[Congressional Record Volume 168, Number 135 (Friday, August 12, 2022)]
[House]
[Pages H7577-H7704]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                         BUILD BACK BETTER ACT

  Mr. YARMUTH. Mr. Speaker, pursuant to House Resolution 1316, I call 
up the bill (H.R. 5376) to provide for reconciliation pursuant to title 
II of S. Con. Res. 14, with the Senate amendment thereto, and ask for 
its immediate consideration.
  The Clerk read the title of the bill.
  The SPEAKER pro tempore. The Clerk will designate the Senate 
amendment.
  Senate amendment:

       Strike all after the anacting clause and insert the 
     following:

                     TITLE I--COMMITTEE ON FINANCE

                     Subtitle A--Deficit Reduction

     SEC. 10001. AMENDMENT OF 1986 CODE.

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

                      PART 1--CORPORATE TAX REFORM

     SEC. 10101. CORPORATE ALTERNATIVE MINIMUM TAX.

       I(a) mposition of Tax.--
       (1) In general.--Paragraph (2) of section 55(b) is amended 
     to read as follows:
       ``(2) Corporations.--
       ``(A) Applicable corporations.--In the case of an 
     applicable corporation, the tentative minimum tax for the 
     taxable year shall be the excess of--
       ``(i) 15 percent of the adjusted financial statement income 
     for the taxable year (as determined under section 56A), over
       ``(ii) the corporate AMT foreign tax credit for the taxable 
     year.
       ``(B) Other corporations.--In the case of any corporation 
     which is not an applicable corporation, the tentative minimum 
     tax for the taxable year shall be zero.''.
       (2) Applicable corporation.--Section 59 is amended by 
     adding at the end the following new subsection:
       ``(k) Applicable Corporation.--For purposes of this part--
       ``(1) Applicable corporation defined.--
       ``(A) In general.--The term `applicable corporation' means, 
     with respect to any taxable year, any corporation (other than 
     an S corporation, a regulated investment company, or a real 
     estate investment trust) which meets the average annual 
     adjusted financial statement income test of subparagraph (B) 
     for one or more taxable years which--
       ``(i) are prior to such taxable year, and
       ``(ii) end after December 31, 2021.
       ``(B) Average annual adjusted financial statement income 
     test.--For purposes of this subsection--
       ``(i) a corporation meets the average annual adjusted 
     financial statement income test for a taxable year if the 
     average annual adjusted financial statement income of such 
     corporation (determined without regard to section 56A(d)) for 
     the 3-taxable-year period ending with such taxable year 
     exceeds $1,000,000,000, and
       ``(ii) in the case of a corporation described in paragraph 
     (2), such corporation meets the average annual adjusted 
     financial statement income test for a taxable year if--

       ``(I) the corporation meets the requirements of clause (i) 
     for such taxable year (determined after the application of 
     paragraph (2)), and
       ``(II) the average annual adjusted financial statement 
     income of such corporation (determined without regard to the 
     application of paragraph (2) and without regard to section 
     56A(d)) for the 3-taxable-year-period ending with such 
     taxable year is $100,000,000 or more.

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

       ``(I) has a change in ownership, or
       ``(II) has a specified number (to be determined by the 
     Secretary and which shall, as appropriate, take into account 
     the facts and circumstances of the taxpayer) of consecutive 
     taxable years, including the most recent taxable

[[Page H7578]]

     year, in which the corporation does not meet the average 
     annual adjusted financial statement income test of 
     subparagraph (B), and

       ``(ii) the Secretary determines that it would not be 
     appropriate to continue to treat such corporation as an 
     applicable corporation.
     The preceding sentence shall not apply to any corporation if, 
     after the Secretary makes the determination described in 
     clause (ii), such corporation meets the average annual 
     adjusted financial statement income test of subparagraph (B) 
     for any taxable year beginning after the first taxable year 
     for which such determination applies.
       ``(D) Special rules for determining applicable corporation 
     status.--
       ``(i) In general.--Solely for purposes of determining 
     whether a corporation is an applicable corporation under this 
     paragraph, all adjusted financial statement income of persons 
     treated as a single employer with such corporation under 
     subsection (a) or (b) of section 52 (determined with the 
     modifications described in clause (ii)) shall be treated as 
     adjusted financial statement income of such corporation, and 
     adjusted financial statement income of such corporation shall 
     be determined without regard to paragraphs (2)(D)(i) and (11) 
     of section 56A(c).
       ``(ii) Modifications.--For purposes of this subparagraph--

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

       ``(iii) Component member.--For purposes of this 
     subparagraph, the term `component member' has the meaning 
     given such term by section 1563(b), except that the 
     determination shall be made without regard to section 
     1563(b)(2).
       ``(E) Other special rules.--
       ``(i) Corporations in existence for less than 3 years.--If 
     the corporation was in existence for less than 3-taxable 
     years, subparagraph (B) shall be applied on the basis of the 
     period during which such corporation was in existence.
       ``(ii) Short taxable years.--Adjusted financial statement 
     income for any taxable year of less than 12 months shall be 
     annualized by multiplying the adjusted financial statement 
     income for the short period by 12 and dividing the result by 
     the number of months in the short period.
       ``(iii) Treatment of predecessors.--Any reference in this 
     subparagraph to a corporation shall include a reference to 
     any predecessor of such corporation.
       ``(2) Special rule for foreign-parented multinational 
     groups.--
       ``(A) In general.--If a corporation is a member of a 
     foreign-parented multinational group for any taxable year, 
     then, solely for purposes of determining whether such 
     corporation meets the average annual adjusted financial 
     statement income test under paragraph (1)(B)(ii)(I) for such 
     taxable year, the adjusted financial statement income of such 
     corporation for such taxable year shall include the adjusted 
     financial statement income of all members of such group. 
     Solely for purposes of this subparagraph, adjusted financial 
     statement income shall be determined without regard to 
     paragraphs (2)(D)(i), (3), (4), and (11) of section 56A(c).
       ``(B) Foreign-parented multinational group.--For purposes 
     of subparagraph (A), the term `foreign-parented multinational 
     group' means, with respect to any taxable year, two or more 
     entities if--
       ``(i) at least one entity is a domestic corporation and 
     another entity is a foreign corporation,
       ``(ii) such entities are included in the same applicable 
     financial statement with respect to such year, and
       ``(iii) either--

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

       ``(C) Foreign corporations engaged in a trade or business 
     within the united states.--For purposes of this paragraph, if 
     a foreign corporation is engaged in a trade or business 
     within the United States, such trade or business shall be 
     treated as a separate domestic corporation that is wholly 
     owned by the foreign corporation.
       ``(D) Other rules.--The Secretary shall, applying the 
     principles of this section, prescribe rules for the 
     application of this paragraph, including rules for the 
     determination of--
       ``(i) the entities (if any) which are to be to be treated 
     under subparagraph (B)(iii)(II) as having a common parent 
     which is a foreign corporation,
       ``(ii) the entities to be included in a foreign-parented 
     multinational group, and
       ``(iii) the common parent of a foreign-parented 
     multinational group.
       ``(3) Regulations or other guidance.--The Secretary shall 
     provide regulations or other guidance for the purposes of 
     carrying out this subsection, including regulations or other 
     guidance--
       ``(A) providing a simplified method for determining whether 
     a corporation meets the requirements of paragraph (1), and
       ``'(B) addressing the application of this subsection to a 
     corporation that experiences a change in ownership.''.
       (3) Reduction for base erosion and anti-abuse tax.--Section 
     55(a)(2) is amended by inserting ``plus, in the case of an 
     applicable corporation, the tax imposed by section 59A'' 
     before the period at the end.
       (4) Conforming amendments.--
       (A) Section 55(a) is amended by striking ``In the case of a 
     taxpayer other than a corporation, there'' and inserting 
     ``There''.
       (B)(i) Section 55(b)(1) is amended--
       (I) by striking so much as precedes subparagraph (A) and 
     inserting the following:
       ``(1) Noncorporate taxpayers.--In the case of a taxpayer 
     other than a corporation--'', and
       (II) by adding at the end the following new subparagraph:
       ``(D) Alternative minimum taxable income.--The term 
     `alternative minimum taxable income' means the taxable income 
     of the taxpayer for the taxable year--
       ``(i) determined with the adjustments provided in section 
     56 and section 58, and
       ``(ii) increased by the amount of the items of tax 
     preference described in section 57.
     If a taxpayer is subject to the regular tax, such taxpayer 
     shall be subject to the tax imposed by this section (and, if 
     the regular tax is determined by reference to an amount other 
     than taxable income, such amount shall be treated as the 
     taxable income of such taxpayer for purposes of the preceding 
     sentence).''.
       (ii) Section 860E(a)(4) is amended by striking ``55(b)(2)'' 
     and inserting ``55(b)(1)(D)''.
       (iii) Section 897(a)(2)(A)(i) is amended by striking 
     ``55(b)(2)'' and inserting ``55(b)(1)(D)''.
       (C) Section 11(d) is amended by striking ``the tax imposed 
     by subsection (a)'' and inserting ``the taxes imposed by 
     subsection (a) and section 55''.
       (D) Section 12 is amended by adding at the end the 
     following new paragraph:
       ``(5) For alternative minimum tax, see section 55.''.
       (E) Section 882(a)(1) is amended by inserting ``, 55,'' 
     after ``section 11''.
       (F) Section 6425(c)(1)(A) is amended to read as follows:
       ``(A) the sum of--
       ``(i) the tax imposed by section 11 or subchapter L of 
     chapter 1, whichever is applicable, plus
       ``(ii) the tax imposed by section 55, plus
       ``(iii) the tax imposed by section 59A, over''.
       (G) Section 6655(e)(2) is amended by inserting ``, adjusted 
     financial statement income (as defined in section 56A),'' 
     before ``and modified taxable income'' each place it appears 
     in subparagraphs (A)(i) and (B)(i).
       (H) Section 6655(g)(1)(A) is amended by redesignating 
     clauses (ii) and (iii) as clauses (iii) and (iv), 
     respectively, and by inserting after clause (i) the following 
     new clause:
       ``(ii) the tax imposed by section 55,''.
       (b) Adjusted Financial Statement Income.--
       (1) In general.--Part VI of subchapter A of chapter 1 is 
     amended by inserting after section 56 the following new 
     section:

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

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

[[Page H7579]]

     or more controlled foreign corporations, the adjusted 
     financial statement income of such taxpayer with respect to 
     such controlled foreign corporation (as determined under 
     paragraph (2)(C)) shall be adjusted to also take into account 
     such taxpayer's pro rata share (determined under rules 
     similar to the rules under section 951(a)(2)) of items taken 
     into account in computing the net income or loss set forth on 
     the applicable financial statement (as adjusted under rules 
     similar to those that apply in determining adjusted financial 
     statement income) of each such controlled foreign corporation 
     with respect to which such taxpayer is a United States 
     shareholder.
       ``(B) Negative adjustments.--In any case in which the 
     adjustment determined under subparagraph (A) would result in 
     a negative adjustment for such taxable year--
       ``(i) no adjustment shall be made under this paragraph for 
     such taxable year, and
       ``(ii) the amount of the adjustment determined under this 
     paragraph for the succeeding taxable year (determined without 
     regard to this paragraph) shall be reduced by an amount equal 
     to the negative adjustment for such taxable year.
       ``(4) Effectively connected income.--In the case of a 
     foreign corporation, to determine adjusted financial 
     statement income, the principles of section 882 shall apply.
       ``(5) Adjustments for certain taxes.--Adjusted financial 
     statement income shall be appropriately adjusted to disregard 
     any Federal income taxes, or income, war profits, or excess 
     profits taxes (within the meaning of section 901) with 
     respect to a foreign country or possession of the United 
     States, which are taken into account on the taxpayer's 
     applicable financial statement. To the extent provided by the 
     Secretary, the preceding sentence shall not apply to income, 
     war profits, or excess profits taxes (within the meaning of 
     section 901) that are imposed by a foreign country or 
     possession of the United States and taken into account on the 
     taxpayer's applicable financial statement if the taxpayer 
     does not choose to have the benefits of subpart A of part III 
     of subchapter N for the taxable year. The Secretary shall 
     prescribe such regulations or other guidance as may be 
     necessary and appropriate to provide for the proper treatment 
     of current and deferred taxes for purposes of this paragraph, 
     including the time at which such taxes are properly taken 
     into account.
       ``(6) Adjustment with respect to disregarded entities.--
     Adjusted financial statement income shall be adjusted to take 
     into account any adjusted financial statement income of a 
     disregarded entity owned by the taxpayer.
       ``(7) Special rule for cooperatives.--In the case of a 
     cooperative to which section 1381 applies, the adjusted 
     financial statement income (determined without regard to this 
     paragraph) shall be reduced by the amounts referred to in 
     section 1382(b) (relating to patronage dividends and per-unit 
     retain allocations) to the extent such amounts were not 
     otherwise taken into account in determining adjusted 
     financial statement income.
       ``(8) Rules for alaska native corporations.--Adjusted 
     financial statement income shall be appropriately adjusted to 
     allow--
       ``(A) cost recovery and depletion attributable to property 
     the basis of which is determined under section 21(c) of the 
     Alaska Native Claims Settlement Act (43 U.S.C. 1620(c)), and
       ``(B) deductions for amounts payable made pursuant to 
     section 7(i) or section 7(j) of such Act (43 U.S.C. 1606(i) 
     and 1606(j)) only at such time as the deductions are allowed 
     for tax purposes.
       ``(9) Amounts attributable to elections for direct payment 
     of certain credits.--Adjusted financial statement income 
     shall be appropriately adjusted to disregard any amount 
     treated as a payment against the tax imposed by subtitle A 
     pursuant to an election under section 48D(d) or 6417, to the 
     extent such amount was not otherwise taken into account under 
     paragraph (5).
       ``(10) Consistent treatment of mortgage servicing income of 
     taxpayer other than a regulated investment company.--
       ``(A) In general.--Adjusted financial statement income 
     shall be adjusted so as not to include any item of income in 
     connection with a mortgage servicing contract any earlier 
     than when such income is included in gross income under any 
     other provision of this chapter.
       ``(B) Rules for amounts not representing reasonable 
     compensation.--The Secretary shall provide regulations to 
     prevent the avoidance of taxes imposed by this chapter with 
     respect to amounts not representing reasonable compensation 
     (as determined by the Secretary) with respect to a mortgage 
     servicing contract.
       ``(11) Adjustment with respect to defined benefit 
     pensions.--
       ``(A) In general.--Except as otherwise provided in rules 
     prescribed by the Secretary in regulations or other guidance, 
     adjusted financial statement income shall be--
       ``(i) adjusted to disregard any amount of income, cost, or 
     expense that would otherwise be included on the applicable 
     financial statement in connection with any covered benefit 
     plan,
       ``(ii) increased by any amount of income in connection with 
     any such covered benefit plan that is included in the gross 
     income of the corporation under any other provision of this 
     chapter, and
       ``(iii) reduced by deductions allowed under any other 
     provision of this chapter with respect to any such covered 
     benefit plan.
       ``(B) Covered benefit plan.--For purposes of this 
     paragraph, the term `covered benefit plan' means--
       ``(i) a defined benefit plan (other than a multiemployer 
     plan described in section 414(f)) if the trust which is part 
     of such plan is an employees' trust described in section 
     401(a) which is exempt from tax under section 501(a),
       ``(ii) any qualified foreign plan (as defined in section 
     404A(e)), or
       ``(iii) any other defined benefit plan which provides post-
     employment benefits other than pension benefits.
       ``(12) Tax-exempt entities.--In the case of an organization 
     subject to tax under section 511, adjusted financial 
     statement income shall be appropriately adjusted to only take 
     into account any adjusted financial statement income--
       ``(A) of an unrelated trade or business (as defined in 
     section 513) of such organization, or
       ``(B) derived from debt-financed property (as defined in 
     section 514) to the extent that income from such property is 
     treated as unrelated business taxable income.
       ``(13) Depreciation.--Adjusted financial statement income 
     shall be--
       ``(A) reduced by depreciation deductions allowed under 
     section 167 with respect to property to which section 168 
     applies to the extent of the amount allowed as deductions in 
     computing taxable income for the taxable year, and
       ``(B) appropriately adjusted--
       ``(i) to disregard any amount of depreciation expense that 
     is taken into account on the taxpayer's applicable financial 
     statement with respect to such property, and
       ``(ii) to take into account any other item specified by the 
     Secretary in order to provide that such property is accounted 
     for in the same manner as it is accounted for under this 
     chapter.
       ``(14) Qualified wireless spectrum.--
       ``(A) In general.--Adjusted financial statement income 
     shall be--
       ``(i) reduced by amortization deductions allowed under 
     section 197 with respect to qualified wireless spectrum to 
     the extent of the amount allowed as deductions in computing 
     taxable income for the taxable year, and
       ``(ii) appropriately adjusted--

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

       ``(B) Qualified wireless spectrum.--For purposes of this 
     paragraph, the term `qualified wireless spectrum' means 
     wireless spectrum which--
       ``(i) is used in the trade or business of a wireless 
     telecommunications carrier, and
       ``(ii) was acquired after December 31, 2007, and before the 
     date of enactment of this section.
       ``(15) Secretarial authority to adjust items.--The 
     Secretary shall issue regulations or other guidance to 
     provide for such adjustments to adjusted financial statement 
     income as the Secretary determines necessary to carry out the 
     purposes of this section, including adjustments--
       ``(A) to prevent the omission or duplication of any item, 
     and
       ``(B) to carry out the principles of part II of subchapter 
     C of this chapter (relating to corporate liquidations), part 
     III of subchapter C of this chapter (relating to corporate 
     organizations and reorganizations), and part II of subchapter 
     K of this chapter (relating to partnership contributions and 
     distributions).
       ``(d) Deduction for Financial Statement Net Operating 
     Loss.--
       ``(1) In general.--Adjusted financial statement income 
     (determined after application of subsection (c) and without 
     regard to this subsection) shall be reduced by an amount 
     equal to the lesser of--
       ``(A) the aggregate amount of financial statement net 
     operating loss carryovers to the taxable year, or
       ``(B) 80 percent of adjusted financial statement income 
     computed without regard to the deduction allowable under this 
     subsection.
       ``(2) Financial statement net operating loss carryover.--A 
     financial statement net operating loss for any taxable year 
     shall be a financial statement net operating loss carryover 
     to each taxable year following the taxable year of the loss. 
     The portion of such loss which shall be carried to subsequent 
     taxable years shall be the amount of such loss remaining (if 
     any) after the application of paragraph (1).
       ``(3) Financial statement net operating loss defined.--For 
     purposes of this subsection, the term `financial statement 
     net operating loss' means the amount of the net loss (if any) 
     set forth on the corporation's applicable financial statement 
     (determined after application of subsection (c) and without 
     regard to this subsection) for taxable years ending after 
     December 31, 2019.
       ``(e) Regulations and Other Guidance.--The Secretary shall 
     provide for such regulations and other guidance as necessary 
     to carry out the purposes of this section, including 
     regulations and other guidance relating to the effect of the 
     rules of this section on partnerships with income taken into 
     account by an applicable corporation.''.
       (2) Clerical amendment.--The table of sections for part VI 
     of subchapter A of chapter 1 is amended by inserting after 
     the item relating to section 56 the following new item:

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

[[Page H7580]]

     profits, and excess profits taxes (within the meaning of 
     section 901) imposed by any foreign country or possession of 
     the United States which are--

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

       ``(ii) the product of the amount of the adjustment under 
     section 56A(c)(3) and the percentage specified in section 
     55(b)(2)(A)(i), and
       ``(B) in the case of an applicable corporation that is a 
     domestic corporation, the amount of income, war profits, and 
     excess profits taxes (within the meaning of section 901) 
     imposed by any foreign country or possession of the United 
     States to the extent such taxes are--
       ``(i) taken into account on the applicable corporation's 
     applicable financial statement, and
       ``(ii) paid or accrued (for Federal income tax purposes) by 
     the applicable corporation.
       ``(2) Carryover of excess tax paid.--For any taxable year 
     for which an applicable corporation chooses to have the 
     benefits of subpart A of part III of subchapter N, the excess 
     of the amount described in paragraph (1)(A)(i) over the 
     amount described in paragraph (1)(A)(ii) shall increase the 
     amount described in paragraph (1)(A)(i) in any of the first 5 
     succeeding taxable years to the extent not taken into account 
     in a prior taxable year.
       ``(3) Regulations or other guidance.--The Secretary shall 
     provide for such regulations or other guidance as is 
     necessary to carry out the purposes of this subsection.''.
       (d) Treatment of General Business Credit.--Section 
     38(c)(6)(E) is amended to read as follows:
       ``(E) Corporations.--In the case of a corporation--
       ``(i) the first sentence of paragraph (1) shall be applied 
     by substituting `25 percent of the taxpayer's net income tax 
     as exceeds $25,000' for `the greater of' and all that 
     follows,
       ``(ii) paragraph (2)(A) shall be applied without regard to 
     clause (ii)(I) thereof, and
       ``(iii) paragraph (4)(A) shall be applied without regard to 
     clause (ii)(I) thereof.''.
       (e) Credit for Prior Year Minimum Tax Liability.--
       (1) In general.--Section 53(e) is amended to read as 
     follows:
       ``(e) Application to Applicable Corporations.--In the case 
     of a corporation--
       ``(1) subsection (b)(1) shall be applied by substituting 
     `the net minimum tax for all prior taxable years beginning 
     after 2022' for `the adjusted net minimum tax imposed for all 
     prior taxable years beginning after 1986', and
       ``(2) the amount determined under subsection (c)(1) shall 
     be increased by the amount of tax imposed under section 59A 
     for the taxable year.''.
       (2) Conforming amendments.--Section 53(d) is amended--
       (A) in paragraph (2), by striking ``, except that in the 
     case'' and all that follows through ``treated as zero'', and
       (B) by striking paragraph (3).
       (f) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2022.

          PART 2--EXCISE TAX ON REPURCHASE OF CORPORATE STOCK

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

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

              ``CHAPTER 37--REPURCHASE OF CORPORATE STOCK

``Sec. 4501. Repurchase of corporate stock.

     ``SEC. 4501. REPURCHASE OF CORPORATE STOCK.

       ``(a) General Rule.--There is hereby imposed on each 
     covered corporation a tax equal to 1 percent of the fair 
     market value of any stock of the corporation which is 
     repurchased by such corporation during the taxable year.
       ``(b) Covered Corporation.--For purposes of this section, 
     the term `covered corporation' means any domestic corporation 
     the stock of which is traded on an established securities 
     market (within the meaning of section 7704(b)(1)).
       ``(c) Repurchase.--For purposes of this section--
       ``(1) In general.--The term `repurchase' means--
       ``(A) a redemption within the meaning of section 317(b) 
     with regard to the stock of a covered corporation, and
       ``(B) any transaction determined by the Secretary to be 
     economically similar to a transaction described in 
     subparagraph (A).
       ``(2) Treatment of purchases by specified affiliates.--
       ``(A) In general.--The acquisition of stock of a covered 
     corporation by a specified affiliate of such covered 
     corporation, from a person who is not the covered corporation 
     or a specified affiliate of such covered corporation, shall 
     be treated as a repurchase of the stock of the covered 
     corporation by such covered corporation.
       ``(B) Specified affiliate.--For purposes of this section, 
     the term `specified affiliate' means, with respect to any 
     corporation--
       ``(i) any corporation more than 50 percent of the stock of 
     which is owned (by vote or by value), directly or indirectly, 
     by such corporation, and
       ``(ii) any partnership more than 50 percent of the capital 
     interests or profits interests of which is held, directly or 
     indirectly, by such corporation.
       ``(3) Adjustment.--The amount taken into account under 
     subsection (a) with respect to any stock repurchased by a 
     covered corporation shall be reduced by the fair market value 
     of any stock issued by the covered corporation during the 
     taxable year, including the fair market value of any stock 
     issued or provided to employees of such covered corporation 
     or employees of a specified affiliate of such covered 
     corporation during the taxable year, whether or not such 
     stock is issued or provided in response to the exercise of an 
     option to purchase such stock.
       ``(d) Special Rules for Acquisition of Stock of Certain 
     Foreign Corporations.--
       ``(1) In general.--In the case of an acquisition of stock 
     of an applicable foreign corporation by a specified affiliate 
     of such corporation (other than a foreign corporation or a 
     foreign partnership (unless such partnership has a domestic 
     entity as a direct or indirect partner)) from a person who is 
     not the applicable foreign corporation or a specified 
     affiliate of such applicable foreign corporation, for 
     purposes of this section--
       ``(A) such specified affiliate shall be treated as a 
     covered corporation with respect to such acquisition,
       ``(B) such acquisition shall be treated as a repurchase of 
     stock of a covered corporation by such covered corporation, 
     and
       ``(C) the adjustment under subsection (c)(3) shall be 
     determined only with respect to stock issued or provided by 
     such specified affiliate to employees of the specified 
     affiliate.
       ``(2) Surrogate foreign corporations.--In the case of a 
     repurchase of stock of a covered surrogate foreign 
     corporation by such covered surrogate foreign corporation, or 
     an acquisition of stock of a covered surrogate foreign 
     corporation by a specified affiliate of such corporation, for 
     purposes of this section--
       ``(A) the expatriated entity with respect to such covered 
     surrogate foreign corporation shall be treated as a covered 
     corporation with respect to such repurchase or acquisition,
       ``(B) such repurchase or acquisition shall be treated as a 
     repurchase of stock of a covered corporation by such covered 
     corporation, and
       ``(C) the adjustment under subsection (c)(3) shall be 
     determined only with respect to stock issued or provided by 
     such expatriated entity to employees of the expatriated 
     entity.
       ``(3) Definitions.--For purposes of this subsection--
       ``(A) Applicable foreign corporation.--The term `applicable 
     foreign corporation' means any foreign corporation the stock 
     of which is traded on an established securities market 
     (within the meaning of section 7704(b)(1)).
       ``(B) Covered surrogate foreign corporation.--The term 
     `covered surrogate foreign corporation' means any surrogate 
     foreign corporation (as determined under section 
     7874(a)(2)(B) by substituting `September 20, 2021' for `March 
     4, 2003' each place it appears) the stock of which is traded 
     on an established securities market (within the meaning of 
     section 7704(b)(1)), but only with respect to taxable years 
     which include any portion of the applicable period with 
     respect to such corporation under section 7874(d)(1).
       ``(C) Expatriated entity.--The term `expatriated entity' 
     has the meaning given such term by section 7874(a)(2)(A).
       ``(e) Exceptions.--Subsection (a) shall not apply--
       ``(1) to the extent that the repurchase is part of a 
     reorganization (within the meaning of section 368(a)) and no 
     gain or loss is recognized on such repurchase by the 
     shareholder under chapter 1 by reason of such reorganization,
       ``(2) in any case in which the stock repurchased is, or an 
     amount of stock equal to the value of the stock repurchased 
     is, contributed to an employer-sponsored retirement plan, 
     employee stock ownership plan, or similar plan,
       ``(3) in any case in which the total value of the stock 
     repurchased during the taxable year does not exceed 
     $1,000,000,
       ``(4) under regulations prescribed by the Secretary, in 
     cases in which the repurchase is by a dealer in securities in 
     the ordinary course of business,
       ``(5) to repurchases by a regulated investment company (as 
     defined in section 851) or a real estate investment trust, or
       ``(6) to the extent that the repurchase is treated as a 
     dividend for purposes of this title.
       ``(f) Regulations and Guidance.--The Secretary shall 
     prescribe such regulations and other guidance as are 
     necessary or appropriate to carry out, and to prevent the 
     avoidance of, the purposes of this section, including 
     regulations and other guidance--
       ``(1) to prevent the abuse of the exceptions provided by 
     subsection (e),
       ``(2) to address special classes of stock and preferred 
     stock, and
       ``(3) for the application of the rules under subsection 
     (d).''.
       (b) Tax Not Deductible.--Paragraph (6) of section 275(a) is 
     amended by inserting ``37,'' before ``41''.
       (c) Clerical Amendment.--The table of chapters for subtitle 
     D is amended by inserting after the item relating to chapter 
     36 the following new item:

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

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

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

     SEC. 10301. ENHANCEMENT OF INTERNAL REVENUE SERVICE 
                   RESOURCES.

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

[[Page H7581]]

       (i) Taxpayer services.--For necessary expenses of the 
     Internal Revenue Service to provide taxpayer services, 
     including pre-filing assistance and education, filing and 
     account services, taxpayer advocacy services, and other 
     services as authorized by 5 U.S.C. 3109, at such rates as may 
     be determined by the Commissioner, $3,181,500,000, to remain 
     available until September 30, 2031: Provided, That these 
     amounts shall be in addition to amounts otherwise available 
     for such purposes.
       (ii) Enforcement.--For necessary expenses for tax 
     enforcement activities of the Internal Revenue Service to 
     determine and collect owed taxes, to provide legal and 
     litigation support, to conduct criminal investigations 
     (including investigative technology), to provide digital 
     asset monitoring and compliance activities, to enforce 
     criminal statutes related to violations of internal revenue 
     laws and other financial crimes, to purchase and hire 
     passenger motor vehicles (31 U.S.C. 1343(b)), and to provide 
     other services as authorized by 5 U.S.C. 3109, at such rates 
     as may be determined by the Commissioner, $45,637,400,000, to 
     remain available until September 30, 2031: Provided, That 
     these amounts shall be in addition to amounts otherwise 
     available for such purposes.
       (iii) Operations support.--For necessary expenses of the 
     Internal Revenue Service to support taxpayer services and 
     enforcement programs, including rent payments; facilities 
     services; printing; postage; physical security; headquarters 
     and other IRS-wide administration activities; research and 
     statistics of income; telecommunications; information 
     technology development, enhancement, operations, maintenance, 
     and security; the hire of passenger motor vehicles (31 U.S.C. 
     1343(b)); the operations of the Internal Revenue Service 
     Oversight Board; and other services as authorized by 5 U.S.C. 
     3109, at such rates as may be determined by the Commissioner, 
     $25,326,400,000, to remain available until September 30, 
     2031: Provided, That these amounts shall be in addition to 
     amounts otherwise available for such purposes.
       (iv) Business systems modernization.--For necessary 
     expenses of the Internal Revenue Service's business systems 
     modernization program, including development of callback 
     technology and other technology to provide a more 
     personalized customer service but not including the operation 
     and maintenance of legacy systems, $4,750,700,000, to remain 
     available until September 30, 2031: Provided, That these 
     amounts shall be in addition to amounts otherwise available 
     for such purposes.
       (B) Task force to design an irs-run free ``direct efile'' 
     tax return system.--For necessary expenses of the Internal 
     Revenue Service to deliver to Congress, within nine months 
     following the date of the enactment of this Act, a report on 
     (I) the cost (including options for differential coverage 
     based on taxpayer adjusted gross income and return 
     complexity) of developing and running a free direct efile tax 
     return system, including costs to build and administer each 
     release, with a focus on multi-lingual and mobile-friendly 
     features and safeguards for taxpayer data; (II) taxpayer 
     opinions, expectations, and level of trust, based on surveys, 
     for such a free direct efile system; and (III) the opinions 
     of an independent third-party on the overall feasibility, 
     approach, schedule, cost, organizational design, and Internal 
     Revenue Service capacity to deliver such a direct efile tax 
     return system, $15,000,000, to remain available until 
     September 30, 2023: Provided, That these amounts shall be in 
     addition to amounts otherwise available for such purposes.
       (2) Treasury inspector general for tax administration.--For 
     necessary expenses of the Treasury Inspector General for Tax 
     Administration in carrying out the Inspector General Act of 
     1978, as amended, including purchase and hire of passenger 
     motor vehicles (31 U.S.C. 1343(b)); and services authorized 
     by 5 U.S.C. 3109, at such rates as may be determined by the 
     Inspector General for Tax Administration, $403,000,000, to 
     remain available until September 30, 2031: Provided, That 
     these amounts shall be in addition to amounts otherwise 
     available for such purposes.
       (3) Office of tax policy.--For necessary expenses of the 
     Office of Tax Policy of the Department of the Treasury to 
     carry out functions related to promulgating regulations under 
     the Internal Revenue Code of 1986, $104,533,803, to remain 
     available until September 30, 2031: Provided, That these 
     amounts shall be in addition to amounts otherwise available 
     for such purposes.
       (4) United states tax court.--For necessary expenses of the 
     United States Tax Court, including contract reporting and 
     other services as authorized by 5 U.S.C. 3109; $153,000,000, 
     to remain available until September 30, 2031: Provided, That 
     these amounts shall be in addition to amounts otherwise 
     available for such purposes.
       (5) Treasury departmental offices.--For necessary expenses 
     of the Departmental Offices of the Department of the Treasury 
     to provide for oversight and implementation support for 
     actions by the Internal Revenue Service to implement this Act 
     and the amendments made by this Act, $50,000,000, to remain 
     available until September 30, 2031: Provided, That these 
     amounts shall be in addition to amounts otherwise available 
     for such purposes.

              Subtitle B--Prescription Drug Pricing Reform

         PART 1--LOWERING PRICES THROUGH DRUG PRICE NEGOTIATION

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

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

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

     ``SEC. 1191. ESTABLISHMENT OF PROGRAM.

       ``(a) In General.--The Secretary shall establish a Drug 
     Price Negotiation Program (in this part referred to as the 
     `program'). Under the program, with respect to each price 
     applicability period, the Secretary shall--
       ``(1) publish a list of selected drugs in accordance with 
     section 1192;
       ``(2) enter into agreements with manufacturers of selected 
     drugs with respect to such period, in accordance with section 
     1193;
       ``(3) negotiate and, if applicable, renegotiate maximum 
     fair prices for such selected drugs, in accordance with 
     section 1194;
       ``(4) carry out the publication and administrative duties 
     and compliance monitoring in accordance with sections 1195 
     and 1196.
       ``(b) Definitions Relating to Timing.--For purposes of this 
     part:
       ``(1) Initial price applicability year.--The term `initial 
     price applicability year' means a year (beginning with 2026).
       ``(2) Price applicability period.--The term `price 
     applicability period' means, with respect to a qualifying 
     single source drug, the period beginning with the first 
     initial price applicability year with respect to which such 
     drug is a selected drug and ending with the last year during 
     which the drug is a selected drug.
       ``(3) Selected drug publication date.--The term `selected 
     drug publication date' means, with respect to each initial 
     price applicability year, February 1 of the year that begins 
     2 years prior to such year.
       ``(4) Negotiation period.--The term `negotiation period' 
     means, with respect to an initial price applicability year 
     with respect to a selected drug, the period--
       ``(A) beginning on the sooner of--
       ``(i) the date on which the manufacturer of the drug and 
     the Secretary enter into an agreement under section 1193 with 
     respect to such drug; or
       ``(ii) February 28 following the selected drug publication 
     date with respect to such selected drug; and
       ``(B) ending on November 1 of the year that begins 2 years 
     prior to the initial price applicability year.
       ``(c) Other Definitions.--For purposes of this part:
       ``(1) Manufacturer.--The term `manufacturer' has the 
     meaning given that term in section 1847A(c)(6)(A).
       ``(2) Maximum fair price eligible individual.--The term 
     `maximum fair price eligible individual' means, with respect 
     to a selected drug--
       ``(A) in the case such drug is dispensed to the individual 
     at a pharmacy, by a mail order service, or by another 
     dispenser, an individual who is enrolled in a prescription 
     drug plan under part D of title XVIII or an MA-PD plan under 
     part C of such title if coverage is provided under such plan 
     for such selected drug; and
       ``(B) in the case such drug is furnished or administered to 
     the individual by a hospital, physician, or other provider of 
     services or supplier, an individual who is enrolled under 
     part B of title XVIII, including an individual who is 
     enrolled in an MA plan under part C of such title, if payment 
     may be made under part B for such selected drug.
       ``(3) Maximum fair price.--The term `maximum fair price' 
     means, with respect to a year during a price applicability 
     period and with respect to a selected drug (as defined in 
     section 1192(c)) with respect to such period, the price 
     negotiated pursuant to section 1194, and updated pursuant to 
     section 1195(b), as applicable, for such drug and year.
       ``(4) Reference product.--The term `reference product' has 
     the meaning given such term in section 351(i) of the Public 
     Health Service Act.
       ``(5) Total expenditures.--The term `total expenditures' 
     includes, in the case of expenditures with respect to part D 
     of title XVIII, the total gross covered prescription drug 
     costs (as defined in section 1860D-15(b)(3)). The term `total 
     expenditures' excludes, in the case of expenditures with 
     respect to part B of such title, expenditures for a drug or 
     biological product that are bundled or packaged into the 
     payment for another service.
       ``(6) Unit.--The term `unit' means, with respect to a drug 
     or biological product, the lowest identifiable amount (such 
     as a capsule or tablet, milligram of molecules, or grams) of 
     the drug or biological product that is dispensed or 
     furnished.
       ``(d) Timing for Initial Price Applicability Year 2026.--
     Notwithstanding the provisions of this part, in the case of 
     initial price applicability year 2026, the following rules 
     shall apply for purposes of implementing the program:
       ``(1) Subsection (b)(3) shall be applied by substituting 
     `September 1, 2023' for `, with respect to each initial price 
     applicability year, February 1 of the year that begins 2 
     years prior to such year'.
       ``(2) Subsection (b)(4) shall be applied--
       ``(A) in subparagraph (A)(ii), by substituting `October 1, 
     2023' for `February 28 following the selected drug 
     publication date with respect to such selected drug'; and
       ``(B) in subparagraph (B), by substituting `August 1, 2024' 
     for `November 1 of the year that begins 2 years prior to the 
     initial price applicability year'.
       ``(3) Section 1192 shall be applied--
       ``(A) in subsection (b)(1)(A), by substituting `during the 
     period beginning on June 1, 2022, and ending on May 31, 2023' 
     for `during the most recent period of 12 months prior to the 
     selected drug publication date (but ending not later than 
     October 31 of the year prior to the year of such drug 
     publication date), with respect to such year, for which data 
     are available'; and

[[Page H7582]]

       ``(B) in subsection (d)(1)(A), by substituting `during the 
     period beginning on June 1, 2022, and ending on May 31, 2023' 
     for `during the most recent period for which data are 
     available of at least 12 months prior to the selected drug 
     publication date (but ending no later than October 31 of the 
     year prior to the year of such drug publication date), with 
     respect to such year'.
       ``(4) Section 1193(a) shall be applied by substituting 
     `October 1, 2023' for `February 28 following the selected 
     drug publication date with respect to such selected drug'.
       ``(5) Section 1194(b)(2) shall be applied--
       ``(A) in subparagraph (A), by substituting `October 2, 
     2023' for `March 1 of the year of the selected drug 
     publication date, with respect to the selected drug';
       ``(B) in subparagraph (B), by substituting `February 1, 
     2024' for `the June 1 following the selected drug publication 
     date'; and
       ``(C) in subparagraph (E), by substituting `August 1, 2024' 
     for `the first day of November following the selected drug 
     publication date, with respect to the initial price 
     applicability year '.
       ``(6) Section 1195(a)(1) shall be applied by substituting 
     `September 1, 2024' for `November 30 of the year that is 2 
     years prior to such initial price applicability year'.

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

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

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

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

       ``(I) are equal to or less than 1 percent of the total 
     expenditures under such part B, as so determined, for all 
     qualifying single source drugs for which payment may be made 
     under such part B during such year; and
       ``(II) are equal to at least 80 percent of the total 
     expenditures under such part B, as so determined, for all 
     qualifying single source drugs of the manufacturer for which 
     payment may be made under such part B during such year.

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

[[Page H7583]]

       ``(ii) for which, as of the selected drug publication date 
     with respect to such initial price applicability year, at 
     least 7 years will have elapsed since the date of such 
     approval; and
       ``(iii) that is not the listed drug for any drug that is 
     approved and marketed under section 505(j) of such Act.
       ``(B) Biological products.--A biological product--
       ``(i) that is licensed under section 351(a) of the Public 
     Health Service Act and is marketed under section 351 of such 
     Act;
       ``(ii) for which, as of the selected drug publication date 
     with respect to such initial price applicability year, at 
     least 11 years will have elapsed since the date of such 
     licensure; and
       ``(iii) that is not the reference product for any 
     biological product that is licensed and marketed under 
     section 351(k) of such Act.
       ``(2) Treatment of authorized generic drugs.--
       ``(A) In general.--In the case of a qualifying single 
     source drug described in subparagraph (A) or (B) of paragraph 
     (1) that is the listed drug (as such term is used in section 
     505(j) of the Federal Food, Drug, and Cosmetic Act) or a 
     product described in clause (ii) of subparagraph (B), with 
     respect to an authorized generic drug, in applying the 
     provisions of this part, such authorized generic drug and 
     such listed drug or such product shall be treated as the same 
     qualifying single source drug.
       ``(B) Authorized generic drug defined.--For purposes of 
     this paragraph, the term `authorized generic drug' means--
       ``(i) in the case of a drug, an authorized generic drug (as 
     such term is defined in section 505(t)(3) of the Federal 
     Food, Drug, and Cosmetic Act); and
       ``(ii) in the case of a biological product, a product 
     that--

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

       ``(3) Exclusions.--In this part, the term `qualifying 
     single source drug' does not include any of the following:
       ``(A) Certain orphan drugs.--A drug that is designated as a 
     drug for only one rare disease or condition under section 526 
     of the Federal Food, Drug, and Cosmetic Act and for which the 
     only approved indication (or indications) is for such disease 
     or condition.
       ``(B) Low spend medicare drugs.--A drug or biological 
     product with respect to which the total expenditures under 
     parts B and D of title XVIII, as determined by the Secretary 
     in accordance with subsection (d)(3)(B)--
       ``(i) with respect to initial price applicability year 
     2026, is less than, during the period beginning on June 1, 
     2022, and ending on May 31, 2023, $200,000,000;
       ``(ii) with respect to initial price applicability year 
     2027, is less than, during the most recent 12-month period 
     applicable under subparagraphs (A) and (B) of subsection 
     (d)(1) for such year, the dollar amount specified in clause 
     (i) increased by the annual percentage increase in the 
     consumer price index for all urban consumers (all items; 
     United States city average) for the period beginning on June 
     1, 2023, and ending on September 30, 2024; or
       ``(iii) with respect to a subsequent initial price 
     applicability year, is less than, during the most recent 12-
     month period applicable under subparagraphs (A) and (B) of 
     subsection (d)(1) for such year, the dollar amount specified 
     in this subparagraph for the previous initial price 
     applicability year increased by the annual percentage 
     increase in such consumer price index for the 12-month period 
     ending on September 30 of the year prior to the year of the 
     selected drug publication date with respect to such 
     subsequent initial price applicability year.
       ``(C) Plasma-derived products.--A biological product that 
     is derived from human whole blood or plasma.

     ``SEC. 1193. MANUFACTURER AGREEMENTS.

       ``(a) In General.--For purposes of section 1191(a)(2), the 
     Secretary shall enter into agreements with manufacturers of 
     selected drugs with respect to a price applicability period, 
     by not later than February 28 following the selected drug 
     publication date with respect to such selected drug, under 
     which--
       ``(1) during the negotiation period for the initial price 
     applicability year for the selected drug, the Secretary and 
     the manufacturer, in accordance with section 1194, negotiate 
     to determine (and, by not later than the last date of such 
     period, agree to) a maximum fair price for such selected drug 
     of the manufacturer in order for the manufacturer to provide 
     access to such price--
       ``(A) to maximum fair price eligible individuals who with 
     respect to such drug are described in subparagraph (A) of 
     section 1191(c)(2) and are dispensed such drug (and to 
     pharmacies, mail order services, and other dispensers, with 
     respect to such maximum fair price eligible individuals who 
     are dispensed such drugs) during, subject to paragraph (2), 
     the price applicability period; and
       ``(B) to hospitals, physicians, and other providers of 
     services and suppliers with respect to maximum fair price 
     eligible individuals who with respect to such drug are 
     described in subparagraph (B) of such section and are 
     furnished or administered such drug during, subject to 
     paragraph (2), the price applicability period;
       ``(2) the Secretary and the manufacturer shall, in 
     accordance with section 1194, renegotiate (and, by not later 
     than the last date of the period of renegotiation, agree to) 
     the maximum fair price for such drug, in order for the 
     manufacturer to provide access to such maximum fair price (as 
     so renegotiated)--
       ``(A) to maximum fair price eligible individuals who with 
     respect to such drug are described in subparagraph (A) of 
     section 1191(c)(2) and are dispensed such drug (and to 
     pharmacies, mail order services, and other dispensers, with 
     respect to such maximum fair price eligible individuals who 
     are dispensed such drugs) during any year during the price 
     applicability period (beginning after such renegotiation) 
     with respect to such selected drug; and
       ``(B) to hospitals, physicians, and other providers of 
     services and suppliers with respect to maximum fair price 
     eligible individuals who with respect to such drug are 
     described in subparagraph (B) of such section and are 
     furnished or administered such drug during any year described 
     in subparagraph (A);
       ``(3) subject to subsection (d), access to the maximum fair 
     price (including as renegotiated pursuant to paragraph (2)), 
     with respect to such a selected drug, shall be provided by 
     the manufacturer to--
       ``(A) maximum fair price eligible individuals, who with 
     respect to such drug are described in subparagraph (A) of 
     section 1191(c)(2), at the pharmacy, mail order service, or 
     other dispenser at the point-of-sale of such drug (and shall 
     be provided by the manufacturer to the pharmacy, mail order 
     service, or other dispenser, with respect to such maximum 
     fair price eligible individuals who are dispensed such 
     drugs), as described in paragraph (1)(A) or (2)(A), as 
     applicable; and
       ``(B) hospitals, physicians, and other providers of 
     services and suppliers with respect to maximum fair price 
     eligible individuals who with respect to such drug are 
     described in subparagraph (B) of such section and are 
     furnished or administered such drug, as described in 
     paragraph (1)(B) or (2)(B), as applicable;
       ``(4) the manufacturer submits to the Secretary, in a form 
     and manner specified by the Secretary, for the negotiation 
     period for the price applicability period (and, if 
     applicable, before any period of renegotiation pursuant to 
     section 1194(f)) with respect to such drug--
       ``(A) information on the non-Federal average manufacturer 
     price (as defined in section 8126(h)(5) of title 38, United 
     States Code) for the drug for the applicable year or period; 
     and
       ``(B) information that the Secretary requires to carry out 
     the negotiation (or renegotiation process) under this part; 
     and
       ``(5) the manufacturer complies with requirements 
     determined by the Secretary to be necessary for purposes of 
     administering the program and monitoring compliance with the 
     program.
       ``(b) Agreement in Effect Until Drug Is No Longer a 
     Selected Drug.--An agreement entered into under this section 
     shall be effective, with respect to a selected drug, until 
     such drug is no longer considered a selected drug under 
     section 1192(c).
       ``(c) Confidentiality of Information.--Information 
     submitted to the Secretary under this part by a manufacturer 
     of a selected drug that is proprietary information of such 
     manufacturer (as determined by the Secretary) shall be used 
     only by the Secretary or disclosed to and used by the 
     Comptroller General of the United States for purposes of 
     carrying out this part.
       ``(d) Nonduplication With 340B Ceiling Price.--Under an 
     agreement entered into under this section, the manufacturer 
     of a selected drug--
       ``(1) shall not be required to provide access to the 
     maximum fair price under subsection (a)(3), with respect to 
     such selected drug and maximum fair price eligible 
     individuals who are eligible to be furnished, administered, 
     or dispensed such selected drug at a covered entity described 
     in section 340B(a)(4) of the Public Health Service Act, to 
     such covered entity if such selected drug is subject to an 
     agreement described in section 340B(a)(1) of such Act and the 
     ceiling price (defined in section 340B(a)(1) of such Act) is 
     lower than the maximum fair price for such selected drug; and
       ``(2) shall be required to provide access to the maximum 
     fair price to such covered entity with respect to maximum 
     fair price eligible individuals who are eligible to be 
     furnished, administered, or dispensed such selected drug at 
     such entity at such ceiling price in a nonduplicated amount 
     to the ceiling price if such maximum fair price is below the 
     ceiling price for such selected drug.

     ``SEC. 1194. NEGOTIATION AND RENEGOTIATION PROCESS.

       ``(a) In General.--For purposes of this part, under an 
     agreement under section 1193 between the Secretary and a 
     manufacturer of a selected drug (or selected drugs), with 
     respect to the period for which such agreement is in effect 
     and in accordance with subsections (b), (c), and (d), the 
     Secretary and the manufacturer--
       ``(1) shall during the negotiation period with respect to 
     such drug, in accordance with this section, negotiate a 
     maximum fair price for such drug for the purpose described in 
     section 1193(a)(1); and
       ``(2) renegotiate, in accordance with the process specified 
     pursuant to subsection (f), such maximum fair price for such 
     drug for the purpose described in section 1193(a)(2) if such 
     drug is a renegotiation-eligible drug under such subsection.
       ``(b) Negotiation Process Requirements.--
       ``(1) Methodology and process.--The Secretary shall develop 
     and use a consistent methodology and process, in accordance 
     with paragraph (2), for negotiations under subsection (a) 
     that aims to achieve the lowest maximum fair price for each 
     selected drug.
       ``(2) Specific elements of negotiation process.--As part of 
     the negotiation process under this section, with respect to a 
     selected drug and the negotiation period with respect to the 
     initial price applicability year with respect to such drug, 
     the following shall apply:

[[Page H7584]]

       ``(A) Submission of information.--Not later than March 1 of 
     the year of the selected drug publication date, with respect 
     to the selected drug, the manufacturer of the drug shall 
     submit to the Secretary, in accordance with section 
     1193(a)(4), the information described in such section.
       ``(B) Initial offer by secretary.--Not later than the June 
     1 following the selected drug publication date, the Secretary 
     shall provide the manufacturer of the selected drug with a 
     written initial offer that contains the Secretary's proposal 
     for the maximum fair price of the drug and a concise 
     justification based on the factors described in section 
     1194(e) that were used in developing such offer.
       ``(C) Response to initial offer.--
       ``(i) In general.--Not later than 30 days after the date of 
     receipt of an initial offer under subparagraph (B), the 
     manufacturer shall either accept such offer or propose a 
     counteroffer to such offer.
       ``(ii) Counteroffer requirements.--If a manufacturer 
     proposes a counteroffer, such counteroffer--

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

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

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

       ``(2) Plan specific enrollment weighted amount.--For 
     purposes of paragraph (1)(B)(i), the plan specific enrollment 
     weighted amount for a prescription drug plan or an MA-PD plan 
     with respect to a covered Part D drug is an amount equal to 
     the product of--
       ``(A) the negotiated price of the drug under such plan 
     under part D of title XVIII, net of all price concessions 
     received by such plan or pharmacy benefit managers on behalf 
     of such plan, for the most recent year for which data is 
     available; and
       ``(B) a fraction--
       ``(i) the numerator of which is the total number of 
     individuals enrolled in such plan in such year; and
       ``(ii) the denominator of which is the total number of 
     individuals enrolled in a prescription drug plan or an MA-PD 
     plan in such year.
       ``(3) Applicable percent described.--For purposes of this 
     subsection, the applicable percent described in this 
     paragraph is the following:
       ``(A) Short-monopoly drugs and vaccines.--With respect to a 
     selected drug (other than an extended-monopoly drug and a 
     long-monopoly drug), 75 percent.
       ``(B) Extended-monopoly drugs.--With respect to an 
     extended-monopoly drug, 65 percent.
       ``(C) Long-monopoly drugs.--With respect to a long-monopoly 
     drug, 40 percent.
       ``(4) Extended-monopoly drug defined.--
       ``(A) In general.--In this part, subject to subparagraph 
     (B), the term `extended-monopoly drug' means, with respect to 
     an initial price applicability year, a selected drug for 
     which at least 12 years, but fewer than 16 years, have 
     elapsed since the date of approval of such drug under section 
     505(c) of the Federal Food, Drug, and Cosmetic Act or since 
     the date of licensure of such drug under section 351(a) of 
     the Public Health Service Act, as applicable.
       ``(B) Exclusions.--The term `extended-monopoly drug' shall 
     not include any of the following:
       ``(i) A vaccine that is licensed under section 351 of the 
     Public Health Service Act and marketed pursuant to such 
     section.
       ``(ii) A selected drug for which a manufacturer had an 
     agreement under this part with the Secretary with respect to 
     an initial price applicability year that is before 2030.
       ``(C) Clarification.--Nothing in subparagraph (B)(ii) shall 
     limit the transition of a selected drug described in 
     paragraph (3)(A) to a long-monopoly drug if the selected drug 
     meets the definition of a long-monopoly drug.
       ``(5) Long-monopoly drug defined.--
       ``(A) In general.--In this part, subject to subparagraph 
     (B), the term `long-monopoly drug' means, with respect to an 
     initial price applicability year, a selected drug for which 
     at least 16 years have elapsed since the date of approval of 
     such drug under section 505(c) of the Federal Food, Drug, and 
     Cosmetic Act or since the date of licensure of such drug 
     under section 351(a) of the Public Health Service Act, as 
     applicable.
       ``(B) Exclusion.--The term `long-monopoly drug' shall not 
     include a vaccine that is licensed under section 351 of the 
     Public Health Service Act and marketed pursuant to such 
     section.
       ``(6) Average non-federal average manufacturer price.--In 
     this part, the term `average non-Federal average manufacturer 
     price' means the average of the non-Federal average 
     manufacturer price (as defined in section 8126(h)(5) of title 
     38, United States Code) for the 4 calendar quarters of the 
     year involved.
       ``(d) Temporary Floor for Small Biotech Drugs.--In the case 
     of a selected drug that is a qualifying single source drug 
     described in section 1192(d)(2) and with respect to which the 
     first initial price applicability year of the price 
     applicability period with respect to such drug is 2029 or 
     2030, the maximum fair price negotiated under this section 
     for such drug for such initial price applicability year may 
     not be less than 66 percent of the average non-Federal 
     average manufacturer price for such drug (as defined in 
     subsection (c)(6)) for 2021 (or, in the case that there is 
     not an average non-Federal average manufacturer price 
     available for such drug for 2021, for the first full year 
     following the market entry for such drug), increased by the 
     percentage increase in the consumer price index for all urban 
     consumers (all items; United States city average) from 
     September 2021 (or December of such first full year following 
     the market entry), as applicable, to September of the year 
     prior to the selected drug publication date with respect to 
     the initial price applicability year.
       ``(e) Factors.--For purposes of negotiating the maximum 
     fair price of a selected drug under this part with the 
     manufacturer of the drug, the Secretary shall consider the 
     following factors, as applicable to the drug, as the basis 
     for determining the offers and counteroffers under subsection 
     (b) for the drug:
       ``(1) Manufacturer-specific data.--The following data, with 
     respect to such selected drug, as submitted by the 
     manufacturer:
       ``(A) Research and development costs of the manufacturer 
     for the drug and the extent to which the manufacturer has 
     recouped research and development costs.
       ``(B) Current unit costs of production and distribution of 
     the drug.
       ``(C) Prior Federal financial support for novel therapeutic 
     discovery and development with respect to the drug.
       ``(D) Data on pending and approved patent applications, 
     exclusivities recognized by the Food and Drug Administration, 
     and applications and approvals under section 505(c) of the 
     Federal Food, Drug, and Cosmetic Act or section 351(a) of the 
     Public Health Service Act for the drug.
       ``(E) Market data and revenue and sales volume data for the 
     drug in the United States.
       ``(2) Evidence about alternative treatments.--The following 
     evidence, as available, with respect to such selected drug 
     and therapeutic alternatives to such drug:
       ``(A) The extent to which such drug represents a 
     therapeutic advance as compared to existing therapeutic 
     alternatives and the costs of such existing therapeutic 
     alternatives.
       ``(B) Prescribing information approved by the Food and Drug 
     Administration for such drug and therapeutic alternatives to 
     such drug.
       ``(C) Comparative effectiveness of such drug and 
     therapeutic alternatives to such drug, taking into 
     consideration the effects of such drug

[[Page H7585]]

     and therapeutic alternatives to such drug on specific 
     populations, such as individuals with disabilities, the 
     elderly, the terminally ill, children, and other patient 
     populations.
       ``(D) The extent to which such drug and therapeutic 
     alternatives to such drug address unmet medical needs for a 
     condition for which treatment or diagnosis is not addressed 
     adequately by available therapy.
     In using evidence described in subparagraph (C), the 
     Secretary shall not use evidence from comparative clinical 
     effectiveness research in a manner that treats extending the 
     life of an elderly, disabled, or terminally ill individual as 
     of lower value than extending the life of an individual who 
     is younger, nondisabled, or not terminally ill.
       ``(f) Renegotiation Process.--
       ``(1) In general.--In the case of a renegotiation-eligible 
     drug (as defined in paragraph (2)) that is selected under 
     paragraph (3), the Secretary shall provide for a process of 
     renegotiation (for years (beginning with 2028) during the 
     price applicability period, with respect to such drug) of the 
     maximum fair price for such drug consistent with paragraph 
     (4).
       ``(2) Renegotiation-eligible drug defined.--In this 
     section, the term `renegotiation-eligible drug' means a 
     selected drug that is any of the following:
       ``(A) Addition of new indication.--A selected drug for 
     which a new indication is added to the drug.
       ``(B) Change of status to an extended-monopoly drug.--A 
     selected drug that--
       ``(i) is not an extended-monopoly or a long-monopoly drug; 
     and
       ``(ii) for which there is a change in status to that of an 
     extended-monopoly drug.
       ``(C) Change of status to a long-monopoly drug.--A selected 
     drug that--
       ``(i) is not a long-monopoly drug; and
       ``(ii) for which there is a change in status to that of a 
     long-monopoly drug.
       ``(D) Material changes.--A selected drug for which the 
     Secretary determines there has been a material change of any 
     of the factors described in paragraph (1) or (2) of 
     subsection (e).
       ``(3) Selection of drugs for renegotiation.--For each year 
     (beginning with 2028), the Secretary shall select among 
     renegotiation-eligible drugs for renegotiation as follows:
       ``(A) All extended-monopoly negotiation-eligible drugs.--
     The Secretary shall select all renegotiation-eligible drugs 
     described in paragraph (2)(B).
       ``(B) All long-monopoly negotiation-eligible drugs.--The 
     Secretary shall select all renegotiation-eligible drugs 
     described in paragraph (2)(C).
       ``(C) Remaining drugs.--Among the remaining renegotiation-
     eligible drugs described in subparagraphs (A) and (D) of 
     paragraph (2), the Secretary shall select renegotiation-
     eligible drugs for which the Secretary expects renegotiation 
     is likely to result in a significant change in the maximum 
     fair price otherwise negotiated.
       ``(4) Renegotiation process.--
       ``(A) In general.--The Secretary shall specify the process 
     for renegotiation of maximum fair prices with the 
     manufacturer of a renegotiation-eligible drug selected for 
     renegotiation under this subsection.
       ``(B) Consistent with negotiation process.--The process 
     specified under subparagraph (A) shall, to the extent 
     practicable, be consistent with the methodology and process 
     established under subsection (b) and in accordance with 
     subsections (c), (d), and (e), and for purposes of applying 
     subsections (c)(1)(A) and (d), the reference to the first 
     initial price applicability year of the price applicability 
     period with respect to such drug shall be treated as the 
     first initial price applicability year of such period for 
     which the maximum fair price established pursuant to such 
     renegotiation applies, including for applying subsection 
     (c)(3)(B) in the case of renegotiation-eligible drugs 
     described in paragraph (3)(A) of this subsection and 
     subsection (c)(3)(C) in the case of renegotiation-eligible 
     drugs described in paragraph (3)(B) of this subsection.
       ``(5) Clarification.--A renegotiation-eligible drug for 
     which the Secretary makes a determination described in 
     section 1192(c)(1) before or during the period of 
     renegotiation shall not be subject to the renegotiation 
     process under this section.
       ``(g) Clarification.--The maximum fair price for a selected 
     drug described in subparagraph (A) or (B) of paragraph (1) 
     shall take effect no later than the first day of the first 
     calendar quarter that begins after the date described in 
     subparagraph (A) or (B), as applicable.

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

       ``(a) In General.--With respect to an initial price 
     applicability year and a selected drug with respect to such 
     year--
       ``(1) not later than November 30 of the year that is 2 
     years prior to such initial price applicability year, the 
     Secretary shall publish the maximum fair price for such drug 
     negotiated with the manufacturer of such drug under this 
     part; and
       ``(2) not later than March 1 of the year prior to such 
     initial price applicability year, the Secretary shall 
     publish, subject to section 1193(c), the explanation for the 
     maximum fair price with respect to the factors as applied 
     under section 1194(e) for such drug described in paragraph 
     (1).
       ``(b) Updates.--
       ``(1) Subsequent year maximum fair prices.--For a selected 
     drug, for each year subsequent to the first initial price 
     applicability year of the price applicability period with 
     respect to such drug, with respect to which an agreement for 
     such drug is in effect under section 1193, not later than 
     November 30 of the year that is 2 years prior to such 
     subsequent year, the Secretary shall publish the maximum fair 
     price applicable to such drug and year, which shall be--
       ``(A) subject to subparagraph (B), the amount equal to the 
     maximum fair price published for such drug for the previous 
     year, increased by the annual percentage increase in the 
     consumer price index for all urban consumers (all items; 
     United States city average) for the 12-month period ending 
     with the July immediately preceding such November 30; or
       ``(B) in the case the maximum fair price for such drug was 
     renegotiated, for the first year for which such price as so 
     renegotiated applies, such renegotiated maximum fair price.
       ``(2) Prices negotiated after deadline.--In the case of a 
     selected drug with respect to an initial price applicability 
     year for which the maximum fair price is determined under 
     this part after the date of publication under this section, 
     the Secretary shall publish such maximum fair price by not 
     later than 30 days after the date such maximum price is so 
     determined.

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

       ``(a) Administrative Duties.--For purposes of section 
     1191(a)(4), the administrative duties described in this 
     section are the following:
       ``(1) The establishment of procedures to ensure that the 
     maximum fair price for a selected drug is applied before--
       ``(A) any coverage or financial assistance under other 
     health benefit plans or programs that provide coverage or 
     financial assistance for the purchase or provision of 
     prescription drug coverage on behalf of maximum fair price 
     eligible individuals; and
       ``(B) any other discounts.
       ``(2) The establishment of procedures to compute and apply 
     the maximum fair price across different strengths and dosage 
     forms of a selected drug and not based on the specific 
     formulation or package size or package type of such drug.
       ``(3) The establishment of procedures to carry out the 
     provisions of this part, as applicable, with respect to--
       ``(A) maximum fair price eligible individuals who are 
     enrolled in a prescription drug plan under part D of title 
     XVIII or an MA-PD plan under part C of such title; and
       ``(B) maximum fair price eligible individuals who are 
     enrolled under part B of such title, including who are 
     enrolled in an MA plan under part C of such title.
       ``(4) The establishment of a negotiation process and 
     renegotiation process in accordance with section 1194.
       ``(5) The establishment of a process for manufacturers to 
     submit information described in section 1194(b)(2)(A).
       ``(6) The sharing with the Secretary of the Treasury of 
     such information as is necessary to determine the tax imposed 
     by section 5000D of the Internal Revenue Code of 1986, 
     including the application of such tax to a manufacturer, 
     producer, or importer or the determination of any date 
     described in section 5000D(c)(1) of such Code. For purposes 
     of the preceding sentence, such information shall include--
       ``(A) the date on which the Secretary receives notification 
     of any termination of an agreement under the Medicare 
     coverage gap discount program under section 1860D-14A and the 
     date on which any subsequent agreement under such program is 
     entered into;
       ``(B) the date on which the Secretary receives notification 
     of any termination of an agreement under the manufacturer 
     discount program under section 1860D-14C and the date on 
     which any subsequent agreement under such program is entered 
     into; and
       ``(C) the date on which the Secretary receives notification 
     of any termination of a rebate agreement described in section 
     1927(b) and the date on which any subsequent rebate agreement 
     described in such section is entered into.
       ``(7) The establishment of procedures for purposes of 
     applying section 1192(d)(2)(B).
       ``(b) Compliance Monitoring.--The Secretary shall monitor 
     compliance by a manufacturer with the terms of an agreement 
     under section 1193 and establish a mechanism through which 
     violations of such terms shall be reported.

     ``SEC. 1197. CIVIL MONETARY PENALTIES.

       ``(a) Violations Relating to Offering of Maximum Fair 
     Price.--Any manufacturer of a selected drug that has entered 
     into an agreement under section 1193, with respect to a year 
     during the price applicability period with respect to such 
     drug, that does not provide access to a price that is equal 
     to or less than the maximum fair price for such drug for such 
     year--
       ``(1) to a maximum fair price eligible individual who with 
     respect to such drug is described in subparagraph (A) of 
     section 1191(c)(2) and who is dispensed such drug during such 
     year (and to pharmacies, mail order services, and other 
     dispensers, with respect to such maximum fair price eligible 
     individuals who are dispensed such drugs); or
       ``(2) to a hospital, physician, or other provider of 
     services or supplier with respect to maximum fair price 
     eligible individuals who with respect to such drug is 
     described in subparagraph (B) of such section and is 
     furnished or administered such drug by such hospital, 
     physician, or provider or supplier during such year;
     shall be subject to a civil monetary penalty equal to ten 
     times the amount equal to the product of the number of units 
     of such drug so furnished, dispensed, or administered during 
     such year and the difference between the price for such drug 
     made available for such year by such manufacturer with 
     respect to such individual or hospital, physician, provider 
     of services, or supplier and the maximum fair price for such 
     drug for such year.
       ``(b) Violations of Certain Terms of Agreement.--Any 
     manufacturer of a selected drug that has entered into an 
     agreement under section 1193, with respect to a year during 
     the price applicability period with respect to such drug, 
     that is in violation of a requirement imposed pursuant to 
     section 1193(a)(5), including

[[Page H7586]]

     the requirement to submit information pursuant to section 
     1193(a)(4), shall be subject to a civil monetary penalty 
     equal to $1,000,000 for each day of such violation.
       ``(c) False Information.--Any manufacturer that knowingly 
     provides false information pursuant to section 1196(a)(7) 
     shall be subject to a civil monetary penalty equal to 
     $100,000,000 for each item of such false information.
       ``(d) Application.--The provisions of section 1128A (other 
     than subsections (a) and (b)) shall apply to a civil monetary 
     penalty under this section in the same manner as such 
     provisions apply to a penalty or proceeding under section 
     1128A(a).

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

       ``There shall be no administrative or judicial review of 
     any of the following:
       ``(1) The determination of a unit, with respect to a drug 
     or biological product, pursuant to section 1191(c)(6).
       ``(2) The selection of drugs under section 1192(b), the 
     determination of negotiation-eligible drugs under section 
     1192(d), and the determination of qualifying single source 
     drugs under section 1192(e).
       ``(3) The determination of a maximum fair price under 
     subsection (b) or (f) of section 1194.
       ``(4) The determination of renegotiation-eligible drugs 
     under section 1194(f)(2) and the selection of renegotiation-
     eligible drugs under section 1194(f)(3).''.
       (b) Application of Maximum Fair Prices and Conforming 
     Amendments.--
       (1) Under medicare.--
       (A) Application to payments under part b.--Section 
     1847A(b)(1)(B) of the Social Security Act (42 U.S.C. 1395w-
     3a(b)(1)(B)) is amended by inserting ``or in the case of such 
     a drug or biological product that is a selected drug (as 
     referred to in section 1192(c)), with respect to a price 
     applicability period (as defined in section 1191(b)(2)), 106 
     percent of the maximum fair price (as defined in section 
     1191(c)(3)) applicable for such drug and a year during such 
     period'' after ``paragraph (4)''.
       (B) Application under ma of cost-sharing for part b drugs 
     based off of negotiated price.--Section 1852(a)(1)(B)(iv) of 
     the Social Security Act (42 U.S.C. 1395w-22(a)(1)(B)(iv)) is 
     amended--
       (i) by redesignating subclause (VII) as subclause (VIII); 
     and
       (ii) by inserting after subclause (VI) the following 
     subclause:

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

       (C) Exception to part D non-interference.--Section 1860D-
     11(i) of the Social Security Act (42 U.S.C. 1395w-111(i)) is 
     amended--
       (i) in paragraph (1), by striking ``and'' at the end;
       (ii) in paragraph (2), by striking ``or institute a price 
     structure for the reimbursement of covered part D drugs.'' 
     and inserting ``, except as provided under section 1860D-
     4(b)(3)(l); and''; and
       (iii) by adding at the end the following new paragraph:
       ``(3) may not institute a price structure for the 
     reimbursement of covered part D drugs, except as provided 
     under part E of title XI.''.
       (D) Application as negotiated price under part d.--Section 
     1860D-2(d)(1) of the Social Security Act (42 U.S.C. 1395w-
     102(d)(1)) is amended--
       (i) in subparagraph (B), by inserting ``, subject to 
     subparagraph (D),'' after ``negotiated prices''; and
       (ii) by adding at the end the following new subparagraph:
       ``(D) Application of maximum fair price for selected 
     drugs.--In applying this section, in the case of a covered 
     part D drug that is a selected drug (as referred to in 
     section 1192(c)), with respect to a price applicability 
     period (as defined in section 1191(b)(2)), the negotiated 
     prices used for payment (as described in this subsection) 
     shall be no greater than the maximum fair price (as defined 
     in section 1191(c)(3)) for such drug and for each year during 
     such period plus any dispensing fees for such drug.''.
       (E) Coverage of selected drugs.--Section 1860D-4(b)(3) of 
     the Social Security Act (42 U.S.C. 1395w-104(b)(3)) is 
     amended by adding at the end the following new subparagraph:
       ``(I) Required inclusion of selected drugs.--
       ``(i) In general.--For 2026 and each subsequent year, the 
     PDP sponsor offering a prescription drug plan shall include 
     each covered part D drug that is a selected drug under 
     section 1192 for which a maximum fair price (as defined in 
     section 1191(c)(3)) is in effect with respect to the year.
       ``(ii) Clarification.--Nothing in clause (i) shall be 
     construed as prohibiting a PDP sponsor from removing such a 
     selected drug from a formulary if such removal would be 
     permitted under section 423.120(b)(5)(iv) of title 42, Code 
     of Federal Regulations (or any successor regulation).''.
       (F) Information from prescription drug plans and ma-pd 
     plans required.--
       (i) Prescription drug plans.--Section 1860D-12(b) of the 
     Social Security Act (42 U.S.C. 1395w-112(b)) is amended by 
     adding at the end the following new paragraph:
       ``(8) Provision of information related to maximum fair 
     prices.--Each contract entered into with a PDP sponsor under 
     this part with respect to a prescription drug plan offered by 
     such sponsor shall require the sponsor to provide information 
     to the Secretary as requested by the Secretary for purposes 
     of carrying out section 1194.''.
       (ii) MA-PD plans.--Section 1857(f)(3) of the Social 
     Security Act (42 U.S.C. 1395w-27(f)(3)) is amended by adding 
     at the end the following new subparagraph:
       ``(E) Provision of information related to maximum fair 
     prices.--Section 1860D-12(b)(8).''.
       (G) Conditions for coverage.--
       (i) Medicare part d.--Section 1860D-43(c) of the Social 
     Security Act (42 U.S.C. 1395w-153(c)) is amended--

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

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

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

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

       ``(V) in the case of a rebate period and a covered 
     outpatient drug that is a selected drug (as referred to in 
     section 1192(c)) during such rebate period, shall be 
     inclusive of the maximum fair price (as defined in section 
     1191(c)(3)) for such drug with respect to such period.''.

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

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

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

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

       (a) In General.--Part E of title XI of the Social Security 
     Act, as added by section 11001, is amended--
       (1) in section 1192--
       (A) in subsection (a), in the flush matter following 
     paragraph (4), by inserting ``and subsection (b)(3)'' after 
     ``the previous sentence'';
       (B) in subsection (b)--
       (i) in paragraph (1), by adding at the end the following 
     new subparagraph:
       ``(C) In the case of a biological product for which the 
     inclusion of the biological product as a selected drug on a 
     list published under subsection (a) has been delayed under 
     subsection (f)(2), remove such biological product from the 
     rankings under subparagraph (A) before making the selections 
     under subparagraph (B).''; and
       (ii) by adding at the end the following new paragraph:
       ``(3) Inclusion of delayed biological products.--Pursuant 
     to subparagraphs (B)(ii)(I) and (C)(i) of subsection (f)(2), 
     the Secretary shall select and include on the list published 
     under subsection (a) the biological products described in 
     such subparagraphs. Such biological products shall count 
     towards the required number of drugs to be selected under 
     subsection (a)(1).''; and
       (C) by adding at the end the following new subsection:
       ``(f) Special Rule To Delay Selection and Negotiation of 
     Biologics for Biosimilar Market Entry.--
       ``(1) Application.--
       ``(A) In general.--Subject to subparagraph (B), in the case 
     of a biological product that would (but for this subsection) 
     be an extended-monopoly drug (as defined in section 
     1194(c)(4)) included as a selected drug on the list published 
     under subsection (a) with respect to an initial price 
     applicability year, the rules described in paragraph (2) 
     shall apply if the Secretary determines that there is a high 
     likelihood (as described in paragraph (3)) that a biosimilar 
     biological product (for which such biological product will be 
     the reference product) will be licensed and marketed under 
     section 351(k) of the Public Health Service Act before the 
     date that is 2 years after the selected drug publication date 
     with respect to such initial price applicability year.

[[Page H7587]]

       ``(B) Request required.--
       ``(i) In general.--The Secretary shall not provide for a 
     delay under--

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

       ``(ii) Information and documents.--

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

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

       ``(II) Additional information and documents.--After the 
     Secretary has reviewed the request and materials submitted 
     under subclause (I), the manufacturer shall submit any 
     additional information and documents requested by the 
     Secretary necessary to make determinations under this 
     subsection.
       ``(III) Items described.--The items described in this 
     clause are the following:

       ``(aa) The manufacturing schedule for such biosimilar 
     biological product submitted to the Food and Drug 
     Administration during its review of the application under 
     such section 351(k).
       ``(bb) Disclosures (in filings by the manufacturer of such 
     biosimilar biological product with the Securities and 
     Exchange Commission required under section 12(b), 12(g), 
     13(a), or 15(d) of the Securities Exchange Act of 1934 about 
     capital investment, revenue expectations, and actions taken 
     by the manufacturer that are typical of the normal course of 
     business in the year (or the 2 years, as applicable) before 
     marketing of a biosimilar biological product) that pertain to 
     the marketing of such biosimilar biological product, or 
     comparable documentation that is distributed to the 
     shareholders of privately held companies.
       ``(C) Aggregation rule.--
       ``(i) In general.--All persons treated as a single employer 
     under subsection (a) or (b) of section 52 of the Internal 
     Revenue Code of 1986, or in a partnership, shall be treated 
     as one manufacturer for purposes of paragraph (2)(D)(iv).
       ``(ii) Partnership defined.--In clause (i), the term 
     `partnership' means a syndicate, group, pool, joint venture, 
     or other organization through or by means of which any 
     business, financial operation, or venture is carried on by 
     the manufacturer of the biological product and the 
     manufacturer of the biosimilar biological product.
       ``(2) Rules described.--The rules described in this 
     paragraph are the following:
       ``(A) Delayed selection and negotiation for 1 year.--If a 
     determination of high likelihood is made under paragraph (3), 
     the Secretary shall delay the inclusion of the biological 
     product as a selected drug on the list published under 
     subsection (a) until such list is published with respect to 
     the initial price applicability year that is 1 year after the 
     initial price applicability year for which the biological 
     product would have been included as a selected drug on such 
     list.
       ``(B) If not licensed and marketed during the initial 
     delay.--
       ``(i) In general.--If, during the time period between the 
     selected drug publication date on which the biological 
     product would have been included on the list as a selected 
     drug pursuant to subsection (a) but for subparagraph (A) and 
     the selected drug publication date with respect to the 
     initial price applicability year that is 1 year after the 
     initial price applicability year for which such biological 
     product would have been included as a selected drug on such 
     list, the Secretary determines that the biosimilar biological 
     product for which the manufacturer submitted the request 
     under paragraph (1)(B)(i)(II) (and for which the Secretary 
     previously made a high likelihood determination under 
     paragraph (3)) has not been licensed and marketed under 
     section 351(k) of the Public Health Service Act, the 
     Secretary shall, at the request of such manufacturer--

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

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

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

       ``(iii) Second 1-year delay.--If the Secretary determines 
     that there is a high likelihood that such biosimilar 
     biological product will be licensed and marketed (as 
     described in clause (i)(I)) and a significant amount of 
     progress has been made by the manufacturer of such biosimilar 
     biological product towards such licensure and marketing (as 
     described in clause (i)(II)), the Secretary shall delay the 
     inclusion of the biological product as a selected drug on the 
     list published under subsection (a) until the selected drug 
     publication date of such list with respect to the initial 
     price applicability year that is 2 years after the initial 
     price applicability year for which such biological product 
     would have been included as a selected drug on such list but 
     for this subsection.
       ``(C) If not licensed and marketed during the year two 
     delay.--If, during the time period between the selected drug 
     publication date of the list for which the biological product 
     would have been included as a selected drug but for 
     subparagraph (B)(iii) and the selected drug publication date 
     with respect to the initial price applicability year that is 
     2 years after the initial price applicability year for which 
     such biological product would have been included as a 
     selected drug on such list but for this subsection, the 
     Secretary determines that such biosimilar biological product 
     has not been licensed and marketed--
       ``(i) the Secretary shall include such biological product 
     as a selected drug on such list with respect to the initial 
     price applicability year that is 2 years after the initial 
     price applicability year for which such biological product 
     would have been included as a selected drug on such list; and
       ``(ii) the manufacturer of such biological product shall 
     pay a rebate under paragraph (4) with respect to the years 
     for which such manufacturer would have provided access to a 
     maximum fair price for such biological product but for this 
     subsection.
       ``(D) Limitations on delays.--
       ``(i) Limited to 2 years.--In no case shall the Secretary 
     delay the inclusion of a biological product on the list 
     published under subsection (a) for more than 2 years.
       ``(ii) Exclusion of biological products that transitioned 
     to a long-monopoly drug during the delay.--In the case of a 
     biological product for which the inclusion on the list 
     published pursuant to subsection (a) was delayed by 1 year 
     under subparagraph (A) and for which there would have been a 
     change in status to a long-monopoly drug (as defined in 
     section 1194(c)(5)) if such biological product had been a 
     selected drug, in no case may the Secretary provide for a 
     second 1-year delay under subparagraph (B)(iii).
       ``(iii) Exclusion of biological products if more than 1 
     year since licensure.--In no case shall the Secretary delay 
     the inclusion of a biological product on the list published 
     under subsection (a) if more than 1 year has elapsed since 
     the biosimilar biological product has been licensed under 
     section 351(k) of the Public Health Service Act and marketing 
     has not commenced for such biosimilar biological product.
       ``(iv) Certain manufacturers of biosimilar biological 
     products excluded.--In no case shall the Secretary delay the 
     inclusion of a biological product as a selected drug on the 
     list published under subsection (a) if Secretary determined 
     that the manufacturer of the biosimilar biological product 
     described in paragraph (1)(A)--

       ``(I) is the same as the manufacturer of the reference 
     product described in such paragraph or is treated as being 
     the same pursuant to paragraph (1)(C); or
       ``(II) has, based on information from items described in 
     paragraph (1)(B)(ii)(I)(bb), entered into any agreement 
     described in such paragraph with the manufacturer of the 
     reference product described in paragraph (1)(A) that--

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

[[Page H7588]]

       ``(4) Rebate.--
       ``(A) In general.--For purposes of subparagraphs 
     (B)(ii)(II) and (C)(ii) of paragraph (2), in the case of a 
     biological product for which the inclusion on the list under 
     subsection (a) was delayed under this subsection and for 
     which the Secretary has negotiated and entered into an 
     agreement under section 1193 with respect to such biological 
     product, the manufacturer shall be required to pay a rebate 
     to the Secretary at such time and in such manner as 
     determined by the Secretary.
       ``(B) Amount.--Subject to subparagraph (C), the amount of 
     the rebate under subparagraph (A) with respect to a 
     biological product shall be equal to the estimated amount--
       ``(i) in the case of a biological product that is a covered 
     part D drug (as defined in section 1860D-2(e)), that is the 
     sum of the products of--

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

       ``(aa) the average manufacturer price, as reported by the 
     manufacturer of such covered part D drug under section 1927 
     (or, if not reported by such manufacturer under section 1927, 
     as reported by such manufacturer to the Secretary pursuant to 
     the agreement under section 1193(a)) for such biological 
     product, with respect to each of the calendar quarters of the 
     price applicability period that would have applied but for 
     this subsection; exceeds
       ``(bb) in the initial price applicability year that would 
     have applied but for a delay under--
       ``(AA) paragraph (2)(A), the maximum fair price negotiated 
     under section 1194 for such biological product under such 
     agreement; or
       ``(BB) paragraph (2)(B)(iii), such maximum fair price, 
     increased as described in section 1195(b)(1)(A); and

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

       ``(ii) in the case of a biological product for which 
     payment may be made under part B of title XVIII, that is the 
     sum of the products of--

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

       ``(aa) the payment amount for such biological product under 
     section 1847A(b), with respect to each of the calendar 
     quarters of the price applicability period that would have 
     applied but for this subsection; exceeds
       ``(bb) in the initial price applicability year that would 
     have applied but for a delay under--
       ``(AA) paragraph (2)(A), the maximum fair price negotiated 
     under section 1194 for such biological product under such 
     agreement; or
       ``(BB) paragraph (2)(B)(iii), such maximum fair price, 
     increased as described in section 1195(b)(1)(A); and

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

       ``(C) Special rule for delayed biological products that are 
     long-monopoly drugs.--
       ``(i) In general.--In the case of a biological product with 
     respect to which a rebate is required to be paid under this 
     paragraph, if such biological product qualifies as a long-
     monopoly drug (as defined in section 1194(c)(5)) at the time 
     of its inclusion on the list published under subsection (a), 
     in determining the amount of the rebate for such biological 
     product under subparagraph (B), the amount described in 
     clause (ii) shall be substituted for the maximum fair price 
     described in clause (i)(I) or (ii)(I) of such subparagraph 
     (B), as applicable.
       ``(ii) Amount described.--The amount described in this 
     clause is an amount equal to 65 percent of the average non-
     Federal average manufacturer price for the biological product 
     for 2021 (or, in the case that there is not an average non-
     Federal average manufacturer price available for such 
     biological product for 2021, for the first full year 
     following the market entry for such biological product), 
     increased by the percentage increase in the consumer price 
     index for all urban consumers (all items; United States city 
     average) from September 2021 (or December of such first full 
     year following the market entry), as applicable, to September 
     of the year prior to the selected drug publication date with 
     respect to the initial price applicability year that would 
     have applied but for this subsection.
       ``(D) Rebate deposits.--Amounts paid as rebates under this 
     paragraph shall be deposited into--
       ``(i) in the case payment is made for such biological 
     product under part B of title XVIII, the Federal 
     Supplementary Medical Insurance Trust Fund established under 
     section 1841; and
       ``(ii) in the case such biological product is a covered 
     part D drug (as defined in section 1860D-2(e)), the Medicare 
     Prescription Drug Account under section 1860D-16 in such 
     Trust Fund.
       ``(5) Definitions of biosimilar biological product.--In 
     this subsection, the term `biosimilar biological product' has 
     the meaning given such term in section 1847A(c)(6).'';
       (2) in section 1193(a)(4)--
       (A) in the matter preceding subparagraph (A), by inserting 
     ``, and for section 1192(f),'' after ``section 1194(f))'';
       (B) in subparagraph (A), by striking ``and'' at the end;
       (C) by adding at the end the following new subparagraph:
       ``(C) information that the Secretary requires to carry out 
     section 1192(f), including rebates under paragraph (4) of 
     such section; and'';
       (3) in section 1196(a)(7), by striking ``section 
     1192(d)(2)(B)'' and inserting ``subsections (d)(2)(B) and 
     (f)(1)(C) of section 1192'';
       (4) in section 1197--
       (A) by redesignating subsections (b), (c), and (d) as 
     subsections (c), (d), and (e), respectively; and
       (B) by inserting after subsection (a) the following new 
     subsection:
       ``(b) Violations Relating to Providing Rebates.--Any 
     manufacturer that fails to comply with the rebate 
     requirements under section 1192(f)(4) shall be subject to a 
     civil monetary penalty equal to 10 times the amount of the 
     rebate the manufacturer failed to pay under such section.''; 
     and
       (5) in section 1198(b)(2), by inserting ``the application 
     of section 1192(f),'' after ``section 1192(e)''.
       (b) Conforming Amendments for Disclosure of Certain 
     Information.--Section 1927(b)(3)(D)(i) of the Social Security 
     Act (42 U.S.C. 1396r-8(b)(3)(D)(i)) is amended by striking 
     ``or to carry out section 1847B'' and inserting ``or to carry 
     out section 1847B or section 1192(f), including rebates under 
     paragraph (4) of such section''.
       (c) Implementation for 2026 Through 2028.--The Secretary of 
     Health and Human Services shall implement this section, 
     including the amendments made by this section, for 2026, 
     2027, and 2028 by program instruction or other forms of 
     program guidance.

     SEC. 11003. EXCISE TAX IMPOSED ON DRUG MANUFACTURERS DURING 
                   NONCOMPLIANCE PERIODS.

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

                    ``CHAPTER 50A--DESIGNATED DRUGS

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

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

       ``(a) In General.--There is hereby imposed on the sale by 
     the manufacturer, producer, or importer of any designated 
     drug during a day described in subsection (b) a tax in an 
     amount such that the applicable percentage is equal to the 
     ratio of--
       ``(1) such tax, divided by
       ``(2) the sum of such tax and the price for which so sold.
       ``(b) Noncompliance Periods.--A day is described in this 
     subsection with respect to a designated drug if it is a day 
     during one of the following periods:
       ``(1) The period beginning on the March 1st (or, in the 
     case of initial price applicability year 2026, the October 
     2nd) immediately following the date on which such drug is 
     included on the list published under section 1192(a) of the 
     Social Security Act and ending on the earlier of--
       ``(A) the first date on which the manufacturer of such 
     designated drug has in place an agreement described in 
     section 1193(a) of such Act with respect to such drug, or
       ``(B) the date that the Secretary of Health and Human 
     Services has made a determination described in section 
     1192(c)(1) of such Act with respect to such designated drug.
       ``(2) The period beginning on the November 2nd immediately 
     following the March 1st described in paragraph (1) (or, in 
     the case of initial price applicability year 2026, the August 
     2nd immediately following the October 2nd described in such 
     paragraph) and ending on the earlier of--
       ``(A) the first date on which the manufacturer of such 
     designated drug and the Secretary of Health and Human 
     Services have agreed to a maximum fair price under an 
     agreement described in section 1193(a) of the Social Security 
     Act, or
       ``(B) the date that the Secretary of Health and Human 
     Services has made a determination described in section 
     1192(c)(1) of such Act with respect to such designated drug.
       ``(3) In the case of any designated drug which is a 
     selected drug (as defined in section 1192(c) of the Social 
     Security Act) that the Secretary of Health and Human Services 
     has selected for renegotiation under section 1194(f) of such 
     Act, the period beginning on the November 2nd of the year 
     that begins 2 years prior to the first initial price 
     applicability year of the price applicability period for 
     which the maximum fair price established pursuant to such 
     renegotiation applies and ending on the earlier of--
       ``(A) the first date on which the manufacturer of such 
     designated drug has agreed to a renegotiated maximum fair 
     price under such agreement, or
       ``(B) the date that the Secretary of Health and Human 
     Services has made a determination described in section 
     1192(c)(1) of such Act with respect to such designated drug.
       ``(4) With respect to information that is required to be 
     submitted to the Secretary of Health and Human Services under 
     an agreement described in section 1193(a) of the Social 
     Security Act, the period beginning on the date on which such 
     Secretary certifies that such information is overdue and 
     ending on the date that such information is so submitted.
       ``(c) Suspension of Tax.--
       ``(1) In general.--A day shall not be taken into account as 
     a day during a period described in subsection (b) if such day 
     is also a day during the period--
       ``(A) beginning on the first date on which--
       ``(i) the notice of terminations of all applicable 
     agreements of the manufacturer have been received by the 
     Secretary of Health and Human Services, and
       ``(ii) none of the drugs of the manufacturer of the 
     designated drug are covered by an agreement under section 
     1860D-14A or 1860D-14C of the Social Security Act, and
       ``(B) ending on the last day of February following the 
     earlier of--
       ``(i) the first day after the date described in 
     subparagraph (A) on which the manufacturer enters into any 
     subsequent applicable agreement, or
       ``(ii) the first date any drug of the manufacturer of the 
     designated drug is covered by an agreement under section 
     1860D-14A or 1860D-14C of the Social Security Act.

[[Page H7589]]

       ``(2) Applicable agreement.--For purposes of this 
     subsection, the term `applicable agreement' means the 
     following:
       ``(A) An agreement under--
       ``(i) the Medicare coverage gap discount program under 
     section 1860D-14A of the Social Security Act, or
       ``(ii) the manufacturer discount program under section 
     1860D-14C of such Act.
       ``(B) A rebate agreement described in section 1927(b) of 
     such Act.
       ``(d) Applicable Percentage.--For purposes of this section, 
     the term `applicable percentage' means--
       ``(1) in the case of sales of a designated drug during the 
     first 90 days described in subsection (b) with respect to 
     such drug, 65 percent,
       ``(2) in the case of sales of such drug during the 91st day 
     through the 180th day described in subsection (b) with 
     respect to such drug, 75 percent,
       ``(3) in the case of sales of such drug during the 181st 
     day through the 270th day described in subsection (b) with 
     respect to such drug, 85 percent, and
       ``(4) in the case of sales of such drug during any 
     subsequent day, 95 percent.
       ``(e) Definitions.--For purposes of this section--
       ``(1) Designated drug.--The term `designated drug' means 
     any negotiation-eligible drug (as defined in section 1192(d) 
     of the Social Security Act) included on the list published 
     under section 1192(a) of such Act which is manufactured or 
     produced in the United States or entered into the United 
     States for consumption, use, or warehousing.
       ``(2) United states.--The term `United States' has the 
     meaning given such term by section 4612(a)(4).
       ``(3) Other terms.--The terms `initial price applicability 
     year', `price applicability period', and `maximum fair price' 
     have the meaning given such terms in section 1191 of the 
     Social Security Act.
       ``(f) Special Rules.--
       ``(1) Coordination with rules for possessions of the united 
     states.--Rules similar to the rules of paragraphs (2) and (4) 
     of section 4132(c) shall apply for purposes of this section.
       ``(2) Anti-abuse rule.--In the case of a sale which was 
     timed for the purpose of avoiding the tax imposed by this 
     section, the Secretary may treat such sale as occurring 
     during a day described in subsection (b).
       ``(g) Exports.--Rules similar to the rules of section 
     4662(e) (other than section 4662(e)(2)(A)(ii)(II)) shall 
     apply for purposes of this chapter.
       ``(h) Regulations.--The Secretary shall prescribe such 
     regulations and other guidance as may be necessary to carry 
     out this section.''.
       (b) No Deduction for Excise Tax Payments.--Section 
     275(a)(6) of the Internal Revenue Code of 1986 is amended by 
     inserting ``50A,'' after ``46,''.
       (c) Clerical Amendment.--The table of chapters for subtitle 
     D of the Internal Revenue Code of 1986 is amended by adding 
     at the end the following new item:

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

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

     SEC. 11004. FUNDING.

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

              PART 2--PRESCRIPTION DRUG INFLATION REBATES

     SEC. 11101. MEDICARE PART B REBATE BY MANUFACTURERS.

