC. 101. COVERED FINANCIAL ASSISTANCE.

    (a) In General.--The Secretary of Energy shall, subject to the 
availability of appropriations for such purpose, award eligible 
entities covered financial assistance in accordance with this section.
    (b) Covered Financial Assistance.--The Secretary of Energy may 
award, on a competitive basis, covered financial assistance to an 
eligible entity to carry out a project for--
            (1) construction of an eligible facility that will use an 
        advanced industrial iron technology or an advanced industrial 
        steel technology;
            (2) the purchase, installation, or implementation, of an 
        advanced industrial iron technology or an advanced industrial 
        steel technology at an eligible facility;
            (3) retrofits, upgrades to, or operational improvements at, 
        an eligible facility to install or implement an advanced 
        industrial iron technology or an advanced industrial steel 
        technology at such eligible facility;
            (4) demonstration of an early-stage advanced industrial 
        iron technology or an early-stage advanced industrial steel 
        technology at an eligible facility; or
            (5) engineering studies and other work needed to construct 
        an eligible facility described in paragraph (1) or prepare an 
        eligible facility for activities described in paragraph (2), 
        (3) or (4).
    (c) Application.--
            (1) In general.--To be eligible to receive covered 
        financial assistance under this section, an eligible entity 
        shall submit to the Secretary of Energy an application at such 
        time, in such manner, and containing such information as the 
        Secretary may require, including--
                    (A) a plan for the proposed project, including a 
                description of--
                            (i) the technical and commercial viability 
                        of the applicable advanced industrial iron 
                        technology or advanced industrial steel 
                        technology;
                            (ii) how the project will enable the steel 
                        or iron industry to decrease its greenhouse gas 
                        emissions; and
                    (B) a description of how the eligible entity plans 
                to source domestically produced material, including 
                iron and steel, for all construction related to the 
                proposed project;
                    (C) any new iron, steel, or other metal production 
                capacity expected;
                    (D) the expected greenhouse gas emissions 
                reductions to be achieved at the eligible facility and 
                the methods for calculating such emissions reductions;
                    (E) the expected number of new jobs that will be 
                created;
                    (F) the expected number of jobs retained that may 
                have otherwise been terminated;
                    (G) the expected impact on production and capacity 
                at existing facilities, including any related plans to 
                idle or close a facility or layoff or reduce hours for 
                current employees;
                    (H) a breakdown of costs of the project, including 
                a proposed Federal Government share of total costs;
                    (I) a plan to recruit and train, and provide 
                employment and advancement for women, people of color, 
                people of lower economic status, and other minorities;
                    (J) assurances that all laborers and mechanics 
                employed by the eligible entity or any contractor or 
                subcontractor in the performance of construction, 
                alteration, or repair work (including retrofits, 
                upgrades, and any other improvements) carried out, in 
                whole or in part, with covered financial assistance 
                made available under this Act shall be paid wages at 
                rates not less than those prevailing on projects of a 
                character similar in the locality as determined by the 
                Secretary of Labor in accordance with subchapter IV of 
                chapter 31 of title 40, United States Code. With 
                respect to the labor standards specified in this 
                subsection, 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;
                    (K) with respect to any eligible facility for which 
                the total estimated cost of the construction contract 
                is $25,000,000 or more, an assurance that every 
                contractor and subcontractor engaged in the 
                construction on the project agree, for that project, to 
                negotiate or become a party to a project labor 
                agreement as that term is defined in section 22.502 of 
                title 48, Code of Federal Regulations; and
                    (L) for eligible entities that are applying for 
                more than $50,000,000 of covered financial assistance 
                under this section--
                            (i) a plan for how the eligibly entity will 
                        carry out the training program described in 
                        subsection (g)(1);
                            (ii) a community benefits plan that meets 
                        the requirements of subsection (h); and
                            (iii) a commitment and plan to conduct town 
                        halls with local communities, including 
                        frontline communities, membership-based 
                        nonprofit organizations with members in the 
                        community, and labor organizations, and get 
                        letters of support from community groups 
                        representing a broad range of constituencies 
                        that demonstrate that the groups understand the 
                        eligible entity's planned project and agree to 
                        it.
            (2) Evaluation criteria.--The Secretary of Energy shall 
        publish criteria on evaluating applications submitted under 
        this subsection.
    (d) Requirements for Awardees.--
            (1) Production and emission intensity requirements.--
                    (A) In general.--An eligible facility with respect 
                to which covered financial assistance under this 
                section is awarded shall--
                            (i) begin production of near-zero emissions 
                        intensity steel or near-zero emissions 
                        intensity iron not later than the earlier of--
                                    (I) January 1, 2035; and
                                    (II) the date that is 7 years after 
                                the date on which covered financial 
                                assistance for the project is received 
                                by the applicable eligible entity; and
                            (ii) after the date of production described 
                        in clause (i) begins, only produce iron that is 
                        near-zero emissions intensity iron or steel 
                        that is near-zero emissions intensity steel.
                    (B) Projects to upgrade blast furnaces.--
                            (i) In general.--An eligible facility with 
                        respect to which covered financial assistance 
                        under this section is awarded for any project 
                        to upgrade a blast furnace that actively 
                        produces iron as of the date of enactment of 
                        this Act shall achieve at least a 50 percent 
                        reduction in emissions intensity at the start 
                        of production of near-zero emissions intensity 
                        iron relative to average emissions intensity of 
                        the iron produced by the eligible facility 
                        between June 1, 2023, and June 1, 2024.
                            (ii) Use of clean hydrogen.--For a project 
                        described in clause (i) that will upgrade to a 
                        direct reduced iron furnace, such direct 
                        reduced iron furnace shall--
                                    (I) be capable of using 100 percent 
                                hydrogen to reduce iron ore;
                                    (II) blend at least 10 percent non-
                                fossil based hydrogen not later than 2 
                                years after the direct reduced iron 
                                furnace commences operation; and
                                    (III) use 100 percent clean 
                                hydrogen by the earlier of the dates 
                                described in clause (i).
                            (iii) Modifications to requirements.--In 
                        the event that hydrogen is not available in 
                        sufficient volumes or at reasonable price (as 
                        determined by the Secretary of Energy, in 
                        consultation with stakeholders from relevant 
                        industries) the Secretary may, as the Secretary 
                        determines appropriate, modify any requirement 
                        under clause (ii).
            (2) Emissions reporting requirements.--
                    (A) Reporting to doe.--An eligible entity awarded 
                covered financial assistance under this section shall 
                report to the Secretary of Energy any greenhouse gas 
                emissions (determined on a mine-to-metal basis), 
                related to the production by the applicable eligible 
                facility of iron or steel after the date on which 
                covered financial assistance is received by the 
                eligible entity.
                    (B) Eligible facility specific environmental 
                product declarations.--An eligible entity awarded 
                covered financial assistance under this section shall 
                offer to provide buyers of the near-zero emissions 
                intensity steel or near-zero emissions intensity iron 
                produced at the applicable eligible facility 
                environmental product declarations that are--
                            (i) specific to the near-zero emissions 
                        intensity steel or near-zero emissions 
                        intensity iron produced at such eligible 
                        facility; and
                            (ii) updated at least annually, beginning 
                        not later than 12 months after production of 
                        such near-zero emissions intensity steel or 
                        near-zero emissions intensity iron begins.
            (3) Training.--Eligible entities that receive covered 
        financial assistance of more than $50,000,000 under this 
        section shall meet the requirements under subsection (g).
            (4) Community benefits.--Eligible entities that receive 
        covered financial assistance of more than $50,000,000 under 
        this section shall meet the requirements under subsection (h).
            (5) Wages.--Eligible entities that receive covered 
        financial assistance under this Act shall comply with the 
        requirements under subsection (c)(1)(J).
            (6) Project labor agreements.--With respect to any eligible 
        facility for which the total estimated cost of the construction 
        contract is $25,000,000 or more, the eligible entity shall 
        comply with the requirements under subsection (c)(1)(K).
    (e) Priority.--The Secretary of Energy shall--
            (1) in awarding covered financial assistance under this 
        section, give priority--
                    (A) to eligible entities that will support training 
                of current and former workers to build skills required 
                to work in an upgraded or new facility and retention of 
                such current workers;
                    (B) to eligible entities that will ensure the 
                utilization of registered apprentices during the 
                construction of the eligible facility in accordance 
                with the standards and requirements set forth in parts 
                29 and 30 of title 29, Code of Federal Regulations;
                    (C) to projects that will be carried out in 
                existing or legacy iron or steel-making communities;
                    (D) to eligible entities that commit to hiring at 
                least 25 percent of the applicable workforce from an 
                existing or legacy iron or steel-making community;
                    (E) to projects based on the extent to which the 
                applicable project would provide the greatest benefit 
                to the greatest number of people within the 
                metropolitan area in which the eligible facility is 
                located;
                    (F) to projects based on the expected greenhouse 
                gas emissions reductions to be achieved by carrying out 
                the applicable project;
                    (G) to projects based on the extent to which the 
                applicable project will enable the steel or iron 
                industry to decrease its greenhouse gas emissions by 
                2050;
                    (H) to projects that will result in the largest 
                improvement in air quality;
                    (I) to projects to upgrade blast furnaces that 
                actively produce iron as of the date of enactment of 
                this Act;
                    (J) to eligible entities based on whether the 
                applicable eligible entity participates or would 
                participate in a program that connects producers of 
                near-zero emissions intensity steel or near-zero 
                emissions intensity iron with buyers of such near-zero 
                emissions intensity steel or near-zero emissions 
                intensity iron;
                    (K) to eligible entities that commit, and provide a 
