[Congressional Record Volume 168, Number 133 (Saturday, August 6, 2022)]
[Senate]
[Pages S4070-S4153]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                    INFLATION REDUCTION ACT OF 2022

  The VICE PRESIDENT. The clerk will report the bill by title.
  The legislative clerk read as follows:

       A bill (H.R. 5376) to provide for reconciliation pursuant 
     to title II of S. Con. Res. 14.

  The ACTING PRESIDENT pro tempore. The majority leader.


                    Amendment No. 5194, as Modified

  (Purpose: In the nature of a substitute.)
  Mr. SCHUMER. Madam President, I call up amendment No. 5194, as 
modified, with the changes at the desk, and I ask that it be reported 
by number.
  The ACTING PRESIDENT pro tempore. Without objection, it is so 
ordered.
  The clerk will report.
  The senior assistant legislative clerk read as follows:

       The Senator from New York [Mr. Schumer] proposes an 
     amendment numbered 5194, as modified.

  The amendment is 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--

[[Page S4071]]

       ``(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 adjusted financial statement income of such 
     corporation (determined without regard to section 56A(d)) 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) and without regard to section 
     56A(d)) 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.--
       ``(i) In general.--Solely for purposes of determining 
     whether a corporation is an applicable corporation under this 
     paragraph, all adjusted financial statement income of persons 
     treated as a single employer with such corporation under 
     subsection (a) or (b) of section 52 (determined with the 
     modifications described in clause (ii)) shall be treated as 
     adjusted financial statement 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).
       ``(ii) Modifications.--For purposes of this subparagraph--

       ``(I) section 52(a) shall be applied by substituting 
     `component members' for `members', and
       ``(II) for purposes of applying section 52(b), the term 
     `trade or business' shall include any activity treated as a 
     trade or business under paragraph (5) or (6) of section 
     469(c) (determined without regard to the phrase `To the 
     extent provided in regulations' in such paragraph (6)).

       ``(iii) Component member.--For purposes of this 
     subparagraph, the term `component member' has the meaning 
     given such term by section 1563(b), except that the 
     determination shall be made without regard to section 
     1563(b)(2).
       ``(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 multinational 
     groups.--
       ``(A) In general.--If a corporation is a member of a 
     foreign-parented multinational group for any taxable year, 
     then, solely for purposes of determining whether such 
     corporation meets the average annual adjusted financial 
     statement income test under paragraph (1)(B)(ii)(I) for such 
     taxable year, the adjusted financial statement income of such 
     corporation for such taxable year shall include the adjusted 
     financial statement income of all 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) Foreign-parented multinational group.--For purposes 
     of subparagraph (A), the term `foreign-parented multinational 
     group' means, with respect to any taxable year, two or more 
     entities if--
       ``(i) at least one entity is a domestic corporation and 
     another entity is a foreign corporation,
       ``(ii) such entities are included in the same applicable 
     financial statement with respect to such year, and
       ``(iii) either--

       ``(I) the common parent of such entities is a foreign 
     corporation, or
       ``(II) if there is no common parent, the entities are 
     treated as having a common parent which is a foreign 
     corporation under subparagraph (D).

       ``(C) Foreign corporations engaged in a trade or business 
     within the united states.--For purposes of this paragraph, if 
     a foreign corporation is engaged in a trade or business 
     within the United States, such trade or business shall be 
     treated as a separate domestic corporation that is wholly 
     owned by the foreign corporation.
       ``(D) Other rules.--The Secretary shall, applying the 
     principles of this section, prescribe rules for the 
     application of this paragraph, including rules for the 
     determination of--
       ``(i) the entities (if any) which are to be to be treated 
     under subparagraph (B)(iii)(II) as having a common parent 
     which is a foreign corporation,
       ``(ii) the entities to be included in a foreign-parented 
     multinational group, and
       ``(iii) the common parent of a foreign-parented 
     multinational group.
       ``(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:

[[Page S4072]]

       ``(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 with respect to 
     such partnership 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).
       ``(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 with respect to such controlled foreign corporation 
     (as determined under paragraph (2)(C)) shall be adjusted to 
     also 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 48D(d) or 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) Depreciation.--Adjusted financial statement income 
     shall be--
       ``(A) reduced by depreciation deductions allowed under 
     section 167 with respect to property to which section 168 
     applies to the extent of the amount allowed as deductions in 
     computing taxable income for the taxable year, and
       ``(B) appropriately adjusted--
       ``(i) to disregard any amount of depreciation expense that 
     is taken into account on the taxpayer's applicable financial 
     statement with respect to such property, and
       ``(ii) to take into account any other item specified by the 
     Secretary in order to provide that such property is accounted 
     for in the same manner as it is accounted for under this 
     chapter.

[[Page S4073]]

       ``(14) Qualified wireless spectrum.--
       ``(A) In general.--Adjusted financial statement income 
     shall be--
       ``(i) reduced by amortization deductions allowed under 
     section 197 with respect to qualified wireless spectrum to 
     the extent of the amount allowed as deductions in computing 
     taxable income for the taxable year, and
       ``(ii) appropriately adjusted--

       ``(I) to disregard any amount of amortization expense that 
     is taken into account on the taxpayer's applicable financial 
     statement with respect to such qualified wireless spectrum, 
     and
       ``(II) to take into account any other item specified by the 
     Secretary in order to provide that such qualified wireless 
     spectrum is accounted for in the same manner as it is 
     accounted for under this chapter.

       ``(B) Qualified wireless spectrum.--For purposes of this 
     paragraph, the term `qualified wireless spectrum' means 
     wireless spectrum which--
       ``(i) is used in the trade or business of a wireless 
     telecommunications carrier, and
       ``(ii) was acquired after December 31, 2007, and before the 
     date of enactment of this section.
       ``(15) 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--
       ``(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--EXCISE TAX ON REPURCHASE OF CORPORATE STOCK

     SEC. 10201. EXCISE TAX ON REPURCHASE OF CORPORATE STOCK.

       (a) In General.--Subtitle D is amended by inserting after 
     chapter 36 the following new chapter:

              ``CHAPTER 37--REPURCHASE OF CORPORATE STOCK

``Sec. 4501. Repurchase of corporate stock.

     ``SEC. 4501. REPURCHASE OF CORPORATE STOCK.

       ``(a) General Rule.--There is hereby imposed on each 
     covered corporation a tax equal to 1 percent of the fair 
     market value of any stock of the corporation which is 
     repurchased by such corporation during the taxable year.
       ``(b) Covered Corporation.--For purposes of this section, 
     the term `covered corporation' means any domestic corporation 
     the stock of which is traded on an established securities 
     market (within the meaning of section 7704(b)(1)).
       ``(c) Repurchase.--For purposes of this section--
       ``(1) In general.--The term `repurchase' means--
       ``(A) a redemption within the meaning of section 317(b) 
     with regard to the stock of a covered corporation, and
       ``(B) any transaction determined by the Secretary to be 
     economically similar to a transaction described in 
     subparagraph (A).
       ``(2) Treatment of purchases by specified affiliates.--
       ``(A) In general.--The acquisition of stock of a covered 
     corporation by a specified affiliate of such covered 
     corporation, from a person who is not the covered corporation 
     or a specified affiliate of such covered corporation, shall 
     be treated as a repurchase of the stock of the covered 
     corporation by such covered corporation.
       ``(B) Specified affiliate.--For purposes of this section, 
     the term `specified affiliate' means, with respect to any 
     corporation--
       ``(i) any corporation more than 50 percent of the stock of 
     which is owned (by vote or by value), directly or indirectly, 
     by such corporation, and
       ``(ii) any partnership more than 50 percent of the capital 
     interests or profits interests of which is held, directly or 
     indirectly, by such corporation.
       ``(3) Adjustment.--The amount taken into account under 
     subsection (a) with respect to any stock repurchased by a 
     covered corporation shall be reduced by the fair market value 
     of any stock issued by the covered corporation during the 
     taxable year, including the fair market value of any stock 
     issued or provided to employees of such covered corporation 
     or employees of a specified affiliate of such covered 
     corporation during the taxable year, whether or not such 
     stock is issued or provided in response to the exercise of an 
     option to purchase such stock.
       ``(d) Special Rules for Acquisition of Stock of Certain 
     Foreign Corporations.--

[[Page S4074]]

       ``(1) In general.--In the case of an acquisition of stock 
     of an applicable foreign corporation by a specified affiliate 
     of such corporation (other than a foreign corporation or a 
     foreign partnership (unless such partnership has a domestic 
     entity as a direct or indirect partner)) from a person who is 
     not the applicable foreign corporation or a specified 
     affiliate of such applicable foreign corporation, for 
     purposes of this section--
       ``(A) such specified affiliate shall be treated as a 
     covered corporation with respect to such acquisition,
       ``(B) such acquisition shall be treated as a repurchase of 
     stock of a covered corporation by such covered corporation, 
     and
       ``(C) the adjustment under subsection (c)(3) shall be 
     determined only with respect to stock issued or provided by 
     such specified affiliate to employees of the specified 
     affiliate.
       ``(2) Surrogate foreign corporations.--In the case of a 
     repurchase of stock of a covered surrogate foreign 
     corporation by such covered surrogate foreign corporation, or 
     an acquisition of stock of a covered surrogate foreign 
     corporation by a specified affiliate of such corporation, for 
     purposes of this section--
       ``(A) the expatriated entity with respect to such covered 
     surrogate foreign corporation shall be treated as a covered 
     corporation with respect to such repurchase or acquisition,
       ``(B) such repurchase or acquisition shall be treated as a 
     repurchase of stock of a covered corporation by such covered 
     corporation, and
       ``(C) the adjustment under subsection (c)(3) shall be 
     determined only with respect to stock issued or provided by 
     such expatriated entity to employees of the expatriated 
     entity.
       ``(3) Definitions.--For purposes of this subsection--
       ``(A) Applicable foreign corporation.--The term `applicable 
     foreign corporation' means any foreign corporation the stock 
     of which is traded on an established securities market 
     (within the meaning of section 7704(b)(1)).
       ``(B) Covered surrogate foreign corporation.--The term 
     `covered surrogate foreign corporation' means any surrogate 
     foreign corporation (as determined under section 
     7874(a)(2)(B) by substituting `September 20, 2021' for `March 
     4, 2003' each place it appears) the stock of which is traded 
     on an established securities market (within the meaning of 
     section 7704(b)(1)), but only with respect to taxable years 
     which include any portion of the applicable period with 
     respect to such corporation under section 7874(d)(1).
       ``(C) Expatriated entity.--The term `expatriated entity' 
     has the meaning given such term by section 7874(a)(2)(A).
       ``(e) Exceptions.--Subsection (a) shall not apply--
       ``(1) to the extent that the repurchase is part of a 
     reorganization (within the meaning of section 368(a)) and no 
     gain or loss is recognized on such repurchase by the 
     shareholder under chapter 1 by reason of such reorganization,
       ``(2) in any case in which the stock repurchased is, or an 
     amount of stock equal to the value of the stock repurchased 
     is, contributed to an employer-sponsored retirement plan, 
     employee stock ownership plan, or similar plan,
       ``(3) in any case in which the total value of the stock 
     repurchased during the taxable year does not exceed 
     $1,000,000,
       ``(4) under regulations prescribed by the Secretary, in 
     cases in which the repurchase is by a dealer in securities in 
     the ordinary course of business,
       ``(5) to repurchases by a regulated investment company (as 
     defined in section 851) or a real estate investment trust, or
       ``(6) to the extent that the repurchase is treated as a 
     dividend for purposes of this title.
       ``(f) Regulations and Guidance.--The Secretary shall 
     prescribe such regulations and other guidance as are 
     necessary or appropriate to carry out, and to prevent the 
     avoidance of, the purposes of this section, including 
     regulations and other guidance--
       ``(1) to prevent the abuse of the exceptions provided by 
     subsection (e),
       ``(2) to address special classes of stock and preferred 
     stock, and
       ``(3) for the application of the rules under subsection 
     (d).''.
       (b) Tax Not Deductible.--Paragraph (6) of section 275(a) is 
     amended by inserting ``37,'' before ``41''.
       (c) Clerical Amendment.--The table of chapters for subtitle 
     D is amended by inserting after the item relating to chapter 
     36 the following new item:

             ``Chapter 37--Repurchase of Corporate Stock''.

       (d) Effective Date.--The amendments made by this section 
     shall apply to repurchases (within the meaning of section 
     4501(c) of the Internal Revenue Code of 1986, as added by 
     this section) of stock after December 31, 2022.

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

     SEC. 10301. ENHANCEMENT OF INTERNAL REVENUE SERVICE 
                   RESOURCES.

       (a) 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:
       (1) Internal revenue service.--
       (A) 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.
       (B) 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 
     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.
       (2) 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.
       (3) 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.
       (4) 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.
       (5) 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.
       (b) No Tax Increases on Certain Taxpayers.--Nothing in this 
     section is intended

[[Page S4075]]

     to increase taxes on any taxpayer or small business with a 
     taxable income below $400,000. Further, nothing in this 
     section is intended to increase taxes on any taxpayer not in 
     the top 1 percent.

              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) Manufacturer.--The term `manufacturer' has the 
     meaning given that term in section 1847A(c)(6)(A).
       ``(2) 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 in 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 in an MA plan under part C of such title, if payment 
     may be made under part B for such selected drug.
       ``(3) 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.
       ``(4) Reference product.--The term `reference product' has 
     the meaning given such term in section 351(i) of the Public 
     Health Service Act.
       ``(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)). 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.
       ``(6) 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.
       ``(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, for which data 
     are available'; and
       ``(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'.
       ``(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)(1) shall be applied by substituting 
     `September 1, 2024' for `November 30 of the year that is 2 
     years 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).
     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), 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

[[Page S4076]]

     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 12-month period for which data are 
     available prior to such selected drug publication date (but 
     ending no later than October 31 of the year prior to the year 
     of such drug publication date).
       ``(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 12-month period, as described in 
     subparagraph (A).
       ``(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 for which payment may be made 
     under such part B during such year; and
       ``(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 for which 
     payment may be made 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.--A new 
     formulation, such as an extended release formulation, of a 
     qualifying single source drug shall not be considered a 
     qualifying single source drug described in subparagraph (A).
       ``(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 for which payment may be made 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 
     in accordance with subsection (d)(3)(B)--
       ``(i) with respect to initial price applicability year 
     2026, is less than, during the period beginning on June 1, 
     2022, and ending on May 31, 2023, $200,000,000;
       ``(ii) with respect to initial price applicability year 
     2027, is less than, during the most recent 12-month period 
     applicable under subparagraphs (A) and (B) of subsection 
     (d)(1) for such year, the dollar amount specified in clause 
     (i) increased by the annual percentage increase in the 
     consumer price index for all urban consumers (all items; 
     United States city average) for the period beginning on June 
     1, 2023, and ending on September 30, 2024; or
       ``(iii) with respect to a subsequent initial price 
     applicability year, is less than, during the most recent 12-
     month period applicable under subparagraphs (A) and (B) of 
     subsection (d)(1) for such year, the dollar

[[Page S4077]]

     amount specified in this subparagraph for the previous 
     initial price applicability year increased by the annual 
     percentage increase in such consumer price index for the 12-
     month period ending on September 30 of the year prior to the 
     year of the selected drug publication date with respect to 
     such subsequent initial price applicability year.
       ``(C) Plasma-derived products.--A biological product that 
     is derived from human whole blood or plasma.

     ``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)(2) 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 the period of renegotiation, 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)(2) 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)(2), 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
       ``(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--
       ``(1) 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; and
       ``(2) shall be required to provide access to 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 such 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 the selected drug with a 
     written initial offer that contains the Secretary's proposal 
     for the maximum fair price of the drug and a concise 
     justification based on 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 the 
     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.
       ``(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 
     initial price applicability 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).

[[Page S4078]]

       ``(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 for which payment may be made 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.
       ``(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, as applicable to the drug, as the basis 
     for determining the offers and counteroffers under subsection 
     (b) for the drug:
       ``(1) Manufacturer-specific data.--The following data, with 
     respect to such selected drug, 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) Current unit costs of production and distribution of 
     the drug.
       ``(C) Prior Federal financial support for novel therapeutic 
     discovery and development with respect to the drug.
       ``(D) Data on pending and approved patent applications, 
     exclusivities recognized by the Food and Drug Administration, 
     and applications and approvals under section 505(c) of the 
     Federal Food, Drug, and Cosmetic Act or section 351(a) of the 
     Public Health Service Act for the drug.
       ``(E) Market data and revenue and sales volume data for the 
     drug in the United States.
       ``(2) Evidence about alternative treatments.--The following 
     evidence, as available, 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 the costs of such existing therapeutic 
     alternatives.
       ``(B) Prescribing information approved by the Food and Drug 
     Administration for such drug and therapeutic alternatives to 
     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 to 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 using evidence described in subparagraph (C), the 
     Secretary shall not use evidence 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.

[[Page S4079]]

       ``(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.--For each year 
     (beginning with 2028), 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.--
       ``(A) In general.--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.
       ``(B) Consistent with negotiation process.--The process 
     specified under subparagraph (A) shall, to the extent 
     practicable, be consistent with the methodology and process 
     established under subsection (b) and in accordance with 
     subsections (c), (d), and (e), and for purposes of applying 
     subsections (c)(1)(A) 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.
       ``(g) 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 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 the July immediately preceding such November 30; 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 in 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 in 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 5000D of the Internal Revenue Code of 1986, 
     including the application of such tax to a manufacturer, 
     producer, or importer or the determination of any date 
     described in section 5000D(c)(1) of such Code. For purposes 
     of the preceding sentence, such information shall include--
       ``(A) the date on which the Secretary receives notification 
     of any termination of an agreement under the Medicare 
     coverage gap discount program under section 1860D-14A and the 
     date on which any subsequent agreement under such program is 
     entered into;
       ``(B) the date on which the Secretary receives notification 
     of any termination of an agreement under the manufacturer 
     discount program under section 1860D-14C and the date on 
     which any subsequent agreement under such program is entered 
     into; and
       ``(C) the date on which the Secretary receives notification 
     of any termination of a rebate agreement described in section 
     1927(b) and the date on which any subsequent rebate agreement 
     described in such section is entered into.
       ``(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 equal 
     to or less than the maximum fair 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)(2) 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).

     ``SEC. 1198. LIMITATION ON ADMINISTRATIVE AND JUDICIAL 
                   REVIEW.

       ``There shall be no administrative or judicial review of 
     any of the following:
       ``(1) The determination of a unit, with respect to a drug 
     or biological product, pursuant to section 1191(c)(6).