       (a) In General.--Section 1847A of the Social Security Act 
     (42 U.S.C. 1395w-3a) is amended by redesignating subsection 
     (i) as subsection (j) and by inserting after subsection (h) 
     the following subsection:
       ``(i) Rebate by Manufacturers for Single Source Drugs and 
     Biologicals With Prices Increasing Faster Than Inflation.--
       ``(1) Requirements.--
       ``(A) Secretarial provision of information.--Not later than 
     6 months after the end of each calendar quarter beginning on 
     or after January 1, 2023, the Secretary shall, for each part 
     B rebatable drug, report to each manufacturer of such part B 
     rebatable drug the following for such calendar quarter:
       ``(i) Information on the total number of units of the 
     billing and payment code described in subparagraph (A)(i) of 
     paragraph (3) with respect to such drug and calendar quarter.
       ``(ii) Information on the amount (if any) of the excess 
     average sales price increase described in subparagraph 
     (A)(ii) of such paragraph for such drug and calendar quarter.
       ``(iii) The rebate amount specified under such paragraph 
     for such part B rebatable drug and calendar quarter.
       ``(B) Manufacturer requirement.--For each calendar quarter 
     beginning on or after January 1, 2023, the manufacturer of a 
     part B rebatable drug shall, for such drug, not later than 30 
     days after the date of receipt from the Secretary of the 
     information described in subparagraph (A) for such calendar 
     quarter, provide to the Secretary a rebate that is equal to 
     the amount specified in paragraph (3) for such drug for such 
     calendar quarter.
       ``(C) Transition rule for reporting.--The Secretary may, 
     for each part B rebatable drug, delay the timeframe for 
     reporting the information described in subparagraph (A) for 
     calendar quarters beginning in 2023 and 2024 until not later 
     than September 30, 2025.
       ``(2) Part b rebatable drug defined.--
       ``(A) In general.--In this subsection, the term `part B 
     rebatable drug' means a single source drug or biological (as 
     defined in subparagraph (D) of subsection (c)(6)), including 
     a biosimilar biological product (as defined in subparagraph 
     (H) of such subsection) but excluding a qualifying biosimilar 
     biological product (as defined in subsection (b)(8)(B)(iii)), 
     for which payment is made under this part, except such term 
     shall not include such a drug or biological--
       ``(i) if, as determined by the Secretary, the average total 
     allowed charges for such drug or biological under this part 
     for a year per individual that uses such a drug or biological 
     are less than, subject to subparagraph (B), $100; or
       ``(ii) that is a vaccine described in subparagraph (A) or 
     (B) of section 1861(s)(10).
       ``(B) Increase.--The dollar amount applied under 
     subparagraph (A)(i)--
       ``(i) for 2024, shall be the dollar amount specified under 
     such subparagraph for 2023, increased by the percentage 
     increase in the consumer price index for all urban consumers 
     (United States city average) for the 12-month period ending 
     with June of the previous year; and
       ``(ii) for a subsequent year, shall be the dollar amount 
     specified in this clause (or clause (i)) for the previous 
     year (without application of subparagraph (C)), increased by 
     the percentage increase in the consumer price index for all 
     urban consumers (United States city average) for the 12-month 
     period ending with June of the previous year.
       ``(C) Rounding.--Any dollar amount determined under 
     subparagraph (B) that is not a multiple of $10 shall be 
     rounded to the nearest multiple of $10.
       ``(3) Rebate amount.--
       ``(A) In general.--For purposes of paragraph (1), the 
     amount specified in this paragraph for a part B rebatable 
     drug assigned to a billing and payment code for a calendar 
     quarter is, subject to subparagraphs (B) and (G) and 
     paragraph (4), the estimated amount equal to the product of--
       ``(i) the total number of units determined under 
     subparagraph (B) for the billing and payment code of such 
     drug; and
       ``(ii) the amount (if any) by which--

       ``(I) the amount equal to--

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

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

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

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

       ``(C) Determination of inflation-adjusted payment amount.--
     The inflation-adjusted payment amount determined under this 
     subparagraph for a part B rebatable drug for a calendar 
     quarter is--
       ``(i) the payment amount for the billing and payment code 
     for such drug in the payment amount benchmark quarter (as 
     defined in subparagraph (D)); increased by
       ``(ii) the percentage by which the rebate period CPI-U (as 
     defined in subparagraph (F)) for the calendar quarter exceeds 
     the benchmark period CPI-U (as defined in subparagraph (E)).
       ``(D) Payment amount benchmark quarter.--The term `payment 
     amount benchmark quarter' means the calendar quarter 
     beginning July 1, 2021.
       ``(E) Benchmark period cpi-u.--The term `benchmark period 
     CPI-U' means the consumer price index for all urban consumers 
     (United States city average) for January 2021.
       ``(F) Rebate period cpi-u.--The term `rebate period CPI-U' 
     means, with respect to a calendar quarter described in 
     subparagraph (C), the greater of the benchmark period CPI-U 
     and the consumer price index for all urban consumers (United 
     States city average) for the first month of the calendar 
     quarter that is two calendar quarters prior to such described 
     calendar quarter.
       ``(G) Reduction or waiver for shortages and severe supply 
     chain disruptions.--The Secretary shall reduce or waive the 
     amount under subparagraph (A) with respect to a part B 
     rebatable drug and a calendar quarter--
       ``(i) in the case of a part B rebatable drug that is 
     described as currently in shortage on the shortage list in 
     effect under section 506E of the Federal Food, Drug, and 
     Cosmetic Act at any point during the calendar quarter; or
       ``(ii) in the case of a biosimilar biological product, when 
     the Secretary determines there is a severe supply chain 
     disruption during the calendar quarter, such as that caused 
     by a natural disaster or other unique or unexpected event.
       ``(4) Special treatment of certain drugs and exemption.--
       ``(A) Subsequently approved drugs.--In the case of a part B 
     rebatable drug first approved or licensed by the Food and 
     Drug Administration

[[Page H7590]]

     after December 1, 2020, clause (i) of paragraph (3)(C) shall 
     be applied as if the term `payment amount benchmark quarter' 
     were defined under paragraph (3)(D) as the third full 
     calendar quarter after the day on which the drug was first 
     marketed and clause (ii) of paragraph (3)(C) shall be applied 
     as if the term `benchmark period CPI-U' were defined under 
     paragraph (3)(E) as if the reference to `January 2021' under 
     such paragraph were a reference to `the first month of the 
     first full calendar quarter after the day on which the drug 
     was first marketed'.
       ``(B) Timeline for provision of rebates for subsequently 
     approved drugs.--In the case of a part B rebatable drug first 
     approved or licensed by the Food and Drug Administration 
     after December 1, 2020, paragraph (1)(B) shall be applied as 
     if the reference to `January 1, 2023' under such paragraph 
     were a reference to `the later of the 6th full calendar 
     quarter after the day on which the drug was first marketed or 
     January 1, 2023'.
       ``(C) Selected drugs.--In the case of a part B rebatable 
     drug that is a selected drug (as defined in section 1192(c)) 
     with respect to a price applicability period (as defined in 
     section 1191(b)(2)), in the case such drug is no longer 
     considered to be a selected drug under section 1192(c), for 
     each applicable period (as defined under subsection (g)(7)) 
     beginning after the price applicability period with respect 
     to such drug, clause (i) of paragraph (3)(C) shall be applied 
     as if the term `payment amount benchmark quarter' were 
     defined under paragraph (3)(D) as the calendar quarter 
     beginning January 1 of the last year during such price 
     applicability period with respect to such selected drug and 
     clause (ii) of paragraph (3)(C) shall be applied as if the 
     term `benchmark period CPI-U' were defined under paragraph 
     (3)(E) as if the reference to `January 2021' under such 
     paragraph were a reference to `the July of the year preceding 
     such last year'.
       ``(5) Application to beneficiary coinsurance.--In the case 
     of a part B rebatable drug furnished on or after April 1, 
     2023, if the payment amount described in paragraph 
     (3)(A)(ii)(I) (or, in the case of a part B rebatable drug 
     that is a selected drug (as defined in section 1192(c)), the 
     payment amount described in subsection (b)(1)(B) for such 
     drug) for a calendar quarter exceeds the inflation adjusted 
     payment for such quarter--
       ``(A) in computing the amount of any coinsurance applicable 
     under this part to an individual to whom such drug is 
     furnished, the computation of such coinsurance shall be equal 
     to 20 percent of the inflation-adjusted payment amount 
     determined under paragraph (3)(C) for such part B rebatable 
     drug; and
       ``(B) the amount of such coinsurance for such calendar 
     quarter, as computed under subparagraph (A), shall be applied 
     as a percent, as determined by the Secretary, to the payment 
     amount that would otherwise apply under subparagraphs (B) or 
     (C) of subsection (b)(1).
       ``(6) Rebate deposits.--Amounts paid as rebates under 
     paragraph (1)(B) shall be deposited into the Federal 
     Supplementary Medical Insurance Trust Fund established under 
     section 1841.
       ``(7) Civil money penalty.--If a manufacturer of a part B 
     rebatable drug has failed to comply with the requirements 
     under paragraph (1)(B) for such drug for a calendar quarter, 
     the manufacturer shall be subject to, in accordance with a 
     process established by the Secretary pursuant to regulations, 
     a civil money penalty in an amount equal to at least 125 
     percent of the amount specified in paragraph (3) for such 
     drug for such calendar quarter. The provisions of section 
     1128A (other than subsections (a) (with respect to amounts of 
     penalties or additional assessments) and (b)) shall apply to 
     a civil money penalty under this paragraph in the same manner 
     as such provisions apply to a penalty or proceeding under 
     section 1128A(a).
       ``(8) Limitation on administrative or judicial review.--
     There shall be no administrative or judicial review of any of 
     the following:
       ``(A) The determination of units under this subsection.
       ``(B) The determination of whether a drug is a part B 
     rebatable drug under this subsection.
       ``(C) The calculation of the rebate amount under this 
     subsection.
       ``(D) The computation of coinsurance under paragraph (5) of 
     this subsection.
       ``(E) The computation of amounts paid under section 
     1833(a)(1)(EE).''.
       (b) Amounts Payable; Cost-Sharing.--Section 1833 of the 
     Social Security Act (42 U.S.C. 1395l) is amended--
       (1) in subsection (a)(1)--
       (A) in subparagraph (G), by inserting ``, subject to 
     subsection (i)(9),'' after ``the amounts paid'';
       (B) in subparagraph (S), by striking ``with respect to'' 
     and inserting ``subject to subparagraph (EE), with respect 
     to'';
       (C) by striking ``and (DD)'' and inserting ``(DD)''; and
       (D) by inserting before the semicolon at the end the 
     following: ``, and (EE) with respect to a part B rebatable 
     drug (as defined in paragraph (2) of section 1847A(i)) 
     furnished on or after April 1, 2023, for which the payment 
     amount for a calendar quarter under paragraph (3)(A)(ii)(I) 
     of such section (or, in the case of a part B rebatable drug 
     that is a selected drug (as defined in section 1192(c) for 
     which, the payment amount described in section 
     1847A(b)(1)(B)) for such drug for such quarter exceeds the 
     inflation-adjusted payment under paragraph (3)(A)(ii)(II) of 
     such section for such quarter, the amounts paid shall be 
     equal to the percent of the payment amount under paragraph 
     (3)(A)(ii)(I) of such section or section 1847A(b)(1)(B), as 
     applicable, that equals the difference between (i) 100 
     percent, and (ii) the percent applied under section 
     1847A(i)(5)(B)'';
       (2) in subsection (i), by adding at the end the following 
     new paragraph:
       ``(9) In the case of a part B rebatable drug (as defined in 
     paragraph (2) of section 1847A(i)) for which payment under 
     this subsection is not packaged into a payment for a service 
     furnished on or after April 1, 2023, under the revised 
     payment system under this subsection, in lieu of calculation 
     of coinsurance and the amount of payment otherwise applicable 
     under this subsection, the provisions of section 1847A(i)(5) 
     and paragraph (1)(EE) of subsection (a), shall, as determined 
     appropriate by the Secretary, apply under this subsection in 
     the same manner as such provisions of section 1847A(i)(5) and 
     subsection (a) apply under such section and subsection.''; 
     and
       (3) in subsection (t)(8), by adding at the end the 
     following new subparagraph:
       ``(F) Part b rebatable drugs.--In the case of a part B 
     rebatable drug (as defined in paragraph (2) of section 
     1847A(i), except if such drug does not have a copayment 
     amount as a result of application of subparagraph (E)) for 
     which payment under this part is not packaged into a payment 
     for a covered OPD service (or group of services) furnished on 
     or after April 1, 2023, and the payment for such drug under 
     this subsection is the same as the amount for a calendar 
     quarter under paragraph (3)(A)(ii)(I) of section 1847A(i), 
     under the system under this subsection, in lieu of 
     calculation of the copayment amount and the amount of payment 
     otherwise applicable under this subsection (other than the 
     application of the limitation described in subparagraph (C)), 
     the provisions of section 1847A(i)(5) and paragraph (1)(EE) 
     of subsection (a), shall, as determined appropriate by the 
     Secretary, apply under this subsection in the same manner as 
     such provisions of section 1847A(i)(5) and subsection (a) 
     apply under such section and subsection.''.
       (c) Conforming Amendments.--
       (1) To part b asp calculation.--Section 1847A(c)(3) of the 
     Social Security Act (42 U.S.C. 1395w-3a(c)(3)) is amended by 
     inserting ``subsection (i) or'' before ``section 1927''.
       (2) Excluding part b drug inflation rebate from best 
     price.--Section 1927(c)(1)(C)(ii)(I) of the Social Security 
     Act (42 U.S.C. 1396r-8(c)(1)(C)(ii)(I)) is amended by 
     inserting ``or section 1847A(i)'' after ``this section''.
       (3) Coordination with medicaid rebate information 
     disclosure.--Section 1927(b)(3)(D)(i) of the Social Security 
     Act (42 U.S.C. 1396r-8(b)(3)(D)(i)) is amended by inserting 
     ``and the rebate'' after ``the payment amount''.
       (4) Excluding part b drug inflation rebates from average 
     manufacturer price.--Section 1927(k)(1)(B)(i) of the Social 
     Security Act (42 U.S.C. 1396r-8(k)(1)(B)(i)), as amended by 
     section 11001(b)(3), is amended--
       (A) in subclause (V), by striking ``and'' at the end;
       (B) in subclause (VI), by striking the period at the end 
     and inserting a semicolon; and
       (C) by adding at the end the following new subclause:

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

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

     SEC. 11102. MEDICARE PART D REBATE BY MANUFACTURERS.

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

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

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

[[Page H7591]]

       ``(i) subject to subparagraph (B) of this paragraph, the 
     total number of units of such dosage form and strength for 
     each rebatable covered part D drug dispensed under this part 
     during the applicable period; and
       ``(ii) the amount (if any) by which--

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

       ``(B) Excluded units.--For purposes of subparagraph (A)(i), 
     beginning with plan year 2026, the Secretary shall exclude 
     from the total number of units for a dosage form and strength 
     with respect to a part D rebatable drug, with respect to an 
     applicable period, units of each dosage form and strength of 
     such part D rebatable drug for which the manufacturer 
     provides a discount under the program under section 340B of 
     the Public Health Service Act.
       ``(C) Reduction or waiver for shortages and severe supply 
     chain disruptions.--The Secretary shall reduce or waive the 
     amount under subparagraph (A) with respect to a part D 
     rebatable drug and an applicable period--
       ``(i) in the case of a part D rebatable drug that is 
     described as currently in shortage on the shortage list in 
     effect under section 506E of the Federal Food, Drug, and 
     Cosmetic Act at any point during the applicable period;
       ``(ii) in the case of a generic part D rebatable drug 
     (described in subsection (g)(1)(C)(ii)) or a biosimilar 
     (defined as a biological product licensed under section 
     351(k) of the Public Health Service Act), when the Secretary 
     determines there is a severe supply chain disruption during 
     the applicable period, such as that caused by a natural 
     disaster or other unique or unexpected event; and
       ``(iii) in the case of a generic Part D rebatable drug (as 
     so described), if the Secretary determines that without such 
     reduction or waiver, the drug is likely to be described as in 
     shortage on such shortage list during a subsequent applicable 
     period.
       ``(2) Determination of annual manufacturer price.--The 
     annual manufacturer price determined under this paragraph for 
     a dosage form and strength, with respect to a part D 
     rebatable drug and an applicable period, is the sum of the 
     products of--
       ``(A) the average manufacturer price (as defined in 
     subsection (g)(6)) of such dosage form and strength, as 
     calculated for a unit of such drug, with respect to each of 
     the calendar quarters of such period; and
       ``(B) the ratio of--
       ``(i) the total number of units of such dosage form and 
     strength reported under section 1927 with respect to each 
     such calendar quarter of such period; to
       ``(ii) the total number of units of such dosage form and 
     strength reported under section 1927 with respect to such 
     period, as determined by the Secretary.
       ``(3) Determination of inflation-adjusted payment amount.--
     The inflation-adjusted payment amount determined under this 
     paragraph for a dosage form and strength with respect to a 
     part D rebatable drug for an applicable period, subject to 
     paragraph (5), is--
       ``(A) the benchmark period manufacturer price determined 
     under paragraph (4) for such dosage form and strength with 
     respect to such drug and period; increased by
       ``(B) the percentage by which the applicable period CPI-U 
     (as defined in subsection (g)(5)) for the period exceeds the 
     benchmark period CPI-U (as defined in subsection (g)(4)).
       ``(4) Determination of benchmark period manufacturer 
     price.--The benchmark period manufacturer price determined 
     under this paragraph for a dosage form and strength, with 
     respect to a part D rebatable drug and an applicable period, 
     is the sum of the products of--
       ``(A) the average manufacturer price (as defined in 
     subsection (g)(6)) of such dosage form and strength, as 
     calculated for a unit of such drug, with respect to each of 
     the calendar quarters of the payment amount benchmark period 
     (as defined in subsection (g)(3)); and
       ``(B) the ratio of--
       ``(i) the total number of units reported under section 1927 
     of such dosage form and strength with respect to each such 
     calendar quarter of such payment amount benchmark period; to
       ``(ii) the total number of units reported under section 
     1927 of such dosage form and strength with respect to such 
     payment amount benchmark period.
       ``(5) Special treatment of certain drugs and exemption.--
       ``(A) Subsequently approved drugs.--In the case of a part D 
     rebatable drug first approved or licensed by the Food and 
     Drug Administration after October 1, 2021, subparagraphs (A) 
     and (B) of paragraph (4) shall be applied as if the term 
     `payment amount benchmark period' were defined under 
     subsection (g)(3) as the first calendar year beginning after 
     the day on which the drug was first marketed and subparagraph 
     (B) of paragraph (3) shall be applied as if the term 
     `benchmark period CPI-U' were defined under subsection (g)(4) 
     as if the reference to `January 2021' under such subsection 
     were a reference to `January of the first year beginning 
     after the date on which the drug was first marketed'.
       ``(B) Treatment of new formulations.--
       ``(i) In general.--In the case of a part D rebatable drug 
     that is a line extension of a part D rebatable drug that is 
     an oral solid dosage form, the Secretary shall establish a 
     formula for determining the rebate amount under paragraph (1) 
     and the inflation adjusted payment amount under paragraph (3) 
     with respect to such part D rebatable drug and an applicable 
     period, consistent with the formula applied under subsection 
     (c)(2)(C) of section 1927 for determining a rebate obligation 
     for a rebate period under such section.
       ``(ii) Line extension defined.--In this subparagraph, the 
     term `line extension' means, with respect to a part D 
     rebatable drug, a new formulation of the drug, such as an 
     extended release formulation, but does not include an abuse-
     deterrent formulation of the drug (as determined by the 
     Secretary), regardless of whether such abuse-deterrent 
     formulation is an extended release formulation.
       ``(C) Selected drugs.--In the case of a part D rebatable 
     drug that is a selected drug (as defined in section 1192(c)) 
     with respect to a price applicability period (as defined in 
     section 1191(b)(2)), in the case such drug is no longer 
     considered to be a selected drug under section 1192(c), for 
     each applicable period (as defined under subsection (g)(7)) 
     beginning after the price applicability period with respect 
     to such drug, subparagraphs (A) and (B) of paragraph (4) 
     shall be applied as if the term `payment amount benchmark 
     period' were defined under subsection (g)(3) as the last year 
     beginning during such price applicability period with respect 
     to such selected drug and subparagraph (B) of paragraph (3) 
     shall be applied as if the term `benchmark period CPI-U' were 
     defined under subsection (g)(4) as if the reference to 
     `January 2021' under such subsection were a reference to 
     `January of the last year beginning during such price 
     applicability period with respect to such drug'.
       ``(6) Reconciliation in case of revised information.--The 
     Secretary shall provide for a method and process under which, 
     in the case where a PDP sponsor of a prescription drug plan 
     or an MA organization offering an MA-PD plan submits 
     revisions to the number of units of a rebatable covered part 
     D drug dispensed, the Secretary determines, pursuant to such 
     revisions, adjustments, if any, to the calculation of the 
     amount specified in this subsection for a dosage form and 
     strength with respect to such part D rebatable drug and an 
     applicable period and reconciles any overpayments or 
     underpayments in amounts paid as rebates under this 
     subsection. Any identified underpayment shall be rectified by 
     the manufacturer not later than 30 days after the date of 
     receipt from the Secretary of information on such 
     underpayment.
       ``(c) Rebate Deposits.--Amounts paid as rebates under 
     subsection (b) shall be deposited into the Medicare 
     Prescription Drug Account in the Federal Supplementary 
     Medical Insurance Trust Fund established under section 1841.
       ``(d) Information.--For purposes of carrying out this 
     section, the Secretary shall use information submitted by--
       ``(1) manufacturers under section 1927(b)(3);
       ``(2) States under section 1927(b)(2)(A); and
       ``(3) PDP sponsors of prescription drug plans and MA 
     organization offering MA-PD plans under this part.
       ``(e) Civil Money Penalty.--If a manufacturer of a part D 
     rebatable drug has failed to comply with the requirement 
     under subsection (a)(2) with respect to such drug for an 
     applicable period, the manufacturer shall be subject to a 
     civil money penalty in an amount equal to 125 percent of the 
     amount specified in subsection (b) for such drug for such 
     period. The provisions of section 1128A (other than 
     subsections (a) (with respect to amounts of penalties or 
     additional assessments) and (b)) shall apply to a civil money 
     penalty under this subsection in the same manner as such 
     provisions apply to a penalty or proceeding under section 
     1128A(a).
       ``(f) Limitation on Administrative or Judicial Review.--
     There shall be no administrative or judicial review of any of 
     the following:
       ``(1) The determination of units under this section.
       ``(2) The determination of whether a drug is a part D 
     rebatable drug under this section.
       ``(3) The calculation of the rebate amount under this 
     section.
       ``(g) Definitions.--In this section:
       ``(1) Part d rebatable drug.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the term `part D rebatable drug' means, with respect to an 
     applicable period, a drug or biological described in 
     subparagraph (C) that is a covered part D drug (as such term 
     is defined under section 1860D-2(e)).
       ``(B) Exclusion.--
       ``(i) In general.--Such term shall, with respect to an 
     applicable period, not include a drug or biological if the 
     average annual total cost under this part for such period per 
     individual who uses such a drug or biological, as determined 
     by the Secretary, is less than, subject to clause (ii), $100, 
     as determined by the Secretary using the most recent data 
     available or, if data is not available, as estimated by the 
     Secretary.
       ``(ii) Increase.--The dollar amount applied under clause 
     (i)--

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

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

[[Page H7592]]

       ``(ii) a drug approved under an abbreviated new drug 
     application under section 505(j) of the Federal Food, Drug, 
     and Cosmetic Act, in the case where--

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

       ``(iii) a biological licensed under section 351 of the 
     Public Health Service Act.
       ``(2) Unit.--The term `unit' means, with respect to a part 
     D rebatable drug, the lowest dispensable amount (such as a 
     capsule or tablet, milligram of molecules, or grams) of the 
     part D rebatable drug, as reported under section 1927.
       ``(3) Payment amount benchmark period.--The term `payment 
     amount benchmark period' means the period beginning January 
     1, 2021, and ending in the month immediately prior to October 
     1, 2021.
       ``(4) Benchmark period cpi-u.--The term `benchmark period 
     CPI-U' means the consumer price index for all urban consumers 
     (United States city average) for January 2021.
       ``(5) Applicable period cpi-u.--The term `applicable period 
     CPI-U' means, with respect to an applicable period, the 
     consumer price index for all urban consumers (United States 
     city average) for the first month of such applicable period.
       ``(6) Average manufacturer price.--The term `average 
     manufacturer price' has the meaning, with respect to a part D 
     rebatable drug of a manufacturer, given such term in section 
     1927(k)(1), with respect to a covered outpatient drug of a 
     manufacturer for a rebate period under section 1927.
       ``(7) Applicable period.--The term `applicable period' 
     means a 12-month period beginning with October 1 of a year 
     (beginning with October 1, 2022).
       ``(h) Implementation for 2022, 2023, and 2024.--The 
     Secretary shall implement this section for 2022, 2023, and 
     2024 by program instruction or other forms of program 
     guidance.''.
       (b) Conforming Amendments.--
       (1) To part b asp calculation.--Section 1847A(c)(3) of the 
     Social Security Act (42 U.S.C. 1395w-3a(c)(3)), as amended by 
     section 11101(c)(1), is amended by striking ``subsection (i) 
     or section 1927'' and inserting ``subsection (i), section 
     1927, or section 1860D-14B''.
       (2) Excluding part d drug inflation rebate from best 
     price.--Section 1927(c)(1)(C)(ii)(I) of the Social Security 
     Act (42 U.S.C. 1396r-8(c)(1)(C)(ii)(I)), as amended by 
     section 11101(c)(2), is amended by striking ``or section 
     1847A(i)'' and inserting ``, section 1847A(i), or section 
     1860D-14B''.
       (3) Coordination with medicaid rebate information 
     disclosure.--Section 1927(b)(3)(D)(i) of the Social Security 
     Act (42 U.S.C. 1396r-8(b)(3)(D)(i)), as amended by sections 
     11002(b) and 11101(c)(3), is amended by striking ``or section 
     1192(f), including rebates under paragraph (4) of such 
     section'' and inserting ``, section 1192(f), including 
     rebates under paragraph (4) of such section, or section 
     1860D-14B''.
       (4) Excluding part d drug inflation rebates from average 
     manufacturer price.--Section 1927(k)(1)(B)(i) of the Social 
     Security Act (42 U.S.C. 1396r-8(k)(1)(B)(i)), as amended by 
     section 11001(b)(3) and section 11101(c)(4), is amended by 
     adding at the end the following new subclause:
       (A) in subclause (VI), by striking ``and'' at the end;
       (B) in subclause (VII), by striking the period at the end 
     and inserting a semicolon; and
       (C) by adding at the end the following new subclause:

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

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

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

     SEC. 11201. MEDICARE PART D BENEFIT REDESIGN.

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

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

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

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

       (ii) in clause (ii)--

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

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

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

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

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

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

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

       (D) in subparagraph (E), by striking ``In applying'' and 
     inserting ``For each of years 2011 through 2024, in 
     applying''.
       (b) Reinsurance Payment Amount.--Section 1860D-15(b) of the 
     Social Security Act (42 U.S.C. 1395w-115(b)) is amended--
       (1) in paragraph (1)--
       (A) by striking ``equal to 80 percent'' and inserting 
     ``equal to--
       ``(A) for a year preceding 2025, 80 percent'';
       (B) in subparagraph (A), as added by subparagraph (A), by 
     striking the period at the end and inserting ``; and''; and
       (C) by adding at the end the following new subparagraph:
       ``(B) for 2025 and each subsequent year, the sum of--
       ``(i) with respect to applicable drugs (as defined in 
     section 1860D-14C(g)(2)), an amount equal to 20 percent of 
     such allowable reinsurance costs attributable to that portion 
     of gross covered prescription drug costs as specified in 
     paragraph (3) incurred in the coverage year after such 
     individual has incurred costs that exceed the annual out-of-
     pocket threshold specified in section 1860D-2(b)(4)(B); and
       ``(ii) with respect to covered part D drugs that are not 
     applicable drugs (as so defined), an amount equal to 40 
     percent of such allowable reinsurance costs attributable to 
     that portion of gross covered prescription drug costs as 
     specified in paragraph (3) incurred in the coverage year

[[Page H7593]]

     after such individual has incurred costs that exceed the 
     annual out-of-pocket threshold specified in section 1860D-
     2(b)(4)(B).'';
       (2) in paragraph (2)--
       (A) by striking ``COSTS.--For purposes'' and inserting 
     ``Costs.--
       ``(A) In general.--Subject to subparagraph (B), for 
     purposes''; and
       (B) by adding at the end the following new subparagraph:
       ``(B) Inclusion of manufacturer discounts on applicable 
     drugs.--For purposes of applying subparagraph (A), the term 
     `allowable reinsurance costs' shall include the portion of 
     the negotiated price (as defined in section 1860D-14C(g)(6)) 
     of an applicable drug (as defined in section 1860D-14C(g)(2)) 
     that was paid by a manufacturer under the manufacturer 
     discount program under section 1860D-14C.''; and
       (3) in paragraph (3)--
       (A) in the first sentence, by striking ``For purposes'' and 
     inserting ``Subject to paragraph (2)(B), for purposes''; and
       (B) in the second sentence, by inserting ``(or, with 
     respect to 2025 and subsequent years, in the case of an 
     applicable drug, as defined in section 1860D-14C(g)(2), by a 
     manufacturer)'' after ``by the individual or under the 
     plan''.
       (c) Manufacturer Discount Program.--
       (1) In general.--Part D of title XVIII of the Social 
     Security Act (42 U.S.C. 1395w-101 through 42 U.S.C. 1395w-
     153), as amended by section 11102, is amended by inserting 
     after section 1860D-14B the following new sections:

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

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

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

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

[[Page H7594]]

       ``(i) who has not incurred costs, as determined in 
     accordance with section 1860D-2(b)(4)(C), for covered part D 
     drugs in the year that are equal to or exceed the annual out-
     of-pocket threshold specified in section 1860D-2(b)(4)(B)(i) 
     for the year, 90 percent of the negotiated price of such 
     drug; and
       ``(ii) who has incurred such costs, as so determined, in 
     the year that are equal to or exceed such threshold for the 
     year, 80 percent of the negotiated price of such drug.
       ``(B) Phase-in for certain drugs dispensed to lis 
     beneficiaries.--
       ``(i) In general.--In the case of an applicable drug of a 
     specified manufacturer (as defined in clause (ii)) that is 
     marketed as of the date of enactment of this subparagraph and 
     dispensed for an applicable beneficiary who is a subsidy 
     eligible individual (as defined in section 1860D-14(a)(3)), 
     the term `discounted price' means the specified LIS percent 
     (as defined in clause (iii)) of the negotiated price of the 
     applicable drug of the manufacturer.
       ``(ii) Specified manufacturer.--

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

       ``(aa) the manufacturer had a coverage gap discount 
     agreement under section 1860D-14A;
       ``(bb) the total expenditures for all of the specified 
     drugs of the manufacturer covered by such agreement or 
     agreements for such year and covered under this part during 
     such year represented less than 1.0 percent of the total 
     expenditures under this part for all covered Part D drugs 
     during such year; and
       ``(cc) the total expenditures for all of the specified 
     drugs of the manufacturer that are single source drugs and 
     biological products for which payment may be made under part 
     B during such year represented less than 1.0 percent of the 
     total expenditures under part B for all drugs or biological 
     products for which payment may be made under such part during 
     such year.

       ``(II) Specified drugs.--

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

       ``With respect to covered part D drugs that would be 
     applicable drugs (as defined in section 1860D-14C(g)(2)) but 
     for the application of subparagraph (B) of such section, the 
     Secretary shall provide a process whereby, in the case of an 
     applicable beneficiary (as defined in section 1860D-
     14C(g)(1)) who, with respect to a year, is enrolled in a 
     prescription drug plan or is enrolled in an MA-PD plan, has 
     not incurred costs that are equal to or exceed the annual 
     out-of-

[[Page H7595]]

     pocket threshold specified in section 1860D-2(b)(4)(B)(i), 
     and is dispensed such a drug, the Secretary (periodically and 
     on a timely basis) provides the PDP sponsor or the MA 
     organization offering the plan, a subsidy with respect to 
     such drug that is equal to 10 percent of the negotiated price 
     (as defined in section 1860D-14C(g)(6)) of such drug.''.
       (2) Sunset of medicare coverage gap discount program.--
     Section 1860D-14A of the Social Security Act (42 U.S.C. 
     1395w-114a) is amended--
       (A) in subsection (a), in the first sentence, by striking 
     ``The Secretary'' and inserting ``Subject to subsection (h), 
     the Secretary''; and
       (B) by adding at the end the following new subsection:
       ``(h) Sunset of Program.--
       ``(1) In general.--The program shall not apply with respect 
     to applicable drugs dispensed on or after January 1, 2025, 
     and, subject to paragraph (2), agreements under this section 
     shall be terminated as of such date.
       ``(2) Continued application for applicable drugs dispensed 
     prior to sunset.--The provisions of this section (including 
     all responsibilities and duties) shall continue to apply on 
     and after January 1, 2025, with respect to applicable drugs 
     dispensed prior to such date.''.
       (3) Selected drug subsidy payments from medicare 
     prescription drug account.--Section 1860D-16(b)(1) of the 
     Social Security Act (42 U.S.C. 1395w-116(b)(1)) is amended--
       (A) in subparagraph (C), by striking ``and'' at the end;
       (B) in subparagraph (D), by striking the period at the end 
     and inserting ``; and''; and
       (C) by adding at the end the following new subparagraph:
       ``(E) payments under section 1860D-14D (relating to 
     selected drug subsidy payments).''.
       (d) Medicare Part D Premium Stabilization.--
       (1) 2024 through 2029.--Section 1860D-13 of the Social 
     Security Act (42 U.S.C. 1395w-113) is amended--
       (A) in subsection (a)--
       (i) in paragraph (1)(A), by inserting ``or (8) (as 
     applicable)'' after ``paragraph (2)'';
       (ii) in paragraph (2), in the matter preceding subparagraph 
     (A), by striking ``The base'' and inserting ``Subject to 
     paragraph (8), the base'';
       (iii) in paragraph (7)--

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

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

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

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

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

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

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

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

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

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

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

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

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

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

[[Page H7596]]

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

 PART 4--CONTINUED DELAY OF IMPLEMENTATION OF PRESCRIPTION DRUG REBATE 
                                  RULE

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

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

                         PART 5--MISCELLANEOUS

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

       (a) Ensuring Treatment of Cost-sharing and Deductible Is 
     Consistent With Treatment of Vaccines Under Medicare Part 
     B.--Section 1860D-2 of the Social Security Act (42 U.S.C. 
     1395w-102), as amended by sections 11201 and 11202, is 
     amended--
       (1) in subsection (b)--
       (A) in paragraph (1)(A), by striking ``The coverage'' and 
     inserting ``Subject to paragraph (8), the coverage'';
       (B) in paragraph (2)--
       (i) in subparagraph (A), by inserting ``and paragraph (8)'' 
     after ``and (E)'';
       (ii) in subparagraph (C)(i), in the matter preceding 
     subclause (I), by striking ``paragraph (4)'' and inserting 
     ``paragraphs (4) and (8)''; and
       (iii) in subparagraph (D)(i), in the matter preceding 
     subclause (I), by striking ``paragraph (4)'' and inserting 
     ``paragraphs (4) and (8)'';

[[Page H7597]]

       (C) in paragraph (3)(A), in the matter preceding clause 
     (i), by striking ``and (4)'' and inserting ``(4), and (8)'';
       (D) in paragraph (4)(A)(i), by striking ``The coverage'' 
     and inserting ``Subject to paragraph (8), the coverage''; and
       (E) by adding at the end the following new paragraph:
       ``(8) Treatment of cost-sharing for adult vaccines 
     recommended by the advisory committee on immunization 
     practices consistent with treatment of vaccines under part 
     b.--
       ``(A) In general.--For plan years beginning on or after 
     January 1, 2023, with respect to an adult vaccine recommended 
     by the Advisory Committee on Immunization Practices (as 
     defined in subparagraph (B))--
       ``(i) the deductible under paragraph (1) shall not apply; 
     and
       ``(ii) there shall be no coinsurance or other cost-sharing 
     under this part with respect to such vaccine.
       ``(B) Adult vaccines recommended by the advisory committee 
     on immunization practices.--For purposes of this paragraph, 
     the term `adult vaccine recommended by the Advisory Committee 
     on Immunization Practices' means a covered part D drug that 
     is a vaccine licensed under section 351 of the Public Health 
     Service Act for use by adult populations and administered in 
     accordance with recommendations of the Advisory Committee on 
     Immunization Practices of the Centers for Disease Control and 
     Prevention.''; and
       (2) in subsection (c), by adding at the end the following 
     new paragraph:
       ``(5) Treatment of cost-sharing for adult vaccines 
     recommended by the advisory committee on immunization 
     practices.--The coverage is in accordance with subsection 
     (b)(8).''.
       (b) Conforming Amendments to Cost-sharing for Low-income 
     Individuals.--Section 1860D-14(a) of the Social Security Act 
     (42 U.S.C. 1395w-114(a)), as amended by section 11201, is 
     amended--
       (1) in paragraph (1)(D), in each of clauses (ii) and (iii), 
     by striking ``In the case'' and inserting ``Subject to 
     paragraph (6), in the case'';
       (2) in paragraph (2)--
       (A) in subparagraph (B), by striking ``A reduction'' and 
     inserting ``Subject to section 1860D-2(b)(8), a reduction'';
       (B) in subparagraph (D), by striking ``The substitution'' 
     and inserting ``Subject to paragraph (6), the substitution''; 
     and
       (C) in subparagraph (E), by striking ``subsection (c)'' and 
     inserting ``paragraph (6) of this subsection and subsection 
     (c)''; and
       (3) by adding at the end the following new paragraph:
       ``(6) No application of cost-sharing or deductible for 
     adult vaccines recommended by the advisory committee on 
     immunization practices.--For plan years beginning on or after 
     January 1, 2023, with respect to an adult vaccine recommended 
     by the Advisory Committee on Immunization Practices (as 
     defined in section 1860D-2(b)(8)(B))--
       ``(A) the deductible under section 1860D-2(b)(1) shall not 
     apply; and
       ``(B) there shall be no cost-sharing under this section 
     with respect to such vaccine.''.
       (c) Temporary Retrospective Subsidy.--
       (1) In general.--Section 1860D-15 of the Social Security 
     Act (42 U.S.C. 1395w-115) is amended by adding at the end the 
     following new subsection:
       ``(h) Temporary Retrospective Subsidy for Reduction in 
     Cost-sharing and Deductible for Adult Vaccines Recommended by 
     the Advisory Committee on Immunization Practices During 
     2023.--
       ``(1) In general.--In addition to amounts otherwise payable 
     under this section to a PDP sponsor of a prescription drug 
     plan or an MA organization offering an MA-PD plan, for plan 
     year 2023, the Secretary shall provide the PDP sponsor or MA 
     organization offering the plan subsidies in an amount equal 
     to the aggregate reduction in cost-sharing and deductible by 
     reason of the application of section 1860D-2(b)(8) for 
     individuals under the plan during the year.
       ``(2) Timing.--The Secretary shall provide a subsidy under 
     paragraph (1), as applicable, not later than 18 months 
     following the end of the applicable plan year.''.
       (2) Treatment as incurred costs.--Section 1860D-
     2(b)(4)(C)(iii)(I) of the Social Security Act (42 U.S.C. 
     1395w-102(b)(4)(C)(iii)(I)), as amended by section 
     11201(a)(3)(C), is amended--
       (A) in item (cc), by striking ``or'' at the end; and
       (B) by adding at the end the following new item:
       ``(dd) under section 1860D-15(h); or''.
       (d) Rule of Construction.--Nothing in this section shall be 
     construed as limiting coverage under part D of title XVIII of 
     the Social Security Act for vaccines that are not recommended 
     by the Advisory Committee on Immunization Practices.
       (e) Implementation for 2023 Through 2025.--The Secretary 
     shall implement this section, including the amendments made 
     by this section, for 2023, 2024, and 2025, by program 
     instruction or other forms of program guidance.

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

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

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

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

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

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

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

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

       Section 1860D-14(a) of the Social Security Act (42 U.S.C. 
     1395w-114(a)), as amended by sections 11201 and 11401, is 
     amended--
       (1) in the subsection heading, by striking ``Individuals'' 
     and all that follows through ``Line'' and inserting ``Certain 
     Individuals'';
       (2) in paragraph (1)--
       (A) by striking the paragraph heading and inserting 
     ``Individuals with certain low incomes''; and
       (B) in the matter preceding subparagraph (A)--
       (i) by inserting ``(or, with respect to a plan year 
     beginning on or after January 1, 2024, 150 percent)'' after 
     ``135 percent''; and
       (ii) by inserting ``(or, with respect to a plan year 
     beginning on or after January 1, 2024, paragraph (3)(E))'' 
     after ``the resources requirement described in paragraph 
     (3)(D)''; and
       (3) in paragraph (2)--
       (A) by striking the paragraph heading and inserting ``Other 
     low-income individuals''; and
       (B) in the matter preceding subparagraph (A), by striking 
     ``In the case of a subsidy'' and inserting ``With respect to 
     a plan year beginning before January 1, 2024, in the case of 
     a subsidy''.

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

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

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

[[Page H7598]]

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

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

       ``(J) vaccines described in section 1905(a)(13)(B) and the 
     administration of such vaccines; and''.
       (B) Application to alternative cost sharing.--Section 
     1916A(b)(3)(B) of the Social Security Act (42 U.S.C. 1396o-
     1(b)(3)(B)) is amended by adding at the end the following new 
     clause:
       ``(xiv) Vaccines described in section 1905(a)(13)(B) and 
     the administration of such vaccines.''.
       (3) Increased fmap for adult vaccines and their 
     administration.--Section 1905(b) of the Social Security Act 
     (42 U.S.C. 1396d(b)) is amended--
       (A) by striking ``and (5)'' and inserting ``(5)'';
       (B) by striking ``services and vaccines described in 
     subparagraphs (A) and (B) of subsection (a)(13), and 
     prohibits cost-sharing for such services and vaccines'' and 
     inserting ``services described in subsection (a)(13)(A), and 
     prohibits cost-sharing for such services'';
       (C) by striking ``medical assistance for such services and 
     vaccines'' and inserting ``medical assistance for such 
     services''; and
       (D) by inserting ``, and (6) during the first 8 fiscal 
     quarters beginning on or after the effective date of this 
     clause, in the case of a State which, as of the date of 
     enactment of the Act titled `An Act to provide for 
     reconciliation pursuant to title II of S. Con. Res. 14', 
     provides medical assistance for vaccines described in 
     subsection (a)(13)(B) and their administration and prohibits 
     cost-sharing for such vaccines, the Federal medical 
     assistance percentage, as determined under this subsection 
     and subsection (y), shall be increased by 1 percentage point 
     with respect to medical assistance for such vaccines and 
     their administration'' before the first period.
       (b) CHIP.--
       (1) Requiring coverage of adult vaccinations.--Section 
     2103(c) of the Social Security Act (42 U.S.C. 1397cc(c)) is 
     amended by adding at the end the following paragraph:
       ``(12) Required coverage of approved, recommended adult 
     vaccines and their administration.--Regardless of the type of 
     coverage elected by a State under subsection (a), if the 
     State child health plan or a waiver of such plan provides 
     child health assistance or pregnancy-related assistance (as 
     defined in section 2112) to an individual who is 19 years of 
     age or older, such assistance shall include coverage of 
     vaccines described in section 1905(a)(13)(B) and their 
     administration.''.
       (2) No cost-sharing for vaccinations.--Section 2103(e)(2) 
     of such Act (42 U.S.C. 1397cc(e)(2)) is amended by inserting 
     ``vaccines described in subsection (c)(12) (and the 
     administration of such vaccines),'' after ``in vitro 
     diagnostic products described in subsection (c)(10) (and 
     administration of such products),''.
       (c) Effective Date.--The amendments made by this section 
     take effect on the 1st day of the 1st fiscal quarter that 
     begins on or after the date that is 1 year after the date of 
     enactment of this Act and shall apply to expenditures made 
     under a State plan or waiver of such plan under title XIX of 
     the Social Security Act (42 U.S.C. 1396 through 1396w-6) or 
     under a State child health plan or waiver of such plan under 
     title XXI of such Act (42 U.S.C. 1397aa through 1397mm) on or 
     after such effective date.

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

       (a) In General.--Section 1860D-2 of the Social Security Act 
     (42 U.S.C. 1395w-102), as amended by sections 11201, 11202, 
     and 11401, is amended--
       (1) in subsection (b)--
       (A) in paragraph (1)(A), by striking ``paragraph (8)'' and 
     inserting ``paragraphs (8) and (9)'';
       (B) in paragraph (2)--
       (i) in subparagraph (A), by striking ``paragraph (8)'' and 
     inserting ``paragraphs (8) and (9)'';
       (ii) in subparagraph (C)(i), in the matter preceding 
     subclause (I), by striking ``and (8)'' and inserting ``, (8), 
     and (9)''; and
       (iii) in subparagraph (D)(i), in the matter preceding 
     subclause (I), by striking ``and (8)'' and inserting ``, (8), 
     and (9)'';
       (C) in paragraph (3)(A), in the matter preceding clause 
     (i), by striking ``and (8)'' and inserting ``(8), and (9)'';
       (D) in paragraph (4)(A)(i), by striking ``paragraph (8)'' 
     and inserting ``paragraphs (8) and (9)''; and
       (E) by adding at the end the following new paragraph:
       ``(9) Treatment of cost-sharing for covered insulin 
     products.--
       ``(A) No application of deductible.--For plan year 2023 and 
     subsequent plan years, the deductible under paragraph (1) 
     shall not apply with respect to any covered insulin product.
       ``(B) Application of cost-sharing.--
       ``(i) Plan years 2023 and 2024.--For plan years 2023 and 
     2024, the coverage provides benefits for any covered insulin 
     product, regardless of whether an individual has reached the 
     initial coverage limit under paragraph (3) or the out-of-
     pocket threshold under paragraph (4), with cost-sharing for a 
     month's supply that does not exceed the applicable copayment 
     amount.
       ``(ii) Plan year 2025 and subsequent plan years.--For a 
     plan year beginning on or after January 1, 2025, the coverage 
     provides benefits for any covered insulin product, prior to 
     an individual reaching the out-of-pocket threshold under 
     paragraph (4), with cost-sharing for a month's supply that 
     does not exceed the applicable copayment amount.
       ``(C) Covered insulin product.--In this paragraph, the term 
     `covered insulin product' means an insulin product that is a 
     covered part D drug covered under the prescription drug plan 
     or MA-PD plan that is approved under section 505 of the 
     Federal Food, Drug, and Cosmetic Act or licensed under 
     section 351 of the Public Health Service Act and marketed 
     pursuant to such approval or licensure, including any covered 
     insulin product that has been deemed to be licensed under 
     section 351 of the Public Health Service Act pursuant to 
     section 7002(e)(4) of the Biologics Price Competition and 
     Innovation Act of 2009 and marketed pursuant to such section.
       ``(D) Applicable copayment amount.--In this paragraph, the 
     term `applicable copayment amount' means, with respect to a 
     covered insulin product under a prescription drug plan or an 
     MA-PD plan dispensed--
       ``(i) during plan years 2023, 2024, and 2025, $35; and
       ``(ii) during plan year 2026 and each subsequent plan year, 
     the lesser of--

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

       ``(E) Special rule for first 3 months of 2023.--With 
     respect to a month's supply of a covered insulin product 
     dispensed during the period beginning on January 1, 2023, and 
     ending on March 31, 2023, a PDP sponsor offering a 
     prescription drug plan or an MA organization offering an MA-
     PD plan shall reimburse an enrollee within 30 days for any 
     cost-sharing paid by such enrollee that exceeds the cost-
     sharing applied by the prescription drug plan or MA-PD plan 
     under subparagraph (B)(i) at the point-of-sale for such 
     month's supply.''; and
       (2) in subsection (c), by adding at the end the following 
     new paragraph:
       ``(6) Treatment of cost-sharing for covered insulin 
     products.--The coverage is provided in accordance with 
     subsection (b)(9).''.
       (b) Conforming Amendments to Cost-sharing for Low-income 
     Individuals.--Section 1860D-14(a) of the Social Security Act 
     (42 U.S.C. 1395w-114(a)), as amended by sections 11201, 
     11401, and 11404, is amended--
       (1) in paragraph (1)--
       (A) in subparagraph (D)(iii), by adding at the end the 
     following new sentence: ``For plan year 2023 and subsequent 
     plan years, the copayment amount applicable under the 
     preceding sentence to a month's supply of a covered insulin 
     product (as defined in section 1860D-2(b)(9)(C)) dispensed to 
     the individual may not exceed the applicable copayment amount 
     for the product under the prescription drug plan or MA-PD 
     plan in which the individual is enrolled.''; and
       (B) in subparagraph (E), by inserting the following before 
     the period at the end: ``or under section 1860D-2(b)(9) in 
     the case of a covered insulin product (as defined in 
     subparagraph (C) of such section)''; and
       (2) in paragraph (2)--
       (A) in subparagraph (B), by striking ``section 1860D-
     2(b)(8)'' and inserting ``paragraphs (8) and (9) of section 
     1860D-2(b)'';
       (B) in subparagraph (D), by adding at the end the following 
     new sentence: ``For plan year 2023, the amount of the 
     coinsurance applicable under the preceding sentence to a 
     month's supply of a covered insulin product (as defined in 
     section 1860D-2(b)(9)(C)) dispensed to the individual may not 
     exceed the applicable copayment amount for the product under 
     the prescription drug plan or MA-PD plan in which the 
     individual is enrolled.''; and
       (C) in subparagraph (E), by adding at the end the following 
     new sentence: ``For plan year 2023, the amount of the 
     copayment or coinsurance applicable under the preceding 
     sentence to a month's supply of a covered insulin product (as 
     defined in section 1860D-2(b)(9)(C)) dispensed to the 
     individual may not exceed the applicable copayment amount for 
     the product under the prescription drug plan or MA-PD plan in 
     which the individual is enrolled.''.
       (c) Temporary Retrospective Subsidy.--Section 1860D-15(h) 
     of the Social Security Act (42 U.S.C. 1395w-115(h)), as added 
     by section 11401(c), is amended--
       (1) in the subsection heading, by inserting ``and Insulin'' 
     after ``Practices''; and
       (2) in paragraph (1), by striking ``section 1860D-2(b)(8)'' 
     and inserting ``paragraph (8) or (9) of section 1860D-2(b)''.
       (d) Implementation for 2023 Through 2025.--The Secretary 
     shall implement this section for plan years 2023, 2024, and 
     2025 by program instruction or other forms of program 
     guidance.
       (e) Funding.--In addition to amounts otherwise available, 
     there is appropriated to the Centers for Medicare & Medicaid 
     Services, out of any money in the Treasury not otherwise 
     appropriated, $1,500,000 for fiscal year 2022, to remain 
     available until expended, to carry out the provisions of, 
     including the amendments made by, this section.

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

       (a) Waiver of Deductible.--The first sentence of section 
     1833(b) of the Social Security Act (42 U.S.C. 1395l(b)) is 
     amended--
       (1) by striking ``and (12)'' and inserting ``(12)''; and
       (2) by inserting before the period the following: ``, and 
     (13) such deductible shall not

[[Page H7599]]

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

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

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

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

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

               Subtitle C--Affordable Care Act Subsidies

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

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

                      Subtitle D--Energy Security

     SEC. 13001. AMENDMENT OF 1986 CODE.

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

        PART 1--CLEAN ELECTRICITY AND REDUCING CARBON EMISSIONS

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

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

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

       ``(aa) an amount equal to the difference between--
       ``(AA) the amount of wages paid to such laborer or mechanic 
     during such period, and
       ``(BB) the amount of wages required to be paid to such 
     laborer or mechanic pursuant to such subparagraph during such 
     period, plus
       ``(bb) interest on the amount determined under item (aa) at 
     the underpayment rate established under section 6621 
     (determined by substituting `6 percentage points' for `3 
     percentage points' in subsection (a)(2) of such section) for 
     the period described in such item, and

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

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

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

       ``(iv) Limitation on period for payment.--Pursuant to rules 
     issued by the Secretary, in the case of a final determination 
     by the Secretary with respect to any failure by the taxpayer 
     to satisfy the requirement under subparagraph (A), 
     subparagraph (B)(i) shall not apply unless the

[[Page H7600]]

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

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

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

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

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

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

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

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

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

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

       ``(ii) Applicable percentage.--In any case in which the 
     Secretary provides an exception pursuant to clause (i), the 
     applicable percentage shall be 100 percent.
       ``(11) Special rule for qualified facility located in 
     energy community.--
       ``(A) In general.--In the case of a qualified facility 
     which is located in an energy community, the credit 
     determined under subsection (a) (determined after the 
     application of paragraphs (1) through (10), without the 
     application of paragraph (9)) shall be increased by an amount 
     equal to 10 percent of the amount so determined.
       ``(B) Energy community.--For purposes of this paragraph, 
     the term `energy community' means--
       ``(i) a brownfield site (as defined in subparagraphs (A), 
     (B), and (D)(ii)(III) of section 101(39) of the Comprehensive 
     Environmental Response, Compensation, and Liability Act of 
     1980 (42 U.S.C. 9601(39))),
       ``(ii) a metropolitan statistical area or non-metropolitan 
     statistical area which--

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

       ``(iii) a census tract--

       ``(I) in which--

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

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

       (h) Credit Reduced for Tax-exempt Bonds.--Section 45(b)(3) 
     is amended to read as follows:
       ``(3) Credit reduced for tax-exempt bonds.--The amount of 
     the credit determined under subsection (a) with respect to 
     any facility for any taxable year (determined after the 
     application of paragraphs (1) and (2)) shall be reduced by 
     the amount which is the product of the amount so determined 
     for such year and the lesser of 15 percent or a fraction--
       ``(A) the numerator of which is the sum, for the taxable 
     year and all prior taxable years, of proceeds of an issue of 
     any obligations the interest on which is exempt from tax 
     under section

[[Page H7601]]

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

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

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

     SEC. 13102. EXTENSION AND MODIFICATION OF ENERGY CREDIT.

       (a) Extension of Credit.--The following provisions of 
     section 48 are each amended by striking ``January 1, 2024'' 
     each place it appears and inserting ``January 1, 2025'':
       (1) Subsection (a)(2)(A)(i)(II).
       (2) Subsection (a)(3)(A)(ii).
       (3) Subsection (c)(1)(D).
       (4) Subsection (c)(2)(D).
       (5) Subsection (c)(3)(A)(iv).
       (6) Subsection (c)(4)(C).
       (7) Subsection (c)(5)(D).
       (b) Further Extension for Certain Energy Property.--Section 
     48(a)(3)(A)(vii) is amended by striking ``January 1, 2024'' 
     and inserting ``January 1, 2035''.
       (c) Phaseout of Credit.--Section 48(a) is amended by 
     striking paragraphs (6) and (7) and inserting the following 
     new paragraph:
       ``(6) Phaseout for certain energy property.--In the case of 
     any qualified fuel cell property, qualified small wind 
     property, or energy property described in clause (i) or 
     clause (ii) of paragraph (3)(A) the construction of which 
     begins after December 31, 2019, and which is placed in 
     service before January 1, 2022, the energy percentage 
     determined under paragraph (2) shall be equal to 26 
     percent.''.
       (d) Base Energy Percentage Amount; Phaseout of Certain 
     Energy Property.--
       (1) Base energy percentage amount.--Section 48(a) is 
     amended--
       (A) in paragraph (2)(A)--
       (i) in clause (i), by striking ``30 percent'' and inserting 
     ``6 percent'', and
       (ii) in clause (ii), by striking ``10 percent'' and 
     inserting ``2 percent'', and
       (B) in paragraph (5)(A)(ii), by striking ``30 percent'' and 
     inserting ``6 percent''.
       (2) Phaseout of certain energy property.--Section 48(a), as 
     amended by the preceding provisions of this Act, is amended 
     by adding at the end the following new paragraph:
       ``(7) Phaseout for certain energy property.--In the case of 
     any energy property described in clause (vii) of paragraph 
     (3)(A), the energy percentage determined under paragraph (2) 
     shall be equal to--
       ``(A) in the case of any property the construction of which 
     begins before January 1, 2033, and which is placed in service 
     after December 31, 2021, 6 percent,
       ``(B) in the case of any property the construction of which 
     begins after December 31, 2032, and before January 1, 2034, 
     5.2 percent, and
       ``(C) in the case of any property the construction of which 
     begins after December 31, 2033, and before January 1, 2035, 
     4.4 percent.''.
       (e) 6 Percent Credit for Geothermal.--Section 
     48(a)(2)(A)(i)(II) is amended by striking ``paragraph 
     (3)(A)(i)'' and inserting ``clause (i) or (iii) of paragraph 
     (3)(A)''.
       (f) Energy Storage Technologies; Qualified Biogas Property; 
     Microgrid Controllers; Extension of Other Property.--
       (1) In general.--Section 48(a)(3)(A) is amended by striking 
     ``or'' at the end of clause (vii), and by adding at the end 
     the following new clauses:
       ``(ix) energy storage technology,
       ``(x) qualified biogas property, or
       ``(xi) microgrid controllers,''.
       (2) Application of 6 percent credit.--Section 
     48(a)(2)(A)(i) is amended by striking ``and'' at the end of 
     subclauses (IV) and (V) and adding at the end the following 
     new subclauses:

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

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

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

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

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

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

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

       ``(ii) captures such gas for sale or productive use, and 
     not for disposal via combustion.
       ``(B) Inclusion of cleaning and conditioning property.--The 
     term `qualified biogas property' includes any property which 
     is part of such system which cleans or conditions such gas.
       ``(C) Termination.--The term `qualified biogas property' 
     shall not include any property the construction of which 
     begins after December 31, 2024.
       ``(8) Microgrid controller.--
       ``(A) In general.--The term `microgrid controller' means 
     equipment which is--
       ``(i) part of a qualified microgrid, and
       ``(ii) designed and used to monitor and control the energy 
     resources and loads on such microgrid.
       ``(B) Qualified microgrid.--The term `qualified microgrid' 
     means an electrical system which--
       ``(i) includes equipment which is capable of generating not 
     less than 4 kilowatts and not greater than 20 megawatts of 
     electricity,
       ``(ii) is capable of operating--

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

       ``(iii) is not part of a bulk-power system (as defined in 
     section 215 of the Federal Power Act (16 U.S.C. 824o)).
       ``(C) Termination.--The term `microgrid controller' shall 
     not include any property the construction of which begins 
     after December 31, 2024.''.
       (4) Denial of double benefit for qualified biogas 
     property.--Section 45(e) is amended by adding at the end the 
     following new paragraph:
       ``(12) Coordination with energy credit for qualified biogas 
     property.--The term `qualified facility' shall not include 
     any facility which produces electricity from gas produced by 
     qualified biogas property (as defined in section 48(c)(7)) if 
     a credit is allowed under section 48 with respect to such 
     property for the taxable year or any prior taxable year.''.

[[Page H7602]]

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

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

       ``(iii) the original use of which, pursuant to an 
     interconnection agreement, commences with a utility.
       ``(C) Interconnection agreement.--The term `interconnection 
     agreement' means an agreement with a utility for the purposes 
     of interconnecting the energy property owned by such taxpayer 
     to the transmission or distribution system of such utility.
       ``(D) Utility.--For purposes of this paragraph, the term 
     `utility' means the owner or operator of an electrical 
     transmission or distribution system which is subject to the 
     regulatory authority of a State or political subdivision 
     thereof, any agency or instrumentality of the United States, 
     a public service or public utility commission or other 
     similar body of any State or political subdivision thereof, 
     or the governing or ratemaking body of an electric 
     cooperative.
       ``(E) Special rule for interconnection property.--In the 
     case of expenses paid or incurred for interconnection 
     property, amounts otherwise chargeable to capital account 
     with respect to such expenses shall be reduced under rules 
     similar to the rules of section 50(c).''.
       (k) Energy Projects, Wage Requirements, and Apprenticeship 
     Requirements.--Section 48(a), as amended by the preceding 
     provisions of this Act, is amended by adding at the end the 
     following new paragraphs:
       ``(9) Increased credit amount for energy projects.--
       ``(A) In general.--
       ``(i) Rule.--In the case of any energy project which 
     satisfies the requirements of subparagraph (B), the amount of 
     the credit determined under this subsection (determined after 
     the application of paragraphs (1) through (8) and without 
     regard to this clause) shall be equal to such amount 
     multiplied by 5.
       ``(ii) Energy project defined.--For purposes of this 
     subsection, the term `energy project' means a project 
     consisting of one or more energy properties that are part of 
     a single project.
       ``(B) Project requirements.--A project meets the 
     requirements of this subparagraph if it is one of the 
     following:
       ``(i) A project with a maximum net output of less than 1 
     megawatt of electrical (as measured in alternating current) 
     or thermal energy.
       ``(ii) A project the construction of which begins before 
     the date that is 60 days after the Secretary publishes 
     guidance with respect to the requirements of paragraphs 
     (10)(A) and (11).
       ``(iii) A project which satisfies the requirements of 
     paragraphs (10)(A) and (11).
       ``(10) Prevailing wage requirements.--
       ``(A) In general.--The requirements described in this 
     subparagraph with respect to any energy project are that the 
     taxpayer shall ensure that any laborers and mechanics 
     employed by the taxpayer or any contractor or subcontractor 
     in--
       ``(i) the construction of such energy project, and
       ``(ii) for the 5-year period beginning on the date such 
     project is originally placed in service, the alteration or 
     repair of such project,
     shall be paid wages at rates not less than the prevailing 
     rates for construction, alteration, or repair of a similar 
     character in the locality in which such project is located as 
     most recently determined by the Secretary of Labor, in 
     accordance with subchapter IV of chapter 31 of title 40, 
     United States Code. Subject to subparagraph (C), for purposes 
     of any determination under paragraph (9)(A)(i) for the 
     taxable year in which the energy project is placed in 
     service, the taxpayer shall be deemed to satisfy the 
     requirement under clause (ii) at the time such project is 
     placed in service.
       ``(B) Correction and penalty related to failure to satisfy 
     wage requirements.--Rules similar to the rules of section 
     45(b)(7)(B) shall apply.
       ``(C) Recapture.--The Secretary shall, by regulations or 
     other guidance, provide for recapturing the benefit of any 
     increase in the credit allowed under this subsection by 
     reason of this paragraph with respect to any project which 
     does not satisfy the requirements under subparagraph (A) 
     (after application of subparagraph (B)) for the period 
     described in clause (ii) of subparagraph (A) (but which does 
     not cease to be investment credit property within the meaning 
     of section 50(a)). The period and percentage of such 
     recapture shall be determined under rules similar to the 
     rules of section 50(a).
       ``(11) Apprenticeship requirements.--Rules similar to the 
     rules of section 45(b)(8) shall apply.''.
       (l) Domestic Content; Phaseout for Elective Payment.--
     Section 48(a), as amended by the preceding provisions of this 
     Act, is amended by adding at the end the following new 
     paragraphs:
       ``(12) Domestic content bonus credit amount.--
       ``(A) In general.--In the case of any energy project which 
     satisfies the requirement under subparagraph (B), for 
     purposes of applying paragraph (2) with respect to such 
     property, the energy percentage shall be increased by the 
     applicable credit rate increase.
       ``(B) Requirement.--Rules similar to the rules of section 
     45(b)(9)(B) shall apply.
       ``(C) Applicable credit rate increase.--For purposes of 
     subparagraph (A), the applicable credit rate increase shall 
     be--
       ``(i) in the case of an energy project which does not 
     satisfy the requirements of paragraph (9)(B), 2 percentage 
     points, and
       ``(ii) in the case of an energy project which satisfies the 
     requirements of paragraph (9)(B), 10 percentage points.
       ``(13) Phaseout for elective payment.--In the case of a 
     taxpayer making an election under section 6417 with respect 
     to a credit under this section, rules similar to the rules of 
     section 45(b)(10) shall apply.''.
       (m) Special Rule for Property Financed by Tax-exempt 
     Bonds.--Section 48(a)(4) is amended to read as follows:
       ``(4) Special rule for property financed by tax-exempt 
     bonds.--Rules similar to the rule under section 45(b)(3) 
     shall apply for purposes of this section.''.
       (n) Treatment of Certain Contracts Involving Energy 
     Storage.--Section 7701(e) is amended--
       (1) in paragraph (3)--
       (A) in subparagraph (A)(i), by striking ``or'' at the end 
     of subclause (II), by striking ``and'' at the end of 
     subclause (III) and inserting ``or'', and by adding at the 
     end the following new subclause:

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

       (B) by adding at the end the following new subparagraph:
       ``(F) Storage facility.--For purposes of subparagraph (A), 
     the term `storage facility' means a facility which uses 
     energy storage technology within the meaning of section 
     48(c)(6).'', and
       (2) in paragraph (4), by striking ``or water treatment 
     works facility'' and inserting ``water treatment works 
     facility, or storage facility''.
       (o) Increase in Credit Rate for Energy Communities.--
     Section 48(a), as amended by the preceding provisions of this 
     Act, is amended by adding at the end the following new 
     paragraph:

[[Page H7603]]

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

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

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

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

       ``(B) Qualified low-income residential building project.--A 
     facility shall be treated as part of a qualified low-income 
     residential building project if--
       ``(i) such facility is installed on a residential rental 
     building which participates in a covered housing program (as 
     defined in section 41411(a) of the Violence Against Women Act 
     of 1994 (34 U.S.C. 12491(a)(3)), a housing assistance program 
     administered by the Department of Agriculture under title V 
     of the Housing Act of 1949, a housing program administered by 
     a tribally designated housing entity (as defined in section 
     4(22) of the Native American Housing Assistance and Self-
     Determination Act of 1996 (25 U.S.C. 4103(22))) or such other 
     affordable housing programs as the Secretary may provide, and
       ``(ii) the financial benefits of the electricity produced 
     by such facility are allocated equitably among the occupants 
     of the dwelling units of such building.
       ``(C) Qualified low-income economic benefit project.--A 
     facility shall be treated as part of a qualified low-income 
     economic benefit project if at least 50 percent of the 
     financial benefits of the electricity produced by such 
     facility are provided to households with income of--
       ``(i) less than 200 percent of the poverty line (as defined 
     in section 36B(d)(3)(A)) applicable to a family of the size 
     involved, or
       ``(ii) less than 80 percent of area median gross income (as 
     determined under section 142(d)(2)(B)).
       ``(D) Financial benefit.--For purposes of subparagraphs (B) 
     and (C), electricity acquired at a below-market rate shall 
     not fail to be taken into account as a financial benefit.
       ``(3) Eligible property.--For purposes of this section, the 
     term `eligible property' means energy property which--
       ``(A) is part of a facility described in section 45(d)(1) 
     for which an election was made under subsection (a)(5), or
       ``(B) is described in clause (i) or (vi) of subsection 
     (a)(3)(A),
     including energy storage technology (as described in 
     subsection (a)(3)(A)(ix)) installed in connection with such 
     energy property.
       ``(4) Allocations.--
       ``(A) In general.--Not later than 180 days after the date 
     of enactment of this subsection, the Secretary shall 
     establish a program to allocate amounts of environmental 
     justice solar and wind capacity limitation to qualified solar 
     and wind facilities. In establishing such program and to 
     carry out the purposes of this subsection, the Secretary 
     shall provide procedures to allow for an efficient allocation 
     process, including, when determined appropriate, 
     consideration of multiple projects in a single application if 
     such projects will be placed in service by a single taxpayer.
       ``(B) Limitation.--The amount of environmental justice 
     solar and wind capacity limitation allocated by the Secretary 
     under subparagraph (A) during any calendar year shall not 
     exceed the annual capacity limitation with respect to such 
     year.
       ``(C) Annual capacity limitation.--For purposes of this 
     paragraph, the term `annual capacity limitation' means 1.8 
     gigawatts of direct current capacity for each of calendar 
     years 2023 and 2024, and zero thereafter.
       ``(D) Carryover of unused limitation.--If the annual 
     capacity limitation for any calendar year exceeds the 
     aggregate amount allocated for such year under this 
     paragraph, such limitation for the succeeding calendar year 
     shall be increased by the amount of such excess. No amount 
     may be carried under the preceding sentence to any calendar 
     year after 2024 except as provided in section 
     48E(h)(4)(D)(ii).
       ``(E) Placed in service deadline.--
       ``(i) In general.--Paragraph (1) shall not apply with 
     respect to any property which is placed in service after the 
     date that is 4 years after the date of the allocation with 
     respect to the facility of which such property is a part.
       ``(ii) Application of carryover.--Any amount of 
     environmental justice solar and wind capacity limitation 
     which expires under clause (i) during any calendar year shall 
     be taken into account as an excess described in subparagraph 
     (D) (or as an increase in such excess) for such calendar 
     year, subject to the limitation imposed by the last sentence 
     of such subparagraph.
       ``(5) Recapture.--The Secretary shall, by regulations or 
     other guidance, provide for recapturing the benefit of any 
     increase in the credit allowed under subsection (a) by reason 
     of this subsection with respect to any property which ceases 
     to be property eligible for such increase (but which does not 
     cease to be investment credit property within the meaning of 
     section 50(a)). The period and percentage of such recapture 
     shall be determined under rules similar to the rules of 
     section 50(a). To the extent provided by the Secretary, such 
     recapture may not apply with respect to any property if, 
     within 12 months after the date the taxpayer becomes aware 
     (or reasonably should have become aware) of such property 
     ceasing to be property eligible for such increase, the 
     eligibility of such property for such increase is restored. 
     The preceding sentence shall not apply more than once with 
     respect to any facility.''.
       (b) Effective Date.--The amendments made by this section 
     shall take effect on January 1, 2023.

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

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

[[Page H7604]]

     unit for which the carbon capture equipment is originally 
     planned and designed.
       ``(2) Baseline carbon oxide production.--
       ``(A) In general.--The term `baseline carbon oxide 
     production' means either of the following:
       ``(i) In the case of an applicable electric generating unit 
     which was originally placed in service more than 1 year prior 
     to the date on which construction of the carbon capture 
     equipment begins, the average annual carbon oxide production, 
     by mass, from such unit during--

       ``(I) in the case of an applicable electric generating unit 
     which was originally placed in service more than 1 year prior 
     to the date on which construction of the carbon capture 
     equipment begins and on or after the date which is 3 years 
     prior to the date on which construction of such equipment 
     begins, the period beginning on the date such unit was placed 
     in service and ending on the date on which construction of 
     such equipment began, and
       ``(II) in the case of an applicable electric generating 
     unit which was originally placed in service more than 3 years 
     prior to the date on which construction of the carbon capture 
     equipment begins, the 3 years with the highest annual carbon 
     oxide production during the 12-year period preceding the date 
     on which construction of such equipment began.

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

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

     the designed annual carbon oxide production, by mass, as 
     determined based on an assumed capacity factor of 60 percent.
       ``(B) Capacity factor.--The term `capacity factor' means 
     the ratio (expressed as a percentage) of the actual electric 
     output from the applicable electric generating unit to the 
     potential electric output from such unit.''.
       (B) Conforming amendment.--Section 142(o)(1)(B) is amended 
     by striking ``section 45Q(e)(1)'' and inserting ``section 
     45Q(e)(3)''.
       (b) Modified Applicable Dollar Amount.--Section 
     45Q(b)(1)(A) is amended--
       (1) in clause (i)--
       (A) in subclause (I), by striking ``the dollar amount'' and 
     all that follows through ``such period'' and inserting 
     ``$17'', and
       (B) in subclause (II), by striking ``the dollar amount'' 
     and all that follows through ``such period'' and inserting 
     ``$12'', and
       (2) in clause (ii)--
       (A) in subclause (I), by striking ``$50'' and inserting 
     ``$17'', and
       (B) in subclause (II), by striking ``$35'' and inserting 
     ``$12''.
       (c) Determination of Applicable Dollar Amount.--
       (1) In general.--Section 45Q(b)(1), as amended by the 
     preceding provisions of this Act, is amended--
       (A) by redesignating subparagraph (B) as subparagraph (D), 
     and
       (B) by inserting after subparagraph (A) the following new 
     subparagraphs:
       ``(B) Special rule for direct air capture facilities.--In 
     the case of any qualified facility described in subsection 
     (d)(2)(A) which is placed in service after December 31, 2022, 
     the applicable dollar amount shall be an amount equal to the 
     applicable dollar amount otherwise determined with respect to 
     such qualified facility under subparagraph (A), except that 
     such subparagraph shall be applied--
       ``(i) by substituting `$36' for `$17' each place it 
     appears, and
       ``(ii) by substituting `$26' for `$12' each place it 
     appears.
       ``(C) Applicable dollar amount for additional carbon 
     capture equipment.--In the case of any qualified facility 
     which is placed in service before January 1, 2023, if any 
     additional carbon capture equipment is installed at such 
     facility and such equipment is placed in service after 
     December 31, 2022, the applicable dollar amount shall be an 
     amount equal to the applicable dollar amount otherwise 
     determined under this paragraph, except that subparagraph (B) 
     shall be applied--
       ``(i) by substituting `before January 1, 2023' for `after 
     December 31, 2022', and
       ``(ii) by substituting `the additional carbon capture 
     equipment installed at such qualified facility' for `such 
     qualified facility'.''.
       (2) Conforming amendments.--
       (A) Section 45Q(b)(1)(A) is amended by striking ``The 
     applicable dollar amount'' and inserting ``Except as provided 
     in subparagraph (B) or (C), the applicable dollar amount''.
       (B) Section 45Q(b)(1)(D), as redesignated by paragraph 
     (1)(A), is amended by striking ``subparagraph (A)'' and 
     inserting ``subparagraph (A), (B), or (C)''.
       (d) Wage and Apprenticeship Requirements.--Section 45Q is 
     amended by redesignating subsection (h) as subsection (i) and 
     inserting after subsection (g) following new subsection:
       ``(h) Increased Credit Amount for Qualified Facilities and 
     Carbon Capture Equipment.--
       ``(1) In general.--In the case of any qualified facility or 
     any carbon capture equipment which satisfy the requirements 
     of paragraph (2), the amount of the credit determined under 
     subsection (a) shall be equal to such amount (determined 
     without regard to this sentence) multiplied by 5.
       ``(2) Requirements.--The requirements described in this 
     paragraph are that--
       ``(A) with respect to any qualified facility the 
     construction of which begins on or after the date that is 60 
     days after the Secretary publishes guidance with respect to 
     the requirements of paragraphs (3)(A) and (4), as well as any 
     carbon capture equipment placed in service at such facility--
       ``(i) subject to subparagraph (B) of paragraph (3), the 
     taxpayer satisfies the requirements under subparagraph (A) of 
     such paragraph with respect to such facility and equipment, 
     and
       ``(ii) the taxpayer satisfies the requirements under 
     paragraph (4) with respect to the construction of such 
     facility and equipment,
       ``(B) with respect to any carbon capture equipment the 
     construction of which begins on or after the date that is 60 
     days after the Secretary publishes guidance with respect to 
     the requirements of paragraphs (3)(A) and (4), and which is 
     installed at a qualified facility the construction of which 
     began prior to such date--
       ``(i) subject to subparagraph (B) of paragraph (3), the 
     taxpayer satisfies the requirements under subparagraph (A) of 
     such paragraph with respect to such equipment, and
       ``(ii) the taxpayer satisfies the requirements under 
     paragraph (4) with respect to the construction of such 
     equipment, or
       ``(C) the construction of carbon capture equipment begins 
     prior to the date that is 60 days after the Secretary 
     publishes guidance with respect to the requirements of 
     paragraphs (3)(A) and (4), and such equipment is installed at 
     a qualified facility the construction of which begins prior 
     to such date.
       ``(3) Prevailing wage requirements.--
       ``(A) In general.--The requirements described in this 
     subparagraph with respect to any qualified facility and any 
     carbon capture equipment placed in service at such facility 
     are that the taxpayer shall ensure that any laborers and 
     mechanics employed by the taxpayer or any contractor or 
     subcontractor in--
       ``(i) the construction of such facility or equipment, and
       ``(ii) with respect to any taxable year, for any portion of 
     such taxable year which is within the period described in 
     paragraph (3)(A) or (4)(A) of subsection (a), the alteration 
     or repair of such facility or such equipment,
     shall be paid wages at rates not less than the prevailing 
     rates for construction, alteration, or repair of a similar 
     character in the locality in which such facility and 
     equipment are located as most recently determined by the 
     Secretary of Labor, in accordance with subchapter IV of 
     chapter 31 of title 40, United States Code. For purposes of 
     determining an increased credit amount under paragraph (1) 
     for a taxable year, the requirement under clause (ii) of this 
     subparagraph is applied to such taxable year in which the 
     alteration or repair of qualified facility occurs.
       ``(B) Correction and penalty related to failure to satisfy 
     wage requirements.--Rules similar to the rules of section 
     45(b)(7)(B) shall apply.
       ``(4) Apprenticeship requirements.--Rules similar to the 
     rules of section 45(b)(8) shall apply.
       ``(5) Regulations and guidance.--The Secretary shall issue 
     such regulations or other guidance as the Secretary 
     determines necessary to carry out the purposes of this 
     subsection, including regulations or other guidance which 
     provides for requirements for recordkeeping or information 
     reporting for purposes of administering the requirements of 
     this subsection.''.
       (e) Credit Reduced for Tax-exempt Bonds.--Section 45Q(f) is 
     amended--
       (1) by striking the second paragraph (3), as added at the 
     end of such section by section 80402(e) of the Infrastructure 
     Investment and Jobs Act (Public Law 117-58), and
       (2) by adding at the end the following new paragraph:
       ``(8) Credit reduced for tax-exempt bonds.--Rules similar 
     to the rule under section 45(b)(3) shall apply for purposes 
     of this section.''.
       (f) Application of Section for Certain Carbon Capture 
     Equipment.--Section 45Q(g) is amended by inserting ``the 
     earlier of January 1, 2023, and'' before ``the end of the 
     calendar year''.
       (g) Election.--Section 45Q(f), as amended by subsection 
     (e), is amended by adding at the end the following new 
     paragraph:
       ``(9) Election.--For purposes of paragraphs (3) and (4) of 
     subsection (a), a person described in paragraph (3)(A)(ii) 
     may elect, at such time and in such manner as the Secretary 
     may prescribe, to have the 12-year period begin on the first 
     day of the first taxable year in which a credit under this 
     section is claimed with respect to carbon capture equipment 
     which is originally placed in service at a qualified facility 
     on or after the date of the enactment of the Bipartisan 
     Budget Act of 2018 (after application of paragraph (6), where 
     applicable) if--
       ``(A) no taxpayer claimed a credit under this section with 
     respect to such carbon capture equipment for any prior 
     taxable year,
       ``(B) the qualified facility at which such carbon capture 
     equipment is placed in service is located in an area affected 
     by a federally-declared disaster (as defined by section 
     165(i)(5)(A)) after the carbon capture equipment is 
     originally placed in service, and
       ``(C) such federally-declared disaster results in a 
     cessation of the operation of the qualified facility or the 
     carbon capture equipment after such equipment is originally 
     placed in service.''.
       (h) Regulations for Baseline Carbon Oxide Production.--
     Subsection (i) of section 45Q, as redesignated by subsection 
     (d), is amended--
       (1) in paragraph (1), by striking ``and'',
       (2) in paragraph (2), by striking the period at the end and 
     inserting ``, and'', and
       (3) by adding at the end the following new paragraph:
       ``(3) for purposes of subsection (d)(2)(B)(ii), adjust the 
     baseline carbon oxide production with respect to any 
     applicable electric generating unit at any electricity 
     generating facility if, after the date on which the carbon 
     capture equipment is placed in service, modifications

[[Page H7605]]

     which are chargeable to capital account are made to such unit 
     which result in a significant increase or decrease in carbon 
     oxide production.''.
       (i) Effective Dates.--
       (1) In general.--Except as provided in paragraphs (2), (3), 
     and (4), the amendments made by this section shall apply to 
     facilities or equipment placed in service after December 31, 
     2022.
       (2) Modification of carbon oxide capture requirements.--The 
     amendments made by subsection (a) shall apply to facilities 
     or equipment the construction of which begins after the date 
     of enactment of this Act.
       (3) Application of section for certain carbon capture 
     equipment.--The amendments made by subsection (f) shall take 
     effect on the date of enactment of this Act.
       (4) Election.--The amendments made by subsection (g) shall 
     apply to carbon oxide captured and disposed of after December 
     31, 2021.

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

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

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

       ``(a) Amount of Credit.--For purposes of section 38, the 
     zero-emission nuclear power production credit for any taxable 
     year is an amount equal to the amount by which--
       ``(1) the product of--
       ``(A) 0.3 cents, multiplied by
       ``(B) the kilowatt hours of electricity--
       ``(i) produced by the taxpayer at a qualified nuclear power 
     facility, and
       ``(ii) sold by the taxpayer to an unrelated person during 
     the taxable year, exceeds
       ``(2) the reduction amount for such taxable year.
       ``(b) Definitions.--
       ``(1) Qualified nuclear power facility.--For purposes of 
     this section, the term `qualified nuclear power facility' 
     means any nuclear facility--
       ``(A) which is owned by the taxpayer and which uses nuclear 
     energy to produce electricity,
       ``(B) which is not an advanced nuclear power facility as 
     defined in subsection (d)(1) of section 45J, and
       ``(C) which is placed in service before the date of the 
     enactment of this section.
       ``(2) Reduction amount.--
       ``(A) In general.--For purposes of this section, the term 
     `reduction amount' means, with respect to any qualified 
     nuclear power facility for any taxable year, the amount equal 
     to the lesser of--
       ``(i) the amount determined under subsection (a)(1), or
       ``(ii) the amount equal to 16 percent of the excess of--

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

       ``(aa) 2.5 cents, multiplied by
       ``(bb) the amount determined under subsection (a)(1)(B).
       ``(B) Treatment of certain receipts.--
       ``(i) In general.--Subject to clause (iii), the amount 
     determined under subparagraph (A)(ii)(I) shall include any 
     amount received by the taxpayer during the taxable year with 
     respect to the qualified nuclear power facility from a zero-
     emission credit program. For purposes of determining the 
     amount received during such taxable year, the taxpayer shall 
     take into account any reductions required under such program.
       ``(ii) Zero-emission credit program.--For purposes of this 
     subparagraph, the term `zero-emission credit program' means 
     any payments with respect to a qualified nuclear power 
     facility as a result of any Federal, State or local 
     government program for, in whole or in part, the zero-
     emission, zero-carbon, or air quality attributes of any 
     portion of the electricity produced by such facility.
       ``(iii) Exclusion.--For purposes of clause (i), any amount 
     received by the taxpayer from a zero-emission credit program 
     shall be excluded from the amount determined under 
     subparagraph (A)(ii)(I) if the full amount of the credit 
     calculated pursuant to subsection (a) (determined without 
     regard to this subparagraph) is used to reduce payments from 
     such zero-emission credit program.
       ``(3) Electricity.--For purposes of this section, the term 
     `electricity' means the energy produced by a qualified 
     nuclear power facility from the conversion of nuclear fuel 
     into electric power.
       ``(c) Other Rules.--
       ``(1) Inflation adjustment.--The 0.3 cent amount in 
     subsection (a)(1)(A) and the 2.5 cent amount in subsection 
     (b)(2)(A)(ii)(II)(aa) shall each be adjusted by multiplying 
     such amount by the inflation adjustment factor (as determined 
     under section 45(e)(2), as applied by substituting `calendar 
     year 2023' for `calendar year 1992' in subparagraph (B) 
     thereof) for the calendar year in which the sale occurs. If 
     the 0.3 cent amount as increased under this paragraph is not 
     a multiple of 0.05 cent, such amount shall be rounded to the 
     nearest multiple of 0.05 cent. If the 2.5 cent amount as 
     increased under this paragraph is not a multiple of 0.1 cent, 
     such amount shall be rounded to the nearest multiple of 0.1 
     cent.
       ``(2) Special rules.--Rules similar to the rules of 
     paragraphs (1), (3), (4), and (5) of section 45(e) shall 
     apply for purposes of this section.
       ``(d) Wage Requirements.--
       ``(1) Increased credit amount for qualified nuclear power 
     facilities.--In the case of any qualified nuclear power 
     facility which satisfies the requirements of paragraph 
     (2)(A), the amount of the credit determined under subsection 
     (a) shall be equal to such amount (as determined without 
     regard to this sentence) multiplied by 5.
       ``(2) Prevailing wage requirements.--
       ``(A) In general.--The requirements described in this 
     subparagraph with respect to any qualified nuclear power 
     facility are that the taxpayer shall ensure that any laborers 
     and mechanics employed by the taxpayer or any contractor or 
     subcontractor in the alteration or repair of such facility 
     shall be paid wages at rates not less than the prevailing 
     rates for alteration or repair of a similar character in the 
     locality in which such facility is located as most recently 
     determined by the Secretary of Labor, in accordance with 
     subchapter IV of chapter 31 of title 40, United States Code.
       ``(B) Correction and penalty related to failure to satisfy 
     wage requirements.--Rules similar to the rules of section 
     45(b)(7)(B) shall apply.
       ``(3) Regulations and guidance.--The Secretary shall issue 
     such regulations or other guidance as the Secretary 
     determines necessary to carry out the purposes of this 
     subsection, including regulations or other guidance which 
     provides for requirements for recordkeeping or information 
     reporting for purposes of administering the requirements of 
     this subsection.
       ``(e) Termination.--This section shall not apply to taxable 
     years beginning after December 31, 2032.''.
       (b) Conforming Amendments.--
       (1) Section 38(b) is amended--
       (A) in paragraph (32), by striking ``plus'' at the end,
       (B) in paragraph (33), by striking the period at the end 
     and inserting ``, plus'', and
       (C) by adding at the end the following new paragraph:
       ``(34) the zero-emission nuclear power production credit 
     determined under section 45U(a).''.
       (2) The table of sections for subpart D of part IV of 
     subchapter A of chapter 1 is amended by adding at the end the 
     following new item:

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

                          PART 2--CLEAN FUELS

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

       (a) Biodiesel and Renewable Diesel Credit.--Section 40A(g) 
     is amended by striking ``December 31, 2022'' and inserting 
     ``December 31, 2024''.
       (b) Biodiesel Mixture Credit.--
       (1) In general.--Section 6426(c)(6) is amended by striking 
     ``December 31, 2022'' and inserting ``December 31, 2024''.
       (2) Fuels not used for taxable purposes.--Section 
     6427(e)(6)(B) is amended by striking ``December 31, 2022'' 
     and inserting ``December 31, 2024''.
       (c) Alternative Fuel Credit.--Section 6426(d)(5) is amended 
     by striking ``December 31, 2021'' and inserting ``December 
     31, 2024''.
       (d) Alternative Fuel Mixture Credit.--Section 6426(e)(3) is 
     amended by striking ``December 31, 2021'' and inserting 
     ``December 31, 2024''.
       (e) Payments for Alternative Fuels.--Section 6427(e)(6)(C) 
     is amended by striking ``December 31, 2021'' and inserting 
     ``December 31, 2024''.
       (f) Effective Date.--The amendments made by this section 
     shall apply to fuel sold or used after December 31, 2021.
       (g) Special Rule.--In the case of any alternative fuel 
     credit properly determined under section 6426(d) of the 
     Internal Revenue Code of 1986 for the period beginning on 
     January 1, 2022, and ending with the close of the 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--

[[Page H7606]]

       ``(1) the number of gallons of sustainable aviation fuel in 
     such mixture, multiplied by
       ``(2) the sum of--
       ``(A) $1.25, plus
       ``(B) the applicable supplementary amount with respect to 
     such sustainable aviation fuel.
       ``(b) Applicable Supplementary Amount.--For purposes of 
     this section, the term `applicable supplementary amount' 
     means, with respect to any sustainable aviation fuel, an 
     amount equal to $0.01 for each percentage point by which the 
     lifecycle greenhouse gas emissions reduction percentage with 
     respect to such fuel exceeds 50 percent. In no event shall 
     the applicable supplementary amount determined under this 
     subsection exceed $0.50.
       ``(c) Qualified Mixture.--For purposes of this section, the 
     term `qualified mixture' means a mixture of sustainable 
     aviation fuel and kerosene if--
       ``(1) such mixture is produced by the taxpayer in the 
     United States,
       ``(2) such mixture is used by the taxpayer (or sold by the 
     taxpayer for use) in an aircraft,
       ``(3) such sale or use is in the ordinary course of a trade 
     or business of the taxpayer, and
       ``(4) the transfer of such mixture to the fuel tank of such 
     aircraft occurs in the United States.
       ``(d) Sustainable Aviation Fuel.--
       ``(1) In general.--For purposes of this section, the term 
     `sustainable aviation fuel' means liquid fuel, the portion of 
     which is not kerosene, which--
       ``(A) meets the requirements of--
       ``(i) ASTM International Standard D7566, or
       ``(ii) the Fischer Tropsch provisions of ASTM International 
     Standard D1655, Annex A1,
       ``(B) is not derived from coprocessing an applicable 
     material (or materials derived from an applicable material) 
     with a feedstock which is not biomass,
       ``(C) is not derived from palm fatty acid distillates or 
     petroleum, and
       ``(D) has been certified in accordance with subsection (e) 
     as having a lifecycle greenhouse gas emissions reduction 
     percentage of at least 50 percent.
       ``(2) Definitions.--In this subsection--
       ``(A) Applicable material.--The term `applicable material' 
     means--
       ``(i) monoglycerides, diglycerides, and triglycerides,
       ``(ii) free fatty acids, and
       ``(iii) fatty acid esters.
       ``(B) Biomass.--The term `biomass' has the same meaning 
     given such term in section 45K(c)(3).
       ``(e) Lifecycle Greenhouse Gas Emissions Reduction 
     Percentage.--For purposes of this section, the term 
     `lifecycle greenhouse gas emissions reduction percentage' 
     means, with respect to any sustainable aviation fuel, the 
     percentage reduction in lifecycle greenhouse gas emissions 
     achieved by such fuel as compared with petroleum-based jet 
     fuel, as defined in accordance with--
       ``(1) the most recent Carbon Offsetting and Reduction 
     Scheme for International Aviation which has been adopted by 
     the International Civil Aviation Organization with the 
     agreement of the United States, or
       ``(2) any similar methodology which satisfies the criteria 
     under section 211(o)(1)(H) of the Clean Air Act (42 U.S.C. 
     7545(o)(1)(H)), as in effect on the date of enactment of this 
     section.
       ``(f) Registration of Sustainable Aviation Fuel 
     Producers.--No credit shall be allowed under this section 
     with respect to any sustainable aviation fuel unless the 
     producer or importer of such fuel--
       ``(1) is registered with the Secretary under section 4101, 
     and
       ``(2) provides--
       ``(A) certification (in such form and manner as the 
     Secretary shall prescribe) from an unrelated party 
     demonstrating compliance with--
       ``(i) any general requirements, supply chain traceability 
     requirements, and information transmission requirements 
     established under the Carbon Offsetting and Reduction Scheme 
     for International Aviation described in paragraph (1) of 
     subsection (e), or
       ``(ii) in the case of any methodology established under 
     paragraph (2) of such subsection, requirements similar to the 
     requirements described in clause (i), and
       ``(B) such other information with respect to such fuel as 
     the Secretary may require for purposes of carrying out this 
     section.
       ``(g) Coordination With Credit Against Excise Tax.--The 
     amount of the credit determined under this section with 
     respect to any sustainable aviation fuel shall, under rules 
     prescribed by the Secretary, be properly reduced to take into 
     account any benefit provided with respect to such sustainable 
     aviation fuel solely by reason of the application of section 
     6426 or 6427(e).
       ``(h) Termination.--This section shall not apply to any 
     sale or use after December 31, 2024.''.
       (b) Credit Made Part of General Business Credit.-- Section 
     38(b), as amended by the preceding provisions of this Act, is 
     amended by striking ``plus'' at the end of paragraph (33), by 
     striking the period at the end of paragraph (34) and 
     inserting ``, plus'', and by inserting after paragraph (34) 
     the following new paragraph:
       ``(35) the sustainable aviation fuel credit determined 
     under section 40B.''.
       (c) Coordination With Biodiesel Incentives.--
       (1) In general.--Section 40A(d)(1) is amended by inserting 
     ``or 40B'' after ``determined under section 40''.
       (2) Conforming amendment.--Section 40A(f) is amended by 
     striking paragraph (4).
       (d) Sustainable Aviation Fuel Added to Credit for Alcohol 
     Fuel, Biodiesel, and Alternative Fuel Mixtures.--
       (1) In general.--Section 6426 is amended by adding at the 
     end the following new subsection:
       ``(k) Sustainable Aviation Fuel Credit.--
       ``(1) In general.--For purposes of this section, the 
     sustainable aviation fuel credit for the taxable year is, 
     with respect to any sale or use of a qualified mixture, an 
     amount equal to the product of--
       ``(A) the number of gallons of sustainable aviation fuel in 
     such mixture, multiplied by
       ``(B) the sum of--
       ``(i) $1.25, plus
       ``(ii) the applicable supplementary amount with respect to 
     such sustainable aviation fuel.
       ``(2) Definitions.--Any term used in this subsection which 
     is also used in section 40B shall have the meaning given such 
     term by section 40B.
       ``(3) Registration requirement.--For purposes of this 
     subsection, rules similar to the rules of section 40B(f) 
     shall apply.''.
       (2) Conforming amendments.--
       (A) Section 6426 is amended--
       (i) in subsection (a)(1), by striking ``and (e)'' and 
     inserting ``(e), and (k)'', and
       (ii) in subsection (h), by striking ``under section 40 or 
     40A'' and inserting ``under section 40, 40A, or 40B''.
       (B) Section 6427(e) is amended--
       (i) in the heading, by striking ``or Alternative Fuel'' and 
     inserting, ``Alternative Fuel, or Sustainable Aviation 
     Fuel'',
       (ii) in paragraph (1), by inserting ``or the sustainable 
     aviation fuel mixture credit'' after ``alternative fuel 
     mixture credit'', and
       (iii) in paragraph (6)--

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

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

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

     SEC. 13204. CLEAN HYDROGEN.

       (a) Credit for Production of Clean Hydrogen.--
       (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

[[Page H7607]]

     multiplying such amount by the inflation adjustment factor 
     (as determined under section 45(e)(2), determined by 
     substituting `2022' for `1992' in subparagraph (B) thereof) 
     for the calendar year in which the qualified clean hydrogen 
     is produced. If any amount as increased under the preceding 
     sentence is not a multiple of 0.1 cent, such amount shall be 
     rounded to the nearest multiple of 0.1 cent.
       ``(c) Definitions.--For purposes of this section--
       ``(1) Lifecycle greenhouse gas emissions.--
       ``(A) In general.--Subject to subparagraph (B), the term 
     `lifecycle greenhouse gas emissions' has the same meaning 
     given such term under subparagraph (H) of section 211(o)(1) 
     of the Clean Air Act (42 U.S.C. 7545(o)(1)), as in effect on 
     the date of enactment of this section.
       ``(B) GREET model.--The term `lifecycle greenhouse gas 
     emissions' shall only include emissions through the point of 
     production (well-to-gate), as determined under the most 
     recent Greenhouse gases, Regulated Emissions, and Energy use 
     in Transportation model (commonly referred to as the `GREET 
     model') developed by Argonne National Laboratory, or a 
     successor model (as determined by the Secretary).
       ``(2) Qualified clean hydrogen.--
       ``(A) In general.--The term `qualified clean hydrogen' 
     means hydrogen which is produced through a process that 
     results in a lifecycle greenhouse gas emissions rate of not 
     greater than 4 kilograms of CO2e per kilogram of hydrogen.
       ``(B) Additional requirements.--Such term shall not include 
     any hydrogen unless--
       ``(i) such hydrogen is produced--

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

       ``(ii) the production and sale or use of such hydrogen is 
     verified by an unrelated party.
       ``(C) Provisional emissions rate.--In the case of any 
     hydrogen for which a lifecycle greenhouse gas emissions rate 
     has not been determined for purposes of this section, a 
     taxpayer producing such hydrogen may file a petition with the 
     Secretary for determination of the lifecycle greenhouse gas 
     emissions rate with respect to such hydrogen.
       ``(3) Qualified clean hydrogen production facility.--The 
     term `qualified clean hydrogen production facility' means a 
     facility--
       ``(A) owned by the taxpayer,
       ``(B) which produces qualified clean hydrogen, and
       ``(C) the construction of which begins before January 1, 
     2033.
       ``(d) Special Rules.--
       ``(1) Treatment of facilities owned by more than 1 
     taxpayer.--Rules similar to the rules section 45(e)(3) shall 
     apply for purposes of this section.
       ``(2) Coordination with credit for carbon oxide 
     sequestration.--No credit shall be allowed under this section 
     with respect to any qualified clean hydrogen produced at a 
     facility which includes carbon capture equipment for which a 
     credit is allowed to any taxpayer under section 45Q for the 
     taxable year or any prior taxable year.
       ``(e) Increased Credit Amount for Qualified Clean Hydrogen 
     Production Facilities.--
       ``(1) In general.--In the case of any qualified clean 
     hydrogen production facility which satisfies the requirements 
     of paragraph (2), the amount of the credit determined under 
     subsection (a) with respect to qualified clean hydrogen 
     described in subsection (b)(2) shall be equal to such amount 
     (determined without regard to this sentence) multiplied by 5.
       ``(2) Requirements.--A facility meets the requirements of 
     this paragraph if it is one of the following:
       ``(A) A facility--
       ``(i) the construction of which begins prior to the date 
     that is 60 days after the Secretary publishes guidance with 
     respect to the requirements of paragraphs (3)(A) and (4), and
       ``(ii) which meets the requirements of paragraph (3)(A) 
     with respect to alteration or repair of such facility which 
     occurs after such date.
       ``(B) A facility which satisfies the requirements of 
     paragraphs (3)(A) and (4).
       ``(3) Prevailing wage requirements.--
       ``(A) In general.--The requirements described in this 
     subparagraph with respect to any qualified clean hydrogen 
     production facility are that the taxpayer shall ensure that 
     any laborers and mechanics employed by the taxpayer or any 
     contractor or subcontractor in--
       ``(i) the construction of such facility, and
       ``(ii) with respect to any taxable year, for any portion of 
     such taxable year which is within the period described in 
     subsection (a)(2), the alteration or repair of such facility,
     shall be paid wages at rates not less than the prevailing 
     rates for construction, alteration, or repair of a similar 
     character in the locality in which such facility is located 
     as most recently determined by the Secretary of Labor, in 
     accordance with subchapter IV of chapter 31 of title 40, 
     United States Code. For purposes of determining an increased 
     credit amount under paragraph (1) for a taxable year, the 
     requirement under clause (ii) of this subparagraph is applied 
     to such taxable year in which the alteration or repair of 
     qualified facility occurs.
       ``(B) Correction and penalty related to failure to satisfy 
     wage requirements.--Rules similar to the rules of section 
     45(b)(7)(B) shall apply.
       ``(4) Apprenticeship requirements.--Rules similar to the 
     rules of section 45(b)(8) shall apply.
       ``(5) Regulations and guidance.--The Secretary shall issue 
     such regulations or other guidance as the Secretary 
     determines necessary to carry out the purposes of this 
     subsection, including regulations or other guidance which 
     provides for requirements for recordkeeping or information 
     reporting for purposes of administering the requirements of 
     this subsection.
       ``(f) Regulations.--Not later than 1 year after the date of 
     enactment of this section, the Secretary shall issue 
     regulations or other guidance to carry out the purposes of 
     this section, including regulations or other guidance for 
     determining lifecycle greenhouse gas emissions.''.
       (2) Credit reduced for tax-exempt bonds.--Section 45V(d), 
     as added by this section, is amended by adding at the end the 
     following new paragraph:
       ``(3) Credit reduced for tax-exempt bonds.--Rules similar 
     to the rule under section 45(b)(3) shall apply for purposes 
     of this section.''.
       (3) Modification of existing facilities.--Section 45V(d), 
     as added and amended by the preceding provisions of this 
     section, is amended by adding at the end the following new 
     paragraph:
       ``(4) Modification of existing facilities.--For purposes of 
     subsection (a)(1), in the case of any facility which--
       ``(A) was originally placed in service before January 1, 
     2023, and, prior to the modification described in 
     subparagraph (B), did not produce qualified clean hydrogen, 
     and
       ``(B) after the date such facility was originally placed in 
     service--
       ``(i) is modified to produce qualified clean hydrogen, and
       ``(ii) amounts paid or incurred with respect to such 
     modification are properly chargeable to capital account of 
     the taxpayer,
     such facility shall be deemed to have been originally placed 
     in service as of the date that the property required to 
     complete the modification described in subparagraph (B) is 
     placed in service.''.
       (4) Conforming amendments.--
       (A) Section 38(b), as amended by the preceding provisions 
     of this Act, is amended--
       (i) in paragraph (34), by striking ``plus'' at the end,
       (ii) in paragraph (35), by striking the period at the end 
     and inserting ``, plus'', and
       (iii) by adding at the end the following new paragraph:
       ``(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

[[Page H7608]]

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

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

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

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

     PART 3--CLEAN ENERGY AND EFFICIENCY INCENTIVES FOR INDIVIDUALS

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

       (a) Extension of Credit.--Section 25C(g)(2) is amended by 
     striking ``December 31, 2021'' and inserting ``December 31, 
     2032''.
       (b) Allowance of Credit.--Section 25C(a) is amended to read 
     as follows:
       ``(a) Allowance of Credit.--In the case of an individual, 
     there shall be allowed as a credit against the tax imposed by 
     this chapter for the taxable year an amount equal to 30 
     percent of the sum of--
       ``(1) the amount paid or incurred by the taxpayer for 
     qualified energy efficiency improvements installed during 
     such taxable year, and
       ``(2) the amount of the residential energy property 
     expenditures paid or incurred by the taxpayer during such 
     taxable year.''.
       (c) Application of Annual Limitation in Lieu of Lifetime 
     Limitation.--Section 25C(b) is amended to read as follows:
       ``(b) Limitations.--
       ``(1) In general.--The credit allowed under this section 
     with respect to any taxpayer for any taxable year shall not 
     exceed $1,200.
       ``(2) Energy property.--The credit allowed under this 
     section by reason of subsection (a)(2) with respect to any 
     taxpayer for any taxable year shall not exceed, with respect 
     to any item of qualified energy property, $600.
       ``(3) Windows.--The credit allowed under this section by 
     reason of subsection (a)(1) with respect to any taxpayer for 
     any taxable year shall not exceed, in the aggregate with 
     respect to all exterior windows and skylights, $600.
       ``(4) Doors.--The credit allowed under this section by 
     reason of subsection (a)(1) with respect to any taxpayer for 
     any taxable year shall not exceed--
       ``(A) $250 in the case of any exterior door, and
       ``(B) $500 in the aggregate with respect to all exterior 
     doors.
       ``(5) Heat pump and heat pump water heaters; biomass stoves 
     and boilers.--Notwithstanding paragraphs (1) and (2), the 
     credit allowed under this section by reason of subsection 
     (a)(2) with respect to any taxpayer for any taxable year 
     shall not, in the aggregate, exceed $2,000 with respect to 
     amounts paid or incurred for property described in clauses 
     (i) and (ii) of subsection (d)(2)(A) and in subsection 
     (d)(2)(B).''.
       (d) Modifications Related to Qualified Energy Efficiency 
     Improvements.--
       (1) Standards for energy efficient building envelope 
     components.--Section 25C(c)(2) is amended by striking 
     ``meets--'' and all that follows through the period at the 
     end and inserting the following: ``meets--
       ``(A) in the case of an exterior window or skylight, Energy 
     Star most efficient certification requirements,
       ``(B) in the case of an exterior door, applicable Energy 
     Star requirements, and
       ``(C) in the case of any other component, the prescriptive 
     criteria for such component established by the most recent 
     International Energy Conservation Code standard in effect as 
     of the beginning of the calendar year which is 2 years prior 
     to the calendar year in which such component is placed in 
     service.''.
       (2) Roofs not treated as building envelope components.--
     Section 25C(c)(3) is amended by adding ``and'' at the end of 
     subparagraph (B), by striking ``, and'' at the end of 
     subparagraph (C) and inserting a period, and by striking 
     subparagraph (D).
       (3) Air sealing insulation added to definition of building 
     envelope component.--Section 25C(c)(3)(A) is amended by 
     inserting ``, including air sealing material or system,'' 
     after ``material or system''.
       (e) Modification of Residential Energy Property 
     Expenditures.--Section 25C(d) is amended to read as follows:
       ``(d) Residential Energy Property Expenditures.--For 
     purposes of this section--
       ``(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.''.