                plan, to source at least 30 percent of electricity for 
                use at the project site from zero-carbon sources within 
                2 years of receiving the covered financial assistance, 
                and use 100 percent zero-carbon electricity by 2035, 
                with the Secretary of Energy determining the rate at 
                which such zero-carbon electricity use should scale to 
                100 percent; and
                    (L) to projects that would result in an increased 
                supply of iron or steel products that are needed by 
                current and prospective end users as identified through 
                a request for information issued not later than 2 
                months after the date of enactment of this Act by the 
                Department of Energy's Office of Clean Energy 
                Demonstrations; and
            (2) in awarding covered financial assistance for over 
        $50,000,000 under this section, give priority to eligible 
        entities that commit to--
                    (A) employing local individuals and individuals 
                from frontline communities, and providing robust 
                training, workforce development opportunities, 
                mentorship programs and career advancement 
                opportunities to these individuals;
                    (B) and provide a plan for--
                            (i) contracting with an objective and 
                        independent third party to conduct a report to 
                        forecast the impact of the applicable proposed 
                        project on pollution and health of individuals 
                        in the project area; and
                            (ii) contracting with an objective and 
                        independent third party to conduct air quality 
                        monitoring before any construction associated 
                        with the proposed project begins and continuing 
                        until 6 months after such construction ends, in 
                        frontline communities that are exposed to 
                        persistent air pollution and within 25 miles of 
                        the metropolitan area where which such 
                        construction will occur; and
                    (C) building new zero-carbon electricity generation 
                capacity, hydrogen generation capacity, or energy 
                storage capacity.
    (f) Cost Share and Amounts.--
            (1) Cost share.--The non-Federal cost share of a project 
        for which covered financial assistance is provided under this 
        section shall be not less than 50 percent, as determined by the 
        Secretary of Energy.
            (2) Alignment with emissions intensity.--The Secretary of 
        Energy shall determine the cost-share and amount of covered 
        financial assistance awarded to an eligible entity under this 
        section based on the final emissions intensity of the near-zero 
        emissions intensity steel or near-zero emissions intensity iron 
        to be produced.
            (3) Total amount.--The amount of covered financial 
        assistance provided under this section shall not exceed 
        $500,000,000 per project.
            (4) Inflation adjustment.--
                    (A) In general.--In the case of any calendar year 
                beginning after 2024, there shall be substituted for 
                any dollar amount described in subparagraph (B), an 
                amount equal to the product of--
                            (i) such dollar amount, multiplied by
                            (ii) the inflation adjustment factor for 
                        such calendar year determined under section 
                        43(b)(3)(B) of the Internal Revenue Code of 
                        1986 for such calendar year, determined by 
                        substituting ``2023'' for ``1990''.
                    (B) Amounts described.--Subparagraph (A) shall 
                apply with respect to each dollar amount in--
                            (i) subsection (c)(1)(J);
                            (ii) subsection (e)(2);
                            (iii) paragraph (3) of this subsection;
                            (iv) subsection (g)(1); and
                            (v) section 201.
    (g) Supporting Good Careers.--
            (1) Training required.--
                    (A) In general.--Beginning on the date that an 
                eligible entity receives any amount of covered 
                financial assistance under this Act in excess of 
                $50,000,000, and ending on the date that is 5 years 
                after the date the eligible entity received such 
                covered financial assistance, an eligible entity 
                shall--
                            (i) carry out a training program described 
                        in subparagraph (B);
                            (ii) reserve 5 percent of the labor costs 
                        of the eligible entity to carry out such 
                        training program; and
                            (iii) not later than 12 months after any 
                        such receipt, certify to the Secretary that the 
                        eligible entity is carrying out such training 
                        program.
                    (B) Training requirements.--
                            (i) In general.--An eligible entity 
                        required to carry out a training program 
                        required under subparagraph (A)(i) shall 
                        satisfy the following requirements:
                                    (I) Participants in the training 
                                program shall be trained to learn 
                                skills or knowledge that are related to 
                                the production of near-zero emissions 
                                intensity iron or near-zero emissions 
                                intensity steel.
                                    (II) Such participants shall be 
                                existing employees, new hires, or 
                                prospective employees of the eligible 
                                entity.
                                    (III) The participants shall be 
                                paid at a rate equivalent to that of an 
                                individual working full-time in the 
                                position for which they are training.
                                    (IV) If a participant is not 
                                guaranteed full-time employment with 
                                the eligible entity after the 
                                completion of the training program, 
                                such a participant shall be provided a 
                                stipend (as described in clause (ii)) 
                                on a weekly basis.
                                    (V) An eligible entity shall 
                                provide to each individual who 
                                completes the training program a 
                                certificate of completion that states 
                                the skills and knowledge taught during 
                                the program.
                            (ii) Stipend.--
                                    (I) Amount.--The Federal share of a 
                                stipend provided to an individual 
                                described in clause (i)(IV) shall be--
                                            (aa) equal to $500 for each 
                                        month; and
                                            (bb) not more than $2500 in 
                                        aggregate.
                                    (II) Relationship to other 
                                programs.--A stipend provided to an 
                                individual described in clause (i)(IV) 
                                shall not be taken into account in 
                                determining the need or eligibility of 
                                such individual for any Federal, State, 
                                or local program financed in whole or 
                                in part with Federal funds.
                    (C) Government match.--
                            (i) Amount.--During the period described in 
                        subparagraph (A), the Secretary of Energy shall 
                        provide to an eligible entity, on a monthly 
                        basis for each individual participating in 
                        training program carried out by the eligible 
                        entity, the lesser of--
                                    (I) $500; or
                                    (II) an amount not to exceed 25 
                                percent of--
                                            (aa) the training 
                                        participant's salary described 
                                        in subparagraph (B)(iii); or
                                            (bb) if the training 
                                        participant is not guaranteed 
                                        full-time employment after 
                                        completion of the training 
                                        program, the stipend provided 
                                        to the training participant.
                            (ii) Maximum.--The Secretary of Energy may 
                        not provide to an eligible entity more than 
                        $2,500 per training participant for each 
                        instance of covered financial assistance 
                        provided to the eligible entity.
                    (D) Labor-management committee.--An eligible entity 
                described in subparagraph (A) shall establish a labor-
                management committee that--
                            (i) oversees the training program required 
                        under subparagraph (A)(i);
                            (ii) regularly raises safety concerns to 
                        the eligible entity for the eligible entity to 
                        address; and
                            (iii) provides to the eligible entity a 
                        reasonable process and time line to address 
                        such concerns to mitigate injuries at the 
                        workplace.
            (2) Labor representation.--
                    (A) In general.--With respect to the employees 
                employed by an eligible entity at an eligible facility 
                that is supported by covered financial assistance 
                provided under this Act, the eligible entity that 
                employs such employees, and any labor organization that 
                seeks to represent such employees, this paragraph shall 
                supersede the National Labor Relations Act (29 U.S.C. 
                151 et seq.) to the extent that such Act conflicts with 
                this paragraph.
                    (B) Recognition.--An eligible entity described in 
                subparagraph (A) shall recognize, for purposes of 
                collective bargaining, a labor organization that 
                demonstrates that a majority of the employees at an 
                eligible facility described in subparagraph (A), in a 
                unit appropriate for collective bargaining, have signed 
                valid authorizations designating the labor organization 
                as their collective bargaining representative and that 
                no other labor organization is certified or recognized 
                pursuant to section 9 of the National Labor Relations 
                Act (29 U.S.C. 159) as the exclusive representative of 
                any of the employees in such unit who perform or will 
                perform such work. Upon demonstrating that a majority 
                of the employees in the unit have designated a labor 
                organization as their collective bargaining 
                representative, the eligible entity shall notify the 
                labor organization and the National Labor Relations 
                Board that the eligible entity--
                            (i) has determined that the labor 
                        organization represents a majority of the 
                        employees in such unit who perform or will 
                        perform such work; and
                            (ii) recognizes such labor organization as 
                        the exclusive representative of the employees 
                        in such unit.
                    (C) Dispute resolution and unit certification.--
                            (i) In general.--If a dispute over majority 
                        status or the appropriateness of the unit 
                        described in subparagraph (B) arises between 
                        the eligible entity and the labor organization, 
                        either party may request that the National 
                        Labor Relations Board investigate and resolve 
                        the dispute.
                            (ii) Finding of majority status.--If the 
                        Board finds that a majority of the employees in 
                        a unit appropriate for purposes of collective 
                        bargaining who perform or will perform work 
                        funded under this section has signed valid 
                        authorizations designating the labor 
                        organization as their representative for such 
                        purposes and that no other individual or labor 
                        organization is certified or recognized as the 
                        exclusive representative of any of the 
                        employees in the unit who perform or will 
                        perform such work for such purposes, the Board 
                        shall not direct an election but shall certify 
                        the labor organization as the representative 
                        described in section 9(a) of the National Labor 
