    [117th Congress Public Law 169]
    [From the U.S. Government Publishing Office]

    [[Page 1817]]

    [[Page 136 STAT. 1818]]

    Public Law 117-169
    117th Congress

                                     An Act

       To provide for reconciliation pursuant to title II of S. Con. Res.
                   14. <<NOTE: Aug. 16, 2022 -  [H.R. 5376]>>

        Be it enacted by the Senate and House of Representatives of the
    United States of America in Congress assembled, <<NOTE: Appropriations
    authorizations.>>

                          TITLE I--COMMITTEE ON FINANCE

                          Subtitle A--Deficit Reduction

    SECTION 10001. AMENDMENT OF 1986 CODE.

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

                          PART 1--CORPORATE TAX REFORM

    SEC. 10101. CORPORATE ALTERNATIVE MINIMUM TAX.

        (a) Imposition of Tax.--
                (1) In general.--Paragraph (2) of section 55(b) <<NOTE: 26
            USC 55.>>  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) <<NOTE: Determinations.>>  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

    [[Page 136 STAT. 1819]]

                    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) <<NOTE: Effective date.>>  end after
                          December 31, 2021.
                        ``(B) <<NOTE: Time period.>>  Average annual
                    adjusted financial statement income test.--For purposes
                    of this subsection--
                              ``(i) a corporation meets the average annual
                          adjusted financial statement income test for a
                          taxable year if the average annual adjusted
                          financial statement income of such corporation
                          (determined without regard to section 56A(d)) for
                          the 3-taxable-year period ending with such taxable
                          year exceeds $1,000,000,000, and
                              ``(ii) in the case of a corporation described
                          in paragraph (2), such corporation meets the
                          average annual adjusted financial statement income
                          test for a taxable year if--
                                        ``(I) the corporation meets the
                                    requirements of clause (i) for such
                                    taxable year (determined after the
                                    application of paragraph (2)), and
                                        ``(II) the average annual adjusted
                                    financial statement income of such
                                    corporation (determined without regard
                                    to the application of paragraph (2) and
                                    without regard to section 56A(d)) for
                                    the 3-taxable-year-period ending with
                                    such taxable year is $100,000,000 or
                                    more.
                        ``(C) Exception.--Notwithstanding subparagraph (A),
                    the term `applicable corporation' shall not include any
                    corporation which otherwise meets the requirements of
                    subparagraph (A) if--
                              ``(i) such corporation--
                                        ``(I) has a change in ownership, or
                                        ``(II) has a specified number (to be
                                    determined by the Secretary and which
                                    shall, as appropriate, take into account
                                    the facts and circumstances of the
                                    taxpayer) of consecutive taxable years,
                                    including the most recent taxable year,
                                    in which the corporation does not meet
                                    the average annual adjusted financial
                                    statement income test of subparagraph
                                    (B), and
                              ``(ii) the Secretary determines that it would
                          not be appropriate to continue to treat such
                          corporation as an applicable corporation.
                    The preceding sentence shall not apply to any
                    corporation if, after the Secretary makes the
                    determination described in clause (ii), such corporation
                    meets the average annual adjusted financial statement
                    income test of subparagraph (B) for any taxable year
                    beginning after the first taxable year for which such
                    determination applies.
                        ``(D) <<NOTE: Definition.>>  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

    [[Page 136 STAT. 1820]]

                          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) <<NOTE: Applicability.>>
                                    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) <<NOTE: Applicability.>>  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) <<NOTE: Time period.>>  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) <<NOTE: Definition.>>  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,

    [[Page 136 STAT. 1821]]

                              ``(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) <<NOTE: Applicability.>>  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) <<NOTE: 26 USC 55.>>  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) <<NOTE: Definition.>>  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.

    [[Page 136 STAT. 1822]]

                    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) <<NOTE: 26 USC 860E.>>  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. <<NOTE: 26 USC 56A.>>  ADJUSTED FINANCIAL STATEMENT
                            INCOME.