[[Page H7609]]

       (3) Home energy audits.--
       (A) In general.--Section 25C is amended by redesignating 
     subsections (e), (f), and (g), as subsections (f), (g), and 
     (h), respectively, and by inserting after subsection (d) the 
     following new subsection:
       ``(e) Home Energy Audits.--For purposes of this section, 
     the term `home energy audit' means an inspection and written 
     report with respect to a dwelling unit located in the United 
     States and owned or used by the taxpayer as the taxpayer's 
     principal residence (within the meaning of section 121) 
     which--
       ``(1) identifies the most significant and cost-effective 
     energy efficiency improvements with respect to such dwelling 
     unit, including an estimate of the energy and cost savings 
     with respect to each such improvement, and
       ``(2) is conducted and prepared by a home energy auditor 
     that meets the certification or other requirements specified 
     by the Secretary in regulations or other guidance (as 
     prescribed by the Secretary not later than 365 days after the 
     date of the enactment of this subsection).''.
       (B) Conforming amendment.--Section 1016(a)(33) is amended 
     by striking ``section 25C(f)'' and inserting ``section 
     25C(g)''.
       (4) Lack of substantiation treated as mathematical or 
     clerical error.--Section 6213(g)(2) is amended--
       (A) in subparagraph (P), by striking ``and'' at the end,
       (B) in subparagraph (Q), by striking the period at the end 
     and inserting ``, and'', and
       (C) by inserting after subparagraph (Q) the following:
       ``(R) an omission of information or documentation required 
     under section 25C(b)(6)(B) (relating to home energy audits) 
     to be included on a return.''.
       (g) Identification Number Requirement.--
       (1) In general.--Section 25C, as amended by this section, 
     is amended by redesignating subsection (h) as subsection (i) 
     and by inserting after subsection (g) the following new 
     subsection:
       ``(h) Product Identification Number Requirement.--
       ``(1) In general.--No credit shall be allowed under 
     subsection (a) with respect to any item of specified property 
     placed in service after December 31, 2024, unless--
       ``(A) such item is produced by a qualified manufacturer, 
     and
       ``(B) the taxpayer includes the qualified product 
     identification number of such item on the return of tax for 
     the taxable year.
       ``(2) Qualified product identification number.--For 
     purposes of this section, the term `qualified product 
     identification number' means, with respect to any item of 
     specified property, the product identification number 
     assigned to such item by the qualified manufacturer pursuant 
     to the methodology referred to in paragraph (3).
       ``(3) Qualified manufacturer.--For purposes of this 
     section, the term `qualified manufacturer' means any 
     manufacturer of specified property which enters into an 
     agreement with the Secretary which provides that such 
     manufacturer will--
       ``(A) assign a product identification number to each item 
     of specified property produced by such manufacturer utilizing 
     a methodology that will ensure that such number (including 
     any alphanumeric) is unique to each such item (by utilizing 
     numbers or letters which are unique to such manufacturer or 
     by such other method as the Secretary may provide),
       ``(B) label such item with such number in such manner as 
     the Secretary may provide, and
       ``(C) make periodic written reports to the Secretary (at 
     such times and in such manner as the Secretary may provide) 
     of the product identification numbers so assigned and 
     including such information as the Secretary may require with 
     respect to the item of specified property to which such 
     number was so assigned.
       ``(4) Specified property.--For purposes of this subsection, 
     the term `specified property' means any qualified energy 
     property and any property described in subparagraph (B) or 
     (C) of subsection (c)(3).''.
       (2) Omission of correct product identification number 
     treated as mathematical or clerical error.--Section 
     6213(g)(2), as amended by the preceding provisions of this 
     Act, is amended--
       (A) in subparagraph (Q), by striking ``and'' at the end,
       (B) in subparagraph (R), by striking the period at the end 
     and inserting ``, and'', and
       (C) by inserting after subparagraph (R) the following:
       ``(S) an omission of a correct product identification 
     number required under section 25C(h) (relating to credit for 
     nonbusiness energy property) to be included on a return.''.
       (h) Energy Efficient Home Improvement Credit.--
       (1) In general.--The heading for section 25C is amended by 
     striking ``nonbusiness energy property'' and inserting 
     ``energy efficient home improvement credit''.
       (2) Clerical amendment.--The table of sections for subpart 
     A of part IV of subchapter A of chapter 1 is amended by 
     striking the item relating to section 25C and inserting after 
     the item relating to section 25B the following item:

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

     SEC. 13302. RESIDENTIAL CLEAN ENERGY CREDIT.

       (a) Extension of Credit.--
       (1) In general.--Section 25D(h) is amended by striking 
     ``December 31, 2023'' and inserting ``December 31, 2034''.
       (2) Application of phaseout.--Section 25D(g) is amended--
       (A) in paragraph (2), by striking ``before January 1, 2023, 
     26 percent, and'' and inserting ``before January 1, 2022, 26 
     percent,'', and
       (B) by striking paragraph (3) and by inserting after 
     paragraph (2) the following new paragraphs:
       ``(3) in the case of property placed in service after 
     December 31, 2021, and before January 1, 2033, 30 percent,
       ``(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.--

[[Page H7610]]

     Rules similar to the rules of section 45(b)(7)(B) shall 
     apply.
       ``(5) Apprenticeship requirements.--Rules similar to the 
     rules of section 45(b)(8) shall apply.
       ``(6) Regulations.--The Secretary shall issue such 
     regulations or other guidance as the Secretary determines 
     necessary to carry out the purposes of this subsection, 
     including regulations or other guidance which provides for 
     requirements for recordkeeping or information reporting for 
     purposes of administering the requirements of this 
     subsection.''.
       (2) Modification of efficiency standard.--Section 
     179D(c)(1)(D) is amended by striking ``50 percent'' and 
     inserting ``25 percent''.
       (3) Reference standard.--Section 179D(c)(2) is amended by 
     striking ``the most recent'' and inserting the following: 
     ``the more recent of--
       ``(A) Standard 90.1-2007 published by the American Society 
     of Heating, Refrigerating, and Air Conditioning Engineers and 
     the Illuminating Engineering Society of North America, or
       ``(B) the most recent''.
       (4) Final determination; extension of period; placed in 
     service deadline.--Subparagraph (B) of section 179D(c)(2), as 
     amended by paragraph (3), is amended--
       (A) by inserting ``for which the Department of Energy has 
     issued a final determination and'' before ``which has been 
     affirmed'',
       (B) by striking ``2 years'' and inserting ``4 years'', and
       (C) by striking ``that construction of such property 
     begins'' and inserting ``such property is placed in 
     service''.
       (5) Elimination of partial allowance.--
       (A) In general.--Section 179D(d) is amended--
       (i) by striking paragraph (1), and
       (ii) by redesignating paragraphs (2) through (6) as 
     paragraphs (1) through (5), respectively.
       (B) Conforming amendments.--
       (i) Section 179D(c)(1)(D) is amended--

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

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

[[Page H7611]]

  


     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).''.
       (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

[[Page H7612]]

     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.
       ``(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.

[[Page H7613]]

       ``(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--
       ``(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.''.

[[Page H7614]]

       (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 (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).

[[Page H7615]]

       ``(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 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--

[[Page H7616]]

       ``(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.--
       ``(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--

[[Page H7617]]

       ``(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--
       ``(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.

[[Page H7618]]

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

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

                           PART 6--SUPERFUND

     SEC. 13601. REINSTATEMENT OF SUPERFUND.

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

   PART 7--INCENTIVES FOR CLEAN ELECTRICITY AND CLEAN TRANSPORTATION

     SEC. 13701. CLEAN ELECTRICITY PRODUCTION CREDIT.

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

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

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

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

     the applicable amount shall be 1.5 cents.
       ``(b) Qualified Facility.--
       ``(1) In general.--
       ``(A) Definition.--Subject to subparagraphs (B), (C), and 
     (D), the term `qualified facility' means a facility owned by 
     the taxpayer--
       ``(i) which is used for the generation of electricity,
       ``(ii) which is placed in service after December 31, 2024, 
     and
       ``(iii) for which the greenhouse gas emissions rate (as 
     determined under paragraph (2)) is not greater than zero.
       ``(B) 10-year production credit.--For purposes of this 
     section, a facility shall only be treated as a qualified 
     facility during the 10-year period beginning on the date the 
     facility was originally placed in service.
       ``(C) Expansion of facility; incremental production.--The 
     term `qualified facility' shall include either of the 
     following in connection with a facility described in 
     subparagraph (A) (without regard to clause (ii) of such 
     subparagraph) which was placed in service before January 1, 
     2025, but only to the extent of the increased amount of 
     electricity produced at the facility by reason of the 
     following:
       ``(i) A new unit which is placed in service after December 
     31, 2024.
       ``(ii) Any additions of capacity which are placed in 
     service after December 31, 2024.
       ``(D) Coordination with other credits.--The term `qualified 
     facility' shall not include any facility for which a credit 
     determined under section 45, 45J, 45Q, 45U, 48, 48A, or 48E 
     is allowed under section 38 for the taxable year or any prior 
     taxable year.
       ``(2) Greenhouse gas emissions rate.--
       ``(A) In general.--For purposes of this section, the term 
     `greenhouse gas emissions rate' means the amount of 
     greenhouse gases emitted into the atmosphere by a facility in 
     the production of electricity, expressed as grams of 
     CO2e per KWh.
       ``(B) Fuel combustion and gasification.--In the case of a 
     facility which produces electricity through combustion or 
     gasification, the greenhouse gas emissions rate for such 
     facility shall be equal to the net rate of greenhouse gases 
     emitted into the atmosphere by such facility (taking into 
     account lifecycle greenhouse gas emissions, as described in 
     section 211(o)(1)(H) of the Clean Air Act (42 U.S.C. 
     7545(o)(1)(H))) in the production of electricity, expressed 
     as grams of CO2e per KWh.
       ``(C) Establishment of emissions rates for facilities.--
       ``(i) Publishing emissions rates.--The Secretary shall 
     annually publish a table that sets forth the greenhouse gas 
     emissions rates for types or categories of facilities, which 
     a taxpayer shall use for purposes of this section.
       ``(ii) Provisional emissions rate.--In the case of any 
     facility for which an emissions rate has not been established 
     by the Secretary, a taxpayer which owns such facility may 
     file a petition with the Secretary for determination of the 
     emissions rate with respect to such facility.
       ``(D) Carbon capture and sequestration equipment.--For 
     purposes of this subsection, the amount of greenhouse gases 
     emitted into the atmosphere by a facility in the production 
     of electricity shall not include any qualified carbon dioxide 
     that is captured by the taxpayer and--
       ``(i) pursuant to any regulations established under 
     paragraph (2) of section 45Q(f), disposed of by the taxpayer 
     in secure geological storage, or
       ``(ii) utilized by the taxpayer in a manner described in 
     paragraph (5) of such section.
       ``(c) Inflation Adjustment.--
       ``(1) In general.--In the case of a calendar year beginning 
     after 2024, the 0.3 cent amount in paragraph (2)(A) of 
     subsection (a) and the 1.5 cent amount in paragraph (2)(B) of 
     such subsection shall each be adjusted by multiplying such 
     amount by the inflation adjustment factor for the calendar 
     year in which the sale, consumption, or storage of the 
     electricity occurs. If the 0.3 cent amount as increased under 
     this paragraph is not a multiple of 0.05 cent, such amount 
     shall be rounded to the nearest multiple of 0.05 cent. 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

[[Page H7619]]

     gross domestic product as computed and published by the 
     Department of Commerce before March 15 of the calendar year.
       ``(d) Credit Phase-out.--
       ``(1) In general.--The amount of the clean electricity 
     production credit under subsection (a) for any qualified 
     facility the construction of which begins during a calendar 
     year described in paragraph (2) shall be equal to the product 
     of--
       ``(A) the amount of the credit determined under subsection 
     (a) without regard to this subsection, multiplied by
       ``(B) the phase-out percentage under paragraph (2).
       ``(2) Phase-out percentage.--The phase-out percentage under 
     this paragraph is equal to--
       ``(A) for a facility the construction of which begins 
     during the first calendar year following the applicable year, 
     100 percent,
       ``(B) for a facility the construction of which begins 
     during the second calendar year following the applicable 
     year, 75 percent,
       ``(C) for a facility the construction of which begins 
     during the third calendar year following the applicable year, 
     50 percent, and
       ``(D) for a facility the construction of which begins 
     during any calendar year subsequent to the calendar year 
     described in subparagraph (C), 0 percent.
       ``(3) Applicable year.--For purposes of this subsection, 
     the term `applicable year' means the later of--
       ``(A) the calendar year in which the Secretary determines 
     that the annual greenhouse gas emissions from the production 
     of electricity in the United States are equal to or less than 
     25 percent of the annual greenhouse gas emissions from the 
     production of electricity in the United States for calendar 
     year 2022, or
       ``(B) 2032.
       ``(e) Definitions.--For purposes of this section:
       ``(1) CO2e per KWh.--The term `CO2e 
     per KWh' means, with respect to any greenhouse gas, the 
     equivalent carbon dioxide (as determined based on global 
     warming potential) per kilowatt hour of electricity produced.
       ``(2) Greenhouse gas.--The term `greenhouse gas' has the 
     same meaning given such term under section 211(o)(1)(G) of 
     the Clean Air Act (42 U.S.C. 7545(o)(1)(G)), as in effect on 
     the date of the enactment of this section.
       ``(3) Qualified carbon dioxide.--The term `qualified carbon 
     dioxide' means carbon dioxide captured from an industrial 
     source which--
       ``(A) would otherwise be released into the atmosphere as 
     industrial emission of greenhouse gas,
       ``(B) is measured at the source of capture and verified at 
     the point of disposal or utilization, and
       ``(C) is captured and disposed or utilized within the 
     United States (within the meaning of section 638(1)) or a 
     possession of the United States (within the meaning of 
     section 638(2)).
       ``(f) Guidance.--Not later than January 1, 2025, the 
     Secretary shall issue guidance regarding implementation of 
     this section, including calculation of greenhouse gas 
     emission rates for qualified facilities and determination of 
     clean electricity production credits under this section.
       ``(g) Special Rules.--
       ``(1) Only production in the united states taken into 
     account.--Consumption, sales, or storage shall be taken into 
     account under this section only with respect to electricity 
     the production of which is within--
       ``(A) the United States (within the meaning of section 
     638(1)), or
       ``(B) a possession of the United States (within the meaning 
     of section 638(2)).
       ``(2) Combined heat and power system property.--
       ``(A) In general.--For purposes of subsection (a)--
       ``(i) the kilowatt hours of electricity produced by a 
     taxpayer at a qualified facility shall include any production 
     in the form of useful thermal energy by any combined heat and 
     power system property within such facility, and
       ``(ii) the amount of greenhouse gases emitted into the 
     atmosphere by such facility in the production of such useful 
     thermal energy shall be included for purposes of determining 
     the greenhouse gas emissions rate for such facility.
       ``(B) Combined heat and power system property.--For 
     purposes of this paragraph, the term `combined heat and power 
     system property' has the same meaning given such term by 
     section 48(c)(3) (without regard to subparagraphs (A)(iv), 
     (B), and (D) thereof).
       ``(C) Conversion from btu to kwh.--
       ``(i) In general.--For purposes of subparagraph (A)(i), the 
     amount of kilowatt hours of electricity produced in the form 
     of useful thermal energy shall be equal to the quotient of--

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

       ``(ii) Heat rate.--For purposes of this subparagraph, the 
     term `heat rate' means the amount of energy used by the 
     qualified facility to generate 1 kilowatt hour of 
     electricity, expressed as British thermal units per net 
     kilowatt hour generated.
       ``(3) Production attributable to the taxpayer.--In the case 
     of a qualified facility in which more than 1 person has an 
     ownership interest, except to the extent provided in 
     regulations prescribed by the Secretary, production from the 
     facility shall be allocated among such persons in proportion 
     to their respective ownership interests in the gross sales 
     from such facility.
       ``(4) Related persons.--Persons shall be treated as related 
     to each other if such persons would be treated as a single 
     employer under the regulations prescribed under section 
     52(b). In the case of a corporation which is a member of an 
     affiliated group of corporations filing a consolidated 
     return, such corporation shall be treated as selling 
     electricity to an unrelated person if such electricity is 
     sold to such a person by another member of such group.
       ``(5) Pass-thru in the case of estates and trusts.--Under 
     regulations prescribed by the Secretary, rules similar to the 
     rules of subsection (d) of section 52 shall apply.
       ``(6) Allocation of credit to patrons of agricultural 
     cooperative.--
       ``(A) Election to allocate.--
       ``(i) In general.--In the case of an eligible cooperative 
     organization, any portion of the credit determined under 
     subsection (a) for the taxable year may, at the election of 
     the organization, be apportioned among patrons of the 
     organization on the basis of the amount of business done by 
     the patrons during the taxable year.
       ``(ii) Form and effect of election.--An election under 
     clause (i) for any taxable year shall be made on a timely 
     filed return for such year. Such election, once made, shall 
     be irrevocable for such taxable year. Such election shall not 
     take effect unless the organization designates the 
     apportionment as such in a written notice mailed to its 
     patrons during the payment period described in section 
     1382(d).
       ``(B) Treatment of organizations and patrons.--The amount 
     of the credit apportioned to any patrons under subparagraph 
     (A)--
       ``(i) shall not be included in the amount determined under 
     subsection (a) with respect to the organization for the 
     taxable year, and
       ``(ii) shall be included in the amount determined under 
     subsection (a) for the first taxable year of each patron 
     ending on or after the last day of the payment period (as 
     defined in section 1382(d)) for the taxable year of the 
     organization or, if earlier, for the taxable year of each 
     patron ending on or after the date on which the patron 
     receives notice from the cooperative of the apportionment.
       ``(C) Special rules for decrease in credits for taxable 
     year.--If the amount of the credit of a cooperative 
     organization determined under subsection (a) for a taxable 
     year is less than the amount of such credit shown on the 
     return of the cooperative organization for such year, an 
     amount equal to the excess of--
       ``(i) such reduction, over
       ``(ii) the amount not apportioned to such patrons under 
     subparagraph (A) for the taxable year,
     shall be treated as an increase in tax imposed by this 
     chapter on the organization. Such increase shall not be 
     treated as tax imposed by this chapter for purposes of 
     determining the amount of any credit under this chapter.
       ``(D) Eligible cooperative defined.--For purposes of this 
     section, the term `eligible cooperative' means a cooperative 
     organization described in section 1381(a) which is owned more 
     than 50 percent by agricultural producers or by entities 
     owned by agricultural producers. For this purpose an entity 
     owned by an agricultural producer is one that is more than 50 
     percent owned by agricultural producers.
       ``(7) Increase in credit in energy communities.--In the 
     case of any qualified facility which is located in an energy 
     community (as defined in section 45(b)(11)(B)), for purposes 
     of determining the amount of the credit under subsection (a) 
     with respect to any electricity produced by the taxpayer at 
     such facility during the taxable year, the applicable amount 
     under paragraph (2) of such subsection shall be increased by 
     an amount equal to 10 percent of the amount otherwise in 
     effect under such paragraph.
       ``(8) Credit reduced for tax-exempt bonds.--Rules similar 
     to the rules of section 45(b)(3) shall apply.
       ``(9) Wage requirements.--Rules similar to the rules of 
     section 45(b)(7) shall apply.
       ``(10) Apprenticeship requirements.--Rules similar to the 
     rules of section 45(b)(8) shall apply.
       ``(11) Domestic content bonus credit amount.--
       ``(A) In general.--In the case of any qualified facility 
     which satisfies the requirement under subparagraph (B)(i), 
     the amount of the credit determined under subsection (a) 
     shall 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,

[[Page H7620]]

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

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

       ``(I) in the case of a facility the construction of which 
     begins before January 1, 2025, 20 percent,
       ``(II) in the case of a facility the construction of which 
     begins after December 31, 2024, and before January 1, 2026, 
     27.5 percent,
       ``(III) in the case of a facility the construction of which 
     begins after December 31, 2025, and before January 1, 2027, 
     35 percent,
       ``(IV) in the case of a facility the construction of which 
     begins after December 31, 2026, and before January 1, 2028, 
     45 percent, and
       ``(V) in the case of a facility the construction of which 
     begins after December 31, 2027, 55 percent.

       ``(12) Phaseout for elective payment.--
       ``(A) In general.--In the case of a taxpayer making an 
     election under section 6417 with respect to a credit under 
     this section, the amount of such credit shall be replaced 
     with--
       ``(i) the value of such credit (determined without regard 
     to this paragraph), multiplied by
       ``(ii) the applicable percentage.
       ``(B) 100 percent applicable percentage for certain 
     qualified facilities.--In the case of any qualified 
     facility--
       ``(i) which satisfies the requirements under paragraph 
     (11)(B), or
       ``(ii) with a maximum net output of less than 1 megawatt 
     (as measured in alternating current),
     the applicable percentage shall be 100 percent.
       ``(C) Phased domestic content requirement.--Subject to 
     subparagraph (D), in the case of any qualified facility which 
     is not described in subparagraph (B), the applicable 
     percentage shall be--
       ``(i) if construction of such facility began before January 
     1, 2024, 100 percent,
       ``(ii) if construction of such facility began in calendar 
     year 2024, 90 percent,
       ``(iii) if construction of such facility began in calendar 
     year 2025, 85 percent, and
       ``(iv) if construction of such facility began after 
     December 31, 2025, 0 percent.
       ``(D) Exception.--
       ``(i) In general.--For purposes of this paragraph, the 
     Secretary shall provide exceptions to the requirements under 
     this paragraph if--

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

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

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

     SEC. 13702. CLEAN ELECTRICITY INVESTMENT CREDIT.

       (a) In General.--Subpart E of part IV of subchapter A of 
     chapter 1, as amended by section 107(a) of the CHIPS Act of 
     2022, is amended by inserting after section 48D the following 
     new section:

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

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

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

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

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

       ``(aa) satisfies the requirements of subsection (d)(3), and
       ``(bb) with respect to the construction of such property, 
     satisfies the requirements of subsection (d)(4),
     the applicable percentage shall be 30 percent.
       ``(3) Increase in credit rate in certain cases.--
       ``(A) Energy communities.--
       ``(i) In general.--In the case of any qualified investment 
     with respect to a qualified facility or with respect to 
     energy storage technology which is placed in service within 
     an energy community (as defined in section 45(b)(11)(B)), for 
     purposes of applying paragraph (2) with respect to such 
     property or investment, the applicable percentage shall be 
     increased by the applicable credit rate increase.
       ``(ii) Applicable credit rate increase.--For purposes of 
     clause (i), the applicable credit rate increase shall be an 
     amount equal to--

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

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

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

       ``(ii) properly chargeable to capital account of the 
     taxpayer.
       ``(2) Qualified property.--For purposes of this section, 
     the term `qualified property' means property--
       ``(A) which is--
       ``(i) tangible personal property, or
       ``(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).

[[Page H7621]]

       ``(5) Coordination with rehabilitation credit.--The 
     qualified investment with respect to any qualified facility 
     for any taxable year shall not include that portion of the 
     basis of any property which is attributable to qualified 
     rehabilitation expenditures (as defined in section 47(c)(2)).
       ``(6) Definitions.--For purposes of this subsection, the 
     terms `CO2e per KWh' and `greenhouse gas emissions rate' have 
     the same meaning given such terms under section 45Y.
       ``(c) Qualified Investment With Respect to Energy Storage 
     Technology.--
       ``(1) Qualified investment.--For purposes of subsection 
     (a), the qualified investment with respect to energy storage 
     technology for any taxable year is the basis of any energy 
     storage technology placed in service by the taxpayer during 
     such taxable year.
       ``(2) Energy storage technology.--For purposes of this 
     section, the term `energy storage technology' has the meaning 
     given such term in section 48(c)(6) (except that subparagraph 
     (D) of such section shall not apply).
       ``(d) Special Rules.--
       ``(1) Certain progress expenditure rules made applicable.--
     Rules similar to the rules of subsections (c)(4) and (d) of 
     section 46 (as in effect on the day before the date of the 
     enactment of the Revenue Reconciliation Act of 1990) shall 
     apply for purposes of subsection (a).
       ``(2) Special rule for property financed by subsidized 
     energy financing or private activity bonds.--Rules similar to 
     the rules of section 45(b)(3) shall apply.
       ``(3) Prevailing wage requirements.--Rules similar to the 
     rules of section 48(a)(10) shall apply.
       ``(4) Apprenticeship requirements.--Rules similar to the 
     rules of section 45(b)(8) shall apply.
       ``(5) Domestic content requirement for elective payment.--
     In the case of a taxpayer making an election under section 
     6417 with respect to a credit under this section, rules 
     similar to the rules of section 45Y(g)(12) shall apply.
       ``(e) Credit Phase-Out.--
       ``(1) In general.--The amount of the clean electricity 
     investment credit under subsection (a) for any qualified 
     investment with respect to any qualified facility or energy 
     storage technology the construction of which begins during a 
     calendar year described in paragraph (2) shall be equal to 
     the product of--
       ``(A) the amount of the credit determined under subsection 
     (a) without regard to this subsection, multiplied by
       ``(B) the phase-out percentage under paragraph (2).
       ``(2) Phase-out percentage.--The phase-out percentage under 
     this paragraph is equal to--
       ``(A) for any qualified investment with respect to any 
     qualified facility or energy storage technology the 
     construction of which begins during the first calendar year 
     following the applicable year, 100 percent,
       ``(B) for any qualified investment with respect to any 
     qualified facility or energy storage technology the 
     construction of which begins during the second calendar year 
     following the applicable year, 75 percent,
       ``(C) for any qualified investment with respect to any 
     qualified facility or energy storage technology the 
     construction of which begins during the third calendar year 
     following the applicable year, 50 percent, and
       ``(D) for any qualified investment with respect to any 
     qualified facility or energy storage technology the 
     construction of which begins during any calendar year 
     subsequent to the calendar year described in subparagraph 
     (C), 0 percent.
       ``(3) Applicable year.--For purposes of this subsection, 
     the term `applicable year' has the same meaning given such 
     term in section 45Y(d)(3).
       ``(f) Greenhouse Gas.--In this section, the term 
     `greenhouse gas' has the same meaning given such term under 
     section 45Y(e)(2).
       ``(g) Recapture of Credit.--For purposes of section 50, if 
     the Secretary determines that the greenhouse gas emissions 
     rate for a qualified facility is greater than 10 grams of 
     CO2e per KWh, any property for which a credit was 
     allowed under this section with respect to such facility 
     shall cease to be investment credit property in the taxable 
     year in which the determination is made.
       ``(h) Special Rules for Certain Facilities Placed in 
     Service in Connection With Low-income Communities.--
       ``(1) In general.--In the case of any applicable facility 
     with respect to which the Secretary makes an allocation of 
     environmental justice capacity limitation under paragraph 
     (4)--
       ``(A) the applicable percentage otherwise determined under 
     subsection (a)(2) with respect to any eligible property which 
     is part of such facility shall be increased by--
       ``(i) in the case of a facility described in subclause (I) 
     of paragraph (2)(A)(iii) and not described in subclause (II) 
     of such paragraph, 10 percentage points, and
       ``(ii) in the case of a facility described in subclause 
     (II) of paragraph (2)(A)(iii), 20 percentage points, and
       ``(B) the increase in the credit determined under 
     subsection (a) by reason of this subsection for any taxable 
     year with respect to all property which is part of such 
     facility shall not exceed the amount which bears the same 
     ratio to the amount of such increase (determined without 
     regard to this subparagraph) as--
       ``(i) the environmental justice capacity limitation 
     allocated to such facility, bears to
       ``(ii) the total megawatt nameplate capacity of such 
     facility, as measured in direct current.
       ``(2) Applicable facility.--For purposes of this 
     subsection--
       ``(A) In general.--The term `applicable facility' means any 
     qualified facility--
       ``(i) which is not described in section 45Y(b)(2)(B),
       ``(ii) which has a maximum net output of less than 5 
     megawatts (as measured in alternating current), and
       ``(iii) which--

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

       ``(B) Qualified low-income residential building project.--A 
     facility shall be treated as part of a qualified low-income 
     residential building project if--
       ``(i) such facility is installed on a residential rental 
     building which participates in a covered housing program (as 
     defined in section 41411(a) of the Violence Against Women Act 
     of 1994 (34 U.S.C. 12491(a)(3)), a housing assistance program 
     administered by the Department of Agriculture under title V 
     of the Housing Act of 1949, a housing program administered by 
     a tribally designated housing entity (as defined in section 
     4(22) of the Native American Housing Assistance and Self-
     Determination Act of 1996 (25 U.S.C. 4103(22))) or such other 
     affordable housing programs as the Secretary may provide, and
       ``(ii) the financial benefits of the electricity produced 
     by such facility are allocated equitably among the occupants 
     of the dwelling units of such building.
       ``(C) Qualified low-income economic benefit project.--A 
     facility shall be treated as part of a qualified low-income 
     economic benefit project if at least 50 percent of the 
     financial benefits of the electricity produced by such 
     facility are provided to households with income of--
       ``(i) less than 200 percent of the poverty line (as defined 
     in section 36B(d)(3)(A)) applicable to a family of the size 
     involved, or
       ``(ii) less than 80 percent of area median gross income (as 
     determined under section 142(d)(2)(B)).
       ``(D) Financial benefit.--For purposes of subparagraphs (B) 
     and (C), electricity acquired at a below-market rate shall 
     not fail to be taken into account as a financial benefit.
       ``(3) Eligible property.--For purposes of this subsection, 
     the term `eligible property' means a qualified investment 
     with respect to any applicable facility.
       ``(4) Allocations.--
       ``(A) In general.--Not later than January 1, 2025, the 
     Secretary shall establish a program to allocate amounts of 
     environmental justice capacity limitation to applicable 
     facilities. In establishing such program and to carry out the 
     purposes of this subsection, the Secretary shall provide 
     procedures to allow for an efficient allocation process, 
     including, when determined appropriate, consideration 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.

[[Page H7622]]

       ``(i) Guidance.--Not later than January 1, 2025, the 
     Secretary shall issue guidance regarding implementation of 
     this section.''.
       (b) Conforming Amendments.--
       (1) Section 46, as amended by section 107(d) of the CHIPS 
     Act of 2022, is amended--
       (A) in paragraph (5), by striking ``and'' at the end,
       (B) in paragraph (6), by striking the period at the end and 
     inserting ``, and'', and
       (C) by adding at the end the following:
       ``(7) the clean electricity investment credit.''.
       (2) Section 49(a)(1)(C), as amended by section 107(d) of 
     the CHIPS Act of 2022, is amended--
       (A) by striking ``and'' at the end of clause (v),
       (B) by striking the period at the end of clause (vi) and 
     inserting a comma, and
       (C) by adding at the end the following new clauses:
       ``(vii) the basis of any qualified property which is part 
     of a qualified facility under section 48E, and
       ``(viii) the basis of any energy storage technology under 
     section 48E.''.
       (3) Section 50(a)(2)(E), as amended by section 107(d) of 
     the CHIPS Act of 2022, is amended by striking ``or 
     48D(b)(5)'' and inserting ``48D(b)(5), or 48E(e)''.
       (4) Section 50(c)(3) is amended by inserting ``or clean 
     electricity investment credit'' after ``In the case of any 
     energy credit''.
       (5) The table of sections for subpart E of part IV of 
     subchapter A of chapter 1, as amended by section 107(d) of 
     the CHIPS Act of 2022, is amended by inserting after the item 
     relating to section 48D the following new item:

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

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

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

     SEC. 13704. CLEAN FUEL PRODUCTION CREDIT.

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

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

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

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

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

       ``(I) an amount equal to--

       ``(aa) 50 kilograms of CO2e per mmBTU, minus
       ``(bb) the emissions rate for such fuel, divided by

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

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

       ``(I) the most recent Carbon Offsetting and Reduction 
     Scheme for International Aviation which has been adopted by 
     the International Civil Aviation Organization with the 
     agreement of the United States, or
       ``(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.

[[Page H7623]]

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

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

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

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

             PART 8--CREDIT MONETIZATION AND APPROPRIATIONS

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

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

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

       ``(a) In General.--In the case of an applicable entity 
     making an election (at such time and in such manner as the 
     Secretary may provide) under this section with respect to any 
     applicable credit determined with respect to such entity, 
     such entity shall be treated as making a payment against the 
     tax imposed by subtitle A (for the taxable year with respect 
     to which such credit was determined) equal to the amount of 
     such credit.
       ``(b) Applicable Credit.--The term `applicable credit' 
     means each of the following:
       ``(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

[[Page H7624]]

     other than an entity described in subparagraph (A) makes an 
     election under this subparagraph with respect to any taxable 
     year in which such taxpayer has, after December 31, 2022, 
     placed in service carbon capture equipment at a qualified 
     facility (as defined in section 45Q(d)), such taxpayer shall 
     be treated as an applicable entity for purposes of this 
     section for such taxable year, but only with respect to the 
     credit described in subsection (b)(3).
       ``(D) Election with respect to advanced manufacturing 
     production credit.--
       ``(i) In general.--If a taxpayer other than an entity 
     described in subparagraph (A) makes an election under this 
     subparagraph with respect to any taxable year in which such 
     taxpayer has, after December 31, 2022, produced eligible 
     components (as defined in section 45X(c)(1)), such taxpayer 
     shall be treated as an applicable entity for purposes of this 
     section for such taxable year, but only with respect to the 
     credit described in subsection (b)(7).
       ``(ii) Limitation.--

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

       ``(iii) Prohibition on transfer.--For any taxable year 
     described in clause (ii)(I), no election may be made by the 
     taxpayer under section 6418(a) for such taxable year with 
     respect to eligible components for purposes of the credit 
     described in subsection (b)(7).
       ``(E) Other rules.--
       ``(i) In general.--An election made under subparagraph (B), 
     (C), or (D) shall be made at such time and in such manner as 
     the Secretary may provide.
       ``(ii) Limitation.--No election may be made under 
     subparagraph (B), (C), or (D) with respect to any taxable 
     year beginning after December 31, 2032.
       ``(2) Application.--In the case of any applicable entity 
     which makes the election described in subsection (a), any 
     applicable credit shall be determined--
       ``(A) without regard to paragraphs (3) and (4)(A)(i) of 
     section 50(b), and
       ``(B) by treating any property with respect to which such 
     credit is determined as used in a trade or business of the 
     applicable entity.
       ``(3) Elections.--
       ``(A) In general.--
       ``(i) Due date.--Any election under subsection (a) shall be 
     made not later than--

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

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

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

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

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

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

[[Page H7625]]

       ``(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 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

[[Page H7626]]

     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 which is 1 day after the date of 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. REINSTATEMENT OF LIMITATION RULES FOR DEDUCTION 
                   FOR STATE AND LOCAL, ETC., TAXES; EXTENSION OF 
                   LIMITATION ON EXCESS BUSINESS LOSSES OF 
                   NONCORPORATE TAXPAYERS.

       (a) Reinstatement of Limitation Rules for Deduction for 
     State and Local, etc., Taxes.--
       (1) In general.--Section 164(b)(6), as amended by section 
     13904, is further amended--
       (A) in the heading, by striking ``2026'' and inserting 
     ``2025'', and
       (B) by striking ``2027'' and inserting ``2026''.
       (2) Effective date.--The amendments made by this subsection 
     shall apply to taxable years beginning after December 31, 
     2022.
       (b) Extension of Limitation on Excess Business Losses of 
     Noncorporate Taxpayers.--
       (1) In general.--Section 461(l)(1) is amended by striking 
     ``January 1, 2027'' each place it appears and inserting 
     ``January 1, 2029''.
       (2) Effective date.--The amendments made by this subsection 
     shall apply to taxable years beginning after December 31, 
     2026.

     SEC. 13904. REMOVAL OF HARMFUL SMALL BUSINESS TAXES; 
                   EXTENSION OF LIMITATION ON DEDUCTION FOR STATE 
                   AND LOCAL, ETC., TAXES.

       (a) Removal of Harmful Small Business Taxes.--Subparagraph 
     (D) of section 59(k)(1), as added by section 10101, is 
     amended to read as follows:
       ``(D) Special rules for determining applicable corporation 
     status.--Solely for purposes of determining whether a 
     corporation is an applicable corporation under this 
     paragraph, all adjusted financial statement income of persons 
     treated as a single employer with such corporation under 
     subsection (a) or (b) of section 52 shall be treated as 
     adjusted financial statement income of such corporation, and 
     adjusted financial statement income of such corporation shall 
     be determined without regard to paragraphs (2)(D)(i) and (11) 
     of section 56A(c).''.
       (b) Extension of Limitation on Deduction for State and 
     Local, etc., Taxes.--
       (1) In general.--Section 164(b)(6) is amended--
       (A) in the heading, by striking ``2025'' and inserting 
     ``2026'', and
       (B) by striking ``2026'' and inserting ``2027''.
       (2) Effective date.--The amendments made by this subsection 
     shall apply to taxable years beginning after December 31, 
     2022.

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

                     Subtitle A--General Provisions

     SEC. 20001. DEFINITION OF SECRETARY.

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

                        Subtitle B--Conservation

     SEC. 21001. ADDITIONAL AGRICULTURAL CONSERVATION INVESTMENTS.

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

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

       (iii) the funds shall be available for 1 or more 
     agricultural conservation practices or enhancements that the 
     Secretary determines directly improve soil carbon, reduce 
     nitrogen losses, or reduce, capture, avoid, or sequester 
     carbon dioxide, methane, or nitrous oxide emissions, 
     associated with agricultural production;
       (2) to carry out, using the facilities and authorities of 
     the Commodity Credit Corporation, the conservation 
     stewardship program under subchapter B of that chapter (16 
     U.S.C. 3839aa-21 through 3839aa-25)--
       (A)(i) $250,000,000 for fiscal year 2023;
       (ii) $500,000,000 for fiscal year 2024;
       (iii) $1,000,000,000 for fiscal year 2025; and
       (iv) $1,500,000,000 for fiscal year 2026; and
       (B) subject to the condition on the use of the funds that 
     the funds shall only be available for 1 or more agricultural 
     conservation practices, enhancements, or bundles that the 
     Secretary determines directly improve soil carbon, reduce 
     nitrogen losses, or reduce, capture, avoid, or sequester 
     carbon dioxide, methane, or nitrous oxide emissions, 
     associated with agricultural production;
       (3) to carry out, using the facilities and authorities of 
     the Commodity Credit Corporation, the agricultural 
     conservation easement program under subtitle H of title XII 
     of that Act (16 U.S.C. 3865 through 3865d) for easements or 
     interests in land that will most reduce, capture, avoid, or 
     sequester carbon dioxide, methane, or nitrous oxide emissions 
     associated with land eligible for the program--
       (A) $100,000,000 for fiscal year 2023;
       (B) $200,000,000 for fiscal year 2024;
       (C) $500,000,000 for fiscal year 2025; and
       (D) $600,000,000 for fiscal year 2026; and
       (4) to carry out, using the facilities and authorities of 
     the Commodity Credit Corporation, the regional conservation 
     partnership program under subtitle I of title XII of that Act 
     (16 U.S.C. 3871 through 3871f)--
       (A)(i) $250,000,000 for fiscal year 2023;
       (ii) $800,000,000 for fiscal year 2024;
       (iii) $1,500,000,000 for fiscal year 2025; and
       (iv) $2,400,000,000 for fiscal year 2026; and
       (B) subject to the conditions on the use of the funds 
     that--
       (i) section 1271C(d)(2)(B) of the Food Security Act of 1985 
     (16 U.S.C. 3871c(d)(2)(B)) shall not apply; and
       (ii) the Secretary shall prioritize partnership agreements 
     under section 1271C(d) of the Food Security Act of 1985 (16 
     U.S.C. 3871c(d)) that support the implementation of 
     conservation projects that assist agricultural producers and 
     nonindustrial private forestland owners in directly improving 
     soil carbon, reducing nitrogen losses, or reducing, 
     capturing, avoiding, or sequestering carbon dioxide, methane, 
     or nitrous oxide emissions, associated with agricultural 
     production.
       (b) Conditions.--The funds made available under subsection 
     (a) are subject to the conditions that the Secretary shall 
     not--
       (1) enter into any agreement--
       (A) that is for a term extending beyond September 30, 2031; 
     or
       (B) under which any payment could be outlaid or funds 
     disbursed after September 30, 2031; or
       (2) use any other funds available to the Secretary to 
     satisfy obligations initially made under this section.

[[Page H7627]]

       (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 otherwise 
     appropriated, $9,700,000,000, to remain available until 
     September 30, 2031, for the long-term resiliency, 
     reliability, and affordability of rural electric systems by 
     providing to an eligible entity (defined as an electric 
     cooperative described in section 501(c)(12) or 1381(a)(2) of 
     the Internal Revenue Code of 1986 and is or has been a Rural 
     Utilities Service electric loan borrower pursuant to the 
     Rural Electrification Act of 1936 or serving a predominantly 
     rural area or a wholly or jointly owned subsidiary of such 
     electric cooperative) loans, modifications of loans, the cost 
     of loans and modifications, and other financial assistance to 
     achieve the greatest reduction in carbon dioxide, methane, 
     and nitrous oxide emissions associated with rural electric 
     systems through the purchase of renewable energy, renewable 
     energy systems, zero-emission systems, and carbon capture and 
     storage systems, to deploy such systems, or to make energy 
     efficiency improvements to electric generation and 
     transmission systems of the eligible entity after the date of 
     enactment of this subsection.
       ``(2) Limitation.--No eligible entity may receive an amount 
     equal to more than 10 percent

[[Page H7628]]

     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;
       (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

[[Page H7629]]

       (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 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.

[[Page H7630]]

  


      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 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.

[[Page H7631]]

       (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;

       (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:

[[Page H7632]]

       (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
       (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.

[[Page H7633]]

       (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 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).

[[Page H7634]]

       (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''.

                     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--

[[Page H7635]]

       (i) at a minimum of 275 kilovolts of either alternating-
     current or direct-current electric energy by an entity; or
       (ii) offshore and at a minimum of 200 kilovolts of either 
     alternating-current or direct-current electric energy by an 
     entity; and
       (B) for which such entity has applied, or informed a siting 
     authority of such entity's intent to apply, for regulatory 
     approval.
       (2) Siting authority.--The term ``siting authority'' means 
     a State, local, or Tribal governmental entity with authority 
     to make a final determination regarding the siting, 
     permitting, or regulatory status of a covered transmission 
     project that is proposed to be located in an area under the 
     jurisdiction of the entity.

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

       (a) Appropriation.--In addition to amounts otherwise 
     available, there is appropriated to the Secretary for fiscal 
     year 2022, out of any money in the Treasury not otherwise 
     appropriated, $100,000,000, to remain available through 
     September 30, 2031, to carry out this section.
       (b) Use of Funds.--The Secretary shall use amounts made 
     available under subsection (a)--
       (1) to pay expenses associated with convening relevant 
     stakeholders to address the development of interregional 
     electricity transmission and transmission of electricity that 
     is generated by offshore wind; and
       (2) to conduct planning, modeling, and analysis regarding 
     interregional electricity transmission and transmission of 
     electricity that is generated by offshore wind, taking into 
     account the local, regional, and national economic, 
     reliability, resilience, security, public policy, and 
     environmental benefits of interregional electricity 
     transmission and transmission of electricity that is 
     generated by offshore wind, including planning, modeling, and 
     analysis, as the Secretary determines appropriate, pertaining 
     to--
       (A) clean energy integration into the electric grid, 
     including the identification of renewable energy zones;
       (B) the effects of changes in weather due to climate change 
     on the reliability and resilience of the electric grid;
       (C) cost allocation methodologies that facilitate the 
     expansion of the bulk power system;
       (D) the benefits of coordination between generator 
     interconnection processes and transmission planning 
     processes;
       (E) the effect of increased electrification on the electric 
     grid;
       (F) power flow modeling;
       (G) the benefits of increased interconnections or interties 
     between or among the Western Interconnection, the Eastern 
     Interconnection, the Electric Reliability Council of Texas, 
     and other interconnections, as applicable;
       (H) the cooptimization of transmission and generation, 
     including variable energy resources, energy storage, and 
     demand-side management;
       (I) the opportunities for use of nontransmission 
     alternatives, energy storage, and grid-enhancing 
     technologies;
       (J) economic development opportunities for communities 
     arising from development of interregional electricity 
     transmission and transmission of electricity that is 
     generated by offshore wind;
       (K) evaluation of existing rights-of-way and the need for 
     additional transmission corridors; and
       (L) a planned national transmission grid, which would 
     include a networked transmission system to optimize the 
     existing grid for interconnection of offshore wind farms.

                           PART 6--INDUSTRIAL

     SEC. 50161. ADVANCED INDUSTRIAL FACILITIES DEPLOYMENT 
                   PROGRAM.

       (a) Office of Clean Energy Demonstrations.--In addition to 
     amounts otherwise available, there is appropriated to the 
     Secretary, acting through the Office of Clean Energy 
     Demonstrations, for fiscal year 2022, out of any money in the 
     Treasury not otherwise appropriated, $5,812,000,000, to 
     remain available through September 30, 2026, to carry out 
     this section.
       (b) Financial Assistance.--The Secretary shall use funds 
     appropriated by subsection (a) to provide financial 
     assistance, on a competitive basis, to eligible entities to 
     carry out projects for--
       (1) the purchase and installation, or implementation, of 
     advanced industrial technology at an eligible facility;
       (2) retrofits, upgrades to, or operational improvements at 
     an eligible facility to install or implement advanced 
     industrial technology; or
       (3) engineering studies and other work needed to prepare an 
     eligible facility for activities described in paragraph (1) 
     or (2).
       (c) Application.--To be eligible to receive financial 
     assistance under subsection (b), an eligible entity shall 
     submit to the Secretary an application at such time, in such 
     manner, and containing such information as the Secretary may 
     require, including the expected greenhouse gas emissions 
     reductions to be achieved by carrying out the project.
       (d) Priority.--In providing financial assistance under 
     subsection (b), the Secretary shall give priority 
     consideration to projects on the basis of, as determined by 
     the Secretary--
       (1) the expected greenhouse gas emissions reductions to be 
     achieved by carrying out the project;
       (2) the extent to which the project would provide the 
     greatest benefit for the greatest number of people within the 
     area in which the eligible facility is located; and
       (3) whether the eligible entity participates or would 
     participate in a partnership with purchasers of the output of 
     the eligible facility.
       (e) Cost Share.--The Secretary shall require an eligible 
     entity to provide not less than 50 percent of the cost of a 
     project carried out pursuant to this section.
       (f) Administrative Costs.--The Secretary shall reserve not 
     more than $300,000,000 of amounts made available under 
     subsection (a) for administrative costs of carrying out this 
     section.
       (g) Definitions.--In this section:
       (1) Advanced industrial technology.--The term ``advanced 
     industrial technology'' means a technology directly involved 
     in an industrial process, as described in any of paragraphs 
     (1) through (6) of section 454(c) of the Energy Independence 
     and Security Act of 2007 (42 U.S.C. 17113(c)), and designed 
     to accelerate greenhouse gas emissions reduction progress to 
     net-zero at an eligible facility, as determined by the 
     Secretary.
       (2) Eligible entity.--The term ``eligible entity'' means 
     the owner or operator of an eligible facility.
       (3) Eligible facility.--The term ``eligible facility'' 
     means a domestic, non-Federal, nonpower industrial or 
     manufacturing facility engaged in energy-intensive industrial 
     processes, including production processes for iron, steel, 
     steel mill products, aluminum, cement, concrete, glass, pulp, 
     paper, industrial ceramics, chemicals, and other energy 
     intensive industrial processes, as determined by the 
     Secretary.
       (4) Financial assistance.--The term ``financial 
     assistance'' means a grant, rebate, direct loan, or 
     cooperative agreement.

                      PART 7--OTHER ENERGY MATTERS

     SEC. 50171. DEPARTMENT OF ENERGY OVERSIGHT.

       In addition to amounts otherwise available, there is 
     appropriated to the Secretary for fiscal year 2022, out of 
     any money in the Treasury not otherwise appropriated, 
     $20,000,000, to remain available through September 30, 2031, 
     for oversight by the Department of Energy Office of Inspector 
     General of the Department of Energy activities for which 
     funding is appropriated in this subtitle.

     SEC. 50172. NATIONAL LABORATORY INFRASTRUCTURE.

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

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

       (a) Appropriations.--In addition to amounts otherwise 
     available, there is appropriated to the Secretary of for 
     fiscal year 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

[[Page H7636]]

     appropriated by subsection (a) for administrative purposes.

                     Subtitle B--Natural Resources

                       PART 1--GENERAL PROVISIONS

     SEC. 50211. DEFINITIONS.

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

                          PART 2--PUBLIC LANDS

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

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

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

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

     SEC. 50223. NATIONAL PARK SERVICE EMPLOYEES.

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

     SEC. 50224. NATIONAL PARK SYSTEM DEFERRED MAINTENANCE.

       In addition to amounts otherwise available, there is 
     appropriated to the Secretary for fiscal year 2022, out of 
     any money in the Treasury not otherwise appropriated, 
     $200,000,000, to remain available through September 30, 2026, 
     to carry out priority deferred maintenance projects, through 
     direct expenditures or transfers, within the boundaries of 
     the National Park System.

               PART 3--DROUGHT RESPONSE AND PREPAREDNESS

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

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

     SEC. 50232. CANAL IMPROVEMENT PROJECTS.

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

     SEC. 50233. DROUGHT MITIGATION IN THE RECLAMATION STATES.

       (a) Definition of Reclamation State.--In this section, the 
     term ``Reclamation State'' means a State or territory 
     described in the first section of the Act of June 17, 1902 
     (32 Stat. 388, chapter 1093; 43 U.S.C. 391).
       (b) Appropriation.--In addition to amounts otherwise 
     available, there is appropriated to the Secretary (acting 
     through the Commissioner of Reclamation), for fiscal year 
     2022, out of any money in the Treasury not otherwise 
     appropriated, $4,000,000,000, to remain available through 
     September 30, 2026, for grants, contracts, or financial 
     assistance agreements, in accordance with the reclamation 
     laws, to or with public entities and Indian Tribes, that 
     provide for the conduct of the following activities to 
     mitigate the impacts of drought in the Reclamation States, 
     with priority given to the Colorado River Basin and other 
     basins experiencing comparable levels of long-term drought, 
     to be implemented in compliance with applicable environmental 
     law:
       (1) Compensation for a temporary or multiyear voluntary 
     reduction in diversion of water or consumptive water use.
       (2) Voluntary system conservation projects that achieve 
     verifiable reductions in use of or demand for water supplies 
     or provide environmental benefits in the Lower Basin or Upper 
     Basin of the Colorado River.
       (3) Ecosystem and habitat restoration projects to address 
     issues directly caused by drought in a river basin or inland 
     water body.
       (c) Report.--Not later than 1 year after the date of 
     enactment of this Act, and each year thereafter, the 
     Secretary shall submit to Congress a report that describes 
     any expenditures under this section.

                        PART 4--INSULAR AFFAIRS

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

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

                         PART 5--OFFSHORE WIND

     SEC. 50251. LEASING ON THE OUTER CONTINENTAL SHELF.

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

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

       ``(1) all''; and

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

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

[[Page H7637]]

  


                     PART 6--FOSSIL FUEL RESOURCES

     SEC. 50261. OFFSHORE OIL AND GAS ROYALTY RATE.

       Section 8(a)(1) of the Outer Continental Shelf Lands Act 
     (43 U.S.C. 1337(a)(1)) is amended--
       (1) in each of subparagraphs (A) and (C), by striking ``not 
     less than 12\1/2\ per centum'' each place it appears and 
     inserting ``not less than 16\2/3\ percent, but not more than 
     18\3/4\ percent, during the 10-year period beginning on the 
     date of enactment of the Act titled `An Act to provide for 
     reconciliation pursuant to title II of S. Con. Res. 14', and 
     not less than 16\2/3\ percent thereafter,'';
       (2) in subparagraph (F), by striking ``no less than 12\1/2\ 
     per centum'' and inserting ``not less than 16\2/3\ percent, 
     but not more than 18\3/4\ percent, during the 10-year period 
     beginning on the date of enactment of the Act titled `An Act 
     to provide for reconciliation pursuant to title II of S. Con. 
     Res. 14', and not less than 16\2/3\ percent thereafter,''; 
     and
       (3) in subparagraph (H), by striking ``no less than 12 and 
     \1/2\ per centum'' and inserting ``not less than 16\2/3\ 
     percent, but not more than 18\3/4\ percent, during the 10-
     year period beginning on the date of enactment of the Act 
     titled `An Act to provide for reconciliation pursuant to 
     title II of S. Con. Res. 14', and not less than 16\2/3\ 
     percent thereafter,''.

     SEC. 50262. MINERAL LEASING ACT MODERNIZATION.

       (a) Onshore Oil and Gas Royalty Rates.--
       (1) Lease of oil and gas land.--Section 17 of the Mineral 
     Leasing Act (30 U.S.C. 226) is amended--
       (A) in subsection (b)(1)(A), in the fifth sentence--
       (i) by striking ``12.5'' and inserting ``16\2/3\''; and
       (ii) by inserting ``or, in the case of a lease issued 
     during the 10-year period beginning on the date of enactment 
     of the Act titled `An Act to provide for reconciliation 
     pursuant to title II of S. Con. Res. 14', 16\2/3\ percent in 
     amount or value of the production removed or sold from the 
     lease'' before the period at the end; and
       (B) by striking ``12\1/2\ per centum'' each place it 
     appears and inserting ``16\2/3\ percent''.
       (2) Conditions for reinstatement.--Section 31(e)(3) of the 
     Mineral Leasing Act (30 U.S.C. 188(e)(3)) is amended by 
     striking ``16\2/3\'' each place it appears and inserting 
     ``20''.
       (b) Oil and Gas Minimum Bid.--Section 17(b) of the Mineral 
     Leasing Act (30 U.S.C. 226(b)) is amended--
       (1) in paragraph (1)(B), in the first sentence, by striking 
     ``$2 per acre for a period of 2 years from the date of 
     enactment of the Federal Onshore Oil and Gas Leasing Reform 
     Act of 1987.'' and inserting ``$10 per acre during the 10-
     year period beginning on the date of enactment of the Act 
     titled `An Act to provide for reconciliation pursuant to 
     title II of S. Con. Res. 14'.''; and
       (2) in paragraph (2)(C), by striking ``$2 per acre'' and 
     inserting ``$10 per acre''.
       (c) Fossil Fuel Rental Rates.--
       (1) Annual rentals.--Section 17(d) of the Mineral Leasing 
     Act (30 U.S.C. 226(d)) is amended, in the first sentence, by 
     striking ``$1.50 per acre'' and all that follows through the 
     period at the end and inserting ``$3 per acre per year during 
     the 2-year period beginning on the date the lease begins for 
     new leases, and after the end of that 2-year period, $5 per 
     acre per year for the following 6-year period, and not less 
     than $15 per acre per year thereafter, or, in the case of a 
     lease issued during the 10-year period beginning on the date 
     of enactment of the Act titled `An Act to provide for 
     reconciliation pursuant to title II of S. Con. Res. 14', $3 
     per acre per year during the 2-year period beginning on the 
     date the lease begins, and after the end of that 2-year 
     period, $5 per acre per year for the following 6-year period, 
     and $15 per acre per year thereafter.''.
       (2) Rentals in reinstated leases.--Section 31(e)(2) of the 
     Mineral Leasing Act (30 U.S.C. 188(e)(2)) is amended by 
     striking ``$10'' and inserting ``$20''.
       (d) Expression of Interest Fee.--Section 17 of the Mineral 
     Leasing Act (30 U.S.C. 226) is amended by adding at the end 
     the following:
       ``(q) Fee for Expression of Interest.--
       ``(1) In general.--The Secretary shall assess a 
     nonrefundable fee against any person that, in accordance with 
     procedures established by the Secretary to carry out this 
     subsection, submits an expression of interest in leasing land 
     available for disposition under this section for exploration 
     for, and development of, oil or gas.
       ``(2) Amount of fee.--
       ``(A) In general.--Subject to subparagraph (B), the fee 
     assessed under paragraph (1) shall be $5 per acre of the area 
     covered by the applicable expression of interest.
       ``(B) Adjustment of fee.--The Secretary shall, by 
     regulation, not less frequently than every 4 years, adjust 
     the amount of the fee under subparagraph (A) to reflect the 
     change in inflation.''.
       (e) Elimination of Noncompetitive Leasing.--
       (1) In general.--Section 17 of the Mineral Leasing Act (30 
     U.S.C. 226) is amended--
       (A) in subsection (b)--
       (i) in paragraph (1)(A)--

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

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

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

       (ii) in paragraph (3)--

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

       ``(3) payment'';
       (C) in subsection (g)--
       (i) in paragraph (1), by striking ``as a competitive'' and 
     all that follows through ``of this Act'' and inserting ``in 
     the same manner as the original lease issued pursuant to 
     section 17'';
       (ii) by striking paragraph (2);
       (iii) by redesignating paragraphs (3) and (4) as paragraphs 
     (2) and (3), respectively; and
       (iv) in paragraph (2) (as so redesignated), by striking 
     ``applicable to leases issued under subsection 17(c) of this 
     Act (30 U.S.C. 226(c)) except,'' and inserting ``except'';
       (D) in subsection (h), by striking ``subsections (d) and 
     (f) of this section'' and inserting ``subsection (d)'';
       (E) in subsection (i), by striking ``(i)(1) In acting'' and 
     all that follows through ``of this section'' in paragraph (2) 
     and inserting the following:
       ``(i) Royalty reduction in reinstated leases.--In acting on 
     a petition for reinstatement pursuant to subsection (d)'';
       (F) by striking subsection (f); and
       (G) by redesignating subsections (g) through (j) as 
     subsections (f) through (i), respectively.

     SEC. 50263. ROYALTIES ON ALL EXTRACTED METHANE.

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

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

       (a) Definitions.--In this section:
       (1) Lease sale 257.--The term ``Lease Sale 257'' means the 
     lease sale numbered 257 that was approved in the Record of 
     Decision described in the notice of availability of a record 
     of decision issued on August 31, 2021, entitled ``Gulf of 
     Mexico, Outer Continental Shelf (OCS), Oil and Gas Lease Sale 
     257'' (86 Fed. Reg. 50160 (September 7, 2021)), and is the 
     subject of the final notice of sale entitled ``Gulf of Mexico 
     Outer Continental Shelf Oil and Gas Lease Sale 257'' (86 Fed. 
     Reg. 54728 (October 4, 2021)).
       (2) Lease sale 258.--The term ``Lease Sale 258'' means the 
     lease sale numbered 258 described in the 2017-2022 Outer 
     Continental Shelf Oil and Gas Leasing Proposed Final Program 
     published on November 18, 2016, and approved by the Secretary 
     in the Record of Decision issued on January 17, 2017, 
     described in the notice of availability entitled ``Record of 
     Decision for the 2017-2022 Outer Continental Shelf Oil and 
     Gas Leasing Program Final Programmatic Environmental Impact 
     Statement; MMAA104000'' (82 Fed. Reg. 6643 (January 19, 
     2017)).
       (3) Lease sale 259.--The term ``Lease Sale 259'' means the 
     lease sale numbered 259 described in the 2017-2022 Outer 
     Continental Shelf Oil and Gas Leasing Proposed Final Program 
     published on November 18, 2016, and approved by the Secretary 
     in the Record of Decision issued on January 17, 2017, 
     described in the notice of availability entitled ``Record of 
     Decision for the 2017-2022 Outer Continental Shelf Oil and 
     Gas Leasing Program Final Programmatic Environmental Impact 
     Statement; MMAA104000'' (82 Fed. Reg. 6643 (January 19, 
     2017)).
       (4) Lease sale 261.--The term ``Lease Sale 261'' means the 
     lease sale numbered 261 described in the 2017-2022 Outer 
     Continental Shelf Oil and Gas Leasing Proposed Final Program 
     published on November 18, 2016, and approved

[[Page H7638]]

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

     SEC. 50265. ENSURING ENERGY SECURITY.

       (a) Definitions.--In this section:
       (1) Federal land.--The term ``Federal land'' means public 
     lands (as defined in section 103 of the Federal Land Policy 
     and Management Act of 1976 (43 U.S.C. 1702)).
       (2) Offshore lease sale.--The term ``offshore lease sale'' 
     means an oil and gas lease sale--
       (A) that is held by the Secretary in accordance with the 
     Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.); 
     and
       (B) that, if any acceptable bids have been received for any 
     tract offered in the lease sale, results in the issuance of a 
     lease.
       (3) Onshore lease sale.--The term ``onshore lease sale'' 
     means a quarterly oil and gas lease sale--
       (A) that is held by the Secretary in accordance with 
     section 17 of the Mineral Leasing Act (30 U.S.C. 226); and
       (B) that, if any acceptable bids have been received for any 
     parcel offered in the lease sale, results in the issuance of 
     a lease.
       (b) Limitation on Issuance of Certain Leases or Rights-of-
     way.--During the 10-year period beginning on the date of 
     enactment of this Act--
       (1) the Secretary may not issue a right-of-way for wind or 
     solar energy development on Federal land unless--
       (A) an onshore lease sale has been held during the 120-day 
     period ending on the date of the issuance of the right-of-way 
     for wind or solar energy development; and
       (B) the sum total of acres offered for lease in onshore 
     lease sales during the 1-year period ending on the date of 
     the issuance of the right-of-way for wind or solar energy 
     development is not less than the lesser of--
       (i) 2,000,000 acres; and
       (ii) 50 percent of the acreage for which expressions of 
     interest have been submitted for lease sales during that 
     period; and
       (2) the Secretary may not issue a lease for offshore wind 
     development under section 8(p)(1)(C) of the Outer Continental 
     Shelf Lands Act (43 U.S.C. 1337(p)(1)(C)) unless--
       (A) an offshore lease sale has been held during the 1-year 
     period ending on the date of the issuance of the lease for 
     offshore wind development; and
       (B) the sum total of acres offered for lease in offshore 
     lease sales during the 1-year period ending on the date of 
     the issuance of the lease for offshore wind development is 
     not less than 60,000,000 acres.
       (c) Savings.--Except as expressly provided in paragraphs 
     (1) and (2) of subsection (b), nothing in this section 
     supersedes, amends, or modifies existing law.

                PART 7--UNITED STATES GEOLOGICAL SURVEY

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

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

                PART 8--OTHER NATURAL RESOURCES MATTERS

     SEC. 50281. DEPARTMENT OF THE INTERIOR OVERSIGHT.

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

                   Subtitle C--Environmental Reviews

     SEC. 50301. DEPARTMENT OF ENERGY.

       In addition to amounts otherwise available, there is 
     appropriated to the Secretary of Energy for fiscal year 2022, 
     out of any money in the Treasury not otherwise appropriated, 
     $115,000,000, to remain available through September 30, 2031, 
     to provide for the hiring and training of personnel, the 
     development of programmatic environmental documents, the 
     procurement of technical or scientific services for 
     environmental reviews, the development of environmental data 
     or information systems, stakeholder and community engagement, 
     and the purchase of new equipment for environmental analysis 
     to facilitate timely and efficient environmental reviews and 
     authorizations.

     SEC. 50302. FEDERAL ENERGY REGULATORY COMMISSION.

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

     SEC. 50303. DEPARTMENT OF THE INTERIOR.

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

          TITLE VI--COMMITTEE ON ENVIRONMENT AND PUBLIC WORKS

                       Subtitle A--Air Pollution

     SEC. 60101. CLEAN HEAVY-DUTY VEHICLES.

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

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

       ``(a) Appropriations.--
       ``(1) In general.--In addition to amounts otherwise 
     available, there is appropriated to the Administrator for 
     fiscal year 2022, out of any money in the Treasury not 
     otherwise appropriated, $600,000,000, to remain available 
     until September 30, 2031, to carry out this section.
       ``(2) Nonattainment areas.--In addition to amounts 
     otherwise available, there is appropriated to the 
     Administrator for fiscal year 2022, out of any money in the 
     Treasury not otherwise appropriated, $400,000,000, to remain 
     available until September 30, 2031, to make awards under this 
     section to eligible recipients and to eligible contractors 
     that propose to replace eligible vehicles to serve 1 or more 
     communities located in an air quality area designated 
     pursuant to section 107 as nonattainment for any air 
     pollutant.
       ``(3) Reservation.--Of the funds appropriated by paragraph 
     (1), the Administrator shall reserve 3 percent for 
     administrative costs necessary to carry out this section.
       ``(b) Program.--Beginning not later than 180 days after the 
     date of enactment of this section, the Administrator shall 
     implement a program to make awards of grants and rebates to 
     eligible recipients, and to make awards of contracts to 
     eligible contractors for providing rebates, for up to 100 
     percent of costs for--
       ``(1) the incremental costs of replacing an eligible 
     vehicle that is not a zero-emission vehicle with a zero-
     emission vehicle, as determined by the Administrator based on 
     the market value of the vehicles;
       ``(2) purchasing, installing, operating, and maintaining 
     infrastructure needed to charge, fuel, or maintain zero-
     emission vehicles;

[[Page H7639]]

       ``(3) workforce development and training to support the 
     maintenance, charging, fueling, and operation of zero-
     emission vehicles; and
       ``(4) planning and technical activities to support the 
     adoption and deployment of zero-emission vehicles.
       ``(c) Applications.--To seek an award under this section, 
     an eligible recipient or eligible contractor shall submit to 
     the Administrator an application at such time, in such 
     manner, and containing such information as the Administrator 
     shall prescribe.
       ``(d) Definitions.--For purposes of this section:
       ``(1) Eligible contractor.--The term `eligible contractor' 
     means a contractor that has the capacity--
       ``(A) to sell, lease, license, or contract for service 
     zero-emission vehicles, or charging or other equipment needed 
     to charge, fuel, or maintain zero-emission vehicles, to 
     individuals or entities that own, lease, license, or contract 
     for service an eligible vehicle; or
       ``(B) to arrange financing for such a sale, lease, license, 
     or contract for service.
       ``(2) Eligible recipient.--The term `eligible recipient' 
     means--
       ``(A) a State;
       ``(B) a municipality;
       ``(C) an Indian tribe; or
       ``(D) a nonprofit school transportation association.
       ``(3) Eligible vehicle.--The term `eligible vehicle' means 
     a Class 6 or Class 7 heavy-duty vehicle as defined in section 
     1037.801 of title 40, Code of Federal Regulations (as in 
     effect on the date of enactment of this section).
       ``(4) Greenhouse gas.--The term `greenhouse gas' means the 
     air pollutants carbon dioxide, hydrofluorocarbons, methane, 
     nitrous oxide, perfluorocarbons, and sulfur hexafluoride.
       ``(5) Zero-emission vehicle.--The term `zero-emission 
     vehicle' means a vehicle that has a drivetrain that produces, 
     under any possible operational mode or condition, zero 
     exhaust emissions of--
       ``(A) any air pollutant that is listed pursuant to section 
     108(a) (or any precursor to such an air pollutant); and
       ``(B) any greenhouse gas.''.

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

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

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

       ``(a) Appropriations.--
       ``(1) General assistance.--In addition to amounts otherwise 
     available, there is appropriated to the Administrator for 
     fiscal year 2022, out of any money in the Treasury not 
     otherwise appropriated, $2,250,000,000, to remain available 
     until September 30, 2027, to award rebates and grants to 
     eligible recipients on a competitive basis--
       ``(A) to purchase or install zero-emission port equipment 
     or technology for use at, or to directly serve, one or more 
     ports;
       ``(B) to conduct any relevant planning or permitting in 
     connection with the purchase or installation of such zero-
     emission port equipment or technology; and
       ``(C) to develop qualified climate action plans.
       ``(2) Nonattainment areas.--In addition to amounts 
     otherwise available, there is appropriated to the 
     Administrator for fiscal year 2022, out of any money in the 
     Treasury not otherwise appropriated, $750,000,000, to remain 
     available until September 30, 2027, to award rebates and 
     grants to eligible recipients to carry out activities 
     described in paragraph (1) with respect to ports located in 
     air quality areas designated pursuant to section 107 as 
     nonattainment for an air pollutant.
       ``(b) Limitation.--Funds awarded under this section shall 
     not be used by any recipient or subrecipient to purchase or 
     install zero-emission port equipment or technology that will 
     not be located at, or directly serve, the one or more ports 
     involved.
       ``(c) Administration of Funds.--Of the funds made available 
     by this section, the Administrator shall reserve 2 percent 
     for administrative costs necessary to carry out this section.
       ``(d) Definitions.--In this section:
       ``(1) Eligible recipient.--The term `eligible recipient' 
     means--
       ``(A) a port authority;
       ``(B) a State, regional, local, or Tribal agency that has 
     jurisdiction over a port authority or a port;
       ``(C) an air pollution control agency; or
       ``(D) a private entity that--
       ``(i) applies for a grant under this section in partnership 
     with an entity described in any of subparagraphs (A) through 
     (C); and
       ``(ii) owns, operates, or uses the facilities, cargo-
     handling equipment, transportation equipment, or related 
     technology of a port.
       ``(2) Greenhouse gas.--The term `greenhouse gas' means the 
     air pollutants carbon dioxide, hydrofluorocarbons, methane, 
     nitrous oxide, perfluorocarbons, and sulfur hexafluoride.
       ``(3) Qualified climate action plan.--The term `qualified 
     climate action plan' means a detailed and strategic plan 
     that--
       ``(A) establishes goals, implementation strategies, and 
     accounting and inventory practices to reduce emissions at one 
     or more ports of--
       ``(i) greenhouse gases;
       ``(ii) an air pollutant that is listed pursuant to section 
     108(a) (or any precursor to such an air pollutant); and
       ``(iii) hazardous air pollutants;
       ``(B) includes a strategy to collaborate with, communicate 
     with, and address potential effects on low-income and 
     disadvantaged near-port communities and other stakeholders 
     that may be affected by implementation of the plan; and
       ``(C) describes how an eligible recipient has implemented 
     or will implement measures to increase the resilience of the 
     one or more ports involved.
       ``(4) Zero-emission port equipment or technology.--The term 
     `zero-emission port equipment or technology' means human-
     operated equipment or human-maintained technology that--
       ``(A) produces zero emissions of any air pollutant that is 
     listed pursuant to section 108(a) (or any precursor to such 
     an air pollutant) and any greenhouse gas other than water 
     vapor; or
       ``(B) captures 100 percent of the emissions described in 
     subparagraph (A) that are produced by an ocean-going vessel 
     at berth.''.

     SEC. 60103. GREENHOUSE GAS REDUCTION FUND.

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

     ``SEC. 134. GREENHOUSE GAS REDUCTION FUND.

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

[[Page H7640]]

       ``(A) any air pollutant that is listed pursuant to section 
     108(a) (or any precursor to such an air pollutant); and
       ``(B) any greenhouse gas.''.

     SEC. 60104. DIESEL EMISSIONS REDUCTIONS.

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

     SEC. 60105. FUNDING TO ADDRESS AIR POLLUTION.

       (a) Fenceline Air Monitoring and Screening Air 
     Monitoring.--In addition to amounts otherwise available, 
     there is appropriated to the Administrator of the 
     Environmental Protection Agency for fiscal year 2022, out of 
     any money in the Treasury not otherwise appropriated, 
     $117,500,000, to remain available until September 30, 2031, 
     for grants and other activities authorized under subsections 
     (a) through (c) of section 103 and section 105 of the Clean 
     Air Act (42 U.S.C. 7403(a)-(c), 7405) to deploy, integrate, 
     support, and maintain fenceline air monitoring, screening air 
     monitoring, national air toxics trend stations, and other air 
     toxics and community monitoring.
       (b) Multipollutant Monitoring Stations.--In addition to 
     amounts otherwise available, there is appropriated to the 
     Administrator of the Environmental Protection Agency for 
     fiscal year 2022, out of any money in the Treasury not 
     otherwise appropriated, $50,000,000, to remain available 
     until September 30, 2031, for grants and other activities 
     authorized under subsections (a) through (c) of section 103 
     and section 105 of the Clean Air Act (42 U.S.C. 7403(a)-(c), 
     7405)--
       (1) to expand the national ambient air quality monitoring 
     network with new multipollutant monitoring stations; and
       (2) to replace, repair, operate, and maintain existing 
     monitors.
       (c) Air Quality Sensors in Low-income and Disadvantaged 
     Communities.--In addition to amounts otherwise available, 
     there is appropriated to the Administrator of the 
     Environmental Protection Agency for fiscal year 2022, out of 
     any money in the Treasury not otherwise appropriated, 
     $3,000,000, to remain available until September 30, 2031, for 
     grants and other activities authorized under subsections (a) 
     through (c) of section 103 and section 105 of the Clean Air 
     Act (42 U.S.C. 7403(a)-(c), 7405) to deploy, integrate, and 
     operate air quality sensors in low-income and disadvantaged 
     communities.
       (d) Emissions From Wood Heaters.--In addition to amounts 
     otherwise available, there is appropriated to the 
     Administrator of the Environmental Protection Agency for 
     fiscal year 2022, out of any money in the Treasury not 
     otherwise appropriated, $15,000,000, to remain available 
     until September 30, 2031, for grants and other activities 
     authorized under subsections (a) through (c) of section 103 
     and section 105 of the Clean Air Act (42 U.S.C. 7403(a)-(c), 
     7405) for testing and other agency activities to address 
     emissions from wood heaters.
       (e) Methane Monitoring.--In addition to amounts otherwise 
     available, there is appropriated to the Administrator of the 
     Environmental Protection Agency for fiscal year 2022, out of 
     any money in the Treasury not otherwise appropriated, 
     $20,000,000, to remain available until September 30, 2031, 
     for grants and other activities authorized under subsections 
     (a) through (c) of section 103 and section 105 of the Clean 
     Air Act (42 U.S.C. 7403(a)-(c), 7405) for monitoring 
     emissions of methane.
       (f) Clean Air Act Grants.--In addition to amounts otherwise 
     available, there is appropriated to the Administrator of the 
     Environmental Protection Agency for fiscal year 2022, out of 
     any money in the Treasury not otherwise appropriated, 
     $25,000,000, to remain available until September 30, 2031, 
     for grants and other activities authorized under subsections 
     (a) through (c) of section 103 and section 105 of the Clean 
     Air Act (42 U.S.C. 7403(a)-(c), 7405).
       (g) Greenhouse Gas and Zero-emission Standards for Mobile 
     Sources.--In addition to amounts otherwise available, there 
     is appropriated to the Administrator of the Environmental 
     Protection Agency for fiscal year 2022, out of any money in 
     the Treasury not otherwise appropriated, $5,000,000, to 
     remain available until September 30, 2031, to provide grants 
     to States to adopt and implement greenhouse gas and zero-
     emission standards for mobile sources pursuant to section 177 
     of the Clean Air Act (42 U.S.C. 7507).
       (h) Definition of Greenhouse Gas.--In this section, the 
     term ``greenhouse gas'' means the air pollutants carbon 
     dioxide, hydrofluorocarbons, methane, nitrous oxide, 
     perfluorocarbons, and sulfur hexafluoride.

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

       (a) In General.--In addition to amounts otherwise 
     available, there is appropriated to the Administrator of the 
     Environmental Protection Agency for fiscal year 2022, out of 
     any money in the Treasury not otherwise appropriated, 
     $37,500,000, to remain available until September 30, 2031, 
     for grants and other activities to monitor and reduce 
     greenhouse gas emissions and other air pollutants at schools 
     in low-income and disadvantaged communities under subsections 
     (a) through (c) of section 103 of the Clean Air Act (42 
     U.S.C. 7403(a)-(c)) and section 105 of that Act (42 U.S.C. 
     7405).
       (b) Technical Assistance.--In addition to amounts otherwise 
     available, there is appropriated to the Administrator of the 
     Environmental Protection Agency for fiscal year 2022, out of 
     any money in the Treasury not otherwise appropriated, 
     $12,500,000, to remain available until September 30, 2031, 
     for providing technical assistance to schools in low-income 
     and disadvantaged communities under subsections (a) through 
     (c) of section 103 of the Clean Air Act (42 U.S.C. 7403(a)-
     (c)) and section 105 of that Act (42 U.S.C. 7405)--
       (1) to address environmental issues;
       (2) to develop school environmental quality plans that 
     include standards for school building, design, construction, 
     and renovation; and
       (3) to identify and mitigate ongoing air pollution hazards.
       (c) Definition of Greenhouse Gas.--In this section, the 
     term ``greenhouse gas'' means the air pollutants carbon 
     dioxide, hydrofluorocarbons, methane, nitrous oxide, 
     perfluorocarbons, and sulfur hexafluoride.

     SEC. 60107. LOW EMISSIONS ELECTRICITY PROGRAM.

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

     ``SEC. 135. LOW EMISSIONS ELECTRICITY PROGRAM.

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

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

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

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

       (a) Appropriations.--
       (1) In general.--In addition to amounts otherwise 
     available, there is appropriated to the Administrator of the 
     Environmental Protection Agency for fiscal year 2022, out of 
     any money in the Treasury not otherwise appropriated, 
     $20,000,000, to remain available until September 30, 2026, to 
     carry out subsections (a) through (i)

[[Page H7641]]

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

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

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

     SEC. 60111. GREENHOUSE GAS CORPORATE REPORTING.

       (a) In General.--In addition to amounts otherwise 
     available, there is appropriated to the Administrator of the 
     Environmental Protection Agency for fiscal year 2022, out of 
     any money in the Treasury not otherwise appropriated, 
     $5,000,000, to remain available until September 30, 2031, for 
     the Environmental Protection Agency to support--
       (1) enhanced standardization and transparency of corporate 
     climate action commitments and plans to reduce greenhouse gas 
     emissions;
       (2) enhanced transparency regarding progress toward meeting 
     such commitments and implementing such plans; and
       (3) progress toward meeting such commitments and 
     implementing such plans.
       (b) Definition of Greenhouse Gas.--In this section, the 
     term ``greenhouse gas'' means the air pollutants carbon 
     dioxide, hydrofluorocarbons, methane, nitrous oxide, 
     perfluorocarbons, and sulfur hexafluoride.

     SEC. 60112. ENVIRONMENTAL PRODUCT DECLARATION ASSISTANCE.

       (a) In General.--In addition to amounts otherwise 
     available, there is appropriated to the Administrator of the 
     Environmental Protection Agency for fiscal year 2022, out of 
     any money in the Treasury not otherwise appropriated, 
     $250,000,000, to remain available until September 30, 2031, 
     to develop and carry out a program to support the 
     development, enhanced standardization and transparency, and 
     reporting criteria for environmental product declarations 
     that include measurements of the embodied greenhouse gas 
     emissions of the material or product associated with all 
     relevant stages of production, use, and disposal, and conform 
     with international standards, for construction materials and 
     products by--
       (1) providing grants to businesses that manufacture 
     construction materials and products for developing and 
     verifying environmental product declarations, and to States, 
     Indian Tribes, and nonprofit organizations that will support 
     such businesses;
       (2) providing technical assistance to businesses that 
     manufacture construction materials and products in developing 
     and verifying environmental product declarations, and to 
     States, Indian Tribes, and nonprofit organizations that will 
     support such businesses; and
       (3) carrying out other activities that assist in measuring, 
     reporting, and steadily reducing the quantity of embodied 
     carbon of construction materials and products.
       (b) Administrative Costs.--Of the amounts made available 
     under this section, the Administrator of the Environmental 
     Protection Agency shall reserve 5 percent for administrative 
     costs necessary to carry out this section.
       (c) Definitions.--In this section:
       (1) Greenhouse gas.--The term ``greenhouse gas'' means the 
     air pollutants carbon dioxide, hydrofluorocarbons, methane, 
     nitrous oxide, perfluorocarbons, and sulfur hexafluoride.
       (2) State.--The term ``State'' has the meaning given to 
     that term in section 302(d) of the Clean Air Act (42 U.S.C. 
     7602(d)).

     SEC. 60113. METHANE EMISSIONS REDUCTION PROGRAM.

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

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

       ``(a) Incentives for Methane Mitigation and Monitoring.--In 
     addition to amounts otherwise available, there is 
     appropriated to the Administrator for fiscal year 2022, out 
     of any money in the Treasury not otherwise appropriated, 
     $850,000,000, to remain available until September 30, 2028--
       ``(1) for grants, rebates, contracts, loans, and other 
     activities of the Environmental Protection Agency for the 
     purposes of providing financial and technical assistance to 
     owners and operators of applicable facilities to prepare and 
     submit greenhouse gas reports under subpart W of part 98 of 
     title 40, Code of Federal Regulations;
       ``(2) for grants, rebates, contracts, loans, and other 
     activities of the Environmental Protection Agency authorized 
     under subsections (a) through (c) of section 103 for methane 
     emissions monitoring;
       ``(3) for grants, rebates, contracts, loans, and other 
     activities of the Environmental Protection Agency for the 
     purposes of providing financial and technical assistance to 
     reduce methane and other greenhouse gas emissions from 
     petroleum and natural gas systems, mitigate legacy air 
     pollution from petroleum and natural gas systems, and provide 
     funding for--
       ``(A) improving climate resiliency of communities and 
     petroleum and natural gas systems;
       ``(B) improving and deploying industrial equipment and 
     processes that reduce methane and other greenhouse gas 
     emissions and waste;
       ``(C) supporting innovation in reducing methane and other 
     greenhouse gas emissions and waste from petroleum and natural 
     gas systems;
       ``(D) permanently shutting in and plugging wells on non-
     Federal land;
       ``(E) mitigating health effects of methane and other 
     greenhouse gas emissions, and legacy air pollution from 
     petroleum and natural gas systems in low-income and 
     disadvantaged communities; and
       ``(F) supporting environmental restoration; and
       ``(4) to cover all direct and indirect costs required to 
     administer this section, prepare inventories, gather 
     empirical data, and track emissions.
       ``(b) Incentives for Methane Mitigation From Conventional 
     Wells.--In addition to amounts otherwise available, there is 
     appropriated to the Administrator for fiscal year 2022, out 
     of any money in the Treasury not otherwise appropriated, 
     $700,000,000, to remain available until September 30, 2028, 
     for activities described in paragraphs (1) through (4) of 
     subsection (a) at marginal conventional wells.
       ``(c) Waste Emissions Charge.--The Administrator shall 
     impose and collect a charge on methane emissions that exceed 
     an applicable waste emissions threshold under subsection (f) 
     from an owner or operator of an applicable facility that 
     reports more than 25,000 metric tons of carbon dioxide 
     equivalent of greenhouse gases emitted per year pursuant to 
     subpart W of part 98 of title 40, Code of Federal 
     Regulations, regardless of the reporting threshold under that 
     subpart.
       ``(d) Applicable Facility.--For purposes of this section, 
     the term `applicable facility' means a facility within the 
     following industry segments, as defined in subpart W of part 
     98 of title 40, Code of Federal Regulations:
       ``(1) Offshore petroleum and natural gas production.
       ``(2) Onshore petroleum and natural gas production.
       ``(3) Onshore natural gas processing.
       ``(4) Onshore natural gas transmission compression.
       ``(5) Underground natural gas storage.
       ``(6) Liquefied natural gas storage.
       ``(7) Liquefied natural gas import and export equipment.
       ``(8) Onshore petroleum and natural gas gathering and 
     boosting.
       ``(9) Onshore natural gas transmission pipeline.
       ``(e) Charge Amount.--The amount of a charge under 
     subsection (c) for an applicable facility shall be equal to 
     the product obtained by multiplying--
       ``(1) the number of metric tons of methane emissions 
     reported pursuant to subpart W of part 98 of title 40, Code 
     of Federal Regulations, for the applicable facility that 
     exceed the applicable annual waste emissions threshold listed 
     in subsection (f) during the previous reporting period; and
       ``(2)(A) $900 for emissions reported for calendar year 
     2024;
       ``(B) $1,200 for emissions reported for calendar year 2025; 
     or
       ``(C) $1,500 for emissions reported for calendar year 2026 
     and each year thereafter.
       ``(f) Waste Emissions Threshold.--
       ``(1) Petroleum and natural gas production.--With respect 
     to imposing and collecting the charge under subsection (c) 
     for an applicable facility in an industry segment listed in

[[Page H7642]]

     paragraph (1) or (2) of subsection (d), the Administrator 
     shall impose and collect the charge on the reported metric 
     tons of methane emissions from such facility that exceed--
       ``(A) 0.20 percent of the natural gas sent to sale from 
     such facility; or
       ``(B) 10 metric tons of methane per million barrels of oil 
     sent to sale from such facility, if such facility sent no 
     natural gas to sale.
       ``(2) Nonproduction petroleum and natural gas systems.--
     With respect to imposing and collecting the charge under 
     subsection (c) for an applicable facility in an industry 
     segment listed in paragraph (3), (6), (7), or (8) of 
     subsection (d), the Administrator shall impose and collect 
     the charge on the reported metric tons of methane emissions 
     that exceed 0.05 percent of the natural gas sent to sale from 
     or through such facility.
       ``(3) Natural gas transmission.--With respect to imposing 
     and collecting the charge under subsection (c) for an 
     applicable facility in an industry segment listed in 
     paragraph (4), (5), or (9) of subsection (d), the 
     Administrator shall impose and collect the charge on the 
     reported metric tons of methane emissions that exceed 0.11 
     percent of the natural gas sent to sale from or through such 
     facility.
       ``(4) Common ownership or control.--In calculating the 
     total emissions charge obligation for facilities under common 
     ownership or control, the Administrator shall allow for the 
     netting of emissions by reducing the total obligation to 
     account for facility emissions levels that are below the 
     applicable thresholds within and across all applicable 
     segments identified in subsection (d).
       ``(5) Exemption.--Charges shall not be imposed pursuant to 
     paragraph (1) on emissions that exceed the waste emissions 
     threshold specified in such paragraph if such emissions are 
     caused by unreasonable delay, as determined by the 
     Administrator, in environmental permitting of gathering or 
     transmission infrastructure necessary for offtake of 
     increased volume as a result of methane emissions mitigation 
     implementation.
       ``(6) Exemption for regulatory compliance.--
       ``(A) In general.--Charges shall not be imposed pursuant to 
     subsection (c) on an applicable facility that is subject to 
     and in compliance with methane emissions requirements 
     pursuant to subsections (b) and (d) of section 111 upon a 
     determination by the Administrator that--
       ``(i) methane emissions standards and plans pursuant to 
     subsections (b) and (d) of section 111 have been approved and 
     are in effect in all States with respect to the applicable 
     facilities; and
       ``(ii) compliance with the requirements described in clause 
     (i) will result in equivalent or greater emissions reductions 
     as would be achieved by the proposed rule of the 
     Administrator entitled `Standards of Performance for New, 
     Reconstructed, and Modified Sources and Emissions Guidelines 
     for Existing Sources: Oil and Natural Gas Sector Climate 
     Review' (86 Fed. Reg. 63110 (November 15, 2021)), if such 
     rule had been finalized and implemented.
       ``(B) Resumption of charge.--If the conditions in clause 
     (i) or (ii) of subparagraph (A) cease to apply after the 
     Administrator has made the determination in that 
     subparagraph, the applicable facility will again be subject 
     to the charge under subsection (c) beginning in the first 
     calendar year in which the conditions in either clause (i) or 
     (ii) of that subparagraph are no longer met.
       ``(7) Plugged wells.--Charges shall not be imposed with 
     respect to the emissions rate from any well that has been 
     permanently shut-in and plugged in the previous year in 
     accordance with all applicable closure requirements, as 
     determined by the Administrator.
       ``(g) Period.--The charge under subsection (c) shall be 
     imposed and collected beginning with respect to emissions 
     reported for calendar year 2024 and for each year thereafter.
       ``(h) Reporting.--Not later than 2 years after the date of 
     enactment of this section, the Administrator shall revise the 
     requirements of subpart W of part 98 of title 40, Code of 
     Federal Regulations, to ensure the reporting under such 
     subpart, and calculation of charges under subsections (e) and 
     (f) of this section, are based on empirical data, including 
     data collected pursuant to subsection (a)(4), accurately 
     reflect the total methane emissions and waste emissions from 
     the applicable facilities, and allow owners and operators of 
     applicable facilities to submit empirical emissions data, in 
     a manner to be prescribed by the Administrator, to 
     demonstrate the extent to which a charge under subsection (c) 
     is owed.
       ``(i) Definition of Greenhouse Gas.--In this section, the 
     term `greenhouse gas' means the air pollutants carbon 
     dioxide, hydrofluorocarbons, methane, nitrous oxide, 
     perfluorocarbons, and sulfur hexafluoride.''.

     SEC. 60114. CLIMATE POLLUTION REDUCTION GRANTS.

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

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

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

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

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

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

       (a) In General.--In addition to amounts otherwise 
     available, there is appropriated to the Administrator of the 
     Environmental Protection Agency for fiscal year 2022, out of 
     any money in the Treasury not otherwise appropriated, 
     $100,000,000, to remain available until September 30, 2026, 
     for necessary administrative costs of the Administrator of 
     the Environmental Protection Agency to carry out this section 
     and to develop and carry out a program, in consultation with 
     the Administrator of the Federal Highway Administration for 
     construction materials used in transportation projects and 
     the Administrator of General Services for construction 
     materials used for Federal buildings, to identify and label 
     construction materials and products that have substantially 
     lower levels of embodied greenhouse gas emissions associated 
     with all relevant stages of production, use, and disposal, as 
     compared to estimated industry averages of similar materials 
     or products, as determined by the Administrator of the 
     Environmental Protection Agency, based on--
       (1) environmental product declarations; or
       (2) determinations by State agencies, as verified by the 
     Administrator of the Environmental Protection Agency.
       (b) Definition of Greenhouse Gas.--In this section, the 
     term ``greenhouse gas'' means the air pollutants carbon 
     dioxide, hydrofluorocarbons, methane, nitrous oxide, 
     perfluorocarbons, and sulfur hexafluoride.

                    Subtitle B--Hazardous Materials

     SEC. 60201. ENVIRONMENTAL AND CLIMATE JUSTICE BLOCK GRANTS.

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

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

       ``(a) Appropriation.--In addition to amounts otherwise 
     available, there is appropriated to the Administrator for 
     fiscal year 2022, out of any money in the Treasury not 
     otherwise appropriated--
       ``(1) $2,800,000,000 to remain available until September 
     30, 2026, to award grants for the activities described in 
     subsection (b); and

[[Page H7643]]

       ``(2) $200,000,000 to remain available until September 30, 
     2026, to provide technical assistance to eligible entities 
     related to grants awarded under this section.
       ``(b) Grants.--
       ``(1) In general.--The Administrator shall use amounts made 
     available under subsection (a)(1) to award grants for periods 
     of up to 3 years to eligible entities to carry out activities 
     described in paragraph (2) that benefit disadvantaged 
     communities, as defined by the Administrator.
       ``(2) Eligible activities.--An eligible entity may use a 
     grant awarded under this subsection for--
       ``(A) community-led air and other pollution monitoring, 
     prevention, and remediation, and investments in low- and 
     zero-emission and resilient technologies and related 
     infrastructure and workforce development that help reduce 
     greenhouse gas emissions and other air pollutants;
       ``(B) mitigating climate and health risks from urban heat 
     islands, extreme heat, wood heater emissions, and wildfire 
     events;
       ``(C) climate resiliency and adaptation;
       ``(D) reducing indoor toxics and indoor air pollution; or
       ``(E) facilitating engagement of disadvantaged communities 
     in State and Federal advisory groups, workshops, rulemakings, 
     and other public processes.
       ``(3) Eligible entities.--In this subsection, the term 
     `eligible entity' means--
       ``(A) a partnership between--
       ``(i) an Indian tribe, a local government, or an 
     institution of higher education; and
       ``(ii) a community-based nonprofit organization;
       ``(B) a community-based nonprofit organization; or
       ``(C) a partnership of community-based nonprofit 
     organizations.
       ``(c) Administrative Costs.--The Administrator shall 
     reserve 7 percent of the amounts made available under 
     subsection (a) for administrative costs to carry out this 
     section.
       ``(d) Definition of Greenhouse Gas.--In this section, the 
     term `greenhouse gas' means the air pollutants carbon 
     dioxide, hydrofluorocarbons, methane, nitrous oxide, 
     perfluorocarbons, and sulfur hexafluoride.''.

          Subtitle C--United States Fish and Wildlife Service

     SEC. 60301. ENDANGERED SPECIES ACT RECOVERY PLANS.

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

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

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

              Subtitle D--Council on Environmental Quality

     SEC. 60401. ENVIRONMENTAL AND CLIMATE DATA COLLECTION.

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

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

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

             Subtitle E--Transportation and Infrastructure

     SEC. 60501. NEIGHBORHOOD ACCESS AND EQUITY GRANT PROGRAM.

