[Congressional Record Volume 167, Number 45 (Wednesday, March 10, 2021)]
[Senate]
[Pages S1461-S1471]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTION

      By Mr. DURBIN:
  S. 685. A bill to amend the Internal Revenue Code of 1986 to 
establish a carbon fee to reduce greenhouse gas emissions, and for 
other purposes; to the Committee on Finance.
  Mr. DURBIN. Mr. President, I ask unanimous consent that the text of 
the bill be printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                 S. 685

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

     SECTION 1. SHORT TITLE.

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

     SEC. 2. CLIMATE CHANGE FINANCE CORPORATION.

       (a) Establishment.--
       (1) In general.--There is established in the executive 
     branch an independent agency, to be known as the ``Climate 
     Change Finance Corporation'' (referred to in this section as 
     the ``C2FC''), which shall finance clean energy and climate 
     change resiliency activities in accordance with this section.
       (2) Mission.--
       (A) In general.--The mission of the C2FC is to combat and 
     reduce the effects of climate change by building resilience 
     among communities facing harmful impacts of climate change 
     and supporting a dramatic reduction in greenhouse gas 
     emissions--
       (i) through the deployment of clean and renewable 
     technology, resilient infrastructure, research and 
     development, the commercialization of new technology, clean 
     energy manufacturing, and industrial decarbonization; and
       (ii) to meet the goals of--

       (I) by 2030, a net reduction of greenhouse gas emissions by 
     45 percent, based on 2018 levels; and
       (II) by 2050, a net reduction of greenhouse gas emissions 
     by 100 percent, based on 2018 levels.

       (B) Activities.--The C2FC shall carry out the mission 
     described in subparagraph (A) by--
       (i) financing investments in clean energy and 
     transportation, resiliency, and infrastructure;
       (ii) using Federal investment to encourage the infusion of 
     private capital and investment into the clean energy and 
     resilient infrastructure sectors, while creating new 
     workforce opportunities; and
       (iii) providing financing in cases where private capital 
     cannot be leveraged, while minimizing competition with 
     private investment.
       (3) Exercise of powers.--Except as otherwise provided 
     expressly by law, all Federal laws dealing with public or 
     Federal contracts, property, works, officers, employees, 
     budgets, or funds, including the provisions of chapters 5 and 
     7 of title 5, United States Code, shall apply to the exercise 
     of the powers of the C2FC.
       (b) Board of Directors.--
       (1) In general.--The management of the C2FC shall be vested 
     in a Board of Directors (referred to in this section as the 
     ``Board'') consisting of 7 members, who shall be appointed by 
     the President, by and with the advice and consent of the 
     Senate.
       (2) Chairperson and vice chairperson.--
       (A) In general.--A Chairperson and Vice Chairperson of the 
     Board shall be appointed by the President, by and with the 
     advice and consent of the Senate, from among the individuals 
     appointed to the Board under paragraph (1).
       (B) Term.--An individual--
       (i) shall serve as Chairperson or Vice Chairperson of the 
     Board for a 3-year term; and
       (ii) may be renominated for the position until the term of 
     that individual on the Board under paragraph (3)(C) expires.
       (3) Board members.--
       (A) Citizenship required.--Each member of the Board shall 
     be an individual who is a citizen of the United States.
       (B) Representation.--The members of the Board shall fairly 
     represent agricultural, educational, research, industrial, 
     nongovernmental, labor, and commercial interests throughout 
     the United States.
       (C) Term.--
       (i) In general.--Except as otherwise provided in this 
     section, each member of the Board--

       (I) shall be appointed for a term of 6 years; and
       (II) may be reappointed for 1 additional term.

       (ii) Initial staggered terms.--Of the members first 
     appointed to the Board--

       (I) 2 shall each be appointed for a term of 2 years;
       (II) 3 shall each be appointed for a term of 4 years; and
       (III) 2 shall each be appointed for a term of 6 years.

       (4) Initial meeting.--Not later than 30 days after the date 
     on which all members of the Board are appointed under 
     paragraph (1), the Board shall hold an initial meeting.
       (c) Working Groups.--
       (1) In general.--The Board shall create, oversee, and 
     incorporate feedback from the following working groups (each 
     referred to in this section as a ``working group''):
       (A) An environmental justice working group.
       (B) A worker and community transition assistance working 
     group.
       (C) A research and innovation working group.
       (2) Working group members.--
       (A) In general.--Each working group shall--
       (i) be chaired by a Board member; and
       (ii) comprise not less than 10 and not more than 20 
     individuals, who shall be experts, members of directly 
     impacted communities relating to the subject matter of the 
     working group, and other relevant stakeholders.
       (B) Diversity.--Individuals on a working group shall, to 
     the maximum extent practicable, represent--
       (i) a diverse array of interests related to the subject 
     matter of the working group; and
       (ii) diverse geographical, racial, religious, gender, 
     educational, age, disability, and socioeconomic backgrounds.
       (3) Meetings.--Each working group shall meet not less than 
     2 times per year.
       (4) Community and stakeholder engagement.--
       (A) In general.--Each working group shall create and engage 
     in meaningful community and stakeholder involvement 
     opportunities, including through regular community engagement 
     activities, for purposes of--
       (i) maintaining up-to-date situational awareness about the 
     needs of relevant communities and stakeholders;
       (ii) using the feedback obtained through those 
     opportunities to inform the advice of the working group to 
     the Board; and
       (iii) providing a mechanism for direct and substantial 
     community feedback relating to the investment plan and the 
     funding decisions of the C2FC.
       (B) Public awareness.--Each working group shall inform the 
     public about C2FC investment by engaging in public awareness 
     campaigns, which shall target relevant communities through 
     electronic media, newspapers, radio, direct mailings, 
     canvassing, or other outreach methods suited for the relevant 
     community.
       (C) Broad participation.--In carrying out subparagraph (A), 
     each working group shall, to the maximum extent practicable, 
     maximize participation from a broad group of stakeholders, 
     including by holding multiple meetings with significant 
     advance notice and holding meetings at different times and in 
     multiple languages.
       (5) Tasks.--Each working group shall, as it relates to the 
     subject matter of the working group--
       (A) advise and provide general input to the Board regarding 
     loans and grants provided by the C2FC; and
       (B) consult with and, based on the activities described in 
     paragraph (4), provide recommendations to, the Board in the 
     development of and updates to the investment plan of the 
     C2FC.
       (d) Investment Plan.--
       (1) In general.--The Board, in consultation with each 
     working group described in subsection (c)(1), shall develop 
     an investment plan (referred to in this subsection as the 
     ``investment plan'') for the C2FC in accordance with this 
     subsection.

[[Page S1462]]