        ``(a) <<NOTE: Definition.>>  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) <<NOTE: Definition.>>  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) <<NOTE: Applicability.>>  Consolidated
                    financial statements.--If the financial results of a
                    taxpayer are reported on the

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                    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 <<NOTE: Determination.>>  of any corporation
                    which is not included on a consolidated return with the
                    taxpayer, adjusted financial statement income of the
                    taxpayer with respect to such other corporation shall be
                    determined by only taking into account the dividends
                    received from such other corporation (reduced to the
                    extent provided by the Secretary in regulations or other
                    guidance) and other amounts which are includible in
                    gross income or deductible as a loss under this chapter
                    (other than amounts required to be included under
                    sections 951 and 951A or such other amounts as provided
                    by the Secretary) with respect to such other
                    corporation.
                        ``(D) Treatment of partnerships.--
                              ``(i) In general.--Except as provided by the
                          Secretary, if the taxpayer is a partner in a
                          partnership, adjusted financial statement income
                          of the taxpayer with respect to such partnership
                          shall be adjusted to only take into account the
                          taxpayer's distributive share of adjusted
                          financial statement income of such partnership.
                              ``(ii) Adjusted financial statement income of
                          partnerships.--For the purposes of this part, the
                          adjusted financial statement income of a
                          partnership shall be the partnership's net income
                          or loss set forth on such partnership's applicable
                          financial statement (adjusted under rules similar
                          to the rules of this section).
                ``(3) Adjustments to take into account certain items of
            foreign income.--
                        ``(A) In general.--If, for any taxable year, a
                    taxpayer is a United States shareholder of one or more
                    controlled foreign corporations, the adjusted financial
                    statement income of such taxpayer with respect to such
                    controlled foreign corporation (as determined under
                    paragraph (2)(C)) shall be adjusted to also take into
                    account such taxpayer's pro rata share (determined under
                    rules similar to the rules under section 951(a)(2)) of
                    items taken into account in computing the net income or
                    loss set forth on the applicable financial statement (as
                    adjusted under rules similar to those that apply in
                    determining adjusted financial statement income) of each
                    such controlled foreign corporation with respect to
                    which such taxpayer is a United States shareholder.
                        ``(B) Negative adjustments.--In any case in which
                    the adjustment determined under subparagraph (A) would
                    result in a negative adjustment for such taxable year--

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                              ``(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) <<NOTE: Determination. Applicability.>>  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 <<NOTE: Regulations. Guidelines.>>  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) <<NOTE: Applicability.>>  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

    [[Page 136 STAT. 1825]]

            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.-- <<NOTE: Determination.>> 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) <<NOTE: Regulations. Guidelines.>>  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) <<NOTE: Definition.>>  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) <<NOTE: Applicability.>>  reduced by
                    depreciation deductions allowed under section 167 with
                    respect to property to which section 168

    [[Page 136 STAT. 1826]]

                    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) <<NOTE: Definition.>>  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) <<NOTE: Effective date.>>  was acquired
                          after December 31, 2007, and before the date of
                          enactment of this section.
                ``(15) <<NOTE: Regulations. Guidelines. Determination.>>
            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) <<NOTE: Determinations.>>  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

    [[Page 136 STAT. 1827]]

                        ``(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) <<NOTE: Effective date.>>  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 <<NOTE: 26 USC 55 prec.>>  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, <<NOTE: 26 USC 59.>>  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) <<NOTE: Determination.>>  the aggregate
                          of the applicable corporation's pro rata share (as
                          determined under section 56A(c)(3)) of the amount
                          of income, war profits, and excess profits taxes
                          (within the meaning of section 901) imposed by any
                          foreign country or possession of the United States
                          which are--
                                        ``(I) taken into account on the
                                    applicable financial statement of each
                                    controlled foreign corporation with
                                    respect to which the applicable
                                    corporation is a United States
                                    shareholder, and
                                        ``(II) paid or accrued (for Federal
                                    income tax purposes) by each such
                                    controlled foreign corporation, or
                              ``(ii) the product of the amount of the
                          adjustment under section 56A(c)(3) and the
                          percentage specified in section 55(b)(2)(A)(i),
                          and
                        ``(B) in the case of an applicable corporation that
                    is a domestic corporation, the amount of income, war
                    profits, and excess profits taxes (within the meaning of
                    section

    [[Page 136 STAT. 1828]]

                    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) <<NOTE: Time period.>>  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) <<NOTE: 26 USC 38.>>  is amended to read as follows:
                        ``(E) <<NOTE: Applicability.>>  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) <<NOTE: 26 USC 11 note.>>  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:

    [[Page 136 STAT. 1829]]

    ``CHAPTER 37 <<NOTE: 26 USC 4501 prec.>> --REPURCHASE OF CORPORATE STOCK

    ``Sec. 4501. Repurchase of corporate stock.