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

     ``Sec. 177. Neighborhood access and equity grant program

       ``(a) In General.--In addition to amounts otherwise 
     available, there is appropriated for fiscal year 2022, out of 
     any money in the Treasury not otherwise appropriated, 
     $1,893,000,000, to remain available until September 30, 2026, 
     to the Administrator of the Federal Highway Administration 
     for competitive grants to eligible entities described in 
     subsection (b)--
       ``(1) to improve walkability, safety, and affordable 
     transportation access through projects that are context-
     sensitive--
       ``(A) to remove, remediate, or reuse a facility described 
     in subsection (c)(1);
       ``(B) to replace a facility described in subsection (c)(1) 
     with a facility that is at-grade or lower speed;
       ``(C) to retrofit or cap a facility described in subsection 
     (c)(1);
       ``(D) to build or improve complete streets, multiuse 
     trails, regional greenways, or active transportation networks 
     and spines; or
       ``(E) to provide affordable access to essential 
     destinations, public spaces, or transportation links and 
     hubs;
       ``(2) to mitigate or remediate negative impacts on the 
     human or natural environment resulting from a facility 
     described in subsection (c)(2) in a disadvantaged or 
     underserved community through--
       ``(A) noise barriers to reduce impacts resulting from a 
     facility described in subsection (c)(2);
       ``(B) technologies, infrastructure, and activities to 
     reduce surface transportation-related greenhouse gas 
     emissions and other air pollution;
       ``(C) natural infrastructure, pervious, permeable, or 
     porous pavement, or protective features to reduce or manage 
     stormwater run-off resulting from a facility described in 
     subsection (c)(2);
       ``(D) infrastructure and natural features to reduce or 
     mitigate urban heat island hot spots in the transportation 
     right-of-way or on surface transportation facilities; or
       ``(E) safety improvements for vulnerable road users; and
       ``(3) for planning and capacity building activities in 
     disadvantaged or underserved communities to--
       ``(A) identify, monitor, or assess local and ambient air 
     quality, emissions of transportation greenhouse gases, hot 
     spot areas of extreme heat or elevated air pollution, gaps in 
     tree canopy coverage, or flood prone transportation 
     infrastructure;
       ``(B) assess transportation equity or pollution impacts and 
     develop local anti-displacement policies and community 
     benefit agreements;
       ``(C) conduct predevelopment activities for projects 
     eligible under this subsection;
       ``(D) expand public participation in transportation 
     planning by individuals and organizations in disadvantaged or 
     underserved communities; or
       ``(E) administer or obtain technical assistance related to 
     activities described in this subsection.
       ``(b) Eligible Entities Described.--An eligible entity 
     referred to in subsection (a) is--
       ``(1) a State;
       ``(2) a unit of local government;
       ``(3) a political subdivision of a State;
       ``(4) an entity described in section 207(m)(1)(E);
       ``(5) a territory of the United States;
       ``(6) a special purpose district or public authority with a 
     transportation function;
       ``(7) a metropolitan planning organization (as defined in 
     section 134(b)(2)); or
       ``(8) with respect to a grant described in subsection 
     (a)(3), in addition to an eligible entity described in 
     paragraphs (1) through (7), a nonprofit organization or 
     institution of higher education that has entered into a 
     partnership with an eligible entity described in paragraphs 
     (1) through (7).
       ``(c) Facility Described.--A facility referred to in 
     subsection (a) is--
       ``(1) a surface transportation facility for which high 
     speeds, grade separation, or other design factors create an 
     obstacle to connectivity within a community; or
       ``(2) a surface transportation facility which is a source 
     of air pollution, noise, stormwater, or other burden to a 
     disadvantaged or underserved community.
       ``(d) Investment in Economically Disadvantaged 
     Communities.--
       ``(1) In general.--In addition to amounts otherwise 
     available, there is appropriated for fiscal year 2022, out of 
     any money in the Treasury not otherwise appropriated, 
     $1,262,000,000, to remain available until September 30, 2026, 
     to the Administrator of the Federal Highway Administration to 
     provide grants for projects in communities described in 
     paragraph (2) for the same purposes and administered in the 
     same manner as described in subsection (a).
       ``(2) Communities described.--A community referred to in 
     paragraph (1) is a community that--
       ``(A) is economically disadvantaged, underserved, or 
     located in an area of persistent poverty;
       ``(B) has entered or will enter into a community benefits 
     agreement with representatives of the community;
       ``(C) has an anti-displacement policy, a community land 
     trust, or a community advisory board in effect; or

[[Page H7644]]

       ``(D) has demonstrated a plan for employing local residents 
     in the area impacted by the activity or project proposed 
     under this section.
       ``(e) Administration.--
       ``(1) In general.--A project carried out under subsection 
     (a) or (d) shall be treated as a project on a Federal-aid 
     highway.
       ``(2) Compliance with existing requirements.--Funds made 
     available for a grant under this section and administered by 
     or through a State department of transportation shall be 
     expended in compliance with the U.S. Department of 
     Transportation's Disadvantaged Business Enterprise Program.
       ``(f) Cost Share.--The Federal share of the cost of an 
     activity carried out using a grant awarded under this section 
     shall be not more than 80 percent, except that the Federal 
     share of the cost of a project in a disadvantaged or 
     underserved community may be up to 100 percent.
       ``(g) Technical Assistance.--In addition to amounts 
     otherwise available, there is appropriated for fiscal year 
     2022, out of any money in the Treasury not otherwise 
     appropriated, $50,000,000, to remain available until 
     September 30, 2026, to the Administrator of the Federal 
     Highway Administration for--
       ``(1) guidance, technical assistance, templates, training, 
     or tools to facilitate efficient and effective contracting, 
     design, and project delivery by units of local government;
       ``(2) subgrants to units of local government to build 
     capacity of such units of local government to assume 
     responsibilities to deliver surface transportation projects; 
     and
       ``(3) operations and administration of the Federal Highway 
     Administration.
       ``(h) Limitations.--Amounts made available under this 
     section shall not--
       ``(1) be subject to any restriction or limitation on the 
     total amount of funds available for implementation or 
     execution of programs authorized for Federal-aid highways; 
     and
       ``(2) be used for a project for additional through travel 
     lanes for single-occupant passenger vehicles.''.
       (b) Clerical Amendment.--The analysis for chapter 1 of 
     title 23, United States Code, is amended by adding at the end 
     the following:

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

     SEC. 60502. ASSISTANCE FOR FEDERAL BUILDINGS.

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

     SEC. 60503. USE OF LOW-CARBON MATERIALS.

       (a) Appropriation.--In addition to amounts otherwise 
     available, there is appropriated for fiscal year 2022, out of 
     any money in the Treasury not otherwise appropriated, 
     $2,150,000,000, to remain available until September 30, 2026, 
     to be deposited in the Federal Buildings Fund established 
     under section 592 of title 40, United States Code, to acquire 
     and install materials and products for use in the 
     construction or alteration of buildings under the 
     jurisdiction, custody, and control of the General Services 
     Administration that have substantially lower levels of 
     embodied greenhouse gas emissions associated with all 
     relevant stages of production, use, and disposal as compared 
     to estimated industry averages of similar materials or 
     products, as determined by the Administrator of the 
     Environmental Protection Agency.
       (b) Definition of Greenhouse Gas.--In this section, the 
     term ``greenhouse gas'' means the air pollutants carbon 
     dioxide, hydrofluorocarbons, methane, nitrous oxide, 
     perfluorocarbons, and sulfur hexafluoride.

     SEC. 60504. GENERAL SERVICES ADMINISTRATION EMERGING 
                   TECHNOLOGIES.

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

     SEC. 60505. ENVIRONMENTAL REVIEW IMPLEMENTATION FUNDS.

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

     ``Sec. 178. Environmental review implementation funds

       ``(a) Establishment.--In addition to amounts otherwise 
     available, for fiscal year 2022, there is appropriated to the 
     Administrator, out of any money in the Treasury not otherwise 
     appropriated, $100,000,000, to remain available until 
     September 30, 2026, for the purpose of facilitating the 
     development and review of documents for the environmental 
     review process for proposed projects through--
       ``(1) the provision of guidance, technical assistance, 
     templates, training, or tools to facilitate an efficient and 
     effective environmental review process for surface 
     transportation projects and any administrative expenses of 
     the Federal Highway Administration to conduct activities 
     described in this section; and
       ``(2) providing funds made available under this subsection 
     to eligible entities--
       ``(A) to build capacity of such eligible entities to 
     conduct environmental review processes;
       ``(B) to facilitate the environmental review process for 
     proposed projects by--
       ``(i) defining the scope or study areas;
       ``(ii) identifying impacts, mitigation measures, and 
     reasonable alternatives;
       ``(iii) preparing planning and environmental studies and 
     other documents prior to and during the environmental review 
     process, for potential use in the environmental review 
     process in accordance with applicable statutes and 
     regulations;
       ``(iv) conducting public engagement activities; and
       ``(v) carrying out permitting or other activities, as the 
     Administrator determines to be appropriate, to support the 
     timely completion of an environmental review process required 
     for a proposed project; and
       ``(C) for administrative expenses of the eligible entity to 
     conduct any of the activities described in subparagraphs (A) 
     and (B).
       ``(b) Cost Share.--
       ``(1) In general.--The Federal share of the cost of an 
     activity carried out under this section by an eligible entity 
     shall be not more than 80 percent.
       ``(2) Source of funds.--The non-Federal share of the cost 
     of an activity carried out under this section by an eligible 
     entity may be satisfied using funds made available to the 
     eligible entity under any other Federal, State, or local 
     grant program.
       ``(c) Definitions.--In this section:
       ``(1) Administrator.--The term `Administrator' means the 
     Administrator of the Federal Highway Administration.
       ``(2) Eligible entity.--The term `eligible entity' means--
       ``(A) a State;
       ``(B) a unit of local government;
       ``(C) a political subdivision of a State;
       ``(D) a territory of the United States;
       ``(E) an entity described in section 207(m)(1)(E);
       ``(F) a recipient of funds under section 203; or
       ``(G) a metropolitan planning organization (as defined in 
     section 134(b)(2)).
       ``(3) Environmental review process.--The term 
     `environmental review process' has the meaning given the term 
     in section 139(a)(5).
       ``(4) Proposed project.--The term `proposed project' means 
     a surface transportation project for which an environmental 
     review process is required.''.
       (b) Clerical Amendment.--The analysis for chapter 1 of 
     title 23, United States Code, is further amended by adding at 
     the end the following:

``178. Environmental review implementation funds.''.

     SEC. 60506. LOW-CARBON TRANSPORTATION MATERIALS GRANTS.

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

     ``Sec. 179. Low-carbon transportation materials grants

       ``(a) Federal Highway Administration Appropriation.--In 
     addition to amounts otherwise available, there is 
     appropriated for fiscal year 2022, out of any money in the 
     Treasury not otherwise appropriated, $2,000,000,000, to 
     remain available until September 30, 2026, to the 
     Administrator to reimburse or provide incentives to eligible 
     recipients for the use, in projects, of construction 
     materials and products that have substantially lower levels 
     of embodied greenhouse gas emissions associated with all 
     relevant stages of production, use, and disposal as compared 
     to estimated industry averages of similar materials or 
     products, as determined by the Administrator of the 
     Environmental Protection Agency, and for the operations and 
     administration of the Federal Highway Administration to carry 
     out this section.
       ``(b) Reimbursement of Incremental Costs; Incentives.--
       ``(1) In general.--The Administrator shall, subject to the 
     availability of funds, either reimburse or provide incentives 
     to eligible recipients that use low-embodied carbon 
     construction materials and products on a project funded under 
     this title.
       ``(2) Reimbursement and incentive amounts.--
       ``(A) Incremental amount.--The amount of reimbursement 
     under paragraph (1) shall be equal to the incrementally 
     higher cost of using such materials relative to the cost of 
     using traditional materials, as determined by the eligible 
     recipient and verified by the Administrator.
       ``(B) Incentive amount.--The amount of an incentive under 
     paragraph (1) shall be equal to 2 percent of the cost of 
     using low-embodied carbon construction materials and products 
     on a project funded under this title.
       ``(3) Federal share.--If a reimbursement or incentive is 
     provided under paragraph (1), the total Federal share payable 
     for the project for which the reimbursement or incentive is 
     provided shall be up to 100 percent.
       ``(4) Limitations.--
       ``(A) In general.--The Administrator shall only provide a 
     reimbursement or incentive under paragraph (1) for a project 
     on a--
       ``(i) Federal-aid highway;
       ``(ii) tribal transportation facility;
       ``(iii) Federal lands transportation facility; or
       ``(iv) Federal lands access transportation facility.
       ``(B) Other restrictions.--Amounts made available under 
     this section shall not be subject to any restriction or 
     limitation on the total amount of funds available for 
     implementation or execution of programs authorized for 
     Federal-aid highways.
       ``(C) Single occupant passenger vehicles.--Funds made 
     available under this section shall not be used for projects 
     that result in additional through travel lanes for single 
     occupant passenger vehicles.
       ``(5) Materials identification.--The Administrator shall 
     review the low-embodied carbon

[[Page H7645]]

     construction materials and products identified by the 
     Administrator of the Environmental Protection Agency and 
     shall identify low-embodied carbon construction materials and 
     products--
       ``(A) appropriate for use in projects eligible under this 
     title; and
       ``(B) eligible for reimbursement or incentives under this 
     section.
       ``(c) Definitions.--In this section:
       ``(1) Administrator.--The term `Administrator' means the 
     Administrator of the Federal Highway Administration.
       ``(2) Eligible recipient.--The term `eligible recipient' 
     means--
       ``(A) a State;
       ``(B) a unit of local government;
       ``(C) a political subdivision of a State;
       ``(D) a territory of the United States;
       ``(E) an entity described in section 207(m)(1)(E);
       ``(F) a recipient of funds under section 203;
       ``(G) a metropolitan planning organization (as defined in 
     section 134(b)(2)); or
       ``(H) a special purpose district or public authority with a 
     transportation function.
       ``(3) Greenhouse gas.--The term `greenhouse gas' means the 
     air pollutants carbon dioxide, hydrofluorocarbons, methane, 
     nitrous oxide, perfluorocarbons, and sulfur hexafluoride.''.
       (b) Clerical Amendment.--The analysis for chapter 1 of 
     title 23, United States Code, is further amended by adding at 
     the end the following:

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

   TITLE VII--COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS

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

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

     SEC. 70002. UNITED STATES POSTAL SERVICE CLEAN FLEETS.

       In addition to amounts otherwise available, there is 
     appropriated to the United States Postal Service for fiscal 
     year 2022, out of any money in the Treasury not otherwise 
     appropriated, the following amounts, to be deposited into the 
     Postal Service Fund established under section 2003 of title 
     39, United States Code:
       (1) $1,290,000,000, to remain available through September 
     30, 2031, for the purchase of zero-emission delivery 
     vehicles.
       (2) $1,710,000,000, to remain available through September 
     30, 2031, for the purchase, design, and installation of the 
     requisite infrastructure to support zero-emission delivery 
     vehicles at facilities that the United States Postal Service 
     owns or leases from non-Federal entities.

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

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

     SEC. 70004. GOVERNMENT ACCOUNTABILITY OFFICE OVERSIGHT.

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

     SEC. 70005. OFFICE OF MANAGEMENT AND BUDGET OVERSIGHT.

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

     SEC. 70006. FEMA BUILDING MATERIALS PROGRAM.

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

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

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

                TITLE VIII--COMMITTEE ON INDIAN AFFAIRS

     SEC. 80001. TRIBAL CLIMATE RESILIENCE.

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

     SEC. 80002. NATIVE HAWAIIAN CLIMATE RESILIENCE.

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

     SEC. 80003. TRIBAL ELECTRIFICATION PROGRAM.

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

     SEC. 80004. EMERGENCY DROUGHT RELIEF FOR TRIBES.

       (a) Emergency Drought Relief for Tribes.--In addition to 
     amounts otherwise

[[Page H7646]]

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


                            Motion to Concur

  Mr. YARMUTH. Mr. Speaker, I have a motion at the desk.
  The SPEAKER pro tempore. The Clerk will designate the motion.
  The text of the motion is as follows:

       Mr. Yarmuth moves that the House concur in the Senate 
     amendment to H.R. 5376.

  The SPEAKER pro tempore. Pursuant to House Resolution 1316, the 
motion shall be debatable for 3 hours equally divided among and 
controlled by the respective chairs and ranking minority members of the 
Committees on the Budget, Energy and Commerce, and Ways and Means, or 
their respective designees.
  The gentleman from Kentucky (Mr. Yarmuth), the gentleman from 
Missouri (Mr. Smith), the gentleman from New Jersey (Mr. Pallone), the 
gentlewoman from Washington (Mrs. Rodgers), the gentleman from 
Massachusetts (Mr. Neal), and the gentleman from Texas (Mr. Brady) each 
will control 30 minutes.
  The Chair recognizes the gentleman from Kentucky.


                             General Leave

  Mr. YARMUTH. Mr. Speaker, I ask unanimous consent that all Members 
have 5 legislative days within which to revise and extend their remarks 
and insert extraneous material into the Record on the Senate amendment 
to H.R. 5376.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Kentucky?
  There was no objection.
  Mr. YARMUTH. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, the legislation before us today is a big deal for 
American families and a big deal for our planet.
  The Inflation Reduction Act will lower healthcare costs and energy 
costs for American families. It will allow Medicare to negotiate lower 
prescription drug prices and cap drug costs for seniors, saving many 
Medicare beneficiaries hundreds, if not thousands, of dollars each 
year.
  This legislation finally makes the biggest corporations start paying 
their fair share in taxes, and it ensures that rich tax cheats start 
paying what they owe.
  The Inflation Reduction Act is fiscally responsible, fully paid for, 
and has been strongly endorsed by top U.S. economists across the 
political spectrum.
  Not one American family making less than $400,000 a year will see 
their Federal tax bill increased by this legislation, not by a penny.
  The Inflation Reduction Act is also the biggest investment the U.S. 
Government has ever made to combat climate change. It leapfrogs us 
ahead of nearly every other country in terms of our commitment to 
tackling this crisis.
  Now, we have seen a lot of Republicans spreading misinformation about 
this legislation, and it is for one reason and one reason only: They 
are scared. They know the provisions of this bill are overwhelmingly 
popular, yet because they consider it a Democratic bill, every single 
one of them will be voting against it. This is a crystal-clear example 
of Republicans putting party before country.
  Just look at the numbers.
  Mr. Speaker, 77 percent of Americans support placing caps on 
prescription drug prices to lower healthcare costs. That is a key 
component of this bill.
  Mr. Speaker, 83 percent of Americans support allowing Medicare to 
negotiate drug prices to make healthcare more affordable. That is 
another key component of this bill.
  Two-thirds of Americans think the government should do more to combat 
climate change. This bill takes on climate change with the urgency it 
deserves.
  By opposing this bill, Republicans are making it very clear where 
they stand: not with the American people, not with their priorities or 
needs, but with Big Pharma, with corporate lobbyists, with tax cheats.
  The American people are on our side. They want this bill. Today, in a 
huge victory for them, we will send it to the President's desk to be 
signed into law.
  Let me remind my Republican colleagues what they are voting against. 
They are voting against cutting prescription drug prices for their 
constituents--in many cases, for lifesaving medication. They are voting 
against combating inflation and lowering energy costs when American 
families are desperate for us to take action. They are voting against 
providing the largest Federal investment ever to combat the climate 
crisis and its life-threatening consequences.
  I could not be more proud that I will not only be voting ``yes'' on 
this bill but that this historic legislation will bear my name.
  With or without Republican support, today, we will make a real 
difference. We will use the power of the Federal Government to make 
American lives better and our country and planet safer. In other words, 
we will do our job.
  Mr. Speaker, I reserve the balance of my time.
  Mr. SMITH of Missouri. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, before I begin, I will take a moment to recognize our 
colleague, Jackie Walorski. We come back to the Capitol with very heavy 
hearts. Just over a week ago, we lost Jackie and two of her staffers, 
Emma Thomson and Zachery Potts, while they were in their public 
service.
  I was lucky enough to serve with Jackie on the Ways and Means 
Committee and worked with her numerous hours. I know that the Ways and 
Means Committee will miss her dearly. The people of this body will miss 
her dearly. I know that the people of Indiana will miss her very 
dearly.
  Mr. Speaker, I will say that Jackie was one of the hardest working 
public servants that I have ever met, and when she gave you her word, 
it was written and carved in stone. For that, she will always be in our 
hearts.
  Mr. Speaker, as we turn to the legislation before us today, this 
week, we found out inflation remains at a 40-year high, having risen 
13.7 percent since Biden became President. Real wages have decreased by 
4.5 percent.
  Americans are suffering. Are we here debating how to alleviate that 
suffering? No. We are debating what Democrats call the Inflation 
Reduction Act, which everyone from the Congressional Budget Office to 
230 different economists--even Senator Bernie Sanders--says will not 
actually reduce inflation.

                              {time}  1200

  When you strip away the fake sunset policies, this bill spends $745 
billion and adds $146 billion to our debt. It adds $54 billion worth of 
debt just in the first 5 years, and 80 percent of their ``budget 
deficits'' don't even begin until after the year 2029.
  So lots of spending up front, lots of debt up front, and then maybe 
savings 8 years from now. How is that going to put out the fire of 
inflation when the price of groceries is up 13.1 percent over the past 
year?
  Senators Manchin and Schumer, Secretary Yellen, and former President 
Obama are all on record saying you don't raise taxes during a 
recession. But that is exactly what this bill does. It includes $599 
billion in new taxes and budget gimmicks. Half of the tax burden falls 
on taxpayers making less than $400,000 a year.
  The choice this bill puts in front of families making less than 
$200,000 is clear. Put the government at the center of your healthcare 
decisions or face a $10 billion tax burden. But it gets worse. This 
bill doubles the size of the IRS. It doubles the size of the IRS, so it 
can target and audit more middle-class families and snoop into their 
bank accounts. I am not sure how subjecting Americans to more audits 
solves the inflation crisis.
  Mr. Speaker, in my home State of Missouri, this bill would quadruple 
the number of audits, 18,000 more audits on hardworking Americans who 
make less than $200,000 a year. Of course, that is not the only point 
of this bill. This is about Democrats' Green New Deal agenda.
  My colleagues on the other side will come down here today not to talk

[[Page H7647]]

about inflation, not to talk about gas prices but to instead talk about 
the hundreds of billions of dollars that is being spent on radical 
environmental projects. And you know what, they will be exactly right.
  Half of the spending--over $400 billion--goes to things like:
  $3.4 billion for tree equity. Tree equity, that surely is going to 
bring down gas prices;
  $7.5 billion for new luxury electric vehicles in tax credits for 
families who make up to $300,000 a year. That should definitely curtail 
inflation;
  $27 billion for a national climate bank slush fund at the EPA. That 
should definitely help our supply chain crisis;
  A $362 million handout to corporate America to make their office 
buildings much greener. That will definitely help secure our southern 
border.
  Mr. Speaker, Democrats believe they can spend their way out of 
inflation and tax their way out of a recession. It will only make the 
suffering Americans face today that much worse.
  This bill is simple. It is welfare for the wealthy environmentalists 
and big corporations, paid for by increased taxes and audits on middle- 
and low-income taxpayers. These hardworking Americans are the ones that 
have been forgotten under the one-party Democrat rule in Washington. 
The Washington and wealthy elites win again.
  Mr. Speaker, I reserve the balance of my time.
  Mr. YARMUTH. Mr. Speaker, I yield 2 minutes to the gentlewoman from 
Massachusetts (Ms. Clark), the Assistant Speaker.
  Ms. CLARK of Massachusetts. Mr. Speaker, I thank the chairman for 
yielding.
  Mr. Speaker, this is exactly what the American people need. It lowers 
costs, it creates great-paying jobs, and it makes our communities safer 
by addressing the lethal effects of climate change.
  Seniors won't have to choose between putting food on the table and 
paying for their prescription drugs;
  More families are going to be able to afford healthcare;
  Homes and cars will be more affordable and efficient;
  U.S. companies will be able to create great-paying jobs and lead the 
clean technology revolution;
  Billionaires and corporations will finally have to pay their fair 
share while working people will have more money in their pockets;
  Costs will be lower, water will be cleaner, green jobs will be 
plentiful, and our future will be brighter.
  In every way, this game-changing bill moves America forward. 
Democrats are lowering costs for everyday Americans. We are standing up 
to special interests who have blocked cutting the cost of prescription 
drugs over and over again and America's critical transition to clean 
energy.
  We are rebuilding a stronger, greener economy. We are infusing the 
tax system with fairness. This is a win for the American public. This 
is a win for people over politics.
  Mr. SMITH of Missouri. Mr. Speaker, I yield 1 minute to the 
gentlewoman from the great State of Iowa (Mrs. Hinson).
  Mrs. HINSON. Mr. Speaker, I rise today in opposition to this so-
called Inflation Reduction Act.
  Last year, we warned that spending trillions of dollars would cause 
prices to spike but Democrats did it anyway--ramming through a 
trillion-dollar Washington pork buffet, sticking families with the 
bill.
  Now, Speaker Pelosi is arguing for yet another tax-and-spending 
spree, wasting hundreds of billions of taxpayer dollars on Green New 
Deal priorities and raising taxes on middle-class families.
  This will worsen inflation. It sics the IRS on hardworking Iowans--
adding 87,000 new IRS agents to target taxpayers.
  Iowans are begging for us to get prices down, but instead, this bill 
takes more of their hard-earned paychecks. And for what? So the wealthy 
can get a discount on their electric vehicles? So we can increase 
bureaucracy at the EPA to impose new regulations on our farmers?
  Mr. Speaker, this bill ignores the pain that Iowans are feeling. It 
is the worst policy at the worst possible time.
  Mr. Speaker, I urge a ``no'' vote on this latest tax-and-spending 
spree.
  Mr. YARMUTH. Mr. Speaker, I yield 2 minutes to the gentleman from New 
York (Mr. Jeffries), the Democratic Caucus chair, and a distinguished 
member of the Budget Committee.

  Mr. JEFFRIES. Mr. Speaker, I thank the distinguished chair for 
yielding and for his leadership.
  Mr. Speaker, we are once again getting big things done for everyday 
Americans.
  We passed the American Rescue Plan, saved the economy, put shots in 
arms, money in pockets, and kids back in school.
  We passed the Infrastructure Investment and Jobs Act to fix our 
crumbling infrastructure and create millions of good-paying jobs.
  We passed gun safety legislation for the first time in 30 years that 
will save lives.
  We passed the CHIPS and Science Act that will bring back domestic 
manufacturing jobs to the United States of America.
  Mr. Speaker, I rise today in strong support of the Inflation 
Reduction Act, another transformative bill brought to you by your 
friendly neighborhood Democratic Party.
  The Inflation Reduction Act will lower energy costs; confront the 
climate crisis with the fierce urgency of now; set our planet forward 
on a sustainable trajectory; lower healthcare costs by strengthening 
the Affordable Healthcare Act, as well as reducing the deficit by $300 
billion, and giving Medicare the ability to use its bulk-price 
purchasing power to drive down the high cost of lifesaving prescription 
drugs.
  It is a big F-ing deal.
  The Inflation Reduction Act is going to dramatically improve the 
lives of everyday Americans. We are putting people over politics. 
Fighting to lower costs for safer communities and better paying jobs.
  My colleagues on the other side of the aisle, Republicans, will 
oppose this groundbreaking legislation. They would rather defend Donald 
Trump than defend the American people.
  Vote ``yes'' on the Inflation Reduction Act so we can continue to put 
people over politics.
  Mr. SMITH of Missouri. Mr. Speaker, I yield 1 minute to the gentleman 
from Virginia (Mr. Cline).
  Mr. CLINE. Mr. Speaker, I thank the gentleman for yielding.
  Mr. Speaker, we know the real story. We know what happened a year and 
a half ago when the so-called American Rescue Plan was passed--40-year 
high inflation rates resulted. We see now what the result is from the 
Build Back Better plan that had no chance of passage in the Senate. 
This is the offspring of Build Back Better.
  Even Bernie Sanders, a socialist who can come up with a million 
flawed excuses to spend your tax dollars, says he can't find a way to 
even say this would reduce inflation one iota.
  We know that instead of fostering American energy independence, 
increasing purchasing power for the American family, and reducing 
inflation, this bill includes:
  $16.5 billion in higher taxes for those making less than $200,000 a 
year;
  $38 billion in new taxes on American oil and gas producers, which 
will be passed along to consumers in the form of even higher costs for 
heating homes and gas prices, and;
  $480 billion in tax hikes that will hit workers through slashed 
wages.
  Half the bill is Green New Deal climate change special interest 
funding, including taxpayer-funded subsidies on electric vehicle 
purchases, and;
  $80 billion to double the size of the IRS, creating an army of new 
enforcement agents.
  Mr. Speaker, I urge a ``no'' vote on this horrible legislation.
  Mr. YARMUTH. Mr. Speaker, I yield 1 minute to the gentlewoman from 
New York (Mrs. Carolyn B. Maloney), the distinguished chair of the 
Committee on Oversight and Reform.
  Mrs. CAROLYN B. MALONEY of New York. Mr. Speaker, as chair of the 
Committee on Oversight and Reform, I rise in strong, strong support of 
the Inflation Reduction Act.
  My committee conducted a 3-year investigation of prescription drug 
prices. Our findings overwhelmingly support the need for this bill's 
reforms to curb the drug industry's outrageous pricing practices and 
make prescription drugs more affordable for patients and taxpayers.

[[Page H7648]]

  These reforms include empowering Medicare to negotiate prices for 
certain drugs, a step that is long overdue.
  My committee's investigation into the fossil fuel industry showed 
that Big Oil is refusing to take adequate steps to cut emissions, even 
though burning fossil fuels is a primary driver of the climate crisis. 
This bill will finally bring down emissions from fossil fuels, helping 
our environment.
  I am proud to have championed other provisions in the bill, including 
a historic investment of $3 billion to electrify the Postal Service 
delivery fleet. This will replace tens of thousands of gas-guzzling 
trucks with clean, electric vehicles, helping our environment.
  Mr. Speaker, I am honored to cast my vote for the Inflation Reduction 
Act today.
  Mr. Speaker, as Chairwoman of the Committee on Oversight and Reform, 
I rise in support of the Inflation Reduction Act.
  My Committee conducted a three-year investigation of prescription 
drug pricing. Our findings overwhelmingly support the need for this 
bill's reforms to curb the drug industry's outrageous pricing practices 
and make prescription drugs more affordable for patients and taxpayers.
  These reforms include empowering Medicare to negotiate prices for 
certain drugs, a step that is long overdue.
  My Committee's investigation into the fossil fuel industry showed 
that Big Oil is refusing to take adequate steps to cut emissions, even 
though burning fossil fuels is a primary driver of the climate crisis.
  This bill will finally bring down emissions from fossil fuels.
  I'm also proud to have championed other provisions in this bill, 
including a historic investment of $3 billion to electrify the Postal 
Service delivery fleet. This will replace tens of thousands of gas-
guzzling trucks with clean electric vehicles.
  I am honored to cast my vote for the Inflation Reduction Act today.
  Mr. SMITH of Missouri. Mr. Speaker, I yield 1 minute to the gentleman 
from Iowa (Mr. Feenstra).
  Mr. FEENSTRA. Mr. Speaker, I thank Ranking Member Smith for yielding.
  Mr. Speaker, I would just quickly note that I am highly offended by 
the use of the foul language by my Democrat colleague. That is 
completely unacceptable.
  Mr. Speaker, I rise today in strong opposition to the Democrats' 
inflation expansion act. This wasteful bill is full of liberal 
priorities that will continue to fuel inflation, raise taxes on 
hardworking families, and create an army of 87,000 IRS agents that will 
go after our families and small businesses.
  Democrats claim that only large corporations will be the target of 
these IRS agents. That is factually false. Families and small 
businesses, who don't have the time or the resources, will undergo 
these invasive audits and will bear the brunt of these IRS agents. This 
radical bill will also supercharge the Democrats' Green New Deal agenda 
without making our country energy independent again.
  In fact, they would rather import dirty foreign oil from Venezuela 
than unleash America's energy independence. Sadly, that is the state of 
today's Democratic Party and their failed liberal agenda.
  Mr. Speaker, as a strong fiscal conservative, I urge my colleagues to 
oppose this bill.
  Mr. YARMUTH. Mr. Speaker, I yield 1 minute to the gentleman from 
Virginia (Mr. Scott), the distinguished chairman of the Committee on 
Education and Labor, and a member of the Budget Committee.
  Mr. SCOTT of Virginia. Mr. Speaker, with the passage of this bill, 
Medicare will finally be able to negotiate for lower drug prices. The 
bill extends the American Rescue Plan's reduction in the cost of 
insurance under the Affordable Care Act, which has helped us reach the 
lowest number of uninsured people ever.
  The bill will make the largest ever investment to address climate 
change. I am especially pleased with the bill's provisions to 
turbocharge the development of offshore wind.
  As chairman of the Committee on Education and Labor, I am encouraged 
by the permanent extension of the black lung excise tax. The extension 
will fund future benefits in healthcare for miners in southwest 
Virginia and across coal country who are suffering from black lung 
disease. Extending the tax will protect the long-term sustainability of 
the Black Lung Disability Trust Fund by ensuring that the coal industry 
does not shift the cost of benefits from coal companies to miners, 
families, or the taxpayer. All of this while simultaneously reducing 
the Federal deficit.
  Mr. Speaker, I urge my colleagues to support the legislation.

                              {time}  1215

  Mr. SMITH of Missouri. Mr. Speaker, I yield 1 minute to the 
gentlewoman from Colorado.
  Mrs. BOEBERT. Mr. Speaker, insanity is doing the same thing 
repeatedly and expecting a different result. That makes the supporters 
of this legislation, by definition, insane.
  Reckless spending in this town is what causes inflation. We cannot 
continue to increase taxes on the American people and put a target on 
American energy production while spending a historic $370 billion on 
Green New Deal initiatives and expect to lower inflation and improve 
our economy.
  Remember that so-called bipartisan infrastructure bill? We spent $200 
billion on Green New Deal initiatives. I guess that was just a 
downpayment on this never-ending theft of American tax dollars. You are 
sacrificing American families at the altar of climate change.
  Mr. Speaker, isn't it so? Joe Biden himself said the inflation rate 
is at zero percent. What the heck are we doing here? Why are we passing 
this so-called Inflation Reduction Act if it is at zero percent?
  In fact, it is the inflation enhancement act, and it does the exact 
opposite of what Americans need right now. This is just another con 
game by the Democrats calling something one thing and saying another.
  The SPEAKER pro tempore. The time of the gentlewoman has expired.
  Mr. SMITH of Missouri. Mr. Speaker, I yield an additional 30 seconds 
to the gentlewoman from Colorado.
  Mrs. BOEBERT. Mr. Speaker, this bill hires 87,000 new IRS agents, and 
they are armed. The job description tells them that they need to be 
required to carry a firearm and expect to use deadly force if 
necessary.
  Excessive taxation is theft. The chairman said that we are using the 
power of the Federal Government in this bill. You are darn right you 
are. You are using the power of the Federal Government for armed 
robbery on the taxpayers. I can see why this was rushed through 
committee and put on the floor.
  The SPEAKER pro tempore. The time of the gentlewoman has again 
expired.
  The gentlewoman is no longer recognized.
  Mr. YARMUTH. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I will say in response to the gentlewoman from Colorado 
(Mrs. Boebert) that this is typical of what the Republicans are doing.
  First of all, they are making up numbers. There is nowhere anywhere 
that shows that 87,000 new IRS agents are going to be hired in this 
bill. That is a totally fabricated number. The idea that they are 
armed--I know that Mrs. Boebert would like everybody to be armed, as 
they are in her restaurant, but that is not what IRS agents do.
  Mr. Speaker, I would implore my Republican colleagues to cut out the 
scare tactics, quit making things up, and debate the substance of this 
bill.
  Mr. Speaker, I yield 1 minute to the gentleman from California (Mr. 
Peters), a distinguished member of the Budget Committee.
  Mr. PETERS. Mr. Speaker, today, we write a bold new chapter in our 
history by passing the Inflation Reduction Act, which will 
substantially lower the cost of living for San Diegans and all 
Americans.
  We are turning our climate ambition into climate action by 
establishing a methane fee to reduce harmful emissions, creating a 
clean energy technology bank, and funding wildfire resiliency efforts 
and clean energy infrastructure.
  Together, these investments will cut our greenhouse gas emissions by 
40 percent by 2030 and create 1.5 million good-paying jobs.
  This legislation is also the largest downpayment in deficit reduction 
since I have served in Congress. Importantly, the drug pricing reform 
framework I helped author will help seniors at the drug counter and 
protect private-sector innovation, and it has earned enough votes to 
pass the Senate.

[[Page H7649]]

  The Inflation Reduction Act is a historic measure. After months of 
negotiations and hard work, let's finally get this done. Vote ``yes.''
  Mr. SMITH of Missouri. Mr. Speaker, I include in the Record notice 
from the Congressional Budget Office that we received just this 
morning, as a matter of fact. Yes, the bill in front of us and the 
numbers it claims does include additional audits on individuals making 
less than $400,000 a year.
       CBO has received a number of questions regarding our 
     estimate of an amendment offered by Senator Crapo during the 
     floor debate on H.R. 5376 last weekend. That amendment, 
     #5404, would limit the use of additional funds for the 
     Internal Revenue Service. If the amendment had been adopted 
     none of the additional funds could have been used to audit 
     taxpayers with taxable incomes below $400,000.
       CBO did not complete a formal cost estimate in advance of 
     consideration of the amendment but the agency did provide the 
     following information to the Senate Budget Committee:
       CBO estimates that the amendment 5404 would have the 
     following effects:
       No effect on outlays in the one or ten year budget windows; 
     would reduce outlays in the five year budget window.
       No effect on revenues in the one year budget window; would 
     reduce the ``non-scorable'' revenues resulting from the 
     provisions of section 10301 in the five and ten year budget 
     windows.
       No effect on outlays after 2031 but would decrease the 
     ``non-scorable'' revenue resulting from the provisions of 
     section 10301 after 2031.
       CBO has not completed a point estimate of this amendment 
     but the preliminary assessment indicates that amendment 5404 
     would reduce the ``non-scorable'' revenues resulting from the 
     provisions of section 10301 by at least $20 billion over the 
     FY2022-FY2031 period.
       Thanks,
                                                     Leigh Angres,
                                   Director of Legislative Affairs
                                      Congressional Budget Office.

  Mr. SMITH of Missouri. Mr. Speaker, I yield 1\1/2\ minutes to the 
gentleman from California (Mr. McClintock).
  Mr. McCLINTOCK. Mr. Speaker, the Democrats printed and spent 
trillions of dollars we didn't have, and they unleashed the worst 
inflation in 40 years. They waged war on capitalism and the energy 
industry and produced an economic recession.
  Now, they are doubling down on these foolish policies. The more that 
some people invest in their mistakes, the less willing they are to 
admit them.
  They are adding 87,000 new IRS agents--that is larger than the entire 
population of Flint, Michigan--in order to collect $200 billion in new 
taxes, mostly from middle-class families and shopkeepers who don't have 
the resources to contest expensive audits.
  They are adding $300 billion in new corporate taxes, which will be 
passed on to families as higher prices, lower wages, and lower returns.
  All of this is to give away three-quarters of a trillion dollars more 
of your earnings to their green energy cronies and other political 
supporters. That averages about $6,000 per household.
  Just as you cannot drink yourself sober, you cannot spend your way 
out of inflation, or tax yourself out of recession, or borrow your way 
out of debt. Yet, that is exactly what the Democrats claim they can do. 
What makes them think socialism will work any better here than 
everywhere else in the world that it has been tried?
  This bill takes our country further into this dismal future, and only 
more suffering and poverty will come of it.
  Mr. YARMUTH. Mr. Speaker, I yield 1 minute to the gentleman from 
Michigan (Mr. Kildee), a distinguished member of the Budget Committee.
  Mr. KILDEE. Mr. Speaker, I rise in support of the Inflation Reduction 
Act to help fight inflation and lower costs for the Michigan families 
and seniors that I represent.
  With this bill, we will be able to lower healthcare costs for 
Michigan families and seniors. This bill will allow Medicare to 
negotiate the cost of prescription drugs, including capping the cost of 
insulin for seniors at $35 a month.
  With this bill, we will create good-paying jobs to combat the climate 
crisis. This bill will invest in domestic clean energy production and 
manufacturing facilities to lower costs. It will support making solar 
panels at companies like Hemlock Semiconductor and electric vehicles in 
Michigan, not in China.
  With this bill, which is fully paid for, we will ensure the biggest 
corporations and the wealthiest individuals pay their fair share of 
taxes. Right now, 55 of the Nation's biggest corporations pay zero in 
Federal taxes while making billions in profits. A Flint nurse, a 
Saginaw farmer, or a Bay City teacher should not pay more in taxes than 
the largest, wealthiest, most profitable corporations.
  Mr. Speaker, I support this legislation.
  Mr. SMITH of Missouri. Mr. Speaker, I include in the Record a letter 
from the nonpartisan Congressional Budget Office, which confirmed that 
this bill will raise the cost of new prescription drugs for all 
Americans.

                                                    U.S. Congress,


                                  Congressional Budget Office,

                                   Washington, DC, August 4, 2022.
     Re Additional Information About Prescription Drug 
         Legislation.

     Hon. Jason Smith,
     Ranking Member, Committee on the Budget,
     House of Representatives, Washington, DC.
       Dear Congressman: This letter provides additional 
     information that you and your colleagues requested about 
     subtitle I of the reconciliation recommendations of the 
     Senate Committee on Finance regarding prescription drug 
     legislation. You asked about how provisions involving 
     inflation rebates and the negotiation of drug prices would 
     affect launch prices for new drugs and the introduction of 
     new generic drugs. You also asked how a provision to 
     stabilize premiums as a part of the redesign of Medicare's 
     benefits would affect the federal budget and premiums.


  Effect of the Inflation-Rebate and Negotiation Provisions on Launch 
                                 Prices

       The Congressional Budget Office projects that the 
     inflation-rebate and negotiation provisions would increase 
     the launch prices for drugs that are not yet on the market 
     relative to what such prices would be otherwise. That effect 
     would primarily be driven by the inflation-rebate provisions 
     (sections 129101 and 129102), which would begin to apply to 
     prices within 12 months of a given drug's entering the 
     market. Under those provisions, manufacturers would have an 
     incentive to launch new drugs at a higher price to offset 
     slower growth in prices over time. The negotiation provision 
     (section 129001) would have less of an impact on launch 
     prices, CBO expects: Although the ceiling for a drug's 
     negotiated price is based on its price from a prior year, 
     negotiation could not occur until drugs were on the market 
     for a number of years--at least 7 for small-molecule drugs 
     and 11 for biologics.
       Higher launch prices would primarily affect spending for 
     drugs in the Medicaid program, CBO projects, because an 
     increase in that program's basic rebate brought about by the 
     higher launch prices would only partly offset those prices. 
     Higher launch prices would also tend to affect spending for 
     drugs covered by Part B of the Medicare program because that 
     program's payments for those drugs are based on the average 
     sales prices. Over time, slower price growth would attenuate 
     the effect of higher launch prices.
       In the commercial and Medicare Part D segments of the 
     market, spending would be less affected by higher launch 
     prices, CBO estimates, because manufacturers would have more 
     flexibility to manage rebates to maximize their revenues in 
     those sectors.


Effect of the Negotiation Provision on the Introduction of New Generic 
                                 Drugs

       CBO has not analyzed the effects of the negotiation 
     provision on the introduction of new generic drugs. In 
     projecting the effects of the negotiation provision, CBO 
     estimated the share of spending that would be subject to 
     negotiation each year and the average reduction in prices 
     that would stem from the negotiations. But the agency did not 
     analyze how the provision would affect prices or spending on 
     specific drugs, nor did it quantify any impact on the 
     introduction of new generic drugs.


             Effects of the Premium-Stabilization Provision

       Under the premium-stabilization provision (section 129201), 
     the federal government would subsidize any growth in 
     beneficiaries' base premiums for Medicare Part D exceeding 6 
     percent from one year to the next over the 2024-2029 period. 
     The provision subsequently would lower the base premium 
     percentage (the percentage of the average cost of standard 
     Part D coverage that is used to calculate beneficiaries' 
     premiums) to ensure that premiums did not grow by more than 6 
     percent between 2029 and 2030. That subsidy and subsequent 
     reduction in premiums would increase federal spending by 
     roughly $40 billion over the 2024-2031 period, CBO estimates. 
     Beneficiaries' spending on premiums would be lower under the 
     premium-stabilization provision than it would be without it.
       That estimate is an average effect among the possible paths 
     of premiums that CBO considered when modeling the uncertainty 
     of future outcomes. Under some of those paths, premiums would 
     grow by less than 6 percent a year, and the provision would 
     have no cost; under others, premiums would grow faster, and 
     the provision would generate costs.

[[Page H7650]]

       I hope this information is useful to you and your 
     colleagues. Please contact me if you have further questions.
           Sincerely,
                                                Phillip L. Swagel,
                                                         Director.
  Mr. SMITH of Missouri. Mr. Speaker, I yield 1 minute to the gentleman 
from Virginia (Mr. Good).
  Mr. GOOD of Virginia. Mr. Speaker, the Democrats are determined to 
make inflation worse by continuing their disastrous policies that 
caused it in the first place. Do they not understand the concept of 
pouring gas on a fire?
  Beyond the reckless spending of nearly another trillion dollars on 
top of the $30 trillion national debt--there is no climate crisis. It 
is a hoax. This is the one crisis that even Democrats couldn't create.
  They have been crying about the climate sky falling for 40 years now, 
predicting the world would end in 12 years. It is a lie.
  We are the cleanest large energy producer in the world, and fossil 
fuels are a wonderful thing. They are essential to our economic and 
national security.
  Worse yet, Democrats want to spend $80 billion to hire 87,000 more 
armed IRS agents to terrorize Americans with 1.2 million more audits of 
hardworking taxpayers. No one in my district has ever told me that the 
one thing we need is more IRS agents.
  Mr. Speaker, the American people will vote against this bill on 
November 8.
  Mr. YARMUTH. Mr. Speaker, we just heard the big lie a couple more 
times about 87,000 IRS agents that are going to be armed. It is total 
bunk. Nonsense. The Republicans should stop it and tell the truth. They 
are continuing to say it.
  I will say one thing. We were informed last week by the Commissioner 
of the IRS, Mr. Rettig, an appointee of former President Trump, that 
audits would not increase for anybody making under $400,000 a year.
  Mr. Speaker, I yield 1 minute to the gentlewoman from Washington (Ms. 
Jayapal), a distinguished member of the Budget Committee.
  Ms. JAYAPAL. Mr. Speaker, today, Democrats will take unprecedented 
and urgent action when we pass the Inflation Reduction Act.
  Today, we make good on our promise to take on climate change and 
climate justice with historic investments in green technologies that 
will cut carbon emissions by 40 percent by 2030, create over 9 million 
good jobs, put $60 billion into environmental justice, and cut energy 
costs for the average American family by almost $1,000 a year.
  Also, for the first time, we take on Big Pharma's price gouging, 
finally allowing Medicare to negotiate lower prescription drug prices, 
capping the cost of insulin, and continuing to make healthcare more 
affordable. All of it is paid for with taxes on the largest 
corporations and the wealthiest.
  We have more to do to complete the rest of the President's agenda on 
childcare, senior care, expanding Medicare, and investing in housing. 
With a few more Democrats in the Senate, we will get that done, too.
  Today, let's celebrate this massive investment for the people. People 
over politics. Let's pass this bill.
  Mr. SMITH of Missouri. Mr. Speaker, I appreciate the gentlewoman from 
Washington State, and I would just like to point out that by doubling 
the size of the IRS and adding 87,000 new IRS agents, that will result 
in more than 20,000 of her families in Washington State who make less 
than $20,000 a year that will be receiving audits.
  Mr. Speaker, I yield 1\1/2\ minutes to the gentleman from Wisconsin 
(Mr. Grothman).
  Mr. GROTHMAN. Mr. Speaker, the 87,000 figure is entirely reasonable, 
given we have an $80 billion increase. Now, is it exact? It might be 
86,500. I don't know. It is a big number.
  First of all, it is that many more people monitoring Americans. 
Anybody that wants a free society should be afraid of that.
  Secondly, with 86,500 people poking around small business, it means 
that much more accountant time that has to be paid for by the small 
businesses. It means that many more lawyers hired by the small 
businesses. It is really an accountant and legal make-work program. 
Auditing on this scale will really change the amount of time you have 
to deal with this.
  Other things, you are getting rid of--I am very disappointed--the 
good provision you had with regard to carried interest. You are finally 
going after some of the billionaires of this country, and I wish you 
wouldn't have caved into the Senate and removed that provision. That 
was a very good thing.
  Next, you have way too much corporate welfare in here. $134 billion 
in tax credits for so-called favored green industries. What is it? It 
is that many more businesses depending upon government, and their way 
to make money is not by providing something the American citizen wants. 
They are making money because of tax credits they have been given by 
Congress.
  Otherwise, the bill is full of other big spending, as well. There is 
a 22 percent increase in Bureau of Indian Affairs, 22 percent at a time 
when we are choking on inflation because of excessive government 
spending. That is one more spending program to put in here.
  The SPEAKER pro tempore. Members are reminded to direct their 
comments to the Chair.

                              {time}  1230

  Mr. YARMUTH. Mr. Speaker, I yield 1 minute to the gentlewoman from 
California (Ms. Lee), who is a distinguished member of the Budget 
Committee.
  Ms. LEE of California. Mr. Speaker, I rise today to support the 
Inflation Reduction Act of 2022. I thank the chairman for yielding his 
time and also for his leadership.
  This historic bill puts people over politics by lowering the cost of 
living for necessities like healthcare, creating good-paying jobs, and 
ensuring that the wealthy and corporations pay their fair share of 
taxes.
  Now, we know that lower-income communities and communities of color 
face the brunt of pollution and climate change. This bill makes the 
single largest investment in combating climate change and works to 
reduce carbon pollution by 40 percent by 2030. We still have a lot 
ahead, though, and much more work to do, like fighting for investments 
that have deep impacts on communities of color, such as housing, the 
child tax credit, investments in our care economy, universal childcare, 
and insulin caps beyond Medicare which disproportionately impacts 
people of color. But make no mistake, this bill will make an impact on 
families and our planet.
  It is a shame and disgrace that Republicans won't vote for this bill. 
But this bill helps Republican constituents also.
  So I am so proud today to vote for this bill for our Republican 
constituents.
  Mr. SMITH of Missouri. Mr. Speaker, I include in the Record notice 
from over 230 economists that this bill before us today would only 
increase inflation.

                   [From FOX Business, Aug. 4, 2022]

   Over 230 Economists Warn Manchin's Spending Bill Will Perpetuate 
                               Inflation

                            (By Kelly Laco)

       A letter sent to House and Senate leadership from 230 
     economists argues that the Inflation Reduction Act is 
     expected to contribute to skyrocketing inflation and will 
     burden the U.S. economy, contrary to President Biden and 
     Democrats' claims.
       The economists wrote in the letter first obtained by Fox 
     News Digital that the U.S. economy is at a ``dangerous 
     crossroads'' and the ``inaptly named `Inflation Reduction Act 
     of 2022' would do nothing of the sort and instead would 
     perpetuate the same fiscal policy errors that have helped 
     precipitate the current troubling economic climate.''
       Sen. Joe Manchin, D-W.Va, announced last week he reached an 
     agreement with Senate Majority Leader Chuck Schumer, D-NY, on 
     the $739 billion reconciliation Package after more than a 
     year of negotiations among Democrats.
       The economic experts point to the $433 billion in proposed 
     government spending, which they argue ``would create 
     immediate inflationary pressures by boosting demand, while 
     the supply-side tax hikes would constrain supply by 
     discouraging investment and draining the private sector of 
     much-needed resources.''
       Sen. Joe Manchin, D-W.Va., announced last week that he 
     reached an agreement with Senate Majority Leader Chuck 
     Schumer, D-NY, on the $739 billion reconciliation package 
     after more that a year of negotiations among Democrats. (F. 
     Carter Smith/Bloomberg via/Getty Images)
       They also write that of ``particular concern'' is the 
     corporate minimum tax that they say will undercut efforts to 
     restore functioning supply chains.
       In addition, the bill's prescription drug provisions 
     ``would impose price controls that

[[Page H7651]]

     threaten healthcare innovation, creating a human health toll 
     that would add to the financial woes that Americans are 
     already experiencing.''
       A few of the notable signers include Nobel laureate Vernon 
     Smith, former Chair of the Council of Economic Advisers Kevin 
     Hassett, former Director of the Office of Management and 
     Budget Jim Miller and Robert Heller, former president of the 
     Federal Reserve Board 1986-1989.
       In addition, professors from the University of Chicago, 
     Princeton University, Duke University, the University of 
     Virginia, Columbia University and the University of Notre 
     Dame, among others, were listed on the letter dated Aug. 3.
       The experts conclude that although they agree with an 
     ``urgent'' need to address inflation, Manchin's bill is a 
     ``misleading label'' applied to legislation that would 
     achieve the ``opposite effect''
       President Biden urged Congress to pass the bill during a 
     virtual roundtable Thursday. ``My message to Congress is 
     this: Listen to the American people,'' he said. (Jonathan 
     Ernst/File Photo/ Reuters)
       The letter was sent to Schumer, Senate Minority Leader 
     Mitch McConnell, R-Ky., House Speaker Nancy Pelosi, D-Calif., 
     and House Minority Leader Kevin McCarthy, R-Calif.
       Schumer has touted the Inflation Reduction Act as an 
     immediate solution to inflation, which reached a new 40-year 
     high last month.
       ``The Inflation Reduction Act will lower inflation, lower 
     the costs of prescription drugs, close loopholes long 
     exploited by big business who pay no or little taxes,'' 
     Schumer said Thursday on the Senate floor.
       In addition, Biden urged Congress to pass the bill during a 
     virtual roundtable Thursday. ``My message to Congress is 
     this: Listen to the American people,'' he said.
       ``This is the strongest bill you can pass to lower 
     inflation, continue to cut the deficit, reduce health care 
     costs, tackle a climate crisis and promote America's energy 
     security and reduce the burdens facing working-class and 
     middle-class families,'' Biden continued.
       However, Republicans are less enthusiastic about the more 
     than $700 billion spending and tax package.
       Senate Minority Leader Mitch McConnell told Fox News that 
     the bill raises taxes and ``calling it an inflation reduction 
     bill is rather laughable.'' (J. Scott Applewhite) (AP Images)
       McCarthy told Fox News on Wednesday that ``Democrats have 
     no plans to solve all the problems they created'' and 
     Manchin's bill is not the solution.
       In the Senate, McConnell stated this week that most of his 
     colleagues were ``somewhat shocked'' about Manchin's reversal 
     of previous positions He continued, telling Fox News that the 
     bill raises taxes and ``calling it an inflation reduction 
     bill is rather laughable.''
       ``Democrats are catastrophically out of touch with what 
     American families actually care about. Their approval ratings 
     show it. And their reckless taxing and spending spree proves 
     it, as well,'' said McConnell in a statement this week.
       The Senate is set to convene on Saturday to vote on a 
     procedural motion to move the bill forward. It is still 
     unclear if Sen. Kyrsten Sinema, D-Ariz., will support the 
     legislation, and her vote is necessary for final passage of 
     the bill under reconciliation rules that would allow a 
     majority to pass.
       Democrats previously touted a letter from 126 economists 
     supporting Manchin's bill.

  Mr. SMITH of Missouri. Mr. Speaker, I yield 1 minute to the gentleman 
from Florida (Mr. Donalds).
  Mr. DONALDS. Mr. Speaker, I rise in opposition to this terrible bill 
because this terrible bill will increase the cost of energy on every 
hardworking American in the United States.
  This bill actually calls for a doubling of the excise tax on oil and 
on gas, doubling of the royalties on oil and on gas.
  I was in my district yesterday with Americans for Prosperity at the 
True Cost of Washington event where they actually brought down the 
price of gasoline to $2.38, the price it was before Joe Biden took 
office. I had families in my district crying because they could finally 
put gas in their cars and food on their dinner table in that day.
  The Democrats come here today, and they want to lecture us about 
putting people over politics?
  That is a joke, and it is a lie.
  These tax increases on oil and gas will only hurt poor families all 
across America. I don't care if you are in Seattle, Washington; I don't 
care if you are in Miami, Florida; you could be in Chicago, Illinois; 
New York City; or San Francisco, California; those tax increases hurt 
the very poor among us, and the Democrats are cool with it.
  Mr. Speaker, vote ``no'' on this bill.
  Mr. YARMUTH. Mr. Speaker, I yield 1 minute to the gentlewoman from 
Texas (Ms. Jackson Lee), who is a distinguished member of the Budget 
Committee.
  Ms. JACKSON LEE. Mr. Speaker, I want to dispel the myths of the smoke 
and mirrors that are flaming up across the way with my friends.
  Do they not recognize the opportunity that we have for reducing the 
costs of healthcare with subsidies so that working families can get the 
Affordable Care Act? Or excitingly, I am so delighted that there is a 
cap on insulin. Diabetes is raging for those on Medicare, and we are 
going to get those on private insurance as well.
  Let's tell the truth about taxes. No taxes on those making $400,000 
or less but getting the $160 billion in the top 1 percent that have 
refused to pay their fair share.
  What is this folder?
  These are letters from my county attorneys and communities about 
concrete batch facilities put in neighborhoods of Hispanics and African 
Americans by Trinity Gardens in the East End and Aldine. This 
legislation, $60 billion, will help save these people who have been 
living in their homes and losing their homes because environmental 
toxins like a concrete batch facility gets put in their neighborhood 
and creates respiratory diseases: asthma, bad grass, and parks that you 
can't play in.
  Mr. Speaker, I support this legislation. Why?
  Because it is for the working people in America.
  Ms. JACKSON LEE. Mr. Speaker, I rise to wholeheartedly and 
enthusiastically support the Inflation Reduction Act of 2022, H.R. 
5376.
  I commend our Democratic colleagues in the Senate--whose tireless 
efforts culminated in this landmark legislation--and our Democratic 
Caucus in the House, whose commitment to the policies embodied in this 
legislation kept the prospect for progress alive and ready for action 
over the past year.
  We persevered to extend health care benefits, limit the cost of 
medication, combat the climate crisis, help impoverished Americans, and 
reduce inflation for all Americans. We never relinquished our focus and 
determination to help those who are suffering from the economic 
aftershocks of COVID-19.
  Enactment of the Inflation Reduction Act is crucial at this vital 
moment, as Americans need the economic relief that this bill will 
provide. It will boost quality-of-life for American families by 
reducing costs and inflation, and bolstering our national economy and 
competitiveness for years to come.
  This legislation is truly historic because it will dramatically 
advance major policies and programs supported by the vast majority of 
Americans, and it will do so in a fiscally responsible way, applying 
much of the revenue raised to deficit reduction.
  A key message that this legislation sends is that Congress, with 
Democrats at the helm, is focused on providing aid to working 
Americans, middle-income families, impoverished Americans, and those 
who most need a little help during challenging times.
  This is a stark contrast from a few years ago, when Republicans in 
control of Congress passed bills that gave massive tax breaks to the 
wealthiest people and corporations, and helped the rich get richer, 
while tossing mere table scraps to the middle class, and barely a few 
crumbs to Americans suffering in poverty.
  So, I'm delighted that the Inflation Reduction Act will provide 
urgently needed financial relief to Americans in need, reforms to 
address the climate crisis, and initiatives that will help our nation 
transition to its next era of success for all Americans.
  Among the provisions that will directly benefit family finances 
across the country are the Inflation Reduction Act's health care 
reforms, initiatives, assistance, and restraints on cost increases.
  For the first time after years of efforts by Democrats, Medicare will 
be able to negotiate with drug companies to lower the price of 
medications for Americans receiving Medicare. Maximum prices for 10 
drugs will take effect in 2026, 15 more drugs in 2027, another 15 in 
2028, and 20 more in 2029 and beyond.
  Manufacturers that do not offer a price equal to or less than the 
maximum fair price will be subject to a civil monetary penalty of 10 
times the difference between the offered price and the maximum fair 
price for all of its drugs sold in violation of that.
  The IRA will impose rebates on drug companies that increase prices 
faster than inflation to limit annual increases in drug prices for 
people with Medicare. The inflation rebate provision will be 
implemented beginning in 2023, using 2021 as the base year for 
determining price changes relative to inflation.
  Another major reform is a new $2,000 annual cap on Medicare Part D 
out-of-pocket spending starting in 2025. Currently, there is no limit 
on out-of-pocket spending for prescription drugs that seniors need.
  This bill ensures that devastating diagnoses, like cancer, will never 
again mean paying tens of thousands out-of-pocket for just one drug, 
which forces Medicare recipients into severe financial hardship.

[[Page H7652]]

  The bill expands the low-income subsidy program in Medicare Part D. 
Currently, it is fully available to those earning less than 135 percent 
of the federal poverty level, and partially available to those earning 
less than 150 percent of that level. The bill eliminates the partial 
subsidy, giving those earning up to 150% of the poverty level the full 
low-income subsidy in Medicare Part D.
  The bill initiates a major reform to help Medicare patients who need 
insulin and have been forced to pay exorbitant costs for their life-
sustaining supply.
  The Inflation Reduction Act caps out-of-pocket costs at $35 per month 
for insulin co-pays under Medicare programs. Cost-sharing for Part D 
plans will be capped at $35 for approved insulin products starting in 
2023. After 2025, the price will be the lesser of $35, 25 percent of 
the maximum fair price, or 25 percent of the negotiated price. From 
January to March 2023, there will be temporary subsidies for any cost 
sharing over $35 per month.
  While I am delighted that H.R. 5376 imposes a $35 per month cap on 
the price of insulin for people covered by Medicare, this cap should 
have extended to Americans with private insurance.
  I was very upset that Senate Republicans rejected that policy, as it 
is immoral to side with drug companies that force people to choose 
between life-sustaining insulin and other daily needs. Some Americans 
have died because they couldn't afford their insulin, which is subject 
to unjustifiable pricing practices.
  This bill should have ensured that Americans with private health 
insurance would benefit from a $35 per month cap on their insulin 
costs, and I will continue the fight for this reform.
  The Inflation Reduction Act lowers health insurance premiums for 
nearly 13 million low- and middle-income Americans whose coverage is 
from the Affordable Care Act. The bill allocates $64 billion to extend 
tax credits for three years, through 2025.
  Recipients saved on average $800 in 2021. Monthly premiums were 
estimated to decrease by $50 per person on average in 2022, and 80 
percent of ACA enrollees with the tax credits were able to find a plan 
that amounted to $10 or less per month.
  This is extremely important because extension of these credits 
subsidizing the cost of health insurance will prevent 3 million people 
from becoming uninsured due to steep premium hikes, protecting them 
from financial hardship, and saving the health care system from the 
perilous costs of uncompensated care.
  I was dismayed that Senator Warnock's amendment extending Medicaid 
expansion to 2.2 million people living in poverty in 12 states was not 
adopted by the Senate. Impoverished Americans with no access to 
affordable health care would have been able to see a doctor when they 
are sick, pregnant, or have other health needs. We must still close the 
Medicaid coverage gap for Americans who have a need for, and the right 
to, health care. Although it is not in this bill, I will continue to 
fight for this.
  The bill makes historic investments to combat climate change by 
putting the United States on a path to reduce emissions by 40% by 2030, 
investing $369 billion in clean energy and energy efficiency to lower 
household energy costs, and ensuring that lower-income households can 
benefit from these programs.
  The bill's clean energy and emission reduction programs attack the 
climate crisis at its source--electric utilities, cars, trucks, and 
methane emission producers--while ensuring that rural and disadvantaged 
communities share the benefits.
  The IRA provides direct consumer incentives to relieve the high costs 
of energy and decrease utility bills by encouraging purchases of energy 
efficient and clean-energy goods, with a significant portion of the 
funding going to lower-income households and disadvantaged communities.
  The bill includes $9 billion in consumer home energy rebate programs, 
focused on low-income consumers, to electrify home appliances and for 
energy efficient retrofits.
  The IRA provides 10 years of consumer tax credits to make homes 
energy efficient, using clean energy and making heat pumps, rooftop 
solar, community solar projects, electric HVAC, and efficient water 
heaters more affordable.
  The bill includes a $4,000 consumer tax credit for lower- and middle-
income individuals to buy used clean-energy vehicles, and up to a 
$7,500 tax credit to buy new clean-energy vehicles. This will bring 
electric cars--and the fuel costs they save--within the reach of 
working families.
  Additionally, the bill establishes a $1 billion grant program to make 
affordable housing more energy efficient.
  The investments in this bill will reduce emissions in every sector of 
the economy, substantially reducing emissions from electricity 
generation, transportation, industrial manufacturing, buildings, and 
agriculture.
  Tax credits are provided for clean sources of electricity and energy 
storage, and roughly $30 billion in targeted grant and loan programs 
for states and electric utilities to accelerate the transition to clean 
electricity.
  The legislation includes tax credits and grants for clean fuels and 
clean commercial vehicles to reduce emissions from all parts of the 
transportation sector.
  The bill provides grants and tax credits to reduce emissions from 
industrial manufacturing processes, including almost $6 billion for a 
new Advanced Industrial Facilities Deployment Program to reduce 
emissions from the largest industrial emitters like chemical, steel and 
cement plants.
  To spur innovation, $27 billion is provided for a clean energy 
technology accelerator to aid deployment of technologies that reduce 
emissions, especially in disadvantaged communities.
  The IRA has $9 billion for Federal procurement of American-made clean 
products, including $3 billion for zero-emission Postal Service 
vehicles, to create a stable market for them.
  The Inflation Reduction Act includes over $60 billion for 
environmental justice priorities to drive investments into 
disadvantaged communities.
  The bill has $3 billion for Environmental and Climate Justice Block 
Grants that will invest in community-led projects in disadvantaged 
communities and community capacity building centers to address 
disproportionate environmental and public health harms related to 
pollution and climate change.
  The IRA creates Neighborhood Access and Equity Grants with $3 billion 
to aid neighborhood equity, safety, and affordable transportation 
access. This landmark program addresses a long legacy of ignoring 
environmental justice concerns in project decision-making. The grants 
aim to reconnect communities divided by infrastructure barriers, 
mitigate negative impacts of transit facilities or construction 
projects on disadvantaged or underserved communities, and support 
equitable transportation planning and community engagement activities.
  The bill provides another $3 billion for Grants to Reduce Air 
Pollution at Ports to support the purchase and installation of zero-
emission equipment and technology at ports.
  The IRA also provides $1 billion for clean heavy-duty vehicles, such 
as school and transit buses and garbage trucks.
  There is $60 million for Diesel Emissions Reduction Act grants to 
address diesel emissions from goods movement facilities like airports 
and railyards, and from vehicles using those facilities.
  The IRA has $236 million for Air Pollution Monitoring that will 
particularly benefit disadvantaged communities exposed to areas with 
persistent air pollution.
  The bill includes $50 million to address Air Pollution at Schools by 
monitoring and reducing air pollution at public schools in low-income 
and disadvantaged communities.
  The bill provides $87 million for the Low Emissions Electricity 
Program to support low-income and disadvantaged communities, and offer 
technical assistance to industry, as well as state and local 
governments, as they work to reduce greenhouse gas emissions.
  Environmental justice is also central to initiatives that aim to 
decarbonize the economy, such as the technology accelerator and 
consumer home energy rebate programs, that focus on disadvantaged and 
low-income communities. Additionally, many of the clean energy tax 
credits include either a bonus or set-aside structure to drive 
investments and economic development in disadvantaged communities.
  This bill funds energy reliability, cleaner energy, and historic 
investments in American clean energy manufacturing.
  It includes over $60 billion for clean energy manufacturing in the 
U.S. across the full supply chain of clean energy and transportation 
technologies. These manufacturing incentives will help alleviate 
inflation and reduce the risk of future price shocks by bringing down 
the cost of clean energy and clean vehicles and relieving supply chain 
bottlenecks.
  The IRA invests roughly $30 billion for production tax credits to 
accelerate U.S. manufacturing of solar panels, wind turbines, 
batteries, and critical minerals processing.
  The bill has a $10 billion investment tax credit to build clean 
technology

[[Page H7653]]

manufacturing facilities, like facilities that make electric vehicles, 
wind turbines and solar panels.
  The bill also funds $500 million in the Defense Production Act for 
heat pumps and critical minerals processing.
  The bill has $2 billion in grants to retool auto manufacturing 
facilities to manufacture clean vehicles, ensuring that auto 
manufacturing jobs stay in the communities that rely on them.
  The IRA provides up to $20 billion in loans to build new clean 
vehicle manufacturing facilities across the country.
  To spur the next generation of energy technologies, the bill provides 
$2 billion for National Labs to accelerate breakthrough energy 
research.
  To afford these investments and reduce the deficit, the Inflation 
Reduction Act requires the wealthiest people and corporations to pay 
their fair share of taxes, without raising taxes on anyone making less 
than $400,000 each year. In fact, the non-partisan Joint Committee on 
Taxation reported that, in addition to not increasing taxes on any 
family making $400,000 or less, taxes on those families would actually 
be reduced by the IRA.
  This would correct the longstanding injustice of hardworking American 
families paying their taxes on time while wealthy millionaires and 
billionaires avoid paying the taxes they owe to the federal government.
  By creating a more equitable tax system, this bill will ease the 
pressure of inflation and allow more Americans to participate 
productively in the economy. Americans overwhelmingly agree that 
corporations have paid too little for too long. Only in Washington 
would Republicans fight against cutting costs for low- and middle-
income workers and their families in defense of wealthy corporations.
  To fairly and appropriately raise revenues, the bill includes major 
reforms, each of which are sound tax policies.
  The Inflation Reduction Act imposes a corporate alternative minimum 
tax on corporations that earn more than $1 billion in annual profit, 
but do not pay at least a 15 percent tax rate. This would apply to 
about 150 corporations that average nearly $9 billion in profit, but 
which paid effective tax rates of just 1.1 percent. The minimum tax 
will make sure they pay their fair share, and will raise approximately 
$222 billion.
  The bill will levy a 1 percent fee on stock buybacks by publicly-
traded corporations to level the playing field. This reform to the tax 
code, which raises $74 billion, would put an end to favoring buybacks 
for rich shareholders and executives over investments in workers and 
innovation.
  The legislation will help prevent the wealthiest Americans from 
sheltering their nonbusiness income and avoiding taxes. By extending 
the limitation on excess business losses for two years, the bill would 
raise an additional $52 billion.
  This bill also gives the IRS resources to rebuild its antiquated 
systems to make the wealthy pay their taxes. By investing $80 billion 
over ten years for tax enforcement and compliance, the Congressional 
Budget Office estimates the IRS will collect $203 billion. Nearly 75 
percent of Americans believe the IRS should conduct more tax audits of 
large corporations and millionaires. Recently, the IRS Commissioner 
emphasized that families making under $400,000 per year will not see 
increased audits.
  I was upset that the Senate did not close the carried interest 
loophole, which lets investment fund managers pay lower taxes on their 
earnings than wage earners pay. Billionaires scored a win worth 
billions as others struggle to make ends meet. Yet, I am pleased that 
the bill levels the playing field with other taxes.
  The Inflation Reduction Act is excellent legislation that will be a 
great leap forward for the American people, including for my 
constituents in the 18th Congressional District of Texas.
  Mr. SMITH of Missouri. Mr. Speaker, I want to point out that by 
doubling the size of the IRS, working people in America, 85,000 more 
families in the State of Texas, will face additional audits--these are 
families who make less than $200,000--because of doubling of the IRS.
  Mr. Speaker, I yield 1 minute to the gentleman from Texas (Mr. 
Burgess).
  Mr. BURGESS. Mr. Speaker, I thank the gentleman from Missouri for 
yielding.
  Mr. Speaker, we are hearing that this bill is a tax cut. But that 
only applies if you sign up for ObamaCare and participate in all the 
green tax credits. But if you don't, then this bill is a tax increase 
of over $10.5 billion for those making under $200,000 a year.
  Despite what you say, there is $80 billion in this bill for 87,000 
new IRS agents, and this will disproportionately increase audits on 
low- and middle-income earners at a time when even the best CPA firms 
cannot find qualified employees.
  Now, Wednesday in the Rules Committee, I tried to get an amendment by 
Mr. Davidson of Ohio made in order that would require that all of these 
new hires at least be CPAs. This was rejected by every Democrat in the 
Rules Committee.
  Mr. Speaker, they are coming after you. They are coming after you 
with poorly trained technicians, and it is just not right.
  Mr. YARMUTH. Mr. Speaker, I yield 1 minute to the gentlewoman from 
Florida (Ms. Wasserman Schultz), who is a distinguished member of the 
Appropriations Committee.
  Ms. WASSERMAN SCHULTZ. Mr. Speaker, I thank the gentleman for 
yielding.
  Mr. Speaker, I proudly rise to support legislation that delivers 
relief to every kitchen table across the country, cuts healthcare and 
drug costs, and creates millions of good-paying jobs to save our planet 
for future generations.
  In my home State of Florida, the Inflation Reduction Act hands 
security and peace of mind to millions of seniors in my State. It caps 
out-of-pocket prescription costs and monthly insulin costs for Medicare 
recipients, and finally allows Medicare to negotiate prescription drug 
prices.
  Millions of Floridians will be healthier and more financially secure 
by lowering premiums for 13 million Americans with expanded financial 
help for the Affordable Care Act healthcare policies. It will slash 
energy costs and work to stop our warming planet from stealing their 
grandchildren's future.
  This is our biggest shot ever to tackle climate change by speeding up 
clean energy transitions and cutting climate pollution 40 percent by 
2030.
  The Inflation Reduction Act does all this by making corporations pay 
their fair share, reducing the deficit, and ensuring no one who makes 
less than $400,000 will pay one penny more.
  This is game-changing relief for our seniors, our climate, and anyone 
demanding tax fairness.
  Mr. Speaker, I urge all of my colleagues to pass this lifesaving 
legislation.
  Mr. SMITH of Missouri. Mr. Speaker, I yield 1 minute to the gentleman 
from Pennsylvania (Mr. Smucker), who is a great leader on the Budget 
Committee.
  Mr. SMUCKER. Mr. Speaker, what a time to raise taxes and to spend 
nearly $1 trillion more. The economy is in a recession, food inflation 
is up 12.9 percent over the past year, gas is up 49 percent, and 
shelter costs rose by 5.7 percent.
  What will families get instead of relief?
  They will get $10.6 billion in tax increases, and 50 percent more may 
get audited by the IRS.
  Now, the chairman on the other side has disputed these 87,000 new 
agents. I would ask him to read page 37 of the bill which provides for 
$45 billion in new funding to the IRS, specifically for enforcement 
activities, and ask if he will dispute that as well.
  Where does he think $45 billion is going to go?
  In fact, we all know the IRS needs a lot of help to provide 
constituent services. Fourteen times more dollars are going for 
enforcement than to helping them do their job.
  The SPEAKER pro tempore. The time of the gentleman has expired.
  Mr. SMITH of Missouri. Mr. Speaker, I yield the gentleman from 
Pennsylvania an additional 15 seconds.
  Mr. SMUCKER. Our Democrat colleagues are also falsely insisting this 
bill will not raise taxes on small businesses or households with 
incomes below $400,000. Yet, during Rules Committee debate on the bill, 
a Ways and Means Democrat admitted that households making less than 
$400,000 per year will see a tax increase in this bill. He was citing 
the nonpartisan analysis from JCT.

[[Page H7654]]

  Don't be fooled. This bill is not a plan to address inflation.
  Mr. YARMUTH. Mr. Speaker, I yield myself such time as I may consume.
  I just want to clarify one thing. It seems to me that Republicans 
just don't want people to pay taxes even if they are owed. We know 
there are hundreds of billions of dollars of owed-but-not-paid taxes in 
this country every year. This is an attempt to try and recover some of 
that money that is owed and is not being paid by taxpayers who are, in 
many cases, cheating.
  To be clear, IRS has made no decisions or no announcements regarding 
the potential hiring plans under this bill. As I said before, the 
commissioner of the IRS has said that they are not going to increase 
audits of people making under $400,000. A lot of this money is designed 
to go to help service the legitimate and lawful taxpayers of this 
country by giving them better service, making the IRS more responsive, 
and to upgrading equipment which is now 50 or 60 years old in many 
cases.
  So they can continue with this claim that we are going to go after 
taxpayers with armed IRS agents, and I know that Republicans would like 
to arm every tax agent as they want to arm everybody else in this 
country, but that is nonsense.
  Mr. Speaker, I yield 1 minute to the gentleman from California (Mr. 
Khanna), who is a distinguished member of the Armed Services Committee.
  Mr. KHANNA. Mr. Speaker, I thank the chairman for his leadership in 
passing the most historic climate legislation in the history of this 
Nation and in the history of the world.
  It is appropriate that it would be named after Chairman Yarmuth after 
his distinguished service in this Congress.
  But I also thank all the young people out there and the environmental 
activists who for so long had no hope that this body would do anything. 
They marched, they protested, and they organized. They deserve credit 
for the $369 billion that will build solar, wind, and that will build 
electric vehicles.
  I understand it is only a down payment on what we need for climate. I 
understand there is more work to be done, so we eliminate fossil fuel 
subsidies, so we have more of a commitment to environmental justice, 
and so that we don't have mandates on oil leasing. But I am so proud of 
the young folks for recognizing that getting something done is better 
than getting nothing done. This is the first victory in many victories 
to come, and they deserve credit for our passing this bill today.
  Mr. SMITH of Missouri. Mr. Speaker, I want to point out to the 
chairman of the Budget Committee that--maybe his staff has not 
presented it to him--the Congressional Budget Office this morning--this 
morning--confirmed that people making less than $400,000 a year will 
face more audits.
  You keep saying: Let the facts be real, no scare tactics.
  The facts from the Congressional Budget Office are that, in fact, 
your legislation is increasing more audits on people who make less than 
$400,000 a year. I put it in the Record. You can read it there.
  Mr. Speaker, I yield 1 minute to the great gentleman from Georgia 
(Mr. Carter).
  Mr. CARTER of Georgia. Mr. Speaker, I rise today in opposition to the 
inflation expansion act which is threatening the same industries that 
it purports to help.
  Washington Democrats who claim to champion electric vehicles are 
pushing a bill--you are pushing this bill that will threaten an over $5 
billion investment Hyundai is making in the First Congressional 
District of Georgia.
  Now, Mr. Speaker, this is serious. This is a $5 billion investment 
that they are threatening. This will be the automaker's first dedicated 
electric vehicle manufacturing plant in the United States and will 
create over 8,000 jobs upon completion.
  This bill's new EV tax credit discriminates against and excludes 
South Korea, a key strategic trading partner and longtime ally of the 
United States and may actually violate the KORUS Free Trade Agreement.
  This burdensome regulation could prevent billions of dollars in 
investment, thousands of jobs, and affordable electric vehicles from 
coming to market in the United States.
  The answer is clear: We need innovation not regulation. The private 
sector is leading the charge. You are messing around with a $5 billion 
investment and 8,000 jobs, Mr. Speaker. I hope that you will let my 
colleagues know, Mr. Speaker.
  Mr. YARMUTH. Mr. Speaker, I yield 1 minute to the gentleman from 
Texas (Mr. Green), who is the distinguished member of the Financial 
Services Committee.
  Mr. GREEN of Texas. Mr. Speaker, to my friends across the aisle: 
Where were you when your twice impeached President was putting billions 
of dollars in the pockets of the wealthy?
  You complain about drug prices being reduced for seniors, complain 
about them having out-of-pocket costs capped at $2,000?
  I refuse to allow a bill that is good to be defeated by a perfect 
bill that we won't get. I will support this bill, and I ask my 
colleagues to do so as well. It is time to take care of our seniors.
  The SPEAKER pro tempore. Members are again reminded to direct their 
remarks to the Chair.
  Mr. SMITH of Missouri. Mr. Speaker, I yield 1 minute to the great 
gentleman from Mississippi (Mr. Guest).
  Mr. GUEST. Mr. Speaker, I rise today in strong opposition to this 
destructive piece of legislation.
  Every day I hear from fellow Mississippians who struggle to buy gas 
and groceries because of inflation fueled by the left's reckless 
spending.
  Now, instead of acknowledging the impact their out-of-control 
spending has had on Americans, my colleagues across the aisle are 
trying to pass legislation that will increase taxes on Americans, spend 
hundreds of billions of taxpayer dollars on far-left priorities, and 
pass legislation that will add an army of IRS agents.
  It is time to acknowledge that the American people are suffering 
because of legislation exactly like this.
  The American people are tired of this economic crisis, and they have 
been clear: Do not raise taxes, do not add to this recession with more 
wasteful spending, do not weaponize the IRS, and do not vote for this 
legislation.
  This Congress must listen to the American people and vote against 
this bill.

                              {time}  1245

  Mr. YARMUTH. Mr. Speaker, I yield 1 minute to the gentleman from 
Wisconsin (Mr. Pocan), a distinguished member of the Appropriations 
Committee.
  Mr. POCAN. Mr. Speaker, global inflation caused by our reopening due 
to COVID-19 has caused increased prices in everything from gasoline to 
groceries to healthcare.
  Today, we put people over politics as we lessen the impact of global 
inflation on the American people via the Inflation Reduction Act.
  Among the many things it does, it addresses some of the drivers of 
higher energy costs while also investing in U.S.-based renewable energy 
that will make us more energy independent and less dirty.
  It finally allows us to negotiate lower prescription drug prices 
through volume purchasing via Medicare while capping out-of-pocket drug 
expenses for seniors to no more than $2,000 per year.
  We make these big investments by ensuring that corporations that have 
often gamed the system pay a minimal share of taxes and go after 
wealthy tax cheats who, all too often, have evaded their 
responsibilities.
  I will gladly vote for this bill today. It is time to stand up to Big 
Pharma and those energy companies making record profits while making 
our planet less safe, and it is important we make sure that 
corporations pay their fair share of taxes to reduce the burden on 
working families.
  Mr. SMITH of Missouri. Mr. Speaker, I yield 1 minute to the 
gentlewoman from Florida (Mrs. Cammack), my good friend.
  Mrs. CAMMACK. Mr. Speaker, I rise today in strong opposition to the 
inflation expansion act.
  It feels a little bit like Groundhog Day here on Capitol Hill because 
it wasn't but about a year ago that we found ourselves debating almost 
this very same legislation. It was a bad idea then; it is a bad idea 
now. Even Bernie Sanders isn't buying this bill and has said that it 
won't do much to reduce inflation.
  The only difference here really is the price tag from a year ago--
$745 billion in new spending. That is not cheap. Do you know what we 
could do with that?
  You could give every single working mom in America a check for 
$96,000.
  You could give hardworking American seniors, who are, many of them,

[[Page H7655]]

now retired and having to go back to work, and they are on fixed 
incomes, you could give them $14,000.
  You could give every homeless veteran in America a check for $5.6 
million with this bill.
  Instead, we are going to double the size of the IRS and target 
hardworking families who make $400,000 or less. We know it to be a 
fact. Stop denying it. The Senate Democrats refused and rejected the 
amendment that would have protected families making $400,000 or less.
  Reject this bill. Put Americans first. It is time to vote hell no.
  Mr. YARMUTH. Mr. Speaker, I yield 1 minute to the gentleman from 
Texas (Mr. Allred), a distinguished member of the Transportation and 
Infrastructure Committee.
  Mr. ALLRED. Mr. Speaker, I rise today in support of the Inflation 
Reduction Act.
  For too long, Congress has refused to act while seniors like my mom, 
who is a breast cancer survivor, endured price gouging on their 
medicines while on Medicare.
  Today, Democrats in Congress are changing that. We are going to stand 
up to Big Pharma and let Medicare negotiate lower prices and cap out-
of-pocket costs at $2,000, as well as capping the cost of insulin.
  For too long, Congress has refused to address the climate crisis and 
invest in clean energy. Today, Democrats in Congress are changing that. 
Through the largest-ever investment to fight climate change, this bill 
will cut emissions by 40 percent by 2030. It unleashes American and, 
yes, Texas-made clean energy while creating 9 million jobs.
  Thanks to President Biden, and Democrats in Congress, this historic 
legislation will impact our Nation for generations to come, all while 
reducing the deficit without raising taxes on folks making less than 
$400,000 a year.
  It is a big deal, and I cannot wait to vote ``yes'' for it. I 
encourage my colleagues to do the same.
  Mr. SMITH of Missouri. Mr. Speaker, I yield 1\1/2\ minutes to the 
gentleman from Louisiana (Mr. Graves), my good friend.
  Mr. GRAVES of Louisiana. Mr. Speaker, I thank the gentleman for 
yielding.
  Mr. Speaker, let's be clear. Everybody in this Chamber supports 
lowering prescription drug costs, lowering these outrageous costs that 
all of our constituents are paying across the country. We all support 
clean, affordable energy and access to those resources. We all support 
lowering inflation.
  The difference is, where the credibility gap exists, is that the very 
problems, the very crisis that our country is experiencing today, were 
actually caused by the Biden administration's policies.
  We went from, in my hometown, $1.80 a gallon for gasoline to, 
recently, I paid $4.20. We have seen a tripling of natural gas costs. 
Their own policies have caused this.
  Nearly a quarter of all Americans today can't even afford to pay 
their electricity bills. The Biden administration policies have caused 
record inflation, making Americans unable to even afford grocery costs.
  The Biden administration policies have resulted in higher emissions, 
not lower emissions, as compared to the previous administration. Biden 
administration policies resulted in this President going to countries 
like Saudi Arabia and asking them for energy while telling Americans 
that we can't produce.
  Mr. Speaker, I can't help but reminisce over Jack Abramoff, a 
disgraced lobbyist, convicted, who created problems and then charged 
clients to fix them. The difference between this bill and Jack Abramoff 
is that Jack Abramoff actually fixed problems for his clients.
  This bill is a disaster. There is a credibility gap. They have caused 
problems, and now we are being asked to trust them to fix them, and we 
simply can't. Oppose this legislation.
  Mr. YARMUTH. Mr. Speaker, I yield 1 minute to the gentleman from 
Louisiana (Mr. Carter), a distinguished member of the Transportation 
and Infrastructure Committee.
  Mr. CARTER of Louisiana. Mr. Speaker, far too many things in life 
just aren't fair. However, one thing should, frankly, always be fair, 
and that is taxes.
  What should always be fair is access to insulin, access to clean 
energy, and relief from the raging energy costs that we see across our 
country.
  This historic Inflation Reduction Act is fully paid for by requiring 
the biggest corporations and the ultrawealthy to pay their fair share. 
It does so without any new taxes on small businesses or those making 
under $400,000. I said ``$400,000.''
  We can achieve this goal by strengthening IRS enforcement against 
wealthy tax cheats and closing tax loopholes exploited by the 
wealthiest few, 150 massive corporations.
  In opposing these provisions, my Republican colleagues are, sadly, 
aligning themselves with megacorporations and the ultrawealthy and 
turning their backs on the American people.
  I am proud that, with this bill, Democrats are once again putting 
people over politics, fighting for the American people. I urge full 
support for this measure.
  Mr. SMITH of Missouri. Mr. Speaker, I include in the Record analysis 
from the nonpartisan Joint Committee on Taxation, which confirms that 
the bill increases taxes by $10.6 billion on individuals making under 
$200,000 in 2023 and increases taxes by $32.6 billion across all 
incomes.

    DISTRIBUTIONAL EFFECTS OF SELECTED PROVISIONS FROM SUBTITLE A AND SUBTITLE D OF TITLE I--COMMITTEE ON FINANCE OF AN AMENDMENT IN THE NATURE OF A
  SUBSTITUTE TO H.R. 5376, ``AN ACT TO PROVIDE FOR RECONCILIATION PURSUANT TO TITLE II OF S. CON. RES. 14,'' AS PASSED BY THE SENATE ON AUGUST 7, 2022
                                            EXCLUDES THE EFFECT OF SUBTITLE C--AFFORDABLE CARE ACT SUBSIDIES
                                                                  [Calendar Year 2023]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                   Change in Federal Taxes   Federal Taxes \3\ Under   Federal Taxes \3\ Under    Average Tax Rate \4\
                                                             \3\                   Present Law                Proposal            Present Law Proposal
               Income Category \2\               -------------------------------------------------------------------------------------------------------
                                                    Millions     Percent      Billions     Percent      Billions     Percent      Percent      Percent
--------------------------------------------------------------------------------------------------------------------------------------------------------
Less than $10,000...............................          $88          2.3         $3.9          0.1         $4.0          0.1          7.3          7.5
$10,000 to $20,000..............................           83          \5\         -1.3          \6\         -1.3          \6\         -0.5         -0.5
$20,000 to $30,000..............................          155          0.7         21.4          0.6         21.6          0.6          4.3          4.3
$30,000 to $40,000..............................          259          0.5         48.3          1.3         48.6          1.3          7.8          7.9
$40,000 to $50,000..............................          351          0.5         70.1          1.8         70.5          1.8         10.4         10.5
$50,000 to $75,000..............................        1,222          0.5        244.7          6.4        245.9          6.4         13.0         13.1
$75,000 to $100,000.............................        1,577          0.6        268.0          7.0        269.6          7.0         15.8         15.9
$100,000 to $200,000............................        6,833          0.7        957.6         25.0        964.4         25.0         19.1         19.3
$200,000 to $500,000............................        8,741          0.9        953.3         24.9        962.1         24.9         24.1         24.3
$500,000 to $1,000,000..........................        3,590          1.0        352.0          9.2        355.5          9.2         28.5         28.8
$1,000,000 and over.............................        9,699          1.1        908.3         23.7        918.0         23.8         30.2         30.5
                                                 -------------------------------------------------------------------------------------------------------
    Total, All Taxpayers........................       32,598          0.9      3,826.3        100.0      3,858.9        100.0         20.3         20.4
--------------------------------------------------------------------------------------------------------------------------------------------------------
Source: Joint Committee on Taxation
Detail may not add to total due to rounding.
\1\ This table is a distributional analysis of the proposals in revenue table JCX-18-22, except the following: Subtitle A: Part 3; Subtitle B; Subtitle
  C; and Subtitle D: Part 3 items 1 and 2, Part 4 items 1 and 2. For an explanation of the distribution methodology used in this table, see JCX-15-12
  and JCX-14-13.
\2\ The income concept used to place tax returns into income categories is adjusted gross income (AGI) plus: [1] tax-exempt interest, [2] employer
  contributions for health plans and life insurance, [3] employer share of FICA tax, [4] workers' compensation, [5] nontaxable Social Security benefits,
  [6] insurance value of Medicare benefits, [7] alternative minimum tax preference items, [8] individual share of business taxes, and [9] excluded
  income of U.S. citizens living abroad. Categories are measured at 2021 levels.
\3\ Federal taxes are equal to individual income tax (including the outlay portion of refundable credits), employment tax (attributed to employees),
  excise taxes (attributed to consumers), and corporate income taxes. The estimates of Federal taxes are preliminary and subject to change. Individuals
  who are dependents of other taxpayers and taxpayers with negative income are excluded from the analysis. Does not include indirect effects.
\4\ The average tax rate is equal to Federal taxes described in footnote (3) divided by income described in footnote (2).
\5\ For returns in the $10,000 to $20,000 income category, Federal taxes would increase from -$1.336 billion to -$1.253 billion.
\6\ Less than 0.05%.


[[Page H7656]]


    DISTRIBUTIONAL EFFECTS OF SELECTED PROVISIONS FROM SUBTITLE A AND SUBTITLE D OF TITLE I--COMMITTEE ON FINANCE OF AN AMENDMENT IN THE NATURE OF A
  SUBSTITUTE TO H.R. 5376, ``AN ACT TO PROVIDE FOR RECONCILIATION PURSUANT TO TITLE II OF S. CON. RES. 14,'' AS PASSED BY THE SENATE ON AUGUST 7, 2022
                                            EXCLUDES THE EFFECT OF SUBTITLE C--AFFORDABLE CARE ACT SUBSIDIES
                                                                  [Calendar Year 2025]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                   Change in Federal Taxes   Federal Taxes \3\ Under   Federal Taxes \3\ Under    Average Tax Rate \4\
                                                             \3\                   Present Law                Proposal            Present Law Proposal
               Income Category \2\               -------------------------------------------------------------------------------------------------------
                                                    Millions     Percent      Billions     Percent      Billions     Percent      Percent      Percent
--------------------------------------------------------------------------------------------------------------------------------------------------------
Less than $10,000...............................          $51          1.4         $3.6          0.1         $3.7          0.1          6.5          6.6
$10,000 to $20,000..............................           41        (\5\)         -2.0        (\6\)         -2.0        (\6\)         -0.8         -0.7
$20,000 to $30,000..............................           86          0.4         23.7          0.6         23.7          0.6          4.5          4.5
$30,000 to $40,000..............................          120          0.2         51.5          1.3         51.6          1.3          7.7          7.8
$40,000 to $50,000..............................          146          0.2         74.9          1.8         75.1          1.8         10.4         10.4
$50,000 to $75,000..............................          457          0.2        266.7          6.5        267.1          6.5         13.0         13.1
$75,000 to $100,000.............................          523          0.2        294.6          7.2        295.1          7.2         15.8         15.8
$100,000 to $200,000............................        2,030          0.2      1,046.2         25.6      1,048.3         25.6         19.1         19.2
$200,000 to $500,000............................        2,227          0.2      1,031.9         25.2      1,034.2         25.2         24.1         24.2
$500,000 to $1,000,000..........................          774          0.2        379.4          9.3        380.2          9.3         28.7         28.7
$1,000,000 and over.............................        1,617          0.2        924.0         22.6        925.6         22.6         30.5         30.5
                                                 -------------------------------------------------------------------------------------------------------
    Total, All Taxpayers........................        8,073          0.2      4,094.5        100.0      4,102.6        100.0         20.2         20.3
--------------------------------------------------------------------------------------------------------------------------------------------------------
Source: Joint Committee on Taxation
Detail may not add to total due to rounding.
\1\ This table is a distributional analysis of the proposals in revenue table JCX-18-22, except the following: Subtitle A: Part 3; Subtitle B; Subtitle
  C; and Subtitle D Part 3 items 1 and 2, Part 4 items 1 and 2. For an explanation of the distribution methodology used in this table, see JCX-15-12 and
  JCX-14-13.
\2\ The income concept used to place tax returns into income categories is adjusted gross income (AGI) plus [1] tax-exempt interest, [2] employer
  contributions for health plans and life insurance, [3] employer share of FICA tax, [4] workers' compensation, [5] nontaxable Social Security benefits,
  [6] insurance value of Medicare benefits, [7] alternative minimum tax preference items, [8] individual share of business taxes, and [9] excluded
  income of U.S. citizens living abroad. Categories are measured at 2021 levels.
\3\ Federal taxes are equal to individual income tax (including the outlay portion of refundable credits), employment tax (attributed to employees),
  excise taxes (attributed to consumers), and corporate income taxes. The estimates of Federal taxes are preliminary and subject to change. Individuals
  who are dependents of other taxpayers and taxpayers with negative income are excluded from the analysis. Does not include indirect effects.
\4\ The average tax rate is equal to Federal taxes described in footnote (3) divided by income described in footnote (2).
\5\ For returns in the $10,000 to $20,000 income category, Federal taxes would decrease from -$1.996 billion to -$1.955 billion.
\6\ Less than 0.05%.