[[Page S4080]]

       ``(2) The selection of drugs under section 1192(b), the 
     determination of negotiation-eligible drugs under section 
     1192(d), and the determination of qualifying single source 
     drugs under section 1192(e).
       ``(3) The determination of a maximum fair price under 
     subsection (b) or (f) of section 1194.
       ``(4) The determination of renegotiation-eligible drugs 
     under section 1194(f)(2) and the selection of renegotiation-
     eligible drugs under section 1194(f)(3).''.
       (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)(3)) 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 ``or institute a price 
     structure for the reimbursement of covered part D drugs.'' 
     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)(3)) 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 a maximum fair price (as defined in 
     section 1191(c)(3)) is in effect 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 for purposes 
     of carrying out section 1194.''.
       (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).''.
       (G) Conditions for coverage.--
       (i) Medicare part d.--Section 1860D-43(c) of the Social 
     Security Act (42 U.S.C. 1395w-153(c)) is amended--

       (I) by redesignating paragraphs (1) and (2) as 
     subparagraphs (A) and (B), respectively;
       (II) by striking ``Agreements.--Subsection'' and inserting 
     the following: ``Agreements.--

       ``(1) In general.--Subject to paragraph (2), subsection''; 
     and

       (III) by adding at the end the following new paragraph:

       ``(2) Exception.--Paragraph (1)(A) shall not apply to a 
     covered part D drug of a manufacturer for any period 
     described in section 5000D(c)(1) of the Internal Revenue Code 
     of 1986 with respect to the manufacturer.''.
       (ii) Medicaid and medicare part b.--Section 1927(a)(3) of 
     the Social Security Act (42 U.S.C. 1396r-8(a)(3)) is amended 
     by adding at the end the following new sentence: ``The 
     preceding sentence shall not apply to a single source drug or 
     innovator multiple source drug of a manufacturer for any 
     period described in section 5000D(c)(1) of the Internal 
     Revenue Code of 1986 with respect to the manufacturer.''.
       (H) Disclosure of information under medicare part d.--
       (i) Contract requirements.--Section 1860D-12(b)(3)(D)(i) of 
     the Social Security Act (42 U.S.C. 1395w-112(b)(3)(D)(i)) is 
     amended by inserting ``, or carrying out part E of title XI'' 
     after ``appropriate)''.
       (ii) Subsidies.--Section 1860D-15(f)(2)(A)(i) of the Social 
     Security Act (42 U.S.C. 1395w-115(f)(2)(A)(i)) is amended by 
     inserting ``or part E of title XI'' after ``this section''.
       (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)(3)) for such drug with respect to such period.''.

       (3) Maximum fair prices excluded 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)) 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 (4), 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).''; and
       (C) by adding at the end 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

[[Page S4081]]

     to the initial price applicability year for which the 
     biological product may 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 including, to the extent 
     available, items described in subclause (III); 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.
       ``(III) Items described.--The items described in this 
     clause are the following:

       ``(aa) 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).
       ``(bb) 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.
       ``(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 
     section 351(k) of the Public Health Service Act, 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 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 information from items described in subclauses 
     (I)(bb) and (II) of paragraph (1)(B)(ii)) 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.--
       ``(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) of the Public Health Service Act 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 Secretary determined 
     that 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); or
       ``(II) has, based on information from items described in 
     paragraph (1)(B)(ii)(I)(bb), entered into any agreement 
     described in such paragraph with the manufacturer of the 
     reference product described in paragraph (1)(A) that--

       ``(aa) requires or incentivizes the manufacturer of the 
     biosimilar biological product to submit a request described 
     in paragraph (1)(B); or
       ``(bb) restricts the quantity (either directly or 
     indirectly) of the biosimilar biological product that may be 
     sold in the United States over a specified period of time.
       ``(3) High likelihood.--For purposes of this subsection, 
     there is a high likelihood described in paragraph (1) or 
     paragraph (2), as applicable, if the Secretary finds that--
       ``(A) an application for licensure under section 351(k) of 
     the Public Health Service Act for the biosimilar biological 
     product has been accepted for review or approved by the Food 
     and Drug Administration; and
       ``(B) information from items described in sub clauses 
     (I)(bb) and (III) of paragraph

[[Page S4082]]

     (1)(B)(ii) submitted to the Secretary by the manufacturer 
     requesting a delay under such paragraph 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.
       ``(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 as described in section 1195(b)(1)(A); and

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

       ``(ii) in the case of a biological product for which 
     payment may be made 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 as described in section 1195(b)(1)(A); 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) Definitions of biosimilar biological product.--In 
     this subsection, the term `biosimilar biological product' has 
     the meaning given such term in section 1847A(c)(6).'';
       (2) in section 1193(a)(4)--
       (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 striking ``section 
     1192(d)(2)(B)'' and inserting ``subsections (d)(2)(B) and 
     (f)(1)(C) of section 1192'';
       (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.''; 
     and
       (5) in section 1198(b)(2), by inserting ``the application 
     of section 1192(f),'' after ``section 1192(e)''.
       (b) Conforming Amendments for Disclosure of Certain 
     Information.--Section 1927(b)(3)(D)(i) of the Social Security 
     Act (42 U.S.C. 1396r-8(b)(3)(D)(i)) is amended by striking 
     ``or to carry out section 1847B'' and inserting ``or to carry 
     out section 1847B or 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. EXCISE TAX IMPOSED ON DRUG MANUFACTURERS 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--DESIGNATED DRUGS

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

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

       ``(a) In General.--There is hereby imposed on the sale by 
     the manufacturer, producer, or importer of any designated 
     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 designated 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 date on which such drug is 
     included on the list published under section 1192(a) of the 
     Social Security Act and ending on the earlier of--
       ``(A) the first date on which the manufacturer of such 
     designated drug has in place an agreement described in 
     section 1193(a) of such Act with respect to such drug, or
       ``(B) the date that the Secretary of Health and Human 
     Services has made a determination described in section 
     1192(c)(1) of such Act with respect to such designated 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 earlier of--
       ``(A) the first date on which the manufacturer of such 
     designated drug and the Secretary of Health and Human 
     Services have agreed to a maximum fair price under an 
     agreement described in section 1193(a) of the Social Security 
     Act, or
       ``(B) the date that the Secretary of Health and Human 
     Services has made a determination described in section 
     1192(c)(1) of such Act with respect to such designated drug.
       ``(3) In the case of any designated drug which is a 
     selected drug (as defined in section 1192(c) of the Social 
     Security Act) that the Secretary of Health and Human Services 
     has selected for renegotiation under section 1194(f) of such 
     Act, the period beginning on the November 2nd of the year 
     that begins 2 years prior to the first initial price 
     applicability year of the price applicability period for 
     which the maximum fair price established pursuant to such 
     renegotiation applies and ending on the earlier of--
       ``(A) the first date on which the manufacturer of such 
     designated drug has agreed to a renegotiated maximum fair 
     price under such agreement, or
       ``(B) the date that the Secretary of Health and Human 
     Services has made a determination described in section 
     1192(c)(1) of such Act with respect to such designated drug.
       ``(4) With respect to information that is required to be 
     submitted to the Secretary of Health and Human Services under 
     an agreement described in section 1193(a) of the Social 
     Security Act, 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) Suspension of Tax.--

[[Page S4083]]

       ``(1) In general.--A day shall not be taken into account as 
     a day during a period described in subsection (b) if such day 
     is also a day during the period--
       ``(A) beginning on the first date on which--
       ``(i) the notice of terminations of all applicable 
     agreements of the manufacturer have been received by the 
     Secretary of Health and Human Services, and
       ``(ii) none of the drugs of the manufacturer of the 
     designated drug are covered by an agreement under section 
     1860D-14A or 1860D-14C of the Social Security Act, and
       ``(B) ending on the last day of February following the 
     earlier of--
       ``(i) the first day after the date described in 
     subparagraph (A) on which the manufacturer enters into any 
     subsequent applicable agreement, or
       ``(ii) the first date any drug of the manufacturer of the 
     designated drug is covered by an agreement under section 
     1860D-14A or 1860D-14C of the Social Security Act.
       ``(2) Applicable agreement.--For purposes of this 
     subsection, the term `applicable agreement' means the 
     following:
       ``(A) An agreement under--
       ``(i) the Medicare coverage gap discount program under 
     section 1860D-14A of the Social Security Act, or
       ``(ii) the manufacturer discount program under section 
     1860D-14C of such Act.
       ``(B) A rebate agreement described in section 1927(b) of 
     such Act.
       ``(d) Applicable Percentage.--For purposes of this section, 
     the term `applicable percentage' means--
       ``(1) in the case of sales of a designated 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.
       ``(e) Definitions.--For purposes of this section--
       ``(1) Designated drug.--The term `designated drug' means 
     any negotiation-eligible drug (as defined in section 1192(d) 
     of the Social Security Act) included on the list published 
     under section 1192(a) of such 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) Other terms.--The terms `initial price applicability 
     year', `price applicability period', and `maximum fair price' 
     have the meaning given such terms in section 1191 of the 
     Social Security Act.
       ``(f) Special Rules.--
       ``(1) 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.
       ``(2) 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).
       ``(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 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) 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--Designated Drugs''.

       (d) 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 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 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 
     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)), 
     for which payment is made 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 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 subsection (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 subsection, 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 units.--For purposes of subparagraph 
     (A)(i), the total number of units for the billing and payment 
     code with respect to a part B rebatable drug furnished during 
     a calendar quarter described in subparagraph (A) is equal 
     to--
       ``(i) the number of units for the billing and payment code 
     of such drug furnished during such calendar quarter, minus
       ``(ii) the number of units for such billing and payment 
     code of such drug furnished during such calendar quarter--

       ``(I) with respect to which the manufacturer provides a 
     discount under the program under section 340B of the Public 
     Health Service Act or a rebate under section 1927; or
       ``(II) that are packaged into the payment amount for an 
     item or service and are not separately payable.

       ``(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)).

[[Page S4084]]

       ``(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).
       ``(8) Limitation on administrative or judicial review.--
     There shall be no administrative or judicial review of any of 
     the following:
       ``(A) The determination of units under this subsection.
       ``(B) The determination of whether a drug is a part B 
     rebatable drug under this subsection.
       ``(C) The calculation of the rebate amount under this 
     subsection.
       ``(D) The computation of coinsurance under paragraph (5) of 
     this subsection.
       ``(E) The computation of amounts paid under section 
     1833(a)(1)(EE).''.
       (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

[[Page S4085]]

     $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 of such dosage form and strength for 
     each rebatable covered part D drug dispensed under this part 
     during the applicable 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), 
     beginning with plan year 2026, 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, units of each dosage form and strength of 
     such part D rebatable drug for which the manufacturer 
     provides a discount under the program under section 340B of 
     the Public Health Service Act.
       ``(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 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 information.--The 
     Secretary shall provide for a method and process under which, 
     in the case where a PDP sponsor of a prescription drug plan 
     or an MA organization offering an MA-PD plan submits 
     revisions to the number of units of a rebatable covered part 
     D drug dispensed, 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--

[[Page S4086]]

       ``(1) manufacturers under section 1927(b)(3);
       ``(2) States under section 1927(b)(2)(A); and
       ``(3) PDP sponsors of prescription drug plans and MA 
     organization offering MA-PD plans under this part.
       ``(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 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) Limitation on Administrative or Judicial Review.--
     There shall be no administrative or judicial review of any 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 is 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.
       ``(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 sections 
     11002(b) and 11101(c)(3), is amended by striking ``or section 
     1192(f), including rebates under paragraph (4) of such 
     section'' and inserting ``, section 1192(f), including 
     rebates under paragraph (4) of such section, 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

[[Page S4087]]

       (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.
       ``(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.

[[Page S4088]]

       ``(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) Civil Money Penalty.--
       ``(1) In general.--A manufacturer that fails to provide 
     discounted prices for applicable drugs of the manufacturer 
     dispensed to applicable beneficiaries in accordance with an 
     agreement in effect under this section shall be subject to a 
     civil money penalty for each such failure in an amount the 
     Secretary determines is equal to the sum of--
       ``(A) 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
       ``(B) 25 percent of such amount.
       ``(2) Application.--The provisions of section 1128A (other 
     than subsections (a) 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) 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 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 for which payment may be made 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 for which payment may be made 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.

[[Page S4089]]

       ``(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.--
       ``(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:

[[Page S4090]]

       ``(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)(E), by striking ``1860D-
     2(b)(4)(A)(i)(I)'' and inserting ``1860D-
     2(b)(4)(A)(i)(I)(aa)''.
       (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;'';
       (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.

[[Page S4091]]

       ``(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--CONTINUED DELAY OF IMPLEMENTATION OF PRESCRIPTION DRUG REBATE 
                                  RULE

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

       The Secretary of Health and Human Services shall not, prior 
     to January 1, 2032, implement, administer, or enforce the 
     provisions of the final rule published by the Office of the 
     Inspector General of the Department of Health and Human 
     Services on November 30, 2020, and titled ``Fraud and Abuse; 
     Removal of Safe Harbor Protection for Rebates Involving 
     Prescription Pharmaceuticals and Creation of New Safe Harbor 
     Protection for Certain Point-of-Sale Reductions in Price on 
     Prescription Pharmaceuticals and Certain Pharmacy Benefit 
     Manager Service Fees'' (85 Fed. Reg. 76666).

                         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)'';
       (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 (3)(A), in the matter preceding clause 
     (i), by striking ``and (4)'' and inserting ``(4), and (8)'';
       (D) in paragraph (4)(A)(i), by striking ``The coverage'' 
     and inserting ``Subject to paragraph (8), the coverage''; and
       (E) 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 ``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.--
       (1) In general.--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 and Deductible 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 and deductible 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.''.
       (2) Treatment as incurred costs.--Section 1860D-
     2(b)(4)(C)(iii)(I) of the Social Security Act (42 U.S.C. 
     1395w-102(b)(4)(C)(iii)(I)), as amended by section 
     11201(a)(3)(C), is amended--
       (A) in item (cc), by striking ``or'' at the end; and
       (B) by adding at the end the following new item:
       ``(dd) under section 1860D-15(h); or''.
       (d) Rule of Construction.--Nothing in this section shall be 
     construed as limiting

[[Page S4092]]

     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 sections 11201 and 11401, 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)--
       (i) by inserting ``(or, with respect to a plan year 
     beginning on or after January 1, 2024, 150 percent)'' after 
     ``135 percent''; and
       (ii) by inserting ``(or, with respect to a plan year 
     beginning on or after January 1, 2024, paragraph (3)(E))'' 
     after ``the resources requirement described in paragraph 
     (3)(D)''; 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
       (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 Act titled `An Act to provide for 
     reconciliation pursuant to title II of S. Con. Res. 14', 
     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.

     SEC. 11406. APPROPRIATE COST-SHARING FOR COVERED INSULIN 
                   PRODUCTS UNDER MEDICARE PART D.

       (a) In General.--Section 1860D-2 of the Social Security Act 
     (42 U.S.C. 1395w-102), as amended by sections 11201, 11202, 
     and 11401, is amended--
       (1) in subsection (b)--

[[Page S4093]]

       (A) in paragraph (1)(A), by striking ``paragraph (8)'' and 
     inserting ``paragraphs (8) and (9)'';
       (B) in paragraph (2)--
       (i) in subparagraph (A), by striking ``paragraph (8)'' and 
     inserting ``paragraphs (8) and (9)'';
       (ii) in subparagraph (C)(i), in the matter preceding 
     subclause (I), by striking ``and (8)'' and inserting ``, (8), 
     and (9)''; and
       (iii) in subparagraph (D)(i), in the matter preceding 
     subclause (I), by striking ``and (8)'' and inserting ``, (8), 
     and (9)'';
       (C) in paragraph (3)(A), in the matter preceding clause 
     (i), by striking ``and (8)'' and inserting ``(8), and (9)'';
       (D) in paragraph (4)(A)(i), by striking ``paragraph (8)'' 
     and inserting ``paragraphs (8) and (9)''; and
       (E) by adding at the end the following new paragraph:
       ``(9) Treatment of cost-sharing for covered insulin 
     products.--
       ``(A) No application of deductible.--For plan year 2023 and 
     subsequent plan years, the deductible under paragraph (1) 
     shall not apply with respect to any covered insulin product.
       ``(B) Application of cost-sharing.--
       ``(i) Plan years 2023 and 2024.--For plan years 2023 and 
     2024, the coverage provides benefits for any covered insulin 
     product, regardless of whether an individual has reached the 
     initial coverage limit under paragraph (3) or the out-of-
     pocket threshold under paragraph (4), with cost-sharing for a 
     month's supply that does not exceed the applicable copayment 
     amount.
       ``(ii) Plan year 2025 and subsequent plan years.--For a 
     plan year beginning on or after January 1, 2025, the coverage 
     provides benefits for any covered insulin product, prior to 
     an individual reaching the out-of-pocket threshold under 
     paragraph (4), with cost-sharing for a month's supply that 
     does not exceed the applicable copayment amount.
       ``(C) Covered insulin product.--In this paragraph, the term 
     `covered insulin product' means an insulin product that is a 
     covered part D drug covered under the prescription drug plan 
     or MA-PD plan that is approved under section 505 of the 
     Federal Food, Drug, and Cosmetic Act or licensed under 
     section 351 of the Public Health Service Act and marketed 
     pursuant to such approval or licensure, including any covered 
     insulin product that has been deemed to be licensed under 
     section 351 of the Public Health Service Act pursuant to 
     section 7002(e)(4) of the Biologics Price Competition and 
     Innovation Act of 2009 and marketed pursuant to such section.
       ``(D) Applicable copayment amount.--In this paragraph, the 
     term `applicable copayment amount' means, with respect to a 
     covered insulin product under a prescription drug plan or an 
     MA-PD plan dispensed--
       ``(i) during plan years 2023, 2024, and 2025, $35; and
       ``(ii) during plan year 2026 and each subsequent plan year, 
     the lesser of--

       ``(I) $35;
       ``(II) an amount equal to 25 percent of the maximum fair 
     price established for the covered insulin product in 
     accordance with part E of title XI; or
       ``(III) an amount equal to 25 percent of the negotiated 
     price of the covered insulin product under the prescription 
     drug plan or MA-PD plan.

       ``(E) Special rule for first 3 months of 2023.--With 
     respect to a month's supply of a covered insulin product 
     dispensed during the period beginning on January 1, 2023, and 
     ending on March 31, 2023, a PDP sponsor offering a 
     prescription drug plan or an MA organization offering an MA-
     PD plan shall reimburse an enrollee within 30 days for any 
     cost-sharing paid by such enrollee that exceeds the cost-
     sharing applied by the prescription drug plan or MA-PD plan 
     under subparagraph (B)(i) at the point-of-sale for such 
     month's supply.''; and
       (2) in subsection (c), by adding at the end the following 
     new paragraph:
       ``(6) Treatment of cost-sharing for covered insulin 
     products.--The coverage is provided in accordance with 
     subsection (b)(9).''.
       (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 sections 11201, 
     11401, and 11404, is amended--
       (1) in paragraph (1)--
       (A) in subparagraph (D)(iii), by adding at the end the 
     following new sentence: ``For plan year 2023 and subsequent 
     plan years, the copayment amount applicable under the 
     preceding sentence to a month's supply of a covered insulin 
     product (as defined in section 1860D-2(b)(9)(C)) dispensed to 
     the individual may not exceed the applicable copayment amount 
     for the product under the prescription drug plan or MA-PD 
     plan in which the individual is enrolled.''; and
       (B) in subparagraph (E), by inserting the following before 
     the period at the end: ``or under section 1860D-2(b)(9) in 
     the case of a covered insulin product (as defined in 
     subparagraph (C) of such section)''; and
       (2) in paragraph (2)--
       (A) in subparagraph (B), by striking ``section 1860D-
     2(b)(8)'' and inserting ``paragraphs (8) and (9) of section 
     1860D-2(b)'';
       (B) in subparagraph (D), by adding at the end the following 
     new sentence: ``For plan year 2023, the amount of the 
     coinsurance applicable under the preceding sentence to a 
     month's supply of a covered insulin product (as defined in 
     section 1860D-2(b)(9)(C)) dispensed to the individual may not 
     exceed the applicable copayment amount for the product under 
     the prescription drug plan or MA-PD plan in which the 
     individual is enrolled.''; and
       (C) in subparagraph (E), by adding at the end the following 
     new sentence: ``For plan year 2023, the amount of the 
     copayment or coinsurance applicable under the preceding 
     sentence to a month's supply of a covered insulin product (as 
     defined in section 1860D-2(b)(9)(C)) dispensed to the 
     individual may not exceed the applicable copayment amount for 
     the product under the prescription drug plan or MA-PD plan in 
     which the individual is enrolled.''.
       (c) Temporary Retrospective Subsidy.--Section 1860D-15(h) 
     of the Social Security Act (42 U.S.C. 1395w-115(h)), as added 
     by section 11401(c), is amended--
       (1) in the subsection heading, by inserting ``and Insulin'' 
     after ``Practices''; and
       (2) in paragraph (1), by striking ``section 1860D-2(b)(8)'' 
     and inserting ``paragraph (8) or (9) of section 1860D-2(b)''.
       (d) Implementation for 2023 Through 2025.--The Secretary 
     shall implement this section for plan years 2023, 2024, and 
     2025 by program instruction or other forms of program 
     guidance.
       (e) 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, $1,500,000 for fiscal year 2022, to remain 
     available until expended, to carry out the provisions of, 
     including the amendments made by, this section.