    ``SEC. 4501. <<NOTE: 26 USC 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) <<NOTE: Definition.>>  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) <<NOTE: Definitions.>>  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) <<NOTE: Determination.>>  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) <<NOTE: Determinations.>>  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--

    [[Page 136 STAT. 1830]]

                        ``(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,

    [[Page 136 STAT. 1831]]

                ``(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) <<NOTE: 26
    USC 275.>>  is amended by inserting ``37,'' before ``41''.

        (c) Clerical Amendment.--The table of chapters for subtitle D
    is <<NOTE: 26 USC 4001 prec.>>  amended by inserting after the item
    relating to chapter 36 the following new item:

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

        (d) <<NOTE: 26 USC 4501 note.>>  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.--
                              (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.

    [[Page 136 STAT. 1832]]

                          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

    [[Page 136 STAT. 1833]]

            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. <<NOTE: 42 USC 1320f.>>  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) <<NOTE: Publication. Lists.>>  publish a list of
            selected drugs in accordance with section 1192;
                ``(2) <<NOTE: Contracts.>>  enter into agreements with
            manufacturers of selected drugs with respect to such period, in
            accordance with section 1193;

    [[Page 136 STAT. 1834]]

                ``(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.

    [[Page 136 STAT. 1835]]

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

    [[Page 136 STAT. 1836]]

                    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. <<NOTE: 42 USC 1320f-1.>>  SELECTION OF NEGOTIATION-
                              ELIGIBLE DRUGS AS SELECTED DRUGS.

        ``(a) <<NOTE: Deadlines. Publication. List. Time periods.>>  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) <<NOTE: Determination. Time periods.>>  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) <<NOTE: Applicability.>>  High spend part d drugs for
            2026 and 2027.--With respect to the initial price applicability
            year 2026 and with

    [[Page 136 STAT. 1837]]

            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) <<NOTE: Time period. Determination.>>  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) <<NOTE: Determinations. Time periods.>>  Negotiation-Eligible
    Drug.--
                ``(1) <<NOTE: Definition.>>  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).

    [[Page 136 STAT. 1838]]

                        ``(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) <<NOTE: Effective dates.>>
                          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.

    [[Page 136 STAT. 1839]]

                        ``(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) <<NOTE: Definition.>>  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) <<NOTE: Time periods.>>  Drug products.--A
                    drug--
                              ``(i) that is approved under section 505(c) of
                          the Federal Food, Drug, and Cosmetic Act and is
                          marketed pursuant to such approval;
                              ``(ii) for which, as of the selected drug
                          publication date with respect to such initial
                          price applicability year, at least 7 years will
                          have elapsed since the date of such approval; and
                              ``(iii) that is not the listed drug for any
                          drug that is approved and marketed under section
                          505(j) of such Act.
                        ``(B) Biological products.--A biological product--
                              ``(i) that is licensed under section 351(a) of
                          the Public Health Service Act and is marketed
                          under section 351 of such Act;
                              ``(ii) for which, as of the selected drug
                          publication date with respect to such initial
                          price applicability year, at least 11 years will
                          have elapsed since the date of such licensure; and
                              ``(iii) that is not the reference product for
                          any biological product that is licensed and
                          marketed under section 351(k) of such Act.
                ``(2) Treatment of authorized generic drugs.--
                        ``(A) In general.--In the case of a qualifying
                    single source drug described in subparagraph (A) or (B)
                    of paragraph (1) that is the listed drug (as such term
                    is used in section 505(j) of the Federal Food, Drug, and
                    Cosmetic Act) or a product described in clause (ii) of
                    subparagraph

    [[Page 136 STAT. 1840]]

                    (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) <<NOTE: Time periods. Determination.>>  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.

    [[Page 136 STAT. 1841]]

                        ``(C) Plasma-derived products.--A biological product
                    that is derived from human whole blood or plasma.
    ``SEC. 1193. <<NOTE: 42 USC 1320f-2.>>  MANUFACTURER AGREEMENTS.

        ``(a) <<NOTE: Deadline.>>  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) <<NOTE: Determination. Deadline.>>  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) <<NOTE: Deadline.>>  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

    [[Page 136 STAT. 1842]]

                    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) <<NOTE: Requirement.>>  information that the
                    Secretary requires to carry out the negotiation (or
                    renegotiation process) under this part; and
                ``(5) <<NOTE: Compliance. Requirements. Determination.>>
            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) <<NOTE: Determination.>>  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) <<NOTE: Requirement.>>  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.

