[Congressional Record Volume 168, Number 130 (Wednesday, August 3, 2022)]
[Senate]
[Pages S3922-S3993]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 5194. Mr. SCHUMER submitted an amendment intended to be proposed 
by him to the bill H.R. 5376, to provide for reconciliation pursuant to 
title II of S. Con. Res. 14; which was ordered to lie on the table; as 
follows:

        Strike all after the enacting clause and insert the 
     following:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Inflation Reduction Act of 
     2022''.

                     TITLE I--COMMITTEE ON FINANCE

                     Subtitle A--Deficit Reduction

     SEC. 10001. AMENDMENT OF 1986 CODE.

       Except as otherwise expressly provided, whenever in this 
     subtitle an amendment or repeal is expressed in terms of an 
     amendment to, or repeal of, a section or other provision, the 
     reference shall be considered to be made to a section or 
     other provision of the Internal Revenue Code of 1986.

                      PART 1--CORPORATE TAX REFORM

     SEC. 10101. CORPORATE ALTERNATIVE MINIMUM TAX.

       (a) Imposition of Tax.--
       (1) In general.--Paragraph (2) of section 55(b) is amended 
     to read as follows:
       ``(2) Corporations.--
       ``(A) Applicable corporations.--In the case of an 
     applicable corporation, the tentative minimum tax for the 
     taxable year shall be the excess of--
       ``(i) 15 percent of the adjusted financial statement income 
     for the taxable year (as determined under section 56A), over
       ``(ii) the corporate AMT foreign tax credit for the taxable 
     year.
       ``(B) Other corporations.--In the case of any corporation 
     which is not an applicable corporation, the tentative minimum 
     tax for the taxable year shall be zero.''.
       (2) Applicable corporation.--Section 59 is amended by 
     adding at the end the following new subsection:
       ``(k) Applicable Corporation.--For purposes of this part--
       ``(1) Applicable corporation defined.--
       ``(A) In general.--The term `applicable corporation' means, 
     with respect to any taxable year, any corporation (other than 
     an S corporation, a regulated investment company, or a real 
     estate investment trust) which meets the average annual 
     adjusted financial statement income test of subparagraph (B) 
     for one or more taxable years which--
       ``(i) are prior to such taxable year, and
       ``(ii) end after December 31, 2021.
       ``(B) Average annual adjusted financial statement income 
     test.--For purposes of this subsection--
       ``(i) a corporation meets the average annual adjusted 
     financial statement income test for a taxable year if the 
     average annual

[[Page S3923]]

     adjusted financial statement income of such corporation for 
     the 3-taxable-year period ending with such taxable year 
     exceeds $1,000,000,000, and
       ``(ii) in the case of a corporation described in paragraph 
     (2), such corporation meets the average annual adjusted 
     financial statement income test for a taxable year if--

       ``(I) the corporation meets the requirements of clause (i) 
     for such taxable year (determined after the application of 
     paragraph (2)), and
       ``(II) the average annual adjusted financial statement 
     income of such corporation (determined without regard to the 
     application of paragraph (2)) for the 3-taxable-year-period 
     ending with such taxable year is $100,000,000 or more.

       ``(C) Exception.--Notwithstanding subparagraph (A), the 
     term `applicable corporation' shall not include any 
     corporation which otherwise meets the requirements of 
     subparagraph (A) if--
       ``(i) such corporation--

       ``(I) has a change in ownership, or
       ``(II) has a specified number (to be determined by the 
     Secretary and which shall, as appropriate, take into account 
     the facts and circumstances of the taxpayer) of consecutive 
     taxable years, including the most recent taxable year, in 
     which the corporation does not meet the average annual 
     adjusted financial statement income test of subparagraph (B), 
     and

       ``(ii) the Secretary determines that it would not be 
     appropriate to continue to treat such corporation as an 
     applicable corporation.
     The preceding sentence shall not apply to any corporation if, 
     after the Secretary makes the determination described in 
     clause (ii), such corporation meets the average annual 
     adjusted financial statement income test of subparagraph (B) 
     for any taxable year beginning after the first taxable year 
     for which such determination applies.
       ``(D) Special rules for determining applicable corporation 
     status.--Solely for purposes of determining whether a 
     corporation is an applicable corporation under paragraph (1), 
     all adjusted financial statement income of persons treated as 
     a single employer with such corporation under subsection (a) 
     or (b) of section 52 shall be treated as adjusted financial 
     statement of income of such corporation, and adjusted 
     financial statement income of such corporation shall be 
     determined without regard to paragraphs (2)(D)(i) and (11) of 
     section 56A(c).
       ``(E) Other special rules.--
       ``(i) Corporations in existence for less than 3 years.--If 
     the corporation was in existence for less than 3-taxable 
     years, subparagraph (B) shall be applied on the basis of the 
     period during which such corporation was in existence.
       ``(ii) Short taxable years.--Adjusted financial statement 
     income for any taxable year of less than 12 months shall be 
     annualized by multiplying the adjusted financial statement 
     income for the short period by 12 and dividing the result by 
     the number of months in the short period.
       ``(iii) Treatment of predecessors.--Any reference in this 
     subparagraph to a corporation shall include a reference to 
     any predecessor of such corporation.
       ``(2) Special rule for foreign-parented corporations.--
       ``(A) In general.--Solely for purposes of determining 
     whether a corporation meets the average annual adjusted 
     financial statement income test under paragraph 
     (1)(B)(ii)(I), in the case of any corporation which for any 
     taxable year is a member of an international financial 
     reporting group the common parent of which is a foreign 
     corporation, such corporation shall include in the adjusted 
     financial statement income of such corporation for such 
     taxable year the adjusted financial statement income of all 
     foreign members of such group. Solely for purposes of this 
     subparagraph, adjusted financial statement income shall be 
     determined without regard to paragraphs (2)(D)(i), (3), (4), 
     and (11) of section 56A(c).
       ``(B) International financial reporting group.--For 
     purposes of subparagraph (A), the term `international 
     financial reporting group' shall have the meaning given such 
     term by section 163(n)(3).
       ``(C) Common parent.--For purposes of subparagraph (A), the 
     term `common parent' has the meaning given such term under 
     section 163(n)(5).
       ``(3) Regulations or other guidance.--The Secretary shall 
     provide regulations or other guidance for the purposes of 
     carrying out this subsection, including regulations or other 
     guidance--
       ``(A) providing a simplified method for determining whether 
     a corporation meets the requirements of paragraph (1), and
       ``'(B) addressing the application of this subsection to a 
     corporation that experiences a change in ownership.''.
       (3) Reduction for base erosion and anti-abuse tax.--Section 
     55(a)(2) is amended by inserting ``plus, in the case of an 
     applicable corporation, the tax imposed by section 59A'' 
     before the period at the end.
       (4) Conforming amendments.--
       (A) Section 55(a) is amended by striking ``In the case of a 
     taxpayer other than a corporation, there'' and inserting 
     ``There''.
       (B)(i) Section 55(b)(1) is amended--
       (I) by striking so much as precedes subparagraph (A) and 
     inserting the following:
       ``(1) Noncorporate taxpayers.--In the case of a taxpayer 
     other than a corporation--'', and
       (II) by adding at the end the following new subparagraph:
       ``(D) Alternative minimum taxable income.--The term 
     `alternative minimum taxable income' means the taxable income 
     of the taxpayer for the taxable year--
       ``(i) determined with the adjustments provided in section 
     56 and section 58, and
       ``(ii) increased by the amount of the items of tax 
     preference described in section 57.
     If a taxpayer is subject to the regular tax, such taxpayer 
     shall be subject to the tax imposed by this section (and, if 
     the regular tax is determined by reference to an amount other 
     than taxable income, such amount shall be treated as the 
     taxable income of such taxpayer for purposes of the preceding 
     sentence).''.
       (ii) Section 860E(a)(4) is amended by striking ``55(b)(2)'' 
     and inserting ``55(b)(1)(D)''.
       (iii) Section 897(a)(2)(A)(i) is amended by striking 
     ``55(b)(2)'' and inserting ``55(b)(1)(D)''.
       (C) Section 11(d) is amended by striking ``the tax imposed 
     by subsection (a)'' and inserting ``the taxes imposed by 
     subsection (a) and section 55''.
       (D) Section 12 is amended by adding at the end the 
     following new paragraph:
       ``(5) For alternative minimum tax, see section 55.''.
       (E) Section 882(a)(1) is amended by inserting ``, 55,'' 
     after ``section 11''.
       (F) Section 6425(c)(1)(A) is amended to read as follows:
       ``(A) the sum of--
       ``(i) the tax imposed by section 11 or subchapter L of 
     chapter 1, whichever is applicable, plus
       ``(ii) the tax imposed by section 55, plus
       ``(iii) the tax imposed by section 59A, over''.
       (G) Section 6655(e)(2) is amended by inserting ``, adjusted 
     financial statement income (as defined in section 56A),'' 
     before ``and modified taxable income'' each place it appears 
     in subparagraphs (A)(i) and (B)(i).
       (H) Section 6655(g)(1)(A) is amended by redesignating 
     clauses (ii) and (iii) as clauses (iii) and (iv), 
     respectively, and by inserting after clause (i) the following 
     new clause:
       ``(ii) the tax imposed by section 55,''.
       (b) Adjusted Financial Statement Income.--
       (1) In general.--Part VI of subchapter A of chapter 1 is 
     amended by inserting after section 56 the following new 
     section:

     ``SEC. 56A. ADJUSTED FINANCIAL STATEMENT INCOME.

       ``(a) In General.--For purposes of this part, the term 
     `adjusted financial statement income' means, with respect to 
     any corporation for any taxable year, the net income or loss 
     of the taxpayer set forth on the taxpayer's applicable 
     financial statement for such taxable year, adjusted as 
     provided in this section.
       ``(b) Applicable Financial Statement.--For purposes of this 
     section, the term `applicable financial statement' means, 
     with respect to any taxable year, an applicable financial 
     statement (as defined in section 451(b)(3) or as specified by 
     the Secretary in regulations or other guidance) which covers 
     such taxable year.
       ``(c) General Adjustments.--
       ``(1) Statements covering different taxable years.--
     Appropriate adjustments shall be made in adjusted financial 
     statement income in any case in which an applicable financial 
     statement covers a period other than the taxable year.
       ``(2) Special rules for related entities.--
       ``(A) Consolidated financial statements.--If the financial 
     results of a taxpayer are reported on the applicable 
     financial statement for a group of entities, rules similar to 
     the rules of section 451(b)(5) shall apply.
       ``(B) Consolidated returns.--Except as provided in 
     regulations prescribed by the Secretary, if the taxpayer is 
     part of an affiliated group of corporations filing a 
     consolidated return for any taxable year, adjusted financial 
     statement income for such group for such taxable year shall 
     take into account items on the group's applicable financial 
     statement which are properly allocable to members of such 
     group.
       ``(C) Treatment of dividends and other amounts.--In the 
     case of any corporation which is not included on a 
     consolidated return with the taxpayer, adjusted financial 
     statement income of the taxpayer with respect to such other 
     corporation shall be determined by only taking into account 
     the dividends received from such other corporation (reduced 
     to the extent provided by the Secretary in regulations or 
     other guidance) and other amounts which are includible in 
     gross income or deductible as a loss under this chapter 
     (other than amounts required to be included under sections 
     951 and 951A or such other amounts as provided by the 
     Secretary) with respect to such other corporation.
       ``(D) Treatment of partnerships.--
       ``(i) In general.--Except as provided by the Secretary, if 
     the taxpayer is a partner in a partnership, adjusted 
     financial statement income of the taxpayer shall be adjusted 
     to only take into account the taxpayer's distributive share 
     of adjusted financial statement income of such partnership.
       ``(ii) Adjusted financial statement income of 
     partnerships.--For the purposes of this part, the adjusted 
     financial statement income of a partnership shall be the 
     partnership's net income or loss set forth on such 
     partnership's applicable financial statement (adjusted under 
     rules similar to the rules of this section).

[[Page S3924]]

       ``(3) Adjustments to take into account certain items of 
     foreign income.--
       ``(A) In general.--If, for any taxable year, a taxpayer is 
     a United States shareholder of one or more controlled foreign 
     corporations, the adjusted financial statement income of such 
     taxpayer shall be adjusted to take into account such 
     taxpayer's pro rata share (determined under rules similar to 
     the rules under section 951(a)(2)) of items taken into 
     account in computing the net income or loss set forth on the 
     applicable financial statement (as adjusted under rules 
     similar to those that apply in determining adjusted financial 
     statement income) of each such controlled foreign corporation 
     with respect to which such taxpayer is a United States 
     shareholder.
       ``(B) Negative adjustments.--In any case in which the 
     adjustment determined under subparagraph (A) would result in 
     a negative adjustment for such taxable year--
       ``(i) no adjustment shall be made under this paragraph for 
     such taxable year, and
       ``(ii) the amount of the adjustment determined under this 
     paragraph for the succeeding taxable year (determined without 
     regard to this paragraph) shall be reduced by an amount equal 
     to the negative adjustment for such taxable year.
       ``(4) Effectively connected income.--In the case of a 
     foreign corporation, to determine adjusted financial 
     statement income, the principles of section 882 shall apply.
       ``(5) Adjustments for certain taxes.--Adjusted financial 
     statement income shall be appropriately adjusted to disregard 
     any Federal income taxes, or income, war profits, or excess 
     profits taxes (within the meaning of section 901) with 
     respect to a foreign country or possession of the United 
     States, which are taken into account on the taxpayer's 
     applicable financial statement. To the extent provided by the 
     Secretary, the preceding sentence shall not apply to income, 
     war profits, or excess profits taxes (within the meaning of 
     section 901) that are imposed by a foreign country or 
     possession of the United States and taken into account on the 
     taxpayer's applicable financial statement if the taxpayer 
     does not choose to have the benefits of subpart A of part III 
     of subchapter N for the taxable year. The Secretary shall 
     prescribe such regulations or other guidance as may be 
     necessary and appropriate to provide for the proper treatment 
     of current and deferred taxes for purposes of this paragraph, 
     including the time at which such taxes are properly taken 
     into account.
       ``(6) Adjustment with respect to disregarded entities.--
     Adjusted financial statement income shall be adjusted to take 
     into account any adjusted financial statement income of a 
     disregarded entity owned by the taxpayer.
       ``(7) Special rule for cooperatives.--In the case of a 
     cooperative to which section 1381 applies, the adjusted 
     financial statement income (determined without regard to this 
     paragraph) shall be reduced by the amounts referred to in 
     section 1382(b) (relating to patronage dividends and per-unit 
     retain allocations) to the extent such amounts were not 
     otherwise taken into account in determining adjusted 
     financial statement income.
       ``(8) Rules for alaska native corporations.--Adjusted 
     financial statement income shall be appropriately adjusted to 
     allow--
       ``(A) cost recovery and depletion attributable to property 
     the basis of which is determined under section 21(c) of the 
     Alaska Native Claims Settlement Act (43 U.S.C. 1620(c)), and
       ``(B) deductions for amounts payable made pursuant to 
     section 7(i) or section 7(j) of such Act (43 U.S.C. 1606(i) 
     and 1606(j)) only at such time as the deductions are allowed 
     for tax purposes.
       ``(9) Amounts attributable to elections for direct payment 
     of certain credits.--Adjusted financial statement income 
     shall be appropriately adjusted to disregard any amount 
     treated as a payment against the tax imposed by subtitle A 
     pursuant to an election under section 6417, to the extent 
     such amount was not otherwise taken into account under 
     paragraph (5).
       ``(10) Consistent treatment of mortgage servicing income of 
     taxpayer other than a regulated investment company.--
       ``(A) In general.--Adjusted financial statement income 
     shall be adjusted so as not to include any item of income in 
     connection with a mortgage servicing contract any earlier 
     than when such income is included in gross income under any 
     other provision of this chapter.
       ``(B) Rules for amounts not representing reasonable 
     compensation.--The Secretary shall provide regulations to 
     prevent the avoidance of taxes imposed by this chapter with 
     respect to amounts not representing reasonable compensation 
     (as determined by the Secretary) with respect to a mortgage 
     servicing contract.
       ``(11) Adjustment with respect to defined benefit 
     pensions.--
       ``(A) In general.--Except as otherwise provided in rules 
     prescribed by the Secretary in regulations or other guidance, 
     adjusted financial statement income shall be--
       ``(i) adjusted to disregard any amount of income, cost, or 
     expense that would otherwise be included on the applicable 
     financial statement in connection with any covered benefit 
     plan,
       ``(ii) increased by any amount of income in connection with 
     any such covered benefit plan that is included in the gross 
     income of the corporation under any other provision of this 
     chapter, and
       ``(iii) reduced by deductions allowed under any other 
     provision of this chapter with respect to any such covered 
     benefit plan.
       ``(B) Covered benefit plan.--For purposes of this 
     paragraph, the term `covered benefit plan' means--
       ``(i) a defined benefit plan (other than a multiemployer 
     plan described in section 414(f)) if the trust which is part 
     of such plan is an employees' trust described in section 
     401(a) which is exempt from tax under section 501(a),
       ``(ii) any qualified foreign plan (as defined in section 
     404A(e)), or
       ``(iii) any other defined benefit plan which provides post-
     employment benefits other than pension benefits.
       ``(12) Tax-exempt entities.--In the case of an organization 
     subject to tax under section 511, adjusted financial 
     statement income shall be appropriately adjusted to only take 
     into account any adjusted financial statement income--
       ``(A) of an unrelated trade or business (as defined in 
     section 513) of such organization, or
       ``(B) derived from debt-financed property (as defined in 
     section 514) to the extent that income from such property is 
     treated as unrelated business taxable income.
       ``(13) Secretarial authority to adjust items.--The 
     Secretary shall issue regulations or other guidance to 
     provide for such adjustments to adjusted financial statement 
     income as the Secretary determines necessary to carry out the 
     purposes of this section, including adjustments--
       ``(A) to prevent the omission or duplication of any item, 
     and
       ``(B) to carry out the principles of part II of subchapter 
     C of this chapter (relating to corporate liquidations), part 
     III of subchapter C of this chapter (relating to corporate 
     organizations and reorganizations), and part II of subchapter 
     K of this chapter (relating to partnership contributions and 
     distributions).
       ``(d) Deduction for Financial Statement Net Operating 
     Loss.--
       ``(1) In general.--Adjusted financial statement income 
     (determined after application of subsection (c) and without 
     regard to this subsection) shall be reduced by an amount 
     equal to the lesser of--
       ``(A) the aggregate amount of financial statement net 
     operating loss carryovers to the taxable year, or
       ``(B) 80 percent of adjusted financial statement income 
     computed without regard to the deduction allowable under this 
     subsection.
       ``(2) Financial statement net operating loss carryover.--A 
     financial statement net operating loss for any taxable year 
     shall be a financial statement net operating loss carryover 
     to each taxable year following the taxable year of the loss. 
     The portion of such loss which shall be carried to subsequent 
     taxable years shall be the amount of such loss remaining (if 
     any) after the application of paragraph (1).
       ``(3) Financial statement net operating loss defined.--For 
     purposes of this subsection, the term `financial statement 
     net operating loss' means the amount of the net loss (if any) 
     set forth on the corporation's applicable financial statement 
     (determined after application of subsection (c) and without 
     regard to this subsection) for taxable years ending after 
     December 31, 2019.
       ``(e) Regulations and Other Guidance.--The Secretary shall 
     provide for such regulations and other guidance as necessary 
     to carry out the purposes of this section, including 
     regulations and other guidance relating to the effect of the 
     rules of this section on partnerships with income taken into 
     account by an applicable corporation.''.
       (2) Clerical amendment.--The table of sections for part VI 
     of subchapter A of chapter 1 is amended by inserting after 
     the item relating to section 56 the following new item:

``Sec. 56A. Adjusted financial statement income.''.
       (c) Corporate AMT Foreign Tax Credit.--Section 59, as 
     amended by this section, is amended by adding at the end the 
     following new subsection:
       ``(l) Corporate AMT Foreign Tax Credit.--
       ``(1) In general.--For purposes of this part, if an 
     applicable corporation chooses to have the benefits of 
     subpart A of part III of subchapter N for any taxable year, 
     the corporate AMT foreign tax credit for the taxable year of 
     the applicable corporation is an amount equal to sum of--
       ``(A) the lesser of--
       ``(i) the aggregate of the applicable corporation's pro 
     rata share (as determined under section 56A(c)(3)) of the 
     amount of income, war profits, and excess profits taxes 
     (within the meaning of section 901) imposed by any foreign 
     country or possession of the United States which are--

       ``(I) taken into account on the applicable financial 
     statement of each controlled foreign corporation with respect 
     to which the applicable corporation is a United States 
     shareholder, and
       ``(II) paid or accrued (for Federal income tax purposes) by 
     each such controlled foreign corporation, or

       ``(ii) the product of the amount of the adjustment under 
     section 56A(c)(3) and the percentage specified in section 
     55(b)(2)(A)(i), and
       ``(B) in the case of an applicable corporation that is a 
     domestic corporation, the amount of income, war profits, and 
     excess profits taxes (within the meaning of section 901) 
     imposed by any foreign country or possession of the United 
     States to the extent such taxes are--

[[Page S3925]]

       ``(i) taken into account on the applicable corporation's 
     applicable financial statement, and
       ``(ii) paid or accrued (for Federal income tax purposes) by 
     the applicable corporation.
       ``(2) Carryover of excess tax paid.--For any taxable year 
     for which an applicable corporation chooses to have the 
     benefits of subpart A of part III of subchapter N, the excess 
     of the amount described in paragraph (1)(A)(i) over the 
     amount described in paragraph (1)(A)(ii) shall increase the 
     amount described in paragraph (1)(A)(i) in any of the first 5 
     succeeding taxable years to the extent not taken into account 
     in a prior taxable year.
       ``(3) Regulations or other guidance.--The Secretary shall 
     provide for such regulations or other guidance as is 
     necessary to carry out the purposes of this subsection.''.
       (d) Treatment of General Business Credit.--Section 
     38(c)(6)(E) is amended to read as follows:
       ``(E) Corporations.--In the case of a corporation--
       ``(i) the first sentence of paragraph (1) shall be applied 
     by substituting `25 percent of the taxpayer's net income tax 
     as exceeds $25,000' for `the greater of' and all that 
     follows,
       ``(ii) paragraph (2)(A) shall be applied without regard to 
     clause (ii)(I) thereof, and
       ``(iii) paragraph (4)(A) shall be applied without regard to 
     clause (ii)(I) thereof.''.
       (e) Credit for Prior Year Minimum Tax Liability.--
       (1) In general.--Section 53(e) is amended to read as 
     follows:
       ``(e) Application to Applicable Corporations.--In the case 
     of a corporation--
       ``(1) subsection (b)(1) shall be applied by substituting 
     `the net minimum tax for all prior taxable years beginning 
     after 2022' for `the adjusted net minimum tax imposed for all 
     prior taxable years beginning after 1986', and
       ``(2) the amount determined under subsection (c)(1) shall 
     be increased by the amount of tax imposed under section 59A 
     for the taxable year.''.
       (2) Conforming amendments.--Section 53(d) is amended--
       (A) in paragraph (2), by striking ``, except that in the 
     case'' and all that follows through ``treated as zero'', and
       (B) by striking paragraph (3).
       (f) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2022.

             PART 2--CLOSING THE CARRIED INTEREST LOOPHOLE

     SEC. 10201. MODIFICATION OF RULES FOR PARTNERSHIP INTERESTS 
                   HELD IN CONNECTION WITH THE PERFORMANCE OF 
                   SERVICES.

       (a) In General.--Section 1061 is amended by striking 
     subsections (a) and (b) and inserting the following new 
     subsections:
       ``(a) In General.--If one or more applicable partnership 
     interests are held by a taxpayer at any time during the 
     taxable year, the taxpayer's net applicable partnership gain 
     for such taxable year shall be treated as short-term capital 
     gain.
       ``(b) Net Applicable Partnership Gain.--For purposes of 
     this section--
       ``(1) In general.--The term `net applicable partnership 
     gain' means--
       ``(A) the taxpayer's net long-term capital gain determined 
     by only taking into account gains and losses with respect to 
     one or more applicable partnership interests described in 
     subsection (a), and
       ``(B) any other amounts which are--
       ``(i) includible in the gross income of the taxpayer with 
     respect to one or more such applicable partnership interests, 
     and
       ``(ii) treated as capital gain or subject to tax at the 
     rate applicable to capital gain.
       ``(2) Holding period exception.--
       ``(A) In general.--Net applicable partnership gain shall be 
     determined without regard to any amount which is realized 
     after the date that is 5 years after the latest of:
       ``(i) The date on which the taxpayer acquired substantially 
     all of the applicable partnership interest with respect to 
     which the amount is realized.
       ``(ii) The date on which the partnership in which such 
     applicable partnership interest is held acquired 
     substantially all of the assets held by such partnership.
       ``(iii) If the partnership described in clause (i) owns, 
     directly or indirectly, interests in one or more other 
     partnerships, the dates determined by applying rules similar 
     to the rules in clauses (i) and (ii) in the case of each such 
     other partnership.
       ``(B) Shorter holding period in certain circumstances.--
     Subparagraph (A) shall be applied by substituting `3 years' 
     for `5 years' in the case of--
       ``(i) a taxpayer (other than a trust or estate) with an 
     adjusted gross income (determined without regard to sections 
     911, 931 and 933) of less than $400,000, and
       ``(ii) any income with respect to any applicable 
     partnership interest that is attributable to a real property 
     trade or business within the meaning of section 469(c)(7)(C).
       ``(iii) The Secretary is directed to provide guidance 
     regarding determination of the amount described in subsection 
     (a) as applied in paragraph (1) hereof, and any necessary and 
     appropriate reporting by any partnership to carry out the 
     purposes of this section. --
       ``(3) Section 83 to not apply.--This section shall be 
     applied without regard to section 83 and any election in 
     effect under section 83(b).
       ``(4) Special rule.--To the extent provided by the 
     Secretary, subsection (a) shall not apply to income or gain 
     attributable to any asset not held for portfolio investment 
     on behalf of third party investors.''.
       (b) Modifications Related to Definition of Applicable 
     Partnership Interest.--Section 1061(c) is amended--
       (1) in paragraph (1), by striking ``to such other entity'' 
     and inserting ``with respect to a trade or business that is 
     not an applicable trade or business'',
       (2) in paragraph (3), by striking ``an interest in a 
     partnership to the extent of the partnership's proportionate 
     interest in any of the foregoing'' and inserting ``except as 
     otherwise provided by the Secretary, an interest in a 
     partnership if such partnership has a direct or indirect 
     interest in any of the foregoing'', and
       (3) in paragraph (4)--
       (A) by striking ``The term'' and inserting ``Except as 
     otherwise provided by the Secretary, the term'', and
       (B) in subparagraph (A), by striking ``corporation'' and 
     inserting ``C corporation''.
       (c) Recognition of Gain on Transfers of Applicable 
     Partnership Interests to Unrelated Parties.--Section 1061(d) 
     is amended to read as follows:
       ``(d) Transfer of Applicable Partnership Interest.--If a 
     taxpayer transfers any applicable partnership interest, gain 
     shall be recognized notwithstanding any other provision of 
     this subtitle.''.
       (d) Regulations.--Section 1061(e) is amended by striking 
     the period at the end and inserting the following: ``, 
     including regulations or other guidance to--
       ``(1) to prevent the avoidance of the purposes of this 
     section, including through the distribution of property by a 
     partnership and through carry waivers, and
       ``(2) to provide for the application of this section to 
     financial instruments, contracts or interests in entities 
     other than partnerships to the extent necessary or 
     appropriate to carry out the purposes of this section.''.
       (e) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2022.

  PART 3--FUNDING THE INTERNAL REVENUE SERVICE AND IMPROVING TAXPAYER 
                               COMPLIANCE

     SEC. 10301. ENHANCEMENT OF INTERNAL REVENUE SERVICE 
                   RESOURCES.

       (a) Appropriations.--
       (1) In general.--The following sums are appropriated, out 
     of any money in the Treasury not otherwise appropriated, for 
     the fiscal year ending September 30, 2022:
       (A) Internal revenue service.--
       (i) In general.--

       (I) Taxpayer services.--For necessary expenses of the 
     Internal Revenue Service to provide taxpayer services, 
     including pre-filing assistance and education, filing and 
     account services, taxpayer advocacy services, and other 
     services as authorized by 5 U.S.C. 3109, at such rates as may 
     be determined by the Commissioner, $3,181,500,000, to remain 
     available until September 30, 2031: Provided, That these 
     amounts shall be in addition to amounts otherwise available 
     for such purposes.
       (II) Enforcement.--For necessary expenses for tax 
     enforcement activities of the Internal Revenue Service to 
     determine and collect owed taxes, to provide legal and 
     litigation support, to conduct criminal investigations 
     (including investigative technology), to provide digital 
     asset monitoring and compliance activities, to enforce 
     criminal statutes related to violations of internal revenue 
     laws and other financial crimes, to purchase and hire 
     passenger motor vehicles (31 U.S.C. 1343(b)), and to provide 
     other services as authorized by 5 U.S.C. 3109, at such rates 
     as may be determined by the Commissioner, $45,637,400,000, to 
     remain available until September 30, 2031: Provided, That 
     these amounts shall be in addition to amounts otherwise 
     available for such purposes.
       (III) Operations support.--For necessary expenses of the 
     Internal Revenue Service to support taxpayer services and 
     enforcement programs, including rent payments; facilities 
     services; printing; postage; physical security; headquarters 
     and other IRS-wide administration activities; research and 
     statistics of income; telecommunications; information 
     technology development, enhancement, operations, maintenance, 
     and security; the hire of passenger motor vehicles (31 U.S.C. 
     1343(b)); the operations of the Internal Revenue Service 
     Oversight Board; and other services as authorized by 5 U.S.C. 
     3109, at such rates as may be determined by the Commissioner, 
     $25,326,400,000, to remain available until September 30, 
     2031: Provided, That these amounts shall be in addition to 
     amounts otherwise available for such purposes.
       (IV) Business systems modernization.--For necessary 
     expenses of the Internal Revenue Service's business systems 
     modernization program, including development of callback 
     technology and other technology to provide a more 
     personalized customer service but not including the operation 
     and maintenance of legacy systems, $4,750,700,000, to remain 
     available until September 30, 2031: Provided, That these 
     amounts shall be in addition to amounts otherwise available 
     for such purposes.

       (ii) Task force to design an irs-run free ``direct efile'' 
     tax return system.--For necessary expenses of the Internal 
     Revenue Service to deliver to Congress, within nine months 
     following the date of the enactment of this Act, a report on 
     (I) the cost (including options for differential coverage 
     based on taxpayer adjusted gross income and return

[[Page S3926]]

     complexity) of developing and running a free direct efile tax 
     return system, including costs to build and administer each 
     release, with a focus on multi-lingual and mobile-friendly 
     features and safeguards for taxpayer data; (II) taxpayer 
     opinions, expectations, and level of trust, based on surveys, 
     for such a free direct efile system; and (III) the opinions 
     of an independent third-party on the overall feasibility, 
     approach, schedule, cost, organizational design, and Internal 
     Revenue Service capacity to deliver such a direct efile tax 
     return system, $15,000,000, to remain available until 
     September 30, 2023: Provided, That these amounts shall be in 
     addition to amounts otherwise available for such purposes.
       (B) Treasury inspector general for tax administration.--For 
     necessary expenses of the Treasury Inspector General for Tax 
     Administration in carrying out the Inspector General Act of 
     1978, as amended, including purchase and hire of passenger 
     motor vehicles (31 U.S.C. 1343(b)); and services authorized 
     by 5 U.S.C. 3109, at such rates as may be determined by the 
     Inspector General for Tax Administration, $403,000,000, to 
     remain available until September 30, 2031: Provided, That 
     these amounts shall be in addition to amounts otherwise 
     available for such purposes.
       (C) Office of tax policy.--For necessary expenses of the 
     Office of Tax Policy of the Department of the Treasury to 
     carry out functions related to promulgating regulations under 
     the Internal Revenue Code of 1986, $104,533,803, to remain 
     available until September 30, 2031: Provided, That these 
     amounts shall be in addition to amounts otherwise available 
     for such purposes.
       (D) United states tax court.--For necessary expenses of the 
     United States Tax Court, including contract reporting and 
     other services as authorized by 5 U.S.C. 3109; $153,000,000, 
     to remain available until September 30, 2031: Provided, That 
     these amounts shall be in addition to amounts otherwise 
     available for such purposes.
       (E) Treasury departmental offices.--For necessary expenses 
     of the Departmental Offices of the Department of the Treasury 
     to provide for oversight and implementation support for 
     actions by the Internal Revenue Service to implement this Act 
     and the amendments made by this Act, $50,000,000, to remain 
     available until September 30, 2031: Provided, That these 
     amounts shall be in addition to amounts otherwise available 
     for such purposes.
       (2) Multi-year operational plan.--
       (A) In general.--Not later than 6 months after the date of 
     the enactment of this Act, the Commissioner of Internal 
     Revenue shall submit to Congress a plan detailing how the 
     funds appropriated under paragraph (1)(A)(i) will be spent 
     over the ten-year period ending with fiscal year 2031.
       (B) Quarterly updates.--
       (i) In general.--Not later than the last day of each 
     calendar quarter beginning during the applicable period, the 
     Commissioner of Internal Revenue shall submit to Congress a 
     report on the plan established under subparagraph (A), 
     including--

       (I) any updates to the plan;
       (II) progress made in implementing the plan; and
       (III) any changes in circumstances or challenges in 
     implementing the plan.

       (ii) Applicable period.--For purposes of clause (i), the 
     applicable period is the period beginning 1 year after the 
     date the report under subparagraph (A) is due and ending on 
     September 30, 2031.
       (C) Reduction in appropriation.--
       (i) In general.--In the case of any failure to submit a 
     plan required under subparagraph (A) or a report required 
     under subparagraph (B) by the required date, the amounts made 
     available under paragraph (1)(A)(i) shall be reduced by 
     $100,000 for each day after such required date that report 
     has not been submitted to Congress.
       (ii) Required date.--For purposes of clause (i), the 
     required date is the date that is 60 days after the date the 
     plan or report is required to be submitted under subparagraph 
     (A) or (B), as the case may be.
       (3) No tax increases on certain taxpayers.--Nothing in this 
     subsection is intended to increase taxes on any taxpayer with 
     a taxable income below $400,000.
       (b) Personnel Flexibilities.--The Secretary of the Treasury 
     (or the Secretary's delegate) may use the funds made 
     available under subsection (a)(1)(A), subject to such 
     policies as the Secretary (or the Secretary's delegate) may 
     establish, to take such personnel actions as the Secretary 
     (or the Secretary's delegate) determines necessary to 
     administer the Internal Revenue Code of 1986, including--
       (1) utilizing direct hire authority to recruit and appoint 
     qualified applicants, without regard to any notice or 
     preference requirements, directly to positions in the 
     competitive service;
       (2) in addition to the authority under section 7812(1) of 
     the Internal Revenue Code of 1986, appointing not more than 
     200 individuals to positions in the Internal Revenue Service 
     under streamlined critical pay authority, except that--
       (A) the authority to offer streamlined critical pay under 
     this paragraph shall expire on September 30, 2031; and
       (B) the positions for which streamlined critical pay is 
     authorized under this paragraph may include positions 
     critical to the purposes described in subclauses (I), (II), 
     and (III) of subsection (a)(1)(A)(i); and
       (3) appointing not more than 300 individuals to positions 
     in the Internal Revenue Service for which--
       (A) the rate of basic pay may be established by the 
     Secretary of the Treasury (or the Secretary's delegate) at a 
     rate that does not exceed the salary set in accordance with 
     section 104 of title 3, United States Code; and
       (B) the total annual compensation paid to an employee in 
     such a position, including allowances, differentials, 
     bonuses, awards, and similar cash payments, may not exceed 
     the maximum amount of total annual compensation payable at 
     the salary set in accordance with section 104 of title 3, 
     United States Code.

              Subtitle B--Prescription Drug Pricing Reform

         PART 1--LOWERING PRICES THROUGH DRUG PRICE NEGOTIATION

     SEC. 11001. PROVIDING FOR LOWER PRICES FOR CERTAIN HIGH-
                   PRICED SINGLE SOURCE DRUGS.

       (a) Program To Lower Prices for Certain High-Priced Single 
     Source Drugs.--Title XI of the Social Security Act is amended 
     by adding after section 1184 (42 U.S.C. 1320e-3) the 
     following new part:

 ``PART E--PRICE NEGOTIATION PROGRAM TO LOWER PRICES FOR CERTAIN HIGH-
                       PRICED SINGLE SOURCE DRUGS

     ``SEC. 1191. ESTABLISHMENT OF PROGRAM.

       ``(a) In General.--The Secretary shall establish a Drug 
     Price Negotiation Program (in this part referred to as the 
     `program'). Under the program, with respect to each price 
     applicability period, the Secretary shall--
       ``(1) publish a list of selected drugs in accordance with 
     section 1192;
       ``(2) enter into agreements with manufacturers of selected 
     drugs with respect to such period, in accordance with section 
     1193;
       ``(3) negotiate and, if applicable, renegotiate maximum 
     fair prices for such selected drugs, in accordance with 
     section 1194;
       ``(4) carry out the publication and administrative duties 
     and compliance monitoring in accordance with sections 1195 
     and 1196.
       ``(b) Definitions Relating to Timing.--For purposes of this 
     part:
       ``(1) Initial price applicability year.--The term `initial 
     price applicability year' means a year (beginning with 2026).
       ``(2) Price applicability period.--The term `price 
     applicability period' means, with respect to a qualifying 
     single source drug, the period beginning with the first 
     initial price applicability year with respect to which such 
     drug is a selected drug and ending with the last year during 
     which the drug is a selected drug.
       ``(3) Selected drug publication date.--The term `selected 
     drug publication date' means, with respect to each initial 
     price applicability year, February 1 of the year that begins 
     2 years prior to such year.
       ``(4) Negotiation period.--The term `negotiation period' 
     means, with respect to an initial price applicability year 
     with respect to a selected drug, the period--
       ``(A) beginning on the sooner of--
       ``(i) the date on which the manufacturer of the drug and 
     the Secretary enter into an agreement under section 1193 with 
     respect to such drug; or
       ``(ii) February 28 following the selected drug publication 
     date with respect to such selected drug; and
       ``(B) ending on November 1 of the year that begins 2 years 
     prior to the initial price applicability year.
       ``(c) Other Definitions.--For purposes of this part:
       ``(1) Maximum fair price eligible individual.--The term 
     `maximum fair price eligible individual' means, with respect 
     to a selected drug--
       ``(A) in the case such drug is dispensed to the individual 
     at a pharmacy, by a mail order service, or by another 
     dispenser, an individual who is enrolled under a prescription 
     drug plan under part D of title XVIII or an MA-PD plan under 
     part C of such title if coverage is provided under such plan 
     for such selected drug; and
       ``(B) in the case such drug is furnished or administered to 
     the individual by a hospital, physician, or other provider of 
     services or supplier, an individual who is enrolled under 
     part B of title XVIII, including an individual who is 
     enrolled under an MA plan under part C of such title, if such 
     selected drug is covered under such part.
       ``(2) Maximum fair price.--The term `maximum fair price' 
     means, with respect to a year during a price applicability 
     period and with respect to a selected drug (as defined in 
     section 1192(c)) with respect to such period, the price 
     negotiated pursuant to section 1194, and updated pursuant to 
     section 1195(b), as applicable, for such drug and year.
       ``(3) Reference product.--The term `reference product' has 
     the meaning given such term in section 351(i) of the Public 
     Health Service Act.
       ``(4) Unit.--The term `unit' means, with respect to a drug 
     or biological product, the lowest identifiable amount (such 
     as a capsule or tablet, milligram of molecules, or grams) of 
     the drug or biological product that is dispensed or 
     furnished. The determination of a unit, with respect to a 
     drug or biological product, pursuant to this paragraph shall 
     not be subject to administrative or judicial review.
       ``(5) Total expenditures.--The term `total expenditures' 
     includes, in the case of expenditures with respect to part D 
     of title XVIII, the total gross covered prescription drug 
     costs (as defined in section 1860D-15(b)(3)).

[[Page S3927]]

     The term `total expenditures' excludes, in the case of 
     expenditures with respect to part B of such title, 
     expenditures for a drug or biological product that are 
     bundled or packaged into the payment for another service.
       ``(d) Timing for Initial Price Applicability Year 2026.--
     Notwithstanding the provisions of this part, in the case of 
     initial price applicability year 2026, the following rules 
     shall apply for purposes of implementing the program:
       ``(1) Subsection (b)(3) shall be applied by substituting 
     `September 1, 2023' for `, with respect to each initial price 
     applicability year, February 1 of the year that begins 2 
     years prior to such year'.
       ``(2) Subsection (b)(4) shall be applied--
       ``(A) in subparagraph (A)(ii), by substituting `October 1, 
     2023' for `February 28 following the selected drug 
     publication date with respect to such selected drug'; and
       ``(B) in subparagraph (B), by substituting `August 1, 2024' 
     for `November 1 of the year that begins 2 years prior to the 
     initial price applicability year'.
       ``(3) Section 1192 shall be applied--
       ``(A) in subsection (b)(1)(A), by substituting `during the 
     period beginning on June 1, 2022, and ending on May 31, 2023' 
     for `during the most recent period of 12 months prior to the 
     selected drug publication date (but ending not later than 
     October 31 of the year prior to the year of such drug 
     publication date), with respect to such year';
       ``(B) in subsection (d)(1)(A), by substituting `during the 
     period beginning on June 1, 2022, and ending on May 31, 2023' 
     for `during the most recent period for which data are 
     available of at least 12 months prior to the selected drug 
     publication date (but ending no later than October 31 of the 
     year prior to the year of such drug publication date), with 
     respect to such year'; and
       ``(C) in subsection (e)(3)(B), by substituting `during the 
     period beginning on June 1, 2022, and ending on May 31, 2023' 
     for `during the most recent period for which data are 
     available of at least 12 months prior to the selected drug 
     publication date (but ending no later than October 31 of the 
     year prior to the year of such drug publication date), with 
     respect to such year'.
       ``(4) Section 1193(a) shall be applied by substituting 
     `October 1, 2023' for `February 28 following the selected 
     drug publication date with respect to such selected drug '.
       ``(5) Section 1194(b)(2) shall be applied--
       ``(A) in subparagraph (A), by substituting `October 2, 
     2023' for `March 1 of the year of the selected drug 
     publication date, with respect to the selected drug';
       ``(B) in subparagraph (B), by substituting `February 1, 
     2024' for `the June 1 following the selected drug publication 
     date'; and
       ``(C) in subparagraph (E), by substituting `August 1, 2024' 
     for `the first day of November following the selected drug 
     publication date, with respect to the initial price 
     applicability year '.
       ``(6) Section 1195(a) shall be applied--
       ``(A) in paragraph (1), by substituting `September 1, 2024' 
     for `November 30 of the year that is 2 years prior to such 
     initial price applicability year'; and
       ``(B) in paragraph (2), by substituting `March 1, 2025' for 
     `March 1 of the year prior to such initial price 
     applicability year'.

     ``SEC. 1192. SELECTION OF NEGOTIATION-ELIGIBLE DRUGS AS 
                   SELECTED DRUGS.

       ``(a) In General.--Not later than the selected drug 
     publication date with respect to an initial price 
     applicability year, in accordance with subsection (b), the 
     Secretary shall select and publish a list of--
       ``(1) with respect to the initial price applicability year 
     2026, 10 negotiation-eligible drugs described in subparagraph 
     (A) of subsection (d)(1), but not subparagraph (B) of such 
     subsection, with respect to such year (or, all (if such 
     number is less than 10) such negotiation-eligible drugs with 
     respect to such year);
       ``(2) with respect to the initial price applicability year 
     2027, 15 negotiation-eligible drugs described in subparagraph 
     (A) of subsection (d)(1), but not subparagraph (B) of such 
     subsection, with respect to such year (or, all (if such 
     number is less than 15) such negotiation-eligible drugs with 
     respect to such year);
       ``(3) with respect to the initial price applicability year 
     2028, 15 negotiation-eligible drugs described in subparagraph 
     (A) or (B) of subsection (d)(1) with respect to such year 
     (or, all (if such number is less than 15) such negotiation-
     eligible drugs with respect to such year); and
       ``(4) with respect to the initial price applicability year 
     2029 or a subsequent year, 20 negotiation-eligible drugs 
     described in subparagraph (A) or (B) of subsection (d)(1), 
     with respect to such year (or, all (if such number is less 
     than 20) such negotiation-eligible drugs with respect to such 
     year); and
     Subject to subsection (c)(2) and section 1194(f)(5), each 
     drug published on the list pursuant to the previous sentence 
     shall be subject to the negotiation process under section 
     1194 for the negotiation period with respect to such initial 
     price applicability year (and the renegotiation process under 
     such section as applicable for any subsequent year during the 
     applicable price applicability period).
       ``(b) Selection of Drugs.--
       ``(1) In general.--In carrying out subsection (a)(1), 
     subject to paragraph (2), the Secretary shall, with respect 
     to an initial price applicability year, do the following:
       ``(A) Rank negotiation-eligible drugs described in 
     subsection (d)(1) according to the total expenditures for 
     such drugs under parts B and D of title XVIII, as determined 
     by the Secretary, during the most recent period of 12 months 
     prior to the selected drug publication date (but ending not 
     later than October 31 of the year prior to the year of such 
     drug publication date), with respect to such year, for which 
     data are available, with the negotiation-eligible drugs with 
     the highest total expenditures being ranked the highest.
       ``(B) Select from such ranked drugs with respect to such 
     year the negotiation-eligible drugs with the highest such 
     rankings.
       ``(2) High spend part d drugs for 2026 and 2027.--With 
     respect to the initial price applicability year 2026 and with 
     respect to the initial price applicability year 2027, the 
     Secretary shall apply paragraph (1) as if the reference to 
     `negotiation-eligible drugs described in subsection (d)(1)' 
     were a reference to `negotiation-eligible drugs described in 
     subsection (d)(1)(A)' and as if the reference to `total 
     expenditures for such drugs under parts B and D of title 
     XVIII' were a reference to `total expenditures for such drugs 
     under part D of title XVIII'.
       ``(c) Selected Drug.--
       ``(1) In general.--For purposes of this part, in accordance 
     with subsection (e)(2) and subject to paragraph (2), each 
     negotiation-eligible drug included on the list published 
     under subsection (a) with respect to an initial price 
     applicability year shall be referred to as a `selected drug' 
     with respect to such year and each subsequent year beginning 
     before the first year that begins at least 9 months after the 
     date on which the Secretary determines at least one drug or 
     biological product--
       ``(A) is approved or licensed (as applicable)--
       ``(i) under section 505(j) of the Federal Food, Drug, and 
     Cosmetic Act using such drug as the listed drug; or
       ``(ii) under section 351(k) of the Public Health Service 
     Act using such drug as the reference product; and
       ``(B) is marketed pursuant to such approval or licensure.
       ``(2) Clarification.--A negotiation-eligible drug--
       ``(A) that is included on the list published under 
     subsection (a) with respect to an initial price applicability 
     year; and
       ``(B) for which the Secretary makes a determination 
     described in paragraph (1) before or during the negotiation 
     period with respect to such initial price applicability year;
     shall not be subject to the negotiation process under section 
     1194 with respect to such negotiation period and shall 
     continue to be considered a selected drug under this part 
     with respect to the number of negotiation-eligible drugs 
     published on the list under subsection (a) with respect to 
     such initial price applicability year.
       ``(d) Negotiation-Eligible Drug.--
       ``(1) In general.--For purposes of this part, subject to 
     paragraph (2), the term `negotiation-eligible drug' means, 
     with respect to the selected drug publication date with 
     respect to an initial price applicability year, a qualifying 
     single source drug, as defined in subsection (e), that is 
     described in either of the following subparagraphs (or, with 
     respect to the initial price applicability year 2026 or 2027, 
     that is described in subparagraph (A)):
       ``(A) Part d high spend drugs.--The qualifying single 
     source drug is, determined in accordance with subsection 
     (e)(2), among the 50 qualifying single source drugs with the 
     highest total expenditures under part D of title XVIII, as 
     determined by the Secretary in accordance with paragraph (3), 
     during the most recent period for which data are available of 
     at least 12 months prior to the selected drug publication 
     date (but ending no later than October 31 of the year prior 
     to the year of such drug publication date), with respect to 
     such year.
       ``(B) Part b high spend drugs.--The qualifying single 
     source drug is, determined in accordance with subsection 
     (e)(2), among the 50 qualifying single source drugs with the 
     highest total expenditures under part B of title XVIII, as 
     determined by the Secretary in accordance with paragraph (3), 
     during such most recent period, as described in clause (i).
       ``(2) Exception for small biotech drugs.--
       ``(A) In general.--Subject to subparagraph (C), the term 
     `negotiation-eligible drug' shall not include, with respect 
     to the initial price applicability years 2026, 2027, and 
     2028, a qualifying single source drug that meets either of 
     the following:
       ``(i) Part d drugs.--The total expenditures for the 
     qualifying single source drug under part D of title XVIII, as 
     determined by the Secretary in accordance with paragraph 
     (3)(B), during 2021--

       ``(I) are equal to or less than 1 percent of the total 
     expenditures under such part D, as so determined, for all 
     covered part D drugs (as defined in section 1860D-2(e)) 
     during such year; and
       ``(II) are equal to at least 80 percent of the total 
     expenditures under such part D, as so determined, for all 
     covered part D drugs for which the manufacturer of the drug 
     has an agreement in effect under section 1860D-14A during 
     such year.

       ``(ii) Part b drugs.--The total expenditures for the 
     qualifying single source drug under part B of title XVIII, as 
     determined by the Secretary in accordance with paragraph 
     (3)(B), during 2021--

       ``(I) are equal to or less than 1 percent of the total 
     expenditures under such part B, as so determined, for all 
     qualifying single source drugs covered under such part B 
     during such year; and

[[Page S3928]]

       ``(II) are equal to at least 80 percent of the total 
     expenditures under such part B, as so determined, for all 
     qualifying single source drugs of the manufacturer that are 
     covered under such part B during such year.

       ``(B) Clarifications relating to manufacturers.--
       ``(i) Aggregation rule.--All persons treated as a single 
     employer under subsection (a) or (b) of section 52 of the 
     Internal Revenue Code of 1986 shall be treated as one 
     manufacturer for purposes of this paragraph.
       ``(ii) Limitation.--A drug shall not be considered to be a 
     qualifying single source drug described in clause (i) or (ii) 
     of subparagraph (A) if the manufacturer of such drug is 
     acquired after 2021 by another manufacturer that does not 
     meet the definition of a specified manufacturer under section 
     1860D-14C(g)(4)(B)(ii), effective at the beginning of the 
     plan year immediately following such acquisition or, in the 
     case of an acquisition before 2025, effective January 1, 
     2025.
       ``(C) Drugs not included as small biotech drugs.--The 
     following shall not be considered a qualifying single source 
     drug described in subparagraph (A):
       ``(i) A vaccine that is licensed under section 351 of the 
     Public Health Service Act and is marketed pursuant to such 
     section.
       ``(ii) A new formulation, such as an extended release 
     formulation, of a qualifying single source drug.
       ``(3) Clarifications and determinations.--
       ``(A) Previously selected drugs and small biotech drugs 
     excluded.--In applying subparagraphs (A) and (B) of paragraph 
     (1), the Secretary shall not consider or count--
       ``(i) drugs that are already selected drugs; and
       ``(ii) for initial price applicability years 2026, 2027, 
     and 2028, qualifying single source drugs described in 
     paragraph (2)(A).
       ``(B) Use of data.--In determining whether a qualifying 
     single source drug satisfies any of the criteria described in 
     paragraph (1) or (2), the Secretary shall use data that is 
     aggregated across dosage forms and strengths of the drug, 
     including new formulations of the drug, such as an extended 
     release formulation, and not based on the specific 
     formulation or package size or package type of the drug.
       ``(e) Qualifying Single Source Drug.--
       ``(1) In general.--For purposes of this part, the term 
     `qualifying single source drug' means, with respect to an 
     initial price applicability year, subject to paragraphs (2) 
     and (3), a covered part D drug (as defined in section 1860D-
     2(e)) that is described in any of the following or a drug or 
     biological product covered under part B of title XVIII that 
     is described in any of the following:
       ``(A) Drug products.--A drug--
       ``(i) that is approved under section 505(c) of the Federal 
     Food, Drug, and Cosmetic Act and is marketed pursuant to such 
     approval;
       ``(ii) for which, as of the selected drug publication date 
     with respect to such initial price applicability year, at 
     least 7 years will have elapsed since the date of such 
     approval; and
       ``(iii) that is not the listed drug for any drug that is 
     approved and marketed under section 505(j) of such Act.
       ``(B) Biological products.--A biological product--
       ``(i) that is licensed under section 351(a) of the Public 
     Health Service Act and is marketed under section 351 of such 
     Act;
       ``(ii) for which, as of the selected drug publication date 
     with respect to such initial price applicability year, at 
     least 11 years will have elapsed since the date of such 
     licensure; and
       ``(iii) that is not the reference product for any 
     biological product that is licensed and marketed under 
     section 351(k) of such Act.
       ``(2) Treatment of authorized generic drugs.--
       ``(A) In general.--In the case of a qualifying single 
     source drug described in subparagraph (A) or (B) of paragraph 
     (1) that is the listed drug (as such term is used in section 
     505(j) of the Federal Food, Drug, and Cosmetic Act) or a 
     product described in clause (ii) of subparagraph (B), with 
     respect to an authorized generic drug, in applying the 
     provisions of this part, such authorized generic drug and 
     such listed drug or such product shall be treated as the same 
     qualifying single source drug.
       ``(B) Authorized generic drug defined.--For purposes of 
     this paragraph, the term `authorized generic drug' means--
       ``(i) in the case of a drug, an authorized generic drug (as 
     such term is defined in section 505(t)(3) of the Federal 
     Food, Drug, and Cosmetic Act); and
       ``(ii) in the case of a biological product, a product 
     that--

       ``(I) has been licensed under section 351(a) of such Act; 
     and
       ``(II) is marketed, sold, or distributed directly or 
     indirectly to retail class of trade under a different 
     labeling, packaging (other than repackaging as the reference 
     product in blister packs, unit doses, or similar packaging 
     for use in institutions), product code, labeler code, trade 
     name, or trade mark than the reference product.

       ``(3) Exclusions.--In this part, the term `qualifying 
     single source drug' does not include any of the following:
       ``(A) Certain orphan drugs.--A drug that is designated as a 
     drug for only one rare disease or condition under section 526 
     of the Federal Food, Drug, and Cosmetic Act and for which the 
     only approved indication (or indications) is for such disease 
     or condition.
       ``(B) Low spend medicare drugs.--A drug or biological 
     product with respect to which the total expenditures under 
     parts B and D of title XVIII, as determined by the Secretary, 
     during the most recent period for which data are available of 
     at least 12 months prior to the selected drug publication 
     date (but ending no later than October 31 of the year prior 
     to the year of such drug publication date), with respect to 
     such year, is less than--
       ``(i) with respect to 2021, $200,000,000; or
       ``(ii) with respect to a subsequent year, the dollar amount 
     specified in this subparagraph for the previous year 
     increased by the annual percentage increase in the consumer 
     price index for all urban consumers (all items; United States 
     city average) for the 12-month period ending with September 
     of such previous year.
       ``(C) Plasma-derived products.--A biological product that 
     is derived from human whole blood or plasma.
       ``(f) No Administrative or Judicial Review.--The 
     determination of negotiation-eligible drugs under subsection 
     (d), the determination of qualifying single source drugs 
     under subsection (e), and the selection of drugs under this 
     section are not subject to administrative or judicial review.

     ``SEC. 1193. MANUFACTURER AGREEMENTS.

       ``(a) In General.--For purposes of section 1191(a)(2), the 
     Secretary shall enter into agreements with manufacturers of 
     selected drugs with respect to a price applicability period, 
     by not later than February 28 following the selected drug 
     publication date with respect to such selected drug, under 
     which--
       ``(1) during the negotiation period for the initial price 
     applicability year for the selected drug, the Secretary and 
     the manufacturer, in accordance with section 1194, negotiate 
     to determine (and, by not later than the last date of such 
     period, agree to) a maximum fair price for such selected drug 
     of the manufacturer in order for the manufacturer to provide 
     access to such price--
       ``(A) to maximum fair price eligible individuals who with 
     respect to such drug are described in subparagraph (A) of 
     section 1191(c)(1) and are dispensed such drug (and to 
     pharmacies, mail order services, and other dispensers, with 
     respect to such maximum fair price eligible individuals who 
     are dispensed such drugs) during, subject to paragraph (2), 
     the price applicability period; and
       ``(B) to hospitals, physicians, and other providers of 
     services and suppliers with respect to maximum fair price 
     eligible individuals who with respect to such drug are 
     described in subparagraph (B) of such section and are 
     furnished or administered such drug during, subject to 
     paragraph (2), the price applicability period;
       ``(2) the Secretary and the manufacturer shall, in 
     accordance with section 1194, renegotiate (and, by not later 
     than the last date of such period, agree to) the maximum fair 
     price for such drug, in order for the manufacturer to provide 
     access to such maximum fair price (as so renegotiated)--
       ``(A) to maximum fair price eligible individuals who with 
     respect to such drug are described in subparagraph (A) of 
     section 1191(c)(1) and are dispensed such drug (and to 
     pharmacies, mail order services, and other dispensers, with 
     respect to such maximum fair price eligible individuals who 
     are dispensed such drugs) during any year during the price 
     applicability period (beginning after such renegotiation) 
     with respect to such selected drug; and
       ``(B) to hospitals, physicians, and other providers of 
     services and suppliers with respect to maximum fair price 
     eligible individuals who with respect to such drug are 
     described in subparagraph (B) of such section and are 
     furnished or administered such drug during any year described 
     in subparagraph (A);
       ``(3) subject to subsection (d), access to the maximum fair 
     price (including as renegotiated pursuant to paragraph (2)), 
     with respect to such a selected drug, shall be provided by 
     the manufacturer to--
       ``(A) maximum fair price eligible individuals, who with 
     respect to such drug are described in subparagraph (A) of 
     section 1191(c)(1), at the pharmacy, mail order service, or 
     other dispenser at the point-of-sale of such drug (and shall 
     be provided by the manufacturer to the pharmacy, mail order 
     service, or other dispenser, with respect to such maximum 
     fair price eligible individuals who are dispensed such 
     drugs), as described in paragraph (1)(A) or (2)(A), as 
     applicable; and
       ``(B) hospitals, physicians, and other providers of 
     services and suppliers with respect to maximum fair price 
     eligible individuals who with respect to such drug are 
     described in subparagraph (B) of such section and are 
     furnished or administered such drug, as described in 
     paragraph (1)(B) or (2)(B), as applicable;
       ``(4) the manufacturer submits to the Secretary, in a form 
     and manner specified by the Secretary, for the negotiation 
     period for the price applicability period (and, if 
     applicable, before any period of renegotiation pursuant to 
     section 1194(f)) with respect to such drug--
       ``(A) information on the non-Federal average manufacturer 
     price (as defined in section 8126(h)(5) of title 38, United 
     States Code) for the drug for the applicable year or period; 
     and
       ``(B) information that the Secretary requires to carry out 
     the negotiation (or renegotiation process) under this part; 
     and

[[Page S3929]]

       ``(5) the manufacturer complies with requirements 
     determined by the Secretary to be necessary for purposes of 
     administering the program and monitoring compliance with the 
     program.
       ``(b) Agreement in Effect Until Drug Is No Longer a 
     Selected Drug.--An agreement entered into under this section 
     shall be effective, with respect to a selected drug, until 
     such drug is no longer considered a selected drug under 
     section 1192(c).
       ``(c) Confidentiality of Information.--Information 
     submitted to the Secretary under this part by a manufacturer 
     of a selected drug that is proprietary information of such 
     manufacturer (as determined by the Secretary) shall be used 
     only by the Secretary or disclosed to and used by the 
     Comptroller General of the United States for purposes of 
     carrying out this part.
       ``(d) Nonduplication With 340B Ceiling Price.--Under an 
     agreement entered into under this section, the manufacturer 
     of a selected drug shall not be required to provide access to 
     the maximum fair price under subsection (a)(3), with respect 
     to such selected drug and maximum fair price eligible 
     individuals who are eligible to be furnished, administered, 
     or dispensed such selected drug at a covered entity described 
     in section 340B(a)(4) of the Public Health Service Act, to 
     such covered entity if such selected drug is subject to an 
     agreement described in section 340B(a)(1) of such Act and the 
     ceiling price (defined in section 340B(a)(1) of such Act) is 
     lower than the maximum fair price for such selected drug, 
     except that the manufacturer shall provide for the maximum 
     fair price to such covered entity with respect to maximum 
     fair price eligible individuals who are eligible to be 
     furnished, administered, or dispensed such selected drug at 
     such entity at such ceiling price in a nonduplicated amount 
     to the ceiling price if the maximum fair price is below the 
     ceiling price for such selected drug.

     ``SEC. 1194. NEGOTIATION AND RENEGOTIATION PROCESS.

       ``(a) In General.--For purposes of this part, under an 
     agreement under section 1193 between the Secretary and a 
     manufacturer of a selected drug (or selected drugs), with 
     respect to the period for which such agreement is in effect 
     and in accordance with subsections (b), (c), and (d), the 
     Secretary and the manufacturer--
       ``(1) shall during the negotiation period with respect to 
     such drug, in accordance with this section, negotiate a 
     maximum fair price for such drug for the purpose described in 
     section 1193(a)(1); and
       ``(2) renegotiate, in accordance with the process specified 
     pursuant to subsection (f), such maximum fair price for such 
     drug for the purpose described in section 1193(a)(2) if such 
     drug is a renegotiation-eligible drug under such subsection.
       ``(b) Negotiation Process Requirements.--
       ``(1) Methodology and process.--The Secretary shall develop 
     and use a consistent methodology and process, in accordance 
     with paragraph (2), for negotiations under subsection (a) 
     that aims to achieve the lowest maximum fair price for each 
     selected drug.
       ``(2) Specific elements of negotiation process.--As part of 
     the negotiation process under this section, with respect to a 
     selected drug and the negotiation period with respect to the 
     initial price applicability year with respect to such drug, 
     the following shall apply:
       ``(A) Submission of information.--Not later than March 1 of 
     the year of the selected drug publication date, with respect 
     to the selected drug, the manufacturer of the drug shall 
     submit to the Secretary, in accordance with section 
     1193(a)(4), the information described in such section.
       ``(B) Initial offer by secretary.--Not later than the June 
     1 following the selected drug publication date, the Secretary 
     shall provide the manufacturer of a selected drug with a 
     written initial offer that contains the Secretary's proposal 
     for the maximum fair price of the drug and a list of the 
     factors described in section 1194(e) that were used in 
     developing such offer.
       ``(C) Response to initial offer.--
       ``(i) In general.--Not later than 30 days after the date of 
     receipt of an initial offer under subparagraph (B), the 
     manufacturer shall either accept such offer or propose a 
     counteroffer to such offer.
       ``(ii) Counteroffer requirements.--If a manufacturer 
     proposes a counteroffer, such counteroffer--

       ``(I) shall be in writing; and
       ``(II) shall be justified based on the factors described in 
     subsection (e).

       ``(D) Response to counteroffer.--After receiving a 
     counteroffer under subparagraph (C), the Secretary shall 
     respond in writing to such counteroffer.
       ``(E) Deadline.--All negotiations between the Secretary and 
     the manufacturer of the selected drug shall end prior to the 
     first day of November following the selected drug publication 
     date, with respect to the initial price applicability year.
       ``(F) Limitations on offer amount.--In negotiating the 
     maximum fair price of a selected drug, with respect to an 
     initial price applicability year for the selected drug, and, 
     as applicable, in renegotiating the maximum fair price for 
     such drug, with respect to a subsequent year during the price 
     applicability period for such drug, the Secretary shall not 
     offer (or agree to a counteroffer for) a maximum fair price 
     for the selected drug that--
       ``(i) exceeds the ceiling determined under subsection (c) 
     for the selected drug and year; or
       ``(ii) as applicable, is less than the floor determined 
     under subsection (d) for the selected drug and year.
       ``(G) Treatment of determination.--The determination of a 
     maximum fair price under this section is not subject to 
     administrative or judicial review.
       ``(c) Ceiling for Maximum Fair Price.--
       ``(1) General ceiling.--
       ``(A) In general.--The maximum fair price negotiated under 
     this section for a selected drug, with respect to the first 
     year of the price applicability period with respect to such 
     drug, shall not exceed the lower of the amount under 
     subparagraph (B) or the amount under subparagraph (C).
       ``(B) Subparagraph (B) amount.--An amount equal to the 
     following:
       ``(i) Covered part d drug.--In the case of a covered part D 
     drug (as defined in section 1860D-2(e)), the sum of the plan 
     specific enrollment weighted amounts for each prescription 
     drug plan or MA-PD plan (as determined under paragraph (2)).
       ``(ii) Part b drug or biological.--In the case of a drug or 
     biological product covered under part B of title XVIII, the 
     payment amount under section 1847A(b)(4) for the drug or 
     biological product for the year prior to the year of the 
     selected drug publication date with respect to the initial 
     price applicability year for the drug or biological product.
       ``(C) Subparagraph (C) amount.--An amount equal to the 
     applicable percent described in paragraph (3), with respect 
     to such drug, of the following:
       ``(i) Initial price applicability year 2026.--In the case 
     of a selected drug with respect to which such initial price 
     applicability year is 2026, the average non-Federal average 
     manufacturer price for such drug for 2021 (or, in the case 
     that there is not an average non-Federal average manufacturer 
     price available for such drug for 2021, for the first full 
     year following the market entry for such drug), increased by 
     the percentage increase in the consumer price index for all 
     urban consumers (all items; United States city average) from 
     September 2021 (or December of such first full year following 
     the market entry), as applicable, to September of the year 
     prior to the year of the selected drug publication date with 
     respect to such initial price applicability year.
       ``(ii) Initial price applicability year 2027 and subsequent 
     years.--In the case of a selected drug with respect to which 
     such initial price applicability year is 2027 or a subsequent 
     year, the lower of--

       ``(I) the average non-Federal average manufacturer price 
     for such drug for 2021 (or, in the case that there is not an 
     average non-Federal average manufacturer price available for 
     such drug for 2021, for the first full year following the 
     market entry for such drug), increased by the percentage 
     increase in the consumer price index for all urban consumers 
     (all items; United States city average) from September 2021 
     (or December of such first full year following the market 
     entry), as applicable, to September of the year prior to the 
     year of the selected drug publication date with respect to 
     such initial price applicability year; or
       ``(II) the average non-Federal average manufacturer price 
     for such drug for the year prior to the selected drug 
     publication date with respect to such initial price 
     applicability year.

       ``(2) Plan specific enrollment weighted amount.--For 
     purposes of paragraph (1)(B)(i), the plan specific enrollment 
     weighted amount for a prescription drug plan or an MA-PD plan 
     with respect to a covered Part D drug is an amount equal to 
     the product of--
       ``(A) the negotiated price of the drug under such plan 
     under part D of title XVIII, net of all price concessions 
     received by such plan or pharmacy benefit managers on behalf 
     of such plan, for the most recent year for which data is 
     available; and
       ``(B) a fraction--
       ``(i) the numerator of which is the total number of 
     individuals enrolled in such plan in such year; and
       ``(ii) the denominator of which is the total number of 
     individuals enrolled in a prescription drug plan or an MA-PD 
     plan in such year.
       ``(3) Applicable percent described.--For purposes of this 
     subsection, the applicable percent described in this 
     paragraph is the following:
       ``(A) Short-monopoly drugs and vaccines.--With respect to a 
     selected drug (other than an extended-monopoly drug and a 
     long-monopoly drug), 75 percent.
       ``(B) Extended-monopoly drugs.--With respect to an 
     extended-monopoly drug, 65 percent.
       ``(C) Long-monopoly drugs.--With respect to a long-monopoly 
     drug, 40 percent.
       ``(4) Extended-monopoly drug defined.--
       ``(A) In general.--In this part, subject to subparagraph 
     (B), the term `extended-monopoly drug' means, with respect to 
     an initial price applicability year, a selected drug for 
     which at least 12 years, but fewer than 16 years, have 
     elapsed since the date of approval of such drug under section 
     505(c) of the Federal Food, Drug, and Cosmetic Act or since 
     the date of licensure of such drug under section 351(a) of 
     the Public Health Service Act, as applicable.
       ``(B) Exclusions.--The term `extended-monopoly drug' shall 
     not include any of the following:
       ``(i) A vaccine that is licensed under section 351 of the 
     Public Health Service Act and marketed pursuant to such 
     section.

[[Page S3930]]

       ``(ii) A selected drug for which a manufacturer had an 
     agreement under this part with the Secretary with respect to 
     an initial price applicability year that is before 2030.
       ``(C) Clarification.--Nothing in subparagraph (B)(ii) shall 
     limit the transition of a selected drug described in 
     paragraph (3)(A) to a long-monopoly drug if the selected drug 
     meets the definition of a long-monopoly drug.
       ``(5) Long-monopoly drug defined.--
       ``(A) In general.--In this part, subject to subparagraph 
     (B), the term `long-monopoly drug' means, with respect to an 
     initial price applicability year, a selected drug for which 
     at least 16 years have elapsed since the date of approval of 
     such drug under section 505(c) of the Federal Food, Drug, and 
     Cosmetic Act or since the date of licensure of such drug 
     under section 351(a) of the Public Health Service Act, as 
     applicable.
       ``(B) Exclusion.--The term `long-monopoly drug' shall not 
     include a vaccine that is licensed under section 351 of the 
     Public Health Service Act and marketed pursuant to such 
     section.
       ``(6) Average non-federal average manufacturer price.--In 
     this part, the term `average non-Federal average manufacturer 
     price' means the average of the non-Federal average 
     manufacturer price (as defined in section 8126(h)(5) of title 
     38, United States Code) for the 4 calendar quarters of the 
     year involved.
       ``(d) Temporary Floor for Small Biotech Drugs.--In the case 
     of a selected drug that is a qualifying single source drug 
     described in section 1192(d)(2) and with respect to which the 
     first initial price applicability year of the price 
     applicability period with respect to such drug is 2029 or 
     2030, the maximum fair price negotiated under this section 
     for such drug for such initial price applicability year may 
     not be less than 66 percent of the average non-Federal 
     average manufacturer price for such drug (as defined in 
     subsection (c)(6)) for 2021 (or, in the case that there is 
     not an average non-Federal average manufacturer price 
     available for such drug for 2021, for the first full year 
     following the market entry for such drug), increased by the 
     percentage increase in the consumer price index for all urban 
     consumers (all items; United States city average) from 
     September 2021 (or December of such first full year following 
     the market entry), as applicable, to September of the year 
     prior to the selected drug publication date with respect to 
     the initial price applicability year.
       ``(e) Factors.--For purposes of negotiating the maximum 
     fair price of a selected drug under this part with the 
     manufacturer of the drug, the Secretary shall consider the 
     following factors (and, with respect to extended-monopoly 
     drugs and long-monopoly drugs, shall not, except in making a 
     determination of a material change under subsection 
     (f)(2)(D), consider factors other than those described in 
     subparagraphs (B) and (C) of paragraph (1)):
       ``(1) Manufacturer-specific information.--The following 
     information, with respect to such selected drug, including as 
     submitted by the manufacturer:
       ``(A) Research and development costs of the manufacturer 
     for the drug and the extent to which the manufacturer has 
     recouped research and development costs.
       ``(B) Market data for the drug.
       ``(C) Unit costs of production and distribution of the 
     drug.
       ``(D) Prior Federal financial support for novel therapeutic 
     discovery and development with respect to the drug.
       ``(E) Data on patents and on existing and pending 
     exclusivity for the drug.
       ``(F) National sales data for the drug.
       ``(G) Information on clinical trials for the drug.
       ``(2) Information on alternative treatments.--The following 
     information, with respect to such selected drug and 
     therapeutic alternatives to such drug:
       ``(A) The extent to which such drug represents a 
     therapeutic advance as compared to existing therapeutic 
     alternatives and, to the extent such information is 
     available, the costs of such existing therapeutic 
     alternatives.
       ``(B) Approval by the Food and Drug Administration of such 
     drug and therapeutic alternatives of such drug.
       ``(C) Comparative effectiveness of such drug and 
     therapeutic alternatives to such drug, taking into 
     consideration the effects of such drug and therapeutic 
     alternatives of such drug on specific populations, such as 
     individuals with disabilities, the elderly, the terminally 
     ill, children, and other patient populations.
       ``(D) The extent to which such drug and therapeutic 
     alternatives to such drug address unmet medical needs for a 
     condition for which treatment or diagnosis is not addressed 
     adequately by available therapy.
     In considering information described in subparagraph (C), the 
     Secretary shall not use evidence or findings from comparative 
     clinical effectiveness research in a manner that treats 
     extending the life of an elderly, disabled, or terminally ill 
     individual as of lower value than extending the life of an 
     individual who is younger, nondisabled, or not terminally 
     ill.
       ``(f) Renegotiation Process.--
       ``(1) In general.--In the case of a renegotiation-eligible 
     drug (as defined in paragraph (2)) that is selected under 
     paragraph (3), the Secretary shall provide for a process of 
     renegotiation (for years (beginning with 2028) during the 
     price applicability period, with respect to such drug) of the 
     maximum fair price for such drug consistent with paragraph 
     (4).
       ``(2) Renegotiation-eligible drug defined.--In this 
     section, the term `renegotiation-eligible drug' means a 
     selected drug that is any of the following:
       ``(A) Addition of new indication.--A selected drug for 
     which a new indication is added to the drug.
       ``(B) Change of status to an extended-monopoly drug.--A 
     selected drug that--
       ``(i) is not an extended-monopoly or a long-monopoly drug; 
     and
       ``(ii) for which there is a change in status to that of an 
     extended-monopoly drug.
       ``(C) Change of status to a long-monopoly drug.--A selected 
     drug that--
       ``(i) is not a long-monopoly drug; and
       ``(ii) for which there is a change in status to that of a 
     long-monopoly drug.
       ``(D) Material changes.--A selected drug for which the 
     Secretary determines there has been a material change of any 
     of the factors described in paragraph (1) or (2) of 
     subsection (e).
       ``(3) Selection of drugs for renegotiation.--Each year the 
     Secretary shall select among renegotiation-eligible drugs for 
     renegotiation as follows:
       ``(A) All extended-monopoly negotiation-eligible drugs.--
     The Secretary shall select all renegotiation-eligible drugs 
     described in paragraph (2)(B).
       ``(B) All long-monopoly negotiation-eligible drugs.--The 
     Secretary shall select all renegotiation-eligible drugs 
     described in paragraph (2)(C).
       ``(C) Remaining drugs.--Among the remaining renegotiation-
     eligible drugs described in subparagraphs (A) and (D) of 
     paragraph (2), the Secretary shall select renegotiation-
     eligible drugs for which the Secretary expects renegotiation 
     is likely to result in a significant change in the maximum 
     fair price otherwise negotiated.
       ``(4) Renegotiation process.--The Secretary shall specify 
     the process for renegotiation of maximum fair prices with the 
     manufacturer of a renegotiation-eligible drug selected for 
     renegotiation under this subsection. Such process shall, to 
     the extent practicable, be consistent with the methodology 
     and process established under subsection (b) and in 
     accordance with subsections (c) and (d), and for purposes of 
     applying subsections (c) and (d), the reference to the first 
     initial price applicability year of the price applicability 
     period with respect to such drug shall be treated as the 
     first initial price applicability year of such period for 
     which the maximum fair price established pursuant to such 
     renegotiation applies, including for applying subsection 
     (c)(3)(B) in the case of renegotiation-eligible drugs 
     described in paragraph (3)(A) of this subsection and 
     subsection (c)(3)(C) in the case of renegotiation-eligible 
     drugs described in paragraph (3)(B) of this subsection.
       ``(5) Clarification.--A renegotiation-eligible drug for 
     which the Secretary makes a determination described in 
     section 1192(c)(1) before or during the period of 
     renegotiation shall not be subject to the renegotiation 
     process under this section.
       ``(6) No administrative or judicial review.--The 
     determination of renegotiation-eligible drugs under paragraph 
     (2) and the selection of renegotiation-eligible drugs under 
     paragraph (3) are not subject to administrative or judicial 
     review.
       ``(g) Limitation.--
       ``(1) In general.--In no case shall the maximum fair price 
     negotiated under this section for a selected drug that is a 
     qualifying single source drug described in section 1192(e)(1) 
     apply before--
       ``(A) in the case the selected drug is a qualifying single 
     source drug described in subparagraph (A) of section 
     1192(e)(1), the date that is 9 years after the day on which 
     the drug was approved under section 505(c) of the Federal 
     Food, Drug, and Cosmetic Act; and
       ``(B) in the case the selected drug is a qualifying single 
     source drug described in subparagraph (B) of section 
     1192(e)(1), the date that is 13 years after the day on which 
     the drug was licensed under section 351(a) of the Public 
     Health Service Act.
       ``(2) Clarification.--The maximum fair price for a selected 
     drug described in subparagraph (A) or (B) of paragraph (1) 
     shall take effect no later than the first day of the first 
     calendar quarter that begins after the date described in 
     subparagraph (A) or (B), as applicable.

     ``SEC. 1195. PUBLICATION OF MAXIMUM FAIR PRICES.

       ``(a) In General.--With respect to an initial price 
     applicability year and a selected drug with respect to such 
     year--
       ``(1) not later than November 30 of the year that is 2 
     years prior to such initial price applicability year, the 
     Secretary shall publish the maximum fair price for such drug 
     negotiated with the manufacturer of such drug under this 
     part; and
       ``(2) not later than March 1 of the year prior to such 
     initial price applicability year, the Secretary shall 
     publish, subject to section 1193(c), the explanation for the 
     maximum fair price with respect to the factors as applied 
     under section 1194(e) for such drug described in paragraph 
     (1).
       ``(b) Updates.--
       ``(1) Subsequent year maximum fair prices.--For a selected 
     drug, for each year subsequent to the first initial price 
     applicability year of the price applicability period with 
     respect to such drug, with respect to which an agreement for 
     such drug is in effect

[[Page S3931]]

     under section 1193, not later than November 30 of the year 
     that is 2 years prior to such subsequent year, the Secretary 
     shall publish the maximum fair price applicable to such drug 
     and year, which shall be--
       ``(A) subject to subparagraph (B), the amount equal to the 
     maximum fair price published for such drug for the previous 
     year, increased by the annual percentage increase in the 
     consumer price index for all urban consumers (all items; 
     United States city average) for the 12-month period ending 
     with September of such previous year; or
       ``(B) in the case the maximum fair price for such drug was 
     renegotiated, for the first year for which such price as so 
     renegotiated applies, such renegotiated maximum fair price.
       ``(2) Prices negotiated after deadline.--In the case of a 
     selected drug with respect to an initial price applicability 
     year for which the maximum fair price is determined under 
     this part after the date of publication under this section, 
     the Secretary shall publish such maximum fair price by not 
     later than 30 days after the date such maximum price is so 
     determined.

     ``SEC. 1196. ADMINISTRATIVE DUTIES AND COMPLIANCE MONITORING.

       ``(a) Administrative Duties.--For purposes of section 
     1191(a)(4), the administrative duties described in this 
     section are the following:
       ``(1) The establishment of procedures to ensure that the 
     maximum fair price for a selected drug is applied before--
       ``(A) any coverage or financial assistance under other 
     health benefit plans or programs that provide coverage or 
     financial assistance for the purchase or provision of 
     prescription drug coverage on behalf of maximum fair price 
     eligible individuals; and
       ``(B) any other discounts.
       ``(2) The establishment of procedures to compute and apply 
     the maximum fair price across different strengths and dosage 
     forms of a selected drug and not based on the specific 
     formulation or package size or package type of such drug.
       ``(3) The establishment of procedures to carry out the 
     provisions of this part, as applicable, with respect to--
       ``(A) maximum fair price eligible individuals who are 
     enrolled under a prescription drug plan under part D of title 
     XVIII or an MA-PD plan under part C of such title; and
       ``(B) maximum fair price eligible individuals who are 
     enrolled under part B of such title, including who are 
     enrolled under an MA plan under part C of such title.
       ``(4) The establishment of a negotiation process and 
     renegotiation process in accordance with section 1194.
       ``(5) The establishment of a process for manufacturers to 
     submit information described in section 1194(b)(2)(A).
       ``(6) The sharing with the Secretary of the Treasury of 
     such information as is necessary to determine the tax imposed 
     by section 4192 of the Internal Revenue Code of 1986 
     (relating to enforcement of this part).
       ``(7) The establishment of procedures for purposes of 
     applying section 1192(d)(2)(B).
       ``(b) Compliance Monitoring.--The Secretary shall monitor 
     compliance by a manufacturer with the terms of an agreement 
     under section 1193 and establish a mechanism through which 
     violations of such terms shall be reported.

     ``SEC. 1197. CIVIL MONETARY PENALTIES.

       ``(a) Violations Relating to Offering of Maximum Fair 
     Price.--Any manufacturer of a selected drug that has entered 
     into an agreement under section 1193, with respect to a year 
     during the price applicability period with respect to such 
     drug, that does not provide access to a price that is not 
     more than the maximum fair price (or a lesser price) for such 
     drug for such year--
       ``(1) to a maximum fair price eligible individual who with 
     respect to such drug is described in subparagraph (A) of 
     section 1191(c)(1) and who is dispensed such drug during such 
     year (and to pharmacies, mail order services, and other 
     dispensers, with respect to such maximum fair price eligible 
     individuals who are dispensed such drugs); or
       ``(2) to a hospital, physician, or other provider of 
     services or supplier with respect to maximum fair price 
     eligible individuals who with respect to such drug is 
     described in subparagraph (B) of such section and is 
     furnished or administered such drug by such hospital, 
     physician, or provider or supplier during such year;
     shall be subject to a civil monetary penalty equal to ten 
     times the amount equal to the product of the number of units 
     of such drug so furnished, dispensed, or administered during 
     such year and the difference between the price for such drug 
     made available for such year by such manufacturer with 
     respect to such individual or hospital, physician, provider 
     of services, or supplier and the maximum fair price for such 
     drug for such year.
       ``(b) Violations of Certain Terms of Agreement.--Any 
     manufacturer of a selected drug that has entered into an 
     agreement under section 1193, with respect to a year during 
     the price applicability period with respect to such drug, 
     that is in violation of a requirement imposed pursuant to 
     section 1193(a)(5), including the requirement to submit 
     information pursuant to section 1193(a)(4), shall be subject 
     to a civil monetary penalty equal to $1,000,000 for each day 
     of such violation.
       ``(c) False Information.--Any manufacturer that knowingly 
     provides false information pursuant to section 1196(a)(7) 
     shall be subject to a civil monetary penalty equal to 
     $100,000,000 for each item of such false information.
       ``(d) Application.--The provisions of section 1128A (other 
     than subsections (a) and (b)) shall apply to a civil monetary 
     penalty under this section in the same manner as such 
     provisions apply to a penalty or proceeding under section 
     1128A(a).''.
       (b) Application of Maximum Fair Prices and Conforming 
     Amendments.--
       (1) Under medicare.--
       (A) Application to payments under part b.--Section 
     1847A(b)(1)(B) of the Social Security Act (42 U.S.C. 1395w-
     3a(b)(1)(B)) is amended by inserting ``or in the case of such 
     a drug or biological product that is a selected drug (as 
     referred to in section 1192(c)), with respect to a price 
     applicability period (as defined in section 1191(b)(2)), 106 
     percent of the maximum fair price (as defined in section 
     1191(c)(2)) applicable for such drug and a year during such 
     period'' after ``paragraph (4)''.
       (B) Application under ma of cost-sharing for part b drugs 
     based off of negotiated price.--Section 1852(a)(1)(B)(iv) of 
     the Social Security Act (42 U.S.C. 1395w-22(a)(1)(B)(iv)) is 
     amended--
       (i) by redesignating subclause (VII) as subclause (VIII); 
     and
       (ii) by inserting after subclause (VI) the following 
     subclause:

       ``(VII) A drug or biological product that is a selected 
     drug (as referred to in section 1192(c)).''.