                        Relations Act (29 U.S.C. 159(a)).
                    (D) Meetings and collective bargaining 
                agreements.--Not later than 10 days after an eligible 
                entity described in subparagraph (A) receives a written 
                request for collective bargaining from a labor 
                organization representing the employees of the entity 
                who perform or will perform work at an eligible 
                facility that is supported by funds provided pursuant 
                to this Act, or within such period as the parties may 
                agree upon, the labor organization and eligible entity 
                shall meet to begin bargaining and shall make every 
                reasonable effort to conclude and sign a collective 
                bargaining agreement.
                    (E) Mediation and conciliation.--If, after the 
                expiration of the 90-day period beginning on the date 
                on which collective bargaining is commenced under 
                subparagraph (D), or such additional period as the 
                parties may agree upon, the parties have failed to 
                reach an agreement, either party may notify the Federal 
                Mediation and Conciliation Service (referred to in this 
                paragraph as the ``Service'') of the existence of a 
                dispute and request mediation. Whenever such a request 
                is received, it shall be the duty of the Service 
                promptly to communicate with the parties and to use its 
                best efforts, by mediation and conciliation, to bring 
                them to agreement.
                    (F) Tripartite arbitration.--
                            (i) In general.--If, after the expiration 
                        of the 30-day period beginning on the date on 
                        which the request for mediation is made under 
                        subparagraph (E), or such additional period as 
                        the parties may agree upon, the Service is not 
                        able to bring the parties to agreement by 
                        mediation and conciliation, the Service shall 
                        refer the dispute to a tripartite arbitration 
                        panel established in accordance with such 
                        regulations as may the Service may prescribe.
                            (ii) Members.--A tripartite arbitration 
                        panel established under this subparagraph with 
                        respect to a dispute shall be composed of 1 
                        member selected by the labor organization, 1 
                        member selected by the eligible entity, and 1 
                        neutral member mutually agreed to by the labor 
                        organization and the eligible entity. Each such 
                        member shall be selected not later than 14 days 
                        after the expiration of the 30-day period 
                        described in clause (i) with respect to such 
                        dispute. Any member not so selected by the date 
                        that is 14 days after the expiration of such 
                        period shall be selected by the Service.
                            (iii) Decisions.--
                                    (I) In general.--A majority of a 
                                tripartite arbitration panel 
                                established under this subparagraph 
                                with respect to a dispute shall render 
                                a decision settling the dispute as soon 
                                as practicable and (absent 
                                extraordinary circumstances or by 
                                agreement of the parties) the panel 
                                shall render such decision not later 
                                than 120 days after the establishment 
                                of the panel.
                                    (II) Length of decision.--Such a 
                                decision shall be binding upon the 
                                parties for a period of 2 years, unless 
                                amended during such period by written 
                                consent of the parties.
                                    (III) Decision considerations.--The 
                                panel shall consider the following when 
                                making a decision:
                                            (aa) The financial status 
                                        and future financial status of 
                                        the eligible entity.
                                            (bb) The size and type of 
                                        the operation and business of 
                                        the eligible entity.
                                            (cc) The cost of living of 
                                        the employees employed by the 
                                        eligible entity.
                                            (dd) The ability of such 
                                        employees to sustain 
                                        themselves, their families, and 
                                        their dependents on the wages 
                                        and benefits earned from the 
                                        eligible entity.
                                            (ee) The wages and benefits 
                                        other employees earn in the 
                                        same or a similar industry.
                    (G) Contractors and subcontractors.--An eligible 
                entity described in subparagraph (A) may only procure 
                goods or services from a contractor or subcontractor, 
                whose employees perform or will perform work funded 
                under this section, if the contractor or subcontractor 
                comply with the requirements set forth in subparagraphs 
                (A) through (F).
                    (H) Definitions.--In this paragraph, the terms 
                ``employee'' and ``labor organization'' have the 
                meanings given the terms in section 2 of the National 
                Labor Relations Act (29 U.S.C. 152).
                    (I) Limitation of funds.--An eligible entity may 
                not assist, promote, or deter organizing of labor 
                organizations.
            (3) Sense of congress.--It is the sense of Congress that--
                    (A) the United States must tap into all our 
                Nation's talent in order to successfully usher in an 
                industrial renaissance in the United States;
                    (B) building a factory is not enough, it is 
                necessary to build the infrastructure and ecosystem to 
                power such factory;
                    (C) the United States must make sure jobs in the 
                iron and steel industries, and in all industries, are 
                good jobs, that all workers have quality, affordable 
                childcare and healthcare, and that all jobs pay a 
                family-sustaining wage;
                    (D) child care is critical to expanding employment 
                opportunities for economically disadvantaged 
                individuals, especially for economically disadvantaged 
                women and children; and
                    (E) to meet families' needs and expand employment 
                opportunity, child care should be--
                            (i) affordable, with costs in reach for 
                        low- and medium-income households;
                            (ii) accessible, at a convenient location 
                        with hours that meet workers' needs;
                            (iii) reliable, giving workers confidence 
                        that they will not need to miss work for 
                        unexpected child care issues; and
                            (iv) high-quality, providing a safe and 
                        healthy environment that families can trust and 
                        that nurtures the healthy growth and 
                        development of children.
    (h) Community Benefits.--
            (1) Advisory council.--
                    (A) Establishment.--
                            (i) In general.--The Secretary of Energy 
                        and the Administrator of the Environmental 
                        Protection Agency, in consultation with, and 
                        written approval from, the White House 
                        Environmental Justice Advisory Council, shall 
                        jointly establish an advisory council (in this 
                        section referred to as the ``advisory 
                        council'') to--
                                    (I) not later than 5 months after 
                                the date of enactment of this Act, 
                                submit to the Secretary of Energy 
                                guidance on--
                                            (aa) information to be 
                                        included in a community 
                                        benefits plan under this 
                                        section; and
                                            (bb) criteria for weighing 
                                        the strength of a community 
                                        benefits plan submitted under 
                                        this section;
                                    (II) not later than 2 years after 
                                the date of enactment of this Act, 
                                submit to the Secretary of Energy 
                                guidance on information to be included 
                                in a community benefits agreement under 
                                this section; and
                                    (III) act as a liaison to 
                                communities described in paragraph 
                                (3)(A) by sharing--
                                            (aa) information and 
                                        resources developed by the 
                                        Department of Energy or 
                                        eligible entity applicants 
                                        about the proposed projects and 
                                        their environmental, public 
                                        health, and jobs impacts; and
                                            (bb) community input with 
                                        eligible entity applicants and 
                                        the Secretary of Energy in 
                                        order to facilitate the 
                                        drafting of community benefits 
                                        plans.
                            (ii) Formation.--In establishing the 
                        advisory council, the Secretary of Energy and 
                        the Administrator of the Environmental 
                        Protection Agency shall jointly--
                                    (I) publish in the Federal Register 
                                an announcement about its formation; 
                                and
                                    (II) conduct targeted outreach and 
                                recruiting to ensure there is adequate 
                                stakeholder representation on the 
                                advisory council.
                    (B) Representatives.--
                            (i) In general.--The advisory council shall 
                        consist of representatives from existing or 
                        legacy iron or steel-making communities, 
                        communities that will be significantly affected 
                        by the steel supply chain, labor organizations, 
                        civil society and public interest advocates who 
                        represent the interests of such communities, 
                        membership-based nonprofit organizations with 
                        members in the community, constituencies of 
                        such communities, and individuals who have 
                        experience negotiating workforce and community 
                        benefits agreements.
                            (ii) Additional representatives.--The 
                        Secretary of Energy may add additional members 
                        to the advisory council who represent 
                        communities described in paragraph (3)(A), as 
                        determined appropriate by the Secretary.
                            (iii) Compensation.--Frontline community 
                        members who serve on the advisory council shall 
                        be compensated for their time using funds made 
                        available to carry out this Act.
                            (iv) Participation.--Participation in the 
                        advisory council does not preclude members from 
                        also serving in a community benefits group 
                        described in paragraph (6).
            (2) Guidelines.--
                    (A) Request for information.--Not later than 1 
                month after the date of enactment of this Act, the 
                Secretary of Energy shall publish a request for 
                information (to remain open for a period of not less 
                than 3 months) soliciting information from individuals 
                living in existing or legacy iron or steel-making 
                communities and individuals with experience negotiating 
                community benefits agreements on criteria that should 
                be included in guidelines for community benefits plans 
                and guidelines community benefits agreements under this 
                subsection.
                    (B) Publication.--The Secretary of Energy shall 