     SEC. 11407. LIMITATION ON MONTHLY COINSURANCE AND ADJUSTMENTS 
                   TO SUPPLIER PAYMENT UNDER MEDICARE PART B FOR 
                   INSULIN FURNISHED THROUGH DURABLE MEDICAL 
                   EQUIPMENT.

       (a) Waiver of Deductible.--The first sentence of section 
     1833(b) of the Social Security Act (42 U.S.C. 1395l(b)) is 
     amended--
       (1) by striking ``and (12)'' and inserting ``(12)''; and
       (2) by inserting before the period the following: ``, and 
     (13) such deductible shall not apply with respect to insulin 
     furnished on or after July 1, 2023, through an item of 
     durable medical equipment covered under section 1861(n).''.
       (b) Coinsurance.--
       (1) In general.--Section 1833(a)(1)(S) of the Social 
     Security Act (42 U.S.C. 1395l(a)(1)(S)) is amended--
       (A) by inserting ``(i) except as provided in clause (ii),'' 
     after ``(S)''; and
       (B) by inserting after ``or 1847B),'' the following: ``and 
     (ii) with respect to insulin furnished on or after July 1, 
     2023, through an item of durable medical equipment covered 
     under section 1861(n), the amounts paid shall be, subject to 
     the fourth sentence of this subsection, 80 percent of the 
     payment amount established under section 1847A (or section 
     1847B, if applicable) for such insulin,''.
       (2) Adjustment to supplier payments; limitation on monthly 
     coinsurance.--Section 1833(a) of the Social Security Act (42 
     U.S.C. 1395l(a)) is amended, in the flush matter at the end, 
     by adding at the end the following new sentence: ``The 
     Secretary shall make such adjustments as may be necessary to 
     the amounts paid as specified under paragraph (1)(S)(ii) for 
     insulin furnished on or after July 1, 2023, through an item 
     of durable medical equipment covered under section 1861(n), 
     such that the amount of coinsurance payable by an individual 
     enrolled under this part for a month's supply of such insulin 
     does not exceed $35.''.
       (c) Implementation.--The Secretary of Health and Human 
     Services shall implement this section for 2023 by program 
     instruction or other forms of program guidance.

     SEC. 11408. SAFE HARBOR FOR ABSENCE OF DEDUCTIBLE FOR 
                   INSULIN.

       (a) In General.--Paragraph (2) of section 223(c) of the 
     Internal Revenue Code of 1986 is amended by adding at the end 
     the following new subparagraph:
       ``(G) Safe harbor for absence of deductible for certain 
     insulin products.--
       ``(i) In general.--A plan shall not fail to be treated as a 
     high deductible health plan by reason of failing to have a 
     deductible for selected insulin products.
       ``(ii) Selected insulin products.--For purposes of this 
     subparagraph--

       ``(I) In general.--The term `selected insulin products' 
     means any dosage form (such as vial, pump, or inhaler dosage 
     forms) of any different type (such as rapid-acting, short-
     acting, intermediate-acting, long-acting, ultra long-acting, 
     and premixed) of insulin.
       ``(II) Insulin.--The term `insulin' means insulin that is 
     licensed under subsection (a) or (k) of section 351 of the 
     Public Health Service Act (42 U.S.C. 262) and continues to be 
     marketed under such section, including any insulin product 
     that has been deemed to be licensed under section 351(a) of 
     such Act pursuant to section 7002(e)(4) of the Biologics 
     Price Competition and Innovation Act of 2009 (Public Law 111-
     148) and continues to be marketed pursuant to such 
     licensure.''.

       (b) Effective Date.--The amendment made by this section 
     shall apply to plan years beginning after December 31, 2022.

[[Page S4094]]

  


               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 the taxpayer or any contractor or subcontractor 
     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 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 taxpayer, contractor, or 
     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

[[Page S4095]]

     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 taxpayer or any 
     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 
     any individual employed by the taxpayer or 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 employed by the 
     taxpayer or by any 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 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 clause 
     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), 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 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.
       ``(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) a metropolitan statistical area or non-metropolitan 
     statistical area which--

       ``(I) has (or, at any time during the period beginning 
     after December 31, 2009, had) 0.17 percent or greater direct 
     employment or 25 percent or greater local tax revenues 
     related to the extraction, processing, transport, or storage 
     of coal, oil, or natural gas (as determined by the 
     Secretary), and
       ``(II) has an unemployment rate at or above the national 
     average unemployment rate for the previous year (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

[[Page S4096]]

       (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; Phaseout of Certain 
     Energy Property.--
       (1) Base energy percentage amount.--Section 48(a) is 
     amended--
       (A) in paragraph (2)(A)--
       (i) in clause (i), by striking ``30 percent'' and inserting 
     ``6 percent'', and
       (ii) in clause (ii), by striking ``10 percent'' and 
     inserting ``2 percent'', and
       (B) in paragraph (5)(A)(ii), by striking ``30 percent'' and 
     inserting ``6 percent''.
       (2) 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.''.
       (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 property comprising 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.--
       ``(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) 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

[[Page S4097]]

       ``(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 of electrical (as measured in alternating current) 
     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 the taxpayer or any contractor or subcontractor 
     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.
       ``(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

[[Page S4098]]

     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 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 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 
     48E(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

[[Page S4099]]

     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--

       ``(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 and on or after the date which is 3 years 
     prior to the date on which construction of such equipment 
     begins, the period beginning on the date such unit was placed 
     in service and ending on the date on which construction of 
     such equipment began, and
       ``(II) in the case of an applicable electric generating 
     unit which was originally placed in service more than 3 years 
     prior to the date on which construction of the carbon capture 
     equipment begins, the 3 years with the highest annual carbon 
     oxide production during the 12-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) 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--
       ``(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 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), 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 the taxpayer or any contractor or 
     subcontractor 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 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) 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.''.
       (f) 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''.
       (g) Election.--Section 45Q(f), as amended by subsection 
     (e), 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

[[Page S4100]]

     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 
     paragraph (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.''.
       (h) Regulations for Baseline Carbon Oxide Production.--
     Subsection (i) of section 45Q, as redesignated by subsection 
     (d), 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, after the date on which the carbon 
     capture equipment is placed in service, modifications which 
     are chargeable to capital account are made to such unit which 
     result in a significant increase or decrease in carbon oxide 
     production.''.
       (i) 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 (f) shall take 
     effect on the date of enactment of this Act.
       (4) Election.--The amendments made by subsection (g) 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 16 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.--Subject to clause (iii), 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. For purposes of determining the 
     amount received during such taxable year, the taxpayer shall 
     take into account any reductions required under such 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.
       ``(iii) Exclusion.--For purposes of clause (i), any amount 
     received by the taxpayer from a zero-emission credit program 
     shall be excluded from the amount determined under 
     subparagraph (A)(ii)(I) if the full amount of the credit 
     calculated pursuant to subsection (a) (determined without 
     regard to this subparagraph) is used to reduce payments from 
     such zero-emission credit program.
       ``(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.--
       ``(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 the taxpayer or any contractor or 
     subcontractor 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 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.--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

[[Page S4101]]

     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, the portion of 
     which is not kerosene, 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 or importer 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).
       ``(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 or importing 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.--

[[Page S4102]]

       (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
       ``(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 the taxpayer or any 
     contractor or subcontractor 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 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)(1), 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:

[[Page S4103]]

       ``(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 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.

     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--

[[Page S4104]]

       ``(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 fuel 
     blends at least 50 percent of the volume of which consists of 
     an eligible fuel.

       ``(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 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,

[[Page S4105]]

       ``(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) Section 25D(d)(3) is amended by inserting ``, without 
     regard to subparagraph (D) thereof'' after ``section 
     48(c)(1)''.
       (2) The heading for section 25D is amended by striking 
     ``energy efficient property'' and inserting ``clean energy 
     credit''.
       (3) 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 deduction 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 the taxpayer or any contractor or subcontractor 
     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.
       ``(6) Regulations.--The Secretary shall issue such 
     regulations or other guidance as the Secretary determines 
     necessary 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.''.
       (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).
       (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 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

[[Page S4106]]

       ``(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.--Paragraph (2) of section 
     45L(a) 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--
       ``(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 (a)(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 the taxpayer or any contractor or subcontractor 
     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

[[Page S4107]]

     guidance as the Secretary determines necessary 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--

       ``(I) in the United States, or
       ``(II) 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 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 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.--

[[Page S4108]]

       ``(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 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, 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(d)(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 subsection 
     pursuant to section 104 of the Federally Recognized Indian 
     Tribe List Act of 1994 (25 U.S.C. 5131).
       ``(10) Recapture.--In the case of any taxpayer who has made 
     an election described in paragraph (1) with respect to a new 
     clean vehicle and received a payment described in paragraph 
     (2)(C) from an eligible entity, if the credit under 
     subsection (a) would otherwise (but for this subsection) not 
     be allowable to such taxpayer pursuant to the application of 
     subsection (f)(10), the tax imposed on such taxpayer under 
     this chapter for the taxable year in which such vehicle was 
     placed in service shall be increased by the amount of the 
     payment received by such taxpayer.''.
       (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

[[Page S4109]]

     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 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,

[[Page S4110]]

       ``(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.--Rules similar to the rules under 
     subsection (f) of section 30D (without regard to paragraph 
     (10) or (11) thereof) shall apply for purposes of this 
     section.
       ``(2) 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).
       ``(3) 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 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 2 or 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.--
       ``(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 the taxpayer or 
     any contractor or subcontractor 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 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

[[Page S4111]]

     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.--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 a census tract which--
       ``(A) is described in clause (iii) of section 45(b)(11)(B), 
     and
       ``(B) prior to the date of enactment of this subsection, 
     had no project which 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 the 
     taxpayer or any contractor or subcontractor 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,
       ``(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, 48E, 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.--
       ``(A) In general.--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) Election.--
       ``(i) In general.--At the election of the taxpayer (in such 
     form and manner as the Secretary may prescribe), a sale of 
     components by such taxpayer to a related person shall be 
     deemed to have been made to an unrelated person.
       ``(ii) Requirement.--As a condition of, and prior to, any 
     election described in clause (i), the Secretary may require 
     such information

[[Page S4112]]

     or registration as the Secretary deems necessary for purposes 
     of preventing duplication, fraud, or any improper or 
     excessive amount determined under paragraph (1).
       ``(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).
       ``(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

[[Page S4113]]

       ``(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 12 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 from bauxite to a minimum purity of 99 
     percent alumina by mass, or
       ``(ii) purified to a minimum purity of 99.9 percent 
     aluminum by mass.
       ``(B) Antimony.--Antimony which is--
       ``(i) converted to antimony trisulfide concentrate with a 
     minimum purity of 90 percent antimony trisulfide by mass, or
       ``(ii) purified to a minimum purity of 99.65 percent 
     antimony by mass.
       ``(C) Barite.--Barite which is barium sulfate purified to a 
     minimum purity of 80 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 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 99.99 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
       ``(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 which is 
     purified to a minimum purity of 99 percent neodymium-
     praseodymium oxide by mass,
       ``(ii) converted to neodymium oxide which is purified to a 
     minimum purity of 99.5 percent neodymium oxide by mass
       ``(iii) purified to a minimum purity of 99.9 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 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 99.999 percent yttrium oxide by mass, or
       ``(ii) purified to a minimum purity of 99.9 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:

[[Page S4114]]

       ``(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 48E 
     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 
     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.

[[Page S4115]]

     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.
       ``(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.
       ``(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

[[Page S4116]]

     be increased by an amount equal to 10 percent of the amount 
     so determined (as determined without application of paragraph 
     (7)).
       ``(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 before January 1, 2025, 40 percent,
       ``(II) in the case of a facility the construction of which 
     begins after December 31, 2024, and before January 1, 2026, 
     45 percent,
       ``(III) in the case of a facility the construction of which 
     begins after December 31, 2025, and before January 1, 2027, 
     50 percent, and
       ``(IV) 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 before January 1, 2025, 20 percent,
       ``(II) in the case of a facility the construction of which 
     begins after December 31, 2024, and before January 1, 2026, 
     27.5 percent,
       ``(III) in the case of a facility the construction of which 
     begins after December 31, 2025, and before January 1, 2027, 
     35 percent,
       ``(IV) in the case of a facility the construction of which 
     begins after December 31, 2026, and before January 1, 2028, 
     45 percent, and
       ``(V) 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), 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,
       ``(ii) if construction of such facility began in calendar 
     year 2024, 90 percent,
       ``(iii) if construction of such facility began in calendar 
     year 2025, 85 percent, and
       ``(iv) 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 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, as amended by section 107(a) of the CHIPS Act of 
     2022, is amended by inserting after section 48D the following 
     new section:

     ``SEC. 48E. 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 of applying paragraph (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

[[Page S4117]]

       ``(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 45Y(g)(12) 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 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

[[Page S4118]]

     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) Section 46, as amended by section 107(d) of the CHIPS 
     Act of 2022, is amended--
       (A) in paragraph (5), by striking ``and'' at the end,
       (B) in paragraph (6), by striking the period at the end and 
     inserting ``, and'', and
       (C) by adding at the end the following:
       ``(7) the clean electricity investment credit.''.
       (2) Section 49(a)(1)(C), as amended by section 107(d) of 
     the CHIPS Act of 2022, is amended--
       (A) by striking ``and'' at the end of clause (v),
       (B) by striking the period at the end of clause (vi) and 
     inserting a comma, and
       (C) by adding at the end the following new clauses:
       ``(vii) the basis of any qualified property which is part 
     of a qualified facility under section 48E, and
       ``(viii) the basis of any energy storage technology under 
     section 48E.''.
       (3) Section 50(a)(2)(E), as amended by section 107(d) of 
     the CHIPS Act of 2022, is amended by striking ``or 
     48D(b)(5)'' and inserting ``48D(b)(5), or 48E(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, as amended by section 107(d) of 
     the CHIPS Act of 2022, is amended by inserting after the item 
     relating to section 48D the following new item:

``48E. 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 48E) 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, the portion of which is not kerosene, 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
       ``(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

[[Page S4119]]

       ``(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)(15) 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).''.
       (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:

[[Page S4120]]

       ``(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 48E.
       ``(c) Application to Partnerships and S Corporations.--
       ``(1) In general.--In the case of any applicable credit 
     determined with respect to any facility or property held 
     directly by a partnership or S corporation, any election 
     under subsection (a) shall be made by such partnership or S 
     corporation. If such partnership or S corporation makes an 
     election under such subsection (in such manner as the 
     Secretary may provide) with respect to such credit--
       ``(A) the Secretary shall make a payment to such 
     partnership or S corporation equal to the amount of such 
     credit,
       ``(B) subsection (e) shall be applied with respect to such 
     credit before determining any partner's distributive share, 
     or shareholder's pro rata share, of such credit,
       ``(C) any amount with respect to which the election in 
     subsection (a) is made shall be treated as tax exempt income 
     for purposes of sections 705 and 1366, and
       ``(D) a partner's distributive share of such tax exempt 
     income shall be based on such partner's distributive share of 
     the otherwise applicable 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 applicable credit 
     determined with respect to such facility or property.
       ``(3) Treatment of payments to partnerships and s 
     corporations.--For purposes of section 1324 of title 31, 
     United States Code, the payments under paragraph (1)(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.
       ``(d) Special Rules.--For purposes of this section--
       ``(1) Applicable entity.--
       ``(A) In general.--The term `applicable entity' means--
       ``(i) any organization exempt from the tax imposed by 
     subtitle A,
       ``(ii) any State or political subdivision thereof,
       ``(iii) the Tennessee Valley Authority,
       ``(iv) an Indian tribal government (as defined in section 
     30D(g)(9)),
       ``(v) any Alaska Native Corporation (as defined in section 
     3 of the Alaska Native Claims Settlement Act (43 U.S.C. 
     1602(m)), or
       ``(vi) any corporation operating on a cooperative basis 
     which is engaged in furnishing electric energy to persons in 
     rural areas.
       ``(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.

       ``(iii) Prohibition on transfer.--For any taxable year 
     described in clause (ii)(I), no election may be made by the 
     taxpayer under section 6418(a) for such taxable year with 
     respect to eligible components for purposes of the credit 
     described in subsection (b)(7).
       ``(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--

[[Page S4121]]

       ``(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
       ``(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 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), or the amount of the payment made pursuant to 
     subsection (c), 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)(ii) 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), or the amount of the 
     payment made pursuant to subsection (c), 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.
       ``(e) 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.
       ``(f) 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.
       ``(g) 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.
       ``(h) Regulations.--The Secretary shall issue such 
     regulations or other guidance as may be necessary 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 48E.
       ``(B) Election for certain credits.--In the case of any 
     eligible credit described in clause (ii), (iii), (v), or 
     (vii) of subparagraph

[[Page S4122]]

     (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 `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(d)(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 for 
     purposes of preventing duplication, fraud, improper payments, 
     or excessive payments under this section.
       ``(2) Excessive credit transfer.--
       ``(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 credit transfer, 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 credit transfer, plus
       ``(ii) an amount equal to 20 percent of such excessive 
     credit transfer.
       ``(B) Reasonable cause.--Subparagraph (A)(ii) shall not 
     apply if the transferee taxpayer demonstrates to the 
     satisfaction of the Secretary that the excessive credit 
     transfer resulted from reasonable cause.
       ``(C) Excessive credit transfer defined.--For purposes of 
     this paragraph, the term `excessive credit transfer' 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 under this 
     title with respect to such facility or property for such 
     taxable year.
       ``(3) Basis reduction; notification of recapture.--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)--
       ``(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, and
       ``(B) if, during any taxable year, the applicable 
     investment credit property (as defined in subsection (a)(5) 
     of section 50) is disposed of, or otherwise ceases to be 
     investment credit property with respect to the eligible 
     taxpayer, before the close of the recapture period (as 
     described in subsection (a)(1) of such section)--
       ``(i) such eligible taxpayer shall provide notice of such 
     occurrence to the transferee taxpayer (in such form and 
     manner as the Secretary shall prescribe), and
       ``(ii) the transferee taxpayer shall provide notice of the 
     recapture amount (as defined in subsection (c)(2) of such 
     section), if any, to the eligible taxpayer (in such form and 
     manner as the Secretary shall prescribe).
       ``(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 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) Gross-up of Direct Spending.--Beginning in fiscal year 
     2023 and each fiscal year thereafter, the portion of any 
     payment made to a taxpayer pursuant to an election under 
     section 6417 of the Internal Revenue Code of 1986, or any 
     amount treated as a payment which is made by the taxpayer 
     under subsection (a) of such section, that is direct spending 
     shall be increased by 6.0445 percent.
       (g) 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 9--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.

     SEC. 13903. TAX TREATMENT OF CERTAIN ASSISTANCE TO FARMERS, 
                   ETC.