       (C) Exception to part D non-interference.--Section 1860D-
     11(i) of the Social Security Act (42 U.S.C. 1395w-111(i)) is 
     amended--
       (i) in paragraph (1), by striking ``and'' at the end;
       (ii) in paragraph (2), by striking the period at the end 
     and inserting ``, except as provided under section 1860D-
     4(b)(3)(l); and''; and
       (iii) by adding at the end the following new paragraph:
       ``(3) may not institute a price structure for the 
     reimbursement of covered part D drugs, except as provided 
     under part E of title XI.''.
       (D) Application as negotiated price under part d.--Section 
     1860D-2(d)(1) of the Social Security Act (42 U.S.C. 1395w-
     102(d)(1)) is amended--
       (i) in subparagraph (B), by inserting ``, subject to 
     subparagraph (D),'' after ``negotiated prices''; and
       (ii) by adding at the end the following new subparagraph:
       ``(D) Application of maximum fair price for selected 
     drugs.--In applying this section, in the case of a covered 
     part D drug that is a selected drug (as referred to in 
     section 1192(c)), with respect to a price applicability 
     period (as defined in section 1191(b)(2)), the negotiated 
     prices used for payment (as described in this subsection) 
     shall be no greater than the maximum fair price (as defined 
     in section 1191(c)(2)) for such drug and for each year during 
     such period plus any dispensing fees for such drug.''.
       (E) Coverage of selected drugs.--Section 1860D-4(b)(3) of 
     the Social Security Act (42 U.S.C. 1395w-104(b)(3)) is 
     amended by adding at the end the following new subparagraph:
       ``(I) Required inclusion of selected drugs.--
       ``(i) In general.--For 2026 and each subsequent year, the 
     PDP sponsor offering a prescription drug plan shall include 
     each covered part D drug that is a selected drug under 
     section 1192 for which an agreement for such drug is in 
     effect under section 1193 with respect to the year.
       ``(ii) Clarification.--Nothing in clause (i) shall be 
     construed as prohibiting a PDP sponsor from removing such a 
     selected drug from a formulary if such removal would be 
     permitted under section 423.120(b)(5)(iv) of title 42, Code 
     of Federal Regulations (or any successor regulation).''.
       (F) Information from prescription drug plans and ma-pd 
     plans required.--
       (i) Prescription drug plans.--Section 1860D-12(b) of the 
     Social Security Act (42 U.S.C. 1395w-112(b)) is amended by 
     adding at the end the following new paragraph:
       ``(8) Provision of information related to maximum fair 
     prices.--Each contract entered into with a PDP sponsor under 
     this part with respect to a prescription drug plan offered by 
     such sponsor shall require the sponsor to provide information 
     to the Secretary as requested by the Secretary in accordance 
     with section 1194(g).''.
       (ii) MA-PD plans.--Section 1857(f)(3) of the Social 
     Security Act (42 U.S.C. 1395w-27(f)(3)) is amended by adding 
     at the end the following new subparagraph:
       ``(E) Provision of information related to maximum fair 
     prices.--Section 1860D-12(b)(8).''.
       (2) Drug price negotiation program prices included in best 
     price.--Section 1927(c)(1)(C) of the Social Security Act (42 
     U.S.C. 1396r-8(c)(1)(C)) is amended--
       (A) in clause (i)(VI), by striking ``any prices charged'' 
     and inserting ``subject to clause (ii)(V), any prices 
     charged''; and
       (B) in clause (ii)--
       (i) in subclause (III), by striking ``; and'' at the end;
       (ii) in subclause (IV), by striking the period at the end 
     and inserting ``; and''; and
       (iii) by adding at the end the following new subclause:

       ``(V) in the case of a rebate period and a covered 
     outpatient drug that is a selected drug (as referred to in 
     section 1192(c)) during such rebate period, shall be 
     inclusive of the maximum fair price (as defined in section 
     1191(c)(2)) for such drug with respect to such period.''.

       (3) Maximum fair prices excluded from average manufacturer 
     price.--Section

[[Page S3932]]

     1927(k)(1)(B)(i) of the Social Security Act (42 U.S.C. 1396r-
     8(k)(1)(B)(i)) is amended--
       (A) in subclause (IV) by striking ``; and'' at the end;
       (B) in subclause (V) by striking the period at the end and 
     inserting ``; and''; and
       (C) by adding at the end the following new subclause:

       ``(VI) any reduction in price paid during the rebate period 
     to the manufacturer for a drug by reason of application of 
     part E of title XI.''.

       (c) Implementation for 2026 Through 2028.--The Secretary of 
     Health and Human Services shall implement this section, 
     including the amendments made by this section, for 2026, 
     2027, and 2028 by program instruction or other forms of 
     program guidance.

     SEC. 11002. SPECIAL RULE TO DELAY SELECTION AND NEGOTIATION 
                   OF BIOLOGICS FOR BIOSIMILAR MARKET ENTRY.

       (a) In General.--Part E of title XI of the Social Security 
     Act, as added by section 11001, is amended--
       (1) in section 1192--
       (A) in subsection (a), in the flush matter following 
     paragraph (2), by inserting ``and subsection (b)(3)'' after 
     ``the previous sentence'';
       (B) in subsection (b)--
       (i) in paragraph (1), by adding at the end the following 
     new subparagraph:
       ``(C) In the case of a biological product for which the 
     inclusion of the biological product as a selected drug on a 
     list published under subsection (a) has been delayed under 
     subsection (f)(2), remove such biological product from the 
     rankings under subparagraph (A) before making the selections 
     under subparagraph (B).''; and
       (ii) by adding at the end the following new paragraph:
       ``(3) Inclusion of delayed biological products.--Pursuant 
     to subparagraphs (B)(ii)(I) and (C)(i) of subsection (f)(2), 
     the Secretary shall select and include on the list published 
     under subsection (a) the biological products described in 
     such subparagraphs. Such biological products shall count 
     towards the required number of drugs to be selected under 
     subsection (a)(1).'';
       (C) by redesignating subsection (f) as subsection (g);
       (D) by inserting after subsection (e) the following new 
     subsection:
       ``(f) Special Rule To Delay Selection and Negotiation of 
     Biologics for Biosimilar Market Entry.--
       ``(1) Application.--
       ``(A) In general.--Subject to subparagraph (B), in the case 
     of a biological product that would (but for this subsection) 
     be an extended-monopoly drug (as defined in section 
     1194(c)(4)) included as a selected drug on the list published 
     under subsection (a) with respect to an initial price 
     applicability year, the rules described in paragraph (2) 
     shall apply if the Secretary determines that there is a high 
     likelihood (as described in paragraph (3)) that a biosimilar 
     biological product (for which such biological product will be 
     the reference product) will be licensed and marketed under 
     section 351(k) of the Public Health Service Act before the 
     date that is 2 years after the selected drug publication date 
     with respect to such initial price applicability year.
       ``(B) Request required.--
       ``(i) In general.--The Secretary shall not provide for a 
     delay under--

       ``(I) paragraph (2)(A) unless a request is made for such a 
     delay by a manufacturer of a biosimilar biological product 
     prior to the selected drug publication date for the list 
     published under subsection (a) with respect to the initial 
     price applicability year for which the biological product 
     would have been included as a selected drug on such list but 
     for subparagraph (2)(A); or
       ``(II) paragraph (2)(B)(iii) unless a request is made for 
     such a delay by such a manufacturer prior to the selected 
     drug publication date for the list published under subsection 
     (a) with respect to the initial price applicability year that 
     is 1 year after the initial price applicability year for 
     which the biological product described in subsection (a) 
     would have been included as a selected drug on such list but 
     for paragraph (2)(A).

       ``(ii) Information and documents.--

       ``(I) In general.--A request made under clause (i) shall be 
     submitted to the Secretary by such manufacturer at a time and 
     in a form and manner specified by the Secretary, and 
     contain--

       ``(aa) information and documents necessary for the 
     Secretary to make determinations under this subsection, as 
     specified by the Secretary; and
       ``(bb) all agreements related to the biosimilar biological 
     product filed with the Federal Trade Commission or the 
     Assistant Attorney General pursuant to subsections (a) and 
     (c) of section 1112 of the Medicare Prescription Drug, 
     Improvement, and Modernization Act of 2003.

       ``(II) Additional information and documents.--After the 
     Secretary has reviewed the request and materials submitted 
     under subclause (I), the manufacturer shall submit any 
     additional information and documents requested by the 
     Secretary necessary to make determinations under this 
     subsection.

       ``(C) Aggregation rule.--
       ``(i) In general.--All persons treated as a single employer 
     under subsection (a) or (b) of section 52 of the Internal 
     Revenue Code of 1986, or in a partnership, shall be treated 
     as one manufacturer for purposes of paragraph (2)(D)(iv).
       ``(ii) Partnership defined.--In clause (i), the term 
     `partnership' means a syndicate, group, pool, joint venture, 
     or other organization through or by means of which any 
     business, financial operation, or venture is carried on by 
     the manufacturer of the biological product and the 
     manufacturer of the biosimilar biological product.
       ``(2) Rules described.--The rules described in this 
     paragraph are the following:
       ``(A) Delayed selection and negotiation for 1 year.--If a 
     determination of high likelihood is made under paragraph (3), 
     the Secretary shall delay the inclusion of the biological 
     product as a selected drug on the list published under 
     subsection (a) until such list is published with respect to 
     the initial price applicability year that is 1 year after the 
     initial price applicability year for which the biological 
     product would have been included as a selected drug on such 
     list.
       ``(B) If not licensed and marketed during the initial 
     delay.--
       ``(i) In general.--If, during the time period between the 
     selected drug publication date on which the biological 
     product would have been included on the list as a selected 
     drug pursuant to subsection (a) but for subparagraph (A) and 
     the selected drug publication date with respect to the 
     initial price applicability year that is 1 year after the 
     initial price applicability year for which such biological 
     product would have been included as a selected drug on such 
     list, the Secretary determines that the biosimilar biological 
     product for which the manufacturer submitted the request 
     under paragraph (1)(B)(i)(II) (and for which the Secretary 
     previously made a high likelihood determination under 
     paragraph (3)) has not been licensed and marketed under such 
     section 351(k), the Secretary shall, at the request of such 
     manufacturer--

       ``(I) reevaluate whether there is a high likelihood (as 
     described in paragraph (3)) that such biosimilar biological 
     product will be licensed and marketed under such section 
     351(k) before the selected drug publication date that is 2 
     years after the selected drug publication date for which such 
     biological product would have been included as a selected 
     drug on such list published but for subparagraph (A); and
       ``(II) evaluate whether, on the basis of clear and 
     convincing evidence, the manufacturer of such biosimilar 
     biological product has made a significant amount of progress 
     (as determined by the Secretary) towards both such licensure 
     and the marketing of such biosimilar biological product 
     (based on the items described in paragraph (3)(B)) since the 
     receipt by the Secretary of the request made by such 
     manufacturer under paragraph (1)(B)(i)(I).

       ``(ii) Selection and negotiation.--If the Secretary 
     determines that there is not a high likelihood that such 
     biosimilar biological product will be licensed and marketed 
     as described in clause (i)(I) or there has not been a 
     significant amount of progress as described in clause 
     (i)(II)--

       ``(I) the Secretary shall include the biological product as 
     a selected drug on the list published under subsection (a) 
     with respect to the initial price applicability year that is 
     1 year after the initial price applicability year for which 
     such biological product would have been included as a 
     selected drug on such list but for subparagraph (A); and
       ``(II) the manufacturer of such biological product shall 
     pay a rebate under paragraph (4) with respect to the year for 
     which such manufacturer would have provided access to a 
     maximum fair price for such biological product but for 
     subparagraph (A).

       ``(iii) Second 1-year delay.--If the Secretary determines 
     that there is a high likelihood that such biosimilar 
     biological product will be licensed and marketed (as 
     described in clause (i)(I)) and a significant amount of 
     progress has been made by the manufacturer of such biosimilar 
     biological product towards such licensure and marketing (as 
     described in clause (i)(II)), the Secretary shall delay the 
     inclusion of the biological product as a selected drug on the 
     list published under subsection (a) until the selected drug 
     publication date of such list with respect to the initial 
     price applicability year that is 2 years after the initial 
     price applicability year for which such biological product 
     would have been included as a selected drug on such list but 
     for this subsection.
       ``(C) If not licensed and marketed during the year two 
     delay.--If, during the time period between the selected drug 
     publication date of the list for which the biological product 
     would have been included as a selected drug but for 
     subparagraph (B)(iii) and the selected drug publication date 
     with respect to the initial price applicability year that is 
     2 years after the initial price applicability year for which 
     such biological product would have been included as a 
     selected drug on such list but for this subsection, the 
     Secretary determines that such biosimilar biological product 
     has not been licensed and marketed--
       ``(i) the Secretary shall include such biological product 
     as a selected drug on such list with respect to the initial 
     price applicability year that is 2 years after the initial 
     price applicability year for which such biological product 
     would have been included as a selected drug on such list; and
       ``(ii) the manufacturer of such biological product shall 
     pay a rebate under paragraph (4) with respect to the years 
     for which such manufacturer would have provided access to a 
     maximum fair price for such biological product but for this 
     subsection.
       ``(D) Limitations on delays.--

[[Page S3933]]

       ``(i) Limited to 2 years.--In no case shall the Secretary 
     delay the inclusion of a biological product on the list 
     published under subsection (a) for more than 2 years.
       ``(ii) Exclusion of biological products that transitioned 
     to a long-monopoly drug during the delay.--In the case of a 
     biological product for which the inclusion on the list 
     published pursuant to subsection (a) was delayed by 1 year 
     under subparagraph (A) and for which there would have been a 
     change in status to a long-monopoly drug (as defined in 
     section 1194(c)(5)) if such biological product had been a 
     selected drug, in no case may the Secretary provide for a 
     second 1-year delay under subparagraph (B)(iii).
       ``(iii) Exclusion of biological products if more than 1 
     year since licensure.--In no case shall the Secretary delay 
     the inclusion of a biological product on the list published 
     under subsection (a) if more than 1 year has elapsed since 
     the biosimilar biological product has been licensed under 
     section 351(k) and marketing has not commenced for such 
     biosimilar biological product.
       ``(iv) Certain manufacturers of biosimilar biological 
     products excluded.--In no case shall the Secretary delay the 
     inclusion of a biological product as a selected drug on the 
     list published under subsection (a) if the manufacturer of 
     the biosimilar biological product described in paragraph 
     (1)(A)--

       ``(I) is the same as the manufacturer of the reference 
     product described in such paragraph or is treated as being 
     the same pursuant to paragraph (1)(C);
       ``(II) has--

       ``(aa) in the past 5 years, been subject to exclusion under 
     section 1128(b)(7) or to the imposition of civil monetary 
     penalties under section 1128A; or
       ``(bb) an integrity agreement in effect with the Inspector 
     General of the Department of Health and Human Services that 
     was entered into in lieu of exclusion under section 
     1128(b)(7);

       ``(III) is currently subject to a cease and desist order or 
     an injunction in a proceeding or civil action brought by the 
     Federal Trade Commission except for proceedings or actions 
     related solely to a merger or acquisition; or
       ``(IV) has entered into any agreement described in 
     paragraph (1)(B)(ii)(I)(bb) with the manufacturer of the 
     reference product described in paragraph (1)(A) that requires 
     or incentivizes the manufacturer of the biosimilar biological 
     product to submit a request described in paragraph (1)(B).

       ``(E) Public notification.--If the Secretary delays the 
     inclusion of a biological product as a selected drug on the 
     list published under this section pursuant to subparagraph 
     (A) or (B)(iii), the Secretary shall, within 30 days of 
     making the determination with respect to such delay, provide 
     notification to the public of such delay in a form and manner 
     determined by the Secretary.
       ``(3) High likelihood.--
       ``(A) In general.--For purposes of this subsection, there 
     is a high likelihood described in paragraph (1) or paragraph 
     (2), as applicable, if the Secretary finds that--
       ``(i) an application for licensure under such section 
     351(k) for the biosimilar biological product has been 
     accepted for review or approved by the Food and Drug 
     Administration; and
       ``(ii) information from documents described in paragraph 
     (1)(B)(ii) submitted by the manufacturer requesting a delay 
     under paragraph (1)(B) to the Secretary provides clear and 
     convincing evidence that such biosimilar biological product 
     will, within the time period specified under paragraph (1)(A) 
     or (2)(B)(i)(I), be marketed.
       ``(B) Items described.--The items described in this 
     subparagraph are the following:
       ``(i) The manufacturing schedule for such biosimilar 
     biological product submitted to the Food and Drug 
     Administration during its review of the application under 
     such section 351(k).
       ``(ii) Disclosures (in filings by the manufacturer of such 
     biosimilar biological product with the Securities and 
     Exchange Commission required under section 12(b), 12(g), 
     13(a), or 15(d) of the Securities Exchange Act of 1934 about 
     capital investment, revenue expectations, and actions taken 
     by the manufacturer that are typical of the normal course of 
     business in the year (or the 2 years, as applicable) before 
     marketing of a biosimilar biological product) that pertain to 
     the marketing of such biosimilar biological product, or 
     comparable documentation that is distributed to the 
     shareholders of privately held companies.
       ``(iii) Agreements filed with the Federal Trade Commission 
     or the Assistant Attorney General pursuant to subsections (a) 
     and (c) of section 1112 of the Medicare Prescription Drug, 
     Improvement, and Modernization Act of 2003.
       ``(4) Rebate.--
       ``(A) In general.--For purposes of subparagraphs 
     (B)(ii)(II) and (C)(ii) of paragraph (2), in the case of a 
     biological product for which the inclusion on the list under 
     subsection (a) was delayed under this subsection and for 
     which the Secretary has negotiated and entered into an 
     agreement under section 1193 with respect to such biological 
     product, the manufacturer shall be required to pay a rebate 
     to the Secretary at such time and in such manner as 
     determined by the Secretary.
       ``(B) Amount.--Subject to subparagraph (C), the amount of 
     the rebate under subparagraph (A) with respect to a 
     biological product shall be equal to the estimated amount--
       ``(i) in the case of a biological product that is a covered 
     part D drug (as defined in section 1860D-2(e)), that is the 
     sum of the products of--

       ``(I) 75 percent of the amount by which--

       ``(aa) the average manufacturer price, as reported by the 
     manufacturer of such covered part D drug under section 1927 
     (or, if not reported by such manufacturer under section 1927, 
     as reported by such manufacturer to the Secretary pursuant to 
     the agreement under section 1193(a)) for such biological 
     product, with respect to each of the calendar quarters of the 
     price applicability period that would have applied but for 
     this subsection; exceeds
       ``(bb) in the initial price applicability year that would 
     have applied but for a delay under--
       ``(AA) paragraph (2)(A), the maximum fair price negotiated 
     under section 1194 for such biological product under such 
     agreement; or
       ``(BB) paragraph (2)(B)(iii), such maximum fair price, 
     increased by the annual percentage increase in the consumer 
     price index for all urban consumers (all items; United States 
     city average) for the 12-month period ending with September 
     of such previous year; and

       ``(II) the number of units dispensed under part D of title 
     XVIII for such covered part D drug during each such quarter 
     of such price applicability period; and

       ``(ii) in the case of a biological product covered under 
     part B of title XVIII, that is the sum of the products of--

       ``(I) 80 percent of the amount by which--

       ``(aa) the payment amount for such biological product under 
     section 1847A(b), with respect to each of the calendar 
     quarters of the price applicability period that would have 
     applied but for this subsection; exceeds
       ``(bb) in the initial price applicability year that would 
     have applied but for a delay under--
       ``(AA) paragraph (2)(A), the maximum fair price negotiated 
     under section 1194 for such biological product under such 
     agreement; or
       ``(BB) paragraph (2)(B)(iii), such maximum fair price, 
     increased by the annual percentage increase in the consumer 
     price index for all urban consumers (all items; United States 
     city average) for the 12-month period ending with September 
     of such previous year; and

       ``(II) the number of units (excluding units that are 
     packaged into the payment amount for an item or service and 
     are not separately payable under such part B) of the billing 
     and payment code of such biological product administered or 
     furnished under such part B during each such calendar quarter 
     of such price applicability period.

       ``(C) Special rule for delayed biological products that are 
     long-monopoly drugs.--
       ``(i) In general.--In the case of a biological product with 
     respect to which a rebate is required to be paid under this 
     paragraph, if such biological product qualifies as a long-
     monopoly drug (as defined in section 1194(c)(5)) at the time 
     of its inclusion on the list published under subsection (a), 
     in determining the amount of the rebate for such biological 
     product under subparagraph (B), the amount described in 
     clause (ii) shall be substituted for the maximum fair price 
     described in clause (i)(I) or (ii)(I) of such subparagraph 
     (B), as applicable.
       ``(ii) Amount described.--The amount described in this 
     clause is an amount equal to 65 percent of the average non-
     Federal average manufacturer price for the biological product 
     for 2021 (or, in the case that there is not an average non-
     Federal average manufacturer price available for such 
     biological product for 2021, for the first full year 
     following the market entry for such biological product), 
     increased by the percentage increase in the consumer price 
     index for all urban consumers (all items; United States city 
     average) from September 2021 (or December of such first full 
     year following the market entry), as applicable, to September 
     of the year prior to the selected drug publication date with 
     respect to the initial price applicability year that would 
     have applied but for this subsection.
       ``(D) Rebate deposits.--Amounts paid as rebates under this 
     paragraph shall be deposited into--
       ``(i) in the case payment is made for such biological 
     product under part B of title XVIII, the Federal 
     Supplementary Medical Insurance Trust Fund established under 
     section 1841; and
       ``(ii) in the case such biological product is a covered 
     part D drug (as defined in section 1860D-2(e)), the Medicare 
     Prescription Drug Account under section 1860D-16 in such 
     Trust Fund.
       ``(5) Determinations.--The determinations of high 
     likelihood and significant amount of progress under this 
     subsection and the determinations required under paragraph 
     (2)(D)(iv) shall be based on information available to the 
     Secretary, including information required by the Secretary 
     from the manufacturer of the biosimilar biological product 
     making a request for a delay under this subsection.
       ``(6) Definitions of biosimilar biological product.--In 
     this subsection, the term `biosimilar biological product' has 
     the meanings given such term in section 1847A(c)(6).''; and
       (E) in subsection (g), as redesignated by subparagraph (C), 
     by inserting ``the application of subsection (f),'' after 
     ``subsection (e),'';
       (2) in section 1193(a)(4)--

[[Page S3934]]

       (A) in the matter preceding subparagraph (A), by inserting 
     ``and for section 1192(f)'' after ``section 1194(f)'';
       (B) in subparagraph (A), by striking ``and'' at the end;
       (C) by adding at the end the following new subparagraph:
       ``(C) information that the Secretary requires to carry out 
     section 1192(f), including rebates under paragraph (4) of 
     such section; and'';
       (3) in section 1196(a)(7), by inserting ``, 
     1192(f)(1)(C),'' after ``sections 1192(d)(2)(B)''; and
       (4) in section 1197--
       (A) by redesignating subsections (b), (c), and (d) as 
     subsections (c), (d), and (e), respectively; and
       (B) by inserting after subsection (a) the following new 
     subsection:
       ``(b) Violations Relating to Providing Rebates.--Any 
     manufacturer that fails to comply with the rebate 
     requirements under section 1192(f)(4) shall be subject to a 
     civil monetary penalty equal to 10 times the amount of the 
     rebate the manufacturer failed to pay under such section.''.
       (b) Conforming Amendments for Disclosure of Certain 
     Information.--Section 1927(b)(3)(D) of the Social Security 
     Act (42 U.S.C. 1396r-8(b)(3)(D)) is amended--
       (1) in clause (vi), by striking ``and'' at the end;
       (2) in clause (vii), by striking the period at the end and 
     inserting ``; and''; and
       (3) by inserting after clause (vii) the following new 
     clause:
       ``(viii) as the Secretary determines necessary to carry out 
     section 1192(f), including rebates under paragraph (4) of 
     such section.''.
       (c) Implementation for 2026 Through 2028.--The Secretary of 
     Health and Human Services shall implement this section, 
     including the amendments made by this section, for 2026, 
     2027, and 2028 by program instruction or other forms of 
     program guidance.

     SEC. 11003. SELECTED DRUG MANUFACTURER EXCISE TAX IMPOSED 
                   DURING NONCOMPLIANCE PERIODS.

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

                     ``CHAPTER 50A--SELECTED DRUGS

``Sec. 5000D. Selected drugs during noncompliance periods.

     ``SEC. 5000D. SELECTED DRUGS DURING NONCOMPLIANCE PERIODS.

       ``(a) In General.--There is hereby imposed on the sale by 
     the manufacturer, producer, or importer of any selected drug 
     during a day described in subsection (b) a tax in an amount 
     such that the applicable percentage is equal to the ratio 
     of--
       ``(1) such tax, divided by
       ``(2) the sum of such tax and the price for which so sold.
       ``(b) Noncompliance Periods.--A day is described in this 
     subsection with respect to a selected drug if it is a day 
     during one of the following periods:
       ``(1) The period beginning on the March 1st (or, in the 
     case of initial price applicability year 2026, the October 
     2nd) immediately following the selected drug publication date 
     and ending on the first date during which the manufacturer of 
     the drug has in place an agreement described in subsection 
     (a) of section 1193 of the Social Security Act with respect 
     to such drug.
       ``(2) The period beginning on the November 2nd immediately 
     following the March 1st described in paragraph (1) (or, in 
     the case of initial price applicability year 2026, the August 
     2nd immediately following the October 2nd described in such 
     paragraph) and ending on the first date during which the 
     manufacturer of the drug and the Secretary of Health and 
     Human Services have agreed to a maximum fair price under such 
     agreement.
       ``(3) In the case of a selected drug with respect to which 
     the Secretary of Health and Human Services has specified a 
     renegotiation period under such agreement, the period 
     beginning on the first date after the last date of such 
     renegotiation period and ending on the first date during 
     which the manufacturer of the drug has agreed to a 
     renegotiated maximum fair price under such agreement.
       ``(4) With respect to information that is required to be 
     submitted to the Secretary of Health and Human Services under 
     such agreement, the period beginning on the date on which 
     such Secretary certifies that such information is overdue and 
     ending on the date that such information is so submitted.
       ``(c) Applicable Percentage.--For purposes of this section, 
     the term `applicable percentage' means--
       ``(1) in the case of sales of a selected drug during the 
     first 90 days described in subsection (b) with respect to 
     such drug, 65 percent,
       ``(2) in the case of sales of such drug during the 91st day 
     through the 180th day described in subsection (b) with 
     respect to such drug, 75 percent,
       ``(3) in the case of sales of such drug during the 181st 
     day through the 270th day described in subsection (b) with 
     respect to such drug, 85 percent, and
       ``(4) in the case of sales of such drug during any 
     subsequent day, 95 percent.
       ``(d) Selected Drug.--For purposes of this section--
       ``(1) In general.--The term `selected drug' means any 
     selected drug (within the meaning of section 1192(c) of the 
     Social Security Act) which is manufactured or produced in the 
     United States or entered into the United States for 
     consumption, use, or warehousing.
       ``(2) United states.--The term `United States' has the 
     meaning given such term by section 4612(a)(4).
       ``(3) Coordination with rules for possessions of the united 
     states.--Rules similar to the rules of paragraphs (2) and (4) 
     of section 4132(c) shall apply for purposes of this section.
       ``(e) Other Definitions.--For purposes of this section, the 
     terms `initial price applicability year', `selected drug 
     publication date', and `maximum fair price' have the meaning 
     given such terms in section 1191 of the Social Security Act.
       ``(f) Special Rules.--
       ``(1) Anti-abuse rule.--In the case of a sale which was 
     timed for the purpose of avoiding the tax imposed by this 
     section, the Secretary may treat such sale as occurring 
     during a day described in subsection (b).
       ``(2) Prohibition on administrative appeals.--Any tax 
     controversy with respect to the tax imposed by this section 
     shall not be referred to, or considered by, the Internal 
     Revenue Service Independent Office of Appeals.
       ``(g) Exports.--Rules similar to the rules of section 
     4662(e) (other than section 4662(e)(2)(A)(ii)(II)) shall 
     apply for purposes of this chapter.
       ``(h) Regulations.--The Secretary shall prescribe such 
     regulations and other guidance as may be necessary or 
     appropriate to carry out this section.''.
       (b) No Deduction for Excise Tax Payments.--Section 
     275(a)(6) of the Internal Revenue Code of 1986 is amended by 
     inserting ``50A,'' after ``46,''.
       (c) Civil Actions for Refund.--Section 7422 of the Internal 
     Revenue Code of 1986 is amended by inserting after subsection 
     (g) the following new subsection:
       ``(h) Special Rules for Excise Tax Imposed by Chapter 
     50A.--No suit or proceeding shall be maintained in any court 
     for the recovery of any tax imposed under section 5000D until 
     payment has been made by the taxpayer in an amount equal to 
     the full amount of the tax imposed under such section 
     (including any interest or penalties in connection with such 
     tax) with respect to any sales of a selected drug (as defined 
     in section 5000D(d)(1)) during the period for which a return 
     is required to be made with respect to such tax (as 
     determined under regulations prescribed by the Secretary).''.
       (d) Clerical Amendment.--The table of chapters for subtitle 
     D of the Internal Revenue Code of 1986 is amended by adding 
     at the end the following new item:

                    ``Chapter 50A--Selected Drugs''.

       (e) Effective Date.--The amendments made by this section 
     shall apply to sales after the date of the enactment of this 
     Act.

     SEC. 11004. FUNDING.

       In addition to amounts otherwise available, there is 
     appropriated to the Centers for Medicare & Medicaid Services, 
     out of any money in the Treasury not otherwise appropriated, 
     $3,000,000,000 for fiscal year 2022, to remain available 
     until expended, to carry out the provisions of, including the 
     amendments made by, this part.

              PART 2--PRESCRIPTION DRUG INFLATION REBATES

     SEC. 11101. MEDICARE PART B REBATE BY MANUFACTURERS.

       (a) In General.--Section 1847A of the Social Security Act 
     (42 U.S.C. 1395w-3a) is amended--
       (1) by redesignating subsection (i) as subsection (j) and 
     by inserting after subsection (h) the following subsection:
       ``(i) Rebate by Manufacturers for Single Source Drugs and 
     Biologicals With Prices Increasing Faster Than Inflation.--
       ``(1) Requirements.--
       ``(A) Secretarial provision of information.--Not later than 
     6 months after the end of each calendar quarter beginning on 
     or after January 1, 2023, the Secretary shall, for each part 
     B rebatable drug, report to each manufacturer of such part B 
     rebatable drug the following for such calendar quarter:
       ``(i) Information on the total number of billing units of 
     the billing and payment code described in subparagraph (A)(i) 
     of paragraph (3) with respect to such drug and calendar 
     quarter.
       ``(ii) Information on the amount (if any) of the excess 
     average sales price increase described in subparagraph 
     (A)(ii) of such paragraph for such drug and calendar quarter.
       ``(iii) The rebate amount specified under such paragraph 
     for such part B rebatable drug and calendar quarter.
       ``(B) Manufacturer requirement.--For each calendar quarter 
     beginning on or after January 1, 2023, the manufacturer of a 
     part B rebatable drug shall, for such drug, not later than 30 
     days after the date of receipt from the Secretary of the 
     information described in subparagraph (A) for such calendar 
     quarter, provide to the Secretary a rebate that is equal to 
     the amount specified in paragraph (3) for such drug for such 
     calendar quarter.
       ``(C) Transition rule for reporting.--The Secretary may, 
     for each part B rebatable drug, delay the timeframe for 
     reporting the information described in subparagraph (A) for 
     calendar quarters beginning in 2023 and 2024 until not later 
     than September 30, 2025.
       ``(2) Part b rebatable drug defined.--
       ``(A) In general.--In this subsection, the term `part B 
     rebatable drug' means a single source drug or biological (as 
     defined in subparagraph (D) of subsection (c)(6)), including

[[Page S3935]]

     a biosimilar biological product (as defined in subparagraph 
     (H) of such subsection) but excluding a qualifying biosimilar 
     biological product (as defined in subsection (b)(8)(B)(iii)), 
     that would be payable under this part if such drug were 
     furnished to an individual enrolled under this part, except 
     such term shall not include such a drug or biological--
       ``(i) if, as determined by the Secretary, the average total 
     allowed charges for such drug or biological under this part 
     for a year per individual that uses such a drug or biological 
     are less than, subject to subparagraph (B), $100; or
       ``(ii) that is a vaccine described in subparagraph (A) or 
     (B) of section 1861(s)(10).
       ``(B) Increase.--The dollar amount applied under 
     subparagraph (A)(i)--
       ``(i) for 2024, shall be the dollar amount specified under 
     such subparagraph for 2023, increased by the percentage 
     increase in the consumer price index for all urban consumers 
     (United States city average) for the 12-month period ending 
     with June of the previous year; and
       ``(ii) for a subsequent year, shall be the dollar amount 
     specified in this clause (or clause (i)) for the previous 
     year (without application of subparagraph (C)), increased by 
     the percentage increase in the consumer price index for all 
     urban consumers (United States city average) for the 12-month 
     period ending with June of the previous year.
       ``(C) Rounding.--Any dollar amount determined under 
     subparagraph (B) that is not a multiple of $10 shall be 
     rounded to the nearest multiple of $10.
       ``(3) Rebate amount.--
       ``(A) In general.--For purposes of paragraph (1), the 
     amount specified in this paragraph for a part B rebatable 
     drug assigned to a billing and payment code for a calendar 
     quarter is, subject to subparagraphs (B) and (G) and 
     paragraph (4), the estimated amount equal to the product of--
       ``(i) the total number of billing units determined under 
     subparagraph (B) for the billing and payment code of such 
     drug; and
       ``(ii) the amount (if any) by which--

       ``(I) the amount equal to--

       ``(aa) in the case of a part B rebatable drug described in 
     paragraph (1)(B) of section 1847A(b), 106 percent of the 
     amount determined under paragraph (4) of such section for 
     such drug during the calendar quarter; or
       ``(bb) in the case of a part B rebatable drug described in 
     paragraph (1)(C) of such section, the payment amount under 
     such paragraph for such drug during the calendar quarter; 
     exceeds

       ``(II) the inflation-adjusted payment amount determined 
     under subparagraph (C) for such part B rebatable drug during 
     the calendar quarter.

       ``(B) Total number of billing units.--For purposes of 
     subparagraph (A)(i), the total number of billing units with 
     respect to a part B rebatable drug is determined as follows:
       ``(i) Determine the total number of units equal to--

       ``(I) the total number of units, as reported under 
     subsection (c)(1)(B) for each National Drug Code of such drug 
     during the calendar quarter that is two calendar quarters 
     prior to the calendar quarter as described in subparagraph 
     (A), minus
       ``(II) the total number of units with respect to each 
     National Drug Code of such drug for which payment was made 
     under a State plan under title XIX (or waiver of such plan), 
     as reported by States under section 1927(b)(2)(A) for the 
     rebate period that is the same calendar quarter as described 
     in subclause (I).

       ``(ii) Convert the units determined under clause (i) to 
     billing units for the billing and payment code of such drug, 
     using a methodology similar to the methodology used under 
     this section, by dividing the units determined under clause 
     (i) for each National Drug Code of such drug by the billing 
     unit for the billing and payment code of such drug.
       ``(iii) Compute the sum of the billing units for each 
     National Drug Code of such drug in clause (ii).
       ``(C) Determination of inflation-adjusted payment amount.--
     The inflation-adjusted payment amount determined under this 
     subparagraph for a part B rebatable drug for a calendar 
     quarter is--
       ``(i) the payment amount for the billing and payment code 
     for such drug in the payment amount benchmark quarter (as 
     defined in subparagraph (D)); increased by
       ``(ii) the percentage by which the rebate period CPI-U (as 
     defined in subparagraph (F)) for the calendar quarter exceeds 
     the benchmark period CPI-U (as defined in subparagraph (E)).
       ``(D) Payment amount benchmark quarter.--The term `payment 
     amount benchmark quarter' means the calendar quarter 
     beginning July 1, 2021.
       ``(E) Benchmark period cpi-u.--The term `benchmark period 
     CPI-U' means the consumer price index for all urban consumers 
     (United States city average) for January 2021.
       ``(F) Rebate period cpi-u.--The term `rebate period CPI-U' 
     means, with respect to a calendar quarter described in 
     subparagraph (C), the greater of the benchmark period CPI-U 
     and the consumer price index for all urban consumers (United 
     States city average) for the first month of the calendar 
     quarter that is two calendar quarters prior to such described 
     calendar quarter.
       ``(G) Reduction or waiver for shortages and severe supply 
     chain disruptions.--The Secretary shall reduce or waive the 
     amount under subparagraph (A) with respect to a part B 
     rebatable drug and a calendar quarter--
       ``(i) in the case of a part B rebatable drug that is 
     described as currently in shortage on the shortage list in 
     effect under section 506E of the Federal Food, Drug, and 
     Cosmetic Act at any point during the calendar quarter; or
       ``(ii) in the case of a biosimilar biological product, when 
     the Secretary determines there is a severe supply chain 
     disruption during the calendar quarter, such as that caused 
     by a natural disaster or other unique or unexpected event.
       ``(4) Special treatment of certain drugs and exemption.--
       ``(A) Subsequently approved drugs.--In the case of a part B 
     rebatable drug first approved or licensed by the Food and 
     Drug Administration after December 1, 2020, clause (i) of 
     paragraph (3)(C) shall be applied as if the term `payment 
     amount benchmark quarter' were defined under paragraph (3)(D) 
     as the third full calendar quarter after the day on which the 
     drug was first marketed and clause (ii) of paragraph (3)(C) 
     shall be applied as if the term `benchmark period CPI-U' were 
     defined under paragraph (3)(E) as if the reference to 
     `January 2021' under such paragraph were a reference to `the 
     first month of the first full calendar quarter after the day 
     on which the drug was first marketed'.
       ``(B) Timeline for provision of rebates for subsequently 
     approved drugs.--In the case of a part B rebatable drug first 
     approved or licensed by the Food and Drug Administration 
     after December 1, 2020, paragraph (1)(B) shall be applied as 
     if the reference to `January 1, 2023' under such paragraph 
     were a reference to `the later of the 6th full calendar 
     quarter after the day on which the drug was first marketed or 
     January 1, 2023'.
       ``(C) Selected drugs.--In the case of a part B rebatable 
     drug that is a selected drug (as defined in section 1192(c)) 
     with respect to a price applicability period (as defined in 
     section 1191(b)(2)), in the case such drug is no longer 
     considered to be a selected drug under section 1192(c), for 
     each applicable period (as defined under subsection (g)(7)) 
     beginning after the price applicability period with respect 
     to such drug, clause (i) of paragraph (3)(C) shall be applied 
     as if the term `payment amount benchmark quarter' were 
     defined under paragraph (3)(D) as the calendar quarter 
     beginning January 1 of the last year during such price 
     applicability period with respect to such selected drug and 
     clause (ii) of paragraph (3)(C) shall be applied as if the 
     term `benchmark period CPI-U' were defined under paragraph 
     (3)(E) as if the reference to `January 2021' under such 
     paragraph were a reference to `the July of the year preceding 
     such last year'.
       ``(5) Application to beneficiary coinsurance.--In the case 
     of a part B rebatable drug furnished on or after April 1, 
     2023, if the payment amount described in paragraph 
     (3)(A)(ii)(I) (or, in the case of a part B rebatable drug 
     that is a selected drug (as defined in section 1192(c)), the 
     payment amount described in subsection (b)(1)(B) for such 
     drug) for a calendar quarter exceeds the inflation adjusted 
     payment for such quarter--
       ``(A) in computing the amount of any coinsurance applicable 
     under this part to an individual to whom such drug is 
     furnished, the computation of such coinsurance shall be equal 
     to 20 percent of the inflation-adjusted payment amount 
     determined under paragraph (3)(C) for such part B rebatable 
     drug; and
       ``(B) the amount of such coinsurance for such calendar 
     quarter, as computed under subparagraph (A), shall be applied 
     as a percent, as determined by the Secretary, to the payment 
     amount that would otherwise apply under subparagraphs (B) or 
     (C) of subsection (b)(1).
       ``(6) Rebate deposits.--Amounts paid as rebates under 
     paragraph (1)(B) shall be deposited into the Federal 
     Supplementary Medical Insurance Trust Fund established under 
     section 1841.
       ``(7) Civil money penalty.--If a manufacturer of a part B 
     rebatable drug has failed to comply with the requirements 
     under paragraph (1)(B) for such drug for a calendar quarter, 
     the manufacturer shall be subject to, in accordance with a 
     process established by the Secretary pursuant to regulations, 
     a civil money penalty in an amount equal to at least 125 
     percent of the amount specified in paragraph (3) for such 
     drug for such calendar quarter. The provisions of section 
     1128A (other than subsections (a) (with respect to amounts of 
     penalties or additional assessments) and (b)) shall apply to 
     a civil money penalty under this paragraph in the same manner 
     as such provisions apply to a penalty or proceeding under 
     section 1128A(a).''; and
       (2) in subsection (j), as redesignated by paragraph (1)--
       (A) in paragraph (4), by striking at the end ``and'';
       (B) in paragraph (5), by striking at the end the period and 
     inserting a semicolon; and
       (C) by adding at the end the following new paragraphs:
       ``(6) the determination of units under subsection (i);
       ``(7) the determination of whether a drug is a part B 
     rebatable drug under subsection (i);
       ``(8) the calculation of the rebate amount under subsection 
     (i); and
       ``(9) the computation of coinsurance under subsection 
     (i)(5); and
       ``(10) the computation of amounts paid under section 
     1833(a)(1)(EE).''.

[[Page S3936]]

       (b) Amounts Payable; Cost-Sharing.--Section 1833 of the 
     Social Security Act (42 U.S.C. 1395l) is amended--
       (1) in subsection (a)(1)--
       (A) in subparagraph (G), by inserting ``, subject to 
     subsection (i)(9),'' after ``the amounts paid'';
       (B) in subparagraph (S), by striking ``with respect to'' 
     and inserting ``subject to subparagraph (EE), with respect 
     to'';
       (C) by striking ``and (DD)'' and inserting ``(DD)''; and
       (D) by inserting before the semicolon at the end the 
     following: ``, and (EE) with respect to a part B rebatable 
     drug (as defined in paragraph (2) of section 1847A(i)) 
     furnished on or after April 1, 2023, for which the payment 
     amount for a calendar quarter under paragraph (3)(A)(ii)(I) 
     of such section (or, in the case of a part B rebatable drug 
     that is a selected drug (as defined in section 1192(c) for 
     which, the payment amount described in section 
     1847A(b)(1)(B)) for such drug for such quarter exceeds the 
     inflation-adjusted payment under paragraph (3)(A)(ii)(II) of 
     such section for such quarter, the amounts paid shall be 
     equal to the percent of the payment amount under paragraph 
     (3)(A)(ii)(I) of such section or section 1847A(b)(1)(B), as 
     applicable, that equals the difference between (i) 100 
     percent, and (ii) the percent applied under section 
     1847A(i)(5)(B)'';
       (2) in subsection (i), by adding at the end the following 
     new paragraph:
       ``(9) In the case of a part B rebatable drug (as defined in 
     paragraph (2) of section 1847A(i)) for which payment under 
     this subsection is not packaged into a payment for a service 
     furnished on or after April 1, 2023, under the revised 
     payment system under this subsection, in lieu of calculation 
     of coinsurance and the amount of payment otherwise applicable 
     under this subsection, the provisions of section 1847A(i)(5) 
     and paragraph (1)(EE) of subsection (a), shall, as determined 
     appropriate by the Secretary, apply under this subsection in 
     the same manner as such provisions of section 1847A(i)(5) and 
     subsection (a) apply under such section and subsection.''; 
     and
       (3) in subsection (t)(8), by adding at the end the 
     following new subparagraph:
       ``(F) Part b rebatable drugs.--In the case of a part B 
     rebatable drug (as defined in paragraph (2) of section 
     1847A(i), except if such drug does not have a copayment 
     amount as a result of application of subparagraph (E)) for 
     which payment under this part is not packaged into a payment 
     for a covered OPD service (or group of services) furnished on 
     or after April 1, 2023, and the payment for such drug under 
     this subsection is the same as the amount for a calendar 
     quarter under paragraph (3)(A)(ii)(I) of section 1847A(i), 
     under the system under this subsection, in lieu of 
     calculation of the copayment amount and the amount of payment 
     otherwise applicable under this subsection (other than the 
     application of the limitation described in subparagraph (C)), 
     the provisions of section 1847A(i)(5) and paragraph (1)(EE) 
     of subsection (a), shall, as determined appropriate by the 
     Secretary, apply under this subsection in the same manner as 
     such provisions of section 1847A(i)(5) and subsection (a) 
     apply under such section and subsection.''.
       (c) Conforming Amendments.--
       (1) To part b asp calculation.--Section 1847A(c)(3) of the 
     Social Security Act (42 U.S.C. 1395w-3a(c)(3)) is amended by 
     inserting ``subsection (i) or'' before ``section 1927''.
       (2) Excluding part b drug inflation rebate from best 
     price.--Section 1927(c)(1)(C)(ii)(I) of the Social Security 
     Act (42 U.S.C. 1396r-8(c)(1)(C)(ii)(I)) is amended by 
     inserting ``or section 1847A(i)'' after ``this section''.
       (3) Coordination with medicaid rebate information 
     disclosure.--Section 1927(b)(3)(D)(i) of the Social Security 
     Act (42 U.S.C. 1396r-8(b)(3)(D)(i)) is amended by inserting 
     ``and the rebate'' after ``the payment amount''.
       (4) Excluding part b drug inflation rebates from average 
     manufacturer price.--Section 1927(k)(1)(B)(i) of the Social 
     Security Act (42 U.S.C. 1396r-8(k)(1)(B)(i)), as amended by 
     section 11001(b)(3), is amended--
       (A) in subclause (V), by striking ``and'' at the end;
       (B) in subclause (VI), by striking the period at the end 
     and inserting a semicolon; and
       (C) by adding at the end the following new subclause:

       ``(VII) rebates paid by manufacturers under section 
     1847A(i); and''.

       (d) Funding.--In addition to amounts otherwise available, 
     there are appropriated to the Centers for Medicare & Medicaid 
     Services, out of any money in the Treasury not otherwise 
     appropriated, $80,000,000 for fiscal year 2022, including 
     $12,500,000 to carry out the provisions of, including the 
     amendments made by, this section in fiscal year 2022, and 
     $7,500,000 to carry out the provisions of, including the 
     amendments made by, this section in each of fiscal years 2023 
     through 2031, to remain available until expended.

     SEC. 11102. MEDICARE PART D REBATE BY MANUFACTURERS.

       (a) In General.--Part D of title XVIII of the Social 
     Security Act is amended by inserting after section 1860D-14A 
     (42 U.S.C. 1395w-114a) the following new section:

     ``SEC. 1860D-14B. MANUFACTURER REBATE FOR CERTAIN DRUGS WITH 
                   PRICES INCREASING FASTER THAN INFLATION.

       ``(a) Requirements.--
       ``(1) Secretarial provision of information.--Not later than 
     9 months after the end of each applicable period (as defined 
     in subsection (g)(7)), subject to paragraph (3), the 
     Secretary shall, for each part D rebatable drug, report to 
     each manufacturer of such part D rebatable drug the following 
     for such period:
       ``(A) The amount (if any) of the excess annual manufacturer 
     price increase described in subsection (b)(1)(A)(ii) for each 
     dosage form and strength with respect to such drug and 
     period.
       ``(B) The rebate amount specified under subsection (b) for 
     each dosage form and strength with respect to such drug and 
     period.
       ``(2) Manufacturer requirements.--For each applicable 
     period, the manufacturer of a part D rebatable drug, for each 
     dosage form and strength with respect to such drug, not later 
     than 30 days after the date of receipt from the Secretary of 
     the information described in paragraph (1) for such period, 
     shall provide to the Secretary a rebate that is equal to the 
     amount specified in subsection (b) for such dosage form and 
     strength with respect to such drug for such period.
       ``(3) Transition rule for reporting.--The Secretary may, 
     for each rebatable covered part D drug, delay the timeframe 
     for reporting the information and rebate amount described in 
     subparagraphs (A) and (B) of such paragraph for the 
     applicable periods beginning October 1, 2022, and October 1, 
     2023, until not later than December 31, 2025.
       ``(b) Rebate Amount.--
       ``(1) In general.--
       ``(A) Calculation.--For purposes of this section, the 
     amount specified in this subsection for a dosage form and 
     strength with respect to a part D rebatable drug and 
     applicable period is, subject to subparagraph (C), paragraph 
     (5)(B), and paragraph (6), the estimated amount equal to the 
     product of--
       ``(i) subject to subparagraph (B) of this paragraph, the 
     total number of units that are used to calculate the average 
     manufacturer price of such dosage form and strength with 
     respect to such part D rebatable drug, as reported by the 
     manufacturer of such drug under section 1927 for each month, 
     with respect to such period; and
       ``(ii) the amount (if any) by which--

       ``(I) the annual manufacturer price (as determined in 
     paragraph (2)) paid for such dosage form and strength with 
     respect to such part D rebatable drug for the period; exceeds
       ``(II) the inflation-adjusted payment amount determined 
     under paragraph (3) for such dosage form and strength with 
     respect to such part D rebatable drug for the period.

       ``(B) Excluded units.--For purposes of subparagraph (A)(i), 
     the Secretary shall exclude from the total number of units 
     for a dosage form and strength with respect to a part D 
     rebatable drug, with respect to an applicable period, the 
     following:
       ``(i) Units of each dosage form and strength of such part D 
     rebatable drug for which payment was made under a State plan 
     under title XIX (or waiver of such plan), as reported by 
     States under section 1927(b)(2)(A).
       ``(ii) Units of each dosage form and strength of such part 
     D rebatable drug for which a rebate is paid under section 
     1847A(i).
       ``(C) Reduction or waiver for shortages and severe supply 
     chain disruptions.--The Secretary shall reduce or waive the 
     amount under subparagraph (A) with respect to a part D 
     rebatable drug and an applicable period--
       ``(i) in the case of a part D rebatable drug that is 
     described as currently in shortage on the shortage list in 
     effect under section 506E of the Federal Food, Drug, and 
     Cosmetic Act at any point during the applicable period;
       ``(ii) in the case of a generic part D rebatable drug 
     (described in subsection (g)(1)(C)(ii)) or a biosimilar 
     (defined as a biological product licensed under section 
     351(k) of the Public Health Service Act), when the Secretary 
     determines there is a severe supply chain disruption during 
     the applicable period, such as that caused by a natural 
     disaster or other unique or unexpected event; and
       ``(iii) in the case of a generic Part D rebatable drug (as 
     so described), if the Secretary determines that without such 
     reduction or waiver, the drug is likely to be described as in 
     shortage on such shortage list during a subsequent applicable 
     period.
       ``(2) Determination of annual manufacturer price.--The 
     annual manufacturer price determined under this paragraph for 
     a dosage form and strength, with respect to a part D 
     rebatable drug and an applicable period, is the sum of the 
     products of--
       ``(A) the average manufacturer price (as defined in 
     subsection (g)(6)) of such dosage form and strength, as 
     calculated for a unit of such drug, with respect to each of 
     the calendar quarters of such period; and
       ``(B) the ratio of--
       ``(i) the total number of units of such dosage form and 
     strength reported under section 1927 with respect to each 
     such calendar quarter of such period; to
       ``(ii) the total number of units of such dosage form and 
     strength reported under section 1927 with respect to such 
     period, as determined by the Secretary.
       ``(3) Determination of inflation-adjusted payment amount.--
     The inflation-adjusted payment amount determined under this 
     paragraph for a dosage form and strength with respect to a 
     part D rebatable drug for an applicable period, subject to 
     paragraph (5), is--
       ``(A) the benchmark period manufacturer price determined 
     under paragraph (4) for

[[Page S3937]]

     such dosage form and strength with respect to such drug and 
     period; increased by
       ``(B) the percentage by which the applicable period CPI-U 
     (as defined in subsection (g)(5)) for the period exceeds the 
     benchmark period CPI-U (as defined in subsection (g)(4)).
       ``(4) Determination of benchmark period manufacturer 
     price.--The benchmark period manufacturer price determined 
     under this paragraph for a dosage form and strength, with 
     respect to a part D rebatable drug and an applicable period, 
     is the sum of the products of--
       ``(A) the average manufacturer price (as defined in 
     subsection (g)(6)) of such dosage form and strength, as 
     calculated for a unit of such drug, with respect to each of 
     the calendar quarters of the payment amount benchmark period 
     (as defined in subsection (g)(3)); and
       ``(B) the ratio of--
       ``(i) the total number of units reported under section 1927 
     of such dosage form and strength with respect to each such 
     calendar quarter of such payment amount benchmark period; to
       ``(ii) the total number of units reported under section 
     1927 of such dosage form and strength with respect to such 
     payment amount benchmark period.
       ``(5) Special treatment of certain drugs and exemption.--
       ``(A) Subsequently approved drugs.--In the case of a part D 
     rebatable drug first approved or licensed by the Food and 
     Drug Administration after October 1, 2021, subparagraphs (A) 
     and (B) of paragraph (4) shall be applied as if the term 
     `payment amount benchmark period' were defined under 
     subsection (g)(3) as the first calendar year beginning after 
     the day on which the drug was first marketed and subparagraph 
     (B) of paragraph (3) shall be applied as if the term 
     `benchmark period CPI-U' were defined under subsection (g)(4) 
     as if the reference to `January 2021' under such subsection 
     were a reference to `January of the first year beginning 
     after the date on which the drug was first marketed'.
       ``(B) Treatment of new formulations.--
       ``(i) In general.--In the case of a part D rebatable drug 
     that is a line extension of a part D rebatable drug that is 
     an oral solid dosage form, the Secretary shall establish a 
     formula for determining the rebate amount under paragraph (1) 
     and the inflation adjusted payment amount under paragraph (3) 
     with respect to such part D rebatable drug and an applicable 
     period, consistent with the formula applied under subsection 
     (c)(2)(C) of section 1927 for determining a rebate obligation 
     for a rebate period under such section.
       ``(ii) Line extension defined.--In this subparagraph, the 
     term `line extension' means, with respect to a part D 
     rebatable drug, a new formulation of the drug, such as an 
     extended release formulation, but does not include an abuse-
     deterrent formulation of the drug (as determined by the 
     Secretary), regardless of whether such abuse-deterrent 
     formulation is an extended release formulation.
       ``(C) Selected drugs.--In the case of a part D rebatable 
     drug that is a selected drug (as defined in section 1192(c)) 
     with respect to a price applicability period (as defined in 
     section 1191(b)(2)), in the case such drug is no longer 
     considered to be a selected drug under section 1192(c), for 
     each applicable period (as defined under subsection (g)(7)) 
     beginning after the price applicability period with respect 
     to such drug, subparagraphs (A) and (B) of paragraph (4) 
     shall be applied as if the term `payment amount benchmark 
     period' were defined under subsection (g)(3) as the last year 
     beginning during such price applicability period with respect 
     to such selected drug and subparagraph (B) of paragraph (3) 
     shall be applied as if the term `benchmark period CPI-U' were 
     defined under subsection (g)(4) as if the reference to 
     `January 2021' under such subsection were a reference to 
     `January of the last year beginning during such price 
     applicability period with respect to such drug'.
       ``(6) Reconciliation in case of revised amp reports.--The 
     Secretary shall provide for a method and process under which, 
     in the case of a manufacturer of a part D rebatable drug that 
     submits revisions to information submitted under section 1927 
     by the manufacturer with respect to such drug, the Secretary 
     determines, pursuant to such revisions, adjustments, if any, 
     to the calculation of the amount specified in this subsection 
     for a dosage form and strength with respect to such part D 
     rebatable drug and an applicable period and reconciles any 
     overpayments or underpayments in amounts paid as rebates 
     under this subsection. Any identified underpayment shall be 
     rectified by the manufacturer not later than 30 days after 
     the date of receipt from the Secretary of information on such 
     underpayment.
       ``(c) Rebate Deposits.--Amounts paid as rebates under 
     subsection (b) shall be deposited into the Medicare 
     Prescription Drug Account in the Federal Supplementary 
     Medical Insurance Trust Fund established under section 1841.
       ``(d) Information.--For purposes of carrying out this 
     section, the Secretary shall use information submitted by 
     manufacturers under section 1927(b)(3) and information 
     submitted by States under section 1927(b)(2)(A).
       ``(e) Civil Money Penalty.--If a manufacturer of a part D 
     rebatable drug has failed to comply with the requirement 
     under subsection (a)(2) with respect to such drug for an 
     applicable period, the manufacturer shall be subject to, in 
     accordance with a process established by the Secretary 
     pursuant to regulations, a civil money penalty in an amount 
     equal to 125 percent of the amount specified in subsection 
     (b) for such drug for such period. The provisions of section 
     1128A (other than subsections (a) (with respect to amounts of 
     penalties or additional assessments) and (b)) shall apply to 
     a civil money penalty under this subsection in the same 
     manner as such provisions apply to a penalty or proceeding 
     under section 1128A(a).
       ``(f) No Administrative or Judicial Review.--There shall be 
     no administrative or judicial review of the following:
       ``(1) The determination of units under this section.
       ``(2) The determination of whether a drug is a part D 
     rebatable drug under this section.
       ``(3) The calculation of the rebate amount under this 
     section.
       ``(g) Definitions.--In this section:
       ``(1) Part d rebatable drug.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the term `part D rebatable drug' means, with respect to an 
     applicable period, a drug or biological described in 
     subparagraph (C) that would (without application of this 
     section) be a covered part D drug (as such term is defined 
     under section 1860D-2(e)).
       ``(B) Exclusion.--
       ``(i) In general.--Such term shall, with respect to an 
     applicable period, not include a drug or biological if the 
     average annual total cost under this part for such period per 
     individual who uses such a drug or biological, as determined 
     by the Secretary, is less than, subject to clause (ii), $100, 
     as determined by the Secretary using the most recent data 
     available or, if data is not available, as estimated by the 
     Secretary.
       ``(ii) Increase.--The dollar amount applied under clause 
     (i)--

       ``(I) for the applicable period beginning October 1, 2023, 
     shall be the dollar amount specified under such clause for 
     the applicable period beginning October 1, 2022, increased by 
     the percentage increase in the consumer price index for all 
     urban consumers (United States city average) for the 12-month 
     period beginning with October of 2023; and
       ``(II) for a subsequent applicable period, shall be the 
     dollar amount specified in this clause for the previous 
     applicable period, increased by the percentage increase in 
     the consumer price index for all urban consumers (United 
     States city average) for the 12-month period beginning with 
     October of the previous period.

     Any dollar amount specified under this clause that is not a 
     multiple of $10 shall be rounded to the nearest multiple of 
     $10.
       ``(C) Drug or biological described.--A drug or biological 
     described in this subparagraph is a drug or biological that, 
     as of the first day of the applicable period involved, is--
       ``(i) a drug approved under a new drug application under 
     section 505(c) of the Federal Food, Drug, and Cosmetic Act;
       ``(ii) a drug approved under an abbreviated new drug 
     application under section 505(j) of the Federal Food, Drug, 
     and Cosmetic Act, in the case where--

       ``(I) the reference listed drug approved under section 
     505(c) of the Federal Food, Drug, and Cosmetic Act, including 
     any `authorized generic drug' (as that term is defined in 
     section 505(t)(3) of the Federal Food, Drug, and Cosmetic 
     Act), is not being marketed, as identified in the Food and 
     Drug Administration's National Drug Code Directory;
       ``(II) there is no other drug approved under section 505(j) 
     of the Federal Food, Drug, and Cosmetic Act that is rated as 
     therapeutically equivalent (under the Food and Drug 
     Administration's most recent publication of `Approved Drug 
     Products with Therapeutic Equivalence Evaluations') and that 
     is being marketed, as identified in the Food and Drug 
     Administration's National Drug Code Directory;
       ``(III) the manufacturer is not a `first applicant' during 
     the `180-day exclusivity period', as those terms are defined 
     in section 505(j)(5)(B)(iv) of the Federal Food, Drug, and 
     Cosmetic Act; and
       ``(IV) the manufacturer is not a `first approved applicant' 
     for a competitive generic therapy, as that term is defined in 
     section 505(j)(5)(B)(v) of the Federal Food, Drug, and 
     Cosmetic Act; or

       ``(iii) a biological licensed under section 351 of the 
     Public Health Service Act.
       ``(2) Unit.--The term `unit' means, with respect to a part 
     D rebatable drug, the lowest dispensable amount (such as a 
     capsule or tablet, milligram of molecules, or grams) of the 
     part D rebatable drug, as reported under section 1927.
       ``(3) Payment amount benchmark period.--The term `payment 
     amount benchmark period' means the period beginning January 
     1, 2021, and ending in the month immediately prior to October 
     1, 2021.
       ``(4) Benchmark period cpi-u.--The term `benchmark period 
     CPI-U' means the consumer price index for all urban consumers 
     (United States city average) for January 2021.
       ``(5) Applicable period cpi-u.--The term `applicable period 
     CPI-U' means, with respect to an applicable period, the 
     consumer price index for all urban consumers (United States 
     city average) for the first month of such applicable period.
       ``(6) Average manufacturer price.--The term `average 
     manufacturer price' has the meaning, with respect to a part D 
     rebatable drug of a manufacturer, given such term in section 
     1927(k)(1), with respect to a covered outpatient drug of a 
     manufacturer for a rebate period under section 1927.

[[Page S3938]]

       ``(7) Applicable period.--The term `applicable period' 
     means a 12-month period beginning with October 1 of a year 
     (beginning with October 1, 2022).
       ``(h) Implementation for 2022, 2023, and 2024.--The 
     Secretary shall implement this section for 2022, 2023, and 
     2024 by program instruction or other forms of program 
     guidance.''.
       (b) Conforming Amendments.--
       (1) To part b asp calculation.--Section 1847A(c)(3) of the 
     Social Security Act (42 U.S.C. 1395w-3a(c)(3)), as amended by 
     section 11101(c)(1), is amended by striking ``subsection (i) 
     or section 1927'' and inserting ``subsection (i), section 
     1927, or section 1860D-14B''.
       (2) Excluding part d drug inflation rebate from best 
     price.--Section 1927(c)(1)(C)(ii)(I) of the Social Security 
     Act (42 U.S.C. 1396r-8(c)(1)(C)(ii)(I)), as amended by 
     section 11101(c)(2), is amended by striking ``or section 
     1847A(i)'' and inserting ``, section 1847A(i), or section 
     1860D-14B''.
       (3) Coordination with medicaid rebate information 
     disclosure.--Section 1927(b)(3)(D)(i) of the Social Security 
     Act (42 U.S.C. 1396r-8(b)(3)(D)(i)), as amended by section 
     11101(c)(3), is amended by striking ``or to carry out section 
     1847B'' and inserting ``or to carry out section 1847B or 
     section 1860D-14B''.
       (4) Excluding part d drug inflation rebates from average 
     manufacturer price.--Section 1927(k)(1)(B)(i) of the Social 
     Security Act (42 U.S.C. 1396r-8(k)(1)(B)(i)), as amended by 
     section 11001(b)(3) and section 11101(c)(4), is amended by 
     adding at the end the following new subclause:
       (A) in subclause (VI), by striking ``and'' at the end;
       (B) in subclause (VII), by striking the period at the end 
     and inserting a semicolon; and
       (C) by adding at the end the following new subclause:

       ``(VIII) rebates paid by manufacturers under section 1860D-
     14B.''.

       (c) Funding.--In addition to amounts otherwise available, 
     there are appropriated to the Centers for Medicare & Medicaid 
     Services, out of any money in the Treasury not otherwise 
     appropriated, $80,000,000 for fiscal year 2022, including 
     $12,500,000 to carry out the provisions of, including the 
     amendments made by, this section in fiscal year 2022, and 
     $7,500,000 to carry out the provisions of, including the 
     amendments made by, this section in each of fiscal years 2023 
     through 2031, to remain available until expended.

PART 3--PART D IMPROVEMENTS AND MAXIMUM OUT-OF-POCKET CAP FOR MEDICARE 
                             BENEFICIARIES

     SEC. 11201. MEDICARE PART D BENEFIT REDESIGN.

       (a) Benefit Structure Redesign.--Section 1860D-2(b) of the 
     Social Security Act (42 U.S.C. 1395w-102(b)) is amended--
       (1) in paragraph (2)--
       (A) in subparagraph (A), in the matter preceding clause 
     (i), by inserting ``for a year preceding 2025 and for costs 
     above the annual deductible specified in paragraph (1) and up 
     to the annual out-of-pocket threshold specified in paragraph 
     (4)(B) for 2025 and each subsequent year'' after ``paragraph 
     (3)'';
       (B) in subparagraph (C)--
       (i) in clause (i), in the matter preceding subclause (I), 
     by inserting ``for a year preceding 2025,'' after ``paragraph 
     (4),''; and
       (ii) in clause (ii)(III), by striking ``and each subsequent 
     year'' and inserting ``through 2024''; and
       (C) in subparagraph (D)--
       (i) in clause (i)--

       (I) in the matter preceding subclause (I), by inserting 
     ``for a year preceding 2025,'' after ``paragraph (4),''; and
       (II) in subclause (I)(bb), by striking ``a year after 
     2018'' and inserting ``each of years 2019 through 2024''; and

       (ii) in clause (ii)(V), by striking ``2019 and each 
     subsequent year'' and inserting ``each of years 2019 through 
     2024'';
       (2) in paragraph (3)(A)--
       (A) in the matter preceding clause (i), by inserting ``for 
     a year preceding 2025,'' after ``and (4),''; and
       (B) in clause (ii), by striking ``for a subsequent year'' 
     and inserting ``for each of years 2007 through 2024''; and
       (3) in paragraph (4)--
       (A) in subparagraph (A)--
       (i) in clause (i)--

       (I) by redesignating subclauses (I) and (II) as items (aa) 
     and (bb), respectively, and moving the margin of each such 
     redesignated item 2 ems to the right;
       (II) in the matter preceding item (aa), as redesignated by 
     subclause (I), by striking ``is equal to the greater of--'' 
     and inserting ``is equal to--
       ``(I) for a year preceding 2024, the greater of--'';
       (III) by striking the period at the end of item (bb), as 
     redesignated by subclause (I), and inserting ``; and''; and
       (IV) by adding at the end the following:
       ``(II) for 2024 and each succeeding year, $0.''; and

       (ii) in clause (ii)--

       (I) by striking ``clause (i)(I)'' and inserting ``clause 
     (i)(I)(aa)''; and
       (II) by adding at the end the following new sentence: ``The 
     Secretary shall continue to calculate the dollar amounts 
     specified in clause (i)(I)(aa), including with the adjustment 
     under this clause, after 2023 for purposes of section 1860D-
     14(a)(1)(D)(iii).'';

       (B) in subparagraph (B)--
       (i) in clause (i)--

       (I) in subclause (V), by striking ``or'' at the end;
       (II) in subclause (VI)--

       (aa) by striking ``for a subsequent year'' and inserting 
     ``for each of years 2021 through 2024''; and
       (bb) by striking the period at the end and inserting a 
     semicolon; and

       (III) by adding at the end the following new subclauses:
       ``(VII) for 2025, is equal to $2,000; or
       ``(VIII) for a subsequent year, is equal to the amount 
     specified in this subparagraph for the previous year, 
     increased by the annual percentage increase described in 
     paragraph (6) for the year involved.''; and

       (ii) in clause (ii), by striking ``clause (i)(II)'' and 
     inserting ``clause (i)'';
       (C) in subparagraph (C)--
       (i) in clause (i), by striking ``and for amounts'' and 
     inserting ``and, for a year preceding 2025, for amounts''; 
     and
       (ii) in clause (iii)--

       (I) by redesignating subclauses (I) through (IV) as items 
     (aa) through (dd) and indenting appropriately;
       (II) by striking ``if such costs are borne or paid'' and 
     inserting ``if such costs--
       ``(I) are borne or paid--''; and
       (III) in item (dd), by striking the period at the end and 
     inserting ``; or''; and
       (IV) by adding at the end the following new subclause:
       ``(II) for 2025 and subsequent years, are reimbursed 
     through insurance, a group health plan, or certain other 
     third party payment arrangements, but not including the 
     coverage provided by a prescription drug plan or an MA-PD 
     plan that is basic prescription drug coverage (as defined in 
     subsection (a)(3)) or any payments by a manufacturer under 
     the manufacturer discount program under section 1860D-14C.''; 
     and

       (D) in subparagraph (E), by striking ``In applying'' and 
     inserting ``For each of years 2011 through 2024, in 
     applying''.
       (b) Reinsurance Payment Amount.--Section 1860D-15(b) of the 
     Social Security Act (42 U.S.C. 1395w-115(b)) is amended--
       (1) in paragraph (1)--
       (A) by striking ``equal to 80 percent'' and inserting 
     ``equal to--
       ``(A) for a year preceding 2025, 80 percent'';
       (B) in subparagraph (A), as added by subparagraph (A), by 
     striking the period at the end and inserting ``; and''; and
       (C) by adding at the end the following new subparagraph:
       ``(B) for 2025 and each subsequent year, the sum of--
       ``(i) with respect to applicable drugs (as defined in 
     section 1860D-14C(g)(2)), an amount equal to 20 percent of 
     such allowable reinsurance costs attributable to that portion 
     of gross covered prescription drug costs as specified in 
     paragraph (3) incurred in the coverage year after such 
     individual has incurred costs that exceed the annual out-of-
     pocket threshold specified in section 1860D-2(b)(4)(B); and
       ``(ii) with respect to covered part D drugs that are not 
     applicable drugs (as so defined), an amount equal to 40 
     percent of such allowable reinsurance costs attributable to 
     that portion of gross covered prescription drug costs as 
     specified in paragraph (3) incurred in the coverage year 
     after such individual has incurred costs that exceed the 
     annual out-of-pocket threshold specified in section 1860D-
     2(b)(4)(B).'';
       (2) in paragraph (2)--
       (A) by striking ``COSTS.--For purposes'' and inserting 
     ``Costs.--
       ``(A) In general.--Subject to subparagraph (B), for 
     purposes''; and
       (B) by adding at the end the following new subparagraph:
       ``(B) Inclusion of manufacturer discounts on applicable 
     drugs.--For purposes of applying subparagraph (A), the term 
     `allowable reinsurance costs' shall include the portion of 
     the negotiated price (as defined in section 1860D-14C(g)(6)) 
     of an applicable drug (as defined in section 1860D-14C(g)(2)) 
     that was paid by a manufacturer under the manufacturer 
     discount program under section 1860D-14C.''; and
       (3) in paragraph (3)--
       (A) in the first sentence, by striking ``For purposes'' and 
     inserting ``Subject to paragraph (2)(B), for purposes''; and
       (B) in the second sentence, by inserting ``(or, with 
     respect to 2025 and subsequent years, in the case of an 
     applicable drug, as defined in section 1860D-14C(g)(2), by a 
     manufacturer)'' after ``by the individual or under the 
     plan''.
       (c) Manufacturer Discount Program.--
       (1) In general.--Part D of title XVIII of the Social 
     Security Act (42 U.S.C. 1395w-101 through 42 U.S.C. 1395w-
     153), as amended by section 11102, is amended by inserting 
     after section 1860D-14B the following new sections:

     ``SEC. 1860D-14C. MANUFACTURER DISCOUNT PROGRAM.

       ``(a) Establishment.--The Secretary shall establish a 
     manufacturer discount program (in this section referred to as 
     the `program'). Under the program, the Secretary shall enter 
     into agreements described in subsection (b) with 
     manufacturers and provide for the performance of the duties 
     described in subsection (c).
       ``(b) Terms of Agreement.--
       ``(1) In general.--
       ``(A) Agreement.--An agreement under this section shall 
     require the manufacturer to provide, in accordance with this 
     section, discounted prices for applicable drugs of the 
     manufacturer that are dispensed to applicable beneficiaries 
     on or after January 1, 2025.

[[Page S3939]]

       ``(B) Clarification.--Nothing in this section shall be 
     construed as affecting--
       ``(i) the application of a coinsurance of 25 percent of the 
     negotiated price, as applied under paragraph (2)(A) of 
     section 1860D-2(b), for costs described in such paragraph; or
       ``(ii) the application of the copayment amount described in 
     paragraph (4)(A) of such section, with respect to costs 
     described in such paragraph.
       ``(C) Timing of agreement.--
       ``(i) Special rule for 2025.--In order for an agreement 
     with a manufacturer to be in effect under this section with 
     respect to the period beginning on January 1, 2025, and 
     ending on December 31, 2025, the manufacturer shall enter 
     into such agreement not later than March 1, 2024.
       ``(ii) 2026 and subsequent years.--In order for an 
     agreement with a manufacturer to be in effect under this 
     section with respect to plan year 2026 or a subsequent plan 
     year, the manufacturer shall enter into such agreement not 
     later than a calendar quarter or semi-annual deadline 
     established by the Secretary.
       ``(2) Provision of appropriate data.--Each manufacturer 
     with an agreement in effect under this section shall collect 
     and have available appropriate data, as determined by the 
     Secretary, to ensure that it can demonstrate to the Secretary 
     compliance with the requirements under the program.
       ``(3) Compliance with requirements for administration of 
     program.--Each manufacturer with an agreement in effect under 
     this section shall comply with requirements imposed by the 
     Secretary, as applicable, for purposes of administering the 
     program, including any determination under subparagraph (A) 
     of subsection (c)(1) or procedures established under such 
     subsection (c)(1).
       ``(4) Length of agreement.--
       ``(A) In general.--An agreement under this section shall be 
     effective for an initial period of not less than 12 months 
     and shall be automatically renewed for a period of not less 
     than 1 year unless terminated under subparagraph (B).
       ``(B) Termination.--
       ``(i) By the secretary.--The Secretary shall provide for 
     termination of an agreement under this section for a knowing 
     and willful violation of the requirements of the agreement or 
     other good cause shown. Such termination shall not be 
     effective earlier than 30 days after the date of notice to 
     the manufacturer of such termination. The Secretary shall 
     provide, upon request, a manufacturer with a hearing 
     concerning such a termination, and such hearing shall take 
     place prior to the effective date of the termination with 
     sufficient time for such effective date to be repealed if the 
     Secretary determines appropriate.
       ``(ii) By a manufacturer.--A manufacturer may terminate an 
     agreement under this section for any reason. Any such 
     termination shall be effective, with respect to a plan year--

       ``(I) if the termination occurs before January 31 of a plan 
     year, as of the day after the end of the plan year; and
       ``(II) if the termination occurs on or after January 31 of 
     a plan year, as of the day after the end of the succeeding 
     plan year.

       ``(iii) Effectiveness of termination.--Any termination 
     under this subparagraph shall not affect discounts for 
     applicable drugs of the manufacturer that are due under the 
     agreement before the effective date of its termination.
       ``(5) Effective date of agreement.--An agreement under this 
     section shall take effect at the start of a calendar quarter 
     or another date specified by the Secretary.
       ``(c) Duties Described.--The duties described in this 
     subsection are the following:
       ``(1) Administration of program.--Administering the 
     program, including--
       ``(A) the determination of the amount of the discounted 
     price of an applicable drug of a manufacturer;
       ``(B) the establishment of procedures to ensure that, not 
     later than the applicable number of calendar days after the 
     dispensing of an applicable drug by a pharmacy or mail order 
     service, the pharmacy or mail order service is reimbursed for 
     an amount equal to the difference between--
       ``(i) the negotiated price of the applicable drug; and
       ``(ii) the discounted price of the applicable drug;
       ``(C) the establishment of procedures to ensure that the 
     discounted price for an applicable drug under this section is 
     applied before any coverage or financial assistance under 
     other health benefit plans or programs that provide coverage 
     or financial assistance for the purchase or provision of 
     prescription drug coverage on behalf of applicable 
     beneficiaries as specified by the Secretary; and
       ``(D) providing a reasonable dispute resolution mechanism 
     to resolve disagreements between manufacturers, prescription 
     drug plans and MA-PD plans, and the Secretary.
       ``(2) Monitoring compliance.--The Secretary shall monitor 
     compliance by a manufacturer with the terms of an agreement 
     under this section.
       ``(3) Collection of data from prescription drug plans and 
     ma-pd plans.--The Secretary may collect appropriate data from 
     prescription drug plans and MA-PD plans in a timeframe that 
     allows for discounted prices to be provided for applicable 
     drugs under this section.
       ``(d) Administration.--
       ``(1) In general.--Subject to paragraph (2), the Secretary 
     shall provide for the implementation of this section, 
     including the performance of the duties described in 
     subsection (c).
       ``(2) Limitation.--In providing for the implementation of 
     this section, the Secretary shall not receive or distribute 
     any funds of a manufacturer under the program.
       ``(e) Enforcement.--
       ``(1) Audits.--Each manufacturer with an agreement in 
     effect under this section shall be subject to periodic audit 
     by the Secretary.
       ``(2) Civil money penalty.--
       ``(A) In general.--A manufacturer that fails to provide 
     discounted prices for applicable drugs of the manufacturer 
     dispensed to applicable beneficiaries in accordance with such 
     agreement shall be subject to a civil money penalty for each 
     such failure in an amount the Secretary determines is equal 
     to the sum of--
       ``(i) the amount that the manufacturer would have paid with 
     respect to such discounts under the agreement, which will 
     then be used to pay the discounts which the manufacturer had 
     failed to provide; and
       ``(ii) 25 percent of such amount.
       ``(B) Application.--The provisions of section 1128A (other 
     than subsections (a) and (b)) shall apply to a civil money 
     penalty under this paragraph in the same manner as such 
     provisions apply to a penalty or proceeding under section 
     1128A(a).
       ``(f) Clarification Regarding Availability of Other Covered 
     Part D Drugs.--Nothing in this section shall prevent an 
     applicable beneficiary from purchasing a covered part D drug 
     that is not an applicable drug (including a generic drug or a 
     drug that is not on the formulary of the prescription drug 
     plan or MA-PD plan that the applicable beneficiary is 
     enrolled in).
       ``(g) Definitions.--In this section:
       ``(1) Applicable beneficiary.--The term `applicable 
     beneficiary' means an individual who, on the date of 
     dispensing a covered part D drug--
       ``(A) is enrolled in a prescription drug plan or an MA-PD 
     plan;
       ``(B) is not enrolled in a qualified retiree prescription 
     drug plan; and
       ``(C) has incurred costs, as determined in accordance with 
     section 1860D-2(b)(4)(C), for covered part D drugs in the 
     year that exceed the annual deductible specified in section 
     1860D-2(b)(1).
       ``(2) Applicable drug.--The term `applicable drug', with 
     respect to an applicable beneficiary--
       ``(A) means a covered part D drug--
       ``(i) approved under a new drug application under section 
     505(c) of the Federal Food, Drug, and Cosmetic Act or, in the 
     case of a biologic product, licensed under section 351 of the 
     Public Health Service Act; and
       ``(ii)(I) if the PDP sponsor of the prescription drug plan 
     or the MA organization offering the MA-PD plan uses a 
     formulary, which is on the formulary of the prescription drug 
     plan or MA-PD plan that the applicable beneficiary is 
     enrolled in;
       ``(II) if the PDP sponsor of the prescription drug plan or 
     the MA organization offering the MA-PD plan does not use a 
     formulary, for which benefits are available under the 
     prescription drug plan or MA-PD plan that the applicable 
     beneficiary is enrolled in; or
       ``(III) is provided through an exception or appeal; and
       ``(B) does not include a selected drug (as referred to 
     under section 1192(c)) during a price applicability period 
     (as defined in section 1191(b)(2)) with respect to such drug.
       ``(3) Applicable number of calendar days.--The term 
     `applicable number of calendar days' means--
       ``(A) with respect to claims for reimbursement submitted 
     electronically, 14 days; and
       ``(B) with respect to claims for reimbursement submitted 
     otherwise, 30 days.
       ``(4) Discounted price.--
       ``(A) In general.--The term `discounted price' means, 
     subject to subparagraphs (B) and (C), with respect to an 
     applicable drug of a manufacturer dispensed during a year to 
     an applicable beneficiary--
       ``(i) who has not incurred costs, as determined in 
     accordance with section 1860D-2(b)(4)(C), for covered part D 
     drugs in the year that are equal to or exceed the annual out-
     of-pocket threshold specified in section 1860D-2(b)(4)(B)(i) 
     for the year, 90 percent of the negotiated price of such 
     drug; and
       ``(ii) who has incurred such costs, as so determined, in 
     the year that are equal to or exceed such threshold for the 
     year, 80 percent of the negotiated price of such drug.
       ``(B) Phase-in for certain drugs dispensed to lis 
     beneficiaries.--
       ``(i) In general.--In the case of an applicable drug of a 
     specified manufacturer (as defined in clause (ii)) that is 
     marketed as of the date of enactment of this subparagraph and 
     dispensed for an applicable beneficiary who is a subsidy 
     eligible individual (as defined in section 1860D-14(a)(3)), 
     the term `discounted price' means the specified LIS percent 
     (as defined in clause (iii)) of the negotiated price of the 
     applicable drug of the manufacturer.
       ``(ii) Specified manufacturer.--

       ``(I) In general.--In this subparagraph, subject to 
     subclause (II), the term `specified manufacturer' means a 
     manufacturer of an applicable drug for which, in 2021--

       ``(aa) the manufacturer had a coverage gap discount 
     agreement under section 1860D-14A;
       ``(bb) the total expenditures for all of the specified 
     drugs of the manufacturer covered by such agreement or 
     agreements for such year and covered under this part during 
     such year represented less than 1.0 percent of the

[[Page S3940]]

     total expenditures under this part for all covered Part D 
     drugs during such year; and
       ``(cc) the total expenditures for all of the specified 
     drugs of the manufacturer that are single source drugs and 
     biological products covered under part B during such year 
     represented less than 1.0 percent of the total expenditures 
     under part B for all drugs or biological products covered 
     under such part during such year.

       ``(II) Specified drugs.--

       ``(aa) In general.--For purposes of this clause, the term 
     `specified drug' means, with respect to a specified 
     manufacturer, for 2021, an applicable drug that is produced, 
     prepared, propagated, compounded, converted, or processed by 
     the manufacturer.
       ``(bb) Aggregation rule.--All persons treated as a single 
     employer under subsection (a) or (b) of section 52 of the 
     Internal Revenue Code of 1986 shall be treated as one 
     manufacturer for purposes of this subparagraph. For purposes 
     of making a determination pursuant to the previous sentence, 
     an agreement under this section shall require that a 
     manufacturer provide and attest to such information as 
     specified by the Secretary as necessary.

       ``(III) Limitation.--The term `specified manufacturer' 
     shall not include a manufacturer described in subclause (I) 
     if such manufacturer is acquired after 2021 by another 
     manufacturer that is not a specified manufacturer, effective 
     at the beginning of the plan year immediately following such 
     acquisition or, in the case of an acquisition before 2025, 
     effective January 1, 2025.

       ``(iii) Specified lis percent.--In this subparagraph, the 
     `specified LIS percent' means, with respect to a year--

       ``(I) for an applicable drug dispensed for an applicable 
     beneficiary described in clause (i) who has not incurred 
     costs, as determined in accordance with section 1860D-
     2(b)(4)(C), for covered part D drugs in the year that are 
     equal to or exceed the annual out-of-pocket threshold 
     specified in section 1860D-2(b)(4)(B)(i) for the year--

       ``(aa) for 2025, 99 percent;
       ``(bb) for 2026, 98 percent;
       ``(cc) for 2027, 95 percent;
       ``(dd) for 2028, 92 percent; and
       ``(ee) for 2029 and each subsequent year, 90 percent; and

       ``(II) for an applicable drug dispensed for an applicable 
     beneficiary described in clause (i) who has incurred costs, 
     as determined in accordance with section 1860D-2(b)(4)(C), 
     for covered part D drugs in the year that are equal to or 
     exceed the annual out-of-pocket threshold specified in 
     section 1860D-2(b)(4)(B)(i) for the year--

       ``(aa) for 2025, 99 percent;
       ``(bb) for 2026, 98 percent;
       ``(cc) for 2027, 95 percent;
       ``(dd) for 2028, 92 percent;
       ``(ee) for 2029, 90 percent;
       ``(ff) for 2030, 85 percent; and
       ``(gg) for 2031 and each subsequent year, 80 percent.
       ``(C) Phase-in for specified small manufacturers.--
       ``(i) In general.--In the case of an applicable drug of a 
     specified small manufacturer (as defined in clause (ii)) that 
     is marketed as of the date of enactment of this subparagraph 
     and dispensed for an applicable beneficiary, the term 
     `discounted price' means the specified small manufacturer 
     percent (as defined in clause (iii)) of the negotiated price 
     of the applicable drug of the manufacturer.
       ``(ii) Specified small manufacturer.--

       ``(I) In general.--In this subparagraph, subject to 
     subclause (III), the term `specified small manufacturer' 
     means a manufacturer of an applicable drug for which, in 
     2021--

       ``(aa) the manufacturer is a specified manufacturer (as 
     defined in subparagraph (B)(ii)); and
       ``(bb) the total expenditures under part D for any one of 
     the specified small manufacturer drugs of the manufacturer 
     that are covered by the agreement or agreements under section 
     1860D-14A of such manufacturer for such year and covered 
     under this part during such year are equal to or more than 80 
     percent of the total expenditures under this part for all 
     specified small manufacturer drugs of the manufacturer that 
     are covered by such agreement or agreements for such year and 
     covered under this part during such year.

       ``(II) Specified small manufacturer drugs.--

       ``(aa) In general.--For purposes of this clause, the term 
     `specified small manufacturer drugs' means, with respect to a 
     specified small manufacturer, for 2021, an applicable drug 
     that is produced, prepared, propagated, compounded, 
     converted, or processed by the manufacturer.
       ``(bb) Aggregation rule.--All persons treated as a single 
     employer under subsection (a) or (b) of section 52 of the 
     Internal Revenue Code of 1986 shall be treated as one 
     manufacturer for purposes of this subparagraph. For purposes 
     of making a determination pursuant to the previous sentence, 
     an agreement under this section shall require that a 
     manufacturer provide and attest to such information as 
     specified by the Secretary as necessary.

       ``(III) Limitation.--The term `specified small 
     manufacturer' shall not include a manufacturer described in 
     subclause (I) if such manufacturer is acquired after 2021 by 
     another manufacturer that is not a specified small 
     manufacturer, effective at the beginning of the plan year 
     immediately following such acquisition or, in the case of an 
     acquisition before 2025, effective January 1, 2025.