                develop and, not later than 5 months after the date of 
                enactment of this Act, publish on the platform 
                established under this subsection guidelines and 
                required inclusions for community benefits plans and 
                guidelines and required inclusions for community 
                benefits agreements under this subsection. In 
                developing such guidelines and required inclusions, the 
                Secretary shall take into consideration any information 
                solicited pursuant to subparagraph (A), guidance 
                submitted by the advisory council under paragraph 
                (1)(A), and any relevant information from existing 
                community benefits plan processes of the Department of 
                Energy, including for the Industrial Demonstrations 
                Program of the Department of Energy.
                    (C) Updates.--The Secretary of Energy may update 
                the guidelines published under subparagraph (B) as the 
                Secretary determines appropriate.
            (3) Required inclusions.--A community benefits plan 
        required to be included in an application under this section 
        shall include the following:
                    (A) A stakeholder analysis that--
                            (i) identifies any community that is 
                        located in an area that is within a 25 mile 
                        radius of the applicable eligible facility, and 
                        members of such a community, that may be 
                        impacted by the applicable proposed project or 
                        by operation of the applicable eligible 
                        facility, including impacts on social, 
                        economic, and environmental conditions, 
                        including cumulative effects, and impacts on 
                        members of such a community who are 
                        traditionally excluded from decision-making 
                        processes; and
                            (ii) examines potential reasons for such 
                        exclusion, including community history and 
                        dynamics, including social, cultural, 
                        environmental, economic, and political 
                        landscapes.
                    (B) Information on prior and ongoing efforts by the 
                applicant to engage local stakeholder groups who may be 
                impacted by the applicable proposed project or by 
                operation of the applicable eligible facility.
                    (C) A description of existing concerns impacting 
                communities described in subparagraph (A) that have 
                already been identified through input to the advisory 
                council and other government tools or surveys that 
                enable government agencies to understand the economic, 
                social, environmental, and labor circumstances of these 
                communities, including the Climate and Economic Justice 
                Screening Tool, academic research, media reports, 
                citizen enforcement actions for permit violations, and 
                public hearings.
                    (D) A description of potential concerns impacting 
                communities described in subparagraph (A) emanating 
                from the applicable proposed project or operation of 
                the applicable eligible facility.
                    (E) A description of benefits that the applicable 
                eligible entity can deliver to communities described in 
                subparagraph (A) that reflect the eligible entity's 
                understanding of such existing concerns and such 
                potential concerns.
                    (F) A strategy for--
                            (i) sharing the descriptions under 
                        subparagraphs (C), (D), and (E);
                            (ii) disseminating the community benefits 
                        plan; engaging with communities described in 
                        subparagraph (A); and
                            (iii) incorporating such communities' 
                        feedback into any applicable community benefits 
                        agreement.
                    (G) A strategy for reporting and verifying progress 
                on delivering the benefits described in subparagraph 
                (E) with communities described in subparagraph (A).
                    (H) A description of the resources that the 
                eligible entity plans to provide to ensure the full 
                participation of communities described in subparagraph 
                (A) in discussions with the eligible entity, including 
                participation of members of such communities who are 
                traditionally excluded from decision-making processes, 
                including providing facts regarding the potential 
                impacts of the proposed project and operation of the 
                applicable eligible facility after completion of such 
                project on such communities, monetary resources to 
                compensate for members of the applicable community 
                benefits group described in paragraph (6) for their 
                time, experts who can interpret the information shared 
                by the eligible entity and represent such communities' 
                perspectives, and other support measures to facilitate 
                engagement, such as providing childcare and food during 
                discussions.
                    (I) A commitment to, and a plan for how such 
                eligible entity will, cover the costs of training and 
                skills and knowledge acquisition for community liaisons 
                focused on air quality monitoring and reduction of air 
                pollution. 
                    (J) A commitment to, and a plan for how such 
                eligible entity will, regularly and actively engage 
                with frontline communities and leaders to determine and 
                develop legally binding community benefit agreements 
                and report progress on its execution.
                    (K) Any additional information the Secretary of 
                Energy determines appropriate based on the guidance 
                submitted by the advisory council pursuant to paragraph 
                (1).
            (4) Consideration.--The strength of a community benefits 
        plan submitted pursuant to this section, as determined by the 
        Department of Energy Merit Reviewer process, shall constitute 
        at least 20 percent of the graded criteria in determining 
        whether to award covered financial assistance under this 
        section.
            (5) Platform.--
                    (A) Establishment.--The Secretary of Energy shall 
                establish a platform to host the text of each--
                            (i) community benefits plan submitted by an 
                        eligible entity awarded covered financial 
                        assistance under this section;
                            (ii) memorandum of understanding described 
                        in paragraph (6); and
                            (iii) final community benefits agreement 
                        entered into pursuant to paragraph (7).
                    (B) Redacted information.--The Secretary of Energy 
                may, on a case-by-case basis, redact confidential 
                business information from the platform established 
                under subparagraph (A).
            (6) Memorandum of understanding.--
                    (A) In general.--Not later than 6 months after 
                initial receipt of covered financial assistance under 
                this section, an eligible entity awarded such covered 
                financial assistance shall seek to enter into a 
                memorandum of understanding with a community benefits 
                group described in subparagraph (C).
                    (B) Inclusions.--A memorandum of understanding 
                under this paragraph shall include a commitment to 
                enter into a community benefits agreement in accordance 
                with paragraph (7).
                    (C) Membership of community benefits group.--A 
                community benefits group described in this subparagraph 
                shall include individuals who represent the communities 
                identified in paragraph (3)(A), including members of 
                such communities who are traditionally excluded from 
                decision-making processes.
                    (D) Recruitment.--An eligible entity awarded 
                covered financial assistance under this section shall 
                recruit individuals described in subparagraph (C) to 
                serve on a community benefits group described in such 
                subparagraph and publicize the opportunity for 
                additional stakeholders to self-identify and self-
                nominate to the community benefits group.
                    (E) Compensation.--Members of a community benefits 
                group described in subparagraph (C) shall be 
                remunerated for their time and receive resources in 
                accordance with the eligible entity's community 
                benefits plan.
            (7) Community benefits agreement.--
                    (A) In general.--Not later than one year after 
                entering into a memorandum of understanding with a 
                community benefits group in accordance with paragraph 
                (6), an eligible entity awarded covered financial 
                assistance under this section shall seek to enter into 
                a legally binding community benefits agreement with 
                such community benefits group.
                    (B) Compensation and expenses.--
                            (i) Compensation.--Members of the community 
                        benefits group participating in negotiations of 
                        a community benefits agreement shall be 
                        remunerated for their time and receive 
                        resources that facilitate their engagement. 
                        Failure to enter into a community benefits 
                        agreement pursuant to this subsection shall not 
                        eliminate the obligation of an eligible entity 
                        to reimburse the applicable community benefits 
                        group and any other member of the impacted 
                        community who is participating in such 
                        negotiations for their time engaging with the 
                        eligible entity.
                            (ii) Legal representation.--A community 
                        benefits group described under subparagraph (A) 
                        shall select its own legal representation for 
                        all matters relating to a community benefits 
                        agreement, which will be paid for by the 
                        applicable eligible entity described in such 
                        subparagraph.
                    (C) Mediation required.--Any dispute that cannot be 
                resolved within a reasonable period of time (as 
                determined by the Secretary of Energy) between a 
                community benefits group and eligible entity under this 
                section shall be resolved through mediation with a 
                mediator selected by the community benefits group.
                    (D) Community letter.--If a community benefits 
                agreement is not entered into by the deadline under 
                subparagraph (A), the applicable eligible entity shall 
                be required to submit to the Secretary of Energy a 
                letter from the applicable community benefits group 
                ascertaining good faith effort by the eligible entity 
                in order for the eligible entity to remain eligible to 
                receive covered financial assistance and extend the 
                time allowed for negotiations with community. In order 
                for currently operating iron and steel facilities to 
                remain eligible for covered financial assistance, the 
                Administrator of the Environmental Protection Agency 
                shall additionally confirm through the Environmental 
                Protection Agency's modeling the emissions and co-
                pollution reduction potential stipulated in this Act 
                and the award decision.
                    (E) Consequences for failure to adhere to 
                agreement.--Failure to enter into a community benefits 
                agreement by the deadline under subparagraph (A) and to 
                submit a letter pursuant to subparagraph (D), or 
                failure to abide by a community benefits agreement 
                entered into pursuant to this subsection, shall result 
                in the suspension of funding under this section.
    (i) Denial of Double Benefit.--
            (1) Section 48C(f) of the Internal Revenue Code of 1986 is 
        amended to read as follows:
    ``(f) Denial of Double Benefit.--A credit shall not be allowed 
under this section for any qualified investment--
            ``(1) with respect to which any covered financial 
        assistance was awarded under section 101 of the Steel 
        Modernization Act of 2024, or
            ``(2) for which a credit is allowed under section 48, 48A, 
        48B, 48E, 45Q, or 45V.''.
            (2) Effective date.--The amendment made by this subsection 
        shall apply to property placed in service after the date of the 
        enactment of this Act.
    (j) Limitation.--Covered financial Assistance awarded under this 
section may not be used for the construction, installation, use, or 
maintenance of equipment involved in the capture or sequestration of 
carbon oxides.
    (k) Termination of Awards.--The Secretary of Energy may not award 
covered financial assistance under this section after December 31, 
2032.
    (l) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $10,000,000,000.