       For purposes of the Internal Revenue Code of 1986, in the 
     case of any payment described in section 1006(e) of the 
     American Rescue Plan Act of 2021 (as amended by section 22007 
     of this Act) or section 22006 of this Act--
       (1) such payment shall not be included in the gross income 
     of the person on whose behalf, or to whom, such payment is 
     made,

[[Page S4123]]

       (2) no deduction shall be denied, no tax attribute shall be 
     reduced, and no basis increase shall be denied, by reason of 
     the exclusion from gross income provided by paragraph (1), 
     and
       (3) in the case of a partnership or S corporation on whose 
     behalf, or to whom, such a payment is made--
       (A) any amount excluded from income by reason of paragraph 
     (1) shall be treated as tax exempt income for purposes of 
     sections 705 and 1366 of such Code, and
       (B) except as provided by the Secretary of the Treasury (or 
     the Secretary's delegate), any increase in the adjusted basis 
     of a partner's interest in a partnership under section 705 of 
     such Code with respect to any amount described in 
     subparagraph (A) shall equal the partner's distributive share 
     of deductions resulting from interest that is part of such 
     payment and the partner's share, as determined under section 
     752 of such Code, of principal that is part of such payment.

      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; and

       (iii) the funds shall be available for 1 or more 
     agricultural conservation practices or enhancements that the 
     Secretary determines directly improve soil carbon, reduce 
     nitrogen losses, or reduce, capture, avoid, or sequester 
     carbon dioxide, methane, or nitrous oxide emissions, 
     associated with agricultural production;
       (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 condition on the use of the funds that 
     the funds shall only be available for 1 or more agricultural 
     conservation practices, enhancements, or bundles that the 
     Secretary determines directly improve soil carbon, reduce 
     nitrogen losses, or reduce, capture, avoid, or sequester 
     carbon dioxide, methane, or nitrous oxide emissions, 
     associated with agricultural production;
       (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) for easements or 
     interests in land that will most reduce, capture, avoid, or 
     sequester carbon dioxide, methane, or nitrous oxide emissions 
     associated with land eligible for the program--
       (A) $100,000,000 for fiscal year 2023;
       (B) $200,000,000 for fiscal year 2024;
       (C) $500,000,000 for fiscal year 2025; and
       (D) $600,000,000 for fiscal year 2026; 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) $800,000,000 for fiscal year 2024;
       (iii) $1,500,000,000 for fiscal year 2025; and
       (iv) $2,400,000,000 for fiscal year 2026; and
       (B) subject to the conditions on the use of the funds 
     that--
       (i) section 1271C(d)(2)(B) of the Food Security Act of 1985 
     (16 U.S.C. 3871c(d)(2)(B)) shall not apply; and
       (ii) the Secretary 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, reducing nitrogen losses, or reducing, 
     capturing, avoiding, or sequestering carbon dioxide, methane, 
     or nitrous oxide emissions, associated with agricultural 
     production.
       (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 (2)(F), by striking ``2023'' and 
     inserting ``2031''; and
       (iii) 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 program to quantify carbon 
     sequestration and carbon dioxide, methane, and nitrous oxide 
     emissions, through which the Natural Resources Conservation 
     Service shall collect field-based data to assess the carbon 
     sequestration and reduction in carbon dioxide, methane, and 
     nitrous oxide emissions outcomes associated with activities 
     carried out pursuant to this section and use the data to 
     monitor and track those carbon sequestration and emissions 
     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 and Agricultural Credit

     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

[[Page S4124]]

     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 
     in an amount that is not greater than 50 percent of the loan 
     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, except as 
     provided in paragraph (3).
       ``(2) Limitation.--The Secretary shall not enter into any 
     loan agreement pursuant this subsection that could result in 
     disbursements after September 30, 2031.
       ``(3) Exception.--The Secretary shall establish criteria 
     for waiving the 50 percent limitation described in paragraph 
     (1).''.

     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 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 biofuel 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.''.

     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 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) loans, modifications of loans, the cost 
     of loans and modifications, and other financial assistance to 
     achieve the greatest reduction in carbon dioxide, methane, 
     and nitrous oxide emissions associated with rural electric 
     systems through the purchase of 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.
       ``(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 administrative costs of 
     the agencies and offices of the Department for costs related 
     to implementing this subtitle.

     SEC. 22006. FARM LOAN IMMEDIATE RELIEF FOR BORROWERS WITH AT-
                   RISK AGRICULTURAL OPERATIONS.

       In addition to amounts otherwise available, there is 
     appropriated to the Secretary for fiscal year 2022, out of 
     amounts in the Treasury not otherwise appropriated, 
     $3,100,000,000, to remain available until September 30, 2031, 
     to provide payments to, for the cost of loans or loan 
     modifications for, or to carry out section 331(b)(4) of the 
     Consolidated Farm and Rural Development Act (7 U.S.C. 
     1981(b)(4)) with respect to distressed borrowers of direct or 
     guaranteed loans administered by the Farm Service Agency 
     under subtitle A, B, or C of that Act (7 U.S.C. 1922 through 
     1970). In carrying out this section, the Secretary shall 
     provide relief to those borrowers whose agricultural 
     operations are at financial risk as expeditiously as 
     possible, as determined by the Secretary.

     SEC. 22007. USDA ASSISTANCE AND SUPPORT FOR UNDERSERVED 
                   FARMERS, RANCHERS, AND FORESTERS.

       Section 1006 of the American Rescue Plan Act of 2021 (7 
     U.S.C. 2279 note; Public Law 117-2) is amended to read as 
     follows:

     ``SEC. 1006. USDA ASSISTANCE AND SUPPORT FOR UNDERSERVED 
                   FARMERS, RANCHERS, FORESTERS.

       ``(a) Technical and Other Assistance.--In addition to 
     amounts otherwise available, there is appropriated to the 
     Secretary of Agriculture for fiscal year 2022, to remain 
     available until September 30, 2031, out of any money in the 
     Treasury not otherwise appropriated, $125,000,000 to provide 
     outreach, mediation, financial training, capacity building 
     training, cooperative development and agricultural credit 
     training and support, and other technical assistance on 
     issues concerning food, agriculture, agricultural credit, 
     agricultural extension, rural development, or nutrition to 
     underserved farmers, ranchers, or forest landowners, 
     including veterans, limited resource producers, beginning 
     farmers and ranchers, and farmers, ranchers, and forest 
     landowners living in high poverty areas.
       ``(b) Land Loss Assistance.--In addition to amounts 
     otherwise available, there is appropriated to the Secretary 
     of Agriculture for fiscal year 2022, to remain available 
     until September 30, 2031, out of any money in the Treasury 
     not otherwise appropriated, $250,000,000 to provide grants 
     and loans to eligible entities, as determined by the 
     Secretary, to improve land access (including heirs' property 
     and fractionated land issues) for underserved farmers, 
     ranchers, and forest landowners, including veterans, limited 
     resource producers, beginning farmers and ranchers, and 
     farmers, ranchers, and forest landowners living in high 
     poverty areas.
       ``(c) Equity Commissions.--In addition to amounts otherwise 
     available, there is appropriated to the Secretary of 
     Agriculture for fiscal year 2022, to remain available until 
     September 30, 2031, out of any money in the Treasury not 
     otherwise appropriated, $10,000,000 to fund the activities of 
     one or more equity commissions that will address racial 
     equity issues within the Department

[[Page S4125]]

     of Agriculture and the programs of the Department of 
     Agriculture.
       ``(d) Research, Education, and Extension.--In addition to 
     amounts otherwise available, there is appropriated to the 
     Secretary of Agriculture for fiscal year 2022, to remain 
     available until September 30, 2031, out of any money in the 
     Treasury not otherwise appropriated, $250,000,000 to support 
     and supplement agricultural research, education, and 
     extension, as well as scholarships and programs that provide 
     internships and pathways to agricultural sector or Federal 
     employment, for 1890 Institutions (as defined in section 2 of 
     the Agricultural, Research, Extension, and Education Reform 
     Act of 1998 (7 U.S.C. 7601)), 1994 Institutions (as defined 
     in section 532 of the Equity in Educational Land-Grant Status 
     Act of 1994 (7 U.S.C. 301 note; Public Law 103-382)), Alaska 
     Native serving institutions and Native Hawaiian serving 
     institutions eligible to receive grants under subsections (a) 
     and (b), respectively, of section 1419B of the National 
     Agricultural Research, Extension, and Teaching Policy Act of 
     1977 (7 U.S.C. 3156), Hispanic-serving institutions eligible 
     to receive grants under section 1455 of the National 
     Agricultural Research, Extension, and Teaching Policy Act of 
     1977 (7 U.S.C. 3241), and the insular area institutions of 
     higher education located in the territories of the United 
     States, as referred to in section 1489 of the National 
     Agricultural Research, Extension, and Teaching Policy Act of 
     1977 (7 U.S.C. 3361).
       ``(e) Discrimination Financial Assistance.--In addition to 
     amounts otherwise available, there is appropriated to the 
     Secretary of Agriculture for fiscal year 2022, to remain 
     available until September 30, 2031, out of any money in the 
     Treasury not otherwise appropriated, $2,200,000,000 for a 
     program to provide financial assistance, including the cost 
     of any financial assistance, to farmers, ranchers, or forest 
     landowners determined to have experienced discrimination 
     prior to January 1, 2021, in Department of Agriculture farm 
     lending programs, under which the amount of financial 
     assistance provided to a recipient may be not more than 
     $500,000, as determined to be appropriate based on any 
     consequences experienced from the discrimination, which 
     program shall be administered through 1 or more qualified 
     nongovernmental entities selected by the Secretary subject to 
     standards set and enforced by the Secretary.
       ``(f) Administrative Costs.--In addition to amounts 
     otherwise available, there is appropriated to the Secretary 
     of Agriculture for fiscal year 2022, to remain available 
     until September 30, 2031, out of any money in the Treasury 
     not otherwise appropriated, $24,000,000 for administrative 
     costs, including training employees, of the agencies and 
     offices of the Department of Agriculture to carry out this 
     section.
       ``(g) Limitation.--The funds made available under this 
     section are subject to the condition that the Secretary shall 
     not--
       ``(1) enter into any agreement 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.''.

     SEC. 22008. REPEAL OF FARM LOAN ASSISTANCE.

       Section 1005 of the American Rescue Plan Act of 2021 (7 
     U.S.C. 1921 note; Public Law 117-2) is repealed.

                          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 
     plan developed under section 303(d)(1) or 304(a)(3) of the 
     Healthy Forests Restoration Act of 2003 (16 U.S.C. 6542(d)(1) 
     or 6543(a)(3));
       (3) $100,000,000 to provide for 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 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) Restrictions.--None of the funds made available by 
     paragraph (1) or (2) of subsection (a) 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.
       (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.
       (d) 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.
       (e) Definitions.--In this section:
       (1) 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.
       (2) 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).
       (3) 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.
       (4) 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).
       (5) 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.
       (6) 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

[[Page S4126]]

     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; and
       (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.
       (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) for projects for the acquisition of land and interests 
     in land; 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 agency or governmental entity of an insular area 
     (as defined in section 1404 of the National Agricultural 
     Research, Extension, and Teaching Policy Act of 1977 (7 
     U.S.C. 3103)), 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.
       (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, 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 
     such loans, not to exceed $4,000,000,000, to fund projects 
     that improve energy or water efficiency, enhance indoor air 
     quality or sustainability, implement the use of zero-emission 
     electricity generation, low-emission building materials or 
     processes, energy storage, or building electrification 
     strategies, 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 for information 
     technology, research and evaluation, and administering and 
     overseeing the implementation of this section;
       (3) $60,000,000, to remain available until September 30, 
     2029, for expenses of contracts or cooperative agreements 
     administered by the Secretary; 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 or 
     loans, along with associated data analysis and evaluation at 
     the property and portfolio level, and 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, resources, Pacific salmon and other marine 
     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, marine fishery and 
     marine mammal stock assessments, 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, facilities in need of replacement, 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

[[Page S4127]]

     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
       (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).

[[Page S4128]]

       (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 
     are 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 a disadvantaged 
     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)(7).
       (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), 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 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.--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) 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.
       (7) 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) Disadvantaged community.--The term ``disadvantaged 
     community'' means a community that the Secretary determines, 
     based on appropriate data, indices, and screening tools, is 
     economically, socially, or environmentally disadvantaged.
       (2) 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.
       (3) 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.

     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

[[Page S4129]]

     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;
       (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, 
     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

[[Page S4130]]

       (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 
     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 not more than 
     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 not more 
     than 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 not 
     more than $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''.

[[Page S4131]]

  


     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 not 
     more than 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--
       ``(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.

     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 pay the 
     costs of 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) 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.
       (D) 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.
       (E) 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 (C) or (D) 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

[[Page S4132]]

     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 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;
       (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 not 
     more than $300,000,000 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, 
     $20,000,000, 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

[[Page S4133]]

     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.

     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 to serve in units of the National Park 
     System or national historic or national scenic trails 
     administered by the National Park Service.

     SEC. 50224. NATIONAL PARK SYSTEM DEFERRED MAINTENANCE.

       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, 2026, 
     to carry out priority deferred maintenance projects, through 
     direct expenditures or transfers, within the boundaries 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.

     SEC. 50233. DROUGHT MITIGATION IN THE RECLAMATION STATES.

       (a) Definition of Reclamation State.--In this section, the 
     term ``Reclamation State'' means a State or territory 
     described in the first section of the Act of June 17, 1902 
     (32 Stat. 388, chapter 1093; 43 U.S.C. 391).
       (b) Appropriation.--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, $4,000,000,000, to remain available through 
     September 30, 2026, for grants, contracts, or financial 
     assistance agreements, in accordance with the reclamation 
     laws, to or with public entities and Indian Tribes, that 
     provide for the conduct of the following activities to 
     mitigate the impacts of drought in the Reclamation States, 
     with priority given to the Colorado River Basin and other 
     basins experiencing comparable levels of long-term drought, 
     to be implemented in compliance with applicable environmental 
     law:
       (1) Compensation for a temporary or multiyear voluntary 
     reduction in diversion of water or consumptive water use.
       (2) Voluntary system conservation projects that achieve 
     verifiable reductions in use of or demand for water supplies 
     or provide environmental benefits in the Lower Basin or Upper 
     Basin of the Colorado River.
       (3) Ecosystem and habitat restoration projects to address 
     issues directly caused by drought in a river basin or inland 
     water body.
       (c) Report.--Not later than 1 year after the date of 
     enactment of this Act, and each year thereafter, the 
     Secretary shall submit to Congress a report that describes 
     any expenditures under this section.

                        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

[[Page S4134]]

     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 Act titled `An Act to provide for 
     reconciliation pursuant to title II of S. Con. Res. 14', 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 Act titled `An Act 
     to provide for reconciliation pursuant to title II of S. Con. 
     Res. 14', 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 Act 
     titled `An Act to provide for reconciliation pursuant to 
     title II of S. Con. Res. 14', 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 Act titled `An Act to provide for reconciliation 
     pursuant to title II of S. Con. Res. 14', 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 Act 
     titled `An Act to provide for reconciliation pursuant to 
     title II of S. Con. Res. 14'.''; 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 Act titled `An Act to provide for 
     reconciliation pursuant to title II of S. Con. Res. 14', $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.''.
       (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 (30 
     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.

     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.

[[Page S4135]]

       (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) 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)).
       (2) Lease sale 258.--The term ``Lease Sale 258'' means the 
     lease sale numbered 258 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)).
       (3) Lease sale 259.--The term ``Lease Sale 259'' means the 
     lease sale numbered 259 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)).
       (4) 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 Lease Sale 258.--Notwithstanding the 
     expiration of the 2017-2022 leasing program, not later than 
     December 31, 2022, the Secretary shall conduct Lease Sale 258 
     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 259.--Notwithstanding the 
     expiration of the 2017-2022 leasing program, not later than 
     March 31, 2023, the Secretary shall conduct Lease Sale 259 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)).
       (e) 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--
       (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, 
     $115,000,000, 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.

[[Page S4136]]

  


     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) Greenhouse gas.--The term `greenhouse gas' means the 
     air pollutants carbon dioxide, hydrofluorocarbons, methane, 
     nitrous oxide, perfluorocarbons, and sulfur hexafluoride.
       ``(5) 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.''.

     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;
       ``(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 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' means the 
     air pollutants carbon dioxide, hydrofluorocarbons, methane, 
     nitrous oxide, perfluorocarbons, and sulfur hexafluoride.
       ``(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 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 low-income and 
     disadvantaged near-port communities and other stakeholders 
     that may be affected by implementation of the plan; and
       ``(C) describes how an eligible recipient has implemented 
     or will implement measures to increase the resilience of the 
     one or more ports involved.
       ``(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,

[[Page S4137]]

     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, leverage private 
     capital, and provide 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' means the 
     air pollutants carbon dioxide, hydrofluorocarbons, methane, 
     nitrous oxide, perfluorocarbons, and sulfur hexafluoride.
       ``(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) 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 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, and 231 of the Clean Air Act 
     (42 U.S.C. 7411, 7415, 7475, 7507, 7521, 7545, 7547, and 
     7571).
       (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'' means the air pollutants carbon 
     dioxide, hydrofluorocarbons, methane, nitrous oxide, 
     perfluorocarbons, and sulfur hexafluoride.

     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 
     greenhouse gas emissions and other air pollutants 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.

[[Page S4138]]

       (c) Definition of Greenhouse Gas.--In this section, the 
     term ``greenhouse gas'' means the air pollutants carbon 
     dioxide, hydrofluorocarbons, methane, nitrous oxide, 
     perfluorocarbons, and sulfur hexafluoride.

     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, technical 
     assistance, and 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, 
     and partnerships with, State, Tribal, and local governments 
     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 ensure that reductions in greenhouse 
     gas emissions are achieved through use of the existing 
     authorities of this Act, incorporating the assessment under 
     paragraph (5).
       ``(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' means the air pollutants carbon 
     dioxide, hydrofluorocarbons, methane, nitrous oxide, 
     perfluorocarbons, and sulfur hexafluoride.''.

     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'' means the air pollutants carbon 
     dioxide, hydrofluorocarbons, methane, nitrous oxide, 
     perfluorocarbons, and sulfur hexafluoride.

     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 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.

       (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, 
     $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 
     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.
       (b) Definition of Greenhouse Gas.--In this section, the 
     term ``greenhouse gas'' means the air pollutants carbon 
     dioxide, hydrofluorocarbons, methane, nitrous oxide, 
     perfluorocarbons, and sulfur hexafluoride.

     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, enhanced standardization and transparency, and 
     reporting criteria for environmental product declarations 
     that include measurements of the embodied greenhouse gas 
     emissions of the material or product associated with all 
     relevant stages of production, use, and disposal, and conform 
     with international standards, for construction materials and 
     products 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:

[[Page S4139]]

       (1) Greenhouse gas.--The term ``greenhouse gas'' means the 
     air pollutants carbon dioxide, hydrofluorocarbons, methane, 
     nitrous oxide, perfluorocarbons, and sulfur hexafluoride.
       (2) 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 
     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, prepare inventories, gather 
     empirical data, and track 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.
       ``(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 
     or through 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 or through 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) Reporting.--Not later than 2 years after the date of 
     enactment of this section, 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.
       ``(i) Definition of Greenhouse Gas.--In this section, the 
     term `greenhouse gas' means the air pollutants carbon 
     dioxide, hydrofluorocarbons, methane, nitrous oxide, 
     perfluorocarbons, and sulfur hexafluoride.''.

     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

[[Page S4140]]

     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, to provide technical assistance to eligible 
     entities, to develop a plan that could be used as a model by 
     grantees in developing a plan under subsection (b), and to 
     model 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 the degree to which greenhouse gas air pollution is 
     projected to be reduced in total and with respect to low-
     income and disadvantaged communities.
       ``(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' means the 
     air pollutants carbon dioxide, hydrofluorocarbons, methane, 
     nitrous oxide, perfluorocarbons, and sulfur hexafluoride.''.