       (2) Purposes.--The purposes of the investment plan are--
       (A) to ensure that investments made by the C2FC--
       (i) are equitable and reach the prioritized communities 
     described in subsection (e)(2);
       (ii) are effective at progressing towards the goals 
     described in subsection (a)(2)(A)(ii);
       (iii) support the advancement of research in clean 
     technologies and resilience; and
       (iv) are transparent to the public; and
       (B) to provide methods and standards by which the Board and 
     the working groups described in subsection (c)(1) shall 
     choose projects in which to invest.
       (3) Distribution of grant funds.--The initial investment 
     plan shall require that, of the total amount of grant funds 
     provided under subsection (e)(3)(A) each year, not less than 
     40 percent shall be used to benefit communities described in 
     subsection (e)(2)(A).
       (4) Investment plan updates.--
       (A) In general.--The Board, in consultation with each 
     working group described in subsection (c)(1), shall update 
     the investment plan not later than December 31, 2023, and 
     every 4 years thereafter, including by taking into account--
       (i) the current needs of the prioritized communities 
     described in subsection (e)(2);
       (ii) the effectiveness of the previous investment plan in 
     addressing the needs of those communities;
       (iii) the current state of relevant research and 
     technology;
       (iv) the resiliency needs of local communities;
       (v) the goals described in subsection (a)(2)(A)(ii); and
       (vi) the 2 most recent program reviews conducted under 
     subsection (f).
       (B) Effectiveness.--An investment plan shall remain in 
     effect until the date on which the Board approves an updated 
     investment plan.
       (C) Public input.--In updating the investment plan, the 
     Board and the working groups described in subsection (c)(1) 
     shall--
       (i) engage stakeholders and the public in a public comment 
     and feedback process; and
       (ii) ensure that the prioritized communities described in 
     subsection (e)(2) have access to participate in that process.
       (5) Public updates.--The Board shall make publicly 
     available on a quarterly basis information relating to the 
     expenditure of funds under the investment plan.
       (e) Investment Tools.--
       (1) Definitions.--In this subsection:
       (A) Community of color.--The term ``community of color'' 
     means a geographically distinct area in which the population 
     of any of the following categories of individuals is higher 
     than the average population of that category for the State in 
     which the community is located:
       (i) Black.
       (ii) African American.
       (iii) Asian.
       (iv) Pacific Islander.
       (v) Other non-White race.
       (vi) Hispanic.
       (vii) Latino.
       (viii) Linguistically isolated.
       (B) Eligible borrower.--The term ``eligible borrower'' 
     means any person, including a business owner or project 
     developer, that seeks a loan to carry out approved practices 
     or projects described in subparagraph (A)(i) of paragraph (3) 
     from an eligible lender that may receive a loan guarantee 
     under that paragraph for that loan, according to criteria 
     determined by the C2FC.
       (C) Eligible entity.--The term ``eligible entity'' means--
       (i) a State;
       (ii) an Indian Tribe;
       (iii) a unit of local government; and
       (iv) a research and development institution (including a 
     National Laboratory).
       (D) Eligible lender.--The term ``eligible lender'' means--
       (i) a Federal- or State-chartered bank;
       (ii) a Federal- or State-chartered credit union;
       (iii) an agricultural credit corporation;
       (iv) a United States Green Bank Institution;
       (v) a community development financial institution (as 
     defined in section 103 of the Community Development Banking 
     and Financial Institutions Act of 1994 (12 U.S.C. 4702));
       (vi) a minority depository institution (as defined in 
     section 308(b) of the Financial Institutions Reform, 
     Recovery, and Enforcement Act of 1989 (12 U.S.C. 1463 note; 
     Public Law 101-73)); and
       (vii) any other lender that the Board determines has a 
     demonstrated ability to underwrite and service loans for the 
     intended approved practice for which the loan will be used.
       (E) Environmental justice community.--The term 
     ``environmental justice community'' means a community with 
     significant representation of communities of color, low-
     income communities, or Tribal and indigenous communities that 
     experiences, or is at risk of experiencing, higher or more 
     adverse human health or environmental effects.
       (F) Indian tribe.--The term ``Indian Tribe'' has the 
     meaning given the term in section 4 of the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 5304).
       (G) Low-income community.--The term ``low-income 
     community'' means any census block group in which 30 percent 
     or more of the population are individuals with an annual 
     household income equal to, or less than, the greater of--
       (i) an amount equal to 80 percent of the median income of 
     the area in which the household is located, as reported by 
     the Department of Housing and Urban Development; and
       (ii) 200 percent of the Federal poverty line.
       (H) State.--The term ``State'' means--
       (i) a State;
       (ii) the District of Columbia;
       (iii) the Commonwealth of Puerto Rico; and
       (iv) any other territory or possession of the United 
     States.
       (2) Community prioritization.--In providing financial and 
     other assistance under paragraph (3), the C2FC shall give 
     priority to, as determined by the C2FC--
       (A) environmental justice communities, communities with 
     populations of color, communities of color, indigenous 
     communities, and low-income communities that--
       (i) experience a disproportionate burden of the negative 
     human health and environmental impacts of pollution or other 
     environmental hazards, such as natural disasters; or
       (ii) may not have access to public information and 
     opportunities for meaningful public participation relating to 
     human health and environmental planning, regulations, and 
     enforcement;
       (B) deindustrialized communities or communities with 
     significant local economic reliance on carbon-intensive 
     industries;
       (C) low-income communities at risk of impacts of natural 
     disasters or sea level rise exacerbated by climate change;
       (D) public or nonprofit entities that serve dislocated 
     workers, veterans, or individuals with a barrier to 
     employment; and
       (E) communities that have minimal or no investment in the 
     approved practices and projects described in paragraph 
     (3)(A)(i).
       (3) Grants, loan guarantees, and other investment tools.--
       (A) In general.--The C2FC--
       (i) shall provide grants to eligible entities and loan 
     guarantees to eligible lenders issuing loans to eligible 
     borrowers for approved practices and projects relating to 
     climate change mitigation and resilience measures, 
     including--

       (I) energy efficiency upgrades to infrastructure;
       (II) electric, hydrogen, and clean transportation programs 
     and deployment, including programs--

       (aa) to purchase personal vehicles, commercial vehicles, 
     and public transportation fleets and school bus fleets;
       (bb) to deploy electric vehicle charging and hydrogen 
     infrastructure; and
       (cc) to develop and deploy low carbon sustainable aviation 
     fuels;

       (III) clean energy and vehicle manufacturing research, 
     demonstrations, and deployment;
       (IV) battery storage research, demonstrations, and 
     deployment;
       (V) development or purchase of equipment for practices 
     described in section 6;
       (VI) development and deployment of clean energy and clean 
     technologies, with a focus on--

       (aa) carbon capture, utilization, and sequestration, 
     bioenergy with carbon capture and sequestration, direct air 
     capture, and infrastructure associated with those processes, 
     including construction of carrier pipelines for the 
     transportation of anthropogenic carbon dioxide;
       (bb) energy storage and grid modernization;
       (cc) geothermal energy;
       (dd) commercial and residential solar;
       (ee) wind energy; and
       (ff) any other clean technology use or development, as 
     determined by the Board;

       (VII) measures that anticipate and prepare for climate 
     change impacts, and reduce risks and enhance resilience to 
     sea level rise, extreme weather events, heat island impacts, 
     and other climate change impacts, including by--

       (aa) building resilient energy, water, and transportation 
     infrastructure;
       (bb) providing weatherization assistance for low-income 
     households; and
       (cc) increasing the resilience of the agriculture sector; 
     and

       (VIII) natural infrastructure research, demonstrations, and 
     deployment; and

       (ii) may implement other investment tools and products 
     approved by the Board, pursuant to subparagraph (C), to 
     achieve the mission of the C2FC described in subsection 
     (a)(2).
       (B) Loan guarantees.--
       (i) In general.--In providing loan guarantees under 
     subparagraph (A), the C2FC shall cooperate with eligible 
     lenders through agreements to participate on a deferred 
     (guaranteed) basis.
       (ii) Level of participation in guaranteed loans.--In 
     providing a loan guarantee under subparagraph (A), the C2FC 
     shall guarantee 75 percent of the balance of the financing 
     outstanding at the time of disbursement of the loan.
       (iii) Interest rates.--Notwithstanding the provisions of 
     the constitution of any State or the laws of any State 
     limiting the rate or amount of interest that may be charged, 
     taken, received, or reserved, the maximum legal rate of 
     interest on any financing made on a deferred basis under this 
     subsection shall not exceed a rate prescribed by the C2FC.
       (iv) Guarantee fees.--

       (I) In general.--With respect to each loan guaranteed under 
     this subsection (other than

[[Page S1463]]

     a loan that is repayable in 1 year or less), the C2FC shall 
     collect a guarantee fee, which shall be payable by the 
     eligible lender, and may be charged to the eligible borrower 
     in accordance with subclause (II).
       (II) Borrower charges.--A guarantee fee described in 
     subclause (I) charged to an eligible borrower shall not--

       (aa) exceed 2 percent of the deferred participation share 
     of a total loan amount that is equal to or less than 
     $150,000;
       (bb) exceed 3 percent of the deferred participation share 
     of a total loan amount that is greater than $150,000 but less 
     than $700,000; or
       (cc) exceed 3.5 percent of the deferred participation share 
     of a total loan amount that is equal to or greater than 
     $700,000.
       (C) Other investment tools and products.--
       (i) In general.--The Board may, based on market needs, 
     develop and implement any other investment tool or product 
     necessary to achieve the mission of the C2FC described in 
     subsection (a)(2) and the deployment of projects described in 
     subparagraph (A)(i), including offering--

       (I) warehousing and aggregation credit facilities;
       (II) zero interest loans;
       (III) credit enhancements; and
       (IV) construction finance.

       (ii) State and local green banks.--The Board shall 
     provide--

       (I) funds to United States Green Bank Institutions as 
     necessary to finance projects that are best served by those 
     entities; and
       (II) technical assistance as necessary to States and 
     localities seeking to establish green banks.

       (4) Wage rate requirements.--
       (A) In general.--All laborers and mechanics employed by 
     eligible entities and eligible borrowers on projects funded 
     directly by or assisted in whole or in part by the activities 
     of the C2FC under this section shall be paid at wages at 
     rates not less than those prevailing on projects of a similar 
     character in the locality as determined by the Secretary of 
     Labor in accordance with subchapter IV of chapter 31 of title 
     40, United States Code (commonly known as the ``Davis-Bacon 
     Act'').
       (B) Authority.--With respect to the labor standards 
     specified in subparagraph (A), the Secretary of Labor shall 
     have the authority and functions set forth in Reorganization 
     Plan Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. App.) and 
     section 3145 of title 40, United States Code.
       (5) Buy america requirements.--
       (A) In general.--All iron, steel, and manufactured goods 
     used for projects under this section shall be produced in the 
     United States.
       (B) Waiver.--The Board may waive the requirement in 
     subparagraph (A) if the Board finds that--
       (i) enforcing the requirement would be inconsistent with 
     the public interest;
       (ii) the iron, steel, and manufactured goods produced in 
     the United States are not produced in a sufficient and 
     reasonably available amount or are not of a satisfactory 
     quality; or
       (iii) enforcing the requirement will increase the overall 
     cost of the project by more than 25 percent.
       (f) Program Review and Report.--Not later than 2 years 
     after the date of enactment of this Act, and every 2 years 
     thereafter, the Board shall--
       (1) conduct a review of the activities of the C2FC and 
     identify projects and funding opportunities that were a part 
     of the current investment plan; and
       (2) submit to Congress and make publicly available a report 
     that--
       (A) describes the projects and funding opportunities that 
     have been most successful in progressing towards the mission 
     described in subsection (a)(2) during the time period covered 
     by the report;
       (B) includes recommendations on the clean energy and 
     resiliency projects that should be prioritized in forthcoming 
     years to achieve that mission;
       (C) quantifies the total amount and percentage of funding 
     given to prioritized communities described in subsection 
     (e)(2); and
       (D) identifies barriers for disadvantaged groups to receive 
     C2FC funding and provides recommendations to address those 
     barriers.
       (g) Initial Capitalization.--There is appropriated to carry 
     out this section, out of any funds in the Treasury not 
     otherwise appropriated, $7,500,000,000 for each of fiscal 
     years 2022 and 2023, to remain available until expended.