       ``(iii) Specified small manufacturer percent.--In this 
     subparagraph, the term `specified small manufacturer percent' 
     means, with respect to a year--

       ``(I) for an applicable drug dispensed for an applicable 
     beneficiary who has not incurred costs, as determined in 
     accordance with section 1860D-2(b)(4)(C), for covered part D 
     drugs in the year that are equal to or exceed the annual out-
     of-pocket threshold specified in section 1860D-2(b)(4)(B)(i) 
     for the year--

       ``(aa) for 2025, 99 percent;
       ``(bb) for 2026, 98 percent;
       ``(cc) for 2027, 95 percent;
       ``(dd) for 2028, 92 percent; and
       ``(ee) for 2029 and each subsequent year, 90 percent; and

       ``(II) for an applicable drug dispensed for an applicable 
     beneficiary who has incurred costs, as determined in 
     accordance with section 1860D-2(b)(4)(C), for covered part D 
     drugs in the year that are equal to or exceed the annual out-
     of-pocket threshold specified in section 1860D-2(b)(4)(B)(i) 
     for the year--

       ``(aa) for 2025, 99 percent;
       ``(bb) for 2026, 98 percent;
       ``(cc) for 2027, 95 percent;
       ``(dd) for 2028, 92 percent;
       ``(ee) for 2029, 90 percent;
       ``(ff) for 2030, 85 percent; and
       ``(gg) for 2031 and each subsequent year, 80 percent.
       ``(D) Total expenditures.--For purposes of this paragraph, 
     the term `total expenditures' includes, in the case of 
     expenditures with respect to part D, the total gross covered 
     prescription drug costs as defined in section 1860D-15(b)(3). 
     The term `total expenditures' excludes, in the case of 
     expenditures with respect to part B, expenditures for a drug 
     or biological that are bundled or packaged into the payment 
     for another service.
       ``(E) Special case for certain claims.--
       ``(i) Claims spanning deductible.--In the case where the 
     entire amount of the negotiated price of an individual claim 
     for an applicable drug with respect to an applicable 
     beneficiary does not fall above the annual deductible 
     specified in section 1860D-2(b)(1) for the year, the 
     manufacturer of the applicable drug shall provide the 
     discounted price under this section on only the portion of 
     the negotiated price of the applicable drug that falls above 
     such annual deductible.
       ``(ii) Claims spanning out-of-pocket threshold.--In the 
     case where the entire amount of the negotiated price of an 
     individual claim for an applicable drug with respect to an 
     applicable beneficiary does not fall entirely below or 
     entirely above the annual out-of-pocket threshold specified 
     in section 1860D-2(b)(4)(B)(i) for the year, the manufacturer 
     of the applicable drug shall provide the discounted price--

       ``(I) in accordance with subparagraph (A)(i) on the portion 
     of the negotiated price of the applicable drug that falls 
     below such threshold; and
       ``(II) in accordance with subparagraph (A)(ii) on the 
     portion of such price of such drug that falls at or above 
     such threshold.

       ``(5) Manufacturer.--The term `manufacturer' means any 
     entity which is engaged in the production, preparation, 
     propagation, compounding, conversion, or processing of 
     prescription drug products, either directly or indirectly by 
     extraction from substances of natural origin, or 
     independently by means of chemical synthesis, or by a 
     combination of extraction and chemical synthesis. Such term 
     does not include a wholesale distributor of drugs or a retail 
     pharmacy licensed under State law.
       ``(6) Negotiated price.--The term `negotiated price' has 
     the meaning given such term for purposes of section 1860D-
     2(d)(1)(B), and, with respect to an applicable drug, such 
     negotiated price shall include any dispensing fee and, if 
     applicable, any vaccine administration fee for the applicable 
     drug.
       ``(7) Qualified retiree prescription drug plan.--The term 
     `qualified retiree prescription drug plan' has the meaning 
     given such term in section 1860D-22(a)(2).

     ``SEC. 1860D-14D. SELECTED DRUG SUBSIDY PROGRAM.

       ``With respect to covered part D drugs that would be 
     applicable drugs (as defined in section 1860D-14C(g)(2)) but 
     for the application of subparagraph (B) of such section, the 
     Secretary shall provide a process whereby, in the case of an 
     applicable beneficiary (as defined in section 1860D-
     14C(g)(1)) who, with respect to a year, is enrolled in a 
     prescription drug plan or is enrolled in an MA-PD plan, has 
     not incurred costs that are equal to or exceed the annual 
     out-of-pocket threshold specified in section 1860D-
     2(b)(4)(B)(i), and is dispensed such a drug, the Secretary 
     (periodically and on a timely basis) provides the PDP sponsor 
     or the MA organization offering the plan, a subsidy with 
     respect to such drug that is equal to 10 percent of the 
     negotiated price (as defined in section 1860D-14C(g)(6)) of 
     such drug.''.
       (2) Sunset of medicare coverage gap discount program.--
     Section 1860D-14A of the Social Security Act (42 U.S.C. 
     1395w-114a) is amended--
       (A) in subsection (a), in the first sentence, by striking 
     ``The Secretary'' and inserting ``Subject to subsection (h), 
     the Secretary''; and
       (B) by adding at the end the following new subsection:
       ``(h) Sunset of Program.--

[[Page S3941]]

       ``(1) In general.--The program shall not apply with respect 
     to applicable drugs dispensed on or after January 1, 2025, 
     and, subject to paragraph (2), agreements under this section 
     shall be terminated as of such date.
       ``(2) Continued application for applicable drugs dispensed 
     prior to sunset.--The provisions of this section (including 
     all responsibilities and duties) shall continue to apply on 
     and after January 1, 2025, with respect to applicable drugs 
     dispensed prior to such date.''.
       (3) Selected drug subsidy payments from medicare 
     prescription drug account.--Section 1860D-16(b)(1) of the 
     Social Security Act (42 U.S.C. 1395w-116(b)(1)) is amended--
       (A) in subparagraph (C), by striking ``and'' at the end;
       (B) in subparagraph (D), by striking the period at the end 
     and inserting ``; and''; and
       (C) by adding at the end the following new subparagraph:
       ``(E) payments under section 1860D-14D (relating to 
     selected drug subsidy payments).''.
       (d) Medicare Part D Premium Stabilization.--
       (1) 2024 through 2029.--Section 1860D-13 of the Social 
     Security Act (42 U.S.C. 1395w-113) is amended--
       (A) in subsection (a)--
       (i) in paragraph (1)(A), by inserting ``or (8) (as 
     applicable)'' after ``paragraph (2)'';
       (ii) in paragraph (2), in the matter preceding subparagraph 
     (A), by striking ``The base'' and inserting ``Subject to 
     paragraph (8), the base'';
       (iii) in paragraph (7)--

       (I) in subparagraph (B)(ii), by inserting ``or (8) (as 
     applicable)'' after ``paragraph (2)''; and
       (II) in subparagraph (E)(i), by inserting ``or (8) (as 
     applicable)'' after ``paragraph (2)''; and

       (iv) by adding at the end the following new paragraph:
       ``(8) Premium stabilization.--
       ``(A) In general.--The base beneficiary premium under this 
     paragraph for a prescription drug plan for a month in 2024 
     through 2029 shall be computed as follows:
       ``(i) 2024.--The base beneficiary premium for a month in 
     2024 shall be equal to the lesser of--

       ``(I) the base beneficiary premium computed under paragraph 
     (2) for a month in 2023 increased by 6 percent; or
       ``(II) the base beneficiary premium computed under 
     paragraph (2) for a month in 2024 that would have applied if 
     this paragraph had not been enacted.

       ``(ii) 2025.--The base beneficiary premium for a month in 
     2025 shall be equal to the lesser of--

       ``(I) the base beneficiary premium computed under clause 
     (i) for a month in 2024 increased by 6 percent; or
       ``(II) the base beneficiary premium computed under 
     paragraph (2) for a month in 2025 that would have applied if 
     this paragraph had not been enacted.

       ``(iii) 2026.--The base beneficiary premium for a month in 
     2026 shall be equal to the lesser of--

       ``(I) the base beneficiary premium computed under clause 
     (ii) for a month in 2025 increased by 6 percent; or
       ``(II) the base beneficiary premium computed under 
     paragraph (2) for a month in 2026 that would have applied if 
     this paragraph had not been enacted.

       ``(iv) 2027.--The base beneficiary premium for a month in 
     2027 shall be equal to the lesser of--

       ``(I) the base beneficiary premium computed under clause 
     (iii) for a month in 2026 increased by 6 percent; or
       ``(II) the base beneficiary premium computed under 
     paragraph (2) for a month in 2027 that would have applied if 
     this paragraph had not been enacted.

       ``(v) 2028.--The base beneficiary premium for a month in 
     2028 shall be equal to the lesser of--

       ``(I) the base beneficiary premium computed under clause 
     (iv) for a month in 2027 increased by 6 percent; or
       ``(II) the base beneficiary premium computed under 
     paragraph (2) for a month in 2028 that would have applied if 
     this paragraph had not been enacted.

       ``(vi) 2029.--The base beneficiary premium for a month in 
     2029 shall be equal to the lesser of--

       ``(I) the base beneficiary premium computed under clause 
     (v) for a month in 2028 increased by 6 percent; or
       ``(II) the base beneficiary premium computed under 
     paragraph (2) for a month in 2029 that would have applied if 
     this paragraph had not been enacted.

       ``(B) Clarification regarding 2030 and subsequent years.--
     The base beneficiary premium for a month in 2030 or a 
     subsequent year shall be computed under paragraph (2) without 
     regard to this paragraph.''; and
       (B) in subsection (b)(3)(A)(ii), by striking ``subsection 
     (a)(2)'' and inserting ``paragraph (2) or (8) of subsection 
     (a) (as applicable)''.
       (2) Adjustment to beneficiary premium percentage for 2030 
     and subsequent years.--Section 1860D-13(a) of the Social 
     Security Act (42 U.S.C. 1395w-113(a)), as amended by 
     paragraph (1), is amended--
       (A) in paragraph (3)(A), by inserting ``(or, for 2030 and 
     each subsequent year, the percent specified under paragraph 
     (9))'' after ``25.5 percent''; and
       (B) by adding at the end the following new paragraph:
       ``(9) Percent specified.--
       ``(A) In general.--Subject to subparagraph (B), for 
     purposes of paragraph (3)(A), the percent specified under 
     this paragraph for 2030 and each subsequent year is the 
     percent that the Secretary determines is necessary to ensure 
     that the base beneficiary premium computed under paragraph 
     (2) for a month in 2030 is equal to the lesser of--
       ``(i) the base beneficiary premium computed under paragraph 
     (8)(A)(vi) for a month in 2029 increased by 6 percent; or
       ``(ii) the base beneficiary premium computed under 
     paragraph (2) for a month in 2030 that would have applied if 
     this paragraph had not been enacted.
       ``(B) Floor.--The percent specified under subparagraph (A) 
     may not be less than 20 percent.''.
       (3) Conforming amendments.--
       (A) Section 1854(b)(2)(B) of the Social Security Act 42 
     U.S.C. 1395w-24(b)(2)(B)) is amended by striking ``section 
     1860D-13(a)(2)'' and inserting ``paragraph (2) or (8) (as 
     applicable) of section 1860D-13(a)''.
       (B) Section 1860D-11(g)(6) of the Social Security Act (42 
     U.S.C. 1395w-111(g)(6)) is amended by inserting ``(or, for 
     2030 and each subsequent year, the percent specified under 
     section 1860D-13(a)(9))'' after ``25.5 percent''.
       (C) Section 1860D-13(a)(7)(B)(i) of the Social Security Act 
     (42 U.S.C. 1395w-113(a)(7)(B)(i)) is amended--
       (i) in subclause (I), by inserting ``(or, for 2030 and each 
     subsequent year, the percent specified under paragraph (9))'' 
     after ``25.5 percent''; and
       (ii) in subclause (II), by inserting ``(or, for 2030 and 
     each subsequent year, the percent specified under paragraph 
     (9))'' after ``25.5 percent''.
       (D) Section 1860D-15(a) of the Social Security Act (42 
     U.S.C. 1395w-115(a)) is amended--
       (i) in the matter preceding paragraph (1), by inserting 
     ``(or, for each of 2024 through 2029, the percent applicable 
     as a result of the application of section 1860D-13(a)(8), or, 
     for 2030 and each subsequent year, 100 percent minus the 
     percent specified under section 1860D-13(a)(9))'' after 
     ``74.5 percent''; and
       (ii) in paragraph (1)(B), by striking ``paragraph (2) of 
     section 1860D-13(a)'' and inserting ``paragraph (2) or (8) of 
     section 1860D-13(a) (as applicable)''.
       (e) Conforming Amendments.--
       (1) Section 1860D-2 of the Social Security Act (42 U.S.C. 
     1395w-102) is amended--
       (A) in subsection (a(2)(A)(i)(I), by striking ``, or an 
     increase in the initial'' and inserting ``or, for a year 
     preceding 2025, an increase in the initial'';
       (B) in subsection (c)(1)(C)--
       (i) in the subparagraph heading, by striking ``at initial 
     coverage limit''; and
       (ii) by inserting ``for a year preceding 2025 or the annual 
     out-of-pocket threshold specified in subsection (b)(4)(B) for 
     the year for 2025 and each subsequent year'' after 
     ``subsection (b)(3) for the year'' each place it appears; and
       (C) in subsection (d)(1)(A), by striking ``or an initial'' 
     and inserting ``or, for a year preceding 2025, an initial''.
       (2) Section 1860D-4(a)(4)(B)(i) of the Social Security Act 
     (42 U.S.C. 1395w-104(a)(4)(B)(i)) is amended by striking 
     ``the initial'' and inserting ``for a year preceding 2025, 
     the initial''.
       (3) Section 1860D-14(a) of the Social Security Act (42 
     U.S.C. 1395w-114(a)) is amended--
       (A) in paragraph (1)--
       (i) in subparagraph (C), by striking ``The continuation'' 
     and inserting ``For a year preceding 2025, the 
     continuation'';
       (ii) in subparagraph (D)(iii), by striking ``1860D-
     2(b)(4)(A)(i)(I)'' and inserting ``1860D-
     2(b)(4)(A)(i)(I)(aa)''; and
       (iii) in subparagraph (E), by striking ``The elimination'' 
     and inserting ``For a year preceding 2024, the elimination''; 
     and
       (B) in paragraph (2)--
       (i) in subparagraph (C), by striking ``The continuation'' 
     and inserting ``For a year preceding 2025, the 
     continuation''; and
       (ii) in subparagraph (E), by striking ``1860D-
     2(b)(4)(A)(i)(I)'' and inserting ``1860D-2(b)(4)(A)(i)(I)(aa) 
     (for a year preceding 2024)''.
       (4) Section 1860D-21(d)(7) of the Social Security Act (42 
     U.S.C. 1395w-131(d)(7)) is amended by striking ``section 
     1860D-2(b)(4)(B)(i)'' and inserting ``section 1860D-
     2(b)(4)(C)(i)''.
       (5) Section 1860D-22(a)(2)(A) of the Social Security Act 
     (42 U.S.C. 1395w-132(a)(2)(A)) is amended--
       (A) by striking ``the value of any discount'' and inserting 
     the following: ``the value of--
       ``(i) for years prior to 2025, any discount'';
       (B) in clause (i), as inserted by subparagraph (A) of this 
     paragraph, by striking the period at the end and inserting 
     ``; and''; and
       (C) by adding at the end the following new clause:
       ``(ii) for 2025 and each subsequent year, any discount 
     provided pursuant to section 1860D-14C.''.
       (6) Section 1860D-41(a)(6) of the Social Security Act (42 
     U.S.C. 1395w-151(a)(6)) is amended--
       (A) by inserting ``for a year before 2025'' after ``1860D-
     2(b)(3)''; and
       (B) by inserting ``for such year'' before the period.
       (7) Section 1860D-43 of the Social Security Act (42 U.S.C. 
     1395w-153) is amended--
       (A) in subsection (a)--
       (i) by striking paragraph (1) and inserting the following:
       ``(1) participate in--
       ``(A) for 2011 through 2024, the Medicare coverage gap 
     discount program under section 1860D-14A; and
       ``(B) for 2025 and each subsequent year, the manufacturer 
     discount program under section 1860D-14C;'';

[[Page S3942]]

       (ii) by striking paragraph (2) and inserting the following:
       ``(2) have entered into and have in effect--
       ``(A) for 2011 through 2024, an agreement described in 
     subsection (b) of section 1860D-14A with the Secretary; and
       ``(B) for 2025 and each subsequent year, an agreement 
     described in subsection (b) of section 1860D-14C with the 
     Secretary; and''; and
       (iii) in paragraph (3), by striking ``such section'' and 
     inserting ``section 1860D-14A''; and
       (B) by striking subsection (b) and inserting the following:
       ``(b) Effective Date.--Paragraphs (1)(A), (2)(A), and (3) 
     of subsection (a) shall apply to covered part D drugs 
     dispensed under this part on or after January 1, 2011, and 
     before January 1, 2025, and paragraphs (1)(B) and (2)(B) of 
     such subsection shall apply to covered part D drugs dispensed 
     under this part on or after January 1, 2025.''.
       (8) Section 1927 of the Social Security Act (42 U.S.C. 
     1396r-8) is amended--
       (A) in subsection (c)(1)(C)(i)(VI), by inserting before the 
     period at the end the following: ``or under the manufacturer 
     discount program under section 1860D-14C''; and
       (B) in subsection (k)(1)(B)(i)(V), by inserting before the 
     period at the end the following: ``or under section 1860D-
     14C''.
       (f) Implementation for 2024 Through 2026.--The Secretary 
     shall implement this section, including the amendments made 
     by this section, for 2024, 2025, and 2026 by program 
     instruction or other forms of program guidance.
       (g) Funding.--In addition to amounts otherwise available, 
     there are appropriated to the Centers for Medicare & Medicaid 
     Services, out of any money in the Treasury not otherwise 
     appropriated, $341,000,000 for fiscal year 2022, including 
     $20,000,000 and $65,000,000 to carry out the provisions of, 
     including the amendments made by, this section in fiscal 
     years 2022 and 2023, respectively, and $32,000,000 to carry 
     out the provisions of, including the amendments made by, this 
     section in each of fiscal years 2024 through 2031, to remain 
     available until expended.

     SEC. 11202. MAXIMUM MONTHLY CAP ON COST-SHARING PAYMENTS 
                   UNDER PRESCRIPTION DRUG PLANS AND MA-PD PLANS.

       (a) In General.--Section 1860D-2(b) of the Social Security 
     Act (42 U.S.C. 1395w-102(b)) is amended--
       (1) in paragraph (2)--
       (A) in subparagraph (A), by striking ``and (D)'' and 
     inserting ``, (D), and (E)''; and
       (B) by adding at the end the following new subparagraph:
       ``(E) Maximum monthly cap on cost-sharing payments.--
       ``(i) In general.--For plan years beginning on or after 
     January 1, 2025, each PDP sponsor offering a prescription 
     drug plan and each MA organization offering an MA-PD plan 
     shall provide to any enrollee of such plan, including an 
     enrollee who is a subsidy eligible individual (as defined in 
     paragraph (3) of section 1860D-14(a)), the option to elect 
     with respect to a plan year to pay cost-sharing under the 
     plan in monthly amounts that are capped in accordance with 
     this subparagraph.
       ``(ii) Determination of maximum monthly cap.--For each 
     month in the plan year for which an enrollee in a 
     prescription drug plan or an MA-PD plan has made an election 
     pursuant to clause (i), the PDP sponsor or MA organization 
     shall determine a maximum monthly cap (as defined in clause 
     (iv)) for such enrollee.
       ``(iii) Beneficiary monthly payments.--With respect to an 
     enrollee who has made an election pursuant to clause (i), for 
     each month described in clause (ii), the PDP sponsor or MA 
     organization shall bill such enrollee an amount (not to 
     exceed the maximum monthly cap) for the out-of-pocket costs 
     of such enrollee in such month.
       ``(iv) Maximum monthly cap defined.--In this subparagraph, 
     the term `maximum monthly cap' means, with respect to an 
     enrollee--

       ``(I) for the first month for which the enrollee has made 
     an election pursuant to clause (i), an amount determined by 
     calculating--

       ``(aa) the annual out-of-pocket threshold specified in 
     paragraph (4)(B) minus the incurred costs of the enrollee as 
     described in paragraph (4)(C); divided by
       ``(bb) the number of months remaining in the plan year; and

       ``(II) for a subsequent month, an amount determined by 
     calculating--

       ``(aa) the sum of any remaining out-of-pocket costs owed by 
     the enrollee from a previous month that have not yet been 
     billed to the enrollee and any additional out-of-pocket costs 
     incurred by the enrollee; divided by
       ``(bb) the number of months remaining in the plan year.
       ``(v) Additional requirements.--The following requirements 
     shall apply with respect to the option to make an election 
     pursuant to clause (i) under this subparagraph:

       ``(I) Secretarial responsibilities.--The Secretary shall 
     provide information to part D eligible individuals on the 
     option to make such election through educational materials, 
     including through the notices provided under section 1804(a).
       ``(II) Timing of election.--An enrollee in a prescription 
     drug plan or an MA-PD plan may make such an election--

       ``(aa) prior to the beginning of the plan year; or
       ``(bb) in any month during the plan year.

       ``(III) Pdp sponsor and ma organization responsibilities.--
     Each PDP sponsor offering a prescription drug plan or MA 
     organization offering an MA-PD plan--

       ``(aa) may not limit the option for an enrollee to make 
     such an election to certain covered part D drugs;
       ``(bb) shall, prior to the plan year, notify prospective 
     enrollees of the option to make such an election in 
     promotional materials;
       ``(cc) shall include information on such option in enrollee 
     educational materials;
       ``(dd) shall have in place a mechanism to notify a pharmacy 
     during the plan year when an enrollee incurs out-of-pocket 
     costs with respect to covered part D drugs that make it 
     likely the enrollee may benefit from making such an election;
       ``(ee) shall provide that a pharmacy, after receiving a 
     notification described in item (dd) with respect to an 
     enrollee, informs the enrollee of such notification;
       ``(ff) shall ensure that such an election by an enrollee 
     has no effect on the amount paid to pharmacies (or the timing 
     of such payments) with respect to covered part D drugs 
     dispensed to the enrollee; and
       ``(gg) shall have in place a financial reconciliation 
     process to correct inaccuracies in payments made by an 
     enrollee under this subparagraph with respect to covered part 
     D drugs during the plan year.

       ``(IV) Failure to pay amount billed.--If an enrollee fails 
     to pay the amount billed for a month as required under this 
     subparagraph--

       ``(aa) the election of the enrollee pursuant to clause (i) 
     shall be terminated and the enrollee shall pay the cost-
     sharing otherwise applicable for any covered part D drugs 
     subsequently dispensed to the enrollee up to the annual out-
     of-pocket threshold specified in paragraph (4)(B); and
       ``(bb) the PDP sponsor or MA organization may preclude the 
     enrollee from making an election pursuant to clause (i) in a 
     subsequent plan year.

       ``(V) Clarification regarding past due amounts.--Nothing in 
     this subparagraph shall be construed as prohibiting a PDP 
     sponsor or an MA organization from billing an enrollee for an 
     amount owed under this subparagraph.
       ``(VI) Treatment of unsettled balances.--Any unsettled 
     balances with respect to amounts owed under this subparagraph 
     shall be treated as plan losses and the Secretary shall not 
     be liable for any such balances outside of those assumed as 
     losses estimated in plan bids.''; and

       (2) in paragraph (4)--
       (A) in subparagraph (C), by striking ``subparagraph (E)'' 
     and inserting ``subparagraph (E) or subparagraph (F)''; and
       (B) by adding at the end the following new subparagraph:
       ``(F) Inclusion of costs paid under maximum monthly cap 
     option.--In applying subparagraph (A), with respect to an 
     enrollee who has made an election pursuant to clause (i) of 
     paragraph (2)(E), costs shall be treated as incurred if such 
     costs are paid by a PDP sponsor or an MA organization under 
     the option provided under such paragraph.''.
       (b) Application to Alternative Prescription Drug 
     Coverage.--Section 1860D-2(c) of the Social Security Act (42 
     U.S.C. 1395w-102(c)) is amended by adding at the end the 
     following new paragraph:
       ``(4) Same maximum monthly cap on cost-sharing.--The 
     maximum monthly cap on cost-sharing payments shall apply to 
     coverage with respect to an enrollee who has made an election 
     pursuant to clause (i) of subsection (b)(2)(E) under the 
     option provided under such subsection.''.
       (c) Implementation for 2025.--The Secretary shall implement 
     this section, including the amendments made by this section, 
     for 2025 by program instruction or other forms of program 
     guidance.
       (d) Funding.--In addition to amounts otherwise available, 
     there are appropriated to the Centers for Medicare & Medicaid 
     Services, out of any money in the Treasury not otherwise 
     appropriated, $10,000,000 for fiscal year 2023, to remain 
     available until expended, to carry out the provisions of, 
     including the amendments made by, this section.

            PART 4--REPEAL OF PRESCRIPTION DRUG REBATE RULE

     SEC. 11301. PROHIBITING IMPLEMENTATION OF RULE RELATING TO 
                   ELIMINATING THE ANTI-KICKBACK STATUTE SAFE 
                   HARBOR PROTECTION FOR PRESCRIPTION DRUG 
                   REBATES.

       Section 90006 of division I of the Infrastructure 
     Investment and Jobs Act (42 U.S.C. 1320a-7b note), as amended 
     by section 13101 of division A of the Bipartisan Safer 
     Communities Act, is amended by striking ``, prior to January 
     1, 2027,''.

                         PART 5--MISCELLANEOUS

     SEC. 11401. COVERAGE OF ADULT VACCINES RECOMMENDED BY THE 
                   ADVISORY COMMITTEE ON IMMUNIZATION PRACTICES 
                   UNDER MEDICARE PART D.

       (a) Ensuring Treatment of Cost-sharing and Deductible Is 
     Consistent With Treatment of Vaccines Under Medicare Part 
     B.--Section 1860D-2 of the Social Security Act (42 U.S.C. 
     1395w-102), as amended by sections 11201 and 11202, is 
     amended--
       (1) in subsection (b)--
       (A) in paragraph (1)(A), by striking ``The coverage'' and 
     inserting ``Subject to paragraph (8), the coverage'';
       (B) in paragraph (2)--
       (i) in subparagraph (A), by inserting ``and paragraph (8)'' 
     after ``and (E)'';

[[Page S3943]]

       (ii) in subparagraph (C)(i), in the matter preceding 
     subclause (I), by striking ``paragraph (4)'' and inserting 
     ``paragraphs (4) and (8)''; and
       (iii) in subparagraph (D)(i), in the matter preceding 
     subclause (I), by striking ``paragraph (4)'' and inserting 
     ``paragraphs (4) and (8)'';
       (C) in paragraph (4)(A)(i), by striking ``The coverage'' 
     and inserting ``Subject to paragraph (8), the coverage''; and
       (D) by adding at the end the following new paragraph:
       ``(8) Treatment of cost-sharing for adult vaccines 
     recommended by the advisory committee on immunization 
     practices consistent with treatment of vaccines under part 
     b.--
       ``(A) In general.--For plan years beginning on or after 
     January 1, 2023, with respect to an adult vaccine recommended 
     by the Advisory Committee on Immunization Practices (as 
     defined in subparagraph (B))--
       ``(i) the deductible under paragraph (1) shall not apply; 
     and
       ``(ii) there shall be no coinsurance or other cost-sharing 
     under this part with respect to such vaccine.
       ``(B) Adult vaccines recommended by the advisory committee 
     on immunization practices.--For purposes of this paragraph, 
     the term `adult vaccine recommended by the Advisory Committee 
     on Immunization Practices' means a covered part D drug that 
     is a vaccine licensed under section 351 of the Public Health 
     Service Act for use by adult populations and administered in 
     accordance with recommendations of the Advisory Committee on 
     Immunization Practices of the Centers for Disease Control and 
     Prevention.''; and
       (2) in subsection (c), by adding at the end the following 
     new paragraph:
       ``(5) Treatment of cost-sharing for adult vaccines 
     recommended by the advisory committee on immunization 
     practices.--The coverage is in accordance with subsection 
     (b)(8).''.
       (b) Conforming Amendments to Cost-sharing for Low-income 
     Individuals.--Section 1860D-14(a) of the Social Security Act 
     (42 U.S.C. 1395w-114(a)), as amended by section 11201, is 
     amended--
       (1) in paragraph (1)(D), in each of clauses (ii) and (iii), 
     by striking ``In the case'' and inserting ``Subject to 
     paragraph (6), in the case'';
       (2) in paragraph (2)--
       (A) in subparagraph (B), by striking ``A reduction'' and 
     inserting ``Subject to section 1860D-2(b)(8), a reduction'';
       (B) in subparagraph (D), by striking ``The substitution'' 
     and inserting ``Subject to paragraph (6), the substitution''; 
     and
       (C) in subparagraph (E), by striking ``and subsection (c)'' 
     and inserting ``, paragraph (6) of this subsection, and 
     subsection (c)''; and
       (3) by adding at the end the following new paragraph:
       ``(6) No application of cost-sharing or deductible for 
     adult vaccines recommended by the advisory committee on 
     immunization practices.--For plan years beginning on or after 
     January 1, 2023, with respect to an adult vaccine recommended 
     by the Advisory Committee on Immunization Practices (as 
     defined in section 1860D-2(b)(8)(B))--
       ``(A) the deductible under section 1860D-2(b)(1) shall not 
     apply; and
       ``(B) there shall be no cost-sharing under this section 
     with respect to such vaccine.''.
       (c) Temporary Retrospective Subsidy.--Section 1860D-15 of 
     the Social Security Act (42 U.S.C. 1395w-115) is amended by 
     adding at the end the following new subsection:
       ``(h) Temporary Retrospective Subsidy for Reduction in 
     Cost-sharing for Adult Vaccines Recommended by the Advisory 
     Committee on Immunization Practices During 2023.--
       ``(1) In general.--In addition to amounts otherwise payable 
     under this section to a PDP sponsor of a prescription drug 
     plan or an MA organization offering an MA-PD plan, for plan 
     year 2023, the Secretary shall provide the PDP sponsor or MA 
     organization offering the plan subsidies in an amount equal 
     to the aggregate reduction in cost-sharing by reason of the 
     application of section 1860D-2(b)(8) for individuals under 
     the plan during the year.
       ``(2) Timing.--The Secretary shall provide a subsidy under 
     paragraph (1), as applicable, not later than 18 months 
     following the end of the applicable plan year.''.
       (d) Rule of Construction.--Nothing in this section shall be 
     construed as limiting coverage under part D of title XVIII of 
     the Social Security Act for vaccines that are not recommended 
     by the Advisory Committee on Immunization Practices.
       (e) Implementation for 2023 Through 2025.--The Secretary 
     shall implement this section, including the amendments made 
     by this section, for 2023, 2024, and 2025, by program 
     instruction or other forms of program guidance.

     SEC. 11402. PAYMENT FOR BIOSIMILAR BIOLOGICAL PRODUCTS DURING 
                   INITIAL PERIOD.

       Section 1847A(c)(4) of the Social Security Act (42 U.S.C. 
     1395w-3a(c)(4)) is amended--
       (1) in each of subparagraphs (A) and (B), by redesignating 
     clauses (i) and (ii) as subclauses (I) and (II), 
     respectively, and moving such subclauses 2 ems to the right;
       (2) by redesignating subparagraphs (A) and (B) as clauses 
     (i) and (ii) and moving such clauses 2 ems to the right;
       (3) by striking ``unavailable.--In the case'' and inserting 
     ``unavailable.--
       ``(A) In general.--Subject to subparagraph (B), in the 
     case''; and
       (4) by adding at the end the following new subparagraph:
       ``(B) Limitation on payment amount for biosimilar 
     biological products during initial period.--In the case of a 
     biosimilar biological product furnished on or after July 1, 
     2024, during the initial period described in subparagraph (A) 
     with respect to the biosimilar biological product, the amount 
     payable under this section for the biosimilar biological 
     product is the lesser of the following:
       ``(i) The amount determined under clause (ii) of such 
     subparagraph for the biosimilar biological product.
       ``(ii) The amount determined under subsection (b)(1)(B) for 
     the reference biological product.''.

     SEC. 11403. TEMPORARY INCREASE IN MEDICARE PART B PAYMENT FOR 
                   CERTAIN BIOSIMILAR BIOLOGICAL PRODUCTS.

       Section 1847A(b)(8) of the Social Security Act (42 U.S.C. 
     1395w-3a(b)(8)) is amended--
       (1) by redesignating subparagraphs (A) and (B) as clauses 
     (i) and (ii), respectively, and moving the margin of each 
     such redesignated clause 2 ems to the right;
       (2) by striking ``product.--The amount'' and inserting the 
     following: ``product.--
       ``(A) In general.--Subject to subparagraph (B), the 
     amount''; and
       (3) by adding at the end the following new subparagraph:
       ``(B) Temporary payment increase.--
       ``(i) In general.--In the case of a qualifying biosimilar 
     biological product that is furnished during the applicable 5-
     year period for such product, the amount specified in this 
     paragraph for such product with respect to such period is the 
     sum determined under subparagraph (A), except that clause 
     (ii) of such subparagraph shall be applied by substituting `8 
     percent' for `6 percent'.
       ``(ii) Applicable 5-year period.--For purposes of clause 
     (i), the applicable 5-year period for a qualifying biosimilar 
     biological product is--

       ``(I) in the case of such a product for which payment was 
     made under this paragraph as of September 30, 2022, the 5-
     year period beginning on October 1, 2022; and
       ``(II) in the case of such a product for which payment is 
     first made under this paragraph during a calendar quarter 
     during the period beginning October 1, 2022, and ending 
     December 31, 2027, the 5-year period beginning on the first 
     day of such calendar quarter during which such payment is 
     first made.

       ``(iii) Qualifying biosimilar biological product defined.--
     For purposes of this subparagraph, the term `qualifying 
     biosimilar biological product' means a biosimilar biological 
     product described in paragraph (1)(C) with respect to which--

       ``(I) in the case of a product described in clause (ii)(I), 
     the average sales price under paragraph (8)(A)(i) for a 
     calendar quarter during the 5-year period described in such 
     clause is not more than the average sales price under 
     paragraph (4)(A) for such quarter for the reference 
     biological product; and
       ``(II) in the case of a product described in clause 
     (ii)(II), the average sales price under paragraph (8)(A)(i) 
     for a calendar quarter during the 5-year period described in 
     such clause is not more than the average sales price under 
     paragraph (4)(A) for such quarter for the reference 
     biological product.''.

     SEC. 11404. EXPANDING ELIGIBILITY FOR LOW-INCOME SUBSIDIES 
                   UNDER PART D OF THE MEDICARE PROGRAM.

       Section 1860D-14(a) of the Social Security Act (42 U.S.C. 
     1395w-114(a)), as amended by section 11201, is amended--
       (1) in the subsection heading, by striking ``Individuals'' 
     and all that follows through ``Line'' and inserting ``Certain 
     Individuals'';
       (2) in paragraph (1)--
       (A) by striking the paragraph heading and inserting 
     ``Individuals with certain low incomes''; and
       (B) in the matter preceding subparagraph (A), by inserting 
     ``(or, with respect to a plan year beginning on or after 
     January 1, 2024, 150 percent)'' after ``135 percent''; and
       (3) in paragraph (2)--
       (A) by striking the paragraph heading and inserting ``Other 
     low-income individuals''; and
       (B) in the matter preceding subparagraph (A), by striking 
     ``In the case of a subsidy'' and inserting ``With respect to 
     a plan year beginning before January 1, 2024, in the case of 
     a subsidy''.

     SEC. 11405. IMPROVING ACCESS TO ADULT VACCINES UNDER MEDICAID 
                   AND CHIP.

       (a) Medicaid.--
       (1) Requiring coverage of adult vaccinations.--
       (A) In general.--Section 1902(a)(10)(A) of the Social 
     Security Act (42 U.S.C. 1396a(a)(10)(A)) is amended in the 
     matter preceding clause (i) by inserting ``(13)(B),'' after 
     ``(5),''.
       (B) Medically needy.--Section 1902(a)(10)(C)(iv) of such 
     Act (42 U.S.C. 1396a(a)(10)(C)(iv)) is amended by inserting 
     ``, (13)(B),'' after ``(5)''.
       (2) No cost sharing for vaccinations.--
       (A) General cost-sharing limitations.--Section 1916 of the 
     Social Security Act (42 U.S.C. 1396o) is amended--
       (i) in subsection (a)(2)--

       (I) in subparagraph (G), by inserting a comma after ``State 
     plan'';
       (II) in subparagraph (H), by striking ``; or'' and 
     inserting a comma;
       (III) in subparagraph (I), by striking ``; and'' and 
     inserting ``, or''; and

[[Page S3944]]

       (IV) by adding at the end the following new subparagraph:

       ``(J) vaccines described in section 1905(a)(13)(B) and the 
     administration of such vaccines; and''; and
       (ii) in subsection (b)(2)--

       (I) in subparagraph (G), by inserting a comma after ``State 
     plan'';
       (II) in subparagraph (H), by striking ``; or'' and 
     inserting a comma;
       (III) in subparagraph (I), by striking ``; and'' and 
     inserting ``, or''; and
       (IV) by adding at the end the following new subparagraph:

       ``(J) vaccines described in section 1905(a)(13)(B) and the 
     administration of such vaccines; and''.
       (B) Application to alternative cost sharing.--Section 
     1916A(b)(3)(B) of the Social Security Act (42 U.S.C. 1396o-
     1(b)(3)(B)) is amended by adding at the end the following new 
     clause:
       ``(xiv) Vaccines described in section 1905(a)(13)(B) and 
     the administration of such vaccines.''.
       (3) Increased fmap for adult vaccines and their 
     administration.--Section 1905(b) of the Social Security Act 
     (42 U.S.C. 1396d(b)) is amended--
       (A) by striking ``and (5)'' and inserting ``(5)'';
       (B) by striking ``services and vaccines described in 
     subparagraphs (A) and (B) of subsection (a)(13), and 
     prohibits cost-sharing for such services and vaccines'' and 
     inserting ``services described in subsection (a)(13)(A), and 
     prohibits cost-sharing for such services'';
       (C) by striking ``medical assistance for such services and 
     vaccines'' and inserting ``medical assistance for such 
     services''; and
       (D) by inserting ``, and (6) during the first 8 fiscal 
     quarters beginning on or after the effective date of this 
     clause, in the case of a State which, as of the date of 
     enactment of the Inflation Reduction Act of 2022, provides 
     medical assistance for vaccines described in subsection 
     (a)(13)(B) and their administration and prohibits cost-
     sharing for such vaccines, the Federal medical assistance 
     percentage, as determined under this subsection and 
     subsection (y), shall be increased by 1 percentage point with 
     respect to medical assistance for such vaccines and their 
     administration'' before the first period.
       (b) CHIP.--
       (1) Requiring coverage of adult vaccinations.--Section 
     2103(c) of the Social Security Act (42 U.S.C. 1397cc(c)) is 
     amended by adding at the end the following paragraph:
       ``(12) Required coverage of approved, recommended adult 
     vaccines and their administration.--Regardless of the type of 
     coverage elected by a State under subsection (a), if the 
     State child health plan or a waiver of such plan provides 
     child health assistance or pregnancy-related assistance (as 
     defined in section 2112) to an individual who is 19 years of 
     age or older, such assistance shall include coverage of 
     vaccines described in section 1905(a)(13)(B) and their 
     administration.''.
       (2) No cost-sharing for vaccinations.--Section 2103(e)(2) 
     of such Act (42 U.S.C. 1397cc(e)(2)) is amended by inserting 
     ``vaccines described in subsection (c)(12) (and the 
     administration of such vaccines),'' after ``in vitro 
     diagnostic products described in subsection (c)(10) (and 
     administration of such products),''.
       (c) Effective Date.--The amendments made by this section 
     take effect on the 1st day of the 1st fiscal quarter that 
     begins on or after the date that is 1 year after the date of 
     enactment of this Act and shall apply to expenditures made 
     under a State plan or waiver of such plan under title XIX of 
     the Social Security Act (42 U.S.C. 1396 through 1396w-6) or 
     under a State child health plan or waiver of such plan under 
     title XXI of such Act (42 U.S.C. 1397aa through 1397mm) on or 
     after such effective date.

               Subtitle C--Affordable Care Act Subsidies

     SEC. 12001. IMPROVE AFFORDABILITY AND REDUCE PREMIUM COSTS OF 
                   HEALTH INSURANCE FOR CONSUMERS.

       (a) In General.--Clause (iii) of section 36B(b)(3)(A) of 
     the Internal Revenue Code of 1986 is amended--
       (1) by striking ``in 2021 or 2022'' and inserting ``after 
     December 31, 2020, and before January 1, 2026'', and
       (2) by striking ``2021 and 2022'' in the heading and 
     inserting ``2021 through 2025''.
       (b) Extension Through 2025 of Rule to Allow Credit to 
     Taxpayers Whose Household Income Exceeds 400 Percent of the 
     Poverty Line.--Section 36B(c)(1)(E) of the Internal Revenue 
     Code of 1986 is amended--
       (1) by striking ``in 2021 or 2022'' and inserting ``after 
     December 31, 2020, and before January 1, 2026'', and
       (2) by striking ``2021 and 2022'' in the heading and 
     inserting ``2021 through 2025''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2022.

                      Subtitle D--Energy Security

     SEC. 13001. AMENDMENT OF 1986 CODE.

       Except as otherwise expressly provided, whenever in this 
     subtitle an amendment or repeal is expressed in terms of an 
     amendment to, or repeal of, a section or other provision, the 
     reference shall be considered to be made to a section or 
     other provision of the Internal Revenue Code of 1986.

        PART 1--CLEAN ELECTRICITY AND REDUCING CARBON EMISSIONS

     SEC. 13101. EXTENSION AND MODIFICATION OF CREDIT FOR 
                   ELECTRICITY PRODUCED FROM CERTAIN RENEWABLE 
                   RESOURCES.

       (a) In General.--The following provisions of section 45(d) 
     are each amended by striking ``January 1, 2022'' each place 
     it appears and inserting ``January 1, 2025'':
       (1) Paragraph (2)(A).
       (2) Paragraph (3)(A).
       (3) Paragraph (6).
       (4) Paragraph (7).
       (5) Paragraph (9).
       (6) Paragraph (11)(B).
       (b) Base Credit Amount.--Section 45 is amended--
       (1) in subsection (a)(1), by striking ``1.5 cents'' and 
     inserting ``0.3 cents'', and
       (2) in subsection (b)(2), by striking ``1.5 cent'' and 
     inserting ``0.3 cent''.
       (c) Application of Extension to Geothermal and Solar.--
     Section 45(d)(4) is amended by striking ``and which'' and all 
     that follows through ``January 1, 2022'' and inserting ``and 
     the construction of which begins before January 1, 2025''.
       (d) Extension of Election to Treat Qualified Facilities as 
     Energy Property.--Section 48(a)(5)(C)(ii) is amended by 
     striking ``January 1, 2022'' and inserting ``January 1, 
     2025''.
       (e) Application of Extension to Wind Facilities.--
       (1) In general.--Section 45(d)(1) is amended by striking 
     ``January 1, 2022'' and inserting ``January 1, 2025''.
       (2) Application of phaseout percentage.--
       (A) Renewable electricity production credit.--Section 
     45(b)(5) is amended by inserting ``which is placed in service 
     before January 1, 2022'' after ``using wind to produce 
     electricity''.
       (B) Energy credit.--Section 48(a)(5)(E) is amended by 
     inserting ``placed in service before January 1, 2022, and'' 
     before ``treated as energy property''.
       (3) Qualified offshore wind facilities under energy 
     credit.--Section 48(a)(5)(F)(i) is amended by striking 
     ``offshore wind facility'' and all that follows and inserting 
     the following: ``offshore wind facility, subparagraph (E) 
     shall not apply.''.
       (f) Wage and Apprenticeship Requirements.--Section 45(b) is 
     amended by adding at the end the following new paragraphs:
       ``(6) Increased credit amount for qualified facilities.--
       ``(A) In general.--In the case of any qualified facility 
     which satisfies the requirements of subparagraph (B), the 
     amount of the credit determined under subsection (a) 
     (determined after the application of paragraphs (1) through 
     (5) and without regard to this paragraph) shall be equal to 
     such amount multiplied by 5.
       ``(B) Qualified facility requirements.--A qualified 
     facility meets the requirements of this subparagraph if it is 
     one of the following:
       ``(i) A facility with a maximum net output of less than 1 
     megawatt (as measured in alternating current).
       ``(ii) A facility the construction of which begins prior to 
     the date that is 60 days after the Secretary publishes 
     guidance with respect to the requirements of paragraphs 
     (7)(A) and (8).
       ``(iii) A facility which satisfies the requirements of 
     paragraphs (7)(A) and (8).
       ``(7) Prevailing wage requirements.--
       ``(A) In general.--The requirements described in this 
     subparagraph with respect to any qualified facility are that 
     the taxpayer shall ensure that any laborers and mechanics 
     employed by contractors and subcontractors in--
       ``(i) the construction of such facility, and
       ``(ii) with respect to any taxable year, for any portion of 
     such taxable year which is within the period described in 
     subsection (a)(2)(A)(ii), the alteration or repair of such 
     facility,
     shall be paid wages at rates not less than the prevailing 
     rates for construction, alteration, or repair of a similar 
     character in the locality in which such facility is located 
     as most recently determined by the Secretary of Labor, in 
     accordance with subchapter IV of chapter 31 of title 40, 
     United States Code. For purposes of determining an increased 
     credit amount under paragraph (6)(A) for a taxable year, the 
     requirement under clause (ii) is applied to such taxable year 
     in which the alteration or repair of the qualified facility 
     occurs.''
       ``(B) Correction and penalty related to failure to satisfy 
     wage requirements.--
       ``(i) In general.--In the case of any taxpayer which fails 
     to satisfy the requirement under subparagraph (A) with 
     respect to the construction of any qualified facility or with 
     respect to the alteration or repair of a facility in any year 
     during the period described in subparagraph (A)(ii), such 
     taxpayer shall be deemed to have satisfied such requirement 
     under such subparagraph with respect to such facility for any 
     year if, with respect to any laborer or mechanic who was paid 
     wages at a rate below the rate described in such subparagraph 
     for any period during such year, such taxpayer--

       ``(I) makes payment to such laborer or mechanic in an 
     amount equal to the sum of--

       ``(aa) an amount equal to the difference between--
       ``(AA) the amount of wages paid to such laborer or mechanic 
     during such period, and
       ``(BB) the amount of wages required to be paid to such 
     laborer or mechanic pursuant to such subparagraph during such 
     period, plus
       ``(bb) interest on the amount determined under item (aa) at 
     the underpayment rate established under section 6621 
     (determined by

[[Page S3945]]

     substituting `6 percentage points' for `3 percentage points' 
     in subsection (a)(2) of such section) for the period 
     described in such item, and

       ``(II) makes payment to the Secretary of a penalty in an 
     amount equal to the product of--

       ``(aa) $5,000, multiplied by
       ``(bb) the total number of laborers and mechanics who were 
     paid wages at a rate below the rate described in subparagraph 
     (A) for any period during such year.
       ``(ii) Deficiency procedures not to apply.--Subchapter B of 
     chapter 63 (relating to deficiency procedures for income, 
     estate, gift, and certain excise taxes) shall not apply with 
     respect to the assessment or collection of any penalty 
     imposed by this paragraph.
       ``(iii) Intentional disregard.--If the Secretary determines 
     that any failure described in clause (i) is due to 
     intentional disregard of the requirements under subparagraph 
     (A), such clause shall be applied--

       ``(I) in subclause (I), by substituting `three times the 
     sum' for `the sum', and
       ``(II) in subclause (II), by substituting `$10,000' for 
     `5,000' in item (aa) thereof.

       ``(iv) Limitation on period for payment.--Pursuant to rules 
     issued by the Secretary, in the case of a final determination 
     by the Secretary with respect to any failure by the taxpayer 
     to satisfy the requirement under subparagraph (A), 
     subparagraph (B)(i) shall not apply unless the payments 
     described in subclauses (I) and (II) of such subparagraph are 
     made by the taxpayer on or before the date which is 180 days 
     after the date of such determination.
       ``(8) Apprenticeship requirements.--The requirements 
     described in this paragraph with respect to the construction 
     of any qualified facility are as follows:
       ``(A) Labor hours.--
       ``(i) Percentage of total labor hours.--Taxpayers shall 
     ensure that, with respect to the construction of any 
     qualified facility, not less than the applicable percentage 
     of the total labor hours of the construction, alteration, or 
     repair work (including such work performed by any contractor 
     or subcontractor) with respect to such facility shall, 
     subject to subparagraph (B), be performed by qualified 
     apprentices.
       ``(ii) Applicable percentage.--For purposes of clause (i), 
     the applicable percentage shall be--

       ``(I) in the case of a qualified facility the construction 
     of which begins before January 1, 2023, 10 percent,
       ``(II) in the case of a qualified facility the construction 
     of which begins after December 31, 2022, and before January 
     1, 2024, 12.5 percent, and
       ``(III) in the case of a qualified facility the 
     construction of which begins after December 31, 2023, 15 
     percent.

       ``(B) Apprentice to journeyworker ratio.--The requirement 
     under subparagraph (A)(i) shall be subject to any applicable 
     requirements for apprentice-to-journeyworker ratios of the 
     Department of Labor or the applicable State apprenticeship 
     agency.
       ``(C) Participation.--Each contractor and subcontractor who 
     employs 4 or more individuals to perform construction, 
     alteration, or repair work with respect to the construction 
     of a qualified facility shall employ 1 or more qualified 
     apprentices to perform such work.
       ``(D) Exception.--
       ``(i) In general.--A taxpayer shall not be treated as 
     failing to satisfy the requirements of this paragraph if such 
     taxpayer--

       ``(I) satisfies the requirements described in clause (ii), 
     or
       ``(II) subject to clause (iii), in the case of any failure 
     by the taxpayer to satisfy the requirement under 
     subparagraphs (A) and (C) with respect to the construction, 
     alteration, or repair work on any qualified facility to which 
     subclause (I) does not apply, makes payment to the Secretary 
     of a penalty in an amount equal to the product of--

       ``(aa) $50, multiplied by
       ``(bb) the total labor hours for which the requirement 
     described in such subparagraph was not satisfied with respect 
     to the construction, alteration, or repair work on such 
     qualified facility.
       ``(ii) Good faith effort.--For purposes of clause (i), a 
     taxpayer shall be deemed to have satisfied the requirements 
     under this paragraph with respect to a qualified facility if 
     such taxpayer has requested qualified apprentices from a 
     registered apprenticeship program, as defined in section 
     3131(e)(3)(B), and--

       ``(I) such request has been denied, provided that such 
     denial is not the result of a refusal by the contractors or 
     subcontractors engaged in the performance of construction, 
     alteration, or repair work with respect to such qualified 
     facility to comply with the established standards and 
     requirements of the registered apprenticeship program, or
       ``(II) the registered apprenticeship program fails to 
     respond to such request within 5 business days after the date 
     on which such registered apprenticeship program received such 
     request.

       ``(iii) Intentional disregard.--If the Secretary determines 
     that any failure described in subclause (i)(II) is due to 
     intentional disregard of the requirements under subparagraphs 
     (A) and (C), subclause (i)(II) shall be applied by 
     substituting `$500' for `$50' in item (aa) thereof.
       ``(E) Definitions.--For purposes of this paragraph--
       ``(i) Labor hours.--The term `labor hours'--

       ``(I) means the total number of hours devoted to the 
     performance of construction, alteration, or repair work by 
     employees of the taxpayer (including construction, 
     alteration, or repair work by any contractor or 
     subcontractor), and
       ``(II) excludes any hours worked by--

       ``(aa) foremen,
       ``(bb) superintendents,
       ``(cc) owners, or
       ``(dd) persons employed in a bona fide executive, 
     administrative, or professional capacity (within the meaning 
     of those terms in part 541 of title 29, Code of Federal 
     Regulations).
       ``(ii) Qualified apprentice.--The term `qualified 
     apprentice' means an individual who is an employee of the 
     contractor or subcontractor and who is participating in a 
     registered apprenticeship program, as defined in section 
     3131(e)(3)(B).
       ``(9) Regulations and guidance.--The Secretary shall issue 
     such regulations or other guidance as the Secretary 
     determines necessary or appropriate to carry out the purposes 
     of this subsection, including regulations or other guidance 
     which provides for requirements for recordkeeping or 
     information reporting for purposes of administering the 
     requirements of this subsection.''.
       (g) Domestic Content, Phaseout, and Energy Communities.--
     Section 45(b), as amended by subsection (f), is amended--
       (1) by redesignating paragraph (9) as paragraph (12), and
       (2) by inserting after paragraph (8) the following:
       ``(9) Domestic content bonus credit amount.--
       ``(A) In general.--In the case of any qualified facility 
     which satisfies the requirement under subparagraph (B)(i), 
     the amount of the credit determined under subsection (a) 
     (determined after the application of paragraphs (1) through 
     (8)) shall be increased by an amount equal to 10 percent of 
     the amount so determined.
       ``(B) Requirement.--
       ``(i) In general.--The requirement described in this 
     subclause is satisfied with respect to any qualified facility 
     if the taxpayer certifies to the Secretary (at such time, and 
     in such form and manner, as the Secretary may prescribe) that 
     any steel, iron, or manufactured product which is a component 
     of such facility (upon completion of construction) was 
     produced in the United States (as determined under section 
     661 of title 49, Code of Federal Regulations).
       ``(ii) Steel and iron.--In the case of steel or iron, 
     clause (i) shall be applied in a manner consistent with 
     section 661.5 of title 49, Code of Federal Regulations.
       ``(iii) Manufactured product.--For purposes of clause (i), 
     the manufactured products which are components of a qualified 
     facility upon completion of construction shall be deemed to 
     have been produced in the United States if not less than the 
     adjusted percentage (as determined under subparagraph (C)) of 
     the total costs of all such manufactured products of such 
     facility are attributable to manufactured products (including 
     components) which are mined, produced, or manufactured in the 
     United States.
       ``(C) Adjusted percentage.--
       ``(i) In general.--Subject to subclause (ii), for purposes 
     of subparagraph (B)(iii), the adjusted percentage shall be 40 
     percent.
       ``(ii) Offshore wind facility.--For purposes of 
     subparagraph (B)(iii), in the case of a qualified facility 
     which is an offshore wind facility, the adjusted percentage 
     shall be 20 percent.
       ``(10) Phaseout for elective payment.--
       ``(A) In general.--In the case of a taxpayer making an 
     election under section 6417 with respect to a credit under 
     this section, the amount of such credit shall be replaced 
     with--
       ``(i) the value of such credit (determined without regard 
     to this paragraph), multiplied by
       ``(ii) the applicable percentage.
       ``(B) 100 percent applicable percentage for certain 
     qualified facilities.--In the case of any qualified 
     facility--
       ``(i) which satisfies the requirements under paragraph 
     (9)(B) with respect to the construction of such facility, or
       ``(ii) with a maximum net output of less than 1 megawatt 
     (as measured in alternating current),
     the applicable percentage shall be 100 percent.
       ``(C) Phased domestic content requirement.--Subject to 
     subparagraph (D), in the case of any qualified facility which 
     is not described in subparagraph (B), the applicable 
     percentage shall be--
       ``(i) if construction of such facility began before January 
     1, 2024, 100 percent, and
       ``(ii) if construction of such facility began in calendar 
     year 2024, 90 percent.
       ``(D) Exception.--
       ``(i) In general.--For purposes of this paragraph, the 
     Secretary shall provide exceptions to the requirements under 
     this paragraph for the construction of qualified facilities 
     if--

       ``(I) the inclusion of steel, iron, or manufactured 
     products which are produced in the United States increases 
     the overall costs of construction of qualified facilities by 
     more than 25 percent, or
       ``(II) relevant steel, iron, or manufactured products are 
     not produced in the United States in sufficient and 
     reasonably available quantities or of a satisfactory quality.

       ``(ii) Applicable percentage.--In any case in which the 
     Secretary provides an exception pursuant to clause (i), the 
     applicable percentage shall be 100 percent.

[[Page S3946]]

       ``(11) Special rule for qualified facility located in 
     energy community.--
       ``(A) In general.--In the case of a qualified facility 
     which is located in an energy community, the credit 
     determined under subsection (a) (determined after the 
     application of paragraphs (1) through (10), without the 
     application of paragraph (9)) shall be increased by an amount 
     equal to 10 percent of the amount so determined.
       ``(B) Energy community.--For purposes of this paragraph, 
     the term `energy community' means--
       ``(i) a brownfield site (as defined in subparagraphs (A), 
     (B), and (D)(ii)(III) of section 101(39) of the Comprehensive 
     Environmental Response, Compensation, and Liability Act of 
     1980 (42 U.S.C. 9601(39))),
       ``(ii) an area which has (or, at any time during the period 
     beginning after December 31, 1999, had) significant 
     employment related to the extraction, processing, transport, 
     or storage of coal, oil, or natural gas (as determined by the 
     Secretary), or
       ``(iii) a census tract--

       ``(I) in which--

       ``(aa) after December 31, 1999, a coal mine has closed, or
       ``(bb) after December 31, 2009, a coal-fired electric 
     generating unit has been retired, or

       ``(II) which is directly adjoining to any census tract 
     described in subclause (I).''.

       (h) Credit Reduced for Tax-exempt Bonds.--Section 45(b)(3) 
     is amended to read as follows:
       ``(3) Credit reduced for tax-exempt bonds.--The amount of 
     the credit determined under subsection (a) with respect to 
     any facility for any taxable year (determined after the 
     application of paragraphs (1) and (2)) shall be reduced by 
     the amount which is the product of the amount so determined 
     for such year and the lesser of 15 percent or a fraction--
       ``(A) the numerator of which is the sum, for the taxable 
     year and all prior taxable years, of proceeds of an issue of 
     any obligations the interest on which is exempt from tax 
     under section 103 and which is used to provide financing for 
     the qualified facility, and
       ``(B) the denominator of which is the aggregate amount of 
     additions to the capital account for the qualified facility 
     for the taxable year and all prior taxable years.
     The amounts under the preceding sentence for any taxable year 
     shall be determined as of the close of the taxable year.''.
       (i) Rounding Adjustment.--
       (1) In general.--Section 45(b)(2) is amended by striking 
     the second sentence and inserting the following: ``If the 0.3 
     cent amount as increased under the preceding sentence is not 
     a multiple of 0.05 cent, such amount shall be rounded to the 
     nearest multiple of 0.05 cent. In any other case, if an 
     amount as increased under this paragraph is not a multiple of 
     0.1 cent, such amount shall be rounded to the nearest 
     multiple of 0.1 cent.''.
       (2) Conforming amendment.--Section 45(b)(4)(A) is amended 
     by striking ``last sentence'' and inserting ``last two 
     sentences''.
       (j) Hydropower.--
       (1) Elimination of credit rate reduction for qualified 
     hydroelectric production and marine and hydrokinetic 
     renewable energy.--Section 45(b)(4)(A), as amended by the 
     preceding provisions of this section, is amended by striking 
     ``(7), (9), or (11)'' and inserting ``or (7)''.
       (2) Marine and hydrokinetic renewable energy.--Section 45 
     is amended--
       (A) in subsection (c)(10)(A)--
       (i) in clause (iii), by striking ``or'',
       (ii) in clause (iv), by striking the period at the end and 
     inserting ``, or'' and
       (iii) by adding at the end the following:
       ``(v) pressurized water used in a pipeline (or similar man-
     made water conveyance) which is operated--

       ``(I) for the distribution of water for agricultural, 
     municipal, or industrial consumption, and
       ``(II) not primarily for the generation of electricity.'', 
     and

       (B) in subsection (d)(11)(A), by striking ``150'' and 
     inserting ``25''.
       (k) Effective Dates.--
       (1) In general.--Except as provided in paragraphs (2) and 
     (3), the amendments made by this section shall apply to 
     facilities placed in service after December 31, 2021.
       (2) Credit reduced for tax-exempt bonds.--The amendment 
     made by subsection (h) shall apply to facilities the 
     construction of which begins after the date of enactment of 
     this Act.
       (3) Domestic content, phaseout, energy communities, and 
     hydropower.--The amendments made by subsections (g) and (j) 
     shall apply to facilities placed in service after December 
     31, 2022.

     SEC. 13102. EXTENSION AND MODIFICATION OF ENERGY CREDIT.

       (a) Extension of Credit.--The following provisions of 
     section 48 are each amended by striking ``January 1, 2024'' 
     each place it appears and inserting ``January 1, 2025'':
       (1) Subsection (a)(2)(A)(i)(II).
       (2) Subsection (a)(3)(A)(ii).
       (3) Subsection (c)(1)(D).
       (4) Subsection (c)(2)(D).
       (5) Subsection (c)(3)(A)(iv).
       (6) Subsection (c)(4)(C).
       (7) Subsection (c)(5)(D).
       (b) Further Extension for Certain Energy Property.--Section 
     48(a)(3)(A)(vii) is amended by striking ``January 1, 2024'' 
     and inserting ``January 1, 2035''.
       (c) Phaseout of Credit.--Section 48(a) is amended by 
     striking paragraphs (6) and (7) and inserting the following 
     new paragraph:
       ``(6) Phaseout for certain energy property.--In the case of 
     any qualified fuel cell property, qualified small wind 
     property, or energy property described in clause (i) or 
     clause (ii) of paragraph (3)(A) the construction of which 
     begins after December 31, 2019, and which is placed in 
     service before January 1, 2022, the energy percentage 
     determined under paragraph (2) shall be equal to 26 
     percent.''.
       (d) Base Energy Percentage Amount.--Section 48(a) is 
     amended--
       (1) in paragraph (2)(A)--
       (A) in clause (i), by striking ``30 percent'' and inserting 
     ``6 percent'', and
       (B) in clause (ii), by striking ``10 percent'' and 
     inserting ``2 percent'', and
       (2) in paragraph (5)(A)(ii), by striking ``30 percent'' and 
     inserting ``6 percent''.
       (e) 6 Percent Credit for Geothermal.--Section 
     48(a)(2)(A)(i)(II) is amended by striking ``paragraph 
     (3)(A)(i)'' and inserting ``clause (i) or (iii) of paragraph 
     (3)(A)''.
       (f) Energy Storage Technologies; Qualified Biogas Property; 
     Microgrid Controllers; Extension of Other Property.--
       (1) In general.--Section 48(a)(3)(A) is amended by striking 
     ``or'' at the end of clause (vii), and by adding at the end 
     the following new clauses:
       ``(ix) energy storage technology,
       ``(x) qualified biogas property, or
       ``(xi) microgrid controllers,''.
       (2) Application of 6 percent credit.--Section 
     48(a)(2)(A)(i) is amended by striking ``and'' at the end of 
     subclauses (IV) and (V) and adding at the end the following 
     new subclauses:

       ``(VI) energy storage technology,
       ``(VII) qualified biogas property,
       ``(VIII) microgrid controllers, and
       ``(IX) energy property described in clauses (v) and (vii) 
     of paragraph (3)(A), and''.

       (3) Definitions.--Section 48(c) is amended by adding at the 
     end the following new paragraphs:
       ``(6) Energy storage technology.--
       ``(A) In general.--The term `energy storage technology' 
     means--
       ``(i) property (other than property primarily used in the 
     transportation of goods or individuals and not for the 
     production of electricity) which receives, stores, and 
     delivers energy for conversion to electricity (or, in the 
     case of hydrogen, which stores energy), and has a nameplate 
     capacity of not less than 5 kilowatt hours, and
       ``(ii) thermal energy storage property.
       ``(B) Modifications of certain property.--In the case of 
     any property which either--
       ``(i) was placed in service before the date of enactment of 
     this section and would be described in subparagraph (A)(i), 
     except that such property has a capacity of less than 5 
     kilowatt hours and is modified in a manner that such property 
     (after such modification) has a nameplate capacity of not 
     less than 5 kilowatt hours, or
       ``(ii) is described in subparagraph (A)(i) and is modified 
     in a manner that such property (after such modification) has 
     an increase in nameplate capacity of not less than 5 kilowatt 
     hours,
     such property shall be treated as described in subparagraph 
     (A)(i) except that the basis of any existing property prior 
     to such modification shall not be taken into account for 
     purposes of this section. In the case of any property to 
     which this subparagraph applies, subparagraph (D) shall be 
     applied by substituting `modification' for `construction'.
       ``(C) Thermal energy storage property.--
       ``(i) In general.--Subject to clause (ii), for purposes of 
     this paragraph, the term `thermal energy storage property' 
     means a system which--

       ``(I) is directly connected to a heating, ventilation, or 
     air conditioning system,
       ``(II) removes heat from, or adds heat to, a storage medium 
     for subsequent use, and
       ``(III) provides energy for the heating or cooling of the 
     interior of a residential or commercial building.

       ``(ii) Exclusion.--The term `thermal energy storage 
     property' shall not include--

       ``(I) a swimming pool,
       ``(II) combined heat and power system property, or
       ``(III) a building or its structural components.

       ``(D) Termination.--The term `energy storage technology' 
     shall not include any property the construction of which 
     begins after December 31, 2024.
       ``(7) Qualified biogas property.--
       ``(A) In general.--The term `qualified biogas property' 
     means property comprising a system which--
       ``(i) converts biomass (as defined in section 45K(c)(3), as 
     in effect on the date of enactment of this paragraph) into a 
     gas which--

       ``(I) consists of not less than 52 percent methane by 
     volume, or
       ``(II) is concentrated by such system into a gas which 
     consists of not less than 52 percent methane, and

       ``(ii) captures such gas for sale or productive use, and 
     not for disposal via combustion.
       ``(B) Inclusion of cleaning and conditioning property.--The 
     term `qualified biogas property' includes any property which 
     is part of such system which cleans or conditions such gas.
       ``(C) Termination.--The term `qualified biogas property' 
     shall not include any property the construction of which 
     begins after December 31, 2024.
       ``(8) Microgrid controller.--

[[Page S3947]]

       ``(A) In general.--The term `microgrid controller' means 
     equipment which is--
       ``(i) part of a qualified microgrid, and
       ``(ii) designed and used to monitor and control the energy 
     resources and loads on such microgrid.
       ``(B) Qualified microgrid.--The term `qualified microgrid' 
     means an electrical system which--
       ``(i) includes equipment which is capable of generating not 
     less than 4 kilowatts and not greater than 20 megawatts of 
     electricity,
       ``(ii) is capable of operating--

       ``(I) in connection with the electrical grid and as a 
     single controllable entity with respect to such grid, and
       ``(II) independently (and disconnected) from such grid, and

       ``(iii) is not part of a bulk-power system (as defined in 
     section 215 of the Federal Power Act (16 U.S.C. 824o)).
       ``(C) Termination.--The term `microgrid controller' shall 
     not include any property the construction of which begins 
     after December 31, 2024.''.
       (4) Denial of double benefit for qualified biogas 
     property.--Section 45(e) is amended by adding at the end the 
     following new paragraph:
       ``(12) Coordination with energy credit for qualified biogas 
     property.--The term `qualified facility' shall not include 
     any facility which produces electricity from gas produced by 
     qualified biogas property (as defined in section 48(c)(7)) if 
     a credit is allowed under section 48 with respect to such 
     property for the taxable year or any prior taxable year.''.
       (5) Phaseout of certain energy property.--Section 48(a), as 
     amended by the preceding provisions of this Act, is amended 
     by adding at the end the following new paragraph:
       ``(7) Phaseout for certain energy property.--In the case of 
     any energy property described in clause (vii) of paragraph 
     (3)(A), the energy percentage determined under paragraph (2) 
     shall be equal to--
       ``(A) in the case of any property the construction of which 
     begins before January 1, 2033, and which is placed in service 
     after December 31, 2021, 6 percent,
       ``(B) in the case of any property the construction of which 
     begins after December 31, 2032, and before January 1, 2034, 
     5.2 percent, and
       ``(C) in the case of any property the construction of which 
     begins after December 31, 2033, and before January 1, 2035, 
     4.4 percent.''.
       (6) Public utility property.--Paragraph (2) of section 
     50(d) is amended--
       (A) by adding after the first sentence the following new 
     sentence: ``At the election of a taxpayer, this paragraph 
     shall not apply to any energy storage technology (as defined 
     in section 48(c)(6)), provided--'', and
       (B) by adding the following new subparagraphs:
       ``(A) no election under this paragraph shall be permitted 
     if the making of such election is prohibited by a State or 
     political subdivision thereof, by any agency or 
     instrumentality of the United States, or by a public service 
     or public utility commission or other similar body of any 
     State or political subdivision that regulates public 
     utilities as described in section 7701(a)(33)(A),
       ``(B) an election under this paragraph shall be made 
     separately with respect to each energy storage technology by 
     the due date (including extensions) of the Federal tax return 
     for the taxable year in which the energy storage technology 
     is placed in service by the taxpayer, and once made, may be 
     revoked only with the consent of the Secretary, and
       ``(C) an election shall not apply with respect to any 
     energy storage technology if such energy storage technology 
     has a maximum capacity equal to or less than 500 kilowatt 
     hours.''.
       (g) Fuel Cells Using Electromechanical Processes.--
       (1) In general.--Section 48(c)(1) is amended--
       (A) in subparagraph (A)(i)--
       (i) by inserting ``or electromechanical'' after 
     ``electrochemical'', and
       (ii) by inserting ``(1 kilowatt in the case of a fuel cell 
     power plant with a linear generator assembly)'' after ``0.5 
     kilowatt'', and
       (B) in subparagraph (C)--
       (i) by inserting ``, or linear generator assembly,'' after 
     ``a fuel cell stack assembly'', and
       (ii) by inserting ``or electromechanical'' after 
     ``electrochemical''.
       (2) Linear generator assembly limitation.--Section 48(c)(1) 
     is amended by redesignating subparagraph (D) as subparagraph 
     (E) and by inserting after subparagraph (C) the following new 
     subparagraph:
       ``(D) Linear generator assembly.--The term `linear 
     generator assembly' does not include any assembly which 
     contains rotating parts.''.
       (h) Dynamic Glass.--Section 48(a)(3)(A)(ii) is amended by 
     inserting ``, or electrochromic glass which uses electricity 
     to change its light transmittance properties in order to heat 
     or cool a structure,'' after ``sunlight''.
       (i) Coordination With Low Income Housing Tax Credit.--
     Paragraph (3) of section 50(c) is amended--
       (1) by striking ``and'' at the end of subparagraph (A),
       (2) by striking the period at the end of subparagraph (B) 
     and inserting ``, and'', and
       (3) by adding at the end the following new subparagraph:
       ``(C) paragraph (1) shall not apply for purposes of 
     determining eligible basis under section 42.''.
       (j) Interconnection Property.--Section 48(a), as amended by 
     the preceding provisions of this Act, is amended by adding at 
     the end the following new paragraph:
       ``(8) Interconnection property.--
       ``(A) In general.--For purposes of determining the credit 
     under subsection (a), energy property shall include amounts 
     paid or incurred by the taxpayer for qualified 
     interconnection property in connection with the installation 
     of energy property (as defined in paragraph (3)) which has a 
     maximum net output of not greater than 5 megawatts (as 
     measured in alternating current), to provide for the 
     transmission or distribution of the electricity produced or 
     stored by such property, and which are properly chargeable to 
     the capital account of the taxpayer.
       ``(B) Qualified interconnection property.--The term 
     `qualified interconnection property' means, with respect to 
     an energy project which is not a microgrid controller, any 
     tangible property--
       ``(i) which is part of an addition, modification, or 
     upgrade to a transmission or distribution system which is 
     required at or beyond the point at which the energy project 
     interconnects to such transmission or distribution system in 
     order to accommodate such interconnection,
       ``(ii) either--

       ``(I) which is constructed, reconstructed, or erected by 
     the taxpayer, or
       ``(II) for which the cost with respect to the construction, 
     reconstruction, or erection of such property is paid or 
     incurred by such taxpayer, and

       ``(iii) the original use of which, pursuant to an 
     interconnection agreement, commences with a utility.
       ``(C) Interconnection agreement.--The term `interconnection 
     agreement' means an agreement with a utility for the purposes 
     of interconnecting the energy property owned by such taxpayer 
     to the transmission or distribution system of such utility.
       ``(D) Utility.--For purposes of this paragraph, the term 
     `utility' means the owner or operator of an electrical 
     transmission or distribution system which is subject to the 
     regulatory authority of a State or political subdivision 
     thereof, any agency or instrumentality of the United States, 
     a public service or public utility commission or other 
     similar body of any State or political subdivision thereof, 
     or the governing or ratemaking body of an electric 
     cooperative.
       ``(E) Special rule for interconnection property.--In the 
     case of expenses paid or incurred for interconnection 
     property, amounts otherwise chargeable to capital account 
     with respect to such expenses shall be reduced under rules 
     similar to the rules of section 50(c).''.
       (k) Energy Projects, Wage Requirements, and Apprenticeship 
     Requirements.--Section 48(a), as amended by the preceding 
     provisions of this Act, is amended by adding at the end the 
     following new paragraphs:
       ``(9) Increased credit amount for energy projects.--
       ``(A) In general.--
       ``(i) Rule.--In the case of any energy project which 
     satisfies the requirements of subparagraph (B), the amount of 
     the credit determined under this subsection (determined after 
     the application of paragraphs (1) through (8) and without 
     regard to this clause) shall be equal to such amount 
     multiplied by 5.
       ``(ii) Energy project defined.--For purposes of this 
     subsection, the term `energy project' means a project 
     consisting of one or more energy properties that are part of 
     a single project.
       ``(B) Project requirements.--A project meets the 
     requirements of this subparagraph if it is one of the 
     following:
       ``(i) A project with a maximum net output of less than 1 
     megawatt (as measured in alternating current) of electrical 
     or thermal energy.
       ``(ii) A project the construction of which begins before 
     the date that is 60 days after the Secretary publishes 
     guidance with respect to the requirements of paragraphs 
     (10)(A) and (11).
       ``(iii) A project which satisfies the requirements of 
     paragraphs (10)(A) and (11).
       ``(10) Prevailing wage requirements.--
       ``(A) In general.--The requirements described in this 
     subparagraph with respect to any energy project are that the 
     taxpayer shall ensure that any laborers and mechanics 
     employed by contractors and subcontractors in--
       ``(i) the construction of such energy project, and
       ``(ii) for the 5-year period beginning on the date such 
     project is originally placed in service, the alteration or 
     repair of such project,
     shall be paid wages at rates not less than the prevailing 
     rates for construction, alteration, or repair of a similar 
     character in the locality in which such project is located as 
     most recently determined by the Secretary of Labor, in 
     accordance with subchapter IV of chapter 31 of title 40, 
     United States Code. Subject to subparagraph (C), for purposes 
     of any determination under paragraph (9)(A)(i) for the 
     taxable year in which the energy project is placed in 
     service, the taxpayer shall be deemed to satisfy the 
     requirement under clause (ii) at the time such project is 
     placed in service.
       ``(B) Correction and penalty related to failure to satisfy 
     wage requirements.--Rules similar to the rules of section 
     45(b)(7)(B) shall apply.

[[Page S3948]]

       ``(C) Recapture.--The Secretary shall, by regulations or 
     other guidance, provide for recapturing the benefit of any 
     increase in the credit allowed under this subsection by 
     reason of this paragraph with respect to any project which 
     does not satisfy the requirements under subparagraph (A) 
     (after application of subparagraph (B)) for the period 
     described in clause (ii) of subparagraph (A) (but which does 
     not cease to be investment credit property within the meaning 
     of section 50(a)). The period and percentage of such 
     recapture shall be determined under rules similar to the 
     rules of section 50(a).
       ``(11) Apprenticeship requirements.--Rules similar to the 
     rules of section 45(b)(8) shall apply.''.
       (l) Domestic Content; Phaseout for Elective Payment.--
     Section 48(a), as amended by the preceding provisions of this 
     Act, is amended by adding at the end the following new 
     paragraphs:
       ``(12) Domestic content bonus credit amount.--
       ``(A) In general.--In the case of any energy project which 
     satisfies the requirement under subparagraph (B), for 
     purposes of applying paragraph (2) with respect to such 
     property, the energy percentage shall be increased by the 
     applicable credit rate increase.
       ``(B) Requirement.--Rules similar to the rules of section 
     45(b)(9)(B) shall apply.
       ``(C) Applicable credit rate increase.--For purposes of 
     subparagraph (A), the applicable credit rate increase shall 
     be--
       ``(i) in the case of an energy project which does not 
     satisfy the requirements of paragraph (9)(B), 2 percentage 
     points, and
       ``(ii) in the case of an energy project which satisfies the 
     requirements of paragraph (9)(B), 10 percentage points.
       ``(13) Phaseout for elective payment.--In the case of a 
     taxpayer making an election under section 6417 with respect 
     to a credit under this section, rules similar to the rules of 
     section 45(b)(10) shall apply.''.
       (m) Special Rule for Property Financed by Tax-exempt 
     Bonds.--Section 48(a)(4) is amended to read as follows:
       ``(4) Special rule for property financed by tax-exempt 
     bonds.--Rules similar to the rule under section 45(b)(3) 
     shall apply for purposes of this section.''.
       (n) Treatment of Certain Contracts Involving Energy 
     Storage.--Section 7701(e) is amended--
       (1) in paragraph (3)--
       (A) in subparagraph (A)(i), by striking ``or'' at the end 
     of subclause (II), by striking ``and'' at the end of 
     subclause (III) and inserting ``or'', and by adding at the 
     end the following new subclause:

       ``(IV) the operation of a storage facility, and'', and

       (B) by adding at the end the following new subparagraph:
       ``(F) Storage facility.--For purposes of subparagraph (A), 
     the term `storage facility' means a facility which uses 
     energy storage technology within the meaning of section 
     48(c)(6).'', and
       (2) in paragraph (4), by striking ``or water treatment 
     works facility'' and inserting ``water treatment works 
     facility, or storage facility''.
       (o) Increase in Credit Rate for Energy Communities.--
     Section 48(a), as amended by the preceding provisions of this 
     Act, is amended by adding at the end the following new 
     paragraph:
       ``(14) Increase in credit rate for energy communities.--
       ``(A) In general.--In the case of any energy project that 
     is placed in service within an energy community (as defined 
     in section 45(b)(11)(B), as applied by substituting `energy 
     project' for `qualified facility' each place it appears), for 
     purposes of applying paragraph (2) with respect to energy 
     property which is part of such project, the energy percentage 
     shall be increased by the applicable credit rate increase.
       ``(B) Applicable credit rate increase.--For purposes of 
     subparagraph (A), the applicable credit rate increase shall 
     be equal to--
       ``(i) in the case of any energy project which does not 
     satisfy the requirements of paragraph (9)(B), 2 percentage 
     points, and
       ``(ii) in the case of any energy project which satisfies 
     the requirements of paragraph (9)(B), 10 percentage 
     points.''.
       (p) Regulations.--Section 48(a), as amended by the 
     preceding provisions of this Act, is amended by adding at the 
     end the following new paragraph:
       ``(15) Regulations and guidance.--The Secretary shall issue 
     such regulations or other guidance as the Secretary 
     determines necessary or appropriate to carry out the purposes 
     of this subsection, including regulations or other guidance 
     which provides for requirements for recordkeeping or 
     information reporting for purposes of administering the 
     requirements of this subsection.''.
       (q) Effective Dates.--
       (1) In general.--Except as provided in paragraphs (2) and 
     (3), the amendments made by this section shall apply to 
     property placed in service after December 31, 2021.
       (2) Other property.--The amendments made by subsections 
     (f), (g), (h), (i), (j), (l), (n), and (o) shall apply to 
     property placed in service after December 31, 2022.
       (3) Special rule for property financed by tax-exempt 
     bonds.--The amendments made by subsection (m) shall apply to 
     property the construction of which begins after the date of 
     enactment of this Act.

     SEC. 13103. INCREASE IN ENERGY CREDIT FOR SOLAR AND WIND 
                   FACILITIES PLACED IN SERVICE IN CONNECTION WITH 
                   LOW-INCOME COMMUNITIES.

       (a) In General.--Section 48 is amended by adding at the end 
     the following new subsection:
       ``(e) Special Rules for Certain Solar and Wind Facilities 
     Placed in Service in Connection With Low-income 
     Communities.--
       ``(1) In general.--In the case of any qualified solar and 
     wind facility with respect to which the Secretary makes an 
     allocation of environmental justice solar and wind capacity 
     limitation under paragraph (4)--
       ``(A) the energy percentage otherwise determined under 
     paragraph (2) or (5) of subsection (a) with respect to any 
     eligible property which is part of such facility shall be 
     increased by--
       ``(i) in the case of a facility described in subclause (I) 
     of paragraph (2)(A)(iii) and not described in subclause (II) 
     of such paragraph, 10 percentage points, and
       ``(ii) in the case of a facility described in subclause 
     (II) of paragraph (2)(A)(iii), 20 percentage points, and
       ``(B) the increase in the credit determined under 
     subsection (a) by reason of this subsection for any taxable 
     year with respect to all property which is part of such 
     facility shall not exceed the amount which bears the same 
     ratio to the amount of such increase (determined without 
     regard to this subparagraph) as--
       ``(i) the environmental justice solar and wind capacity 
     limitation allocated to such facility, bears to
       ``(ii) the total megawatt nameplate capacity of such 
     facility, as measured in direct current.
       ``(2) Qualified solar and wind facility.--For purposes of 
     this subsection--
       ``(A) In general.--The term `qualified solar and wind 
     facility' means any facility--
       ``(i) which generates electricity solely from property 
     described in section 45(d)(1) or in clause (i) or (vi) of 
     subsection (a)(3)(A),
       ``(ii) which has a maximum net output of less than 5 
     megawatts (as measured in alternating current), and
       ``(iii) which--

       ``(I) is located in a low-income community (as defined in 
     section 45D(e)) or on Indian land (as defined in section 
     2601(2) of the Energy Policy Act of 1992 (25 U.S.C. 
     3501(2))), or
       ``(II) is part of a qualified low-income residential 
     building project or a qualified low-income economic benefit 
     project.

       ``(B) Qualified low-income residential building project.--A 
     facility shall be treated as part of a qualified low-income 
     residential building project if--
       ``(i) such facility is installed on a residential rental 
     building which participates in a covered housing program (as 
     defined in section 41411(a) of the Violence Against Women Act 
     of 1994 (34 U.S.C. 12491(a)(3)), a housing assistance program 
     administered by the Department of Agriculture under title V 
     of the Housing Act of 1949, a housing program administered by 
     a tribally designated housing entity (as defined in section 
     4(22) of the Native American Housing Assistance and Self-
     Determination Act of 1996 (25 U.S.C. 4103(22))) or such other 
     affordable housing programs as the Secretary may provide, and
       ``(ii) the financial benefits of the electricity produced 
     by such facility are allocated equitably among the occupants 
     of the dwelling units of such building.
       ``(C) Qualified low-income economic benefit project.--A 
     facility shall be treated as part of a qualified low-income 
     economic benefit project if at least 50 percent of the 
     financial benefits of the electricity produced by such 
     facility are provided to households with income of--
       ``(i) less than 200 percent of the poverty line (as defined 
     in section 36B(d)(3)(A)) applicable to a family of the size 
     involved, or
       ``(ii) less than 80 percent of area median gross income (as 
     determined under section 142(d)(2)(B)).
       ``(D) Financial benefit.--For purposes of subparagraphs (B) 
     and (C), electricity acquired at a below-market rate shall 
     not fail to be taken into account as a financial benefit.
       ``(3) Eligible property.--For purposes of this section, the 
     term `eligible property' means energy property which--
       ``(A) is part of a facility described in section 45(d)(1) 
     for which an election was made under subsection (a)(5), or
       ``(B) is described in clause (i) or (vi) of subsection 
     (a)(3)(A),
     including energy storage technology (as described in 
     subsection (a)(3)(A)(ix)) installed in connection with such 
     energy property.
       ``(4) Allocations.--
       ``(A) In general.--Not later than 180 days after the date 
     of enactment of this subsection, the Secretary shall 
     establish a program to allocate amounts of environmental 
     justice solar and wind capacity limitation to qualified solar 
     and wind facilities. In establishing such program and to 
     carry out the purposes of this subsection, the Secretary 
     shall provide procedures to allow for an efficient allocation 
     process, including, when determined appropriate, 
     consideration of multiple projects in a single application if 
     such projects will be placed in service by a single taxpayer.
       ``(B) Limitation.--The amount of environmental justice 
     solar and wind capacity limitation allocated by the Secretary 
     under subparagraph (A) during any calendar year shall not 
     exceed the annual capacity limitation with respect to such 
     year.
       ``(C) Annual capacity limitation.--For purposes of this 
     paragraph, the term `annual

[[Page S3949]]

     capacity limitation' means 1.8 gigawatts of direct current 
     capacity for each of calendar years 2023 and 2024, and zero 
     thereafter.
       ``(D) Carryover of unused limitation.--If the annual 
     capacity limitation for any calendar year exceeds the 
     aggregate amount allocated for such year under this 
     paragraph, such limitation for the succeeding calendar year 
     shall be increased by the amount of such excess. No amount 
     may be carried under the preceding sentence to any calendar 
     year after 2024 except as provided in section 
     48D(h)(4)(D)(ii).
       ``(E) Placed in service deadline.--
       ``(i) In general.--Paragraph (1) shall not apply with 
     respect to any property which is placed in service after the 
     date that is 4 years after the date of the allocation with 
     respect to the facility of which such property is a part.
       ``(ii) Application of carryover.--Any amount of 
     environmental justice solar and wind capacity limitation 
     which expires under clause (i) during any calendar year shall 
     be taken into account as an excess described in subparagraph 
     (D) (or as an increase in such excess) for such calendar 
     year, subject to the limitation imposed by the last sentence 
     of such subparagraph.
       ``(5) Recapture.--The Secretary shall, by regulations or 
     other guidance, provide for recapturing the benefit of any 
     increase in the credit allowed under subsection (a) by reason 
     of this subsection with respect to any property which ceases 
     to be property eligible for such increase (but which does not 
     cease to be investment credit property within the meaning of 
     section 50(a)). The period and percentage of such recapture 
     shall be determined under rules similar to the rules of 
     section 50(a). To the extent provided by the Secretary, such 
     recapture may not apply with respect to any property if, 
     within 12 months after the date the taxpayer becomes aware 
     (or reasonably should have become aware) of such property 
     ceasing to be property eligible for such increase, the 
     eligibility of such property for such increase is restored. 
     The preceding sentence shall not apply more than once with 
     respect to any facility.''.
       (b) Effective Date.--The amendments made by this section 
     shall take effect on January 1, 2023.