SEC. 102. CONTRACT FOR DIFFERENCES PILOT PROGRAM.

    (a) Establishment of Pilot Program.--The Secretary of Energy shall 
establish a pilot program to enter into contracts, on a competitive 
basis, with entities for payment of costs associated with the 
production or purchase of near-zero emissions intensity steel.
    (b) Selection.--
            (1) Minimum number.--Not later than 10 years after the date 
        of enactment of this Act, the Secretary shall enter into at 
        least 2 contracts under the pilot program established under 
        this section, with each contract term for a period of no longer 
        than 5 years.
            (2) Direct reduced iron furnace.--At least one of the 
        contracts entered into under paragraph (1) shall be for payment 
        of costs associated with the production or purchase of near-
        zero emissions intensity steel that is produced using a direct 
        reduced iron furnace.
    (c) Amount.--The amount of a payment, with respect to near-zero 
emissions intensity steel described in subsection (a), to an entity 
with which the Secretary of Energy has entered into a contract under 
the pilot program established under subsection (a) shall be--
            (1) the cost of such near-zero emissions intensity steel 
        that is produced or purchased; minus
            (2) the applicable fair market value, as determined by the 
        Secretary of Energy, to produce or purchase an equal quantity 
        of conventional steel.
    (d) Wages and Project Labor Agreement Requirements.--An eligible 
entity that enters into a contract under the pilot program established 
under this section shall--
            (1) comply with the requirements under section 
        101(c)(1)(J); and
            (2) with respect to any eligible facility for which the 
        total estimated cost of the construction contract is 
        $25,000,000 or more, comply with the requirements under section 
        101(c)(1)(K).
    (e) Authorization of Appropriations.--There is authorized to be 
appropriated $500,000,000 to carry out this section.

SEC. 103. NEAR-ZERO EMISSIONS INTENSITY IRON PRODUCTION CREDIT.

    (a) In General.--Subpart D of subchapter A of chapter 1 of the 
Internal Revenue Code of 1986 is amended by adding at the end the 
following new section:

``SEC. 45BB. NEAR-ZERO EMISSIONS INTENSITY IRON PRODUCTION CREDIT.

    ``(a) In General.--For purposes of section 38, in the case of an 
eligible taxpayer, the near-zero emissions intensity iron production 
credit for any taxable year is an amount equal to $89 per ton of near-
zero emissions intensity iron produced by the taxpayer at an eligible 
facility during such taxable year.
    ``(b) Limitation.--The amount determined under subsection (a) with 
respect to iron produced at an eligible facility with respect to which 
a credit was allowed under section 38 by reason of subsection (a) for 
10 prior taxable years shall be zero.
    ``(c) Definitions.--For purposes of this section--
            ``(1) Eligible taxpayer.--The term `eligible taxpayer' 
        means a taxpayer that--
                    ``(A) is not under the influence, control, or 
                ownership of a foreign entity of concern (as defined in 
                section 108 of the Steel Modernization Act of 2024),
                    ``(B) has, with respect to any eligible facility 
                with respect to which a credit is determined under 
                section 38 by reason of this section for a taxable 
                year, fulfilled the following requirements at all times 
                during such taxable year:
                            ``(i) The requirements described in 
                        paragraphs (1), (5), and (6) of section 101(d) 
                        of the Steel Modernization Act of 2024.
                            ``(ii) All requirements made applicable to 
                        any entity described in section 101(g) of the 
                        Steel Modernization Act of 2024.
            ``(2) Eligible facility; near-zero emissions intensity 
        iron.--The terms `eligible facility' and `near-zero emissions 
        intensity iron' have the meanings given such terms in section 
        108 of the Steel Modernization Act of 2024.
    ``(d) No Double Benefit.--The amount determined under subsection 
(a) with respect to any near-zero emissions intensity iron which was 
produced pursuant to a contract established under section 102 of the 
Steel Modernization Act of 2024 shall be zero.
    ``(e) Inflation Adjustment.--In the case of any taxable year 
beginning in a calendar year after 2024, there shall be substituted for 
the dollar amount in subsection (a) an amount equal to the product of--
            ``(1) such dollar amount, multiplied by
            ``(2) the inflation adjustment factor for such calendar 
        year determined under section 43(b)(3)(B) for such calendar 
        year, determined by substituting `2023' for `1990'.
    ``(f) Sunset.--This section shall not apply to taxable years 
beginning after December 31, 2045.''.
    (b) Credit Allowed as Part of General Business Credit.--Section 
38(b) of such Code is amended by striking ``plus'' at the end of 
paragraph (40), by striking the period at the end of paragraph (41) and 
inserting ``, and'', and by adding at the end the following new 
paragraph:
            ``(42) in the case of an eligible taxpayer (as defined in 
        section 45BB(c)), the near-zero emissions intensity iron 
        production credit determined under section 45BB(a).''.
    (c) Clerical Amendment.--The table of sections for subpart D of 
subchapter A of chapter 1 of such Code is amended by adding at the end 
the following new item:

``Sec. 45BB. Near-zero emissions intensity iron production credit.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to iron produced after the date of the enactment of this Act.

SEC. 104. GREEN IRON AND STEEL FACILITY ENERGY INVESTMENT CREDITS.

    (a) In General.--Subpart E of subchapter A of chapter 1 of the 
Internal Revenue Code of 1986 is amended by adding at the end the 
following new sections:

``SEC. 48F. ON-SITE ZERO-EMISSION ENERGY INVESTMENT CREDIT.