     SEC. 3. CARBON FEE.

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

                       ``Subchapter E--Carbon Fee

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

     ``SEC. 4691. DEFINITIONS.

       ``For purposes of this subchapter--
       ``(1) Administrator.--The term `Administrator' means the 
     Administrator of the Environmental Protection Agency.
       ``(2) Carbon dioxide equivalent or co2-e.--The 
     term `carbon dioxide equivalent' or `CO2-e' means 
     the number of metric tons of carbon dioxide emissions with 
     the same global warming potential over a 100-year period as 
     one metric ton of another greenhouse gas.
       ``(3) Carbon-intensive product.--The term `carbon-intensive 
     product' means--
       ``(A) iron, steel, steel mill products (including pipe and 
     tube), aluminum, cement, glass (including flat, container, 
     and specialty glass and fiberglass), pulp, paper, chemicals, 
     or industrial ceramics, and
       ``(B) any manufactured product which the Secretary, in 
     consultation with the Administrator, the Secretary of 
     Commerce, and the Secretary of Energy, determines is energy-
     intensive and trade-exposed (with the exception of any 
     covered fuel).
       ``(4) Covered entity.--The term `covered entity' means--
       ``(A) in the case of crude oil--
       ``(i) any operator of a United States refinery (as 
     described in subsection (d)(1) of section 4611), and
       ``(ii) any person entering such product into the United 
     States for consumption, use, or warehousing (as described in 
     subsection (d)(2) of such section),
       ``(B) in the case of coal--
       ``(i) any producer subject to the tax under section 4121, 
     and
       ``(ii) any importer of coal into the United States,
       ``(C) in the case of natural gas--
       ``(i) any entity which produces natural gas (as defined in 
     section 613A(e)(2)) from a well located in the United States, 
     and
       ``(ii) any importer of natural gas into the United States,
       ``(D) in the case of any noncovered fuel emissions, the 
     entity which is the source of such emissions, provided that 
     the total amount of carbon dioxide or methane emitted by such 
     entity for the preceding year (as determined using the 
     methodology required under section 4692(e)(4)) was not less 
     than 25,000 metric tons, and
       ``(E) any entity or class of entities which, as determined 
     by the Secretary, is transporting, selling, or otherwise 
     using a covered fuel in a manner which emits a greenhouse gas 
     into the atmosphere and which has not been covered by the 
     carbon fee, the fee on noncovered fuel emissions, or the 
     carbon border fee adjustment.
       ``(5) Covered fuel.--The term `covered fuel' means crude 
     oil, natural gas, coal, or any other product derived from 
     crude oil, natural gas, or coal which shall be used so as to 
     emit greenhouse gases to the atmosphere.
       ``(6) Greenhouse gas.--The term `greenhouse gas'--
       ``(A) has the meaning given such term in section 901 of the 
     Energy Independence and Security Act of 2007 (42 U.S.C. 
     17321), and
       ``(B) includes any other gases identified by rule of the 
     Administrator.
       ``(7) Greenhouse gas content.--The term `greenhouse gas 
     content' means the amount of greenhouse gases, expressed in 
     metric tons of CO2-e, which would be emitted to 
     the atmosphere by the use of a covered fuel.
       ``(8) Noncovered fuel emission.--The term `noncovered fuel 
     emission' means any carbon dioxide or methane emitted as a 
     result of the production, processing, transport, or use of 
     any product or material within the energy or industrial 
     sectors--
       ``(A) including any fugitive or process emissions 
     associated with the production, processing, or transport of a 
     covered fuel, and
       ``(B) excluding any emissions from the combustion or use of 
     a covered fuel.
       ``(9) Qualified carbon oxide.--The term `qualified carbon 
     oxide' has the meaning given the term in section 45Q(c).
       ``(10) United states.--The term `United States' shall be 
     treated as including each possession of the United States 
     (including the Commonwealth of Puerto Rico and the 
     Commonwealth of the Northern Mariana Islands).

     ``SEC. 4692. CARBON FEE.

       ``(a) Definitions.--In this section:
       ``(1) Applicable period.--The term `applicable period' 
     means, with respect to any determination made by the 
     Secretary under subsection (e)(3) for any calendar year, the 
     period--
       ``(A) beginning on January 1, 2023, and
       ``(B) ending on December 31 of the preceding calendar year.
       ``(2) Cumulative emissions.--The term `cumulative 
     emissions' means an amount equal to the sum of any greenhouse 
     gas emissions resulting from the use of covered fuels and any 
     noncovered fuel emissions for all years during the applicable 
     period.
       ``(3) Cumulative emissions target.--The term `cumulative 
     emissions target' means an amount equal to the sum of the 
     emissions targets for all years during the applicable period.
       ``(4) Emissions target.--The term `emissions target' means 
     the target for greenhouse gas emissions during a calendar 
     year as determined under subsection (e)(1).
       ``(b) Carbon Fee.--During any calendar year that begins 
     after December 31, 2022, there is imposed a carbon fee on any 
     covered entity's use, sale, or transfer of any covered fuel.
       ``(c) Amount of the Carbon Fee.--The carbon fee imposed by 
     this section is an amount equal to--
       ``(1) the greenhouse gas content of the covered fuel, 
     multiplied by
       ``(2) the carbon fee rate, as determined under subsection 
     (d).
       ``(d) Carbon Fee Rate.--The carbon fee rate shall be 
     determined in accordance with the following:

[[Page S1464]]

       ``(1) In general.--The carbon fee rate, with respect to any 
     use, sale, or transfer during a calendar year, shall be--
       ``(A) in the case of calendar year 2023, $25, and
       ``(B) except as provided in paragraphs (2) and (3), in the 
     case of any calendar year after 2023, the amount equal to the 
     sum of--
       ``(i) the amount under subparagraph (A), plus
       ``(ii)(I) in the case of calendar year 2024, $10, and
       ``(II) in the case of any calendar year after 2024, the 
     amount in effect under this clause for the preceding calendar 
     year, plus $10.
       ``(2) Inflation adjustment.--
       ``(A) In general.--In the case of any calendar year after 
     2023, the amount determined under paragraph (1)(B) shall be 
     increased by an amount equal to--
       ``(i) that dollar amount, multiplied by
       ``(ii) the cost-of-living adjustment determined under 
     section 1(f)(3) for that calendar year, determined by 
     substituting `2022' for `2016' in subparagraph (A)(ii) 
     thereof.
       ``(B) Rounding.--If any increase determined under 
     subparagraph (A) is not a multiple of $1, such increase shall 
     be rounded up to the next whole dollar amount.
       ``(3) Adjustment of carbon fee rate.--
       ``(A) Increase in rate following missed cumulative 
     emissions target.--In the case of any calendar year following 
     a determination by the Secretary pursuant to subsection 
     (e)(3) that the cumulative emissions for the preceding 
     calendar year exceeded the cumulative emissions target for 
     such year, paragraph (1)(B)(ii)(II) shall be applied--
       ``(i) in the case of calendar years 2026 through 2030, by 
     substituting `$15' for `$10',
       ``(ii) in the case of calendar years 2031 through 2040, by 
     substituting `$20' for `$10', and
       ``(iii) in the case of any calendar year beginning after 
     2040, by substituting `$25' for `$10'.
       ``(B) Cessation of rate increase following achievement of 
     cumulative emissions target.--In the case of any year 
     following a determination by the Secretary pursuant to 
     subsection (e)(3) that--
       ``(i) the average annual emissions of greenhouse gases from 
     covered entities over the preceding 3-year period are not 
     more than 10 percent of the greenhouse gas emissions during 
     the year 2018, and
       ``(ii) the cumulative emissions did not exceed the 
     cumulative emissions target,
     paragraph (1)(B)(ii)(II) shall be applied by substituting 
     `$0' for `$10'.
       ``(C) Methodology.--With respect to any year, the annual 
     greenhouse gas emissions and cumulative emissions described 
     in subparagraph (A) or (B) shall be determined using the 
     methodology required under subsection (e)(4).
       ``(e) Emissions Targets.--
       ``(1) In general.--
       ``(A) Reference year.--For purposes of subsection (d), the 
     emissions target for any year shall be the amount of 
     greenhouse gas emissions that is equal to--
       ``(i) for calendar years 2023 and 2024, the applicable 
     percentage of the total amount of greenhouse gas emissions 
     from the use of any covered fuel during calendar year 2018, 
     and
       ``(ii) for calendar year 2025 and each calendar year 
     thereafter, the applicable percentage of the total amount of 
     greenhouse gas emissions from the use of any covered fuel and 
     noncovered fuel emissions during calendar year 2018.
       ``(B) Methodology.--For purposes of subparagraph (A), with 
     respect to determining the total amount of greenhouse gas 
     emissions from the use of any covered fuel and noncovered 
     fuel emissions during calendar year 2018, the Administrator 
     shall use such methods as are determined appropriate, 
     provided that such methods are, to the greatest extent 
     practicable, comparable to the methods established under 
     paragraph (4).
       ``(2) Applicable percentage.--
       ``(A) 2023 through 2035.--In the case of calendar years 
     2023 through 2035, the applicable percentage shall be 
     determined as follows:
Applicable percentage
  2023.......................................................81 percent
  2024.......................................................75 percent
  2025.......................................................70 percent
  2026.......................................................67 percent
  2027.......................................................63 percent
  2028.......................................................60 percent
  2029.......................................................57 percent
  2030.......................................................55 percent
  2031.......................................................52 percent
  2032.......................................................49 percent
  2033.......................................................46 percent
  2034.......................................................43 percent
  2035.......................................................40 percent
       ``(B) 2036 through 2050.--In the case of calendar years 
     2036 through 2050, the applicable percentage shall be equal 
     to--
       ``(i) the applicable percentage for the preceding year, 
     minus
       ``(ii) 2 percentage points.
       ``(C) After 2050.--In the case of any calendar year 
     beginning after 2050, the applicable percentage shall be 
     equal to 10 percent.
       ``(3) Emissions reporting and determinations.--
       ``(A) Reporting.--Not later than September 30, 2024, and 
     annually thereafter, the Administrator, in consultation with 
     the Secretary, shall make available to the public a report 
     on--
       ``(i) the cumulative emissions with respect to the 
     preceding calendar year, and
       ``(ii) any other relevant information, as determined 
     appropriate by the Administrator.
       ``(B) Determinations.--Not later than September 30, 2025, 
     and annually thereafter, the Administrator, in consultation 
     with the Secretary and as part of the report described in 
     subparagraph (A), shall determine whether cumulative 
     emissions with respect to the preceding calendar year 
     exceeded the cumulative emissions target with respect to such 
     year.
       ``(4) Emissions accounting methodology.--
       ``(A) In general.--Not later than January 1, 2023, the 
     Administrator shall prescribe rules for greenhouse gas 
     accounting for covered entities for purposes of this 
     subchapter, which shall--
       ``(i) to the greatest extent practicable, employ existing 
     data collection methodologies and greenhouse gas accounting 
     practices,
       ``(ii) ensure that the method of accounting--