     SEC. 13104. EXTENSION AND MODIFICATION OF CREDIT FOR CARBON 
                   OXIDE SEQUESTRATION.

       (a) Modification of Carbon Oxide Capture Requirements.--
       (1) In general.--Section 45Q(d) is amended to read as 
     follows:
       ``(d) Qualified Facility.--For purposes of this section, 
     the term `qualified facility' means any industrial facility 
     or direct air capture facility--
       ``(1) the construction of which begins before January 1, 
     2033, and either--
       ``(A) construction of carbon capture equipment begins 
     before such date, or
       ``(B) the original planning and design for such facility 
     includes installation of carbon capture equipment, and
       ``(2) which--
       ``(A) in the case of a direct air capture facility, 
     captures not less than 1,000 metric tons of qualified carbon 
     oxide during the taxable year,
       ``(B) in the case of an electricity generating facility--
       ``(i) captures not less than 18,750 metric tons of 
     qualified carbon oxide during the taxable year, and
       ``(ii) with respect to any carbon capture equipment for the 
     applicable electric generating unit at such facility, has a 
     capture design capacity of not less than 75 percent of the 
     baseline carbon oxide production of such unit, or
       ``(C) in the case of any other facility, captures not less 
     than 12,500 metric tons of qualified carbon oxide during the 
     taxable year.''.
       (2) Definitions.--
       (A) In general.--Section 45Q(e) is amended--
       (i) by redesignating paragraphs (1) through (3) as 
     paragraphs (3) through (5), respectively, and
       (ii) by inserting after ``For purposes of this section--'' 
     the following new paragraphs:
       ``(1) Applicable electric generating unit.--The term 
     `applicable electric generating unit' means the principal 
     electric generating unit for which the carbon capture 
     equipment is originally planned and designed.
       ``(2) Baseline carbon oxide production.--
       ``(A) In general.--The term `baseline carbon oxide 
     production' means either of the following:
       ``(i) In the case of an applicable electric generating unit 
     which was originally placed in service more than 1 year prior 
     to the date on which construction of the carbon capture 
     equipment begins, the average annual carbon oxide production, 
     by mass, from such unit during the shorter of either the 
     following periods:

       ``(I) The period beginning on the date such unit was placed 
     in service and ending on the date on which construction of 
     such equipment began.
       ``(II) The 6-year period preceding the date on which 
     construction of such equipment began.

       ``(ii) In the case of an applicable electric generating 
     unit which--

       ``(I) as of the date on which construction of the carbon 
     capture equipment begins, is not yet placed in service, or
       ``(II) was placed in service during the 1-year period prior 
     to the date on which construction of the carbon capture 
     equipment begins,

     the designed annual carbon oxide production, by mass, as 
     determined based on an assumed capacity factor of 60 percent.
       ``(B) Capacity factor.--The term `capacity factor' means 
     the ratio (expressed as a percentage) of the actual electric 
     output from the applicable electric generating unit to the 
     potential electric output from such unit.''.
       (B) Conforming amendment.--Section 142(o)(1)(B) is amended 
     by striking ``section 45Q(e)(1)'' and inserting ``section 
     45Q(e)(3)''.
       (b) Modified Applicable Dollar Amount.--Section 
     45Q(b)(1)(A) is amended--
       (1) in clause (i)--
       (A) in subclause (I), by striking ``the dollar amount'' and 
     all that follows through ``such period'' and inserting 
     ``$17'', and
       (B) in subclause (II), by striking ``the dollar amount'' 
     and all that follows through ``such period'' and inserting 
     ``$12'', and
       (2) in clause (ii)--
       (A) in subclause (I), by striking ``$50'' and inserting 
     ``$17'', and
       (B) in subclause (II), by striking ``$35'' and inserting 
     ``$12''.
       (c) Determination of Applicable Dollar Amount.--
       (1) In general.--Section 45Q(b)(1), as amended by the 
     preceding provisions of this Act, is amended--
       (A) by redesignating subparagraph (B) as subparagraph (D), 
     and
       (B) by inserting after subparagraph (A) the following new 
     subparagraphs:
       ``(B) Special rule for direct air capture facilities.--In 
     the case of any qualified facility described in subsection 
     (d)(2)(A) which is placed in service after December 31, 2022, 
     the applicable dollar amount shall be an amount equal to the 
     applicable dollar amount otherwise determined with respect to 
     such qualified facility under subparagraph (A), except that 
     such subparagraph shall be applied--
       ``(i) by substituting `$36' for `$17' each place it 
     appears, and
       ``(ii) by substituting `$26' for `$12' each place it 
     appears.
       ``(C) Applicable dollar amount for additional carbon 
     capture equipment.--In the case of any qualified facility 
     which is placed in service before January 1, 2023, if any 
     additional carbon capture equipment is installed at such 
     facility and such equipment is placed in service after 
     December 31, 2022, the applicable dollar amount shall be an 
     amount equal to the applicable dollar amount otherwise 
     determined under this paragraph, except that subparagraph (B) 
     shall be applied--
       ``(i) by substituting `before January 1, 2023' for `after 
     December 31, 2022', and
       ``(ii) by substituting `the additional carbon capture 
     equipment installed at such qualified facility' for `such 
     qualified facility'.''.
       (2) Conforming amendments.--
       (A) Section 45Q(b)(1)(A) is amended by striking ``The 
     applicable dollar amount'' and inserting ``Except as provided 
     in subparagraph (B) or (C), the applicable dollar amount''.
       (B) Section 45Q(b)(1)(D), as redesignated by paragraph 
     (1)(A), is amended by striking ``subparagraph (A)'' and 
     inserting ``subparagraph (A), (B), or (C)''.
       (d) Installation of Additional Carbon Capture Equipment on 
     Certain Facilities.--
       (1) In general.--Section 45Q(b) is amended by redesignating 
     paragraph (3) as paragraph (4) and by inserting after 
     paragraph (2) the following new paragraph:
       ``(3) Installation of additional carbon capture equipment 
     on certain facilities.--In the case of a qualified facility 
     described in paragraph (1)(C), the amount of qualified carbon 
     oxide which is captured by the taxpayer for purposes of 
     subsection (a) shall be determined pursuant to paragraph (2), 
     as applied--
       ``(A) in the matter preceding subparagraph (A)--
       ``(i) by substituting `January 1, 2023' for `the date of 
     the enactment of the Bipartisan Budget Act of 2018', and
       ``(ii) by substituting `after December 31, 2022' for `on or 
     after the date of the enactment of such Act', and
       ``(B) in subparagraph (A)(ii), by substituting `December 
     31, 2022' for `the day before the date of the enactment of 
     the Bipartisan Budget Act of 2018'.''.
       (2) Conforming amendment.--Section 45Q(b)(2) is amended by 
     striking ``In the case'' and inserting ``Subject to paragraph 
     (3), in the case''.
       (e) Wage and Apprenticeship Requirements.--Section 45Q is 
     amended by redesignating subsection (h) as subsection (i) and 
     inserting after subsection (g) following new subsection:
       ``(h) Increased Credit Amount for Qualified Facilities and 
     Carbon Capture Equipment.--
       ``(1) In general.--In the case of any qualified facility or 
     any carbon capture equipment which satisfy the requirements 
     of paragraph (2), the amount of the credit determined under 
     subsection (a) shall be equal to such amount (determined 
     without regard to this sentence) multiplied by 5.
       ``(2) Requirements.--The requirements described in this 
     paragraph are that--
       ``(A) with respect to any qualified facility the 
     construction of which begins on or after the date that is 60 
     days after the Secretary publishes guidance with respect to 
     the requirements of paragraphs (3)(A) and (4), as well as any 
     carbon capture equipment placed in service at such facility--

[[Page S3950]]

       ``(i) subject to subparagraph (B) of paragraph (3), the 
     taxpayer satisfies the requirements under subparagraph (A) of 
     such paragraph with respect to such facility and equipment, 
     and
       ``(ii) the taxpayer satisfies the requirements under 
     paragraph (4) with respect to the construction of such 
     facility and equipment,
       ``(B) with respect to any carbon capture equipment the 
     construction of which begins after the date that is 60 days 
     after the Secretary publishes guidance with respect to the 
     requirements of paragraphs (3)(A) and (4), and which is 
     installed at a qualified facility the construction of which 
     began prior to such date--
       ``(i) subject to subparagraph (B) of paragraph (3), the 
     taxpayer satisfies the requirements under subparagraph (A) of 
     such paragraph with respect to such equipment, and
       ``(ii) the taxpayer satisfies the requirements under 
     paragraph (4) with respect to the construction of such 
     equipment, or
       ``(C) the construction of carbon capture equipment begins 
     prior to the date that is 60 days after the Secretary 
     publishes guidance with respect to the requirements of 
     paragraphs (3)(A) and (4), and such equipment is installed at 
     a qualified facility the construction of which begins prior 
     to such date.
       ``(3) Prevailing wage requirements.--
       ``(A) In general.--The requirements described in this 
     subparagraph with respect to any qualified facility and any 
     carbon capture equipment placed in service at such facility 
     are that the taxpayer shall ensure that any laborers and 
     mechanics employed by contractors and subcontractors in--
       ``(i) the construction of such facility or equipment, and
       ``(ii) with respect to any taxable year, for any portion of 
     such taxable year which is within the period described in 
     paragraph (3)(A) or (4)(A) of subsection (a), the alteration 
     or repair of such facility or such equipment,
     shall be paid wages at rates not less than the prevailing 
     rates for construction, alteration, or repair of a similar 
     character in the locality in which such facility and 
     equipment are located as most recently determined by the 
     Secretary of Labor, in accordance with subchapter IV of 
     chapter 31 of title 40, United States Code. For purposes of 
     determining an increased credit amount under paragraph (1) 
     for a taxable year, the requirement under clause (ii) of this 
     subparagraph is applied to such taxable year in which the 
     alteration or repair of qualified facility occurs.
       ``(B) Correction and penalty related to failure to satisfy 
     wage requirements.--Rules similar to the rules of section 
     45(b)(7)(B) shall apply.
       ``(4) Apprenticeship requirements.--Rules similar to the 
     rules of section 45(b)(8) shall apply.
       ``(5) Regulations and guidance.--The Secretary shall issue 
     such regulations or other guidance as the Secretary 
     determines necessary or appropriate to carry out the purposes 
     of this subsection, including regulations or other guidance 
     which provides for requirements for recordkeeping or 
     information reporting for purposes of administering the 
     requirements of this subsection.''.
       (f) Credit Reduced for Tax-exempt Bonds.--Section 45Q(f) is 
     amended--
       (1) by striking the second paragraph (3), as added at the 
     end of such section by section 80402(e) of the Infrastructure 
     Investment and Jobs Act (Public Law 117-58), and
       (2) by adding at the end the following new paragraph:
       ``(8) Credit reduced for tax-exempt bonds.--Rules similar 
     to the rule under section 45(b)(3) shall apply for purposes 
     of this section.''.
       (g) Application of Section for Certain Carbon Capture 
     Equipment.--Section 45Q(g) is amended by inserting ``the 
     earlier of January 1, 2023, and'' before ``the end of the 
     calendar year''.
       (h) Election.--Section 45Q(f), as amended by subsection 
     (f), is amended by adding at the end the following new 
     paragraph:
       ``(9) Election.--For purposes of paragraphs (3) and (4) of 
     subsection (a), a person described in paragraph (3)(A)(ii) 
     may elect, at such time and in such manner as the Secretary 
     may prescribe, to have the 12-year period begin on the first 
     day of the first taxable year in which a credit under this 
     section is claimed with respect to carbon capture equipment 
     which is originally placed in service at a qualified facility 
     on or after the date of the enactment of the Bipartisan 
     Budget Act of 2018 (after application of subsection (f)(6), 
     where applicable) if--
       ``(A) no taxpayer claimed a credit under this section with 
     respect to such carbon capture equipment for any prior 
     taxable year,
       ``(B) the qualified facility at which such carbon capture 
     equipment is placed in service is located in an area affected 
     by a federally-declared disaster (as defined by section 
     165(i)(5)(A)) after the carbon capture equipment is 
     originally placed in service, and
       ``(C) such federally-declared disaster results in a 
     cessation of the operation of the qualified facility or the 
     carbon capture equipment after such equipment is originally 
     placed in service.''.
       (i) Regulations for Baseline Carbon Oxide Production.--
     Subsection (i) of section 45Q, as redesignated by subsection 
     (e), is amended--
       (1) in paragraph (1), by striking ``and'',
       (2) in paragraph (2), by striking the period at the end and 
     inserting ``, and'', and
       (3) by adding at the end the following new paragraph:
       ``(3) for purposes of subsection (d)(2)(B)(ii), adjust the 
     baseline carbon oxide production with respect to any 
     applicable electric generating unit at any electricity 
     generating facility if--
       ``(A) after the date on which the carbon capture equipment 
     is placed in service, modifications are made to such unit 
     which result in a significant increase or decrease in carbon 
     oxide production, or
       ``(B) for any reason other than a modification described in 
     subparagraph (A), there is a significant increase or decrease 
     in carbon oxide production with respect to such unit.''.
       (j) Effective Dates.--
       (1) In general.--Except as provided in paragraphs (2), (3), 
     and (4), the amendments made by this section shall apply to 
     facilities or equipment placed in service after December 31, 
     2022.
       (2) Modification of carbon oxide capture requirements.--The 
     amendments made by subsection (a) shall apply to facilities 
     or equipment the construction of which begins after the date 
     of enactment of this Act.
       (3) Application of section for certain carbon capture 
     equipment.--The amendments made by subsection (g) shall take 
     effect on the date of enactment of this Act.
       (4) Election.--The amendments made by subsection (h) shall 
     apply to carbon oxide captured and disposed of after December 
     31, 2021.

     SEC. 13105. ZERO-EMISSION NUCLEAR POWER PRODUCTION CREDIT.

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

     ``SEC. 45U. ZERO-EMISSION NUCLEAR POWER PRODUCTION CREDIT.

       ``(a) Amount of Credit.--For purposes of section 38, the 
     zero-emission nuclear power production credit for any taxable 
     year is an amount equal to the amount by which--
       ``(1) the product of--
       ``(A) 0.3 cents, multiplied by
       ``(B) the kilowatt hours of electricity--
       ``(i) produced by the taxpayer at a qualified nuclear power 
     facility, and
       ``(ii) sold by the taxpayer to an unrelated person during 
     the taxable year, exceeds
       ``(2) the reduction amount for such taxable year.
       ``(b) Definitions.--
       ``(1) Qualified nuclear power facility.--For purposes of 
     this section, the term `qualified nuclear power facility' 
     means any nuclear facility--
       ``(A) which is owned by the taxpayer and which uses nuclear 
     energy to produce electricity,
       ``(B) which is not an advanced nuclear power facility as 
     defined in subsection (d)(1) of section 45J, and
       ``(C) which is placed in service before the date of the 
     enactment of this section.
       ``(2) Reduction amount.--
       ``(A) In general.--For purposes of this section, the term 
     `reduction amount' means, with respect to any qualified 
     nuclear power facility for any taxable year, the amount equal 
     to the lesser of--
       ``(i) the amount determined under subsection (a)(1), or
       ``(ii) the amount equal to 80 percent of the excess of--

       ``(I) subject to subparagraph (B), the gross receipts from 
     any electricity produced by such facility (including any 
     electricity services or products provided in conjunction with 
     the electricity produced by such facility) and sold to an 
     unrelated person during such taxable year, over
       ``(II) the amount equal to the product of--

       ``(aa) 2.5 cents, multiplied by
       ``(bb) the amount determined under subsection (a)(1)(B).
       ``(B) Treatment of certain receipts.--
       ``(i) In general.--The amount determined under subparagraph 
     (A)(ii)(I) shall include any amount received by the taxpayer 
     during the taxable year with respect to the qualified nuclear 
     power facility from a zero-emission credit program.
       ``(ii) Zero-emission credit program.--For purposes of this 
     subparagraph, the term `zero-emission credit program' means 
     any payments with respect to a qualified nuclear power 
     facility as a result of any Federal, State or local 
     government program for, in whole or in part, the zero-
     emission, zero-carbon, or air quality attributes of any 
     portion of the electricity produced by such facility.
       ``(3) Electricity.--For purposes of this section, the term 
     `electricity' means the energy produced by a qualified 
     nuclear power facility from the conversion of nuclear fuel 
     into electric power.
       ``(c) Other Rules.--
       ``(1) Inflation adjustment.--The 0.3 cent amount in 
     subsection (a)(1)(A) and the 2.5 cent amount in subsection 
     (b)(2)(A)(ii)(II)(aa) shall each be adjusted by multiplying 
     such amount by the inflation adjustment factor (as determined 
     under section 45(e)(2), as applied by substituting `calendar 
     year 2023' for `calendar year 1992' in subparagraph (B) 
     thereof) for the calendar year in which the sale occurs. If 
     the 0.3 cent amount as increased under this paragraph is not 
     a multiple of 0.05 cent, such amount shall be rounded to the 
     nearest multiple of 0.05 cent. If the 2.5 cent amount as 
     increased under this paragraph is not a multiple of 0.1 cent, 
     such amount shall be rounded to the nearest multiple of 0.1 
     cent.
       ``(2) Special rules.--Rules similar to the rules of 
     paragraphs (1), (3), (4), and (5) of section 45(e) shall 
     apply for purposes of this section.
       ``(d) Wage Requirements.--

[[Page S3951]]

       ``(1) Increased credit amount for qualified nuclear power 
     facilities.--In the case of any qualified nuclear power 
     facility which satisfies the requirements of paragraph 
     (2)(A), the amount of the credit determined under subsection 
     (a) shall be equal to such amount (as determined without 
     regard to this sentence) multiplied by 5.
       ``(2) Prevailing wage requirements.--
       ``(A) In general.--The requirements described in this 
     subparagraph with respect to any qualified nuclear power 
     facility are that the taxpayer shall ensure that any laborers 
     and mechanics employed by contractors and subcontractors in 
     the alteration or repair of such facility shall be paid wages 
     at rates not less than the prevailing rates for alteration or 
     repair of a similar character in the locality in which such 
     facility is located as most recently determined by the 
     Secretary of Labor, in accordance with subchapter IV of 
     chapter 31 of title 40, United States Code.
       ``(B) Correction and penalty related to failure to satisfy 
     wage requirements.--Rules similar to the rules of section 
     45(b)(7)(B) shall apply.
       ``(3) Regulations and guidance.--The Secretary shall issue 
     such regulations or other guidance as the Secretary 
     determines necessary or appropriate to carry out the purposes 
     of this subsection, including regulations or other guidance 
     which provides for requirements for recordkeeping or 
     information reporting for purposes of administering the 
     requirements of this subsection.
       ``(e) Termination.--This section shall not apply to taxable 
     years beginning after December 31, 2032.''.
       (b) Conforming Amendments.--
       (1) Section 38(b) is amended--
       (A) in paragraph (32), by striking ``plus'' at the end,
       (B) in paragraph (33), by striking the period at the end 
     and inserting ``, plus'', and
       (C) by adding at the end the following new paragraph:
       ``(34) the zero-emission nuclear power production credit 
     determined under section 45U(a).''.
       (2) The table of sections for subpart D of part IV of 
     subchapter A of chapter 1 is amended by adding at the end the 
     following new item:

``Sec. 45U. Zero-emission nuclear power production credit.''.
       (c) Effective Date.--This section shall apply to 
     electricity produced and sold after December 31, 2023, in 
     taxable years beginning after such date.

                          PART 2--CLEAN FUELS

     SEC. 13201. EXTENSION OF INCENTIVES FOR BIODIESEL, RENEWABLE 
                   DIESEL AND ALTERNATIVE FUELS.

       (a) Biodiesel and Renewable Diesel Credit.--Section 40A(g) 
     is amended by striking ``December 31, 2022'' and inserting 
     ``December 31, 2024''.
       (b) Biodiesel Mixture Credit.--
       (1) In general.--Section 6426(c)(6) is amended by striking 
     ``December 31, 2022'' and inserting ``December 31, 2024''.
       (2) Fuels not used for taxable purposes.--Section 
     6427(e)(6)(B) is amended by striking ``December 31, 2022'' 
     and inserting ``December 31, 2024''.
       (c) Alternative Fuel Credit.--Section 6426(d)(5) is amended 
     by striking ``December 31, 2021'' and inserting ``December 
     31, 2024''.
       (d) Alternative Fuel Mixture Credit.--Section 6426(e)(3) is 
     amended by striking ``December 31, 2021'' and inserting 
     ``December 31, 2024''.
       (e) Payments for Alternative Fuels.--Section 6427(e)(6)(C) 
     is amended by striking ``December 31, 2021'' and inserting 
     ``December 31, 2024''.
       (f) Effective Date.--The amendments made by this section 
     shall apply to fuel sold or used after December 31, 2021.
       (g) Special Rule.--Notwithstanding any other provision of 
     law, in the case of any alternative fuel credit properly 
     determined under section 6426(d) of the Internal Revenue Code 
     of 1986 for the period beginning on January 1, 2022, and 
     ending with the close of the last calendar quarter beginning 
     before the date of the enactment of this Act, such credit 
     shall be allowed, and any refund or payment attributable to 
     such credit (including any payment under section 6427(e) of 
     such Code) shall be made, only in such manner as the 
     Secretary of the Treasury (or the Secretary's delegate) shall 
     provide. Such Secretary shall issue guidance within 30 days 
     after the date of the enactment of this Act providing for a 
     one-time submission of claims covering periods described in 
     the preceding sentence. Such guidance shall provide for a 
     180-day period for the submission of such claims (in such 
     manner as prescribed by such Secretary) to begin not later 
     than 30 days after such guidance is issued. Such claims shall 
     be paid by such Secretary not later than 60 days after 
     receipt. If such Secretary has not paid pursuant to a claim 
     filed under this subsection within 60 days after the date of 
     the filing of such claim, the claim shall be paid with 
     interest from such date determined by using the overpayment 
     rate and method under section 6621 of such Code.

     SEC. 13202. EXTENSION OF SECOND GENERATION BIOFUEL 
                   INCENTIVES.

       (a) In General.--Section 40(b)(6)(J)(i) is amended by 
     striking ``2022'' and inserting ``2025''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to qualified second generation biofuel production 
     after December 31, 2021.

     SEC. 13203. SUSTAINABLE AVIATION FUEL CREDIT.

       (a) In General.--Subpart D of part IV of subchapter A of 
     chapter 1 is amended by inserting after section 40A the 
     following new section:

     ``SEC. 40B. SUSTAINABLE AVIATION FUEL CREDIT.

       ``(a) In General.--For purposes of section 38, the 
     sustainable aviation fuel credit determined under this 
     section for the taxable year is, with respect to any sale or 
     use of a qualified mixture which occurs during such taxable 
     year, an amount equal to the product of--
       ``(1) the number of gallons of sustainable aviation fuel in 
     such mixture, multiplied by
       ``(2) the sum of--
       ``(A) $1.25, plus
       ``(B) the applicable supplementary amount with respect to 
     such sustainable aviation fuel.
       ``(b) Applicable Supplementary Amount.--For purposes of 
     this section, the term `applicable supplementary amount' 
     means, with respect to any sustainable aviation fuel, an 
     amount equal to $0.01 for each percentage point by which the 
     lifecycle greenhouse gas emissions reduction percentage with 
     respect to such fuel exceeds 50 percent. In no event shall 
     the applicable supplementary amount determined under this 
     subsection exceed $0.50.
       ``(c) Qualified Mixture.--For purposes of this section, the 
     term `qualified mixture' means a mixture of sustainable 
     aviation fuel and kerosene if--
       ``(1) such mixture is produced by the taxpayer in the 
     United States,
       ``(2) such mixture is used by the taxpayer (or sold by the 
     taxpayer for use) in an aircraft,
       ``(3) such sale or use is in the ordinary course of a trade 
     or business of the taxpayer, and
       ``(4) the transfer of such mixture to the fuel tank of such 
     aircraft occurs in the United States.
       ``(d) Sustainable Aviation Fuel.--
       ``(1) In general.--For purposes of this section, the term 
     `sustainable aviation fuel' means liquid fuel which--
       ``(A) meets the requirements of--
       ``(i) ASTM International Standard D7566, or
       ``(ii) the Fischer Tropsch provisions of ASTM International 
     Standard D1655, Annex A1,
       ``(B) is not derived from coprocessing an applicable 
     material (or materials derived from an applicable material) 
     with a feedstock which is not biomass,
       ``(C) is not derived from palm fatty acid distillates or 
     petroleum, and
       ``(D) has been certified in accordance with subsection (e) 
     as having a lifecycle greenhouse gas emissions reduction 
     percentage of at least 50 percent.
       ``(2) Definitions.--In this subsection--
       ``(A) Applicable material.--The term `applicable material' 
     means--
       ``(i) monoglycerides, diglycerides, and triglycerides,
       ``(ii) free fatty acids, and
       ``(iii) fatty acid esters.
       ``(B) Biomass.--The term `biomass' has the same meaning 
     given such term in section 45K(c)(3).
       ``(e) Lifecycle Greenhouse Gas Emissions Reduction 
     Percentage.--For purposes of this section, the term 
     `lifecycle greenhouse gas emissions reduction percentage' 
     means, with respect to any sustainable aviation fuel, the 
     percentage reduction in lifecycle greenhouse gas emissions 
     achieved by such fuel as compared with petroleum-based jet 
     fuel, as defined in accordance with--
       ``(1) the most recent Carbon Offsetting and Reduction 
     Scheme for International Aviation which has been adopted by 
     the International Civil Aviation Organization with the 
     agreement of the United States, or
       ``(2) any similar methodology which satisfies the criteria 
     under section 211(o)(1)(H) of the Clean Air Act (42 U.S.C. 
     7545(o)(1)(H)), as in effect on the date of enactment of this 
     section.
       ``(f) Registration of Sustainable Aviation Fuel 
     Producers.--No credit shall be allowed under this section 
     with respect to any sustainable aviation fuel unless the 
     producer of such fuel--
       ``(1) is registered with the Secretary under section 4101, 
     and
       ``(2) provides--
       ``(A) certification (in such form and manner as the 
     Secretary shall prescribe) from an unrelated party 
     demonstrating compliance with--
       ``(i) any general requirements, supply chain traceability 
     requirements, and information transmission requirements 
     established under the Carbon Offsetting and Reduction Scheme 
     for International Aviation described in paragraph (1) of 
     subsection (e), or
       ``(ii) in the case of any methodology established under 
     paragraph (2) of such subsection, requirements similar to the 
     requirements described in clause (i), and
       ``(B) such other information with respect to such fuel as 
     the Secretary may require for purposes of carrying out this 
     section.
       ``(g) Coordination With Credit Against Excise Tax.--The 
     amount of the credit determined under this section with 
     respect to any sustainable aviation fuel shall, under rules 
     prescribed by the Secretary, be properly reduced to take into 
     account any benefit provided with respect to such sustainable 
     aviation fuel solely by reason of the application of section 
     6426 or 6427(e).

[[Page S3952]]

       ``(h) Termination.--This section shall not apply to any 
     sale or use after December 31, 2024.''.
       (b) Credit Made Part of General Business Credit.-- Section 
     38(b), as amended by the preceding provisions of this Act, is 
     amended by striking ``plus'' at the end of paragraph (33), by 
     striking the period at the end of paragraph (34) and 
     inserting ``, plus'', and by inserting after paragraph (34) 
     the following new paragraph:
       ``(35) the sustainable aviation fuel credit determined 
     under section 40B.''.
       (c) Coordination With Biodiesel Incentives.--
       (1) In general.--Section 40A(d)(1) is amended by inserting 
     ``or 40B'' after ``determined under section 40''.
       (2) Conforming amendment.--Section 40A(f) is amended by 
     striking paragraph (4).
       (d) Sustainable Aviation Fuel Added to Credit for Alcohol 
     Fuel, Biodiesel, and Alternative Fuel Mixtures.--
       (1) In general.--Section 6426 is amended by adding at the 
     end the following new subsection:
       ``(k) Sustainable Aviation Fuel Credit.--
       ``(1) In general.--For purposes of this section, the 
     sustainable aviation fuel credit for the taxable year is, 
     with respect to any sale or use of a qualified mixture, an 
     amount equal to the product of--
       ``(A) the number of gallons of sustainable aviation fuel in 
     such mixture, multiplied by
       ``(B) the sum of--
       ``(i) $1.25, plus
       ``(ii) the applicable supplementary amount with respect to 
     such sustainable aviation fuel.
       ``(2) Definitions.--Any term used in this subsection which 
     is also used in section 40B shall have the meaning given such 
     term by section 40B.
       ``(3) Registration requirement.--For purposes of this 
     subsection, rules similar to the rules of section 40B(f) 
     shall apply.''.
       (2) Conforming amendments.--
       (A) Section 6426 is amended--
       (i) in subsection (a)(1), by striking ``and (e)'' and 
     inserting ``(e), and (k)'', and
       (ii) in subsection (h), by striking ``under section 40 or 
     40A'' and inserting ``under section 40, 40A, or 40B''.
       (B) Section 6427(e) is amended--
       (i) in the heading, by striking ``or Alternative Fuel'' and 
     inserting, ``Alternative Fuel, or Sustainable Aviation 
     Fuel'',
       (ii) in paragraph (1), by inserting ``or the sustainable 
     aviation fuel mixture credit'' after ``alternative fuel 
     mixture credit'', and
       (iii) in paragraph (6)--

       (I) in subparagraph (C), by striking ``and'' at the end,
       (II) in subparagraph (D), by striking the period at the end 
     and inserting ``, and'', and
       (III) by adding at the end the following new subparagraph:

       ``(E) any qualified mixture of sustainable aviation fuel 
     (as defined in section 6426(k)(3)) sold or used after 
     December 31, 2024.''.
       (C) Section 4101(a)(1) is amended by inserting ``every 
     person producing sustainable aviation fuel (as defined in 
     section 40B),'' before ``and every person producing second 
     generation biofuel''.
       (D) The table of sections for subpart D of subchapter A of 
     chapter 1 is amended by inserting after the item relating to 
     section 40A the following new item:

``Sec. 40B. Sustainable aviation fuel credit.''.
       (e) Amount of Credit Included in Gross Income.--Section 87 
     is amended by striking ``and'' in paragraph (1), by striking 
     the period at the end of paragraph (2) and inserting ``, 
     and'', and by adding at the end the following new paragraph:
       ``(3) the sustainable aviation fuel credit determined with 
     respect to the taxpayer for the taxable year under section 
     40B(a).''.
       (f) Effective Date.--The amendments made by this section 
     shall apply to fuel sold or used after December 31, 2022.

     SEC. 13204. CLEAN HYDROGEN.

       (a) Credit for Production of Clean Hydrogen.--
       (1) In general.--Subpart D of part IV of subchapter A of 
     chapter 1, as amended by the preceding provisions of this 
     Act, is amended by adding at the end the following new 
     section:

     ``SEC. 45V. CREDIT FOR PRODUCTION OF CLEAN HYDROGEN.

       ``(a) Amount of Credit.--For purposes of section 38, the 
     clean hydrogen production credit for any taxable year is an 
     amount equal to the product of--
       ``(1) the kilograms of qualified clean hydrogen produced by 
     the taxpayer during such taxable year at a qualified clean 
     hydrogen production facility during the 10-year period 
     beginning on the date such facility was originally placed in 
     service, multiplied by
       ``(2) the applicable amount (as determined under subsection 
     (b)) with respect to such hydrogen.
       ``(b) Applicable Amount.--
       ``(1) In general.--For purposes of subsection (a)(2), the 
     applicable amount shall be an amount equal to the applicable 
     percentage of $0.60. If any amount as determined under the 
     preceding sentence is not a multiple of 0.1 cent, such amount 
     shall be rounded to the nearest multiple of 0.1 cent.
       ``(2) Applicable percentage.--For purposes of paragraph 
     (1), the applicable percentage shall be determined as 
     follows:
       ``(A) In the case of any qualified clean hydrogen which is 
     produced through a process that results in a lifecycle 
     greenhouse gas emissions rate of--
       ``(i) not greater than 4 kilograms of CO2e per kilogram of 
     hydrogen, and
       ``(ii) not less than 2.5 kilograms of CO2e per kilogram of 
     hydrogen,
     the applicable percentage shall be 20 percent.
       ``(B) In the case of any qualified clean hydrogen which is 
     produced through a process that results in a lifecycle 
     greenhouse gas emissions rate of--
       ``(i) less than 2.5 kilograms of CO2e per kilogram of 
     hydrogen, and
       ``(ii) not less than 1.5 kilograms of CO2e per kilogram of 
     hydrogen,
     the applicable percentage shall be 25 percent.
       ``(C) In the case of any qualified clean hydrogen which is 
     produced through a process that results in a lifecycle 
     greenhouse gas emissions rate of--
       ``(i) less than 1.5 kilograms of CO2e per kilogram of 
     hydrogen, and
       ``(ii) not less than 0.45 kilograms of CO2e per kilogram of 
     hydrogen,
     the applicable percentage shall be 33.4 percent.
       ``(D) In the case of any qualified clean hydrogen which is 
     produced through a process that results in a lifecycle 
     greenhouse gas emissions rate of less than 0.45 kilograms of 
     CO2e per kilogram of hydrogen, the applicable percentage 
     shall be 100 percent.
       ``(3) Inflation adjustment.--The $0.60 amount in paragraph 
     (1) shall be adjusted by multiplying such amount by the 
     inflation adjustment factor (as determined under section 
     45(e)(2), determined by substituting `2022' for `1992' in 
     subparagraph (B) thereof) for the calendar year in which the 
     qualified clean hydrogen is produced. If any amount as 
     increased under the preceding sentence is not a multiple of 
     0.1 cent, such amount shall be rounded to the nearest 
     multiple of 0.1 cent.
       ``(c) Definitions.--For purposes of this section--
       ``(1) Lifecycle greenhouse gas emissions.--
       ``(A) In general.--Subject to subparagraph (B), the term 
     `lifecycle greenhouse gas emissions' has the same meaning 
     given such term under subparagraph (H) of section 211(o)(1) 
     of the Clean Air Act (42 U.S.C. 7545(o)(1)), as in effect on 
     the date of enactment of this section.
       ``(B) GREET model.--The term `lifecycle greenhouse gas 
     emissions' shall only include emissions through the point of 
     production (well-to-gate), as determined under the most 
     recent Greenhouse gases, Regulated Emissions, and Energy use 
     in Transportation model (commonly referred to as the `GREET 
     model') developed by Argonne National Laboratory, or a 
     successor model (as determined by the Secretary).
       ``(2) Qualified clean hydrogen.--
       ``(A) In general.--The term `qualified clean hydrogen' 
     means hydrogen which is produced through a process that 
     results in a lifecycle greenhouse gas emissions rate of not 
     greater than 4 kilograms of CO2e per kilogram of hydrogen.
       ``(B) Additional requirements.--Such term shall not include 
     any hydrogen unless--
       ``(i) such hydrogen is produced--

       ``(I) in the United States (as defined in section 638(1)) 
     or a possession of the United States (as defined in section 
     638(2)),
       ``(II) in the ordinary course of a trade or business of the 
     taxpayer, and
       ``(III) for sale or use, and

       ``(ii) the production and sale or use of such hydrogen is 
     verified by an unrelated party.
       ``(C) Provisional emissions rate.--In the case of any 
     hydrogen for which a lifecycle greenhouse gas emissions rate 
     has not been determined for purposes of this section, a 
     taxpayer producing such hydrogen may file a petition with the 
     Secretary for determination of the lifecycle greenhouse gas 
     emissions rate with respect to such hydrogen.
       ``(3) Qualified clean hydrogen production facility.--The 
     term `qualified clean hydrogen production facility' means a 
     facility--
       ``(A) owned by the taxpayer,
       ``(B) which produces qualified clean hydrogen, and
       ``(C) the construction of which begins before January 1, 
     2033.
       ``(d) Special Rules.--
       ``(1) Treatment of facilities owned by more than 1 
     taxpayer.--Rules similar to the rules section 45(e)(3) shall 
     apply for purposes of this section.
       ``(2) Coordination with credit for carbon oxide 
     sequestration.--No credit shall be allowed under this section 
     with respect to any qualified clean hydrogen produced at a 
     facility which includes carbon capture equipment for which a 
     credit is allowed to any taxpayer under section 45Q for the 
     taxable year or any prior taxable year.
       ``(e) Increased Credit Amount for Qualified Clean Hydrogen 
     Production Facilities.--
       ``(1) In general.--In the case of any qualified clean 
     hydrogen production facility which satisfies the requirements 
     of paragraph (2), the amount of the credit determined under 
     subsection (a) with respect to qualified clean hydrogen 
     described in subsection (b)(2) shall be equal to such amount 
     (determined without regard to this sentence) multiplied by 5.
       ``(2) Requirements.--A facility meets the requirements of 
     this paragraph if it is one of the following:
       ``(A) A facility--
       ``(i) the construction of which begins prior to the date 
     that is 60 days after the Secretary publishes guidance with 
     respect to the requirements of paragraphs (3)(A) and (4), and

[[Page S3953]]

       ``(ii) which meets the requirements of paragraph (3)(A) 
     with respect to alteration or repair of such facility which 
     occurs after such date.
       ``(B) A facility which satisfies the requirements of 
     paragraphs (3)(A) and (4).
       ``(3) Prevailing wage requirements.--
       ``(A) In general.--The requirements described in this 
     subparagraph with respect to any qualified clean hydrogen 
     production facility are that the taxpayer shall ensure that 
     any laborers and mechanics employed by contractors and 
     subcontractors in--
       ``(i) the construction of such facility, and
       ``(ii) with respect to any taxable year, for any portion of 
     such taxable year which is within the period described in 
     subsection (a)(2), the alteration or repair of such facility,
     shall be paid wages at rates not less than the prevailing 
     rates for construction, alteration, or repair of a similar 
     character in the locality in which such facility is located 
     as most recently determined by the Secretary of Labor, in 
     accordance with subchapter IV of chapter 31 of title 40, 
     United States Code. For purposes of determining an increased 
     credit amount under paragraph (1) for a taxable year, the 
     requirement under clause (ii) of this subparagraph is applied 
     to such taxable year in which the alteration or repair of 
     qualified facility occurs.
       ``(B) Correction and penalty related to failure to satisfy 
     wage requirements.--Rules similar to the rules of section 
     45(b)(7)(B) shall apply.
       ``(4) Apprenticeship requirements.--Rules similar to the 
     rules of section 45(b)(8) shall apply.
       ``(5) Regulations and guidance.--The Secretary shall issue 
     such regulations or other guidance as the Secretary 
     determines necessary or appropriate to carry out the purposes 
     of this subsection, including regulations or other guidance 
     which provides for requirements for recordkeeping or 
     information reporting for purposes of administering the 
     requirements of this subsection.
       ``(f) Regulations.--Not later than 1 year after the date of 
     enactment of this section, the Secretary shall issue 
     regulations or other guidance to carry out the purposes of 
     this section, including regulations or other guidance for 
     determining lifecycle greenhouse gas emissions.''.
       (2) Credit reduced for tax-exempt bonds.--Section 45V(d), 
     as added by this section, is amended by adding at the end the 
     following new paragraph:
       ``(3) Credit reduced for tax-exempt bonds.--Rules similar 
     to the rule under section 45(b)(3) shall apply for purposes 
     of this section.''.
       (3) Modification of existing facilities.--Section 45V(d), 
     as added and amended by the preceding provisions of this 
     section, is amended by adding at the end the following new 
     paragraph:
       ``(4) Modification of existing facilities.--For purposes of 
     subsection (a)(2), in the case of any facility which--
       ``(A) was originally placed in service before January 1, 
     2023, and, prior to the modification described in 
     subparagraph (B), did not produce qualified clean hydrogen, 
     and
       ``(B) after the date such facility was originally placed in 
     service--
       ``(i) is modified to produce qualified clean hydrogen, and
       ``(ii) amounts paid or incurred with respect to such 
     modification are properly chargeable to capital account of 
     the taxpayer,
     such facility shall be deemed to have been originally placed 
     in service as of the date that the property required to 
     complete the modification described in subparagraph (B) is 
     placed in service.''.
       (4) Conforming amendments.--
       (A) Section 38(b), as amended by the preceding provisions 
     of this Act, is amended--
       (i) in paragraph (34), by striking ``plus'' at the end,
       (ii) in paragraph (35), by striking the period at the end 
     and inserting ``, plus'', and
       (iii) by adding at the end the following new paragraph:
       ``(36) the clean hydrogen production credit determined 
     under section 45V(a).''.
       (B) The table of sections for subpart D of part IV of 
     subchapter A of chapter 1, as amended by the preceding 
     provisions of this Act, is amended by adding at the end the 
     following new item:

``Sec. 45V. Credit for production of clean hydrogen.''.
       (5) Effective dates.--
       (A) In general.--The amendments made by paragraphs (1) and 
     (4) of this subsection shall apply to hydrogen produced after 
     December 31, 2022.
       (B) Credit reduced for tax-exempt bonds.--The amendment 
     made by paragraph (2) shall apply to facilities the 
     construction of which begins after the date of enactment of 
     this Act.
       (C) Modification of existing facilities.--The amendment 
     made by paragraph (3) shall apply to modifications made after 
     December 31, 2022.
       (b) Credit for Electricity Produced From Renewable 
     Resources Allowed if Electricity Is Used to Produce Clean 
     Hydrogen.--
       (1) In general.--Section 45(e), as amended by the preceding 
     provisions of this Act, is amended by adding at the end the 
     following new paragraph:
       ``(13) Special rule for electricity used at a qualified 
     clean hydrogen production facility.--Electricity produced by 
     the taxpayer shall be treated as sold by such taxpayer to an 
     unrelated person during the taxable year if--
       ``(A) such electricity is used during such taxable year by 
     the taxpayer or a person related to the taxpayer at a 
     qualified clean hydrogen production facility (as defined in 
     section 45V(c)(3)) to produce qualified clean hydrogen (as 
     defined in section 45V(c)(2)), and
       ``(B) such use and production is verified (in such form or 
     manner as the Secretary may prescribe) by an unrelated third 
     party.''.
       (2) Similar rule for zero-emission nuclear power production 
     credit.--Subsection (c)(2) of section 45U, as added by 
     section 13105 of this Act, is amended by striking ``and (5)'' 
     and inserting ``(5), and (13)''.
       (3) Effective date.--The amendments made by this subsection 
     shall apply to electricity produced after December 31, 2022.
       (c) Election to Treat Clean Hydrogen Production Facilities 
     as Energy Property.--
       (1) In general.--Section 48(a), as amended by the preceding 
     provisions of this Act, is amended--
       (A) by redesignating paragraph (15) as paragraph (16), and
       (B) by inserting after paragraph (14) the following new 
     paragraph:
       ``(15) Election to treat clean hydrogen production 
     facilities as energy property.--
       ``(A) In general.--In the case of any qualified property 
     (as defined in paragraph (5)(D)) which is part of a specified 
     clean hydrogen production facility--
       ``(i) such property shall be treated as energy property for 
     purposes of this section, and
       ``(ii) the energy percentage with respect to such property 
     is--

       ``(I) in the case of a facility which is designed and 
     reasonably expected to produce qualified clean hydrogen which 
     is described in a subparagraph (A) of section 45V(b)(2), 1.2 
     percent,
       ``(II) in the case of a facility which is designed and 
     reasonably expected to produce qualified clean hydrogen which 
     is described in a subparagraph (B) of such section, 1.5 
     percent,
       ``(III) in the case of a facility which is designed and 
     reasonably expected to produce qualified clean hydrogen which 
     is described in a subparagraph (C) of such section, 2 
     percent, and
       ``(IV) in the case of a facility which is designed and 
     reasonably expected to produce qualified clean hydrogen which 
     is described in subparagraph (D) of such section, 6 percent.

       ``(B) Denial of production credit.--No credit shall be 
     allowed under section 45V or section 45Q for any taxable year 
     with respect to any specified clean hydrogen production 
     facility or any carbon capture equipment included at such 
     facility.
       ``(C) Specified clean hydrogen production facility.--For 
     purposes of this paragraph, the term `specified clean 
     hydrogen production facility' means any qualified clean 
     hydrogen production facility (as defined in section 
     45V(c)(3))--
       ``(i) which is placed in service after December 31, 2022,
       ``(ii) with respect to which--

       ``(I) no credit has been allowed under section 45V or 45Q, 
     and
       ``(II) the taxpayer makes an irrevocable election to have 
     this paragraph apply, and

       ``(iii) for which an unrelated third party has verified (in 
     such form or manner as the Secretary may prescribe) that such 
     facility produces hydrogen through a process which results in 
     lifecycle greenhouse gas emissions which are consistent with 
     the hydrogen that such facility was designed and expected to 
     produce under subparagraph (A)(ii).
       ``(D) Qualified clean hydrogen.--For purposes of this 
     paragraph, the term `qualified clean hydrogen' has the 
     meaning given such term by section 45V(c)(2).
       ``(E) Regulations.--The Secretary shall issue such 
     regulations or other guidance as the Secretary determines 
     necessary or appropriate to carry out the purposes of this 
     section, including regulations or other guidance which 
     recaptures so much of any credit allowed under this section 
     as exceeds the amount of the credit which would have been 
     allowed if the expected production were consistent with the 
     actual verified production (or all of the credit so allowed 
     in the absence of such verification).''.
       (2) Conforming amendment.--Paragraph (9)(A)(i) of section 
     48(a), as added by section 13102, is amended by inserting 
     ``and paragraph (15)'' after ``paragraphs (1) through (8)''.
       (3) Effective date.--The amendments made by this subsection 
     shall apply to property placed in service after December 31, 
     2022, and, for any property the construction of which begins 
     prior to January 1, 2023, only to the extent of the basis 
     thereof attributable to the construction, reconstruction, or 
     erection after December 31, 2022.
       (d) Termination of Excise Tax Credit for Hydrogen.--
       (1) In general.--Section 6426(d)(2) is amended by striking 
     subparagraph (D) and by redesignating subparagraphs (E), (F), 
     and (G) as subparagraphs (D), (E), and (F), respectively.
       (2) Conforming amendment.--Section 6426(e)(2) is amended by 
     striking ``(F)'' and inserting ``(E)''.
       (3) Effective date.--The amendments made by this subsection 
     shall apply to fuel sold or used after December 31, 2022.

[[Page S3954]]

  


     PART 3--CLEAN ENERGY AND EFFICIENCY INCENTIVES FOR INDIVIDUALS

     SEC. 13301. EXTENSION, INCREASE, AND MODIFICATIONS OF 
                   NONBUSINESS ENERGY PROPERTY CREDIT.

       (a) Extension of Credit.--Section 25C(g)(2) is amended by 
     striking ``December 31, 2021'' and inserting ``December 31, 
     2032''.
       (b) Allowance of Credit.--Section 25C(a) is amended to read 
     as follows:
       ``(a) Allowance of Credit.--In the case of an individual, 
     there shall be allowed as a credit against the tax imposed by 
     this chapter for the taxable year an amount equal to 30 
     percent of the sum of--
       ``(1) the amount paid or incurred by the taxpayer for 
     qualified energy efficiency improvements installed during 
     such taxable year, and
       ``(2) the amount of the residential energy property 
     expenditures paid or incurred by the taxpayer during such 
     taxable year.''.
       (c) Application of Annual Limitation in Lieu of Lifetime 
     Limitation.--Section 25C(b) is amended to read as follows:
       ``(b) Limitations.--
       ``(1) In general.--The credit allowed under this section 
     with respect to any taxpayer for any taxable year shall not 
     exceed $1,200.
       ``(2) Energy property.--The credit allowed under this 
     section by reason of subsection (a)(2) with respect to any 
     taxpayer for any taxable year shall not exceed, with respect 
     to any item of qualified energy property, $600.
       ``(3) Windows.--The credit allowed under this section by 
     reason of subsection (a)(1) with respect to any taxpayer for 
     any taxable year shall not exceed, in the aggregate with 
     respect to all exterior windows and skylights, $600.
       ``(4) Doors.--The credit allowed under this section by 
     reason of subsection (a)(1) with respect to any taxpayer for 
     any taxable year shall not exceed--
       ``(A) $250 in the case of any exterior door, and
       ``(B) $500 in the aggregate with respect to all exterior 
     doors.
       ``(5) Heat pump and heat pump water heaters; biomass stoves 
     and boilers.--Notwithstanding paragraphs (1) and (2), the 
     credit allowed under this section by reason of subsection 
     (a)(2) with respect to any taxpayer for any taxable year 
     shall not, in the aggregate, exceed $2,000 with respect to 
     amounts paid or incurred for property described in clauses 
     (i) and (ii) of subsection (d)(2)(A) and in subsection 
     (d)(2)(B).''.
       (d) Modifications Related to Qualified Energy Efficiency 
     Improvements.--
       (1) Standards for energy efficient building envelope 
     components.--Section 25C(c)(2) is amended by striking 
     ``meets--'' and all that follows through the period at the 
     end and inserting the following: ``meets--
       ``(A) in the case of an exterior window or skylight, Energy 
     Star most efficient certification requirements,
       ``(B) in the case of an exterior door, applicable Energy 
     Star requirements, and
       ``(C) in the case of any other component, the prescriptive 
     criteria for such component established by the most recent 
     International Energy Conservation Code standard in effect as 
     of the beginning of the calendar year which is 2 years prior 
     to the calendar year in which such component is placed in 
     service.''.
       (2) Roofs not treated as building envelope components.--
     Section 25C(c)(3) is amended by adding ``and'' at the end of 
     subparagraph (B), by striking ``, and'' at the end of 
     subparagraph (C) and inserting a period, and by striking 
     subparagraph (D).
       (3) Air sealing insulation added to definition of building 
     envelope component.--Section 25C(c)(3)(A) is amended by 
     inserting ``, including air sealing material or system,'' 
     after ``material or system''.
       (e) Modification of Residential Energy Property 
     Expenditures.--Section 25C(d) is amended to read as follows:
       ``(d) Residential Energy Property Expenditures.--For 
     purposes of this section--
       ``(1) In general.--The term `residential energy property 
     expenditures' means expenditures made by the taxpayer for 
     qualified energy property which is--
       ``(A) installed on or in connection with a dwelling unit 
     located in the United States and used as a residence by the 
     taxpayer, and
       ``(B) originally placed in service by the taxpayer.
     Such term includes expenditures for labor costs properly 
     allocable to the onsite preparation, assembly, or original 
     installation of the property.
       ``(2) Qualified energy property.--The term `qualified 
     energy property' means any of the following:
       ``(A) Any of the following which meet or exceed the highest 
     efficiency tier (not including any advanced tier) established 
     by the Consortium for Energy Efficiency which is in effect as 
     of the beginning of the calendar year in which the property 
     is placed in service:
       ``(i) An electric or natural gas heat pump water heater.
       ``(ii) An electric or natural gas heat pump.
       ``(iii) A central air conditioner.
       ``(iv) A natural gas, propane, or oil water heater.
       ``(v) A natural gas, propane, or oil furnace or hot water 
     boiler.
       ``(B) A biomass stove or boiler which--
       ``(i) uses the burning of biomass fuel to heat a dwelling 
     unit located in the United States and used as a residence by 
     the taxpayer, or to heat water for use in such a dwelling 
     unit, and
       ``(ii) has a thermal efficiency rating of at least 75 
     percent (measured by the higher heating value of the fuel).
       ``(C) Any oil furnace or hot water boiler which--
       ``(i) is placed in service after December 31, 2022, and 
     before January 1, 2027, and--

       ``(I) meets or exceeds 2021 Energy Star efficiency 
     criteria, and
       ``(II) is rated by the manufacturer for use with fuel 
     blends at least 20 percent of the volume of which consists of 
     an eligible fuel, or

       ``(ii) is placed in service after December 31, 2026, and--

       ``(I) achieves an annual fuel utilization efficiency rate 
     of not less than 90, and
       ``(II) is rated by the manufacturer for use with eligible 
     fuel blends of 50 percent or more.

       ``(D) Any improvement to, or replacement of, a panelboard, 
     sub-panelboard, branch circuits, or feeders which--
       ``(i) is installed in a manner consistent with the National 
     Electric Code,
       ``(ii) has a load capacity of not less than 200 amps,
       ``(iii) is installed in conjunction with--

       ``(I) any qualified energy efficiency improvements, or
       ``(II) any qualified energy property described in 
     subparagraphs (A) through (C) for which a credit is allowed 
     under this section for expenditures with respect to such 
     property, and

       ``(iv) enables the installation and use of any property 
     described in subclause (I) or (II) of clause (iii).
       ``(3) Eligible fuel.--For purposes of paragraph (2), the 
     term `eligible fuel' means--
       ``(A) biodiesel and renewable diesel (within the meaning of 
     section 40A), and
       ``(B) second generation biofuel (within the meaning of 
     section 40).''.
       (f) Home Energy Audits.--
       (1) In general.--Section 25C(a), as amended by subsection 
     (b), is amended by striking ``and'' at the end of paragraph 
     (1), by striking the period at the end of paragraph (2) and 
     inserting ``, and'', and by adding at the end the following 
     new paragraph:
       ``(3) the amount paid or incurred by the taxpayer during 
     the taxable year for home energy audits.''.
       (2) Limitation.--Section 25C(b), as amended by subsection 
     (c), is amended adding at the end the following new 
     paragraph:
       ``(6) Home energy audits.--
       ``(A) Dollar limitation.--The amount of the credit allowed 
     under this section by reason of subsection (a)(3) shall not 
     exceed $150.
       ``(B) Substantiation requirement.--No credit shall be 
     allowed under this section by reason of subsection (a)(3) 
     unless the taxpayer includes with the taxpayer's return of 
     tax such information or documentation as the Secretary may 
     require.''.
       (3) Home energy audits.--
       (A) In general.--Section 25C is amended by redesignating 
     subsections (e), (f), and (g), as subsections (f), (g), and 
     (h), respectively, and by inserting after subsection (d) the 
     following new subsection:
       ``(e) Home Energy Audits.--For purposes of this section, 
     the term `home energy audit' means an inspection and written 
     report with respect to a dwelling unit located in the United 
     States and owned or used by the taxpayer as the taxpayer's 
     principal residence (within the meaning of section 121) 
     which--
       ``(1) identifies the most significant and cost-effective 
     energy efficiency improvements with respect to such dwelling 
     unit, including an estimate of the energy and cost savings 
     with respect to each such improvement, and
       ``(2) is conducted and prepared by a home energy auditor 
     that meets the certification or other requirements specified 
     by the Secretary in regulations or other guidance (as 
     prescribed by the Secretary not later than 365 days after the 
     date of the enactment of this subsection).''.
       (B) Conforming amendment.--Section 1016(a)(33) is amended 
     by striking ``section 25C(f)'' and inserting ``section 
     25C(g)''.
       (4) Lack of substantiation treated as mathematical or 
     clerical error.--Section 6213(g)(2) is amended--
       (A) in subparagraph (P), by striking ``and'' at the end,
       (B) in subparagraph (Q), by striking the period at the end 
     and inserting ``, and'', and
       (C) by inserting after subparagraph (Q) the following:
       ``(R) an omission of information or documentation required 
     under section 25C(b)(6)(B) (relating to home energy audits) 
     to be included on a return.''.
       (g) Identification Number Requirement.--
       (1) In general.--Section 25C, as amended by this section, 
     is amended by redesignating subsection (h) as subsection (i) 
     and by inserting after subsection (g) the following new 
     subsection:
       ``(h) Product Identification Number Requirement.--
       ``(1) In general.--No credit shall be allowed under 
     subsection (a) with respect to any item of specified property 
     placed in service after December 31, 2024, unless--
       ``(A) such item is produced by a qualified manufacturer, 
     and
       ``(B) the taxpayer includes the qualified product 
     identification number of such item on the return of tax for 
     the taxable year.
       ``(2) Qualified product identification number.--For 
     purposes of this section, the term `qualified product 
     identification number' means, with respect to any item of 
     specified property, the product identification

[[Page S3955]]

     number assigned to such item by the qualified manufacturer 
     pursuant to the methodology referred to in paragraph (3).
       ``(3) Qualified manufacturer.--For purposes of this 
     section, the term `qualified manufacturer' means any 
     manufacturer of specified property which enters into an 
     agreement with the Secretary which provides that such 
     manufacturer will--
       ``(A) assign a product identification number to each item 
     of specified property produced by such manufacturer utilizing 
     a methodology that will ensure that such number (including 
     any alphanumeric) is unique to each such item (by utilizing 
     numbers or letters which are unique to such manufacturer or 
     by such other method as the Secretary may provide),
       ``(B) label such item with such number in such manner as 
     the Secretary may provide, and
       ``(C) make periodic written reports to the Secretary (at 
     such times and in such manner as the Secretary may provide) 
     of the product identification numbers so assigned and 
     including such information as the Secretary may require with 
     respect to the item of specified property to which such 
     number was so assigned.
       ``(4) Specified property.--For purposes of this subsection, 
     the term `specified property' means any qualified energy 
     property and any property described in subparagraph (B) or 
     (C) of subsection (c)(3).''.
       (2) Omission of correct product identification number 
     treated as mathematical or clerical error.--Section 
     6213(g)(2), as amended by the preceding provisions of this 
     Act, is amended--
       (A) in subparagraph (Q), by striking ``and'' at the end,
       (B) in subparagraph (R), by striking the period at the end 
     and inserting ``, and'', and
       (C) by inserting after subparagraph (R) the following:
       ``(S) an omission of a correct product identification 
     number required under section 25C(h) (relating to credit for 
     nonbusiness energy property) to be included on a return.''.
       (h) Energy Efficient Home Improvement Credit.--
       (1) In general.--The heading for section 25C is amended by 
     striking ``nonbusiness energy property'' and inserting 
     ``energy efficient home improvement credit''.
       (2) Clerical amendment.--The table of sections for subpart 
     A of part IV of subchapter A of chapter 1 is amended by 
     striking the item relating to section 25C and inserting after 
     the item relating to section 25B the following item:

``Sec. 25C. Energy efficient home improvement credit.''.
       (i) Effective Dates.--
       (1) In general.--Except as otherwise provided by this 
     subsection, the amendments made by this section shall apply 
     to property placed in service after December 31, 2022.
       (2) Extension of credit.--The amendments made by subsection 
     (a) shall apply to property placed in service after December 
     31, 2021.
       (3) Identification number requirement.--The amendments made 
     by subsection (g) shall apply to property placed in service 
     after December 31, 2024.

     SEC. 13302. RESIDENTIAL CLEAN ENERGY CREDIT.

       (a) Extension of Credit.--
       (1) In general.--Section 25D(h) is amended by striking 
     ``December 31, 2023'' and inserting ``December 31, 2034''.
       (2) Application of phaseout.--Section 25D(g) is amended--
       (A) in paragraph (2), by striking ``before January 1, 2023, 
     26 percent, and'' and inserting ``before January 1, 2022, 26 
     percent,'', and
       (B) by striking paragraph (3) and by inserting after 
     paragraph (2) the following new paragraphs:
       ``(3) in the case of property placed in service after 
     December 31, 2021, and before January 1, 2033, 30 percent,
       ``(4) in the case of property placed in service after 
     December 31, 2032, and before January 1, 2034, 26 percent, 
     and
       ``(5) in the case of property placed in service after 
     December 31, 2033, and before January 1, 2035, 22 percent.''.
       (b) Residential Clean Energy Credit for Battery Storage 
     Technology; Certain Expenditures Disallowed.--
       (1) Allowance of credit.--Paragraph (6) of section 25D(a) 
     is amended to read as follows:
       ``(6) the qualified battery storage technology 
     expenditures,''.
       (2) Definition of qualified battery storage technology 
     expenditure.--Paragraph (6) of section 25D(d) is amended to 
     read as follows:
       ``(6) Qualified battery storage technology expenditure.--
     The term `qualified battery storage technology expenditure' 
     means an expenditure for battery storage technology which--
       ``(A) is installed in connection with a dwelling unit 
     located in the United States and used as a residence by the 
     taxpayer, and
       ``(B) has a capacity of not less than 3 kilowatt hours.''.
       (c) Conforming Amendments.--
       (1) The heading for section 25D is amended by striking 
     ``energy efficient property'' and inserting ``clean energy 
     credit''.
       (2) The table of sections for subpart A of part IV of 
     subchapter A of chapter 1 is amended by striking the item 
     relating to section 25D and inserting the following:

``Sec. 25D. Residential clean energy credit.''.
       (d) Effective Dates.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall apply to expenditures 
     made after December 31, 2021.
       (2) Residential clean energy credit for battery storage 
     technology; certain expenditures disallowed.--The amendments 
     made by subsection (b) shall apply to expenditures made after 
     December 31, 2022.

     SEC. 13303. ENERGY EFFICIENT COMMERCIAL BUILDINGS DEDUCTION.

       (a) In General.--
       (1) Maximum amount of deduction.--Subsection (b) of section 
     179D is amended to read as follows:
       ``(b) Maximum Amount of Deduction.--
       ``(1) In general.--The deduction under subsection (a) with 
     respect to any building for any taxable year shall not exceed 
     the excess (if any) of--
       ``(A) the product of--
       ``(i) the applicable dollar value, and
       ``(ii) the square footage of the building, over
       ``(B) the aggregate amount of the deductions under 
     subsections (a) and (f) with respect to the building for the 
     3 taxable years immediately preceding such taxable year (or, 
     in the case of any such deduction allowable to a person other 
     than the taxpayer, for any taxable year ending during the 4-
     taxable-year period ending with such taxable year).
       ``(2) Applicable dollar value.--For purposes of paragraph 
     (1)(A)(i), the applicable dollar value shall be an amount 
     equal to $0.50 increased (but not above $1.00) by $0.02 for 
     each percentage point by which the total annual energy and 
     power costs for the building are certified to be reduced by a 
     percentage greater than 25 percent.
       ``(3) Increased credit amount for certain property.--
       ``(A) In general.--In the case of any property which 
     satisfies the requirements of subparagraph (B), paragraph (2) 
     shall be applied by substituting `$2.50' for `$0.50', `$.10' 
     for `$.02', and `$5.00' for `$1.00'.
       ``(B) Property requirements.--In the case of any energy 
     efficient commercial building property, energy efficient 
     building retrofit property, or property installed pursuant to 
     a qualified retrofit plan, such property shall meet the 
     requirements of this subparagraph if --
       ``(i) installation of such property begins prior to the 
     date that is 60 days after the Secretary publishes guidance 
     with respect to the requirements of paragraphs (4)(A) and 
     (5), or
       ``(ii) installation of such property satisfies the 
     requirements of paragraphs (4)(A) and (5).
       ``(4) Prevailing wage requirements.--
       ``(A) In general.--The requirements described in this 
     subparagraph with respect to any property are that the 
     taxpayer shall ensure that any laborers and mechanics 
     employed by contractors and subcontractors in the 
     installation of any property shall be paid wages at rates not 
     less than the prevailing rates for construction, alteration, 
     or repair of a similar character in the locality in which 
     such property is located as most recently determined by the 
     Secretary of Labor, in accordance with subchapter IV of 
     chapter 31 of title 40, United States Code.
       ``(B) Correction and penalty related to failure to satisfy 
     wage requirements.--Rules similar to the rules of section 
     45(b)(7)(B) shall apply.
       ``(5) Apprenticeship requirements.--Rules similar to the 
     rules of section 45(b)(8) shall apply.''.
       (2) Modification of efficiency standard.--Section 
     179D(c)(1)(D) is amended by striking ``50 percent'' and 
     inserting ``25 percent''.
       (3) Reference standard.--Section 179D(c)(2) is amended by 
     striking ``the most recent'' and inserting the following: 
     ``the more recent of--
       ``(A) Standard 90.1-2007 published by the American Society 
     of Heating, Refrigerating, and Air Conditioning Engineers and 
     the Illuminating Engineering Society of North America, or
       ``(B) the most recent''.
       (4) Final determination; extension of period; placed in 
     service deadline.--Subparagraph (B) of section 179D(c)(2), as 
     amended by paragraph (3), is amended--
       (A) by inserting ``for which the Department of Energy has 
     issued a final determination and'' before ``which has been 
     affirmed'',
       (B) by striking ``2 years'' and inserting ``4 years'', and
       (C) by striking ``that construction of such property 
     begins'' and inserting ``such property is placed in 
     service''.
       (5) Elimination of partial allowance.--
       (A) In general.--Section 179D(d) is amended--
       (i) by striking paragraph (1), and
       (ii) by redesignating paragraphs (2) through (6) as 
     paragraphs (1) through (5), respectively.
       (B) Conforming amendments.--
       (i) Section 179D(c)(1)(D) is amended--

       (I) by striking ``subsection (d)(6)'' and inserting 
     ``subsection (d)(5)'', and
       (II) by striking ``subsection (d)(2)'' and inserting 
     ``subsection (d)(1)''.

       (ii) Paragraph (2)(A) of section 179D(d), as redesignated 
     by subparagraph (A), is amended by striking ``paragraph (2)'' 
     and inserting ``paragraph (1)''.
       (iii) Paragraph (4) of section 179D(d), as redesignated by 
     subparagraph (A), is amended by striking ``paragraph 
     (3)(B)(iii)'' and inserting ``paragraph (2)(B)(iii)''.
       (iv) Section 179D is amended by striking subsection (f).

[[Page S3956]]

       (v) Section 179D(h) is amended by striking ``or 
     (d)(1)(A)''.
       (6) Allocation of deduction by certain tax-exempt 
     entities.--Paragraph (3) of section 179D(d), as redesignated 
     by paragraph (5)(A), is amended to read as follows:
       ``(3) Allocation of deduction by certain tax-exempt 
     entities.--
       ``(A) In general.--In the case of energy efficient 
     commercial building property installed on or in property 
     owned by a specified tax-exempt entity, the Secretary shall 
     promulgate regulations or guidance to allow the allocation of 
     the deduction to the person primarily responsible for 
     designing the property in lieu of the owner of such property. 
     Such person shall be treated as the taxpayer for purposes of 
     this section.
       ``(B) Specified tax-exempt entity.--For purposes of this 
     paragraph, the term `specified tax-exempt entity' means--
       ``(i) the United States, any State or local government (or 
     political subdivision thereof), any possession of the United 
     States, or any agency or instrumentality of any of the 
     foregoing,
       ``(ii) an Indian tribal government (as defined in section 
     30D(g)(9)) or Alaska Native Corporation (as defined in 
     section 3 of the Alaska Native Claims Settlement Act (43 
     U.S.C. 1602(m)), and
       ``(iii) any organization exempt from tax imposed by this 
     chapter.''.
       (7) Alternative deduction for energy efficient building 
     retrofit property.--Section 179D, as amended by the preceding 
     provisions of this section, is amended by inserting after 
     subsection (e) the following new subsection:
       ``(f) Alternative Deduction for Energy Efficient Building 
     Retrofit Property.--
       ``(1) In general.--In the case of a taxpayer which elects 
     (at such time and in such manner as the Secretary may 
     provide) the application of this subsection with respect to 
     any qualified building, there shall be allowed as a deduction 
     for the taxable year which includes the date of the 
     qualifying final certification with respect to the qualified 
     retrofit plan of such building, an amount equal to the lesser 
     of--
       ``(A) the excess described in subsection (b) (determined by 
     substituting `energy use intensity' for `total annual energy 
     and power costs' in paragraph (2) thereof), or
       ``(B) the aggregate adjusted basis (determined after taking 
     into account all adjustments with respect to such taxable 
     year other than the reduction under subsection (e)) of energy 
     efficient building retrofit property placed in service by the 
     taxpayer pursuant to such qualified retrofit plan.
       ``(2) Qualified retrofit plan.--For purposes of this 
     subsection, the term `qualified retrofit plan' means a 
     written plan prepared by a qualified professional which 
     specifies modifications to a building which, in the 
     aggregate, are expected to reduce such building's energy use 
     intensity by 25 percent or more in comparison to the baseline 
     energy use intensity of such building. Such plan shall 
     provide for a qualified professional to--
       ``(A) as of any date during the 1-year period ending on the 
     date on which the property installed pursuant to such plan is 
     placed in service, certify the energy use intensity of such 
     building as of such date,
       ``(B) certify the status of property installed pursuant to 
     such plan as meeting the requirements of subparagraphs (B) 
     and (C) of paragraph (3), and
       ``(C) as of any date that is more than 1 year after the 
     date on which the property installed pursuant to such plan is 
     placed in service, certify the energy use intensity of such 
     building as of such date.
       ``(3) Energy efficient building retrofit property.--For 
     purposes of this subsection, the term `energy efficient 
     building retrofit property' means property--
       ``(A) with respect to which depreciation (or amortization 
     in lieu of depreciation) is allowable,
       ``(B) which is installed on or in any qualified building,
       ``(C) which is installed as part of--
       ``(i) the interior lighting systems,
       ``(ii) the heating, cooling, ventilation, and hot water 
     systems, or
       ``(iii) the building envelope, and
       ``(D) which is certified in accordance with paragraph 
     (2)(B) as meeting the requirements of subparagraphs (B) and 
     (C).
       ``(4) Qualified building.--For purposes of this subsection, 
     the term `qualified building' means any building which--
       ``(A) is located in the United States, and
       ``(B) was originally placed in service not less than 5 
     years before the establishment of the qualified retrofit plan 
     with respect to such building.
       ``(5) Qualifying final certification.--For purposes of this 
     subsection, the term `qualifying final certification' means, 
     with respect to any qualified retrofit plan, the 
     certification described in paragraph (2)(C) if the energy use 
     intensity certified in such certification is not more than 75 
     percent of the baseline energy use intensity of the building.
       ``(6) Baseline energy use intensity.--
       ``(A) In general.--For purposes of this subsection, the 
     term `baseline energy use intensity' means the energy use 
     intensity certified under paragraph (2)(A), as adjusted to 
     take into account weather.
       ``(B) Determination of adjustment.--For purposes of 
     subparagraph (A), the adjustments described in such 
     subparagraph shall be determined in such manner as the 
     Secretary may provide.
       ``(7) Other definitions.--For purposes of this subsection--
       ``(A) Energy use intensity.--The term `energy use 
     intensity' means the annualized, measured site energy use 
     intensity determined in accordance with such regulations or 
     other guidance as the Secretary may provide and measured in 
     British thermal units.
       ``(B) Qualified professional.--The term `qualified 
     professional' means an individual who is a licensed architect 
     or a licensed engineer and meets such other requirements as 
     the Secretary may provide.
       ``(8) Coordination with deduction otherwise allowed under 
     subsection (a).--
       ``(A) In general.--In the case of any building with respect 
     to which an election is made under paragraph (1), the term 
     `energy efficient commercial building property' shall not 
     include any energy efficient building retrofit property with 
     respect to which a deduction is allowable under this 
     subsection.
       ``(B) Certain rules not applicable.--
       ``(i) In general.--Except as provided in clause (ii), 
     subsection (d) shall not apply for purposes of this 
     subsection.
       ``(ii) Allocation of deduction by certain tax-exempt 
     entities.--Rules similar to subsection (d)(3) shall apply for 
     purposes of this subsection.''.
       (8) Inflation adjustment.--Section 179D(g) is amended--
       (A) by striking ``2020'' and inserting ``2022'',
       (B) by striking ``or subsection (d)(1)(A)'', and
       (C) by striking ``2019'' and inserting ``2021''.
       (b) Application to Real Estate Investment Trust Earnings 
     and Profits.--Section 312(k)(3)(B) is amended--
       (1) by striking ``For purposes of computing the earnings 
     and profits of a corporation'' and inserting the following:
       ``(i) In general.--For purposes of computing the earnings 
     and profits of a corporation, except as provided in clause 
     (ii)'', and
       (2) by adding at the end the following new clause:
       ``(ii) Special rule.--In the case of a corporation that is 
     a real estate investment trust, any amount deductible under 
     section 179D shall be allowed in the year in which the 
     property giving rise to such deduction is placed in service 
     (or, in the case of energy efficient building retrofit 
     property, the year in which the qualifying final 
     certification is made).''.
       (c) Conforming Amendment.--Paragraph (1) of section 
     179D(d), as redesignated by subsection (a)(5)(A), is amended 
     by striking ``not later than the date that is 2 years before 
     the date that construction of such property begins'' and 
     inserting ``not later than the date that is 4 years before 
     the date such property is placed in service''.
       (d) Effective Date.--
       (1) In general.--Except as otherwise provided in this 
     subsection, the amendments made by this section shall apply 
     to taxable years beginning after December 31, 2022.
       (2) Alternative deduction for energy efficient building 
     retrofit property.--Subsection (f) of section 179D of the 
     Internal Revenue Code of 1986 (as amended by this section), 
     and any other provision of such section solely for purposes 
     of applying such subsection, shall apply to property placed 
     in service after December 31, 2022 (in taxable years ending 
     after such date) if such property is placed in service 
     pursuant to qualified retrofit plan (within the meaning of 
     such section) established after such date.

     SEC. 13304. EXTENSION, INCREASE, AND MODIFICATIONS OF NEW 
                   ENERGY EFFICIENT HOME CREDIT.

       (a) Extension of Credit.--Section 45L(g) is amended by 
     striking ``December 31, 2021'' and inserting ``December 31, 
     2032''.
       (b) Increase in Credit Amounts.--Section 45L(a)(2) is 
     amended to read as follows:
       ``(2) Applicable amount.--For purposes of paragraph (1), 
     the applicable amount is an amount equal to--
       ``(A) in the case of a dwelling unit which is eligible to 
     participate in the Energy Star Residential New Construction 
     Program or the Energy Star Manufactured New Homes program--
       ``(i) which meets the requirements of subsection (c)(1)(A) 
     (and which does not meet the requirements of subsection 
     (c)(1)(B)), $2,500, and
       ``(ii) which meets the requirements of subsection 
     (c)(1)(B), $5,000, and
       ``(B) in the case of a dwelling unit which is part of a 
     building eligible to participate in the Energy Star 
     Multifamily New Construction Program--
       ``(i) which meets the requirements of subsection (c)(1)(A) 
     (and which does not meet the requirements of subsection 
     (c)(1)(B)), $500, and
       ``(ii) which meets the requirements of subsection 
     (c)(1)(B), $1,000.''.
       (c) Modification of Energy Saving Requirements.--Section 
     45L(c) is amended to read as follows:
       ``(c) Energy Saving Requirements.--
       ``(1) In general.--
       ``(A) In general.--A dwelling unit meets the requirements 
     of this subparagraph if such dwelling unit meets the 
     requirements of paragraph (2) or (3) (whichever is 
     applicable).
       ``(B) Zero energy ready home program.--A dwelling unit 
     meets the requirements of this subparagraph if such dwelling 
     unit is certified as a zero energy ready home under the zero 
     energy ready home program of the Department of Energy as in 
     effect on January 1, 2023 (or any successor program 
     determined by the Secretary).
       ``(2) Single-family home requirements.--A dwelling unit 
     meets the requirements of this paragraph if--

[[Page S3957]]

       ``(A) such dwelling unit meets--
       ``(i)(I) in the case of a dwelling unit acquired before 
     January 1, 2025, the Energy Star Single-Family New Homes 
     National Program Requirements 3.1, or
       ``(II) in the case of a dwelling unit acquired after 
     December 31, 2024, the Energy Star Single-Family New Homes 
     National Program Requirements 3.2, and
       ``(ii) the most recent Energy Star Single-Family New Homes 
     Program Requirements applicable to the location of such 
     dwelling unit (as in effect on the latter of January 1, 2023, 
     or January 1 of two calendar years prior to the date the 
     dwelling unit was acquired), or
       ``(B) such dwelling unit meets the most recent Energy Star 
     Manufactured Home National program requirements as in effect 
     on the latter of January 1, 2023, or January 1 of two 
     calendar years prior to the date such dwelling unit is 
     acquired.
       ``(3) Multi-family home requirements.--A dwelling unit 
     meets the requirements of this paragraph if--
       ``(A) such dwelling unit meets the most recent Energy Star 
     Multifamily New Construction National Program Requirements 
     (as in effect on either January 1, 2023, or January 1 of 
     three calendar years prior to the date the dwelling was 
     acquired, whichever is later), and
       ``(B) such dwelling unit meets the most recent Energy Star 
     Multifamily New Construction Regional Program Requirements 
     applicable to the location of such dwelling unit (as in 
     effect on either January 1, 2023, or January 1 of three 
     calendar years prior to the date the dwelling was acquired, 
     whichever is later).''.
       (d) Prevailing Wage Requirement.--Section 45L is amended by 
     redesignating subsection (g) as subsection (h) and by 
     inserting after subsection (f) the following new subsection:
       ``(g) Prevailing Wage Requirement.--
       ``(1) In general.--In the case of a qualifying residence 
     described in subsection (b)(2)(B) meeting the prevailing wage 
     requirements of paragraph (2)(A), the credit amount allowed 
     with respect to such residence shall be--
       ``(A) $2,500 in the case of a residence which meets the 
     requirements of subparagraph (A) of subsection (c)(1) (and 
     which does not meet the requirements of subparagraph (B) of 
     such subsection), and
       ``(B) $5,000 in the case of a residence which meets the 
     requirements of subsection (c)(1)(B).
       ``(2) Prevailing wage requirements.--
       ``(A) In general.--The requirements described in this 
     subparagraph with respect to any qualified residence are that 
     the taxpayer shall ensure that any laborers and mechanics 
     employed by contractors and subcontractors in the 
     construction of such residence shall be paid wages at rates 
     not less than the prevailing rates for construction, 
     alteration, or repair of a similar character in the locality 
     in which such residence is located as most recently 
     determined by the Secretary of Labor, in accordance with 
     subchapter IV of chapter 31 of title 40, United States Code.
       ``(B) Correction and penalty related to failure to satisfy 
     wage requirements.--Rules similar to the rules of section 
     45(b)(7)(B) shall apply.
       ``(3) Regulations and guidance.--The Secretary shall issue 
     such regulations or other guidance as the Secretary 
     determines necessary or appropriate to carry out the purposes 
     of this subsection, including regulations or other guidance 
     which provides for requirements for recordkeeping or 
     information reporting for purposes of administering the 
     requirements of this subsection.''.
       (e) Basis Adjustment.--Section 45L(e) is amended by 
     inserting after the first sentence the following: ``This 
     subsection shall not apply for purposes of determining the 
     adjusted basis of any building under section 42.''.
       (f) Effective Dates.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall apply to dwelling units 
     acquired after December 31, 2022.
       (2) Extension of credit.--The amendments made by subsection 
     (a) shall apply to dwelling units acquired after December 31, 
     2021.

                         PART 4--CLEAN VEHICLES

     SEC. 13401. CLEAN VEHICLE CREDIT.