     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 
     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 
     construction materials and products that have substantially 
     lower levels of embodied greenhouse gas emissions associated 
     with all relevant stages of production, use, and disposal, as 
     compared to estimated industry averages of similar materials 
     or products, as determined by the Administrator of the 
     Environmental Protection Agency, based on--
       (1) environmental product declarations; or
       (2) determinations by State agencies, as verified by the 
     Administrator of the Environmental Protection Agency.
       (b) Definition of Greenhouse Gas.--In this section, the 
     term ``greenhouse gas'' means the air pollutants carbon 
     dioxide, hydrofluorocarbons, methane, nitrous oxide, 
     perfluorocarbons, and sulfur hexafluoride.

                    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 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 advisory groups, workshops, rulemakings, 
     and other public processes.
       ``(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.
       ``(d) Definition of Greenhouse Gas.--In this section, the 
     term `greenhouse gas' means the air pollutants carbon 
     dioxide, hydrofluorocarbons, methane, nitrous oxide, 
     perfluorocarbons, and sulfur hexafluoride.''.

          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 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 by--
       (1) addressing the threat of invasive species;
       (2) increasing the resiliency and capacity of habitats and 
     infrastructure to withstand weather events; and
       (3) reducing the amount of damage caused by 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

[[Page S4141]]

       (B) cumulative impacts of pollution and temperature rise;
       (2) to establish, expand, and maintain efforts to track 
     disproportionate burdens and cumulative impacts and provide 
     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 amended by adding at the end the following:

     ``Sec. 177. 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 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;
       ``(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 through--
       ``(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 greenhouse gas 
     emissions and other air pollution;
       ``(C) natural infrastructure, pervious, permeable, or 
     porous pavement, or protective features to reduce or manage 
     stormwater run-off resulting from a facility described in 
     subsection (c)(2);
       ``(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, 
     $1,262,000,000, 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, underserved, or 
     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, $50,000,000, 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.''.
       (b) Clerical Amendment.--The analysis for chapter 1 of 
     title 23, United States Code, is amended by adding at the end 
     the following:

``177. 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 materials and products for use in the 
     construction or alteration of buildings under the 
     jurisdiction, custody, and control of the General Services 
     Administration that have substantially lower levels of 
     embodied greenhouse gas emissions associated with all 
     relevant stages of production, use, and disposal as compared 
     to estimated industry averages of similar materials or 
     products, as determined by the Administrator of the 
     Environmental Protection Agency.
       (b) Definition of Greenhouse Gas.--In this section, the 
     term ``greenhouse gas'' means the air pollutants carbon 
     dioxide, hydrofluorocarbons, methane, nitrous oxide, 
     perfluorocarbons, and sulfur hexafluoride.

     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

[[Page S4142]]

     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. 178. 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 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 and any administrative expenses of 
     the Federal Highway Administration to conduct activities 
     described in this section; and
       ``(2) providing funds made available under this subsection 
     to eligible entities--
       ``(A) to build capacity of such eligible entities to 
     conduct environmental review processes;
       ``(B) to facilitate the environmental review process for 
     proposed projects by--
       ``(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 review 
     process in accordance with applicable statutes and 
     regulations;
       ``(iv) conducting public engagement activities; and
       ``(v) carrying out permitting or other activities, as the 
     Administrator determines to be appropriate, to support the 
     timely completion of an environmental review process required 
     for a proposed project; and
       ``(C) for administrative expenses of the eligible entity to 
     conduct any of the activities described in subparagraphs (A) 
     and (B).
       ``(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.
       ``(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:

``178. 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. 179. 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, in projects, of construction 
     materials and products that have substantially lower levels 
     of embodied greenhouse gas emissions associated with all 
     relevant stages of production, use, and disposal as compared 
     to estimated industry averages of similar materials or 
     products, as determined by the Administrator of the 
     Environmental Protection Agency, 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) Greenhouse gas.--The term `greenhouse gas' means the 
     air pollutants carbon dioxide, hydrofluorocarbons, methane, 
     nitrous oxide, perfluorocarbons, and sulfur hexafluoride.''.
       (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. 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, the following amounts, to be deposited into the 
     Postal Service Fund established under section 2003 of title 
     39, United States Code:
       (1) $1,290,000,000, to remain available through September 
     30, 2031, for the purchase of zero-emission delivery 
     vehicles.
       (2) $1,710,000,000, to remain available through September 
     30, 2031, for 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

[[Page S4143]]

     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.

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

       In addition to amounts otherwise available, there is 
     appropriated to the Federal Permitting Improvement Steering 
     Council Environmental Review Improvement Fund, out of any 
     money in the Treasury not otherwise appropriated, 
     $350,000,000 for fiscal year 2023, to remain available 
     through September 30, 2031.

                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.

     TITLE IX--COMMITTEE ON HEALTH, EDUCATION, LABOR, AND PENSIONS

     SEC. 90001. REQUIREMENTS WITH RESPECT TO COST-SHARING FOR 
                   INSULIN PRODUCTS.

       (a) In General.--Part D of title XXVII of the Public Health 
     Service Act (42 U.S.C. 300gg-111 et seq.) is amended by 
     adding at the end the following:

     ``SEC. 2799A-11. REQUIREMENTS WITH RESPECT TO COST-SHARING 
                   FOR CERTAIN INSULIN PRODUCTS.

       ``(a) In General.--For plan years beginning on or after 
     January 1, 2023, a group health plan or health insurance 
     issuer offering group or individual health insurance coverage 
     shall provide coverage of selected insulin products, and with 
     respect to such products, shall not--
       ``(1) apply any deductible; or
       ``(2) impose any cost-sharing in excess of, per 30-day 
     supply--
       ``(A) for any applicable plan year beginning before January 
     1, 2024, $35; or
       ``(B) for any plan year beginning on or after January 1, 
     2024, the lesser of--
       ``(i) $35; or
       ``(ii) the amount equal to 25 percent of the negotiated 
     price of the selected insulin product net of all price 
     concessions received by or on behalf of the plan or coverage, 
     including price concessions received by or on behalf of 
     third-party entities providing services to the plan or 
     coverage, such as pharmacy benefit management services.
       ``(b) Definitions.--In this section:
       ``(1) Selected insulin products.--The term `selected 
     insulin products' means at least one of each dosage form 
     (such as vial, pump, or inhaler dosage forms) of each 
     different type (such as rapid-acting, short-acting, 
     intermediate-acting, long-acting, ultra long-acting, and 
     premixed) of insulin (as defined below), when available, as 
     selected by the group health plan or health insurance issuer.
       ``(2) Insulin defined.--The term `insulin' means insulin 
     that is licensed under subsection (a) or (k) of section 351 
     and continues to be marketed under such section, including 
     any insulin product that has been deemed to be licensed under 
     section 351(a) pursuant to

[[Page S4144]]

     section 7002(e)(4) of the Biologics Price Competition and 
     Innovation Act of 2009 and continues to be marketed pursuant 
     to such licensure.
       ``(c) Out-of-network Providers.--Nothing in this section 
     requires a plan or issuer that has a network of providers to 
     provide benefits for selected insulin products described in 
     this section that are delivered by an out-of-network 
     provider, or precludes a plan or issuer that has a network of 
     providers from imposing higher cost-sharing than the levels 
     specified in subsection (a) for selected insulin products 
     described in this section that are delivered by an out-of-
     network provider.
       ``(d) Rule of Construction.--Subsection (a) shall not be 
     construed to require coverage of, or prevent a group health 
     plan or health insurance coverage from imposing cost-sharing 
     other than the levels specified in subsection (a) on, insulin 
     products that are not selected insulin products, to the 
     extent that such coverage is not otherwise required and such 
     cost-sharing is otherwise permitted under Federal and 
     applicable State law.
       ``(e) Application of Cost-sharing Towards Deductibles and 
     Out-of-pocket Maximums.--Any cost-sharing payments made 
     pursuant to subsection (a)(2) shall be counted toward any 
     deductible or out-of-pocket maximum that applies under the 
     plan or coverage.''.
       (b) No Effect on Other Cost-sharing.--Section 1302(d)(2) of 
     the Patient Protection and Affordable Care Act (42 U.S.C. 
     18022(d)(2)) is amended by adding at the end the following 
     new subparagraph:
       ``(D) Special rule relating to insulin coverage.--For plan 
     years beginning on or after January 1, 2024, the exemption of 
     coverage of selected insulin products (as defined in section 
     2799A-11(b) of the Public Health Service Act) from the 
     application of any deductible pursuant to section 2799A-
     11(a)(1) of such Act, section 726(a)(1) of the Employee 
     Retirement Income Security Act of 1974, or section 9826(a)(1) 
     of the Internal Revenue Code of 1986 shall not be considered 
     when determining the actuarial value of a qualified health 
     plan under this subsection.''.
       (c) Coverage of Certain Insulin Products Under Catastrophic 
     Plans.--Section 1302(e) of the Patient Protection and 
     Affordable Care Act (42 U.S.C. 18022(e)) is amended by adding 
     at the end the following:
       ``(4) Coverage of certain insulin products.--
       ``(A) In general.--Notwithstanding paragraph (1)(B)(i), a 
     health plan described in paragraph (1) shall provide coverage 
     of selected insulin products, in accordance with section 
     2799A-11 of the Public Health Service Act, for a plan year 
     before an enrolled individual has incurred cost-sharing 
     expenses in an amount equal to the annual limitation in 
     effect under subsection (c)(1) for the plan year.
       ``(B) Terminology.--For purposes of subparagraph (A)--
       ``(i) the term `selected insulin products' has the meaning 
     given such term in section 2799A-11(b) of the Public Health 
     Service Act; and
       ``(ii) the requirements of section 2799A-11 of such Act 
     shall be applied by deeming each reference in such section to 
     `individual health insurance coverage' to be a reference to a 
     plan described in paragraph (1).''.
       (d) ERISA.--
       (1) In general.--Subpart B of part 7 of subtitle B of title 
     I of the Employee Retirement Income Security Act of 1974 (29 
     U.S.C. 1185 et seq.) is amended by adding at the end the 
     following:

     ``SEC. 726. REQUIREMENTS WITH RESPECT TO COST-SHARING FOR 
                   CERTAIN INSULIN PRODUCTS.

       ``(a) In General.--For plan years beginning on or after 
     January 1, 2023, a group health plan or health insurance 
     issuer offering group health insurance coverage shall provide 
     coverage of selected insulin products, and with respect to 
     such products, shall not--
       ``(1) apply any deductible; or
       ``(2) impose any cost-sharing in excess of, per 30-day 
     supply--
       ``(A) for any applicable plan year beginning before January 
     1, 2024, $35; or
       ``(B) for any plan year beginning on or after January 1, 
     2024, the lesser of--
       ``(i) $35; or
       ``(ii) the amount equal to 25 percent of the negotiated 
     price of the selected insulin product net of all price 
     concessions received by or on behalf of the plan or coverage, 
     including price concessions received by or on behalf of 
     third-party entities providing services to the plan or 
     coverage, such as pharmacy benefit management services.
       ``(b) Definitions.--In this section:
       ``(1) Selected insulin products.--The term `selected 
     insulin products' means at least one of each dosage form 
     (such as vial, pump, or inhaler dosage forms) of each 
     different type (such as rapid-acting, short-acting, 
     intermediate-acting, long-acting, ultra long-acting, and 
     premixed) of insulin (as defined below), when available, as 
     selected by the group health plan or health insurance issuer.
       ``(2) Insulin defined.--The term `insulin' means insulin 
     that is licensed under subsection (a) or (k) of section 351 
     of the Public Health Service Act (42 U.S.C. 262) and 
     continues to be marketed under such section, including any 
     insulin product that has been deemed to be licensed under 
     section 351(a) of such Act pursuant to section 7002(e)(4) of 
     the Biologics Price Competition and Innovation Act of 2009 
     (Public Law 111-148) and continues to be marketed pursuant to 
     such licensure.
       ``(c) Out-of-network Providers.--Nothing in this section 
     requires a plan or issuer that has a network of providers to 
     provide benefits for selected insulin products described in 
     this section that are delivered by an out-of-network 
     provider, or precludes a plan or issuer that has a network of 
     providers from imposing higher cost-sharing than the levels 
     specified in subsection (a) for selected insulin products 
     described in this section that are delivered by an out-of-
     network provider.
       ``(d) Rule of Construction.--Subsection (a) shall not be 
     construed to require coverage of, or prevent a group health 
     plan or health insurance coverage from imposing cost-sharing 
     other than the levels specified in subsection (a) on, insulin 
     products that are not selected insulin products, to the 
     extent that such coverage is not otherwise required and such 
     cost-sharing is otherwise permitted under Federal and 
     applicable State law.
       ``(e) Application of Cost-sharing Towards Deductibles and 
     Out-of-pocket Maximums.--Any cost-sharing payments made 
     pursuant to subsection (a)(2) shall be counted toward any 
     deductible or out-of-pocket maximum that applies under the 
     plan or coverage.''.
       (2) Clerical amendment.--The table of contents in section 1 
     of the Employee Retirement Income Security Act of 1974 (29 
     U.S.C. 1001 et seq.) is amended by inserting after the item 
     relating to section 725 the following:

``Sec. 726. Requirements with respect to cost-sharing for certain 
              insulin products.''.
       (e) Internal Revenue Code.--
       (1) In general.--Subchapter B of chapter 100 of the 
     Internal Revenue Code of 1986 is amended by adding at the end 
     the following new section:

     ``SEC. 9826. REQUIREMENTS WITH RESPECT TO COST-SHARING FOR 
                   CERTAIN INSULIN PRODUCTS.

       ``(a) In General.--For plan years beginning on or after 
     January 1, 2023, a group health plan shall provide coverage 
     of selected insulin products, and with respect to such 
     products, shall not--
       ``(1) apply any deductible; or
       ``(2) impose any cost-sharing in excess of, per 30-day 
     supply--
       ``(A) for any applicable plan year beginning before January 
     1, 2024, $35; or
       ``(B) for any plan year beginning on or after January 1, 
     2024, the lesser of--
       ``(i) $35; or
       ``(ii) the amount equal to 25 percent of the negotiated 
     price of the selected insulin product net of all price 
     concessions received by or on behalf of the plan, including 
     price concessions received by or on behalf of third-party 
     entities providing services to the plan, such as pharmacy 
     benefit management services.
       ``(b) Definitions.--In this section:
       ``(1) Selected insulin products.--The term `selected 
     insulin products' means at least one of each dosage form 
     (such as vial, pump, or inhaler dosage forms) of each 
     different type (such as rapid-acting, short-acting, 
     intermediate-acting, long-acting, ultra long-acting, and 
     premixed) of insulin (as defined below), when available, as 
     selected by the group health plan.
       ``(2) Insulin defined.--The term `insulin' means insulin 
     that is licensed under subsection (a) or (k) of section 351 
     of the Public Health Service Act (42 U.S.C. 262) and 
     continues to be marketed under such section, including any 
     insulin product that has been deemed to be licensed under 
     section 351(a) of such Act pursuant to section 7002(e)(4) of 
     the Biologics Price Competition and Innovation Act of 2009 
     (Public Law 111-148) and continues to be marketed pursuant to 
     such licensure.
       ``(c) Out-of-network Providers.--Nothing in this section 
     requires a plan that has a network of providers to provide 
     benefits for selected insulin products described in this 
     section that are delivered by an out-of-network provider, or 
     precludes a plan that has a network of providers from 
     imposing higher cost-sharing than the levels specified in 
     subsection (a) for selected insulin products described in 
     this section that are delivered by an out-of-network 
     provider.
       ``(d) Rule of Construction.--Subsection (a) shall not be 
     construed to require coverage of, or prevent a group health 
     plan from imposing cost-sharing other than the levels 
     specified in subsection (a) on, insulin products that are not 
     selected insulin products, to the extent that such coverage 
     is not otherwise required and such cost-sharing is otherwise 
     permitted under Federal and applicable State law.
       ``(e) Application of Cost-sharing Towards Deductibles and 
     Out-of-pocket Maximums.--Any cost-sharing payments made 
     pursuant to subsection (a)(2) shall be counted toward any 
     deductible or out-of-pocket maximum that applies under the 
     plan.''.
       (2) Clerical amendment.--The table of sections for 
     subchapter B of chapter 100 of such Code is amended by adding 
     at the end the following new item:

``Sec. 9826. Requirements with respect to cost-sharing for certain 
              insulin products.''.
       (f) Implementation.--The Secretary of Health and Human 
     Services, the Secretary of Labor, and the Secretary of the 
     Treasury shall implement the provisions of this section, 
     including the amendments made by this section, through 
     subregulatory guidance or program instruction.

[[Page S4145]]

  The ACTING PRESIDENT pro tempore. The junior Senator from Vermont.


                Amendment No. 5210 to Amendment No. 5194

  Mr. SANDERS. Madam President, I call up my amendment No. 5210.
  The ACTING PRESIDENT pro tempore. The clerk will report.
  The legislative clerk read as follows:

       The Senator from Vermont [Mr. Sanders], for himself and Mr. 
     Merkley, proposes an amendment numbered 5210 to amendment No. 
     5194.

  Mr. SANDERS. Madam President, I ask unanimous consent to dispense 
with the reading of the amendment.
  The ACTING PRESIDENT pro tempore. Without objection, it is so 
ordered.
  The amendment is as follows:

 (Purpose: To establish a cap on costs for covered prescription drugs 
                     under Medicare parts B and D)

        Strike part 1 of subtitle B of title I and insert the 
     following:

  PART 1--CAP ON COSTS FOR COVERED PRESCRIPTION DRUGS UNDER MEDICARE 
                             PARTS B AND D

     SEC. 11001. CAP ON COSTS FOR COVERED PRESCRIPTION DRUGS UNDER 
                   MEDICARE PARTS B AND D.

       (a) In General.--Title XVIII of the Social Security Act (42 
     U.S.C. 1395 et seq.) is amended by adding at the end the 
     following new section:

     ``SEC. 1899C. CAP ON COSTS FOR COVERED PRESCRIPTION DRUGS 
                   UNDER MEDICARE PARTS B AND D.

       ``(a) In General.--In no case may the amount of payment for 
     a drug or biological under part B or a covered part D drug 
     (as defined in section 1860D-2(e)) under a prescription drug 
     plan under part D exceed the lower of the following:
       ``(1) The amount paid by the Secretary of Veterans Affairs 
     to procure the drug under the laws administered by the 
     Secretary.
       ``(2) The amount paid to procure the drug through the 
     Federal Supply Schedule of the General Services 
     Administration.
       ``(b) Manufacturer Requirement.--In order for coverage to 
     be available under part B for a drug or biological of a 
     manufacturer or under part D for a covered part D drug of a 
     manufacturer, the manufacturer must agree to provide such 
     drug or biological to providers of services and suppliers 
     under part B or such covered part D drug to prescription drug 
     plans under part D for an amount that does not exceed the 
     maximum payment amount applicable under subsection (a).
       ``(c) Access to Pricing Information.--The Secretary of 
     Veterans Affairs and the Administrator of General Services 
     shall provide to the Secretary of Health and Human Services 
     the information described in paragraphs (1) and (2), 
     respectively, of subsection (a) and such other information as 
     the Secretary of Health and Human Services may request in 
     order to carry out this section.
       ``(d) Effective Date.--This section shall apply with 
     respect to drugs furnished or dispensed on or after January 
     1, 2023.''.
       (b) Conforming Amendments.--
       (1) Application under part b.--Section 1847A of the Social 
     Security Act (42 U.S.C. 1395w-3a), as amended by section 
     11101, is amended--
       (A) in subsection (b)(1), by striking ``and (e)'' and 
     inserting ``(e), and (i)'';
       (B) by redesignating subsection (j) as subsection (k); and
       (C) by inserting after subsection (i) the following 
     subsection:
       ``(j) Application of Cap on Costs for Part B Drugs.--
     Notwithstanding the preceding provisions of this subsection, 
     the amount of payment under this section for a drug or 
     biological furnished on or after January 1, 2023, shall not 
     exceed the maximum payment amount applicable to the drug or 
     biological under section 1899C(a).''.
       (2) Application as negotiated price under part d.--Section 
     1860D-2(d)(1)(B) of the Social Security Act (42 U.S.C. 1395w-
     102(d)(1)(B)) is amended by adding at the end the following 
     new sentence: ``Notwithstanding any other provision of this 
     part, the negotiated price used for payment for a covered 
     part D drug dispensed on or after January 1, 2023, shall not 
     exceed the maximum payment amount applicable to the covered 
     part D drug under section 1899C.''.