       ``(I) applies to--

       ``(aa) all greenhouse gas emissions from covered fuels and 
     all noncovered fuel emissions, and
       ``(bb) all covered entities,

       ``(II) excludes--

       ``(aa) any greenhouse gas emissions which are not described 
     item (aa) of subclause (I), and
       ``(bb) any entities which are not described in item (bb) of 
     such subclause, and

       ``(III) appropriately accounts for--

       ``(aa) qualified carbon oxide which is captured and 
     disposed or used in a manner described in section 4694, and
       ``(bb) nonemitting uses of covered fuels, as described in 
     subsection (f),
       ``(iii) subject to such penalties as are determined 
     appropriate by the Administrator, require any covered entity 
     to report, not later than April 1 of each calendar year--

       ``(I) the total greenhouse gas content of any covered fuels 
     used, sold, or transferred by such covered entity during the 
     preceding calendar year, and
       ``(II) the total noncovered fuel emissions of the covered 
     entity during the preceding calendar year, and

       ``(iv) require any information reported pursuant to clause 
     (iii) to be verified by a third-party entity that, subject to 
     such process as is determined appropriate by the 
     Administrator, has been certified by the Administrator with 
     respect to the qualifications, independence, and reliability 
     of such entity.
       ``(B) Greenhouse gas reporting program.--For purposes of 
     establishing the rules described in subparagraph (A), the 
     Administrator may elect to modify the activities of the 
     Greenhouse Gas Reporting Program to satisfy the requirements 
     described in clauses (i) through (iv) of such subparagraph.
       ``(5) Revisions.--With respect to any determination made by 
     the Administrator as to the amount of greenhouse gas 
     emissions for any calendar year (including calendar year 
     2018), any subsequent revision by the Administrator with 
     respect to such amount shall apply for purposes of the fee 
     imposed under subsection (b) for any calendar years beginning 
     after such revision.
       ``(f) Exemption and Refund.--The Secretary shall prescribe 
     such rules as are necessary to ensure the carbon fee imposed 
     by this section is not imposed with respect to any 
     nonemitting use, or any sale or transfer for a nonemitting 
     use, including rules providing for the refund of any carbon 
     fee paid under this section with respect to any such use, 
     sale, or transfer.
       ``(g) Administrative Authority.--The Secretary, in 
     consultation with the Administrator, shall prescribe such 
     regulations, and other guidance, to assess and collect the 
     carbon fee imposed by this section, including--
       ``(1) the identification of covered entities that are 
     liable for payment of a fee under this section or section 
     4693,
       ``(2) as may be necessary or convenient, rules for 
     distinguishing between different types of covered entities,
       ``(3) as may be necessary or convenient, rules for 
     distinguishing between the greenhouse gas emissions of a 
     covered entity and the greenhouse gas emissions that are 
     attributed to the covered entity but not directly emitted by 
     the covered entity,
       ``(4) requirements for the quarterly payment of such fees, 
     and
       ``(5) rules to ensure that the carbon fee under this 
     section, the fee on noncovered fuel emissions under section 
     4693, or the carbon border fee adjustment is not imposed on 
     an emission from covered fuel or noncovered fuel emission 
     more than once.

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

       ``(a) In General.--During any calendar year that begins 
     after December 31, 2024, there is imposed a fee on a covered 
     entity for any noncovered fuel emissions which occur during 
     the calendar year.
       ``(b) Amount.--The fee to be paid under subsection (a) by 
     the covered entity which is the source of the emissions 
     described in that subsection shall be an amount equal to--
       ``(1) the total amount, in metric tons of CO2-e, 
     of emitted greenhouse gases, multiplied by
       ``(2) an amount equal to the carbon fee rate in effect 
     under section 4692(d) for the calendar year of such emission.
       ``(c) Administrative Authority.--The Secretary, in 
     consultation with the Administrator, shall prescribe such 
     regulations, and other guidance, to assess and collect the 
     carbon fee imposed by this section, including regulations 
     describing the requirements for the quarterly payment of such 
     fees.

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

       ``(a) In General.--

[[Page S1465]]

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

     ``SEC. 4695. BORDER ADJUSTMENTS.

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

     SEC. 4. AMERICA'S CLEAN FUTURE FUND.

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

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

       ``(a) Establishment and Funding.--There is established in 
     the Treasury of the United States a trust fund to be known as 
     the `America's Clean Future Fund' (referred to in this 
     section as the `Trust Fund'), consisting of such amounts as 
     are appropriated to the Trust Fund under subsection (b).
       ``(b) Transfers to America's Clean Future Fund.--There is 
     appropriated to the Trust Fund, out of any funds in the 
     Treasury not otherwise appropriated, amounts equal to the 
     fees received into the Treasury under sections 4692, 4693, 
     and 4695, less--
       ``(1) any amounts refunded or paid under sections 4692(d), 
     4694, and 4695(b), and
       ``(2) for each of the first 18 fiscal years beginning after 
     September 30, 2023, an amount equal to the quotient of--
       ``(A) $100,000,000,000, and
       ``(B) 18.
       ``(c) Expenditures.--For each fiscal year, amounts in the 
     Trust Fund shall be apportioned as follows:
       ``(1) Carbon fee rebate and agricultural decarbonization 
     transition payments.--
       ``(A) Carbon fee rebate.--For the purposes described in 
     section 5 of the America's Clean Future Fund Act and any 
     expenses necessary to administer such section--
       ``(i) for each of the first 10 fiscal years beginning after 
     September 30, 2023, an amount equal to--

       ``(I) 75 percent of those amounts, minus
       ``(II) the amount determined under subparagraph (B) for 
     such fiscal year, and

       ``(ii) for any fiscal year beginning after the period 
     described in clause (i), the applicable percentage of such 
     amounts.
       ``(B) Agricultural decarbonization transition payments.--
     For the purposes described in section 6 of the America's 
     Clean Future Fund Act, for each of the first 10 fiscal years 
     beginning after September 30, 2023, an amount equal to 7 
     percent of the amount determined annually under subparagraph 
     (A)(i)(I).
       ``(C) Applicable percentage.--For purposes of subparagraph 
     (A)(ii), the applicable percentage shall be equal to--
       ``(i) for the first fiscal year beginning after the period 
     described in subparagraph (A)(i), 76 percent,
       ``(ii) for each of the first 3 fiscal years subsequent to 
     the period described in clause (i), the applicable percentage 
     for the preceding fiscal year increased by 1 percentage 
     point, and
       ``(iii) for any fiscal year subsequent to the period 
     described in clause (ii), 80 percent.
       ``(2) Climate change finance corporation.--
       ``(A) In general.--For the purposes described in section 2 
     of the America's Clean Future Fund Act, the applicable 
     percentage of such amounts.
       ``(B) Applicable percentage.--For purposes of this 
     paragraph, the applicable percentage shall be equal to--
       ``(i) for each of the first 10 fiscal years beginning after 
     the period described in subsection (e) of such section, 15 
     percent,
       ``(ii) for each of the first 4 fiscal years subsequent to 
     the period described in clause (i), the applicable percentage 
     for the preceding fiscal year increased by 1 percentage 
     point, and
       ``(iii) for any fiscal year subsequent to the period 
     described in clause (ii), 20 percent.
       ``(3) Transition assistance for impacted communities.--
       ``(A) In general.--For the purposes described in section 7 
     of the America's Clean Future Fund Act, the applicable 
     percentage of such amounts.
       ``(B) Applicable percentage.--For purposes of this 
     paragraph, the applicable percentage shall be equal to--
       ``(i) for each of the first 10 fiscal years beginning after 
     September 30, 2023, 10 percent,
       ``(ii) for each of the first 4 fiscal years subsequent to 
     the period described in clause (i), the applicable percentage 
     for the preceding fiscal year reduced by 2 percentage points, 
     and
       ``(iii) for any fiscal year subsequent to the period 
     described in clause (ii), 0 percent.''.
       (b) Clerical Amendment.--The table of sections for 
     subchapter A of chapter 98 of the Internal Revenue Code of 
     1986 is amended by adding at the end the following new item:
``Sec. 9512. America's Clean Future Fund.''.