    ``(a) In General.--In the case of an eligible taxpayer, for 
purposes of section 46, the on-site zero-emission energy investment 
credit for any taxable year is an amount equal to 10 percent of the 
qualified investment for such taxable year.
    ``(b) Qualified Investment.--
            ``(1) In general.--The qualified investment with respect to 
        any qualified facility for any taxable year is the sum of--
                    ``(A) the basis of any property placed in service 
                by the taxpayer during the taxable year--
                            ``(i) which is--
                                    ``(I) tangible personal property, 
                                or
                                    ``(II) other tangible property (not 
                                including a building or its structural 
                                components), but only if such property 
                                is used as an integral part of the 
                                qualified facility,
                            ``(ii) with respect to which depreciation 
                        (or amortization in lieu of depreciation) is 
                        allowable, and
                            ``(iii)(I) the construction, 
                        reconstruction, or erection of which is 
                        completed by the taxpayer, or
                            ``(II) which is acquired by the taxpayer if 
                        the original use of such property commences 
                        with the taxpayer, and
                    ``(B) the basis of any qualified property placed in 
                service by the taxpayer during such taxable year which 
                is part of a facility described in subsection (c).
            ``(2) Certain qualified progress expenditures rules made 
        applicable.--Rules similar to the rules of subsections (c)(4) 
        and (d) of section 46 (as in effect on the day before the 
        enactment of the Revenue Reconciliation Act of 1990) shall 
        apply for purposes of this section.
            ``(3) Limitations.--
                    ``(A) Credit limited to allocated amount.--The 
                amount which is treated as the qualified investment for 
                all taxable years with respect to any qualifying 
                advanced energy project shall not exceed the amount 
                designated by the Secretary as eligible for the credit 
                under this section.
                    ``(B) Limitation on aggregate financial 
                assistance.--The amount which is treated as the 
                qualified investment for all taxable year with respect 
                to any qualified facility project shall not exceed the 
                amount that is equal to--
                            ``(i) $500,000,000, minus
                            ``(ii) the sum of--
                                    ``(I) any financial assistance 
                                provided to such project pursuant to 
                                the Steel Modernization Act of 2024,
                                    ``(II) any credits allowed for any 
                                taxable year relating to such project 
                                under this section, plus
                                    ``(III) any credits allowed for any 
                                taxable year relating to such project 
                                under section 48G.
    ``(c) Qualified Facility Project.--In this section, the term 
`qualified facility project' means a project, any portion of the 
qualified investment of which is certified by the Secretary under 
subsection (e) as eligible for a credit under this section, which re-
equips, expands, or establishes a zero-carbon electricity or heat 
generating or storage facility which is located on-site with an 
eligible facility (as such term is defined in section 108 of the Steel 
Modernization Act of 2024).
    ``(d) Eligible Taxpayer.--In this section, the term `eligible 
taxpayer' means a taxpayer that--
            ``(1) is not under the influence, control, or ownership of 
        a foreign entity of concern (as defined in section 108 of the 
        Steel Modernization Act of 2024); and
            ``(2) has, with respect to any qualified facility project, 
        met the requirements described in section 101(d)(5) and (6) of 
        the Steel Modernization Act of 2024.
    ``(e) On-Site Zero-Emission Energy Project Program.--
            ``(1) Establishment.--
                    ``(A) In general.--Not later than 180 days after 
                the date of enactment of this section, the Secretary 
                shall establish an on-site zero-emission energy project 
                program to consider and award certifications for 
                qualified investments eligible for credits under this 
                section to qualified facility project sponsors.
                    ``(B) Limitation.--The total amount of credits that 
                may be allocated under the program shall not exceed 
                $500,000,000.
            ``(2) Certification.--
                    ``(A) Application period.--Each applicant for 
                certification under this paragraph shall submit an 
                application containing such information as the 
                Secretary may require during the 2-year period 
                beginning on the date the Secretary establishes the 
                program under paragraph (1).
                    ``(B) Time to meet criteria for certification.--
                Each applicant for certification shall have 1 year from 
                the date of acceptance by the Secretary of the 
                application during which to provide to the Secretary 
                evidence that the requirements of the certification 
                have been met.
                    ``(C) Period of issuance.--An applicant which 
                receives a certification shall have 3 years from the 
                date of issuance of the certification in order to place 
                the project in service and if such project is not 
                placed in service by that time period, then the 
                certification shall no longer be valid.
            ``(3) Selection criteria.--In determining which qualified 
        facility projects to certify under this section, the 
        Secretary--
                    ``(A) shall take into consideration only those 
                projects where there is a reasonable expectation of 
                commercial viability, and
                    ``(B) shall take into consideration which 
                projects--
                            ``(i) will provide the greatest domestic 
                        job creation (both direct and indirect) during 
                        the credit period,
                            ``(ii) will provide the greatest net impact 
                        in avoiding or reducing air pollutants or 
                        anthropogenic emissions of greenhouse gases,
                            ``(iii) have the greatest potential for 
                        technological innovation and commercial 
                        deployment,
                            ``(iv) have the lowest levelized cost of 
                        generated or stored energy, or
                            ``(v) of measured reduction in energy 
                        consumption or greenhouse gas emission (based 
                        on costs of the full supply chain),
                    ``(C) have the shortest project time from 
                certification to completion, and
                    ``(D) shall take into consideration only those 
                projects that have met the requirements described in 
                section 101(d)(5) and (6) of the Steel Modernization 
                Act of 2024.
            ``(4) Review and redistribution.--
                    ``(A) Review.--Not later than 4 years after the 
                date of enactment of this section, the Secretary shall 
                review the credits allocated under this section as of 
                such date.
                    ``(B) Redistribution.--The Secretary may reallocate 
                credits awarded under this section if the Secretary 
                determines that--
                            ``(i) there is an insufficient quantity of 
                        qualifying applications for certification 
                        pending at the time of the review, or
                            ``(ii) any certification made pursuant to 
                        paragraph (2) has been revoked pursuant to 
                        paragraph (2)(B) because the project subject to 
                        the certification has been delayed as a result 
                        of third party opposition or litigation to the 
                        proposed project.
                    ``(C) Reallocation.--If the Secretary determines 
                that credits under this section are available for 
                reallocation pursuant to the requirements set forth in 
                paragraph (2), the Secretary is authorized to conduct 
                an additional program for applications for 
                certification.
            ``(5) Disclosure of allocations.--The Secretary shall, upon 
        making a certification under this subsection, publicly disclose 
        the identity of the applicant and the amount of the credit with 
        respect to such applicant.
    ``(f) Inflation Adjustment.--In the case of any taxable year 
beginning in a calendar year after 2024, there shall be substituted for 
the dollar amount in subsection (b)(3)(B)(i) an amount equal to the 
product of--
            ``(1) such dollar amount, multiplied by
            ``(2) the inflation adjustment factor for such calendar 
        year determined under section 43(b)(3)(B) for such calendar 
        year, determined by substituting `2023' for `1990'.
    ``(g) Sunset.--This section shall not apply to taxable years 
beginning after December 31, 2045.

``SEC. 48G. IRON AND STEEL GREEN ENERGY AND GRID SYSTEM UPGRADE 
              INVESTMENT CREDIT.

    ``(a) In General.--In the case of an eligible taxpayer, for 
purposes of section 46, the iron and steel green energy and grid system 
upgrade investment credit for any taxable year is an amount equal to 10 
percent of the qualified investment for such taxable year.
    ``(b) Definitions.--For purposes of this section--
            ``(1) Eligible taxpayer.--In this section, the term 
        `eligible taxpayer' means a taxpayer that--
                    ``(A) is not under the influence, control, or 
                ownership of a foreign entity of concern (as defined in 
                section 108 of the Steel Modernization Act of 2024), 
                and
                    ``(B) has, with respect to any qualified 
                interconnection property and qualified property, met 
                the requirements described in section 101(d)(5) and (6) 
                of the Steel Modernization Act of 2024.
            ``(2) Qualified investment.--The qualified investment for 
        any taxable year is the sum of--
                    ``(A) the amount of any expenditures which are paid 
                or incurred by the taxpayer for qualified 
                interconnection property--
                            ``(i) placed in service during the taxable 
                        year of the taxpayer, and
                            ``(ii) properly chargeable to capital 
                        account of the taxpayer, and
                    ``(B) the basis of any qualified property placed in 
                service by the taxpayer during such taxable year which 
                is part of a qualified facility.
            ``(3) Qualified interconnection property.--The term 
        `qualified interconnection property' means qualified 
        interconnection property (as such term is defined in section 
        48(a)(8)(B)) which is necessary to transmit energy to an 
        eligible facility.
            ``(4) Qualified property.--The term `qualified property' 
        has the meaning given such term in section 48E(b)(2).
            ``(5) Qualified facility.--The term `qualified facility' 
        means a qualified facility (as defined in section 48E(B)(3) 
        except that such paragraph shall be applied without regard to 
        subparagraph (C) thereof) which sells energy attribution 
        certificates to an eligible facility.
            ``(6) Eligible facility.--The term `eligible facility' has 
        the meaning given such term in section 108 of the Steel 
        Modernization Act of 2024.
    ``(c) Sunset.--This section shall not apply to taxable years 
beginning after December 31, 2045.''.
    (b) Conforming Amendments.--
            (1) Section 46 of such Code is amended by striking ``and'' 
        at the end of paragraph (6), by striking the period at the end 
        of paragraph (7) and inserting a comma, and by adding at the 
        end the following new paragraphs:
            ``(8) the on-site zero-emission energy investment credit, 
        and
            ``(9) the iron and steel green energy and grid system 
        upgrade investment credit.''.
            (2) Section 49(a)(1)(C) of such Code is amended by striking 
        ``and'' at the end of clause (vii), by striking the period at 
        the end of clause (viii) and inserting a comma, and by adding 
        at the end the following new clauses:
                            ``(ix) the basis of any qualified property 
                        which is part of a qualified facility under 
                        section 48F, and
                            ``(x) the basis of any qualified 
                        interconnection property and any qualified 
                        property which is part of a qualified facility 
                        under section 48G.''.
    (c) Clerical Amendment.--The table of sections for subpart E of 
subchapter A of chapter 1 of such Code is amended by inserting after 
the item relating to section 48E the following new items:

``Sec. 48F. On-site zero-emission energy investment credit.
``Sec. 48G. Iron and steel green energy and grid system upgrade 
                            investment credit.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to property placed in service after the date of the enactment of 
this Act.

SEC. 105. STUDY AND REPORT ON DEMAND GENERATION.

    The Secretary of Energy shall conduct a study, and publish a report 
on the findings of such study on a publicly accessible website, on 
opportunities for new Federal, State, and local policies, regulations, 
and other measures to help stimulate demand for near-zero emissions 
intensity iron and near-zero emissions intensity steel, including 
demand related to shipbuilding, railroads, and offshore wind 
electricity generation.