    DISTRIBUTIONAL EFFECTS OF SELECTED PROVISIONS FROM SUBTITLE A AND SUBTITLE D OF TITLE I--COMMITTEE ON FINANCE OF AN AMENDMENT IN THE NATURE OF A
  SUBSTITUTE TO H.R. 5376, ``AN ACT TO PROVIDE FOR RECONCILIATION PURSUANT TO TITLE II OF S. CON. RES. 14,'' AS PASSED BY THE SENATE ON AUGUST 7, 2022
                                            EXCLUDES THE EFFECT OF SUBTITLE C--AFFORDABLE CARE ACT SUBSIDIES
                                                                  [Calendar Year 2027]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                   Change in Federal Taxes   Federal Taxes \3\ Under   Federal Taxes \3\ Under    Average Tax Rate \4\
                                                             \3\                   Present Law                Proposal            Present Law Proposal
               Income Category \2\               -------------------------------------------------------------------------------------------------------
                                                    Millions     Percent      Millions     Percent      Millions     Percent      Percent      Percent
--------------------------------------------------------------------------------------------------------------------------------------------------------
Less than $10,000...............................          $42          1.2         $3.5          0.1         $3.5          0.1          5.8          5.9
$10,000 to $20,000..............................           30        (\5\)         -0.2        (\6\)         -0.2        (\6\)         -0.1         -0.1
$20,000 to $30,000..............................           68          0.2         31.1          0.7         31.2          0.7          5.5          5.5
$30,000 to $40,000..............................           70          0.1         62.4          1.3         62.5          1.3          8.7          8.7
$40,000 to $50,000..............................           63          0.1         86.3          1.8         86.3          1.8         11.2         11.3
$50,000 to $75,000..............................          195          0.1        311.8          6.7        312.0          6.7         14.0         14.1
$75,000 to $100,000.............................          190          0.1        344.3          7.4        344.5          7.4         16.8         16.8
$100,000 to $200,000............................          713          0.1      1,204.8         25.8      1,205.5         25.7         20.2         20.2
$200,000 to $500,000............................          674          0.1      1,193.1         25.6      1,193.8         25.5         25.6         25.6
$500,000 to $1,000,000..........................          580          0.1        442.2          9.5        442.8          9.5         30.7         30.7
$1,000,000 and over.............................       17,603          1.8        985.4         21.1      1,003.0         21.4         32.0         32.6
                                                 -------------------------------------------------------------------------------------------------------
    Total, All Taxpayers........................       20,228          0.4      4,664.7        100.0      4,684.9        100.0         21.4         21.5
--------------------------------------------------------------------------------------------------------------------------------------------------------
Source: Joint Committee on Taxation
Detail may not add to total due to rounding.
\1\ This table is a distributional analysis of the proposals in revenue table JCX-18-22, except the following: Subtitle A: Part 3; Subtitle B; Subtitle
  C; and Subtitle D: Part 3 items 1 and 2, Part 4 items 1 and 2. For an explanation of the distribution methodology used in this table, see JCX-15-12
  and JCX-14-13.
\2\ The income concept used to place tax returns into income categories is adjusted gross income (AGI) plus: [1] tax-exempt interest, [2] employer
  contributions for health plans and life insurance, [3] employer share of FICA tax, [4] workers' compensation, [5] nontaxable Social Security benefits,
  [6] insurance value of Medicare benefits, [7] alternative minimum tax preference items, [8] individual share of business taxes, and [9] excluded
  income of U S citizens living abroad. Categories are measured at 2021 levels.
\3\ Federal taxes are equal to individual income tax (including the outlay portion of refundable credits), employment tax (attributed to employees),
  excise taxes (attributed to consumers), and corporate income taxes. The estimates of Federal taxes are preliminary and subject to change. Individuals
  who are dependents of other taxpayers and taxpayers with negative income are excluded from the analysis. Does not include indirect effects.
\4\ The average tax rate is equal to Federal taxes described in footnote (3) divided by income described in footnote (2).
\5\ For returns in the $10,000 to $20,000 income category, Federal taxes would increase from -$0.211 billion to -$0.181 billion.
\6\ Less than 0.05%.


    DISTRIBUTIONAL EFFECTS OF SELECTED PROVISIONS FROM SUBTITLE A AND SUBTITLE D OF TITLE I--COMMITTEE ON FINANCE OF AN AMENDMENT IN THE NATURE OF A
   SUBSTITUTE TO H.R 5376, ``AN ACT TO PROVIDE FOR RECONCILIATION PURSUANT TO TITLE II OF S. CON. RES. 14,'' AS PASSED BY THE SENATE ON AUGUST 7, 2022
                                            EXCLUDES THE EFFECT OF SUBTITLE C--AFFORDABLE CARE ACT SUBSIDIES
                                                                  [Calendar Year 2029]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                   Change in Federal Taxes   Federal Taxes \3\ Under   Federal Taxes \3\ Under    Average Tax Rate \3\
                                                             \3\                   Present Law                Proposal            Present Law Proposal
               Income Category \2\               -------------------------------------------------------------------------------------------------------
                                                    Millions     Percent      Billions     Percent      Billions     Percent      Percent      Percent
--------------------------------------------------------------------------------------------------------------------------------------------------------
Less than $10,000...............................          $29          1.4         $2.1        (\5\)         $2.1        (\5\)          2.7          2.7
$10,000 to $20,000..............................          -20         -1.7          1.2        (\5\)          1.1        (\5\)          0.3          0.3
$20,000 to $30,000..............................           17        (\5\)         44.3          0.9         44.4          0.9          6.2          6.2
$30,000 to $40,000..............................           25        (\5\)         76.6          1.5         76.6          1.5          9.1          9.2
$40,000 to $50,000..............................           28        (\5\)        111.4          2.2        111.5          2.2         12.0         12.0
$50,000 to $75,000..............................           67        (\5\)        376.9          7.5        376.9          7.5         14.5         14.5
$75,000 to $100,000.............................           39        (\5\)        399.7          8.0        399.7          8.0         17.2         17.2
$100,000 to $200,000............................           -7        (\5\)      1,346.1         26.9      1,346.1         26.9         20.5         20.5
$200,000 to $500,000............................         -371        (\5\)      1,225.0         24.5      1,224.6         24.5         26.2         26.2
$500,000 to $1,000,000..........................         -435         -0.1        441.7          8.8        441.2          8.8         30.7         30.7
$1,000,000 and over.............................       -1,908         -0.2        980.6         19.6        978.7         19.6         31.8         31.8
                                                 -------------------------------------------------------------------------------------------------------
    Total, All Taxpayers........................       -2,536         -0.1      5,005.5        100.0      5,003.0        100.0         21.2         21.2
--------------------------------------------------------------------------------------------------------------------------------------------------------
Source: Joint Committee on Taxation.
Detail may not add to total due to rounding.
\1\ This table is a distributional analysis of the proposals in revenue table JCX-18-22, except the following: Subtitle A: Part 3; Subtitle B; Subtitle
  C; and Subtitle D Part 3 items 1 and 2, Part 4 items 1 and 2. For an explanation of the distribution methodology used in this table, see JCX-15-12 and
  JCX-14-13.
\2\ The income concept used to place tax returns into income categories is adjusted gross income (AGI) plus [1] tax-exempt interest, [2] employer
  contributions for health plans and life insurance, [3] employer share of FICA tax, [4] workers' compensation, [5] nontaxable Social Security benefits,
  [6] insurance value of Medicare benefits, [7] alternative minimum tax preference items, [8] individual share of business taxes, and [9] excluded
  income of U.S. citizens living abroad. Categories are measured at 2021 levels.
\3\ Federal taxes are equal to individual income tax (including the outlay portion of refundable credits), employment tax (attributed to employees),
  excise taxes (attributed to consumers), and corporate income taxes. The estimates of Federal taxes are preliminary and subject to change. Individuals
  who are dependents of other taxpayers and taxpayers with negative income are excluded from the analysis. Does not include indirect effects.
\4\ The average tax rate is equal to Federal taxes described in footnote (3) divided by income described in footnote (2).
\5\ Less than 0.05%.


[[Page H7657]]


    DISTRIBUTIONAL EFFECTS OF SELECTED PROVISIONS FROM SUBTITLE A AND SUBTITLE D OF TITLE I--COMMITTEE ON FINANCE OF AN AMENDMENT IN THE NATURE OF A
   SUBSTITUTE TO H R. 5376, ``AN ACT TO PROVIDE FOR RECONCILIATION PURSUANT TO TITLE II OF S. CON RES 14,'' AS PASSED BY THE SENATE ON AUGUST 7, 2022
                                            EXCLUDES THE EFFECT OF SUBTITLE C--AFFORDABLE CARE ACT SUBSIDIES
                                                                  [Calendar Year 2031]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                   Change in Federal Taxes   Federal Taxes \3\ Under   Federal Taxes \3\ Under    Average Tax Rate \4\
                                                             \3\                   Present Law                Proposal            Present Law Proposal
               Income Category \2\               -------------------------------------------------------------------------------------------------------
                                                    Millions     Percent      Billions     Percent      Billions     Percent      Percent      Percent
--------------------------------------------------------------------------------------------------------------------------------------------------------
Less than $10,000...............................          $23          1.0         $2.4        (\6\)         $2.4        (\6\)          3.2          3.2
$10,000 to $20,000..............................          -35        (\5\)         -1.3        (\6\)         -1.3        (\6\)         -0.4         -0.4
$20,000 to $30,000..............................            7        (\6\)         38.3          0.7         38.3          0.7          5.7          5.7
$30,000 to $40,000..............................           16        (\6\)         72.0          1.3         72.1          1.3          8.6          8.6
$40,000 to $50,000..............................           20        (\6\)         99.1          1.8         99.2          1.8         11.1         11.1
$50,000 to $75,000..............................           34        (\6\)        366.2          6.8        366.2          6.8         14.0         14.0
$75,000 to $100,000.............................           -7        (\6\)        413.7          7.7        413.7          7.7         16.7         16.7
$100,000 to $200,000............................         -233        (\6\)      1,409.8         26.2      1,409.6         26.3         19.9         19.9
$200,000 to $500,000............................         -723         -0.1      1,399.2         26.0      1,398.4         26.1         25.5         25.5
$500,000 to $1,000,000..........................         -644         -0.1        514.1          9.6        513.5          9.6         30.5         30.5
$1,000,000 and over.............................       -2,493         -0.2      1,058.4         19.7      1,055.9         19.7         31.7         31.6
                                                 -------------------------------------------------------------------------------------------------------
    Total, All Taxpayers........................       -4,036         -0.1      5,371.9        100.0      5,367.9        100.0         21.1         21.1
--------------------------------------------------------------------------------------------------------------------------------------------------------
Source: Joint Committee on Taxation.
Detail may not add to total due to rounding.
\1\ This table is a distributional analysis of the proposals in revenue table JCX 0918 0922, except the following: Subtitle A: Part 3, Part 4 and Part
  5; Subtitle B; and Subtitle D: Part 3 items 1 and 2, Part 4 items 1 and 2. For an explanation of the distribution methodology used in this table, see
  JCX 0915 0912 and JCX 0914 0913.
\2\ The income concept used to place tax returns into income categories is adjusted gross income (AGI) plus [1] tax-exempt interest, [2] employer
  contributions for health plans and life insurance, [3] employer share of FICA tax, [4] workers' compensation, [5] nontaxable Social Security benefits,
  [6] insurance value of Medicare benefits, [7] alternative minimum tax preference items, [8] individual share of business taxes, and [9] excluded
  income of U S citizens living abroad Categories are measured at 2021 levels.
\3\ Federal taxes are equal to individual income tax (including the outlay portion of refundable credits), employment tax (attributed to employees),
  excise taxes (attributed to consumers), and corporate income taxes The estimates of Federal taxes are preliminary and subject to change Individuals
  who are dependents of other taxpayers and taxpayers with negative income are excluded from the analysis. Does not include indirect effects.
\4\ The average tax rate is equal to Federal taxes described in footnote (3) divided by income described in footnote (2).
\5\ For returns in the $10,000 to $20,000 income category, Federal taxes would decrease from -$1.299 billion to -$1.334 billion.
\6\ Less than 0.05%.

   Provisions from Jcx-18-22 Included in Distribution Table #D-16-22


                     SUBTITLE A--DEFICIT REDUCTION

     Part 1--Corporate Tax Reform--Corporate alternative minimum 
         tax
     Part 2--Excise Tax on Repurchase of Corporate Stock


                      SUBTITLE D--ENERGY SECURITY

     Part 1--Clean Electricity and Reducing Carbon Emissions
       1. Extension and modification of credit for electricity 
     produced from certain renewable resources (sunset 12/31/24)
       2. Extension and modification of energy credit (sunset 12/
     31/24)
       3. Increase in energy credit for solar facilities placed in 
     service in connection with low-income communities
       4. Extension and modification of credit for carbon oxide 
     sequestration (sunset 12/31/24)
       5. Zero-emission nuclear power production credit
     Part 2--Clean Fuels
       1. Extension of incentives for biodiesel, renewable diesel 
     and alternative fuels (sunset 12/31/24)
       2. Extension of second generation biofuel incentives 
     (sunset 12/31/24)
       3. Sustainable aviation fuel credit (sunset 12/31/24)
       4. Credit for production of clean hydrogen (sunset 12/31/
     24)
     Part 3--Green Energy and Efficiency Incentives for 
         Individuals
       3. Energy efficient commercial buildings deduction
       4. Extension, increase, and modifications of new energy 
     efficient home credit (sunset 12/31/32)
     Part 4--Clean Vehicles
       3. Qualified commercial electric vehicles (sunset 12/31/32)
       4. Alternative fuel refueling property credit (sunset 12/
     31/32)
     Part 5--Investment in Clean Energy Manufacturing and Energy 
         Security
       1. Extension of the advanced energy project credit
       2. Advanced manufacturing production credit (sunset 12/31/
     32)
     Part 6--Reinstatement of Superfund
     Part 7--Incentives for Clean Electricity and Clean 
         Transportation
       1. Clean electricity production credit
       2. Clean electricity investment credit
       3. Cost recovery for qualified facilities, qualified 
     property, and energy storage technology
       4. Clean fuel production credit (sunset 12/31/27)
     Part 8--Credit Monetization and Appropriations--Elective 
         Payment for Energy Property and Electricity Produced from 
         Certain Renewable Resources, etc., and Transfer of 
         Credits
     Part 9--Other Provisions
       1. Permanent extension of tax rate to fund Black Lung 
     Disability Trust Fund
       2. Increase in research credit against payroll tax for 
     small businesses
       3. Limitation on excess business losses of noncorporate 
     taxpayers extended for two years
       \1 \The analysis does not include the effects of the policy 
     on employer sponsored health insurance premiums, the employer 
     mandate penalties, or small business health insurance tax 
     credits. Also the analysis does not include the effects of 
     spending under Subtitle C estimated by Congressional Budget 
     Office.
  Mr. SMITH of Missouri. Mr. Speaker, I yield 1 minute to the good 
gentleman from Pennsylvania (Mr. Meuser).
  Mr. MEUSER. Mr. Speaker, the American people are sick and tired of 
runaway government promises of how excessive spending, tax increases, 
and Green New Deal special interest investments are somehow going to 
make their lives better and reduce inflation.
  Yet, we are here today in this Chamber to raise taxes on the American 
people, hire 87,000 new IRS auditors forever more, Mr. Speaker, and 
pass over a half trillion dollars in new government spending, all in 
the name of the Inflation Reduction Act.
  Mr. Speaker, is this some sort of joke? Do we actually think that the 
American people believe that? Well, they don't.
  By the way, regarding the $400,000 less won't get taxed, if a pass-
through business makes $400K and the partners pay themselves $100,000 
each, they will fall under the audit initiative by the IRS.
  As well, the projections for IRS hiring do not count only taxing 
those over $400K, so the whole thing was made up to make it sound 
better than it is.
  Mr. Speaker, I urge a ``no'' vote.
  Mr. YARMUTH. Mr. Speaker, I yield 1\1/2\ minutes to the gentleman 
from Nevada (Mr. Horsford), a distinguished member of the Budget 
Committee.
  Mr. HORSFORD. Mr. Speaker, I will cast my vote today to lower the 
cost of prescription drugs, tackle the climate crisis, and make big 
corporations pay their fair share in taxes while putting people over 
politics.
  Mr. Speaker, my colleagues on the other side of the aisle love to 
rant about fiscal responsibility, but the facts are clear: Every time a 
Republican President and congressional majority collude for their 
corporate friends and the rich elite, our deficits soar. So, it is up 
to Democrats to clean up that mess.
  This Inflation Reduction Act is a historic downpayment on deficit 
reduction of approximately $300 billion to fight inflation.
  For years, Nevadans have seen their cost of living rise, while my 
Republican colleagues across the aisle have focused on giving away tax 
cuts for the wealthy. Well, today, we vote for seniors, in my district 
and across America, who want one thing from Congress right now, and 
that is to lower prescription drug prices.
  Today, we will cast our votes to pass the Inflation Reduction Act 
because it includes an important provision to cap out-of-pocket drug 
costs at $2,000 per senior and to cap insulin costs at $35 a month for 
seniors and individuals with disabilities.
  Finally, the Inflation Reduction Act includes a historic step to 
combat the climate crisis, including $4 billion to States like Nevada 
to combat the effects of the two-decades-long Western drought.
  Mr. Speaker, I urge this body to pass this legislation for the 
people, putting people over politics.

[[Page H7658]]

  

  Mr. SMITH of Missouri. Mr. Speaker, I would like to point out to the 
gentleman from Nevada that since Joe Biden has taken the oath of 
office, his reckless spending has led to an inflation crisis that has 
cost his families in Nevada $9,700 per family.
  Mr. Speaker, I yield 1 minute to the great gentleman from Ohio (Mr. 
Carey).
  Mr. CAREY. Mr. Speaker, Americans are in the midst of a recession and 
the worst inflation in over 40 years, yet my friends across the aisle 
are set to pass a $745 billion spending bill that will raise taxes, 
fund the Green New Deal initiatives, and hire 87,000 IRS agents to 
target Americans--all this while doing nothing to reduce inflation and 
adding over $146 billion in debt.
  Now, they say it won't raise taxes on people making less than 
$400,000, but the Joint Committee on Taxation has said at least half of 
all new tax revenue raised will come from those earning under $400,000.
  Probably the biggest thing for me is the 87,000 new IRS agents. To 
folks back in Ohio, I just want to put this in a way that you can 
understand. That is 10,000 more people than live in the city of Parma. 
That is 17,000 more people that live in the city of Canton, 23,000 more 
than in Youngstown.
  This is not the Inflation Reduction Act. This is the audit America 
act.

                              {time}  1300

  Mr. YARMUTH. Mr. Speaker, I want to respond one more time to these 
claims about 87,000 new IRS agents. The IRS has never made any 
announcement about plans to hire any number of agents. The Washington 
Post fact-checker has actually given that claim three Pinocchios. 
Again, these are Republicans making it up to scare the American people.
  Mr. Speaker, I yield 1 minute to the gentlewoman from Virginia (Ms. 
Spanberger), a distinguished member of the Committee on Agriculture.
  Ms. SPANBERGER. Mr. Speaker, today, I am so proud to rise in support 
of the Inflation Reduction Act.
  As chair of the Subcommittee on Conservation and Forestry, I am 
excited that this bill includes dedicated funding to further the role 
of Virginia's crop and livestock producers in our work to protect our 
planet.
  Farmers are the original conservationists, and their expertise cannot 
be ignored if we are going to meet our shared climate goals while also 
bringing greater investments to rural America, strengthening our 
farmers' bottom lines, and lowering the cost of inputs.
  We can make investments in our Nation's producers by investing in 
existing voluntary conservation programs at USDA, and that is what this 
legislation does.
  I am proud that the conservation provisions in this bill reflect 
multiple pieces of legislation that I have championed to make possible, 
including my bipartisan REAP Improvement Act.
  These provisions include stronger investments in the Rural Energy for 
America Program, or REAP, and support our conservation workforce and 
our Natural Resources Conservation Service. These are smart investments 
for the bottom lines of our farmers.
  Mr. SMITH of Missouri. Mr. Speaker, I reserve the balance of my time.
  Mr. YARMUTH. Mr. Speaker, I yield 1 minute to the gentleman from New 
York (Mr. Jones), a distinguished member of the Committee on the 
Judiciary.
  Mr. JONES. Mr. Speaker, I am so proud to be standing here today in 
this Chamber as we make history for the American people.
  Democrats fought so hard for so long to get to this moment. Even when 
faced with what many described as insurmountable odds, we kept at it. 
We never gave up. We never relented in our advocacy. We said we wanted 
to get back to the negotiating table and that we wanted to start with 
climate.
  Now, we will make the biggest climate investment this Nation has ever 
seen, while creating millions of good-paying jobs. The stakes of the 
climate crisis could not be higher, especially for low-income 
communities and communities of color around the country, who are always 
the hardest hit.
  This legislation is also for my grandmother, Alice Jones, who worked 
well past the age of retirement just to pay for the high cost of 
prescription drugs and medical procedures not fully covered by 
Medicare, as we know. Today, we will also lower prescription drug 
prices for our seniors.
  This is why I ran for Congress. This is government working for the 
people. This is Democrats delivering on our promises.
  Mr. SMITH of Missouri. Madam Speaker, I yield 1 minute to the 
gentleman from California (Mr. Obernolte).
  Mr. OBERNOLTE. Madam Speaker, new data from the Department of Labor 
released this week indicates that inflation in America remains at a 40-
year high.
  Numerous studies, including one by the San Francisco branch of our 
Federal Reserve Bank, indicate that the reason why Americans 
disproportionately are suffering from this inflation is reckless levels 
of deficit spending by our Federal Government.
  Only the United States Congress could respond to the situation with a 
bill that increases Federal spending by over $700 billion at the same 
time it increases taxes on Americans.
  To add insult to injury, our own Congressional Budget Office, as well 
as the University of Pennsylvania Wharton School of Business, and 
hundreds of economists, tell us that this bill, the so-called Inflation 
Reduction Act, will not actually reduce inflation at all.
  We need to get our fiscal house in order and solve the reckless 
spending that is causing this inflation instead of taking action that 
makes the situation even worse. I urge a ``no'' vote.
  Mr. YARMUTH. Madam Speaker, I yield 1 minute to the gentlewoman from 
North Carolina (Ms. Ross), a distinguished member of the Committee on 
the Judiciary.
  Ms. ROSS. Madam Speaker, I rise to support the Inflation Reduction 
Act.
  This bill is a monumental achievement that will move America forward, 
making important advances in everything from healthcare costs to energy 
prices to tax fairness.
  Coming from North Carolina, a State battered with increasing 
regularity by catastrophic storms, I am especially proud that this act 
represents the most significant investment to combat climate change in 
U.S. history.
  I am also pleased that this bill includes a measure that I have 
championed, which will end the prior moratorium on offshore wind. The 
Trump administration basically banned North Carolina from taking 
advantage of industrial-scale offshore wind. Our utilities support it, 
it is good for our economy, and it is good for our environment. This is 
an important, game-changing bill.
  Mr. SMITH of Missouri. Madam Speaker, I yield 1 minute to the 
gentleman from Georgia (Mr. Clyde), who definitely has experience with 
the IRS.
  Mr. CLYDE. Madam Speaker, despite the White House's politically 
motivated propaganda that claims our economy is in a transition with 
zero percent inflation, the reality is we are facing an economic 
recession and continue to battle 40-year high inflation.
  As millions of Americans struggle to buy groceries, fill up their gas 
tanks, afford rent, and pay utility bills, Democrats are ramming 
through their tax-and-spend bill that will only make life worse.
  Now, I know the left can't quite grasp the basics of high school 
biology, but it appears that they also need a lesson on the 
fundamentals of economics and basic math.
  But I don't think they are interested in their much-needed schooling 
because their actions are intentional. Time and time again, the left 
proves their priorities lie with Big Government socialism, not the 
American people. Through increased IRS audits, they are willing to 
demolish any small business, worker, or family that gets in their way.
  Madam Speaker, I urge all my colleagues to reject fueling inflation 
and reject tax hikes during a recession by voting ``no'' on Democrats' 
build back broke bill.
  Mr. YARMUTH. Madam Speaker, I reserve the balance of my time.
  Mr. SMITH of Missouri. Madam Speaker, I yield 1 minute to the 
gentleman from Texas (Mr. Roy).
  Mr. ROY. Madam Speaker, my Democratic colleagues own this bill. Let's 
be clear:
  Tax increases for the average American, check.
  $80 billion to the Internal Revenue Service to go after those 
Americans, to hire agents, jobs already posted, check.

[[Page H7659]]

  Increased electricity prices, increased gas prices, tilted windmills 
with your unicorn energy policies, check.
  Increased government and corporate control of healthcare, check.
  I hear my colleagues talking about, ``Oh, we are going to go after 
pharma.'' Well, what did the CDC say yesterday?
  Don't worry about all of those mandates, don't worry about all of 
those vaccines, and don't worry about all the quarantines. Sorry, pox 
on us.
  But my colleagues now today are going to dump hundreds of billions of 
dollars into corporate America, screwing over the American people every 
single day with tax audits, increased energy prices, and increased 
taxes.
  Congratulations. Take that to the polls.
  Mr. YARMUTH. Madam Speaker, I reserve the balance of my time.
  Mr. SMITH of Missouri. Madam Speaker, may I inquire as to how much 
time is remaining?
  The SPEAKER pro tempore (Ms. Underwood). The gentleman from Missouri 
has 1 minute remaining.
  Mr. SMITH of Missouri. Madam Speaker, I yield myself such time as I 
may consume.
  The solution to the inflation crisis that the Democrats have set 
forward is to spend hundreds of billions of more dollars and to tax all 
hardworking Americans once again.
  You cannot spend your way out of inflation, and you cannot tax your 
way out of recession. But that is the recipe that the one-party, 
Democrat rule in Washington, D.C., has suggested for the hardworking 
Americans who are barely surviving to put food on their table, clothes 
on their backs, and gasoline in their cars.
  I will point out to the chairman that his President's budget outlined 
an additional $80 billion for the IRS. Highlighted in that budget he 
wanted 87,000 IRS agents. That is where the number is coming from, from 
your President, who provided a budget.
  I know in the Budget Committee, we have never had a hearing on budget 
for the last 3\1/2\ years. That is probably why you didn't know 87,000 
auditors were in the President's budget.
  Madam Speaker, I yield back the balance of my time.
  Mr. YARMUTH. Madam Speaker, I yield myself the balance of my time.
  Madam Speaker, I want to remind my Republican colleagues and the 
American people, once again, what Republicans will be voting against 
today.
  They will be voting against cutting prescription drug prices for 
their constituents. They will be voting against combating inflation and 
lowering energy costs. They will be voting against the largest Federal 
investment in dealing with climate crisis in the history of this 
country.
  I cannot believe that I still heard from the other side today the 
hoax comment, that climate change is a hoax. You would think that as we 
watch what is going on in the world, while I watch what is going on in 
my State, when my citizens in eastern Kentucky were devastated by 
historic floods, when my citizens in western Kentucky were devastated 
by historic tornadoes, all of which scientists have said were 
exacerbated by climate change, that there are still people who deny 
that climate change exists.
  But for the first time in this country, we will show true leadership 
to the world, that we are taking action, and we are going to lead the 
world in combating climate change.
  The gentleman from Texas said Democrats own this bill. Yes, we do. 
Proud of it. I don't know one member of the Democratic Caucus who is 
not thrilled to death today that we are doing what we are doing, 
because the vast majority of the American people support what we are 
doing. The vast majority of the American people want us to cap out-of-
pocket expenses for seniors for their medications at $2,000.
  Republicans say no. They are going to vote against that. They are 
going to vote against a cap of a $35 copay for insulin. Tens of 
millions of Americans will benefit from that.
  We know that five former Secretaries of the Treasury from both 
Democratic and Republican administrations, 126 of our Nation's top 
economists, including seven Nobel Laureates, support the Inflation 
Reduction Act.
  On other side, we have Big Pharma, corporate lobbyists, tax cheats, 
and congressional Republicans.
  This debate has made clearer than ever that Democrats are working to 
make life better for the American people while Republicans just don't 
care. It is as simple as it is harsh.
  This legislation is important, historic, and a significant win for 
American families and for the planet.
  I will be voting ``yes'' on the Inflation Reduction Act, and soon we 
will be sending it to President Biden's desk to be signed into law. I 
know he will be proud to do that as well.
  Madam Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore. The gentleman from Massachusetts (Mr. Neal) 
and the gentleman from Texas (Mr. Brady) each will control 30 minutes.
  The Chair recognizes the gentleman from Massachusetts.
  Mr. NEAL. Madam Speaker, I yield myself such time as I may consume.
  As we begin the proceeding here on the Ways and Means portion of the 
legislation, I want to begin by calling attention to the untimely and 
tragic loss of our colleague, Jackie Walorski, and two members of her 
staff.
  Jackie was a force on the committee, as well as the ranking member of 
the Subcommittee on Worker and Family Support. She led with deep 
commitment to children and families and was well regarded as a member 
of the community, a real humanitarian.
  You couldn't miss her bright smile or her booming laugh. She embodied 
what it meant to serve.
  When she called me ``Mr. Chairman,'' as she always did in the 
hallway, loudly, with a booming voice, I know she meant it.
  We were all lucky to have had her as a colleague and even luckier to 
be able to call her a friend.
  The families and loved ones of Congresswoman Walorski, Emma Thomson, 
and Zachery Potts remain in our thoughts and prayers. May they rest in 
peace, as valued Members of the Ways and Means family.
  Madam Speaker, I rise in full support of the Inflation Reduction Act. 
I look forward, as I have in the past, to this moment, reciting the 
wisdom that is often referenced by me, because the words come from 
another son of Massachusetts, Mr. Webster.
  Over the Speaker's rostrum that adorns this marvelous institution, 
which I love, the quote is simple: ``Let us develop the resources of 
our land, call forth its powers, build up its institutions, and promote 
all its great interests and see whether we also in our day and 
generation may not perform something worthy to be remembered.''
  The Inflation Reduction Act is something worthy of being remembered. 
This is substantive and transformative legislation, a reminder to all 
that in the legislative life and its rhythms, we generally pursue 
perfection but accept the possible. Part of that is what we are marking 
at this moment.
  This is a historic win for family pocketbooks, for Americans' health, 
and for the future of climate security. We fund these gains by ensuring 
that large, profitable companies pay their fair share, just like all 
members of the American family are asked to do.

                              {time}  1315

  The Inflation Reduction Act will lower costs. For the first time, 
Medicare will negotiate drug prices, and there will be a cap on what 
comes out of seniors' pockets for their lifesaving prescriptions. No 
more rationing or forgoing necessary medicines.
  We are lowering healthcare costs for millions of low-income and 
middle-income Americans by extending the Affordable Care Act's premium 
tax credit enhancements through 2025.
  Let me give you a statistic that is compelling. Madam Speaker, 100 
percent of the children in Massachusetts have health insurance, and 97 
percent of the adults in Massachusetts have health insurance. It polls 
extraordinarily well in terms of its success ratios because we 
decided--labor, business, Democrat, and Republican--to make it work, 
and we did.
  These enhanced premium credits, first enacted by the American Rescue 
Plan, have made way for record-low uninsured rates that have put 
hundreds of dollars back into the pockets of low- and middle-income 
Americans.
  This legislation will also make the largest investment in tackling 
climate

[[Page H7660]]

change that our Nation has ever witnessed. The investments in clean 
energy, energy efficiency, and clean manufacturing will generate 9 
million good-paying jobs.
  These historic wins are achieved with sensible and responsible 
multiyear investments in the IRS.
  I have been a member of the Ways and Means Committee, Madam Speaker, 
for 30 years. Let me give our friends an interesting statistic about 
the American family. We have the highest voluntary compliance rate in 
the world. Eighty-six percent of the American people pay their taxes. 
This idea that we are creating 87,000 armed representatives of the 
Federal Government to go out and harass the American people is 
nonsensical. Retirements alone are going to require a substantive 
investment. The IRS has fewer than 20 percent of the employees that it 
once did.
  What is important to remember here is this: We want to make sure with 
this investment in the IRS that we continue to have a high voluntary 
compliance rate and also to invest in the necessary technology that 
will allow the modeling to make sure compliance remains with us, as 
well.
  These are historical investments and achievements, and they also are 
going to continue our quest on the Democratic side here for an element 
of tax fairness that will hold people at the very top as responsible as 
the other side likes to hold people who receive the EITC tax credit in 
terms of their request for audits. We do this simply by asking the most 
powerful among us to pay their fair share. This is what a full and fair 
tax administration is about.
  The American people have been through an unthinkable hardship over 
the last 2\1/2\ years, but they entrusted Joe Biden and congressional 
Democrats to keep them safe and to rebuild our economy.
  Here is a fact: On March 11, 2020, Dr. Fauci gave his warning. He 
warned us of what was coming. In April 2020, America had lost 22 
million jobs. Here we are, 2 years later, in the Biden administration, 
and every job has been returned. There are 10.6 million jobs that go 
unanswered right now in the American economy.
  We have bounced back faster than we imagined. Not only have all these 
jobs been returned, but for 51 straight days, gasoline prices have 
fallen.
  That is an issue about supply and demand, by the way. It is about 
international events, including the Russian invasion of Ukraine and 
supply chains across the world. Those chains that I have just 
referenced have been shored up, and retailers are starting to 
realistically address some speculation as it relates to price.
  Democrats shouldn't be asked to do this alone, but we are being asked 
to do it today alone.
  We are going to hear a lot of Washington talk from folks on the other 
side that want to address the politics of the situation rather than cap 
the cost of insulin for their constituents. They want to protect the 
pocketbooks of those who would raise prescription drug prices 
unnecessarily and cut costs for workers and their families, which we 
intend to do.
  You are going to hear a lot of spin on this bill that has received a 
lot of endorsements, even from bipartisan former Treasury Secretaries, 
but that is because the opponents are out of options.
  The Inflation Reduction Act sets our Nation on a healthier, fairer, 
and more prosperous path. We have heard the calls of the American 
people, and with the Inflation Reduction Act, we continue to win this 
moment for them in its totality.
  Madam Speaker, I urge our colleagues to support this legislation, and 
I reserve the balance of my time.
  Mr. BRADY. Madam Speaker, I yield myself such time as I may consume.
  Madam Speaker, I join Chairman Neal in expressing our heartbreak and 
sorrow in losing Congresswoman Jackie Walorski, our colleague, as well 
as Zachery and Emma. She was so proud of her Team Walorski folks.
  The truth of the matter is, Jackie lit up every room she was in with 
her passion and her brilliance and her friendship and warmness. There 
is no question she could do everything. She was all in on everything 
and worked hard to find common ground wherever she could.
  Last week was a shocking week and a week to mourn. This week is a 
time to celebrate Jackie, her legacy, and her life.
  Sadly, this massive Senate bill, drawn in secret, stuffed with 
government checks to the wealthy and favored interests, and rushed 
through Congress is a hoax on the American people. It fails to reduce 
inflation, fails to reduce the budget deficit, and fails to reduce the 
world's temperature.
  Who in their right mind raises taxes in a recession? The answer is 
only President Biden and his supporters in Congress who bungled this 
economic recovery think that is a good idea. You remember them. They 
told you they would defeat COVID, that inflation was a rich person's 
problem, that their $2 trillion spending spree last spring would 
strengthen the economy.

  Instead, what did their promises deliver? The worst inflation in 40 
years, a recession, and a crippling worker shortage that continues to 
hammer Main Street businesses.
  Today, we have a shrinking economy, shrinking paychecks, and a 
shrinking workforce. Families are skipping meals, running up credit 
card debt to pay for daily essentials, delaying retirement, and 
struggling to afford gas just to drive to work. Yet, Democrats today 
insist inflation doesn't even exist. They say it is zero.
  The truth is, most Americans have lost confidence in President 
Biden's failed handling of the economy. By contrast, the majority of 
the jobs in the COVID recovery came under President Trump, and under 
Republican leadership, paychecks grew twice as fast as prices. The 
economy was surging, not shrinking like it is today, and 600,000 more 
Americans were working than today under this unpopular White House.
  Why would you trust the same Democrats responsible for this cruel 
economy with another of their misguided spending bills?
  While other countries are lowering taxes to fight inflation, 
Democrats imposed over $350 billion in taxes that land on local 
manufacturers that build right here in America. It will kill jobs, slow 
the economy, and raise prices even higher.
  Small businesses, which hire nearly half of all workers in America, 
get hammered with $50 billion in new taxes.
  Senior citizens and savers will bear the impact of $74 billion in new 
taxes that punish companies from investing in their stock value.
  All these taxes will hurt the economy, drive inflation further, and 
harm workers' paychecks, according to the independent Tax Foundation.
  Democrats promise that no American will ``see a penny'' of tax hikes, 
yet Congress' own budget office debunks that claim, confirming the 
largest burden of higher taxes will come from middle-class families 
starting next year.
  President Biden is violating his own pledge not to raise taxes on 
middle-class Americans. He is denying that truth.
  Yesterday, House Democrats insisted there are no new IRS agents 
funded in this bill. Read their lips: No new IRS agents. They say it is 
all fearmongering, and they are just hiring replacements.
  Unfortunately, the fact is the IRS budget already budgets for those 
who are leaving through attrition, and the Treasury Department itself 
outlines the next decade of adding 87,000 new IRS agents. That is what 
this bill unleashes.
  In fact, the Congressional Budget Office reports ``audit rates will 
increase for every income level,'' that almost 90 percent of unreported 
tax income comes from who? The middle class.
  How will Democrats collect $204 billion in more taxes? With thousands 
of new agents targeting what I would call Walmart shoppers. You know 
them. They are real, hardworking American families. They are my 
constituents. They are my neighbors in my district. They are living 
paycheck to paycheck, struggling with inflation and higher gas prices. 
They will be hit with over 700,000 new audits, thanks to a skyrocketing 
surge in IRS agents.
  Maybe that is why Democrats blocked any language in the Senate that 
protects Walmart shoppers and other value-shopping families against

[[Page H7661]]

these new IRS audits. But, man, this bill, they love the wealthy. If 
the Green New Deal and corporate welfare had a baby, it would look like 
this. Nearly one-quarter of a trillion dollars in Green New Deal 
subsidies, government handouts, go to the wealthy and to the biggest, 
most successful businesses in America.
  Look at this: A single working mom will pay higher taxes so they can 
be sent in a government check to wealthy investors and massive 
corporations. A yardman will send his taxes in a government check to 
the very well-to-do family whose lawn he is cutting so they can splurge 
on an $80,000 luxury electric vehicle.
  Incredibly, to fund all these government handouts, every Senate 
Democrat and the Vice President chose to impose higher taxes on small 
businesses so that millionaires and billionaires would be protected 
from higher State and local taxes.
  Everyone facing devastating diseases like cancer, Alzheimer's, ALS, 
and Parkinson's will pay a deadly price.
  This crazy bill increases the cost of healthcare and medicines and 
kills new lifesaving cures while providing ObamaCare subsidies for the 
wealthy and those choosing not to return to work, making the worker 
shortage harsher.
  Congress' nonpartisan scorekeeper, the Penn Wharton School of 
Business, and the University of Chicago all confirm the government 
price-fixing scheme could be a death sentence for patients, raising the 
costs of new drugs, crushing innovation, and killing hundreds of cures.

  Higher taxes, harassing IRS audits on our Walmart shoppers, no relief 
from inflation, all as America battles a recession.
  Let me ask again: Do you really trust the same President and 
Democrats who drove this economy into recession and drove prices sky 
high with yet another spending spree?
  Madam Speaker, I strongly urge my colleagues to vote ``no'' on this 
bill, and I reserve the balance of my time.
  Mr. NEAL. Madam Speaker, I yield 1\1/2\ minutes to the very 
accomplished gentleman from Connecticut (Mr. Larson).
  Mr. LARSON of Connecticut. Madam Speaker, I start by echoing the 
sentiments that both the chairman and the ranking member had about 
Jackie Walorski and how deeply we all feel for her and her family and 
the staff members who were lost.
  I congratulate Mr. Neal and also members of this committee, most 
notably Mr. Thompson and Mr. Blumenauer, as well, for their work on 
climate change and for their work throughout this period of putting 
forward consequential legislation. I say ``consequential'' in the time 
I am allotted because I want to talk and focus specifically on some of 
these claims.
  I hope the American people are listening. You don't bring about 
change by appealing to the sum total of the fears of the American 
people. You bring about change aspirationally and by doing something 
constructive and putting forward legislation as opposed to putting 
forward the collective fears of a nation and hoping that you might be 
able to exploit those fears for political gain.
  The myth that there are 87,000 IRS agents, even Trump's former person 
rejects that. It is nonsense, as Mr. Neal has pointed out.
  What matters to people is when you help them directly, like Rod 
Yearwood in West Hartford, Connecticut, who is paying $1,400 a month 
for his insurance, but now, under this bill, is paying $20 a month. The 
real savings he gets from that allows him to provide for a college 
education for his children. Aspiration.

                              {time}  1330

  Mr. BRADY. Madam Speaker, I include in the Record Page 16 of the 
Department of the Treasury's tax compliance plan, which shows the 
agency intends to hire 87,000 new IRS employees.

                        Restoring IRS Resources

       The first step in the President's efforts to restore IRS 
     enforcement capability is a sustained, multi-year commitment 
     to rebuilding the IRS. This involves spending nearly $80 
     billion on IRS priorities over the course of the decade 
     including hiring new specialized enforcement staff, 
     modernizing antiquated information technology, and investing 
     in meaningful taxpayer service--including the implementation 
     of the newly expanded credits aimed at providing support to 
     American families. Importantly, the additional resources will 
     go toward enforcement against those with the highest incomes, 
     and audit rates will not rise relative to recent years for 
     those earning less than $400,000 in actual income.
       The President's proposal includes two components: a 
     dedicated stream of mandatory funds ($72.5 billion over a 
     decade) and a program integrity allocation ($6.7 billion over 
     a decade). These mechanisms provide for a sustained, multi-
     year commitment to revitalizing the IRS that will give the 
     agency the certainty it needs to rebuild.
       The IRS proposal includes year-by-year estimates of the 
     additional resources that will be directed toward the agency 
     as well as the specific activities that these resources would 
     support. The design ensures that the IRS is able to absorb 
     and usefully deploy additional resources over the entire 10-
     year horizon and keeps budget growth manageable at around 10 
     percent per year.

  Mr. BRADY. Madam Speaker, I yield 1 minute to the gentleman from 
Oklahoma (Mr. Hern).
  Mr. HERN. I rise today in strong opposition to the bill before us 
today.
  Never in our history has the Federal Government responded to a 
recession by raising taxes on Americans. It is simply unthinkable.
  Nearly everything our colleagues across the aisle have said about 
this bill has been proven false. I have noticed they have stopped 
calling it the inflation legislation because they know it is not true. 
They are hailing it as a climate and tax plan. I will give them that 
because this legislation will raise American taxes and give that money 
to handpicked socialist green companies. I wouldn't be proud of that if 
I were them.
  What this bill will absolutely do is not reduce inflation. In fact, 
even liberal economists are warning it will do the exact opposite.
  Just today, 56 percent of Democrats and 91 percent of Independents 
are now gravely concerned with the direction of our economy. I have 
received thousands of phone calls, text messages, and emails from my 
constituents over the last week pleading with me to stop this bill from 
passing. They understand what half of this Chamber does not.
  When the Federal Government spends more, American families have less. 
I find nothing redeemable in this legislation and, therefore, I urge my 
colleagues to vote a resounding ``no.''
  Mr. NEAL. Madam Speaker, I yield 1\1/2\ minutes to the gentleman from 
Oregon (Mr. Blumenauer), who has had a profound influence on the 
renewable energy part of this legislation.
  Mr. BLUMENAUER. Madam Speaker, I thank the chairman, and I appreciate 
his leadership and his courtesy.
  Madam Speaker, this legislative package is something that refuses to 
die. It will reduce inflation, lower energy costs, and lower the cost 
of prescription drugs. But it is not just about inflation, it is about 
addressing the climate crisis and the crisis of confidence in 
government.
  Last week, President Biden met with some of the foremost experts on 
the Presidency and American democracy to better understand the critical 
state that we are now in with the future of our democracy and how we 
avoid its destruction.
  We have our moment of making American history now. It is our moment 
for the future of our planet, for our children and grandchildren, and 
ourselves.
  I am pleased to have worked for over a decade on these provisions 
dealing with green energy, investment tax credits, energy efficiency in 
commercial buildings, and legislation to make polluters pay by 
reinstating the Superfund tax.
  Seniors and working families will see significant savings by allowing 
Medicare to negotiate drug prices and capping the monthly cost of 
prescriptions, something the Republicans made illegal in 2004.
  And critically, it takes steps to restore the ability of the IRS to 
function, closing the $400 billion tax gap and not making the American 
public pay for poor customer service because of their mindless attack 
on this important institution.
  Because the Inflation Reduction Act represents more than the sum of 
these individual provisions, it is proof that our system works and that 
the United States has the capacity to solve our most pressing 
challenges in the years ahead just when we need it most.
  Mr. BRADY. Madam Speaker, I include in the Record a CBO letter,

[[Page H7662]]

which confirms the Affordable Care Act subsidies will boost inflation 
and reduce the incentive for people to work.
                                                    U.S. Congress,


                                  Congressional Budget Office,

                                   Washington, DC, August 4, 2022.
     Re Economic Analysis of Budget Reconciliation Legislation

     Hon. Lindsey Graham,
     Ranking Member, Committee on the Budget,
     U.S. Senate, Washington, DC.
       Dear Senator: Yesterday, the Congressional Budget Office 
     published a cost estimate for H.R. 5376, the Inflation 
     Reduction Act of 2022, which is the latest version of the 
     reconciliation legislation in the Senate.\1\ This letter 
     provides answers to four questions you asked related to that 
     bill and broader economic conditions.


             Is the United States Currently in a Recession?

       The U.S. economy shows signs of slowing, but whether the 
     economy is currently in a recession is difficult to say. It 
     is possible that, in retrospect, it will become apparent that 
     the economy moved into recession sometime this year. However, 
     that is not clear from data that were available at the 
     beginning of August. Some key metrics indicate a decline in 
     economic activity as the first half of this year progressed, 
     whereas others indicate continued growth, though generally at 
     a slower rate than previously.
       Real gross domestic product (that is, GDP adjusted to 
     remove the effects of inflation) and industrial production 
     have both declined. In particular, real GDP declined by an 
     average of 1.25 percent (at an annual rate) in the first two 
     quarters of 2022. Industrial production grew from January to 
     April, was essentially unchanged in May, and then declined in 
     June.
       Other key indicators of economic activity have continued to 
     increase in the first half of 2022, though generally at a 
     slower rate than they had previously. For instance, real 
     gross domestic income (GDI) increased at an annual rate of 
     1.8 percent in the first quarter of 2022 after growing by an 
     average rate of 6.3 percent in the second half of 2021.\2\ 
     (Second-quarter data for GDI are not yet available.) Real 
     personal income minus transfer payments to people by federal, 
     state, and local governments grew at an average annual rate 
     of 0.5 percent in the first half of 2022 versus 3.1 percent 
     in the second half of 2021. And real personal consumption 
     expenditures grew at an average annual rate of 1.4 percent in 
     the first half of 2022 (with somewhat slower growth in the 
     second quarter than in the first), compared with 2.2 percent 
     in the second half of 2021. One reason for the deceleration 
     in personal consumption expenditures is higher inflation, 
     which has eroded consumers' purchasing power. Another reason 
     is that real disposable personal income has declined in the 
     first half of 2022. Savings accumulated during the 
     coronavirus pandemic, including from transfer payments, have 
     continued to support consumption.
       The labor market remains tight, with low unemployment and 
     elevated job vacancies, but both measures have softened in 
     recent months. Net gains in nonfarm payroll employment 
     averaged 375,000 jobs per month in the second quarter of 2022 
     compared with 539,000 jobs, on net, added per month in the 
     first quarter and 590,000 jobs, on net, added per month in 
     the second half of 2021. In June 2022, the unemployment rate 
     was 3.6 percent (unchanged since March and near its 
     prepandemic low) and there were about 1.8 job vacancies for 
     every unemployed worker (one of the highest readings in the 
     near 22-year history of this series though down from its 
     highest level of 2.0 in March).


     How Would Enacting the Bill Affect Inflation in 2022 and 2023?

       In calendar year 2022, enacting the bill would have a 
     negligible effect on inflation, in CBO's assessment. In 
     calendar year 2023, inflation would probably be between 0.1 
     percentage point lower and 0.1 percentage point higher under 
     the bill than it would be under current law, CBO estimates. 
     That range of likely outcomes reflects uncertainty about how 
     various provisions of the bill would affect overall demand 
     and output, the supply of labor, the persistence of 
     disruptions in the supply of goods and services, and how the 
     Federal Reserve would respond to offset any increase in 
     inflationary pressure. Responsiveness to the enhancement of 
     health insurance subsidies established by the Affordable Care 
     Act is the most important factor boosting inflationary 
     pressure, and responsiveness to the new alternative minimum 
     tax on corporations is the most important factor reducing 
     inflationary pressure. The range applies to multiple measures 
     of inflation: the GDP price index, the personal consumption 
     expenditures price index, and the consumer price index for 
     all urban consumers.
       In its analysis of the inflationary effects of the bill, 
     CBO used an approach similar to that underlying the agency's 
     estimates of the short-term effects of legislation enacted in 
     2021.\3\ The agency augmented its analysis to account for the 
     effects of supply disruptions and for the amount of tightness 
     or slack in the economy on the inflationary effects of fiscal 
     policy.
       Key inputs into the analysis of inflation were the effects 
     of the bill on overall demand for goods and services. In the 
     short term, changes in fiscal policies affect the economy 
     primarily by influencing the demand for goods and services by 
     consumers, businesses, and governments, which leads to 
     changes in output. Factors increasing overall demand push 
     inflation up and those decreasing overall demand push 
     inflation down. To estimate the effects of changes in federal 
     spending and revenues on overall demand and output, CBO 
     considered evidence about the effects of similar policies in 
     the past and used results produced by macroeconomic 
     models.\4\
       CBO expects different provisions of the legislation to 
     affect overall demand and output differently.\5\ For example, 
     provisions that directly increase government purchases of 
     goods and services would add to overall demand on a dollar-
     for-dollar basis. Increases in financial support to people, 
     such as through enhanced health insurance subsidies, would 
     boost spending more among lower-income people than among 
     higher-income people, partly because lower-income households 
     typically consume a higher fraction of their additional 
     disposable income than higher-income households do. Thus, 
     financial assistance to lower-income households would boost 
     the overall demand for goods and services more than financial 
     assistance to higher-income households would. Changes to 
     business taxes that affect after-tax profits on past 
     investments--as opposed to the return on new investments--
     would have relatively small effects on overall demand, in 
     CBO's assessment.
       CBO used its estimates of the bill's net effects on the 
     deficit as the starting point for its analysis of overall 
     effects on demand (see Table 1). The enhanced health 
     insurance subsidies and energy-related subsidies were the 
     largest contributors to increases in the deficit. The new 
     alternative minimum tax on corporations was the largest 
     contributor to reductions in the deficit. For each dollar 
     change in the deficit, the increases in subsidies would 
     probably have larger effects on overall demand (boosting it) 
     than the increases in revenues (which would reduce overall 
     demand). Those factors could contribute to the effects on 
     output and inflation being positive even when the overall 
     deficit was reduced.

    TABLE 1--NET INCREASES AND DECREASES (-) IN THE DEFICIT FROM THE
                     INFLATION REDUCTION ACT OF 2022
                          [Billions of Dollars]
------------------------------------------------------------------------
                                                Fiscal Year  Fiscal Year
                                                    2023         2024
------------------------------------------------------------------------
Title I.
    A. Tax Provisions.........................          -54          -46
    A. Internal Revenue Service Funding.......            5            4
    B. Prescription Drug Pricing..............           -3           -2
    C. Affordable Care Act Subsidies..........           20           22
    D. Energy Security........................           12           14
Titles II.-VIII.                                          3           10
        Total.................................          -18            3
Memorandum: Deficit Effects From Higher                  -3           -8
 Revenues Resulting From Increased Funding for
 the Internal Revenue Service (Not included
 above).......................................
------------------------------------------------------------------------
Data source: Congressional Budget Office.
The estimated budgetary effects are of H.R. 5376, as amended in the
  nature of a substitute (ERN22335) and posted on the website of the
  Senate Majority Leader on July 27, 2022. Components may not sum to
  totals because of rounding.
The budgetary effects in fiscal years 2023 and 2024 informed CBO's
  analysis of the economic effects in calendar year 2023. The analysis
  included the effects on the deficit from higher revenues resulting
  from increased funding for the Internal Revenue Service. Under
  guidelines agreed to by the legislative and executive branches, those
  effects are not included in the total line from CBO's cost estimate
  reporting the net effect on the deficit. Thus, the effects shown in
  the memorandum are additional. Those revenues constitute a shift in
  resources from the private sector to the government that would reduce
  demand and thus reduce inflationary pressure.

       Enacting the bill would also reduce some businesses' 
     incentives to invest through changes in the after-tax return 
     on private investment, pushing down output and inflation. 
     (See the answer to the fourth question in this letter for 
     further discussion.) In addition, enacting the bill would 
     reduce the incentives of some people to work, mainly because 
     of the enhanced health insurance subsidies, pushing down 
     output and pushing up inflation.
       Enacting the bill would affect economic activity and 
     inflation beyond 2023. CBO has not evaluated those effects.


    What Is the Highest Amount of Income That People Qualifying for 
            Expanded Health Insurance Subsidies Would Earn?

       The answer to your question depends on people's age and 
     geographic location, and the number of enrollees in the 
     family. On the basis of nationwide average premiums projected 
     for 2023 under the bill, CBO estimates the following:
       A 64-year-old would receive a premium tax credit if his or 
     her income did not exceed $163,700 in that year.
       A 21-year-old would receive a premium tax credit if his or 
     her income did not exceed $54,600.
       A family of four consisting of individuals ages 50, 50, 21, 
     and 21 would receive a premium tax credit if their household 
     income was no greater than $304,100.
       A younger family of four, consisting of people ages 24, 24, 
     5, and 5, would receive a premium tax credit if the 
     household's income was no more than $192,700.
       Premium tax credits are used to lower people's out-of-
     pocket monthly premium contributions for health insurance 
     obtained through the marketplaces established by the 
     Affordable Care Act. The amount of the credit is calculated 
     as the difference between the benchmark premium for health 
     insurance (that is, the premium for the second-lowest-cost 
     silver plan available in a region) for the individual or 
     family and a specified maximum contribution, expressed as a 
     percentage of modified adjusted gross income. Those benchmark 
     premiums are also a function of age, geographic location, and 
     the number of enrollees. For example, the premium for a 64-
     year-old is three times that for a 21-year-old in most 
     states. The premium tax credit is

[[Page H7663]]

     thus correspondingly larger for older people than for younger 
     people.
       The likelihood that the benchmark premium will exceed a 
     person's maximum contribution--and that the person will 
     therefore receive a premium tax credit--declines at higher 
     income levels. For those whose income is above 400 percent of 
     the federal poverty guideline, or $54,400 for a single person 
     in 2023, their maximum contribution would be 8.5 percent of 
     income through 2025 under the bill.
       This analysis is based on nationwide average premiums. For 
     people living in states with premiums that are above or below 
     the average, the income at which they would no longer be 
     eligible for a premium tax credit would be higher or lower.


What Effect Would a New Alternative Minimum Tax on Corporations Have on 
                      Business Investment and GDP?

       Section 10101 of H.R. 5376 would increase taxes on 
     corporations by imposing a new alternative minimum tax equal 
     to 15 percent of income reported on financial statements by 
     certain large corporations--specifically, those whose 
     adjusted financial statement income exceeds $1 billion. The 
     staff of the Joint Committee on Taxation (JCT) estimates that 
     the provision would increase federal revenues by $313.1 
     billion over the 2023-2031 period (with $96.6 billion of that 
     amount being generated in fiscal years 2023 and 2024). JCT 
     has projected that approximately 150 corporations would be 
     subject to the new tax each year and that just under half of 
     the revenues would come from the manufacturing sector.\6\
       In CBO's assessment, the proposed new corporate minimum tax 
     would reduce the incentive for those large corporations to 
     invest, primarily by limiting the tax benefit of accelerated 
     depreciation and by decreasing the after-tax return on their 
     new investment. According to the generally accepted 
     accounting principles that are used for preparing financial 
     statements, firms must deduct the cost of investments over 
     the full useful life of the asset. In contrast, various 
     provisions of the tax code--including ``bonus'' 
     depreciation--allow firms to deduct investment expenses more 
     quickly, increasing the tax benefit of those deductions and 
     the expected after-tax return on the investments. By setting 
     a new minimum tax, section 10101 would limit the tax benefit 
     of accelerated depreciation for affected corporations and, 
     all else being equal, reduce their business investment.
       The provision would also affect private investment by 
     increasing federal revenues and, all else being equal, by 
     reducing the federal deficit and the amount of federal debt. 
     Less government borrowing would increase the amount of funds 
     available for private investment and put downward pressure on 
     interest rates, which would have a positive effect on 
     business investment, in CBO's view.
       The net effect on business investment, and hence on GDP, 
     would depend on the relative magnitudes of the direct 
     incentive effect and the indirect effect resulting from the 
     change in the federal budget deficit. Additionally, the net 
     effect would depend on overall economic conditions.
       Other provisions of the Inflation Reduction Act would also 
     affect incentives to invest. Thus, the legislation's overall 
     impact on business investment and GDP would differ from that 
     of just this provision considered by itself.
       I hope that this information is useful to you.
           Sincerely,
                                                Phillip L. Swagel,
                                                         Director.


                                ENDNOTES

     1. Congressional Budget Office, cost estimate for H.R. 5376, 
     the Inflation Reduction Act of 2022 (August 3, 2022), 
     www.cbo.gov/publication/58366.
     2. The data on GDP and GDI are subject to revision by the 
     Bureau of Economic Analysis.
     3. See Congressional Budget Office, Additional Information 
     About the Updated Budget and Economic Outlook: 2021 to 2031 
     (July 2021), Appendix B, www.cbo.gov/publication/57263.
     4. For further discussion, see Congressional Budget Office, 
     The Effects of Pandemic-Related Legislation on Output 
     (September 2020), www.cbo.gov/publication/56537.
     5. For additional discussion, see John Seliski and others, 
     Key Methods That CBO Used to Estimate the Effects of 
     Pandemic-Related Legislation on Output, Working Paper 2020-07 
     (Congressional Budget Office, October 2020), www.cbo.gov/
 publication/56612.
     6. See Thomas A. Barthold, Joint Committee on Taxation, 
     letter to the Honorable Ron Wyden, Senate Committee on 
     Finance (August 1, 2022), https://tinyurl.com/4z5wtn7t.
  Mr. BRADY. Madam Speaker, I yield 1 minute to the gentleman from 
Texas (Mr. Arrington).
  Mr. ARRINGTON. Madam Speaker, the last time my Democrat colleagues 
used reconciliation to jam through a massive partisan spending spree, 
it was under the pretense of COVID recovery. Not only did they ``fail 
to rescue America,'' they destroyed our recovery efforts and sent us 
spiraling into recession.
  Now, in the aftermath of their self-inflicted economic disaster, my 
Democrat colleagues' response is to run the same play and expect a 
different result.
  Another false promise under the guise of a grandiose title, the 
Inflation Reduction Act.
  Nobody in America, Madam Speaker, believes that this bill will reduce 
inflation. In fact, it is going to make inflation worse by imposing 
massive tax hikes on U.S. job creators, strangling domestic oil and gas 
production, unleashing an army of tens of thousands of IRS agents to 
shake down working families and small businesses, handing out hundreds 
of billions of dollars in Green New Deal giveaways that will jeopardize 
America's energy security, putting America in the same position of 
weakness as our European allies.
  Mark my words, Madam Speaker, this bill will further fuel inflation, 
deepen our recession, cripple our competitiveness, and increase costs 
at the pump.
  Mr. NEAL. Madam Speaker, I yield 1\1/2\ minutes to the gentleman from 
Wisconsin (Mr. Kind), who is retiring but has made many valued 
contributions to our Nation and committee.
  Mr. KIND. Madam Speaker, I thank the gentleman for yielding.
  Madam Speaker, as a dear friend of Jackie Walorski, I share in the 
grief of her passing and her staff's passing. It is very tragic.
  Madam Speaker, this Inflation Reduction Act is historic legislation. 
It puts people over politics by lowering families' kitchen-table costs 
from prescription drugs to their energy expenses, creates millions of 
good-paying jobs, delivers the most significant action to combat 
climate change when Mother Nature is screaming at us to take action 
today, and it substantially reduces the deficit by over $300 billion.
  Now, on that last point, Madam Speaker, not once has a Republican-led 
Congress brought a reconciliation bill to the floor that was paid for, 
let alone reduces the national deficit.
  In fact, as an example, when they passed their prescription drug bill 
in 2004, not only did they not pay for it, not one nickel of it was 
offset. Over $400 billion, the largest expansion of entitlement funding 
since the creation of Social Security and Medicare, but there were no 
offsets.
  When we passed the Affordable Care Act a little over 10 years ago, 
not only did we pay for it, but we also reduced the deficit. Just this 
week, it was announced that health uninsured rates is at an all-time 
historic low for our country, no less due to that Affordable Care Act.
  Madam Speaker, they made that prescription drug bill even worse when 
they passed it by inserting language in it that specifically made it 
illegal for us to discuss prices or negotiate prices with the drug 
companies. This bill changes that today by allowing once and for all 
some price negotiation with the drug companies to deliver real relief 
for our seniors.
  Madam Speaker, I encourage my colleagues to support this legislation.
  Mr. BRADY. Madam Speaker, I include in the Record the Joint Committee 
on Taxation analysis that shows that families earning $75,000 or 
$100,000 are four times more likely to have a tax hike under this bill 
than a tax cut.

 Nonpartisan Tax Scorekeeper: Average Working Family Is More Likely To 
         Be Worse Off Than Better Off Under Democrats' Tax Plan

       Working families will be worse off under Democrats' higher 
     taxes, according to a new analysis from the nonpartisan Joint 
     Committee on Taxation. This is another devastating blow for 
     families after the Congressional Budget Office revealed that 
     Democrats' supercharged IRS expects to grab $20 billion from 
     lower- and middle-income earners.


               Working Families at High Risk of Tax Hikes

       Democrats have once again tried to hide the real effects of 
     this bill. New analysis from the nonpartisan Joint Committee 
     on Taxation (JCT) shows that the average working family is 
     more likely to be worse-off than better-off under Democrats' 
     tax plan.
       For median-income families earning $50,000-$75,000, 
     households are 33 percent more likely to have a tax hike than 
     a tax cut.
       It gets worse for every dollar earned--families earning 
     $75,000-$100,000 are four times more likely to have a tax 
     hike than a tax cut, and families earning $100,000-$200,000 
     are more than ten times more likely to have a tax hike than a 
     tax cut.
       The bill does nothing--or makes things worse--for regular 
     working families. More than 92 percent of households with 
     incomes under $200,000 get no benefit--or a tax hike--under 
     Democrats' bill.
       What's more, these tax hikes on working families do not 
     include the bill's superfund or methane taxes on American 
     energy, which disproportionately harm middle- and lower-
     income households through higher prices at the pump and 
     bigger utility bills.

[[Page H7664]]

  



               High-Income Households Enjoy Big Benefits

       The JCT analysis shows the landscaping company owner and 
     his workers pay more, while the wealthy homeowner gets checks 
     from Washington for the solar panels on their roof. That's 
     because the ``winners'' under Democrat's tax plan are the 
     earners at the very top. Democrat's reckless spending plan 
     includes more than $250 billion in Green New Deal subsidies 
     that benefit the wealthy the most.
       The percentage of $1 million-plus households getting a tax 
     cut (19.4 percent) is twice as high as any other income 
     group.
       The group with the next highest proportion of tax cuts is 
     those earning $500,000-$1 million.
       Over the long term, 72.5 percent of households with income 
     over $1 million will receive a tax cut.


More Bad News: $10.6 Billion in Tax Hikes on Working Families Next Year

       Separate analysis by JCT isolates the effects of Democrats' 
     tax plan without the Obamacare subsidies that flow to a 
     limited number of households in an attempt to bribe them into 
     one-size-fits-all Obamacare plans. In 2023, Democrats would 
     increase the total tax burden on Americans under $200,000 in 
     income by $10.6 billion.

  Mr. BRADY. Madam Speaker, I yield 1 minute to the gentleman from 
Tennessee (Mr. Kustoff).
  Mr. KUSTOFF. Madam Speaker, I thank the ranking member for yielding.
  Madam Speaker, I rise today in strong opposition to what the 
Democrats call the Inflation Reduction Act which is really the 
inflation expansion act.
  Americans are grappling with an economy in recession and the highest 
inflation that we have seen in 40 years. We are experiencing worker 
shortages, empty grocery shelves, and higher energy prices. Now 
Congressional Democrats are doubling down on this out-of-control 
spending that led to this economic crisis.
  This package that we are voting on today will raise taxes on 
hardworking, middle-class families. It will authorize 87,000 new IRS 
agents to target individuals and small businesses. It will reduce 
lifesaving healthcare innovation by allowing the government to impose 
price controls on drugs. It will hurt energy producers. And it will 
certainly worsen inflation.
  I am voting against this fundamentally flawed and defective package 
because families, farmers, and small businesses across west Tennessee 
and across the Nation need real solutions to these problems, not more 
taxes and not more government spending.
  Mr. NEAL. Madam Speaker, the bill we are considering in the House 
today, the Inflation Reduction Act, started in the House of 
Representatives as the Build Back Better Act.
  Three years ago, all Democratic Members of the Ways and Means 
Committee introduced the GREEN Act as the Committee's consensus 
legislation for tax priorities relating to climate, clean energy, and 
energy efficiency. The GREEN Act was reintroduced, again with all Ways 
and Means Democrats, in the 117th Congress.
  The GREEN Act formed the base of the climate and energy subtitle of 
the Build Back Better Act, which the Ways and Means Committee marked up 
in September 2021 and passed out of the House, following significant 
input from the Senate, in November 2021. Many provisions of Subtitle D 
of the Inflation Reduction Act remain substantially similar to those 
that the House developed and passed.
  As the Chairman of the Ways and Means Committee, I wish to offer 
additional detail on the legislative intent behind certain provisions 
included in this legislation.
  This legislation provides long-term extensions of tax credits for 
renewable technologies such as solar, wind, geothermal, and hydropower 
by extending section 45 and section 48 and enacting their successor 
credits under sec. 45Y and section 48E. These provisions were drafted 
with the goal of unleashing clean energy deployment, in line with 
President Biden's pledge of a 50-52 percent reduction from 2005 levels 
in economy-wide net greenhouse gas pollution in 2030. Additionally, 
this legislation provides enhanced credit amounts for projects 
additional goals, such as those meeting domestic content requirements 
or located in energy communities.
  Currently, these renewable energy tax credits often remain out of 
reach for low-income communities, which disproportionately bear the 
burden of pollution. The Committee believes that our renewable energy 
deployment should align with President Biden's Justice40 initiative, 
which aims to deliver 40 percent of the overall benefits of federal 
investments in climate and clean energy to disadvantaged communities. 
To achieve these goals, we must bring all resources to bear across all 
agencies--the Department of the Treasury, the Department of Energy, the 
Environmental Protection Agency, the White House Council on 
Environmental Quality, and more. For example, the Council on 
Environmental Quality has developed a tool to assist federal agencies 
with best targeting resources towards disadvantaged communities.
  This goal is closely aligned with a provision that I am proud to have 
worked with Rep. Danny Davis to include in this legislation. H.R. 5183, 
provides an enhanced investment tax credit for projects in connection 
with low-income communities, and is included in new section 45(e) and 
section 48E(h) in this legislation. It draws on the success in 
California of a clean energy program that helps hundreds of thousands 
of low-income residents in multifamily housing enjoy the cost savings 
and environmental advantages of solar.
  This program provides allocated bonus credits for projects benefiting 
low-income residents, including multifamily housing, community solar, 
and individual low-income residential homeowners. The Committee intends 
that the program prioritize low-income individuals and communities 
throughout the selection process. Low-income individuals can benefit 
from this legislation in multiple ways, including in the form of lower 
electricity bills, reduction in locally harmful air pollution, 
inclusive economic opportunities through training and employment on 
such projects, and benefits to the community proven through active 
engagement and outreach to community members. Thus, in selecting 
projects for allocation, the Committee intends for the Secretary to 
take into account which projects demonstrate the greatest health and 
economic benefits for disadvantaged individuals (including benefits 
related to the ability to withstand extreme weather events); the 
greatest employment and wages for such individuals; and the greatest 
engagement with and outreach to such individuals, including through 
partnerships with local governments, community-based organizations, and 
Indian tribal governments.
  Additionally, this legislation is designed to provide maximum 
flexibility to the Secretary in designing an efficient application and 
allocation process to meet the needs of low-income residents. 
Specifically, the legislation is intended to allow residential rooftop 
providers to identify potential customers in qualifying census tracts 
and submit applications to serve these customers up-front, before these 
businesses have contractually engaged these customers. My understanding 
is that these businesses will need to know if they have received a 
credit allocation before they can offer the benefits of the credit to 
these customers so that businesses can provide customers accurate 
pricing information and cost savings to low-income customers.
  This legislation also makes several important additions to the 
property eligible under the section 48 investment tax credit and its 
successor credit, section 48E.
  The first is the addition of energy storage technologies. This 
provision originated as H.R. 1684, the Energy Storage Tax Incentive and 
Deployment, as advanced by Representatives Mike Doyle and Earl 
Blumenauer, and included in the GREEN Act and the Build Back Better 
Act. It is the Committee's intent that the technologies included in 
H.R. 1684, such as pumped hydropower, are considered energy storage 
technologies for this legislation.
  Pumped-storage hydroelectric facilities are sometimes called water 
batteries. Electricity is used to pump water from a lower to an upper 
reservoir. When needed, this water is then released and run through 
turbines to convert the stored energy back into electricity.
  The definition of energy storage technologies includes ``property . . 
. which receives, stores, and delivers energy for conversion to 
electricity'' under new section 48(c)(6)(A)(i). Thus, it is the 
Committee's intent such property not only include the two reservoirs as 
well as the pipe and pump to move the water uphill, but also the 
turbines and step-up transformer to convert the stored energy back into 
electricity.
  Additionally, relating to the coordination of the credit for energy 
storage technologies and the section 45 production tax credit, the 
Committee intends that a credit is allowed for energy storage 
technology under section 48 regardless of whether it is part of a 
facility for which a credit under section 45 is or has been allowed.
  The second is the addition of electrochromatic glass, also known as 
dynamic glass, to section 48(a)(3)(A)(ii). It is the Committee's intent 
that the basis for such property should include the cost of the glass 
itself including the devices, the wiring and other components necessary 
for the glass to change its light transmittance properties, as well as 
the window frame and the capitalized costs for the installation of 
these and any other related components.
  Additionally, this legislation creates new section 45W, the credit 
for qualified commercial clean vehicles, to incentivize clean vehicles 
and mobile machinery. In including mobile

[[Page H7665]]

machinery, the Committee intends to incentivize cleaner farm equipment, 
construction equipment, and other equipment. As the Secretary develops 
regulations or other guidance to carry out the purposes of this 
section, the Committee believes it is appropriate to consider industry 
standards when applying rules in the section that reference vehicles. 
For example, the Secretary may look established methods of determining 
equipment weight for purposes of determining credit limits based upon 
gross vehicle weights and may allow, as a substitute, other commonly 
used identification or serial numbers when administering the vehicle 
identification number requIrements.
  This legislation is historic, and I look forward to seeing the impact 
these, and the many other clean energy incentives contained in this 
bill, have on our carbon reduction goals in the coming years.
  Mr. NEAL. Madam Speaker, I yield 1\1/2\ minutes to the gentleman from 
New Jersey (Mr. Pascrell), who is always pleased to let us know what he 
is thinking.
  Mr. PASCRELL. Madam Speaker, I thank the chairman for yielding.
  Madam Speaker, the American people put Democrats in charge to raise 
our Nation from its knees--unless we have short memories.
  We are putting people over powerful interests. We are rebuilding our 
economy for working families. We are providing historically low 
healthcare premiums for nearly 12 million Americans, including over 
20,000 in my own district of New Jersey.
  We are making the single largest investment in clean energy to secure 
a livable future. Our planet is at the precipice of catastrophe. So we 
are combating climate change and creating 9 million jobs in the 
process.
  Not bad, Madam Speaker, not bad.
  Our bill includes legislation I happen to champion to expand zero-
emission nuclear energy and offshore wind, where New Jersey leads the 
way. I worked on a bipartisan basis on those two issues, and there is 
nothing said today about that by my friends on the other side.
  For years, Republicans sabotaged the IRS. The record is clear. They 
safeguarded loopholes to help a privileged few pay a pittance in taxes. 
And that ends today.
  Five years ago, Republicans passed a $2 trillion tax scam for the 
rich and the corporate tycoons. Today, we are closing the tax gap and 
providing tax fairness.
  Democrats are making prescription drugs affordable.
  Democrats are lowering healthcare costs.
  God bless our great country.
  Mr. BRADY. Madam Speaker, I include in the Record a letter from the 
Congressional Budget Office, which confirms this bill will actually 
increase the cost of new drugs.

                                                    U.S. Congress,


                                  Congressional Budget Office,

                                   Washington, DC, August 4, 2022.
     Re Additional Information About Prescription Drug Legislation

     Hon. Jason Smith,
     Ranking Member, Committee on the Budget,
     U.S. House of Representatives, Washington, DC.
       Dear Congressman: This letter provides additional 
     information that you and your colleagues requested about 
     subtitle I of the reconciliation recommendations of the 
     Senate Committee on Finance regarding prescription drug 
     legislation. You asked about how provisions involving 
     inflation rebates and the negotiation of drug prices would 
     affect launch prices for new drugs and the introduction of 
     new generic drugs. You also asked how a provision to 
     stabilize premiums as a part of the redesign of Medicare's 
     benefits would affect the federal budget and premiums.


  Effect of the Inflation-Rebate and Negotiation Provisions on Launch 
                                 Prices

       The Congressional Budget Office projects that the 
     inflation-rebate and negotiation provisions would increase 
     the launch prices for drugs that are not yet on the market 
     relative to what such prices would be otherwise. That effect 
     would primarily be driven by the inflation-rebate provisions 
     (sections 129101 and 129102), which would begin to apply to 
     prices within 12 months of a given drug's entering the 
     market. Under those provisions, manufacturers would have an 
     incentive to launch new drugs at a higher price to offset 
     slower growth in prices over time. The negotiation provision 
     (section 129001) would have less of an impact on launch 
     prices, CBO expects: Although the ceiling for a drug's 
     negotiated price is based on its price from a prior year, 
     negotiation could not occur until drugs were on the market 
     for a number of years--at least 7 for small-molecule drugs 
     and 11 for biologics.
       Higher launch prices would primarily affect spending for 
     drugs in the Medicaid program, CBO projects, because an 
     increase in that program's basic rebate brought about by the 
     higher launch prices would only partly offset those prices. 
     Higher launch prices would also tend to affect spending for 
     drugs covered by Part B of the Medicare program because that 
     program's payments for those drugs are based on the average 
     sales prices. Over time, slower price growth would attenuate 
     the effect of higher launch prices.
       In the commercial and Medicare Part D segments of the 
     market, spending would be less affected by higher launch 
     prices, CBO estimates, because manufacturers would have more 
     flexibility to manage rebates to maximize their revenues in 
     those sectors.


Effect of the Negotiation Provision on the Introduction of New Generic 
                                 Drugs

       CBO has not analyzed the effects of the negotiation 
     provision on the introduction of new generic drugs. In 
     projecting the effects of the negotiation provision, CBO 
     estimated the share of spending that would be subject to 
     negotiation each year and the average reduction in prices 
     that would stem from the negotiations. But the agency did not 
     analyze how the provision would affect prices or spending on 
     specific drugs, nor did it quantify any impact on the 
     introduction of new generic drugs.


             Effects of the Premium-Stabilization Provision

       Under the premium-stabilization provision (section 129201), 
     the federal government would subsidize any growth in 
     beneficiaries' base premiums for Medicare Part D exceeding 6 
     percent from one year to the next over the 2024-2029 period. 
     The provision subsequently would lower the base premium 
     percentage (the percentage of the average cost of standard 
     Part D coverage that is used to calculate beneficiaries' 
     premiums) to ensure that premiums did not grow by more than 6 
     percent between 2029 and 2030. That subsidy and subsequent 
     reduction in premiums would increase federal spending by 
     roughly $40 billion over the 2024-2031 period, CBO estimates. 
     Beneficiaries' spending on premiums would be lower under the 
     premium-stabilization provision than it would be without it.
       That estimate is an average effect among the possible paths 
     of premiums that CBO considered when modeling the uncertainty 
     of future outcomes. Under some of those paths, premiums would 
     grow by less than 6 percent a year, and the provision would 
     have no cost; under others, premiums would grow faster, and 
     the provision would generate costs.
       I hope this information is useful to you and your 
     colleagues. Please contact me if you have further questions.
           Sincerely,
                                                Phillip L. Swagel,
                                                         Director.
  Mr. BRADY. Madam Speaker, I yield 1 minute to the gentleman from 
Arizona (Mr. Schweikert), my colleague on the Committee on Ways and 
Means.
  Mr. SCHWEIKERT. Madam Speaker, for everyone here, this is a subsidy 
bill. And this is the classic difference between the left and the 
right. They are functionally subsidizing. We on the right actually want 
to change the market. We want competition.
  So I am going to pull out one very simple example. In here, we have 
$2.5 billion of subsidies for our ports to get greener and more 
efficient. But then the Democrats slip in language that says human-
operated, meaning you are not going to take on the unions, you are not 
actually going to make it more efficient, you are not going to actually 
embrace disruption and technology.
  We keep coming to the floor and talking about things that would make 
our ports greener, faster, more efficient, feed the supply chain--these 
electric rail cars, except you functionally just made them not happen.
  This is a subsidy for those unions, those folks who right checks to 
the left. You claim you are making the environment better and cleaner, 
but then you build the very barriers in the language that stop those 
good things from happening.
  Mr. NEAL. Madam Speaker, I yield 1\1/2\ minutes to the gentleman from 
Illinois (Mr. Danny K. Davis), one of the most talented members of the 
committee.
  Mr. DANNY K. DAVIS of Illinois. Madam Speaker, I associate myself 
with the remarks made by my colleagues relative to our tragic loss of 
Representative Walorski who was the ranking member of the subcommittee 
that I chair.
  Madam Speaker, I rise in strong support of the Inflation Reduction 
Act of 2022. This is the most transformative piece of legislation that 
I have seen. It lowers family healthcare costs, reduces drug and energy 
costs, makes the largest investment in addressing climate change in the 
history of this country, and cuts carbon emissions by 40 percent.

[[Page H7666]]

  This bill would create millions of good-paying, union jobs and 
stimulate economic growth and development across the Nation. It 
incentivizes manufacturing and reduces our reliance upon foreign-made 
products.
  This bill does what we have been trying to do for years, and that is, 
it empowers Medicare to negotiate the price of prescription drugs. 
Millions of seniors and disabled individuals will benefit from this 
provision alone, not to mention what the monthly cap on the price of 
insulin would do for millions of others.
  Madam Speaker, this bill would cut the deficit and lower inflation, 
will not cost the average taxpayer one additional cent, unless they 
earn $400,000 annually or more. One feature of this bill that I am 
especially proud of is the enhanced tax credit to bring solar and wind 
energy to low-income communities. This tax credit will assist these 
communities.
  Madam Speaker, this is a great bill, and I urge its passage.
  Mr. BRADY. Madam Speaker, I include in the Record a Congressional 
Budget Office report from this morning, while we were on the House 
floor, which confirms IRS audits will generate tens of billions of 
dollars for middle-class families making less than $400,000.

       CBO has received a number of questions regarding our 
     estimate of an amendment offered by Senator Crapo during the 
     floor debate on H.R. 5376 last weekend. That amendment, 
     #5404, would limit the use of additional funds for the 
     Internal Revenue Service. If the amendment had been adopted 
     none of the additional funds could have been used to audit 
     taxpayers with taxable incomes below $400,000.
       CBO did not complete a formal cost estimate in advance of 
     consideration of the amendment but the agency did provide the 
     following information to the Senate Budget Committee:
       CBO estimates that the amendment 5404 would have the 
     following effects:
       No effect on outlays in the one or ten year budget windows; 
     would reduce outlays in the five year budget window.
       No effect on revenues in the one year budget window; would 
     reduce the ``non-scorable'' revenues resulting from the 
     provisions of section 10301 in the five and ten year budget 
     windows.
       No effect on outlays after 2031 but would decrease the 
     ``non-scorable'' revenue resulting from the provisions of 
     section 10301 after 2031.
       CBO has not completed a point estimate of this amendment 
     but the preliminary assessment indicates that amendment 5404 
     would reduce the ``non-scorable'' revenues resulting from the 
     provisions of section 10301 by at least $20 billion over the 
     FY2022-FY2031 period.
       Thanks,

                                                 Leigh Angres,

                                  Director of Legislative Affairs,
                                      Congressional Budget Office.

  Mr. BRADY. Madam Speaker, I yield 1 minute to the gentleman from 
Pennsylvania (Mr. Kelly), my colleague from the Committee on Ways and 
Means.

                              {time}  1345

  Mr. KELLY of Pennsylvania. Madam Speaker, I thank my friend from 
Texas, and I hate to see him leave because he has been so productive.
  Madam Speaker, it is interesting. We had the talk and hear it going 
back and forth about what the IRS is not going to do. I would just tell 
my fellow citizens--and I am not going to talk to the other side 
because we shouldn't be doing that anyway.
  There is something wrong whenever we look at the money that is being 
spent to hire agents for enforcement. I would tell my fellow citizens: 
Be afraid. Be very afraid. If the events of this week don't shake you 
to the bottom as to what this government can do to you whenever it 
chooses to do it and however it chooses to do it, understand that this 
agency, the IRS, is the most feared agency in the United States 
Government. It is incredible the power that it wields.
  It is incredible that it is going to increase the number of 
enforcement officers. They are not coming in to help with the 
processing because all of us in Congress, including my friends on the 
other side, have been doing the work of the IRS for the IRS. They 
haven't been back to work full time for 2\1/2\ years.
  Madam Speaker, I urge my friends on both sides of the aisle to vote 
``no'' on this monstrosity that does not do anything about inflation 
but continues to harass hardworking American taxpayers.
  Mr. NEAL. Madam Speaker, I yield myself such time as I may consume.
  Madam Speaker, this is misinformation about the IRS. They need the 
funding to better serve the American people. The idea that, all of a 
sudden, there is an army of IRS agents that is coming after the 
American family doesn't stand up under the magnifying glass of critical 
analysis.
  Madam Speaker, I yield 1\1/2\ minutes to the gentleman from New York 
(Mr. Higgins), a really capable member of the Ways and Means Committee.
  Mr. HIGGINS of New York. Madam Speaker, the 1970 Clean Air Act was 
passed by a Democratic-led Congress and a Republican President after 
millions of Americans demanded change. Five decades later, a new 
generation of Americans is calling on Congress to act on our Nation's 
biggest challenges. The Inflation Reduction Act is not just a good 
climate bill; it is also a major achievement.
  To address the climate crisis, it makes a $369 billion investment 
toward decarbonizing our Nation. The bill addresses environmental 
justice. Everyone should benefit from a cleaner environment, especially 
those who are vulnerable to disease because of where they live.
  The bill finally helps Medicare negotiate a better deal on drug 
prices. This provision will save lives and help seniors enjoy their 
retirement without fear of poverty due to the cost of their 
medications.
  Madam Speaker, I urge my colleagues to support this legislation, 
which is vital to our Nation's future.
  Mr. BRADY. Madam Speaker, I include in the Record the following 
report from 2020 from a group that tracks government spending, which 
details how the IRS is currently armed with 4,600 guns and 5 million 
rounds of ammunition. That is not fear-mongering; these are the facts.

 IRS Has 4,600 Guns and Five Milion Rounds of Ammo: Will Dem Bill Grow 
                                Arsenal?

       The IRS has 4,600 guns and five million rounds of 
     ammunition according to a report from OpenTheBooks published 
     in 2020. With Democrats on the verge of passing $80 billion 
     in additional funding to facilitate the hiring of 87,000 new 
     agents, how much will this arsenal grow?
       The Democrats' push to increase the size and power of the 
     IRS has significant criminal justice and basic due process 
     ramifications.
       An OpenTheBooks report titled The Militarization of U.S. 
     Executive Agencies shows that, even without the proposed $80 
     billion increase in funding, the IRS Criminal Investigation 
     Division (IRS-CI) is already heavily armed at the expense of 
     the American taxpayer.
       The current 4,600-gun stockpile includes:
       3,282 pistols
       621 shotguns
       539 rifles
       15 fully automatic firearms
       4 revolvers
       According to the Government Accountability Office the 
     ammunition breakdown is as follows:
       Pistol and revolver rounds: 3,151,500
       Rifle rounds: 1,472,050
       Shotgun rounds: 367,750
       Fully automatic firearm rounds: 56,000
       When OpenTheBooks directly asked the IRS for an accounting 
     of its gun locker, the agency responded, ``We don't have one 
     [an inventory], but could create one for you, if important.''
       There are seven reasons to be concerned about the IRS 
     having more power, more money, and more guns:


 1. irs fails to ensure armed agents receive required firearms training

       In order to carry or use an IRS-owned weapon, agents must: 
     engage in handgun firing training at least once each quarter, 
     shoot at least the minimum of 75 percentage points on the 
     firearms qualifying test using the issued handgun during two 
     nonconsecutive quarters, participate in biannual firearms 
     building entry exercises, participate in an annual briefing 
     on firearms safety and security policies and IRS-CI's 
     directives and procedures regarding the safe handling and 
     storage of firearms, and participate in a briefing each 
     quarter regarding the policy of discharging a firearm at a 
     moving vehicle.
       IRS-CI's National Criminal Investigation Training Academy 
     (NCITA) is responsible for implementing the formalized 
     firearms training and qualification program nationwide. This 
     includes developing the firearm qualification requirements 
     they are expected to meet and the training special agents 
     will undergo. Despite these requirements, CI agents have 
     regularly failed to stay up to date on training or report 
     incidents, endangering the taxpayers they are supposed to 
     protect.
       According to reports from the Treasury Inspector General 
     for Tax Administration (TIGTA), the IRS has repeatedly failed 
     to ensure that procedures relating to firearms are properly 
     followed:
       ``there is no national-level review of firearms training 
     records to ensure that all special agents meet the 
     qualification requirements.''
       Special agents are required to surrender their weapons when 
     they fail to participate

[[Page H7667]]

     in this training, however this often does not happen.
       As noted by the Inspector General:
       ``However, there is currently little consequence for 
     special agents who fail to meet the training requirements 
     listed on the checklist.''
       The Inspector General noted the IRS failed to secure the 
     firearms of those who did not meet their requirements:
       ``controls did not ensure that CI personnel properly 
     secured firearms when special agents failed to meet the 
     biannual standard qualification requirement. CI was only able 
     to provide evidence that firearms were surrendered in nine of 
     the 27 instances when special agents did not qualify. The 
     Criminal Investigation Management Information System was only 
     updated to reflect the custody change in four of those nine 
     instances.
       The Inspector General noted that the IRS lapses torpedo its 
     ability to effectively try cases:
       ``Court decisions in the past have held law enforcement 
     entities liable because their law enforcement agents did not 
     have training that reflected the environment that they would 
     likely encounter, such as training involving moving targets 
     and low-light conditions. Other court decisions underscored 
     the importance of properly documenting firearms training. One 
     decision dismissed the claims against a law enforcement 
     entity that maintained thorough records that showed the law 
     enforcement personnel had been trained. Another decision 
     upheld a jury's conclusion that undocumented police training 
     did not constitute adequate training.''
       The IRS failure to conduct proper internal oversight of its 
     weapons could have grave consequences for the public. As 
     noted by the Inspector General:
       ``If there is insufficient oversight, special agents in 
     possession of firearms who are not properly trained and 
     qualified could endanger other special agents and the 
     public.''


  2. irs agents accidentally fire their weapons more often than they 
                        intentionally fire them

       A TIGTA report found that special agents at the IRS 
     Criminal Investigation Division (IRS-CI) accidentally fired 
     their weapons more often than they intentionally fired them:
       ``According to documentation provided by all 26 CI field 
     offices, the NCITA, and the TIGTA OI, there were a total of 
     eight firearm discharges classified as intentional use of 
     force incidents and 11 discharges classified as accidental 
     during FYs 2009 through 2011.''


          3. irs conceals details of accidental gun discharges

       The agency's lackadaisical approach to firearm safety has 
     led to easily preventable accidents. The Inspector General 
     cryptically references IRS accidental discharges that caused 
     ``property damage or personal injury'':
       ``In three of the four accidental discharges that were not 
     reported, the accidental discharges may have resulted in 
     property damage or personal injury.''
       The details of these incidents are--for some reason--
     redacted in the report:
       IRS-CI management is required to be notified when a special 
     agent discharges their weapon. CI must report all accidental 
     discharge incidents externally to the TIGTA OI and internally 
     to the NCITA and the Director of Field Operations. Despite 
     these directives, CI did not always properly disclose 
     accidental discharges:
       ``we found that four accidental discharges were not 
     properly reported. This included two that were not reported 
     to both to the TIGTA OI and the NCITA. one that was not 
     reported to the TIGTA OI, and one that was not reported 
     internally to the NCITA.''


4. IRS AGENTS DO NOT ALWAYS UNDERGO REMEDIAL TRAINING AFTER DISCHARGES 
                        DUE TO AGENT NEGLIGENCE

       Compounding their mistakes, agents did not always provide 
     remedial training when an accidental discharge occurred. Even 
     when they did undergo training, the standards remained wildly 
     inconsistent. The Inspector General found that:
       ``two of the four use of force coordinators stated that 
     they may require the special agent to participate in some 
     type of remedial training, one stated that the special agent 
     would be counseled, and one stated that there would be no 
     additional training required.''


       5. IRS HAS A HISTORY OF VIOLATING BASIC DUE PROCESS RIGHTS

       In a 2017 report, the IRS-CI was shown to have regularly 
     violated taxpayers' rights and skirted or ignored due process 
     requirements when investigating taxpayers for allegedly 
     violating the existing $10,000 currency transaction reporting 
     requirements
       TIGTA found that only 8 percent of investigations uncovered 
     violations of tax law. In many cases, IRS-CI had not 
     considered reasonable explanations from those investigated, 
     property owners were not adequately informed of their rights 
     nor informed of seizure of their property, and outcomes in 
     cases lacked consistency, violating the Eighth Amendment to 
     the Constitution.


              6. IRS HAS APPALLING EVIDENCE STORAGE HABITS

       The IRS Criminal Investigation Division (IRS-CI) was 
     repeatedly found to leave critical evidence sitting around in 
     break rooms, hallways and stacked outside cubicles, according 
     to a report by the Treasury Inspector General for Tax 
     Administration (TIGTA). In addition, the report found that CI 
     offices did not maintain an Evidence Access Control Log to 
     record access to areas where evidence is stored:
       During our walkthroughs at the CI offices, we observed that 
     some sites had evidence placed in hallways. stacked outside 
     cubicles, and in break rooms. In addition, seven of the nine 
     offices did not keep grand jury material in a separate, 
     secure area. The grand jury material was intermingled with 
     non-grand jury evidence and other case file information.
       The agency's careless approach to evidence storage has 
     grave ramifications, as noted by the Inspector General:
       In order for a seized item to be admissible as evidence, it 
     is necessary to prove that the item is in the same condition 
     as when it was seized. If evidence is not stored properly, 
     evidence may have been inappropriately disclosed, lost, 
     tampered with, or stolen. In addition, the chain of custody 
     could be called into question, which could result in the item 
     being deemed inadmissible in court.
       The report suggests the IRS is an outlier in terms of its 
     sloppy handling of evidence, compared to other federal law 
     enforcement agencies:
       In addition, we interviewed representatives from two other 
     Federal law enforcement agencies to gain an understanding of 
     how they maintained their chain of custody. It was apparent 
     from these interviews that both Federal agencies have an 
     extensive chain of custody process. For example, each agency 
     limits access to the locked evidence room, which is 
     maintained by an evidence custodian. If evidence needs to be 
     removed from the room, an agent must gain access through the 
     evidence custodian and a record of that access is maintained. 
     This process helps ensure that evidence does not become lost 
     or misplaced and helps keep the chain of custody from being 
     broken.
       Each IRS-CI special agent has the authority to investigate, 
     inquire, and receive information. Of the investigative 
     techniques available to agents, one of the most frequently 
     used is the authority to conduct searches and issue search 
     and seizure warrants.
       The Federal Government is responsible for properly 
     maintaining the chain of custody for any seized items. CI 
     agents must be able to prove it is the same item that was 
     seized and that the item is in the same condition as when it 
     was seized in order for that seized item to be admissible as 
     evidence.
       Grand jury-related evidence must be kept separate from 
     other non-grand jury evidence. Despite these clear 
     directives, the CI has routinely ignored protocol, violating 
     the rights of the taxpayers they are supposed to protect.


      7. IRS HAS CONDUCTED MANY ARMED RAIDS ON INNOCENT AMERICANS

       In the late 1990s, the IRS came under scrutiny for the 
     harsh tactics it used to enforce the tax code. With tens of 
     billion in new funding, it is not hard to see how these 
     abuses could return.
       A 1998 article by Washington Post noted many small business 
     owners were harassed by the IRS, only for the agency to find 
     no evidence of wrongdoing.
       ``An Oklahoma tax-return preparer, a Texas oilman and a 
     Virginia restaurateur told lawmakers how raiding parties of 
     armed agents from the IRS Criminal Investigation Division 
     barged into their homes or offices, frightened their 
     employees and families--and ultimately came up empty-
     handed.''
       ``Two of the men said they later found that former 
     employees had precipitated the raids, and that the IRS had 
     done little or no checking on their informants' credibility. 
     The third witness said he never could determine why he was 
     targeted.''
       One man described over a dozen armed IRS officials raiding 
     his offices, seizing business documents, and harassing 
     clients and employees:
       ``Richard Gardner, whose company prepares 4,500 to 6,000 
     tax returns each year, said that one morning in 1995, he was 
     called out of a meeting. He found 15 IRS agents and a half-
     dozen U.S. marshals in his lobby, ``all armed and wearing 
     those jackets that say in bright letters IRS' or U.S. 
     Marshal' on the back.''
       ``They seized his client records, computers, personal 
     papers and other files, he said, and held them for two years 
     while the IRS investigation continued. Gardner was able to 
     buy new computers and continue in business, but the damage to 
     his business was extensive. He said IRS agents went to 
     clients and demanded they wear hidden microphones when 
     meeting with Gardner; they hauled his wife before a grand 
     jury; and his employees were told they would be able to buy 
     his business cheaply because he would be out of business 
     soon.''
       These were not isolated cases. A 1998 article by the New 
     York Times described ``military style raids'' by IRS agents 
     against taxpayers who were accused of nonviolent behavior
       The Senate Finance Committee held a series of IRS oversight 
     hearings in 1998. Among many witnesses to abuses carried out 
     by armed IRS agents, a Virginia restaurant owner testified 
     the following on April 29, 1998:
       ``Armed agents, accompanied by drug-sniffing dogs, stormed 
     my restaurants during breakfast, ordered patrons out of the 
     restaurant, and began interrogating my employees.
       The IRS impounded my records, my cash registers, and my 
     computers.''

[[Page H7668]]

       ``When the raid occurred at my home, the front door was 
     torn from the hinges, my dogs were impounded, along with my 
     safe and 12 years of my personal income tax returns and 
     supporting documents.''
       Giving more money, power and guns to an agency with a 
     terrible firearms safety record and a terrible due process 
     record is alarming to law-abiding Americans.

  Mr. BRADY. Madam Speaker, I yield 1 minute to the gentleman from 
Pennsylvania (Mr. Smucker).
  Mr. SMUCKER. Madam Speaker, there are so many things wrong with the 
policies in this bill. It will certainly punish Americans' pocketbooks 
through record-high inflation, new taxes, and an army of IRS agents. It 
can get even worse.
  This drug price setting regime in the bill, which I want to speak 
about briefly, may very well put American lives at risk. The CBO 
agreed. Fewer drugs will be developed as a result of the policies in 
this bill.
  According to a study from the University of Chicago, government price 
controls in the bill will block 342 new cures from reaching market over 
the coming decades. That means that our constituents and family members 
who are battling diseases like cancer or Alzheimer's may well be left 
with no hope of finding a cure.
  The university estimates that blocking these cures will collectively 
take 330 million years off of Americans' lives. That is 1 year per 
American, which, by the way, is a toll 31 times worse than the COVID-19 
pandemic.
  American innovation and ingenuity got this country out of the COVID-
19 pandemic. This bill abandons free enterprise in favor of socialism 
and will cost the taxpayer too many dollars and cancer patients too 
many years.
  Mr. NEAL. Madam Speaker, a reminder that there are, I believe, almost 
600,425 Medicare beneficiaries who have diabetes in Pennsylvania. It is 
important that the bill that we have caps insulin costs.
  Madam Speaker, I yield 1\1/2\ minutes to the gentlewoman from Alabama 
(Ms. Sewell), a terrific member of the committee.
  Ms. SEWELL. Madam Speaker, I rise today in strong support of the 
Inflation Reduction Act.
  This transformational legislation will lower healthcare costs for 
millions of Americans and thousands of Alabamians by extending ACA tax 
credits for an additional 3 years and reducing the prescription drug 
costs for our seniors by allowing HHS, for the first time, to negotiate 
drug prices with pharmaceutical companies and capping out-of-pocket 
drug costs to $2,000 per year. This is a big deal for American families 
and especially the families that I represent in Alabama.
  This bill is also the single largest climate investment in America's 
history. This bill includes my Carbon Capture and Sequestration 
Expansion Act that will extend the 45 credit eligibilities for carbon 
capture projects to 2023.
  When I think about all the great things that are in this particular 
bill, it is truly transformational for the people that I represent and 
for the American people.
  Madam Speaker, I urge my colleagues to vote in favor of this bill. 
Let's put people first over politics.
  Mr. BRADY. Madam Speaker, I include in the Record the following Joint 
Committee on Taxation analysis that shows that American manufacturers 
are hardest hit by the Democrats' made in America tax--$200 billion--
and they will pay over half of that tax.

