[Congressional Record Volume 168, Number 133 (Saturday, August 6, 2022)]
[Senate]
[Pages S4257-S4292]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 5281. Mr. SANDERS (for himself and Mr. Merkley) proposed an 
amendment to amendment SA 5194 proposed by Mr. Schumer to the bill H.R. 
5376, to provide for reconciliation pursuant to title II of S; as 
follows:

        Strike sections 13104 through 50265 and insert the 
     following:

     SEC. 13104. 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

[[Page S4258]]

     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 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

[[Page S4259]]

       ``(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.--
       (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.

[[Page S4260]]

       ``(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:
       ``(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).

[[Page S4261]]

       ``(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--
       ``(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

[[Page S4262]]

     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,
       ``(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

[[Page S4263]]

     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
       ``(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

[[Page S4264]]

     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 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).''.

[[Page S4265]]

       (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.--
       ``(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.

[[Page S4266]]

       ``(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 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--

[[Page S4267]]

       ``(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,
       ``(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

[[Page S4268]]

     (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 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

[[Page S4269]]

     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 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.--

[[Page S4270]]

       ``(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

       ``(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--

[[Page S4271]]

       ``(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:
       ``(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

[[Page S4272]]

       ``(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. 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

[[Page S4273]]

     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 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

[[Page S4274]]

     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
       ``(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,

[[Page S4275]]

       ``(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 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,

[[Page S4276]]

       (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
       ``(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

[[Page S4277]]

     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:
       ``(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

[[Page S4278]]

     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--

       ``(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

[[Page S4279]]

     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 (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

[[Page S4280]]

     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,
       (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.

[[Page S4281]]

       (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 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

[[Page S4282]]

     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, and zero-emission 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 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;

[[Page S4283]]

       (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 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

[[Page S4284]]

     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 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

[[Page S4285]]

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

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

           TITLE V--COMMITTEE ON ENERGY AND NATURAL RESOURCES

                           Subtitle A--Energy

                       PART 1--GENERAL PROVISIONS

     SEC. 50111. DEFINITIONS.

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

       PART 2--RESIDENTIAL EFFICIENCY AND ELECTRIFICATION REBATES

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

       (a) Appropriation.--
       (1) In general.--In addition to amounts otherwise 
     available, there is appropriated to the Secretary for fiscal 
     year 2022, out of any money in the Treasury not otherwise 
     appropriated, $4,300,000,000, to remain available through 
     September 30, 2031, to carry out a program to award grants to 
     State energy offices to develop and implement a HOMES rebate 
     program.
       (2) Allocation of funds.--
       (A) In general.--The Secretary shall reserve funds made 
     available under paragraph (1) for each State energy office--
       (i) in accordance with the allocation formula for the State 
     Energy Program in effect on January 1, 2022; and
       (ii) to be distributed to a State energy office if the 
     application of the State energy office under subsection (b) 
     is approved.
       (B) Additional funds.--Not earlier than 2 years after the 
     date of enactment of this Act, any money reserved under 
     subparagraph (A) but not distributed under clause (ii) of 
     that subparagraph shall be redistributed to the State energy 
     offices operating a HOMES rebate program using a grant 
     received under this section in proportion to the amount 
     distributed to those State energy offices under subparagraph 
     (A)(ii).
       (3) Administrative expenses.--Of the funds made available 
     under paragraph (1), the Secretary shall use not more than 3 
     percent for--
       (A) administrative purposes; and
       (B) providing technical assistance relating to activities 
     carried out under this section.
       (b) Application.--A State energy office seeking a grant 
     under this section shall submit to the Secretary an 
     application that includes a plan to implement a HOMES rebate 
     program, including a plan--
       (1) to use procedures, as approved by the Secretary, for 
     determining the reductions in home energy use resulting from 
     the implementation of a home energy efficiency retrofit that 
     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;

[[Page S4286]]

       (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 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

[[Page S4287]]

       (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
       (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

[[Page S4288]]

     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''.

     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''.

[[Page S4289]]

  


                     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 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).

[[Page S4290]]

       (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 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.
       (c) Office of Energy Efficiency and Renewable Energy.--In 
     addition to amounts otherwise available, there is 
     appropriated to the Secretary for fiscal year 2022, out of 
     any money in the Treasury not otherwise appropriated, 
     $150,000,000, to remain available through September 30, 2027, 
     to carry out activities for infrastructure and general plant 
     projects carried out by the Office of Energy Efficiency and 
     Renewable Energy.

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

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

                     Subtitle B--Natural Resources

                       PART 1--GENERAL PROVISIONS

     SEC. 50211. DEFINITIONS.

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

                          PART 2--PUBLIC LANDS

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

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

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

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

     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.

[[Page S4291]]

  


     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 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'';
       (2) in subparagraph (F), by striking ``no less than 12\1/2\ 
     per centum'' and inserting ``not less than 16\2/3\ percent''; 
     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''.

     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.

[[Page S4292]]

       ``(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.
       (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.
                                 ______