    [[Page 136 STAT. 1843]]

    ``SEC. 1194. <<NOTE: 42 USC 1320f-3.>>  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) <<NOTE: Applicability. Deadlines.>>  Specific elements
            of negotiation process.--As part of the negotiation process
            under this section, with respect to a selected drug and the
            negotiation period with respect to the initial price
            applicability year with respect to such drug, the following
            shall apply:
                        ``(A) Submission of information.--Not later than
                    March 1 of the year of the selected drug publication
                    date, with respect to the selected drug, the
                    manufacturer of the drug shall submit to the Secretary,
                    in accordance with section 1193(a)(4), the information
                    described in such section.
                        ``(B) <<NOTE: Proposal.>>  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) <<NOTE: Proposal.>>  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.

    [[Page 136 STAT. 1844]]

                        ``(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--

    [[Page 136 STAT. 1845]]

                                        ``(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) <<NOTE: Time period.>>  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:

    [[Page 136 STAT. 1846]]

                              ``(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) <<NOTE: Time period.>>  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) <<NOTE: Time period.>>  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) <<NOTE: Time periods.>>  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:

    [[Page 136 STAT. 1847]]

                        ``(A) Research and development costs of the
                    manufacturer for the drug and the extent to which the
                    manufacturer has recouped research and development
                    costs.
                        ``(B) Current unit costs of production and
                    distribution of the drug.
                        ``(C) Prior Federal financial support for novel
                    therapeutic discovery and development with respect to
                    the drug.
                        ``(D) Data on pending and approved patent
                    applications, exclusivities recognized by the Food and
                    Drug Administration, and applications and approvals
                    under section 505(c) of the Federal Food, Drug, and
                    Cosmetic Act or section 351(a) of the Public Health
                    Service Act for the drug.
                        ``(E) Market data and revenue and sales volume data
                    for the drug in the United States.
                ``(2) Evidence about alternative treatments.--The following
            evidence, as available, with respect to such selected drug and
            therapeutic alternatives to such drug:
                        ``(A) The extent to which such drug represents a
                    therapeutic advance as compared to existing therapeutic
                    alternatives and the costs of such existing therapeutic
                    alternatives.
                        ``(B) Prescribing information approved by the Food
                    and Drug Administration for such drug and therapeutic
                    alternatives to such drug.
                        ``(C) Comparative effectiveness of such drug and
                    therapeutic alternatives to such drug, taking into
                    consideration the effects of such drug and therapeutic
                    alternatives to such drug on specific populations, such
                    as individuals with disabilities, the elderly, the
                    terminally ill, children, and other patient populations.
                        ``(D) The extent to which such drug and therapeutic
                    alternatives to such drug address unmet medical needs
                    for a condition for which treatment or diagnosis is not
                    addressed adequately by available therapy.
            In using evidence described in subparagraph (C), the Secretary
            shall not use evidence from comparative clinical effectiveness
            research in a manner that treats extending the life of an
            elderly, disabled, or terminally ill individual as of lower
            value than extending the life of an individual who is younger,
            nondisabled, or not terminally ill.

        ``(f) Renegotiation Process.--
                ``(1) <<NOTE: Effective date.>>  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

    [[Page 136 STAT. 1848]]

                              ``(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) <<NOTE: Determination.>>  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) <<NOTE: Effective date.>>  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) <<NOTE: Effective date.>>  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.

    [[Page 136 STAT. 1849]]

    ``SEC. 1195. <<NOTE: Deadlines. Time periods. 42 USC 1320f-4.>>
                              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) <<NOTE: Determination.>>  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. <<NOTE: 42 USC 1320f-5.>>  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.