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

       (a) Eligible Individual.--
       (1) In general.--In this section, the term ``eligible 
     individual'' means, with respect to any quarter, any natural 
     living person--

[[Page S1466]]

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

     SEC. 6. AGRICULTURAL DECARBONIZATION TRANSITION PAYMENTS.

       (a) Purposes.--The purposes of this section are--
       (1) to provide transition assistance to eligible producers 
     in the agricultural, livestock, and forestry sectors to 
     prepare for and facilitate entry into private sector 
     greenhouse gas credit markets; and
       (2) to provide for the collection and reporting of data 
     under subsection (d).
       (b) Definitions.--In this section:
       (1) Eligible land.--
       (A) In general.--The term ``eligible land'' means land in 
     the United States--
       (i) on which farming, ranching, or forestry may physically 
     and legally be conducted; and
       (ii) that is--

       (I) cropland, grassland, pastureland, rangeland, hayland, 
     or other land on which food, feed, fiber, crops, livestock, 
     or other agricultural products are produced or capable of 
     being produced; or
       (II) nonindustrial private forest land (as defined in 
     section 5(c) of the Cooperative Forestry Assistance Act of 
     1978 (16 U.S.C. 2103a(c))).

       (B) Inclusion of tribal land.--The term ``eligible land'' 
     includes land described in subparagraph (A) that is Indian 
     land (as defined in section 2601 of the Energy Policy Act of 
     1992 (25 U.S.C. 3501)).
       (2) Eligible producer.--The term ``eligible producer'' 
     means an individual or legal entity that--
       (A) is an owner, operator, or tenant of eligible land;
       (B) has control over the eligible land;
       (C) is actively engaged in farming, ranching, or forestry 
     on the eligible land, as determined by the Secretary;
       (D) bears the risk of loss of the farming, ranching, or 
     forestry on the eligible land; and
       (E) has the ability to enter into an agreement with the 
     Secretary to carry out qualifying practices described in 
     subsection (c)(2) under the program.
       (3) Greenhouse gas emissions reduction.--The term 
     ``greenhouse gas emissions reduction'' means the reduction in 
     greenhouse gas emissions as a result of the adoption of 
     qualifying practices described in subsection (c)(2), as 
     compared to a historical baseline.
       (4) Historically underserved.--The term ``historically 
     underserved'', with respect to an eligible producer, means 
     that the eligible producer--
       (A) is American Indian or Alaskan Native;
       (B) is Asian or Asian American;
       (C) is Black or African American;
       (D) is Native Hawaiian or Pacific Islander;
       (E) is Hispanic;
       (F) is disabled;
       (G) is female;
       (H) is new to farming, ranching, or forestry, as determined 
     by the Secretary;
       (I)(i) has served in the United States Armed Forces; and
       (ii)(I) has not operated a farm, ranch, or forestry 
     operation;
       (II) is new to farming, ranching, or forestry, as 
     determined by the Secretary; or
       (III) first obtained veteran status during the previous 5-
     year period; or
       (J) is an owner, operator, or tenant of a limited resource 
     farming, ranching, or forestry operation or has a household 
     income not greater than the national poverty level.
       (5) Program.--The term ``program'' means the program 
     established under subsection (c)(1).
       (6) Secretary.--The term ``Secretary'' means the Secretary 
     of Agriculture.
       (c) Establishment of Program.--
       (1) In general.--The Secretary, in consultation with the 
     Administrator of the Environmental Protection Agency, shall 
     establish a program to provide payments to eligible producers 
     that will assist with the transition to reducing greenhouse 
     gas emissions through the adoption of qualifying practices 
     described in paragraph (2).
       (2) Qualifying practices.--
       (A) In general.--To be eligible for payments under the 
     program, a practice shall be--

[[Page S1467]]

       (i) approved by the Secretary; and
       (ii) measurable, reportable, and verifiable for reducing 
     greenhouse gas emissions, as determined by the Secretary.
       (B) Included practices.--Practices that the Secretary may 
     determine to be qualifying practices under the program 
     include--
       (i) improved crop, soil health, water, and land management 
     systems, including--

       (I) diversified soil health-enhancing cropping systems that 
     may include resource-conserving crop rotations, cover crops, 
     and sod crops;
       (II) conservation plantings, such as prairie strips, 
     contour grass strips, filter strips and riparian buffers, 
     field borders, hedgerows, windbreaks, alley cropping, and 
     silvopasture or other agroforestry plantings;
       (III) conservation tillage;
       (IV) fertilizer practice improvements, including 
     biologically based nutrient management;
       (V) ecologically appropriate reforestation and other 
     sustainable forestry and related stewardship practices;
       (VI) application of soil carbon amendments, such as compost 
     or biochar;
       (VII) restoration or avoidance of the conversion of 
     grassland, wetland, and forest land; and
       (VIII) the adoption of organic and other similar advanced 
     agroecological production systems;

       (ii) livestock management, including--

       (I) enteric fermentation reduction, including--

       (aa) improved feed, forage, and grazing; and
       (bb) feed additives approved by the Commissioner of Food 
     and Drugs;

       (II) improved manure management, including anaerobic 
     digesters; and
       (III) the integration of livestock and crop production;

       (iii) on-site capital upgrades and infrastructure 
     investments, including--

       (I) building and equipment refurbishment or upgrades, 
     including energy efficiency technologies and digital 
     technologies; and
       (II) the adoption of renewable or clean energy;

       (iv) conservation easements, including farm, ranch, and 
     forest land preservation, that include conservation 
     activities to improve soil health and reduce greenhouse gas 
     emissions; and
       (v) other similar practices, as determined by the 
     Secretary.
       (3) Considerations.--In determining the rate and duration 
     of a payment under paragraph (1), the Secretary shall 
     consider--
       (A) the degree of additionality of the greenhouse gas 
     emissions reduction;
       (B) whether the recipient of the payment was an early 
     adopter of 1 or more practices that reduce greenhouse gas 
     emissions;
       (C) the likelihood that the applicable qualifying practice 
     described in paragraph (2) would have been carried out absent 
     the provision of the payment;
       (D) the degree of transitionality or permanence of the 
     greenhouse gas emissions reduction;
       (E) whether the applicable qualifying practice described in 
     paragraph (2) provides multiple environmental and health co-
     benefits in addition to reduced greenhouse gas emissions;
       (F) the degree to which current soil conditions influence 
     the greenhouse gas emissions reductions;
       (G) the degree to which the recipient of the payment is a 
     historically underserved eligible producer;
       (H) the integration with and enhancement of payments and 
     policies of similar Federal, State, or local programs; and
       (I) any payments received, or to be received, by the 
     applicable eligible producer from a private carbon offset 
     market due to the applicable qualifying practice described in 
     paragraph (2).
       (4) Ineligibility.--A person that is determined to be in 
     violation of any applicable water or air quality regulation, 
     including under the Federal Water Pollution Control Act (33 
     U.S.C. 1251 et seq.) (including regulations), shall not be 
     eligible for any payment under paragraph (1) during the 
     period of the violation.
       (5) Effectiveness.--The authority to provide payments under 
     this subsection shall be effective for each of the first 10 
     fiscal years beginning after September 30, 2022.
       (d) Collection of Data and Reporting.--
       (1) Measurement system.--
       (A) In general.--The Secretary shall establish an outcomes-
     based measurement system (referred to in this paragraph as 
     the ``measurement system'') that uses the best available 
     science and technology for cost-effective recordkeeping, 
     modeling, and measurement of farm-level greenhouse gas 
     emissions on eligible land enrolled in the program.
       (B) Standards.--Not later than 18 months after the date of 
     enactment of this Act, the Secretary shall promulgate 
     standards on the measurement system, based on information 
     obtained from--
       (i) agro-ecosystem models;
       (ii) remote sensing data and analysis;
       (iii) soil health demonstration trials; and
       (iv) field-level measurement.
       (C) Protocols.--In developing the measurement system, the 
     Secretary shall compile and publish a list of generally 
     accepted public and private protocols for soil health and 
     greenhouse gas programs and markets.
       (D) Review.--The Secretary shall maintain the measurement 
     system by--
       (i) conducting an annual review of the measurement system; 
     and
       (ii) making any necessary updates to the measurement 
     system.
       (2) Inventory.--
       (A) In general.--For the purposes of providing payments 
     under the program, the Secretary shall conduct a nationwide 
     soil health and agricultural greenhouse gas emissions 
     inventory that uses the best available science and data to 
     establish baselines and expected average performance for soil 
     carbon drawdown and storage and greenhouse gas emissions 
     reduction by primary production type and production region.
       (B) Database.--The Secretary shall--
       (i) establish an accessible and interoperable database for 
     the inventory established under subparagraph (A) using the 
     measurement system established under paragraph (1); and
       (ii) improve and update the database as new data is 
     collected, but not less frequently than once every 2 years.
       (3) Criteria.--
       (A) In general.--The Secretary shall establish criteria for 
     payments under the program to inform policy and markets 
     established to promote soil carbon sequestration or 
     greenhouse gas emissions reductions.
       (B) Requirements.--The criteria established under 
     subparagraph (A) shall--
       (i) have a documented likelihood to lead to transitioning 
     towards or providing long-term net greenhouse gas emissions 
     reductions, according to the best available science;
       (ii) be based in part on environmental impact modeling of 
     the changes of shifting from baseline practices to new or 
     improved practices; and
       (iii) prevent, to the maximum extent practicable, the 
     degradation of other natural resource or environmental 
     conditions.
       (4) Measurement, reporting, monitoring, and verification 
     services.--
       (A) In general.--The Secretary--
       (i) shall provide services described in subparagraph (B) to 
     eligible producers participating in the program; and
       (ii) may approve and provide oversight of 1 or more third-
     party agents to provide services described in subparagraph 
     (B) to eligible producers participating in the program.
       (B) Services described.--Services referred to in 
     subparagraph (A) are determining the greenhouse gas emissions 
     reduction by--
       (i) measurement;
       (ii) reporting;
       (iii) monitoring; and
       (iv) verification.
       (C) Use of protocols.--Services referred to in subparagraph 
     (A) shall be provided using--
       (i) the measurement system described in paragraph (1); and
       (ii) the criteria described in paragraph (3).
       (D) Use of department of agriculture resources.--The 
     Secretary shall require a third-party agent approved under 
     subparagraph (A)(ii) to use the resources, boards, 
     committees, geospatial data, aerial or other maps, employees, 
     offices, and capacities of the Department of Agriculture, to 
     the maximum extent practicable, in providing services under 
     that subparagraph to eligible producers.
       (E) Privacy and data security.--
       (i) In general.--The Secretary shall establish--