SEC. 106. REPORT ON STRATEGY TO BRING ZERO-GREENHOUSE GAS EMISSIONS 
              ELECTRICITY TO THE ELECTRIC GRID.

    Not later than 1 year after the date of enactment of this Act, the 
Secretary of Energy shall submit to Congress a report describing--
            (1) a whole of Government strategy to--
                    (A) increase the supply of zero-greenhouse gas 
                emissions electricity on the electric grid;
                    (B) improve electricity transmission;
                    (C) upgrade regional energy distribution systems; 
                and
                    (D) ensure industrial entities can afford zero-
                greenhouse gas emissions electricity;
            (2) the amount of steel, aluminum, and other materials 
        produced in the United States that would be needed to implement 
        such strategy; and
            (3) additional investments and policies recommended to be 
        able to finish and fabricate materials described in paragraph 
        (2) domestically.

SEC. 107. PROHIBITION.

    None of the funds authorized to be appropriated or otherwise made 
available pursuant to this Act may be made available--
            (1) to construct, modify, retrofit, or otherwise be used 
        for a facility that is not located in the United States; or
            (2) to any entity that is partly or wholly owned by--
                    (A) the Government of the People's Republic of 
                China; or
                    (B) a foreign entity of concern.

SEC. 108. DEFINITIONS.

    In this title:
            (1) Advanced industrial iron technology.--The term 
        ``advanced industrial iron technology'' means a technology 
        related to iron production that is directly involved in an 
        industrial process, and designed to reduce, or results in a 
        reduction of, greenhouse gas emissions, as determined by the 
        Secretary of Energy.
            (2) Advanced industrial steel technology.--The term 
        ``advanced industrial steel technology'' means a technology 
        related to steel production that is directly involved in an 
        industrial process, and designed to reduce, or results in a 
        reduction of, greenhouse gas emissions, as determined by the 
        Secretary of Energy.
            (3) Clean hydrogen.--
                    (A) In general.--The term ``clean hydrogen'' means 
                hydrogen that is produced through a process that 
                results in a lifecycle greenhouse gas emissions rate of 
                not greater than 0.45 kilograms of carbon dioxide 
                equivalent per kilogram of hydrogen.
                    (B) Lifecycle greenhouse gas emissions.--For 
                purposes of subparagraph (A), the term ``lifecycle 
                greenhouse gas emissions'' shall only include emissions 
                through the point of production, as determined under 
                the most recent Greenhouse gases, Regulated Emissions, 
                and Energy use in Transportation model (commonly 
                referred to as the ``GREET model'') developed by 
                Argonne National Laboratory, or a successor model (as 
                determined by the Secretary of Energy).
            (4) Covered financial assistance.--The term ``covered 
        financial assistance'' includes a grant, rebate, direct loan, 
        cooperative agreement, low- to no-interest loans, and a loan 
        guarantee.
            (5) Early-stage.--The term ``early-stage'' means, with 
        respect to a technology, that the technology has not yet been 
        proven viable at scale.
            (6) Eligible entity.--The term ``eligible entity'' means 
        the owner or operator of an eligible facility.
            (7) Eligible facility.--The term ``eligible facility'' 
        means a domestic, non-Federal, nonpower industrial or 
        manufacturing facility engaged in production processes or 
        research and development for iron, steel, steel mill products, 
        or other industrial processes related to iron or steel-making, 
        as determined by the Secretary of Energy.
            (8) 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 than other 
        communities.
            (9) Existing or legacy iron or steel-making community.--The 
        term ``existing or legacy iron or steel-making community'' 
        means--
                    (A) an area that is within a 25 mile radius of an 
                iron or steel production facility--
                            (i) that is producing iron or steel as of 
                        the date of enactment of this Act; or
                            (ii) that has produced iron or steel 
                        anytime since January 1, 1985; or
                    (B) any community within a 25 mile radius of a 
                location in which metallurgical coke, or metallurgical 
                coal destined to be metallurgical coke, has been 
                produced, mined, or processed at any time since January 
                1, 1985.
            (10) Foreign entity of concern.--The term ``foreign entity 
        of concern'' has the meaning given such term in section 
        40207(a)(5) of the Infrastructure Investment and Jobs Act (42 
        U.S.C. 18741(a)(5)).
            (11) Frontline community.--The term ``frontline community'' 
        means--
                    (A) a low-income community;
                    (B) an environmental justice community; or
                    (C) a disadvantaged community (as defined by the 
                Justice40 Initiative established under section 223 of 
                Executive Order 14008, titled ``Tackling the Climate 
                Crisis at Home and Abroad'').
            (12) Mine-to-metal basis.--The term ``mine-to-metal basis'' 
        means the greenhouse gas accounting rule under criterion 10.4, 
        ``Determination of site-level GHG emissions for the purpose of 
        reporting GHG emissions intensity when producing crude steel 
        for determining a site's greenhouse gas emissions'', under 
        Responsible Steel International Production Standard Version 
        2.1, effective from May 21, 2024.
            (13) Near-zero emissions intensity iron.--The term ``near-
        zero emissions intensity iron'' means iron that has an 
        emissions intensity of 0.35 tons of carbon dioxide equivalent 
        per ton of iron or less, with greenhouse gas emissions 
        determined on a mine-to-metal basis.
            (14) Near-zero emissions intensity steel.--The term ``near-
        zero emissions intensity steel'' means steel that has an 
        emissions intensity that is equal to or less than progress 
        level 4 emissions intensity that is determined, using a sliding 
        scale of emissions intensity based on scrape share of metallics 
        input, in accordance with criterion 10.6 of Responsible Steel 
        International Production Standard Version 2.1, effective from 
        May 21, 2024, and with greenhouse gas emissions determined on a 
        mine-to-metal basis.

                TITLE II--TARIFF ON DIRTY IMPORTED STEEL

SEC. 201. CALCULATION OF EMISSIONS INTENSITY.

    (a) Domestic Emissions Intensity Report.--Not later than June 30, 
2026, and every 2 years thereafter, the United States International 
Trade Commission shall transmit to the President and publish a report 
with respect to the following:
            (1) The average greenhouse gas emissions intensity of 
        domestic iron and steel production, expressed in tons of CO2-e 
        per ton of iron or steel, respectively.
            (2) The average greenhouse gas emissions intensity of the 
        domestic manufacture of covered iron and steel product 
        categories and finished goods produced using covered iron and 
        steel product categories, expressed in tons of CO2-e per ton of 
        iron or steel, respectively.
            (3) An estimate the 90th emissions intensity percentiles 
        for all domestically manufactured reported product categories.
    (b) International Emissions Intensity Report.--
            (1) In general.--No later than June 30, 2026, and every 2 
        years thereafter, the United States International Trade 
        Commission shall transmit to the President and publish a report 
        with respect to the emissions intensity of the manufacture of 
        covered iron and steel products in all foreign markets from 
        which the United States imported in excess of $200,000,000 of 
        iron and steel products, including finished goods, in any 1 of 
        the preceding 5 years. The emissions intensity with respect to 
        such covered products shall be determined based on--
                    (A) the emissions intensity of the general economy 
                of the country of origin of covered products as 
                compared to the emissions intensity of the United 
                States economy; or
                    (B) if the Commission determines that transparent, 
                verifiable, and reliable information is available with 
                respect to the iron and steel industry in the country 
                of origin of covered products and that the country of 
                origin is a transparent market economy--
                            (i) the emissions intensity of the iron and 
                        steel industry in such country; or
                            (ii) if sufficiently disaggregated 
                        information is available, the emissions 
                        intensity of the manufacture of specific 
                        covered product in such country.
            (2) Aggregation rule.--For purposes of this subsection, the 
        average emissions intensity with respect to the production of a 
        covered iron or steel product shall be determined based upon 
        greenhouse gas emission and production data from all facilities 
        which produce such good which are under common control of the 
        manufacturer of such good, including any subsidiary, parent 
        company, or joint venture of such manufacturer within the 
        country of origin.
            (3) Inputs.--With respect to any covered iron or steel 
        product which is imported into the United States and for which 
        other covered iron or steel products were used as inputs by the 
        manufacturer in the production of the imported product, any 
        greenhouse gas emissions associated with the production of the 
        other inputs shall be included in the determination of the 
        greenhouse gas emissions associated with production of the 
        imported product.
            (4) Emissions intensity of the general economy.--For 
        purposes of this subsection, with respect to any country, the 
        emissions intensity of the general economy of such country 
        shall be an amount equal to the quotient of--
                    (A) the greenhouse gas emissions of such country 
                for the most recent year for which the President 
                determines there is reliable information, divided by
                    (B) the gross domestic product of such country for 
                such most recent year.
            (5) Recommended emissions intensity tariff.--The Commission 
        shall also include in each report published pursuant to 
        paragraph (1) recommendations with respect to each applicable 
        foreign market of the tariff rate to impose with respect to the 
        importation of covered products from such market in order to 
        compensate for any greater emissions intensity of production in 
        such market.
    (c) Petition.--In the case of any entity which imports a covered 
iron or steel product for which the Commission determines the emissions 
intensity under subsection (b)(1)(A) or subsection (b)(1)(B)(i), such 
entity may submit to the President a petition to determine any tariff 
pursuant to section 202 based on the average emissions intensity with 
respect to the production of the specific covered product by the 
manufacturer, including such information as the President may determine 
necessary to calculate such average emissions intensity.