       (a) Per Vehicle Dollar Limitation.--Section 30D(b) is 
     amended by striking paragraphs (2) and (3) and inserting the 
     following:
       ``(2) Critical minerals.--In the case of a vehicle with 
     respect to which the requirement described in subsection 
     (e)(1)(A) is satisfied, the amount determined under this 
     paragraph is $3,750.
       ``(3) Battery components.--In the case of a vehicle with 
     respect to which the requirement described in subsection 
     (e)(2)(A) is satisfied, the amount determined under this 
     paragraph is $3,750.''.
       (b) Final Assembly.--Section 30D(d) is amended--
       (1) in paragraph (1)--
       (A) in subparagraph (E), by striking ``and'' at the end,
       (B) in subparagraph (F)(ii), by striking the period at the 
     end and inserting ``, and'', and
       (C) by adding at the end the following:
       ``(G) the final assembly of which occurs within North 
     America.'',
       (2) by adding at the end the following:
       ``(5) Final assembly.--For purposes of paragraph (1)(G), 
     the term `final assembly' means the process by which a 
     manufacturer produces a new clean vehicle at, or through the 
     use of, a plant, factory, or other place from which the 
     vehicle is delivered to a dealer or importer with all 
     component parts necessary for the mechanical operation of the 
     vehicle included with the vehicle, whether or not the 
     component parts are permanently installed in or on the 
     vehicle.''.
       (c) Definition of New Clean Vehicle.--
       (1) In general.--Section 30D(d), as amended by the 
     preceding provisions of this section, is amended--
       (A) in the heading, by striking ``Qualified Plug-in 
     Electric Drive Motor'' and inserting ``Clean'',
       (B) in paragraph (1)--
       (i) in the matter preceding subparagraph (A), by striking 
     ``qualified plug-in electric drive motor'' and inserting 
     ``clean'',
       (ii) in subparagraph (C), by inserting ``qualified'' before 
     ``manufacturer'',
       (iii) in subparagraph (F)--

       (I) in clause (i), by striking ``4'' and inserting ``7'', 
     and
       (II) in clause (ii), by striking ``and'' at the end,

       (iv) in subparagraph (G), by striking the period at the end 
     and inserting ``, and'', and
       (v) by adding at the end the following:
       ``(H) for which the person who sells any vehicle to the 
     taxpayer furnishes a report to the taxpayer and to the 
     Secretary, at such time and in such manner as the Secretary 
     shall provide, containing--
       ``(i) the name and taxpayer identification number of the 
     taxpayer,
       ``(ii) the vehicle identification number of the vehicle, 
     unless, in accordance with any applicable rules promulgated 
     by the Secretary of Transportation, the vehicle is not 
     assigned such a number,
       ``(iii) the battery capacity of the vehicle,
       ``(iv) verification that original use of the vehicle 
     commences with the taxpayer, and
       ``(v) the maximum credit under this section allowable to 
     the taxpayer with respect to the vehicle.'',
       (C) in paragraph (3)--
       (i) in the heading, by striking ``Manufacturer'' and 
     inserting ``Qualified manufacturer'',
       (ii) by striking ``The term `manufacturer' has the meaning 
     given such term in'' and inserting ``The term `qualified 
     manufacturer' means any manufacturer (within the meaning of 
     the'', and
       (iii) by inserting ``) which enters into a written 
     agreement with the Secretary under which such manufacturer 
     agrees to make periodic written reports to the Secretary (at 
     such times and in such manner as the Secretary may provide) 
     providing vehicle identification numbers and such other 
     information related to each vehicle manufactured by such 
     manufacturer as the Secretary may require'' before the period 
     at the end, and
       (D) by adding at the end the following:
       ``(6) New qualified fuel cell motor vehicle.--For purposes 
     of this section, the term `new clean vehicle' shall include 
     any new qualified fuel cell motor vehicle (as defined in 
     section 30B(b)(3)) which meets the requirements under 
     subparagraphs (G) and (H) of paragraph (1).''.
       (2) Conforming amendments.--Section 30D is amended--
       (A) in subsection (a), by striking ``new qualified plug-in 
     electric drive motor vehicle'' and inserting ``new clean 
     vehicle'', and
       (B) in subsection (b)(1), by striking ``new qualified plug-
     in electric drive motor vehicle'' and inserting ``new clean 
     vehicle''.
       (d) Elimination of Limitation on Number of Vehicles 
     Eligible for Credit.--Section 30D is amended by striking 
     subsection (e).
       (e) Critical Mineral and Battery Component Requirements.--
       (1) In general.--Section 30D, as amended by the preceding 
     provisions of this section, is amended by inserting after 
     subsection (d) the following:
       ``(e) Critical Mineral and Battery Component 
     Requirements.--
       ``(1) Critical minerals requirement.--
       ``(A) In general.--The requirement described in this 
     subparagraph with respect to a vehicle is that, with respect 
     to the battery from which the electric motor of such vehicle 
     draws electricity, the percentage of the value of the 
     applicable critical minerals (as defined in section 
     45X(c)(6)) contained in such battery that were--
       ``(i) extracted or processed in any country with which the 
     United States has a free trade agreement in effect, or
       ``(ii) recycled in North America,
     is equal to or greater than the applicable percentage (as 
     certified by the qualified manufacturer, in such form or 
     manner as prescribed by the Secretary).
       ``(B) Applicable percentage.--For purposes of subparagraph 
     (A), the applicable percentage shall be--
       ``(i) in the case of a vehicle placed in service after the 
     date on which the proposed guidance described in paragraph 
     (3)(B) is issued by the Secretary and before January 1, 2024, 
     40 percent,
       ``(ii) in the case of a vehicle placed in service during 
     calendar year 2024, 50 percent,
       ``(iii) in the case of a vehicle placed in service during 
     calendar year 2025, 60 percent,
       ``(iv) in the case of a vehicle placed in service during 
     calendar year 2026, 70 percent, and
       ``(v) in the case of a vehicle placed in service after 
     December 31, 2026, 80 percent.
       ``(2) Battery components.--
       ``(A) In general.--The requirement described in this 
     subparagraph with respect to a vehicle is that, with respect 
     to the battery from which the electric motor of such vehicle 
     draws electricity, the percentage of the

[[Page S3958]]

     value of the components contained in such battery that were 
     manufactured or assembled in North America is equal to or 
     greater than the applicable percentage (as certified by the 
     qualified manufacturer, in such form or manner as prescribed 
     by the Secretary).
       ``(B) Applicable percentage.--For purposes of subparagraph 
     (A), the applicable percentage shall be--
       ``(i) in the case of a vehicle placed in service after the 
     date on which the proposed guidance described in paragraph 
     (3)(B) is issued by the Secretary and before January 1, 2024, 
     50 percent,
       ``(ii) in the case of a vehicle placed in service during 
     calendar year 2024 or 2025, 60 percent,
       ``(iii) in the case of a vehicle placed in service during 
     calendar year 2026, 70 percent,
       ``(iv) in the case of a vehicle placed in service during 
     calendar year 2027, 80 percent,
       ``(v) in the case of a vehicle placed in service during 
     calendar year 2028, 90 percent,
       ``(vi) in the case of a vehicle placed in service after 
     December 31, 2028, 100 percent.
       ``(3) Regulations and guidance.--
       ``(A) In general.--The Secretary shall issue such 
     regulations or other guidance as the Secretary determines 
     necessary or appropriate to carry out the purposes of this 
     subsection, including regulations or other guidance which 
     provides for requirements for recordkeeping or information 
     reporting for purposes of administering the requirements of 
     this subsection.
       ``(B) Deadline for proposed guidance.--Not later than 
     December 31, 2022, the Secretary shall issue proposed 
     guidance with respect to the requirements under this 
     subsection.''.
       (2) Excluded entities.--Section 30D(d), as amended by the 
     preceding provisions of this section, is amended by adding at 
     the end the following:
       ``(7) Excluded entities.--For purposes of this section, the 
     term `new clean vehicle' shall not include--
       ``(A) any vehicle placed in service after December 31, 
     2024, with respect to which any of the applicable critical 
     minerals contained in the battery of such vehicle (as 
     described in subsection (e)(1)(A)) were extracted, processed, 
     or recycled by a foreign entity of concern (as defined in 
     section 40207(a)(5) of the Infrastructure Investment and Jobs 
     Act (42 U.S.C. 18741(a)(5))), or
       ``(B) any vehicle placed in service after December 31, 
     2023, with respect to which any of the components contained 
     in the battery of such vehicle (as described in subsection 
     (e)(2)(A)) were manufactured or assembled by a foreign entity 
     of concern (as so defined).''.
       (f) Special Rules.--Section 30D(f) is amended by adding at 
     the end the following:
       ``(8) One credit per vehicle.--In the case of any vehicle, 
     the credit described in subsection (a) shall only be allowed 
     once with respect to such vehicle, as determined based upon 
     the vehicle identification number of such vehicle.
       ``(9) VIN requirement.--No credit shall be allowed under 
     this section with respect to any vehicle unless the taxpayer 
     includes the vehicle identification number of such vehicle on 
     the return of tax for the taxable year.
       ``(10) Limitation based on modified adjusted gross 
     income.--
       ``(A) In general.--No credit shall be allowed under 
     subsection (a) for any taxable year if--
       ``(i) the lesser of--

       ``(I) the modified adjusted gross income of the taxpayer 
     for such taxable year, or
       ``(II) the modified adjusted gross income of the taxpayer 
     for the preceding taxable year, exceeds

       ``(ii) the threshold amount.
       ``(B) Threshold amount.--For purposes of subparagraph 
     (A)(ii), the threshold amount shall be--
       ``(i) in the case of a joint return or a surviving spouse 
     (as defined in section 2(a)), $300,000,
       ``(ii) in the case of a head of household (as defined in 
     section 2(b)), $225,000, and
       ``(iii) in the case of a taxpayer not described in clause 
     (i) or (ii), $150,000.
       ``(C) Modified adjusted gross income.--For purposes of this 
     paragraph, the term `modified adjusted gross income' means 
     adjusted gross income increased by any amount excluded from 
     gross income under section 911, 931, or 933.
       ``(11) Manufacturer's suggested retail price limitation.--
       ``(A) In general.--No credit shall be allowed under 
     subsection (a) for a vehicle with a manufacturer's suggested 
     retail price in excess of the applicable limitation.
       ``(B) Applicable limitation.--For purposes of subparagraph 
     (A), the applicable limitation for each vehicle 
     classification is as follows:
       ``(i) Vans.--In the case of a van, $80,000.
       ``(ii) Sport utility vehicles.--In the case of a sport 
     utility vehicle, $80,000.
       ``(iii) Pickup trucks.--In the case of a pickup truck, 
     $80,000.
       ``(iv) Other.--In the case of any other vehicle, $55,000.
       ``(C) Regulations and guidance.--For purposes of this 
     paragraph, the Secretary shall prescribe such regulations or 
     other guidance as the Secretary determines necessary or 
     appropriate for determining vehicle classifications using 
     criteria similar to that employed by the Environmental 
     Protection Agency and the Department of the Energy to 
     determine size and class of vehicles.''.
       (g) Transfer of Credit.--
       (1) In general.--Section 30D is amended by striking 
     subsection (g) and inserting the following:
       ``(g) Transfer of Credit.--
       ``(1) In general.--Subject to such regulations or other 
     guidance as the Secretary determines necessary or 
     appropriate, if the taxpayer who acquires a new clean vehicle 
     elects the application of this subsection with respect to 
     such vehicle, the credit which would (but for this 
     subsection) be allowed to such taxpayer with respect to such 
     vehicle shall be allowed to the eligible entity specified in 
     such election (and not to such taxpayer).
       ``(2) Eligible entity.--For purposes of this subsection, 
     the term `eligible entity' means, with respect to the vehicle 
     for which the credit is allowed under subsection (a), the 
     dealer which sold such vehicle to the taxpayer and has--
       ``(A) subject to paragraph (4), registered with the 
     Secretary for purposes of this paragraph, at such time, and 
     in such form and manner, as the Secretary may prescribe,
       ``(B) prior to the election described in paragraph (1) and 
     not later than at the time of such sale, disclosed to the 
     taxpayer purchasing such vehicle--
       ``(i) the manufacturer's suggested retail price,
       ``(ii) the value of the credit allowed and any other 
     incentive available for the purchase of such vehicle, and
       ``(iii) the amount provided by the dealer to such taxpayer 
     as a condition of the election described in paragraph (1),
       ``(C) not later than at the time of such sale, made payment 
     to such taxpayer (whether in cash or in the form of a partial 
     payment or down payment for the purchase of such vehicle) in 
     an amount equal to the credit otherwise allowable to such 
     taxpayer, and
       ``(D) with respect to any incentive otherwise available for 
     the purchase of a vehicle for which a credit is allowed under 
     this section, including any incentive in the form of a rebate 
     or discount provided by the dealer or manufacturer, ensured 
     that--
       ``(i) the availability or use of such incentive shall not 
     limit the ability of a taxpayer to make an election described 
     in paragraph (1), and
       ``(ii) such election shall not limit the value or use of 
     such incentive.
       ``(3) Timing.--An election described in paragraph (1) shall 
     be made by the taxpayer not later than the date on which the 
     vehicle for which the credit is allowed under subsection (a) 
     is purchased.
       ``(4) Revocation of registration.--Upon determination by 
     the Secretary that a dealer has failed to comply with the 
     requirements described in paragraph (2), the Secretary may 
     revoke the registration (as described in subparagraph (A) of 
     such paragraph) of such dealer.
       ``(5) Tax treatment of payments.--With respect to any 
     payment described in paragraph (2)(C), such payment--
       ``(A) shall not be includible in the gross income of the 
     taxpayer, and
       ``(B) with respect to the dealer, shall not be deductible 
     under this title.
       ``(6) Application of certain other requirements.--In the 
     case of any election under paragraph (1) with respect to any 
     vehicle--
       ``(A) the requirements of paragraphs (1) and (2) of 
     subsection (f) shall apply to the taxpayer who acquired the 
     vehicle in the same manner as if the credit determined under 
     this section with respect to such vehicle were allowed to 
     such taxpayer,
       ``(B) paragraph (6) of such subsection shall not apply, and
       ``(C) the requirement of paragraph (9) of such subsection 
     (f) shall be treated as satisfied if the eligible entity 
     provides the vehicle identification number of such vehicle to 
     the Secretary in such manner as the Secretary may provide.
       ``(7) Advance payment to registered dealers.--
       ``(A) In general.--The Secretary shall establish a program 
     to make advance payments to any eligible entity in an amount 
     equal to the cumulative amount of the credits allowed under 
     subsection (a) with respect to any vehicles sold by such 
     entity for which an election described in paragraph (1) has 
     been made.
       ``(B) Excessive payments.--Rules similar to the rules of 
     section 6417(c)(6) shall apply for purposes of this 
     paragraph.
       ``(C) Treatment of advance payments.--For purposes of 
     section 1324 of title 31, United States Code, the payments 
     under subparagraph (A) shall be treated in the same manner as 
     a refund due from a credit provision referred to in 
     subsection (b)(2) of such section.
       ``(8) Dealer.--For purposes of this subsection, the term 
     `dealer' means a person licensed by a State, the District of 
     Columbia, the Commonwealth of Puerto Rico, any other 
     territory or possession of the United States, an Indian 
     tribal government, or any Alaska Native Corporation (as 
     defined in section 3 of the Alaska Native Claims Settlement 
     Act (43 U.S.C. 1602(m)) to engage in the sale of vehicles.
       ``(9) Indian tribal government.--For purposes of this 
     subsection, the term `Indian tribal government' means the 
     recognized governing body of any Indian or Alaska Native 
     tribe, band, nation, pueblo, village, community, component 
     band, or component reservation, individually identified 
     (including parenthetically) in the list published most 
     recently as of the date of enactment of this

[[Page S3959]]

     subsection pursuant to section 104 of the Federally 
     Recognized Indian Tribe List Act of 1994 (25 U.S.C. 5131).''.
       (2) Conforming amendments.--Section 30D, as amended by the 
     preceding provisions of this section, is amended--
       (A) in subsection (d)(1)(H) of such section--
       (i) in clause (iv), by striking ``and'' at the end,
       (ii) in clause (v), by striking the period at the end and 
     inserting ``, and'', and
       (iii) by adding at the end the following:
       ``(vi) in the case of a taxpayer who makes an election 
     under subsection (g)(1), any amount described in subsection 
     (g)(2)(C) which has been provided to such taxpayer.'', and
       (B) in subsection (f)--
       (i) by striking paragraph (3), and
       (ii) in paragraph (8), by inserting ``, including any 
     vehicle with respect to which the taxpayer elects the 
     application of subsection (g)'' before the period at the end.
       (h) Termination.--Section 30D is amended by adding at the 
     end the following:
       ``(h) Termination.--No credit shall be allowed under this 
     section with respect to any vehicle placed in service after 
     December 31, 2032.''.
       (i) Additional Conforming Amendments.--
       (1) The heading of section 30D is amended by striking ``new 
     qualified plug-in electric drive motor vehicles'' and 
     inserting ``clean vehicle credit''.
       (2) Section 30B is amended--
       (A) in subsection (h)(8), by striking ``, except that no 
     benefit shall be recaptured if such property ceases to be 
     eligible for such credit by reason of conversion to a 
     qualified plug-in electric drive motor vehicle'', and
       (B) by striking subsection (i).
       (3) Section 38(b)(30) is amended by striking ``qualified 
     plug-in electric drive motor'' and inserting ``clean''.
       (4) Section 6213(g)(2), as amended by the preceding 
     provisions of this Act, is amended--
       (A) in subparagraph (R), by striking ``and'' at the end,
       (B) in subparagraph (S), by striking the period at the end 
     and inserting ``, and'', and
       (C) by inserting after subparagraph (S) the following:
       ``(T) an omission of a correct vehicle identification 
     number required under section 30D(f)(9) (relating to credit 
     for new clean vehicles) to be included on a return.''.
       (5) Section 6501(m) is amended by striking ``30D(e)(4)'' 
     and inserting ``30D(f)(6)''.
       (6) The table of sections for subpart B of part IV of 
     subchapter A of chapter 1 is amended by striking the item 
     relating to section 30D and inserting after the item relating 
     to section 30C the following item:

``Sec. 30D. Clean vehicle credit.''.
       (j) Gross-up of Direct Spending.--Beginning in fiscal year 
     2023 and each fiscal year thereafter, the portion of any 
     credit allowed to an eligible entity (as defined in section 
     30D(g)(2) of the Internal Revenue Code of 1986) pursuant to 
     an election made under section 30D(g) of the Internal Revenue 
     Code of 1986 that is direct spending shall be increased by 
     6.0445 percent.
       (k) Effective Dates.--
       (1) In general.--Except as provided in paragraphs (2), (3), 
     (4), and (5), the amendments made by this section shall apply 
     to vehicles placed in service after December 31, 2022.
       (2) Final assembly.--The amendments made by subsection (b) 
     shall apply to vehicles sold after the date of enactment of 
     this Act.
       (3) Per vehicle dollar limitation and related 
     requirements.--The amendments made by subsections (a) and (e) 
     shall apply to vehicles placed in service after the date on 
     which the proposed guidance described in paragraph (3)(B) of 
     section 30D(e) of the Internal Revenue Code of 1986 (as added 
     by subsection (e)) is issued by the Secretary of the Treasury 
     (or the Secretary's delegate).
       (4) Transfer of credit.--The amendments made by subsection 
     (g) shall apply to vehicles placed in service after December 
     31, 2023.
       (5) Elimination of manufacturer limitation.--The amendment 
     made by subsection (d) shall apply to vehicles sold after 
     December 31, 2022.
       (l) Transition Rule.--Solely for purposes of the 
     application of section 30D of the Internal Revenue Code of 
     1986, in the case of a taxpayer that--
       (1) after December 31, 2021, and before the date of 
     enactment of this Act, purchased, or entered into a written 
     binding contract to purchase, a new qualified plug-in 
     electric drive motor vehicle (as defined in section 30D(d)(1) 
     of the Internal Revenue Code of 1986, as in effect on the day 
     before the date of enactment of this Act), and
       (2) placed such vehicle in service on or after the date of 
     enactment of this Act,
     such taxpayer may elect (at such time, and in such form and 
     manner, as the Secretary of the Treasury, or the Secretary's 
     delegate, may prescribe) to treat such vehicle as having been 
     placed in service on the day before the date of enactment of 
     this Act.

     SEC. 13402. CREDIT FOR PREVIOUSLY-OWNED CLEAN VEHICLES.

       (a) In General.--Subpart A of part IV of subchapter A of 
     chapter 1 is amended by inserting after section 25D the 
     following new section:

     ``SEC. 25E. PREVIOUSLY-OWNED CLEAN VEHICLES.

       ``(a) Allowance of Credit.--In the case of a qualified 
     buyer who during a taxable year places in service a 
     previously-owned clean vehicle, there shall be allowed as a 
     credit against the tax imposed by this chapter for the 
     taxable year an amount equal to the lesser of--
       ``(1) $4,000, or
       ``(2) the amount equal to 30 percent of the sale price with 
     respect to such vehicle.
       ``(b) Limitation Based on Modified Adjusted Gross Income.--
       ``(1) In general.--No credit shall be allowed under 
     subsection (a) for any taxable year if--
       ``(A) the lesser of--
       ``(i) the modified adjusted gross income of the taxpayer 
     for such taxable year, or
       ``(ii) the modified adjusted gross income of the taxpayer 
     for the preceding taxable year, exceeds
       ``(B) the threshold amount.
       ``(2) Threshold amount.--For purposes of paragraph (1)(B), 
     the threshold amount shall be--
       ``(A) in the case of a joint return or a surviving spouse 
     (as defined in section 2(a)), $150,000,
       ``(B) in the case of a head of household (as defined in 
     section 2(b)), $112,500, and
       ``(C) in the case of a taxpayer not described in 
     subparagraph (A) or (B), $75,000.
       ``(3) Modified adjusted gross income.--For purposes of this 
     subsection, the term `modified adjusted gross income' means 
     adjusted gross income increased by any amount excluded from 
     gross income under section 911, 931, or 933.
       ``(c) Definitions.--For purposes of this section--
       ``(1) Previously-owned clean vehicle.--The term 
     `previously-owned clean vehicle' means, with respect to a 
     taxpayer, a motor vehicle--
       ``(A) the model year of which is at least 2 years earlier 
     than the calendar year in which the taxpayer acquires such 
     vehicle,
       ``(B) the original use of which commences with a person 
     other than the taxpayer,
       ``(C) which is acquired by the taxpayer in a qualified 
     sale, and
       ``(D) which--
       ``(i) meets the requirements of subparagraphs (C), (D), 
     (E), (F), and (H) (except for clause (iv) thereof) of section 
     30D(d)(1), or
       ``(ii) is a motor vehicle which--

       ``(I) satisfies the requirements under subparagraphs (A) 
     and (B) of section 30B(b)(3), and
       ``(II) has a gross vehicle weight rating of less than 
     14,000 pounds.

       ``(2) Qualified sale.--The term `qualified sale' means a 
     sale of a motor vehicle--
       ``(A) by a dealer (as defined in section 30D(g)(8)),
       ``(B) for a sale price which does not exceed $25,000, and
       ``(C) which is the first transfer since the date of the 
     enactment of this section to a qualified buyer other than the 
     person with whom the original use of such vehicle commenced.
       ``(3) Qualified buyer.--The term `qualified buyer' means, 
     with respect to a sale of a motor vehicle, a taxpayer--
       ``(A) who is an individual,
       ``(B) who purchases such vehicle for use and not for 
     resale,
       ``(C) with respect to whom no deduction is allowable with 
     respect to another taxpayer under section 151, and
       ``(D) who has not been allowed a credit under this section 
     for any sale during the 3-year period ending on the date of 
     the sale of such vehicle.
       ``(4) Motor vehicle; capacity.--The terms `motor vehicle' 
     and `capacity' have the meaning given such terms in 
     paragraphs (2) and (4) of section 30D(d), respectively.
       ``(d) VIN Number Requirement.--No credit shall be allowed 
     under subsection (a) with respect to any vehicle unless the 
     taxpayer includes the vehicle identification number of such 
     vehicle on the return of tax for the taxable year.
       ``(e) Application of Certain Rules.--For purposes of this 
     section, rules similar to the rules of section 30D(f) 
     (without regard to paragraph (10) or (11) thereof) shall 
     apply for purposes of this section.
       ``(f) Termination.--No credit shall be allowed under this 
     section with respect to any vehicle acquired after December 
     31, 2032.''.
       (b) Transfer of Credit.--Section 25E, as added by 
     subsection (a), is amended--
       (1) by redesignating subsection (f) as subsection (g), and
       (2) by inserting after subsection (e) the following:
       ``(f) Transfer of Credit.--Rules similar to the rules of 
     section 30D(g) shall apply.''.
       (c) Conforming Amendments.--Section 6213(g)(2), as amended 
     by the preceding provisions of this Act, is amended--
       (1) in subparagraph (S), by striking ``and'' at the end,
       (2) in subparagraph (T), by striking the period at the end 
     and inserting ``, and'', and
       (3) by inserting after subparagraph (T) the following:
       ``(U) an omission of a correct vehicle identification 
     number required under section 25E(d) (relating to credit for 
     previously-owned clean vehicles) to be included on a 
     return.''.
       (d) Clerical Amendment.--The table of sections for subpart 
     A of part IV of subchapter A of chapter 1 is amended by 
     inserting after the item relating to section 25D the 
     following new item:

``Sec. 25E. Previously-owned clean vehicles.''.
       (e) Effective Date.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this

[[Page S3960]]

     section shall apply to vehicles acquired after December 31, 
     2022.
       (2) Transfer of credit.--The amendments made by subsection 
     (b) shall apply to vehicles acquired after December 31, 2023.

     SEC. 13403. QUALIFIED COMMERCIAL CLEAN VEHICLES.

       (a) In General.--Subpart D of part IV of subchapter A of 
     chapter 1, as amended by the preceding provisions of this 
     Act, is amended by adding at the end the following new 
     section:

     ``SEC. 45W. CREDIT FOR QUALIFIED COMMERCIAL CLEAN VEHICLES.

       ``(a) In General.--For purposes of section 38, the 
     qualified commercial clean vehicle credit for any taxable 
     year is an amount equal to the sum of the credit amounts 
     determined under subsection (b) with respect to each 
     qualified commercial clean vehicle placed in service by the 
     taxpayer during the taxable year.
       ``(b) Per Vehicle Amount.--
       ``(1) In general.--Subject to paragraph (4), the amount 
     determined under this subsection with respect to any 
     qualified commercial clean vehicle shall be equal to the 
     lesser of--
       ``(A) 15 percent of the basis of such vehicle (30 percent 
     in the case of a vehicle not powered by a gasoline or diesel 
     internal combustion engine), or
       ``(B) the incremental cost of such vehicle.
       ``(2) Incremental cost.--For purposes of paragraph (1)(B), 
     the incremental cost of any qualified commercial clean 
     vehicle is an amount equal to the excess of the purchase 
     price for such vehicle over such price of a comparable 
     vehicle.
       ``(3) Comparable vehicle.--For purposes of this subsection, 
     the term `comparable vehicle' means, with respect to any 
     qualified commercial clean vehicle, any vehicle which is 
     powered solely by a gasoline or diesel internal combustion 
     engine and which is comparable in size and use to such 
     vehicle.
       ``(4) Limitation.--The amount determined under this 
     subsection with respect to any qualified commercial clean 
     vehicle shall not exceed--
       ``(A) in the case of a vehicle which has a gross vehicle 
     weight rating of less than 14,000 pounds, $7,500, and
       ``(B) in the case of a vehicle not described in 
     subparagraph (A), $40,000.
       ``(c) Qualified Commercial Clean Vehicle.--For purposes of 
     this section, the term `qualified commercial clean vehicle' 
     means any vehicle which--
       ``(1) meets the requirements of section 30D(d)(1)(C) and is 
     acquired for use or lease by the taxpayer and not for resale,
       ``(2) either--
       ``(A) meets the requirements of subparagraph (D) of section 
     30D(d)(1) and is manufactured primarily for use on public 
     streets, roads, and highways (not including a vehicle 
     operated exclusively on a rail or rails), or
       ``(B) is mobile machinery, as defined in section 4053(8) 
     (including vehicles that are not designed to perform a 
     function of transporting a load over the public highways),
       ``(3) either--
       ``(A) is propelled to a significant extent by an electric 
     motor which draws electricity from a battery which has a 
     capacity of not less than 15 kilowatt hours (or, in the case 
     of a vehicle which has a gross vehicle weight rating of less 
     than 14,000 pounds, 7 kilowatt hours) and is capable of being 
     recharged from an external source of electricity, or
       ``(B) is a motor vehicle which satisfies the requirements 
     under subparagraphs (A) and (B) of section 30B(b)(3), and
       ``(4) is of a character subject to the allowance for 
     depreciation.
       ``(d) Special Rules.--
       ``(1) In general.--Subject to paragraph (2), rules similar 
     to the rules under subsection (f) of section 30D shall apply 
     for purposes of this section.
       ``(2) Recapture.--The Secretary shall, by regulations or 
     other guidance, provide for recapturing the benefit of any 
     credit allowed under subsection (a) with respect to any 
     property which ceases to be property eligible for such 
     credit.
       ``(3) Vehicles placed in service by tax-exempt entities.--
     Subsection (c)(4) shall not apply to any vehicle which is not 
     subject to a lease and which is placed in service by a tax-
     exempt entity described in clause (i), (ii), or (iv) of 
     section 168(h)(2)(A).
       ``(4) No double benefit.--No credit shall be allowed under 
     this section with respect to any vehicle for which a credit 
     was allowed under section 30D.
       ``(e) VIN Number Requirement.--No credit shall be 
     determined under subsection (a) with respect to any vehicle 
     unless the taxpayer includes the vehicle identification 
     number of such vehicle on the return of tax for the taxable 
     year.
       ``(f) Regulations and Guidance.--The Secretary shall issue 
     such regulations or other guidance as the Secretary 
     determines necessary or appropriate to carry out the purposes 
     of this section, including regulations or other guidance 
     relating to determination of the incremental cost of any 
     qualified commercial clean vehicle.
       ``(g) Termination.--No credit shall be determined under 
     this section with respect to any vehicle acquired after 
     December 31, 2032.''.
       (b) Conforming Amendments.--
       (1) Section 38(b), as amended by the preceding provisions 
     of this Act, is amended--
       (A) in paragraph (35), by striking ``plus'' at the end,
       (B) in paragraph (36), by striking the period at the end 
     and inserting ``, plus'', and
       (C) by adding at the end the following new paragraph:
       ``(37) the qualified commercial clean vehicle credit 
     determined under section 45W.''.
       (2) Section 6213(g)(2), as amended by the preceding 
     provisions of this Act, is amended--
       (A) in subparagraph (T), by striking ``and'' at the end,
       (B) in subparagraph (U), by striking the period at the end 
     and inserting ``, and'', and
       (C) by inserting after subparagraph (U) the following:
       ``(V) an omission of a correct vehicle identification 
     number required under section 45W(e) (relating to commercial 
     clean vehicle credit) to be included on a return.''.
       (3) The table of sections for subpart D of part IV of 
     subchapter A of chapter 1, as amended by the preceding 
     provisions of this Act, is amended by adding at the end the 
     following new item:

``Sec. 45W. Qualified commercial clean vehicle credit.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to vehicles acquired after December 31, 2022.

     SEC. 13404. ALTERNATIVE FUEL REFUELING PROPERTY CREDIT.

       (a) In General.--Section 30C(g) is amended by striking 
     ``December 31, 2021'' and inserting ``December 31, 2032''.
       (b) Credit for Property of a Character Subject to 
     Depreciation.--
       (1) In general.--Section 30C(a) is amended by inserting 
     ``(6 percent in the case of property of a character subject 
     to depreciation)'' after ``30 percent''.
       (2) Modification of credit limitation.--Subsection (b) of 
     section 30C is amended--
       (A) in the matter preceding paragraph (1)--
       (i) by striking ``with respect to all'' and inserting 
     ``with respect to any single item of'', and
       (ii) by striking ``at a location'', and
       (B) in paragraph (1), by striking ``$30,000 in the case of 
     a property'' and inserting ``$100,000 in the case of any such 
     item of property''.
       (3) Bidirectional charging equipment included as qualified 
     alternative fuel vehicle refueling property.--Section 30C(c) 
     is amended to read as follows:
       ``(c) Qualified Alternative Fuel Vehicle Refueling 
     Property.--For purposes of this section--
       ``(1) In general.--The term `qualified alternative fuel 
     vehicle refueling property' has the same meaning as the term 
     `qualified clean-fuel vehicle refueling property' would have 
     under section 179A if--
       ``(A) paragraph (1) of section 179A(d) did not apply to 
     property installed on property which is used as the principal 
     residence (within the meaning of section 121) of the 
     taxpayer, and
       ``(B) only the following were treated as clean-burning 
     fuels for purposes of section 179A(d):
       ``(i) Any fuel at least 85 percent of the volume of which 
     consists of one or more of the following: ethanol, natural 
     gas, compressed natural gas, liquified natural gas, liquefied 
     petroleum gas, or hydrogen.
       ``(ii) Any mixture--

       ``(I) which consists of two or more of the following: 
     biodiesel (as defined in section 40A(d)(1)), diesel fuel (as 
     defined in section 4083(a)(3)), or kerosene, and
       ``(II) at least 20 percent of the volume of which consists 
     of biodiesel (as so defined) determined without regard to any 
     kerosene in such mixture.

       ``(iii) Electricity.
       ``(2) Bidirectional charging equipment.--Property shall not 
     fail to be treated as qualified alternative fuel vehicle 
     refueling property solely because such property--
       ``(A) is capable of charging the battery of a motor vehicle 
     propelled by electricity, and
       ``(B) allows discharging electricity from such battery to 
     an electric load external to such motor vehicle.''.
       (c) Certain Electric Charging Stations Included as 
     Qualified Alternative Fuel Vehicle Refueling Property.--
     Section 30C is amended by redesignating subsections (f) and 
     (g) as subsections (g) and (h), respectively, and by 
     inserting after subsection (e) the following:
       ``(f) Special Rule for Electric Charging Stations for 
     Certain Vehicles With 2 or 3 Wheels.--For purposes of this 
     section--
       ``(1) In general.--The term `qualified alternative fuel 
     vehicle refueling property' includes any property described 
     in subsection (c) for the recharging of a motor vehicle 
     described in paragraph (2), but only if such property--
       ``(A) meets the requirements of subsection (a)(2), and
       ``(B) is of a character subject to depreciation.
       ``(2) Motor vehicle.--A motor vehicle is described in this 
     paragraph if the motor vehicle--
       ``(A) is manufactured primarily for use on public streets, 
     roads, or highways (not including a vehicle operated 
     exclusively on a rail or rails),
       ``(B) has at least 2, but not more than 3, wheels, and
       ``(C) is propelled by electricity.''.
       (d) Wage and Apprenticeship Requirements.--Section 30C, as 
     amended by this section, is further amended by redesignating 
     subsections (g) and (h) as subsections (h) and (i) and by 
     inserting after subsection (f) the following new subsection:
       ``(g) Wage and Apprenticeship Requirements.--
       ``(1) Increased credit amount.--

[[Page S3961]]

       ``(A) In general.--In the case of any qualified alternative 
     fuel vehicle refueling project which satisfies the 
     requirements of subparagraph (C), the amount of the credit 
     determined under subsection (a) for any qualified alternative 
     fuel vehicle refueling property of a character subject to an 
     allowance for depreciation which is part of such project 
     shall be equal to such amount (determined without regard to 
     this sentence) multiplied by 5.
       ``(B) Qualified alternative fuel vehicle refueling 
     project.--For purposes of this subsection, the term 
     `qualified alternative fuel vehicle refueling project' means 
     a project consisting of one or more properties that are part 
     of a single project.
       ``(C) Project requirements.--A project meets the 
     requirements of this subparagraph if it is one of the 
     following:
       ``(i) A project the construction of which begins prior to 
     the date that is 60 days after the Secretary publishes 
     guidance with respect to the requirements of paragraphs 
     (2)(A) and (3).
       ``(ii) A project which satisfies the requirements of 
     paragraphs (2)(A) and (3).
       ``(2) Prevailing wage requirements.--
       ``(A) In general.--The requirements described in this 
     subparagraph with respect to any qualified alternative fuel 
     vehicle refueling project are that the taxpayer shall ensure 
     that any laborers and mechanics employed by contractors and 
     subcontractors in the construction of any qualified 
     alternative fuel vehicle refueling property which is part of 
     such project shall be paid wages at rates not less than the 
     prevailing rates for construction, alteration, or repair of a 
     similar character in the locality in which such project is 
     located as most recently determined by the Secretary of 
     Labor, in accordance with subchapter IV of chapter 31 of 
     title 40, United States Code.
       ``(B) Correction and penalty related to failure to satisfy 
     wage requirements.--Rules similar to the rules of section 
     45(b)(7)(B) shall apply.
       ``(3) Apprenticeship requirements.--Rules similar to the 
     rules of section 45(b)(8) shall apply.
       ``(4) Regulations and guidance.--The Secretary shall issue 
     such regulations or other guidance as the Secretary 
     determines necessary or appropriate to carry out the purposes 
     of this subsection, including regulations or other guidance 
     which provides for requirements for recordkeeping or 
     information reporting for purposes of administering the 
     requirements of this subsection.''.
       (e) Eligible Census Tracts.--Subsection (c) of section 30C, 
     as amended by subsection (b)(3), is amended by adding at the 
     end the following:
       ``(3) Property required to be located in eligible census 
     tracts.--
       ``(A) In general.--Property shall not be treated as 
     qualified alternative fuel vehicle refueling property unless 
     such property is placed in service in an eligible census 
     tract.
       ``(B) Eligible census tract.--
       ``(i) In general.--For purposes of this paragraph, the term 
     `eligible census tract' means any population census tract 
     which--

       ``(I) is described in section 45D(e), or
       ``(II) is not an urban area.

       ``(ii) Urban area.--For purposes of clause (i)(II), the 
     term `urban area' means a census tract (as defined by the 
     Bureau of the Census) which, according to the most recent 
     decennial census, has been designated as an urban area by the 
     Secretary of Commerce.''.
       (f) Effective Date.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall apply to property 
     placed in service after December 31, 2022.
       (2) Extension.--The amendments made by subsection (a) shall 
     apply to property placed in service after December 31, 2021.

  PART 5--INVESTMENT IN CLEAN ENERGY MANUFACTURING AND ENERGY SECURITY

     SEC. 13501. EXTENSION OF THE ADVANCED ENERGY PROJECT CREDIT.

       (a) Extension of Credit.--Section 48C is amended by 
     redesignating subsection (e) as subsection (f) and by 
     inserting after subsection (d) the following new subsection:
       ``(e) Additional Allocations.--
       ``(1) In general.--Not later than 180 days after the date 
     of enactment of this subsection, the Secretary shall 
     establish a program to consider and award certifications for 
     qualified investments eligible for credits under this section 
     to qualifying advanced energy project sponsors.
       ``(2) Limitation.--
       ``(A) In general.--The total amount of credits which may be 
     allocated under the program established under paragraph (1) 
     shall not exceed $10,000,000,000, of which not greater than 
     $6,000,000,000 may be allocated to qualified investments 
     which are not located within energy communities described in 
     clause (iii) of section 45(b)(11)(B).
       ``(B) No prior certification and allocation.--No credits 
     may be allocated under the program established under 
     paragraph (1) for any project which is located in a census 
     tract which, prior to the date of enactment of this 
     subsection, had received a certification and allocation of 
     credits under subsection (d).
       ``(3) Certifications.--
       ``(A) Application requirement.--Each applicant for 
     certification under this subsection shall submit an 
     application at such time and containing such information as 
     the Secretary may require.
       ``(B) Time to meet criteria for certification.--Each 
     applicant for certification shall have 2 years from the date 
     of acceptance by the Secretary of the application during 
     which to provide to the Secretary evidence that the 
     requirements of the certification have been met.
       ``(C) Period of issuance.--An applicant which receives a 
     certification shall have 2 years from the date of issuance of 
     the certification in order to place the project in service 
     and to notify the Secretary that such project has been so 
     placed in service, and if such project is not placed in 
     service by that time period, then the certification shall no 
     longer be valid. If any certification is revoked under this 
     subparagraph, the amount of the limitation under paragraph 
     (2) shall be increased by the amount of the credit with 
     respect to such revoked certification.
       ``(D) Location of project.--In the case of an applicant 
     which receives a certification, if the Secretary determines 
     that the project has been placed in service at a location 
     which is materially different than the location specified in 
     the application for such project, the certification shall no 
     longer be valid.
       ``(4) Credit rate conditioned upon wage and apprenticeship 
     requirements.--
       ``(A) Base rate.--For purposes of allocations under this 
     subsection, the amount of the credit determined under 
     subsection (a) shall be determined by substituting `6 
     percent' for `30 percent'.
       ``(B) Alternative rate.--In the case of any project which 
     satisfies the requirements of paragraphs (5)(A) and (6), 
     subparagraph (A) shall not apply.
       ``(5) Prevailing wage requirements.--
       ``(A) In general.--The requirements described in this 
     subparagraph with respect to a project are that the taxpayer 
     shall ensure that any laborers and mechanics employed by 
     contractors and subcontractors in the re-equipping, 
     expansion, or establishment of a manufacturing facility shall 
     be paid wages at rates not less than the prevailing rates for 
     construction, alteration, or repair of a similar character in 
     the locality in which such project is located as most 
     recently determined by the Secretary of Labor, in accordance 
     with subchapter IV of chapter 31 of title 40, United States 
     Code.
       ``(B) Correction and penalty related to failure to satisfy 
     wage requirements.--Rules similar to the rules of section 
     45(b)(7)(B) shall apply.
       ``(6) Apprenticeship requirements.--Rules similar to the 
     rules of section 45(b)(8) shall apply.
       ``(7) Disclosure of allocations.--The Secretary shall, upon 
     making a certification under this subsection, publicly 
     disclose the identity of the applicant and the amount of the 
     credit with respect to such applicant.''.
       (b) Modification of Qualifying Advanced Energy Projects.--
     Section 48C(c)(1)(A) is amended--
       (1) by inserting ``, any portion of the qualified 
     investment of which is certified by the Secretary under 
     subsection (e) as eligible for a credit under this section'' 
     after ``means a project'',
       (2) in clause (i)--
       (A) by striking ``a manufacturing facility for the 
     production of'' and inserting ``an industrial or 
     manufacturing facility for the production or recycling of'',
       (B) in clause (I), by inserting ``water,'' after ``sun,'',
       (C) in clause (II), by striking ``an energy storage system 
     for use with electric or hybrid-electric motor vehicles'' and 
     inserting ``energy storage systems and components'',
       (D) in clause (III), by striking ``grids to support the 
     transmission of intermittent sources of renewable energy, 
     including storage of such energy'' and inserting ``grid 
     modernization equipment or components'',
       (E) in subclause (IV), by striking ``and sequester carbon 
     dioxide emissions'' and inserting ``, remove, use, or 
     sequester carbon oxide emissions'',
       (F) by striking subclause (V) and inserting the following:

       ``(V) equipment designed to refine, electrolyze, or blend 
     any fuel, chemical, or product which is--

       ``(aa) renewable, or
       ``(bb) low-carbon and low-emission,'',
       (G) by striking subclause (VI),
       (H) by redesignating subclause (VII) as subclause (IX),
       (I) by inserting after subclause (V) the following new 
     subclauses:

       ``(VI) property designed to produce energy conservation 
     technologies (including residential, commercial, and 
     industrial applications),
       ``(VII) light-, medium-, or heavy-duty electric or fuel 
     cell vehicles, as well as--

       ``(aa) technologies, components, or materials for such 
     vehicles, and
       ``(bb) associated charging or refueling infrastructure,

       ``(VIII) hybrid vehicles with a gross vehicle weight rating 
     of not less than 14,000 pounds, as well as technologies, 
     components, or materials for such vehicles, or'', and

       (J) in subclause (IX), as so redesignated, by striking 
     ``and'' at the end, and
       (3) by striking clause (ii) and inserting the following:
       ``(ii) which re-equips an industrial or manufacturing 
     facility with equipment designed to reduce greenhouse gas 
     emissions by at least 20 percent through the installation 
     of--

       ``(I) low- or zero-carbon process heat systems,
       ``(II) carbon capture, transport, utilization and storage 
     systems,

[[Page S3962]]

       ``(III) energy efficiency and reduction in waste from 
     industrial processes, or
       ``(IV) any other industrial technology designed to reduce 
     greenhouse gas emissions, as determined by the Secretary, or

       ``(iii) which re-equips, expands, or establishes an 
     industrial facility for the processing, refining, or 
     recycling of critical materials (as defined in section 
     7002(a) of the Energy Act of 2020 (30 U.S.C. 1606(a)).''.
       (c) Conforming Amendment.--Subparagraph (A) of section 
     48C(c)(2) is amended to read as follows:
       ``(A) which is necessary for--
       ``(i) the production or recycling of property described in 
     clause (i) of paragraph (1)(A),
       ``(ii) re-equipping an industrial or manufacturing facility 
     described in clause (ii) of such paragraph, or
       ``(iii) re-equipping, expanding, or establishing an 
     industrial facility described in clause (iii) of such 
     paragraph,''.
       (d) Denial of Double Benefit.--48C(f), as redesignated by 
     this section, is amended by striking ``or 48B'' and inserting 
     ``48B, 48D, 45Q, or 45V''.
       (e) Effective Date.--The amendments made by this section 
     shall take effect on January 1, 2023.

     SEC. 13502. ADVANCED MANUFACTURING PRODUCTION CREDIT.

       (a) In General.--Subpart D of part IV of subchapter A of 
     chapter 1, as amended by the preceding provisions of this 
     Act, is amended by adding at the end the following new 
     section:

     ``SEC. 45X. ADVANCED MANUFACTURING PRODUCTION CREDIT.

       ``(a) In General.--
       ``(1) Allowance of credit.--For purposes of section 38, the 
     advanced manufacturing production credit for any taxable year 
     is an amount equal to the sum of the credit amounts 
     determined under subsection (b) with respect to each eligible 
     component which is--
       ``(A) produced by the taxpayer, and
       ``(B) during the taxable year, sold by such taxpayer to an 
     unrelated person.
       ``(2) Production and sale must be in trade or business.--
     Any eligible component produced and sold by the taxpayer 
     shall be taken into account only if the production and sale 
     described in paragraph (1) is in a trade or business of the 
     taxpayer.
       ``(3) Unrelated person.--For purposes of this subsection, a 
     taxpayer shall be treated as selling components to an 
     unrelated person if such component is sold to such person by 
     a person related to the taxpayer.
       ``(b) Credit Amount.--
       ``(1) In general.--Subject to paragraph (3), the amount 
     determined under this subsection with respect to any eligible 
     component, including any eligible component it incorporates, 
     shall be equal to--
       ``(A) in the case of a thin film photovoltaic cell or a 
     crystalline photovoltaic cell, an amount equal to the product 
     of--
       ``(i) 4 cents, multiplied by
       ``(ii) the capacity of such cell (expressed on a per direct 
     current watt basis),
       ``(B) in the case of a photovoltaic wafer, $12 per square 
     meter,
       ``(C) in the case of solar grade polysilicon, $3 per 
     kilogram,
       ``(D) in the case of a polymeric backsheet, 40 cents per 
     square meter,
       ``(E) in the case of a solar module, an amount equal to the 
     product of--
       ``(i) 7 cents, multiplied by
       ``(ii) the capacity of such module (expressed on a per 
     direct current watt basis),
       ``(F) in the case of a wind energy component--
       ``(i) if such component is a related offshore wind vessel, 
     an amount equal to 10 percent of the sales price of such 
     vessel, and
       ``(ii) if such component is not described in clause (i), an 
     amount equal to the product of--

       ``(I) the applicable amount with respect to such component 
     (as determined under paragraph (2)(A)), multiplied by
       ``(II) the total rated capacity (expressed on a per watt 
     basis) of the completed wind turbine for which such component 
     is designed,

       ``(G) in the case of a torque tube, 87 cents per kilogram,
       ``(H) in the case of a structural fastener, $2.28 per 
     kilogram,
       ``(I) in the case of an inverter, an amount equal to the 
     product of--
       ``(i) the applicable amount with respect to such inverter 
     (as determined under paragraph (2)(B)), multiplied by
       ``(ii) the capacity of such inverter (expressed on a per 
     alternating current watt basis),
       ``(J) in the case of electrode active materials, an amount 
     equal to 10 percent of the costs incurred by the taxpayer 
     with respect to production of such materials,
       ``(K) in the case of a battery cell, an amount equal to the 
     product of--
       ``(i) $35, multiplied by
       ``(ii) subject to paragraph (4), the capacity of such 
     battery cell (expressed on a kilowatt-hour basis),
       ``(L) in the case of a battery module, an amount equal to 
     the product of--
       ``(i) $10 (or, in the case of a battery module which does 
     not use battery cells, $45), multiplied by
       ``(ii) subject to paragraph (4), the capacity of such 
     battery module (expressed on a kilowatt-hour basis), and
       ``(M) in the case of any applicable critical mineral, an 
     amount equal to 10 percent of the costs incurred by the 
     taxpayer with respect to production of such mineral.
       ``(2) Applicable amounts.--
       ``(A) Wind energy components.--For purposes of paragraph 
     (1)(F)(ii), the applicable amount with respect to any wind 
     energy component shall be--
       ``(i) in the case of a blade, 2 cents,
       ``(ii) in the case of a nacelle, 5 cents,
       ``(iii) in the case of a tower, 3 cents, and
       ``(iv) in the case of an offshore wind foundation--

       ``(I) which uses a fixed platform, 2 cents, or
       ``(II) which uses a floating platform, 4 cents.

       ``(B) Inverters.--For purposes of paragraph (1)(I), the 
     applicable amount with respect to any inverter shall be--
       ``(i) in the case of a central inverter, 0.25 cents,
       ``(ii) in the case of a utility inverter, 1.5 cents,
       ``(iii) in the case of a commercial inverter, 2 cents,
       ``(iv) in the case of a residential inverter, 6.5 cents, 
     and
       ``(v) in the case of a microinverter or a distributed wind 
     inverter, 11 cents.
       ``(3) Phase out.--
       ``(A) In general.--Subject to subparagraph (C), in the case 
     of any eligible component sold after December 31, 2029, the 
     amount determined under this subsection with respect to such 
     component shall be equal to the product of--
       ``(i) the amount determined under paragraph (1) with 
     respect to such component, as determined without regard to 
     this paragraph, multiplied by
       ``(ii) the phase out percentage under subparagraph (B).
       ``(B) Phase out percentage.--The phase out percentage under 
     this subparagraph is equal to--
       ``(i) in the case of an eligible component sold during 
     calendar year 2030, 75 percent,
       ``(ii) in the case of an eligible component sold during 
     calendar year 2031, 50 percent,
       ``(iii) in the case of an eligible component sold during 
     calendar year 2032, 25 percent,
       ``(iv) in the case of an eligible component sold after 
     December 31, 2032, 0 percent.
       ``(C) Exception.--For purposes of determining the amount 
     under this subsection with respect to any applicable critical 
     mineral, this paragraph shall not apply.
       ``(4) Limitation on capacity of battery cells and battery 
     modules.--
       ``(A) In general.--For purposes of subparagraph (K)(ii) or 
     (L)(ii) of paragraph (1), the capacity determined under 
     either subparagraph with respect to a battery cell or battery 
     module shall not exceed a capacity-to-power ratio of 100:1.
       ``(B) Capacity-to-power ratio.--For purposes of this 
     paragraph, the term `capacity-to-power ratio' means, with 
     respect to a battery cell or battery module, the ratio of the 
     capacity of such cell or module to the maximum discharge 
     amount of such cell or module.
       ``(c) Definitions.--For purposes of this section--
       ``(1) Eligible component.--
       ``(A) In general.--The term `eligible component' means--
       ``(i) any solar energy component,
       ``(ii) any wind energy component,
       ``(iii) any inverter described in subparagraphs (B) through 
     (G) of paragraph (2),
       ``(iv) any qualifying battery component, and
       ``(v) any applicable critical mineral.
       ``(B) Application with other credits.--The term `eligible 
     component' shall not include any property which is produced 
     at a facility if the basis of any property which is part of 
     such facility is taken into account for purposes of the 
     credit allowed under section 48C after the date of the 
     enactment of this section.
       ``(2) Inverters.--
       ``(A) In general.--The term `inverter' means an end product 
     which is suitable to convert direct current electricity from 
     1 or more solar modules or certified distributed wind energy 
     systems into alternating current electricity.
       ``(B) Central inverter.--The term `central inverter' means 
     an inverter which is suitable for large utility-scale systems 
     and has a capacity which is greater than 1,000 kilowatts 
     (expressed on a per alternating current watt basis).
       ``(C) Commercial inverter.--The term `commercial inverter' 
     means an inverter which--
       ``(i) is suitable for commercial or utility-scale 
     applications,
       ``(ii) has a rated output of 208, 480, 600, or 800 volt 
     three-phase power, and
       ``(iii) has a capacity which is not less than 20 kilowatts 
     and not greater than 125 kilowatts (expressed on a per 
     alternating current watt basis).
       ``(D) Distributed wind inverter.--
       ``(i) In general.--The term `distributed wind inverter' 
     means an inverter which--

       ``(I) is used in a residential or non-residential system 
     which utilizes 1 or more certified distributed wind energy 
     systems, and
       ``(II) has a rated output of not greater than 150 
     kilowatts.

       ``(ii) Certified distributed wind energy system.--The term 
     `certified distributed wind energy system' means a wind 
     energy system which is certified by an accredited 
     certification agency to meet Standard 9.1-2009 of the 
     American Wind Energy Association (including any subsequent 
     revisions to or modifications of such Standard which have 
     been approved by the American National Standards Institute).

[[Page S3963]]

       ``(E) Microinverter.--The term `microinverter' means an 
     inverter which--
       ``(i) is suitable to connect with one solar module,
       ``(ii) has a rated output of--

       ``(I) 120 or 240 volt single-phase power, or
       ``(II) 208 or 480 volt three-phase power, and

       ``(iii) has a capacity which is not greater than 650 watts 
     (expressed on a per alternating current watt basis).
       ``(F) Residential inverter.--The term `residential 
     inverter' means an inverter which--
       ``(i) is suitable for a residence,
       ``(ii) has a rated output of 120 or 240 volt single-phase 
     power, and
       ``(iii) has a capacity which is not greater than 20 
     kilowatts (expressed on a per alternating current watt 
     basis).
       ``(G) Utility inverter.--The term `utility inverter' means 
     an inverter which--
       ``(i) is suitable for commercial or utility-scale systems,
       ``(ii) has a rated output of not less than 600 volt three-
     phase power, and
       ``(iii) has a capacity which is greater than 125 kilowatts 
     and not greater than 1000 kilowatts (expressed on a per 
     alternating current watt basis)
       ``(3) Solar energy component.--
       ``(A) In general.--The term `solar energy component' means 
     any of the following:
       ``(i) Solar modules.
       ``(ii) Photovoltaic cells.
       ``(iii) Photovoltaic wafers.
       ``(iv) Solar grade polysilicon.
       ``(v) Torque tubes or structural fasteners.
       ``(vi) Polymeric backsheets.
       ``(B) Associated definitions.--
       ``(i) Photovoltaic cell.--The term `photovoltaic cell' 
     means the smallest semiconductor element of a solar module 
     which performs the immediate conversion of light into 
     electricity.
       ``(ii) Photovoltaic wafer.--The term `photovoltaic wafer' 
     means a thin slice, sheet, or layer of semiconductor material 
     of at least 240 square centimeters--

       ``(I) produced by a single manufacturer either--

       ``(aa) directly from molten or evaporated solar grade 
     polysilicon or deposition of solar grade thin film 
     semiconductor photon absorber layer, or
       ``(bb) through formation of an ingot from molten 
     polysilicon and subsequent slicing, and

       ``(II) which comprises the substrate or absorber layer of 
     one or more photovoltaic cells.

       ``(iii) Polymeric backsheet.--The term `polymeric 
     backsheet' means a sheet on the back of a solar module which 
     acts as an electric insulator and protects the inner 
     components of such module from the surrounding environment.
       ``(iv) Solar grade polysilicon.--The term `solar grade 
     polysilicon' means silicon which is--

       ``(I) suitable for use in photovoltaic manufacturing, and
       ``(II) purified to a minimum purity of 99.999999 percent 
     silicon by mass.

       ``(v) Solar module.--The term `solar module' means the 
     connection and lamination of photovoltaic cells into an 
     environmentally protected final assembly which is--

       ``(I) suitable to generate electricity when exposed to 
     sunlight, and
       ``(II) ready for installation without an additional 
     manufacturing process.

       ``(vi) Solar tracker.--The term `solar tracker' means a 
     mechanical system that moves solar modules according to the 
     position of the sun and to increase energy output.
       ``(vii) Solar tracker components.--

       ``(I) Torque tube.--The term `torque tube' means a 
     structural steel support element (including longitudinal 
     purlins) which--

       ``(aa) is part of a solar tracker,
       ``(bb) is of any cross-sectional shape,
       ``(cc) may be assembled from individually manufactured 
     segments,
       ``(dd) spans longitudinally between foundation posts,
       ``(ee) supports solar panels and is connected to a mounting 
     attachment for solar panels (with or without separate module 
     interface rails), and
       ``(ff) is rotated by means of a drive system.

       ``(II) Structural fastener.--The term `structural fastener' 
     means a component which is used--

       ``(aa) to connect the mechanical and drive system 
     components of a solar tracker to the foundation of such solar 
     tracker,
       ``(bb) to connect torque tubes to drive assemblies, or
       ``(cc) to connect segments of torque tubes to one another.
       ``(4) Wind energy component.--
       ``(A) In general.--The term `wind energy component' means 
     any of the following:
       ``(i) Blades.
       ``(ii) Nacelles.
       ``(iii) Towers.
       ``(iv) Offshore wind foundations.
       ``(v) Related offshore wind vessels.
       ``(B) Associated definitions.--
       ``(i) Blade.--The term `blade' means an airfoil-shaped 
     blade which is responsible for converting wind energy to low-
     speed rotational energy.
       ``(ii) Offshore wind foundation.--The term `offshore wind 
     foundation' means the component (including transition piece) 
     which secures an offshore wind tower and any above-water 
     turbine components to the seafloor using--

       ``(I) fixed platforms, such as offshore wind monopiles, 
     jackets, or gravity-based foundations, or
       ``(II) floating platforms and associated mooring systems.

       ``(iii) Nacelle.--The term `nacelle' means the assembly of 
     the drivetrain and other tower-top components of a wind 
     turbine (with the exception of the blades and the hub) within 
     their cover housing.
       ``(iv) Related offshore wind vessel.--The term `related 
     offshore wind vessel' means any vessel which is purpose-built 
     or retrofitted for purposes of the development, transport, 
     installation, operation, or maintenance of offshore wind 
     energy components.
       ``(v) Tower.--The term `tower' means a tubular or lattice 
     structure which supports the nacelle and rotor of a wind 
     turbine.
       ``(5) Qualifying battery component.--
       ``(A) In general.--The term `qualifying battery component' 
     means any of the following:
       ``(i) Electrode active materials.
       ``(ii) Battery cells.
       ``(iii) Battery modules.
       ``(B) Associated definitions.--
       ``(i) Electrode active material.--The term `electrode 
     active material' means cathode materials, anode materials, 
     anode foils, and electrochemically active materials, 
     including solvents, additives, and electrolyte salts that 
     contribute to the electrochemical processes necessary for 
     energy storage .
       ``(ii) Battery cell.--The term `battery cell' means an 
     electrochemical cell--

       ``(I) comprised of 1 or more positive electrodes and 1 or 
     more negative electrodes,
       ``(II) with an energy density of not less than 100 watt-
     hours per liter, and
       ``(III) capable of storing at least 20 watt-hours of 
     energy.

       ``(iii) Battery module.--The term `battery module' means a 
     module--

       ``(I)(aa) in the case of a module using battery cells, with 
     2 or more battery cells which are configured electrically, in 
     series or parallel, to create voltage or current, as 
     appropriate, to a specified end use, or
       ``(bb) with no battery cells, and
       ``(II) with an aggregate capacity of not less than 7 
     kilowatt-hours (or, in the case of a module for a hydrogen 
     fuel cell vehicle, not less than 1 kilowatt-hour).

       ``(6) Applicable critical minerals.--The term `applicable 
     critical mineral' means any of the following:
       ``(A) Aluminum.--Aluminum which is--
       ``(i) converted to metallurgical grade bauxite, or
       ``(ii) purified to a minimum purity of 99.99 percent 
     aluminum by mass.
       ``(B) Antimony.--Antimony which is--
       ``(i) converted to antimony trisulfide, or
       ``(ii) purified to a minimum purity of 99 percent antimony 
     by mass.
       ``(C) Barite.--Barite which is--
       ``(i) converted to barium sulfate, or
       ``(ii) purified to a minimum purity of 99 percent barite by 
     mass.
       ``(D) Beryllium.--Beryllium which is--
       ``(i) converted to copper-beryllium master alloy, or
       ``(ii) purified to a minimum purity of 99 percent beryllium 
     by mass.
       ``(E) Cerium.--Cerium which is--
       ``(i) converted to cerium oxide which is purified to a 
     minimum purity of 99.9 percent cerium oxide by mass, or
       ``(ii) purified to a minimum purity of 99 percent cerium by 
     mass.
       ``(F) Cesium.--Cesium which is--
       ``(i) converted to cesium formate or cesium carbonate, or
       ``(ii) purified to a minimum purity of 99 percent cesium by 
     mass.
       ``(G) Chromium.--Chromium which is--
       ``(i) converted to ferrochromium consisting of not less 
     than 60 percent chromium by mass, or
       ``(ii) purified to a minimum purity of 99 percent chromium 
     by mass.
       ``(H) Cobalt.--Cobalt which is--
       ``(i) converted to cobalt sulfate, or
       ``(ii) purified to a minimum purity of 99.6 percent cobalt 
     by mass.
       ``(I) Dysprosium.--Dysprosium which is--
       ``(i) converted to not less than 99 percent pure dysprosium 
     iron alloy by mass, or
       ``(ii) purified to a minimum purity of 99 percent 
     dysprosium by mass.
       ``(J) Europium.--Europium which is--
       ``(i) converted to europium oxide which is purified to a 
     minimum purity of 99.9 percent europium oxide by mass, or
       ``(ii) purified to a minimum purity of 99 percent by mass.
       ``(K) Fluorspar.--Fluorspar which is--
       ``(i) converted to acid grade fluorspar which is purified 
     to a minimum purity of 97 percent calcium fluoride by mass, 
     or
       ``(ii) purified to a minimum purity of 99 percent fluorspar 
     by mass.
       ``(L) Gadolinium.--Gadolinium which is--
       ``(i) converted to gadolinium oxide which is purified to a 
     minimum purity of 99.9 percent gadolinium oxide by mass, or
       ``(ii) purified to a minimum purity of 99 percent 
     gadolinium by mass.
       ``(M) Germanium.--Germanium which is--
       ``(i) converted to germanium tetrachloride, or
       ``(ii) purified to a minimum purity of 99 percent germanium 
     by mass.
       ``(N) Graphite.--Graphite which is purified to a minimum 
     purity of 99.9 percent graphitic carbon by mass.
       ``(O) Indium.--Indium which is--
       ``(i) converted to--

       ``(I) indium tin oxide, or

[[Page S3964]]

       ``(II) indium oxide which is purified to a minimum purity 
     of 99.9 percent indium oxide by mass, or

       ``(ii) purified to a minimum purity of 99 percent indium by 
     mass.
       ``(P) Lithium.--Lithium which is--
       ``(i) converted to lithium carbonate or lithium hydroxide, 
     or
       ``(ii) purified to a minimum purity of 99.9 percent lithium 
     by mass.
       ``(Q) Manganese.--Manganese which is--
       ``(i) converted to manganese sulphate, or
       ``(ii) purified to a minimum purity of 99.7 percent 
     manganese by mass.
       ``(R) Neodymium.--Neodymium which is--
       ``(i) converted to neodymium-praseodymium oxide, or
       ``(ii) purified to a minimum purity of 99 percent neodymium 
     by mass.
       ``(S) Nickel.--Nickel which is--
       ``(i) converted to nickel sulphate, or
       ``(ii) purified to a minimum purity of 99 percent nickel by 
     mass.
       ``(T) Niobium.--Niobium which is--
       ``(i) converted to ferronibium, or
       ``(ii) purified to a minimum purity of 99 percent niobium 
     by mass.
       ``(U) Tellurium.--Tellurium which is--
       ``(i) converted to cadmium telluride, or
       ``(ii) purified to a minimum purity of 99 percent tellurium 
     by mass.
       ``(V) Tin.--Tin which is--
       ``(i) converted to indium tin oxide, or
       ``(ii) purified to low alpha emitting tin which--

       ``(I) has a purity of greater than 99.99 percent by mass, 
     and
       ``(II) possesses an alpha emission rate of not greater than 
     0.01 counts per hour per centimeter square.

       ``(W) Tungsten.--Tungsten which is converted to ammonium 
     paratungstate or ferrotungsten.
       ``(X) Vanadium.--Vanadium which is converted to 
     ferrovanadium or vanadium pentoxide.
       ``(Y) Yttrium.--Yttrium which is--
       ``(i) converted to yttrium oxide which is purified to a 
     minimum purity of 99.9 percent yttrium oxide by mass, or
       ``(ii) purified to a minimum purity of 99 percent yttrium 
     by mass.
       ``(Z) Other minerals.--Any of the following minerals, 
     provided that such mineral is purified to a minimum purity of 
     99 percent by mass:
       ``(i) Arsenic.
       ``(ii) Bismuth.
       ``(iii) Erbium.
       ``(iv) Gallium.
       ``(v) Hafnium.
       ``(vi) Holmium.
       ``(vii) Iridium.
       ``(viii) Lanthanum.
       ``(ix) Lutetium.
       ``(x) Magnesium.
       ``(xi) Palladium.
       ``(xii) Platinum.
       ``(xiii) Praseodymium.
       ``(xiv) Rhodium.
       ``(xv) Rubidium.
       ``(xvi) Ruthenium.
       ``(xvii) Samarium.
       ``(xviii) Scandium.
       ``(xix) Tantalum.
       ``(xx) Terbium.
       ``(xxi) Thulium.
       ``(xxii) Titanium.
       ``(xxiii) Ytterbium.
       ``(xxiv) Zinc.
       ``(xxv) Zirconium.
       ``(d) Special Rules.--In this section--
       ``(1) Related persons.--Persons shall be treated as related 
     to each other if such persons would be treated as a single 
     employer under the regulations prescribed under section 
     52(b).
       ``(2) Only production in the united states taken into 
     account.--Sales shall be taken into account under this 
     section only with respect to eligible components the 
     production of which is within--
       ``(A) the United States (within the meaning of section 
     638(1)), or
       ``(B) a possession of the United States (within the meaning 
     of section 638(2)).
       ``(3) Pass-thru in the case of estates and trusts.--Under 
     regulations prescribed by the Secretary, rules similar to the 
     rules of subsection (d) of section 52 shall apply.
       ``(4) Sale of integrated components.--For purposes of this 
     section, a person shall be treated as having sold an eligible 
     component to an unrelated person if such component is 
     integrated, incorporated, or assembled into another eligible 
     component which is sold to an unrelated person.''.
       (b) Conforming Amendments.--
       (1) Section 38(b) of the Internal Revenue Code of 1986, as 
     amended by the preceding provisions of this Act, is amended--
       (A) in paragraph (36), by striking ``plus'' at the end,
       (B) in paragraph (37), by striking the period at the end 
     and inserting ``, plus'', and
       (C) by adding at the end the following new paragraph:
       ``(38) the advanced manufacturing production credit 
     determined under section 45X(a).''.
       (2) The table of sections for subpart D of part IV of 
     subchapter A of chapter 1, as amended by the preceding 
     provisions of this Act, is amended by adding at the end the 
     following new item:

``Sec. 45X. Advanced manufacturing production credit.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to components produced and sold after December 
     31, 2022.

                           PART 6--SUPERFUND

     SEC. 13601. REINSTATEMENT OF SUPERFUND.

       (a)  Hazardous Substance Superfund Financing Rate.--
       (1) Extension.--Section 4611 is amended by striking 
     subsection (e).
       (2) Adjustment for inflation.--
       (A) Section 4611(c)(2)(A) is amended by striking ``9.7 
     cents'' and inserting ``16.4 cents''.
       (B) Section 4611(c) is amended by adding at the end the 
     following:
       ``(3) Adjustment for inflation.--
       ``(A) In general.--In the case of a year beginning after 
     2023, the amount in paragraph (2)(A) shall be increased by an 
     amount equal to--
       ``(i) such amount, multiplied by
       ``(ii) the cost-of-living adjustment determined under 
     section 1(f)(3) for the calendar year, determined by 
     substituting `calendar year 2022' for `calendar year 2016' in 
     subparagraph (A)(ii) thereof.
       ``(B) Rounding.--If any amount as adjusted under 
     subparagraph (A) is not a multiple of $0.01, such amount 
     shall be rounded to the next lowest multiple of $0.01.''.
       (b) Authority for Advances.--Section 9507(d)(3)(B) is 
     amended by striking ``December 31, 1995'' and inserting 
     ``December 31, 2032''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on January 1, 2023.

   PART 7--INCENTIVES FOR CLEAN ELECTRICITY AND CLEAN TRANSPORTATION

     SEC. 13701. CLEAN ELECTRICITY PRODUCTION CREDIT.

       (a) In General.--Subpart D of part IV of subchapter A of 
     chapter 1, as amended by the preceding provisions of this 
     Act, is amended by adding at the end the following new 
     section:

     ``SEC. 45Y. CLEAN ELECTRICITY PRODUCTION CREDIT.

       ``(a) Amount of Credit.--
       ``(1) In general.--For purposes of section 38, the clean 
     electricity production credit for any taxable year is an 
     amount equal to the product of--
       ``(A) the kilowatt hours of electricity--
       ``(i) produced by the taxpayer at a qualified facility, and
       ``(ii)(I) sold by the taxpayer to an unrelated person 
     during the taxable year, or
       ``(II) in the case of a qualified facility which is 
     equipped with a metering device which is owned and operated 
     by an unrelated person, sold, consumed, or stored by the 
     taxpayer during the taxable year, multiplied by
       ``(B) the applicable amount with respect to such qualified 
     facility.
       ``(2) Applicable amount.--
       ``(A) Base amount.--Subject to subsection (g)(7), in the 
     case of any qualified facility which is not described in 
     clause (i) or (ii) of subparagraph (B) and does not satisfy 
     the requirements described in clause (iii) of such 
     subparagraph, the applicable amount shall be 0.3 cents.
       ``(B) Alternative amount.--Subject to subsection (g)(7), in 
     the case of any qualified facility--
       ``(i) with a maximum net output of less than 1 megawatt (as 
     measured in alternating current),
       ``(ii) the construction of which begins prior to the date 
     that is 60 days after the Secretary publishes guidance with 
     respect to the requirements of paragraphs (9) and (10) of 
     subsection (g), or
       ``(iii) which--

       ``(I) satisfies the requirements under paragraph (9) of 
     subsection (g), and
       ``(II) with respect to the construction of such facility, 
     satisfies the requirements under paragraph (10) of subsection 
     (g),

     the applicable amount shall be 1.5 cents.
       ``(b) Qualified Facility.--
       ``(1) In general.--
       ``(A) Definition.--Subject to subparagraphs (B), (C), and 
     (D), the term `qualified facility' means a facility owned by 
     the taxpayer--
       ``(i) which is used for the generation of electricity,
       ``(ii) which is placed in service after December 31, 2024, 
     and
       ``(iii) for which the greenhouse gas emissions rate (as 
     determined under paragraph (2)) is not greater than zero.
       ``(B) 10-year production credit.--For purposes of this 
     section, a facility shall only be treated as a qualified 
     facility during the 10-year period beginning on the date the 
     facility was originally placed in service.
       ``(C) Expansion of facility; incremental production.--The 
     term `qualified facility' shall include either of the 
     following in connection with a facility described in 
     subparagraph (A) (without regard to clause (ii) of such 
     subparagraph) which was placed in service before January 1, 
     2025, but only to the extent of the increased amount of 
     electricity produced at the facility by reason of the 
     following:
       ``(i) A new unit which is placed in service after December 
     31, 2024.
       ``(ii) Any additions of capacity which are placed in 
     service after December 31, 2024.
       ``(D) Coordination with other credits.--The term `qualified 
     facility' shall not include any facility for which a credit 
     determined under section 45, 45J, 45Q, 45U, 48, 48A, or 48D 
     is allowed under section 38 for the taxable year or any prior 
     taxable year.
       ``(2) Greenhouse gas emissions rate.--
       ``(A) In general.--For purposes of this section, the term 
     `greenhouse gas emissions rate' means the amount of 
     greenhouse gases emitted into the atmosphere by a facility in

[[Page S3965]]

     the production of electricity, expressed as grams of 
     CO2e per KWh.
       ``(B) Fuel combustion and gasification.--In the case of a 
     facility which produces electricity through combustion or 
     gasification, the greenhouse gas emissions rate for such 
     facility shall be equal to the net rate of greenhouse gases 
     emitted into the atmosphere by such facility (taking into 
     account lifecycle greenhouse gas emissions, as described in 
     section 211(o)(1)(H) of the Clean Air Act (42 U.S.C. 
     7545(o)(1)(H))) in the production of electricity, expressed 
     as grams of CO2e per KWh.
       ``(C) Establishment of emissions rates for facilities.--
       ``(i) Publishing emissions rates.--The Secretary shall 
     annually publish a table that sets forth the greenhouse gas 
     emissions rates for types or categories of facilities, which 
     a taxpayer shall use for purposes of this section.
       ``(ii) Provisional emissions rate.--In the case of any 
     facility for which an emissions rate has not been established 
     by the Secretary, a taxpayer which owns such facility may 
     file a petition with the Secretary for determination of the 
     emissions rate with respect to such facility.
       ``(D) Carbon capture and sequestration equipment.--For 
     purposes of this subsection, the amount of greenhouse gases 
     emitted into the atmosphere by a facility in the production 
     of electricity shall not include any qualified carbon dioxide 
     that is captured by the taxpayer and--
       ``(i) pursuant to any regulations established under 
     paragraph (2) of section 45Q(f), disposed of by the taxpayer 
     in secure geological storage, or
       ``(ii) utilized by the taxpayer in a manner described in 
     paragraph (5) of such section.
       ``(c) Inflation Adjustment.--
       ``(1) In general.--In the case of a calendar year beginning 
     after 2024, the 0.3 cent amount in paragraph (2)(A) of 
     subsection (a) and the 1.5 cent amount in paragraph (2)(B) of 
     such subsection shall each be adjusted by multiplying such 
     amount by the inflation adjustment factor for the calendar 
     year in which the sale, consumption, or storage of the 
     electricity occurs. If the 0.3 cent amount as increased under 
     this paragraph is not a multiple of 0.05 cent, such amount 
     shall be rounded to the nearest multiple of 0.05 cent. If the 
     1.5 cent amount as increased under this paragraph is not a 
     multiple of 0.1 cent, such amount shall be rounded to the 
     nearest multiple of 0.1 cent.
       ``(2) Annual computation.--The Secretary shall, not later 
     than April 1 of each calendar year, determine and publish in 
     the Federal Register the inflation adjustment factor for such 
     calendar year in accordance with this subsection.
       ``(3) Inflation adjustment factor.--The term `inflation 
     adjustment factor' means, with respect to a calendar year, a 
     fraction the numerator of which is the GDP implicit price 
     deflator for the preceding calendar year and the denominator 
     of which is the GDP implicit price deflator for the calendar 
     year 1992. The term `GDP implicit price deflator' means the 
     most recent revision of the implicit price deflator for the 
     gross domestic product as computed and published by the 
     Department of Commerce before March 15 of the calendar year.
       ``(d) Credit Phase-out.--
       ``(1) In general.--The amount of the clean electricity 
     production credit under subsection (a) for any qualified 
     facility the construction of which begins during a calendar 
     year described in paragraph (2) shall be equal to the product 
     of--
       ``(A) the amount of the credit determined under subsection 
     (a) without regard to this subsection, multiplied by
       ``(B) the phase-out percentage under paragraph (2).
       ``(2) Phase-out percentage.--The phase-out percentage under 
     this paragraph is equal to--
       ``(A) for a facility the construction of which begins 
     during the first calendar year following the applicable year, 
     100 percent,
       ``(B) for a facility the construction of which begins 
     during the second calendar year following the applicable 
     year, 75 percent,
       ``(C) for a facility the construction of which begins 
     during the third calendar year following the applicable year, 
     50 percent, and
       ``(D) for a facility the construction of which begins 
     during any calendar year subsequent to the calendar year 
     described in subparagraph (C), 0 percent.
       ``(3) Applicable year.--For purposes of this subsection, 
     the term `applicable year' means the later of--
       ``(A) the calendar year in which the Secretary determines 
     that the annual greenhouse gas emissions from the production 
     of electricity in the United States are equal to or less than 
     25 percent of the annual greenhouse gas emissions from the 
     production of electricity in the United States for calendar 
     year 2022, or
       ``(B) 2032.
       ``(e) Definitions.--For purposes of this section:
       ``(1) CO2e per KWh.--The term `CO2e 
     per KWh' means, with respect to any greenhouse gas, the 
     equivalent carbon dioxide (as determined based on global 
     warming potential) per kilowatt hour of electricity produced.
       ``(2) Greenhouse gas.--The term `greenhouse gas' has the 
     same meaning given such term under section 211(o)(1)(G) of 
     the Clean Air Act (42 U.S.C. 7545(o)(1)(G)), as in effect on 
     the date of the enactment of this section.
       ``(3) Qualified carbon dioxide.--The term `qualified carbon 
     dioxide' means carbon dioxide captured from an industrial 
     source which--
       ``(A) would otherwise be released into the atmosphere as 
     industrial emission of greenhouse gas,
       ``(B) is measured at the source of capture and verified at 
     the point of disposal or utilization, and
       ``(C) is captured and disposed or utilized within the 
     United States (within the meaning of section 638(1)) or a 
     possession of the United States (within the meaning of 
     section 638(2)).
       ``(f) Guidance.--Not later than January 1, 2025, the 
     Secretary shall issue guidance regarding implementation of 
     this section, including calculation of greenhouse gas 
     emission rates for qualified facilities and determination of 
     clean electricity production credits under this section.
       ``(g) Special Rules.--
       ``(1) Only production in the united states taken into 
     account.--Consumption, sales, or storage shall be taken into 
     account under this section only with respect to electricity 
     the production of which is within--
       ``(A) the United States (within the meaning of section 
     638(1)), or
       ``(B) a possession of the United States (within the meaning 
     of section 638(2)).
       ``(2) Combined heat and power system property.--
       ``(A) In general.--For purposes of subsection (a)--
       ``(i) the kilowatt hours of electricity produced by a 
     taxpayer at a qualified facility shall include any production 
     in the form of useful thermal energy by any combined heat and 
     power system property within such facility, and
       ``(ii) the amount of greenhouse gases emitted into the 
     atmosphere by such facility in the production of such useful 
     thermal energy shall be included for purposes of determining 
     the greenhouse gas emissions rate for such facility.
       ``(B) Combined heat and power system property.--For 
     purposes of this paragraph, the term `combined heat and power 
     system property' has the same meaning given such term by 
     section 48(c)(3) (without regard to subparagraphs (A)(iv), 
     (B), and (D) thereof).
       ``(C) Conversion from btu to kwh.--
       ``(i) In general.--For purposes of subparagraph (A)(i), the 
     amount of kilowatt hours of electricity produced in the form 
     of useful thermal energy shall be equal to the quotient of--

       ``(I) the total useful thermal energy produced by the 
     combined heat and power system property within the qualified 
     facility, divided by
       ``(II) the heat rate for such facility.

       ``(ii) Heat rate.--For purposes of this subparagraph, the 
     term `heat rate' means the amount of energy used by the 
     qualified facility to generate 1 kilowatt hour of 
     electricity, expressed as British thermal units per net 
     kilowatt hour generated.
       ``(3) Production attributable to the taxpayer.--In the case 
     of a qualified facility in which more than 1 person has an 
     ownership interest, except to the extent provided in 
     regulations prescribed by the Secretary, production from the 
     facility shall be allocated among such persons in proportion 
     to their respective ownership interests in the gross sales 
     from such facility.
       ``(4) Related persons.--Persons shall be treated as related 
     to each other if such persons would be treated as a single 
     employer under the regulations prescribed under section 
     52(b). In the case of a corporation which is a member of an 
     affiliated group of corporations filing a consolidated 
     return, such corporation shall be treated as selling 
     electricity to an unrelated person if such electricity is 
     sold to such a person by another member of such group.
       ``(5) Pass-thru in the case of estates and trusts.--Under 
     regulations prescribed by the Secretary, rules similar to the 
     rules of subsection (d) of section 52 shall apply.
       ``(6) Allocation of credit to patrons of agricultural 
     cooperative.--
       ``(A) Election to allocate.--
       ``(i) In general.--In the case of an eligible cooperative 
     organization, any portion of the credit determined under 
     subsection (a) for the taxable year may, at the election of 
     the organization, be apportioned among patrons of the 
     organization on the basis of the amount of business done by 
     the patrons during the taxable year.
       ``(ii) Form and effect of election.--An election under 
     clause (i) for any taxable year shall be made on a timely 
     filed return for such year. Such election, once made, shall 
     be irrevocable for such taxable year. Such election shall not 
     take effect unless the organization designates the 
     apportionment as such in a written notice mailed to its 
     patrons during the payment period described in section 
     1382(d).
       ``(B) Treatment of organizations and patrons.--The amount 
     of the credit apportioned to any patrons under subparagraph 
     (A)--
       ``(i) shall not be included in the amount determined under 
     subsection (a) with respect to the organization for the 
     taxable year, and
       ``(ii) shall be included in the amount determined under 
     subsection (a) for the first taxable year of each patron 
     ending on or after the last day of the payment period (as 
     defined in section 1382(d)) for the taxable year of the 
     organization or, if earlier, for the taxable year of each 
     patron ending on or after the date on which the patron 
     receives notice from the cooperative of the apportionment.

[[Page S3966]]

       ``(C) Special rules for decrease in credits for taxable 
     year.--If the amount of the credit of a cooperative 
     organization determined under subsection (a) for a taxable 
     year is less than the amount of such credit shown on the 
     return of the cooperative organization for such year, an 
     amount equal to the excess of--
       ``(i) such reduction, over
       ``(ii) the amount not apportioned to such patrons under 
     subparagraph (A) for the taxable year,
     shall be treated as an increase in tax imposed by this 
     chapter on the organization. Such increase shall not be 
     treated as tax imposed by this chapter for purposes of 
     determining the amount of any credit under this chapter.
       ``(D) Eligible cooperative defined.--For purposes of this 
     section, the term `eligible cooperative' means a cooperative 
     organization described in section 1381(a) which is owned more 
     than 50 percent by agricultural producers or by entities 
     owned by agricultural producers. For this purpose an entity 
     owned by an agricultural producer is one that is more than 50 
     percent owned by agricultural producers.
       ``(7) Increase in credit in energy communities.--In the 
     case of any qualified facility which is located in an energy 
     community (as defined in section 45(b)(11)(B)), for purposes 
     of determining the amount of the credit under subsection (a) 
     with respect to any electricity produced by the taxpayer at 
     such facility during the taxable year, the applicable amount 
     under paragraph (2) of such subsection shall be increased by 
     an amount equal to 10 percent of the amount otherwise in 
     effect under such paragraph (without application of 
     subparagraph (B)).
       ``(8) Credit reduced for tax-exempt bonds.--Rules similar 
     to the rules of section 45(b)(3) shall apply.
       ``(9) Wage requirements.--Rules similar to the rules of 
     section 45(b)(7) shall apply.
       ``(10) Apprenticeship requirements.--Rules similar to the 
     rules of section 45(b)(8) shall apply.
       ``(11) Domestic content bonus credit amount.--
       ``(A) In general.--In the case of any qualified facility 
     which satisfies the requirement under subparagraph (B)(i), 
     the amount of the credit determined under subsection (a) 
     shall be increased by an amount equal to 10 percent of the 
     amount so determined.
       ``(B) Requirement.--
       ``(i) In general.--The requirement described in this 
     subclause is satisfied with respect to any qualified facility 
     if the taxpayer certifies to the Secretary (at such time, and 
     in such form and manner, as the Secretary may prescribe) that 
     any steel, iron, or manufactured product which is a component 
     of such facility (upon completion of construction) was 
     produced in the United States (as determined under section 
     661 of title 49, Code of Federal Regulations).
       ``(ii) Steel and iron.--In the case of steel or iron, 
     clause (i) shall be applied in a manner consistent with 
     section 661.5 of title 49, Code of Federal Regulations.
       ``(iii) Manufactured product.--For purposes of clause (i), 
     the manufactured products which are components of a qualified 
     facility upon completion of construction shall be deemed to 
     have been produced in the United States if not less than the 
     adjusted percentage (as determined under subparagraph (C)) of 
     the total costs of all such manufactured products of such 
     facility are attributable to manufactured products (including 
     components) which are mined, produced, or manufactured in the 
     United States.
       ``(C) Adjusted percentage.--
       ``(i) In general.--Subject to subclause (ii), for purposes 
     of subparagraph (B)(iii), the adjusted percentage shall be--

       ``(I) in the case of a facility the construction of which 
     begins after December 31, 2024, and before January 1, 2026, 
     45 percent,
       ``(II) in the case of a facility the construction of which 
     begins after December 31, 2025, and before January 1, 2027, 
     50 percent, and
       ``(III) in the case of a facility the construction of which 
     begins after December 31, 2026, 55 percent.

       ``(ii) Offshore wind facility.--For purposes of 
     subparagraph (B)(iii), in the case of a qualified facility 
     which is an offshore wind facility, the adjusted percentage 
     shall be--

       ``(I) in the case of a facility the construction of which 
     begins after December 31, 2024, and before January 1, 2026, 
     27.5 percent,
       ``(II) in the case of a facility the construction of which 
     begins after December 31, 2025, and before January 1, 2027, 
     35 percent,
       ``(III) in the case of a facility the construction of which 
     begins after December 31, 2026, and before January 1, 2028, 
     45 percent, and
       ``(IV) in the case of a facility the construction of which 
     begins after December 31, 2027, 55 percent.

       ``(12) Phaseout for elective payment.--
       ``(A) In general.--In the case of a taxpayer making an 
     election under section 6417 with respect to a credit under 
     this section, the amount of such credit shall be replaced 
     with--
       ``(i) the value of such credit (determined without regard 
     to this paragraph), multiplied by
       ``(ii) the applicable percentage.
       ``(B) 100 percent applicable percentage for certain 
     qualified facilities.--In the case of any qualified 
     facility--
       ``(i) which satisfies the requirements under paragraph 
     (11)(B) with respect to the construction of such facility, or
       ``(ii) with a maximum net output of less than 1 megawatt 
     (as measured in alternating current),
     the applicable percentage shall be 100 percent.
       ``(C) Phased domestic content requirement.--Subject to 
     subparagraph (D), in the case of any qualified facility which 
     is not described in subparagraph (B), the applicable 
     percentage shall be--
       ``(i) if construction of such facility began in calendar 
     year 2025, 85 percent, and
       ``(ii) if construction of such facility began after 
     December 31, 2025, 0 percent.
       ``(D) Exception.--
       ``(i) In general.--For purposes of this paragraph, the 
     Secretary shall provide exceptions to the requirements under 
     this paragraph for the construction of qualified facilities 
     if--

       ``(I) the inclusion of steel, iron, or manufactured 
     products which are produced in the United States increases 
     the overall costs of construction of qualified facilities by 
     more than 25 percent, or
       ``(II) relevant steel, iron, or manufactured products are 
     not produced in the United States in sufficient and 
     reasonably available quantities or of a satisfactory quality.

       ``(ii) Applicable percentage.--In any case in which the 
     Secretary provides an exception pursuant to clause (i), the 
     applicable percentage shall be 100 percent.''.
       (b) Conforming Amendments.--
       (1) Section 38(b), as amended by the preceding provisions 
     of this Act, is amended--
       (A) in paragraph (37), by striking ``plus'' at the end,
       (B) in paragraph (38), by striking the period at the end 
     and inserting ``, plus'', and
       (C) by adding at the end the following new paragraph:
       ``(39) the clean electricity production credit determined 
     under section 45Y(a).''.
       (2) The table of sections for subpart D of part IV of 
     subchapter A of chapter 1, as amended by the preceding 
     provisions of this Act, is amended by adding at the end the 
     following new item:

``Sec. 45Y. Clean electricity production credit.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to facilities placed in service after December 
     31, 2024.

     SEC. 13702. CLEAN ELECTRICITY INVESTMENT CREDIT.

       (a) In General.--Subpart E of part IV of subchapter A of 
     chapter 1 is amended by inserting after section 48C the 
     following new section:

     ``SEC. 48D. CLEAN ELECTRICITY INVESTMENT CREDIT.

       ``(a) Investment Credit for Qualified Property.--
       ``(1) In general.--For purposes of section 46, the clean 
     electricity investment credit for any taxable year is an 
     amount equal to the applicable percentage of the qualified 
     investment for such taxable year with respect to--
       ``(A) any qualified facility, and
       ``(B) any energy storage technology.
       ``(2) Applicable percentage.--
       ``(A) Qualified facilities.--Subject to paragraph (3)--
       ``(i) Base rate.--In the case of any qualified facility 
     which is not described in subclause (I) or (II) of clause 
     (ii) and does not satisfy the requirements described in 
     subclause (III) of such clause, the applicable percentage 
     shall be 6 percent.
       ``(ii) Alternative rate.--In the case of any qualified 
     facility--

       ``(I) with a maximum net output of less than 1 megawatt (as 
     measured in alternating current),
       ``(II) the construction of which begins prior to the date 
     that is 60 days after the Secretary publishes guidance with 
     respect to the requirements of paragraphs (3) and (4) of 
     subsection (d), or
       ``(III) which--

       ``(aa) satisfies the requirements of subsection (d)(3), and
       ``(bb) with respect to the construction of such facility, 
     satisfies the requirements of subsection (d)(4),
     the applicable percentage shall be 30 percent.
       ``(B) Energy storage technology.--Subject to paragraph 
     (3)--
       ``(i) Base rate.--In the case of any energy storage 
     technology which is not described in subclause (I) or (II) of 
     clause (ii) and does not satisfy the requirements described 
     in subclause (III) of such clause, the applicable percentage 
     shall be 6 percent.
       ``(ii) Alternative rate.--In the case of any energy storage 
     technology--

       ``(I) with a capacity of less than 1 megawatt,
       ``(II) the construction of which begins prior to the date 
     that is 60 days after the Secretary publishes guidance with 
     respect to the requirements of paragraphs (3) and (4) of 
     subsection (d), or
       ``(III) which--

       ``(aa) satisfies the requirements of subsection (d)(3), and
       ``(bb) with respect to the construction of such property, 
     satisfies the requirements of subsection (d)(4),
     the applicable percentage shall be 30 percent.
       ``(3) Increase in credit rate in certain cases.--
       ``(A) Energy communities.--
       ``(i) In general.--In the case of any qualified investment 
     with respect to a qualified facility or with respect to 
     energy storage technology which is placed in service within 
     an energy community (as defined in section 45(b)(11)(B)), for 
     purposes applying paragraph

[[Page S3967]]

     (2) with respect to such property or investment, the 
     applicable percentage shall be increased by the applicable 
     credit rate increase.
       ``(ii) Applicable credit rate increase.--For purposes of 
     clause (i), the applicable credit rate increase shall be an 
     amount equal to--

       ``(I) in the case of any qualified investment with respect 
     to a qualified facility described in paragraph (2)(A)(i) or 
     with respect to energy storage technology described in 
     paragraph (2)(B)(i), 2 percentage points, and
       ``(II) in the case of any qualified investment with respect 
     to a qualified facility described in paragraph (2)(A)(ii) or 
     with respect to energy storage technology described in 
     paragraph (2)(B)(ii), 10 percentage points.

