[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.
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