                                    Congress of the United States,


                                  Joint Committee on Taxation,

                                  Washington, DC, August 11, 2022.

                               Memorandum

     To: Redacted
     From: Thomas A. Barthold
     Subject: Revenue Estimate
       This memorandum is in response to your request for an 
     estimate of how the burden of the corporate minimum financial 
     statement income tax as contained in section 10101 of an 
     amendment in the nature of a substitute to H.R. 5376. ``An 
     Act to Provide for Reconciliation Pursuant to Title II of S. 
     Con. Res. 14'' as passed by the Senate on August 7, 2022, 
     would fall across different industrial sectors.
       Business income tax returns ask taxpayers to report the 
     industry in which they are primarily engaged, identifying the 
     industry by the code numbers established under the North 
     American Industrial Classification System (``NAICS code''). 
     This is self-reported and the Internal Revenue Service does 
     not verify the accuracy of the classification stated by the 
     taxpayer. The NAICS code system allows data to be aggregated 
     at different levels of general categorization. Two-digit 
     codes are the broadest categorization. For example, code 31 
     encompasses all manufacturing. As we project that only 
     approximately 150 taxpayers annually will be subject to the 
     proposed book minimum tax, in the accompanying table we 
     generally report results by two-digit reporting to protect 
     the privacy of the tax return data on which we base our 
     analysis.
       We estimate the corporate minimum financial statement 
     income tax as contained in the amendment in the nature of a 
     substitute to H.R. 5376 as passed by the Senate would have 
     the following effect on Federal fiscal year budget receipts.

                                                                      FISCAL YEARS
                                                                  [Billions of Dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------
    2022          2023          2024          2025          2026          2027          2028          2029          2030          2031         2022-31
--------------------------------------------------------------------------------------------------------------------------------------------------------
                     34.7          34.3          22.0          17.7          18.7          20.8          22.8          24.7          26.7         222.2
--------------------------------------------------------------------------------------------------------------------------------------------------------
NOTE: Details may not sum to totals due to rounding.

                                    Congress of the United States,


                                  Joint Committee on Taxation,

                                                   Washington, DC.
     To: Redacted
     Subject: Revenue Estimate
       The following table shows the estimate of the share 
     distribution of additional tax under the corporate minimum 
     financial statement income tax imposed by the amendment in 
     the nature of a substitute to H.R. 5376 as passed by the 
     Senate. Specifically, the table shows the percentage share of 
     the additional tax attributed to NAICS code during the 2022-
     2031 Federal fiscal year budget period.

 PERCENTAGE SHARE OF MINIMUM TAX ON ADJUSTED FINANCIAL STATEMENT INCOME
                       [By Industrial NAICS Code]
------------------------------------------------------------------------
                                                            Share of
           2-Digit or 3-Digit NAICS Sector               Additional Tax
------------------------------------------------------------------------
31 All Manufacturing.................................       52.0 percent
  325 Chemical Manufacturing.........................       17.3 percent
  All Other Manufacturing............................       34.7 percent
42 Wholesale Trade...................................        9.9 percent
44 Retail Trade......................................        4.6 percent
51 Information.......................................       10.7 percent
55 Management of Companies (Holding Companies).......       10.5 percent
All Other Industries.................................       12.3 percent
------------------------------------------------------------------------
    Total............................................      100.0 percent
------------------------------------------------------------------------
Notes: Details may not sum to totals due to rounding. Industries with
  fewer than 10 observations are not included on the table.

  Mr. BRADY. Madam Speaker, I yield 1 minute to the gentleman from 
North Carolina (Mr. Murphy).
  Mr. MURPHY of North Carolina. Madam Speaker, I rise in opposition to 
this reckless bill today. I want to speak specifically to one issue, 
and that is medicine.
  As a practicing physician, I have seen miraculous curative 
advancements made in medicine over the last 15 years. This partisan 
package will destroy medical innovation and cripple independent private 
physicians. Up to 342 new lifesaving drugs will be prevented by this 
bill.
  We all agree that the cost of medicine is way too high in this 
country, but instead of attacking the real causes, we are now going to 
be shifting Medicare dollars away from doctors, those who actually take 
care of patients, and give them to insurance companies and Green New 
Deal policies.
  Some physicians will see, on average, a 40 percent reduction in 
reimbursement. Given the constant threats of Medicare cuts for 
physicians, who the hell would want to practice medicine or could 
afford to practice medicine in this country anymore?
  This scheme will have long-lasting negative impacts on patients, 
physicians, and the solvency of Medicare, and it will set a dangerous 
precedent for future medicine to use Medicare as a piggy bank to 
subsidize unrelated policies.
  Madam Speaker, I urge my colleagues to vote ``no'' on this bill.

[[Page H7669]]

  

  Mr. NEAL. Madam Speaker, I yield 1\1/2\ minutes to the gentlewoman 
from Washington (Ms. DelBene), who is well known for her work in the 
renewable energy field.
  Ms. DelBENE. Madam Speaker, Congresswoman Jackie Walorski was a 
friend, and I send my deepest condolences to her family and the 
families of Zackery Potts and Emma Thomson.
  Madam Speaker, the Inflation Reduction Act is nothing less than 
historic and shows our constituents that governance can still work for 
them.
  The bill extends the Affordable Care Act insurance subsidies that 
have saved 13 million Americans an average of $800 a year on health 
coverage.
  It will enable the U.S. to cut greenhouse gas emissions by 40 percent 
by 2030 through investments like my clean hydrogen provision and make 
it more affordable for families to purchase energy and cost-saving 
products like electric vehicles and solar panels.
  These are provisions that the New Democrat Coalition and I have been 
calling for from the beginning. For our seniors, the bill will lower 
the costs of prescription drugs by allowing Medicare to negotiate lower 
prices and will cap out-of-pocket drug spending at $2,000 annually. 
These are tangible benefits for Americans.
  The legislation is fully paid for by ensuring corporations pay their 
fair share and providing the IRS with the resources it needs after 
decades of Republican-driven budget cuts.
  Madam Speaker, I urge my colleagues to support this bill. I remind my 
colleagues that there are 533,775 Medicare beneficiaries with diabetes 
in North Carolina, but the gentleman remains against this bill capping 
insulin costs and Medicare at $35 per month.
  Mr. BRADY. Madam Speaker, I include in the Record the following 
letter of opposition, which represents America's independent natural 
gas and oil production industry, which says this bill will only 
exacerbate--make worse--our Nation's energy crisis.

                                                  August 11, 2022.
     Hon. Nancy Pelosi,
     Speaker, House of Representatives,
     Washington, DC.
     Hon. Kevin McCarthy,
     Republican Leader, House of Representatives,
     Washington, DC.
       Dear Speaker Pelosi and Leader McCarthy: The undersigned 
     trade associations, representing thousands of businesses 
     across the United States that collectively employ millions of 
     Americans, write to express our opposition to the Inflation 
     Reduction Act (IRA) as passed by the U.S. Senate. Further, we 
     write to urge you to reconsider policies within the 
     legislation before proceeding.
       The United States has experienced its second consecutive 
     quarter of negative GDP growth, and American consumers are 
     facing record high inflation. We share the goal of addressing 
     climate change, as evidenced in the policies we support and 
     in the actions that we take every day. However, the 
     considerable tax increases and new government spending in the 
     IRA amount to the wrong policies at the wrong time.
       We are also facing the most significant global energy 
     crisis since the 1970's, and U.S. energy security--and that 
     of our strategic allies abroad--is being put to the test. 
     Further, U.S. energy costs have increased 40 percent over the 
     past twelve months, creating a serious strain on American 
     household incomes.
       With these current conditions as the backdrop for this 
     legislation, there are several specific policies included in 
     the IRA which are particularly troubling and deserve re-
     consideration. We would like to draw your attention to three 
     such provisions:
       1. The IRA imposes a new corporate minimum tax, increasing 
     taxes on Americans by more than $300 billion over the next 10 
     years. As President Obama noted in 2009, ``the last thing you 
     want to do is raise taxes in the middle of a recession.''
       2. The IRA imposes an $11.7 billion tax on crude oil and 
     petroleum products. At a time of record-high energy prices, 
     Congress should not add additional costs on American energy 
     companies competing globally.
       3. The IRA imposes additional constraints on the ability of 
     companies to develop and produce the energy that Americans 
     need to fuel our economy and strengthen our energy security. 
     This includes increased fees on domestic production and the 
     establishment of a new $6.3 billion natural gas tax.
       Finally, the IRA fails to address permitting reform, which 
     is desperately needed and is essential to effectively deliver 
     affordable, reliable energy to consumers in a growing 
     economy.
       To date, neither the House nor the Senate have introduced 
     comprehensive permitting reform legislation. We urge Congress 
     to quickly consider and pass permitting reform without delay.
       For the above-stated reasons, we express our opposition to 
     the IRA and request that you reconsider passage of this 
     legislation.
           Sincerely,
       American Petroleum Institute; American Exploration and 
     Production Council; American Fuel & Petrochemical 
     Manufacturers; Independent Petroleum Association of America; 
     Energy Workforce & Technology Council; Plumbing-Heating-
     Cooling Contractors--National Association; Manufacture 
     Alabama; The Coalbed Methane Association of Alabama; Arkansas 
     Independent Producers and Royalty Owners; Arkansas Oil 
     Marketers Association; California Independent Petroleum 
     Association; Colorado Oil and Gas Association; West Slope 
     Colorado Oil & Gas Association; Colorado Wyoming Petroleum 
     Marketers Association; Associated Industries of Florida; 
     Florida Independent Petroleum Producers Association; Florida 
     Natural Gas Association; Florida Petroleum Marketers 
     Association; Florida Propane Gas Association; Florida State 
     Hispanic Chamber of Commerce.
       Florida Transportation Builders Association; Floridians for 
     Better Transportation; The James Madison Institute; Georgia 
     Association of Convenience Stores; Georgia Mining 
     Association; Illinois Fuel Retails Association; Illinois 
     Manufacturers Association; Illinois Retail Merchants 
     Association; Chemistry Industry Council of Illinois; Fuel 
     Iowa; Kansas Independent Oil & Gas Association; Louisiana 
     Association of Business and Industry; Louisiana Oil and Gas 
     Association; Michigan Association of Convenience Stores; 
     Michigan Oil and Gas Association; Michigan Petroleum 
     Association; Minnesota Service Station & Convenience Store 
     Association; Associated Industries of Missouri; New Mexico 
     Business Coalition; New Mexico Oil and Gas Association.
       North Carolina Chamber; North Carolina Petroleum & 
     Convenience Marketers Association; North Dakota Petroleum 
     Council; Ohio Energy and Convenience Association; Ohio 
     Manufacturers Association; Ohio Oil and Gas Association; The 
     Petroleum Alliance of Oklahoma; Pennsylvania Chamber of 
     Business & Industry; Pennsylvania Grade Crude Oil Coalition; 
     Pennsylvania Independent Oil & Gas Association; Pennsylvania 
     Independent Petroleum Producers; Pennsylvania Manufacturers 
     Association; South Dakota Petroleum and Propane Marketers 
     Association; Texas Alliance of Energy Producers; Texas 
     Independent Producers & Royalty Owners Association; Permian 
     Basin Petroleum Association; Associated Builders & 
     Contractors West Virginia; Petroleum Association of Wyoming.

  Mr. BRADY. Madam Speaker, I yield 1 minute to the gentleman from 
Georgia (Mr. Clyde).
  Mr. CLYDE. Madam Speaker, one of the most egregious provisions in 
this socialist spending bill includes providing $80 billion to the IRS 
for hiring 87,000 new agents to audit hardworking Americans.
  After my small business was wrongfully targeted by the IRS back in 
2013, I know a thing or two about how burdensome and costly battles 
with the IRS can be. I will tell you, it is a grueling fight that most 
Americans simply cannot endure.
  This is precisely why I introduced an amendment to eliminate the IRS 
enforcement provision in this severely misguided legislation. The 
Democrats rejected it, confirming their intent to supercharge IRS 
audits in order to pay for their Big Government socialist agenda.
  This week has also proven just how corrupt our Federal agencies are 
and the length they are willing to go to persecute political opponents.
  Think about it: If the left will weaponize the FBI to raid President 
Trump's personal residence, they will surely weaponize the IRS' new 
87,000 agents, many of whom will be trained in the use of deadly force, 
to go after any American citizen.
  Madam Speaker, I urge my colleagues to vote ``no'' on supersizing and 
weaponizing the IRS against the American people.
  Mr. NEAL. Madam Speaker, I yield 1\1/2\ minutes to the gentlewoman 
from California (Ms. Chu), whose work in the arena of renewable energy 
is well known.
  Ms. CHU. Madam Speaker, I rise today in strong support of the 
Inflation Reduction Act.
  This historic legislation will make real, tangible differences in the 
lives and livelihoods of people back home in southern California and 
across the Nation. It is imperative we pass this once-in-a-generation 
bill today.
  The American people are struggling to afford medications, health 
insurance, and their energy expenses, all while battling the impacts of 
climate change every day. They are desperate for Congress to take 
action to address the real challenges they are facing in their everyday 
lives.
  This is exactly what this bill does. It lowers the costs of 
prescription drugs for seniors to no more than $2,000 yearly. It curbs 
the rising costs of utilities

[[Page H7670]]

and creates good-paying jobs nationwide in the process. It makes 
healthcare more affordable for millions of Americans by shoring up the 
Affordable Care Act.
  Today, we are going to combat climate change, ensure corporations pay 
their fair share, and reduce prices for workers and families. In fact, 
we are making the largest and most ambitious investment in clean and 
renewable energy in our Nation's history, finally reversing years of 
underinvestment at the IRS and building a fairer tax system that will 
invest in workers without raising taxes on families and small 
businesses.
  Today, we are delivering on a promise made to Americans by passing 
this critical bill. We must commit to putting people over politics. 
Madam Speaker, I urge a ``yes'' vote on this bill.
  Mr. BRADY. Madam Speaker, may I inquire how much time Chairman Neal 
and I have remaining.
  The SPEAKER pro tempore. The gentleman from Texas has 15 minutes 
remaining. The gentleman from Massachusetts has 9\1/2\ minutes 
remaining.
  Mr. BRADY. Madam Speaker, I include in the Record this Penn Wharton 
School of Business analysis that debunks the Inflation Reduction Act, 
showing how this bill will reduce inflation by less than a tenth of 1 
percent in the first 5 years, with zero impact on inflation after that.

                          [From Penn Wharton]

   Senate-Passed Inflation Reduction Act: Estimates of Budgetary and 
                         Macroeconomic Effects


                               key points

       PWBM estimates that the Senate-Passed Inflation Reduction 
     Act, as written, would reduce cumulative deficits by $264 
     billion over the 10-year budget window.
       The Act would have no meaningful effect on inflation in the 
     near term but would reduce inflation by around 0.1 percentage 
     points by the middle of the first decade. These point 
     estimates, however, are not statistically different from 
     zero, indicating a low level of confidence that the 
     legislation would have any measurable impact on inflation.
       Relative to current law, the Act would slightly reduce GDP 
     in the first decade while slightly increasing GDP by 2050. 
     These estimates include the impact of debt reduction, carbon 
     reduction, and tax incentives on investments and working 
     hours.
       Most, but not all, of the tax increases fall on higher 
     income households. However, future generations, including 
     higher-income households, gain from the improved economy, 
     including a reduction in carbon emissions.


                              introduction

       On Sunday August 7th, the U.S. Senate passed the Inflation 
     Reduction Act of 2022 under FY2022 budget reconciliation 
     instructions. PWBM recently analyzed a previous version of 
     the bill. We also compared our analysis against that of the 
     Joint Tax Committee and Congressional Budget Office who use 
     an older economics baseline from July 2021.
       In this brief, PWBM analyzes the budgetary, macroeconomic, 
     and distributional effects of the final Senate passed 
     version. In line with the previously released version of the 
     bill, the Act provides for new spending and tax incentives 
     related to the adoption of clean energy technology, both at 
     the industrial and consumer level. It extends a temporary 
     expansion of Affordable Care Act (ACA) health insurance 
     subsidies for an additional two years. To offset these 
     deficit-increasing initiatives, the bill imposes new taxes on 
     certain businesses, reduces government outlays on 
     prescription drugs through pricing reforms. It also provides 
     for new IRS funding which PWBM estimates would increase 
     revenue collections above new outlays.


         provision descriptions and estimated budgetary effects

       The final version of the Act makes several key amendments 
     to the version we previously analyzed. First, the new 
     corporate minimum tax no longer restricts the tax benefit of 
     accelerated depreciation, and private equity firms are 
     exempted from the tax. Second, the carried interest provision 
     was removed. Third, new revenue raising provisions (a tax on 
     stock buybacks and a restriction on pass-through loss 
     deductions) were added. Fourth, due to Senate rules, drug 
     price inflation caps for private insurance plans were 
     removed.
       More specifically, the Act proposes the following policy 
     changes:
       Extension of expanded ACA subsidies. Extends the temporary 
     expansion of Premium Tax Credits through 2025. The expansion, 
     which offers eligibility to households above 400 percent of 
     the poverty line, is scheduled to expire at the end of 2022 
     under current law.
       Climate and energy provisions. Includes tax rebates and 
     credits to lower energy costs for households; tax credits, 
     research, loans, and grants to increase domestic 
     manufacturing capacity for wind turbines, solar panels, 
     batteries, and other essential components of clean energy 
     production and storage; tax credits to reduce carbon 
     emissions; programs to reduce the environmental impact of 
     agriculture; a new fee on methane emissions; and more.
       Minimum tax on corporations' book income. Creates a new 15 
     percent corporate alternative minimum tax based on the 
     financial statement income of corporations with at least $1 
     billion in such income. Allows for bonus and accelerated 
     depreciation deductions when calculating taxable book income.
       Tax on share repurchases. Imposes a new 1 percent tax on 
     corporations' net repurchase of stock.
       Extension of excess noncorporate losses limitation. Extends 
     the limitation on the deduction of pass-through losses 
     through tax year 2028, which under current law is scheduled 
     to expire at the end of 2026. The maximum deductible loss, 
     which is indexed to inflation, is $540,000 for married 
     taxpayers in 2022.
       Prescription drug price reforms. Allows Medicare to 
     negotiate the price of certain prescription drugs; limits the 
     price growth of certain drugs paid covered under Medicare to 
     inflation; repeals the implementation of a ``rebate rule'' 
     scheduled to increase drug-related Medicare outlays beginning 
     in 2027; redesigns Medicare Part D benefit formula and caps 
     out-of-pocket costs for beneficiaries.
       IRS funding. Appropriates approximately $80 billion over 
     the next decade for IRS enforcement activities including the 
     hiring and training of new auditors, IT systems 
     modernization, and taxpayer services.
       Table 1 presents PWBM's estimate of conventional budgetary 
     effects over the 10-year budget window defined in the FY2022 
     reconciliation instructions. We estimate the Act would reduce 
     cumulative noninterest deficits by $264 billion from FY2022 
     through FY2031.


                     estimated effects on inflation

       We estimate that the Inflation Reduction Act as passed by 
     the Senate would have a very modest impact on inflation over 
     the next decade. The Act produces some upward pressure on 
     prices in 2023 and 2024, but its effects are too small to 
     meaningfully affect measured the Personal Consumption 
     Expenditures (PCE) inflation rate as reported by the Bureau 
     of Economic Analysis. The Act would reduce annual inflation 
     by around 0.1 percentage points in about five years, once 
     major deficit-reducing provisions of the legislation are 
     fully implemented, but the Act would have no measurable 
     impact on inflation after 2028. All these point estimates are 
     not statistically different from zero, indicating a low level 
     of confidence that the legislation would have a measurable 
     impact on inflation.


                      other macroeconomic effects

       Government spending rises because of the climate-related 
     spending and the extension of the ACA subsidies are greater 
     than the savings from prescription drug pricing reforms. 
     However, additional tax revenues are greater than the 
     spending increases, which leads to a decrease in government 
     debt. Government debt goes down by 4.1 percent in 2040 and 8 
     percent in 2050, which crowds-in investment in productive 
     private capital.
       The provisions which increase taxes on business activity 
     lower the after-tax return to investment, which offsets the 
     positive effects on investment from lower government debt. 
     Net of these two effects, private productive capital declines 
     by 0.2 percent in 2031, is unchanged in 2040 and increases by 
     0.3 percent in 2050. The drop in productive capital in 2031 
     leads to a 0.1 percent decline in GDP.
       Nonetheless, as government debt declines, private capital 
     increases by 0.3 percent by 2050, and workers become more 
     productive. Higher worker productivity is reflected in wages 
     that increase by 0.1 percent in the same year. Moreover, the 
     increase in private capital combined with the accumulated 
     productivity increases from the climate and energy effects, 
     described in a previous brief, leads to an increase in GDP, 
     which grows 0.1 percent in 2050.


           distributional tax effects: conventional estimates

       The Inflation Reduction Act contains a wide array of 
     subsidies, taxes, and pricing reforms, each with varying 
     impacts on households and businesses. For example, some large 
     businesses would face higher tax bills; individuals buying 
     certain health insurance plans would face lower out-of-pocket 
     costs; some households who evade taxes would be made to pay; 
     and pharmaceutical companies would earn lower revenues. 
     Though not responsible for remitting taxes assessed on 
     business activity, households bear some of the economic 
     burden of such taxes. Shareholders receive lower after-tax 
returns, and workers earn lower wages with fewer productivity-enhancing 
investments.

       Distributional analysis traditionally focuses on the 
     effects of revenue-raising tax provisions since attempting to 
     allocate all spending--including for roads, education, 
     national defense, some transfer programs, and the bill 
     inherited by future payers for current deficits--is 
     challenging and subjective. Put differently, distributional 
     analysis typically is not intended to be a holistic 
     incidence. Instead, distributional analysis attempts to 
     estimate answers the narrower question: for a given set of 
     spending benefits

[[Page H7671]]

     and change in debt, who finances the costs under the 
     explicitly stated revenue provisions in the bill? In the case 
     of this Act, the revenue is raised from the corporate minimum 
     tax as well as the tax on share repurchases.
       Conventional distributional analysis measures the long-run 
     incidence of tax increases imposed at a single point in time. 
     PWBM assumes that 75 percent of corporate income taxes are 
     borne by owners of capital with the remainder borne by 
     labor--magnitudes consistent with empirical research and 
     scorekeeping convention. We apply this incidence assumption 
     when analyzing the corporate minimum tax provision. However, 
     for the stock buyback tax, we assume that shareholders bear 
     100 percent of the burden because it is assessed on a 
     discretionary balance sheet transaction rather than on income 
     from economic production.
       We find that all income groups would bear some of the 
     additional burden of the 2023 revenue-raising business tax 
     changes. Average burden ranges from $5 for the lowest 
     quintile, to $55 for the middle quintile, to $61,520 for the 
     top 0.1 percent of tax units. At lower incomes, the tax 
     incidence largely reflects lower wages over time relative to 
     baseline, whereas at high income the tax incidence mostly 
     reflects more immediate changes in the value of financial 
     assets.


               distributional effects: dynamic estimates

       PWBM's dynamic distribution metric shows how benefits and 
     costs accrue across generations when accounting for 
     macroeconomic effects, including the increase in productivity 
     from lowering carbon emissions relative to baseline. While 
     this analysis is less granular than conventional 
     distributional analysis, the dynamic ``equivalent variation'' 
     measure captures important dynamics like lifetime income 
     trajectories, the ``insurance value'' of means-tested 
     benefits and changes in wages and returns to capital 
     investments.
       Table 4 reports the equivalent variation for households at 
     different ages (relative to the year 2022) and incomes. Each 
     value shown in Table 1 corresponds to the one-time benefit 
     that the corresponding household receives from the 
     legislation. For example, the value of -$700 for a household 
     age 40 in the bottom income quintile indicates that this 
     household is worse off by $700 under this legislation, 
     including at age 40 and the remainder of his or her lifetime. 
     Put differently, this household is indifferent between the 
     adoption of the Inflation Reduction Act and making a one-time 
     payment of $700 that avoids the adoption of the Act. However, 
     a household in the bottom quintile who is born in 20 years 
     (-20 age in 2022) would be $1,900 better off.
       Notice two main effects that vary by both income and 
     generation:
       First, current workers and retirees prefer current law over 
     the provisions in the Inflation Reduction Act. People alive 
     today bear the burden of business tax increases in the form 
     of lower investment returns and lower wages in the near term. 
     However, future generations gain from the adoption of the 
     Act, including positive gains to capital formation from 
     reducing the debt as well as the increase in total factor 
     productivity from reducing carbon emissions relative to 
     baseline.
       Second, current higher-income households bear a 
     substantially larger share of the tax burden while future 
     higher-income households also gain the most from the improved 
     economy. In the long run, the Inflation Reduction Act leads 
     to lower government debt, higher wages, higher total factor 
     productivity and higher GDP. Although older workers and 
     retirees prefer current law, this growth leads to significant 
     gains for younger households in all income brackets. As lower 
     government debt crowds in additional productive private 
     capital, wages increase. In addition, these younger workers 
     begin to benefit from the accumulating productivity benefits 
     from climate investments. Therefore, workers in the future 
     will receive higher wages and income, which is reflected in 
     larger equivalent variations for younger cohorts of workers.

  Mr. BRADY. Madam Speaker, I yield 1 minute to the gentleman from 
Tennessee (Mr. Rose).
  Mr. ROSE. Madam Speaker, Tennesseans are hurting from the 
skyrocketing cost of living everywhere they turn. Now, it seems as if 
the United States has entered into a spending-induced recession caused 
by the irresponsible fiscal policies of President Biden and 
congressional Democrats.
  Instead of focusing on passing meaningful and impactful legislation 
to help lower the cost of living, we are voting on a bill that spends 
hundreds of billions of taxpayer dollars.
  The bill will do nothing to help ease the pain my neighbors in 
Tennessee are experiencing and, in fact, is likely to increase 
inflation even more and push prices on everything even higher.
  It gives a tax break to wealthy Americans who can already afford to 
purchase expensive electric cars. It also increases taxes amidst a 
recession, which will only make it worse, and it allows the IRS to hire 
an army of 87,000 new Federal agents to go after the middle class.
  Madam Speaker, I will be voting ``no,'' and I urge my colleagues to 
do so as well.

                              {time}  1400

  Mr. NEAL. Madam Speaker, I yield 3 minutes to the gentleman from 
South Carolina (Mr. Clyburn), the majority whip of the Democratic 
Caucus, whose district I have visited.
  Mr. CLYBURN. Madam Speaker, I thank the gentleman for yielding the 
time.
  Madam Speaker, I rise today in full support of the Inflation 
Reduction Act. There are few days during a congressional career that 
feel truly historic. For me this is one of them. We have passed other 
historic legislation to help our economy overcome the pandemic, create 
jobs, repair and invest in our infrastructure, and bolster critical 
supply chains. Passage of the Inflation Reduction Act, however, will 
lead to the transformative change Democrats in Congress have been 
working with President Biden to achieve for the past year and a half.
  The Inflation Reduction Act will check inflation by reducing the 
deficit by $300 billion over the next decade. It achieves that by 
ensuring tax fairness that requires corporations to pay a minimum tax 
of 15 percent and protecting families making less than $400,000 a year 
from paying even one penny more in taxes.
  In addition, the Inflation Reduction Act will assist families by 
extending subsidies for the purchase of health insurance through the 
Affordable Care Act. Seniors on Medicare will benefit from the 
government's ability to negotiate prescription drug prices and by 
capping out-of-pocket drug costs at $2,000 per year.
  Having experienced my late wife's 30-year battle with diabetes, I am 
especially pleased this bill would cap insulin costs at $35 per month 
for those on Medicare.
  This is a giant step forward, but we will continue working to 
overcome the Republican opposition that blocks extending the same 
lifesaving measures to those on private insurance.
  Finally, this bill will cut climate pollution by 40 percent by 2030. 
It does so by building a new, clean energy economy that invests in a 
healthy future for all our citizens, creating more than 9 million new 
jobs.
  This legislation creates a nuclear production tax credit for existing 
reactors, ensuring that my home State of South Carolina continues to be 
a leader in clean energy generation while also making electricity 
affordable and accessible.
  It also puts $60 billion toward environmental justice to help 
communities, especially communities of color, address the legacy of 
pollution in their neighborhoods.
  I believe today we are demonstrating what we Democrats mean when we 
say we are putting people over politics, while our Republican 
colleagues continue to put their politics over the people's health and 
well-being.
  Madam Speaker, I am proud to stand with the people of America and 
help with this bill.
  Mr. BRADY. Madam Speaker, I would note that every Democrat in 
Congress, in the House and Senate, strongly opposed providing 
prescription drugs for seniors in Medicare part D, and then-Leader 
Pelosi at the time said, it would end Medicare as we know it to help 
seniors with these lifesaving medicines.
  Madam Speaker, I include in the Record the following study from the 
University of Chicago which shows the Democrats' drug pricing scheme 
and controls could kill up to 342 cures, many of them lifesaving cures, 
in the next two decades alone.

                [From University of Chicago, Sept. 2021]

The Evidence Base on the Impact of Price Controls on Medical Innovation

                 (By Tomas J. Philipson and Troy Durie)


                           Executive Summary

       This issue brief reviews the evidence on the impact of 
     price controls on biopharmaceutical innovation and calibrates 
     what this evidence implies for recent price control proposals 
     in the US. A large academic literature estimates the effect 
     of future drug revenues on R&D spending with a mid-range 
     effect of a 1 percent reduction in revenue leading to a 1.5 
     percent reduction in R&D activity. Using the range of such 
     effects found in the literature we find the proposed price 
     controls of US bill HR3, the Lower Drug Costs Now Act, would 
     lead to a 29 to 60 percent reduction in R&D from 2021 to 2039 
     which translates into 167 to 342 fewer new drug approvals

[[Page H7672]]

     during that period. The mid-range effect of the evidence 
     implies a 44.6 percent decline in R&D and 254 fewer new drug 
     approvals. As a benchmark on the large size of the adverse 
     health effects this implies, we conservatively find the loss 
     in life from the price controls the next 10 years is 20 times 
     larger than the loss from COVID-19 to date in the US. We 
     argue this is a conservatively low estimate of the impact of 
     such proposals even though it is as much as a ten times 
     larger reduction in new drugs compared to a recent CBO 
     analysis.


                        Section 1: Introduction

       A national debate has emerged again about the effect of 
     price controls on pharmaceutical innovation. Many proponents 
     of price controls for pharmaceutical drugs argue that they do 
     not impact innovation while opponents argue they will lead to 
     fewer new drugs. This issue brief attempts to provide insight 
     into the likely effects of recent price control proposals by 
     analyzing how the debate can be informed by basic economics 
     and the prevailing empirical evidence.
       While the United States has less stringent price 
     regulations when compared to other nations, the Biden 
     Administration has recently announced plans to lower drug 
     prices through policies similar to those outlined in a recent 
     bill referred to as the Lower Drug Costs Now Act (H.R. 3) 
     that passed the House of Representatives in December 2019 and 
     was reintroduced in April 2021. This proposal would create 
     price controls for the government's highest expenditure drugs 
     and then apply price controls to firms conducting private 
     sector transactions. This issue brief reviews the evidence on 
     how sensitive innovation is to changes in revenues and 
     applies the evidence to estimate the effect of proposed price 
     controls.


       Section 2: Evidence Base on Revenue Effects on Innovation

       Biopharmaceutical companies routinely project future market 
     size and profits for their products to determine the rate of 
     return on investment (ROI) from R&D. A large body of evidence 
     suggests that these market practices translate into a 
     predictable positive relationship between realized revenues 
     and R&D spending in the economy in general and for biomedical 
     innovation in particular.
       A rich academic literature quantifies this relationship 
     between future revenues and pharmaceutical innovation. For 
     assessing evidence related to revenue effects on R&D, it is 
     important to recognize that global profits drive innovation 
     and that revenues from different countries have different 
     effects on those global profits because of different profit 
     margins across countries. Expected earnings, not revenues, 
     drive R&D investments. Therefore, decreases in US revenue 
     will have larger effects on global profits than revenue 
     losses in price controlled markets in Europe due to higher 
     profit margins in the US. Goldman and Lakdawalla (2018) find 
     that pharmaceutical profits in the United States accounts for 
     64 to 78 percent of global profits, similar to an estimate 
     from the Council of Economic Advisers (CEA) (2018). 
     Consequently, the evidence finds that studies focusing on US 
     revenue losses show larger R&D effects than those studying 
     revenue losses in Europe.
       In particular, a set of papers looks at the expansion of 
     the Medicare prescription drug benefit, Medicare Part D, 
     which provides the most relevant evidence for assessing the 
     revenue effects of Medicare policy changes. They find that 
     companies recognized this expansion and increased innovation 
     in drugs treating diseases prevalent in the elderly 
     population more so than innovation in non-elderly diseases 
     (Blume-Kohout and Sood 2013). Quantifying that relationship, 
     a 1 percent increase in market size due to Medicare Part D 
     leads to a 2.8 percent increase in new drug approvals. 
     Another often cited paper finds a 1 percent increase in 
     potential market size leads to a 4-6 percent increase in the 
     entry of new drugs (Acemoglu and Linn 2004) in the US. Though 
     other studies have found lower effects in Europe of the 
     relationship between potential market size and the number of 
     new treatments, a clear strong positive relationship exists 
     (Dubois et al. 2015). Other studies show that a 1 percent 
     increase in price leads to a 0.22-1.33 percent increase in 
     innovation. Another extensive literature illustrates how 
     companies change their investments in lower quality drugs due 
     to price controls and other regulations that decrease how 
     much can be charged for high-quality drugs.
       We synthesized the evidence base by computing the average 
     R&D elasticity with respect to revenue estimated from 10 
     different studies looking at the effect of a price change, 
     expected market, and overall revenue on R&D. Table 1 
     illustrates the elasticities used from each paper, and the 
     average elasticity across these 10 studies is 1.54.
       Note: Acemoglu and Linn (2004) find an elasticity range of 
     4-6 based on if all approved including generics are included 
     or not. We take the midpoint of this range. Abbott and Vernon 
     (2005) find a price cut of 40 to 50 percent lowers R&D by 30 
     to 60 percent. Taking the midpoint of these numbers gives a 
     45 percent price cut leads to a 45 percent decrease in R&D, 
     or an elasticity of 1.
       To assess the impact on the number of new drugs from 
     reductions in R&D spending, a common approach is to divide 
     the reduction in R&D spending by an estimate of the costs of 
     bringing a drug to market. This is a useful approach and 
     implies a proportional reduction in new drugs to the 
     reduction in R&D spending regardless of the particular cost 
     per drug. In other words, using this methodology, a 10 
     percent reduction in R&D spending leads to 10 percent fewer 
     drugs regardless of the cost per drug estimate used. The 
     elasticity of R&D spending with respect to revenue in this 
     case therefore also represents the elasticity of new drugs to 
     revenue.
       Despite the evidence, there is some debate among law makers 
     concerning whether revenue or price controls affect 
     innovation at all. However, the evidence is consistent with 
     common market practices of biopharmaceutical innovation--a 
     positive relationship between investment and earnings. Such 
     market practices include the use of net present value (NPV) 
     calculations to determine a new drug's ROI. Biopharmaceutical 
     companies determine the demand for new drug therapies by 
     analyzing the prevalence of disease, insurance coverage of 
     the population affected by the disease, and reimbursement by 
     payers managing patients' care. The pharmaceutical industry 
     spent more than $91 billion on R&D in 2020. In obtaining such 
     R&D funding, companies have relied on venture capital 
     funding, licensing agreements, or mergers and acquisitions as 
     well as their own revenue. All rely on ROI assessments to 
     evaluate R&D investments. Indeed, markets routinely assess 
     the enterprise value of firms by estimating the present value 
     of expected cash flows across all business lines and 
     projects.


section 3: Calibration of the Impact on Innovation of Proposed US Price 
                                Controls

       This section evaluates what the evidence implies for the 
     innovation effects of proposed US price controls. We 
     calibrate that the price controls implemented in the United 
     States would lead to a 29.2 to 60.0 percent reduction in R&D 
     from 2021 to 2039. This equates to $952.2 billion to $2.0 
     trillion in lost R&D spending and 167 to 342 fewer new drug 
     approvals during this period. This means annual new drug 
     approvals will be 11.7 to 24.0 percent lower per year from 
     2021 to 2029 and 45.0 to 92.4 percent lower from 2030 to 
     2039. We discuss how these findings, as well as findings from 
     other studies, differ from CBO (2019), which finds only 37 
     fewer new drug approvals over this time period, which is 
     550.2 to 1,024 percent lower than our estimates. Our 
     estimates are conservative as the entire evidence base is 
     considered and not only the evidence base for the more R&D 
     sensitive US market.
       It should be noted, however, that making comparisons to CBO 
     estimates is made more difficult due to the highly non-
     transparent discussion of their underlying analysis, which 
     makes third-party replication of their results impossible. 
     This ``black-box'' nature of analysis is often the case with 
     government reports and raises larger issues with the 
     difficulty for private parties and taxpayers--who funded the 
     analysis--being able to assess their accuracy. In contrast, 
     we believe the presentation of the evidence discussed above, 
     and the innovation effects they directly imply, is highly 
     transparent as it simply documents the findings of the 
     studies and their implied effects.
     3.1 The Proposed US Price Controls
       The United States has fewer restrictions on price than 
     other countries, but the Biden Administration has announced 
     their goal to lower drug prices through greater price 
     regulation, as set forth in a recent bill referred to as H.R. 
     3. This proposal would change the way certain single-source 
     brand drugs are priced for Medicare beneficiaries by 
     requiring drug manufacturers to ``negotiate'' drug prices 
     with the Secretary of Health and Human Services. A 
     prohibitive excise tax of 65 to 95 percent will be applied to 
     a company's annual gross sales if they refuse to negotiate, 
     making the requirement largely equivalent to mandatory price 
     controls. Drug prices set by the Secretary may not exceed the 
     prices in specified countries by more than 20 percent and 
     price increases would be capped at the rate of inflation (CBO 
     2021).
       In addition, these price controls would also be extended to 
     private transactions by employer-based plans as stated on 
     August 12, 2021 by President Biden and as implied by the 
     proposed legislation. Private payers can choose the lower 
     prices negotiated by the government, which they presumably 
     will.
     3.2 CBO's Estimated Effects and Alternative Estimated Effects 
         of the Proposed Price Controls
       CBO (2019) previously estimated that a drop in future 
     revenues due to H.R. 3 would lead to 8 fewer drugs from 2020 
     to 2029, which would then expand to 30 fewer drugs from 2030 
     to 2039). In August 2021, CBO (2021b) updated its estimated 
     impact of price negotiations to be 2 fewer drugs in the first 
     decade (0.5 percent), 23 fewer in the second decade (5 
     percent), and 34 fewer drugs in the third decade (8 percent). 
     Since the development process takes about a decade, the long 
     run effects of the bill will be larger than its short-run 
     effects. To align these estimates with our time period of 
     2021-2039, we lower their estimate to 7 fewer drugs from 2021 
     to 2029 and keep the estimate of 30 fewer drugs from 2030 to 
     2039.
       Consistent with our analysis, other analysts' assessments 
     of CBO's 2019 analysis of H.R. 3 conclude that CBO (2019) 
     likely underestimates the impact of H.R. 3. Charles River 
     Associates (2021) finds the CBO study underestimates the 
     company revenue impact by assuming companies will be able to 
     set their price at the high end of the allowed price

[[Page H7673]]

     range, and that companies will be able to increase their non-
     U.S. price. Both assumptions may not be true due to 
     uncertainty around behavioral responses in negotiations. 
     Further, for the loss-of-revenue impact on R&D, CBO 
     extrapolates price control effects from smaller markets, and 
     they do not account for the larger impact on targeted disease 
     groups most impacted by the policy like rare diseases and 
     oncology. CBO's analysis relies on Dubois et al. (2015) to 
     estimate the effect of H.R. 3 on R&D, but CRA notes that this 
     estimated effect is smaller than most of the other 
     literature, too dependent on specific assumptions, and may 
     not be as relevant to a policy of H.R. 3's magnitude.
       Other analysts' estimates of the impact of the price 
     controls introduced in H.R. 3 show a considerably larger 
     impact on global revenues and R&D than assumed by CBO. 
     Stengel et al. (2020) estimate drug manufacturer revenues 
     would fall 34 to 44 percent, which would equate to about $1.3 
     to $1.7 trillion in total lost global revenues from 2020-
     2029. Vital Transformation (2021) estimates annual earnings 
     would fall 56 percent, or on average $102 billion a year, 
     starting in the year 2024. This fall in earnings when fitted 
     to past data would have lowered new approved drug therapies 
     in their sample from 68 new drugs to 7 new drugs, an 89.7 
     percent decline from 2010 to 2019.
     3.3 Effects of the Proposed Price Controls Implied by the 
         Evidence Base
       In light of the reported shortcomings in the CBO (2019) 
     report, we used the broader evidence base discussed in this 
     issue brief to assess the effect H.R. 3's proposed price 
     controls would have on innovation. We create a range of the 
     estimated drop in global drug manufacturer revenues by taking 
     the CBO's lower estimate of 19 percent and the midpoint 
     revenue effect of alternative studies, 39 percent, from 
     Stengel et al. (2020).
       As discussed earlier, a conservatively low estimate of the 
     elasticity of revenue on either R&D or the introduction of 
     new drugs is 1.5 based on current evidence. We apply this 
     elasticity to the 19 to 39 percent decline in revenues to 
     derive a percentage reduction in R&D. This percentage 
     reduction is thereafter used to calibrate the reduction in 
     absolute R&D spending or number of approved drugs which is 
     applied to the CBO baseline trend in absolute values. In 
     other words, the reduction in R&D spending and the number of 
     new drug approvals during 2021 to 2039 is obtained by 
     determining how much would be lost in each of those measures 
     with the number of approved drugs being compared to CBOs 
     baseline trends given the percent reduction in R&D. We create 
     our own trend for R&D spending by taking a time series from 
     PhRMA's 2021 Membership Survey showing pharmaceutical R&D 
     spending from 2000-2019 and calculated the compound annual 
     growth rate to get a trend for expected R&D spending through 
     2039. We then applied the impact on R&D to each year and 
     summed these values to get a total. For new drug approvals, 
     we use the 30 new drug approvals baseline from CBO (2019) and 
     applied the impact on R&D for each year and summed.
       Table 2 illustrates our main findings. Using the average 
     elasticity on the 19 to 39 percent drop in global revenues, 
     innovation through R&D is expected to drop 29 to 60 percent. 
     Using the middle of our range, this would equate to lost R&D 
     spending of up to $1.5 trillion. We find that this drop in 
     spending will lead to 167 to 342 fewer new drug approvals.
       Our estimates are therefore 550.2 percent to 1024.0 percent 
     larger than CBO (2019)'s estimated 37 fewer new drug 
     approvals, adjusted to our time period. CBO (2019) points out 
     that lower R&D spending will take time to be reflected in new 
     drug approvals due to the long development process, so the 
     reduction in revenue results in 7 fewer new drug approval, 
     18.9 percent of their total estimate, in the first 9 years 
     and 30 more in the following decade, 81.l percent of their 
     total estimate. We assume this breakdown as well, so new drug 
     approvals will fall by 32 to 65 approvals from 2021 to 2029 
     and 135 to 277 approvals from 2030 to 2039. These significant 
     drops in new drug approvals will lead to delays in needed 
     drug therapies, resulting in worse health outcomes for 
     patients.
       The failure to discover and get new drug approvals leads to 
     worse health outcomes. CEA (2019) did an early analysis of 
     H.R. 3 finding 375 million to 100 million life years lost due 
     to this policy's impact on R&D spending through 2029. For 
     comparison, using death data through September 22, 2021, 
     SARS-CoV-2 has directly reduced health outcomes by 7.5 
     million life years. The 7.5 million life years lost is only 
     just over 10 percent as large as the midpoint of CEA (2019)'s 
     estimate due to H.R. 3. We calculate this loss in life years 
     by applying life expectancy estimates conditional on age from 
     CDC to the age distribution of deaths from SARS-CoV-2 from 
     CDC updated through September 22, 2021. Then we multiply the 
     life expectancy at each age grouping by the number of deaths 
     and sum to get 7.5 million life years lost. A prior study 
     shows how every $2,000 spent on pharmaceutical research and 
     development increases population health by one statistical 
     life-year (Lichtenberg 2002). When applied to our R&D 
     spending estimates, this would lead to 159.3 million to 326.9 
     million life years lost by 2029 which increases to 476.1 
     million to 977.2 million by 2039. This amounts to the direct 
     negative health effects of SARS-CoV-2 to be only 3.1 percent 
     as large as our midpoint estimate by 2029 and 1.0 percent as 
     large by 2039. Price controls have significant health costs 
     to the U.S. population.
       Our analysis likely underestimates true innovation effects, 
     which, if considered fully could make our findings even 
     further away from the CBO estimates. This is because the 
     average R&D elasticity of 1.5 used included studies of non-
     U.S. markets with lower earnings effects than U.S. markets. 
     Given that the U.S. has higher margins, price controls are 
     expected to have a larger impact on earnings. Thus, only 
     using the larger estimated elasticities from U.S. markets, 
     which would double the elasticity of 1.5, would yield 
     proportionally larger differences between the evidence base 
     and the CBO estimates.

  Mr. BRADY. Madam Speaker, I yield 1 minute to the gentleman from 
Florida (Mr. Rutherford).
  Mr. RUTHERFORD. Madam Speaker, I thank the gentleman for yielding.
  Madam Speaker, I rise today in strong opposition to this reckless 
spending bill, which, contrary to its name, will do absolutely nothing 
to address inflation. In fact, the bill before us today will further 
threaten the prosperity of hardworking, middle-class taxpayers.
  The same leaders who drove this economy into a recession are back. 
But this time, it is another failed plan to raise taxes, build more 
bureaucracy, and create a government slush fund with taxpayer dollars.
  We need to call this bill what it is. It is a $700-billion debacle 
that will drive up costs for everyone, double the size of the IRS, 
attack medical innovation, as you have already heard, and use $350 
billion to implement the Green New Deal all while giving handouts to 
the wealthy.
  Hardworking Americans across the country are facing the reality of 
rising prices and a nationwide recession. They deserve leaders who are 
focusing on the lives of everyday Americans, not politicians who pander 
to the President and his failed policies.
  Madam Speaker, I urge a ``no'' vote on this egregious bill.
  Mr. NEAL. Madam Speaker, I yield 1\1/2\ minutes to the distinguished 
gentleman from Pennsylvania (Mr. Brendan F. Boyle).
  Mr. BRENDAN F. BOYLE of Pennsylvania. Madam Speaker, the word 
``historic'' is probably overused at times. Really, it is a day like 
today when the word ``historic'' is warranted.
  For decades, politicians of both parties talked about giving Medicare 
the ability to negotiate prescription drugs to bring down the costs for 
seniors. Today, in this bill, we are doing it.
  For decades, politicians talked about capping the amount of money 
seniors paid every year on prescription drugs. Some in my district in 
Philadelphia pay $5,000 a year, $10,000 a year. This bill caps it at no 
more than $2,000 a year.
  Again, for decades, politicians talked about the need to address 
climate change and to make a large investment, so that we can finally 
tackle this existential challenge for America and for the world. Here 
in this bill we are doing it: the largest single investment to address 
climate change in our Nation's history.
  I know that on social media and on TV, it tends to be the 
performative politics that get most of the attention, that helps breed 
cynicism within our constituents. It is legislation like this that 
makes a difference in people's lives. This is why we are here as 
lawmakers: to do the people's business.
  Mr. BRADY. Madam Speaker, I insert in the Record the following 
analysis which shows the top 10 manufacturing industries hit hardest by 
the Democrats' made-in-America manufacturing tax. These are 
predominantly minority communities and working-class Americans.

TOP 10 INDUSTRIES WHERE AVERAGE ANNUAL WAGES ARE LESS THAN 75K PER YEAR:
------------------------------------------------------------------------
                                       Amount of
             Industry                   Workers          Job Example
------------------------------------------------------------------------
1) Office and Administrative            18,299,380  Secretaries,
 Support.                                            Administrative
                                                     Assistants
2) Sales and Related..............      13,256,290  Retail Sales
                                                     Workers, Travel
                                                     Agents
3) Transportation and Material          12,639,920  Truck Drivers
 Moving.
4) Food Preparation and Serving...      11,201,480  Waitress, Hosts and
                                                     Hostesses, Cooks
5) Production.....................       8,408,030  Machine Operators,
                                                     Laundry and Dry-
                                                     Cleaning Workers,
                                                     Tire Builders
6) Educational Instruction and           8,191,930  Teachers, Librarians
 Libraries.
7) Healthcare Support.............       6,603,680  Nursing Assistants,
                                                     Occupational
                                                     Therapy Aides
8) Construction and Extraction....       5,848,950  Carpet Installers,
                                                     Insulation Workers
9) Installation, Maintenance, and        5,574,410  Radio, Cellular, and
 Repair.                                             Tower Equipment
                                                     Installers and
                                                     Repairers
10) Building and Grounds Cleaning        4,108,810  Janitors and
 and Maintenance.                                    Cleaners, Lawn
                                                     Service,
                                                     Groundskeeping
                                                     Workers
------------------------------------------------------------------------


[[Page H7674]]

  

  Mr. BRADY. Madam Speaker, I yield 1 minute to the gentleman from Ohio 
(Mr. Davidson).
  Mr. DAVIDSON. Madam Speaker, this bill will not reduce inflation. It 
will pull us deeper into the current recession and take America further 
in the wrong direction. It is simply more government and less freedom.
  In the past year, inflation has exceeded 13 percent, and real wages 
have effectively fallen by 4.5 percent. The Federal Reserve and Big 
Government combined to fuel inflation, and now people are being crushed 
by these high prices. You cannot spend your way out of inflation.
  But that is exactly what this bill tries to do with $745 billion in 
new spending. It raises taxes in a recession. And it gives more than 
six times the agency's current annual budget for the IRS. It is going 
to more than double audits on families.
  Instead of addressing the 32 percent increase in energy prices by 
increasing domestic production, this bill spends billions on Green New 
Deal pet projects like a $27 billion EPA-run Climate Bank and a $250-
billion federally run Department of Energy loan program.
  Madam Speaker, I urge my colleagues, please oppose this bill.
  Mr. NEAL. Madam Speaker, I yield 1\1/2\ minutes to the gentleman from 
Virginia (Mr. Beyer), who has had a profound influence on this 
legislation and knows it inside and out.
  Mr. BEYER. Madam Speaker, today we protect the world for future 
generations.
  Madam Speaker, the Inflation Reduction Act will do untold good for 
the Nation and for the American people. This is our generation's 
signature contribution to American history, our Social Security Act, or 
Civil Rights Act, or even the Bill of Rights.
  The act will lower healthcare costs, reduce prescription drug prices, 
and create jobs. We have emphatically put people over politics.
  Much like a proposal I introduced with Senators Elizabeth Warren and 
Angus King, it will actually reduce the deficit by preventing tax 
avoidance for the biggest corporations in this country, requiring them 
to shoulder their fair burden of the tax responsibility.
  Most importantly, Congress is finally taking the sweeping, ambitious 
action we desperately need to prevent the worst effects of the climate 
crisis. We are passing the most important environmental bill in 
history.
  I am privileged to serve on Chairman Neal's brilliant and enlightened 
Ways and Means Committee. I am proud of the diverse tax credit 
provisions I partnered with my distinguished Members and friends.
  These are the parts of the act which will have enormous climate 
consequences:
  They will accelerate the adoption of zero emission mid-size trucks, 
vans, and other commercial vehicles.
  They will scale up direct air capture technology to remove carbon 
pollution directly from the atmosphere.
  They will incentivize the reduction of emissions from commercial 
buildings.
  These provisions and the bill as a whole will create huge numbers of 
good-paying jobs.
  Then there is the big picture. This bill will put us on a path to 
reduce our target emissions and actually help save the planet.
  Madam Speaker, I thank my colleagues for their support.
  Mr. BRADY. Madam Speaker, I include in the Record the following 
editorial from The Wall Street Journal, which shows this bill will only 
reduce global temperatures by, at best, 0.028 degrees Fahrenheit 
throughout this century and as little as 0.0009 degrees over the entire 
century.

                     [From The Wall Street Journal]

                      Tilting at Climate Windmills

       Nearly all of Washington--Democrats, the press, lobbyists--
     is taking a victory lap with Senate passage of the Schumer-
     Manchin tax, climate and drug price control bill. The climate 
     lobby is especially thrilled, claiming a historic victory 
     that will reduce temperatures, hold back the rising sea, and 
     save the planet.
       Or, maybe not. Our contributor Bjorn Lomborg looked at the 
     Rhodium Group estimate for CO2 emissions reductions from 
     Schumer-Manchin policies. He then plugged them into the 
     United Nations climate model to measure the impact on global 
     temperature by 2100. He finds the bill will reduce the 
     estimated global temperature rise at the end of this century 
     by all of 0.028 degrees Fahrenheit in the optimistic case. In 
     the pessimistic case, the temperature difference will be 
     0.0009 degrees Fahrenheit.
       In other words, the climate provisions in this ballyhooed 
     legislation will have no notable impact on the climate.
       This isn't surprising. No matter what the U.S. does to 
     reduce greenhouse-gas emissions, it will be dwarfed by what 
     the rest of the world does. China, India and Africa aren't 
     about to stop burning fossil fuels as they develop, and China 
     is sprinting ahead to build huge new coal capacity despite 
     its pledge to start reducing emissions after 2030.
       Barring a breakthrough in battery or other technology, 
     carbon emissions will continue to increase. No one knows how 
     much the Earth's temperature will warm, though even the U.N. 
     model has modified its estimates from the apocalyptic 
     predictions of some years ago.
       Schumer-Manchin won't reduce inflation, won't reduce the 
     budget deficit, and it won't reduce the world's temperature. 
     What it will do is transfer some $369 billion from taxpayers 
     and drug companies to the pockets of green energy businesses 
     and investors. It will tighten the hold that politicians have 
     on the allocation of capital, as they pick winners and losers 
     with their grants and tax credits. Everyone will get a nice 
     warm feeling as they pretend they are cooling the climate.

  Mr. BRADY. Madam Speaker, I yield 1 minute to the gentlewoman from 
New York (Ms. Malliotakis).
  Ms. MALLIOTAKIS. Madam Speaker, at a time when the country is facing 
a 40-year high rate of inflation, Americans are struggling, the economy 
is contracting, and we are in a recession, they are jamming through a 
$750-billion bill with a slush fund that will only further fuel 
inflation, lead to higher energy costs, and drive up manufacturing 
costs as a supply chain crisis persists.
  What a lousy idea to raise taxes during a recession. This will not 
just hit businesses, but families earning as little as $50,000, and 
that is exactly why this bill is doubling the IRS by 87,000 agents.
  This is a level that is:
  More than the population of Biden's entire hometown of Scranton, 
Pennsylvania.
  More than the fans that can fill the MetLife Stadium where the Giants 
play.
  Three times the staff at the Pentagon.
  Four times the Border Patrol agents when we have a border crisis; and
  Eight times the drug enforcement agents when fentanyl is taking 
record lives of young Americans.
  This bill does not include one cop as crime is skyrocketing in cities 
like mine.
  This Congress is disconnected with the real problems that Americans 
face. To call this the Inflation Reduction Act is a lie.
  Mr. NEAL. Madam Speaker, I yield 1\1/2\ minutes to the gentleman from 
Illinois (Mr. Schneider), who is a very valued member of the Ways and 
Means Committee.
  Mr. SCHNEIDER. Madam Speaker, I proudly rise today in support of the 
Inflation Reduction Act. This historic bill will lower the cost of 
energy and healthcare for millions of Americans. Just as important, it 
makes the largest ever investment in tackling the climate crisis, 
helping us cut carbon emissions by 40 percent by 2030.
  These historic investments will improve the lives of hardworking 
Americans, all while reducing our deficit by $300 billion.
  This bill will allow the HHS Secretary to negotiate the prices of 
some of the most expensive drugs. It caps the price of insulin at $35 
for Americans on Medicare. It also includes expanded coverage for low-
income Medicare beneficiaries, which I have championed for years.
  On climate change, I am particularly proud that this bill includes my 
legislation, the Sustainable Skies Act, that will help dramatically 
reduce greenhouse gas emissions from aviation, which today accounts for 
2 percent of the world's annual emissions.
  The bill also tackles the high energy costs that Americans face with 
investments in consumer home energy, from rooftop solar panels to 
electric HVAC systems.
  Let me repeat: this bill is entirely and responsibly paid for and 
then some.
  Again, our deficit will be cut by more than $300 billion by the 
action Congress is taking today.
  Madam Speaker, Americans have been hard hit by a once-in-a-century 
pandemic and then by the consequent effects of global inflation and 
supply chain crises. And every year the impacts of climate change 
become more severe and more costly. Americans need relief.

[[Page H7675]]

  Madam Speaker, I urge my colleagues to vote for the Inflation 
Reduction Act and give our fellow citizens the relief they deserve.
  Mr. BRADY. Madam Speaker, I include in the Record the following 
article by Americans for Tax Reform, which debunks the Inflation 
Reduction Act by describing the top five budget gimmicks in this bill, 
showing over $330 billion in fake savings, more than the so-called 
deficit reduction in the bill.

              5 Gimmicks in Democrats' Reconciliation Bill

       Democrats' reconciliation bill, improperly named the 
     ``Inflation Reduction Act,'' contains numerous gimmicks 
     designed to deceive voters and circumvent congressional 
     rules.
       This bill uses several budget gimmicks: a short extension 
     of Obamacare subsidies, a repeal of the ``rebate rule'' that 
     never has nor never will go into effect, and supersizing the 
     Internal Revenue Service (IRS) to ``solve'' an overstated tax 
     gap, This bill attempts to circumvent the Byrd rule by 
     erroneously calling a mandate ``a tax.'' The bill would also 
     violate President Biden's tax pledge to not raise taxes on 
     anyone making less than $400,000 a year.


 1. The Obamacare subsidies in this bill are only extended until 2025, 
         despite expectations that they will be extended again.

       In the American Rescue Plan (ARP), President Biden and 
     congressional Democrats expanded Obamacare subsidies--
     specifically the advanced refundable premium tax credit--by 
     increasing benefits for households at every income level and 
     expanding them to households earning more than 400 percent of 
     the federal poverty level. Because these enhanced benefits 
     are set to expire later this year, Democrats are attempting 
     to extend them through 2025 in this legislation.
       Once these expanded subsidies have been in place for five 
     years total, it will be extremely difficult to get rid of 
     them. Given the high likelihood--and expectation--that these 
     subsidies will be extended once they're set to expire again, 
     the three-year extension is a clear gimmick.
       If the expanded subsidies were extended indefinitely, the 
     10-year budget deficit reduction falls from $248 billion to 
     $89 billion, according to the Penn Wharton Budget Model.


 2. The bill repeals the ``rebate rule,'' despite the fact that it was 
                        never going into effect.

       Under the Trump administration, the HHS released the rebate 
     rule which sought to lower drug prices by altering payments 
     from drugmakers to pharmacy benefit managers. The Trump 
     administration never went through with this rule nor has the 
     Biden administration taken it back up again (to be clear, 
     they never will).
       Even so, Democrats claim the repeal would reduce the 
     deficit by $120 billion. Clearly, it would not.
       Already, between the likely extension of Obamacare 
     subsidies and this rebate rule, the bill doesn't actually 
     reduce the deficit at all.


   3. The IRS would be supersized to solve an overstated ``tax gap.''

       The Joint Committee on Taxation estimates that $80 billion 
     in additional funding to the IRS would increase tax revenue 
     by $125 billion. While increasing tax enforcement would 
     certainly raise more money from unsuspecting small 
     businesses, the Left has assumed that this can and will be 
     done through increased enforcement on the wealthy.
       In reality, wealthy individuals and large corporations are 
     almost always tax compliant. The wealthy and large 
     corporations already have armies of lawyers and accountants 
     that ensure they legally take advantage of the plethora of 
     credits and deductions offered by the tax code. Further, the 
     IRS already audits the largest corporations at high rates. It 
     doesn't matter how much more the agency receives in funding--
     they will not find violations in the law that do not exist.
       Thus, the IRS won't find much more revenue from their big 
     targets.
       Additional funding will instead be used for invasive, time-
     consuming, and non-fruitful audits of middle-class Americans 
     and small businesses. The IRS previously announced a goal to 
     increase small business audits by 50 percent.
       As previously reported by CNBC, experts say a fattened-up 
     IRS would go after small businesses that necessarily depend 
     on cash transactions.


     4. The bill implements price controls through a 95 percent tax,

       The bill would give the Health and Human Services Secretary 
     the authority to ``negotiate'' the price of prescription 
     drugs on behalf of Medicare. By ``negotiation,'' Democrats 
     mean drug manufacturers will pay a 95 percent excise tax on 
     prescription drug profits unless they accept price controls 
     set by the Department of Health and Human Services (HHS). In 
     2023, the Secretary would be able to determine the prices of 
     10 prescription drugs. The determined price would go into 
     effect in 2026. The number of drugs the HHS Secretary could 
     set prices for would then increase to 15 in 2028 and 20 in 
     2029.
       That tax itself is forecasted to raise zero revenue. 
     Neither the JCT analysis nor any independent analyses 
     estimate that any company would pay this exorbitant tax. A 95 
     percent ``tax'' on revenue is just a stick to enforce a 
     mandate for government price controls. This is a way to 
     circumvent the Byrd rule, which requires that all the 
     provisions in a reconciliation bill directly change federal 
     spending or revenue. While a tax is obviously protected under 
     this rule, it's not clear that mandates of this kind are.


   5. The reconciliation bill raises taxes on those making less than 
           $400,000, violating President Biden's tax pledge.

       Throughout the ten-year window, the JCT estimates that 
     nearly every single income group will see their taxes raised. 
     Those Americans making less than $200,000 will see their 
     taxes raised by nearly $17 billion. For those making between 
     $200,000 and $500,000 (as the JCT doesn't cut off brackets at 
     $400,000), their taxes would increase by another $14 billion.
       Senate Finance Ranking Member Mike Crapo (R-Idaho) rightly 
     points out that at least half of all new tax revenue raised 
     by this bill would come from those earning under $400,000.
       Clearly, this tax hike violates President Biden's pledge 
     not to raise one penny of taxes on any American earning less 
     than $400,000 per year.
       If Biden and Harris want to keep their pledge, they must 
     veto the bill or instruct Democrats to change the bill.

  Mr. BRADY. I yield 1 minute to the gentleman from Tennessee (Mr. 
Fleischmann).

                              {time}  1415

  Mr. FLEISCHMANN. Madam Speaker, the dying ember that is the 
Democratic majority in both Houses once again seeks to burn the 
American people. $80 billion for the IRS, and they champion it.
  I will stand with the hardworking American people of this Nation. 
Democrats, you can have the IRS.
  Raising taxes at a time of recession, at a time of economic gloom, I 
will stand with the hardworking entrepreneurs of America any time over 
raising taxes.
  Madam Speaker, the American people know better. The American people 
deserve better. The American people will get better in November. I urge 
a ``no'' vote on this bill.
  Mr. NEAL. Madam Speaker, I yield 1 minute to the very capable 
gentlewoman from New York (Ms. Velazquez).
  Ms. VELAZQUEZ. Madam Speaker, I rise in strong support of this 
historic legislation.
  The climate crisis is the single-most important issue facing our 
future, the future we will all share, Democrats and Republicans.
  I understand this is a down payment on climate action and more needs 
to be done, but let's focus on what this bill does. It lowers the cost 
of healthcare and prescription drugs. It lowers energy costs and 
delivers the largest-ever climate action by investing in domestic 
energy production and manufacturing while reducing carbon emissions by 
roughly 40 percent by 2030. It lowers the deficit and helps fight 
inflation by making a historic payment on deficit reduction of $300 
billion. We do this by making the biggest corporations and ultrawealthy 
pay their fair share in taxes.
  Enough with the fear-mongering by the other side. Let's get this done 
on behalf of hardworking families across America.
  Mr. BRADY. Madam Speaker, I include the following polling reality 
study in the Record, which shows that once Americans learn the details 
of the so-called Medicare negotiation, which is price setting, that 
their choices and access to lifesaving cures will be limited, public 
support for negotiation plummets.

     Analysis: Americans Don't Support Surrendering Innovation for 
                     Democrats' Drug Price Controls

       Democrats are selling their socialist drug pricing scheme 
     as a way to lower prices, but Americans oppose it once they 
     learn that this kills cures and life-improving treatments.
       What they aren't telling you is this: Their drug price 
     control scheme will kill innovation, mean fewer new 
     treatments and cures, and a loss of jobs in the biopharma 
     industry.
       Once Americans learn about these consequences they reject 
     it outright. Furthermore, this isn't a ``negotiation''--
     Democrats' proposal has Washington dictate prices under 
     threat of exorbitantly higher taxes on medical innovators.


                             Key Takeaways:

     The vast majority of Americans oppose government negotiation 
         if it results in fewer new medicines being developed in 
         the future
       A 50-state Morning Consult/PhRMA poll shows two thirds of 
     Americans oppose price controls if they put the government in

[[Page H7676]]

     charge and take away power from doctors to prescribe 
     medicines that best meet the needs of patients.
       The Kaiser Family Foundation also finds that Democrats' 
     price control scheme drops in popularity the moment 
     respondents see that it could lead to less research and 
     development of new drugs or limit access to newer 
     prescription drugs.
       A March 2022 Ipsos/PhRMA poll reveals only 14 percent of 
     Americans support Washington price controls if they limit 
     their access to newer prescription medicines. Even if it 
     ``only'' delays access, only 15 percent support the proposal 
     then.
       The same poll shows that seniors are even more skeptical--
     10 percent support the price controls when they learn of how 
     it delays people's access to new medicines.
     Numerous studies show the proposal would kill new treatments, 
         including a University of Chicago study that shows the 
         number going up to 342
       Democrats' price-fixing scheme would kill up to 342 cures, 
     according to a study by the University of Chicago, yet they 
     claim it's merely a ``negotiating'' approach that would lower 
     the price of drugs.
       A new study from Vital Transformation finds that if drug 
     price controls under consideration in the Senate had been 
     enacted during the last decade, only six of 110 currently 
     approved therapies would have made it to patients.
       Loss of innovation = a death sentence for patients. Looking 
     at CMS drug utilization data from 2016 to 2020 of the types 
     of drugs expected to be most impacted by Democrats' price 
     fixing, even the most conservative estimates of innovation 
     lost from these policies could have left over 42 million 
     patients without the medicine they needed.
       Surrendering in the fight against cancer: The Council of 
     State Bio Associations writes that socialist drug price 
     controls will get in the way of the fight against cancer: 
     ``In oncology alone, the University of Chicago found that 
     price controls would reduce overall annual cancer R&D 
     spending by about $18.1 billion, or 31.8 percent.''
       They continue: ``The specter of government price setting 
     threatens to undermine a sector that has created over 1.8 
     million jobs across all 50 states and that represents a large 
     portion of our nation's Gross Domestic Product (GDP)--
     generating an economic output of approximately $2.6 trillion 
     annually.''
       Limiting patients' access to low-cost medicines: Back in 
     March, medical innovators wrote to Congress that ``The 
     untested approach in the House-passed Build Back Better Act 
     (H.R. 5376) does not address these challenges and could in 
     fact harm future savings from generic and biosimilar 
     medicines. The Build Back Better Act's approach to direct 
     negotiations in Medicare and inflation-based penalties, as 
     passed by the House, would alter the incentive for generic 
     and biosimilar manufacturers to develop new medicines [. . .] 
     and is misguided and would limit patients' access to low-cost 
     medicines.''
     The Bipartisan Solution That Works: The Lower Costs, More 
         Cures Act (H.R. 19) lowers costs for all prescription 
         drugs
       Every provision in H.R. 19 is bipartisan. It will lower 
     health care costs and ensure America leads in health care 
     innovation for more cures and treatments.
       It gives patients more drug price transparency and ensures 
     public disclosure of drug costs and discounts.
       It increases low-cost options by bringing more generic and 
     biosimilar competition to the marketplace fast.
       It caps seniors' out-of-pocket costs for insulin at $50 per 
     month.
       It allows high deductible health insurance plans to cover 
     insulin before the deductible kicks in.
       A new large-scale survey of 20,000 Americans covering all 
     50 states and 435 Congressional districts shows a majority of 
     Americans find health care coverage costs unreasonable and a 
     priority health care issue for policymakers to address today. 
     The survey also shows that a majority of voters in every 
     state and district oppose Medicare ``negotiation'' once they 
     learn the policy could harm access and innovation.
       Here are the key findings from the survey:
       A majority of Americans in every state and the District of 
     Columbia oppose government ``negotiation'' as a way to 
     address health care costs if it could:
       Take away power from doctors to prescribe the medicines 
     that best meet the needs of their patients, and instead put 
     the government in charge of those decisions--on average 66% 
     oppose.
       Limit people's access to newer prescription drugs--on 
     average 64% oppose.
       Reduce access to medicines for seniors and people with 
     disabilities--on average 62% oppose.
       Americans concerned with rising health care costs believe 
     Congress should prioritize reducing the overall cost of 
     coverage:
       30% of Americans, on average, are concerned with out-of-
     pocket costs not covered by insurance and 29% are concerned 
     with the cost of health insurance premiums.
       66% of Americans, on average, believe Congress should focus 
     on reducing the overall cost of health care coverage, (23% of 
     Americans want them to focus on prescription drug costs, and 
     13% don't know enough to say).
       66% of Americans from all states and Congressional 
     districts, on average, find their out-of-pocket health care 
     costs ``unreasonable.''
       Americans are clear in their opposition to so-called 
     Medicare ``negotiation'' policies. They want Congress to 
     focus on patient-centered solutions that address the real 
     health care issues they face, like rising out-of-pocket costs 
     and health insurance premiums, while preserving access, 
     innovation and choice. Learn how at PhRMA.org/BetterWay.

  Mr. BRADY. Madam Speaker, I yield 1 minute to the gentleman from 
Texas (Mr. Gohmert).
  Mr. GOHMERT. Madam Speaker, this is the bill, 728 pages, that we got 
from the Senate this week. Has anybody read it?
  Come on. That is over a billion dollars average per page. That ain't 
gold; that is fool's gold.
  Look, more IRS agents, as Art Laffer said years ago, that is not 
going to increase the amount of revenue to the government, and, in 
fact, when you say it is going after the ultrarich, what happens is the 
ultrarich are the only ones that can avoid paying taxes. They can hire 
attorneys, accountants. They can move, change their business structure. 
It comes right back to the middle class every time.
  These same policies are the reasons that the average Black household 
in the 8 years of Obama lost 30 percent of their net worth.
  We keep hearing from the other side that there is this runaway 
inflation, and this ugly bill is going to stop it. Well, our President 
said it is zero percent inflation. Somebody is lying. We will find out 
who.
  Mr. NEAL. I will be the first to acknowledge that, Madam Speaker. I 
reserve the balance of my time.
  Mr. BRADY. Madam Speaker, on behalf of many diabetes patients, I 
include the following article in the Record, which includes a quote 
from my fellow Texan, Representative Lloyd Doggett, where he accurately 
states that the insulin caps policy included in this bill ``does not 
lower the price of insulin by one penny,'' but, rather, shifts costs to 
others.

 Insulin Copay Cap Passes House Hurdle, But Senate Looks for a Broader 
                                  Bill

                         (By Michael McAuliff)

       The chances of passing election-year legislation to help 
     people afford insulin--which weeks ago seemed mired in 
     political fighting--are looking brighter as a bipartisan 
     effort to tackle the issue takes root in the Senate.
       That effort is still in the early stages, but it is moving 
     forward with the support of Senate Majority Leader Chuck 
     Schumer, who tapped Sens. Susan Collins (R-Maine) and Jeanne 
     Shaheen (D-N.H.) to craft a compromise that members of both 
     parties could accept. Adding pressure to the Senate's efforts 
     was a vote by the House on March 31 to pass a different bill 
     that caps out-of-pocket insulin costs for many patients with 
     insurance at $35 a month.
       Collins said in an interview March 30 that the two senators 
     had come up with an outline based on a bill they worked on 
     three years ago that goes beyond capping what diabetes 
     patients pay and aims to bring down the prices drugmakers 
     charge.
       ``It tackles the broader issue of the high list price for 
     insulin, and the conflicts of interests that occur in the 
     chain from manufacturer to the consumer buying it at the 
     pharmacy counter,'' Collins said.
       The idea of reducing patients' out-of-pocket insulin costs 
     is immensely popular, and more than half of the public sees 
     it as a ``top priority'' for Congress, according to a KFF 
     poll out last week.
       It had been a key selling point of President Joe Biden's 
     Build Back Better plan, but when that legislation stalled, 
     Biden and Schumer gave Sen. Raphael Warnock (D-Ga.) an open 
     lane to promote a stand-alone measure identical to the House 
     bill that caps insulin costs at $35 a month for people with 
     private insurance and Medicare coverage.
       The political climate, however, presented roadblocks. The 
     odds that a bill sponsored by a Democrat facing a tough 
     reelection in the fall could get enough Republicans in the 
     Senate on board seemed slim, and even some Democrats were 
     nervous about stripping the insulin provisions from a 
     possible revised version of the Build Back Better bill. So 
     Schumer embraced a different option from Collins and Shaheen 
     that would include a cap on out-of-pocket costs and possibly 
     draw more votes.
       Insulin prices have spiked dramatically since the early 
     2000s, with Americans paying 10 times what people in other 
     developed countries pay.
       Although Collins said details are still being worked out, 
     her legislation would be based on the pair's earlier bill, 
     the Insulin Price Reduction Act of 2019, which aimed to roll 
     insulin costs back to what they were in 2006. It would have 
     done that by barring rebate payments for insulin to pharmacy 
     benefit managers--those intermediaries who negotiate price 
     breaks for insurance companies and determine which drugs the 
     insurance plans cover.
       Collins and other critics of PBMs believe they inflate 
     prices because they favor higher-priced drugs from which they 
     can extract a larger rebate and therefore more profit, which 
     gives drugmakers extra incentive to raise list prices.

[[Page H7677]]

       Under that 2019 plan, drug manufacturers who agreed to 
     return to 2006 costs could then raise prices each year only 
     at the rate of medical inflation. The senators estimated the 
     plan would lead to a 75 percent cut in prices from those 
     listed in 2020.
       ``There's a very complex system which essentially 
     encourages high list prices, because the pharmacy benefit 
     managers frequently receive a percentage of the list price,'' 
     Collins said. ``So their incentive is to choose one that is 
     higher-cost. And so we are trying to address that broader 
     issue, as well as looking at the out-of-pocket costs.''
       Warnock's proposal to cap the cost of insulin is silent on 
     list prices and benefit managers, an omission some Democrats 
     complained about even as they voted for the similar bill in 
     the House. They noted that since insurers would likely be 
     forced to absorb the costs no longer paid by patients, the 
     companies would likely raise premiums.
       ``This bill does not lower the price of insulin by one 
     penny,'' said Rep. Lloyd Doggett (D-Texas). ``It just shifts 
     the burden of paying for the insulin off of the shoulders of 
     insured insulin users, and shifts it on to the rest of all of 
     us who are paying insurance premiums.''
       Collins also noted that the uninsured would not benefit 
     from the House cap, which applies to Medicare and insurance 
     companies but doesn't affect drugmakers' prices.
       ``It doesn't help someone who's uninsured,'' Collins said. 
     ``When you address the high list price, then it's going to 
     help more people.''
       Collins warned that much could change as lawmakers keep 
     working with various stakeholders on a final bill, including 
     diabetes advocacy groups, the Centers for Medicare & Medicaid 
     Services, and the Congressional Budget Office. And as caps on 
     out-of-pocket expenses and list-price changes start 
     interacting, things get complicated, indeed.
       ``We're talking to CBO, which says it's so complex that 
     they need a new model,'' Collins said.
       The politics also remains tricky. Collins and Shaheen never 
     got their measure close to the Senate floor in 2019 and 2020 
     when Senate Minority Leader Mitch McConnell was majority 
     leader. They did attract some praise from both sides of the 
     aisle, and conservative North Dakota Republican Sen. Kevin 
     Cramer was a co-sponsor.
       While that opens the door to GOP support, Collins said she 
     was still only at the stage of circulating among her 
     colleagues what she called a discussion draft.
       Republicans in the House who voted against the $35-cap bill 
     panned it as a political stunt, saying Democrats should have 
     advanced ideas that had been worked on with Republicans.
       Such objections could not block the bill in the House. But 
     in the Senate, Democrats command only 50 votes, and it would 
     take 60 to pass the legislation.
       Although GOP members of the upper chamber might also be 
     opposed to Warnock's bill, one of the House sponsors argued 
     that having the House advance a dramatic cut in insulin 
     costs--with the support of only a dozen Republicans--would 
     raise the stakes for the Senate.
       ``If 10 Republicans stand between Americans being able to 
     get access to insulin or not, that's a good question for 10 
     Republican [senators] to have to answer when they go back 
     home,'' Rep. Dan Kildee (D-Mich.) said ahead of the House 
     vote. ``So we're gonna pass this bill, and this will put the 
     pressure on the Senate to act.''
       He and his fellow Democratic co-sponsors also signaled 
     their willingness to take a measure that included the Shaheen 
     and Collins additions.
       ``Any train that's leaving the station that gets folks 
     affordable insulin--I'm open to any vehicle,'' Kildee said. 
     ``We think this is a solution that would work. How it gets to 
     the president's desk, I'm agnostic on that question. Any way 
     we can get it there.''

  Mr. BRADY. Madam Speaker, I yield 1 minute to the gentleman from Ohio 
(Mr. Jordan).
  Mr. JORDAN. Madam Speaker, who are they going to harass? Who are 
these thousands of IRS bureaucrats, leftwing bureaucrats, Lois Lerners 
at the IRS, who are they going to harass? Middle-class families.
  We know who it is going to be. It is that assistant football coach at 
the local high school who teaches history and who has this side 
business. He mows lawns in the summer. He paints houses in the summer. 
He pays his taxes, but he is going to get harassed.
  We know how this works. We have seen it before.
  This bill raises taxes. It creates a whole new bureaucracy to go 
after taxpayers. Such a deal, using your tax money to come after you, 
the taxpayer. Such a deal for the taxpayer.
  My guess is they will all be working remotely. They won't have to pay 
the $5 to drive to work like people in our districts do. They will be 
working remotely, drinking their fancy coffee, going after the guy who 
is helping kids and has this side business in the summer. That is who 
this is going to come after, and we all know it. Everyone knows it. The 
country knows it.
  This is disgusting. I hope y'all vote ``no.''
  Mr. NEAL. Madam Speaker, I continue to reserve the balance of my 
time.
  Mr. BRADY. Madam Speaker, on behalf of seniors who rely on generic 
drugs, I include in the Record the following letter from generic and 
biosimilar manufacturers, which explains the price controls in this 
Democrat bill will reduce competition from lower-cost generic and 
biosimilar medicines. That means fewer options for patients and 
worsening drug shortages.

                                      The Biosimilars Council,

                                    Washington, DC, July 11, 2022.
     Hon. Charles E. Schumer,
     Majority Leader, U.S. Senate,
      Washington, DC.
       Dear Leader Schumer: The Association for Accessible 
     Medicines (AAM) and its Biosimilars Council share in the goal 
     of lowering prescription drug costs for America's patients 
     and seniors. However, in an effort to target high prices on 
     brand-name drugs, the proposed prescription drugs reforms--in 
     particular the Medicare negotiations framework--being 
     considered as part of a revised reconciliation package will 
     reduce patient savings from lower-cost generic and biosimilar 
     medicines. Even though competition from generic and 
     biosimilar medicines is the only proven solution to 
     consistently lower the cost of prescription drugs, the 
     proposed price setting scheme will reduce competition, harm 
     future savings from generic and biosimilar medicines, and 
     increase costs for employers and patients with private 
     insurance. We thus urge all U.S. Senators to oppose the 
     prescription drug reforms under consideration as part of a 
     revised Build Back Better reconciliation package.
       America's patients rightfully expect Congress to address 
     the ever-increasing prices of brandname prescription drugs. 
     High launch prices on new brand biologics, combined with an 
     increasing trend of anti-competitive patent and rebate ploys 
     designed to delay or prevent competition from more affordable 
     biosimilars and generics, are keeping access to medicines out 
     of reach for too many patients. These dynamics are compounded 
     by flawed policies that reward health plans and pharmacy 
     benefit managers (PBMs) for the use of high-cost, high-rebate 
     brand drugs and that allow plans and PBMs to raise out-of-
     pocket costs for generics, even as the prices for those same 
     generics are falling. As a result, patients, including 
     Medicare's seniors, are missing out on billions of dollars in 
     savings from biosimilars and generic drugs each year. 
     However, the proposed price setting approach fails to 
     adequately address these challenges, while dampening future 
     competition and reducing savings from generic and biosimilar 
     medicines.


Negotiations Framework Increases Uncertainty for Generic and Biosimilar 
                               Developers

       The proposal increases the risks associated with developing 
     generic and biosimilars without addressing the fundamental 
     barriers to competition from lower-cost medicines, such as 
     abuses of the patent system and brand rebate traps. The 
     proposed timelines for when the Secretary can initiate the 
     price setting process will significantly increase the risk to 
     develop new lower-cost generics and biosimilars. Although the 
     proposal exempts drugs with generic or biosimilar competition 
     from the price setting process, the bill only does so through 
     unrealistic timelines for that competition to enter the 
     market. For many complex generics and biosimilars, it can 
     take 8-10 years to develop new, more affordable medicines. 
     And it can take many more years to conclude patent litigation 
     and then launch a complex generic or biosimilar medicine. But 
     the new price setting process would not begin until years 
     after a developer commits to developing a lower-cost generic 
     or biosimilar. This means that generic and biosimilar 
     manufacturers will have no way to know whether a brand-name 
     drug will be selected for negotiation or what the negotiated 
     price may be. This dynamic fundamentally changes the ability 
     of generic and biosimilar manufacturers to plan and make 
     investment decisions that can be up to and exceed $250 
     million per drug.
       While the revised bill includes a provision that could 
     allow for a temporary delay of the negotiated price if the 
     Secretary determines a biosimilar launch was imminent, there 
     are a number of limitations on the provision make it 
     difficult to utilize. By way of example, a biosimilar 
     developer would need to show a ``high likelihood'' of 
     biosimilar competition by a ``clear and convincing'' 
     evidentiary standard. Moreover, the narrow two-year window to 
     launch does not appropriately account for how long it takes 
     developers to challenge brand-name patents. Large patent 
     estates and time-consuming patent litigation are currently 
     and will continue to prevent biosimilars from being able to 
     launch within two years of receiving FDA approval. These 
     dynamics will likely deter manufacturers from making 
     investments in biosimilar and generic medicines in some 
     instances--and will result in less competition and ultimately 
     higher costs for patients.


    Generic and Biosimilar Medicines Savings Exceeds Potential from 
                         Negotiations Framework

       After years of high-risk investment, biosimilar developers 
     are poised to deliver tremendous savings to the U.S. health 
     care system, improving access for patients and lowering 
     prescription drug costs. New

[[Page H7678]]

     biosimilars are expected to launch for a range of treatments 
     for patients with diabetes, arthritis, macular degeneration, 
     oncology and more. In the next few years, 42 biosimilars are 
     on track to launch. Gold-standard data firm IQVIA estimates 
     biosimilar savings of $30 billion annually as a result. In 
     comparison, the Congressional Budget Office estimates the 
     negotiations framework saves $18-24 billion per year from 
     2028 to 2031. Thus, more savings is projected from market-
     based competition than from the Build Back Better proposal 
     and it starts now. In addition, as more complex generics, 
     biosimilars, and interchangeable biologics become available, 
     there is the potential for even greater savings to the U.S. 
     health care system as providers and payers take advantage of 
     the opportunities to increase access and reduce costs for 
     patients.


 Negotiations Framework Increases Costs on Employers and Patients with 
                            Private Coverage

       Reduced competition from generic and biosimilar medicines 
     impacts all patients, not only Medicare beneficiaries. The 
     dampening effect this legislation would have on competition 
     would cause employers and patients with private insurance to 
     lose savings these populations have historically enjoyed from 
     robust generic competition and growing biosimilar 
     competition. Instead, there may be fewer new, more affordable 
     generic and biosimilar medicines, leaving the commercial and 
     employer markets captive to the high cost of brand-name 
     drugs.
       When reviewing a nearly identical proposal in the House-
     passed Build Back Better Act, AAM's Biosimilars Council 
     assessed the potential lost savings to the commercial market 
     for medicines used to treat asthma (Xolair) and rheumatoid 
     arthritis (Orencia), as examples. For just two products, lost 
     savings would be between $4-$7 billion between 2027-2030. 
     This is lost savings that would otherwise be used to lower 
     patient out of pocket costs and reduce insurance premiums for 
     employers and employees.
       For these reasons, we must oppose the Medicare negotiations 
     framework and its impact on patient access to lower-cost 
     medicines. There are other bipartisan steps to address patent 
     abuse and brand rebate traps that are already under 
     discussion in Congress that can meaningfully reduce drugs 
     costs without harming generic and biosimilar savings. We 
     strongly encourage Congress to reconsider its approach.
           Sincerely,
                                                      Dan Leonard,
                                                President and CEO.

  Mr. BRADY. Madam Speaker, I yield 1 minute to the gentleman from 
Tennessee (Mr. Burchett).
  Mr. BURCHETT. Madam Speaker, following   Jim Jordan is like why 
nobody wanted to follow Jimi Hendrix at Woodstock. It is going to be 
tough.
  But you never reduce burdens or inflation by increasing taxes $740 
billion. It is estimated that there is a $4,500 increase on the average 
family under this proposal. Instead, you simply create more government 
that never goes away.
  This is not an inflation reduction act. It is a woke climate bill 
that will increase inflation, Madam Speaker.
  Madam Speaker, my Democrat friends seem to have forgotten that 
capitalism is not the enemy; we are.
  I would also remind my colleagues across the aisle that, in 
Tennessee, we reduced taxes and regulations, and now we have record 
surpluses. Individuals and businesses are moving from your district to 
mine as fast as they can get there.
  Madam Speaker, the ranking member, who I call chairman, will be 
incredibly missed here in these Halls, but also more so out on the 
baseball field.
  Mr. NEAL. Madam Speaker, I am prepared to close. I reserve the 
balance of my time.
  Mr. BRADY. Madam Speaker, I yield myself the balance of my time.
  I include in the Record the following list of 586 credible voices of 
opposition to this bill. They include business leaders, taxpayer 
advocates, economists, and thought leaders who all say this bill will 
hurt Americans if passed today.

                       BBB2.0/ IRA Groups Opposed

       Alvere; American Action Forum; American Benefits Council; 
     American Coalition for Taxpayer Rights; American Enterprise 
     lnstitute; American Experiment; American Exploration & 
     Production Council (AXPC); America First Policy Institute 
     (AFPI); Americans for Prosperity KEY VOTE; American Petroleum 
     Institute; Americans for Prosperity; Americans for Tax Reform 
     KEY VOTE; Americans for Tax Reform KEY VOTE; Amgen; Arizona 
     Chamber; Associated Builders & Contractors (ABC); Associated 
     General Contractors of America; Association for Accessible 
     Medicines (AAM); Association for Accessible Medicines (AAM); 
     Association of Mature American Citizens (AMAC).
       AstraZeneca Pharmaceuticals LP; Beer Institute; Biocom 
     California; Biotechnology Innovation Organization (BIO); 
     Biotech Leaders (RA Capital Management, Viscient Biosciences, 
     No Patient Left Behind, Bay City Capital); Boehringer 
     Ingelheim; Business Roundtable; Bristol Myers Squibb; 
     California Biotech CEOs; California Life Sciences; Can 
     Manufacturers Institute; Catholic Vote KEY VOTE; Center for a 
     Free Economy; Center for Individual Freedom 2021; Center for 
     Urban Renewal and Education; Coalition of Minority Owned 
     Businesses (2021); Coalition of 14 Real Estate Organizations 
     (2021); Competitive Enterprise Institute (2021); Concerned 
     Women for America KEY VOTE.
       Council for Affordable Health Coverage; Council for 
     Citizens Against Government Waste; Council of State 
     Bioscience Associations; Club for Growth; CTIA; CURE: Center 
     for Urban Renewal and Education; Domestic Energy Producers 
     Alliance; Eli Lilly & Company; Exelon; Family Research 
     Council KEY VOTE; FDA Law Blog; Freedomworks KEY VOTE; 
     Gilead; Genentech; Heritage Action KEY VOTE; Heritage 
     Foundation (2021); Independent Electrical Contractors; 
     Independent Petroleum Association of America (IPAA); 
     Independent Women's Forum; Job Creators Network.
       Juneau Oil and Gas; Koch Network; The Libre Initiative; 
     Main Street Employers; AAHOA; AICC, The Independent Packaging 
     Association Air Conditioning Contractors of America; American 
     Building Materials Alliance (ABMA); American Hotel and 
     Lodging Association; American Pipeline Contractors 
     Association; American Supply Association; Associated Builders 
     and Contractors; Associated Equipment Distributors; 
     Associated General Contractors of America; Brick Industry 
     Association; Ceramic Tile Distributors Association; 
     Construction Industry Round Table; Convenience Distribution 
     Association; Distribution Contractors Association; Education 
     Market Association; Family Business Coalition.
       Financial Executives International (FEI); Foodservice 
     Equipment Distributors Association; Forest Resources 
     Association; Heating, Air-conditioning, & Refrigeration 
     Distributors; International Illinois Farm Bureau; Independent 
     Bakers Association; Independent Electrical Contractors; 
     Independent Insurance Agents & Brokers of America; 
     Independent Office Products & Furniture Dealers Association; 
     International Association of Plastics Distribution (IAPD); 
     International Foodservice Distributors Association 
     International Housewares Association; Main Street Employers 
     Coalition Manufactured Housing Institute; Material Handling 
     Equipment Distributors Association; Metals Service Center 
     Institute; National Association of Electrical Distributors; 
     National Association of Home Builders; National Association 
     of Professional Insurance Agents; National Association of 
     Sporting Goods Wholesalers; National Association of 
     Wholesaler-Distributors; National Cattlemen's Beef 
     Association; National Community Pharmacists Association.
       National Federation of Independent Business (NFIB); 
     National Grocers Association; National Independent Automobile 
     Dealers Association (NIADA); National Lumber & Building 
     Material Dealers Association; National Marine Distributors 
     Association; National Onion Association; National Restaurant 
     Association; National Roofing Contractors Association; 
     National Stone Sand and Gravel Association; National Wooden 
     Pallet & Container Association Nebraska Cattlemen; North 
     American Association of Food Equipment Manufacturers (NAFEM); 
     North American Equipment Dealers Association (NAEDA); Oregon 
     Cattlemen's Association; Outdoor Power Equipment and Engine 
     Service Association Plumbing-Heating-Cooling Contractors--; 
     National Association Power and Communication Contractors 
     Association; Reserve Organization of America (ROA) Retail 
     Bakers of America; S Corporation Association; Small Business 
     & Entrepreneurship Council Society of Collision Repair 
     Specialists (SCRS); Spray Polyurethane Foam Alliance.
       Subchapter S Bank Association; Textile Care Allied Trades 
     Association; The Hardwood Federation; Tile Roofing Industry 
     Alliance; Truck Renting and Leasing Association; WASDA--Water 
     and Sewer Distributors of America Western States; Roofing 
     Contractors Association; Wisconsin Grocers Association; 
     Wisconsin Small Businesses United Wyoming Farm Bureau 
     Federation; Wyoming Farm Bureau Federation; Managed Funds 
     Association; March for Life Action KEY VOTE; Merck; National 
     Association of Home Builders; National Association or 
     Manufacturers (NAM); National Association of Small Trucking 
     Companies; National Association of Wholesaler-Distributors; 
     National Black Chamber or Commerce (2021); Nebraska Farm 
     Bureau; NFIB.
       National Multifamily Housing Council (2021); National 
     Restaurant Association; National Right to Life KEY VOTE; 
     National Taxpayers Union KEY VOTE; National Taxpayers Union 
     KEY VOTE; National Taxpayers Union KEY VOTE; National Venture 
     Capital Association; Nebraska Farm Bureau; Novartis; Novo 
     Nordisk; Pacific Research Institute; Paragon Health 
     Institute; 31 Pharmaceutical CEOs (CA); PhRMA; Pfizer; Pink 
     Sheet: Informa Pharma Intelligence; Rapport: Biotech; Real 
     Estate Roundtable; R Street Institute; Sanofi.
       Small Business and Entrepreneurship Council; States Trust; 
     Susan B. Anthony Pro-Life America KEY VOTE; Taxpayers 
     Protection Alliance (2021); Taxpayers Protection Alliance; 
     USA Retirement; U.S. Chamber of Commerce; U.S. Natural Gas 
     and Oil Industry Trade Groups; American Exploration and 
     Production Council (AXPC);

[[Page H7679]]

      American Fuel & Petrochemical Manufacturers (AFPM); American 
     Petroleum Institute (API); Arkansas Independent Producers and 
     Royalty Owners; Arkansas Oil Marketers Association; 
     Associated Builders & Contractors West Virginia; Associated 
     Industries of Florida; Associated Industries of Missouri; 
     California Independent Petroleum Association (CIPA); 
     Chemistry Industry Council of Illinois; Colorado Oil and Gas 
     Association; Colorado Wyoming Petroleum Marketers 
     Association.
       Energy Workforce & Technology Council; Florida Independent 
     Petroleum Producers Association; Florida Natural Gas 
     Association; Florida Petroleum Marketers Association; Florida 
     Propane Gas Association; Florida State Hispanic Chamber of 
     Commerce; Florida Transportation Builders Association; 
     Floridians for Better Transportation; Fuel Iowa; Georgia 
     Association of Convenience Stores; Georgia Mining 
     Association; Illinois Fuel Retails Association; Illinois 
     Manufacturers Association; Illinois Retail Merchants 
     Association; Independent Petroleum Association of America; 
     Kansas Independent Oil & Gas Association (KIOGA); Louisiana 
     Association of Business and Industry; Louisiana Oil and Gas 
     Association; Manufacture Alabama; Michigan Association of 
     Convenience Stores.
       Michigan Oil and Gas Association; Michigan Petroleum 
     Association; Minnesota Service Station & Convenience Store 
     Association; New Mexico Business Coalition; New Mexico Oil 
     and Gas Association; North Carolina Chamber; North Carolina 
     Petroleum & Convenience Marketers Association; North Dakota 
     Petroleum Council; Ohio Energy and Convenience Association; 
     Ohio Manufacturers Association; Ohio Oil and Gas Association; 
     Pennsylvania Chamber of Business & Industry; Pennsylvania 
     Grade Crude Oil Coalition; Pennsylvania Independent Oil & Gas 
     Association (PIOGA); Pennsylvania Independent Petroleum 
     Producers; Pennsylvania Manufacturers Association; Permian 
     Basin Petroleum Association; Petroleum Association of Wyoming 
     (PAW); Plumbing-Heating-Cooling Contractors--National 
     Association; South Dakota Petroleum and Propane Marketers 
     Association; Texas Alliance of Energy Producers; Texas 
     Independent Producers & Royalty Owners Association (TIPRO); 
     The Coalbed Methane Association of Alabama; The James Madison 
     Institute; The Petroleum Alliance of Oklahoma; West Slope 
     Colorado Oil & Gas Association; WSJ Editorial Board.

  Mr. BRADY. I include in the Record the following letter from dozens 
of Main Street businesses opposing the Democrats' bill because of the 
IRS' targeting of their business under the bill and tax hikes on small 
businesses.