                      Unanimous Consent Agreement

  Mr. SANDERS. Madam President, I ask unanimous consent that, for the 
duration of the Senate's consideration of H.R. 5376, the Inflation 
Reduction Act of 2022, the majority and Republican managers of the 
bill, while seated or standing at the managers' desks, be permitted to 
deliver floor remarks, retrieve, review, and edit documents and send 
email and other data communication from text displayed on wireless 
personal digital assistant devices and tablet devices. I further ask 
unanimous consent that the use of calculators be permitted on the floor 
during consideration of the bill; further, that the staff be permitted 
to make technical and conforming changes to the bill, if necessary, 
consistent with the amendments adopted during Senate consideration.
  The ACTING PRESIDENT pro tempore. Without objection, it is so 
ordered.


                               H.R. 5376

  Mr. SANDERS. Madam President, I want to take a moment to say a few 
words about the so-called Inflation Reduction Act that we are debating 
this evening. I say ``so-called,'' by the way, because, according to 
the CBO and other economic organizations that have studied this bill, 
it will, in fact, have a minimal impact on inflation.
  Let me put this reconciliation bill into the context of where we are 
as a nation politically and economically. The answer to that, as to 
where we are, is that we are not in a good place.
  According to the most recent Gallup poll, the approval rate for 
Congress is at 16 percent, with 82 percent of the American people 
disapproving of the work we are doing here. There are 16 percent who 
think we are doing a good job and 82 percent who think not.
  Further, according to a recent University of Chicago poll, a strong 
majority of Americans--and this is extremely important, and I hope 
Members of Congress hear this--the majority of Americans believes that 
the government is ``corrupt and rigged against me.'' People believe the 
government is corrupt and rigged against them.
  Further, according to a USA TODAY poll that came out last week, a 
very strong majority no longer believes that the Democratic or 
Republican Parties are responding to their needs and that we need to 
move to a multiparty system.
  I think what is most frightening in terms of where the American 
people are politically today is that there is actually a growing number 
of Americans who believes that they may have to take up arms--take up 
arms--against their own government in order to accomplish what they 
think needs to be done. All of this speaks to a very, very dangerous 
moment for American democracy, and in a number of ways, it resembles 
the conditions that existed in Europe in the 1920s and early 1930s, 
which led to fascism and totalitarianism.
  In other words, at a time when so many of our people are hurting, 
many of them no longer believe that, in our democratic system, 
government is capable of responding to their needs, and they are losing 
faith in our democracy.
  The people of this country believe--and in my view correctly--that we 
have a corrupt political system, dominated by the wealthy and the 
powerful, and that we have a rigged economy in which large corporations 
are seeing huge profits--in some cases, the heaviest profits ever--
while the middle class and working families continue to see a decline 
in their standard of living.
  Let me just give you one small example of what is going on, and that 
is within the last few weeks.
  While Americans continue to pay outrageously high gas prices at the 
pump--prices are going down, but they are still a lot higher than they 
were a year ago or 2 years ago--ExxonMobil, Shell, and BP reported a 
recordbreaking $46 billion in profits during the second quarter. People 
pay more at the gas pump, and the major oil companies are seeing huge 
profits.
  In terms of the extremely high price of prescription drugs, three 
large pharmaceutical companies--Pfizer, Johnson & Johnson, and AbbVie--
increased their profits last year by 90 percent to $54 billion, a 90-
percent increase in their profits, while so many of our people cannot 
afford the high cost of prescription drugs.
  That is what a rigged economy is all about--huge corporate profits 
while working people cannot afford the basic necessities of life.
  Let us be clear about where we are as a nation, and that is that the 
American people are tired of press releases; they are tired of 30-
second ads; they are tired of speeches. They are hurting, and they are 
begging their elected officials to respond to their needs.
  If you want to know why there is so much anger and so much 
frustration and so much disillusionment within our society today, it is 
important to understand that real weekly wages for the average American 
worker are lower today than they were 49 years ago, and, clearly, the 
inflation of today is pushing the average person even further behind.
  Not so many years ago, when I was a kid, it was possible for one 
worker in a

[[Page S4146]]

family-like my father, who never made enough money--to earn enough 
money to take care of his kids and the family. Today, that is a rarity. 
Today, it is necessary in almost all cases for two workers in a family 
to have to go out to work.
  Today, despite the huge increases in our economy, despite the 
tremendous explosion of technology, everything being equal, our younger 
generation will have a lower standard of living than their parents--
having a harder time finding a home and having a harder time affording 
being able to have a family. Imagine that. Our younger generation 
having a lower standard of living than their parents.

  Half of our people today live paycheck to paycheck, and many millions 
are working for starvation wages: 9, 10, 11 bucks an hour. Further, 
many workers around the country who want to join a union and engage in 
collective bargaining at companies like Starbucks, Amazon, and other 
places are facing fierce and illegal anti-union resistance. I have to 
say that this legislation does not address any of their needs.
  This legislation does not address the reality that we have more 
income and wealth inequality today than at any time in the last 100 
years, where three people own more wealth than the bottom half of 
America; doesn't address the fact that 95 percent of all new income is 
going to the top 1 percent; doesn't address the reality that CEOs of 
major corporations are making 350 times what their workers are making.
  I think everybody knows that we have a completely dysfunctional 
healthcare system. We now spend over $12,000 a year per person--more 
than double what other countries spend.
  Today, over 70 million Americans are uninsured or underinsured, and 
there are studies out there that say that some 60,000 people a year die 
because they are uninsured or underinsured, and they don't get to a 
doctor on time. Meanwhile, every year, the insurance companies make 
tens of billions of dollars in profit.
  So we have a system in which the cost is outrageously high, people 
are dying because they don't get to a doctor on time. This bill does 
nothing to address the systemic dysfunctionality of the American 
healthcare system. It does nothing.
  In terms of our kids--the future of our Nation--shamefully, we have 
the highest rate of childhood poverty of almost any major nation on 
Earth. This bill, as currently written, does nothing to address that.
  Our childcare system is dysfunctional. If a working family is lucky 
enough to find a slot for their young one, on average, they will pay 
about $15,000 a year for childcare, an impossibly high sum of money. 
Imagine that. Fifteen thousand dollars a year for childcare if you are 
making 40 or 50,000 bucks. That is an absurd sum of money. Yet this 
bill turns its back on the working parents of the country and our 
children, does not even begin to address the childcare or pre-K crisis 
that we face.
  A nation will be as great and competitive as its educational system 
is. Yet, today, hundreds of thousands of bright young kids all across 
this country are unable to afford a higher education. Imagine that. In 
the richest country in the history of the world, when we need the best 
educated workforce possible, you have got hundreds of thousands of 
young people who cannot afford a higher education. And we have 45 
million Americans who are struggling with student debt, sometimes 
outrageous levels of student debt. This bill, as currently written, 
does nothing to address it.
  Today, millions of elderly Americans and half of our senior citizens 
are trying to survive on $25,000 a year or less. Millions of senior 
citizens are unable to afford to go to a dentist. Imagine that. In the 
richest country on Earth, elderly people can't afford to go to a 
dentist. Their teeth are rotting in their mouth; they can't afford 
hearing aids in order to hear what their kids, grandchildren have to 
say; and they can't afford eyeglasses. This bill ignores that issue. It 
does nothing to expand Medicare to cover those very basic healthcare 
needs. The result, millions of seniors will continue to have rotten 
teeth and lack the dentures, hearing aids, or eyeglasses they deserve.
  I hear this all the time in Vermont, and I expect my colleagues hear 
it as well, so many--so many--of our elderly or disabled people would 
much prefer to stay in their homes rather than be forced into nursing 
homes. They need someone to come to their home to help them with their 
basic needs. I don't think anyone denies that we have a major crisis in 
home healthcare, and the people who are doing home healthcare now--and 
God bless them all--are usually overworked and underpaid. This bill, as 
currently written, does nothing to address that crisis.
  Again, no debate; everybody agrees that we have a major housing 
crisis in America. Some 600,000 people are homeless, sleeping out on 
the streets in every State in this country. In addition to the homeless 
issue, nearly 18 million households are paying 50 percent or more of 
their limited incomes for housing. Imagine that. Imagine what it means 
when you don't have any money to do anything else when you are paying 
50 percent of your limited income for housing. Yet this bill does 
nothing to address the major housing crisis that we face or build one 
unit of safe and affordable housing--just another issue that we push 
aside.
  And I would say--and every working person understands this--that 
while ordinary people are struggling with childcare, with healthcare, 
with housing, with the basic necessities of life, the people on top 
today are doing phenomenally well. During the pandemic alone, the 
billionaire class saw an almost $2 trillion increase in their wealth.

  So that, in a snapshot, is where we are as a nation today: Working 
people are hurting; in many ways, their standard of living is in 
decline; and people on top are doing phenomenally well.
  That takes us to where we are this evening. The importance of the 
bill that we are considering this evening is that it is not a normal--
not a regular piece of legislation. It is a reconciliation bill. I know 
that to anybody outside of the beltway, that doesn't mean much. But 
what it does mean is that, unlike regular legislation here in the 
Senate, this bill does not require 60 votes to get passed. All we need 
to get this bill passed are 50 votes, plus the Vice President, if it is 
a tie.
  Now, I say this in all honesty, that it is extremely sad to me--and I 
think the American people--that up to this point, we have not had one 
Republican come forward and say: You know what? I want to work on the 
housing crisis, on the healthcare crisis, on the education crisis, on 
the home healthcare crisis. Sadly, we have not had one Republican come 
forward who is prepared to stand up for working families, for the 
children, for the elderly, or for the environment. That is a sad state 
of affairs.
  But here is the truth: If all 50 Members of the Democratic caucus 
were to stand together today, we could pass some enormously important 
amendments, which would have a profound impact on improving the lives 
of working people in our country and maybe, just maybe, could begin the 
process of restoring faith in our democracy.
  Poll after poll makes it clear that not only are the American people 
hurting, they want Congress to take bold action to improve their lives. 
And under the budget reconciliation process, we have the opportunity to 
do that. If we don't do it now, when all we need are 50 votes, it is 
quite questionable as to when, in fact, we will ever do that.
  In other words, what I am asking today is for all 50 Members of the 
Democratic caucus to come together and begin the process of addressing 
some--not all, some--of the major crises facing working families.
  It is absolutely imperative that we show the American people that we 
are capable of representing the needs of ordinary people, not just 
billionaire campaign contributors, not just lobbyists but ordinary 
people who are hurting today. And if we cannot do that, not only will 
people continue to hurt and suffer, but, to my mind, it is questionable 
for how long we remain a democracy.
  Let me say a few words about what is in this legislation, a bill 
which has some good features but also, in my view, has some very bad 
features.
  This bill deals with three major areas: prescription drugs, climate, 
and taxation. Let me deal with at least two of them.

[[Page S4147]]

  Prescription drugs. Now, I know that in Vermont, and I suspect in 
Wisconsin and all over this country, people are outraged at the fact 
that they are paying so much for prescription drugs. They are outraged 
that in some cases, we pay 10 times more than Canada and other 
countries for the same exact product.
  Now, the good news is that this bill, this reconciliation bill, will 
do what should have been done many years ago--something that many of us 
called for many years ago--in that it will allow Medicare to begin 
negotiating prescription drug prices with the pharmaceutical industry.
  Now, that is not a radical idea. That is an idea that exists in 
probably every other major country on Earth, and that is why their 
prices are so much lower. They don't let the drug companies charge any 
price that they want. That is the good news.
  But here is the bad news, and we must be honest about it: At a time 
when so many of our people cannot afford the prescription drugs they 
need, one out of four Americans can't even fill the prescriptions their 
doctors write, this Medicare-negotiating provision will not go into 
effect for 4 years, at which time only 10 drugs will be negotiated, 
with more to come in later years. So if anybody thinks that as a result 
of this bill we are suddenly going to see lower prices for Medicare, 
you are mistaken. It ain't gonna happen next year, the year after, the 
year after, and the year after that. By the way, given the incredible 
power of the pharmaceutical industry, I would suspect even money that 
they will figure out a way to get around this provision if it takes 4 
years to implement.

  Furthermore, this provision will have no impact on the prices for 
those Americans who are not on Medicare. So if you are under 65, this 
bill will not impact you at all, and the drug companies will be able to 
continue to go on their merry way and raise prices to any level that 
they want.
  Under this bill, at a time when the drug companies are enjoying huge 
profits, the pharmaceutical industry will still be allowed to charge 
the American people by far the highest prices in the world for 
prescription drugs.
  So that is the reality of this bill. What do we do? Well, if we are 
serious about responding to what the American people want--and the 
polling that I have seen, it is like 70 or 80 percent of the people 
understand that prescription drugs are much too high. They want us to 
act. This bill, unfortunately, does not do that. If we are serious 
about reducing the price of prescription drugs, we know exactly how we 
can do it.
  For over 30 years, the Veterans' Administration has been negotiating 
with the pharmaceutical industry to lower the cost of prescription 
drugs. Moreover, for decades, virtually every other country on Earth 
has been doing the same thing. The result of where we are today is that 
Medicare pays twice as much for the exact same prescription drugs as 
the VA and people all over this country. In some cases, as I mentioned 
earlier, we may pay up to 10 times as much for a particular drug.
  In other words, when it comes to reducing the price of prescription 
drugs under Medicare, we do not have to reinvent the wheel; we could 
simply require Medicare to pay no more for prescription drugs than the 
VA. That is not a radical idea; that is a simple idea. You have one 
government Agency doing what they are doing for 30 years. All we have 
to do is have Medicare do the same. If we did that, we could literally 
cut the price of prescription drugs under Medicare in half in a matter 
of months, not years.
  That is why I am introducing an amendment today to do just that. 
Under this amendment, we could save Medicare $900 billion over the next 
decade. This is nine times--nine times--more savings than the rather 
weak negotiation provisions currently in the bill. We could save $900 
billion by negotiating rather than $100 billion.
  The reason that we pay the highest prices in the world for 
prescription drugs is not hard to understand. During the past 20 years, 
the pharmaceutical industry has spent over $5 billion on lobbying and 
over half a billion dollars in campaign contributions. Further, the 
pharmaceutical industry has over the years mounted an unprecedented 
lobbying effort in Washington and in States all across this country.
  Now, what is unbelievable--if you want to know what a corrupt 
political system is about, if you want to know what money in politics 
is about, if you want to know what corporate greed is about, if you 
want to know why we pay the highest prices in the world for 
prescription drugs, please understand that right now, at this moment, 
the pharmaceutical industry has more than 1,700 well-paid lobbyists on 
Capitol Hill to protect their interests, including former congressional 
leaders of both major political parties. They buy Democratic leaders; 
they buy Republican leaders; they buy former Members of Congress--1,700 
well-paid lobbyists--to make sure they continue to rip off the American 
people and charge us the highest prices in the world for prescription 
drugs. That is over 3 lobbyists for every 1 Member of Congress; 535 
Members of Congress, 1,700 lobbyists.
  (Mr. WHITEHOUSE assumed the Chair.)
  Mr. President, just yesterday--now, this is really interesting, and I 
think it brings it all out--the CEO of PhRMA, whose name is Stephen 
Ubl, I think, basically said--and I appreciate his honesty and 
straightforwardness--he said anybody who votes even for this incredibly 
tepid bill--he said: We are going to go after you. He stated--and I 
love this kind of modesty--he said:

       Few associations have all the tools of modern political 
     advocacy at their disposal in the way that PhRMA does.

  In other words, if you dare to vote in any way to lower the cost of 
prescription drugs, we are going to spend all of the money we have--and 
we have endless, unlimited amounts of money--against you. That is what 
a corrupt political system is about. That is what corporate greed is 
about, basically the CEO of PhRMA saying: You vote for this bill, you 
can expect millions and millions of dollars of 30-second ads against 
you. That is where we are in the state of our democracy today.
  Prescription drugs is a huge issue, but it is not the only issue that 
is dealt with inadequately in this legislation. It is my view, I think 
it is the view of the majority of the American people, and it is 
certainly the view of the scientific community that climate change is 
an existential threat to the planet. Now, that sounds like a big word, 
``existential,'' but what it means is that if we don't get our act 
together, there may not be a planet that is healthy and habitable for 
our children and grandchildren. It is very fundamental. Do we protect 
future generations?

  This legislation provides $370 billion over the next decade to combat 
climate change and to invest in so-called energy security programs. 
Now, the good news--and it is good news--is that this legislation as 
currently written would provide more funding for energy efficiency and 
sustainable energy than has ever been invested before. That is the good 
news. But the bad news is that this bill as currently written includes 
a huge giveaway to the fossil fuel industry, both in the reconciliation 
bill that we are considering and in a side deal that was just made 
public a few days ago.
  Under this legislation, the fossil fuel industry will receive 
billions of dollars in new tax breaks and subsidies over the next 10 
years on top of the $15 billion in tax breaks and corporate welfare 
they already receive every year.
  Interestingly enough, that may well be the reason why BP, one of the 
largest oil companies in the world, supports this bill. It may be the 
reason why Shell, another huge oil company, supports this bill. It is 
the reason, I suspect, why the CEO of ExxonMobil is pleased by many of 
the provisions included in this deal. So we ought to think a little bit 
about what it means when major oil companies that are in the process of 
destroying this planet support this legislation.
  Under this bill, up to 60 million acres of public waters must be 
offered up for sale each and every year to the oil and gas industry 
before--before--the Federal Government can approve any new offshore 
wind development. To put that in perspective, 60 million acres is the 
size of the State of Michigan. Further, under this bill, up to 2 
million acres of public lands must be offered up for sale each and 
every year to the oil and gas industry before leases can move forward 
for any renewable energy development on public lands.
  In total, this bill will offer the fossil fuel industry up to 700 
million acres of

[[Page S4148]]

public lands and waters to oil and gas drilling over the next decade--
far more than the oil and gas industry could possibly use.
  And that is not all. The fossil fuel industry will not just benefit 
from the provisions in the reconciliation bill as currently written; a 
deal has also been reached to make it easier for the fossil fuel 
industry to receive permits for their oil and gas projects. This deal 
would approve the $6.6 billion Mountain Valley Pipeline, a fracked gas 
pipeline that would span over 300 miles from West Virginia to Virginia 
and potentially on to North Carolina. This is a pipeline that would 
generate emissions equivalent to that released by 37 coal plants or by 
over 27 million cars each and every year.
  Let me quote from a July 29 letter from over 350 environmental 
organizations, including Friends of the Earth, Food & Water Watch, and 
the Climate Justice Alliance, expressing concerns about this bill, and 
I quote:

       Any approval of new fossil fuel projects or fast-tracking 
     of fossil fuel permitting is incompatible with climate 
     leadership. Oil, gas and coal production are the core drivers 
     of the climate and extinction crises. There can be no new 
     fossil fuel leases, exports, or infrastructure if we have any 
     hope of preventing ever-worsening climate crises, 
     catastrophic floods, deadly wildfires, and more, all of which 
     are ripping across the country as we speak. We are out of 
     time. Therefore, we're--

  These 350 organizations--

       calling on you--

  That is the President, leadership of Congress--

       to fulfill your promise to lead on climate, starting with 
     denying approvals for the Mountain Valley Pipeline, rejecting 
     all new federal fossil fuel leases onshore, in the Gulf of 
     Mexico, in Alaska, and everywhere else, and preventing any 
     fast-tracked permits for fossil fuel projects.