    [[Page 136 STAT. 1850]]

                ``(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. <<NOTE: 42 USC 1320f-6.>>  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

    [[Page 136 STAT. 1851]]

            by such hospital, physician, or provider or supplier during such
            year;

    shall be subject to a civil monetary penalty equal to ten times the
    amount equal to the product of the number of units of such drug so
    furnished, dispensed, or administered during such year and the
    difference between the price for such drug made available for such year
    by such manufacturer with respect to such individual or hospital,
    physician, provider of services, or supplier and the maximum fair price
    for such drug for such year.
        ``(b) Violations of Certain Terms of Agreement.--Any manufacturer of
    a selected drug that has entered into an agreement under section 1193,
    with respect to a year during the price applicability period with
    respect to such drug, that is in violation of a requirement imposed
    pursuant to section 1193(a)(5), including the requirement to submit
    information pursuant to section 1193(a)(4), shall be subject to a civil
    monetary penalty equal to $1,000,000 for each day of such violation.
        ``(c) False Information.--Any manufacturer that knowingly provides
    false information pursuant to section 1196(a)(7) shall be subject to a
    civil monetary penalty equal to $100,000,000 for each item of such false
    information.
        ``(d) Application.--The provisions of section 1128A (other than
    subsections (a) and (b)) shall apply to a civil monetary penalty under
    this section in the same manner as such provisions apply to a penalty or
    proceeding under section 1128A(a).
    ``SEC. 1198. <<NOTE: 42 USC 1320f-7.>>  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--

    [[Page 136 STAT. 1852]]

                              (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) <<NOTE: Time periods.>>  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-

    [[Page 136 STAT. 1853]]

                          112(b)) is amended by adding at the end the
                          following new paragraph:
                ``(8) Provision of information related to maximum fair
            prices. <<NOTE: Contracts. Requirement.>> --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;

    [[Page 136 STAT. 1854]]

                              (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) <<NOTE: 42 USC 1320f note.>>  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) <<NOTE: 42 USC 1320f-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.--

    [[Page 136 STAT. 1855]]

                        ``(A) <<NOTE: Determination. Time period.>>  In
                    general.--Subject to subparagraph (B), in the case of a
                    biological product that would (but for this subsection)
                    be an extended-monopoly drug (as defined in section
                    1194(c)(4)) included as a selected drug on the list
                    published under subsection (a) with respect to an
                    initial price applicability year, the rules described in
                    paragraph (2) shall apply if the Secretary determines
                    that there is a high likelihood (as described in
                    paragraph (3)) that a biosimilar biological product (for
                    which such biological product will be the reference
                    product) will be licensed and marketed under section
                    351(k) of the Public Health Service Act before the date
                    that is 2 years after the selected drug publication date
                    with respect to such initial price applicability year.
                        ``(B) Request required.--
                              ``(i) In general.--The Secretary shall not
                          provide for a delay under--
                                        ``(I) paragraph (2)(A) unless a
                                    request is made for such a delay by a
                                    manufacturer of a biosimilar biological
                                    product prior to the selected drug
                                    publication date for the list published
                                    under subsection (a) with respect to the
                                    initial price applicability year for
                                    which the biological product may have
                                    been included as a selected drug on such
                                    list but for subparagraph (2)(A); or
                                        ``(II) <<NOTE: Time period.>>
                                    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

    [[Page 136 STAT. 1856]]

                                    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) <<NOTE: Time
                                            period.>>  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) <<NOTE: Time periods. Determination.>>  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

    [[Page 136 STAT. 1857]]

                          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) <<NOTE: Evaluation.>>
                                    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

    [[Page 136 STAT. 1858]]

                          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

    [[Page 136 STAT. 1859]]

                          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.
                ``(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) <<NOTE: Estimate.>>  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

    [[Page 136 STAT. 1860]]

                                            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) <<NOTE: Determination.>>  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

    [[Page 136 STAT. 1861]]

                          be substituted for the maximum fair price
                          described in clause (i)(I) or (ii)(I) of such
                          subparagraph (B), as applicable.
                              ``(ii) <<NOTE: Time periods.>>  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) <<NOTE: 42 USC 1320f-2.>> --
                        (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) <<NOTE: 42 USC 1320f-5.>> , by
            striking ``section 1192(d)(2)(B)'' and inserting ``subsections
            (d)(2)(B) and (f)(1)(C) of section 1192'';
                (4) in section 1197 <<NOTE: 42 USC 1320f-6.>> --
                        (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) <<NOTE: Penalties.>>  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) <<NOTE: 42 USC 1320f-7.>> , by
            inserting ``the application of section 1192(f),'' after
            ``section 1192(e)''.