       ``(B) Domestic content.--Rules similar to the rules of 
     section 48(a)(12) shall apply.
       ``(b) Qualified Investment With Respect to a Qualified 
     Facility.--
       ``(1) In general.--For purposes of subsection (a), the 
     qualified investment with respect to any qualified facility 
     for any taxable year is the sum of--
       ``(A) the basis of any qualified property placed in service 
     by the taxpayer during such taxable year which is part of a 
     qualified facility, plus
       ``(B) the amount of any expenditures which are--
       ``(i) paid or incurred by the taxpayer for qualified 
     interconnection property--

       ``(I) in connection with a qualified facility which has a 
     maximum net output of not greater than 5 megawatts (as 
     measured in alternating current), and
       ``(II) placed in service during the taxable year of the 
     taxpayer, and

       ``(ii) properly chargeable to capital account of the 
     taxpayer.
       ``(2) Qualified property.--For purposes of this section, 
     the term `qualified property' means property--
       ``(A) which is--
       ``(i) tangible personal property, or
       ``(ii) other tangible property (not including a building or 
     its structural components), but only if such property is used 
     as an integral part of the qualified facility,
       ``(B) with respect to which depreciation (or amortization 
     in lieu of depreciation) is allowable, and
       ``(C)(i) the construction, reconstruction, or erection of 
     which is completed by the taxpayer, or
       ``(ii) which is acquired by the taxpayer if the original 
     use of such property commences with the taxpayer.
       ``(3) Qualified facility.--
       ``(A) In general.--For purposes of this section, the term 
     `qualified facility' means a facility--
       ``(i) which is used for the generation of electricity,
       ``(ii) which is placed in service after December 31, 2024, 
     and
       ``(iii) for which the anticipated greenhouse gas emissions 
     rate (as determined under subparagraph (B)(ii)) is not 
     greater than zero.
       ``(B) Additional rules.--
       ``(i) Expansion of facility; incremental production.--Rules 
     similar to the rules of section 45Y(b)(1)(C) shall apply for 
     purposes of this paragraph.
       ``(ii) Greenhouse gas emissions rate.--Rules similar to the 
     rules of section 45Y(b)(2) shall apply for purposes of this 
     paragraph.
       ``(C) Exclusion.--The term `qualified facility' shall not 
     include any facility for which--
       ``(i) a renewable electricity production credit determined 
     under section 45,
       ``(ii) an advanced nuclear power facility production credit 
     determined under section 45J,
       ``(iii) a carbon oxide sequestration credit determined 
     under section 45Q,
       ``(iv) a zero-emission nuclear power production credit 
     determined under section 45U,
       ``(v) a clean electricity production credit determined 
     under section 45Y,
       ``(vi) an energy credit determined under section 48, or
       ``(vii) a qualifying advanced coal project credit under 
     section 48A,
     is allowed under section 38 for the taxable year or any prior 
     taxable year.
       ``(4) Qualified interconnection property.--For purposes of 
     this paragraph, the term `qualified interconnection property' 
     has the meaning given such term in section 48(a)(8)(B).
       ``(5) Coordination with rehabilitation credit.--The 
     qualified investment with respect to any qualified facility 
     for any taxable year shall not include that portion of the 
     basis of any property which is attributable to qualified 
     rehabilitation expenditures (as defined in section 47(c)(2)).
       ``(6) Definitions.--For purposes of this subsection, the 
     terms `CO2e per KWh' and `greenhouse gas emissions rate' have 
     the same meaning given such terms under section 45Y.
       ``(c) Qualified Investment With Respect to Energy Storage 
     Technology.--
       ``(1) Qualified investment.--For purposes of subsection 
     (a), the qualified investment with respect to energy storage 
     technology for any taxable year is the basis of any energy 
     storage technology placed in service by the taxpayer during 
     such taxable year.
       ``(2) Energy storage technology.--For purposes of this 
     section, the term `energy storage technology' has the meaning 
     given such term in section 48(c)(6) (except that subparagraph 
     (D) of such section shall not apply).
       ``(d) Special Rules.--
       ``(1) Certain progress expenditure rules made applicable.--
     Rules similar to the rules of subsections (c)(4) and (d) of 
     section 46 (as in effect on the day before the date of the 
     enactment of the Revenue Reconciliation Act of 1990) shall 
     apply for purposes of subsection (a).
       ``(2) Special rule for property financed by subsidized 
     energy financing or private activity bonds.--Rules similar to 
     the rules of section 45(b)(3) shall apply.
       ``(3) Prevailing wage requirements.--Rules similar to the 
     rules of section 48(a)(10) shall apply.
       ``(4) Apprenticeship requirements.--Rules similar to the 
     rules of section 45(b)(8) shall apply.
       ``(5) Domestic content requirement for elective payment.--
     In the case of a taxpayer making an election under section 
     6417 with respect to a credit under this section, rules 
     similar to the rules of section 45(b)(10) shall apply.
       ``(e) Credit Phase-Out.--
       ``(1) In general.--The amount of the clean electricity 
     investment credit under subsection (a) for any qualified 
     investment with respect to any qualified facility or energy 
     storage technology the construction of which begins during a 
     calendar year described in paragraph (2) shall be equal to 
     the product of--
       ``(A) the amount of the credit determined under subsection 
     (a) without regard to this subsection, multiplied by
       ``(B) the phase-out percentage under paragraph (2).
       ``(2) Phase-out percentage.--The phase-out percentage under 
     this paragraph is equal to--
       ``(A) for any qualified investment with respect to any 
     qualified facility or energy storage technology the 
     construction of which begins during the first calendar year 
     following the applicable year, 100 percent,
       ``(B) for any qualified investment with respect to any 
     qualified facility or energy storage technology the 
     construction of which begins during the second calendar year 
     following the applicable year, 75 percent,
       ``(C) for any qualified investment with respect to any 
     qualified facility or energy storage technology the 
     construction of which begins during the third calendar year 
     following the applicable year, 50 percent, and
       ``(D) for any qualified investment with respect to any 
     qualified facility or energy storage technology the 
     construction of which begins during any calendar year 
     subsequent to the calendar year described in subparagraph 
     (C), 0 percent.
       ``(3) Applicable year.--For purposes of this subsection, 
     the term `applicable year' has the same meaning given such 
     term in section 45Y(d)(3).
       ``(f) Greenhouse Gas.--In this section, the term 
     `greenhouse gas' has the same meaning given such term under 
     section 45Y(e)(2).
       ``(g) Recapture of Credit.--For purposes of section 50, if 
     the Secretary determines that the greenhouse gas emissions 
     rate for a qualified facility is greater than 10 grams of 
     CO2e per KWh, any property for which a credit was 
     allowed under this section with respect to such facility 
     shall cease to be investment credit property in the taxable 
     year in which the determination is made.
       ``(h) Special Rules for Certain Facilities Placed in 
     Service in Connection With Low-income Communities.--
       ``(1) In general.--In the case of any applicable facility 
     with respect to which the Secretary makes an allocation of 
     environmental justice capacity limitation under paragraph 
     (4)--
       ``(A) the applicable percentage otherwise determined under 
     subsection (a)(2) with respect to any eligible property which 
     is part of such facility shall be increased by--
       ``(i) in the case of a facility described in subclause (I) 
     of paragraph (2)(A)(iii) and not described in subclause (II) 
     of such paragraph, 10 percentage points, and
       ``(ii) in the case of a facility described in subclause 
     (II) of paragraph (2)(A)(iii), 20 percentage points, and
       ``(B) the increase in the credit determined under 
     subsection (a) by reason of this subsection for any taxable 
     year with respect to all property which is part of such 
     facility shall not exceed the amount which bears the same 
     ratio to the amount of such increase (determined without 
     regard to this subparagraph) as--
       ``(i) the environmental justice capacity limitation 
     allocated to such facility, bears to
       ``(ii) the total megawatt nameplate capacity of such 
     facility, as measured in direct current.
       ``(2) Applicable facility.--For purposes of this 
     subsection--
       ``(A) In general.--The term `applicable facility' means any 
     qualified facility--
       ``(i) which is not described in section 45Y(b)(2)(B),
       ``(ii) which has a maximum net output of less than 5 
     megawatts (as measured in alternating current), and
       ``(iii) which--

       ``(I) is located in a low-income community (as defined in 
     section 45D(e)) or on Indian land (as defined in section 
     2601(2) of the Energy Policy Act of 1992 (25 U.S.C. 
     3501(2))), or
       ``(II) is part of a qualified low-income residential 
     building project or a qualified low-income economic benefit 
     project.

       ``(B) Qualified low-income residential building project.--A 
     facility shall be treated as part of a qualified low-income 
     residential building project if--
       ``(i) such facility is installed on a residential rental 
     building which participates in a

[[Page S3968]]

     covered housing program (as defined in section 41411(a) of 
     the Violence Against Women Act of 1994 (34 U.S.C. 
     12491(a)(3)), a housing assistance program administered by 
     the Department of Agriculture under title V of the Housing 
     Act of 1949, a housing program administered by a tribally 
     designated housing entity (as defined in section 4(22) of the 
     Native American Housing Assistance and Self-Determination Act 
     of 1996 (25 U.S.C. 4103(22))) or such other affordable 
     housing programs as the Secretary may provide, and
       ``(ii) the financial benefits of the electricity produced 
     by such facility are allocated equitably among the occupants 
     of the dwelling units of such building.
       ``(C) Qualified low-income economic benefit project.--A 
     facility shall be treated as part of a qualified low-income 
     economic benefit project if at least 50 percent of the 
     financial benefits of the electricity produced by such 
     facility are provided to households with income of--
       ``(i) less than 200 percent of the poverty line (as defined 
     in section 36B(d)(3)(A)) applicable to a family of the size 
     involved, or
       ``(ii) less than 80 percent of area median gross income (as 
     determined under section 142(d)(2)(B)).
       ``(D) Financial benefit.--For purposes of subparagraphs (B) 
     and (C), electricity acquired at a below-market rate shall 
     not fail to be taken into account as a financial benefit.
       ``(3) Eligible property.--For purposes of this subsection, 
     the term `eligible property' means a qualified investment 
     with respect to any applicable facility.
       ``(4) Allocations.--
       ``(A) In general.--Not later than January 1, 2025, the 
     Secretary shall establish a program to allocate amounts of 
     environmental justice capacity limitation to applicable 
     facilities. In establishing such program and to carry out the 
     purposes of this subsection, the Secretary shall provide 
     procedures to allow for an efficient allocation process, 
     including, when determined appropriate, consideration of 
     multiple projects in a single application if such projects 
     will be placed in service by a single taxpayer.
       ``(B) Limitation.--The amount of environmental justice 
     capacity limitation allocated by the Secretary under 
     subparagraph (A) during any calendar year shall not exceed 
     the annual capacity limitation with respect to such year.
       ``(C) Annual capacity limitation.--For purposes of this 
     paragraph, the term `annual capacity limitation' means 1.8 
     gigawatts of direct current capacity for each calendar year 
     during the period beginning on January 1, 2025, and ending on 
     December 31 of the applicable year (as defined in section 
     45Y(d)(3)), and zero thereafter.
       ``(D) Carryover of unused limitation.--
       ``(i) In general.--If the annual capacity limitation for 
     any calendar year exceeds the aggregate amount allocated for 
     such year under this paragraph, such limitation for the 
     succeeding calendar year shall be increased by the amount of 
     such excess. No amount may be carried under the preceding 
     sentence to any calendar year after the third calendar year 
     following the applicable year (as defined in section 
     45Y(d)(3)).
       ``(ii) Carryover from section 48 for calendar year 2025.--
     If the annual capacity limitation for calendar year 2024 
     under section 48(e)(4)(D) exceeds the aggregate amount 
     allocated for such year under such section, such excess 
     amount may be carried over and applied to the annual capacity 
     limitation under this subsection for calendar year 2025. The 
     annual capacity limitation for calendar year 2025 shall be 
     increased by the amount of such excess.
       ``(E) Placed in service deadline.--
       ``(i) In general.--Paragraph (1) shall not apply with 
     respect to any property which is placed in service after the 
     date that is 4 years after the date of the allocation with 
     respect to the facility of which such property is a part.
       ``(ii) Application of carryover.--Any amount of 
     environmental justice capacity limitation which expires under 
     clause (i) during any calendar year shall be taken into 
     account as an excess described in subparagraph (D)(i) (or as 
     an increase in such excess) for such calendar year, subject 
     to the limitation imposed by the last sentence of such 
     subparagraph.
       ``(5) Recapture.--The Secretary shall, by regulations or 
     other guidance, provide for recapturing the benefit of any 
     increase in the credit allowed under subsection (a) by reason 
     of this subsection with respect to any property which ceases 
     to be property eligible for such increase (but which does not 
     cease to be investment credit property within the meaning of 
     section 50(a)). The period and percentage of such recapture 
     shall be determined under rules similar to the rules of 
     section 50(a). To the extent provided by the Secretary, such 
     recapture may not apply with respect to any property if, 
     within 12 months after the date the taxpayer becomes aware 
     (or reasonably should have become aware) of such property 
     ceasing to be property eligible for such increase, the 
     eligibility of such property for such increase is restored. 
     The preceding sentence shall not apply more than once with 
     respect to any facility.
       ``(i) Guidance.--Not later than January 1, 2025, the 
     Secretary shall issue guidance regarding implementation of 
     this section.''.
       (b) Conforming Amendments.--
       (1) Paragraph (6) of section 46 is amended to read as 
     follows:
       ``(6) the clean electricity investment credit.''.
       (2) Section 49(a)(1)(C) is amended--
       (A) by striking ``and'' at the end of clause (iv),
       (B) by striking the period at the end of clause (v) and 
     inserting a comma, and
       (C) by adding at the end the following new clauses:
       ``(vi) the basis of any qualified property which is part of 
     a qualified facility under section 48D, and
       ``(vii) the basis of any energy storage technology under 
     section 48D.''.
       (3) Section 50(a)(2)(E) is amended by striking ``or 
     48C(b)(2)'' and inserting ``48C(b)(2), or 48D(e)''.
       (4) Section 50(c)(3) is amended by inserting ``or clean 
     electricity investment credit'' after ``In the case of any 
     energy credit''.
       (5) The table of sections for subpart E of part IV of 
     subchapter A of chapter 1 is amended by inserting after the 
     item relating to section 48C the following new item:

``48D. Clean electricity investment credit.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after December 31, 
     2024.

     SEC. 13703. COST RECOVERY FOR QUALIFIED FACILITIES, QUALIFIED 
                   PROPERTY, AND ENERGY STORAGE TECHNOLOGY.

       (a) In General.--Section 168(e)(3)(B) is amended--
       (1) in clause (vi)(III), by striking ``and'' at the end,
       (2) in clause (vii), by striking the period at the end and 
     inserting ``, and'', and
       (3) by inserting after clause (vii) the following:
       ``(viii) any qualified facility (as defined in section 
     45Y(b)(1)(A)), any qualified property (as defined in 
     subsection (b)(2) of section 48D) which is a qualified 
     investment (as defined in subsection (b)(1) of such section), 
     or any energy storage technology (as defined in subsection 
     (c)(2) of such section).''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to facilities and property placed in service 
     after December 31, 2024.

     SEC. 13704. CLEAN FUEL PRODUCTION CREDIT.

       (a) In General.--Subpart D of part IV of subchapter A of 
     chapter 1, as amended by the preceding provisions of this 
     Act, is amended by adding at the end the following new 
     section:

     ``SEC. 45Z. CLEAN FUEL PRODUCTION CREDIT.

       ``(a) Amount of Credit.--
       ``(1) In general.--For purposes of section 38, the clean 
     fuel production credit for any taxable year is an amount 
     equal to the product of--
       ``(A) the applicable amount per gallon (or gallon 
     equivalent) with respect to any transportation fuel which 
     is--
       ``(i) produced by the taxpayer at a qualified facility, and
       ``(ii) sold by the taxpayer in a manner described in 
     paragraph (4) during the taxable year, and
       ``(B) the emissions factor for such fuel (as determined 
     under subsection (b)).
       ``(2) Applicable amount.--
       ``(A) Base amount.--In the case of any transportation fuel 
     produced at a qualified facility which does not satisfy the 
     requirements described in subparagraph (B), the applicable 
     amount shall be 20 cents.
       ``(B) Alternative amount.--In the case of any 
     transportation fuel produced at a qualified facility which 
     satisfies the requirements under paragraphs (6) and (7) of 
     subsection (f), the applicable amount shall be $1.00.
       ``(3) Special rate for sustainable aviation fuel.--
       ``(A) In general.--In the case of a transportation fuel 
     which is sustainable aviation fuel, paragraph (2) shall be 
     applied--
       ``(i) in the case of fuel produced at a qualified facility 
     described in paragraph (2)(A), by substituting `35 cents' for 
     `20 cents', and
       ``(ii) in the case of fuel produced at a qualified facility 
     described in paragraph (2)(B), by substituting `$1.75' for 
     `$1.00'.
       ``(B) Sustainable aviation fuel.--For purposes of this 
     subparagraph (A), the term `sustainable aviation fuel' means 
     liquid fuel which is sold for use in an aircraft and which--
       ``(i) meets the requirements of--

       ``(I) ASTM International Standard D7566, or
       ``(II) the Fischer Tropsch provisions of ASTM International 
     Standard D1655, Annex A1, and

       ``(ii) is not derived from palm fatty acid distillates or 
     petroleum.
       ``(4) Sale.--For purposes of paragraph (1), the 
     transportation fuel is sold in a manner described in this 
     paragraph if such fuel is sold by the taxpayer to an 
     unrelated person--
       ``(A) for use by such person in the production of a fuel 
     mixture,
       ``(B) for use by such person in a trade or business, or
       ``(C) who sells such fuel at retail to another person and 
     places such fuel in the fuel tank of such other person.
       ``(5) Rounding.--If any amount determined under paragraph 
     (1) is not a multiple of 1 cent, such amount shall be rounded 
     to the nearest cent.
       ``(b) Emissions Factors.--
       ``(1) Emissions factor.--
       ``(A) Calculation.--
       ``(i) In general.--The emissions factor of a transportation 
     fuel shall be an amount equal to the quotient of--

       ``(I) an amount equal to--

       ``(aa) 50 kilograms of CO2e per mmBTU, minus

[[Page S3969]]

       ``(bb) the emissions rate for such fuel, divided by

       ``(II) 50 kilograms of CO2e per mmBTU.

       ``(B) Establishment of emissions rate.--
       ``(i) In general.--Subject to clauses (ii) and (iii), the 
     Secretary shall annually publish a table which sets forth the 
     emissions rate for similar types and categories of 
     transportation fuels based on the amount of lifecycle 
     greenhouse gas emissions (as described in section 
     211(o)(1)(H) of the Clean Air Act (42 U.S.C. 7545(o)(1)(H)), 
     as in effect on the date of the enactment of this section) 
     for such fuels, expressed as kilograms of CO2e per 
     mmBTU, which a taxpayer shall use for purposes of this 
     section.
       ``(ii) Non-aviation fuel.--In the case of any 
     transportation fuel which is not a sustainable aviation fuel, 
     the lifecycle greenhouse gas emissions of such fuel shall be 
     based on the most recent determinations under the Greenhouse 
     gases, Regulated Emissions, and Energy use in Transportation 
     model developed by Argonne National Laboratory, or a 
     successor model (as determined by the Secretary).
       ``(iii) Aviation fuel.--In the case of any transportation 
     fuel which is a sustainable aviation fuel, the lifecycle 
     greenhouse gas emissions of such fuel shall be determined in 
     accordance with--

       ``(I) the most recent Carbon Offsetting and Reduction 
     Scheme for International Aviation which has been adopted by 
     the International Civil Aviation Organization with the 
     agreement of the United States, or
       ``(II) any similar methodology which satisfies the criteria 
     under section 211(o)(1)(H) of the Clean Air Act (42 U.S.C. 
     7545(o)(1)(H)), as in effect on the date of enactment of this 
     section.

       ``(C) Rounding of emissions rate.--
       ``(i) In general.--Subject to clause (ii), the Secretary 
     may round the emissions rates under subparagraph (B) to the 
     nearest multiple of 5 kilograms of CO2e per mmBTU.
       ``(ii) Exception.--In the case of an emissions rate that is 
     between 2.5 kilograms of CO2e per mmBTU and -2.5 
     kilograms of CO2e per mmBTU, the Secretary may 
     round such rate to zero.
       ``(D) Provisional emissions rate.--In the case of any 
     transportation fuel for which an emissions rate has not been 
     established under subparagraph (B), a taxpayer producing such 
     fuel may file a petition with the Secretary for determination 
     of the emissions rate with respect to such fuel.
       ``(2) Rounding.--If any amount determined under paragraph 
     (1)(A) is not a multiple of 0.1, such amount shall be rounded 
     to the nearest multiple of 0.1.
       ``(c) Inflation Adjustment.--
       ``(1) In general.--In the case of calendar years beginning 
     after 2024, the 20 cent amount in subsection (a)(2)(A), the 
     $1.00 amount in subsection (a)(2)(B), the 35 cent amount in 
     subsection (a)(3)(A)(i), and the $1.75 amount in subsection 
     (a)(3)(A)(ii) shall each be adjusted by multiplying such 
     amount by the inflation adjustment factor for the calendar 
     year in which the sale of the transportation fuel occurs. If 
     any amount as increased under the preceding sentence is not a 
     multiple of 1 cent, such amount shall be rounded to the 
     nearest multiple of 1 cent.
       ``(2) Inflation adjustment factor.--For purposes of 
     paragraph (1), the inflation adjustment factor shall be the 
     inflation adjustment factor determined and published by the 
     Secretary pursuant to section 45Y(c), determined by 
     substituting `calendar year 2022' for `calendar year 1992' in 
     paragraph (3) thereof.
       ``(d) Definitions.--In this section:
       ``(1) mmBTU.--The term `mmBTU' means 1,000,000 British 
     thermal units.
       ``(2) CO2e.--The term `CO2e' means, 
     with respect to any greenhouse gas, the equivalent carbon 
     dioxide (as determined based on relative global warming 
     potential).
       ``(3) Greenhouse gas.--The term `greenhouse gas' has the 
     same meaning given that term under section 211(o)(1)(G) of 
     the Clean Air Act (42 U.S.C. 7545(o)(1)(G)), as in effect on 
     the date of the enactment of this section.
       ``(4) Qualified facility.--The term `qualified facility'--
       ``(A) means a facility used for the production of 
     transportation fuels, and
       ``(B) does not include any facility for which one of the 
     following credits is allowed under section 38 for the taxable 
     year:
       ``(i) The credit for production of clean hydrogen under 
     section 45V.
       ``(ii) The credit determined under section 46 to the extent 
     that such credit is attributable to the energy credit 
     determined under section 48 with respect to any specified 
     clean hydrogen production facility for which an election is 
     made under subsection (a)(16) of such section.
       ``(iii) The credit for carbon oxide sequestration under 
     section 45Q.
       ``(5) Transportation fuel.--
       ``(A) In general.--The term `transportation fuel' means a 
     fuel which--
       ``(i) is suitable for use as a fuel in a highway vehicle or 
     aircraft,
       ``(ii) has an emissions rate which is not greater than 50 
     kilograms of CO2e per mmBTU, and
       ``(iii) is not derived from coprocessing an applicable 
     material (or materials derived from an applicable material) 
     with a feedstock which is not biomass.
       ``(B) Definitions.--In this paragraph--
       ``(i) Applicable material.--The term `applicable material' 
     means--

       ``(I) monoglycerides, diglycerides, and triglycerides,
       ``(II) free fatty acids, and
       ``(III) fatty acid esters.

       ``(ii) Biomass.--The term `biomass' has the same meaning 
     given such term in section 45K(c)(3).
       ``(e) Guidance.--Not later than January 1, 2025, the 
     Secretary shall issue guidance regarding implementation of 
     this section, including calculation of emissions factors for 
     transportation fuel, the table described in subsection 
     (b)(1)(B)(i), and the determination of clean fuel production 
     credits under this section.
       ``(f) Special Rules.--
       ``(1) Only registered production in the united states taken 
     into account.--
       ``(A) In general.--No clean fuel production credit shall be 
     determined under subsection (a) with respect to any 
     transportation fuel unless--
       ``(i) the taxpayer--

       ``(I) is registered as a producer of clean fuel under 
     section 4101 at the time of production, and
       ``(II) in the case of any transportation fuel which is a 
     sustainable aviation fuel, provides--

       ``(aa) certification (in such form and manner as the 
     Secretary shall prescribe) from an unrelated party 
     demonstrating compliance with--
       ``(AA) any general requirements, supply chain traceability 
     requirements, and information transmission requirements 
     established under the Carbon Offsetting and Reduction Scheme 
     for International Aviation described in subclause (I) of 
     subsection (b)(1)(B)(iii), or
       ``(BB) in the case of any methodology described in 
     subclause (II) of such subsection, requirements similar to 
     the requirements described in subitem (AA), and
       ``(bb) such other information with respect to such fuel as 
     the Secretary may require for purposes of carrying out this 
     section, and
       ``(ii) such fuel is produced in the United States.
       ``(B) United states.--For purposes of this paragraph, the 
     term `United States' includes any possession of the United 
     States.
       ``(2) Production attributable to the taxpayer.--In the case 
     of a facility in which more than 1 person has an ownership 
     interest, except to the extent provided in regulations 
     prescribed by the Secretary, production from the facility 
     shall be allocated among such persons in proportion to their 
     respective ownership interests in the gross sales from such 
     facility.
       ``(3) Related persons.--Persons shall be treated as related 
     to each other if such persons would be treated as a single 
     employer under the regulations prescribed under section 
     52(b). In the case of a corporation which is a member of an 
     affiliated group of corporations filing a consolidated 
     return, such corporation shall be treated as selling fuel to 
     an unrelated person if such fuel is sold to such a person by 
     another member of such group.
       ``(4) Pass-thru in the case of estates and trusts.--Under 
     regulations prescribed by the Secretary, rules similar to the 
     rules of subsection (d) of section 52 shall apply.
       ``(5) Allocation of credit to patrons of agricultural 
     cooperative.--Rules similar to the rules of section 45Y(g)(6) 
     shall apply.
       ``(6) Prevailing wage requirements.--
       ``(A) In general.--Subject to subparagraph (B), rules 
     similar to the rules of section 45(b)(7) shall apply.
       ``(B) Special rule for facilities placed in service before 
     january 1, 2025.--For purposes of subparagraph (A), in the 
     case of any qualified facility placed in service before 
     January 1, 2025--
       ``(i) clause (i) of section 45(b)(7)(A) shall not apply, 
     and
       ``(ii) clause (ii) of such section shall be applied by 
     substituting `with respect to any taxable year beginning 
     after December 31, 2024, for which the credit is allowed 
     under this section' for `with respect to any taxable year, 
     for any portion of such taxable year which is within the 
     period described in subsection (a)(2)(A)(ii)'.
       ``(7) Apprenticeship requirements.--Rules similar to the 
     rules of section 45(b)(8) shall apply.
       ``(g) Termination.--This section shall not apply to 
     transportation fuel sold after December 31, 2027.''.
       (b) Conforming Amendments.--
       (1) Section 25C(d)(3), as amended by the preceding 
     provisions of this Act, is amended--
       (A) in subparagraph (A), by striking ``and'' at the end,
       (B) in subparagraph (B), by striking the period at the end 
     and inserting ``, and'', and
       (C) by adding at the end the following new subparagraph:
       ``(C) transportation fuel (as defined in section 
     45Z(d)(5)).''.
       (2) Section 30C(c)(1)(B), as amended by the preceding 
     provisions of this Act, is amended by adding at the end the 
     following new clause:
       ``(iv) Any transportation fuel (as defined in section 
     45Z(d)(5)).''.
       (3) Section 38(b), as amended by the preceding provisions 
     of this Act, is amended--
       (A) in paragraph (38), by striking ``plus'' at the end,
       (B) in paragraph (39), by striking the period at the end 
     and inserting ``, plus'', and
       (C) by adding at the end the following new paragraph:
       ``(40) the clean fuel production credit determined under 
     section 45Z(a).''.

[[Page S3970]]

       (4) The table of sections for subpart D of part IV of 
     subchapter A of chapter 1, as amended by the preceding 
     provisions of this Act, is amended by adding at the end the 
     following new item:

``Sec. 45Z. Clean fuel production credit.''.
       (5) Section 4101(a)(1), as amended by the preceding 
     provisions of this Act, is amended by inserting ``every 
     person producing a fuel eligible for the clean fuel 
     production credit (pursuant to section 45Z),'' after 
     ``section 6426(k)(3)),''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to transportation fuel produced after December 
     31, 2024.

             PART 8--CREDIT MONETIZATION AND APPROPRIATIONS

     SEC. 13801. ELECTIVE PAYMENT FOR ENERGY PROPERTY AND 
                   ELECTRICITY PRODUCED FROM CERTAIN RENEWABLE 
                   RESOURCES, ETC.

       (a) In General.--Subchapter B of chapter 65 is amended by 
     inserting after section 6416 the following new section:

     ``SEC. 6417. ELECTIVE PAYMENT OF APPLICABLE CREDITS.

       ``(a) In General.--In the case of an applicable entity 
     making an election (at such time and in such manner as the 
     Secretary may provide) under this section with respect to any 
     applicable credit determined with respect to such entity, 
     such entity shall be treated as making a payment against the 
     tax imposed by subtitle A (for the taxable year with respect 
     to which such credit was determined) equal to the amount of 
     such credit.
       ``(b) Applicable Credit.--The term `applicable credit' 
     means each of the following:
       ``(1) So much of the credit for alternative fuel vehicle 
     refueling property allowed under section 30C which, pursuant 
     to subsection (d)(1) of such section, is treated as a credit 
     listed in section 38(b).
       ``(2) So much of the renewable electricity production 
     credit determined under section 45(a) as is attributable to 
     qualified facilities which are originally placed in service 
     after December 31, 2022.
       ``(3) So much of the credit for carbon oxide sequestration 
     determined under section 45Q(a) as is attributable to carbon 
     capture equipment which is originally placed in service after 
     December 31, 2022.
       ``(4) The zero-emission nuclear power production credit 
     determined under section 45U(a).
       ``(5) So much of the credit for production of clean 
     hydrogen determined under section 45V(a) as is attributable 
     to qualified clean hydrogen production facilities which are 
     originally placed in service after December 31, 2012.
       ``(6) In the case of a tax-exempt entity described in 
     clause (i), (ii), or (iv) of section 168(h)(2)(A), the credit 
     for qualified commercial vehicles determined under section 
     45W by reason of subsection (d)(3) thereof.
       ``(7) The credit for advanced manufacturing production 
     under section 45X(a).
       ``(8) The clean electricity production credit determined 
     under section 45Y(a).
       ``(9) The clean fuel production credit determined under 
     section 45Z(a).
       ``(10) The energy credit determined under section 48.
       ``(11) The qualifying advanced energy project credit 
     determined under section 48C.
       ``(12) The clean electricity investment credit determined 
     under section 48D.
       ``(c) Special Rules.--For purposes of this section--
       ``(1) Applicable entity.--
       ``(A) In general.--The term `applicable entity' means any 
     organization exempt from the tax imposed by subtitle A, any 
     State or local government (or political subdivision thereof), 
     the Tennessee Valley Authority, an Indian tribal government 
     (as defined in section 30D(g)(9)), or any Alaska Native 
     Corporation (as defined in section 3 of the Alaska Native 
     Claims Settlement Act (43 U.S.C. 1602(m)).
       ``(B) Election with respect to credit for production of 
     clean hydrogen.--If a taxpayer other than an entity described 
     in subparagraph (A) makes an election under this subparagraph 
     with respect to any taxable year in which such taxpayer has 
     placed in service a qualified clean hydrogen production 
     facility (as defined in section 45V(c)(3)), such taxpayer 
     shall be treated as an applicable entity for purposes of this 
     section for such taxable year, but only with respect to the 
     credit described in subsection (b)(5).
       ``(C) Election with respect to credit for carbon oxide 
     sequestration.--If a taxpayer other than an entity described 
     in subparagraph (A) makes an election under this subparagraph 
     with respect to any taxable year in which such taxpayer has, 
     after December 31, 2022, placed in service carbon capture 
     equipment at a qualified facility (as defined in section 
     45Q(d)), such taxpayer shall be treated as an applicable 
     entity for purposes of this section for such taxable year, 
     but only with respect to the credit described in subsection 
     (b)(3).
       ``(D) Election with respect to advanced manufacturing 
     production credit.--
       ``(i) In general.--If a taxpayer other than an entity 
     described in subparagraph (A) makes an election under this 
     subparagraph with respect to any taxable year in which such 
     taxpayer has, after December 31, 2022, produced eligible 
     components (as defined in section 45X(c)(1)), such taxpayer 
     shall be treated as an applicable entity for purposes of this 
     section for such taxable year, but only with respect to the 
     credit described in subsection (b)(7).
       ``(ii) Limitation.--

       ``(I) In general.--Except as provided in subclause (II), if 
     a taxpayer makes an election under this subparagraph with 
     respect to any taxable year, such taxpayer shall be treated 
     as having made such election for each of the 4 succeeding 
     taxable years ending before January 1, 2033.
       ``(II) Exception.--A taxpayer may elect to revoke the 
     application of the election made under this subparagraph to 
     any taxable year described in subclause (I). Any such 
     election, if made, shall apply to the applicable year 
     specified in such election and each subsequent taxable year 
     within the period described in subclause (I). Any election 
     under this subclause may not be subsequently revoked.

       ``(E) Other rules.--
       ``(i) In general.--An election made under subparagraph (B), 
     (C), or (D) shall be made at such time and in such manner as 
     the Secretary may provide.
       ``(ii) Limitation.--No election may be made under 
     subparagraph (B), (C), or (D) with respect to any taxable 
     year beginning after December 31, 2032.
       ``(2) Application.--In the case of any applicable entity 
     which makes the election described in subsection (a), any 
     applicable credit shall be determined--
       ``(A) without regard to paragraphs (3) and (4)(A)(i) of 
     section 50(b), and
       ``(B) by treating any property with respect to which such 
     credit is determined as used in a trade or business of the 
     applicable entity.
       ``(3) Elections.--
       ``(A) In general.--
       ``(i) Due date.--Any election under subsection (a) shall be 
     made not later than--

       ``(I) in the case of any government, or political 
     subdivision, described in paragraph (1) and for which no 
     return is required under section 6011 or 6033(a), such date 
     as is determined appropriate by the Secretary, or
       ``(II) in any other case, the due date (including 
     extensions of time) for the return of tax for the taxable 
     year for which the election is made, but in no event earlier 
     than 180 days after the date of the enactment of this 
     section.

       ``(ii) Additional rules.--Any election under subsection 
     (a), once made, shall be irrevocable and shall apply (except 
     as otherwise provided in this paragraph) with respect to any 
     credit for the taxable year for which the election is made.
       ``(B) Renewable electricity production credit.--In the case 
     of the credit described in subsection (b)(2), any election 
     under subsection (a) shall--
       ``(i) apply separately with respect to each qualified 
     facility,
       ``(ii) be made for the taxable year in which such qualified 
     facility is originally placed in service, and
       ``(iii) shall apply to such taxable year and to any 
     subsequent taxable year which is within the period described 
     in subsection (a)(2)(A)(ii) of section 45 with respect to 
     such qualified facility.
       ``(C) Credit for carbon oxide sequestration.--
       ``(i) In general.--In the case of the credit described in 
     subsection (b)(3), any election under subsection (a) shall--

       ``(I) apply separately with respect to the carbon capture 
     equipment originally placed in service by the applicable 
     entity during a taxable year, and
       ``(II)(aa) in the case of a taxpayer who makes an election 
     described in paragraph (1)(C), apply to the taxable year in 
     which such equipment is placed in service and the 4 
     subsequent taxable years with respect to such equipment which 
     end before January 1, 2033, and
       ``(bb) in any other case, apply to such taxable year and to 
     any subsequent taxable year which is within the period 
     described in paragraph (3)(A) or (4)(A) of section 45Q(a) 
     with respect to such equipment.

       ``(ii) Prohibition on transfer.--For any taxable year 
     described in clause (i)(II)(aa) with respect to carbon 
     capture equipment, no election may be made by the taxpayer 
     under section 6418(a) for such taxable year with respect to 
     such equipment for purposes of the credit described in 
     subsection (b)(3).
       ``(iii) Revocation of election.--In the case of a taxpayer 
     who makes an election described in paragraph (1)(C) with 
     respect to carbon capture equipment, such taxpayer may, at 
     any time during the period described in clause (i)(II)(aa), 
     revoke the application of such election with respect to such 
     equipment for any subsequent taxable years during such 
     period. Any such election, if made, shall apply to the 
     applicable year specified in such election and each 
     subsequent taxable year within the period described in clause 
     (i)(II)(aa). Any election under this subclause may not be 
     subsequently revoked.
       ``(D) Credit for production of clean hydrogen.--
       ``(i) In general.--In the case of the credit described in 
     subsection (b)(5), any election under subsection (a) shall--

       ``(I) apply separately with respect to each qualified clean 
     hydrogen production facility,
       ``(II) be made for the taxable year in which such facility 
     is placed in service (or within the 1-year period subsequent 
     to the date of enactment of this section in the case of 
     facilities placed in service before December 31, 2022), and
       ``(III)(aa) in the case of a taxpayer who makes an election 
     described in paragraph (1)(B), apply to such taxable year and 
     the 4 subsequent taxable years with respect to such facility 
     which end before January 1, 2033, and

[[Page S3971]]

       ``(bb) in any other case, apply to such taxable year and 
     all subsequent taxable years with respect to such facility.

       ``(ii) Prohibition on transfer.--For any taxable year 
     described in clause (i)(III)(aa) with respect to a qualified 
     clean hydrogen production facility, no election may be made 
     by the taxpayer under section 6418(a) for such taxable year 
     with respect to such facility for purposes of the credit 
     described in subsection (b)(5).
       ``(iii) Revocation of election.--In the case of a taxpayer 
     who makes an election described in paragraph (1)(B) with 
     respect to a qualified clean hydrogen production facility, 
     such taxpayer may, at any time during the period described in 
     clause (i)(III)(aa), revoke the application of such election 
     with respect to such facility for any subsequent taxable 
     years during such period. Any such election, if made, shall 
     apply to the applicable year specified in such election and 
     each subsequent taxable year within the period described in 
     clause (i)(II)(aa). Any election under this subclause may not 
     be subsequently revoked.
       ``(E) Clean electricity production credit.--In the case of 
     the credit described in subsection (b)(8), any election under 
     subsection (a) shall--
       ``(i) apply separately with respect to each qualified 
     facility,
       ``(ii) be made for the taxable year in which such facility 
     is placed in service, and
       ``(iii) shall apply to such taxable year and to any 
     subsequent taxable year which is within the period described 
     in subsection (b)(1)(B) of section 45Y with respect to such 
     facility.
       ``(4) Timing.--The payment described in subsection (a) 
     shall be treated as made on--
       ``(A) in the case of any government, or political 
     subdivision, described in paragraph (1) and for which no 
     return is required under section 6011 or 6033(a), the later 
     of the date that a return would be due under section 6033(a) 
     if such government or subdivision were described in that 
     section or the date on which such government or subdivision 
     submits a claim for credit or refund (at such time and in 
     such manner as the Secretary shall provide), and
       ``(B) in any other case, the later of the due date 
     (determined without regard to extensions) of the return of 
     tax for the taxable year or the date on which such return is 
     filed.
       ``(5) Additional information.--As a condition of, and prior 
     to, any amount being treated as a payment which is made by an 
     applicable entity under subsection (a), the Secretary may 
     require such information or registration as the Secretary 
     deems necessary or appropriate for purposes of preventing 
     duplication, fraud, improper payments, or excessive payments 
     under this section.
       ``(6) Excessive payment.--
       ``(A) In general.--In the case of any amount treated as a 
     payment which is made by the applicable entity under 
     subsection (a) which the Secretary determines constitutes an 
     excessive payment, the tax imposed on such entity by chapter 
     1 (regardless of whether such entity would otherwise be 
     subject to tax under such chapter) for the taxable year in 
     which such determination is made shall be increased by an 
     amount equal to the sum of--
       ``(i) the amount of such excessive payment, plus
       ``(ii) an amount equal to 20 percent of such excessive 
     payment.
       ``(B) Reasonable cause.--Subparagraph (A) shall not apply 
     if the applicable entity demonstrates to the satisfaction of 
     the Secretary that the excessive payment resulted from 
     reasonable cause.
       ``(C) Excessive payment defined.--For purposes of this 
     paragraph, the term `excessive payment' means, with respect 
     to a facility or property for which an election is made under 
     this section for any taxable year, an amount equal to the 
     excess of--
       ``(i) the amount treated as a payment which is made by the 
     applicable entity under subsection (a) with respect to such 
     facility or property for such taxable year, over
       ``(ii) the amount of the credit which, without application 
     of this section, would be otherwise allowable (as determined 
     pursuant to paragraph (2) and without regard to section 
     38(c)) under this title with respect to such facility or 
     property for such taxable year.
       ``(d) Denial of Double Benefit.--In the case of an 
     applicable entity making an election under this section with 
     respect to an applicable credit, such credit shall be reduced 
     to zero and shall, for any other purposes under this title, 
     be deemed to have been allowed to such entity for such 
     taxable year.
       ``(e) Mirror Code Possessions.--In the case of any 
     possession of the United States with a mirror code tax system 
     (as defined in section 24(k)), this section shall not be 
     treated as part of the income tax laws of the United States 
     for purposes of determining the income tax law of such 
     possession unless such possession elects to have this section 
     be so treated.
       ``(f) Basis Reduction and Recapture.--Except as otherwise 
     provided in subsection (c)(2)(A), rules similar to the rules 
     of section 50 shall apply for purposes of this section.
       ``(g) Regulations.--The Secretary shall issue such 
     regulations or other guidance as may be necessary or 
     appropriate to carry out the purposes of this section, 
     including guidance to ensure that the amount of the payment 
     or deemed payment made under this section is commensurate 
     with the amount of the credit that would be otherwise 
     allowable (determined without regard to section 38(c)).''.
       (b) Transfer of Certain Credits.--Subchapter B of chapter 
     65, as amended by subsection (a), is amended by inserting 
     after section 6417 the following new section:

     ``SEC. 6418. TRANSFER OF CERTAIN CREDITS.

       ``(a) In General.--In the case of an eligible taxpayer 
     which elects to transfer all (or any portion specified in the 
     election) of an eligible credit determined with respect to 
     such taxpayer for any taxable year to a taxpayer (referred to 
     in this section as the `transferee taxpayer') which is not 
     related (within the meaning of section 267(b) or 707(b)(1)) 
     to the eligible taxpayer, the transferee taxpayer specified 
     in such election (and not the eligible taxpayer) shall be 
     treated as the taxpayer for purposes of this title with 
     respect to such credit (or such portion thereof).
       ``(b) Treatment of Payments Made in Connection With 
     Transfer.--With respect to any amount paid by a transferee 
     taxpayer to an eligible taxpayer as consideration for a 
     transfer described in subsection (a), such consideration--
       ``(1) shall be required to be paid in cash,
       ``(2) shall not be includible in gross income of the 
     eligible taxpayer, and
       ``(3) with respect to the transferee taxpayer, shall not be 
     deductible under this title.
       ``(c) Application to Partnerships and S Corporations.--
       ``(1) In general.--In the case of any eligible credit 
     determined with respect to any facility or property held 
     directly by a partnership or S corporation, if such 
     partnership or S corporation makes an election under 
     subsection (a) (in such manner as the Secretary may provide) 
     with respect to such credit--
       ``(A) any amount received as consideration for a transfer 
     described in such subsection shall be treated as tax exempt 
     income for purposes of sections 705 and 1366, and
       ``(B) a partner's distributive share of such tax exempt 
     income shall be based on such partner's distributive share of 
     the otherwise eligible credit for each taxable year.
       ``(2) Coordination with application at partner or 
     shareholder level.--In the case of any facility or property 
     held directly by a partnership or S corporation, no election 
     by any partner or shareholder shall be allowed under 
     subsection (a) with respect to any eligible credit determined 
     with respect to such facility or property.
       ``(d) Taxable Year in Which Credit Taken Into Account.--In 
     the case of any credit (or portion thereof) with respect to 
     which an election is made under subsection (a), such credit 
     shall be taken into account in the first taxable year of the 
     transferee taxpayer ending with, or after, the taxable year 
     of the eligible taxpayer with respect to which the credit was 
     determined.
       ``(e) Limitations on Election.--
       ``(1) Time for election.--An election under subsection (a) 
     to transfer any portion of an eligible credit shall be made 
     not later than the due date (including extensions of time) 
     for the return of tax for the taxable year for which the 
     credit is determined, but in no event earlier than 180 days 
     after the date of the enactment of this section. Any such 
     election, once made, shall be irrevocable.
       ``(2) No additional transfers.--No election may be made 
     under subsection (a) by a transferee taxpayer with respect to 
     any portion of an eligible credit which has been previously 
     transferred to such taxpayer pursuant to this section.
       ``(f) Definitions.--For purposes of this section--
       ``(1) Eligible credit.--
       ``(A) In general.--The term `eligible credit' means each of 
     the following:
       ``(i) So much of the credit for alternative fuel vehicle 
     refueling property allowed under section 30C which, pursuant 
     to subsection (d)(1) of such section, is treated as a credit 
     listed in section 38(b).
       ``(ii) The renewable electricity production credit 
     determined under section 45(a).
       ``(iii) The credit for carbon oxide sequestration 
     determined under section 45Q(a).
       ``(iv) The zero-emission nuclear power production credit 
     determined under section 45U(a).
       ``(v) The clean hydrogen production credit determined under 
     section 45V(a).
       ``(vi) The advanced manufacturing production credit 
     determined under section 45X(a).
       ``(vii) The clean electricity production credit determined 
     under section 45Y(a).
       ``(viii) The clean fuel production credit determined under 
     section 45Z(a).
       ``(ix) The energy credit determined under section 48.
       ``(x) The qualifying advanced energy project credit 
     determined under section 48C.
       ``(xi) The clean electricity investment credit determined 
     under section 48D.
       ``(B) Election for certain credits.--In the case of any 
     eligible credit described in clause (ii), (iii), (v), or 
     (vii) of subparagraph (A), an election under subsection (a) 
     shall be made--
       ``(i) separately with respect to each facility for which 
     such credit is determined, and
       ``(ii) for each taxable year during the 10-year period 
     beginning on the date such facility was originally placed in 
     service (or, in the case of the credit described in clause 
     (iii), for each year during the 12-year period beginning on 
     the date the carbon capture equipment was originally placed 
     in service at such facility).
       ``(C) Exception for business credit carryforwards or 
     carrybacks.--The term

[[Page S3972]]

     `eligible credit' shall not include any business credit 
     carryforward or business credit carryback determined under 
     section 39.
       ``(2) Eligible taxpayer.--The term `eligible taxpayer' 
     means any taxpayer which is not described in section 
     6417(c)(1)(A).
       ``(g) Special Rules.--For purposes of this section--
       ``(1) Additional information.--As a condition of, and prior 
     to, any transfer of any portion of an eligible credit 
     pursuant to subsection (a), the Secretary may require such 
     information (including, in such form or manner as is 
     determined appropriate by the Secretary, such information 
     returns) or registration as the Secretary deems necessary or 
     appropriate for purposes of preventing duplication, fraud, 
     improper payments, or excessive payments under this section.
       ``(2) Excessive payment.--
       ``(A) In general.--In the case of any portion of an 
     eligible credit which is transferred to a transferee taxpayer 
     pursuant to subsection (a) which the Secretary determines 
     constitutes an excessive payment, the tax imposed on the 
     transferee taxpayer by chapter 1 (regardless of whether such 
     entity would otherwise be subject to tax under such chapter) 
     for the taxable year in which such determination is made 
     shall be increased by an amount equal to the sum of--
       ``(i) the amount of such excessive payment, plus
       ``(ii) an amount equal to 20 percent of such excessive 
     payment.
       ``(B) Reasonable cause.--Subparagraph (A) shall not apply 
     if the transferee taxpayer demonstrates to the satisfaction 
     of the Secretary that the excessive payment resulted from 
     reasonable cause.
       ``(C) Excessive payment defined.--For purposes of this 
     paragraph, the term `excessive payment' means, with respect 
     to a facility or property for which an election is made under 
     subsection (a) for any taxable year, an amount equal to the 
     excess of--
       ``(i) the amount of the eligible credit claimed by the 
     transferee taxpayer with respect to such facility or property 
     for such taxable year, over
       ``(ii) the amount of such credit which, without application 
     of this section, would be otherwise allowable (determined 
     without regard to section 38(c)) under this title with 
     respect to such facility or property for such taxable year.
       ``(3) Basis reduction.--In the case of any election under 
     subsection (a) with respect to any portion of an eligible 
     credit described in clauses (ix) through (xi) of subsection 
     (f)(1)(A), subsection (c) of section 50 shall apply to the 
     applicable investment credit property (as defined in 
     subsection (a)(5) of such section) as if such eligible credit 
     was allowed to the eligible taxpayer.
       ``(4) Prohibition on election or transfer with respect to 
     progress expenditures.--This section shall not apply with 
     respect to any amount of an eligible credit which is allowed 
     pursuant to rules similar to the rules of subsections (c)(4) 
     and (d) of section 46 (as in effect on the day before the 
     date of the enactment of the Revenue Reconciliation Act of 
     1990).
       ``(h) Regulations.--The Secretary shall issue such 
     regulations or other guidance as may be necessary or 
     appropriate to carry out the purposes of this section, 
     including regulations or other guidance providing rules for 
     determining a partner's distributive share of the tax exempt 
     income described in subsection (c)(1).''.
       (c) Real Estate Investment Trusts.--Section 50(d) is 
     amended by adding at the end the following: ``In the case of 
     a real estate investment trust making an election under 
     section 6418, paragraphs (1)(B) and (2)(B) of the section 
     46(e) referred to in paragraph (1) of this subsection shall 
     not apply to any investment credit property of such real 
     estate investment trust to which such election applies.''.
       (d) 3-year Carryback for Applicable Credits.--Section 39(a) 
     is amended by adding at the end the following:
       ``(4) 3-year carryback for applicable credits.--
     Notwithstanding subsection (d), in the case of any applicable 
     credit (as defined in section 6417(b))--
       ``(A) this section shall be applied separately from the 
     business credit (other than the applicable credit),
       ``(B) paragraph (1) shall be applied by substituting `each 
     of the 3 taxable years' for `the taxable year' in 
     subparagraph (A) thereof, and
       ``(C) paragraph (2) shall be applied--
       ``(i) by substituting `23 taxable years' for `21 taxable 
     years' in subparagraph (A) thereof, and
       ``(ii) by substituting `22 taxable years' for `20 taxable 
     years' in subparagraph (B) thereof.''.
       (e) Clerical Amendment.--The table of sections for 
     subchapter B of chapter 65 is amended by inserting after the 
     item relating to section 6416 the following new items:

``Sec. 6417. Elective payment of applicable credits.
``Sec. 6418. Transfer of certain credits.''.
       (f) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2022.

     SEC. 13802. APPROPRIATIONS.

       Immediately upon the enactment of this Act, in addition to 
     amounts otherwise available, there are appropriated for 
     fiscal year 2022, out of any money in the Treasury not 
     otherwise appropriated, $500,000,000 to remain available 
     until September 30, 2031, for necessary expenses for the 
     Internal Revenue Service to carry out this subtitle (and the 
     amendments made by this subtitle), which shall supplement and 
     not supplant any other appropriations that may be available 
     for this purpose.

                       PART IX--OTHER PROVISIONS

     SEC. 13901. PERMANENT EXTENSION OF TAX RATE TO FUND BLACK 
                   LUNG DISABILITY TRUST FUND.

       (a) In General.--Section 4121 is amended by striking 
     subsection (e).
       (b) Effective Date.--The amendment made by this section 
     shall apply to sales in calendar quarters beginning after the 
     date of the enactment of this Act.

     SEC. 13902. INCREASE IN RESEARCH CREDIT AGAINST PAYROLL TAX 
                   FOR SMALL BUSINESSES.

       (a) In General.--Clause (i) of section 41(h)(4)(B) is 
     amended--
       (1) by striking ``Amount.--The amount'' and inserting 
     ``Amount.--

       ``(I) In general.--The amount'', and

       (2) by adding at the end the following new subclause:

       ``(II) Increase.--In the case of taxable years beginning 
     after December 31, 2022, the amount in subclause (I) shall be 
     increased by $250,000.''.

       (b) Allowance of Credit.--
       (1) In general.--Paragraph (1) of section 3111(f) is 
     amended--
       (A) by striking ``for a taxable year, there shall be 
     allowed'' and inserting ``for a taxable year--
       ``(A) there shall be allowed'',
       (B) by striking ``equal to the'' and inserting ``equal to 
     so much of the'',
       (C) by striking the period at the end and inserting ``as 
     does not exceed the limitation of subclause (I) of section 
     41(h)(4)(B)(i) (applied without regard to subclause (II) 
     thereof), and'', and
       (D) by adding at the end the following new subparagraph:
       ``(B) there shall be allowed as a credit against the tax 
     imposed by subsection (b) for the first calendar quarter 
     which begins after the date on which the taxpayer files the 
     return specified in section 41(h)(4)(A)(ii) an amount equal 
     to so much of the payroll tax credit portion determined under 
     section 41(h)(2) as is not allowed as a credit under 
     subparagraph (A).''.
       (2) Limitation.--Paragraph (2) of section 3111(f) is 
     amended--
       (A) by striking ``paragraph (1)'' and inserting ``paragraph 
     (1)(A)'', and
       (B) by inserting ``, and the credit allowed by paragraph 
     (1)(B) shall not exceed the tax imposed by subsection (b) for 
     any calendar quarter,'' after ``calendar quarter''.
       (3) Carryover.--Paragraph (3) of section 3111(f) is amended 
     by striking ``the credit'' and inserting ``any credit''.
       (4) Deduction allowed.--Paragraph (4) of section 3111(f) is 
     amended--
       (A) by striking ``credit'' and inserting ``credits'', and
       (B) by striking ``subsection (a)'' and inserting 
     ``subsection (a) or (b)''.
       (c) Aggregation Rules.--Clause (ii) of section 41(h)(5)(B) 
     is amended by striking ``the $250,000 amount'' and inserting 
     ``each of the $250,000 amounts''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2022.

      TITLE II--COMMITTEE ON AGRICULTURE, NUTRITION, AND FORESTRY

                     Subtitle A--General Provisions

     SEC. 20001. DEFINITION OF SECRETARY.

       In this title, the term ``Secretary'' means the Secretary 
     of Agriculture.

                        Subtitle B--Conservation

     SEC. 21001. ADDITIONAL AGRICULTURAL CONSERVATION INVESTMENTS.

       (a) Appropriations.--In addition to amounts otherwise 
     available (and subject to subsection (b)), there are 
     appropriated to the Secretary, out of any money in the 
     Treasury not otherwise appropriated, to remain available 
     until September 30, 2031 (subject to the condition that no 
     such funds may be disbursed after September 30, 2031)--
       (1) to carry out, using the facilities and authorities of 
     the Commodity Credit Corporation, the environmental quality 
     incentives program under subchapter A of chapter 4 of 
     subtitle D of title XII of the Food Security Act of 1985 (16 
     U.S.C. 3839aa through 3839aa-8)--
       (A)(i) $250,000,000 for fiscal year 2023;
       (ii) $1,750,000,000 for fiscal year 2024;
       (iii) $3,000,000,000 for fiscal year 2025; and
       (iv) $3,450,000,000 for fiscal year 2026; and
       (B) subject to the conditions on the use of the funds 
     that--
       (i) section 1240B(f)(1) of the Food Security Act of 1985 
     (16 U.S.C. 3839aa-2(f)(1)) shall not apply;
       (ii) section 1240H(c)(2) of the Food Security Act of 1985 
     (16 U.S.C. 3839aa-8(c)(2)) shall be applied--

       (I) by substituting ``$50,000,000'' for ``$25,000,000''; 
     and
       (II) with the Secretary prioritizing proposals that utilize 
     diet and feed management to reduce enteric methane emissions 
     from ruminants;

       (iii) the funds shall be available for 1 or more 
     agricultural conservation practices or enhancements that the 
     Secretary determines directly improve soil carbon or reduce 
     nitrogen losses or greenhouse gas emissions, or capture or 
     sequester greenhouse gas emissions, associated with 
     agricultural production; and

[[Page S3973]]

       (iv) the Secretary shall prioritize projects and activities 
     that mitigate or address climate change through the 
     management of agricultural production, including by reducing 
     or avoiding greenhouse gas emissions;
       (2) to carry out, using the facilities and authorities of 
     the Commodity Credit Corporation, the conservation 
     stewardship program under subchapter B of that chapter (16 
     U.S.C. 3839aa-21 through 3839aa-25)--
       (A)(i) $250,000,000 for fiscal year 2023;
       (ii) $500,000,000 for fiscal year 2024;
       (iii) $1,000,000,000 for fiscal year 2025; and
       (iv) $1,500,000,000 for fiscal year 2026; and
       (B) subject to the conditions on the use of the funds 
     that--
       (i) the funds shall only be available for--

       (I) 1 or more agricultural conservation practices or 
     enhancements that the Secretary determines directly improve 
     soil carbon or reduce nitrogen losses or greenhouse gas 
     emissions, or capture or sequester greenhouse gas emissions, 
     associated with agricultural production; or
       (II) State-specific or region-specific groupings or bundles 
     of agricultural conservation activities for climate change 
     mitigation appropriate for cropland, pastureland, rangeland, 
     nonindustrial private forest land, and producers 
     transitioning to organic or perennial production systems; and

       (ii) the Secretary shall prioritize projects and activities 
     that mitigate or address climate change through the 
     management of agricultural production, including by reducing 
     or avoiding greenhouse gas emissions;
       (3) to carry out, using the facilities and authorities of 
     the Commodity Credit Corporation, the agricultural 
     conservation easement program under subtitle H of title XII 
     of that Act (16 U.S.C. 3865 through 3865d)--
       (A)(i) $100,000,000 for fiscal year 2023;
       (ii) $200,000,000 for fiscal year 2024;
       (iii) $500,000,000 for fiscal year 2025; and
       (iv) $600,000,000 for fiscal year 2026; and
       (B) subject to the condition on the use of the funds that 
     the Secretary shall prioritize projects and activities that 
     mitigate or address climate change through the management of 
     agricultural production, including by reducing or avoiding 
     greenhouse gas emissions; and
       (4) to carry out, using the facilities and authorities of 
     the Commodity Credit Corporation, the regional conservation 
     partnership program under subtitle I of title XII of that Act 
     (16 U.S.C. 3871 through 3871f)--
       (A)(i) $250,000,000 for fiscal year 2023;
       (ii) $1,200,000,000 for fiscal year 2024;
       (iii) $2,250,000,000 for fiscal year 2025; and
       (iv) $3,050,000,000 for fiscal year 2026; and
       (B) subject to the conditions on the use of the funds that 
     the Secretary--
       (i) shall prioritize partnership agreements under section 
     1271C(d) of the Food Security Act of 1985 (16 U.S.C. 
     3871c(d)) that support the implementation of conservation 
     projects that assist agricultural producers and nonindustrial 
     private forestland owners in directly improving soil carbon 
     or reducing nitrogen losses or greenhouse gas emissions, or 
     capturing or sequestering greenhouse gas emissions, 
     associated with agricultural production;
       (ii) shall prioritize projects and activities that mitigate 
     or address climate change through the management of 
     agricultural production, including by reducing or avoiding 
     greenhouse gas emissions; and
       (iii) may prioritize projects that--

       (I) leverage corporate supply chain sustainability 
     commitments; or
       (II) utilize models that pay for outcomes from targeting 
     methane and nitrous oxide emissions associated with 
     agricultural production systems.

       (b) Conditions.--The funds made available under subsection 
     (a) are subject to the conditions that the Secretary shall 
     not--
       (1) enter into any agreement--
       (A) that is for a term extending beyond September 30, 2031; 
     or
       (B) under which any payment could be outlaid or funds 
     disbursed after September 30, 2031; or
       (2) use any other funds available to the Secretary to 
     satisfy obligations initially made under this section.
       (c) Conforming Amendments.--
       (1) Section 1240B of the Food Security Act of 1985 (16 
     U.S.C. 3839aa-2) is amended--
       (A) in subsection (a), by striking ``2023'' and inserting 
     ``2031''; and
       (B) in subsection (f)(2)(B)--
       (i) in the subparagraph heading, by striking ``2023'' and 
     inserting ``2031''; and
       (ii) by striking ``2023'' and inserting ``2031''.
       (2) Section 1240H of the Food Security Act of 1985 (16 
     U.S.C. 3839aa-8) is amended by striking ``2023'' each place 
     it appears and inserting ``2031''.
       (3) Section 1240J(a) of the Food Security Act of 1985 (16 
     U.S.C. 3839aa-22(a)) is amended, in the matter preceding 
     paragraph (1), by striking ``2023'' and inserting ``2031''.
       (4) Section 1240L(h)(2)(A) of the Food Security Act of 1985 
     (16 U.S.C. 3839aa-24(h)(2)(A)) is amended by striking 
     ``2023'' and inserting ``2031''.
       (5) Section 1241 of the Food Security Act of 1985 (16 
     U.S.C. 3841) is amended--
       (A) in subsection (a)--
       (i) in the matter preceding paragraph (1), by striking 
     ``2023'' and inserting ``2031'';
       (ii) in paragraph (1), by striking ``2023'' each place it 
     appears and inserting ``2031'';
       (iii) in paragraph (2)(F), by striking ``2023'' and 
     inserting ``2031''; and
       (iv) in paragraph (3), by striking ``fiscal year 2023'' 
     each place it appears and inserting ``each of fiscal years 
     2023 through 2031'';
       (B) in subsection (b), by striking ``2023'' and inserting 
     ``2031''; and
       (C) in subsection (h)--
       (i) in paragraph (1)(B), in the subparagraph heading, by 
     striking ``2023'' and inserting ``2031''; and
       (ii) by striking ``2023'' each place it appears and 
     inserting ``2031''.
       (6) Section 1244(n)(3)(A) of the Food Security Act of 1985 
     (16 U.S.C. 3844(n)(3)(A)) is amended by striking ``2023'' and 
     inserting ``2031''.
       (7) Section 1271D(a) of the Food Security Act of 1985 (16 
     U.S.C. 3871d(a)) is amended by striking ``2023'' and 
     inserting ``2031''.

     SEC. 21002. CONSERVATION TECHNICAL ASSISTANCE.

       (a) Appropriations.--In addition to amounts otherwise 
     available (and subject to subsection (b)), there are 
     appropriated to the Secretary for fiscal year 2022, out of 
     any money in the Treasury not otherwise appropriated, to 
     remain available until September 30, 2031 (subject to the 
     condition that no such funds may be disbursed after September 
     30, 2031)--
       (1) $1,000,000,000 to provide conservation technical 
     assistance through the Natural Resources Conservation 
     Service; and
       (2) $300,000,000 to carry out a carbon sequestration and 
     greenhouse gas emissions quantification program through which 
     the Natural Resources Conservation Service, including through 
     technical service providers and other partners, shall collect 
     field-based data to assess the carbon sequestration and 
     greenhouse gas emissions reduction outcomes associated with 
     activities carried out pursuant to this section and use the 
     data to monitor and track greenhouse gas emissions and carbon 
     sequestration trends through the Greenhouse Gas Inventory and 
     Assessment Program of the Department of Agriculture.
       (b) Conditions.--The funds made available under this 
     section are subject to the conditions that the Secretary 
     shall not--
       (1) enter into any agreement--
       (A) that is for a term extending beyond September 30, 2031; 
     or
       (B) under which any payment could be outlaid or funds 
     disbursed after September 30, 2031;
       (2) use any other funds available to the Secretary to 
     satisfy obligations initially made under this section; or
       (3) interpret this section to authorize funds of the 
     Commodity Credit Corporation for activities under this 
     section if such funds are not expressly authorized or 
     currently expended for such purposes.
       (c) Administrative Costs.--In addition to amounts otherwise 
     available, there is appropriated to the Secretary for fiscal 
     year 2022, out of any money in the Treasury not otherwise 
     appropriated, $100,000,000, to remain available until 
     September 30, 2028, for administrative costs of the agencies 
     and offices of the Department of Agriculture for costs 
     related to implementing this section.

                     Subtitle C--Rural Development

     SEC. 22001. ADDITIONAL FUNDING FOR ELECTRIC LOANS FOR 
                   RENEWABLE ENERGY.

       Section 9003 of the Farm Security and Rural Investment Act 
     of 2002 (7 U.S.C. 8103) is amended by adding at the end the 
     following:
       ``(h) Additional Funding for Electric Loans for Renewable 
     Energy.--
       ``(1) Appropriations.--Notwithstanding subsections (a) 
     through (e), and (g), in addition to amounts otherwise 
     available, there is appropriated to the Secretary for fiscal 
     year 2022, out of any money in the Treasury not otherwise 
     appropriated, $1,000,000,000, to remain available until 
     September 30, 2031, for the cost of loans under section 317 
     of the Rural Electrification Act of 1936 (7 U.S.C. 940g), 
     including for projects that store electricity that support 
     the types of eligible projects under that section, which 
     shall be forgiven based on how the borrower and the project 
     meets the terms and conditions for loan forgiveness 
     consistent with the purposes of that section established by 
     the Secretary.
       ``(2) Limitation.--The Secretary shall not enter into any 
     loan agreement pursuant this subsection that could result in 
     disbursements after September 30, 2031.
       ``(3) Restriction.--A loan under paragraph (1) shall be 
     forgiven in an amount that is not greater than 50 percent of 
     the loan, unless the Secretary waives such restriction.''.

     SEC. 22002. RURAL ENERGY FOR AMERICA PROGRAM.

       (a) Appropriation.--In addition to amounts otherwise 
     available, there is appropriated to the Secretary, out of any 
     money in the Treasury not otherwise appropriated, for 
     eligible projects under section 9007 of the Farm Security and 
     Rural Investment Act of 2002 (7 U.S.C. 8107), and 
     notwithstanding section 9007(c)(3)(A) of that Act, the amount 
     of a grant shall not exceed 50 percent of the cost of the 
     activity carried out using the grant funds--
       (1) $820,250,000 for fiscal year 2022, to remain available 
     until September 30, 2031; and
       (2) $180,276,500 for each of fiscal years 2023 through 
     2027, to remain available until September 30, 2031.
       (b) Underutilized Renewable Energy Technologies.--In 
     addition to amounts otherwise available, there is 
     appropriated to the Secretary, out of any money in the 
     Treasury not otherwise appropriated, to provide grants and 
     loans guaranteed by the Secretary (including the costs of 
     such loans) under the program described in subsection (a) 
     relating to underutilized renewable energy technologies, and 
     to provide technical

[[Page S3974]]

     assistance for applying to the program described in 
     subsection (a), including for underutilized renewable energy 
     technologies, notwithstanding section 9007(c)(3)(A) of the 
     Farm Security and Rural Investment Act of 2002 (7 U.S.C. 
     8107(c)(3)(A)), the amount of a grant shall not exceed 50 
     percent of the cost of the activity carried out using the 
     grant funds, and to the extent the following amounts remain 
     available at the end of each fiscal year, the Secretary shall 
     use such amounts in accordance with subsection (a)--
       (1) $144,750,000 for fiscal year 2022, to remain available 
     until September 30, 2031; and
       (2) $31,813,500 for each of fiscal years 2023 through 2027, 
     to remain available until September 30, 2031.
       (c) Limitation.--The Secretary shall not enter into, 
     pursuant to this section--
       (1) any loan agreement that may result in a disbursement 
     after September 30, 2031; or
       (2) any grant agreement that may result in any outlay after 
     September 30, 2031.

     SEC. 22003. BIOFUEL INFRASTRUCTURE AND AGRICULTURE PRODUCT 
                   MARKET EXPANSION.

       Section 9003 of the Farm Security and Rural Investment Act 
     of 2002 (7 U.S.C. 8103) (as amended by section 22001) is 
     amended by adding at the end the following:
       ``(i) Biofuel Infrastructure and Agriculture Product Market 
     Expansion.--
       ``(1) Appropriation.--Notwithstanding subsections (a) 
     through (e) and subsection (g), in addition to amounts 
     otherwise available, there is appropriated to the Secretary 
     for fiscal year 2022, out of any money in the Treasury not 
     otherwise appropriated, $500,000,000, to remain available 
     until September 30, 2031, to carry out this subsection.
       ``(2) Use of funds.--The Secretary shall use the amounts 
     made available by paragraph (1) to provide grants, for which 
     the Federal share shall be not more than 75 percent of the 
     total cost of carrying out a project for which the grant is 
     provided, on a competitive basis, to increase the sale and 
     use of agricultural commodity-based fuels through 
     infrastructure improvements for blending, storing, supplying, 
     or distributing biofuels, except for transportation 
     infrastructure not on location where such biofuels are 
     blended, stored, supplied, or distributed--
       ``(A) by installing, retrofitting, or otherwise upgrading 
     fuel dispensers or pumps and related equipment, storage tank 
     system components, and other infrastructure required at a 
     location related to dispensing certain biofuels blends to 
     ensure the increased sales of fuels with high levels of 
     commodity-based ethanol and biodiesel that are at or greater 
     than the levels required in the Notice of Funding 
     Availability for the Higher Blends Infrastructure Incentive 
     Program for Fiscal Year 2020, published in the Federal 
     Register (85 Fed. Reg. 26656), as determined by the 
     Secretary; and
       ``(B) by building and retrofitting home heating oil 
     distribution centers or equivalent entities and distribution 
     systems for ethanol and biodiesel blends.
       ``(3) Limitation.--The Secretary may not limit the amount 
     of funding an eligible entity may receive under this 
     subsection provided that no eligible entity may receive more 
     than 10 percent of the funds appropriated under paragraph (1) 
     unless there are insufficient eligible applicants, as 
     determined by the Secretary, to which to award those 
     funds.''.

     SEC. 22004. USDA ASSISTANCE FOR RURAL ELECTRIC COOPERATIVES.

       Section 9003 of the Farm Security and Rural Investment Act 
     of 2002 (7 U.S.C. 8103) (as amended by section 22003) is 
     amended by adding at the end the following:
       ``(j) USDA Assistance for Rural Electric Cooperatives.--
       ``(1) Appropriation.--Notwithstanding subsections (a) 
     through (e) and (g), in addition to amounts otherwise 
     available, there is appropriated to the Secretary for fiscal 
     year 2022, out of any money in the Treasury not otherwise 
     appropriated, $9,700,000,000, to remain available until 
     September 30, 2031, for the long-term resiliency, 
     reliability, and affordability of rural electric systems and 
     for purposes described in section 310B(a)(2)(C) of the 
     Consolidated Farm and Rural Development Act (7 U.S.C. 
     1932(a)(2)(C)) (provided that the term renewable energy 
     system in that paragraph has the meaning given that term in 
     section 9001), for zero-emission systems, or for carbon 
     capture and storage systems, by providing to an eligible 
     entity (defined as an electric cooperative described in 
     section 501(c)(12) or 1381(a)(2) of the Internal Revenue Code 
     of 1986 and is or has been a Rural Utilities Service electric 
     loan borrower pursuant to the Rural Electrification Act of 
     1936 or serving a predominantly rural area or a wholly or 
     jointly owned subsidiary of such electric cooperative) 
     financial assistance, including loans and the cost of loans 
     and modifications thereof, to purchase renewable energy, 
     renewable energy systems, zero-emission systems, and carbon 
     capture and storage systems, to deploy such systems, or to 
     make energy efficiency improvements to electric generation 
     and transmission systems of the eligible entity after the 
     date of enactment of this subsection, that will achieve the 
     greatest reduction in greenhouse gas emissions associated 
     with rural electric systems using financial assistance 
     provided under this subsection and that will otherwise aid 
     disadvantaged rural communities, as determined by the 
     Secretary.
       ``(2) Limitation.--No eligible entity may receive an amount 
     equal to more than 10 percent of the total amount made 
     available by this subsection.
       ``(3) Requirement.--The amount of a grant under this 
     subsection shall be not more than 25 percent of the total 
     project costs of the eligible entity carrying out a project 
     using a grant under this subsection.
       ``(4) Prohibition.--Nothing in this subsection shall be 
     interpreted to authorize funds of the Commodity Credit 
     Corporation for activities under this subsection if such 
     funds are not expressly authorized or currently expended for 
     such purposes.
       ``(5) Disbursements.--The Secretary shall not enter into, 
     pursuant to this subsection--
       ``(A) any loan agreement that may result in a disbursement 
     after September 30, 2031; or
       ``(B) any grant agreement that may result in any outlay 
     after September 30, 2031.''.

     SEC. 22005. ADDITIONAL USDA RURAL DEVELOPMENT ADMINISTRATIVE 
                   FUNDS.

       In addition to amounts otherwise available, there is 
     appropriated to the Secretary for fiscal year 2022, out of 
     any money in the Treasury not otherwise appropriated, 
     $100,000,000, to remain available until September 30, 2031, 
     for administrative costs and salaries and expenses for the 
     Rural Development mission area and expenses of the agencies 
     and offices of the Department for costs related to 
     implementing this subtitle.

                          Subtitle D--Forestry

     SEC. 23001. NATIONAL FOREST SYSTEM RESTORATION AND FUELS 
                   REDUCTION PROJECTS.

       (a) Appropriations.--In addition to amounts otherwise 
     available, there are appropriated to the Secretary for fiscal 
     year 2022, out of any money in the Treasury not otherwise 
     appropriated, to remain available until September 30, 2031--
       (1) $1,800,000,000 for hazardous fuels reduction projects 
     on National Forest System land within the wildland-urban 
     interface;
       (2) $200,000,000 for vegetation management projects on 
     National Forest System land carried out in accordance with a 
     water source management plan or a watershed protection and 
     restoration action plan;
       (3) $100,000,000 to provide for more efficient and more 
     effective environmental reviews by the Chief of the Forest 
     Service in satisfying the obligations of the Chief of the 
     Forest Service under the National Environmental Policy Act of 
     1969 (42 U.S.C. 4321 through 4370m-12); and
       (4) $50,000,000 to develop and carry out activities and 
     tactics for the protection of old-growth forests on National 
     Forest System land and to complete an inventory of old-growth 
     forests and mature forests within the National Forest System.
       (b) Priority for Funding.--For projects described in 
     paragraphs (1) and (2) of subsection (a), the Secretary shall 
     prioritize for implementation projects--
       (1) for which an environmental assessment or an 
     environmental impact statement required under the National 
     Environmental Policy Act of 1969 (42 U.S.C. 4321 through 
     4370m-12) has been completed;
       (2) that are collaboratively developed; or
       (3) that include opportunities to restore sustainable 
     recreation infrastructure or access or accomplish other 
     recreation outcomes on National Forest System lands, if the 
     opportunities are compatible with the primary restoration 
     purposes of the project.
       (c) Restrictions.--None of the funds made available by this 
     section may be used for any activity--
       (1) conducted in a wilderness area or wilderness study 
     area;
       (2) that includes the construction of a permanent road or 
     motorized trail;
       (3) that includes the construction of a temporary road, 
     except in the case of a temporary road that is decommissioned 
     by the Secretary not later than 3 years after the earlier 
     of--
       (A) the date on which the temporary road is no longer 
     needed; and
       (B) the date on which the project for which the temporary 
     road was constructed is completed;
       (4) inconsistent with the applicable land management plan;
       (5) inconsistent with the prohibitions of the rule of the 
     Forest Service entitled ``Special Areas; Roadless Area 
     Conservation'' (66 Fed. Reg. 3244 (January 12, 2001)), as 
     modified by subparts C and D of part 294 of title 36, Code of 
     Federal Regulations; or
       (6) carried out on any land that is not National Forest 
     System land, including other forested land on Federal, State, 
     Tribal, or private land.
       (d) Limitations.--Nothing in this section shall be 
     interpreted to authorize funds of the Commodity Credit 
     Corporation for activities under this section if such funds 
     are not expressly authorized or currently expended for such 
     purposes.
       (e) Cost-sharing Waiver.--
       (1) In general.--The non-Federal cost-share requirement of 
     a project described in paragraph (2) may be waived at the 
     discretion of the Secretary.
       (2) Project described.--A project referred to in paragraph 
     (1) is a project that--
       (A) is carried out using funds made available under this 
     section;
       (B) requires a partnership agreement, including a 
     cooperative agreement or mutual interest agreement; and
       (C) is subject to a non-Federal cost-share requirement.
       (f) Definitions.--In this section:
       (1) Collaboratively developed.--The term ``collaboratively 
     developed'' means, with respect to a project located 
     exclusively on National Forest System land, that the

[[Page S3975]]

     project is developed and implemented through a collaborative 
     process that--
       (A) includes multiple interested persons representing 
     diverse interests, except such persons shall not be employed 
     by the Federal Government or be representatives of foreign 
     entities; and
       (B)(i) is transparent and nonexclusive; or
       (ii) meets the requirements for a resource advisory 
     committee under subsections (c) through (f) of section 205 of 
     the Secure Rural Schools and Community Self-Determination Act 
     of 2000 (16 U.S.C. 7125).
       (2) Decommission.--The term ``decommission'' means, with 
     respect to a road--
       (A) reestablishing native vegetation on the road;
       (B) restoring any natural drainage, watershed function, or 
     other ecological processes that were disrupted or adversely 
     impacted by the road by removing or hydrologically 
     disconnecting the road prism and reestablishing stable slope 
     contours; and
       (C) effectively blocking the road to vehicular traffic, 
     where feasible.
       (3) Ecological integrity.--The term ``ecological 
     integrity'' has the meaning given the term in section 219.19 
     of title 36, Code of Federal Regulations (as in effect on the 
     date of enactment of this Act).
       (4) Hazardous fuels reduction project.--The term 
     ``hazardous fuels reduction project'' means an activity, 
     including the use of prescribed fire, to protect structures 
     and communities from wildfire that is carried out on National 
     Forest System land.
       (5) Restoration.--The term ``restoration'' has the meaning 
     given the term in section 219.19 of title 36, Code of Federal 
     Regulations (as in effect on the date of enactment of this 
     Act).
       (6) Vegetation management project.--The term ``vegetation 
     management project'' means an activity carried out on 
     National Forest System land to enhance the ecological 
     integrity and achieve the restoration of a forest ecosystem 
     through the removal of vegetation, the use of prescribed 
     fire, the restoration of aquatic habitat, or the 
     decommissioning of an unauthorized, temporary, or system 
     road.
       (7) Water source management plan.--The term ``water source 
     management plan'' means a plan developed under section 
     303(d)(1) of the Healthy Forests Restoration Act of 2003 (16 
     U.S.C. 6542(d)(1)).
       (8) Watershed protection and restoration action plan.--The 
     term ``watershed protection and restoration action plan'' 
     means a plan developed under section 304(a)(3) of the Healthy 
     Forests Restoration Act of 2003 (16 U.S.C. 6543(a)(3)).
       (9) Wildland-urban interface.--The term ``wildland-urban 
     interface'' has the meaning given the term in section 101 of 
     the Healthy Forests Restoration Act of 2003 (16 U.S.C. 6511).

     SEC. 23002. COMPETITIVE GRANTS FOR NON-FEDERAL FOREST 
                   LANDOWNERS.

       (a) Appropriations.--In addition to amounts otherwise 
     available, there are appropriated to the Secretary for fiscal 
     year 2022, out of any money in the Treasury not otherwise 
     appropriated, to remain available until September 30, 2031--
       (1) $150,000,000 for the competitive grant program under 
     section 13A of the Cooperative Forestry Assistance Act of 
     1978 (16 U.S.C. 2109a) for providing through that program a 
     cost share to carry out climate mitigation or forest 
     resilience practices in the case of underserved forest 
     landowners, subject to the condition that subsection (h) of 
     that section shall not apply;
       (2) $150,000,000 for the competitive grant program under 
     section 13A of the Cooperative Forestry Assistance Act of 
     1978 (16 U.S.C. 2109a) for providing through that program 
     grants to support the participation of underserved forest 
     landowners in emerging private markets for climate mitigation 
     or forest resilience, subject to the condition that 
     subsection (h) of that section shall not apply;
       (3) $100,000,000 for the competitive grant program under 
     section 13A of the Cooperative Forestry Assistance Act of 
     1978 (16 U.S.C. 2109a) for providing through that program 
     grants to support the participation of forest landowners who 
     own less than 2,500 acres of forest land in emerging private 
     markets for climate mitigation or forest resilience, subject 
     to the condition that subsection (h) of that section shall 
     not apply;
       (4) $50,000,000 for the competitive grant program under 
     section 13A of the Cooperative Forestry Assistance Act of 
     1978 (16 U.S.C. 2109a) to provide grants to states and other 
     eligible entities to provide payments to owners of private 
     forest land for implementation of forestry practices on 
     private forest land, that are determined by the Secretary, 
     based on the best available science, to provide measurable 
     increases in carbon sequestration and storage beyond 
     customary practices on comparable land, subject to the 
     conditions that--
       (A) those payments shall not preclude landowners from 
     participation in other public and private sector financial 
     incentive programs; and
       (B) subsection (h) of that section shall not apply; and
       (5) $100,000,000 to provide grants under the wood 
     innovation grant program under section 8643 of the 
     Agriculture Improvement Act of 2018 (7 U.S.C. 7655d), 
     including for the construction of new facilities that advance 
     the purposes of the program and for the hauling of material 
     removed to reduce hazardous fuels to locations where that 
     material can be utilized, subject to the conditions that--
       (A) the amount of such a grant shall be not more than 
     $5,000,000;
       (B) notwithstanding subsection (d) of that section, a 
     recipient of such a grant shall provide funds equal to not 
     less than 50 percent of the amount received under the grant, 
     to be derived from non-Federal sources; and
       (C) a priority shall be placed on projects that create a 
     financial model for addressing forest restoration needs on 
     public or private forest land.
       (b) Cost-sharing Requirement.--Any partnership agreements, 
     including cooperative agreements and mutual interest 
     agreements, using funds made available under this section 
     shall be subject to a non-Federal cost-share requirement of 
     not less than 20 percent of the project cost, which may be 
     waived at the discretion of the Secretary.
       (c) Limitations.--Nothing in this section shall be 
     interpreted to authorize funds of the Commodity Credit 
     Corporation for activities under this section if such funds 
     are not expressly authorized or currently expended for such 
     purposes.

     SEC. 23003. STATE AND PRIVATE FORESTRY CONSERVATION PROGRAMS.

       (a) Appropriations.--In addition to amounts otherwise 
     available, there are appropriated to the Secretary for fiscal 
     year 2022, out of any money in the Treasury not otherwise 
     appropriated, to remain available until September 30, 2031--
       (1) $700,000,000 to provide competitive grants to States 
     through the Forest Legacy Program established under section 7 
     of the Cooperative Forestry Assistance Act of 1978 (16 U.S.C. 
     2103c) to acquire land and interests in land, with priority 
     given to grant applications that offer significant natural 
     carbon sequestration benefits or provide benefits to 
     underserved populations; and
       (2) $1,500,000,000 to provide multiyear, programmatic, 
     competitive grants to a State agency, a local governmental 
     entity, an agency or governmental entity of the District of 
     Columbia, an Indian Tribe, or a nonprofit organization 
     through the Urban and Community Forestry Assistance program 
     established under section 9(c) of the Cooperative Forestry 
     Assistance Act of 1978 (16 U.S.C. 2105(c)) for tree planting 
     and related activities, with a priority for projects that 
     benefit underserved populations and areas.
       (b) Waiver.--Any non-Federal cost-share requirement 
     otherwise applicable to projects carried out under this 
     section may be waived at the discretion of the Secretary.

     SEC. 23004. LIMITATION.

       The funds made available under this subtitle are subject to 
     the condition that the Secretary shall not--
       (1) enter into any agreement--
       (A) that is for a term extending beyond September 30, 2031; 
     or
       (B) under which any payment could be outlaid or funds 
     disbursed after September 30, 2031; or
       (2) use any other funds available to the Secretary to 
     satisfy obligations initially made under this subtitle.

     SEC. 23005. ADMINISTRATIVE COSTS.

       In addition to amounts otherwise available, there is 
     appropriated to the Secretary for fiscal year 2022, out of 
     any money in the Treasury not otherwise appropriated, 
     $100,000,000 to remain available until September 30, 2031, 
     for administrative costs of the agencies and offices of the 
     Department of Agriculture for costs related to implementing 
     this subtitle.

      TITLE III--COMMITTEE ON BANKING, HOUSING, AND URBAN AFFAIRS

     SEC. 30001. ENHANCED USE OF DEFENSE PRODUCTION ACT OF 1950.

       In addition to amounts otherwise available, there is 
     appropriated for fiscal year 2022, out of any money in the 
     Treasury not otherwise appropriated, $500,000,000, to remain 
     available until September 30, 2024, to carry out the Defense 
     Production Act of 1950 (50 U.S.C. 4501 et seq.).

     SEC. 30002. IMPROVING ENERGY EFFICIENCY OR WATER EFFICIENCY 
                   OR CLIMATE RESILIENCE OF AFFORDABLE HOUSING.