                                                  August 11, 2022.
     Hon. Nancy Pelosi,
     Speaker of the House,
     House of Representatives,
     Washington, DC.
     Hon. Kevin McCarthy,
     House Minority Leader, House of Representatives,
     Washington, DC.
     Hon. Charles Schumer,
     Senate Majority Leader, U.S. Senate,
     Washington, DC.
     Hon. Mitch McConnell,
     Senate Minority Leader, U.S. Senate,
     Washington, DC.
       Dear Speaker Pelosi, Leader McCarthy, Leader Schumer, and 
     Leader McConnell: The undersigned organizations represent 
     millions of Main Street businesses and employ tens of 
     millions of workers and we oppose the Senate-passed Inflation 
     Reduction Act.
       Inflation is at 40-year highs, we have had two consecutive 
     quarters of negative economic growth, and we are witnessing a 
     shrinking small business sector, yet the Inflation Reduction 
     Act does nothing to address these immediate issues even as it 
     increases the burden of the tax code shouldered by America's 
     small and family-owned businesses.
       The Biden Administration claims the savings in the IRA are 
     ``front-loaded'' and will reduce the deficit in the short-
     term, helping to ease inflationary pressures. That is simply 
     not the case. Recent analysis by the Congressional Budget 
     Office, Penn-Wharton, and others shows the Inflation 
     Reduction Act would increase prices in the short term and do 
     little to bring them down in the long run.
       At the same time, the bill would give the IRS an additional 
     $80 billion in funding, more than half of which would pay for 
     thousands of additional IRS agents to conduct millions of 
     additional audits. We support addressing the tax gap and 
     oppose illegal tax evasion, but as former National Taxpayer 
     Advocate Nina Olson observed recently, it is wrong and 
     counterproductive to characterize the entire tax gap as 
     willful tax evasion. From experience, we know many, if not 
     most, of these additional audits will be conducted on the 
     owners of family businesses who have fully complied with the 
     tax code.
       Finally, the Warner Amendment adopted at the last minute 
     presented the Senate with a clear choice between Wall Street 
     and Main Street, and the Senate chose Wall Street. The 
     amendment extends for two years the Section 461(l) cap on 
     losses a business owner is permitted to claim. This $52 
     billion tax hike on pass-through businesses was adopted with 
     almost no consideration, and the revenues it raises were used 
     to offset the cost of exempting private equity investors from 
     the fifteen-percent corporate minimum tax. The cap on active 
     pass-through less deductions is bad policy at any time, but 
     it is particularly harmful when the economy is weak and an 
     increasing number of businesses are suffering losses. The 
     timing of this amendment's adoption could not have been 
     worse.
       The Inflation Reduction Act would fail to reduce price 
     pressures even as it raises the cost of the tax code to small 
     and family-owned businesses at a time of economic weakness. 
     We ask that you reject the IRA's Main Street tax hike when it 
     is considered by the full House.
           Sincerely,
       AAHOA; AICC, The Independent Packaging Association; Air 
     Conditioning Contractors of America; American Building 
     Materials Alliance (ABMA); American Hotel and Lodging 
     Association; American Pipeline Contractors Association; 
     American Supply Association; Associated Builders and 
     Contractors; Associated Equipment Distributors; Associated 
     General Contractors of America; Brick Industry Association; 
     Ceramic Tile Distributors Association; Construction Industry 
     Round Table; Convenience Distribution Association; 
     Distribution Contractors Association; Education Market 
     Association; Family Business Coalition; Financial Executives 
     International (FEI); Foodservice Equipment Distributors 
     Association.
       Forest Resources Association; Heating, Air-conditioning, & 
     Refrigeration Distributors International; Illinois Farm 
     Bureau; Independent Bakers Association; Independent 
     Electrical Contractors; Independent Insurance Agents & 
     Brokers of America; Independent Office Products & Furniture 
     Dealers Association; International Association of Plastics 
     Distribution (IAPD); International Foodservice Distributors 
     Association; International Housewares Association; Main 
     Street Employers Coalition; Manufactured Housing Institute; 
     Material Handling Equipment Distributors Association; Metals 
     Service Center Institute; National Association of Electrical 
     Distributors; National Association of Home Builders; National 
     Association of Professional Insurance Agents; National 
     Association of Sporting Goods Wholesalers; National 
     Association of Wholesaler-Distributors.
       National Cattlemen's Beef Association; National Community 
     Pharmacists Association; National Federation of Independent 
     Business (NHB); National Grocers Association; National 
     Independent Automobile Dealers Association (NIADA); National 
     Lumber & Building Material Dealers Association; National 
     Marine Distributors Association; National Onion Association; 
     National Restaurant Association; National Roofing Contractors 
     Association; National Stone Sand and Gravel Association; 
     National Wooden Pallet & Container Association; Nebraska 
     Cattlemen; North American Association of Food Equipment 
     Manufacturers (NAFEM); North American Equipment Dealers 
     Association (NAEDA); Oregon Cattlemen's Association; Outdoor 
     Power Equipment and Engine Service Association; Plumbing-
     Heating-Cooling Contractors--National Association; Power and 
     Communication Contractors Association.
       Reserve Organization of America (ROA); Retail Bakers of 
     America; S Corporation Association; Small Business & 
     Entrepreneurship Council; Society of Collision Repair 
     Specialists (SCRS); Spray Polyurethane Foam Alliance; 
     Subchapter S Bank Association; Textile Care Allied Trades 
     Association; The Hardwood Federation; Tile Roofing Industry 
     Alliance; Truck Renting and Leasing Association; WASDA--Water 
     and Sewer Distributors of America; Western States Roofing 
     Contractors Association; Wisconsin Grocers Association; 
     Wisconsin Small Businesses United; Wyoming Farm Bureau 
     Federation.

  Mr. BRADY. Madam Speaker, a year ago, we met to consider another 
disastrous version of this bill. Since then, American families and Main 
Street businesses have been facing and continue to face historic 
inflation and, now, a recession.
  This bill is a hoax on the American people. Americans who are 
suffering the most in President Biden's cruel economy will soon know 
this firsthand. They will know it because inflation will get worse, 
according to the Penn Wharton School of Business analysis.
  Parents sitting up at night will notice higher taxes, fewer jobs, and 
lower wages as they pay for the vast majority of any new revenue 
collected under this bill, according to Congress' own nonpartisan 
scorekeeper.
  A middle-income single mom with two kids who runs her own business 
will know it when she comes home from Walmart and finds a letter from 
the IRS telling her she is under audit.
  Seniors and loved ones with life-threatening illnesses will arrive at 
the pharmacy counter and break into a sweat when they see they cannot 
afford their medicine.
  Families with loved ones newly diagnosed with Alzheimer's, or cancer, 
or ALS, and desperately seeking treatment will wonder whether the cure 
for their disease will ever come.
  The wealthiest and the biggest foreign-owned corporations will do 
just

[[Page H7680]]

fine. They are getting hundreds of billions of dollars of government 
handouts under this bill. After all, they get the government checks 
paid for by the middle-class taxpayers who are getting squeezed.
  This is a sad day for struggling American families and Main Street 
businesses. This economy is cruel enough, but by voting to turn this 
hoax into law, Congress is inflicting one more act of cruelty.
  Madam Speaker, I urge opposition to this bill, and I yield back the 
balance of my time.
  Mr. NEAL. Madam Speaker, I yield myself the balance of my time.
  This is a big day, and this is a big deal. We are putting people out 
front and making good on the promises we have made, lowering drug 
prices and investing in our climate.
  A mountain-high pile of legislative achievements have we: the 
American Rescue Plan, the CHIPS and Science Act, and now this 
achievement for the American people.
  Lyndon Johnson was right: ``Yesterday is not ours to recover, but 
tomorrow is ours to win or lose.''
  With the Inflation Reduction Act headed to the President's desk--and 
give Joe Biden credit--we stand here assured that tomorrow is ours to 
win.
  We have had bold dreams in this Congress, and we have delivered big 
on those dreams. None of this would have been possible without the 
dedication and expertise of the staff of the Ways and Means Committee, 
the best in the business. They have worked nonstop for 2 years for the 
American people, and today, their hard work is on display for the world 
to witness and await the President's signature.
  The Inflation Reduction Act sets our Nation on a healthier, fairer, 
and more prosperous path.
  Madam Speaker, I urge our colleagues to support this critical 
legislation, and I yield back the balance of my time.
  The SPEAKER pro tempore. The gentleman from New Jersey (Mr. Pallone) 
and the gentleman from Kentucky (Mr. Guthrie) will each control 30 
minutes.
  The Chair recognizes the gentleman from New Jersey.
  Mr. PALLONE. Madam Speaker, I yield myself 3 minutes.
  Madam Speaker, I rise in strong support of H.R. 5376, the Inflation 
Reduction Act. This is landmark legislation that is going to help 
reduce costs for American families while finally aggressively tackling 
the climate crisis.
  Madam Speaker, we simply cannot wait any longer to confront the 
climate crisis. Extreme weather events are becoming more frequent and 
more extreme. There are record-high temperatures across the Nation this 
summer. These extreme weather events cost families their loved ones, 
their homes, and their livelihoods.
  This bill is the single largest investment in climate action in 
American history. We heard from the Ways and Means Committee about the 
tax credits, the investment production tax credits for renewables, for 
electric vehicles. I want to talk about the provisions from the Energy 
and Commerce Committee.
  The bill makes unparalleled investments in climate, clean energy, and 
environmental justice so that we can slash climate pollution and meet 
our aggressive climate goals.
  I want to highlight some of the things: a methane emissions reduction 
program, a greenhouse gas reduction fund to promote new green 
technology, investing in manufacturing that is green, reducing 
industrial emissions; a program for States and government entities to 
reduce climate pollution, a program for clean heavy-duty vehicles for 
trucks and school buses to make them less polluting, an appliance and 
building efficiency rebate to try to deal with emissions from buildings 
and appliances, an industrial emissions reduction program; 
environmental and climate justice block grants, and also provisions to 
deal with ports that are a major source of pollution.
  All of these are designed, basically, to try to create clean jobs and 
to reduce energy costs for the average family. We estimate it at about 
$1,800 a year. It is estimated that this bill will actually reduce the 
pollution of greenhouse gases into the climate by 40 percent, in terms 
of what the U.S. has emitted since 2005.
  It goes very far toward achieving our goals as a Nation, toward 
reducing the problem of greenhouse gas emissions.

                              {time}  1430

  In addition to that, the Inflation Reduction Act is also one of the 
most significant pieces of healthcare legislation moved through 
Congress in over a decade. I want to stress this: It breaks Big 
Pharma's monopoly on prescription drug prices.
  The bill will lower prescription drug costs for seniors by finally 
empowering Medicare to negotiate the cost of prescription drugs. It 
also caps the amount that seniors pay at $2,000 annually, caps the cost 
of insulin at $35 a month, and penalizes companies that unfairly hike 
prices by forcing them to pay a rebate to the Federal Government if 
their prices rise more than inflation.
  This legislation is necessary because, nearly 20 years ago, 
Republicans prevented the Federal Government from negotiating prices 
for seniors. So, today, we are finally leveling the playing field to 
ensure seniors are no longer forced to choose between putting food on 
their tables and their life savings.
  The SPEAKER pro tempore. The time of the gentleman has expired.
  Mr. PALLONE. Madam Speaker, I yield myself an additional 30 seconds.
  Finally, I want to say that this legislation will also dramatically 
lower the cost of healthcare for millions of Americans by extending 
enhanced Affordable Care Act marketplace premium subsidies.
  These enhanced subsidies are making a real difference for families, 
delivering an average savings of $2,400 a year for a family of four. 
They are set to expire at the end of the year, but this bill extends 
them through the end of 2025.
  Madam Speaker, this legislation lays the foundation for a cleaner, 
more prosperous future for all Americans. I urge my colleagues to 
support it, and I reserve the balance of my time.
  Mr. GUTHRIE. Madam Speaker, I yield myself 5 minutes.
  Madam Speaker, I rise today in strong opposition to H.R. 5376, the 
mislabeled Inflation Reduction Act.
  This is another reckless tax and spending spree that is not being 
accurately portrayed to the American people by Democrats.
  Washington Democrats are trying to convince Americans that adding 
more reckless government spending and raising taxes during a recession 
will combat inflation. Even nonpartisan organizations say this bill 
will have virtually no impact on inflation and at least half of the 
expected tax revenue for next year is estimated to come from Americans 
making less than $400,000 a year.
  Americans will see more IRS audits because this bill gives the IRS 
the ability to hire an army of new IRS agents. People should pay the 
taxes they owe, but instead of an army of IRS agents focusing on 
auditing low- to middle-income Americans, we need to put our resources 
into hiring more Border Patrol officers to protect the border and stop 
the flow of illicit drugs such as fentanyl.
  More troubling parts of this bill are the healthcare provisions. I 
strongly disagree with using Medicare money to pay for ObamaCare 
subsidies for the wealthy. I introduced an amendment to keep Medicare 
savings in Medicare, which is already at risk of insolvency in the very 
near future. Unfortunately, House Democrats didn't even give this 
amendment a chance to be considered.
  While Democrats praise government price setting, or, as they call it, 
negotiation, they fail to mention that such policies would lead to at 
least 15 fewer drugs coming to market, according to the nonpartisan 
Congressional Budget Office.
  What are the 15 cures? Could it be the cure for Alzheimer's? Could it 
be the cure for diabetes? It could be.
  They also won't mention that the nonpartisan CBO said this bill will 
lead to higher prices on new drugs.
  Finally, Democrats are voting to give Secretary Becerra a $3 billion 
slush fund to set drug prices, despite HHS botching the response to the 
COVID-19 pandemic, including politicizing guidance that kept schools 
closed and young children masked in Head Start programs.
  How can anyone support giving billions of dollars in more 
unrestricted authority to HHS that we know will lead to fewer cures for 
our loved ones?
  Let me be clear: We absolutely need to address the cost of 
prescription

[[Page H7681]]

medication. In the Energy and Commerce Committee, there is a bipartisan 
bill ready to go, H.R. 19, that could achieve this, but the Democrats 
have repeatedly refused to bring the bill to the floor for a vote.
  Our country is also facing an energy crisis created by President 
Biden and Washington Democrats' war on American energy. Despite this, 
the Democrats' solution is to double down on the nearly $400 billion to 
be spent on far-left Green New Deal policies and impose billions of 
dollars of tax increases on energy that will be passed to consumers.
  Unbelievably, even as energy prices are at historically high levels, 
they have included a new tax on natural gas and revived a tax on 
petroleum products that will cost consumers tens of billions of 
dollars.
  I filed an amendment to exempt our defense bases from this natural 
gas tax, but again, Democrats refused even to consider it.
  Democrats want to create a $27 billion slush fund at the EPA for a 
national climate bank to subsidize the solar energy that is heavily 
dominated by the Chinese Communist Party and even spend $9 billion in 
rebates for wealthy Americans to green up their homes with new 
appliances and electric vehicles.
  To conclude, this legislation not only crushes hope for patients and 
their families living with devastating diseases that currently lack a 
treatment or a cure, but it also significantly undermines our economic 
and national security.
  I cannot vote for the more appropriately named inflation expansion 
act. Madam Speaker, I urge my colleagues to join me in opposing it, and 
I reserve the balance of my time.

  Mr. PALLONE. Madam Speaker, I yield 1\1/2\ minutes to the gentlewoman 
from Delaware (Ms. Blunt Rochester), my neighbor from the State of 
Delaware and a member of the Committee on Energy and Commerce.
  Ms. BLUNT ROCHESTER. Madam Speaker, today, I rise in support of the 
Inflation Reduction Act.
  Oh, what a day in America. From lowering prescription drug prices for 
seniors, to closing tax loopholes on the wealthiest corporations, to 
making the largest investment in clean energy in history to tackle the 
climate crisis, the Inflation Reduction Act will help improve the lives 
of every single American. It will do it all while paying down the 
deficit.
  I am particularly proud that the bill includes my climate smart ports 
provisions with my colleague, Ms. Barragan, which invests in ports 
across the Nation, like the Port of Wilmington, allowing them to 
upgrade their facilities, lower their carbon footprint, and create more 
good-paying union jobs.
  Madam Speaker, in a session of Congress that has already seen 
remarkable landmark legislation passed, the Inflation Reduction Act is 
the capstone of our efforts to deliver. With this bill, we continue to 
put people over politics.
  Mr. GUTHRIE. Madam Speaker, I yield 2 minutes to the gentleman from 
Michigan (Mr. Upton), the chair emeritus of the Committee on Energy and 
Commerce, who is retiring. We are going to miss him.
  Mr. UPTON. Madam Speaker, does anyone actually believe this bill is 
going to reduce inflation?
  I didn't think so.
  Those of you that know me know that I am not afraid to work across 
the aisle on important legislation that helps Americans, whether it was 
the 21st Century Cures Act, the CHIPS Act, the veterans' PACT Act, or 
the infrastructure bill. Unfortunately, the bill that we are debating 
right now was not created in that same bipartisan manner.
  Our economy is in a fragile state as we emerge from this pandemic. We 
have seen decades-high inflation that is crushing Main Street and 
squeezing the middle class. Now is not the time to raise taxes to the 
tune of over $16 billion on middle-income folks around the country.
  The Inflation Reduction Act does nothing to fix the insidious 
problems at the IRS. Instead, they are going to throw more than $80 
billion to hire more agents who are going to be tasked with hounding 
taxpayers who report passthrough business income through Schedule C and 
Schedule E. These folks are, by and large, middle-income, family-owned 
small business owners who busted their butts to keep their doors open 
through the pandemic, and now we are sending the cavalry after them, 
leading to higher compliance costs and time wasted that will increase 
costs for all Americans.
  The IRS needs to be focused on clearing the backlog of millions of 
personal and business returns. I have literally helped hundreds of 
constituents who have been waiting 1 to 2 years for their tax refunds.
  With respect to inflation, a number of nonpartisan sources, including 
some previously touted by supporters of this bill, have said that this 
bill will cause inflation to increase over the first couple of years.
  The energy sector has seen the brunt of this increase, with gas 
prices climbing more than $2.30 a gallon and natural gas prices going 
up close to double.
  On Wednesday, I offered an amendment at the Committee on Rules that 
would direct the bill not to go into effect until the Secretary of 
Energy can certify that energy prices are below the costs of 2021.
  Madam Speaker, I ask my colleagues to vote ``no.''
  Mr. PALLONE. Madam Speaker, I yield 1 minute to the gentleman from 
Illinois (Mr. Casten).
  Mr. CASTEN. Madam Speaker, last November, our House delegation went 
to Glasgow for the COP26 conference. We told the world that we were 
back, that we had rejoined the Paris climate accord, and that we were 
committed to building back better and committed to putting science over 
politics. It felt pretty good.
  But to be blunt, the world didn't believe us. As we sat at that press 
conference, all of these reporters from Europe said: What about the 
Senate? What about the filibuster? What if Republicans take over in the 
midterms?
  They had heard this song before. They admired our enthusiasm, but as 
you know, Madam Speaker, they really didn't share it.
  Today, we are going to prove them wrong. We are going to remind them 
what the United States is capable of. We are about to pass the most 
impactful climate bill ever. You all should be proud of that. You were 
here to share this moment with us. We are on the path to reducing 
CO2 emissions by 40 percent by 2030. That is a really big 
deal.
  But it is only a start because 40 percent ain't enough. We have 
reestablished U.S. credibility today, but we still have to establish 
U.S. leadership. The measure of our success is not what we pass today; 
it is whether the planet is cooler tomorrow.
  Today, we remind the world and ourselves what we are capable of. I 
hope we celebrate. But tomorrow, let's get back to work.
  Mr. GUTHRIE. Madam Speaker, I reserve the balance of my time.
  Mr. PALLONE. Madam Speaker, I yield 1\1/2\ minutes to the gentleman 
from California (Mr. Ruiz), a member of the Committee on Energy and 
Commerce.
  Mr. RUIZ. Madam Speaker, as a doctor, I have taken care of many 
patients who put their lives and health at risk because they couldn't 
afford their medication, patients who either ration their medicine or 
didn't get a prescription filled at all.
  I will never forget one woman who was so proud to tell me that she 
was able to make her insulin last longer because she would only take 
half a dose at a time in order to make it last. This is unacceptable.
  No one should have to choose between whether to take their medicine 
and put food on their table or between their health and not being able 
to pay their bills.
  That is why I support the Inflation Reduction Act, which will give 
seniors the relief that they need from skyrocketing drug costs. It 
ensures that people on Medicare with diabetes won't have to pay more 
than $35 a month for their insulin. It requires the Secretary of HHS to 
negotiate drug prices for expensive Medicare drugs, lowering costs for 
seniors and people with disabilities, and it caps out-of-pocket 
spending at $2,000 per year for Medicare part D.

  These important steps will help ensure that all seniors have access 
to lifesaving and health-saving medications, regardless of how much 
money they have.

[[Page H7682]]

  That is not all this bill does. This bill will make transformational 
investments to combat climate change and reduce our carbon emissions. 
It will push automakers to make their electric vehicle batteries with 
domestic materials, like the lithium we are extracting at the southern 
end of the Salton Sea in Imperial County.
  With this bill and the lithium in my district, we can power our clean 
energy future here in America with American materials.
  Mr. GUTHRIE. Madam Speaker, I yield 3 minutes to the gentleman from 
Texas (Mr. Burgess), my good friend on the Committee on Energy and 
Commerce.
  Mr. BURGESS. Madam Speaker, I thank the gentleman from Kentucky for 
yielding.
  Madam Speaker, I include in the Record a letter submitted by the 
members of the House GOP Doctors Caucus.

                                    Congress of the United States,


                                     House of Representatives,

                                   Washington, DC, August 6, 2022.
     Hon. Chuck Schumer,
     Majority Leader, U.S. Senate,
     Washington, DC.
     Hon. Nancy Pelosi,
     Speaker of the House, House of Representatives,
     Washington, DC.
       Dear Leader Schumer and Speaker Pelosi: We write to express 
     our strong opposition to the government drug price control 
     policies in your reconciliation package. As medical providers 
     and Members of Congress, we are deeply concerned with the 
     harm these provisions will cause to patients across the 
     country.
       The GOP Doctors Caucus has continuously worked to ensure 
     that physician practices can stay open to continue treating 
     patients. We have heard directly from providers that the cuts 
     proposed in this bill will jeopardize patient access to care. 
     According to Avalere, changes to the Medicare Part B 
     physician-administered drug reimbursement would lead to an 
     average cut of 39.8 percent for health care providers. The 
     confluence of these cuts, including the 0 percent payment 
     update, the reduction of the 4.5 percent Medicare conversion 
     factor, and the adoption of several changes to the Evaluation 
     and Management (E/M) Current Procedural Terminology codes, 
     threatens the sustainability of medical practices and will 
     lead to physicians closing their doors.
       It is irresponsible to divert seniors' Medicare dollars to 
     pay subsidies to non-Medicare insurance companies, yet this 
     plan would do just that. The proposal will take ``savings'' 
     from the drug price controls in the Medicare program to pay 
     for expanded health insurance subsidies under the Affordable 
     Care Act (ACA). This is money going to insurance companies 
     and their bottom line; this is not money going directly 
     towards care in any way. These expanded subsidies were 
     originally part of the inflation-creating American Rescue 
     Plan Act (ARPA). ARPA removed the income cap restricting 
     access to premium tax credits, opening the door to taxpayer-
     funded subsidies for some of the wealthiest Americans. Some 
     families making more than $500,000 annually now have access 
     to expanded ACA subsidies, and they will continue to if this 
     proposal goes through. Robbing Medicare to enhance the profit 
     for insurance company shareholders and executives does 
     nothing to improve anyone's health. To us, this is 
     unconscionable.
       If this plan is passed into law, millions of patients could 
     die waiting for new drugs and cures that will no longer be 
     developed in their lifetime. Government price controls have 
     consequences. The Congressional Budget Office has 
     conservatively estimated that 15 fewer drugs will be 
     developed over the next 30 years under this bill, Another 
     study found that only six out of 11 currently approved 
     therapies would have been brought to the market if this 
     framework were in place.
       Any cure lost is one too many. As Members of Congress who 
     have been involved in patient care, we understand the real-
     world impact that this will have on patients. Many of us have 
     treated patients with chronic and life-threatening diseases. 
     We've seen expensive surgeries and intensive inpatient care 
     be eliminated by the development of new therapies. This 
     development and innovation will all but go away, leaving 
     patients without hope for improved quality of life and long-
     term savings.
       We remain concerned that this proposal will also put the 
     government in control of Americans' medical decisions. This 
     is another clear example of a policy crafted by politicians 
     who have never seen a patient. The bill calls for a 95 
     percent excise tax if drug companies do not accept the price 
     government bureaucrats put in place. Top down, ``take it or 
     leave it'' government price negotiation isn't a negotiation 
     at all--it's government price fixing.
       This reconciliation package under consideration applies 
     upward pressure on drug pricing. The bill subjects a company 
     to negotiation once its seven-year exclusivity expires. As a 
     result, companies could introduce drugs into the marketplace 
     with high list prices, causing premium increases for 
     healthier individuals enrolled in employer-sponsored plans.
       In summary, this reconciliation package will have grave 
     consequences for patients and patient care:
       This price setting scheme put forth in this bill will 
     endanger patient access to care by cutting provider 
     reimbursement on impacted Part B drugs by an average of forty 
     percent.
       The bill does nothing to address other ongoing Medicare 
     provider payment cuts set to begin in 2023.
       If this plan is passed into law, millions of patients could 
     die waiting for new drugs and cures that will no longer be 
     developed in their lifetime.
       Government price controls have consequences, and one lost 
     cure is one too many.
       This plan robs Medicare to pay subsidies to insurance 
     companies and other non-health related expenditures.
       As medical providers in Congress, we urge you to recognize 
     the danger this proposal will have on patients. We can and 
     should work on a bipartisan basis to lower drug costs without 
     sacrificing the cures and treatments that will provide for a 
     healthier future.
           Sincerely,
         Brad R. Wenstrup, D.P.M., Member of Congress; --Andy 
           Harris, M.D., Member of Congress; ----Roger W. 
           Marshall, M.D., United States Senator; --Rand Paul, 
           M.D., United States Senator; ---Larry Bucshon, M.D., 
           Member of Congress; ---Neal P. Dunn, M.D., Member of 
           Congress; ---Michael C. Burgess, M.D., Member of 
           Congress; Bill Cassidy, M.D., United States Senator; 
           John Barrasso, M.D., United States Senator; John 
           Boozman, M.D., United States Senator; Earl L. ``Buddy'' 
           Carter, R.Ph., Member of Congress; Brian Babin, D.D.S., 
           Member of Congress.
         A. Drew Ferguson, IV, D.M.D, Member of Congress; --Scott 
           DesJarlais, M.D., Member of Congress; ---Ronny L. 
           Jackson, M.D., Member of Congress; ---Gregory F. 
           Murphy, M.D., Member of Congress; ---Mark E. Green, 
           M.D., Member of Congress; ---John Joyce, M.D., Member 
           of Congress; Jefferson Van Drew, D.M.D., Member of 
           Congress; Mariannette J. Miller-Meeks, M.D., Member of 
           Congress; Diana Harshbarger, Pharm. D., Member of 
           Congress.

  Mr. BURGESS. Madam Speaker, this is a letter that explains how 
healthcare policies included in the Inflation Reduction Act would 
affect American patients. There are 21 healthcare professionals who 
signed this letter.
  It is remarkable that none of our concerns were considered--all were 
ignored--not only as Members of the House and Senate but as healthcare 
professionals, as well.
  The point of the letter is that this legislation will do the exact 
opposite of what the Democrats intend. Unfortunately, the legislation 
will kill research and development, reduce quality of care, and 
threaten patient access to lifesaving drugs.
  Under this legislation, we are going to see changes to part B drug 
reimbursements that will lead to an average of a 40 percent cut for 
healthcare providers, doctors who provide care to Medicare patients in 
their offices.
  Currently, part B reimbursements for administering drugs in a 
physician's office are a calculation based on the average sales price 
plus 6 percent. Under this new system, part B payments to physicians 
are going to be calculated off of the maximum fair price. It is an 
attractive term, but no one knows what it means. It is yet to be 
determined by whom? The Secretary of Health and Human Services. We have 
all seen how trustworthy they have been over the past 2 years.
  The current 6 percent average sales price add-on payments to 
physicians, which is what doctors have come to rely on now to run their 
practices, will be based on a significantly lower government-set price 
versus the traditional market-priced ASP. This results in significantly 
lower payments to physicians.
  Now, Wednesday afternoon late, at the Committee on Rules, I offered 
an amendment with Dr. Murphy to fix this problem. Unfortunately, that 
was rejected on a party-line vote.
  These payment cuts threaten the sustainability of medical practices 
and will lead--let me say that again--will lead to physicians closing 
their doors. When practices close, the patient need does not disappear. 
Care will then shift to hospitals.

                              {time}  1445

  This will ultimately lead to an increase in healthcare costs and a 
decrease in the quality of care provided, and it will limit access to 
treatments for patients across the country.
  From experience working in private practice, I can attest that there 
are significant consequences of consolidation. Here is the bottom line: 
Democrats are using Medicare as a piggy bank to pay for other things. 
What

[[Page H7683]]

other things? Oh, like subsidies to insurance companies. They want to 
reward insurance companies and punish doctors. It makes no sense.
  This legislation will do the exact opposite of what Democrats intend. 
It is going to kill research and development. It is going to reduce the 
quality of care. It is going to threaten patient access to lifesaving 
drugs.
  As the most senior doctor in Congress and someone who deeply cares 
about the well-being of American patients, this bill is antidoctor and 
antipatient. We will live to see the consequences of this after final 
passage, I promise you that.
  Mr. PALLONE. Madam Speaker, I yield 1\1/2\ minutes to the gentleman 
from Florida (Mr. Soto), another member of the Energy and Commerce 
Committee.
  Mr. SOTO. Madam Speaker, we have been elected to Congress to solve 
the greatest challenges of our time, and today, we are doing just that.
  We are taking action to combat climate change.
  We are taking action to lower drug prices for seniors with a $2,000 
cap on out-of-pocket expenses.
  We are taking action to keep ObamaCare affordable for millions of 
Floridians.
  We are taking action by increasing vaccine access with our HAPPY Act.
  We are doing it all while reducing the deficit by over $300 billion 
over the next 10 years.
  We are lowering costs; we are fighting inflation; and we are saving 
the planet. This is the largest investment to resolve the climate 
crisis in our Nation's history. It will reduce carbon emissions by 40 
percent by 2030.
  When generations look back years from now, they will read that this 
was a turning point. How many more category 5 hurricanes, how many more 
massive wildfires, deadly floods, dried-up rivers, and record heat 
waves do you need?
  How many more seniors have to get sick or die because they can't 
afford their medication?
  How many more families have to be kicked off their health insurance?
  How much longer before you all get it?
  We are not waiting any longer. The Republicans' plan is to do 
nothing. In contrast, we in the Democratic majority will lead. Today, 
we will act. Today, we will do what is necessary to protect this 
generation and the next.
  Mr. GUTHRIE. Madam Speaker, I include in the Record an editorial from 
The Wall Street Journal titled, ``Tilting at Climate Windmills,'' which 
notes that the massive spending bill reduces global temperatures at the 
most by 0.28 degrees.

                     [From the Wall Street Journal]

                      Tilting at Climate Windmills


   Shumer-Manchin will have little effect on the world's temperature

                          (By Editorial Board)

       Nearly all of Washington--Democrats, the press, lobbyists--
     is taking a victory lap with Senate passage of the Schumer-
     Manchin tax, climate and drug price control bill. The climate 
     lobby is especially thrilled, claiming a historic victory 
     that will reduce temperatures, hold back the rising sea, and 
     save the planet.
       Or, maybe not. Our contributor Bjorn Lomborg looked at the 
     Rhodium Group estimate for CO2 emissions reductions from 
     Schumer-Manchin policies. He then plugged them into the 
     United Nations climate model to measure the impact on global 
     temperature by 2100. He finds the bill will reduce the 
     estimated global temperature rise at the end of this century 
     by all of 0.028 degrees Fahrenheit in the optimistic case. In 
     the pessimistic case, the temperature difference will be 
     0.0009 degrees Fahrenheit.
       In other words, the climate provisions in this ballyhooed 
     legislation will have no notable impact on the climate.
       This isn't surprising. No matter what the U.S. does to 
     reduce greenhouse-gas emissions, it will be dwarfed by what 
     the rest of the world does. China, India and Africa aren't 
     about to stop burning fossil fuels as they develop, and China 
     is sprinting ahead to build huge new coal capacity despite 
     its pledge to start reducing emissions after 2030.
       Barring a breakthrough in battery or other technology, 
     carbon emissions will continue to increase. No one knows how 
     much the Earth's temperature will warm, though even the U.N. 
     model has modified its estimates from the apocalyptic 
     predictions of some years ago.
       Schumer-Manchin won't reduce inflation, won't reduce the 
     budget deficit, and it won't reduce the world's temperature. 
     What it will do is transfer some $369 billion from taxpayers 
     and drug companies to the pockets of green energy businesses 
     and investors. It will tighten the hold that politicians have 
     on the allocation of capital, as they pick winners and losers 
     with their grants and tax credits. Everyone will get a nice 
     warm feeling as they pretend they are cooling the climate.

  Mr. GUTHRIE. This bill will not do what those on the floor today have 
said it will do.
  Madam Speaker, I yield 2 minutes to the gentlewoman from Iowa (Mrs. 
Miller-Meeks).
  Mrs. MILLER-MEEKS. Madam Speaker, I thank Representative Guthrie for 
yielding me time.
  I rise today in opposition to H.R. 5376, the Inflation Reduction Act.
  As a physician and former director of the Iowa Department of Public 
Health, I am uniquely positioned to understand the true implications of 
this bill and how this bill will affect both doctors and patients, and 
rural Iowans are no exception.
  Interestingly, I just heard my colleague talk about how families may 
be kicked off their healthcare, and it doesn't seem to me that my 
colleagues on the other side of the aisle cared about that when they 
passed the Affordable Care Act and premiums rose dramatically.
  Allowing the Federal Government to set limits on drug pricing will 
limit competition and drastically reduce innovation within the 
pharmaceutical industry. Innovation also comes even after FDA approval 
to determine if drugs can be used for more than just their initial 
purpose.
  Additionally, narrowing the drug formulary by drug pricing through 
Medicare and negotiations will end up taking medications that you may 
already be prescribed and taking successfully, taking them off of the 
formulary and not being covered.
  Let me also illustrate, when Medicare part D went into effect, the 
fact that there was not a negotiation by Medicare allowed generic drugs 
as low as $4 a medication. That was tremendously helpful to millions of 
seniors and continues to this day.
  The United States is the leading developer of new drugs, but without 
market competition, American companies will lose the incentive to 
undergo cutting-edge research.
  What does that mean to the average person? It means fewer cures for 
rare diseases or debilitating diseases. Fewer cures, less treatment for 
debilitating diseases.
  Inevitably, the United States will become dependent on countries like 
China for pharmaceutical research and development, and patients will be 
limited in their options. Didn't we already see that through the 
pandemic?
  Additionally, this bill will extend ObamaCare subsidies enacted in 
the American Rescue Plan, which do not have income restrictions. Rather 
than helping those who are most in need, the wealthiest Americans will 
continue to receive the largest average benefit.
  This enormous spending package is bad for Iowans, bad for the 
economy, bad for hardworking Americans, and bad for the future of 
American innovation.
  Mr. PALLONE. Madam Speaker, I yield 2 minutes to the gentlewoman from 
California (Ms. Eshoo), who is the chair of our Health Subcommittee.
  Ms. ESHOO. Madam Speaker, I first thank the chairman of the Energy 
and Commerce Committee, Mr. Pallone, for his leadership and all of my 
colleagues on the committee who have worked so hard.
  I think today is a hallelujah day, and I say this because two of the 
greatest challenges facing our country are the following.
  The climate crisis: This is the single largest investment to take on 
the climate crisis head-on. I hear from children as young as first 
graders in my district caring about this issue. Two years ago this 
time, I had 77,000 evacuees from the wildfires in my congressional 
district. Taking on the climate crisis is absolutely essential.
  Seniors, the Medicare beneficiaries, we are changing their 
prescription drug prices today because Medicare will be able to 
directly negotiate and bring the prices down.
  Cap insulin at $35 a month--Senate Republicans sabotaged that cap on 
insulin for all Americans. I don't know how any politician can go home 
and brag about that.
  The out-of-pocket costs for Medicare beneficiaries will not exceed 
$2,000 a year.
  We are investing in the IRS. My constituents have been waiting for 
too

[[Page H7684]]

long for their refunds. Added staff is going to expedite the services 
that the IRS and the American people need from the IRS.
  Finally, deficit reduction--yes, America, this is paid for.
  This is truly a hallelujah day. This is a red, white, and blue bill. 
It is good for all Americans, and it will advance our collective future 
of America.
  Ms. ESHOO. Madam Speaker, our Nation has major challenges that have 
kept me awake at night.
  The clarion call from young climate activists concerned they won't 
have a planet to grow old on. I've heard seniors describe their 
inability to afford their prescription drugs.
  Today, we change all this by the largest and boldest effort to 
address climate change in American history. It honors our commitments 
under the Paris Agreement by investing $369 billion in tax credits, 
loans, and grants to reduce greenhouse gas emissions by 40 percent by 
2030.
  For seniors, the Inflation Reduction Act reduces prescription drug 
costs through policies developed by the Health Subcommittee I chair. 
Over the past three years, we held six hearings focused on this 
challenge.
  The hearings brought forward the fact that our Nation has been held 
back for 20 years by a law that prohibits Medicare from negotiating 
directly with drug companies. Not anymore.
  The bill also ensures Medicare beneficiaries won't pay more than 
$2,000 annually for prescription drugs, and no more than $35 for 
insulin every month.
  This legislation also lowers health care premiums by strengthening 
the Affordable Care Act to save an average of $800 per year for 13 
million people.
  Finally, the entire legislation is paid for by making billion-dollar 
companies pay their fair share and lowers the federal deficit by more 
than $300 billion.
  Throughout my service in Congress, my top priorities have been to 
grow our economy, make health care more affordable, and address climate 
change. Today's transformative legislation meets these challenges, and 
I urge my colleagues to vote for it.
  Mr. GUTHRIE. Madam Speaker, I reserve the balance of my time.
  Mr. PALLONE. Madam Speaker, I yield 1\1/2\ minutes to the gentlewoman 
from Florida (Ms. Castor), who chairs the Select Committee on the 
Climate Crisis.
  Ms. CASTOR of Florida. Madam Speaker, as chair of the Select 
Committee on the Climate Crisis and as a mom, I am proud to say the 
Inflation Reduction Act is a big climate deal.
  This is the largest investment in clean energy and climate solutions 
ever in U.S. history, and it comes at a crucial time.
  We must urgently slash climate pollution to avoid the worst impacts 
and to lower costs, create good-paying jobs, and build safer, more 
resilient communities.
  Today, I am optimistic that America will lead the world in solving 
the climate crisis, and I thank the young people all across this 
country who pushed us to take this historic step.
  The Inflation Reduction Act is also good news for Floridians, as 
Democrats will lower the costs of prescription drugs, empower Medicare 
to negotiate drug prices, institute a $2,000 cap, and much more.
  It is a big deal for the 2.8 million Floridians who purchase high-
quality health coverage under the Affordable Care Act. With these tax 
credits, those policies will be more affordable.
  Yes, this is good news indeed, a true people over politics moment for 
all of our neighbors, their health, their pocketbooks, and the 
obligation we have to our kids to provide a livable planet.
  I thank Speaker Pelosi for her vision for the Select Committee on the 
Climate Crisis, and I also thank Chairman Frank Pallone and my 
colleagues for their inspiring work.
  Madam Speaker, I urge a ``yes'' vote.
  Mr. GUTHRIE. Madam Speaker, I yield myself such time as I may 
consume.
  This bill drives a massive build-out of unreliable wind and solar 
power, not nuclear, not natural gas, and not baseload power.
  I include in the Record a report from the North American Electric 
Reliability Corporation, the authority on electric reliability, which 
underscores the risk of blackouts from the oversupply of weather-
dependent energy.

    [From North American Electric Reliability Corporation, May 2022]

                   2022 Summer Reliability Assessment


                              Key Findings

       NERC's annual SRA covers the upcoming four-month (June-
     September) summer period. This assessment provides an 
     evaluation of generation resource and transmission system 
     adequacy and energy sufficiency to meet projected summer peak 
     demands and operating reserves This assessment identifies 
     potential reliability issues of interest and regional topics 
     of concern. While the scope of this seasonal assessment is 
     focused on the upcoming summer, the key findings are 
     consistent with risks and issues that NERC has highlighted in 
     the 2021 Long-Term Reliability Assessment and other earlier 
     reliability assessments and reports.
       The following findings are NERC and the ERO Enterprise's 
     independent evaluation of electricity generation and 
     transmission capacity and potential operational concerns that 
     may need to be addressed for the 2022 summer.
     Summer Resource Adequacy Assessment and Energy Risk Analysis
       Midcontinent ISO (MISO) faces a capacity shortfall in its 
     North and Central areas, resulting in high risk of energy 
     emergencies during peak summer conditions. Capacity shortfall 
     projections reported in the 2021 LTRA and as far back as the 
     2018 LTRA have continued Load serving entities in 4 of 11 
     zones entered the annual planning resource auction (PRA) in 
     April 2022 without enough owned or contracted capacity to 
     cover their requirements. Across MISO, peak demand 
     projections have increased by 1.7 percent since last summer 
     due in part to a return to normal demand patterns that have 
     been altered in prior years by the pandemic. However, more 
     impactful is the drop in capacity in the most recent PRA: 
     MISO will have 3,200 MW (2.3 percent) less generation 
     capacity than in the summer of 2021. System operators in MISO 
     are more likely to need operating mitigations, such as load 
     modifying resources or non-firm imports, to meet reserve 
     requirements under normal peak summer conditions. More 
     extreme temperatures, higher generation outages, or low wind 
     conditions expose the MISO North and Central areas to higher 
     risk of temporary operator-initiated load shedding to 
     maintain system reliability.
       At the start of the summer, a key transmission line 
     connecting MISO's northern and southern areas will be out of 
     service. Restoration continues on a 4-mile section of 500 kV 
     transmission line that was damaged by a tornado during severe 
     storms on December 10, 2021. The transmission outage affects 
     1,000 MW of firm transfers between the Midwestern and 
     Southern MISO system that includes parts of Arkansas, 
     Louisiana, and Mississippi. The transmission line is expected 
     to be restored at the end of June 2022.
       Anticipated resource capacity in Saskatchewan will be 
     strained to meet peak demand projections, which have risen by 
     over 7.5 percent since 2021. SaskPower is projected to remain 
     above their planning reserve margin threshold and have 
     sufficient operating reserves for normal peak conditions. 
     However, external assistance is expected to be needed in 
     extreme conditions that cause above-normal generator outages 
     or demand.
       Drought conditions create heightened reliability risk for 
     the summer. Drought exists or threatens wide areas of North 
     America, resulting in unique challenges to area electricity 
     supplies and potential impacts on demand:
       Energy output from hydro generators throughout most of the 
     Western United States is being affected by widespread drought 
     and below-normal snowpack. Dry hydrological conditions 
     threaten the availability of hydroelectricity for transfers 
     throughout the Western Interconnection. Some assessment 
     areas, including WECC's California-Mexico (CA/MX) and 
     Southwest Reserve Sharing Group (SRSG), depend on substantial 
     electricity imports to meet demand on hot summer evenings and 
     other times when variable energy resource (e.g., wind, solar) 
     output is diminishing. In the event of wide-area extreme heat 
     event, all U.S. assessment areas in the Western 
     Interconnection are at risk of energy emergencies due to the 
     limited supply of electricity available for transfer.
       Extreme drought across much of Texas can produce weather 
     conditions that are favorable to prolonged, wide-area heat 
     events and extreme peak electricity demand. Resource 
     additions to the ERCOT system in recent years-predominantly 
     solar and some wind--have raised Anticipated Reserve Margins 
     above Reference Margin Levels and ease concerns of capacity 
     shortfalls for normal peak demand. However, extreme heat 
     increases peak demand and can be accompanied by weather 
     patterns that lead to increased forced outages or reduced 
     energy output from resources of all types. A combination of 
     extreme peak demand, low wind, and high outage rates from 
     thermal generators could require system operators to use 
     emergency procedures, up to and including temporary manual 
     load shedding.
       As drought conditions continue over the Missouri River 
     Basin, output from thermal generators that use the Missouri 
     River for cooling in Southwest Power Pool (SPP) may be 
     affected in summer months. Low water levels in the river can 
     impact generators with once-through cooling and lead to 
     reduced output capacity. Energy output from hydro generators 
     on the river can also be affected by drought conservation 
     measures implemented in the reservoir system. Outages and 
     reduced output from thermal and hydro generation could lead 
     to energy shortfalls at peak demand. Periods of above normal 
     wind

[[Page H7685]]

     generator output may give some relief, however, this energy 
     is not assured. System operators could require emergency 
     procedures to meet peak demand during periods of high 
     generator unavailability.
       All other areas have sufficient resources to manage normal 
     summer peak demand and are at low risk of energy shortfalls 
     from more extreme demand or generation outage conditions. 
     Anticipated Reserve Margins meet or surpass the Reference 
     Margin Level, indicating that planned resources in these 
     areas are adequate to manage the risk of a capacity 
     deficiency under normal conditions. Furthermore, based on 
     risk scenario analysis in these areas, resources and energy 
     appear adequate.
     Other Reliability Issues for Summer
       Supply chain issues and commissioning challenges on new 
     resource and transmission projects are a concern in areas 
     where completion is needed for reliability during summer peak 
     periods. Assessment areas report that some generation and 
     transmission projects are being impacted by product 
     unavailability, shipping delays, and labor shortages. At the 
     time of this assessment publication, WECC-CA/MX, and WECC-
     SRSG have sizeable amounts of generation capacity in 
     development and included in their resource projections for 
     summer. In Texas (ERCOT), transmission expansion projects are 
     underway to alleviate transmission constraints and maintain 
     system stability as the BPS is adapted to rapid growth in new 
     generation; delays or cancellations of transmission projects 
     can cause transmission system congestion during peak 
     conditions and affect the ability to serve load in localized 
     areas. Should project delays emerge, affected Generator 
     Owners (GOs) and Transmission Owners must communicate changes 
     to Balancing Authorities (BAs), Transmission Operators, and 
     Reliability Coordinators, so that impacts are understood and 
     steps are taken to reduce risks of capacity deficiencies or 
     energy shortfalls.
       Coal-fired GOs are having difficulty obtaining fuel and 
     non-fuel consumables as supply chains are stressed. No 
     specific BPS reliability impacts are currently foreseen; 
     however, coal stockpiles at power plants are relatively low 
     compared to historical levels. Some owners and operators 
     report challenges in arranging replenishment due to mine 
     closures, rail shipping limitations, and increased coal 
     exports. Some GOs have implemented controls to maintain 
     sufficient stocks for peak months while BAs and Reliability 
     Coordinators are continuing to conduct fuel surveys and 
     monitoring the situation.
       The electricity and other critical infrastructure sectors 
     face cyber security threats from Russia and other potential 
     actors amid heightened geopolitical tensions in addition to 
     ongoing cyber risks. Russian attackers may be planning or 
     attempting malicious cyber activity to gain access and 
     disrupt the electric grid in North America in retaliation for 
     support to Ukraine. The Electricity Infrastructure Sharing 
     and Analysis Center (E-ISAC) continues to exchange 
     information with its members and has posted communications 
     and guidance from government partners and other advisories on 
     its Portal. E-ISAC members are encouraged to check in 
     regularly to receive updates and to actively share 
     information regarding threats and other malicious activities 
     with the E-ISAC to enable broader communication with other 
     sector participants and government partners.
       Unexpected tripping of solar photovoltaic
       (PV) resources during grid disturbances continues to be a 
     reliability concern. In May and June 2021, the Texas 
     Interconnection experienced widespread solar PV loss events 
     like those previously observed in the California area. 
     Similarly, four additional solar PV loss events occurred 
     between June and August 2021 in California.

  Mr. GUTHRIE. This bill does not do what Democrats say it will do.
  Madam Speaker, I yield 3 minutes to the gentleman from Louisiana (Mr. 
Scalise), the Republican whip.
  Mr. SCALISE. Madam Speaker, I thank my friend from Kentucky (Mr. 
Guthrie) for yielding.
  I rise in strong opposition to this bill that will absolutely 
increase the deficit. It will absolutely increase inflation, and this 
bill will absolutely increase energy costs. In fact, they have a 
multibillion-dollar new tax on energy.
  I haven't heard one person in America saying they want to pay more 
money for gasoline, yet they are putting billions in new taxes on 
energy, so you will not only be paying more for gasoline, but you will 
be paying more for utility bills for your household, which are already 
skyrocketing because of President Biden and Speaker Pelosi's radical, 
far-left spending they have already done the last year and a half.
  But it doesn't end there.
  $250 billion in cuts to Medicare drugs--that is right. For seniors, 
this bill cuts $250 billion out of Medicare drug spending to help 
people in higher income brackets be eligible for more ObamaCare 
subsidies, so a massive wealth transfer away from seniors to higher-
income people to get subsidies for ObamaCare.
  Then let's talk about these 87,000 IRS agents. You think of just 
about any NFL stadium in America filled completely with new IRS agents. 
That is right, more than doubling the size of the IRS to go after 
lower-income people. They love saying on the other side: Don't worry. 
It is not going to touch them.
  There is only one problem: It doesn't stand up to the facts.
  There was an amendment in the Senate, right here, very simple, a one-
page amendment to protect people making under $400,000 from new audits 
by the IRS. This amendment was voted down on a party-line vote because 
they want that army of 87,000 IRS agents going after lower-income 
people.
  In fact, the smoking gun came out this morning. They don't have a 
full CBO report on this bill. You heard the old adage that you have to 
pass the bill to find out what is in it. That is what they are doing 
today. That is why they are rushing this bill through today. It doesn't 
even have a review from the Congressional Budget Office.
  But just a few hours ago, we got this. It was a confirmation that the 
IRS agents will be getting about $20 billion in new taxes from people 
making less than $400,000. That is right. The CBO just confirmed it a 
few hours ago.
  President Biden made that promise multiple times: If you make under 
$400,000, don't worry; your taxes don't go up. This bill breaks 
President Biden's promise. It is confirmed by the CBO.
  There was an amendment to stop it from happening, and every Democrat 
voted against it. They wouldn't allow us to bring that amendment here 
on the floor because they are ramming it through because they don't 
want people to know what is inside of this bill.
  $700-plus billion in new taxes--budget gimmicks that say, for the new 
taxes over 10 years, they are only going to account for 3 years of 
spending, which means if you account for the full 10 years, it 
increases the deficit. Of course, during inflation times and this 
crisis we are facing economically, this bill will increase inflation 
and gas prices.
  Let's reject the bill and go back to the drawing board.
  Mr. PALLONE. Madam Speaker, I yield 1\1/2\ minutes to the gentlewoman 
from New York (Ms. Clarke), a member of the Energy and Commerce 
Committee.
  Ms. CLARKE of New York. Madam Speaker, I thank the chairman for 
yielding. I rise today in support of H.R. 5376, the Inflation Reduction 
Act of 2022.
  This monumental generational investment in our Nation's future will 
lower prescription drug prices and energy costs, extend healthcare 
coverage for millions of Americans, and deliver a vital down payment of 
resources in our stand against the climate crisis, all while creating 
millions of well-paying jobs across America.
  Moreover, it makes good on our promise to always fight for this 
country's most vulnerable communities, now and forever.
  The journey to today has been challenging, to say the least, but I am 
at long last elated to know that the change Americans need and demand 
is finally here.
  Thanks to the hard work and ceaseless resolve of President Joe Biden, 
my Democratic colleagues on the Senate side, and every individual who 
took seriously their duty to fight tooth and nail to better the lives 
of every American in our care, our pursuit of progress has never been 
stronger.
  For communities of color, our seniors, pregnant and postpartum 
people, individuals and families living on low wages, and everyone else 
who has long borne the brunt of too many hardships to list, this 
legislation represents the initial steps they have long and desperately 
awaited.

                              {time}  1500

  The Inflation Reduction Act will prevent thousands of premature 
deaths by improving air quality in densely populated communities with 
high environmental justice needs.
  Mr. GUTHRIE. Madam Speaker, I yield 2 minutes to the gentleman from 
Ohio (Mr. Latta), a member of the Committee on Energy and Commerce.

[[Page H7686]]

  

  Mr. LATTA. Madam Speaker, I rise in opposition to H.R. 5367, a bill 
the Democrats claim will reduce inflation when, in reality, it will do 
the exact opposite.
  American families are struggling to keep the lights on at home. Far 
too many people in this country are worrying about the costs associated 
with putting food on their table and gas in their tanks. And yet, the 
majority has decided now is the time to double down on their tax-and-
spend policies with American taxpayers footing the bill.
  It is also concerning that this bill promotes anti-American energy 
policies. It will put aside $250 billion at the Department of Energy to 
subsidize the rush to green energy. This is picking winners and losers 
in the energy market and will scare away investments in baseload power 
sources.
  American small businesses need access to more reliable energy, not 
less. If the grid becomes too reliant on intermittent green energy 
sources, we will begin to see manufacturers shutter their operations.
  Although it is hard to see how this bill could be salvaged, I did 
offer an amendment to try to prevent this outcome. My amendment would 
have required the Secretary of Energy to certify that the bill would 
not negatively impact electric grid reliability before funding could be 
used.
  Considering the devastating consequences that would result for 
American families and businesses, it makes perfect sense that the 
government should do its due diligence in examining all possible 
outcomes.
  Unfortunately, the majority chose not to consider my amendment on the 
House floor today.
  Madam Speaker, I urge my colleagues to vote ``no'' on this 
legislation because it will increase taxes on American families, 
institute price controls that will block innovation and medical cures, 
promote irresponsible spending on Green New Deal carve-outs and provide 
significant risks to the electric grid.
  Mr. PALLONE. Madam Speaker, I yield 1\1/2\ minutes to the gentleman 
from Oregon (Mr. Schrader), a member of the Committee on Energy and 
Commerce.
  Mr. SCHRADER. Madam Speaker, I rise today in complete support of H.R. 
5376, the Inflation Reduction Act.
  During my time in Congress, I have dedicated my service to improving 
our healthcare system and working to lower the cost of prescription 
drugs. I am ecstatic that the bill before us today includes my and 
Representative Peters drug price reduction framework that will finally 
rein in the cost of prescription drugs for our seniors and protect 
pharmaceutical innovation, contrary to what the other side will tell 
you.
  The Medicare drug cost reductions will be transformative. The bill 
will allow Medicare to finally negotiate drug prices and the practice 
of raising prices in the Medicare program beyond the rising inflation 
and provide lasting financial relief to our most vulnerable seniors by 
establishing a $2,000 out-of-pocket maximum for spending on 
prescription drugs.
  The prescription drug cost portions of this bill will also preserve 
scientific creativity and the innovation ecosystem that has been 
essential to the domestic job-preserving development of life changing 
and lifesaving treatments and cures.
  And the close to $300 billion in deficit reduction from this portion 
of the bill will be huge for the overall viability of our troubled 
Medicare system going forward. This will be the biggest improvement to 
Medicare since the inception of part D almost 20 years ago. I am proud 
to have been a leading advocate to deliver relief on the high cost of 
prescription drugs.
  Madam Speaker, I thank my colleagues in both Chambers who worked with 
me directly to get this across the finish line.
  Mr. GUTHRIE. Madam Speaker, I yield 2 minutes to the gentleman from 
Florida (Mr. Bilirakis), my good friend.
  Mr. BILIRAKIS. Madam Speaker, I thank my good friend from the great 
State of Kentucky as well.
  Madam Speaker, I rise today in strong opposition to the inflation, 
recession, IRS army act.
  As the American people struggle to put food on their tables and gas 
in their cars, Democrats bring us here today to raise Americans' taxes 
and destabilize our prescription drug market.
  My colleagues across the aisle want everyone to believe that this 
bill will drive down the cost of drugs, but they fail to mention that 
this policy will severely stifle innovation, unfortunately.
  As a proud advocate for individuals suffering with cancer, rare 
diseases, and neurodegenerative diseases, such as ALS, Alzheimer's, and 
Parkinson's, I am committed to seeing cures come to market. But 
policies like this one will heartlessly jeopardize the likelihood of 
these breakthroughs.
  I would like to see my Democratic colleagues work with us on the 
productive policy solutions found in the Lower Costs, More Cures Act, 
which would drive down the cost of drugs for the American people but 
would not destroy the innovative research and development that is 
uniquely American.
  Sadly, it seems more thought was put into targeting average Americans 
with an IRS army and over 1 million new audits than in helping them 
find cures for their life-threatening ailments, unfortunately.
  Floridians deserve better. And the American people deserve better 
than this bogus piece of legislation that will raise taxes and reduce 
the number of cures and treatments coming to market.
  Mr. PALLONE. Madam Speaker, I yield 1\1/2\ minutes to the gentlewoman 
from Michigan (Mrs. Dingell), a member from the Committee on Energy and 
Commerce.

  Mrs. DINGELL. Madam Speaker, I rise in strong support of the 
Inflation Reduction Act. This landmark package is finally on the House 
floor after over a year of hard work and rolling up our sleeves.
  This bill will serve all Americans by bringing down energy and health 
costs, reversing inflation, reducing the deficit, cleaning up our 
environment, and sparking a new, clean energy economy. It is 
responsibly paid for, and middle-class families will not see any 
increased taxes.
  This is a defining moment for tackling the climate crisis. This bold 
legislation represents the single largest investment in clean energy, 
environmental justice, and climate actions in American history, 
including the Greenhouse Gas Reduction Fund and increased investments 
in both the ATVM loan program, and the Domestic Manufacturing 
Conversion Grant program, based on legislation I helped write.
  The automotive industry is fully committed to going electric. While 
this legislation may pose some challenges in the short term, it will 
strengthen the long-term trajectory of the automotive industry, our 
domestic supply chains, and American manufacturing.
  It is bringing jobs home, strengthening our supply chain, and 
reducing our dependency on foreign manufacturing.
  Madam Speaker, I urge my colleagues to support this legislation.
  Mr. GUTHRIE. Madam Speaker, I yield 2 minutes to the gentleman from 
Ohio (Mr. Johnson), my good friend,
  Mr. JOHNSON of Ohio. Madam Speaker, I rise today to highlight my 
amendment that the minority refuses to even bring to a vote. My 
amendment is simple. It would amend this so-called Inflation Reduction 
Act by striking from the bill the Methane Emissions Reduction Program, 
which is a fancy term for what could be more accurately described as 
attacks on American natural gas.
  In my district in eastern and southeastern Ohio, oil and gas workers 
get up every day to produce our valuable natural resources that are 
used to generate electricity, power manufacturing, heat and cool our 
homes, cook our food, and more recently, to use our American natural 
gas to rescue our European allies who now find themselves under 
Vladimir Putin's tyrannical thumb.
  This methane tax jeopardizes all of this, and it represents yet 
another attack by the majority on American fossil fuels that have 
brought more people out of poverty around the world than any other 
energy source around the planet.
  When I talk to producers in my district, I give them a lot of credit. 
These companies, without being asked, are quite literally innovating 
every day. They use state-of-the-art technology to capture as much of 
their methane

[[Page H7687]]

emissions as possible, and they are proud to do it.
  And what is their reward? Well, they get a new tax anyway. It is also 
worth noting that the EPA is already working on rulemaking for 
regulating methane emissions, and the authors of this bill knew that--
all to appease the radical environmentalist left.
  Madam Speaker, I want to be clear that this isn't, ``a methane 
reduction program.'' It is a massive tax on American producers, 
American businesses, and American workers. It is a tax on job creators 
in Ohio. It is a tax on hardworking Americans trying to heat and cool 
our homes, and a tax on feeding our families, and a tax on the American 
way of life.
  We should strike this provision from the bill.
  Mr. PALLONE. Madam Speaker, I yield 1\1/2\ minutes to the gentlewoman 
from Minnesota (Ms. Craig), a member of the Committee on Energy and 
Commerce.
  Ms. CRAIG. Madam Speaker, today is the day that we deliver on many of 
our promises to the American people. We are going to lower the cost of 
healthcare for millions of Americans. We are going to invest in 
American energy independence and reduce carbon emissions. We are going 
to do this in a responsible way, as we reduce the deficit in the 
process.
  The Inflation Reduction Act takes historic strides to make healthcare 
more affordable by capping the cost of insulin at $35 a month for those 
on Medicare. Capping out-of-pocket drug costs for our Nation's seniors 
at $2,000 a year, and empowering Medicare to negotiate drug prices for 
our seniors.
  We also extend the ACA tax credit, ensuring that we continue along 
the path of these historic rates of uninsured in our Nation. We are 
going to make the largest investment in clean energy in our Nation's 
history, reduce carbon emissions by 40 percent this decade, and invest 
in biofuels infrastructure for Minnesota's family farmers.
  Madam Speaker, I say to my colleagues, today, the will of our 
constituents will prevail over special interests--at least on this side 
of the aisle.
  Madam Speaker, this legislation will make a real difference in 
reducing costs for working families. I am proud to support it, and I 
encourage my colleagues to do the same.

  Mr. GUTHRIE. Madam Speaker, I reserve the balance of my time.
  Mr. PALLONE. Madam Speaker, I yield 1\1/2\ minutes to the gentlewoman 
from Washington State (Ms. Schrier).
  Ms. SCHRIER. Madam Speaker, I am so excited to vote today for this 
climate and healthcare bill, and here is why: This bill is the answer 
to the questions that my constituents have been asking since day one.
  Here is what I am hearing:
  Dr. Schrier, you have diabetes, too. I can't afford my insulin. I am 
having to ration at the end of the month. Won't you do something about 
it?
  Well, here is the answer: $35-a-month insulin.
  Dr. Schrier, I am a senior. I have a fixed income. I can't afford 
these high drug prices. Why can't Medicare negotiate them?
  Well, here is your answer: Medicare getting the power to negotiate 
the cost of prescription drugs.
  Also: Dr. Schrier, I am a senior. There are too many out-of-pocket 
costs for me.
  This caps them at $2,000.
  And finally, right now, we have fires burning in Washington State. 
And I have farmers who have seen reduced crop yields because of extreme 
heat.
  They say: Dr. Schrier, can't you do something about climate?
  And here is the answer: The biggest investment in climate solutions 
that we have ever had.
  This bill brings relief. It brings financial relief to families who 
are feeling the high inflation in gas prices.
  And you know how it does it? By finally making sure that the 
wealthiest corporations pay their fair share of taxes, and it does it 
without raising tax on middle-class families.
  Madam Speaker, I am so excited about this bill because it answers the 
requests of the people I represent, and that is why I am so excited to 
vote for it today.

                              {time}  1515

  Mr. GUTHRIE. Madam Speaker, I yield 2 minutes to the gentleman from 
Texas (Mr. Pfluger).
  Mr. PFLUGER. Madam Speaker, I rise to speak against this so-called 
Inflation Reduction Act, a piece of legislation that weakens America, 
weakens our businesses, increases the cost of energy for all Americans 
and our families, and funds a new 87,000-person army of IRS agents that 
are coming after low- and middle-income families.
  Here is a pretty good rule of thumb for this legislation. If you are 
one of Biden's chosen Green New Deal companies, you are probably going 
to get a handout from American taxpayers. But for small, independent 
American energy producers in districts like mine, the Permian Basin, 
your reward for keeping the lights on is a new, poorly conceived 
natural gas tax that will raise the cost of everything and give China 
an edge on our American manufacturers.
  In fact, I offered an amendment to strike this provision, but 
Democrats voted it down in the Rules Committee, voting against U.S. 
energy and voting for foreign energy.
  The Democrat response is tax credits for the rich, a slush fund for 
loans to their favorite green companies, and more regulatory red tape 
to drive up energy costs for all of us.
  Families have to decide whether to fill up their tanks or to pay for 
everyday essentials at grocery stores because of high gas prices due to 
President Biden's policies.
  The crowning achievement of this legislation won't be inflation 
reduction. It will be making America more dependent on our adversaries, 
more dependent on our adversaries for energy, dependent on China for 
medical manufacturing and supply chain issues, and dependent on China 
for critical minerals.
  If the Democrats' goal is to reduce baseload, reliable power sources 
and increase our dependency on foreign nations, they are succeeding. If 
their goal is to create regulatory red tape to drive up energy costs 
for Main Street businesses and families, once again, they are 
succeeding. If their goal is to help American families and small 
businesses, this piece of legislation is a fail.
  America asked for relief, and instead, Democrats will deliver new and 
higher taxes that will be enforced by an 87,000-person IRS army.
  Madam Speaker, I urge my colleagues to vote for America and against 
this bill.
  Mr. PALLONE. Madam Speaker, I yield 1\1/2\ minutes to the gentlewoman 
from Texas (Mrs. Fletcher), a member of the Energy and Commerce 
Committee.
  Mrs. FLETCHER. Madam Speaker, today is a historic day. Today, we will 
vote on the question of whether to allow Medicare to negotiate the 
price of prescription drugs and cap out-of-pocket costs for seniors; 
lower the cost of healthcare; implement smart energy policy to reduce 
emissions, fight climate change, and spur energy innovation; invest in 
American manufacturing; and reduce our deficit spending by $300 
billion.
  We answer these questions ``yes'' by voting for the Inflation 
Reduction Act.
  As the representative of the energy capital of the world, where we 
lead in energy technology and investment, I want to respond to some of 
the things that we have just heard.
  I am particularly proud of the work that we have done here to ensure 
that the historic methane emissions reduction program will actually 
reduce greenhouse gas emissions, make it possible for energy companies 
of all sizes to reduce their emissions through a grant program, and 
ensure that the United States remains the global leader in energy 
production and in energy innovation and technology.
  We do this by voting together for this historic bill today.
  Mr. GUTHRIE. Madam Speaker, I reserve the balance of my time.
  Mr. PALLONE. Madam Speaker, I yield 1 minute to the gentleman from 
California (Mr. Garamendi).
  Mr. GARAMENDI. Madam Speaker, the historic Inflation Reduction Act 
lowers everyday costs Americans are struggling to afford by cutting the 
price of prescription drugs, by making the largest-ever investment in 
climate action, and by reducing inflation--all of this without raising 
taxes on middle-class Americans and also paying down the national debt.
  For too long, the price of lifesaving prescription drugs has 
bankrupted

[[Page H7688]]

American families. No more. This bill caps out-of-pocket drug costs at 
$2,000 and allows Medicare finally to directly negotiate the price of 
drugs.
  Similarly, we must address the increasing costs Americans are bearing 
at the hands of climate change. This bill's $369 billion investment in 
climate action will unleash a renaissance in clean energy technology, 
creating millions of new, high-paying manufacturing jobs, and build the 
next generation of American energy and transportation.
  Madam Speaker, I support this legislation, and I call upon my 
colleagues, Democrats and Republicans, to pass this legislation.
  Mr. GUTHRIE. Madam Speaker, I include in the Record a Bloomberg News 
story reporting how power costs are already forcing U.S. factories to 
shut down, featuring an aluminum mill in my district, in Hawesville, 
Kentucky.
  This underscores the risk to our Nation's competitiveness that these 
policies bring about, and this bill will not do what those on the floor 
say that it will do.

                  [From Bloomberg News, July 7, 2022]

 The US Industrial Complex Is Starting To Buckle From High Power Costs

                   (By Joe Deaux and Naureen S Malik)

       It was only a matter of time, really.
       Europe's fertilizer plants, steel mills, and chemical 
     manufacturers were the first to succumb. Massive paper mills, 
     soybean processors, and electronics factories in Asia went 
     dark.
       Now soaring natural gas and electricity prices are starting 
     to hit the US industrial complex.
       On June 22, 600 workers at the second-largest aluminum mill 
     in America, accounting for 20 percent of US supply, learned 
     they were losing their jobs because the plant can't afford an 
     electricity tab that's tripled in a matter of months. Century 
     Aluminum Co. says it'll idle the Hawesville, Kentucky, mill 
     for as long as a year, taking out the biggest of its three US 
     sites. A shutdown like this can take a month as workers 
     carefully swirl the molten metal into storage so it doesn't 
     solidify in pipes and vessels and turn the entire facility 
     into a useless brick. Restarting takes another six to nine 
     months. For this reason, owners don't halt operations unless 
     they've exhausted all other options.
       It's the most poignant signal yet of what's to come-but not 
     the only one.
       At least two steel mills have begun suspending some 
     operations to cut energy costs, according to one industry 
     executive, who asked not to be identified because the 
     information isn't public. In May, a group of factories across 
     the US Midwest warned federal energy regulators that some 
     were on the verge of closing for the summer or longer because 
     of what they described as ``unjust and unreasonable'' 
     electricity costs. They asked to be wholly absolved of some 
     power fees-a request that, if granted, would be 
     unprecedented.
       It's no wonder. By the beginning of June, natural gas 
     prices had tripled what they were a year earlier, threatening 
     households and businesses alike with some of the biggest 
     utility bills they've ever seen. This summer, electricity 
     rates for industrial customers are set to hit their highest 
     levels ever, based on US government forecasts. Because US 
     plants and factories depend on both electricity and gas, this 
     could very well be the moment the rug's pulled out from under 
     American industry.
       Manufacturing overtime hours have already declined for 
     three straight months, the longest downward stretch since 
     2015, and a measure of US manufacturing activity weakened in 
     June to a two-year low as new orders contracted. A week after 
     Century's announcement, the nation's largest aluminum 
     producer Alcoa Corp. said it's closing a third of its 
     production at a mill in Indiana because of ``operational 
     challenges.''
       These headwinds could eventually threaten what some see as 
     a longer-term boom in US manufacturing as corporations look 
     to reduce their dependence on China. Executives are 
     highlighting plans to relocate production at a greater clip 
     this year than they even did in the first six months of the 
     pandemic, but energy and labor costs will pose challenges for 
     any company looking to build a new operation in the US.
       Manufacturing isn't the bellwether of the US economy it 
     once was. The plants that 70 years ago employed more than a 
     third of the nation's labor force now account for about 8 
     percent of nonfarm workers. An industrial downturn on its own 
     won't tip us into a recession, but it could if combined with 
     weakness in other sectors. While the might of American 
     industry has significantly weakened over the years, it still 
     accounts for more than a tenth of US gross domestic product-
     and for that reason holds an outsize place in the hearts of 
     politicians whose factory visits are a perennial staple of 
     campaigns.
       Plants will try to operate more efficiently to lower their 
     utility bills, but there are limits to how much they can 
     save. In a lot of regions, industrial users aren't just 
     paying for the power they use; they're also paying for what's 
     known as capacity, essentially an insurance policy that keeps 
     enough power on the grid for the most extreme of demand days. 
     (Think hot summer days when everyone's air conditioners are 
     blasting.) And with wholesale energy prices near the highest 
     levels since 2008 and aging power plants shutting, those 
     insurance premiums are growing exponentially, particularly in 
     the middle of the country where much of the country's 
     industrial operations lie.
       One potential bright spot, or an indication of how 
     desperate industrial companies are becoming: Some are 
     partnering with startups to explore alternative energy 
     sources: Nature Energy says it expects to start building 
     facilities this year to collect and convert cow dung and crop 
     waste into renewable natural gas. Power Edison, which is 
     proposing to stack massive batteries on barges that can be 
     shipped around to customers in need, is attracting more 
     attention.
       As Katie Coleman, an attorney for Texas Association of 
     Manufacturers, puts it, her members have three big cost 
     drivers: taxes, electricity, and labor. Those three vary in 
     proportion over time, she says, ``but right now, electricity 
     is an even larger factor than normal.'' Some companies with 
     multiple factories are trying to decide which plants to keep 
     running this summer based on how cheap they can get their 
     electricity, she says, and some may decide which to 
     permanently close. Such is the case for Century, which will 
     keep operations running in Iceland where power is incredibly 
     cheap because of local renewable energy resources.
       There is a lot to blame for this year's surge in US energy 
     prices: Russia's invasion of Ukraine; the ensuing surge in US 
     natural gas exports to markets overseas; extreme weather 
     brought on by climate change; aging fossil-fuel-fired power 
     plants retiring at a record pace. They're all coinciding with 
     a sharp rebound in post-pandemic demand.
       One group of manufacturers will say they told us so. The 
     Industrial Energy Consumers of America has been calling on 
     the Biden administration for months to limit the amount of 
     gas US energy suppliers send overseas, warning that exports 
     would eventually lead to supply shortages at home. But a 
     measure like that would set a dangerous precedent and 
     threaten the billions of dollar of investments in liquefied 
     natural gas terminals along US shores. Shipments overseas 
     have so far remained unfettered.
       How severe of an industrial downturn we're heading into 
     depends on a lot of variables -chief among them being how 
     long energy prices remain high. Milder weather, fewer power 
     plant disruptions, and more solar and wind farm deployments 
     could shift the natural gas market back into an era of lower 
     prices and improve the fortunes of manufacturers. Today, we 
     are far from that.
       Michael Harris, whose firm Unified Energy Services LLC buys 
     fuel for industrial clients, says costs have risen so high 
     that some are having to put millions of dollars of credit on 
     the line to secure power and gas contracts. ``That can be 
     devastating for a corporation,'' he says. ``I don't see any 
     scenario, absent explosions at US LNG facilities'' that trap 
     supplies at home, in which gas prices are headed lower in the 
     long term.

  Mr. GUTHRIE. Madam Speaker, I yield 2 minutes to the gentleman from 
Georgia (Mr. Carter).
  Mr. CARTER of Georgia. Madam Speaker, I rise today in strong 
opposition to the inflation expansion act, which includes deeply 
troubling proposals that will kneecap medical innovation and harm 
patients' access to cures.
  Madam Speaker, for 40 years, I was behind the counter. I was the one 
who had to tell the patient how much their prescription was going to 
be. I was the one who witnessed the senior citizens trying to make a 
decision between buying their medication or buying their groceries. I 
was the one who had to tell the mother how much the antibiotic was 
going to be and see her in tears trying to find the money to pay for 
that antibiotic. I know all too well about prescription drug prices.
  Today, I am behind the podium as my Democratic colleagues decide 
whether to mortgage those same patients' health and well-being for a 
political win. This is immoral, and it must be stopped.
  The United States leads the world in medical innovation. I have 
watched it, and I have seen it as terminal illnesses became treatable 
with a simple pill. I have seen the relief on a patient's face when 
they heard that a new treatment is available for their once incurable 
disease. This bill eradicates hope.
  Madam Speaker, we need to help lower drug prices and costs for 
patients, but this legislation goes about it in all the wrong ways. 
Pharmaceutical companies are the drivers of innovation that deliver 
lifesaving cures to patients. However, this legislation will result in 
dozens, possibly hundreds, of fewer cures over the next decade.
  I tried to fix this self-imposed problem in the Rules Committee on 
Wednesday, but it was rejected. I also introduced an amendment to block 
the

[[Page H7689]]

Federal Government from funding radical green lobbying groups, but that 
was rejected.
  There is no excuse for the Federal Government to steal billions of 
dollars from taxpayers, including $1.5 billion in funding for tree 
equity, while inflation sits at a 40-year high.
  Medical professionals are sworn to do no harm. It is time Congress 
took the same oath and quit our assault on taxpayers and mostly on 
patients.
  Madam Speaker, I urge a ``no'' vote.
  Mr. PALLONE. Madam Speaker, I yield 1 minute to the gentleman from 
Maryland (Mr. Mfume).
  Mr. MFUME. Madam Speaker, this is really about people over politics 
today, and I am glad that people all over the country are watching and 
listening to this debate.
  It is not about the wealthy, the well-connected, and the well-off. It 
is about people who believe, like many of us, that we have gone too far 
without lowering the cost of medicine for everyday people by reducing 
and capping costs where they are--the $35 cap on insulin--and finding a 
way to close the real gap that exists in terms of affordable care and 
extension of the subsidies and making sure that we are really tackling 
the climate crisis by providing the things that will allow consumers 
and homeowners to do what they need to find a way to take advantage of 
the tax subsidies.
  Most of all, it says to everyone else that this is completely paid 
for. This is not a tax bill. It is paid for. It is paid for by making 
sure that the wealthiest and corporations that really get out of paying 
taxes don't get out of paying taxes anymore.
  It is not about the wealthy, the well-connected, and the well-off. It 
is about people all over this country, in Baltimore and elsewhere, who 
want and need this legislation.
  Mr. GUTHRIE. Madam Speaker, I reserve the balance of my time.
  Mr. PALLONE. Madam Speaker, I yield 1 minute to the gentleman from 
Indiana (Mr. Mrvan).
  Mr. MRVAN. Madam Speaker, I rise today in support of the Inflation 
Reduction Act, the historic measure that takes action to lower costs 
for individuals and families in northwest Indiana and throughout our 
Nation.
  Of particular importance to me are the provisions that finally 
address the unfair disadvantage our seniors face when deciding between 
missing a meal or missing a prescription drug.
  As a local elected official, I sat at the table with individuals 
making those choices, and we were able to find solutions. I appreciate 
more than anything that, under this legislation, Medicare will 
negotiate certain prescription drug prices, limit out-of-pocket costs 
for insulin at $35 per month, and, for the first time ever, cap 
Medicare part D out-of-pocket drug costs at $2,000. It is to the 
seniors' advantage to have this passed.
  This is real progress that provides real relief to seniors, and I 
urge my colleagues to join me in supporting this critical legislation.
  Mr. GUTHRIE. Madam Speaker, I yield 2 minutes to the gentleman from 
Ohio (Mr. Balderson).
  Mr. BALDERSON. Madam Speaker, I rise in opposition to H.R. 5376. 
Today, we are voting on a bill that achieves the exact opposite of what 
its name implies.
  Here is what is in their $745 billion inflation reduction plan.
  It raises taxes on businesses in the midst of a recession. It forces 
us into a socialist drug-pricing scheme, leading to fewer lifesaving 
cures, higher costs, and less hope. It hires 87,000 more IRS agents to 
spy on you. It makes it more expensive to heat your home with a new tax 
on American natural gas. It wastes $27 billion on the EPA climate bank 
charged with handing out all of your tax dollars to woke energy 
corporations.
  They are throwing your hard-earned money at their Green New Deal 
dreams while carrying out their misguided threats to eliminate fossil 
fuels. Just look at Europe's energy crisis to see the true cost of the 
rush-to-green agenda.
  Rather than unleashing America's abundant energy resources, this 
legislation raises taxes on energy production and imposes restrictions 
on local producers in my district and in Ohio. Instead of helping bring 
down prices at the pump for hardworking Americans, this bill gives away 
$7,500 tax credits for the wealthy to buy and upgrade their electric 
vehicles.

  What does all of this mean for Ohioans? Higher prices, energy 
insecurity, and tax hikes.
  Madam Speaker, this bill only makes matters worse. I urge a ``no'' 
vote on H.R. 5376.
  Mr. PALLONE. Madam Speaker, I yield 1 minute to the gentleman from 
New Jersey (Mr. Kim).
  Mr. KIM of New Jersey. Madam Speaker, in 2018, I was at a home in a 
retirement community along the Jersey Shore. A gentleman pulled me 
aside and, in a whispered voice, shared with me that he pays over $500 
a month for prescription drugs and couldn't keep up. He resorted to 
halving his pills.
  He told me he was a proud man, but I could hear a quiver in his voice 
because he felt bad that he couldn't provide for himself and his wife. 
He said he worked hard for his entire life, but he can't do this on his 
own.
  I told him that it was not his fault, that prices had been 
skyrocketing, that Medicare had not been able to negotiate prices, and 
that here in the richest, most powerful Nation in the world, those who 
worked hard over the course of their lives are left to fend for 
themselves, halving their medication. How sad is that?
  I come to the floor of the House today to say that this stops here.
  Medicare will be able to negotiate, and because of that gentleman and 
many others I heard from, I decided to help author the provision to cap 
the out-of-pocket costs for seniors at $2,000 a year, which is about 
$166 a month. Seniors have been waiting too long, and it is time now to 
get this done.
  Mr. GUTHRIE. Madam Speaker, I reserve the balance of my time.
  Mr. PALLONE. Madam Speaker, may I inquire how much time is remaining 
on both sides.
  The SPEAKER pro tempore (Ms. Houlahan). The gentleman from New Jersey 
has 5 minutes remaining. The gentleman from Kentucky has 4 minutes 
remaining.

                              {time}  1530

  Mr. PALLONE. Madam Speaker, I yield 1 minute to the gentleman from 
Ohio (Mr. Ryan).
  Mr. RYAN. Madam Speaker, this is an American bill--apple pie; mom; 
baseball; and red, white, and blue. This is for the exhausted majority 
of the people in this country: Democrats, Republicans, and Independents 
versus the extremists.
  Madam Speaker, if you think that this town has been spending too much 
money and we need to reduce the deficit, we do that by hundreds of 
billions of dollars. If you think seniors are taking it on the chin, we 
help them with prescription drugs and $35 insulin payments. If you 
think we need to increase the production of natural gas, that is in 
this bill to create jobs here, lower costs here, and export to Europe 
and the rest of the world to knock Putin's knees out from under him.
  The most exciting thing in this bill is we double down on finally 
having an industrial policy in this country to out-compete China. We 
are going to build things. On top of the infrastructure bill and the 
CHIPS Act, we are going to build electric vehicles, electric cars, and 
electric tractors. With batteries, solar, and wind, we are going to 
rebuild the middle class.
  While the other side wants to defund the FBI, we want to fund our 
kids' future here in the United States.
  Mr. GUTHRIE. Madam Speaker, I yield myself such time as I may 
consume.
  

  Madam Speaker, there is nothing in the bill that increases our 
production of natural gas. The Methane Emissions Reduction Program is a 
natural gas tax that will impact the entire economy. The natural gas 
tax will make everything more expensive for American families. The 
natural gas tax will increase the price of fuel, fertilizer, and food.
  Madam Speaker, 180 million Americans use natural gas to heat homes 
and run appliances. About 5\1/2\ million businesses use it to run their 
workplaces and manufacturing facilities.
  This bill will give EPA sweeping authority to expand the natural gas 
tax to other sectors, including agriculture. There are no guardrails to 
prevent the EPA from ratcheting up the natural gas tax in years ahead.

[[Page H7690]]

  Madam Speaker, I yield 2\1/2\ minutes to the gentlewoman from the 
State of Tennessee (Mrs. Harshbarger).
  Mrs. HARSHBARGER. Madam Speaker, I rise today in opposition to the 
far-left inflation expansion act.
  This bill is detrimental to Americans' wallets and their ability just 
to keep their heads above water. This bill is littered with economy-
crushing measures that cater to climate extremists and Socialists. This 
tax will impact every single part of our lives. It will be more 
expensive to heat our homes, to buy basic necessities, and it will even 
de-incentivize manufacturing of thousands upon thousands of goods that 
we use every day.
  This bill is chock-full of Green New Deal slush funds with no 
accountability and no transparency. We cannot afford to pour billions 
that we don't have into programs that cut our gas and oil industry off 
at the knees--an industry that is already suffering greatly under the 
Biden administration.
  This attack on our refineries could lead to even higher gas prices. I 
know that is hard to believe, but it is true. It leaves us exposed and 
more reliant on our enemies.
  This bill is problematic from start to finish, but as a licensed 
pharmacist for over 30 years, the most concerning part of this 
Socialist scheme is that the government will now have authority to set 
pricing on lifesaving medication. And when they set the price, it is 
going to be out of the reach of the Americans who need it the most. The 
tip of the day is you never want the government in control of pricing 
anything.
  This act will directly take away hope from seniors and as many as 
100-plus cures will be in jeopardy. There will be no incentive for 
companies to develop cures for rare and ultra-rare diseases. This bill 
encourages drug companies to spend less on research and development and 
more on navigating the politics of it all.
  Americans are already being forced to choose between purchasing 
groceries or purchasing their prescriptions, and the last thing anyone 
needs is higher prices for prescriptions and rising insurance premiums.
  Members on the other side of the aisle continue to push an agenda 
that America does not want. This bill is horrendous. It is an 
abomination that Democrats would go to such lengths--as far as risking 
the health and the safety of the people they swore an oath to 
represent--just to push their radical liberal agenda.
  

  Madam Speaker, I urge my colleagues to consider the lives that will 
be negatively impacted by this radical bill and hope to see all the 
Members of the House of Representatives make the right decision for 
America with a ``no'' vote on this far-left inflation expansion act.
  Mr. PALLONE. Madam Speaker, I yield myself 1 minute.
  Madam Speaker, I just want to take this opportunity to thank my 
committee staff who worked so hard on this legislation for so many 
years. This day would not be possible if it wasn't for their dedication 
and constant perseverance: Tiffany Guarascio, Waverly Gordon, Rick 
Kessler, Una Lee, Jacquelyn Bolen, Saha Khaterzai, Rick Van Buren, 
Tuley Wright, Caitlin Haberman, Adam Fischer, Anthony Gutierrez, Tyler 
O'Connor, Medha Surampudy, Jacqueline Cohen, Dustin Maghamfar, Timia 
Crisp, and Brendan Larkin.
  Let me just say, Madam Speaker, I am still waiting for a couple more 
speakers. I just want to say that I cannot emphasize enough the 
significance of this legislation in terms of reducing costs for seniors 
through negotiated prices for Medicare, extending the Affordable Care 
Act, which has made so many people have health insurance who didn't 
have it before, and also addressing climate change, which is really the 
greatest crisis of our time. There is nothing that could be more 
significant in this legislation.
  Madam Speaker, I would inquire how much time is remaining.
  The SPEAKER pro tempore. The gentleman from New Jersey has 3 minutes 
remaining. The gentleman from Kentucky has 1 minute remaining.
  Mr. PALLONE. Madam Speaker, I reserve the balance of my time.
  Mr. GUTHRIE. Madam Speaker, I yield 1 minute to the gentleman from 
California (Mr. McCarthy), who is one of my good friends here in 
Congress, a great leader, and the Republican leader in the House of 
Representatives.
  Mr. McCARTHY. Madam Speaker, today feels like a little deja vu.
  It feels like we are sitting back--was it February of last year?
  America is on a brink. The world is warning the majority party if 
they follow through with more of their spending they could create 
inflation in America.
  It wasn't just on our side of the aisle that warned you. No. The 
former Secretary of the Treasury warned you that if you went through 
with that $2 trillion that inflation would rise and America would be 
harmed. But nobody listened on the other side.
  They were proud. They were going to cheer. They were going to get 
elected. They were going to win based upon this. They went ahead and 
they passed that bill with one-party control in the House and in the 
Senate, and the President signed it.
  If you listened to Steve Rattner, a Democratic adviser to Obama, he 
called it the original sin of inflation.
  Listen to the American public.
  Madam Speaker, I hope every single Member asks their constituents: 
Could they give 1 month's salary up?
  

  Could they afford to give a month's salary up?
  I would love it, Madam Speaker, if the Members would come back and 
tell me anyone who says ``yes'' to that.
  But the sad part about it, Madam Speaker, is everybody in America who 
is paid on a salary just lost more than 1 month because it was deja vu 
all over again. It was exactly that vote that took more than 1 month's 
salary from every American that is paid monthly.
  We have got a President, Madam Speaker, who thinks that inflation is 
zero. I guess that is why we are back to where we are again.
  Today the people's House should be working to answer our country's 
call to address the rising prices of gas, groceries, and just about 
anything else that Americans buy. I haven't heard one debate on this 
floor today about how we are going to lower the gasoline price. I am 
not sure, but I guess, Madam Speaker, on the Democratic side they think 
if they raise taxes then somehow that will make the price go down and 
not up. They have been proven to be wrong.
  Instead, Madam Speaker, moments from now we will take up this 
misguided, tone-deaf bill. I believe it is the largest tone-deaf bill I 
have ever seen in this Chamber in 232 years.
  Democrats more than any other majority in history are addicted to 
spending other people's money regardless of what we as a country can 
afford.
  Madam Speaker, I almost see glee in their eyes. I know there are not 
a lot of them here because they can vote by proxy. It is the only 
Chamber in the history of America that has ever allowed that--not even 
on the Senate side, not even during war, and not even during plague, 
but this body has, and this body continued it. They just extended it. 
This bill wasn't debated here. It wasn't talked about. But a lot of 
people are going to phone it in.
  They started this Congress with trillions in wasteful spending that 
caused runaway inflation.
  Their answer was to blame everybody else.
  Now, their answer is just to deny there is inflation and just say it 
is zero. But today, now they are choosing to end the session by 
spending half a trillion dollars more of your money, raising taxes on 
the middle class, and giving hand-outs to their liberal allies.
  Madam Speaker, unlike most of the Democrats, I have read this bill 
past the title. The facts about this bill are just astonishing. It 
sends $27 billion to a fraudulent national climate bank. Put that in 
perspective: that is triple the size of the EPA's current annual 
budget.
  Madam Speaker, as I go across the country I look to the gas stations 
and see people cry about how much it is costing them.
  You chose to raise it higher but not to give relief to the American 
public by lowering the gas price.
  Along with that slush fund, it hands out tax credits like candy with 
no accountability. But when it comes to natural gas, which heats our 
homes and cooks our food, it raises taxes to fund their Socialist 
scams.
  Madam Speaker, your energy prices will now go through the roof.

[[Page H7691]]

  Madam Speaker, I look forward to hearing how every Democrat who votes 
for this bill--be it in person or how they phone it in by proxy--
explain it to their constituents this winter when they are making a 
choice about whether they pay the energy to heat their homes or they 
cut back on the gas to fill their tank or they no longer even buy the 
food at the grocery store because it just comes too high, they have to 
change.
  Madam Speaker, as they continue to raise trillions after trillions, 
when everybody warns them what they do is wrong, they don't care. They 
just want to double down on the mistakes they have already made.
  Don't expect drug prices to come down either. This bill would cut 
treatments and hinder new cures by giving bureaucrats the power to 
decide what drugs seniors can access. It reduces your options and 
raises your costs.
  That is okay because that is their philosophy. They know best. Just 
like they knew best when they thought $2 trillion would help. They 
called it the American Rescue Plan.
  You now have time to see what you have done.
  Explain to me in the American Rescue Plan when it raised inflation 
and that took 1 month's salary from the American public, what did it 
rescue?

                              {time}  1545

  Who did it help?
  Answer me this question: Is America better off today than they were 2 
years ago? Is the price of gasoline lower? It is?
  The price of gasoline is lower today than it was 2 years ago? I guess 
you believe inflation is zero, too. I am not quite sure about your 
math.
  Is grocery lower than it was 2 years ago? Are the car prices lower 
than it was 2 years ago? Are your food prices?
  I would love a natural debate right here. Why don't we have that? 
Because the American people are having a challenge.
  You know, one of the most successful businesses in America is 
Walmart. When Walmart wants to look at where the economy is in America, 
they don't go hire economists. You know what they do? They just check 
the data of Americans and what they buy. And for those who answered 
yes, you ought to study it, too.
  You know what? They just look at four products. They look at 
hamburger buns, hotdog buns, whole wheat, and white bread. And you know 
what? If the hamburger buns sales go down and the hot dog buns sales go 
down and the whole wheat sales go down, but the white bread sales go 
up, you are in an economic crisis. You know why? Because people no 
longer can make the decision to have hamburgers with hamburger buns. 
They have to put the white bread there.
  For all of you who said yes, why don't you get out of Washington for 
a moment and go ask your constituents if they are better off today than 
they were 2 years ago; because no, gas is not lower. Gas is higher. And 
no, the car prices are higher, and their food prices are higher, and 
they are going up each and every day.
  I can't believe you would say yes. You probably believe the American 
Rescue Plan was a good bill. You probably believe it is Putin's fault, 
too.
  Passing this bill today means more expensive bills for Americans 
tomorrow, and everyone who says otherwise isn't telling the truth.
  But of all the bad parts of this 700-page bill, the massive expansion 
of the IRS is the most chilling.
  Madam Speaker, I wonder if we could ask the same question and, oh, 
boy, I imagine America will ask that in just roughly 87 more days. They 
won't just ask it, they will answer the question, even if it is not 
asked; if they are better off than they were 2 years ago.
  But they will probably ask the question: Is America better off with 
87,000 more IRS agents?
  Currently, the IRS has almost 80,000 employees. So you are going to 
smile; you are going to vote for it. A lot of you are going to mail it 
in because you are just going to vote by proxy. You are going to pass a 
bill you never debated by people voting by proxy.
  You are going to double the size of the IRS. They have 80,000 
employees. You know what the IRS also has? 4,600 guns, 5 million rounds 
of ammunition. Why?
  Democrats want to double its already massive size. You are going to 
spend $80 billion of hard-earned American taxpayer money to hire an 
army of 87,000 new IRS agents.
  Why would you even propose that? Because you say, oh, it pays for the 
bill.
  Madam Speaker, I have got plenty of time.
  I think I will. I appreciate the encouragement because I think 
America needs the encouragement, because you know what? America 
actually needs a plan that works.
  Why, if you passed an American Rescue Plan that caused inflation that 
we haven't seen in 41 years--why, if you went after the fossil fuel of 
America that raised the price of gasoline that Americans haven't seen 
before--why do you keep harming the American public? And you think 
doing the exact same thing is your answer to save it?
  But while this bill doubles the number of IRS personnel, it does not 
expand due process protections for the American people. Worse, it 
includes no income floor for who can be audited.
  Some of the same people on the other side of the aisle, Madam 
Speaker, who say we are better off than we were 2 years ago, that 
somehow--I don't know where they get their gas, but they said their gas 
price is lower. Let me know, because I need to fill my tank up.
  So when you say that you are not going to go after every American to 
audit, you are not being honest, just like you are not being honest 
about what you did to cause the pain to this country. And you have no 
plan to solve it. You simply double down to the exact same thing you 
did before.
  Based upon the past numbers, we know this would mean 710,000 new 
audits for people who make under $75,000. So someone who makes under 
$75,000, you think they need to pay for this. So what you are going to 
do is not trust them.
  Madam Speaker, you say you don't trust the American public, but you 
are not going to hire all these people for the IRS so they could be 
there to help people fill out their tax returns. No, these people are 
going to audit them. We are going to double the size, and they are 
going to go after you.
  You see, there is a philosophy here, Madam Speaker. One side of this 
aisle believes in the American people. One side thinks they know best. 
Even when the gas prices have risen, you think it is lower.
  I am sorry to tell you, Madam Speaker, the President even admitted 
the gas price is higher, but he thought it was a good thing. It was a 
good thing. Because you think everybody can go out and buy a new car.
  Well, we are going to audit you because we need to go after you 
because we think you are not fair, you are not honest, and we are going 
to make you pay for something else. Just pay for the things we care 
most about.
  It costs individuals thousands of dollars in attorneys' fees and 
compliance costs just to be audited by the IRS.
  Imagine what you would do with an extra $10,000 a year. Imagine how 
much better you could have used it than the Federal Government.
  And somehow you think it is best. You think it is best.
  That is how Democrats pay for their pet projects. Your pocketbook is 
their plan to fund more inflationary spending.
  This is just a train wreck just waiting to happen. And with this new 
power, the IRS will snoop around in your bank account, in your Venmo, 
your small business, and then the government will shake you down for 
every last cent.
  You know, in light of this week's events, let me ask: Do you really 
trust this administration, the IRS, to be fair, to not abuse their 
power?
  I hope that I am wrong, but history doesn't lie.
  Madam Speaker, as I travel the country, a lot of people know 
different names of people who work at the IRS, Lois Lerner, and others. 
And even when it comes to light, government is powerful, government is 
big, government can take, as you have proven. You have taken so much 
from the American public. But now you want to intimidate them.
  I have watched Democrats weaponize the government before, and I don't 
trust them now.
  Madam Speaker, mark my words. Long after the headlines of this week

[[Page H7692]]

fade, we will look back on this very day and on this bill as the one 
that broke the camel's back.
  I am sure, Madam Speaker, as the months progress, there will be new 
blame, there will be new problems. It will be those who own the gas 
station. You will probably blame the small families that had to buy the 
natural gas for their price going higher.
  Somehow you will blame Putin again, and somehow you will tell the 
American public, no, your price isn't higher; you are actually better 
off, there is zero inflation, even though you take home less and 
everything costs more.
  Let me tell you about the future the Democrats want for America, the 
future that we can expect if this bill passes, much like the one 
before.
  When wealthy Americans are getting tax breaks to buy luxury cars but 
you can't afford to even fill up your tank, blame this bill, blame the 
Democrats.
  When store shelves are empty because more American manufacturers have 
gone under, blame this bill, blame the Democrats.
  When government agents are knocking at your door and threatening your 
business, blame this bill, blame the Democrats.
  And when your loved ones are left without the cures they need to 
fight a rare disease, blame this bill, and blame the Democrats.
  My friends, that is the exact choice for us today. Now, I know a few 
Democrats showed up. And, hopefully, all those who are voting by proxy 
are watching on TV, because they must be home sick, because that is 
what they said. I hope they spent the time to read it.
  I don't know if they read the American Rescue Plan, but they know the 
damage they have done. America feels it each and every day.
  Madam Speaker, I guess the next question would be--it will be 
interesting to hear the answer from the other side. If you think gas is 
cheaper than it was 2 years ago, if you think the prices at the grocery 
store are lower than it was 2 years ago, do you think the border is 
more secure than it was 2 years ago?
  Someone said yes.
  Madam Speaker, I am going to introduce a bill to rename this place 
fantasyland. I hope when you go home, I hope you take the smirks off, 
and I hope you actually read your obituaries because fentanyl has now 
become the number one killer of Americans between the ages of 18 and 
45. It is not something to smirk about.
  I am sure you got power; you are in the majority. But you abuse the 
power, Madam Speaker. When you abuse power like that, people die. Every 
walk of life, we are seeing it day in and day out.
  I remember the headline of six college kids down in Florida this 
summer. They weren't in a fraternity. They weren't in a sorority. They 
were in the military academy. Six of them OD'd. Four of them took the 
drug; two did not. Two simply gave them mouth to mouth.
  You think it is important to double the size of the IRS, but you are 
not going to do one thing for the border?
  I remember right after you took the power, you took over the House, 
the Senate, and the White House, and you decided to change the 
policies. We watched what has come across the border. I took a trip 
down there.
  I remember going, talking to the agents. They were telling me they 
have never seen anything like this before. I said: What do you mean?
  They said: We are catching people on the terrorist watch list. I 
said: What? On the terrorist watch list? Really? I didn't know there 
was that many people on the terrorist watch list just from the triangle 
of Central America.
  No, no, no, no, no. We are catching them from Yemen. People come from 
160 different countries across this border now. They bring their 
fentanyl from China.
  I went and did a press conference, and I talked about that.
  Madam Speaker, I thought people from both sides of the aisle would be 
very concerned about hearing people on the terrorist watch list are 
coming into America, knowing what has happened in this country before, 
and we would want to keep it safe.
  I was shocked. They didn't ask me for more information. They just 
simply called me a liar.