  Mr. President, I would ask unanimous consent to print the full letter 
into the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                                    July 29, 2022.
     Re Hold the line against fossil fuel expansion.

       Dear President Biden and Majority Leader Schumer: As 
     frontline communities and organizations with millions of 
     members and supporters, we thank you for your tireless 
     efforts to secure a climate deal with meaningful renewable 
     energy investments. At the same time, we respectfully urge 
     you to reject any handouts to the fossil fuel industry. Put 
     simply: you cannot address the climate emergency by 
     sacrificing communities, expanding fossil fuel production and 
     embracing fossil fuel industry scams like carbon capture, 
     fossil fuel hydrogen, and carbon offsets.
       Any approval of new fossil fuel projects or fast-tracking 
     of fossil fuel permitting is incompatible with climate 
     leadership. Oil, gas and coal production are the core drivers 
     of the climate and extinction crises. There can be no new 
     fossil fuel leases, exports, or infrastructure if we have any 
     hope of preventing ever-worsening climate crises, 
     catastrophic floods, deadly wildfires, and more--all of which 
     are ripping across the country as we speak. We are out of 
     time. Therefore, we're calling on you to fulfill your promise 
     to lead on climate, starting with denying approvals for the 
     Mountain Valley Pipeline, rejecting all new federal fossil 
     fuel leases onshore, in the Gulf of Mexico, in Alaska, and 
     everywhere else, and preventing any fast-tracked permits for 
     fossil fuel projects.
       Permitting new fossil fuel projects will further entrench 
     us in a fossil fuel economy for decades to come--and 
     constitutes a violent betrayal of your pledge to combat 
     environmental racism and destruction. Today's high gasoline 
     and energy prices cannot be solved with promises of future 
     oil and gas production. Climate chaos harms every person in 
     America, but our communities bear the brunt of the deadly 
     impacts of the toxic fossil fuel industry: primarily 
     Indigenous, Black, Latinx, AAPI and other communities of 
     color, as well as low-wealth communities. Young people, 
     women, and so many others that turned out to elect you and 
     gave you your mandate to govern need climate hope, not 
     climate setbacks. New fossil fuel projects will also lock 
     workers into a dying industry and delay the growth in sectors 
     that will support jobs of the future.
       Critically, none of these negotiations affect the need for 
     President Biden to immediately declare a climate emergency 
     and use his existing authority to reject fossil fuel 
     projects. Declaring a climate emergency will unlock President 
     Biden's full set of powers to not only release Defense 
     funding to build renewable and just energy systems, but also 
     confront fossil fuels head-on by stopping crude oil exports. 
     With non-emergency powers, President Biden can reject new oil 
     and gas leases, and deny all fossil fuel infrastructure that 
     harms countless communities across the country. Unleashing 
     executive powers should be pursued in concert with--and not 
     instead of--passing critical climate legislation, and vice 
     versa.
       We respectfully implore you to hold the line against any 
     new fossil fuel projects, reject handouts to oil and gas 
     companies, and use every tool available to advance a truly 
     just, renewable energy future that does not sacrifice our 
     communities.
           Sincerely,
       A Community Voice; Act for the Earth of Unity Church 
     Unitarian; Action for the Climate Emergency (ACE); Active San 
     Gabriel Valley; AFG E Local 704; Alabama Interfaith Power & 
     Light; All Our Energy; Allamakee County Protectors--Education 
     Campaign; Alliance for a Green Economy; Alliance for 
     Affordable Energy; Amazon Watch; American Friends Service 
     Committee; American Jewish World Service; Animals Are 
     Sentient Beings Inc; Anthropocene Alliance; Association of 
     Young Americans (AYA); Azul; Ban Single Use Plastics; Beacon 
     UU Congregation in Summit; Bergen County Immigration Strategy 
     Group.
       Berks Gas Truth; Between the Waters; Beyond Extreme Energy; 
     Beyond Plastics; Big Reuse; Black Millennials 4 Flint; Black 
     Warrior Riverkeeper; Bold Alliance; Breast Cancer Action; 
     Bronx Greens/Green Party of NY; Bronx Jews for Climate 
     Action; California Communities Against Toxics; Californians 
     for Western Wilderness; Carrizo Comecrudo Tribal Nation of 
     Texas; CASE; Center for Biological Diversity; Center for 
     International Environmental Law; Central Jersey Coalition 
     Against Endless War; CERBAT; Change Begins With ME 
     (Indivisible).
       Chapel Hill Organization for Clean Energy; Cheyenne River 
     Grassroots Collective; Chicago Area Peace Action (CAPA); 
     Christians For The Mountains; Church Women United in New York 
     State; Citizens Action Coalition of IN; Citizens Awareness 
     Network; Citizens' Resistance at Fermi Two (CRAFT); Clean Air 
     Coalition of Albany County; Clean Energy Action; Climate and 
     Community Project; Climate Hawks Vote; Climate Justice 
     Alliance; ClimateMama; Coal River Mountain Watch; Coalition 
     Against Death Alley; Coalition Against Pilgrim Pipeline--NJ; 
     Coalition for Outreach; Policy & Education.
       Code Red Hudson Highlands; CODEPINK; CODEPINK Golden Gate 
     Chapter; Colorado Dem. Party--Energy and Environment 
     Initiative; Common Ground Relief; Common Ground Rising; 
     Community for Sustainable Energy; Community Health; Community 
     Of Living Traditions; Inc.; Concerned Citizens of Charles 
     City County; Concerned Health Professionals of New York; 
     Concerned Health Professionals of Pennsylvania; Crockett 
     Rodeo United to Defend the Environment; CURE (Clean Up the 
     River Environment); Dayenu: A Jewish Call to Climate Action; 
     DC Environmental Network; Democracy Out Loud; Democratic 
     Socialists of America -Knoxville TN; Des Moines County 
     Farmers and Neighbors for Optimal Health.
       Direct Action Everywhere; Don't Gas the Meadowlands 
     Coalition; Earth Care Alliance, Sonoma Valley Earth Ethics, 
     Inc.; Earthworks; East Bay Community Solar Project; East End 
     Action Network; Eco-Eating; Ecoaction Committee of the Green 
     Party of the United States; EcoPoetry.org; Eight Rivers 
     Council; Elders Climate Action; Elders Climate Action--
     Arizona Chapter; Elders Climate Action FL Chapter; Elmirans & 
     Friends Against Fracking; Emerson Unitarian Universalist 
     Church; Empower Our Future; Endangered Species Coalition; 
     Environmental Concerns Committee; Kendal at Oberlin; 
     EnvironmentaLEE.
       EOF; Extinction Rebellion Austin; Extinction Rebellion 
     Delaware; Extinction Rebellion San Francisco Bay Area; 
     Extinction Rebellion Seattle; FACTS--Families Advocating for 
     Chemical and Toxics Safety; Fairbanks Climate Action 
     Coalition; Farmworker Association of Florida; Feminists in 
     Action Los Angeles; Fieldstones; First Unitarian Universalist 
     Church of Austin Social Action Committee; First Wednesdays 
     San Leandro; Florida Springs Council; Florida Student Power 
     Network; Food & Water Watch; Fossil Free Tompkins; Fox Valley 
     Citizens for Peace & Justice; FracTracker Alliance; Fridays 
     for Future U.S.
       Friends of the Earth; George Mason University Center for 
     Climate Change Communication; Georgia Conservation Voters; 
     Global Development and Environment Institute; Global Zero; 
     Good Neighbor Steering Committee of Benicia; Grassroots 
     Global Justice Alliance; Greater Highland Area Concerned 
     Citizens; Greater New Orleans Climate Reality Project; 
     Greater New Orleans Housing Alliance; Greater New Orleans 
     Interfaith Climate Coalition; Green Education and Legal Fund; 
     Green Party of Nassau County; Green Party of Onondaga County; 
     Green Sanctuary Committee of the Unitarian Universalist 
     Church of Palo Alto; Green State Solutions; GreenFaith; 
     GreenLatinos; Greenpeace USA; Greenvest.
       Hair on Fire Oregon; Healthy Gulf; Healthy Ocean Coalition; 
     Heartwood; Hells Kitchen Democrats; Honor the Earth; Humboldt 
     Unitarian Universalist Fellowship's Climate Action Campaign; 
     Ikiya Collective; Inclusive Louisiana; Indigenous 
     Environmental Network; Indigenous Lifeways; Indivisible 
     Howard County MD, Indivisible San Jose; Institute for 
     Agriculture and Trade Policy; Institute for Policy Studies 
     Climate Policy Program; Institute of the Blessed Virgin Mary; 
     Institute of the Blessed Virgin Mary--Loreto Generalate; 
     Integrated Community Solutions, Inc.; Interfaith 
     EarthKeepers; International Student Environmental Coalition.

[[Page S4149]]

       Intheshadowofthewolf; Iowa Citizens for Community 
     Improvement; Ironbound Community Corporation; John Muir 
     Project of Earth Island Institute; Just Transition Alliance; 
     Kickapoo Peace Circle; KyotoUSA; La Mesa Boricua de Florida; 
     Larimer Alliance for Health; Safety and Environment; Lisa 
     Hecht & Associates, LLC.; Livelihoods Knowledge Exchange 
     Network (LiKEN); Locust Point Community Garden; Long Island 
     Activists; Long Island Network for Change; Los Padres 
     ForestWatch; Louisiana League of Conscious Voters; Louisiana 
     Progress; Marlborough Democratic Committee; Maryland 
     Ornithological Society; Mazaska Talks.
       Media Alliance; Memphis Community Against Pollution (MCAP); 
     Mental Health & Inclusion Ministries; Michigan Environmental 
     Justice Coalition; Mid-Missouri Peaceworks; Mid-Ohio Valley 
     Climate Action; Milwaukee Riverkeeper; Mississippi Rising 
     Coalition; MN Unitarian Universalist Social Justice Alliance; 
     MN350; Montana Environmental Information Center; Mothers Out 
     Front; Mountain Valley Watch; Movement Rights; Nassau County 
     Democratic Socialists of America; Nassau Hiking & Outdoor 
     Club; Native Movement; Nature Coast Conservation; Inc.
       NC WARN; NCEA; NDN Collective; NELA Climate Collective; New 
     Energy Economy; New Paltz Climate Action Coalition; New World 
     Believers; New York Communities for Change; Nicaragua Center 
     for Community Action; North American Climate, Conservation 
     and Environment; North Country Earth Action; North Country 
     Light Brigade; Northeast Oregon Ecosystems; Novasutras; 
     Nuclear Energy Information Service (NEIS); Nuclear 
     Information and Resource Service; Nurture The Children; 
     NYCD16 Indivisible.
       NYPAN Greene/NYPAN Enviro; Occidental Arts and Ecology 
     Center; Occupy Biden; Ohio Poor People's Campaign; Oil Change 
     International; Organized Uplifting Strategies & Resources; 
     Our Climate; Our Revolution; Our Revolution New Jersey; 
     Pantsuit Nation Long Island; Paradise Las Vegas Indivisible; 
     Pasifika Uprising; Pass the federal green new deal; Pax 
     Christi USA, New Orleans/Vets For Peace; Peace Action 
     Wisconsin; Peace, Justice, Sustainability NOW; Pelican Media; 
     Pennsylvania Council of Churches; People for a Healthy 
     Environment.
       People Over Pipelines; Physicians for Social 
     Responsibility; Physicians for Social Responsibility 
     Pennsylvania; Plastic Pollution Coalition; Pollution Free 
     Society; Port Arthur Community Action Network; Preserve Bent 
     Mountain; Preserve Giles County; Preserve Monroe (WV); 
     Preserve Montgomery County VA; Progressive Democrats of 
     Benicia (CA); Property Rights and Pipeline Center; Protect 
     All Children's Environment; Protect Our Commonwealth; Protect 
     Our Water Heritage Rights (POWHR); Protecting Our Waters; 
     Pueblo Action Alliance; Putnam Progressives; Residents Allied 
     for the Future of Tioga (RAFT); Resist the Pipeline.
       RESTORE: The North Woods; ReThink Energy Florida, Inc.; 
     Revolving Door Project; Rise St. James; Rivers & Mountains 
     GreenFaith Circle; Rockaway Women for Progress; San Francisco 
     Bay Physicians for Social Responsibility; Santa Barbara Urban 
     Creeks Council; Santa Clara Sunrise; Santa Fe Green Chamber 
     of Commerce; SAVE THE FROGS!; Save the Pine bush; SaveRGV; 
     Scientist Rebellion; Scientist Rebellion, Turtle Island; 
     Seneca Lake Guardian; Sheffield Saves.
       Shelby County Lead Prevention & Sustainability Commission; 
     Sisters of St. Dominic of Blauvelt, New York; Sisters of St. 
     Joseph of Rochester Justice & Peace Office; Social Justice 
     Ministry of Live Oak Unitarian Universalist Congregation; 
     Society of Fearless Grandmothers; Society of Native Nations; 
     Solar Wind Works; South Asian Fund For Education Scholarship 
     and Training Inc; South Shore Audubon Society; SouthEnd 
     Charlton-Pollard GHCA; Southwest Organizing Project; Sowing 
     Justice; Stop the Algonquin Pipeline Expansion; Suffolk 
     Progressives; Sullivan Alliance for Sustainable Development.
       Summers County Residents Against the Pipeline; Sunrise 
     Movement; Sunrise Movement Houston; Sunrise New Orleans; 
     Sunrise NYC; Sunrise San Diego; Susanne Moser Research & 
     Consulting; Sustainable Arizona; Sustainable Mill Valley; 
     Syracuse Cultural Workers; Syracuse Peace Council; Tapestry 
     UU Church of Houston; Taproot Earth; Terra Advocati; Texas 
     Campaign for the Environment; Texas Climate Emergency; Texas 
     Grassroots Network; Texas Permian For Future Generations; The 
     CLEO Institute.
       The Climate Mobilization; The Consoria; The Last Plastic 
     Straw; The People's Justice Council; The Shalom Center; The 
     Shame Free Zone; Third Act Virginia; Thomas Berry Forum for 
     Ecological Dialogue at Iona University; Thrive at Life: 
     Working Solutions; TIAA-DIVEST!; Together We Will Long 
     Island; tUrn Climate Crisis Awareness and Action; Turtle 
     Island Restoration Network; Ulster Activists; Unitarian 
     Universalist Action of New Hampshire; Unitarian Universalist 
     Association; Unitarian Universalist Church of Berkeley; 
     Unitarian Universalist Church of the Brazos Valley; Unitarian 
     Universalist Service Committee; Unitarian Universalists for a 
     Just Economic Community.
       Unitarian Universalists for Social Justice; Unite North 
     Metro Denver; United Native Americans; United Women in Faith; 
     Uranium Watch; Urban Ocean Lab; UU Fellowship of Corvallis 
     Climate Action Team; UUFHCT; ValuesAdvisor; Veterans for 
     Climate Justice; vfp#35; Virginia Pipeline Resisters; Vote 
     Climate; Wall of Women; Warehouse Workers for Justice; Water 
     is Life Walks & Nurture The Children; Waterspirit; Waterway 
     Advocates.
       West Dryden Residents Against the Pipeline; WildEarth 
     Guardians; WILPF; Wisconsin Health Professionals for Climate 
     Action; Women's Earth and Climate Action Network; Women's 
     International League for Peace and Freedom-Triangle Branch; 
     WV Mountain PaRTY; Youth Vs Apocalypse; Zero Hour; IL Green 
     New Deal; 1000 Grandmothers for Future Generations; 198 
     methods; 350 Bay Area; 350 Bay Area Action; 350 Colorado; 350 
     Conejo/San Fernando Valley; 350 Eugene; 350 Mass; 350 New 
     Hampshire; 350 New Orleans; 350 Santa Barbara; 350 Seattle; 
     350 Silicon Valley; 350 Tacoma; 350 Triangle; 350 Wisconsin; 
     350.org; 350NYC; 7Directions of Service

  Mr. SANDERS. Mr. President, here is what the Center for Biological 
Diversity had to say on this bill:

       This is a climate suicide pact. It's self-defeating to 
     handcuff renewable energy development to massive new oil and 
     gas extraction. The new leasing required in this bill will 
     fan the flames of the climate disasters torching our country, 
     and it's a slap in the face to the communities fighting to 
     protect themselves from filthy fossil fuels.

  Now, in my view, we have to do everything we can to take on the 
greed, the irresponsibility, the destructiveness of the fossil fuel 
industry, not give billions of dollars in corporate welfare to an 
industry that has been destroying our planet. That is why I will be 
introducing an amendment today to strike all of the benefits to the 
fossil fuel industry that are in this bill, and I will be asking for a 
rollcall vote on it.
  Let me say a word about some of the other amendments that I will be 
introducing. I will be introducing an amendment that is wildly 
popular--the concept is wildly popular--and that is to expand Medicare 
to include dental, vision, and hearing benefits. This amendment is 
fully paid for by demanding that the wealthiest people start paying 
their fair share of taxes.
  Further, I will be introducing an amendment to provide $30 billion to 
establish the Civilian Conservation Corps, which would create 400,000 
jobs for young people to combat climate change. The entire younger 
generation wants to roll up their sleeves and get involved in the 
effort to transform our energy system away from fossil fuel, and this 
amendment and the establishment of a Civilian Conservation Corps would 
allow them to do that.
  Further, I will be introducing an amendment to expand the $300-a-
month child tax credit for the next 5 years by restoring the top 
corporate tax rate from 21 to 28 percent. As you know, we made 
significant progress in lowering childhood poverty in America--we 
reduced it by 40 percent--with the establishment of a child tax credit, 
but unfortunately that was not continued in this year, and I think it 
needs to do so.
  So, bottom line, this is where we are at.
  The American people are hurting. Tens of millions of workers are 
falling further and further behind. The elderly are hurting. The kids 
are hurting. And people are looking to their elected representatives in 
Washington to finally address the crises they are facing.
  In a reconciliation bill, where we only need 50 votes and the Vice 
President, we have the capability, if we pass these amendments, of 
taking a giant step forward not only in addressing the needs of our 
kids, our elderly, and working families but in maybe--just maybe--
beginning to restore the confidence of the American people in their 
democracy, in believing that their elected officials are listening to 
them and not just lobbyists and wealthy campaign contributors.
  I look forward to offering these amendments and getting them passed.
  I yield the floor.
  The PRESIDING OFFICER. The senior Senator from South Carolina is 
recognized.
  Mr. GRAHAM. Mr. President, I yield myself 20 minutes from the bill.
  So where to start? Well, I thought long and hard about how to explain 
this to the American people, and the only thing I can tell you is 
``insanity'' is defined as doing the same thing and expecting a 
different outcome.
  So here we are with the same people coming up with a plan to help 
you. How well did that work out the last time these 50 people were 
going to save you and your family? You will eventually come to the 
conclusion, I hope, they generally don't know what they are doing.
  The best way to stop a drunk driver is to take the keys away before 
they

[[Page S4150]]

get in the car. The best way to stop this tax-and-spend and 
inflationary madness is to fire some of the 50 so they can't keep doing 
this to your family.
  In March of 2021, we had a debate. Senator Sanders--very good man. 
And everybody over there told us that if we pass the American Rescue 
Plan, your life will be dramatically better. As $1.9 trillion passed 
with Democratic votes alone in March of 2021, not one Republican voted 
for it.
  Since then, we have been able to pass an infrastructure bill in a 
bipartisan manner. We passed legislation trying to keep guns out of the 
hands of mentally unstable people and generally help with that problem. 
We have come together around Ukraine to help them beat the Russians. We 
have come together to designate Russia as a state sponsor of terrorism. 
My oligarch friend up there--the guy who hates oligarchs more than 
anybody--we have come together to try to go after the assets of the 
Putin cronies. So it is not like we can't work together. But what you 
are not going to get from our side is buy-in on really bad ideas.
  So to the American people, the same people telling you what this bill 
is going to do are the same people who told you the American Rescue 
Plan would work.
  Let's go down memory lane here for a second. Here is what the Vice 
President said about the $1.9 trillion American Rescue Plan passed in 
March of 2021 with Democratic votes alone:

       Help has arrived for the families that have struggled to 
     put food on their table, for the small businesses that have 
     struggled to keep their doors open. Help has arrived, 
     America.