       (a) Appropriation.--In addition to amounts otherwise 
     available, there is appropriated to the Secretary of Housing 
     and Urban Development (in this section referred to as the 
     ``Secretary'') for fiscal year 2022, out of any money in the 
     Treasury not otherwise appropriated--
       (1) $837,500,000, to remain available until September 30, 
     2028, for the cost of providing direct loans, including the 
     costs of modifying such loans, and for grants, as provided 
     for and subject to terms and conditions in subsection (b), 
     including to subsidize gross obligations for the principal 
     amount of direct loans, not to exceed $4,000,000,000, to fund 
     projects that improve energy or water efficiency, indoor air 
     quality or sustainability, implement the use of low-emission 
     technologies, materials, or processes, including zero-
     emission electricity generation, energy storage, or building 
     electrification, or address climate resilience, of an 
     eligible property;
       (2) $60,000,000, to remain available until September 30, 
     2030, for the costs to the Secretary of administering and 
     overseeing the implementation of this section, including 
     information technology, financial reporting, research and 
     evaluation, other cross-program costs in support of programs 
     administered by the Secretary in this title, and other costs;
       (3) $60,000,000, to remain available until September 30, 
     2029, for expenses of contracts

[[Page S3976]]

     administered by the Secretary, including to carry out 
     property climate risk, energy, or water assessments, due 
     diligence, and underwriting functions for such grant and 
     direct loan program; and
       (4) $42,500,000, to remain available until September 30, 
     2028, for energy and water benchmarking of properties 
     eligible to receive grants or loans under this section, 
     regardless of whether they actually received such grants, 
     along with associated data analysis and evaluation at the 
     property and portfolio level, including the development of 
     information technology systems necessary for the collection, 
     evaluation, and analysis of such data.
       (b) Loan and Grant Terms and Conditions.--Amounts made 
     available under this section shall be for direct loans, 
     grants, and direct loans that can be converted to grants to 
     eligible recipients that agree to an extended period of 
     affordability for the property.
       (c) Definitions.--As used in this section--
       (1) the term ``eligible recipient'' means any owner or 
     sponsor of an eligible property; and
       (2) the term ``eligible property'' means a property 
     assisted pursuant to--
       (A) section 202 of the Housing Act of 1959 (12 U.S.C. 
     1701q);
       (B) section 202 of the Housing Act of 1959 (former 12 
     U.S.C. 1701q), as such section existed before the enactment 
     of the Cranston-Gonzalez National Affordable Housing Act;
       (C) section 811 of the Cranston-Gonzalez National 
     Affordable Housing Act (42 U.S.C. 8013);
       (D) section 8(b) of the United States Housing Act of 1937 
     (42 U.S.C. 1437f(b));
       (E) section 236 of the National Housing Act (12 U.S.C. 
     1715z-1); or
       (F) a Housing Assistance Payments contract for Project-
     Based Rental Assistance in fiscal year 2021.
       (d) Waiver.--The Secretary may waive or specify alternative 
     requirements for any provision of subsection (c) or (bb) of 
     section 8 of the United States Housing Act of 1937 (42 U.S.C. 
     1437f(c), 1437f(bb)) upon a finding that the waiver or 
     alternative requirement is necessary to facilitate the use of 
     amounts made available under this section.
       (e) Implementation.--The Secretary shall have the authority 
     to establish by notice any requirements that the Secretary 
     determines are necessary for timely and effective 
     implementation of the program and expenditure of funds 
     appropriated, which requirements shall take effect upon 
     issuance.

      TITLE IV--COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

     SEC. 40001. INVESTING IN COASTAL COMMUNITIES AND CLIMATE 
                   RESILIENCE.

       (a) In General.--In addition to amounts otherwise 
     available, there is appropriated to the National Oceanic and 
     Atmospheric Administration for fiscal year 2022, out of any 
     money in the Treasury not otherwise appropriated, 
     $2,600,000,000, to remain available until September 30, 2026, 
     to provide funding through direct expenditure, contracts, 
     grants, cooperative agreements, or technical assistance to 
     coastal states (as defined in paragraph (4) of section 304 of 
     the Coastal Zone Management Act of 1972 (16 U.S.C. 1453(4))), 
     the District of Columbia, Tribal Governments, nonprofit 
     organizations, local governments, and institutions of higher 
     education (as defined in subsection (a) of section 101 of the 
     Higher Education Act of 1965 (20 U.S.C. 1001(a))), for the 
     conservation, restoration, and protection of coastal and 
     marine habitats and resources, including fisheries, to enable 
     coastal communities to prepare for extreme storms and other 
     changing climate conditions, and for projects that support 
     natural resources that sustain coastal and marine resource 
     dependent communities, and for related administrative 
     expenses.
       (b) Tribal Government Defined.--In this section, the term 
     ``Tribal Government'' means the recognized governing body of 
     any Indian or Alaska Native tribe, band, nation, pueblo, 
     village, community, component band, or component reservation, 
     individually identified (including parenthetically) in the 
     list published most recently as of the date of enactment of 
     this subsection pursuant to section 104 of the Federally 
     Recognized Indian Tribe List Act of 1994 (25 U.S.C. 5131).

     SEC. 40002. FACILITIES OF THE NATIONAL OCEANIC AND 
                   ATMOSPHERIC ADMINISTRATION AND NATIONAL MARINE 
                   SANCTUARIES.

       (a) National Oceanic and Atmospheric Administration 
     Facilities.--In addition to amounts otherwise available, 
     there is appropriated to the National Oceanic and Atmospheric 
     Administration for fiscal year 2022, out of any money in the 
     Treasury not otherwise appropriated, $150,000,000, to remain 
     available until September 30, 2026, for the construction of 
     new facilities (including facilities in need of replacement) 
     including piers, marine operations facilities, and fisheries 
     laboratories.
       (b) National Marine Sanctuaries Facilities.--In addition to 
     amounts otherwise available, there is appropriated to the 
     National Oceanic and Atmospheric Administration for fiscal 
     year 2022, out of any money in the Treasury not otherwise 
     appropriated, $50,000,000, to remain available until 
     September 30, 2026, for the construction of facilities to 
     support the National Marine Sanctuary System established 
     under subsection (c) of section 301 of the National Marine 
     Sanctuaries Act (16 U.S.C. 1431(c)).

     SEC. 40003. NOAA EFFICIENT AND EFFECTIVE REVIEWS.

        In addition to amounts otherwise available, there is 
     appropriated to the National Oceanic and Atmospheric 
     Administration for fiscal year 2022, out of any money in the 
     Treasury not otherwise appropriated, $20,000,000, to remain 
     available until September 30, 2026, to conduct more 
     efficient, accurate, and timely reviews for planning, 
     permitting and approval processes through the hiring and 
     training of personnel, and the purchase of technical and 
     scientific services and new equipment, and to improve agency 
     transparency, accountability, and public engagement.

     SEC. 40004. OCEANIC AND ATMOSPHERIC RESEARCH AND FORECASTING 
                   FOR WEATHER AND CLIMATE.

       (a) Forecasting and Research.--In addition to amounts 
     otherwise available, there is appropriated to the National 
     Oceanic and Atmospheric Administration for fiscal year 2022, 
     out of any money in the Treasury not otherwise appropriated, 
     $150,000,000, to remain available until September 30, 2026, 
     to accelerate advances and improvements in research, 
     observation systems, modeling, forecasting, assessments, and 
     dissemination of information to the public as it pertains to 
     ocean and atmospheric processes related to weather, coasts, 
     oceans, and climate, and to carry out section 102(a) of the 
     Weather Research and Forecasting Innovation Act of 2017 (15 
     U.S.C. 8512(a)), and for related administrative expenses.
       (b) Research Grants and Science Information, Products, and 
     Services.--In addition to amounts otherwise available, there 
     are appropriated to the National Oceanic and Atmospheric 
     Administration for fiscal year 2022, out of any money in the 
     Treasury not otherwise appropriated, to remain available 
     until September 30, 2026, $50,000,000 for competitive grants 
     to fund climate research as it relates to weather, ocean, 
     coastal, and atmospheric processes and conditions, and 
     impacts to marine species and coastal habitat, and for 
     related administrative expenses.

     SEC. 40005. COMPUTING CAPACITY AND RESEARCH FOR WEATHER, 
                   OCEANS, AND CLIMATE.

        In addition to amounts otherwise available, there is 
     appropriated to the National Oceanic and Atmospheric 
     Administration for fiscal year 2022, out of any money in the 
     Treasury not otherwise appropriated, $190,000,000, to remain 
     available until September 30, 2026, for the procurement of 
     additional high-performance computing, data processing 
     capacity, data management, and storage assets, to carry out 
     section 204(a)(2) of the High-Performance Computing Act of 
     1991 (15 U.S.C. 5524(a)(2)), and for transaction agreements 
     authorized under section 301(d)(1)(A) of the Weather Research 
     and Forecasting Innovation Act of 2017 (15 U.S.C. 
     8531(d)(1)(A)), and for related administrative expenses.

     SEC. 40006. ACQUISITION OF HURRICANE FORECASTING AIRCRAFT.

       In addition to amounts otherwise available, there is 
     appropriated to the National Oceanic and Atmospheric 
     Administration for fiscal year 2022, out of any money in the 
     Treasury not otherwise appropriated, $100,000,000, to remain 
     available until September 30, 2026, for the acquisition of 
     hurricane hunter aircraft under section 413(a) of the Weather 
     Research and Forecasting Innovation Act of 2017 (15 U.S.C. 
     8549(a)).

     SEC. 40007. ALTERNATIVE FUEL AND LOW-EMISSION AVIATION 
                   TECHNOLOGY PROGRAM.

       (a) Appropriation and Establishment.--For purposes of 
     establishing a competitive grant program for eligible 
     entities to carry out projects located in the United States 
     that produce, transport, blend, or store sustainable aviation 
     fuel, or develop, demonstrate, or apply low-emission aviation 
     technologies, in addition to amounts otherwise available, 
     there are appropriated to the Secretary for fiscal year 2022, 
     out of any money in the Treasury not otherwise appropriated, 
     to remain available until September 30, 2026--
       (1) $244,530,000 for projects relating to the production, 
     transportation, blending, or storage of sustainable aviation 
     fuel;
       (2) $46,530,000 for projects relating to low-emission 
     aviation technologies; and
       (3) $5,940,000 to fund the award of grants under this 
     section, and oversight of the program, by the Secretary.
       (b) Considerations.--In carrying out subsection (a), the 
     Secretary shall consider, with respect to a proposed 
     project--
       (1) the capacity for the eligible entity to increase the 
     domestic production and deployment of sustainable aviation 
     fuel or the use of low-emission aviation technologies among 
     the United States commercial aviation and aerospace industry;
       (2) the projected greenhouse gas emissions from such 
     project, including emissions resulting from the development 
     of the project, and the potential the project has to reduce 
     or displace, on a lifecycle basis, United States greenhouse 
     gas emissions associated with air travel;
       (3) the capacity to create new jobs and develop supply 
     chain partnerships in the United States;
       (4) for projects related to the production of sustainable 
     aviation fuel, the projected lifecycle greenhouse gas 
     emissions benefits from the proposed project, which shall 
     include feedstock and fuel production and potential direct 
     and indirect greenhouse gas emissions (including resulting 
     from changes in land use); and

[[Page S3977]]

       (5) the benefits of ensuring a diversity of feedstocks for 
     sustainable aviation fuel, including the use of waste carbon 
     oxides and direct air capture.
       (c) Cost Share.--The Federal share of the cost of a project 
     carried out using grant funds under subsection (a) shall be 
     75 percent of the total proposed cost of the project, except 
     that such Federal share shall increase to 90 percent of the 
     total proposed cost of the project if the eligible entity is 
     a small hub airport or nonhub airport, as such terms are 
     defined in section 47102 of title 49, United States Code.
       (d) Fuel Emissions Reduction Test.--For purposes of clause 
     (ii) of subsection (e)(7)(E), the Secretary shall, not later 
     than 2 years after the date of enactment of this section, 
     adopt at least 1 methodology for testing lifecycle greenhouse 
     gas emissions that meets the requirements of such clause.
       (e) Definitions.--In this section:
       (1) Eligible entity.--The term ``eligible entity'' means--
       (A) a State or local government, including the District of 
     Columbia, other than an airport sponsor;
       (B) an air carrier;
       (C) an airport sponsor;
       (D) an accredited institution of higher education;
       (E) a research institution;
       (F) a person or entity engaged in the production, 
     transportation, blending, or storage of sustainable aviation 
     fuel in the United States or feedstocks in the United States 
     that could be used to produce sustainable aviation fuel;
       (G) a person or entity engaged in the development, 
     demonstration, or application of low-emission aviation 
     technologies; or
       (H) nonprofit entities or nonprofit consortia with 
     experience in sustainable aviation fuels, low-emission 
     aviation technologies, or other clean transportation research 
     programs.
       (2) Feedstock.--The term ``feedstock'' means sources of 
     hydrogen and carbon not originating from unrefined or refined 
     petrochemicals.
       (3) Induced land-use change values.--The term ``induced 
     land-use change values'' means the greenhouse gas emissions 
     resulting from the conversion of land to the production of 
     feedstocks and from the conversion of other land due to the 
     displacement of crops or animals for which the original land 
     was previously used.
       (4) Lifecycle greenhouse gas emissions.--The term 
     ``lifecycle greenhouse gas emissions'' means the combined 
     greenhouse gas emissions from feedstock production, 
     collection of feedstock, transportation of feedstock to fuel 
     production facilities, conversion of feedstock to fuel, 
     transportation and distribution of fuel, and fuel combustion 
     in an aircraft engine, as well as from induced land-use 
     change values.
       (5) Low-emission aviation technologies.--The term ``low-
     emission aviation technologies'' means technologies, produced 
     in the United States, that significantly--
       (A) improve aircraft fuel efficiency;
       (B) increase utilization of sustainable aviation fuel; or
       (C) reduce greenhouse gas emissions produced during 
     operation of civil aircraft.
       (6) Secretary.--The term ``Secretary'' means the Secretary 
     of Transportation.
       (7) Sustainable aviation fuel.--The term ``sustainable 
     aviation fuel'' means liquid fuel, produced in the United 
     States, that--
       (A) consists of synthesized hydrocarbons;
       (B) meets the requirements of--
       (i) ASTM International Standard D7566; or
       (ii) the co-processing provisions of ASTM International 
     Standard D1655, Annex A1 (or such successor standard);
       (C) is derived from biomass (in a similar manner as such 
     term is defined in section 45K(c)(3) of the Internal Revenue 
     Code of 1986), waste streams, renewable energy sources, or 
     gaseous carbon oxides;
       (D) is not derived from palm fatty acid distillates; and
       (E) achieves at least a 50 percent lifecycle greenhouse gas 
     emissions reduction in comparison with petroleum-based jet 
     fuel, as determined by a test that shows--
       (i) the fuel production pathway achieves at least a 50 
     percent reduction of the aggregate attributional core 
     lifecycle emissions and the induced land-use change values 
     under a lifecycle methodology for sustainable aviation fuels 
     similar to that adopted by the International Civil Aviation 
     Organization with the agreement of the United States; or
       (ii) the fuel production pathway achieves at least a 50 
     percent reduction of the aggregate attributional core 
     lifecycle greenhouse gas emissions values and the induced 
     land-use change values under another methodology that the 
     Secretary determines is--

       (I) reflective of the latest scientific understanding of 
     lifecycle greenhouse gas emissions; and
       (II) as stringent as the requirement under clause (i).

           TITLE V--COMMITTEE ON ENERGY AND NATURAL RESOURCES

                           Subtitle A--Energy

                       PART 1--GENERAL PROVISIONS

     SEC. 50111. DEFINITIONS.

       In this subtitle:
       (1) Greenhouse gas.--The term ``greenhouse gas'' has the 
     meaning given the term in section 1610(a) of the Energy 
     Policy Act of 1992 (42 U.S.C. 13389(a)).
       (2) Secretary.--The term ``Secretary'' means the Secretary 
     of Energy.
       (3) State.--The term ``State'' means a State, the District 
     of Columbia, and a United States Insular Area (as that term 
     is defined in section 50211).
       (4) State energy office.--The term ``State energy office'' 
     has the meaning given the term in section 124(a) of the 
     Energy Policy Act of 2005 (42 U.S.C. 15821(a)).
       (5) State energy program.--The term ``State Energy 
     Program'' means the State Energy Program established pursuant 
     to part D of title III of the Energy Policy and Conservation 
     Act (42 U.S.C. 6321 through 6326).

       PART 2--RESIDENTIAL EFFICIENCY AND ELECTRIFICATION REBATES

     SEC. 50121. HOME ENERGY PERFORMANCE-BASED, WHOLE-HOUSE 
                   REBATES.

       (a) Appropriation.--
       (1) In general.--In addition to amounts otherwise 
     available, there is appropriated to the Secretary for fiscal 
     year 2022, out of any money in the Treasury not otherwise 
     appropriated, $4,300,000,000, to remain available through 
     September 30, 2031, to carry out a program to award grants to 
     State energy offices to develop and implement a HOMES rebate 
     program.
       (2) Allocation of funds.--
       (A) In general.--The Secretary shall reserve funds made 
     available under paragraph (1) for each State energy office--
       (i) in accordance with the allocation formula for the State 
     Energy Program in effect on January 1, 2022; and
       (ii) to be distributed to a State energy office if the 
     application of the State energy office under subsection (b) 
     is approved.
       (B) Additional funds.--Not earlier than 2 years after the 
     date of enactment of this Act, any money reserved under 
     subparagraph (A) but not distributed under clause (ii) of 
     that subparagraph shall be redistributed to the State energy 
     offices operating a HOMES rebate program using a grant 
     received under this section in proportion to the amount 
     distributed to those State energy offices under subparagraph 
     (A)(ii).
       (3) Administrative expenses.--Of the funds made available 
     under paragraph (1), the Secretary shall use not more than 3 
     percent for--
       (A) administrative purposes; and
       (B) providing technical assistance relating to activities 
     carried out under this section.
       (b) Application.--A State energy office seeking a grant 
     under this section shall submit to the Secretary an 
     application that includes a plan to implement a HOMES rebate 
     program, including a plan--
       (1) to use procedures, as approved by the Secretary, for 
     determining the reductions in home energy use resulting from 
     the implementation of a home energy efficiency retrofit that 
     is calibrated to historical energy usage for a home 
     consistent with BPI 2400, for purposes of modeled performance 
     home rebates;
       (2) to use open-source advanced measurement and 
     verification software, as approved by the Secretary, for 
     determining and documenting the monthly and hourly (if 
     available) weather-normalized energy use of a home before and 
     after the implementation of a home energy efficiency 
     retrofit, for purposes of measured performance home rebates;
       (3) to value savings based on time, location, or greenhouse 
     gas emissions;
       (4) for quality monitoring to ensure that each home energy 
     efficiency retrofit for which a rebate is provided is 
     documented in a certificate that--
       (A) is provided by the contractor and certified by a third 
     party to the homeowner; and
       (B) details the work performed, the equipment and materials 
     installed, and the projected energy savings or energy 
     generation to support accurate valuation of the retrofit;
       (5) to provide a contractor performing a home energy 
     efficiency retrofit or an aggregator who has the right to 
     claim a rebate $200 for each home located in an underserved 
     community that receives a home energy efficiency retrofit for 
     which a rebate is provided under the program; and
       (6) to ensure that a homeowner or aggregator does not 
     receive a rebate for the same upgrade through both a HOMES 
     rebate program and any other Federal grant or rebate program, 
     pursuant to subsection (c)(8).
       (c) HOMES Rebate Program.--
       (1) In general.--A HOMES rebate program carried out by a 
     State energy office receiving a grant pursuant to this 
     section shall provide rebates to homeowners and aggregators 
     for whole-house energy saving retrofits begun on or after the 
     date of enactment of this Act and completed by not later than 
     September 30, 2031.
       (2) Amount of rebate.--Subject to paragraph (3)(B), under a 
     HOMES rebate program, the amount of a rebate shall not 
     exceed--
       (A) for individuals and aggregators carrying out energy 
     efficiency upgrades of single-family homes--
       (i) in the case of a retrofit that achieves modeled energy 
     system savings of not less than 20 percent but less than 35 
     percent, the lesser of--

       (I) $2,000; and
       (II) 50 percent of the project cost;

       (ii) in the case of a retrofit that achieves modeled energy 
     system savings of not less than 35 percent, the lesser of--

       (I) $4,000; and
       (II) 50 percent of the project cost; and

       (iii) for measured energy savings, in the case of a home or 
     portfolio of homes that

[[Page S3978]]

     achieves energy savings of not less than 15 percent--

       (I) a payment rate per kilowatt hour saved, or kilowatt 
     hour-equivalent saved, equal to $2,000 for a 20 percent 
     reduction of energy use for the average home in the State; or
       (II) 50 percent of the project cost;

       (B) for multifamily building owners and aggregators 
     carrying out energy efficiency upgrades of multifamily 
     buildings--
       (i) in the case of a retrofit that achieves modeled energy 
     system savings of not less than 20 percent but less than 35 
     percent, $2,000 per dwelling unit, with a maximum of $200,000 
     per multifamily building;
       (ii) in the case of a retrofit that achieves modeled energy 
     system savings of not less than 35 percent, $4,000 per 
     dwelling unit, with a maximum of $400,000 per multifamily 
     building; or
       (iii) for measured energy savings, in the case of a 
     multifamily building or portfolio of multifamily buildings 
     that achieves energy savings of not less than 15 percent--

       (I) a payment rate per kilowatt hour saved, or kilowatt 
     hour-equivalent saved, equal to $2,000 for a 20 percent 
     reduction of energy use per dwelling unit for the average 
     multifamily building in the State; or
       (II) 50 percent of the project cost; and

       (C) for individuals and aggregators carrying out energy 
     efficiency upgrades of a single-family home occupied by a 
     low- or moderate-income household or a multifamily building 
     not less than 50 percent of the dwelling units of which are 
     occupied by low- or moderate-income households--
       (i) in the case of a retrofit that achieves modeled energy 
     system savings of not less than 20 percent but less than 35 
     percent, the lesser of--

       (I) $4,000 per single-family home or dwelling unit; and
       (II) 80 percent of the project cost;

       (ii) in the case of a retrofit that achieves modeled energy 
     system savings of not less than 35 percent, the lesser of--

       (I) $8,000 per single-family home or dwelling unit; and
       (II) 80 percent of the project cost; and

       (iii) for measured energy savings, in the case of a single-
     family home, multifamily building, or portfolio of single-
     family homes or multifamily buildings that achieves energy 
     savings of not less than 15 percent--

       (I) a payment rate per kilowatt hour saved, or kilowatt 
     hour-equivalent saved, equal to $4,000 for a 20 percent 
     reduction of energy use per single-family home or dwelling 
     unit, as applicable, for the average single-family home or 
     multifamily building in the State; or
       (II) 80 percent of the project cost.

       (3) Rebates to low- or moderate-income households.--
       (A) In general.--A State energy office carrying out a HOMES 
     rebate program using a grant awarded pursuant to this section 
     is encouraged to provide rebates, to the maximum extent 
     practicable, to low- or moderate-income households.
       (B) Increase in rebate amount.--On approval from the 
     Secretary, notwithstanding paragraph (2), a State energy 
     office carrying out a HOMES rebate program using a grant 
     awarded pursuant to this section may increase rebate amounts 
     for low- or moderate-income households.
       (4) Use of funds.--A State energy office that receives a 
     grant pursuant to this section may use not more than 20 
     percent of the grant amount for planning, administration, or 
     technical assistance related to a HOMES rebate program.
       (5) Data access guidelines.--The Secretary shall develop 
     and publish guidelines for States relating to residential 
     electric and natural gas energy data sharing.
       (6) Coordination.--In carrying out this section, the 
     Secretary shall coordinate with State energy offices to 
     ensure that HOMES rebate programs for which grants are 
     provided under this section are developed to achieve maximum 
     greenhouse gas emissions reductions and household energy and 
     costs savings regardless of source energy.
       (7) Exemption.--Activities carried out by a State energy 
     office using a grant awarded pursuant to this section shall 
     not be subject to the expenditure prohibitions and 
     limitations described in section 420.18 of title 10, Code of 
     Federal Regulations.
       (8) Prohibition on combining rebates.--A rebate provided by 
     a State energy office under a HOMES rebate program may not be 
     combined with any other Federal grant or rebate, including a 
     rebate provided under a high-efficiency electric home rebate 
     program (as defined in section 50122(d)), for the same single 
     upgrade.
       (d) Definitions.--In this section:
       (1) HOMES rebate program.--The term ``HOMES rebate 
     program'' means a Home Owner Managing Energy Savings rebate 
     program established by a State energy office as part of an 
     approved State energy conservation plan under the State 
     Energy Program.
       (2) Low- or moderate-income household.--The term ``low- or 
     moderate-income household'' means an individual or family the 
     total annual income of which is less than 80 percent of the 
     median income of the area in which the individual or family 
     resides, as reported by the Department of Housing and Urban 
     Development, including an individual or family that has 
     demonstrated eligibility for another Federal program with 
     income restrictions equal to or below 80 percent of area 
     median income.
       (3) Underserved community.--The term ``underserved 
     community'' means--
       (A) a community located in a ZIP code that includes 1 or 
     more census tracts that include--
       (i) a low-income community; or
       (ii) a community of racial or ethnic minority 
     concentration; and
       (B) any other community that the Secretary determines is 
     disproportionately vulnerable to, or bears a disproportionate 
     burden of, any combination of economic, social, and 
     environmental stressors.

     SEC. 50122. HIGH-EFFICIENCY ELECTRIC HOME REBATE PROGRAM.

       (a) Appropriations.--
       (1) Funds to state energy offices and indian tribes.--In 
     addition to amounts otherwise available, there is 
     appropriated to the Secretary for fiscal year 2022, out of 
     any money in the Treasury not otherwise appropriated, to 
     carry out a program--
       (A) to award grants to State energy offices to develop and 
     implement a high-efficiency electric home rebate program in 
     accordance with subsection (c), $4,275,000,000, to remain 
     available through September 30, 2031; and
       (B) to award grants to Indian Tribes to develop and 
     implement a high-efficiency electric home rebate program in 
     accordance with subsection (c), $225,000,000, to remain 
     available through September 30, 2031.
       (2) Allocation of funds.--
       (A) State energy offices.--The Secretary shall reserve 
     funds made available under paragraph (1)(A) for each State 
     energy office--
       (i) in accordance with the allocation formula for the State 
     Energy Program in effect on January 1, 2022; and
       (ii) to be distributed to a State energy office if the 
     application of the State energy office under subsection (b) 
     is approved.
       (B) Indian tribes.--The Secretary shall reserve funds made 
     available under paragraph (1)(B)--
       (i) in a manner determined appropriate by the Secretary; 
     and
       (ii) to be distributed to an Indian Tribe if the 
     application of the Indian Tribe under subsection (b) is 
     approved.
       (C) Additional funds.--Not earlier than 2 years after the 
     date of enactment of this Act, any money reserved under--
       (i) subparagraph (A) but not distributed under clause (ii) 
     of that subparagraph shall be redistributed to the State 
     energy offices operating a high-efficiency electric home 
     rebate program in proportion to the amount distributed to 
     those State energy offices under that clause; and
       (ii) subparagraph (B) but not distributed under clause (ii) 
     of that subparagraph shall be redistributed to the Indian 
     Tribes operating a high-efficiency electric home rebate 
     program in proportion to the amount distributed to those 
     Indian Tribes under that clause.
       (3) Administrative expenses.--Of the funds made available 
     under paragraph (1), the Secretary shall use not more than 3 
     percent for--
       (A) administrative purposes; and
       (B) providing technical assistance relating to activities 
     carried out under this section.
       (b) Application.--A State energy office or Indian Tribe 
     seeking a grant under the program shall submit to the 
     Secretary an application that includes a plan to implement a 
     high-efficiency electric home rebate program, including--
       (1) a plan to verify the income eligibility of eligible 
     entities seeking a rebate for a qualified electrification 
     project;
       (2) a plan to allow rebates for qualified electrification 
     projects at the point of sale in a manner that ensures that 
     the income eligibility of an eligible entity seeking a rebate 
     may be verified at the point of sale;
       (3) a plan to ensure that an eligible entity does not 
     receive a rebate for the same qualified electrification 
     project through both a high-efficiency electric home rebate 
     program and any other Federal grant or rebate program, 
     pursuant to subsection (c)(8); and
       (4) any additional information that the Secretary may 
     require.
       (c) High-efficiency Electric Home Rebate Program.--
       (1) In general.--Under the program, the Secretary shall 
     award grants to State energy offices and Indian Tribes to 
     establish a high-efficiency electric home rebate program 
     under which rebates shall be provided to eligible entities 
     for qualified electrification projects.
       (2) Guidelines.--The Secretary shall prescribe guidelines 
     for high-efficiency electric home rebate programs, including 
     guidelines for providing point of sale rebates in a manner 
     consistent with the income eligibility requirements under 
     this section.
       (3) Amount of rebate.--
       (A) Appliance upgrades.--The amount of a rebate provided 
     under a high-efficiency electric home rebate program for the 
     purchase of an appliance under a qualified electrification 
     project shall be--
       (i) not more than $1,750 for a heat pump water heater;
       (ii) not more than $8,000 for a heat pump for space heating 
     or cooling; and
       (iii) not more than $840 for--

       (I) an electric stove, cooktop, range, or oven; or
       (II) an electric heat pump clothes dryer.

       (B) Nonappliance upgrades.--The amount of a rebate provided 
     under a high-efficiency electric home rebate program for the 
     purchase of a nonappliance upgrade under a qualified 
     electrification project shall be--
       (i) not more than $4,000 for an electric load service 
     center upgrade;

[[Page S3979]]

       (ii) not more than $1,600 for insulation, air sealing, and 
     ventilation; and
       (iii) not more than $2,500 for electric wiring.
       (C) Maximum rebate.--An eligible entity receiving multiple 
     rebates under this section may receive not more than a total 
     of $14,000 in rebates.
       (4) Limitations.--A rebate provided using funding under 
     this section shall not exceed--
       (A) in the case of an eligible entity described in 
     subsection (d)(1)(A)--
       (i) 50 percent of the cost of the qualified electrification 
     project for a household the annual income of which is not 
     less than 80 percent and not greater than 150 percent of the 
     area median income; and
       (ii) 100 percent of the cost of the qualified 
     electrification project for a household the annual income of 
     which is less than 80 percent of the area median income;
       (B) in the case of an eligible entity described in 
     subsection (d)(1)(B)--
       (i) 50 percent of the cost of the qualified electrification 
     project for a multifamily building not less than 50 percent 
     of the residents of which are households the annual income of 
     which is not less than 80 percent and not greater than 150 
     percent of the area median income; and
       (ii) 100 percent of the cost of the qualified 
     electrification project for a multifamily building not less 
     than 50 percent of the residents of which are households the 
     annual income of which is less than 80 percent of the area 
     median income; or
       (C) in the case of an eligible entity described in 
     subsection (d)(1)(C)--
       (i) 50 percent of the cost of the qualified electrification 
     project for a household--

       (I) on behalf of which the eligible entity is working; and
       (II) the annual income of which is not less than 80 percent 
     and not greater than 150 percent of the area median income; 
     and

       (ii) 100 percent of the cost of the qualified 
     electrification project for a household--

       (I) on behalf of which the eligible entity is working; and
       (II) the annual income of which is less than 80 percent of 
     the area median income.

       (5) Amount for installation of upgrades.--
       (A) In general.--In the case of an eligible entity 
     described in subsection (d)(1)(C) that receives a rebate 
     under the program and performs the installation of the 
     applicable qualified electrification project, a State energy 
     office or Indian Tribe shall provide to that eligible entity, 
     in addition to the rebate, an amount that--
       (i) does not exceed $500; and
       (ii) is commensurate with the scale of the upgrades 
     installed as part of the qualified electrification project 
     and any enhanced labor practices, as determined by the 
     Secretary.
       (B) Treatment.--An amount received under subparagraph (A) 
     by an eligible entity described in that subparagraph shall 
     not be subject to the requirement under paragraph (6).
       (6) Requirement.--An eligible entity described in 
     subparagraph (C) of subsection (d)(1) shall discount the 
     amount of a rebate received for a qualified electrification 
     project from any amount charged by that eligible entity to 
     the eligible entity described in subparagraph (A) or (B) of 
     that subsection on behalf of which the qualified 
     electrification project is carried out.
       (7) Exemption.--Activities carried out by a State energy 
     office using a grant provided under the program shall not be 
     subject to the expenditure prohibitions and limitations 
     described in section 420.18 of title 10, Code of Federal 
     Regulations.
       (8) Prohibition on combining rebates.--A rebate provided by 
     a State energy office or Indian Tribe under a high-efficiency 
     electric home rebate program may not be combined with any 
     other Federal grant or rebate, including a rebate provided 
     under a HOMES rebate program (as defined in section 
     50121(d)), for the same qualified electrification project.
       (9) Administrative costs.--A State energy office or Indian 
     Tribe that receives a grant under the program shall use not 
     more than 20 percent of the grant amount for planning, 
     administration, or technical assistance relating to a high-
     efficiency electric home rebate program.
       (d) Definitions.--In this section:
       (1) Eligible entity.--The term ``eligible entity'' means--
       (A) a low- or moderate-income household;
       (B) an individual or entity that owns a multifamily 
     building not less than 50 percent of the residents of which 
     are low- or moderate-income households; and
       (C) a governmental, commercial, or nonprofit entity, as 
     determined by the Secretary, carrying out a qualified 
     electrification project on behalf of an entity described in 
     subparagraph (A) or (B).
       (2) High-efficiency electric home rebate program.--The term 
     ``high-efficiency electric home rebate program'' means a 
     rebate program carried out by a State energy office or Indian 
     Tribe pursuant to subsection (c) using a grant received under 
     the program.
       (3) Indian tribe.--The term ``Indian Tribe'' has the 
     meaning given the term in section 4 of the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 5304).
       (4) Low- or moderate-income household.--The term ``low- or 
     moderate-income household'' means an individual or family the 
     total annual income of which is less than 150 percent of the 
     median income of the area in which the individual or family 
     resides, as reported by the Department of Housing and Urban 
     Development, including an individual or family that has 
     demonstrated eligibility for another Federal program with 
     income restrictions equal to or below 150 percent of area 
     median income.
       (5) Program.--The term ``program'' means the program 
     carried out by the Secretary under subsection (a)(1).
       (6) Qualified electrification project.--
       (A) In general.--The term ``qualified electrification 
     project'' means a project that--
       (i) includes the purchase and installation of--

       (I) an electric heat pump water heater;
       (II) an electric heat pump for space heating and cooling;
       (III) an electric stove, cooktop, range, or oven;
       (IV) an electric heat pump clothes dryer;
       (V) an electric load service center;
       (VI) insulation;
       (VII) air sealing and materials to improve ventilation; or
       (VIII) electric wiring;

       (ii) with respect to any appliance described in clause (i), 
     the purchase of which is carried out--

       (I) as part of new construction;
       (II) to replace a nonelectric appliance; or
       (III) as a first-time purchase with respect to that 
     appliance; and

       (iii) is carried out at, or relating to, a single-family 
     home or multifamily building, as applicable and defined by 
     the Secretary.
       (B) Exclusions.--The term ``qualified electrification 
     project'' does not include any project with respect to which 
     the appliance, system, equipment, infrastructure, component, 
     or other item described in subclauses (I) through (VIII) of 
     subparagraph (A)(i) is not certified under the Energy Star 
     program established by section 324A of the Energy Policy and 
     Conservation Act (42 U.S.C. 6294a), if applicable.

     SEC. 50123. STATE-BASED HOME ENERGY EFFICIENCY CONTRACTOR 
                   TRAINING GRANTS.

       (a) Appropriation.--In addition to amounts otherwise 
     available, there is appropriated to the Secretary for fiscal 
     year 2022, out of any money in the Treasury not otherwise 
     appropriated, $200,000,000, to remain available through 
     September 30, 2031, to carry out a program to provide 
     financial assistance to States to develop and implement a 
     State program described in section 362(d)(13) of the Energy 
     Policy and Conservation Act (42 U.S.C. 6322(d)(13)), which 
     shall provide training and education to contractors involved 
     in the installation of home energy efficiency and 
     electrification improvements, including improvements eligible 
     for rebates under a HOMES rebate program (as defined in 
     section 50121(d)) or a high-efficiency electric home rebate 
     program (as defined in section 50122(d)), as part of an 
     approved State energy conservation plan under the State 
     Energy Program.
       (b) Use of Funds.--A State may use amounts received under 
     subsection (a)--
       (1) to reduce the cost of training contractor employees;
       (2) to provide testing and certification of contractors 
     trained and educated under a State program developed and 
     implemented pursuant to subsection (a); and
       (3) to partner with nonprofit organizations to develop and 
     implement a State program pursuant to subsection (a).
       (c) Administrative Expenses.--Of the amounts received by a 
     State under subsection (a), a State shall use not more than 
     10 percent for administrative expenses associated with 
     developing and implementing a State program pursuant to that 
     subsection.

               PART 3--BUILDING EFFICIENCY AND RESILIENCE

     SEC. 50131. ASSISTANCE FOR LATEST AND ZERO BUILDING ENERGY 
                   CODE ADOPTION.

       (a) Appropriation.--In addition to amounts otherwise 
     available, there is appropriated to the Secretary for fiscal 
     year 2022, out of any money in the Treasury not otherwise 
     appropriated--
       (1) $330,000,000, to remain available through September 30, 
     2029, to carry out activities under part D of title III of 
     the Energy Policy and Conservation Act (42 U.S.C. 6321 
     through 6326) in accordance with subsection (b); and
       (2) $670,000,000, to remain available through September 30, 
     2029, to carry out activities under part D of title III of 
     the Energy Policy and Conservation Act (42 U.S.C. 6321 
     through 6326) in accordance with subsection (c).
       (b) Latest Building Energy Code.--The Secretary shall use 
     funds made available under subsection (a)(1) for grants to 
     assist States, and units of local government that have 
     authority to adopt building codes--
       (1) to adopt--
       (A) a building energy code (or codes) for residential 
     buildings that meets or exceeds the 2021 International Energy 
     Conservation Code, or achieves equivalent or greater energy 
     savings;
       (B) a building energy code (or codes) for commercial 
     buildings that meets or exceeds the ANSI/ASHRAE/IES Standard 
     90.1-2019, or achieves equivalent or greater energy savings; 
     or
       (C) any combination of building energy codes described in 
     subparagraph (A) or (B); and
       (2) to implement a plan for the jurisdiction to achieve 
     full compliance with any building energy code adopted under 
     paragraph (1) in new and renovated residential or commercial

[[Page S3980]]

     buildings, as applicable, which plan shall include active 
     training and enforcement programs and measurement of the rate 
     of compliance each year.
       (c) Zero Energy Code.--The Secretary shall use funds made 
     available under subsection (a)(2) for grants to assist 
     States, and units of local government that have authority to 
     adopt building codes--
       (1) to adopt a building energy code (or codes) for 
     residential and commercial buildings that meets or exceeds 
     the zero energy provisions in the 2021 International Energy 
     Conservation Code or an equivalent stretch code; and
       (2) to implement a plan for the jurisdiction to achieve 
     full compliance with any building energy code adopted under 
     paragraph (1) in new and renovated residential and commercial 
     buildings, which plan shall include active training and 
     enforcement programs and measurement of the rate of 
     compliance each year.
       (d) State Match.--The State cost share requirement under 
     the item relating to ``Department of Energy--Energy 
     Conservation'' in title II of the Department of the Interior 
     and Related Agencies Appropriations Act, 1985 (42 U.S.C. 
     6323a; 98 Stat. 1861), shall not apply to assistance provided 
     under this section.
       (e) Administrative Costs.--Of the amounts made available 
     under this section, the Secretary shall reserve 5 percent for 
     administrative costs necessary to carry out this section.

                  PART 4--DOE LOAN AND GRANT PROGRAMS

     SEC. 50141. FUNDING FOR DEPARTMENT OF ENERGY LOAN PROGRAMS 
                   OFFICE.

       (a) Commitment Authority.--In addition to commitment 
     authority otherwise available and previously provided, the 
     Secretary may make commitments to guarantee loans for 
     eligible projects under section 1703 of the Energy Policy Act 
     of 2005 (42 U.S.C. 16513), up to a total principal amount of 
     $40,000,000,000, to remain available through September 30, 
     2026.
       (b) Appropriation.--In addition to amounts otherwise 
     available and previously provided, there is appropriated to 
     the Secretary for fiscal year 2022, out of any money in the 
     Treasury not otherwise appropriated, $3,600,000,000, to 
     remain available through September 30, 2026, for the costs of 
     guarantees made under section 1703 of the Energy Policy Act 
     of 2005 (42 U.S.C. 16513), using the loan guarantee authority 
     provided under subsection (a) of this section.
       (c) Administrative Expenses.--Of the amount made available 
     under subsection (b), the Secretary shall reserve 3 percent 
     for administrative expenses to carry out title XVII of the 
     Energy Policy Act of 2005 and for carrying out section 
     1702(h)(3) of such Act (42 U.S.C. 16512(h)(3)).
       (d) Limitations.--
       (1) Certification.--None of the amounts made available 
     under this section for loan guarantees shall be available for 
     any project unless the President has certified in advance in 
     writing that the loan guarantee and the project comply with 
     the provisions under this section.
       (2) Denial of double benefit.--Except as provided in 
     paragraph (3), none of the amounts made available under this 
     section for loan guarantees shall be available for 
     commitments to guarantee loans for any projects under which 
     funds, personnel, or property (tangible or intangible) of any 
     Federal agency, instrumentality, personnel, or affiliated 
     entity are expected to be used (directly or indirectly) 
     through acquisitions, contracts, demonstrations, exchanges, 
     grants, incentives, leases, procurements, sales, other 
     transaction authority, or other arrangements to support the 
     project or to obtain goods or services from the project.
       (3) Exception.--Paragraph (2) shall not preclude the use of 
     the loan guarantee authority provided under this section for 
     commitments to guarantee loans for--
       (A) projects benefitting from otherwise allowable Federal 
     tax benefits;
       (B) projects benefitting from being located on Federal land 
     pursuant to a lease or right-of-way agreement for which all 
     consideration for all uses is--
       (i) paid exclusively in cash;
       (ii) deposited in the Treasury as offsetting receipts; and
       (iii) equal to the fair market value;
       (C) projects benefitting from the Federal insurance program 
     under section 170 of the Atomic Energy Act of 1954 (42 U.S.C. 
     2210); or
       (D) electric generation projects using transmission 
     facilities owned or operated by a Federal Power Marketing 
     Administration or the Tennessee Valley Authority that have 
     been authorized, approved, and financed independent of the 
     project receiving the guarantee.
       (e) Guarantee.--Section 1701(4)(A) of the Energy Policy Act 
     of 2005 (42 U.S.C. 16511(4)(A)) is amended by inserting ``, 
     except that a loan guarantee may guarantee any debt 
     obligation of a non-Federal borrower to any Eligible Lender 
     (as defined in section 609.2 of title 10, Code of Federal 
     Regulations)'' before the period at the end.
       (f) Source of Payments.--Section 1702(b) of the Energy 
     Policy Act of 2005 (42 U.S.C. 16512(b)(2)) is amended by 
     adding at the end the following:
       ``(3) Source of payments.--The source of a payment received 
     from a borrower under subparagraph (A) or (B) of paragraph 
     (2) may not be a loan or other debt obligation that is made 
     or guaranteed by the Federal Government.''.

     SEC. 50142. ADVANCED TECHNOLOGY VEHICLE MANUFACTURING.

       (a) Appropriation.--In addition to amounts otherwise 
     available, there is appropriated to the Secretary for fiscal 
     year 2022, out of any money in the Treasury not otherwise 
     appropriated, $3,000,000,000, to remain available through 
     September 30, 2028, for the costs of providing direct loans 
     under section 136(d) of the Energy Independence and Security 
     Act of 2007 (42 U.S.C. 17013(d)):  Provided, That funds 
     appropriated by this section may be used for the costs of 
     providing direct loans for reequipping, expanding, or 
     establishing a manufacturing facility in the United States to 
     produce, or for engineering integration performed in the 
     United States of, advanced technology vehicles described in 
     subparagraph (C), (D), (E), or (F) of section 136(a)(1) of 
     such Act (42 U.S.C. 17013(a)(1)) only if such advanced 
     technology vehicles emit, under any possible operational mode 
     or condition, low or zero exhaust emissions of greenhouse 
     gases.
       (b) Administrative Costs.--The Secretary shall reserve 
     $25,000,000 of amounts made available under subsection (a) 
     for administrative costs of providing loans as described in 
     subsection (a).
       (c) Elimination of Loan Program Cap.--Section 136(d)(1) of 
     the Energy Independence and Security Act of 2007 (42 U.S.C. 
     17013(d)(1)) is amended by striking ``a total of not more 
     than $25,000,000,000 in''.

     SEC. 50143. DOMESTIC MANUFACTURING CONVERSION GRANTS.

       (a) Appropriation.--In addition to amounts otherwise 
     available, there is appropriated to the Secretary for fiscal 
     year 2022, out of any money in the Treasury not otherwise 
     appropriated, $2,000,000,000, to remain available through 
     September 30, 2031, to provide grants for domestic production 
     of efficient hybrid, plug-in electric hybrid, plug-in 
     electric drive, and hydrogen fuel cell electric vehicles, in 
     accordance with section 712 of the Energy Policy Act of 2005 
     (42 U.S.C. 16062).
       (b) Cost Share.--The Secretary shall require a recipient of 
     a grant provided under subsection (a) to provide not less 
     than 50 percent of the cost of the project carried out using 
     the grant.
       (c) Administrative Costs.--The Secretary shall reserve 3 
     percent of amounts made available under subsection (a) for 
     administrative costs of making grants described in such 
     subsection (a) pursuant to section 712 of the Energy Policy 
     Act of 2005 (42 U.S.C. 16062).

     SEC. 50144. ENERGY INFRASTRUCTURE REINVESTMENT FINANCING.

       (a) Appropriation.--In addition to amounts otherwise 
     available, there is appropriated to the Secretary for fiscal 
     year 2022, out of any money in the Treasury not otherwise 
     appropriated, $5,000,000,000, to remain available through 
     September 30, 2026, to carry out activities under section 
     1706 of the Energy Policy Act of 2005.
       (b) Commitment Authority.--The Secretary may make, through 
     September 30, 2026, commitments to guarantee loans for 
     projects under section 1706 of the Energy Policy Act of 2005 
     the total principal amount of which is not greater than 
     $250,000,000,000, subject to the limitations that apply to 
     loan guarantees under section 50141(d).
       (c) Energy Infrastructure Reinvestment Financing.--Title 
     XVII of the Energy Policy Act of 2005 is amended by inserting 
     after section 1705 (42 U.S.C. 16516) the following:

     ``SEC. 1706. ENERGY INFRASTRUCTURE REINVESTMENT FINANCING.

       ``(a) In General.--Notwithstanding section 1703, the 
     Secretary may make guarantees, including refinancing, under 
     this section only for projects that--
       ``(1) retool, repower, repurpose, or replace energy 
     infrastructure that has ceased operations; or
       ``(2) enable operating energy infrastructure to avoid, 
     reduce, utilize, or sequester air pollutants or anthropogenic 
     emissions of greenhouse gases.
       ``(b) Inclusion.--A project under subsection (a) may 
     include the remediation of environmental damage associated 
     with energy infrastructure.
       ``(c) Requirement.--A project under subsection (a)(1) that 
     involves electricity generation through the use of fossil 
     fuels shall be required to have controls or technologies to 
     avoid, reduce, utilize, or sequester air pollutants and 
     anthropogenic emissions of greenhouse gases.
       ``(d) Application.--To apply for a guarantee under this 
     section, an applicant shall submit to the Secretary an 
     application at such time, in such manner, and containing such 
     information as the Secretary may require, including--
       ``(1) a detailed plan describing the proposed project;
       ``(2) an analysis of how the proposed project will engage 
     with and affect associated communities; and
       ``(3) in the case of an applicant that is an electric 
     utility, an assurance that the electric utility shall pass on 
     any financial benefit from the guarantee made under this 
     section to the customers of, or associated communities served 
     by, the electric utility.
       ``(e) Term.--Notwithstanding section 1702(f), the term of 
     an obligation shall require full repayment over a period not 
     to exceed 30 years.
       ``(f) Definition of Energy Infrastructure.--In this 
     section, the term `energy infrastructure' means a facility, 
     and associated equipment, used for--

[[Page S3981]]

       ``(1) the generation or transmission of electric energy; or
       ``(2) the production, processing, and delivery of fossil 
     fuels, fuels derived from petroleum, or petrochemical 
     feedstocks.''.
       (d) Conforming Amendment.--Section 1702(o)(3) of the Energy 
     Policy Act of 2005 (42 U.S.C. 16512(o)(3)) is amended by 
     inserting ``and projects described in section 1706(a)'' 
     before the period at the end.
       (e) Clerical Amendment.--The table of contents for the 
     Energy Policy Act of 2005 is amended by inserting after the 
     item relating to section 1705 (Public Law 109-58; 119 Stat. 
     604; 123 Stat. 145) the following:

``Sec. 1706. Energy infrastructure reinvestment financing.''.

     SEC. 50145. TRIBAL ENERGY LOAN GUARANTEE PROGRAM.

       (a) Appropriation.--In addition to amounts otherwise 
     available, there is appropriated to the Secretary for fiscal 
     year 2022, out of any money in the Treasury not otherwise 
     appropriated, $75,000,000, to remain available through 
     September 30, 2028, to carry out section 2602(c) of the 
     Energy Policy Act of 1992 (25 U.S.C. 3502(c)), subject to the 
     limitations that apply to loan guarantees under section 
     50141(d).
       (b) Department of Energy Tribal Energy Loan Guarantee 
     Program.--Section 2602(c) of the Energy Policy Act of 1992 
     (25 U.S.C. 3502(c)) is amended--
       (1) in paragraph (1), by striking ``) for an amount equal 
     to not more than 90 percent of'' and inserting ``, except 
     that a loan guarantee may guarantee any debt obligation of a 
     non-Federal borrower to any Eligible Lender (as defined in 
     section 609.2 of title 10, Code of Federal Regulations)) 
     for''; and
       (2) in paragraph (4), by striking ``$2,000,000,000'' and 
     inserting ``$20,000,000,000''.

                     PART 5--ELECTRIC TRANSMISSION

     SEC. 50151. TRANSMISSION FACILITY FINANCING.

       (a) Appropriation.--In addition to amounts otherwise 
     available, there is appropriated to the Secretary for fiscal 
     year 2022, out of any money in the Treasury not otherwise 
     appropriated, $2,000,000,000, to remain available through 
     September 30, 2030, to carry out this section:  Provided, 
     That the Secretary shall not enter into any loan agreement 
     pursuant to this section that could result in disbursements 
     after September 30, 2031.
       (b) Use of Funds.--The Secretary shall use the amounts made 
     available by subsection (a) to carry out a program to make 
     direct loans to non-Federal borrowers, subject to the 
     limitations that apply to loan guarantees under section 
     50141(d) and under such terms and conditions as the Secretary 
     determines to be appropriate, for the construction or 
     modification of electric transmission facilities designated 
     by the Secretary to be necessary in the national interest 
     under section 216(a) of the Federal Power Act (16 U.S.C. 
     824p(a)).
       (c) Loans.--A direct loan provided under this section--
       (1) shall have a term that does not exceed the lesser of--
       (A) 90 percent of the projected useful life, in years, of 
     the eligible transmission facility; and
       (B) 30 years;
       (2) shall not exceed 80 percent of the project costs; and
       (3) shall, on first issuance, be subject to the condition 
     that the direct loan is not subordinate to other financing.
       (d) Interest Rates.--A direct loan provided under this 
     section shall bear interest at a rate determined by the 
     Secretary, taking into consideration market yields on 
     outstanding marketable obligations of the United States of 
     comparable maturities as of the date on which the direct loan 
     is made.
       (e) Definition of Direct Loan.--In this section, the term 
     ``direct loan'' has the meaning given the term in section 502 
     of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a).

     SEC. 50152. GRANTS TO FACILITATE THE SITING OF INTERSTATE 
                   ELECTRICITY TRANSMISSION LINES.

       (a) Appropriation.--In addition to amounts otherwise 
     available, there is appropriated to the Secretary for fiscal 
     year 2022, out of any money in the Treasury not otherwise 
     appropriated, $760,000,000, to remain available through 
     September 30, 2029, for making grants in accordance with this 
     section and for administrative expenses associated with 
     carrying out this section.
       (b) Use of Funds.--
       (1) In general.--The Secretary may make a grant under this 
     section to a siting authority for, with respect to a covered 
     transmission project, any of the following activities:
       (A) Studies and analyses of the impacts of the covered 
     transmission project.
       (B) Examination of up to 3 alternate siting corridors 
     within which the covered transmission project feasibly could 
     be sited.
       (C) Hosting and facilitation of negotiations in settlement 
     meetings involving the siting authority, the covered 
     transmission project applicant, and opponents of the covered 
     transmission project, for the purpose of identifying and 
     addressing issues that are preventing approval of the 
     application relating to the siting or permitting of the 
     covered transmission project.
       (D) Participation by the siting authority in regulatory 
     proceedings or negotiations in another jurisdiction, or under 
     the auspices of a Transmission Organization (as defined in 
     section 3 of the Federal Power Act (16 U.S.C. 796)) that is 
     also considering the siting or permitting of the covered 
     transmission project.
       (E) Participation by the siting authority in regulatory 
     proceedings at the Federal Energy Regulatory Commission or a 
     State regulatory commission for determining applicable rates 
     and cost allocation for the covered transmission project.
       (F) Other measures and actions that may improve the chances 
     of, and shorten the time required for, approval by the siting 
     authority of the application relating to the siting or 
     permitting of the covered transmission project, as the 
     Secretary determines appropriate.
       (2) Economic development.--The Secretary may make a grant 
     under this section to a siting authority, or other State, 
     local, or Tribal governmental entity, for economic 
     development activities for communities that may be affected 
     by the construction and operation of a covered transmission 
     project, provided that the Secretary shall not enter into any 
     grant agreement pursuant to this section that could result in 
     any outlays after September 30, 2031.
       (c) Conditions.--
       (1) Final decision on application.--In order to receive a 
     grant for an activity described in subsection (b)(1), the 
     Secretary shall require a siting authority to agree, in 
     writing, to reach a final decision on the application 
     relating to the siting or permitting of the applicable 
     covered transmission project not later than 2 years after the 
     date on which such grant is provided, unless the Secretary 
     authorizes an extension for good cause.
       (2) Federal share.--The Federal share of the cost of an 
     activity described in subparagraph (D) or (E) of subsection 
     (b)(1) shall not exceed 50 percent.
       (3) Economic development.--The Secretary may only disburse 
     grant funds for economic development activities under 
     subsection (b)(2)--
       (A) to a siting authority upon approval by the siting 
     authority of the applicable covered transmission project; and
       (B) to any other State, local, or Tribal governmental 
     entity upon commencement of construction of the applicable 
     covered transmission project in the area under the 
     jurisdiction of the entity.
       (d) Returning Funds.--If a siting authority that receives a 
     grant for an activity described in subsection (b)(1) fails to 
     use all grant funds within 2 years of receipt, the siting 
     authority shall return to the Secretary any such unused 
     funds.
       (e) Definitions.--In this section:
       (1) Covered transmission project.--The term ``covered 
     transmission project'' means a high-voltage interstate or 
     offshore electricity transmission line--
       (A) that is proposed to be constructed and to operate--
       (i) at a minimum of 275 kilovolts of either alternating-
     current or direct-current electric energy by an entity; or
       (ii) offshore and at a minimum of 200 kilovolts of either 
     alternating-current or direct-current electric energy by an 
     entity; and
       (B) for which such entity has applied, or informed a siting 
     authority of such entity's intent to apply, for regulatory 
     approval.
       (2) Siting authority.--The term ``siting authority'' means 
     a State, local, or Tribal governmental entity with authority 
     to make a final determination regarding the siting, 
     permitting, or regulatory status of a covered transmission 
     project that is proposed to be located in an area under the 
     jurisdiction of the entity.

     SEC. 50153. INTERREGIONAL AND OFFSHORE WIND ELECTRICITY 
                   TRANSMISSION PLANNING, MODELING, AND ANALYSIS.

       (a) Appropriation.--In addition to amounts otherwise 
     available, there is appropriated to the Secretary for fiscal 
     year 2022, out of any money in the Treasury not otherwise 
     appropriated, $100,000,000, to remain available through 
     September 30, 2031, to carry out this section.
       (b) Use of Funds.--The Secretary shall use amounts made 
     available under subsection (a)--
       (1) to pay expenses associated with convening relevant 
     stakeholders, including States, generation and transmission 
     developers, regional transmission organizations, independent 
     system operators, environmental organizations, electric 
     utilities, and other stakeholders the Secretary determines 
     appropriate, to address the development of interregional 
     electricity transmission and transmission of electricity that 
     is generated by offshore wind; and
       (2) to conduct planning, modeling, and analysis regarding 
     interregional electricity transmission and transmission of 
     electricity that is generated by offshore wind, taking into 
     account the local, regional, and national economic, 
     reliability, resilience, security, public policy, and 
     environmental benefits of interregional electricity 
     transmission and transmission of electricity that is 
     generated by offshore wind, including planning, modeling, and 
     analysis, as the Secretary determines appropriate, pertaining 
     to--
       (A) clean energy integration into the electric grid, 
     including the identification of renewable energy zones;
       (B) the effects of changes in weather due to climate change 
     on the reliability and resilience of the electric grid;
       (C) cost allocation methodologies that facilitate the 
     expansion of the bulk power system;

[[Page S3982]]

       (D) the benefits of coordination between generator 
     interconnection processes and transmission planning 
     processes;
       (E) the effect of increased electrification on the electric 
     grid;
       (F) power flow modeling;
       (G) the benefits of increased interconnections or interties 
     between or among the Western Interconnection, the Eastern 
     Interconnection, the Electric Reliability Council of Texas, 
     and other interconnections, as applicable;
       (H) the cooptimization of transmission and generation, 
     including variable energy resources, energy storage, and 
     demand-side management;
       (I) the opportunities for use of nontransmission 
     alternatives, energy storage, and grid-enhancing 
     technologies;
       (J) economic development opportunities for communities 
     arising from development of interregional electricity 
     transmission and transmission of electricity that is 
     generated by offshore wind;
       (K) evaluation of existing rights-of-way and the need for 
     additional transmission corridors; and
       (L) a planned national transmission grid, which would 
     include a networked transmission system to optimize the 
     existing grid for interconnection of offshore wind farms.

                           PART 6--INDUSTRIAL

     SEC. 50161. ADVANCED INDUSTRIAL FACILITIES DEPLOYMENT 
                   PROGRAM.

       (a) Office of Clean Energy Demonstrations.--In addition to 
     amounts otherwise available, there is appropriated to the 
     Secretary, acting through the Office of Clean Energy 
     Demonstrations, for fiscal year 2022, out of any money in the 
     Treasury not otherwise appropriated, $5,812,000,000, to 
     remain available through September 30, 2026, to carry out 
     this section.
       (b) Financial Assistance.--The Secretary shall use funds 
     appropriated by subsection (a) to provide financial 
     assistance, on a competitive basis, to eligible entities to 
     carry out projects for--
       (1) the purchase and installation, or implementation, of 
     advanced industrial technology at an eligible facility;
       (2) retrofits, upgrades to, or operational improvements at 
     an eligible facility to install or implement advanced 
     industrial technology; or
       (3) engineering studies and other work needed to prepare an 
     eligible facility for activities described in paragraph (1) 
     or (2).
       (c) Application.--To be eligible to receive financial 
     assistance under subsection (b), an eligible entity shall 
     submit to the Secretary an application at such time, in such 
     manner, and containing such information as the Secretary may 
     require, including the expected greenhouse gas emissions 
     reductions to be achieved by carrying out the project.
       (d) Priority.--In providing financial assistance under 
     subsection (b), the Secretary shall give priority 
     consideration to projects on the basis of, as determined by 
     the Secretary--
       (1) the expected greenhouse gas emissions reductions to be 
     achieved by carrying out the project;
       (2) the extent to which the project would provide the 
     greatest benefit for the greatest number of people within the 
     area in which the eligible facility is located; and
       (3) whether the eligible entity participates or would 
     participate in a partnership with purchasers of the output of 
     the eligible facility.
       (e) Cost Share.--The Secretary shall require an eligible 
     entity to provide not less than 50 percent of the cost of a 
     project carried out pursuant to this section.
       (f) Administrative Costs.--The Secretary shall reserve 
     $200,000,000 of amounts made available under subsection (a) 
     for administrative costs of carrying out this section.
       (g) Definitions.--In this section:
       (1) Advanced industrial technology.--The term ``advanced 
     industrial technology'' means a technology directly involved 
     in an industrial process, as described in any of paragraphs 
     (1) through (6) of section 454(c) of the Energy Independence 
     and Security Act of 2007 (42 U.S.C. 17113(c)), and designed 
     to accelerate greenhouse gas emissions reduction progress to 
     net-zero at an eligible facility, as determined by the 
     Secretary.
       (2) Eligible entity.--The term ``eligible entity'' means 
     the owner or operator of an eligible facility.
       (3) Eligible facility.--The term ``eligible facility'' 
     means a domestic, non-Federal, nonpower industrial or 
     manufacturing facility engaged in energy-intensive industrial 
     processes, including production processes for iron, steel, 
     steel mill products, aluminum, cement, concrete, glass, pulp, 
     paper, industrial ceramics, chemicals, and other energy 
     intensive industrial processes, as determined by the 
     Secretary.
       (4) Financial assistance.--The term ``financial 
     assistance'' means a grant, rebate, direct loan, or 
     cooperative agreement.

                      PART 7--OTHER ENERGY MATTERS

     SEC. 50171. DEPARTMENT OF ENERGY OVERSIGHT.

       In addition to amounts otherwise available, there is 
     appropriated to the Secretary for fiscal year 2022, out of 
     any money in the Treasury not otherwise appropriated, 
     $10,000,000, to remain available through September 30, 2031, 
     for oversight by the Department of Energy Office of Inspector 
     General of the Department of Energy activities for which 
     funding is appropriated in this subtitle.

     SEC. 50172. NATIONAL LABORATORY INFRASTRUCTURE.

       (a) Office of Science.--In addition to amounts otherwise 
     available, there is appropriated to the Secretary, acting 
     through the Director of the Office of Science, for fiscal 
     year 2022, out of any money in the Treasury not otherwise 
     appropriated, to remain available through September 30, 
     2027--
       (1) $133,240,000 to carry out activities for science 
     laboratory infrastructure projects;
       (2) $303,656,000 to carry out activities for high energy 
     physics construction and major items of equipment projects;
       (3) $280,000,000 to carry out activities for fusion energy 
     science construction and major items of equipment projects;
       (4) $217,000,000 to carry out activities for nuclear 
     physics construction and major items of equipment projects;
       (5) $163,791,000 to carry out activities for advanced 
     scientific computing research facilities;
       (6) $294,500,000 to carry out activities for basic energy 
     sciences projects; and
       (7) $157,813,000 to carry out activities for isotope 
     research and development facilities.
       (b) Office of Fossil Energy and Carbon Management.--In 
     addition to amounts otherwise available, there is 
     appropriated to the Secretary for fiscal year 2022, out of 
     any money in the Treasury not otherwise appropriated, 
     $150,000,000, to remain available through September 30, 2027, 
     to carry out activities for infrastructure and general plant 
     projects carried out by the Office of Fossil Energy and 
     Carbon Management.
       (c) Office of Nuclear Energy.--In addition to amounts 
     otherwise available, there is appropriated to the Secretary 
     for fiscal year 2022, out of any money in the Treasury not 
     otherwise appropriated, $150,000,000, to remain available 
     through September 30, 2027, to carry out activities for 
     infrastructure and general plant projects carried out by the 
     Office of Nuclear Energy.
       (d) Office of Energy Efficiency and Renewable Energy.--In 
     addition to amounts otherwise available, there is 
     appropriated to the Secretary for fiscal year 2022, out of 
     any money in the Treasury not otherwise appropriated, 
     $150,000,000, to remain available through September 30, 2027, 
     to carry out activities for infrastructure and general plant 
     projects carried out by the Office of Energy Efficiency and 
     Renewable Energy.

     SEC. 50173. AVAILABILITY OF HIGH-ASSAY LOW-ENRICHED URANIUM.

       (a) Appropriations.--In addition to amounts otherwise 
     available, there is appropriated to the Secretary of for 
     fiscal year 2022, out of any money in the Treasury not 
     otherwise appropriated, to remain available through September 
     30, 2026--
       (1) $100,000,000 to carry out the program elements 
     described in subparagraphs (A) through (C) of section 
     2001(a)(2) of the Energy Act of 2020 (42 U.S.C. 16281(a)(2));
       (2) $500,000,000 to carry out the program elements 
     described in subparagraphs (D) through (H) of that section; 
     and
       (3) $100,000,000 to carry out activities to support the 
     availability of high-assay low-enriched uranium for civilian 
     domestic research, development, demonstration, and commercial 
     use under section 2001 of the Energy Act of 2020 (42 U.S.C. 
     16281).
       (b) Competitive Procedures.--To the maximum extent 
     practicable, the Department of Energy shall, in a manner 
     consistent with section 989 of the Energy Policy Act of 2005 
     (42 U.S.C. 16353), use a competitive, merit-based review 
     process in carrying out research, development, demonstration, 
     and deployment activities under section 2001 of the Energy 
     Act of 2020 (42 U.S.C. 16281).
       (c) Administrative Expenses.--The Secretary may use not 
     more than 3 percent of the amounts appropriated by subsection 
     (a) for administrative purposes.

                     Subtitle B--Natural Resources

                       PART 1--GENERAL PROVISIONS

     SEC. 50211. DEFINITIONS.

       In this subtitle:
       (1) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.
       (2) United states insular areas.--The term ``United States 
     Insular Areas'' means American Samoa, the Commonwealth of the 
     Northern Mariana Islands, Guam, the Commonwealth of Puerto 
     Rico, and the United States Virgin Islands.

                          PART 2--PUBLIC LANDS

     SEC. 50221. NATIONAL PARKS AND PUBLIC LANDS CONSERVATION AND 
                   RESILIENCE.

       In addition to amounts otherwise available, there is 
     appropriated to the Secretary for fiscal year 2022, out of 
     any money in the Treasury not otherwise appropriated, 
     $250,000,000, to remain available through September 30, 2031, 
     to carry out projects for the conservation, protection, and 
     resiliency of lands and resources administered by the 
     National Park Service and Bureau of Land Management. None of 
     the funds provided under this section shall be subject to 
     cost-share or matching requirements.

     SEC. 50222. NATIONAL PARKS AND PUBLIC LANDS CONSERVATION AND 
                   ECOSYSTEM RESTORATION.

       In addition to amounts otherwise available, there is 
     appropriated to the Secretary for fiscal year 2022, out of 
     any money in the Treasury not otherwise appropriated, 
     $250,000,000, to remain available through September 30, 2031, 
     to carry out conservation, ecosystem and habitat restoration 
     projects on lands administered by the National Park Service 
     and Bureau of Land Management. None of the funds provided 
     under this section shall be subject to cost-share or matching 
     requirements.

[[Page S3983]]

  


     SEC. 50223. NATIONAL PARK SERVICE EMPLOYEES.

       In addition to amounts otherwise available, there is 
     appropriated to the Secretary for fiscal year 2022, out of 
     any money in the Treasury not otherwise appropriated, 
     $500,000,000, to remain available through September 30, 2030, 
     to hire employees in units of the National Park System.

               PART 3--DROUGHT RESPONSE AND PREPAREDNESS

     SEC. 50231. BUREAU OF RECLAMATION DOMESTIC WATER SUPPLY 
                   PROJECTS.

       In addition to amounts otherwise available, there is 
     appropriated to the Secretary, acting through the 
     Commissioner of Reclamation, for fiscal year 2022, out of any 
     money in the Treasury not otherwise appropriated, 
     $550,000,000, to remain available through September 30, 2031, 
     for grants, contracts, or financial assistance agreements for 
     disadvantaged communities (identified according to criteria 
     adopted by the Commissioner of Reclamation) in a manner as 
     determined by the Commissioner of Reclamation for up to 100 
     percent of the cost of the planning, design, or construction 
     of water projects the primary purpose of which is to provide 
     domestic water supplies to communities or households that do 
     not have reliable access to domestic water supplies in a 
     State or territory described in the first section of the Act 
     of June 17, 1902 (43 U.S.C. 391; 32 Stat. 388, chapter 1093).

     SEC. 50232. CANAL IMPROVEMENT PROJECTS.

       In addition to amounts otherwise available, there is 
     appropriated to the Secretary, acting through the 
     Commissioner of Reclamation, for fiscal year 2022, out of any 
     money in the Treasury not otherwise appropriated, 
     $25,000,000, to remain available through September 30, 2031, 
     for the design, study, and implementation of projects 
     (including pilot and demonstration projects) to cover water 
     conveyance facilities with solar panels to generate renewable 
     energy in a manner as determined by the Secretary or for 
     other solar projects associated with Bureau of Reclamation 
     projects that increase water efficiency and assist in 
     implementation of clean energy goals.

                        PART 4--INSULAR AFFAIRS

     SEC. 50241. OFFICE OF INSULAR AFFAIRS CLIMATE CHANGE 
                   TECHNICAL ASSISTANCE.

       (a) In General.--In addition to amounts otherwise 
     available, there is appropriated to the Secretary, acting 
     through the Office of Insular Affairs, for fiscal year 2022, 
     out of any money in the Treasury not otherwise appropriated, 
     $15,000,000, to remain available through September 30, 2026, 
     to provide technical assistance for climate change planning, 
     mitigation, adaptation, and resilience to United States 
     Insular Areas.
       (b) Administrative Expenses.--In addition to amounts 
     otherwise available, there is appropriated to the Secretary, 
     acting through the Office of Insular Affairs, for fiscal year 
     2022, out of any money in the Treasury not otherwise 
     appropriated, $900,000, to remain available through September 
     30, 2026, for necessary administrative expenses associated 
     with carrying out this section.

                         PART 5--OFFSHORE WIND

     SEC. 50251. LEASING ON THE OUTER CONTINENTAL SHELF.

       (a) Leasing Authorized.--The Secretary may grant leases, 
     easements, and rights-of-way pursuant to section 8(p)(1)(C) 
     of the Outer Continental Shelf Lands Act (43 U.S.C. 
     1337(p)(1)(C)) in an area withdrawn by--
       (1) the Presidential memorandum entitled ``Memorandum on 
     the Withdrawal of Certain Areas of the United States Outer 
     Continental Shelf from Leasing Disposition'' and dated 
     September 8, 2020; or
       (2) the Presidential memorandum entitled ``Presidential 
     Determination on the Withdrawal of Certain Areas of the 
     United States Outer Continental Shelf from Leasing 
     Disposition'' and dated September 25, 2020.
       (b) Offshore Wind for the Territories.--
       (1) Application of outer continental shelf lands act with 
     respect to territories of the united states.--
       (A) In general.--Section 2 of the Outer Continental Shelf 
     Lands Act (43 U.S.C. 1331) is amended--
       (i) in subsection (a)--

       (I) by striking ``means all'' and inserting the following: 
     ``means--

       ``(1) all''; and

       (II) in paragraph (1) (as so designated), by striking 
     ``control;'' and inserting the following: ``control or within 
     the exclusive economic zone of the United States and adjacent 
     to any territory of the United States; and''; and
       (III) by adding at the end following:

       ``(2) does not include any area conveyed by Congress to a 
     territorial government for administration;'';
       (ii) in subsection (p), by striking ``and'' after the 
     semicolon at the end;
       (iii) in subsection (q), by striking the period at the end 
     and inserting ``; and''; and
       (iv) by adding at the end the following:
       ``(r) The term `State' means--
       ``(1) each of the several States;
       ``(2) the Commonwealth of Puerto Rico;
       ``(3) Guam;
       ``(4) American Samoa;
       ``(5) the United States Virgin Islands; and
       ``(6) the Commonwealth of the Northern Mariana Islands.''.
       (B) Exclusions.--Section 18 of the Outer Continental Shelf 
     Lands Act (43 U.S.C. 1344) is amended by adding at the end 
     the following:
       ``(i) Application.--This section shall not apply to the 
     scheduling of any lease sale in an area of the outer 
     Continental Shelf that is adjacent to the Commonwealth of 
     Puerto Rico, Guam, American Samoa, the United States Virgin 
     Islands, or the Commonwealth of the Northern Mariana 
     Islands.''.
       (2) Wind lease sales for areas of the outer continental 
     shelf.--The Outer Continental Shelf Lands Act (43 U.S.C. 1331 
     et seq.) is amended by adding at the end the following:

     ``SEC. 33. WIND LEASE SALES FOR AREAS OF THE OUTER 
                   CONTINENTAL SHELF OFFSHORE OF TERRITORIES OF 
                   THE UNITED STATES.

       ``(a) Wind Lease Sales Off Coasts of Territories of the 
     United States.--
       ``(1) Call for information and nominations.--
       ``(A) In general.--The Secretary shall issue calls for 
     information and nominations for proposed wind lease sales for 
     areas of the outer Continental Shelf described in paragraph 
     (2) that are determined to be feasible.
       ``(B) Initial call.--Not later than September 30, 2025, the 
     Secretary shall issue an initial call for information and 
     nominations under this paragraph.
       ``(2) Conditional wind lease sales.--The Secretary may 
     conduct wind lease sales in each area within the exclusive 
     economic zone of the United States adjacent to the 
     Commonwealth of Puerto Rico, Guam, American Samoa, the United 
     States Virgin Islands, or the Commonwealth of the Northern 
     Mariana Islands that meets each of the following criteria:
       ``(A) The Secretary has concluded that a wind lease sale in 
     the area is feasible.
       ``(B) The Secretary has determined that there is sufficient 
     interest in leasing the area.
       ``(C) The Secretary has consulted with the Governor of the 
     territory regarding the suitability of the area for wind 
     energy development.''.

                     PART 6--FOSSIL FUEL RESOURCES

     SEC. 50261. OFFSHORE OIL AND GAS ROYALTY RATE.

       Section 8(a)(1) of the Outer Continental Shelf Lands Act 
     (43 U.S.C. 1337(a)(1)) is amended--
       (1) in each of subparagraphs (A) and (C), by striking ``not 
     less than 12\1/2\ per centum'' each place it appears and 
     inserting ``not less than 16\2/3\ percent, but not more than 
     18\3/4\ percent, during the 10-year period beginning on the 
     date of enactment of the Inflation Reduction Act of 2022, and 
     not less than 16\2/3\ percent thereafter,'';
       (2) in subparagraph (F), by striking ``no less than 12\1/2\ 
     per centum'' and inserting ``not less than 16\2/3\ percent, 
     but not more than 18\3/4\ percent, during the 10-year period 
     beginning on the date of enactment of the Inflation Reduction 
     Act of 2022, and not less than 16\2/3\ percent thereafter,''; 
     and
       (3) in subparagraph (H), by striking ``no less than 12 and 
     \1/2\ per centum'' and inserting ``not less than 16\2/3\ 
     percent, but not more than 18\3/4\ percent, during the 10-
     year period beginning on the date of enactment of the 
     Inflation Reduction Act of 2022, and not less than 16\2/3\ 
     percent thereafter,''.

     SEC. 50262. MINERAL LEASING ACT MODERNIZATION.

       (a) Onshore Oil and Gas Royalty Rates.--
       (1) Lease of oil and gas land.--Section 17 of the Mineral 
     Leasing Act (30 U.S.C. 226) is amended--
       (A) in subsection (b)(1)(A), in the fifth sentence--
       (i) by striking ``12.5'' and inserting ``16\2/3\''; and
       (ii) by inserting ``or, in the case of a lease issued 
     during the 10-year period beginning on the date of enactment 
     of the Inflation Reduction Act of 2022, 16\2/3\ percent in 
     amount or value of the production removed or sold from the 
     lease'' before the period at the end; and
       (B) by striking ``12\1/2\ per centum'' each place it 
     appears and inserting ``16\2/3\ percent''.
       (2) Conditions for reinstatement.--Section 31(e)(3) of the 
     Mineral Leasing Act (30 U.S.C. 188(e)(3)) is amended by 
     striking ``16\2/3\'' each place it appears and inserting 
     ``20''.
       (b) Oil and Gas Minimum Bid.--Section 17(b) of the Mineral 
     Leasing Act (30 U.S.C. 226(b)) is amended--
       (1) in paragraph (1)(B), in the first sentence, by striking 
     ``$2 per acre for a period of 2 years from the date of 
     enactment of the Federal Onshore Oil and Gas Leasing Reform 
     Act of 1987.'' and inserting ``$10 per acre during the 10-
     year period beginning on the date of enactment of the 
     Inflation Reduction Act of 2022.''; and
       (2) in paragraph (2)(C), by striking ``$2 per acre'' and 
     inserting ``$10 per acre''.
       (c) Fossil Fuel Rental Rates.--
       (1) Annual rentals.--Section 17(d) of the Mineral Leasing 
     Act (30 U.S.C. 226(d)) is amended, in the first sentence, by 
     striking ``$1.50 per acre'' and all that follows through the 
     period at the end and inserting ``$3 per acre per year during 
     the 2-year period beginning on the date the lease begins for 
     new leases, and after the end of that 2-year period, $5 per 
     acre per year for the following 6-year period, and not less 
     than $15 per acre per year thereafter, or, in the case of a 
     lease issued during the 10-year period beginning on the date 
     of enactment of the Inflation Reduction Act of 2022, $3 per 
     acre per year during the 2-year period beginning on the date 
     the lease begins, and after the end of that 2-year period, $5 
     per acre per year for the following 6-year period, and $15 
     per acre per year thereafter.''.

[[Page S3984]]

       (2) Rentals in reinstated leases.--Section 31(e)(2) of the 
     Mineral Leasing Act (30 U.S.C. 188(e)(2)) is amended by 
     striking ``$10'' and inserting ``$20''.
       (d) Expression of Interest Fee.--Section 17 of the Mineral 
     Leasing Act (30 U.S.C. 226) is amended by adding at the end 
     the following:
       ``(q) Fee for Expression of Interest.--
       ``(1) In general.--The Secretary shall assess a 
     nonrefundable fee against any person that, in accordance with 
     procedures established by the Secretary to carry out this 
     subsection, submits an expression of interest in leasing land 
     available for disposition under this section for exploration 
     for, and development of, oil or gas.
       ``(2) Amount of fee.--
       ``(A) In general.--Subject to subparagraph (B), the fee 
     assessed under paragraph (1) shall be $5 per acre of the area 
     covered by the applicable expression of interest.
       ``(B) Adjustment of fee.--The Secretary shall, by 
     regulation, not less frequently than every 4 years, adjust 
     the amount of the fee under subparagraph (A) to reflect the 
     change in inflation.''.
       (e) Elimination of Noncompetitive Leasing.--
       (1) In general.--Section 17 of the Mineral Leasing Act (20 
     U.S.C. 226) is amended--
       (A) in subsection (b)--
       (i) in paragraph (1)(A)--

       (I) in the first sentence, by striking ``paragraphs (2) and 
     (3) of this subsection'' and inserting ``paragraph (2)''; and
       (II) by striking the last sentence; and

       (ii) by striking paragraph (3);
       (B) by striking subsection (c) and inserting the following:
       ``(c) Additional Rounds of Competitive Bidding.--Land made 
     available for leasing under subsection (b)(1) for which no 
     bid is accepted or received, or the land for which a lease 
     terminates, expires, is cancelled, or is relinquished, may be 
     made available by the Secretary of the Interior for a new 
     round of competitive bidding under that subsection.''; and
       (C) by striking subsection (e) and inserting the following:
       ``(e) Term of Lease.--
       ``(1) In general.--Any lease issued under this section, 
     including a lease for tar sand areas, shall be for a primary 
     term of 10 years.
       ``(2) Continuation of lease.--A lease described in 
     paragraph (1) shall continue after the primary term of the 
     lease for any period during which oil or gas is produced in 
     paying quantities.
       ``(3) Additional extensions.--Any lease issued under this 
     section for land on which, or for which under an approved 
     cooperative or unit plan of development or operation, actual 
     drilling operations were commenced and diligently prosecuted 
     prior to the end of the primary term of the lease shall be 
     extended for 2 years and for any period thereafter during 
     which oil or gas is produced in paying quantities.''.
       (2) Conforming amendments.--Section 31 of the Mineral 
     Leasing Act (30 U.S.C. 188) is amended--
       (A) in subsection (d)(1), in the first sentence, by 
     striking ``or section 17(c) of this Act'';
       (B) in subsection (e)--
       (i) in paragraph (2)--

       (I) by striking ``either''; and
       (II) by striking ``or the inclusion'' and all that follows 
     through ``, all''; and

       (ii) in paragraph (3)--

       (I) in subparagraph (A), by adding ``and'' after the 
     semicolon;
       (II) by striking subparagraph (B); and
       (III) by striking ``(3)(A) payment'' and inserting the 
     following:

       ``(3) payment'';
       (C) in subsection (g)--
       (i) in paragraph (1), by striking ``as a competitive'' and 
     all that follows through ``of this Act'' and inserting ``in 
     the same manner as the original lease issued pursuant to 
     section 17'';
       (ii) by striking paragraph (2);
       (iii) by redesignating paragraphs (3) and (4) as paragraphs 
     (2) and (3), respectively; and
       (iv) in paragraph (2) (as so redesignated), by striking 
     ``applicable to leases issued under subsection 17(c) of this 
     Act (30 U.S.C. 226(c)) except,'' and inserting ``except'';
       (D) in subsection (h), by striking ``subsections (d) and 
     (f) of this section'' and inserting ``subsection (d)'';
       (E) in subsection (i), by striking ``(i)(1) In acting'' and 
     all that follows through ``of this section'' in paragraph (2) 
     and inserting the following:
       ``(i) Royalty reduction in reinstated leases.--In acting on 
     a petition for reinstatement pursuant to subsection (d)'';
       (F) by striking subsection (f); and
       (G) by redesignating subsections (g) through (j) as 
     subsections (f) through (i), respectively.
       (f) Oil and Gas Bonding Requirements.--Section 17(g) of the 
     Mineral Leasing Act (30 U.S.C. 226(g)) is amended by 
     inserting after the third sentence the following: ``At a 
     minimum each bond, surety, or other financial arrangement 
     established for a lease shall be considered inadequate if the 
     bond, surety, or other financial arrangement is for less than 
     $150,000, in the case of an individual oil or gas lease in a 
     State, or for less than $500,000, in the case of an 
     arrangement for all of the oil and gas leases of an operating 
     entity in a State, or for less than $2,000,000, in the case 
     of an arrangement for all of the oil and gas leases of an 
     operating entity nationwide. The Secretary shall, by 
     regulation, not less frequently than every 4 years, adjust 
     the amount at which a bond, surety, or other financial 
     arrangement is considered inadequate to reflect the change in 
     inflation.''.

     SEC. 50263. ROYALTIES ON ALL EXTRACTED METHANE.

       (a) In General.--For all leases issued after the date of 
     enactment of this Act, except as provided in subsection (b), 
     royalties paid for gas produced from Federal land and on the 
     outer Continental Shelf shall be assessed on all gas 
     produced, including all gas that is consumed or lost by 
     venting, flaring, or negligent releases through any equipment 
     during upstream operations.
       (b) Exception.--Subsection (a) shall not apply with respect 
     to--
       (1) gas vented or flared for not longer than 48 hours in an 
     emergency situation that poses a danger to human health, 
     safety, or the environment;
       (2) gas used or consumed within the area of the lease, 
     unit, or communitized area for the benefit of the lease, 
     unit, or communitized area; or
       (3) gas that is unavoidably lost.

     SEC. 50264. LEASE SALES UNDER THE 2017-2022 OUTER CONTINENTAL 
                   SHELF LEASING PROGRAM.

       (a) Definitions.--In this section:
       (1) 2022 lease sales.--The term ``2022 Lease Sales'' means 
     each of the following lease sales described in the 2017-2022 
     Outer Continental Shelf Oil and Gas Leasing Proposed Final 
     Program published on November 18, 2016, and approved by the 
     Secretary in the Record of Decision issued on January 17, 
     2017, described in the notice of availability entitled 
     ``Record of Decision for the 2017-2022 Outer Continental 
     Shelf Oil and Gas Leasing Program Final Programmatic 
     Environmental Impact Statement; MMAA104000'' (82 Fed. Reg. 
     6643 (January 19, 2017)):
       (A) Lease Sale 258.
       (B) Lease Sale 259.
       (2) Lease sale 257.--The term ``Lease Sale 257'' means the 
     lease sale numbered 257 that was approved in the Record of 
     Decision described in the notice of availability of a record 
     of decision issued on August 31, 2021, entitled ``Gulf of 
     Mexico, Outer Continental Shelf (OCS), Oil and Gas Lease Sale 
     257'' (86 Fed. Reg. 50160 (September 7, 2021)), and is the 
     subject of the final notice of sale entitled ``Gulf of Mexico 
     Outer Continental Shelf Oil and Gas Lease Sale 257'' (86 Fed. 
     Reg. 54728 (October 4, 2021)).
       (3) Lease sale 261.--The term ``Lease Sale 261'' means the 
     lease sale numbered 261 described in the 2017-2022 Outer 
     Continental Shelf Oil and Gas Leasing Proposed Final Program 
     published on November 18, 2016, and approved by the Secretary 
     in the Record of Decision issued on January 17, 2017, 
     described in the notice of availability entitled ``Record of 
     Decision for the 2017-2022 Outer Continental Shelf Oil and 
     Gas Leasing Program Final Programmatic Environmental Impact 
     Statement; MMAA104000'' (82 Fed. Reg. 6643 (January 19, 
     2017)).
       (b) Lease Sale 257 Reinstatement.--
       (1) Acceptance of bids.--Not later 30 days after the date 
     of enactment of this Act, the Secretary shall, without 
     modification or delay--
       (A) accept the highest valid bid for each tract or bidding 
     unit of Lease Sale 257 for which a valid bid was received on 
     November 17, 2021; and
       (B) provide the appropriate lease form to the winning 
     bidder to execute and return.
       (2) Lease issuance.--On receipt of an executed lease form 
     under paragraph (1)(B) and payment of the rental for the 
     first year, the balance of the bonus bid (unless deferred), 
     and any required bond or security from the high bidder, the 
     Secretary shall promptly issue to the high bidder a fully 
     executed lease, in accordance with--
       (A) the regulations in effect on the date of Lease Sale 
     257; and
       (B) the terms and conditions of the final notice of sale 
     entitled ``Gulf of Mexico Outer Continental Shelf Oil and Gas 
     Lease Sale 257'' (86 Fed. Reg. 54728 (October 4, 2021)).
       (c) Requirement for 2022 Lease Sales.--Notwithstanding the 
     expiration of the 2017-2022 leasing program, not later than 
     December 31, 2022, the Secretary shall conduct the 2022 Lease 
     Sales in accordance with the Record of Decision approved by 
     the Secretary on January 17, 2017, described in the notice of 
     availability entitled ``Record of Decision for the 2017-2022 
     Outer Continental Shelf Oil and Gas Leasing Program Final 
     Programmatic Environmental Impact Statement; MMAA104000'' 
     issued on January 17, 2017 (82 Fed. Reg. 6643 (January 19, 
     2017)).
       (d) Requirement for Lease Sale 261.--Notwithstanding the 
     expiration of the 2017-2022 leasing program, not later than 
     September 30, 2023, the Secretary shall conduct Lease Sale 
     261 in accordance with the Record of Decision approved by the 
     Secretary on January 17, 2017, described in the notice of 
     availability entitled ``Record of Decision for the 2017-2022 
     Outer Continental Shelf Oil and Gas Leasing Program Final 
     Programmatic Environmental Impact Statement; MMAA104000'' 
     issued on January 17, 2017 (82 Fed. Reg. 6643 (January 19, 
     2017)).