       (I) safeguards to protect the privacy of information that 
     is submitted through or retained by a third-party agent 
     approved under subparagraph (A), including employees and 
     contractors of the third-party agent; and
       (II) such other rules and standards of data security as the 
     Secretary determines to be appropriate to carry out this 
     subsection.

       (ii) Penalties.--The Secretary shall establish penalties 
     for any violations of privacy or confidentiality under clause 
     (i).
       (F) Disclosure of information.--
       (i) Public disclosure.--Information collected for purposes 
     of services provided under subparagraph (A) may be disclosed 
     to the public--

       (I) if the information is transformed into a statistical or 
     aggregate form such that the information does not include any 
     identifiable or personal information of individual producers; 
     or
       (II) in a form that may include identifiable or personal 
     information of a producer only if that producer consents to 
     the disclosure of the information.

       (ii) Requirement.--The participation of a producer in, and 
     the receipt of any benefit by the producer under, a program 
     under this section or any other program administered by the 
     Secretary may not be conditioned on the producer providing 
     consent under clause (i)(II).
       (iii) Research, audit, and program improvement.--
     Information collected for the purposes of services provided 
     under subparagraph (A) may be disclosed for the purposes of 
     providing technical assistance, including audit, research, or 
     improvement of a program under this section, either in 
     aggregate or in a form that includes identifiable or personal 
     information of a producer, if the Secretary obtains adequate 
     assurances that--

       (I) the recipient shall ensure privacy safeguards of 
     identifiable or personal information of a producer; and
       (II) the release of any data to the public will only occur 
     only if the data has been transformed into a statistical or 
     aggregate form.

       (e) Regulations.--Not later than July 1, 2022, the 
     Secretary shall promulgate regulations to carry out this 
     section, including--

[[Page S1468]]

       (1) the amount of a payment under subsection (c), which 
     shall be based on--
       (A) the quantity of carbon dioxide equivalent emissions 
     reduced; and
       (B) the considerations described in subsection (c)(3);
       (2) a methodology that any third-party agents approved 
     under subsection (d)(4)(A)(ii) shall use to provide the 
     services under that subsection, including--
       (A) an accreditation process; and
       (B) a conflict of interest policy; and
       (3) provisions for the ownership and transportability of 
     data, including historical data, generated by an eligible 
     producer for the purpose of determining eligibility for 
     payments under the program.

     SEC. 7. TRANSITION ASSISTANCE FOR IMPACTED COMMUNITIES.

       (a) Definitions.--In this section:
       (1) Indian tribe.--The term ``Indian Tribe'' has the 
     meaning given the term in section 4 of the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 5304).
       (2) Individual with a barrier to employment.--The term 
     ``individual with a barrier to employment'' has the meaning 
     given the term in section 3 of the Workforce Innovation and 
     Opportunity Act (29 U.S.C. 3102).
       (3) Institution of higher education.--The term 
     ``institution of higher education'' has the meaning given the 
     term in section 101 of the Higher Education Act of 1965 (20 
     U.S.C. 1001).
       (4) Local board.--The term ``local board'' has the meaning 
     given the term in section 3 of the Workforce Innovation and 
     Opportunity Act (29 U.S.C. 3102).
       (5) Recognized postsecondary credential.--The term 
     ``recognized postsecondary credential'' has the meaning given 
     the term in section 3 of the Workforce Innovation and 
     Opportunity Act (29 U.S.C. 3102).
       (6) Secretary.--The term ``Secretary'' means the Secretary 
     of Commerce, acting through the Assistant Secretary of 
     Commerce for Economic Development.
       (7) State.--The term ``State'' means--
       (A) a State;
       (B) the District of Columbia;
       (C) the Commonwealth of Puerto Rico; and
       (D) any other territory or possession of the United States.
       (8) State board.--The term ``State board'' has the meaning 
     given the term in section 3 of the Workforce Innovation and 
     Opportunity Act (29 U.S.C. 3102).
       (9) Supportive services.--The term ``supportive services'' 
     has the meaning given the term in section 3 of the Workforce 
     Innovation and Opportunity Act (29 U.S.C. 3102).
       (b) Grants.--The Secretary, in coordination with the 
     Secretary of Labor, shall provide grants to eligible entities 
     for transition assistance to a low-carbon economy.
       (c) Eligible Entities.--An entity eligible to receive a 
     grant under this section is a labor organization, an 
     institution of higher education, a unit of State or local 
     government, an Indian Tribe, an economic development 
     organization, a nonprofit organization, community-based 
     organization, or intermediary, or a State board or local 
     board that serves or is located in a community that--
       (1) as determined by the Secretary, in coordination with 
     the Secretary of Labor, has been or will be impacted by 
     economic changes in carbon-intensive industries, including 
     job losses;
       (2) as determined by the Secretary, in consultation with 
     the Administrator of the Federal Emergency Management Agency, 
     has been or is at risk of being impacted by extreme weather 
     events, sea level rise, and natural disasters related to 
     climate change; or
       (3) as determined by the Secretary, in consultation with 
     the Administrator of the Environmental Protection Agency, has 
     been impacted by harmful residuals from a fossil fuel or 
     carbon-intensive industry.
       (d) Use of Funds.--An eligible entity that receives a grant 
     under this section shall use the grant for--
       (1) economic and workforce development activities, such 
     as--
       (A) job creation;
       (B) providing reemployment and worker transition 
     assistance, including registered apprenticeships, subsidized 
     employment, job training, transitional jobs, and supportive 
     services, with priority given to--
       (i) workers impacted by changes in carbon-intensive 
     industries;
       (ii) individuals with a barrier to employment; and
       (iii) programs that lead to a recognized postsecondary 
     credential;
       (C) local and regional investment, including commercial and 
     industrial economic diversification;
       (D) export promotion; and
       (E) establishment of a monthly subsidy payment for workers 
     who retire early due to economic changes in carbon-intensive 
     industries;
       (2) climate change resiliency, such as--
       (A) building electrical, communications, utility, 
     transportation, and other infrastructure in flood-prone areas 
     above flood zone levels;
       (B) building flood and stormproofing measures in flood-
     prone areas and erosion-prone areas;
       (C) increasing the resilience of a surface transportation 
     infrastructure asset to withstand extreme weather events and 
     climate change impacts;
       (D) improving stormwater infrastructure;
       (E) increasing the resilience of agriculture to extreme 
     weather;
       (F) ecological restoration;
       (G) increasing the resilience of forests to wildfires;
       (H) increasing coastal resilience; and
       (I) implementing heat island cooling strategies;
       (3) environmental cleanup from fossil fuel industry 
     facilities that are abandoned or retired, or closed due to 
     bankruptcy, and residuals from carbon-intensive industries, 
     such as--
       (A) coal ash and petroleum coke cleanup;
       (B) mine reclamation;
       (C) reclamation and plugging of abandoned oil and natural 
     gas wells on private and public land; and
       (D) remediation of impaired waterways and drinking water 
     resources; or
       (4) other activities as the Secretary, in coordination with 
     the Secretary of Labor, the Administrator of the Federal 
     Emergency Management Agency, and the Administrator of the 
     Environmental Protection Agency, determines to be 
     appropriate.
       (e) Requirements.--
       (1) Labor standards; nondiscrimination.--An eligible entity 
     that receives a grant under this section shall use the funds 
     in a manner consistent with sections 181 and 188 of the 
     Workforce Innovation and Opportunity Act (29 U.S.C. 3241, 
     3248).
       (2) Wage rate requirements.--
       (A) In general.--All laborers and mechanics employed by 
     eligible entities to carry out projects and activities funded 
     directly by or assisted in whole or in part by a grant under 
     this section shall be paid at wages at rates not less than 
     those prevailing on projects of a similar character in the 
     locality as determined by the Secretary of Labor in 
     accordance with subchapter IV of chapter 31 of title 40, 
     United States Code (commonly known as the ``Davis-Bacon 
     Act'').
       (B) Authority.--With respect to the labor standards 
     specified in subparagraph (A), the Secretary of Labor shall 
     have the authority and functions set forth in Reorganization 
     Plan Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. App.) and 
     section 3145 of title 40, United States Code.
       (3) Buy america requirements.--
       (A) In general.--All iron, steel, and manufactured goods 
     used for projects and activities carried out with a grant 
     under this section shall be produced in the United States.
       (B) Waiver.--The Secretary may waive the requirement in 
     subparagraph (A) if the Secretary finds that--
       (i) enforcing the requirement would be inconsistent with 
     the public interest;
       (ii) the iron, steel, and manufactured goods produced in 
     the United States are not produced in a sufficient and 
     reasonably available amount or are not of a satisfactory 
     quality; or
       (iii) enforcing the requirement will increase the overall 
     cost of the project or activity by more than 25 percent.
       (f) Coordination.--An eligible entity that receives a grant 
     under this section is encouraged to collaborate or partner 
     with other eligible entities in carrying out activities with 
     that grant.
       (g) Report.--Not later than 3 years after the date on which 
     the Secretary establishes the grant program under this 
     section, the Secretary and the Secretary of Labor shall 
     submit to Congress a report on the effectiveness of the grant 
     program, including--
       (1) the number of individuals that have received 
     reemployment or worker transition assistance under this 
     section;
       (2) a description of any job creation activities carried 
     out with a grant under this section and the number of jobs 
     created from those activities;
       (3) the percentage of individuals that have received 
     reemployment or worker transition assistance under this 
     section who are, during the second and fourth quarters after 
     exiting the program--
       (A) in education or training activities; or
       (B) employed;
       (4) the average wages of individuals that have received 
     reemployment or worker transition assistance under this 
     section during the second and fourth quarters after exit from 
     the program;
       (5) a description of any regional investment activities 
     carried out with a grant under this section;
       (6) a description of any export promotion activities 
     carried out with a grant under this section, including--
       (A) a description of the products promoted; and
       (B) an analysis of any increase in exports as a result of 
     the promotion;
       (7) a description of any resilience activities carried out 
     with a grant under this section;
       (8) a description of any cleanup activities from fossil 
     fuel industry facilities or carbon-intensive industries 
     carried out with a grant under this section; and
       (9) the distribution of funding among geographic and 
     socioeconomic groups, including urban and rural communities, 
     low-income communities, communities of color, and Indian 
     Tribes.
       (h) Funding.--
       (1) Initial funding.--There is appropriated to the 
     Secretary, out of any funds in the Treasury not otherwise 
     appropriated, $5,000,000,000 for each of fiscal years 2022 
     and 2023 to carry out this section, to remain available until 
     expended.
       (2) America's clean future fund.--The Secretary shall carry 
     out this section using amounts made available from the 
     America's Clean Future Fund under section 9512 of the 
     Internal Revenue Code of 1986 (as added by section 4).