SEC. 202. IMPOSITION OF EMISSIONS INTENSITY TARIFF.

    (a) In General.--
            (1) Covered products.--In the case of any covered iron or 
        steel product imported into the United States or withdrawn from 
        warehouse for consumption on or after the date that is 90 days 
        after the publication of the first report required by section 
        201(a), the President shall impose an additional tariff--
                    (A) pursuant to the recommendation with respect to 
                the applicable foreign market in the most recent report 
                published pursuant to section 201(b)); or
                    (B) in such other amount as the President may 
                determine appropriate to carry out the purposes of this 
                title.
            (2) Finished goods.--In the case of any finished good which 
        is imported into the United States on or after January 1, 2027, 
        the President shall impose an additional tariff in an amount 
        equal to the sum of the rates determined in accordance with 
        paragraph (1) with respect to each covered iron or steel 
        product that is a component part of such finished good.
            (3) Covered products from nonmarket economies.--For any 
        covered iron or steel product imported from a country the 
        Commission determines, pursuant to section 201(b)(1)(B), is not 
        a transparent market economy, the tariff imposed shall be 
        double the amount calculated pursuant to paragraph (1) or 
        paragraph (2).
    (b) Carbon Clubs Waiver.--The President may waive the tariff 
otherwise imposed under this section with respect to covered iron and 
steel products imported from a country if the President determines that 
the country--
            (1) has implemented policies which impose explicit costs on 
        the emission of greenhouse gases which are materially similar 
        to the charges imposed pursuant to the provisions of this 
        section;
            (2) imposes such costs on similar product categories and 
        based on the emissions intensity of production in the country 
        of origin;
            (3) achieves an emissions intensity for the domestic 
        manufacture of covered product categories that does not exceed 
        150 percent of the emissions intensity of manufacture in the 
        United States; and
            (4) waives any tariffs that would be imposed pursuant to 
        such emissions policy on products from the United States.
    (c) Melted and Poured Standard.--If a covered iron or steel product 
imported into the United States is melted or poured in a third country, 
the tariff imposed under this section shall be determined based on the 
emissions intensity of the third country rather than the country from 
which the product is imported, unless the President has approved a 
petition submitted pursuant to section 201(c) with respect to the 
importation of such product.

SEC. 203. DEFINITIONS.

    In this title:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the Environmental Protection Agency.
            (2) CO2-e.--
                    (A) In general.--Subject to subparagraph (B), the 
                term ``CO2-e'' means, with respect to a greenhouse gas, 
                the quantity of such gas that has a global warming 
                potential equivalent to 1 metric ton of carbon dioxide, 
                as determined pursuant to table A-1 of subpart A of 
                part 98 of title 40, Code of Federal Regulations, as in 
                effect on the date of the enactment of this subchapter.
                    (B) Methane.--In the case of methane, the term 
                ``CO2-e'' means the quantity of methane that has the 
                same global warming potential over a 20-year period as 
                1 metric ton of carbon dioxide, as determined by the 
                Administrator.
            (3) Covered iron product; covered steel product.--
                    (A) In general.--The terms ``covered iron product'' 
                and ``covered steel product'' are defined as follows:
                            (i) Articles classifiable under the 
                        following headings of the Harmonized Tariff 
                        Schedule of the United States:
                                    (I) 7206.10 through 7216.50.
                                    (II) 7216.99 through 7301.10.
                                    (III) 7302.10.
                                    (IV) 7302.40 through 7302.90.
                                    (V) 7304.10 through 7306.90.
                            (ii) Subject to subparagraph (B), any other 
                        iron or steel article the President determines 
                        is imported from a country with a greater 
                        emissions intensity than the United States, if 
                        the President directs and the Commission 
                        subsequently includes--
                                    (I) an analysis of the domestic 
                                production of such product in the most 
                                recent study published in accordance 
                                with section 201(a); and
                                    (II) an analysis of the foreign 
                                production of such product in the most 
                                recent study published in accordance 
                                with section 201(b).
                    (B) Exclusions.--A product otherwise meeting the 
                definition under subparagraph (A) shall not be treated 
                as a covered iron product or a covered steel product, 
                as applicable, under this title if--
                            (i) a like or similar article is not 
                        produced in the United States;
                            (ii) the product is produced in (including 
                        as a component of a finished good) and imported 
                        from a relatively least developed country (as 
                        described in section 124 of the Foreign 
                        Assistance Act of 1961 (22 U.S.C. 2151v)) that 
                        does not produce at least 3 percent of total 
                        global exports, by value, of the product; or
                            (iii) the product is imported from a 
                        country during any period in which a waiver is 
                        in effect with respect to such country pursuant 
                        to section 202(b).
            (4) Finished good.--
                    (A) In general.--The term ``finished good'' means 
                any good which--
                            (i) for calendar years 2027 and 2028--
                                    (I) contains greater than 500 
                                pounds of any combination of any 
                                covered iron or steel products, or
                                    (II) was produced from inputs of 
                                any combination of covered iron or 
                                steel products, the value of which 
                                comprise more than 90 percent of the 
                                total value of the material inputs 
                                involved in the production of such 
                                good,
                            (ii) for calendar years 2029 and 2030--
                                    (I) contains greater than 100 
                                pounds of any combination of any 
                                covered iron or steel products, or
                                    (II) was produced from inputs of 
                                any combination of covered iron or 
                                steel products, the value of which 
                                comprise more than 75 percent of the 
                                total value of the material inputs 
                                involved in the production of such 
                                good, and
                            (iii) for any calendar year after calendar 
                        year 2030--
                                    (I) contains greater than such 
                                amount as is determined by the 
                                Secretary (as determined in 
                                coordination with the relevant parties, 
                                and which shall not be greater than 100 
                                pounds) of any combination of any 
                                covered iron or steel products, or
                                    (II) was produced from inputs of 
                                any combination of covered iron or 
                                steel products, the value of which 
                                comprise more than such percentage as 
                                is determined by the Secretary (as 
                                determined in coordination with the 
                                relevant parties, and which shall not 
                                be greater than 75 percent) of the 
                                total value of the material inputs 
                                involved in the production of such 
                                good.
                    (B) Exception.--The term ``finished good'' shall 
                not include any waste or scrap product that is imported 
                or exported.
            (5) Greenhouse gas.--The term ``greenhouse gas'' has the 
        meaning given such term under section 211(o)(1)(G) of the Clean 
        Air Act, as in effect on the date of the enactment of this 
        subchapter.
            (6) Greenhouse gas emissions.--The term ``greenhouse gas 
        emissions'' means the amount of greenhouse gases, expressed in 
        metric tons of CO2-e, which were emitted to the atmosphere.
            (7) Relevant parties.--The term ``relevant parties'' 
        means--
                    (A) the Administrator,
                    (B) the Secretary of Energy,
                    (C) the Secretary of Commerce,
                    (D) the United States Trade Representative, and
                    (E) the Chair and Vice Chair of the United States 
                International Trade Commission.

                   TITLE III--EXPENDITURE OF REVENUES

SEC. 301. ADMINISTRATIVE EXPENSES.

    For fiscal year 2025 and each subsequent fiscal year, there is 
appropriated, out of any funds in the Treasury not otherwise 
appropriated, to the Secretary of Energy an amount equal to 75 percent 
of the total amount collected in the preceding fiscal year pursuant to 
the tariff imposed under section 202, to be made available to carry out 
this Act.

SEC. 302. ECONOMIC SUPPORT FUND.

    For fiscal year 2025 and each subsequent fiscal year, in addition 
to amounts otherwise available, there is appropriated, out of any funds 
in the Treasury not otherwise appropriated, an amount equal to 25 
percent of the total amount collected in the preceding fiscal year 
pursuant to the tariff imposed under section 202, to be made available 
to carry out programs, projects, and activities authorized pursuant to 
section 531 of the Foreign Assistance Act of 1961 (22 U.S.C. 2346; 
referred to as the ``economic support fund'') to provide bilateral and 
multilateral assistance to foreign countries to support decarbonization 
programs and other climate and clean energy programs.
                                 <all>