                              {time}  1600

  We provided the proof. Nobody apologized. That is okay. You don't 
need to apologize, but I wish you would do something about it. They 
continued to stay silent. Then they fought to even get more 
information.
  But I fear to tell you that that is happening each and every day. 
There is not one new piece of money in here to secure that any more. 
That will stop as colleges open back up and as college students on the 
weekend go to their Snapchat, think they are buying a Xanax, and they 
don't wake up the next morning. But that is okay because you just gave 
a break to one of your big donors who makes a lot of money and is going 
to buy an electric car. It is okay because you feel good about what you 
are going to do. I guess that is why you don't show up to vote; you 
just vote by proxy.
  A vote for this bill is a vote to help the well-connected get further 
and further ahead while leaving needs of hard-working American families 
behind. Yet, you could be forgiven for not understanding the gravity of 
today's vote. For such a supposedly historic occasion, few Democrats 
even bothered to show up.
  Look around this Chamber, Madam Speaker. The floor is nearly empty.
  If Democrats really, truthfully want to raise taxes on Americans 
during a recession, that is their choice. That is the power they have. 
They have proven it time and again, and they will do it.
  The very least you can do, Madam Speaker, is show up in person if you 
are going to vote ``yes.'' Show up in person to the American public. 
For those who chant: ``Yes, gasoline is lower than it was 2 years ago; 
yes, the border is safer than it was 2 years ago,'' don't say it when 
the cameras are off. Don't say it when people can't see who is saying 
it. Go to the mikes. If you believe it, go to the mikes and say it.
  Better yet, tell your district about it because they know 
differently. America knows differently.
  But if you want to vote ``yes,'' you should have the courage and the 
decency to show up and do that in person. Yet, Madam Speaker, Speaker 
Pelosi extended proxy voting again on Wednesday, allowing Democrats to 
hide their faces and vote to take your money from the comfort of their 
summer vacations.
  ``Absolute power corrupts absolutely,'' Madam Speaker. That is a 
famous quote.
  There are lots of lessons people learn. Normally, the lesson you 
learn the most is when you cause the most pain. I guess creating 
inflation you haven't had in 41 years, creating shortages where there 
is no baby formula, gas prices that we haven't seen since Jimmy Carter 
was in office, a border that is wide open, a government, Madam Speaker, 
that had an Attorney General call parents terrorists because--what did 
they do?
  They went to a school board meeting.
  Why would they go?
  Why would parents go to a school board meeting?
  Because they wanted to know what was happening in their kids' 
education, the lost learning of the years of the pandemic.
  If you question authority, you are going to be called a terrorist.
  How far would we go to be able to have the rights to do that?
  We are going to find an organization, a union, that will send us a 
letter so we can do it. But when the public finds out why, the union 
pulls their letter back. But the AG doesn't pull back their power 
because they have power, they should use it.
  Is that why you want to double the size of the IRS?
  Is that why you want to double the size of the IRS, to go after 
Americans, to use it?
  Earlier today, we had 80 Democrats use a proxy vote. As we approach 
this final vote on this bill, depending on how long I speak, I expect 
that number might increase.
  If you think about it, that is the story of this Democrat majority. 
They will destroy our economy and mortgage your future but can't be 
personally bothered to show up, to make the trip to D.C. to do their 
jobs.
  What a disgrace. What a disgrace.
  I will promise the American public that that will all change. If you 
run for

[[Page H7693]]

office, if you are going to ask them to lend their vote and to lend 
their voice to go to Washington for 2 years to represent them, you are 
going to show up.
  And do you know what? The bills are going to be in committee. The 
bills are going to be read. They are going to be debated on the floor, 
and you are not going to hide in your vacation home and raise taxes on 
the American public.
  I will even go further. We will lower your gas prices. We will make 
America energy independent. We won't punish natural gas. If you care 
about the environment, American natural gas is 41 percent cleaner than 
Russian natural gas. We will make an abundance of it.
  So those people who are living on a $75,000 income who have watched 
it get dwindled under your leadership, under your American Rescue Plan 
that simply took a whole month's salary away from them, and where they 
had no say, you celebrated it, you cheered it, and then you blamed 
everybody else for what you created. We will tell you it will cost 
less.
  For the parent that wakes up that morning--maybe it is a phone call 
or maybe their kid is home, who doesn't wake up because they went out 
and purchased something that wasn't fentanyl but it was laced with 
fentanyl, we will make sure that stops.
  It is August. Right now is normally the time people have barbecues, 
but now the price is high. Now people question whether to even get the 
hotdog buns.
  They are going to turn on the TV, they are going to watch an empty 
Chamber, and they are going to read online that 80 Democrats took that 
vacation and voted to raise more taxes, voted to spend more of their 
money, and looked into the camera and smiled and said:

       We know best. We want to take more of your money because we 
     have got to hire and double the size of the IRS because we 
     want them to knock on your door because we think you are not 
     honest and because we think you can pay more.
       And if you don't, we have got an AG that will come after 
     you. If you go to that school board meeting, we will look in 
     your eyes, we will take your name down, and we will wonder 
     why you care about your kids' education.

  Madam Speaker, that will end, too, because we are going to provide 
the American public with a parents' bill of rights. We think that 
parents should have a say in their kids' education. We think that 
parents should know what is being taught at their children's schools.
  Madam Speaker, I even watched, under this leadership, a Democrat who 
voted by proxy who wasn't even in America.
  So I wondered: Were they in another country to get healthcare? Were 
they sick?
  No, no, no. They were in France at a wedding when they phoned that 
vote in. I wasn't quite sure.
  Do you think at the wedding the Member was reading the bill on the 
phone so that Member knew how to vote?
  I am not sure it came through committee. I don't know how much debate 
they had on this because the Senate did this bill. What a disgrace.
  Madam Speaker, I urge all my colleagues to reject this out-of-touch 
bill, reject the crushing new taxes, reject the ballooning of 
government, and reject the spending on things that we don't need with 
money we don't have.
  Madam Speaker, I can wait, if you need to continue.
  But most of all, I urge my colleagues to remember this day. Remember 
this day because it will be the last time the House will operate so 
recklessly and irresponsibly.
  A new day is coming with a new plan to put America back on the right 
track. It will be a commitment to America that there will be fiscal 
responsibility and there will be energy independence where your 
gasoline price will be lower and plentiful, that your home heating 
costs will lower and not rise; and that we won't pick one energy over 
the other. It will be all of the above so America can be stronger. Your 
border will be secure because fentanyl and terrorists will not be 
coming across. This border is a national security issue.
  We will focus on bringing the supply chain from China back to 
America, which is not what this bill does. This bill takes American 
taxpayer money and sends it to China. You triple the size of the EPA. I 
imagine China is cheering, because they see their economy is going to 
rise. Their government doesn't have to vote for a stimulus, because 
that is exactly what you are doing here.
  What is even greater, China will look and say: Well, can we make sure 
America can send all that money here?
  Don't worry, the Democrats doubled the size of the IRS. They will get 
that money and make sure it comes.
  In the commitment to America, we believe people show up to go to work 
and that you earn your paycheck. You don't phone it in.
  Madam Speaker, when I handed the gavel to Speaker Pelosi last year, I 
said that a House distracted could not govern. Today, as this majority 
jams through yet another partisan spending spree, it is clear to me 
that an absent House cannot lead.
  I trust the American people. I know it is the people who will render 
the ultimate verdict on today's actions. When they do 87 days from now, 
my Democratic colleagues will have only themselves to blame.
  Madam Speaker, I am not sure what is happening on your side of the 
aisle that Members actually believe gasoline is less than it was 2 
years ago.
  Madam Speaker, I am not sure what is happening on your side of the 
aisle that your colleagues believe the border is more secure than it 
was 2 years ago.
  Madam Speaker, I am not sure what is happening on your side of the 
aisle that your colleagues believe the price of groceries is less than 
it was 2 years ago.
  Madam Speaker, I am not sure what is happening on the other side of 
the aisle that your colleagues believe doubling the size of the IRS is 
a positive thing.

                              {time}  1615

  Yes, I come from a different party, and yes, I have a different 
philosophy, but we are all Americans. Madam Speaker, you are going 
inflict this pain on every single American.
  Madam Speaker, I am not sure if your side of the aisle thinks this is 
going to do anything to lower the price of inflation. I do know, Madam 
Speaker, one person on the other side of the aisle in the other 
Chamber, Bernie Sanders, spoke the truth and said it won't.
  I know on your side of the aisle, Madam Speaker, not everybody 
believes the same. The former Secretary of the Treasury warned you 
before you did the American Rescue Plan that it would bring inflation, 
and he was right. Even the current Secretary of the Treasury finally 
apologized and said they were wrong.
  The President said it was going to be transitory. He said it had 
peaked. He said it was everybody else's fault, but now he says it is 
zero.
  Madam Speaker, I guess I do understand why your side of the aisle now 
believes all that. I just know America doesn't. Because every day 
America goes to the grocery store, the price has increased. Every week 
when they fill up their gas tank, the price is higher. Every month when 
they cash their check, it doesn't go as far.
  Madam Speaker, if the border was really more secure than it was 2 
years ago, why is the D.C. mayor now asking for the National Guard when 
she wouldn't even ask for it when there were riots in the streets?
  Madam Speaker, my colleagues on the other side can lie to me, but 
they can't lie to America. Eighty-seven days from now it doesn't matter 
how you try to answer those questions. The American people will.
  I remember when we were at this stage once before. We had somebody in 
the White House that put a sweater on and told us to turn the heater 
down, that the best days were behind us as Americans.
  I watched another person walk to the podium and say no pastels, fly 
the bold colors, and go to that shining city on the hill.
  We know what America is. And we are more than a country. We are an 
idea, an idea so powerful that we can overcome all the pain that you 
have caused.
  It won't be easy. And I will offer this invitation. For all the bad 
votes you have taken, when the change comes, we will welcome you to 
correct the mistakes you have made. Because you will be in committee. 
Maybe you will learn that gas prices are higher. Maybe you will learn 
that groceries cost more. You will be here to vote so you will

[[Page H7694]]

hear the debate. Maybe I can't blame you for thinking that if you don't 
have to show up.
  Madam Speaker, there are a lot of days on this floor that change the 
course of history. In the last 2 years, that history has not been 
bright. Inflation, a 41-year-history high. Do you understand what that 
does to the American public? Do you understand the pain that it causes? 
Do you understand the choices that people have to make?
  I heard the story of a young family, their daughter has cancer. For 
her treatment they have to drive a long way. She was crying one day 
because she heard her parents talking about making the decision to take 
out loans they cannot afford to pay for the gasoline that your side of 
the aisle thinks costs them less but costs them more, the choices they 
had to make because you titled a bill ``American Rescue Plan'' that 
only inflicts pain, and you just doubled down.
  Madam Speaker, I would respect the other side of the aisle much 
greater if they would at least do exactly what Secretary Yellen did, 
apologize for your mistake and change course.
  Don't double down. Don't make the same mistake three, four times like 
you are going to do today. At the very least--at the very least, if you 
are going to vote ``yes,'' do it in person. Do it in person. Read the 
bill. Put it through committee.
  Madam Speaker, I have watched this body take on big issues. We have 
got some of the biggest issues before us today. You continue to make it 
just a partisan action, one that even your side of the aisle has warned 
you against. But somehow you want to celebrate it.
  Madam Speaker, in my office in a conference room, I have this 
painting of Washington crossing the Delaware. You all know the famous 
painting. It sits 8 feet by 16 feet. If you study history, you will 
know that it happened Christmas 1776. The artist who painted that 
famous painting wasn't even American. He wasn't there. He had no iPhone 
that day to take a photo. The person who painted the painting is a 
German immigrant who lived in America but went back to Germany. His 
name is Emanuel Leutze.
  Do you know why he painted that painting? Because he understood 
America was more than a country, that America was an idea. He wanted 
Germany to have a revolution based upon the values of America, of 
freedom, of individual rights, of a stand against tyranny, that 
government would be of the people, by the people, for the people.
  His talent was art, so he thought he would paint this painting to 
inspire the Germans to have this revolution. Now, historians will tell 
you he gets it incorrect. He puts 13 people in a rowboat. Why would he 
pick the number 13? Thirteen colonies. But he only shows you 12 faces.
  If you look at the painting, he puts Washington in a rowboat, but 
historians will tell you Washington probably crossed in a Durham boat. 
If you look at the Delaware, it kind of looks like the Rhine. But he is 
German. We will give him a break for that. He puts Washington in a 
ceremonial uniform with his hand on his chest standing up in a rowboat 
crossing the Delaware in the middle of winter. He looks so stoic.
  If you look at Washington in that painting, you would almost say you 
would follow this man anywhere. You would think he had never lost a 
battle or a fight. But for the students of history, they understand at 
that moment in time, Washington had never won a battle. We had never 
won one fight as a country. But that was our first victory, as we 
surprised the Hessians.
  But what I would like you to see next time is who is in the boat. The 
second person is wearing a beret. He is Scottish. The person directly 
across from him in the green jacket, he is African American. You come 
down the boat, and in the middle of the boat, the person who almost 
looks the strongest, rowing in the red, is a woman. In the very back, 
the very last person, is a Native American.

  I cannot tell you from a historical point of view if they were in the 
boat that night. But to this young immigrant who had lived in America, 
that is who he believed would be in the boat.
  Now, the second to last person in the boat, he has a hand across his 
face. It is the hand of the 13th person nobody sees. What this artist 
was saying--Emanuel, I believe--Here we are, not a country but an idea, 
having lost every battle before but willing to create a Nation. Why? To 
go against the tyranny of a government that will tax you with no say, a 
government that became so big it can inflict pain upon you, tell you 
what to do, that we would risk it on our holiest of night.
  Here is a hand. Would you get in and join us?
  That is as true today as it was then. The challenge that we face 
right now is you are making that government big. You are doubling the 
size of the IRS. You are going against every single reason people were 
in that boat willing to risk their lives for a government of the 
people, by the people, for the people, a government that was created in 
a country that was conceived in liberty and dedicated to the 
proposition that we are all equal, because you think you know what is 
best.
  I can only imagine what those individuals would think today, that you 
would put a bill on the floor that didn't go through committee. You put 
a bill on the floor that would double the size of the IRS, that could 
go after the American public, that has no set on an income, that 
710,000 people under the income of $75,000 are now going to be audited 
because you want them to pay for what you think is best, that you're 
going to tax, with no limit on income, some family that already lost a 
month's salary based upon your past actions because of inflation.
  You are going to make them choose how cold. You are going back to 
Jimmy Carter. You are simply telling the American public to put that 
sweater on, turn that heater down. But to your elite donors, you are 
going to give them the tax credit from those IRS agents so they can go 
buy a new Tesla. That is what you are doing in this bill.
  But 4 to 6 months from now, you will blame somebody else for it. The 
good news is, there will be a new Congress with a new ability to change 
all that, that will provide the American public a commitment to 
America, a new plan to put this country back in the right direction.
  Madam Speaker, with whatever happens today--and I can only guess, if 
you have all the votes in your pocket that people don't have to show 
up, one or two people can determine the outcome. But, Madam Speaker, I 
implore upon you--I don't know what happens in your conference--please 
allow the American public to come in to simply tell you and explain to 
you that, no, gas is not lower, groceries do not cost less, and the 
money does not go as far as it did before.
  Maybe that is why I can only understand, if you truly believe that, 
that you would vote ``yes.'' For everybody else that is living in the 
real America, they will vote ``no.'' And 87 days from now, I believe 
most of America will have the answer to that question, too, with a new 
Congress and a new plan.
  Mr. PALLONE. Madam Speaker, may I inquire how much time is remaining?
  The SPEAKER pro tempore (Ms. Jacobs of California). The gentleman 
from New Jersey has 3 minutes remaining. The time of the gentleman from 
Kentucky has expired.
  Mr. PALLONE. Madam Speaker, I yield myself 1 minute.
  I will speak briefly before I introduce our two leaders who have done 
so much on the Democratic side to make this bill a possibility today. 
The Republican leader said that we should listen to our constituents. 
Well, we have.
  Yesterday, I was at a senior center in Woodbridge, and a woman came 
up to me and said: You know, Congressman Pallone, I spend $1,500 a 
month on prescription drugs. And I was able to say to her: I am going 
to be in Washington tomorrow. I am going to vote on a bill that is 
going to cap your expenditures at $2,000 a year.
  Then I had another woman in a telehealth meeting earlier in the week 
who told me that she was so hot, because in New Jersey we have had the 
worst drought and the highest temperatures that we know in years, and 
she said: I have to go to a cooling center because of the heat, because 
of my health and the impact on my health.

                              {time}  1630

  I was able to say to her: Look, it is going to take a while, but 
tomorrow--this Friday--I am going to vote on a bill that is going to 
address the climate change and the heating and the warming of this 
planet.

[[Page H7695]]

  Madam Speaker, I want to thank our two leaders for what they have 
done to bring this about today.
  Madam Speaker, I yield 1 minute to the gentleman from Maryland (Mr. 
Hoyer).
  Mr. HOYER. Madam Speaker, I thank the gentleman for yielding.
  Today will be the culmination of the meeting of promises that 
President Biden made to the American people resulting in some 7 to 8 
million more people voting for President Biden than the incumbent 
President.
  My colleagues, we have just heard from the leader of the party of: 
You are on your own.
  The leader who just spoke voted against the American Rescue Plan that 
put money in the pockets of American families, put American children 
back to school, and resulted in our not wearing masks today by--with 
some exceptions--putting vaccine in arms.
  The leader who just spoke voted ``no,'' as did every one of his 
colleagues. They said ``no'' to money to help families not fall through 
the cracks, to help them afford their groceries, to help them afford to 
pay their mortgage, and to send their kids to school.
  They voted ``no'' to make sure those vaccines were in arms.
  They voted ``no'' to help small businesses, restaurants, and others 
be lifted up. The party of: You are on your own, America.
  And yes, when they came to office, what did they try to do in 2017?
  Repeal healthcare support for the American people.
  We are doing the opposite. We plead guilty.
  The leader of the Republican Party who just spoke voted ``no'' on the 
infrastructure bill to respond to building roads and bridges and to 
making sure they are maintained and safe; to respond to broadband to 
make sure that rural areas are connected, and with airports to make 
sure we had a grid that made us competitive.
  The gentleman who just spoke voted ``no.''
  As far as the CHIPS bill, the gentleman talked about China. China was 
lobbying against the CHIPS bill. The minority leader voted ``no'' on 
the CHIPS bill, which was a bill to make America competitive and create 
hundreds of thousands of jobs. That was bipartisan in the House by a 
small degree and in the Senate, as well. But the minority leader voted 
``no.''
  So I must say that I am not shocked that he is voting ``no'' on this 
bill, which is aimed at helping Americans with their healthcare, which 
is one of the greatest reasons for inflation.
  I am not surprised that he mischaracterized the reaction on this side 
of the aisle when he said gas prices were high and haven't come down. 
In fact, in the last 40 days, they have come down 20 percent.
  The gentleman is shaking his head, no, no, they haven't. I don't know 
where he is buying gas, but they have come down from $5 to $4, and in 
some cases less than $4.
  Is that too high?
  Yes, it is.
  Should we be concerned about that?
  Yes, we should be.
  We passed two bills. One was a bill to make sure that we didn't have 
price gouging. No American wants to see price gouging.
  The minority leader voted ``no'' on that bill.
  We offered another bill that dealt with food and fuel prices and to 
try to make sure that we have delivery systems and supply chains that 
worked.
  The minority leader and his colleagues voted ``no''--not everyone.
  We had a bill on this floor that tried to help and is going to help 
millions of veterans who had been exposed to toxic burn pits--cancer, 
heart disease, and lung disease. The minority leader, it will not shock 
you, voted ``no'' to help veterans.
  We had another bill on the floor to make sure that we could preclude 
and try to help women who had violent acts committed against them. It 
may not surprise you that the leader of the party of: You are on your 
own voted ``no'' on the Violence Against Women Act.
  It is time to say ``yes,'' yes to the people, to focus on people and 
not on the politics of 87 days from now.
  That is what this is about: politics pure--well, impure--and simple.
  It is time for us to say ``yes'' to bringing prices down.
  Now, I want to add just a couple of things, and I want to talk about 
the four pieces of legislation that are changing America for the 
better.
  He wrings his hands about the awful situation that America is in.
  In January of 2021, before Joe Biden became President of the United 
States, unemployment was 6.4 percent. During the course of the Trump 
administration, we had lost 2.8 million jobs; a net loss after 4 
years--net loss.
  Over the last 18 months, we have created 9.5 million jobs. That is 
almost a 12 million-job turnaround, to the best, to the good, to the 
appreciation of ability of Americans to get jobs.
  And he mentioned something about gas prices.
  Are they high?
  They are.
  Let me tell you when they were higher. In July of 2008 they were 
higher.
  Hear me. Go check the records. $4.14, which in real dollars today 
would be $5.62 under George Bush.
  Are prices too high?
  They are.
  Do we want to bring them down?
  Yes, we do. That is why we fought price gouging on food and fuel, 
both of which the minority leader voted against.
  As I said, unemployment in January was 6.4 percent. It is now 3.5 
percent; halved.
  Is inflation too high?
  It is.
  We passed a bill. Some people said, Well, that is going to cause 
inflation.
  What it caused was people didn't fall through the cracks. They were 
able to pay their bills. They were able to send their kids back to 
school. That is what it did. That is what the American people are going 
to remember, that the Democratic Party was there for them and the 
Republican Party was not.
  Then we talk about this money that we are going to give to IRS, which 
has been reduced 20 percent under the Republican leadership when they 
were in charge.
  What did they reduce?
  Enforcement.
  Why?
  Because they didn't want their big, fat cat people to be caught not 
paying their fair share.
  Yes, Mr. and Mrs. America, you are paying a higher price because some 
people pay nothing. You don't think that is fair, and we don't think it 
is fair. And, yes, we want to make sure the rules are followed.
  In order to have the rules followed, you need referees. And when you 
have 100-some-odd million taxpayers, you need a number of people to 
find that out and make sure that you obey the law.
  Yes, we support that. We believe in facts, and we believe in truth.
  There is a Republican leader--no longer a leader--who believed in 
facts and truth, and Liz Cheney was fired from her position because she 
told the truth and confronted a former President who promotes lying.
  Madam Speaker, when President Biden took office with a Democratic 
Congress, we promised the American people results. We are delivering. 
We promised we would make progress on the issues where progress has 
been stalled for far too long. We promised, in short, responsible 
government that gets things done ``for the people.'' People, not 
politics. We promised responsible government that puts the needs of our 
people over politics.
  Over the past 18 months, many have questioned whether that would even 
be possible. Our country is too divided, they said, to achieve big 
goals and enact really consequential legislation that benefits the 
American people and our economy.
  Madam Speaker, 9.5 million new jobs in 18 months.
  Over these same 18 months, however, our Democratic majorities and the 
Biden-Harris administration have proven those doubters wrong.
  The legislation we will pass today and send to the President's desk 
is the fourth leg of a table of support and opportunity Democrats have 
built for the American people.
  The first leg was the American Rescue Plan. That law put more than 
200 million shots in arms and made it safe again for workers to go back 
to their jobs, for students and teachers to go back to school, and for 
entrepreneurs

[[Page H7696]]

to take risks and invest in their businesses. It worked.
  Since then, we have seen record job growth. As I have said, 9.5 
million jobs have been created since last January. That is the largest 
number of jobs created in 18 months in the history of our country and 
the lowest rate of employment in half a century. Only Republicans could 
call that failure, because it wasn't their success.
  More Americans are working today than at any point in our history. We 
also cut child poverty in half. Perhaps that is not seen as a success 
by the other side of the aisle.
  Next, we brought Democrats and Republicans together in a historic 
effort to enact the bipartisan infrastructure plan, which is already 
rebuilding roads, bridges, transit systems, seaports, and airports in 
every corner of our country, after President Trump said in 2016 that he 
was going to do a trillion dollars.
  In 2017 it didn't happen. In 2018 it didn't happen. In 2019 it didn't 
happen.
  The Republicans were in charge of the House, Senate, and the 
Presidency of the United States.
  Inattention and disrepair. For years, we heard people talking about 
``infrastructure weeks.''
  Do you remember that?
  The minority leader and others: We are going to have an 
infrastructure week.
  It never happened.
  Last November, we put people over politics and got it done. That 
decision was so successful that even many of the Republicans who voted 
against it are cutting ribbons that will facilitate commerce and 
improve the lives of their constituents, even though they didn't 
support the bill.
  One side effect of the pandemic was to magnify the cracks in our 
economic system and our reliance on the unreliable in our supply 
chains.
  Any family trying to buy a new car or trying to budget for a new 
appliance in the last year or two understands what that means.
  And by the way, on inflation, Europe didn't have the rescue plan. 
Asia didn't have the rescue plan. Other nations didn't have the rescue 
plan.
  Guess what, Madam Speaker?
  All of them are experiencing inflation, half of them greater 
inflation than is present in the United States of America.
  Does that mean we have to stop our efforts to reduce it?
  Of course not.
  Is it hurting our people?
  It is.
  Are empty shelves on grocery stores troubling?
  They are.

                              {time}  1645

  Rather than blame one another, perhaps we ought to look at the real 
villain, and that was the pandemic.
  Earlier this week, President Biden signed the CHIPS and Science Act, 
the third leg of our table of support and opportunity, into law.
  That bipartisan legislation will ease inflation by bringing 
manufacturing and sources of critical components and products back to 
the United States so that we make them in America, and our workers make 
it in America.
  It means that we won't cede the next century of innovation to China 
or anybody else. China--let me repeat--lobbied against that bill, and 
almost every Republican voted against that bill, just like China 
wanted.
  Instead, American labor and American innovation will continue to lead 
the world in research, innovation, and advanced manufacturing and 
continue to draw the brightest minds from around the world. That also 
will mean lower costs for American families.
  The CHIPS and Science Act was another significant piece of 
legislation under the Make It In America agenda. It is hard to think 
that somebody would vote against all four of these bills--a promise 
made to America and a promise that they relied on and they voted for in 
an election--not a poll, not a survey, and not a focus group--in an 
election.
  That is because it gets to the heart of what government is supposed 
to do: help provide our workers, businesses, and people with the tools 
and confidence to make it in America.
  Today, we are going to send to President Biden the legislation that 
represents the fourth leg of our table of support and opportunity: the 
Inflation Reduction Act. As its name suggests, it will further help 
lower costs for Americans.
  First, it will lower healthcare costs by extending the cost-saving 
premium tax credits under the Affordable Care Act that we included in 
the American Rescue Plan, which has gotten us to 92 percent coverage in 
America. And, very frankly, it would be higher if there weren't States 
who had refused to provide the Medicaid opportunity for citizens who 
fell in the middle of the income spectrum.
  We included that, of course, but our Republican friends in the United 
States Senate would not agree to it. This bill will provide for 
quality, affordable healthcare to almost every person in the United 
States, irrespective of their income.
  The national uninsured rate has fallen, as I said, to an all-time low 
of 8 percent, with 5.2 million Americans gaining coverage since the 
start of the Biden-Harris administration--in large part due to having 
made those cost-saving premium tax credits more widely available.
  My understanding is our Republican friends are going to vote against 
this bill. Millions of people will be unable to afford their insurance. 
That is extended by 3 years.
  Next, it brings down the cost of prescription drugs by allowing 
Medicare for the first time ever--but not uniquely because the Veterans 
Affairs does that, and it makes sense--to negotiate lower prices from 
manufacturers.
  Democrats have been working for decades to achieve this goal. As I 
mentioned at the outset of my remarks, our majority is delivering on 
that promise.
  The bill also caps the cost of insulin at $35 a month. It would have 
been extended to everybody, but our Republican friends refuse to 
support that alternative, so it is only going to apply to Medicare at 
the beginning. We are not going to stop. We also capped the cost at 
$2,000 a year for seniors on Medicare. We want to extend that to the 
private market as well, and we will work on that.
  Madam Speaker, this is a historic achievement that will save lives 
and allow more seniors to access life-saving and life-sustaining 
medications.
  Additionally, the Inflation Reduction Act is the largest single 
investment addressing the climate crisis that any nation has ever made. 
I don't know how it was at your place, but with temperatures of 95, 96, 
97, and 98 degrees and high humidity, we have a climate crisis. The 
deniers have undermined our ability to respond. This bill responds. It 
responds consistent with the desires of the American people.
  It will bring down the cost of energy for Americans by investing in 
developing and deploying cleaner, more sustainable energy technologies 
like electric vehicles and solar panels.
  At the same time, we are doing it without raising the deficit. In 
fact, the legislation reduces the deficit by closing loopholes so the 
largest corporations with profits over a billion dollars will pay a 
minimum tax rate of just 15 percent. The rate is 21 percent on 
corporations, but if they get over a billion dollars, they are going to 
pay at least 15 percent. Why? Because we protect their shipping lanes 
with our Navy. We protect their roads that they transport goods across. 
They get a lot from their taxes, just as we all do. Maybe that is why 
the Republicans don't like this bill.
  That is well below the regular 21 percent tax, as I said. We do it 
all while ensuring that individuals and families earning less than 
$400,000 a year won't see a single tax increase. Let me repeat that. 
Nobody making less than $400,000 a year will see a tax increase.
  Those four legs: the rescue plan, the infrastructure bill, the CHIPS 
bill, and now this reduction in inflation act will provide for growth, 
opportunity, and competitiveness for our economy and for our people.
  There is, however, another critical piece of legislation that helps 
keep that table sturdy. Let us recap this list of major enactments:
  Getting Americans back to work from the pandemic. That is what we 
did.
  Securing long-overdue infrastructure investments. That is what we 
did.
  Easing the inflation by helping American companies build more chips, 
semiconductors, and other critical components here instead of importing

[[Page H7697]]

them from unreliable countries. Over 100,000 new jobs. That is what we 
did.

  Reducing inflation by lowering healthcare prescription drug and 
energy costs while combating the climate crisis. That is what we did. 
We will keep on doing it for the American people in the next Congress.
  In addition to all these, the Democrat-led House has passed many, 
many more important bills that have yet to be considered in the 
Senate--blocked by Republicans.
  Today, with the Inflation Reduction Act, we will answer any who still 
doubt whether we can deliver on our promises.
  Today, Democrats and this administration are showing that we can and 
will continue to put people over politics and ensure that our people 
can make it in America. Vote for America. Vote for the American people. 
Vote for this bill.
  Mr. PALLONE. Madam Speaker, to close the debate, I yield 1 minute to 
the gentlewoman from California (Ms. Pelosi), the Speaker of the House, 
who has done so much to bring this bill to final passage today.
  Ms. PELOSI. Madam Speaker, I thank you for your tremendous leadership 
and the other chairs for bringing this legislation to the floor.
  The hour is growing late, and as a courtesy to my colleagues, I 
intend to shorten my remarks. For those that I shorten the remarks, I 
promise to put them in the Record if you promise to read them.
  Let me also begin by saying that I associate myself with the remarks 
of all of my Democratic colleagues, and that covers a lot of territory.
  Madam Speaker, under the visionary leadership of President Biden, 
Democrats have forged historic progress for America's families.
  First, we enacted our life-saving American Rescue Plan: to propel us 
out of the pandemic by putting money in pockets, vaccines in arms, 
children safely in school, and people back to work.
  Next, we secured the transformative bipartisan infrastructure package 
to create good-paying union jobs rebuilding our Nation.
  This week, President Biden signed the CHIPS and Science Act, which 
declares our economic independence, strengthens our national security, 
and enhances our families' financial future. We also honored the 
valiant service of our men and women in uniform with the PACT Act.
  Today, Madam Speaker, is a day of celebration, a day we take another 
giant step in our momentous agenda. Our Inflation Reduction Act is a 
robust, cost-cutting package that meets the moment: ensuring that our 
families thrive and that our planet survives.
  This is landmark legislation which we send to the President's desk, 
and it is a resounding victory for America's families starting at their 
kitchen table. What it means to you--to our constituents, to people out 
there whom we serve in terms of healthcare--if you are one of 
Medicare's 64 million enrollees, this bill brings down the out-of-
pocket costs in prescription drugs.
  We do this by empowering the Secretary of HHS to negotiate lower 
prices, at long last. We have been fighting for this for years. We do 
so by capping out-of-pocket prescription drug costs. And you, our 
constituents, will not pay one more cent for life-saving medication. 
This includes a $35 cap on insulin copays.
  We do this by banning drug manufacturers from raising prices faster 
than inflation, protecting you against predatory price hikes. Make no 
mistake: these measures are a big blow to Big Pharma, which has had a 
stranglehold for decades, preventing us from making this move. Now we 
have relaxed that stranglehold a bit--there is more to be done--but we 
give more leverage and more breathing room to America's families.
  At the same time, this bill locks in lower premiums that Democrats 
secured first in the rescue package. Together, lowering the cost of 
prescription drugs and healthcare premiums are vital strides in our 
fight for economic justice. This is particularly important to low-
income communities, underserved communities, and communities of color.
  In doing so, we honor the call of Dr. King, who said: ``Of all the 
forms of inequality, injustice in health is the most shocking and the 
most inhumane because it often results in physical death.''
  The inflation bill is a plan divided into three parts: Prescription 
drugs and healthcare; second, the most consequential climate action in 
the history of our Congress of our country. Doing these two things will 
reduce the deficit. At the same time, this legislation advances 
President Biden's and Democrats' relentless commitment to putting 
justice first.
  All of these crucial investments are fully paid for by making sure 
the ultra-rich and biggest corporations pay their fair share.
  The climate provisions will make a meaningful difference for 
America's working families. I am going to put that in the Record, if 
you promise to read it, but it is about clean air and clean water for 
our children. It is about 9 million good-paying union jobs. It is about 
preventing conflict over resources and habitat. It is about values--
values espoused by Pope Francis when he said earlier this summer that 
our planet has reached a ``breaking point'' in the fight against 
climate crisis. Extreme weather continues to wreak havoc across the 
country and around the world, and it is clear the costs of inaction far 
outweigh the costs of action.
  The bill saves the planet while keeping more money in your pockets. 
For working families, you will save an average of $1,000 a year and 
lower energy bills. For underserved communities, this bill invests $60 
billion in environmental justice initiatives to ensure that everyone 
enjoys the benefits of a cleaner, green economy.

                              {time}  1700

  Again, the bill pays down the deficit by $300 billion in the first 
decade.
  Here is what it means to you: it lowers the deficit and drives down 
inflation in the long term.
  These monumental investments for families and healthcare are fully 
paid for ensuring the biggest corporations and wealthiest pay their 
fair share. That is an estimate of about $160 billion a year of taxes 
that are unlawfully not paid. Right now families are being harmed by 
corporate profiteering.
  But let me just say that I don't want you to take it from me. I want 
you to take it from a large number of economists--126--including seven 
Nobel Prize winners and three former chairs of the Council of Economic 
Advisers in a letter urging passage of this bill.
  I want you to hear this, my Republican friends, because clearly you 
don't know this. But now that you do, perhaps you will change your 
comments.
  These investments will fight inflation and lower costs for American 
families while setting the stage for strong, stable, and broadly-
shared, long-term economic growth.
  Madam Speaker, I include in the Record their letter.

                                                   August 2, 2022.
     Hon. Charles Schumer,
     Majority Leader, U.S. Senate,
     Washington, DC.
     Hon. Mitch McConnell,
     Majority Leader, U.S. Senate,
     Washington, DC.
     Hon. Nancy Pelosi, Speaker,
     House of Representatives,
     Washington, DC.
     Hon. Kevin McCarthy, Minority Leader,
     House of Representatives,
     Washington, DC.
       Dear Senate Majority Leader Schumer, Senate Minority Leader 
     McConnell, Speaker Pelosi, and House Minority Leader 
     McCarthy: We write to strongly urge you and your colleagues 
     in Congress to swiftly pass the Inflation Reduction Act of 
     2022. This historic legislation makes crucial investments in 
     energy, health care, and in shoring up the nation's tax 
     system. These investments will fight inflation and lower 
     costs for American families while setting the stage for 
     strong, stable, and broadly-shared long-term economic growth.
       This legislation represents the single biggest step to date 
     in tackling the climate crisis. It makes key investments to 
     incentivize the transition to cleaner energy sources and 
     greater efficiency. It also invests in the current energy 
     distribution system to make it more resilient, lowers energy 
     costs for families, and helps protect U.S. family budgets 
     against future shocks.
       This legislation will quickly and noticeably bring down 
     health care costs for families. It allows Medicare to 
     negotiate lower prices with pharmaceutical companies, reduces 
     Medicare out-of-pocket costs for drugs, and reduces insurance 
     costs for 13 million Americans by building on provisions in 
     the Affordable Care Act.

[[Page H7698]]

       These investments would be more than fully paid for. The 
     revenue raised to finance them would come exclusively from 
     wealthy individuals and corporations. Further, the revenue 
     stems from enhanced tax enforcement and closing some of the 
     most distortionary loopholes in the tax code.
       This proposal addresses some of the country's biggest 
     challenges at a significant scale. And because it is deficit-
     reducing, it does so while putting downward pressure on 
     inflation. We strongly recommend Congress act decisively to 
     build a stronger economy by passing the Inflation Reduction 
     Act as soon as possible.
           Sincerely,
         Joseph Stiglitz, Columbia University; Robert Solow, 
           Massachusetts Institute of Technology; Peter Diamond, 
           Massachusetts Institute of Technology; Oliver Hart, 
           Harvard University; Eric Maskin, Harvard University; 
           Edmund Phelps, Columbia University; Robert Rubin, 
           Council on Foreign Relations; Jacob Lew, Columbia 
           University; Jason Furman, Harvard University; Martin 
           Neil Baily, Brookings Institution; Doug Elmendorf, 
           Harvard Kennedy School; Roger Ferguson, TIAA 
           (formerly); Alan Blinder, Princeton University; Louise 
           Sheiner, Brookings Institution; Tara Watson, Brookings 
           Institution; Mark Paul, Bloustein School of Planning 
           and Public Policy; Matthew Rabin, Harvard Economics 
           Department and Business School; Katharine Abraham, 
           University of Maryland; Byron Auguste, 
           Opportunity@Work; Brad Delong, University of 
           California-Berkeley.
         Jesse Rothstein, University of California-Berkeley; Heidi 
           Shierholz, Economic Policy Institute; Betsey Stevenson, 
           University of Michigan; Dean Baker, Center for Economic 
           and Policy Research; Mark Zandi, Moody's Analytics; 
           Josh Gotbaum, Brookings Institution; David Johnson, 
           University of Michigan; Hilary Haynes, University of 
           California-Berkeley; Larry Katz, Harvard University; 
           Karen Dynan, Harvard University; Richard Schmalensee, 
           Massachusetts Institute of Technology; Maurice 
           Obstfeld, University of California-Berkeley; Carl 
           Shapiro, University of California-Berkeley; William 
           Spriggs, AFL-CIO & Howard University; Prasannan 
           Parthasarathi, Boston College; Robert Blecker, American 
           University; Anna Stansbury, MIT Sloan; Robert B. 
           Williams, Guilford College; Paula Voes, Rutgers 
           University; Emily Hoffman, Western Michigan University.
         Michael Reich, University of California, Berkeley; Rob 
           Wassmer, California State University, Sacramento; Yana 
           Rodgers, Rutgers University; Barry Bluestone, 
           Northeastern University; Josh Bivens, Economic Policy 
           Institute; John Schmitt, Economic Policy Institute; 
           Juliet Schor, Boston College; Eileen Appelbaum, Center 
           for Economic and Policy Research; Robert G. Williams, 
           Guilford College; Barry Bosworth, Brookings 
           Institution; Douglas Kruse, Rutgers Professor; Michael 
           Ash, University of Massachusetts Amherst; Richard 
           Murnane, Harvard University; Ben Zipperer, Economic 
           Policy Institute; Janet Knoedler, Bucknell University; 
           Daron Acemoglu, MIT; Robert Murphy, Boston College; 
           Michael Garvey, Washington Center of Equitable Growth; 
           David Cutler, Harvard University.
         Lisa Lynch, Brandeis University; Robert Pollin, 
           University of Massachusetts Amherst; Ebru Kongar, 
           Dickinson College; Sheldon Danziger, University of 
           Michigan; Teresa Ghilarducci, The New School; Bernard 
           E. Anderson, University of Pennsylvania; Peter 
           Matthews, Middlebury College; Adam Hersh, Economic 
           Policy Institute; Alan Aja, Brooklyn College (City 
           University of New York); Clair Brown, University of 
           California-Berkeley; Younghwan Song, Union College; 
           Aaron Sojourner, Upjohn Institute for Employment 
           Research; Krishna Dasaratha, Boston University; Larry 
           Chimerine, Chase Econometrics and the Wefa Group 
           (formerly); Arindrajit Dube, UMass Amherst; Valerie 
           Wilson, Economic Policy Institute; Carolyn Craven, 
           Middlebury College; Chris Tilly, UCLA; John Shea, 
           University of Maryland at College Park; Sarah Wilhelm, 
           Western Governors University.
         Xavier Jaravel, London School of Economics; Jacob 
           Robbins, University of Illinois at Chicago; Gernot 
           Wagner, Columbia Business School; Jonathan Colmer, 
           University of Virginia; Christopher Ruhm, University of 
           Virginia; Joya Misra, University of Massachusetts, 
           Amherst; Peter Schaeffer, West Virginia University; 
           Nina Banks, Bucknell University; David Weil, Brandeis 
           University; Gail Blattenberger, University of Utah; 
           Dania Francis, University of Massachusetts Boston; 
           Jeannette Wicks-Lim, University of Massachusetts, 
           Amherst; Emmanuel Saez, University of California; 
           Manuel Pastor, University of Southern California; Kate 
           Bahn, Washington Center for Equitable Growth; Sean 
           Reardon, Stanford University; Randy Albelda, University 
           of Massachusetts Boston; Tim Smeeding, University of 
           Wisconsin; Kenneth Peres, Communications Workers of 
           America (retired); David Alexander, Illinois Action for 
           Children.
         Monique Morrissey, Economic Policy Institute; Trevon 
           Logan, The Ohio State University; Geoffrey Schneider, 
           Bucknell University; Kimberly Clausing, UCLA School of 
           Law; Paulette Olson, Wright State University; Henry 
           Levin, Emeritus Professor at Stanford and Columbia; 
           Frank Stricker, CSU Dominguez Hills; Laura Giuliano, UC 
           Santa Cruz; Christopher Magee, Bucknell University; 
           Gabriel Mathy, American University; Laura Tyson, UC 
           Berkeley; Robert M. Anderson, UC Berkeley; James 
           Stewart, New School; Siavash Radpour, The New School 
           for Social Research, Schwartz Center for Economic 
           Policy Analysis.
         Ignacio Gonzalez, American University; Esteban J. 
           Quinones, Mathematica; Sylvia Allegretto, Economic 
           Policy Institute; Rene Rosenbaum; Roger Myerson, 
           University of Chicago; Paul Leigh, UC Davis; Lawrence 
           Mishel, Economic Policy Institute Robert Scott Economic 
           Policy Institute; Peter Eaton, UMKC; Candace Howes, 
           Connecticut College; Gerald Epstein, University of 
           Massachusetts Amherst; William Darity Jr., Duke 
           University; Eva Paus, Mount Holyoke College.

  Ms. PELOSI. Another point I want to make is I hear them saying that 
this is going to be such a thing about the audits. Despite the 
Republicans' desperate falsehoods, this bill does not increase IRS 
audits on America's working families. The IRS commissioner himself, a 
Republican appointed by Donald Trump, said these resources are 
absolutely not about increasing audit scrutiny on small businesses or 
middle-income Americans.
  So there you have it.
  So I would just say at the end of all of this, I ask these questions:
  When you hear about what this means to America's working families, 
how can you vote against lowering healthcare costs and prescription 
drugs costs for seniors and underserved communities as we continue to 
fight inflation?
  How can you vote with pharma at the cost of America's seniors and 
America's working families?
  How can you vote against protecting future generations from rising 
sea levels, raging wildfires, and crippling drought?
  How can you vote against reducing the deficit and asking 
billionaires, companies, and wealthy avoiders of taxes to pay their 
fair share?
  I am not talking about people who work the system. I am talking about 
people who illegally do not pay their taxes.
  So, Madam Speaker, every Member of this body is confronted with a 
choice. We either put people over politics or politics over people. For 
centuries, Members of Congress have stood exactly where we stand facing 
the exact same decision as they constructed the pillars of America's 
economy and safety: Social Security, Medicare, Medicaid, and the 
Affordable Care Act, things that the Republicans opposed all along the 
way.
  This bill, the Inflation Reduction Act, a package for the people, 
increases the leverage of the public interest over special interests 
and expands the promise of health and financial security now and for 
generations to come.
  Madam Speaker, I urge every Member to put aside their 
misunderstanding of this and vote for the Inflation Reduction Act as we 
send this historic legislation to President Biden's desk for signature 
this evening for him to sign into law.
  Madam Speaker, under the visionary leadership of President Biden, 
Democrats have forged historic progress for America's families.
  First, we enacted our life-saving American Rescue Plan: to propel us 
out of the pandemic by putting money in pockets, vaccines in arms, 
children safely back to school and people safely back to work.
  Next, we secured a transformative Infrastructure package: to create 
good-paying union jobs rebuilding our nation--in a way that strengthens 
our middle class, advances justice and protects the environment.
  This week, President Biden signed the CHIPS and Science Act, which 
declares our economic independence, strengthens our national security 
and enhances our families' financial future. We also honored the 
valiant service of our heroic veterans with the PACT Act.
  And today, we proudly take another giant step in our momentous 
agenda.
  Our Inflation Reduction Act is a robust cost-cutting package that 
meets this moment: ensuring that our families thrive and that our 
planet survives.

[[Page H7699]]

  



                    HEALTH CARE: PRESCRIPTION DRUGS

  This landmark legislation, which we send to the President's desk 
today, is a resounding victory for America's families--starting at the 
kitchen table.
  Here's what the Inflation Reduction Act means to you in terms of 
health care.
  If you are one of Medicare's 64 million enrollees, this bill will 
bring down your out-of-pocket costs for prescription drugs.
  We do so by empowering the HHS Secretary to negotiate for lower drug 
prices--a long-standing House Democratic priority.
  We do so by capping your out-of-pocket prescription drug costs at 
$2,000, so you will not pay one cent more for life-saving medication. 
This includes a $35 per month cap on insulin co-pays.
  And we do so by banning drug manufactures from raising prices faster 
than inflation, protecting you against predatory price hikes.
  Make no mistake: these provisions will strike a big blow to Big 
Pharma, while giving families more breathing room in their budgets.


                       HEALTH CARE: ACA SUBSIDIES

  At the same time, the Inflation Reduction Act also locks in lower 
premiums that Democrats secured in our Rescue package.
  If you are one of 13 million working Americans who has affordable 
coverage under the ACA: you'll be able to keep your insurance--and 
you'll continue to save $800 per year on your premium.
  Together, lowering the costs of prescription drugs and health 
premiums are vital strides in the fight for economic justice.
  Indeed, these benefits will flow heavily to those most in need: 
vulnerable seniors, underserved communities and communities of color.
  And in doing so, we honor the call of Dr. King, who said: ``Of all 
the forms of inequality, injustice in health is the most shocking and 
inhuman because it often results in physical death.''


                              IRA OVERVIEW

  The Inflation Reduction Act is a plan divided into three parts:
  first--as I just discussed--lowering the cost of prescription drugs 
and health care premiums
  second, delivering the most consequential climate action in history
  and third, dramatically reducing the deficit.
  At the same time, this legislation advances President Biden and 
Democrats' relentless commitment to putting justice first.
  And all of these crucial investments are fully paid-for by making 
sure the ultra-rich and biggest corporations pay their fair share.
  To my House Democratic colleagues, make no mistake: this important 
progress rests on the foundation that we built--with the Build Back 
Better Act last fall and in the last Congress.
  So let us salute the tenacious and tireless leadership of our Chairs, 
Members and staff, who helped make this joyous day possible.


                             CLIMATE ACTION

  The climate provisions in the Inflation Reduction Act will also make 
a meaningful difference for America's working families.
  Our bill cuts carbon pollution by 40 percent by 2030--and powers our 
nation toward a clean energy future.
  It's about health: clean air and clean water for our children
  It's about jobs: 9 million good-paying union jobs
  It's about security: preventing conflict over resources and habitat
  And it's about values: passing on a healthy planet to future 
generations
  As Pope Francis said earlier this summer, our planet has reached a 
``breaking point'' in the fight against the climate crisis. As extreme 
weather continues to wreak havoc across our country and around the 
world, it is clear the costs of inaction far outweigh the costs of 
action.
  This bill saves the planet, while keeping more money in your pockets.
  For working families: you'll save an average of $1000 per year on 
your energy bills by the end of the decade.
  For our farmers: this bill supports you in cultivating a diverse, 
climate-friendly agriculture system--which will help address food 
inflation.
  For underserved communities: this bill invests $60 billion in 
environmental justice initiatives to ensure everyone will share in the 
benefits of our transition to a cleaner, greener economy.
  In doing so, we ensure we not only mitigate a far more catastrophic 
future--but build a safe, sustainable planet for our children and 
grandchildren.


                           DEFICIT REDUCTION

  America's working families will also greatly benefit from the 
Inflation Reduction Act's historic investment to get our fiscal house 
in order.
  This bill pays down the deficit by $300 billion over the first 
decade.
  And nonpartisan analysis shows that it will reduce the deficit by 
nearly $2 trillion over two decades decade.
  Here's what that means to you: slashing the deficit will drive down 
inflation in the long-term.
  This builds on the progress Democrats have already forged: with our 
nation on track to slash the deficit by a record $1.5 trillion this 
year alone.
  Meanwhile, Democrats' record of fiscal responsibility stands in sharp 
contrast to the Trump Tax Scam, which ballooned the deficit by nearly 
$2 trillion and left working families behind.


                        PAYING THEIR FAIR SHARE

  These monumental investments for our families--in health care, 
climate action and deficit reduction--are fully paid for by ensuring 
the biggest corporations and the wealthiest few pay their fair share.
  Right now, families are being harmed by corporate profiteering with 
impunity: billion-dollar companies paying little-to-no taxes, while 
jacking up prices and refusing to fairly pay their workers.
  That's why we're closing loopholes by implementing: a 15 percent 
corporate minimum tax only on billion-dolar companies; and a 1 percent 
tax on stock buybacks, which enrich executives and shareholders.
  We're also taking on ultra-rich tax cheats, ensuring they can't 
continue to dodge what they owe to our nation: an estimated $160 
billion each year.
  Let me be clear: this bill does not raise taxes on anyone making less 
than $400,000 a year, honoring the President's promise to America's 
families.
  And despite Republicans' desperate falsehoods, this bill does not 
increase IRS audits on America's working families.
  Treasury Secretary Yellen has directed the IRS Commissioner not to 
increase the audit rate for households making under $400,000 a year.
  And the IRS Commissioner himself--a Republican appointed by Trump--
said: ``These resources are absolutely not about increasing audit 
scrutiny on small businesses or middle-income Americans.''


                           FIGHTING INFLATION

  The provisions in this legislation are a powerful force to fight 
inflation.
  It is encouraging that prices at the pump have fallen for nearly 
sixty days straight--and that the latest data shows 0 percent inflation 
in July.
  But Democrats know that higher prices still weigh heavy on America's 
families. And now, we take another strong step to further drive down 
kitchen table costs.


                            OUTSIDE SUPPORT

  But don't take my word for it.
  Take the word of 126 economists--including seven Nobel Prize winners, 
three former chairs of the Council of Economic Advisers and two farmer 
Treasury Secretaries.
  In a letter urging passage of this bill, they wrote: ``These 
investments will fight inflation and lower costs for American 
families--while setting the stage for strong, stable, and broadly-
shared long-term economic growth.''


                             PUBLIC SUPPORT

  And proudly, the American people are with us:
  Three-quarters support our action to lower prescription drug costs,
  Two-thirds support our clean energy provisions,
  60 percent support billion-dollar companies paying their fair share.


                             GOP OPPOSITION

  But sadly, our colleagues across the aisle clearly prefer to keep 
costs for families sky-high.
  Senate Republicans unanimously voted against this bill. And now, 
House Republican Leaders are whipping against it.
  Their opposition is unconscionable.
  How could anyone vote against lowering health care costs on seniors 
and underserved communities as we continue to fight inflation?
  How could anyone vote against protecting future generations from 
rising sea levels, raging wildfires and crippling droughts?
  How could anyone vote against reducing the deficit or asking 
billiondollar companies and wealthy tax cheats to pay their fair share?


                      CLOSE: PEOPLE OVER POLITICS

  Madam Speaker, today, every Member of this body will be confronted 
with a basic choice. Will you put People Over Politics--or Politics 
Over People?
  For centuries, Members of Congress have stood exactly where we stand 
now, facing this exact same decision, as they constructed the pillars 
of the American economy and society. Social

[[Page H7700]]

Security. Medicare and Medicaid. The Affordable Care Act.
  Today, the Congress carries forward this all-American tradition.
  The Inflation Reduction Act is a package For The People:
  Increasing the leverage of the public interest over the special 
interest,
  And expanding the promise of health and financial security, now and 
for generations to come.
  So I urge every Member to put aside partisan difference--put People 
Over Politics--and vote YES on the Inflation Reduction Act, as we send 
this historic legislation to President Biden's desk for his signature.
  Mr. NADLER. Madam Speaker, today, I rise in strong support of the 
Inflation Reduction Act--landmark legislation that will have a lasting 
impact on our planet and help lower costs for Americans in New York 
City and across our country. From lowering prescription drug prices and 
health care costs for working families to including the most 
significant climate investment in our nation's history, the Inflation 
Reduction Act includes policies I have long fought for.
  With this legislation, our nation can finally rise to the seriousness 
of the moment in our fight against climate change by making the large-
scale investments needed to reduce greenhouse gas emissions by 40 
percent by 2030, lower energy costs for families, and create millions 
of good-paying clean energy jobs across our country.
  I am thrilled that with this legislation, our government will finally 
be able to negotiate the prices of some of our nation's costliest 
prescription drugs--drugs that have been on the market for years and 
reap billions of dollars in sales from Medicare alone. I am proud that 
the Inflation Reduction Act will bring down health care costs for over 
3.7 million New Yorkers and will result in enormous savings for 
taxpayers.
  With the passage of this bill, Democrats are showing American 
families that our federal government can deliver for the people, not 
just special corporate interests.
  I look forward to voting to pass this historic legislation.
  Mr. DAVID Scott of Georgia. Madam Speaker, the Inflation Reduction 
Act of 2022 before us today makes historic investments in climate 
change mitigation, our critical forestry and conservation programs, 
rural communities, and energy and biofuels infrastructure.
  This package makes important investments in our oversubscribed farm 
bill conservation programs. By expanding participation in these 
programs and providing increased technical assistance funding, farmers 
will more readily be able to employ proven conservation practices on 
their land, reduce greenhouse gas emissions, and sequester carbon. I 
have always believed that agriculture should be the tip of the spear in 
addressing the harmful effects of climate change. This legislation 
helps make that a reality.
  My colleagues may complain about the steps we had to take to ensure 
this additional funding for our farm bill conservation programs, I 
would note that our colleagues on the other side have similarly 
extended the authorization of farm bill authorizations, but in those 
cases, it was to cut funding from them. In this exercise, we are 
including additional funding, which will be beneficial as we look to 
writing the 2023 Farm Bill.
  Major investments in forestry will also help to combat climate 
change, reduce risk of catastrophic wildfire, and ensure that our 
public and private lands have the tools they need to continue to serve 
as our largest carbon sinks. In addition to the carbon benefits, this 
bill helps restore forest ecosystems, improve watershed health, and 
enhance wildlife habitat by providing much needed funding. 
Additionally, the forestry provisions of the bill will help bring rural 
prosperity to many parts of our Nation by ensuring that we are 
developing new, innovative, wood products, and by making sure that 
underserved communities can benefit from emerging climate mitigation 
markets. This bill makes sure that urban communities have access to 
forestry programs by providing needed funding for Urban and Community 
Forestry. Expanding the tree canopy in urban areas is one of the 
cheapest and most effective ways to address temperature impacts and air 
quality issues, and I'm sorry some of my colleagues don't recognize 
that.
  The Inflation Reduction Act's investments in rural communities, 
energy, and biofuels will help lower energy bills, increase the 
efficiency of energy systems, and provide opportunities for farmers and 
small business owners to employ emission reducing technology in their 
operations. Increasing energy efficiency is good for their bottom lines 
and good for the climate. This legislation also provides significant 
support for rural electric cooperatives as they transition to renewable 
and zero emission energy systems, and it also increases access to clean 
biofuels across the nation.
  This bill provides expedited relief to direct and guaranteed farm 
loan borrowers at risk of losing their farming operations. It also 
allows USDA to help farmers and ranchers who have suffered 
discrimination in Farm Service Agency farm loan programs. It requires 
USDA to use one or more nongovernmental entities to help provide this 
assistance.
  Lastly, it builds upon the American Rescue Plan efforts to increase 
access to capital and land for our beginning and underserved producers 
by expanding access to technical assistance, financial training, 
cooperative development, and assistance to address heirs' property 
issues. And part of this effort includes bolstering the capacity at our 
1890 and 1994 Land Grant, Insular Area, and other Minority-Serving 
Institutions in the areas of research, education and extension.
  I want to thank the Members of the Agriculture Committee for their 
hard work on this legislation. And I also want to thank the Agriculture 
Committee staff who have dedicated many hours over the last year to 
helping see this legislation through to its passage today.
  Mrs. CAROLYN B. MALONEY of New York. Madam Speaker, I want to 
highlight the long-overdue reforms contained in this legislation to 
make lifesaving medicine affordable for the millions of Medicare 
beneficiaries in this country.
  First, it will cap copayments for insulin products at $35 per month. 
My Committee's investigation found that, since the 1990s, insulin 
manufacturers have been raising the price of this life-saving medicine, 
despite no improvements to the drug, while making record profits. This 
price gouging has harmed Americans, and capping out-of-pocket costs is 
an important step to reducing insulin costs for seniors and people with 
disabilities.
  The Inflation Reduction Act is also an incredible step forward in our 
efforts to protect Americans from being overburdened with high out-of-
pocket costs and healthcare-related expenses. For the first time, it 
would limit a beneficiary's out-of-pocket costs for prescription drugs 
covered by Medicare Part D to $2,000 a year. My Committee's 
investigation found that drug companies' price increases have imposed 
thousands of dollars in annual out-of-pocket costs on patients, 
especially for drugs that treat cancer or chronic conditions. This 
annual cap will provide much-needed financial protection, especially 
for the millions of beneficiaries who take high price drugs for cancer, 
rare diseases, or chronic conditions.
  Additionally, the Inflation Reduction Act will make health insurance 
coverage more affordable for millions of Americans by extending key 
Affordable Care Act (ACA) tax credits through 2025, building on the 
important progress made by the American Rescue Plan signed into law 
last March. By providing tax credits for millions of consumers 
purchasing coverage through an ACA marketplace, the American Rescue 
Plan expanded access to health insurance and made it significantly more 
affordable.
  Since passage of the American Rescue Plan, four out of five consumers 
were able to find an ACA marketplace plan for $10 or less per month. 
These savings allowed nearly 6 million new consumers to sign up for 
marketplace coverage during the first year of the Biden-Harris 
Administration. This year, a record 14.5 million consumers have signed 
up for marketplace coverage, and the national uninsured rate recently 
reached a record low of 8.0 percent. The Inflation Reduction Act 
extends these critical benefits for millions of Americans, and 
continues our work to ensure that all people in this country have 
access to health insurance coverage.
  As Chairwoman, I was also proud to include $50 million dollars in the 
Inflation Reduction Act to ensure that the economic and environmental 
benefits of funding across the Inflation Reduction Act are spread 
equitably. For decades, low-income communities and communities of color 
have suffered from chronic underinvestment while being forced to suffer 
the most severe health and economic impacts of pollution and climate 
change.
  We won't stand for that any longer. The Inflation Reduction Act will 
lower costs, create better-paying jobs, and build healthier, more 
sustainable communities. With my Committee's oversight funding 
included, we can make sure these benefits are being spread fairly and 
that clean energy investments support environmental justice communities 
that need them the most.
  Finally, my Committee worked to include almost a billion dollars to 
support for the deployment of emerging sustainable technologies to 
reduce emissions while also saving taxpayer dollars. This good 
government provision will support innovation to drive down the cost of 
clean energy solutions, which is better for consumers and better for 
our children's future.
  This is all accomplished alongside inflation-fighting measures that 
will cut the nation's deficit by a historic $300 billion without 
raising taxes on small businesses or on a single person or family in 
the middle class. The Inflation Reduction Act closes loopholes that 
have allowed billionaire corporations to avoid paying their minimum 
fair share of income tax.

[[Page H7701]]

Thanks to this transformative legislation and today's historic vote, 
those days are behind us, and better days of a more fair and prosperous 
nation are ahead. It is an honor to send this legislation to the 
President's desk.
  Ms. DeLAURO. Madam Speaker, I rise today in strong support of H.R. 
5376, the Inflation Reduction Act. For years, Americans have faced 
rising costs at grocery stores, pharmacies, and in recent months, at 
the gas pump. Today, we will send this legislation to the President's 
desk to be signed into law so we can provide necessary relief to 
hardworking people across the country.
  The Inflation Reduction Act takes historic steps to reduce the 
deficit and fight inflation, invest in domestic energy production and 
manufacturing, and tackle the climate crisis by reducing carbon 
emissions by roughly 40 percent by 2030. The bill will also lower 
prescription drug and health care costs by finally allowing Medicare to 
negotiate prescription drug prices and extending the expanded 
Affordable Care Act program for three years.
  Notably, this legislation makes sure that the biggest corporations 
and billionaires pay taxes. It establishes a 15 percent corporate 
minimum tax and invests in Internal Revenue Service tax enforcement to 
ensure that the biggest corporations, the ultra-wealthy, and rich tax 
cheats pay their fair share. Large corporations have been using 
inflation as an excuse to abuse their market power, jacking up prices 
for American consumers at the grocery store, the pharmacy, and at the 
gas pump. This law puts taxpayer dollars back into the pockets of 
working families.
  My vote today comes with a promise to my constituents in Connecticut 
and to the American people--I will continue the fight for common sense, 
proven solutions like the Child Tax Credit in the days and weeks to 
come. As I have said before, as American families face rising costs, 
the expanded Child Tax Credit is one of our best tools to help them 
face these challenges. We still have so much work to do to address the 
problems being faced today by working families.
  Today is an important step forward, and I am proud to cast my vote in 
support of this critical legislation.
  Mr. HILL. Madam Speaker, I rise today in opposition of what I call 
the Inflation ``Production'' Act.
  There are obvious problems of increasing taxes in a recession, 
expanding Obamacare, innovation killing price controls on drugs, and 
its attacks on American energy.
  Hard working families, farmers, and small business owners in central 
Arkansas are going to bear the brunt of citizens being audited at the 
highest rates due to more than doubling the size of the IRS and it's 
increase in funding.
  What do we think the IRS is going to do with this increase in staff 
and $45 billion in new enforcement funding?
  No agency needs six times its current funding to answer phone calls 
and improve customer service.
  I have seen claims that as long as you don't cheat on your taxes then 
you have nothing to worry about.
  Clearly, they have never faced the harassment and excruciating 
process of an IRS audit.
  We must defeat this legislation.
  Mr. DANNY K. DAVIS of Illinois. Madam Speaker, I ran for Congress to 
help people in Chicago, in Illinois, and across the country. The 
Inflation Reduction Act represents a transformative investment in 
families, workers, businesses, and the planet that will improve health 
and well-being, advance economic and environmental justice, 
meaningfully address climate change, and grow our economy while asking 
the wealthiest and most secure to pay their fair share.
  As a member of the Ways and Means Committee, I am deeply honored to 
have played an active role in advancing these policies that improve the 
health of Americans, workers, our economy, and the environment. The 
pandemic has harmed tens of millions of Americans--disproportionately 
hurting African Americans and other communities of color, women, 
seniors, and children. This bill meets immediate needs for lower costs 
for health care, medications, and energy as well as long-term needs for 
good-paying jobs, a healthy environment, a fairer tax system, and 
deficit and inflation reduction.
  As a former health care professional, I am proud to vote for this 
bill that would achieve several important goals in healthcare. The 
Secretary of Health and Human Services (HHS) would have the power to 
negotiate certain high-cost prescription drugs for seniors and people 
with disabilities that are Medicare beneficiaries. It would enhance 
premium tax credits, subsidies for people who buy insurance on the 
Affordable Care Act marketplaces, for three additional years. This is 
to extend the enacted legislative measure by Congress and President 
Biden last year to help people during the COVID-19 pandemic. Medicare 
recipients would not have to pay more than $35 per month of their out-
of-pocket costs for insulin. Drug companies will have to pay a rebate 
to Medicare if their prices increase faster than inflation, and place 
caps on Medicare Part D out-of-pocket drug purchases at $2,000 yearly. 
There will be no copayments for vaccines in Medicare Part D, Medicaid 
and the Children's Health Insurance Program (CHIP). Each of these 
health provisions directly helps people spend less of their money on 
healthcare costs and slows the price increases of medicines, giving 
Chicagoans, Illinoisans, and Americans extra money to meet their needs 
and improve their well-being.
  As the representative of communities harmed by high energy costs and 
pollution, I am proud to vote for this bill that will save the average 
American household hundreds in energy bills, reduce emissions by 40 
percent by 2030, generate enormous public health benefits via reduced 
air pollution, and grow our clean energy economy by spurring 9 million 
jobs.
  I am pleased that this legislation includes my bill, the Low-Income 
Housing Renewable Energy Credit Act (LIHREC) of 2021, to provide a 
larger tax credit for those businesses investing in new wind and solar 
projects in low-to-moderate income (LMI) communities. I am confident 
that this provision will help the tax code advance environmental and 
economic justice by bringing the economic and environmental benefits of 
solar energy to low-income individuals and communities, spreading the 
benefits of clean and affordable energy to households like those that I 
represent that have far too often been neglected by clean energy 
providers. Current renewable tax benefits typically remain out of reach 
for low-income communities, which also experience greater power-
generated pollution. The new provision would provide an enhanced 
Investment Tax Credit to solar projects benefiting low-income 
residents, including multifamily housing, community solar homes, and 
individual low-income residential homeowners.
  Some of the leading companies in this sector have raised the need for 
additional guidance related to the use of the credit for projects 
benefiting low-income homeowners to ensure that the program within the 
reconciliation bill will provide environmental justice allocations in a 
manner that provide businesses sufficient certainty to make the 
necessary investments in LMI communities. The central concern is 
clarity that businesses offering rooftop solar to LMI homeowners will 
receive the credit allocation prior to engaging with potential 
customers so that businesses can honestly convey the expected energy 
costs. Critical to the success of this new program will be 
participation by those businesses providing residential rooftop solar.
  My intent in drafting the LIHREC Act, the basis for the provision 
included in the reconciliation bill, was to ensure that residential 
rooftop solar businesses would be in a position to leap into service of 
LMI communities when the bill is signed into law. As such, the 
legislation is designed to provide maximum flexibility to Treasury in 
designing the application and allocation process for the bonus 10 
percent credit. Specifically, the legislation is intended to allow 
residential rooftop providers to identify potential customers in 
qualifying census tracts and submit applications to serve these 
customers up-front, before these businesses have engaged these 
potential customers. My understanding is that these businesses will 
need to know if they have received a credit allocation before they can 
offer the benefits of rooftop solar to new customers in LMI areas to 
provide accurate pricing information to low-income customers. Without 
certainty in the availability of the credit allocation, low-income 
homeowners are at risk of entering deals with shifting costs or of not 
having the opportunities at all given the uncertainty for businesses. 
So today, I make clear my understanding that the negotiated text gives 
Treasury the necessary flexibility to award allocations up-front so 
that businesses can make new investments in LMI communities knowing 
that they will be in a position to claim the bonus credit.
  I also received questions from an insurance company in Illinois about 
whether companies that only prepare what is known as statutory 
accounting statements would be required to produce GAAP statements or a 
hybrid of GAAP. It is my understanding that the legislation provides 
that applicable financial statements required to be filed with state 
insurance regulators will be recognized as applicable financial 
statements for purposes of the new book minimum tax. State insurance 
regulators already are subject to a robust regulatory financial 
statement requirement to ensure the continued protection of insurance 
consumers. After enactment, I will work to convey this understanding to 
the executive branch.
  I am honored to vote for this once-in-a-generation legislation. I 
came to Congress to make this type of momentous change. I urge my 
colleagues to pass it.
  Mr. CUELLAR. Madam Speaker, I would like to clarify for any of my 
colleagues who might be concerned that these three offshore

[[Page H7702]]

lease sales provided through the Inflation Reduction Act are somehow 
being rushed through or will be conducted with insufficient 
administrative process. That is simply not the case.
  These sales were scheduled under the Obama Administration under the 
2017-2022 five-year plan. That Interior department subjected the plan 
to a large programmatic environmental impact statement. They then 
underwent a multi-sale EIS. These sales then also went through a 
supplemental EIS. Thus, the idea that any further process should be 
required is just not credible and that is why the bill requires them to 
occur by a date certain.
  It is in our national interest to do so as quickly as possible so 
that the energy crisis does not become even worse and so that the fuel 
and revenue these sales will generate can find their way into our 
economy sooner than later.
  Mrs. DINGELL. Madam Speaker, I rise in strong support of the 
Inflation Reduction Act we are considering today and would like to 
speak specifically to the inclusion of the Greenhouse Gas Reduction 
Fund, which is based on important legislation I authored to address the 
climate crisis.
  The Inflation Reduction Act appropriates $27 billion to the 
Environmental Protection Agency (EPA) to finance climate specific 
projects that will reduce carbon emissions, which will be dispensed 
through the Greenhouse Gas (GHG) Reduction Fund. The GHG Reduction Fund 
is the product of more than 13 years of legislative effort by numerous 
members of the House and Senate and provides resources to fulfill the 
vision and mission of this legislative effort to capitalize a national 
climate bank that will support a swift transition to an equitable, 
clean-energy economy,
  In the House, the GHG Reduction Fund is based on H.R. 806, the Clean 
Energy and Sustainability Accelerator Act. I introduced this important 
legislation to provide the maximum funding possible to and capitalize a 
single independent, non-profit national financing institution 
(``NNFI'')--the first ever national green bank--that would in turn make 
its financial and technical resources available to communities across 
the country. It is our hope, as the administration implements the GHG 
Reduction Fund, it will consider the benefits and structure of the 
Clean Energy and Sustainability Accelerator Act.
  It is our hope the Environmental Protection Agency would make awards 
through the GHG Reduction Fund to capitalize a single NNFI, as intended 
under the Clean Energy and Sustainability Accelerator Act, and for that 
NNFI to use that capitalization funding to leverage private investment 
in amounts several times greater than the initial public investment. 
Once capitalized, the bill requires the entity to make direct 
investments into qualified projects at the national, regional, state, 
and local levels and, importantly, to make indirect investments into 
such projects by providing financial and technical assistance to an 
open, inclusive, and ever-expanding network of state and local 
nonprofit financial institutions--including existing and newly 
established green banks and community development finance 
institutions--that are committed to making investments in the products 
that will compose the clean power platform on which the economy must 
run.
  The GHG Reduction Fund makes an historic investment into low income 
and disadvantaged communities as well, mandating that at least 40 
percent of the over $20 billion be used to benefit qualified projects 
and the financing entities that support qualified projects within these 
communities, but we expect that the full investment in these 
communities will be far larger through leverage and investments from 
the remainder of the Fund.
  The GHG Reduction Fund, and the American people, would benefit most 
and achieve its purpose most effectively through the capitalization of 
a single independent NNFI, as originally intended in the Clean Energy 
and Sustainability Accelerator Act. A single independent NNFI will not 
be limited by any jurisdictional boundary--no community is beyond its 
reach. Therefore, the NNFI approach could directly invest in qualified 
projects anywhere in the United States that would otherwise lack 
funding. In addition, the NNFI approach can indirectly invest in any 
community by providing the funding and technical assistance necessary 
to establish new financial institutions and further capitalize and 
strengthen existing ones. The NNFI would grow a diverse, open, and 
inclusive network of state and local green banks and other mission 
driven financing entities.
  Capitalizing a single independent NNFI at scale, through the GHG 
Reduction Fund, would also enable public investment to be leveraged 
more efficiently which, in turn, drives much greater private capital 
investment in qualified projects, whether at the national, regional, 
state, or local level. And the Inflation Reduction Act requires the 
entity to ``retain, manage, recycle, and monetize all repayments and 
other revenue'' generated using the capitalization grant. We count on 
EPA to assure that the NNFI will be subject to the appropriate 
regulations and requirements that would apply to similar non-profit 
institutions that have been capitalized with federal or nonfederal 
dollars. At the same time, the relationship between EPA and the single 
independent nonprofit national financing institution should be designed 
to preserve its operational flexibility and ability to respond quickly 
to market conditions to execute with the speed that the climate crisis 
demands.
  Finally, the Inflation Reduction Act sets a 180-day period for EPA to 
complete all these steps: establish the GHG Reduction Fund, issue a 
grant solicitation, award capitalization grants, and disburse the 
funds. These aggressive deadlines were established because the GHG 
Reduction Fund cannot achieve its purpose unless the full amount of 
funds appropriated to this program are put into use through a NNFI 
approach immediately. Disbursing all the funds within 180 days though a 
single independent NNFI, as originally intended under the Clean Energy 
and Sustainability Accelerator Act will ensure that we can 
expeditiously address the urgent threat of catastrophic climate change, 
in an equitable manner, on day 181. A swift disbursement of the maximum 
funding amount possible will allow the climate bank to leverage more 
private financing--thereby ensuring our public investment has a far 
reaching impact.
  The impacts of climate change have created an emergency situation 
that poses a substantial danger to the health and safety of the 
American public, and the award and disbursement of the maximum amount 
of funds appropriated to the GHG Reduction Fund cannot be delayed. We 
recognize that the timeline will require EPA, at every step in the 
grant process, to evaluate approaches that can reduce the amount of 
time that it would otherwise take to complete that step--and it is our 
intention that EPA will utilize all legally-authorized strategies that 
are necessary to ensure the full amount of the funding is disbursed on 
time.
  Mr. THOMPSON of California. Madam Speaker, I strongly support H.R. 
5376, the Inflation Reduction Act of 2022.
  I am particularly pleased that the legislation before the House 
includes major provisions of my GREEN Act, including incentives for a 
vast array of clean and renewable energy sources.
  This legislation represents the most sweeping and ambitious climate 
policy ever to pass the Congress.
  It reduces our dependence on fossil fuels while accelerating the 
development of solar, wind, and other renewable energy sources.
  And it incentivizes individuals to limit greenhouse gas emissions 
from their homes, their businesses, and their vehicles.
  I am also extremely supportive of the health care provisions in this 
bill.
  Allowing Medicare to negotiate the price of prescription drugs has 
been a priority for Democrats in Congress for decades--and this bill 
not only ensures that seniors don't go broke paying for their 
medicines, but also saves taxpayers hundreds of billions of dollars.
  Given the negotiations of the past 18 months, this bill could not 
accommodate every single priority or proposal.
  And I am hopeful that my colleagues will work with me moving forward 
to ensure that the corporate minimum tax--a policy I support--does not 
inadvertently burden companies, like some in my district, who suffered 
severe net operating losses in previous years due to natural disaster.
  This bill is a tremendous step forward for our country. It pays down 
our deficit, reduces the cost of prescription drugs, extends health 
insurance subsidies for low-income Americans and invests hundreds of 
billions of dollars in clean and renewable energy.
  I am proud to have helped author this legislation, and I strongly 
support its passage.
  Mr. WELCH. Madam Speaker, as many of my colleagues know, I have 
worked for years to protect patient access to pharmacies across this 
nation. It is the intent of the United States House that this 
legislation, and in particular, Section 1860D-14C(c). MANUFACTURER 
DISCOUNT PROGRAM shall operate in the same manner as the Medicare Part 
D Coverage Gap Discount Program found under 42 USC 1395w-114a. CMS 
shall implement this provision to operate in the same manner with 
respect to a pharmacy. In that way, this section shall not result in 
any reduction in pharmacy reimbursement or require or permit price 
concessions or other remuneration from the pharmacy. We will convey 
this intent to the Centers for Medicare & Medicaid Services as they 
develop the rules that will govern this discount program. I will 
continue to look for additional ways to help patients and to preserve 
and protect our pharmacies that are so essential to communities across 
Vermont and our country.
  Ms. BONAMICI. Madam Speaker, I rise today in support of a 
transformational piece of legislation, the Inflation Reduction Act.
  The Inflation Reduction Act's historic investments will reduce costs 
for families and individuals, expand access to affordable health

[[Page H7703]]

care, strengthen domestic energy production and manufacturing, and 
reduce the federal deficit. This plan will also reduce carbon emissions 
to address the climate crisis and move us toward a better, healthier, 
and more secure future for Oregonians and people across the country.
  The coronavirus (COVID-19) pandemic exacerbated longstanding economic 
inequities, and working families have been facing the consequences. 
Economic inflation caused by increased consumer demand, global supply 
chain disruptions, and Russia's unprovoked invasion of Ukraine have 
shifted global markets, affecting everyday costs. Higher prices are 
straining household budgets and depriving workers of the full benefits 
of our growing economy. The Inflation Reduction Act will lower costs 
for health care, prescription drugs, and consumer energy, and make 
robust investments in energy security and climate solutions, including 
for disadvantaged and rural communities.
  In the Pacific Northwest, climate change is not a distant threat; 
it's our current reality. The Inflation Reduction Act acknowledges the 
scale of the climate crisis by investing nearly $375 billion in a clean 
energy future. It will lower consumer energy costs with clean energy 
tax credits, and decarbonize every sector of the economy to reduce 40 
percent of U.S. carbon emissions by 2030. Importantly, the Inflation 
Reduction Act will invest $60 billion in environmental justice and 
climate resilient solutions through sustainable agriculture, coastal, 
home energy, and transportation priorities to bolster rural communities 
and individuals disproportionately affected by climate change. Through 
economy-wide investments in agriculture, coastal restoration, energy, 
manufacturing, and transportation, this pivotal legislation will help 
the U.S. combat climate change while creating new, good paying jobs and 
mitigating climate inequities.
  Everyone in the United States should have access to quality, 
affordable health care. To make health care more affordable, the 
Inflation Reduction Act will extend important health policies passed in 
the American Rescue Plan for an additional three years. These policies 
include eliminating the cap on subsidies for health insurance coverage 
under the Affordable Care Act, which will benefit up to four million 
Americans. Additionally, rising prescription drug costs are a burden 
for many Americans, particularly seniors. Too often, excessive drug 
prices force families to choose between their health and other 
necessities, like food and housing. That's unacceptable. The Inflation 
Reduction Act will reduce the price of prescription drugs by allowing 
Medicare to negotiate drug prices for certain medications, and will cap 
seniors' out-of-pocket costs to $2,000 a year. The bill also caps 
insulin costs at $35 per month for Medicare beneficiaries. The 
Inflation Reduction Act will stabilize Medicare Part D by holding 
annual premium growth to current levels, which will incentivize drug 
manufacturers and insurers to keep drug prices low.
  These historic investments will be paid for by making our tax code 
more progressive, rather than regressive. With the tax provisions in 
this bill, the very largest corporations, currently contributing as 
little as one percent in taxes, will pay a minimum rate rather than 
take advantage of loopholes. After the Republicans' 2017 tax bill was 
signed into law, corporations spent more than $1 trillion on stock 
buybacks in 2018. The Inflation Reduction Act will help correct the 
missed opportunities of the so-called Tax Cuts and Jobs Act by 
establishing a tax on stock buybacks. It will also strengthen the 
Internal Revenue Service to enforce existing tax laws, improve customer 
service, speed access to tax refunds, and reduce abuse of the tax code. 
Improving tax fairness will bolster domestic investments in our economy 
while also reducing the deficit.
  The Inflation Reduction Act makes tremendous progress, but it does 
not address all of the important priorities of the people of NW Oregon 
and across the country, including needed investments in workforce 
development and child care. I will continue working on those important 
priorities, but in the meantime, I look forward to making significant 
progress by working with my colleagues in Congress and partners in the 
Biden-Harris Administration to pass the Inflation Reduction Act.
  The SPEAKER pro tempore. All time for debate has expired.
  Pursuant to House Resolution 1316, the previous question is ordered.
  The question is on the motion by the gentleman from Kentucky (Mr. 
Yarmuth).
  The question was taken; and the Speaker pro tempore announced that 
the ayes appeared to have it.
  Mr. GUTHRIE. Madam Speaker, on that I demand the yeas and nays.
  The yeas and nays were ordered.
  The vote was taken by electronic device, and there were--yeas 220, 
nays 207, not voting 4, as follows:

                             [Roll No. 420]

                               YEAS--220

     Adams
     Aguilar
     Allred
     Auchincloss
     Axne
     Barragan
     Bass
     Beatty
     Bera
     Beyer
     Bishop (GA)
     Blumenauer
     Blunt Rochester
     Bonamici
     Bourdeaux
     Bowman
     Boyle, Brendan F.
     Brown (MD)
     Brown (OH)
     Brownley
     Bush
     Bustos
     Butterfield
     Carbajal
     Cardenas
     Carson
     Carter (LA)
     Cartwright
     Case
     Casten
     Castor (FL)
     Castro (TX)
     Cherfilus-McCormick
     Chu
     Cicilline
     Clark (MA)
     Clarke (NY)
     Cleaver
     Clyburn
     Cohen
     Connolly
     Cooper
     Correa
     Costa
     Courtney
     Craig
     Crist
     Crow
     Cuellar
     Davids (KS)
     Davis, Danny K.
     Dean
     DeFazio
     DeGette
     DeLauro
     DelBene
     Demings
     DeSaulnier
     Deutch
     Dingell
     Doggett
     Doyle, Michael F.
     Escobar
     Eshoo
     Espaillat
     Evans
     Fletcher
     Foster
     Frankel, Lois
     Gallego
     Garamendi
     Garcia (IL)
     Garcia (TX)
     Golden
     Gomez
     Gonzalez, Vicente
     Gottheimer
     Green, Al (TX)
     Grijalva
     Harder (CA)
     Hayes
     Higgins (NY)
     Himes
     Horsford
     Houlahan
     Hoyer
     Huffman
     Jackson Lee
     Jacobs (CA)
     Jayapal
     Jeffries
     Johnson (GA)
     Johnson (TX)
     Jones
     Kahele
     Kaptur
     Keating
     Kelly (IL)
     Khanna
     Kildee
     Kilmer
     Kim (NJ)
     Kind
     Kirkpatrick
     Krishnamoorthi
     Kuster
     Lamb
     Langevin
     Larsen (WA)
     Larson (CT)
     Lawrence
     Lawson (FL)
     Lee (CA)
     Lee (NV)
     Leger Fernandez
     Levin (CA)
     Levin (MI)
     Lieu
     Lofgren
     Lowenthal
     Luria
     Lynch
     Malinowski
     Maloney, Carolyn B.
     Maloney, Sean
     Manning
     Matsui
     McBath
     McCollum
     McEachin
     McGovern
     McNerney
     Meeks
     Meng
     Mfume
     Moore (WI)
     Morelle
     Moulton
     Mrvan
     Murphy (FL)
     Nadler
     Napolitano
     Neal
     Neguse
     Newman
     Norcross
     O'Halleran
     Ocasio-Cortez
     Omar
     Pallone
     Panetta
     Pappas
     Pascrell
     Payne
     Pelosi
     Perlmutter
     Peters
     Phillips
     Pingree
     Pocan
     Porter
     Pressley
     Price (NC)
     Quigley
     Raskin
     Rice (NY)
     Ross
     Roybal-Allard
     Ruiz
     Ruppersberger
     Rush
     Ryan
     Sanchez
     Sarbanes
     Scanlon
     Schakowsky
     Schiff
     Schneider
     Schrader
     Schrier
     Scott (VA)
     Scott, David
     Sewell
     Sherman
     Sherrill
     Sires
     Slotkin
     Smith (WA)
     Soto
     Spanberger
     Speier
     Stansbury
     Stanton
     Stevens
     Strickland
     Suozzi
     Swalwell
     Takano
     Thompson (CA)
     Thompson (MS)
     Titus
     Tlaib
     Tonko
     Torres (CA)
     Torres (NY)
     Trahan
     Trone
     Underwood
     Vargas
     Veasey
     Velazquez
     Wasserman Schultz
     Waters
     Watson Coleman
     Welch
     Wexton
     Wild
     Williams (GA)
     Wilson (FL)
     Yarmuth

                               NAYS--207

     Aderholt
     Allen
     Amodei
     Armstrong
     Arrington
     Babin
     Bacon
     Baird
     Balderson
     Banks
     Barr
     Bentz
     Bergman
     Bice (OK)
     Biggs
     Bilirakis
     Bishop (NC)
     Boebert
     Bost
     Brady
     Brooks
     Buchanan
     Buck
     Bucshon
     Budd
     Burchett
     Burgess
     Calvert
     Cammack
     Carey
     Carter (GA)
     Carter (TX)
     Cawthorn
     Chabot
     Cheney
     Cline
     Cloud
     Clyde
     Cole
     Comer
     Conway
     Crawford
     Crenshaw
     Curtis
     Davidson
     Davis, Rodney
     DesJarlais
     Diaz-Balart
     Donalds
     Duncan
     Dunn
     Ellzey
     Emmer
     Estes
     Fallon
     Feenstra
     Ferguson
     Finstad
     Fischbach
     Fitzgerald
     Fitzpatrick
     Fleischmann
     Flood
     Flores
     Foxx
     Franklin, C. Scott
     Fulcher
     Gaetz
     Garbarino
     Garcia (CA)
     Gibbs
     Gimenez
     Gohmert
     Gonzales, Tony
     Gonzalez (OH)
     Good (VA)
     Gooden (TX)
     Gosar
     Granger
     Graves (LA)
     Graves (MO)
     Green (TN)
     Greene (GA)
     Griffith
     Grothman
     Guest
     Guthrie
     Harris
     Harshbarger
     Hartzler
     Hern
     Herrell
     Herrera Beutler
     Hice (GA)
     Higgins (LA)
     Hill
     Hinson
     Hollingsworth
     Hudson
     Huizenga
     Issa
     Jackson
     Jacobs (NY)
     Johnson (LA)
     Johnson (OH)
     Johnson (SD)
     Jordan
     Joyce (OH)
     Joyce (PA)
     Katko
     Keller
     Kelly (MS)
     Kelly (PA)
     Kim (CA)
     Kinzinger
     Kustoff
     LaHood
     LaMalfa
     Lamborn
     Latta
     LaTurner
     Lesko
     Letlow
     Long
     Loudermilk
     Lucas
     Luetkemeyer
     Mace
     Malliotakis
     Mann
     Massie
     Mast
     McCarthy
     McCaul
     McClain
     McClintock
     McHenry
     McKinley
     Meijer
     Meuser
     Miller (IL)
     Miller (WV)
     Miller-Meeks
     Moolenaar
     Mooney
     Moore (AL)
     Moore (UT)
     Mullin
     Murphy (NC)
     Nehls
     Newhouse
     Norman
     Obernolte
     Owens
     Palazzo
     Palmer
     Perry
     Pfluger
     Posey
     Reschenthaler
     Rice (SC)
     Rodgers (WA)
     Rogers (KY)
     Rose
     Rosendale
     Rouzer
     Roy
     Rutherford
     Salazar
     Scalise
     Schweikert
     Scott, Austin
     Sessions
     Simpson
     Smith (MO)
     Smith (NE)
     Smith (NJ)
     Smucker
     Spartz
     Stauber
     Steel
     Stefanik
     Steil
     Steube
     Stewart
     Taylor
     Tenney
     Thompson (PA)
     Tiffany
     Timmons
     Turner
     Upton
     Valadao
     Van Drew
     Van Duyne
     Wagner
     Walberg
     Waltz
     Weber (TX)
     Webster (FL)
     Wenstrup

[[Page H7704]]


     Westerman
     Williams (TX)
     Wilson (SC)
     Wittman
     Womack
     Zeldin

                             NOT VOTING--4

     Carl
     Gallagher
     Pence
     Rogers (AL)

                              {time}  1738

  So the motion to concur was agreed to.
  The result of the vote was announced as above recorded.
  A motion to reconsider was laid on the table.
  Stated against:
  Mr. CARL. Madam Speaker, had I been present, I would have voted 
``nay'' on rollcall No. 420.
  Mr. ROGERS of Alabama. Madam Speaker, had I been present, I would 
have voted ``nay'' on rollcall No. 420.


                          PERSONAL EXPLANATION

  Mr. GALLAGHER. Madam Speaker, I am back home in Green Bay, Wisconsin, 
awaiting the birth of my second child and was unable to participate in 
rollcall numbers 418, 419, and 420. Had I been present, I would have 
voted ``nay'' on rollcall No. 418, ``nay'' on rollcall No. 419, and 
``nay'' on rollcall No. 420.


    Members Recorded Pursuant to House Resolution 8, 117th Congress

     Amodei (Keller)
     Axne (Wexton)
     Babin (Tenney)
     Bacon (Stauber)
     Baird (Mooney)
     Barr (Guthrie)
     Barragan (Blunt Rochester)
     Bass (Kuster)
     Bentz (Fitzgerald)
     Bera (Beyer)
     Bonamici (Beyer)
     Bost (Mooney)
     Brooks (Moore (AL))
     Brownley (Kuster)
     Buchanan (Franklin, C. Scott)
     Bucshon (Banks)
     Budd (Donalds)
     Bush (Bowman)
     Calvert (Valadao)
     Cardenas (Correa)
     Carter (TX) (Weber (TX))
     Cawthorn (Donalds)
     Cherfilus-McCormick (Takano)
     Cicilline (Foster)
     Cohen (Beyer)
     Comer (Guthrie)
     Connolly (Beyer)
     Conway (Valadao)
     Cooper (Blunt Rochester)
     Crawford (Fleischmann)
     Crist (Soto)
     Curtis (Stewart)
     DeFazio (Pallone)
     DeGette (Perlmutter)
     DeLauro (Courtney)
     DeSaulnier (Perlmutter)
     DesJarlais (Fleischmann)
     Deutch (Rice (NY))
     Diaz-Balart (Salazar)
     Doggett (Takano)
     Doyle, Michael F. (Bowman)
     Duncan (Johnson (LA))
     Dunn (Cammack)
     Escobar (Garcia (TX))
     Fallon (Johnson (LA))
     Flores (Pfluger)
     Frankel, Lois (Kuster)
     Gaetz (Johnson (LA))
     Garbarino (Fleischmann)
     Gibbs (Balderson)
     Gomez (Correa)
     Gonzales, Tony (Gimenez)
     Good (Donalds)
     Gooden (Weber (TX))
     Gosar
     (Reschenthaler)
     Gottheimer (Neguse)
     Granger (Weber (TX))
     Graves (MO) (Guthrie)
     Green (TN) (Fleischmann)
     Harder (CA) (Beyer)
     Harris (Mooney)
     Hartzler (Tenney)
     Herrell (Donalds)
     Herrera Beutler (Stewart)
     Huffman (Beyer)
     Jackson (Burgess)
     Jacobs (NY) (Fleischmann)
     Johnson (GA) (Pallone)
     Johnson (SD)
     (Reschenthaler)
     Johnson (TX) (Jeffries)
     Joyce (PA) (Keller)
     Kahele (Correa)
     Keating (Pappas)
     Kelly (IL) (Blunt Rochester)
     Kilmer (Strickland)
     Kim (CA) (Mooney)
     Kinzinger (Gonzalez (OH))
     Kirkpatrick (Pallone)
     Krishnamoorthi (Neguse)
     LaHood
     (Reschenthaler)
     LaMalfa (Fleischmann)
     Lamborn (Fleischmann)
     Langevin (Lynch)
     Lawrence (Stevens)
     Lawson (FL) (Soto)
     Leger Fernandez (Correa)
     Lesko (Fleischmann)
     Letlow (Tenney)
     Levin (MI) (Correa)
     Lieu (Takano)
     Lucas (Cammack)
     Luetkemeyer (Weber (TX))
     Mace (Mooney)
     Manning (Wexton)
     Matsui (Eshoo)
     McBath (Blunt Rochester)
     McEachin (Beyer)
     McHenry (Cammack)
     McNerney (Correa)
     Meijer (Stauber)
     Meng (Kuster)
     Meuser (Weber (TX))
     Miller (WV) (Mooney)
     Miller-Meeks (Mooney)
     Moore (UT) (Stewart)
     Moore (WI) (Beyer)
     Moulton (Correa)
     Napolitano (Correa)
     Nehls
     (Reschenthaler)
     Norman (Donalds)
     Ocasio-Cortez (Bowman)
     Omar (Bowman)
     Owens (Donalds)
     Palazzo (Fleischmann)
     Panetta (Correa)
     Payne (Pallone)
     Phillips (Pappas)
     Pingree (Kuster)
     Porter (Wexton)
     Pressley (Bowman)
     Price (NC) (Butterfield)
     Rice (SC) (Gonzalez (OH))
     Rodgers (WA) (Bilirakis)
     Rogers (KY)
     (Reschenthaler)
     Roybal-Allard (Correa)
     Rush (Blunt Rochester)
     Sanchez (Perlmutter)
     Sarbanes
     (Ruppersberger)
     Schakowsky (Bowman)
     Sherman (Beyer)
     Sires (Pallone)
     Smith (NJ) (Kelly (PA))
     Smith (WA) (Courtney)
     Steel (Mooney)
     Steube (Franklin, C. Scott)
     Suozzi (Perlmutter)
     Swalwell (Stevens)
     Taylor (Burgess)
     Thompson (PA) (Keller)
     Thompson (CA) (Eshoo)
     Timmons (Donalds)
     Titus (Pallone)
     Tlaib (Dingell)
     Tonko (Pallone)
     Torres (NY) (Strickland)
     Trahan (Lynch)
     Trone (Beyer)
     Van Drew (Tenney)
     Van Duyne (Tenney)
     Vargas (Takano)
     Wagner (Guthrie)
     Walberg (Bergman)
     Waltz (Franklin, C. Scott)
     Watson Coleman (Bowman)
     Welch (Pallone)
     Wenstrup (Guthrie)
     Wilson (FL) (Soto)
     Wilson (SC) (Johnson (LA))


 =========================== NOTE =========================== 

  
  August 12, 2022, on page H7704, in the first column, the 
following appeared: Granger (Weber (TX)) Graves (Guthrie) Green 
(TN) (Fleischmann)
  
  The online version has been corrected to read: Granger (Weber 
(TX)) Graves (MO) (Guthrie) Green (TN) (Fleischmann)


 ========================= END NOTE ========================= 




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