[[Page S1469]]

  


     SEC. 8. STUDY ON CARBON PRICING.

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

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

       (a) In General.--The Chair of the Council on Environmental 
     Quality, in consultation with the Secretaries of Agriculture, 
     Commerce, and the Interior, the Chief of Engineers, and the 
     Administrator of the Environmental Protection Agency, shall--
       (1) establish a target for carbon sequestration that can 
     reasonably be achieved through enhancing the ability of 
     public and private land and water to function as natural 
     carbon sinks;
       (2) develop strategies for meeting that target; and
       (3) develop strategies to expand protections for coastal 
     ecosystems that sequester carbon and provide resiliency 
     benefits, such as--
       (A) flood protection;
       (B) soil and beach retention;
       (C) erosion reduction;
       (D) biodiversity;
       (E) water purification; and
       (F) nutrient cycling.
       (b) Report.--As soon as practicable after the date of 
     enactment of this Act, the Chair of the Council on 
     Environmental Quality shall submit to Congress a report 
     describing--
       (1) the target and strategies described in paragraphs (1) 
     through (3) of subsection (a); and
       (2) any additional statutory authorities or authorized 
     funding levels needed to successfully implement those 
     strategies.
                                 ______
                                 
      By Mr. DURBIN (for himself, Ms. Baldwin, and Ms. Smith):
  S. 686. A bill to amend the Internal Revenue Code of 1986 to address 
the teacher and school leader shortage in early childhood, elementary, 
and secondary education, and for other purposes; to the Committee on 
Finance.
  Mr. DURBIN. Mr. President, I ask unanimous consent that the text of 
the bill be printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                 S. 686

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Retaining Educators Takes 
     Added Investment Now Act'' or the ``RETAIN Act''.

     SEC. 2. PURPOSE.

       The purpose of this Act is to create a refundable tax 
     credit for early childhood educators, teachers, early 
     childhood education program directors, school leaders, and 
     school-based mental health services providers in early 
     childhood, elementary, and secondary education settings that 
     rewards retention based on the time spent serving high-need 
     students.

     SEC. 3. FINDINGS.

       Congress finds the following:
       (1) The shortage of experienced, qualified early childhood 
     educators and elementary school and secondary school teachers 
     is a national problem that compromises the academic outcomes 
     and long-term success of students.
       (2) The shortage is the result of many factors including 
     low pay, frequent turnover in school leadership, poor 
     teaching conditions, and inadequate teacher supports.
       (3) The shortage is worse in high-poverty areas where the 
     factors contributing to the shortage are particularly acute 
     and have an increased negative impact on teachers of color 
     remaining in the field.
       (4) A child's access to high-quality early childhood 
     education is critical to supporting positive outcomes, and 
     early childhood educators--
       (A) play an important role in setting the foundation for 
     future learning, and
       (B) promote the development of vital skills, habits, and 
     mindsets that children need to be successful in school and in 
     life.
       (5) In 2019, the national median pay of early childhood 
     educators was a mere $30,520, with many early childhood 
     educators relying on government assistance programs such as 
     Medicaid, the supplemental nutrition assistance program 
     established under the Food and Nutrition Act of 2008 (7 
     U.S.C. 2011 et seq.), or the temporary assistance for needy 
     families program established under part A of title IV of the 
     Social Security Act (42 U.S.C. 601 et seq.), and struggling 
     to provide for their own families.
       (6) Studies have demonstrated that well-qualified, 
     experienced teachers are the single most important school-
     based element contributing to a child's academic achievement 
     and success.
       (7) In 2019, the average teacher salary in public 
     elementary schools and secondary schools was only $64,470, 
     which is on average 19.2 percent less than other college 
     graduates working in non-teaching fields, and with many 
     teachers struggling with large amounts of student loan debt.
       (8) An experienced, well-qualified education workforce must 
     also be reflective of the diversity of the student body 
     across race, ethnicity, and disability.
       (9) Experienced, well-qualified school leaders and school-
     based mental health service providers are essential for 
     providing strong educational opportunities and services for 
     students and promoting teacher retention through improved 
     professional supports and teaching conditions.
       (10) In 2020, surveys found nearly 27 percent of educators 
     were considering leaving teaching due to the COVID-19 
     pandemic, including 55 percent of teachers with more than 30 
     years of experience.

     SEC. 4. REFUNDABLE TAX CREDIT FOR TEACHER AND SCHOOL LEADER 
                   RETENTION.

       (a) In General.--Subpart C of part IV of subchapter A of 
     chapter 1 of subtitle A of the Internal Revenue Code of 1986 
     is amended by inserting after section 36B the following new 
     section:

     ``SEC. 36C. TEACHER AND SCHOOL LEADER RETENTION CREDIT.

       ``(a) Allowance of Credit.--
       ``(1) In general.--In the case of an individual who is 
     employed in a position described in paragraph (2) during a 
     school year ending with or within the taxable year, there 
     shall be allowed as a credit against the tax imposed by this 
     subtitle for the taxable year an amount equal to the 
     applicable amount (as determined under subsection (b)).
       ``(2) Eligible positions.--The positions described in this 
     paragraph shall consist of the following:
       ``(A) An eligible early childhood educator.
       ``(B) An eligible early childhood education program 
     director.
       ``(C) An eligible early childhood education provider.
       ``(D) An eligible teacher.
       ``(E) An eligible paraprofessional.
       ``(F) An eligible school-based mental health services 
     provider.
       ``(G) An eligible school leader.
       ``(b) Applicable Amount.--
       ``(1) In general.--For purposes of this section, the 
     applicable amount shall be an amount determined based on the 
     number of school years for which the individual has been 
     continuously employed in any position described in subsection 
     (a)(2), as follows:
       ``(A) Subject to paragraph (2), for the first year of 
     employment, $5,800.
       ``(B) For the second continuous year of employment, $5,800.
       ``(C) For the third and fourth continuous year of 
     employment, $7,000.