  This was said in 2021. She promised you help was on the way if you 
pass the Democratic American Rescue Plan.
  Here is what Senator Schumer said:

       We have heard a lot about how the American Rescue Plan will 
     prime the American economy to come roaring back. Economists 
     are already projecting that economic growth could double as a 
     result of the American Rescue Plan.

  March 16, 2021. I don't know where their economists are today, but I 
hope they are not in the economy business because they sure as hell 
didn't know what they were talking about.
  So what has happened from those statements to now? Instead of help 
being on the way, helping you put food on the table--see if that makes 
sense to you. The American Rescue Plan has helped put food on the 
table. Help is on the way for business.
  In March of 2021, before the American Rescue Plan, inflation was at 
2.6 percent. Today, it is at 9.1. Do you think it is an accident this 
has happened? If you do, you probably shouldn't be driving. You are a 
danger to yourself or others.
  We told you--and by God, God knows the Republicans are by no means 
perfect--but we told you what was going to happen, that we had a 
struggling economy because of COVID, and this tax-and-spend, growing 
the government, throwing money at everything, is going to come back to 
bite us in the ass, and it did. Take a hundred bucks and go to the 
grocery store and see what you get for it. You have to get a mortgage 
on your house to fill up your car.
  This is no accident. And the same people who told you then they had 
it figured out for you are telling you something now that I think is 
throwing gasoline on the fire that you are living with. That is why 
every Republican will vote no. Senator Sanders is reluctantly going to 
vote yes. I am going to enthusiastically vote no. I don't mind working 
with Democrats when it matters and it helps, but this, to me, is 
insane.

  So here is where we find ourselves as a nation. We find ourselves as 
a nation in a recession. If a Republican would be President, I doubt if 
most of the media would doubt we are in a recession. It is defined as a 
period of temporary economic decline during which trade and industrial 
activity are reduced, generally identified by falling GDP in two 
successive quarters. The first quarter was 1.6 negative growth; the 
second quarter was 0.9. Over time, unfortunately, it is probably going 
to get worse because we are going to have to raise interest rates to 
control rampant inflation, and that is going to make it harder to 
borrow money and invest in the economy.
  On top of that, they are about to pass a bill without one Republican 
vote that will take every problem they created in March and make it 
dramatically worse.
  Let's go down sort of what life is like in America right now. They 
told you that help would be on the way, that the economy would double 
if we passed their bill in March of 2021. It didn't quite work out that 
way, did it? Gasoline has gone up 59.9 percent--it will eventually come 
down because the economy is coming to a halt; 34 percent increase in 
airfare, if you can get a plane to leave in the same month you schedule 
it; electricity rates, 13.7; food, 10.4; chicken, 18.6; cereal, 14.2--
this is sort of what I eat; bacon--I love bacon--10.8 percent increase.
  The bottom line is, the American Rescue Plan did not help your 
family. It is not helping your business. It has taken every problem we 
had from COVID and made it worse. And what is their solution? To do the 
same thing all over again in a different way.
  What is in this bill that makes me say that? When you ask people: 
Does the Inflation Reduction Act reduce inflation--I mean, not me; not 
any of the 50 of us; but just ask somebody who sort of like is supposed 
to know what they are talking about, and they will tell you it does 
not. The whole bill is a lie.
  The American Rescue Plan should be called the American Recession 
Plan, and this Inflation Reduction Act is a lie. It is not going to 
reduce inflation in any meaningful way. We have the highest inflation 
in 40 years. And here is what the Penn Wharton School of Business says: 
that it has a negligible impact. The Manchin-Schumer bill is going to 
make inflation worse.
  Here is what Penn Wharton, University of Pennsylvania Business 
School, said: ``Low confidence that legislation will have any impact on 
inflation.'' Bill would actually cause inflation to rise until 2024.
  These people could give a damn. Nobody is going to convince them to 
stop taxing and spending as long as they have the ability to do it.
  Penn Wharton--it was sort of the bible for Senator Manchin when he 
stopped Build Back Better, and I am glad he did. But they are telling 
him that what he and others are saying doesn't actually work.
  CBO--supposed to be the bible, according to Senator Manchin--has a 
negligible--I can't say that word--very little effect on inflation. 
They said it would not reduce inflation in 2022 and inflation would go 
up or down 0.1 percent in 2023.
  These are the people who wrote the budget bible telling all of you 
that what you are saying is not true, but you don't care. You could 
care less.
  So here is what the bill does. Here is why none of us are going to 
vote for it.
  How many of you think now is a good time to create a new gas tax? It 
is not. So let me tell you what is in this bill. This bill has a 16.4 
cents-per-barrel new gas tax on all imported oil and petroleum products 
and all domestic crude refined in America, which will create billions 
of dollars of new gas taxes at a time we need to have less gas taxes, 
in my view.
  So in the name of climate change, this bill increases gas taxes. It 
brought back from the dead a 1995 tax that was 9.7 cents per barrel on 
imported oil, increased it to 16.4 cents at a time of high gas prices, 
and included domestic crude refined in America. Pennies become dimes, 
and dimes become dollars.
  So if you are looking to increase gas taxes, your ship has come in; 
vote for this bill. If you think it is dumb as dirt to have a new gas 
tax with this economy, vote for my amendment that comes up later.
  What else does the bill do? It increases taxes. You have to be 
shocked about that. It increases taxes by billions--hundreds of 
billions--and they say it won't affect you. Well, the CBO analysis and 
Penn Wharton said that the effect of the tax increases on business will 
be passed down to people who make below $100,000 a year. Just think 
about--does that make sense to you? You increase taxes on a business. 
They pass it along to their customers. That is just sort of the way the 
economy works.
  The 15-percent minimum tax--how does that work? The tax eliminates 
expensing for equipment and other items a business may purchase to grow 
their business, which we created in 2017, in the same year you buy it. 
So what does

[[Page S4151]]

CBO say about that? CBO says this bill will deincentivize purchasing 
equipment and building factories.
  Think about what I just said. You are about to push on the American 
people another bill that will raise gas taxes and deincentivize 
investment in the private sector in the area of equipment and factory 
expansion at a time we need it the most.
  What does this bill do on the healthcare front? ObamaCare subsidies 
under this proposal will go to people making $304,100 as a couple for a 
family of four. Let me ask you, is now the time to subsidize ObamaCare 
for people making $304,000 a year? That is what is in this bill.
  Now, here is my favorite part.
  This bill has a plan to hire 87,000 new IRS agents--new ones. That is 
enough to fill up the Rose Bowl. That is bigger than the British Army. 
They are going to propose hiring 87,000 new IRS agents and they promise 
you this is only going to go after the rich. You should not believe 
that. This is an army of IRS agents who are going to go after everybody 
about everything to fill the insatiable desire of our friends on the 
other side to take money from you to spend up here.
  There will be more new IRS agents than the British Army, the German 
Army, the entire combined military of Canada, the French Air Force and 
Navy--literally an army of new IRS agents, and you should worry about 
what these people may do.
  As I tried to tell people last time, the American Rescue Plan wasn't 
going to rescue you; it was going to make your life worse. And it did. 
We have 9.1 percent inflation, the highest in 40 years.
  Senator Sanders is right. People are hurting out there. Let's work 
together to help. But you are not helping anybody. At the time you 
promised us help was on the way, inflation was at 2.6 percent. Because 
of the help you gave the economy, it is at 9.1 percent.
  Here is what we are trying to tell you over here. If this bill 
passes, the problems you face today are going to get worse. And we will 
remind you in November.
  Prescription drugs--in this bill, they identify 15 drugs they are 
going to have price controls on. They talk about the price in Canada. 
Most new drugs come from this country, not Canada. So let's make Canada 
pay more for the research and development done in our country to help 
the world. That makes some sense to me. But price fixing is a socialist 
idea that has never worked anywhere. Even Richard Nixon tried it. It 
didn't work.
  And during COVID, we should have learned one thing: The private 
sector developed drugs to keep a lot of people alive and out of the 
hospital, and I am glad they were able to do it. Operation Warp Speed 
was a tremendous success, and it was done by the American 
pharmaceutical industry.
  After this exercise is over, the idea of new drugs coming online is 
going to go down, and the socialist model that Senator Sanders embraces 
is going to hurt innovation. He is a fine man, but he is a Democratic 
socialist. This bill doesn't go far enough for him, but it goes way too 
far for you.
  As I am hoping and praying that one of you over there would agree 
with me, let's don't raise gas taxes now; let's don't raise taxes on 
business so they can invest in buying new equipment now; let's don't 
spend a bunch of money subsidizing ObamaCare for people who make over 
$300,000 now.
  But that is probably what we are going to do unless we can convince 
one person over there to reject this madness. I am telling you, ladies 
and gentlemen throughout the country, this is madness. Our Democratic 
friends, wherever too big, there is some plan to tax and spend on 
something. They are nice people, but they consistently have a view 
about what to do for the economy that is not working.
  I beg and plead with one Democrat: Listen and learn from what you did 
last time. Senator Manchin has been strong at times, but he voted for 
the American Rescue Plan. He is telling us this will reduce inflation 
when CBO says it will not. He is telling us that this will improve the 
economy when Penn Wharton says it won't. No matter what anybody says, 
they are hell-bent on doing this because they can. I hope after this 
election, they can't do this anymore.
  Here is what I think it is going to take: one Democrat admitting 
maybe the American Rescue Plan didn't work and this won't work. Maybe 
there is one among you. But if there is not, to the American people: In 
November, I hope you will remember this. Help is not coming by passing 
this bill. Help was not on the way by passing the American Rescue Plan. 
Misery came from that massive tax-and-spend bill, and we are about to 
pile misery on top of misery. We are about to increase gas taxes at a 
time you can't afford it.
  To my Republican colleagues: You should enthusiastically vote no. To 
my Democratic colleagues: Apparently, you haven't learned a damn thing 
about what you did last time.
  I yield the floor.
  Mr. McCONNELL. Mr. President, the last time the Senate was in this 
position, the last time Democrats grabbed control of our economy on a 
party-line vote, they spent $1.9 trillion and stuck Americans with the 
worst inflation in 40 years.
  Every Senate Democrat cast the deciding vote for this inflation 
nightmare. Their historic mistake has left American families spending 
thousands of dollars extra just to avoid losing ground.
  In President Biden's America, forget about getting ahead; you have to 
pay a multi-thousand-dollar inflation tax just to stand still.
  Millions of households haven't been able to keep up with Democrats' 
skyrocketing prices no matter how hard they have tried. They have had 
to watch their families' hard-earned living standards just slip away--
all because, a year and a half ago, Senate Democrats tried to take over 
our economy on a party-line vote. And today, they want to do it again.
  Washington Democrats have already robbed American families once 
through inflation. Now, they say the solution is to rob the country a 
second time. They say they need a second reckless taxing and spending 
spree to clean up the damage from their first one.
  Every homeowner in America knows that if you call a plumber to fix a 
leaky faucet and they end up flooding your entire house, you don't give 
them a blank check and a second chance. You show them the door.
  President Biden's approval on the economy is 30 percent. An outright 
majority of the country--including more than one in four Democrats--
agree that Democrats' policies have actively made the economy worse.
  Democrats have lost the country's confidence. They have lost the 
people's trust. The voters who placed their families' financial futures 
in Democrats' hands have been betrayed. And they know it.
  Sadly, there is no shortage of crises that Americans would like this 
government to address: an inflation crisis; an energy crisis; a violent 
crime crisis; a border crisis.
  But this weekend, today's Democratic Party is being unusually honest 
about their top priority. They are pulling out all the stops. They have 
twisted every arm. And for what? Not taking back our economy from 
inflation. Not taking back our streets from murders and carjackings. 
Not taking back our border from chaos and deadly drugs.
  That is what the American people want addressed. But none of that is 
on the agenda this weekend.
  President Biden may have won the fight for the Democratic Party's 
nomination, but our colleague Chairman Sanders sure did win the war for 
its soul.
  This reckless taxing and spending spree is a clear catalog of 
Washington Democrats' top priorities. It shows the American people what 
they care about. And here it is: They want hundreds of billions of 
dollars in job-killing tax hikes, 86,000 new IRS agents, new taxes on 
American oil and natural gas that will hammer consumers and reduce 
energy independence, and a money grab from Americans' medicine cabinets 
that will lead to fewer new lifesaving cures in the future.
  They want to stick a shaky economy with historic tax hikes, in order 
to set up a colossal Green New Deal slush fund. To give rich people tax 
credits for buying $80,000 electric cars and new appliances. To send 
taxpayer money directly to far-left protest groups. To buy government 
agencies fleets of brand-new electric vehicles while working families 
can't afford the used car lot.

[[Page S4152]]

  And all of it is just unbelievably expensive liberal performance art 
because experts say none of this ``retail therapy'' for rich liberals 
and bureaucrats will make a dent at all in the future trajectory of 
global temperatures--No meaningful impact on the world's climate. None.
  That is why none of our Democratic colleagues can talk about actual 
results. Have you noticed that? They only have one talking point: that 
this is the biggest climate investment ever. That is just a way of 
admitting that the only historic thing is the gigantic price tag.
  Democrats still define success by how much of your money they get to 
take from you in taxes and waste in spending. That is the exactly the 
attitude that got us in this mess. That is exactly the far-left mindset 
that has crushed American families for 18 months and counting.
  Our colleagues want to tax and spend unfathomable sums of money 
without making an inch of progress on our citizens' top priorities. 
Washington Democrats call that a big success. Do you know what the 
American people call it? The lowest Presidential approval rating after 
18 months in modern history.
  The PRESIDING OFFICER. The Senator from Pennsylvania.
  Mr. CASEY. Mr. President, I rise tonight to talk about the Inflation 
Reduction Act. I am limited on time. I will try to keep within my 5 
minutes.
  I wanted to start by just kind of providing a brief summary. This is 
legislation that will do a number of things, all of which are helpful 
to American families and the American economy.
  First of all, it will lower the cost of prescription drugs for 
seniors. It will, in fact, lower the cost of energy, the prices people 
pay for energy.
  On the prescription drug front, we talk about lowering costs and 
empowering Medicare, for the first time, to begin to negotiate for 
lower prices. It also caps the out-of-pocket costs that Medicare 
beneficiaries pay at $2,000. In Pennsylvania, the estimate is that 
there are more than 73,000 Pennsylvanians that pay more than $2,000 a 
year for prescription drugs. Every one of those 73,000-plus 
Pennsylvanians and more will benefit from capping out-of-pocket costs.
  It lowers costs for families, but it also reduces the threat of 
climate change and reduces the deficit at the same time--all of that 
while reducing emissions between now and 2030 by some 40 percent. And 
this may be the very last time--the very last time--that we have an 
opportunity to take action in a substantial way against the threat of 
climate change. The Presiding Officer has worked on this issue for 
years. He knows of what I speak better than anyone. This may be the 
last chance to take action on climate change.
  Thirdly, and not by way of a complete summary, it extends the 
Affordable Care Act subsidies--the subsidies that were provided in the 
American Rescue Plan, the enhanced subsidies and premium tax credits. 
Those subsidies will be extended to 2025.
  Again, I will personalize it to Pennsylvania. This directly affects 
at least 100,000 people. Sixty thousand people in our State will lose 
all of their insurance coverage if we don't pass this bill; another 
40,000 will have their subsidies taken away; and several hundred 
thousand will have their premiums go up. It affects 100,000 people 
directly and several hundred thousand people directly or indirectly.
  Then, of course, this bill creates millions and millions of jobs over 
the 10 years that the bill has been measured.
  After we pass the Inflation Reduction Act, which will reduce 
inflation--that is what we are told by some 126 economists. Larry 
Summers and others have said the same thing. It will fight inflation in 
the ways that have already been spoken about. But after we pass this 
bill, this strong bill for the American economy and for American 
families, we have more work to do. We have to continue our work to pass 
legislation to invest in home- and community-based services for seniors 
and people with disabilities. We have to invest in childcare and 
institute again what we did in the American Rescue Plan when we put 
dollars in the pockets of American families raising children by taking 
the Child Tax Credit and enhancing that Child Tax Credit.
  We have to invest in prekindergarten education and paid family leave. 
We have to invest and protect the Medicaid program and extend it.
  We have so much more to do.
  I will just spend my remaining minutes talking about one issue, the 
issue I started with on that list, the home- and community-based 
services issue. This is an issue that people across the country have 
come to talk to us about--about a senior or loved one that they want to 
have home care and can't get it because they are on the waiting list as 
it is approaching a million people or a person with a disability who 
wants that same kind of care in the home or in the community.
  I met a lot of people and listened to them and listened to their 
stories. Two come to mind in particular: Someone who needs that care--
his name is Brandon Kingsmore--and his caregiver Lynn Weidner.
  I visited Brandon's home with Lynn there and learned firsthand what 
they are up against every single day in that home. Some months later, 
Brandon had the chance to meet with the President in my hometown of 
Scranton. One thing that he said about Lynn as a caregiver and 
caregivers overall--he said the following. He said:

       I would not be able to have the life that I have without 
     Lynn's help.
       [Caregivers] give us a substantial life.

  That is what one Pennsylvanian said about the care he receives. Every 
family should have that opportunity to have care in the home or in the 
community, and they can't get that under current law. The only option 
for most families is care in a nursing home or other institutional 
care. If someone wants that care, that is great. A lot of those nursing 
homes do really good work.
  But here is the problem. So many Americans should have the right to 
have care in their home, and they don't have that opportunity today. We 
have to pass legislation to do that. The Better Care Better Jobs bill 
does that. Jobs for home care workers--we have to get that pay up. We 
can't be a Nation that claims to be the greatest country in the world 
and pay home care workers just $12 an hour. That is not going to 
provide the care that our families need. This bill is about jobs for 
home care workers; care, obviously, for seniors and people with 
disabilities; and support for family caregivers. More than 50 million 
Americans--more than 50 million Americans--are providing care to a 
loved one. They are saving us money by doing that--saving the Nation 
money--but they are caring for a family member out of an act of love. 
We have to help them a lot more than we do.
  The last two more points I will make are: We can decide to go forward 
and just say your only option as a senior or a person with disability 
is to go to a nursing home or an institutional setting. If we continue 
to do that, the cost of that is $90,000 per person; or we can invest in 
home- and community-based services and not pay $90,000 per person, but 
we can pay just $26,000 per American for that kind of care. So it has a 
huge cost benefit as well as the compelling moral argument that we 
should provide these opportunities.
  This bill we are going to pass tonight or tomorrow morning or 
whenever we pass it is a good bill for families--lowering costs, 
helping seniors with prescription drugs, and really moving forward on 
action against climate change. After it has passed, we are going to 
continue to work on these other issues.
  I want to end with this. I want to thank members of my staff who have 
particularly worked so hard the last 18 months on a range of issues 
but, in particular, the ones who work on home- and community-based 
services and will continue that fight with us: Stacy Sanders, Michael 
Gamel-McCormick, Narda Ipakchi, Josh Kramer, and so many others who 
have done good work, just like so many members of staffs of so many 
Senators here tonight.
  But let's get the Inflation Reduction Act passed tonight, and let's 
move forward on these other issues in the months ahead.
  I yield the floor.
  The PRESIDING OFFICER. The Senator from Indiana.

[[Page S4153]]

  

                          ____________________