     SEC. 50265. ENSURING ENERGY SECURITY.

       (a) Definitions.--In this section:
       (1) Federal land.--The term ``Federal land'' means public 
     lands (as defined in section 103 of the Federal Land Policy 
     and Management Act of 1976 (43 U.S.C. 1702)).
       (2) Offshore lease sale.--The term ``offshore lease sale'' 
     means an oil and gas lease sale--

[[Page S3985]]

       (A) that is held by the Secretary in accordance with the 
     Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.); 
     and
       (B) that, if any acceptable bids have been received for any 
     tract offered in the lease sale, results in the issuance of a 
     lease.
       (3) Onshore lease sale.--The term ``onshore lease sale'' 
     means a quarterly oil and gas lease sale--
       (A) that is held by the Secretary in accordance with 
     section 17 of the Mineral Leasing Act (30 U.S.C. 226); and
       (B) that, if any acceptable bids have been received for any 
     parcel offered in the lease sale, results in the issuance of 
     a lease.
       (b) Limitation on Issuance of Certain Leases or Rights-of-
     way.--During the 10-year period beginning on the date of 
     enactment of this Act--
       (1) the Secretary may not issue a right-of-way for wind or 
     solar energy development on Federal land unless--
       (A) an onshore lease sale has been held during the 120-day 
     period ending on the date of the issuance of the right-of-way 
     for wind or solar energy development; and
       (B) the sum total of acres offered for lease in onshore 
     lease sales during the 1-year period ending on the date of 
     the issuance of the right-of-way for wind or solar energy 
     development is not less than the lesser of--
       (i) 2,000,000 acres; and
       (ii) 50 percent of the acreage for which expressions of 
     interest have been submitted for lease sales during that 
     period; and
       (2) the Secretary may not issue a lease for offshore wind 
     development under section 8(p)(1)(C) of the Outer Continental 
     Shelf Lands Act (43 U.S.C. 1337(p)(1)(C)) unless--
       (A) an offshore lease sale has been held during the 1-year 
     period ending on the date of the issuance of the lease for 
     offshore wind development; and
       (B) the sum total of acres offered for lease in offshore 
     lease sales during the 1-year period ending on the date of 
     the issuance of the lease for offshore wind development is 
     not less than 60,000,000 acres.
       (c) Savings.--Except as expressly provided in paragraphs 
     (1) and (2) of subsection (b), nothing in this section 
     supersedes, amends, or modifies existing law.

                PART 7--UNITED STATES GEOLOGICAL SURVEY

     SEC. 50271. UNITED STATES GEOLOGICAL SURVEY 3D ELEVATION 
                   PROGRAM.

       In addition to amounts otherwise available, there is 
     appropriated to the Secretary, acting through the Director of 
     the United States Geological Survey, for fiscal year 2022, 
     out of any money in the Treasury not otherwise appropriated, 
     $23,500,000, to remain available through September 30, 2031, 
     to produce, collect, disseminate, and use 3D elevation data.

                PART 8--OTHER NATURAL RESOURCES MATTERS

     SEC. 50281. DEPARTMENT OF THE INTERIOR OVERSIGHT.

       In addition to amounts otherwise available, there is 
     appropriated to the Secretary for fiscal year 2022, out of 
     any money in the Treasury not otherwise appropriated, 
     $10,000,000, to remain available through September 30, 2031, 
     for oversight by the Department of the Interior Office of 
     Inspector General of the Department of the Interior 
     activities for which funding is appropriated in this 
     subtitle.

                   Subtitle C--Environmental Reviews

     SEC. 50301. DEPARTMENT OF ENERGY.

       In addition to amounts otherwise available, there is 
     appropriated to the Secretary of Energy for fiscal year 2022, 
     out of any money in the Treasury not otherwise appropriated, 
     $125,000,000, to remain available through September 30, 2031, 
     to provide for the hiring and training of personnel, the 
     development of programmatic environmental documents, the 
     procurement of technical or scientific services for 
     environmental reviews, the development of environmental data 
     or information systems, stakeholder and community engagement, 
     and the purchase of new equipment for environmental analysis 
     to facilitate timely and efficient environmental reviews and 
     authorizations.

     SEC. 50302. FEDERAL ENERGY REGULATORY COMMISSION.

       (a) In General.--In addition to amounts otherwise 
     available, there is appropriated to the Federal Energy 
     Regulatory Commission for fiscal year 2022, out of any money 
     in the Treasury not otherwise appropriated, $100,000,000, to 
     remain available through September 30, 2031, to provide for 
     the hiring and training of personnel, the development of 
     programmatic environmental documents, the procurement of 
     technical or scientific services for environmental reviews, 
     the development of environmental data or information systems, 
     stakeholder and community engagement, and the purchase of new 
     equipment for environmental analysis to facilitate timely and 
     efficient environmental reviews and authorizations.
       (b) Fees and Charges.--Section 3401(a) of the Omnibus 
     Budget Reconciliation Act of 1986 (42 U.S.C. 7178(a)) shall 
     not apply to the costs incurred by the Federal Energy 
     Regulatory Commission in carrying out this section.

     SEC. 50303. DEPARTMENT OF THE INTERIOR.

       In addition to amounts otherwise available, there is 
     appropriated to the Secretary of the Interior for fiscal year 
     2022, out of any money in the Treasury not otherwise 
     appropriated, $150,000,000, to remain available through 
     September 30, 2026, to provide for the hiring and training of 
     personnel, the development of programmatic environmental 
     documents, the procurement of technical or scientific 
     services for environmental reviews, the development of 
     environmental data or information systems, stakeholder and 
     community engagement, and the purchase of new equipment for 
     environmental analysis to facilitate timely and efficient 
     environmental reviews and authorizations by the National Park 
     Service, the Bureau of Land Management, the Bureau of Ocean 
     Energy Management, the Bureau of Reclamation, the Bureau of 
     Safety and Environmental Enforcement, and the Office of 
     Surface Mining Reclamation and Enforcement.

          TITLE VI--COMMITTEE ON ENVIRONMENT AND PUBLIC WORKS

                       Subtitle A--Air Pollution

     SEC. 60101. CLEAN HEAVY-DUTY VEHICLES.

       The Clean Air Act is amended by inserting after section 131 
     of such Act (42 U.S.C. 7431) the following:

     ``SEC. 132. CLEAN HEAVY-DUTY VEHICLES.

       ``(a) Appropriations.--
       ``(1) In general.--In addition to amounts otherwise 
     available, there is appropriated to the Administrator for 
     fiscal year 2022, out of any money in the Treasury not 
     otherwise appropriated, $600,000,000, to remain available 
     until September 30, 2031, to carry out this section.
       ``(2) Nonattainment areas.--In addition to amounts 
     otherwise available, there is appropriated to the 
     Administrator for fiscal year 2022, out of any money in the 
     Treasury not otherwise appropriated, $400,000,000, to remain 
     available until September 30, 2031, to make awards under this 
     section to eligible recipients and to eligible contractors 
     that propose to replace eligible vehicles to serve 1 or more 
     communities located in an air quality area designated 
     pursuant to section 107 as nonattainment for any air 
     pollutant.
       ``(3) Reservation.--Of the funds appropriated by paragraph 
     (1), the Administrator shall reserve 3 percent for 
     administrative costs necessary to carry out this section.
       ``(b) Program.--Beginning not later than 180 days after the 
     date of enactment of this section, the Administrator shall 
     implement a program to make awards of grants and rebates to 
     eligible recipients, and to make awards of contracts to 
     eligible contractors for providing rebates, for up to 100 
     percent of costs for--
       ``(1) the incremental costs of replacing an eligible 
     vehicle that is not a zero-emission vehicle with a zero-
     emission vehicle, as determined by the Administrator based on 
     the market value of the vehicles;
       ``(2) purchasing, installing, operating, and maintaining 
     infrastructure needed to charge, fuel, or maintain zero-
     emission vehicles;
       ``(3) workforce development and training to support the 
     maintenance, charging, fueling, and operation of zero-
     emission vehicles; and
       ``(4) planning and technical activities to support the 
     adoption and deployment of zero-emission vehicles.
       ``(c) Applications.--To seek an award under this section, 
     an eligible recipient or eligible contractor shall submit to 
     the Administrator an application at such time, in such 
     manner, and containing such information as the Administrator 
     shall prescribe.
       ``(d) Definitions.--For purposes of this section:
       ``(1) Eligible contractor.--The term `eligible contractor' 
     means a contractor that has the capacity--
       ``(A) to sell, lease, license, or contract for service 
     zero-emission vehicles, or charging or other equipment needed 
     to charge, fuel, or maintain zero-emission vehicles, to 
     individuals or entities that own, lease, license, or contract 
     for service an eligible vehicle; or
       ``(B) to arrange financing for such a sale, lease, license, 
     or contract for service.
       ``(2) Eligible recipient.--The term `eligible recipient' 
     means--
       ``(A) a State;
       ``(B) a municipality;
       ``(C) an Indian tribe; or
       ``(D) a nonprofit school transportation association.
       ``(3) Eligible vehicle.--The term `eligible vehicle' means 
     a Class 6 or Class 7 heavy-duty vehicle as defined in section 
     1037.801 of title 40, Code of Federal Regulations (as in 
     effect on the date of enactment of this section).
       ``(4) Zero-emission vehicle.--The term `zero-emission 
     vehicle' means a vehicle that has a drivetrain that produces, 
     under any possible operational mode or condition, zero 
     exhaust emissions of--
       ``(A) any air pollutant that is listed pursuant to section 
     108(a) (or any precursor to such an air pollutant); and
       ``(B) any greenhouse gas (as defined in section 
     211(o)(1)(G) (as in effect on the date of enactment of this 
     section)).''.

     SEC. 60102. GRANTS TO REDUCE AIR POLLUTION AT PORTS.

       The Clean Air Act is amended by inserting after section 132 
     of such Act, as added by section 60101 of this Act, the 
     following:

     ``SEC. 133. GRANTS TO REDUCE AIR POLLUTION AT PORTS.

       ``(a) Appropriations.--
       ``(1) General assistance.--In addition to amounts otherwise 
     available, there is appropriated to the Administrator for 
     fiscal year 2022, out of any money in the Treasury not 
     otherwise appropriated, $2,250,000,000, to remain available 
     until September 30, 2027, to award rebates and grants to 
     eligible recipients on a competitive basis--
       ``(A) to purchase or install zero-emission port equipment 
     or technology for use at, or to directly serve, one or more 
     ports;

[[Page S3986]]

       ``(B) to conduct any relevant planning or permitting in 
     connection with the purchase or installation of such zero-
     emission port equipment or technology; and
       ``(C) to develop qualified climate action plans.
       ``(2) Nonattainment areas.--In addition to amounts 
     otherwise available, there is appropriated to the 
     Administrator for fiscal year 2022, out of any money in the 
     Treasury not otherwise appropriated, $750,000,000, to remain 
     available until September 30, 2027, to award rebates and 
     grants to eligible recipients to carry out activities 
     described in paragraph (1) with respect to ports located in 
     air quality areas designated pursuant to section 107 as 
     nonattainment for an air pollutant.
       ``(b) Limitation.--Funds awarded under this section shall 
     not be used by any recipient or subrecipient to purchase or 
     install zero-emission port equipment or technology that will 
     not be located at, or directly serve, the one or more ports 
     involved.
       ``(c) Administration of Funds.--Of the funds made available 
     by this section, the Administrator shall reserve 2 percent 
     for administrative costs necessary to carry out this section.
       ``(d) Definitions.--In this section:
       ``(1) Eligible recipient.--The term `eligible recipient' 
     means--
       ``(A) a port authority;
       ``(B) a State, regional, local, or Tribal agency that has 
     jurisdiction over a port authority or a port;
       ``(C) an air pollution control agency; or
       ``(D) a private entity (including a nonprofit organization) 
     that--
       ``(i) applies for a grant under this section in partnership 
     with an entity described in any of subparagraphs (A) through 
     (C); and
       ``(ii) owns, operates, or uses the facilities, cargo-
     handling equipment, transportation equipment, or related 
     technology of a port.
       ``(2) Greenhouse gas.--The term `greenhouse gas' has the 
     meaning given the term in section 211(o)(1)(G) (as in effect 
     on the date of enactment of this section).
       ``(3) Qualified climate action plan.--The term `qualified 
     climate action plan' means a detailed and strategic plan 
     that--
       ``(A) establishes goals, implementation strategies, and 
     accounting and inventory practices (including practices used 
     to measure progress toward stated goals) to reduce emissions 
     at one or more ports of--
       ``(i) greenhouse gases;
       ``(ii) an air pollutant that is listed pursuant to section 
     108(a) (or any precursor to such an air pollutant); and
       ``(iii) hazardous air pollutants;
       ``(B) includes a strategy to collaborate with, communicate 
     with, and address potential effects on stakeholders that may 
     be affected by implementation of the plan, including low-
     income and disadvantaged near-port communities; and
       ``(C) describes how an eligible recipient has implemented 
     or will implement measures to increase the resilience of the 
     one or more ports involved, including measures related to 
     withstanding and recovering from extreme weather events.
       ``(4) Zero-emission port equipment or technology.--The term 
     `zero-emission port equipment or technology' means human-
     operated equipment or human-maintained technology that--
       ``(A) produces zero emissions of any air pollutant that is 
     listed pursuant to section 108(a) (or any precursor to such 
     an air pollutant) and any greenhouse gas other than water 
     vapor; or
       ``(B) captures 100 percent of the emissions described in 
     subparagraph (A) that are produced by an ocean-going vessel 
     at berth.''.

     SEC. 60103. GREENHOUSE GAS REDUCTION FUND.

       The Clean Air Act is amended by inserting after section 133 
     of such Act, as added by section 60102 of this Act, the 
     following:

     ``SEC. 134. GREENHOUSE GAS REDUCTION FUND.

       ``(a) Appropriations.--
       ``(1) Zero-emission technologies.--In addition to amounts 
     otherwise available, there is appropriated to the 
     Administrator for fiscal year 2022, out of any money in the 
     Treasury not otherwise appropriated, $7,000,000,000, to 
     remain available until September 30, 2024, to make grants, on 
     a competitive basis and beginning not later than 180 calendar 
     days after the date of enactment of this section, to States, 
     municipalities, Tribal governments, and eligible recipients 
     for the purposes of providing grants, loans, or other forms 
     of financial assistance, as well as technical assistance, to 
     enable low-income and disadvantaged communities to deploy or 
     benefit from zero-emission technologies, including 
     distributed technologies on residential rooftops, and to 
     carry out other greenhouse gas emission reduction activities, 
     as determined appropriate by the Administrator in accordance 
     with this section.
       ``(2) General assistance.--In addition to amounts otherwise 
     available, there is appropriated to the Administrator for 
     fiscal year 2022, out of any money in the Treasury not 
     otherwise appropriated, $11,970,000,000, to remain available 
     until September 30, 2024, to make grants, on a competitive 
     basis and beginning not later than 180 calendar days after 
     the date of enactment of this section, to eligible recipients 
     for the purposes of providing financial assistance and 
     technical assistance in accordance with subsection (b).
       ``(3) Low-income and disadvantaged communities.--In 
     addition to amounts otherwise available, there is 
     appropriated to the Administrator for fiscal year 2022, out 
     of any money in the Treasury not otherwise appropriated, 
     $8,000,000,000, to remain available until September 30, 2024, 
     to make grants, on a competitive basis and beginning not 
     later than 180 calendar days after the date of enactment of 
     this section, to eligible recipients for the purposes of 
     providing financial assistance and technical assistance in 
     low-income and disadvantaged communities in accordance with 
     subsection (b).
       ``(4) Administrative costs.--In addition to amounts 
     otherwise available, there is appropriated to the 
     Administrator for fiscal year 2022, out of any money in the 
     Treasury not otherwise appropriated, $30,000,000, to remain 
     available until September 30, 2031, for the administrative 
     costs necessary to carry out activities under this section.
       ``(b) Use of Funds.--An eligible recipient that receives a 
     grant pursuant to subsection (a) shall use the grant in 
     accordance with the following:
       ``(1) Direct investment.--The eligible recipient shall--
       ``(A) provide financial assistance to qualified projects at 
     the national, regional, State, and local levels;
       ``(B) prioritize investment in qualified projects that 
     would otherwise lack access to financing; and
       ``(C) retain, manage, recycle, and monetize all repayments 
     and other revenue received from fees, interest, repaid loans, 
     and all other types of financial assistance provided using 
     grant funds under this section to ensure continued 
     operability.
       ``(2) Indirect investment.--The eligible recipient shall 
     provide funding and technical assistance to establish new or 
     support existing public, quasi-public, not-for-profit, or 
     nonprofit entities that provide financial assistance to 
     qualified projects at the State, local, territorial, or 
     Tribal level or in the District of Columbia, including 
     community- and low-income-focused lenders and capital 
     providers.
       ``(c) Definitions.--In this section:
       ``(1) Eligible recipient.--The term `eligible recipient' 
     means a nonprofit organization that--
       ``(A) is designed to provide capital, including by 
     leveraging private capital, and other forms of financial 
     assistance for the rapid deployment of low- and zero-emission 
     products, technologies, and services;
       ``(B) does not take deposits other than deposits from 
     repayments and other revenue received from financial 
     assistance provided using grant funds under this section;
       ``(C) is funded by public or charitable contributions; and
       ``(D) invests in or finances projects alone or in 
     conjunction with other investors.
       ``(2) Greenhouse gas.--The term `greenhouse gas' has the 
     meaning given the term in section 211(o)(1)(G) (as in effect 
     on the date of enactment of this section).
       ``(3) Qualified project.--The term `qualified project' 
     includes any project, activity, or technology that--
       ``(A) reduces or avoids greenhouse gas emissions and other 
     forms of air pollution in partnership with, and by leveraging 
     investment from, the private sector; or
       ``(B) assists communities in the efforts of those 
     communities to reduce or avoid greenhouse gas emissions and 
     other forms of air pollution.
       ``(4) Publicly available equipment.--The term `publicly 
     available equipment' means equipment that--
       ``(A) is located at a multi-unit housing structure;
       ``(B) is located at a workplace and is available to 
     employees of such workplace or employees of a nearby 
     workplace; or
       ``(C) is at a location that is publicly accessible for a 
     minimum of 12 hours per day at least 5 days per week and 
     networked or otherwise capable of being monitored remotely.
       ``(5) Zero-emission technology.--The term `zero-emission 
     technology' means any technology that produces zero emissions 
     of--
       ``(A) any air pollutant that is listed pursuant to section 
     108(a) (or any precursor to such an air pollutant); and
       ``(B) any greenhouse gas.''.

     SEC. 60104. DIESEL EMISSIONS REDUCTIONS.

       (a) Goods Movement.--In addition to amounts otherwise 
     available, there is appropriated to the Administrator of the 
     Environmental Protection Agency for fiscal year 2022, out of 
     any money in the Treasury not otherwise appropriated, 
     $60,000,000, to remain available until September 30, 2031, 
     for grants, rebates, and loans under section 792 of the 
     Energy Policy Act of 2005 (42 U.S.C. 16132) to identify and 
     reduce diesel emissions resulting from goods movement 
     facilities, and vehicles servicing goods movement facilities, 
     in low-income and disadvantaged communities to address the 
     health impacts of such emissions on such communities.
       (b) Administrative Costs.--The Administrator of the 
     Environmental Protection Agency shall reserve 2 percent of 
     the amounts made available under this section for the 
     administrative costs necessary to carry out activities 
     pursuant to this section.

     SEC. 60105. FUNDING TO ADDRESS AIR POLLUTION.

       (a) Fenceline Air Monitoring and Screening Air 
     Monitoring.--In addition to amounts otherwise available, 
     there is appropriated to the Administrator of the 
     Environmental Protection Agency for fiscal year 2022, out of 
     any money in the Treasury not otherwise appropriated, 
     $117,500,000, to remain available until September 30, 2031, 
     for grants and other activities authorized under subsections 
     (a) through (c) of section 103 and

[[Page S3987]]

     section 105 of the Clean Air Act (42 U.S.C. 7403(a)-(c), 
     7405) to deploy, integrate, support, and maintain fenceline 
     air monitoring, screening air monitoring, national air toxics 
     trend stations, and other air toxics and community 
     monitoring.
       (b) Multipollutant Monitoring Stations.--In addition to 
     amounts otherwise available, there is appropriated to the 
     Administrator of the Environmental Protection Agency for 
     fiscal year 2022, out of any money in the Treasury not 
     otherwise appropriated, $50,000,000, to remain available 
     until September 30, 2031, for grants and other activities 
     authorized under subsections (a) through (c) of section 103 
     and section 105 of the Clean Air Act (42 U.S.C. 7403(a)-(c), 
     7405)--
       (1) to expand the national ambient air quality monitoring 
     network with new multipollutant monitoring stations; and
       (2) to replace, repair, operate, and maintain existing 
     monitors.
       (c) Air Quality Sensors in Low-income and Disadvantaged 
     Communities.--In addition to amounts otherwise available, 
     there is appropriated to the Administrator of the 
     Environmental Protection Agency for fiscal year 2022, out of 
     any money in the Treasury not otherwise appropriated, 
     $3,000,000, to remain available until September 30, 2031, for 
     grants and other activities authorized under subsections (a) 
     through (c) of section 103 and section 105 of the Clean Air 
     Act (42 U.S.C. 7403(a)-(c), 7405) to deploy, integrate, and 
     operate air quality sensors in low-income and disadvantaged 
     communities.
       (d) Emissions From Wood Heaters.--In addition to amounts 
     otherwise available, there is appropriated to the 
     Administrator of the Environmental Protection Agency for 
     fiscal year 2022, out of any money in the Treasury not 
     otherwise appropriated, $15,000,000, to remain available 
     until September 30, 2031, for grants and other activities 
     authorized under subsections (a) through (c) of section 103 
     and section 105 of the Clean Air Act (42 U.S.C. 7403(a)-(c), 
     7405) for testing and other agency activities to address 
     emissions from wood heaters.
       (e) Methane Monitoring.--In addition to amounts otherwise 
     available, there is appropriated to the Administrator of the 
     Environmental Protection Agency for fiscal year 2022, out of 
     any money in the Treasury not otherwise appropriated, 
     $20,000,000, to remain available until September 30, 2031, 
     for grants and other activities authorized under subsections 
     (a) through (c) of section 103 and section 105 of the Clean 
     Air Act (42 U.S.C. 7403(a)-(c), 7405) for monitoring 
     emissions of methane.
       (f) Clean Air Act Grants.--In addition to amounts otherwise 
     available, there is appropriated to the Administrator of the 
     Environmental Protection Agency for fiscal year 2022, out of 
     any money in the Treasury not otherwise appropriated, 
     $25,000,000, to remain available until September 30, 2031, 
     for grants and other activities authorized under subsections 
     (a) through (c) of section 103 and section 105 of the Clean 
     Air Act (42 U.S.C. 7403(a)-(c), 7405).
       (g) Other Activities.--In addition to amounts otherwise 
     available, there is appropriated to the Administrator of the 
     Environmental Protection Agency for fiscal year 2022, out of 
     any money in the Treasury not otherwise appropriated, 
     $45,000,000, to remain available until September 30, 2031, to 
     carry out, with respect to greenhouse gases, sections 111, 
     115, 165, 177, 202, 211, 213, 231, and 612 of the Clean Air 
     Act (42 U.S.C. 7411, 7415, 7475, 7507, 7521, 7545, 7547, 
     7571, and 7671k).
       (h) Greenhouse Gas and Zero-emission Standards for Mobile 
     Sources.--In addition to amounts otherwise available, there 
     is appropriated to the Administrator of the Environmental 
     Protection Agency for fiscal year 2022, out of any money in 
     the Treasury not otherwise appropriated, $5,000,000, to 
     remain available until September 30, 2031, to provide grants 
     to States to adopt and implement greenhouse gas and zero-
     emission standards for mobile sources pursuant to section 177 
     of the Clean Air Act (42 U.S.C. 7507).
       (i) Definition of Greenhouse Gas.--In this section, the 
     term ``greenhouse gas'' has the meaning given the term in 
     section 211(o)(1)(G) of the Clean Air Act (42 U.S.C. 
     7545(o)(1)(G)) (as in effect on the date of enactment of this 
     Act).

     SEC. 60106. FUNDING TO ADDRESS AIR POLLUTION AT SCHOOLS.

       (a) In General.--In addition to amounts otherwise 
     available, there is appropriated to the Administrator of the 
     Environmental Protection Agency for fiscal year 2022, out of 
     any money in the Treasury not otherwise appropriated, 
     $37,500,000, to remain available until September 30, 2031, 
     for grants and other activities to monitor and reduce air 
     pollution and greenhouse gas (as defined in section 
     211(o)(1)(G) of the Clean Air Act (42 U.S.C. 7545(o)(1)(G)) 
     (as in effect on the date of enactment of this Act)) 
     emissions at schools in low-income and disadvantaged 
     communities under subsections (a) through (c) of section 103 
     of the Clean Air Act (42 U.S.C. 7403(a)-(c)) and section 105 
     of that Act (42 U.S.C. 7405).
       (b) Technical Assistance.--In addition to amounts otherwise 
     available, there is appropriated to the Administrator of the 
     Environmental Protection Agency for fiscal year 2022, out of 
     any money in the Treasury not otherwise appropriated, 
     $12,500,000, to remain available until September 30, 2031, 
     for providing technical assistance to schools in low-income 
     and disadvantaged communities under subsections (a) through 
     (c) of section 103 of the Clean Air Act (42 U.S.C. 7403(a)-
     (c)) and section 105 of that Act (42 U.S.C. 7405)--
       (1) to address environmental issues;
       (2) to develop school environmental quality plans that 
     include standards for school building, design, construction, 
     and renovation; and
       (3) to identify and mitigate ongoing air pollution hazards.

     SEC. 60107. LOW EMISSIONS ELECTRICITY PROGRAM.

       The Clean Air Act is amended by inserting after section 134 
     of such Act, as added by section 60103 of this Act, the 
     following:

     ``SEC. 135. LOW EMISSIONS ELECTRICITY PROGRAM.

       ``(a) Appropriation.--In addition to amounts otherwise 
     available, there is appropriated to the Administrator for 
     fiscal year 2022, out of any money in the Treasury not 
     otherwise appropriated, to remain available until September 
     30, 2031--
       ``(1) $17,000,000 for consumer-related education and 
     partnerships with respect to reductions in greenhouse gas 
     emissions that result from domestic electricity generation 
     and use;
       ``(2) $17,000,000 for education, technical assistance, and 
     partnerships within low-income and disadvantaged communities 
     with respect to reductions in greenhouse gas emissions that 
     result from domestic electricity generation and use;
       ``(3) $17,000,000 for industry-related outreach and 
     technical assistance, including through partnerships, with 
     respect to reductions in greenhouse gas emissions that result 
     from domestic electricity generation and use;
       ``(4) $17,000,000 for outreach and technical assistance to 
     State, Tribal, and local governments, including through 
     partnerships, with respect to reductions in greenhouse gas 
     emissions that result from domestic electricity generation 
     and use;
       ``(5) $1,000,000 to assess, not later than 1 year after the 
     date of enactment of this section, the reductions in 
     greenhouse gas emissions that result from changes in domestic 
     electricity generation and use that are anticipated to occur 
     on an annual basis through fiscal year 2031; and
       ``(6) $18,000,000 to carry out this section to ensure that 
     reductions in greenhouse gas emissions from domestic 
     electricity generation and use are achieved through use of 
     the authorities of this Act, including through the 
     establishment of requirements under this Act, incorporating 
     the assessment under paragraph (5) as a baseline.
       ``(b) Administration of Funds.--Of the amounts made 
     available under subsection (a), the Administrator shall 
     reserve 2 percent for the administrative costs necessary to 
     carry out activities pursuant to that subsection.
       ``(c) Definition of Greenhouse Gas.--In this section, the 
     term `greenhouse gas' has the meaning given the term in 
     section 211(o)(1)(G) (as in effect on the date of enactment 
     of this section).''.

     SEC. 60108. FUNDING FOR SECTION 211(O) OF THE CLEAN AIR ACT.

       (a) Test and Protocol Development.--In addition to amounts 
     otherwise available, there is appropriated to the 
     Administrator of the Environmental Protection Agency for 
     fiscal year 2022, out of any money in the Treasury not 
     otherwise appropriated, $5,000,000, to remain available until 
     September 30, 2031, to carry out section 211(o) of the Clean 
     Air Act (42 U.S.C. 7545(o)) with respect to--
       (1) the development and establishment of tests and 
     protocols regarding the environmental and public health 
     effects of a fuel or fuel additive;
       (2) internal and extramural data collection and analyses to 
     regularly update applicable regulations, guidance, and 
     procedures for determining lifecycle greenhouse gas emissions 
     of a fuel; and
       (3) the review, analysis and evaluation of the impacts of 
     all transportation fuels, including fuel lifecycle 
     implications, on the general public and on low-income and 
     disadvantaged communities.
       (b) Investments in Advanced Biofuels.--In addition to 
     amounts otherwise available, there is appropriated to the 
     Administrator of the Environmental Protection Agency for 
     fiscal year 2022, out of any money in the Treasury not 
     otherwise appropriated, $10,000,000, to remain available 
     until September 30, 2031, for new grants to industry and 
     other related activities under section 211(o) of the Clean 
     Air Act (42 U.S.C. 7545(o)) to support investments in 
     advanced biofuels.
       (c) Definition of Greenhouse Gas.--In this section, the 
     term ``greenhouse gas'' has the meaning given the term in 
     section 211(o)(1)(G) of the Clean Air Act (42 U.S.C. 
     7545(o)(1)(G)) (as in effect on the date of enactment of this 
     Act).

     SEC. 60109. FUNDING FOR IMPLEMENTATION OF THE AMERICAN 
                   INNOVATION AND MANUFACTURING ACT.

       (a) Appropriations.--
       (1) In general.--In addition to amounts otherwise 
     available, there is appropriated to the Administrator of the 
     Environmental Protection Agency for fiscal year 2022, out of 
     any money in the Treasury not otherwise appropriated, 
     $20,000,000, to remain available until September 30, 2026, to 
     carry out subsections (a) through (i) and subsection (k) of 
     section 103 of division S of Public Law 116-260 (42 U.S.C. 
     7675).
       (2) Implementation and compliance tools.--In addition to 
     amounts otherwise available, there is appropriated to the 
     Administrator of the Environmental Protection Agency for 
     fiscal year 2022, out of any money

[[Page S3988]]

     in the Treasury not otherwise appropriated, $3,500,000, to 
     remain available until September 30, 2026, to deploy new 
     implementation and compliance tools to carry out subsections 
     (a) through (i) and subsection (k) of section 103 of division 
     S of Public Law 116-260 (42 U.S.C. 7675).
       (3) Competitive grants.--In addition to amounts otherwise 
     available, there is appropriated to the Administrator of the 
     Environmental Protection Agency for fiscal year 2022, out of 
     any money in the Treasury not otherwise appropriated, 
     $15,000,000, to remain available until September 30, 2026, 
     for competitive grants for reclaim and innovative destruction 
     technologies under subsections (a) through (i) and subsection 
     (k) of section 103 of division S of Public Law 116-260 (42 
     U.S.C. 7675).
       (b) Administration of Funds.--Of the funds made available 
     pursuant to subsection (a)(3), the Administrator of the 
     Environmental Protection Agency shall reserve 5 percent for 
     administrative costs necessary to carry out activities 
     pursuant to such subsection.

     SEC. 60110. FUNDING FOR ENFORCEMENT TECHNOLOGY AND PUBLIC 
                   INFORMATION.

       (a) Compliance Monitoring.--In addition to amounts 
     otherwise available, there is appropriated to the 
     Administrator of the Environmental Protection Agency for 
     fiscal year 2022, out of any money in the Treasury not 
     otherwise appropriated, $18,000,000, to remain available 
     until September 30, 2031, to update the Integrated Compliance 
     Information System of the Environmental Protection Agency and 
     any associated systems, necessary information technology 
     infrastructure, or public access software tools to ensure 
     access to compliance data and related information.
       (b) Communications With ICIS.--In addition to amounts 
     otherwise available, there is appropriated to the 
     Administrator of the Environmental Protection Agency for 
     fiscal year 2022, out of any money in the Treasury not 
     otherwise appropriated, $3,000,000, to remain available until 
     September 30, 2031, for grants to States, Indian tribes, and 
     air pollution control agencies (as such terms are defined in 
     section 302 of the Clean Air Act (42 U.S.C. 7602)) to update 
     their systems to ensure communication with the Integrated 
     Compliance Information System of the Environmental Protection 
     Agency and any associated systems.
       (c) Inspection Software.--In addition to amounts otherwise 
     available, there is appropriated to the Administrator of the 
     Environmental Protection Agency for fiscal year 2022, out of 
     any money in the Treasury not otherwise appropriated, 
     $4,000,000, to remain available until September 30, 2031--
       (1) to acquire or update inspection software for use by the 
     Environmental Protection Agency, States, Indian tribes, and 
     air pollution control agencies (as such terms are defined in 
     section 302 of the Clean Air Act (42 U.S.C. 7602)); or
       (2) to acquire necessary devices on which to run such 
     inspection software.

     SEC. 60111. GREENHOUSE GAS CORPORATE REPORTING.

       In addition to amounts otherwise available, there is 
     appropriated to the Administrator of the Environmental 
     Protection Agency for fiscal year 2022, out of any money in 
     the Treasury not otherwise appropriated, $5,000,000, to 
     remain available until September 30, 2031, for the 
     Environmental Protection Agency to support--
       (1) enhanced standardization and transparency of corporate 
     climate action commitments and plans to reduce greenhouse gas 
     (as defined in section 211(o)(1)(G) of the Clean Air Act (42 
     U.S.C. 7545(o)(1)(G)) (as in effect on the date of enactment 
     of this Act)) emissions;
       (2) enhanced transparency regarding progress toward meeting 
     such commitments and implementing such plans; and
       (3) progress toward meeting such commitments and 
     implementing such plans.

     SEC. 60112. ENVIRONMENTAL PRODUCT DECLARATION ASSISTANCE.

       (a) In General.--In addition to amounts otherwise 
     available, there is appropriated to the Administrator of the 
     Environmental Protection Agency for fiscal year 2022, out of 
     any money in the Treasury not otherwise appropriated, 
     $250,000,000, to remain available until September 30, 2031, 
     to develop and carry out a program to support the 
     development, and enhanced standardization and transparency, 
     of environmental product declarations for construction 
     materials and products, including by--
       (1) providing grants to businesses that manufacture 
     construction materials and products for developing and 
     verifying environmental product declarations, and to States, 
     Indian Tribes, and nonprofit organizations that will support 
     such businesses;
       (2) providing technical assistance to businesses that 
     manufacture construction materials and products in developing 
     and verifying environmental product declarations, and to 
     States, Indian Tribes, and nonprofit organizations that will 
     support such businesses; and
       (3) carrying out other activities that assist in measuring, 
     reporting, and steadily reducing the quantity of embodied 
     carbon of construction materials and products.
       (b) Administrative Costs.--Of the amounts made available 
     under this section, the Administrator of the Environmental 
     Protection Agency shall reserve 5 percent for administrative 
     costs necessary to carry out this section.
       (c) Definitions.--In this section:
       (1) Embodied carbon.--The term ``embodied carbon'' means 
     the quantity of greenhouse gas (as defined in section 
     211(o)(1)(G) of the Clean Air Act (42 U.S.C. 7545(o)(1)(G)) 
     (as in effect on the date of enactment of this Act)) 
     emissions associated with all relevant stages of production 
     of a material or product, measured in kilograms of carbon 
     dioxide-equivalent per unit of such material or product.
       (2) Environmental product declaration.--The term 
     ``environmental product declaration'' means a document that 
     reports the environmental impact of a material or product 
     that--
       (A) includes measurement of the embodied carbon of the 
     material or product;
       (B) conforms with international standards, such as a Type 
     III environmental product declaration, as defined by the 
     International Organization for Standardization standard 
     14025; and
       (C) is developed in accordance with any standardized 
     reporting criteria specified by the Administrator of the 
     Environmental Protection Agency.
       (3) State.--The term ``State'' has the meaning given to 
     that term in section 302(d) of the Clean Air Act (42 U.S.C. 
     7602(d)).

     SEC. 60113. METHANE EMISSIONS REDUCTION PROGRAM.

       The Clean Air Act is amended by inserting after section 135 
     of such Act, as added by section 60107 of this Act, the 
     following:

     ``SEC. 136. METHANE EMISSIONS AND WASTE REDUCTION INCENTIVE 
                   PROGRAM FOR PETROLEUM AND NATURAL GAS SYSTEMS.

       ``(a) Incentives for Methane Mitigation and Monitoring.--In 
     addition to amounts otherwise available, there is 
     appropriated to the Administrator for fiscal year 2022, out 
     of any money in the Treasury not otherwise appropriated, 
     $850,000,000, to remain available until September 30, 2028--
       ``(1) for grants, rebates, contracts, loans, and other 
     activities of the Environmental Protection Agency for the 
     purposes of providing financial and technical assistance to 
     owners and operators of applicable facilities to prepare and 
     submit greenhouse gas reports under subpart W of part 98 of 
     title 40, Code of Federal Regulations;
       ``(2) for grants, rebates, contracts, loans, and other 
     activities of the Environmental Protection Agency authorized 
     under subsections (a) through (c) of section 103 for methane 
     emissions monitoring;
       ``(3) for grants, rebates, contracts, loans, and other 
     activities of the Environmental Protection Agency for the 
     purposes of providing financial and technical assistance to 
     reduce methane and other greenhouse gas emissions from 
     petroleum and natural gas systems, mitigate legacy air 
     pollution from petroleum and natural gas systems, and provide 
     support for communities, including funding for--
       ``(A) improving climate resiliency of communities and 
     petroleum and natural gas systems;
       ``(B) improving and deploying industrial equipment and 
     processes that reduce methane and other greenhouse gas 
     emissions and waste;
       ``(C) supporting innovation in reducing methane and other 
     greenhouse gas emissions and waste from petroleum and natural 
     gas systems;
       ``(D) permanently shutting in and plugging wells on non-
     Federal land;
       ``(E) mitigating health effects of methane and other 
     greenhouse gas emissions, and legacy air pollution from 
     petroleum and natural gas systems in low-income and 
     disadvantaged communities; and
       ``(F) supporting environmental restoration; and
       ``(4) to cover all direct and indirect costs required to 
     administer this section, including the costs of implementing 
     the waste emissions charge under subsection (c), preparing 
     inventories, gathering empirical data, and tracking 
     emissions.
       ``(b) Incentives for Methane Mitigation From Conventional 
     Wells.--In addition to amounts otherwise available, there is 
     appropriated to the Administrator for fiscal year 2022, out 
     of any money in the Treasury not otherwise appropriated, 
     $700,000,000, to remain available until September 30, 2028, 
     for activities described in paragraphs (1) through (4) of 
     subsection (a) at marginal conventional wells.
       ``(c) Waste Emissions Charge.--The Administrator shall 
     impose and collect a charge on methane emissions that exceed 
     an applicable waste emissions threshold under subsection (f) 
     from an owner or operator of an applicable facility that 
     reports more than 25,000 metric tons of carbon dioxide 
     equivalent of greenhouse gases emitted per year pursuant to 
     subpart W of part 98 of title 40, Code of Federal 
     Regulations, regardless of the reporting threshold under that 
     subpart.
       ``(d) Applicable Facility.--For purposes of this section, 
     the term `applicable facility' means a facility within the 
     following industry segments, as defined in subpart W of part 
     98 of title 40, Code of Federal Regulations:
       ``(1) Offshore petroleum and natural gas production.
       ``(2) Onshore petroleum and natural gas production.
       ``(3) Onshore natural gas processing.
       ``(4) Onshore natural gas transmission compression.
       ``(5) Underground natural gas storage.
       ``(6) Liquefied natural gas storage.
       ``(7) Liquefied natural gas import and export equipment.
       ``(8) Onshore petroleum and natural gas gathering and 
     boosting.

[[Page S3989]]

       ``(9) Onshore natural gas transmission pipeline.
       ``(e) Charge Amount.--The amount of a charge under 
     subsection (c) for an applicable facility shall be equal to 
     the product obtained by multiplying--
       ``(1) the number of metric tons of methane emissions 
     reported pursuant to subpart W of part 98 of title 40, Code 
     of Federal Regulations, for the applicable facility that 
     exceed the applicable annual waste emissions threshold listed 
     in subsection (f) during the previous reporting period; and
       ``(2)(A) $900 for emissions reported for calendar year 
     2024;
       ``(B) $1,200 for emissions reported for calendar year 2025; 
     or
       ``(C) $1,500 for emissions reported for calendar year 2026 
     and each year thereafter.
       ``(f) Waste Emissions Threshold.--
       ``(1) Petroleum and natural gas production.--With respect 
     to imposing and collecting the charge under subsection (c) 
     for an applicable facility in an industry segment listed in 
     paragraph (1) or (2) of subsection (d), the Administrator 
     shall impose and collect the charge on the reported metric 
     tons of methane emissions from such facility that exceed--
       ``(A) 0.20 percent of the natural gas sent to sale from 
     such facility; or
       ``(B) 10 metric tons of methane per million barrels of oil 
     sent to sale from such facility, if such facility sent no 
     natural gas to sale.
       ``(2) Nonproduction petroleum and natural gas systems.--
     With respect to imposing and collecting the charge under 
     subsection (c) for an applicable facility in an industry 
     segment listed in paragraph (3), (6), (7), or (8) of 
     subsection (d), the Administrator shall impose and collect 
     the charge on the reported metric tons of methane emissions 
     that exceed 0.05 percent of the natural gas sent to sale from 
     such facility.
       ``(3) Natural gas transmission.--With respect to imposing 
     and collecting the charge under subsection (c) for an 
     applicable facility in an industry segment listed in 
     paragraph (4), (5), or (9) of subsection (d), the 
     Administrator shall impose and collect the charge on the 
     reported metric tons of methane emissions that exceed 0.11 
     percent of the natural gas sent to sale from such facility.
       ``(4) Common ownership or control.--In calculating the 
     total emissions charge obligation for facilities under common 
     ownership or control, the Administrator shall allow for the 
     netting of emissions by reducing the total obligation to 
     account for facility emissions levels that are below the 
     applicable thresholds within and across all applicable 
     segments identified in subsection (d).
       ``(5) Exemption.--Charges shall not be imposed pursuant to 
     paragraph (1) on emissions that exceed the waste emissions 
     threshold specified in such paragraph if such emissions are 
     caused by unreasonable delay, as determined by the 
     Administrator, in environmental permitting of gathering or 
     transmission infrastructure necessary for offtake of 
     increased volume as a result of methane emissions mitigation 
     implementation.
       ``(6) Exemption for regulatory compliance.--
       ``(A) In general.--Charges shall not be imposed pursuant to 
     subsection (c) on an applicable facility that is subject to 
     and in compliance with methane emissions requirements 
     pursuant to subsections (b) and (d) of section 111 upon a 
     determination by the Administrator that--
       ``(i) methane emissions standards and plans pursuant to 
     subsections (b) and (d) of section 111 have been approved and 
     are in effect in all States with respect to the applicable 
     facilities; and
       ``(ii) compliance with the requirements described in clause 
     (i) will result in equivalent or greater emissions reductions 
     as would be achieved by the proposed rule of the 
     Administrator entitled `Standards of Performance for New, 
     Reconstructed, and Modified Sources and Emissions Guidelines 
     for Existing Sources: Oil and Natural Gas Sector Climate 
     Review' (86 Fed. Reg. 63110 (November 15, 2021)), if such 
     rule had been finalized and implemented.
       ``(B) Resumption of charge.--If the conditions in clause 
     (i) or (ii) of subparagraph (A) cease to apply after the 
     Administrator has made the determination in that 
     subparagraph, the applicable facility will again be subject 
     to the charge under subsection (c) beginning in the first 
     calendar year in which the conditions in either clause (i) or 
     (ii) of that subparagraph are no longer met.
       ``(7) Plugged wells.--Charges shall not be imposed with 
     respect to the emissions rate from any well that has been 
     permanently shut-in and plugged in the previous year in 
     accordance with all applicable closure requirements, as 
     determined by the Administrator.
       ``(g) Period.--The charge under subsection (c) shall be 
     imposed and collected beginning with respect to emissions 
     reported for calendar year 2024 and for each year thereafter.
       ``(h) Implementation.--In addition to other authorities in 
     this Act addressing air pollution from the oil and natural 
     gas sectors, the Administrator may issue guidance or 
     regulations as necessary to carry out this section.
       ``(i) Reporting.--Not later than 2 years after the date of 
     enactment of this section, and as necessary thereafter, the 
     Administrator shall revise the requirements of subpart W of 
     part 98 of title 40, Code of Federal Regulations, to ensure 
     the reporting under such subpart, and calculation of charges 
     under subsections (e) and (f) of this section, are based on 
     empirical data, including data collected pursuant to 
     subsection (a)(4), accurately reflect the total methane 
     emissions and waste emissions from the applicable facilities, 
     and allow owners and operators of applicable facilities to 
     submit empirical emissions data, in a manner to be prescribed 
     by the Administrator, to demonstrate the extent to which a 
     charge under subsection (c) is owed.
       ``(j) Liability for Charge Payment.--Except as established 
     under this section, a facility owner or operator's liability 
     for payment of the charge under subsection (c) is not 
     affected in any way by emission standards, permit fees, 
     penalties, or other requirements under this Act or any other 
     legal authorities.
       ``(k) Definition of Greenhouse Gas.--In this section, the 
     term `greenhouse gas' has the meaning given the term in 
     section 211(o)(1)(G) (as in effect on the date of enactment 
     of this section).''.

     SEC. 60114. CLIMATE POLLUTION REDUCTION GRANTS.

       The Clean Air Act is amended by inserting after section 136 
     of such Act, as added by section 60113 of this Act, the 
     following:

     ``SEC. 137. GREENHOUSE GAS AIR POLLUTION PLANS AND 
                   IMPLEMENTATION GRANTS.

       ``(a) Appropriations.--
       ``(1) Greenhouse gas air pollution planning grants.--In 
     addition to amounts otherwise available, there is 
     appropriated to the Administrator for fiscal year 2022, out 
     of any amounts in the Treasury not otherwise appropriated, 
     $250,000,000, to remain available until September 30, 2031, 
     to carry out subsection (b).
       ``(2) Greenhouse gas air pollution implementation grants.--
     In addition to amounts otherwise available, there is 
     appropriated to the Administrator for fiscal year 2022, out 
     of any amounts in the Treasury not otherwise appropriated, 
     $4,750,000,000, to remain available until September 30, 2026, 
     to carry out subsection (c).
       ``(3) Administrative costs.--Of the funds made available 
     under paragraph (2), the Administrator shall reserve 3 
     percent for administrative costs necessary to carry out this 
     section, including providing technical assistance to eligible 
     entities, developing a plan that could be used as a model by 
     grantees in developing a plan under subsection (b), and 
     modeling the effects of plans described in this section.
       ``(b) Greenhouse Gas Air Pollution Planning Grants.--The 
     Administrator shall make a grant to at least one eligible 
     entity in each State for the costs of developing a plan for 
     the reduction of greenhouse gas air pollution to be submitted 
     with an application for a grant under subsection (c). Each 
     such plan shall include programs, policies, measures, and 
     projects that will achieve or facilitate the reduction of 
     greenhouse gas air pollution. Not later than 270 days after 
     the date of enactment of this section, the Administrator 
     shall publish a funding opportunity announcement for grants 
     under this subsection.
       ``(c) Greenhouse Gas Air Pollution Reduction Implementation 
     Grants.--
       ``(1) In general.--The Administrator shall competitively 
     award grants to eligible entities to implement plans 
     developed under subsection (b).
       ``(2) Application.--To apply for a grant under this 
     subsection, an eligible entity shall submit to the 
     Administrator an application at such time, in such manner, 
     and containing such information as the Administrator shall 
     require, which such application shall include information 
     regarding--
       ``(A) the degree to which greenhouse gas air pollution is 
     projected to be reduced, including with respect to low-income 
     and disadvantaged communities; and
       ``(B) the quantifiability, specificity, additionality, 
     permanence, and verifiability of such projected greenhouse 
     gas air pollution reduction.
       ``(3) Terms and conditions.--The Administrator shall make 
     funds available to a grantee under this subsection in such 
     amounts, upon such a schedule, and subject to such conditions 
     based on its performance in implementing its plan submitted 
     under this section and in achieving projected greenhouse gas 
     air pollution reduction, as determined by the Administrator.
       ``(d) Definitions.--In this section:
       ``(1) Eligible entity.--The term `eligible entity' means--
       ``(A) a State;
       ``(B) an air pollution control agency;
       ``(C) a municipality;
       ``(D) an Indian tribe; and
       ``(E) a group of one or more entities listed in 
     subparagraphs (A) through (D).
       ``(2) Greenhouse gas.--The term `greenhouse gas' has the 
     meaning given the term in section 211(o)(1)(G) (as in effect 
     on the date of enactment of this section).''.

     SEC. 60115. ENVIRONMENTAL PROTECTION AGENCY EFFICIENT, 
                   ACCURATE, AND TIMELY REVIEWS.

        In addition to amounts otherwise available, there is 
     appropriated to the Environmental Protection Agency for 
     fiscal year 2022, out of any money in the Treasury not 
     otherwise appropriated, $40,000,000, to remain available 
     until September 30, 2026, to provide for the development of 
     efficient, accurate, and timely reviews for permitting and 
     approval processes through the hiring and training of 
     personnel, the development of programmatic documents, the 
     procurement of technical or scientific services for reviews, 
     the development of environmental data or information systems, 
     stakeholder and community engagement, the purchase of new

[[Page S3990]]

     equipment for environmental analysis, and the development of 
     geographic information systems and other analysis tools, 
     techniques, and guidance to improve agency transparency, 
     accountability, and public engagement.

     SEC. 60116. LOW-EMBODIED CARBON LABELING FOR CONSTRUCTION 
                   MATERIALS.

       (a) In General.--In addition to amounts otherwise 
     available, there is appropriated to the Administrator of the 
     Environmental Protection Agency for fiscal year 2022, out of 
     any money in the Treasury not otherwise appropriated, 
     $100,000,000, to remain available until September 30, 2026, 
     for necessary administrative costs of the Administrator of 
     the Environmental Protection Agency to carry out this section 
     and to develop and carry out a program, in consultation with 
     the Administrator of the Federal Highway Administration for 
     construction materials used in transportation projects and 
     the Administrator of General Services for construction 
     materials used for Federal buildings, to identify and label 
     low-embodied carbon construction materials and products based 
     on--
       (1) environmental product declarations;
       (2) determinations of the California Department of General 
     Services Procurement Division, in consultation with the 
     California Air Resources Board; or
       (3) determinations by other State agencies, as verified by 
     the Administrator of the Environmental Protection Agency.
       (b) Definitions.--In this section:
       (1) Embodied carbon.--The term ``embodied carbon'' means 
     the quantity of greenhouse gas (as defined in section 
     211(o)(1)(G) of the Clean Air Act (42 U.S.C. 7545(o)(1)(G)) 
     (as in effect on the date of enactment of this Act)) 
     emissions associated with all relevant stages of production 
     of a material or product, measured in kilograms of carbon 
     dioxide-equivalent per unit of such material or product.
       (2) Environmental product declaration.--The term 
     ``environmental product declaration'' means a document that 
     reports the environmental impact of a material or product 
     that--
       (A) includes measurement of the embodied carbon of the 
     material or product;
       (B) conforms with international standards, such as a Type 
     III environmental product declaration as defined by the 
     International Organization for Standardization standard 
     14025; and
       (C) is developed in accordance with any standardized 
     reporting criteria specified by the Administrator of the 
     Environmental Protection Agency.
       (3) Low-embodied carbon construction materials and 
     products.--The term ``low-embodied carbon construction 
     materials and products'' means construction materials and 
     products identified by the Administrator of the Environmental 
     Protection Agency as having substantially lower levels of 
     embodied carbon as compared to estimated industry averages of 
     similar materials or products.

                    Subtitle B--Hazardous Materials

     SEC. 60201. ENVIRONMENTAL AND CLIMATE JUSTICE BLOCK GRANTS.

       The Clean Air Act is amended by inserting after section 
     137, as added by subtitle A of this title, the following:

     ``SEC. 138. ENVIRONMENTAL AND CLIMATE JUSTICE BLOCK GRANTS.

       ``(a) Appropriation.--In addition to amounts otherwise 
     available, there is appropriated to the Administrator for 
     fiscal year 2022, out of any money in the Treasury not 
     otherwise appropriated--
       ``(1) $2,800,000,000 to remain available until September 
     30, 2026, to award grants for the activities described in 
     subsection (b); and
       ``(2) $200,000,000 to remain available until September 30, 
     2026, to provide technical assistance to eligible entities 
     related to grants awarded under this section.
       ``(b) Grants.--
       ``(1) In general.--The Administrator shall use amounts made 
     available under subsection (a)(1) to award grants for periods 
     of up to 3 years to eligible entities to carry out activities 
     described in paragraph (2) that benefit disadvantaged 
     communities, as defined by the Administrator.
       ``(2) Eligible activities.--An eligible entity may use a 
     grant awarded under this subsection for--
       ``(A) community-led air and other pollution monitoring, 
     prevention, and remediation, and investments in low- and 
     zero-emission and resilient technologies and related 
     infrastructure and workforce development that help reduce 
     greenhouse gas (as defined in section 211(o)(1)(G) (as in 
     effect on the date of enactment of this section)) emissions 
     and other air pollutants;
       ``(B) mitigating climate and health risks from urban heat 
     islands, extreme heat, wood heater emissions, and wildfire 
     events;
       ``(C) climate resiliency and adaptation;
       ``(D) reducing indoor toxics and indoor air pollution; or
       ``(E) facilitating engagement of disadvantaged communities 
     in State and Federal public processes, including facilitating 
     such engagement in advisory groups, workshops, and 
     rulemakings.
       ``(3) Eligible entities.--In this subsection, the term 
     `eligible entity' means--
       ``(A) a partnership between--
       ``(i) an Indian tribe, a local government, or an 
     institution of higher education; and
       ``(ii) a community-based nonprofit organization;
       ``(B) a community-based nonprofit organization; or
       ``(C) a partnership of community-based nonprofit 
     organizations.
       ``(c) Administrative Costs.--The Administrator shall 
     reserve 7 percent of the amounts made available under 
     subsection (a) for administrative costs to carry out this 
     section.''.

          Subtitle C--United States Fish and Wildlife Service

     SEC. 60301. ENDANGERED SPECIES ACT RECOVERY PLANS.

       In addition to amounts otherwise available, there is 
     appropriated to the United States Fish and Wildlife Service 
     for fiscal year 2022, out of any money in the Treasury not 
     otherwise appropriated, $125,000,000, to remain available 
     until expended, for the purposes of developing and 
     implementing recovery plans under paragraphs (1), (3), and 
     (4) of subsection (f) of section 4 of the Endangered Species 
     Act of 1973 (16 U.S.C. 1533(f)).

     SEC. 60302. FUNDING FOR THE UNITED STATES FISH AND WILDLIFE 
                   SERVICE TO ADDRESS CLIMATE-INDUCED WEATHER 
                   EVENTS.

       (a) In General.--In addition to amounts otherwise 
     available, there is appropriated to the United States Fish 
     and Wildlife Service for fiscal year 2022, out of any money 
     in the Treasury not otherwise appropriated, $121,250,000, to 
     remain available until September 30, 2026, to make direct 
     expenditures, award grants, and enter into contracts and 
     cooperative agreements for the purposes of rebuilding and 
     restoring units of the National Wildlife Refuge System and 
     State wildlife management areas, including by--
       (1) addressing the threat of invasive species;
       (2) increasing the resiliency and capacity of habitats and 
     infrastructure to withstand climate-induced weather events; 
     and
       (3) reducing the amount of damage caused by climate-induced 
     weather events.
       (b) Administrative Costs.--In addition to amounts otherwise 
     available, there is appropriated to the United States Fish 
     and Wildlife Service for fiscal year 2022, out of any money 
     in the Treasury not otherwise appropriated, $3,750,000, to 
     remain available until September 30, 2026, for necessary 
     administrative expenses associated with carrying out this 
     section.

              Subtitle D--Council on Environmental Quality

     SEC. 60401. ENVIRONMENTAL AND CLIMATE DATA COLLECTION.

       In addition to amounts otherwise available, there is 
     appropriated to the Chair of the Council on Environmental 
     Quality for fiscal year 2022, out of any money in the 
     Treasury not otherwise appropriated, $32,500,000, to remain 
     available until September 30, 2026--
       (1) to support data collection efforts relating to--
       (A) disproportionate negative environmental harms and 
     climate impacts; and
       (B) cumulative impacts of pollution and temperature rise;
       (2) to establish, expand, and maintain efforts to track 
     disproportionate burdens and cumulative impacts, including 
     academic and workforce support for analytics and informatics 
     infrastructure and data collection systems; and
       (3) to support efforts to ensure that any mapping or 
     screening tool is accessible to community-based organizations 
     and community members.

     SEC. 60402. COUNCIL ON ENVIRONMENTAL QUALITY EFFICIENT AND 
                   EFFECTIVE ENVIRONMENTAL REVIEWS.

       In addition to amounts otherwise available, there is 
     appropriated to the Chair of the Council on Environmental 
     Quality for fiscal year 2022, out of any money in the 
     Treasury not otherwise appropriated, $30,000,000, to remain 
     available until September 30, 2026, to carry out the Council 
     on Environmental Quality's functions and for the purposes of 
     training personnel, developing programmatic environmental 
     documents, and developing tools, guidance, and techniques to 
     improve stakeholder and community engagement.

             Subtitle E--Transportation and Infrastructure

     SEC. 60501. NEIGHBORHOOD ACCESS AND EQUITY GRANT PROGRAM.

       (a) In General.--Chapter 1 of title 23, United States Code, 
     is further amended by adding at the end the following:

     ``Sec. 178. Neighborhood access and equity grant program

       ``(a) In General.--In addition to amounts otherwise 
     available, there is appropriated for fiscal year 2022, out of 
     any money in the Treasury not otherwise appropriated, 
     $1,893,000,000, to remain available until September 30, 2026, 
     to the Administrator of the Federal Highway Administration 
     for competitive grants to eligible entities described in 
     subsection (b)--
       ``(1) to improve walkability, safety, and affordable 
     transportation access through construction of projects that 
     are context-sensitive--
       ``(A) to remove, remediate, or reuse a facility described 
     in subsection (c)(1);
       ``(B) to replace a facility described in subsection (c)(1) 
     with a facility that is at-grade or lower speed;
       ``(C) to retrofit or cap a facility described in subsection 
     (c)(1);
       ``(D) to build or improve complete streets, multiuse 
     trails, regional greenways, or active transportation networks 
     and spines; or
       ``(E) to provide affordable access to essential 
     destinations, public spaces, or transportation links and 
     hubs;

[[Page S3991]]

       ``(2) to mitigate or remediate negative impacts on the 
     human or natural environment resulting from a facility 
     described in subsection (c)(2) in a disadvantaged or 
     underserved community, including construction of--
       ``(A) noise barriers to reduce impacts resulting from a 
     facility described in subsection (c)(2);
       ``(B) technologies, infrastructure, and activities to 
     reduce surface transportation-related air pollution, 
     including greenhouse gas emissions;
       ``(C) infrastructure or protective features to reduce or 
     manage stormwater run-off resulting from a facility described 
     in subsection (c)(2), including through natural 
     infrastructure and pervious, permeable, or porous pavement;
       ``(D) infrastructure and natural features to reduce or 
     mitigate urban heat island hot spots in the transportation 
     right-of-way or on surface transportation facilities; or
       ``(E) safety improvements for vulnerable road users; and
       ``(3) for planning and capacity building activities in 
     disadvantaged or underserved communities to--
       ``(A) identify, monitor, or assess local and ambient air 
     quality, emissions of transportation greenhouse gases, hot 
     spot areas of extreme heat or elevated air pollution, gaps in 
     tree canopy coverage, or flood prone transportation 
     infrastructure;
       ``(B) assess transportation equity or pollution impacts and 
     develop local anti-displacement policies and community 
     benefit agreements;
       ``(C) conduct predevelopment activities for projects 
     eligible under this subsection;
       ``(D) expand public participation in transportation 
     planning by individuals and organizations in disadvantaged or 
     underserved communities; or
       ``(E) administer or obtain technical assistance related to 
     activities described in this subsection.
       ``(b) Eligible Entities Described.--An eligible entity 
     referred to in subsection (a) is--
       ``(1) a State;
       ``(2) a unit of local government;
       ``(3) a political subdivision of a State;
       ``(4) an entity described in section 207(m)(1)(E);
       ``(5) a territory of the United States;
       ``(6) a special purpose district or public authority with a 
     transportation function;
       ``(7) a metropolitan planning organization (as defined in 
     section 134(b)(2)); or
       ``(8) with respect to a grant described in subsection 
     (a)(3), in addition to an eligible entity described in 
     paragraphs (1) through (7), a nonprofit organization or 
     institution of higher education that has entered into a 
     partnership with an eligible entity described in paragraphs 
     (1) through (7).
       ``(c) Facility Described.--A facility referred to in 
     subsection (a) is--
       ``(1) a surface transportation facility for which high 
     speeds, grade separation, or other design factors create an 
     obstacle to connectivity within a community; or
       ``(2) a surface transportation facility which is a source 
     of air pollution, noise, stormwater, or other burden to a 
     disadvantaged or underserved community.
       ``(d) Investment in Economically Disadvantaged 
     Communities.--
       ``(1) In general.--In addition to amounts otherwise 
     available, there is appropriated for fiscal year 2022, out of 
     any money in the Treasury not otherwise appropriated, 
     $1,109,950,000, to remain available until September 30, 2026, 
     to the Administrator of the Federal Highway Administration to 
     provide grants for projects in communities described in 
     paragraph (2) for the same purposes and administered in the 
     same manner as described in subsection (a).
       ``(2) Communities described.--A community referred to in 
     paragraph (1) is a community that--
       ``(A) is economically disadvantaged, including an 
     underserved community or a community located in an area of 
     persistent poverty;
       ``(B) has entered or will enter into a community benefits 
     agreement with representatives of the community;
       ``(C) has an anti-displacement policy, a community land 
     trust, or a community advisory board in effect; or
       ``(D) has demonstrated a plan for employing local residents 
     in the area impacted by the activity or project proposed 
     under this section.
       ``(e) Administration.--
       ``(1) In general.--A project carried out under subsection 
     (a) or (d) shall be treated as a project on a Federal-aid 
     highway.
       ``(2) Compliance with existing requirements.--Funds made 
     available for a grant under this section and administered by 
     or through a State department of transportation shall be 
     expended in compliance with the U.S. Department of 
     Transportation's Disadvantaged Business Enterprise Program.
       ``(f) Cost Share.--The Federal share of the cost of an 
     activity carried out using a grant awarded under this section 
     shall be not more than 80 percent, except that the Federal 
     share of the cost of a project in a disadvantaged or 
     underserved community may be up to 100 percent.
       ``(g) Technical Assistance.--In addition to amounts 
     otherwise available, there is appropriated for fiscal year 
     2022, out of any money in the Treasury not otherwise 
     appropriated, $42,150,000, to remain available until 
     September 30, 2026, to the Administrator of the Federal 
     Highway Administration for--
       ``(1) guidance, technical assistance, templates, training, 
     or tools to facilitate efficient and effective contracting, 
     design, and project delivery by units of local government;
       ``(2) subgrants to units of local government to build 
     capacity of such units of local government to assume 
     responsibilities to deliver surface transportation projects; 
     and
       ``(3) operations and administration of the Federal Highway 
     Administration.
       ``(h) Limitations.--Amounts made available under this 
     section shall not--
       ``(1) be subject to any restriction or limitation on the 
     total amount of funds available for implementation or 
     execution of programs authorized for Federal-aid highways; 
     and
       ``(2) be used for a project for additional through travel 
     lanes for single-occupant passenger vehicles.
       ``(i) Definition of Greenhouse Gas.--In this section, the 
     term `greenhouse gas' has the meaning given the term in 
     section 211(o)(1)(G) of the Clean Air Act (42 U.S.C. 
     7545(o)(1)(G)) (as in effect on the date of enactment of this 
     section).''.
       (b) Clerical Amendment.--The analysis for chapter 1 of 
     title 23, United States Code, is further amended by adding at 
     the end the following:

``178. Neighborhood access and equity grant program.''.

     SEC. 60502. ASSISTANCE FOR FEDERAL BUILDINGS.

       In addition to amounts otherwise available, there is 
     appropriated for fiscal year 2022, out of any money in the 
     Treasury not otherwise appropriated, $250,000,000, to remain 
     available until September 30, 2031, to be deposited in the 
     Federal Buildings Fund established under section 592 of title 
     40, United States Code, for measures necessary to convert 
     facilities of the Administrator of General Services to high-
     performance green buildings (as defined in section 401 of the 
     Energy Independence and Security Act of 2007 (42 U.S.C. 
     17061)).

     SEC. 60503. USE OF LOW-CARBON MATERIALS.

       (a) Appropriation.--In addition to amounts otherwise 
     available, there is appropriated for fiscal year 2022, out of 
     any money in the Treasury not otherwise appropriated, 
     $2,150,000,000, to remain available until September 30, 2026, 
     to be deposited in the Federal Buildings Fund established 
     under section 592 of title 40, United States Code, to acquire 
     and install low-embodied carbon materials and products for 
     use in the construction or alteration of buildings under the 
     jurisdiction, custody, and control of the General Services 
     Administration.
       (b) Definitions.--In this section:
       (1) Embodied carbon.--The term ``embodied carbon'' means 
     the quantity of greenhouse gas (as defined in section 
     211(o)(1)(G) of the Clean Air Act (42 U.S.C. 7545(o)(1)(G)) 
     (as in effect on the date of enactment of this Act)) 
     emissions associated with all relevant stages of production 
     of a material or product, measured in kilograms of carbon 
     dioxide-equivalent per unit of such material or product.
       (2) Low-embodied carbon materials and products.--The term 
     ``low-embodied carbon materials and products'' means 
     materials and products identified by the Administrator of the 
     Environmental Protection Agency as having substantially lower 
     levels of embodied carbon as compared to estimated industry 
     averages of similar products or materials.

     SEC. 60504. GENERAL SERVICES ADMINISTRATION EMERGING 
                   TECHNOLOGIES.

       In addition to amounts otherwise available, there is 
     appropriated to the Administrator of General Services for 
     fiscal year 2022, out of any money in the Treasury not 
     otherwise appropriated, $975,000,000, to remain available 
     until September 30, 2026, to be deposited in the Federal 
     Buildings Fund established under section 592 of title 40, 
     United States Code, for emerging and sustainable 
     technologies, and related sustainability and environmental 
     programs.

     SEC. 60505. ENVIRONMENTAL REVIEW IMPLEMENTATION FUNDS.

       (a) In General.--Chapter 1 of title 23, United States Code, 
     is further amended by adding at the end the following:

     ``Sec. 179. Environmental review implementation funds

       ``(a) Establishment.--In addition to amounts otherwise 
     available, for fiscal year 2022, there is appropriated to the 
     Administrator, out of any money in the Treasury not otherwise 
     appropriated, $100,000,000, to remain available until 
     September 30, 2026, for the purpose of facilitating the 
     development and review of documents for the environmental 
     review process for proposed projects, including through--
       ``(1) the provision of guidance, technical assistance, 
     templates, training, or tools to facilitate an efficient and 
     effective environmental review process for surface 
     transportation projects, including any administrative 
     expenses of the Federal Highway Administration to conduct 
     such activities; and
       ``(2) providing funds made available under this subsection 
     to eligible entities--
       ``(A) to build capacity of such eligible entities and 
     facilitate the environmental review process for proposed 
     projects, including--
       ``(i) defining the scope or study areas;
       ``(ii) identifying impacts, mitigation measures, and 
     reasonable alternatives;
       ``(iii) preparing planning and environmental studies and 
     other documents prior to and during the environmental review 
     process, for potential use in the environmental

[[Page S3992]]

     review process in accordance with applicable statutes and 
     regulations;
       ``(iv) conducting public engagement activities; and
       ``(v) carrying out other activities, including permitting 
     activities, as the Administrator determines to be 
     appropriate, to support the timely completion of an 
     environmental review process required for a proposed project; 
     and
       ``(B) for administrative expenses of the eligible entity to 
     conduct any of the activities described in subparagraph (A).
       ``(b) Cost Share.--
       ``(1) In general.--The Federal share of the cost of an 
     activity carried out under this section by an eligible entity 
     shall be not more than 80 percent.
       ``(2) Source of funds.--The non-Federal share of the cost 
     of an activity carried out under this section by an eligible 
     entity may be satisfied using funds made available to the 
     eligible entity under any other Federal, State, or local 
     grant program, including funds made available to the eligible 
     entity under this title or administered by the U.S. 
     Department of Transportation.
       ``(c) Definitions.--In this section:
       ``(1) Administrator.--The term `Administrator' means the 
     Administrator of the Federal Highway Administration.
       ``(2) Eligible entity.--The term `eligible entity' means--
       ``(A) a State;
       ``(B) a unit of local government;
       ``(C) a political subdivision of a State;
       ``(D) a territory of the United States;
       ``(E) an entity described in section 207(m)(1)(E);
       ``(F) a recipient of funds under section 203; or
       ``(G) a metropolitan planning organization (as defined in 
     section 134(b)(2)).
       ``(3) Environmental review process.--The term 
     `environmental review process' has the meaning given the term 
     in section 139(a)(5).
       ``(4) Proposed project.--The term `proposed project' means 
     a surface transportation project for which an environmental 
     review process is required.''.
       (b) Clerical Amendment.--The analysis for chapter 1 of 
     title 23, United States Code, is further amended by adding at 
     the end the following:

``179. Environmental review implementation funds.''.

     SEC. 60506. LOW-CARBON TRANSPORTATION MATERIALS GRANTS.

       (a) In General.--Chapter 1 of title 23, United States Code, 
     is further amended by adding at the end the following:

     ``Sec. 180. Low-carbon transportation materials grants

       ``(a) Federal Highway Administration Appropriation.--In 
     addition to amounts otherwise available, there is 
     appropriated for fiscal year 2022, out of any money in the 
     Treasury not otherwise appropriated, $2,000,000,000, to 
     remain available until September 30, 2026, to the 
     Administrator to reimburse or provide incentives to eligible 
     recipients for the use of low-embodied carbon construction 
     materials and products in projects, and for the operations 
     and administration of the Federal Highway Administration to 
     carry out this section.
       ``(b) Reimbursement of Incremental Costs; Incentives.--
       ``(1) In general.--The Administrator shall, subject to the 
     availability of funds, either reimburse or provide incentives 
     to eligible recipients that use low-embodied carbon 
     construction materials and products on a project funded under 
     this title.
       ``(2) Reimbursement and incentive amounts.--
       ``(A) Incremental amount.--The amount of reimbursement 
     under paragraph (1) shall be equal to the incrementally 
     higher cost of using such materials relative to the cost of 
     using traditional materials, as determined by the eligible 
     recipient and verified by the Administrator.
       ``(B) Incentive amount.--The amount of an incentive under 
     paragraph (1) shall be equal to 2 percent of the cost of 
     using low-embodied carbon construction materials and products 
     on a project funded under this title.
       ``(3) Federal share.--If a reimbursement or incentive is 
     provided under paragraph (1), the total Federal share payable 
     for the project for which the reimbursement or incentive is 
     provided shall be up to 100 percent.
       ``(4) Limitations.--
       ``(A) In general.--The Administrator shall only provide a 
     reimbursement or incentive under paragraph (1) for a project 
     on a--
       ``(i) Federal-aid highway;
       ``(ii) tribal transportation facility;
       ``(iii) Federal lands transportation facility; or
       ``(iv) Federal lands access transportation facility.
       ``(B) Other restrictions.--Amounts made available under 
     this section shall not be subject to any restriction or 
     limitation on the total amount of funds available for 
     implementation or execution of programs authorized for 
     Federal-aid highways.
       ``(C) Single occupant passenger vehicles.--Funds made 
     available under this section shall not be used for projects 
     that result in additional through travel lanes for single 
     occupant passenger vehicles.
       ``(5) Materials identification.--The Administrator shall 
     review the low-embodied carbon construction materials and 
     products identified by the Administrator of the Environmental 
     Protection Agency and shall identify low-embodied carbon 
     construction materials and products--
       ``(A) appropriate for use in projects eligible under this 
     title; and
       ``(B) eligible for reimbursement or incentives under this 
     section.
       ``(c) Definitions.--In this section:
       ``(1) Administrator.--The term `Administrator' means the 
     Administrator of the Federal Highway Administration.
       ``(2) Eligible recipient.--The term `eligible recipient' 
     means--
       ``(A) a State;
       ``(B) a unit of local government;
       ``(C) a political subdivision of a State;
       ``(D) a territory of the United States;
       ``(E) an entity described in section 207(m)(1)(E));
       ``(F) a recipient of funds under section 203;
       ``(G) a metropolitan planning organization (as defined in 
     section 134(b)(2)); or
       ``(H) a special purpose district or public authority with a 
     transportation function.
       ``(3) Embodied carbon.--The term `embodied carbon' means 
     the quantity of greenhouse gas (as defined in section 
     211(o)(1)(G) of the Clean Air Act (42 U.S.C. 7545(o)(1)(G)) 
     (as in effect on the date of enactment of this Act)) 
     emissions associated with all relevant stages of production 
     of a material or product, measured in kilograms of carbon 
     dioxide-equivalent per unit of such material or product.
       ``(4) Low-embodied carbon construction materials and 
     products.--The term `low-embodied carbon construction 
     materials and products' means construction materials and 
     products identified by the Administrator of the Environmental 
     Protection Agency as having substantially lower levels of 
     embodied carbon as compared to estimated industry averages of 
     similar products or materials.''.
       (b) Clerical Amendment.--The analysis for chapter 1 of 
     title 23, United States Code, is further amended by adding at 
     the end the following:

``180. Low-carbon transportation materials grants.''.

   TITLE VII--COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS

     SEC. 70001. DHS OFFICE OF CHIEF READINESS SUPPORT OFFICER.

       In addition to the amounts otherwise available, there is 
     appropriated to the Secretary of Homeland Security for fiscal 
     year 2022, out of any money in the Treasury not otherwise 
     appropriated, $500,000,000, to remain available until 
     September 30, 2028, for the Office of the Chief Readiness 
     Support Officer to carry out sustainability and environmental 
     programs.

     SEC. 70002. UNITED STATES POSTAL SERVICE CLEAN FLEETS.

       In addition to amounts otherwise available, there is 
     appropriated to the United States Postal Service for fiscal 
     year 2022, out of any money in the Treasury not otherwise 
     appropriated, to be deposited into the Postal Service Fund 
     established under section 2003 of title 39, United States 
     Code, $3,000,000,000, to remain available through September 
     30, 2031, for--
       (1) the purchase of zero-emission delivery vehicles; and
       (2) the purchase, design, and installation of the requisite 
     infrastructure to support zero-emission delivery vehicles at 
     facilities that the United States Postal Service owns or 
     leases from non-Federal entities.

     SEC. 70003. UNITED STATES POSTAL SERVICE OFFICE OF INSPECTOR 
                   GENERAL.

       In addition to amounts otherwise available, there is 
     appropriated to the Office of Inspector General of the United 
     States Postal Service for fiscal year 2022, out of any money 
     in the Treasury not otherwise appropriated, $15,000,000, to 
     remain available through September 30, 2031, to support 
     oversight of United States Postal Service activities 
     implemented pursuant to this Act.

     SEC. 70004. GOVERNMENT ACCOUNTABILITY OFFICE OVERSIGHT.

       In addition to amounts otherwise available, there is 
     appropriated to the Comptroller General of the United States 
     for fiscal year 2022, out of any money in the Treasury not 
     otherwise appropriated, $25,000,000, to remain available 
     until September 30, 2031, for necessary expenses of the 
     Government Accountability Office to support the oversight 
     of--
       (1) the distribution and use of funds appropriated under 
     this Act; and
       (2) whether the economic, social, and environmental impacts 
     of the funds described in paragraph (1) are equitable.

     SEC. 70005. OFFICE OF MANAGEMENT AND BUDGET OVERSIGHT.

       In addition to amounts otherwise available, there are 
     appropriated to the Director of the Office of Management and 
     Budget for fiscal year 2022, out of any money in the Treasury 
     not otherwise appropriated, $25,000,000, to remain available 
     until September 30, 2026, for necessary expenses to--
       (1) oversee the implementation of this Act; and
       (2) track labor, equity, and environmental standards and 
     performance.

     SEC. 70006. FEMA BUILDING MATERIALS PROGRAM.

       Through September 30, 2026, the Administrator of the 
     Federal Emergency Management Agency may provide financial 
     assistance under sections 203(h), 404(a), and 406(b) of the 
     Robert T. Stafford Disaster Relief and Emergency Assistance 
     Act (42 U.S.C. 5133(h), 42 U.S.C. 5170c(a), 42 U.S.C. 
     5172(b)) for--
       (1) costs associated with low-carbon materials; and
       (2) incentives that encourage low-carbon and net-zero 
     energy projects, which may include an increase in the Federal 
     cost share for those projects.

[[Page S3993]]

  


     SEC. 70007. FEDERAL PERMITTING IMPROVEMENT STEERING COUNCIL 
                   ENVIRONMENTAL REVIEW IMPROVEMENT FUND MANDATORY 
                   FUNDING.

       (a) In General.--In addition to amounts otherwise 
     available, there is appropriated to the Environmental Review 
     Improvement Fund established by section 41009(d)(1) of the 
     FAST Act (42 U.S.C. 4370m-8(d)(1)), out of any money in the 
     Treasury not otherwise appropriated, $70,000,000 for each of 
     fiscal years 2022 through 2026.
       (b) Availability.--Notwithstanding section 41009(d)(2) of 
     the FAST Act (42 U.S.C. 4370m-8(d)(2)), funds appropriated 
     under subsection (a) for a fiscal year shall remain available 
     for the following 5 fiscal years.

                TITLE VIII--COMMITTEE ON INDIAN AFFAIRS

     SEC. 80001. TRIBAL CLIMATE RESILIENCE.

       (a) Tribal Climate Resilience and Adaptation.--In addition 
     to amounts otherwise available, there is appropriated to the 
     Director of the Bureau of Indian Affairs for fiscal year 
     2022, out of any money in the Treasury not otherwise 
     appropriated, $220,000,000, to remain available until 
     September 30, 2031, for Tribal climate resilience and 
     adaptation programs.
       (b) Bureau of Indian Affairs Fish Hatcheries.--In addition 
     to amounts otherwise available, there is appropriated to the 
     Director of the Bureau of Indian Affairs for fiscal year 
     2022, out of any money in the Treasury not otherwise 
     appropriated, $10,000,000, to remain available until 
     September 30, 2031, for fish hatchery operations and 
     maintenance programs of the Bureau of Indian Affairs.
       (c) Administration.--In addition to amounts otherwise 
     available, there is appropriated to the Director of the 
     Bureau of Indian Affairs for fiscal year 2022, out of any 
     money in the Treasury not otherwise appropriated, $5,000,000, 
     to remain available until September 30, 2031, for the 
     administrative costs of carrying out this section.
       (d) Cost-sharing and Matching Requirements.--None of the 
     funds provided by this section shall be subject to cost-
     sharing or matching requirements.
       (e) Small and Needy Program.--Amounts made available under 
     this section shall be excluded from the calculation of funds 
     received by those Tribal governments that participate in the 
     ``Small and Needy'' program.
       (f) Distribution; Use of Funds.--Amounts made available 
     under this section that are distributed to Indian Tribes and 
     Tribal organizations for services pursuant to a self-
     determination contract (as defined in subsection (j) of 
     section 4 of the Indian Self-Determination and Education 
     Assistance Act (25 U.S.C. 5304(j))) or a self-governance 
     compact entered into pursuant to subsection (a) of section 
     404 of the Indian Self-Determination and Education Assistance 
     Act (25 U.S.C. 5364(a))--
       (1) shall be distributed on a 1-time basis;
       (2) shall not be part of the amount required by subsections 
     (a) through (b) of section 106 of the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 
     5325(a)-(b)); and
       (3) shall only be used for the purposes identified under 
     the applicable subsection.

     SEC. 80002. NATIVE HAWAIIAN CLIMATE RESILIENCE.

       (a) Native Hawaiian Climate Resilience and Adaptation.--In 
     addition to amounts otherwise available, there is 
     appropriated to the Senior Program Director of the Office of 
     Native Hawaiian Relations for fiscal year 2022, out of any 
     money in the Treasury not otherwise appropriated, 
     $23,500,000, to remain available until September 30, 2031, to 
     carry out, through financial assistance, technical 
     assistance, direct expenditure, grants, contracts, or 
     cooperative agreements, climate resilience and adaptation 
     activities that serve the Native Hawaiian Community.
       (b) Administration.--In addition to amounts otherwise 
     available, there is appropriated to the Senior Program 
     Director of the Office of Native Hawaiian Relations for 
     fiscal year 2022, out of any money in the Treasury not 
     otherwise appropriated, $1,500,000, to remain available until 
     September 30, 2031, for the administrative costs of carrying 
     out this section.
       (c) Cost-sharing and Matching Requirements.--None of the 
     funds provided by this section shall be subject to cost-
     sharing or matching requirements.

     SEC. 80003. TRIBAL ELECTRIFICATION PROGRAM.

       (a) Tribal Electrification Program.--In addition to amounts 
     otherwise available, there is appropriated to the Director of 
     the Bureau of Indian Affairs for fiscal year 2022, out of any 
     money in the Treasury not otherwise appropriated, 
     $145,500,000, to remain available until September 30, 2031, 
     for--
       (1) the provision of electricity to unelectrified Tribal 
     homes through zero-emissions energy systems;
       (2) transitioning electrified Tribal homes to zero-
     emissions energy systems; and
       (3) associated home repairs and retrofitting necessary to 
     install the zero-emissions energy systems authorized under 
     paragraphs (1) and (2).
       (b) Administration.--In addition to amounts otherwise 
     available, there is appropriated to the Director of the 
     Bureau of Indian Affairs for fiscal year 2022, out of any 
     money in the Treasury not otherwise appropriated, $4,500,000, 
     to remain available until September 30, 2031, for the 
     administrative costs of carrying out this section.
       (c) Cost-sharing and Matching Requirements.--None of the 
     funds provided by this section shall be subject to cost-
     sharing or matching requirements.
       (d) Small and Needy Program.--Amounts made available under 
     this section shall be excluded from the calculation of funds 
     received by those Tribal governments that participate in the 
     ``Small and Needy'' program.
       (e) Distribution; Use of Funds.--Amounts made available 
     under this section that are distributed to Indian Tribes and 
     Tribal organizations for services pursuant to a self-
     determination contract (as defined in subsection (j) of 
     section 4 of the Indian Self-Determination and Education 
     Assistance Act (25 U.S.C. 5304(j))) or a self-governance 
     compact entered into pursuant to subsection (a) of section 
     404 of the Indian Self-Determination and Education Assistance 
     Act (25 U.S.C. 5364(a))--
       (1) shall be distributed on a 1-time basis;
       (2) shall not be part of the amount required by subsections 
     (a) through (b) of section 106 of the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 
     5325(a)-(b)); and
       (3) shall only be used for the purposes identified under 
     the applicable subsection.

     SEC. 80004. EMERGENCY DROUGHT RELIEF FOR TRIBES.

       (a) Emergency Drought Relief for Tribes.--In addition to 
     amounts otherwise available, there is appropriated to the 
     Commissioner of the Bureau of Reclamation for fiscal year 
     2022, out of any money in the Treasury not otherwise 
     appropriated, $12,500,000, to remain available until 
     September 30, 2026, for near-term drought relief actions to 
     mitigate drought impacts for Indian Tribes that are impacted 
     by the operation of a Bureau of Reclamation water project, 
     including through direct financial assistance to address 
     drinking water shortages and to mitigate the loss of Tribal 
     trust resources.
       (b) Cost-sharing and Matching Requirements.--None of the 
     funds provided by this section shall be subject to cost-
     sharing or matching requirements.
                                 ______