[[Page S1470]]

       ``(D) For the fifth, sixth, seventh, eighth, and ninth 
     continuous year of employment, $8,700.
       ``(E) For the tenth continuous year of employment, $11,600.
       ``(F) For the eleventh, twelfth, thirteenth, fourteenth, 
     and fifteenth continuous year of employment, $8,700.
       ``(G) For the sixteenth continuous year of employment, 
     $7,000.
       ``(H) For the seventeenth, eighteenth, nineteenth, and 
     twentieth continuous year of employment, $5,800.
       ``(2) First year.--For purposes of the first year of 
     employment ending with or within a taxable year, an 
     individual must have been so employed for a period of not 
     less than 4 months before the first day of such taxable year.
       ``(3) Limitation based on total number of school years.--In 
     the case of any individual who has been employed in any 
     position described in subsection (a)(2) for a total of more 
     than 20 school years, the applicable amount shall be reduced 
     to zero.
       ``(c) Inflation Adjustment.--
       ``(1) In general.--In the case of any taxable year 
     beginning after 2022, each of the dollar amounts in 
     subsection (b)(1) shall be increased by an amount equal to--
       ``(A) such dollar amount, multiplied by
       ``(B) the cost-of-living adjustment determined under 
     section 1(f)(3) for such calendar year by substituting 
     `calendar year 2021' for `calendar year 2016' in subparagraph 
     (A)(ii) thereof.
       ``(2) Rounding.--If any increase determined under paragraph 
     (1) is not a multiple of $100, such increase shall be rounded 
     to the nearest multiple of $100.
       ``(d) Supplementing, Not Supplanting, State and Local 
     Education Funds.--
       ``(1) In general.--A State educational agency or local 
     educational agency shall not reduce or adjust any 
     compensation, or any assistance provided through a loan 
     forgiveness program, to an employee of the State educational 
     agency or local educational agency who serves in any position 
     described in subsection (a)(2) due to the individual's 
     eligibility for the credit under this section.
       ``(2) Methodology.--Upon request by the Secretary of 
     Education, a State educational agency or local educational 
     agency shall reasonably demonstrate that the methodology used 
     to allocate amounts for compensation and for loan forgiveness 
     to the employees described in paragraph (1) at qualifying 
     schools or qualifying early childhood education programs 
     ensures that employees at each qualifying school or 
     qualifying early childhood education program in the State or 
     served by the local educational agency, respectively, receive 
     the same amount of State or local funds for compensation and 
     loan forgiveness that the qualifying school or qualifying 
     early childhood education program would receive if the credit 
     under this section had not been enacted.
       ``(e) Information Sharing.--The Secretary of Education and 
     the Secretary of Health and Human Services shall provide the 
     Secretary with such information as is necessary for purposes 
     of determining whether an early childhood education program 
     or an elementary school or secondary school satisfies the 
     requirements for a qualifying early childhood education 
     program or a qualifying school, respectively.
       ``(f) Definitions.--For purposes of this section--
       ``(1) ESEA definitions.--The terms `elementary school', 
     `local educational agency', `secondary school', and `State 
     educational agency' have the meanings given the terms in 
     section 8101 of the Elementary and Secondary Education Act of 
     1965 (20 U.S.C. 7801).
       ``(2) Eligible early childhood education program 
     director.--The term `eligible early childhood education 
     program director' means an employee or officer of a 
     qualifying early childhood education program who is 
     responsible for the daily instructional leadership and 
     managerial operations of such program.
       ``(3) Eligible early childhood education provider.--The 
     term `eligible early childhood education provider' means an 
     individual--
       ``(A) who--
       ``(i) has an associate's degree or higher degree in early 
     childhood education or a related field, or
       ``(ii) is enrolled during the taxable year in a program 
     leading to such an associate's or higher degree and is making 
     satisfactory progress toward such degree, and
       ``(B) who is responsible for the daily instructional 
     leadership and managerial operations of a qualifying early 
     childhood education program in a home-based setting.
       ``(4) Eligible early childhood educator.--The term 
     `eligible early childhood educator' means an individual--
       ``(A) who--
       ``(i) has an associate's degree or higher degree in early 
     childhood education or a related field, or
       ``(ii) is enrolled during the taxable year in a program 
     leading to such an associate's or higher degree and is making 
     satisfactory progress toward such degree,
       ``(B) who has credentials or a license under State law for 
     early childhood education, as applicable, and
       ``(C) whose primary responsibility is for the learning and 
     development of children in a qualifying early childhood 
     education program during the taxable year.
       ``(5) Eligible paraprofessional.--The term `eligible 
     paraprofessional' means an individual--
       ``(A) who is a paraprofessional, as defined in section 3201 
     of the Elementary and Secondary Education Act of 1965 (20 
     U.S.C. 7011),
       ``(B) who meets the applicable State professional standards 
     and qualifications pursuant to section 1111(g)(2)(M) of such 
     Act (20 U.S.C. 6311(g)(2)(M)),
       ``(C) whose primary responsibilities involve working or 
     assisting in a classroom setting, and
       ``(D) who is employed in a qualifying school or a 
     qualifying early childhood education program.
       ``(6) Eligible school-based mental health services 
     provider.--The term `eligible school-based mental health 
     services provider' means an individual--
       ``(A) described in section 4102(6) of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 7112(6)), and
       ``(B) who is employed in a qualifying school or a 
     qualifying early childhood education program.
       ``(7) Eligible school leader.--The term `eligible school 
     leader' means a principal, assistant principal, or other 
     individual who is--
       ``(A) an employee or officer of a qualifying school, and
       ``(B) responsible for the daily instructional leadership 
     and managerial operations in the qualifying school.
       ``(8) Eligible teacher.--The term `eligible teacher' means 
     an individual who--
       ``(A) is an elementary school or secondary school teacher 
     who, as determined by the State or local educational agency, 
     is a teacher of record who provides direct classroom teaching 
     (or classroom-type teaching in a nonclassroom setting) to 
     students in a qualifying school, and
       ``(B) meets applicable State certification and licensure 
     requirements, including any requirements for certification 
     obtained through alternative routes to certification, in the 
     State in which such school is located and in the subject area 
     in which the individual is the teacher of record.
       ``(9) Qualifying early childhood education program.--
       ``(A) In general.--The term `qualifying early childhood 
     education program' means an early childhood education 
     program, as defined in section 103 of the Higher Education 
     Act of 1965 (20 U.S.C. 1003), that, regardless of setting--
       ``(i) serves children who receive services for which 
     financial assistance is provided in accordance with the Child 
     Care and Development Block Grant Act of 1990 (42 U.S.C. 9857 
     et seq.), the Head Start Act (42 U.S.C. 9831 et seq.), or the 
     child and adult care food program established under section 
     17 of the Richard B. Russell National School Lunch Act (42 
     U.S.C. 1766), and
       ``(ii) participates in a State tiered and transparent 
     system for measuring program quality.
       ``(B) Special rule.--Notwithstanding subparagraph (A), an 
     early childhood program that does not satisfy the 
     requirements of subparagraph (A)(ii) shall be deemed to be a 
     qualifying early childhood education program until September 
     30, 2021, if the program--
       ``(i) satisfies all requirements of subparagraph (A) except 
     for clause (ii) of such subparagraph, and
       ``(ii)(I) meets the Head Start program performance 
     standards described in section 641A(a) of the Head Start Act 
     (42 U.S.C. 9836a(a)), if applicable, or
       ``(II) is accredited by a national accreditor of early 
     learning programs as of the date of enactment of the 
     Retaining Educators Takes Added Investment Now Act.
       ``(10) Qualifying school.--The term `qualifying school' 
     means--
       ``(A) a public elementary school or secondary school that--
       ``(i) is in the school district of a local educational 
     agency that is eligible for assistance under part A of title 
     I of the Elementary and Secondary Education Act of 1965 (20 
     U.S.C. 6311 et seq.), or
       ``(ii) is served or operated by an educational service 
     agency that is eligible for such assistance, or
       ``(B) an elementary school or secondary school that is 
     funded by the Bureau of Indian Education and that is in the 
     school district of a local educational agency that is 
     eligible for such assistance.''.
       (b) W-2 Reporting of Continuous Employment for Certain 
     Positions at Qualifying Early Childhood Education Programs or 
     Qualifying Schools.--Section 6051(a) of the Internal Revenue 
     Code of 1986 is amended by striking ``and'' at the end of 
     paragraph (16), by striking the period at the end of 
     paragraph (17) and inserting ``, and'', and by inserting 
     after paragraph (17) the following new paragraph:
       ``(18) in the case of an employee who is employed in a 
     position described in subsection (a)(2) of section 36C, the 
     number of school years for which such employee has been 
     continuously employed in any such position.''.
       (c) Conforming Amendments.--
       (1) The table of sections for subpart C of part IV of 
     subchapter A of chapter 1 of subtitle A of the Internal 
     Revenue Code of 1986 is amended by inserting after the item 
     relating to section 36B the following:

``Sec. 36C. Teacher and school leader retention credit.''.

       (2) Section 6211(b)(4)(A) of such Code is amended by 
     inserting ``36C,'' after ``36B,''.
       (3) Paragraph (2) of section 1324(b) of title 31, United 
     States Code, is amended by inserting ``36C,'' after ``36B,''.

[[Page S1471]]

       (d) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2021.

     SEC. 5. DEVELOPING INTERAGENCY DATA SERIES.

       The Secretary of Labor, in coordination with the Secretary 
     of Treasury, the Secretary of Education, and the Secretary of 
     Health and Human Services, shall--
       (1) develop and publish on the internet website of the 
     Bureau of Labor Statistics a data series that captures--
       (A) the average base salary of teachers in elementary 
     schools and secondary schools, disaggregated by--
       (i) employment in public elementary schools and secondary 
     schools that receive assistance under part A of title I of 
     the Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     6311 et seq.),
       (ii) employment in public elementary schools and secondary 
     schools that do not receive such assistance, and
       (iii) geographic region, and
       (B) the average base salary of early childhood educators, 
     disaggregated by highest level of degree attained, and
       (2) update the data series under paragraph (1) on an annual 
     basis.

                          ____________________