    [[Page 136 STAT. 1862]]

        (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) <<NOTE: 42 USC 1320f-1 note.>>  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 <<NOTE: 26 USC 5000D prec.>> --DESIGNATED DRUGS

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

    ``SEC. 5000D <<NOTE: 26 USC 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)

    [[Page 136 STAT. 1863]]

            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.-- <<NOTE: Contracts.>>
                ``(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) <<NOTE: Notice.>>  the notice of
                          terminations of all applicable agreements of the
                          manufacturer have been received by the Secretary
                          of Health and Human Services, and
                              ``(ii) none of the drugs of the manufacturer
                          of the designated drug are covered by an agreement
                          under section 1860D-14A or 1860D-14C of the Social
                          Security Act, and
                        ``(B) ending on the last day of February following
                    the earlier of--
                              ``(i) the first day after the date described
                          in subparagraph (A) on which the manufacturer
                          enters into any subsequent applicable agreement,
                          or
                              ``(ii) the first date any drug of the
                          manufacturer of the designated drug is covered by
                          an agreement under section 1860D-14A or 1860D-14C
                          of the Social Security Act.
                ``(2) <<NOTE: Definition.>>  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) <<NOTE: Definition.>>  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,

    [[Page 136 STAT. 1864]]

                ``(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) <<NOTE: Applicability.>>  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) <<NOTE: Applicability.>>  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) <<NOTE: Guidelines.>>  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 <<NOTE: 26 USC 275.>>  is amended by
    inserting ``50A,'' after ``46,''.

        (c) Clerical Amendment.--The table of chapters for subtitle D of the
    Internal Revenue Code of 1986 <<NOTE: 26 USC 4001 prec.>>  is amended by
    adding at the end the following new item:

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

        (d) <<NOTE: 26 USC 5000D note.>>  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.

    [[Page 136 STAT. 1865]]

                   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) <<NOTE: Deadlines. Effective dates. Time periods.>>
            Requirements.--
                        ``(A) <<NOTE: Reports.>>  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) <<NOTE: Determination.>>  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

    [[Page 136 STAT. 1866]]

                          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) <<NOTE: Time periods.>>  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) <<NOTE: Time periods.>>  Rebate amount.--
                        ``(A) <<NOTE: Estimate.>>  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

    [[Page 136 STAT. 1867]]

                              ``(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) <<NOTE: Definition.>>  Payment amount
                    benchmark quarter.--The term `payment amount benchmark
                    quarter' means the calendar quarter beginning July 1,
                    2021.
                        ``(E) <<NOTE: Definition.>>  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) <<NOTE: Determination.>>  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) <<NOTE: Effective dates. Applicability. Time
            periods.>>  Special treatment of certain drugs and exemption.--
                        ``(A) Subsequently approved drugs.--In the case of a
                    part B rebatable drug first approved or licensed by the
                    Food and Drug Administration after December 1, 2020,
                    clause (i) of paragraph (3)(C) shall be applied as if
                    the term `payment amount benchmark quarter' were defined

    [[Page 136 STAT. 1868]]

                    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) <<NOTE: Effective date. Time period.>>  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) <<NOTE: Applicability. Determination.>>  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.

    [[Page 136 STAT. 1869]]

                ``(7) <<NOTE: Time period.>>  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 <<NOTE: Applicability.>>  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) <<NOTE: Effective date. Time
                    period. Applicability.>>  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) <<NOTE: Effective date. Determination. Applicability.>>  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

    [[Page 136 STAT. 1870]]

    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) <<NOTE: Effective date. Time
                    period. Determination. Applicability.>>  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) <<NOTE: Time period.>>  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

    [[Page 136 STAT. 1871]]

    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. <<NOTE: 42 USC 1395w-114b.>>  MANUFACTURER
                                  REBATE FOR CERTAIN DRUGS WITH PRICES
                                  INCREASING FASTER THAN INFLATION.

        ``(a) Requirements.--
                ``(1) <<NOTE: Reports.>>  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) <<NOTE: Deadline.>>  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) <<NOTE: Time period. Effective date.>>  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) <<NOTE: Determinations.>>  Rebate Amount.--
                ``(1) In general.--
                        ``(A) Calculation.--For purposes of this section,
                    the amount specified in this subsection for a dosage
                    form and strength with respect to a part D rebatable
                    drug and applicable period is, subject to subparagraph
                    (C), paragraph (5)(B), and paragraph (6), the estimated
                    amount equal to the product of--
                              ``(i) subject to subparagraph (B) of this
                          paragraph, the total number of units of such
                          dosage form and strength for each rebatable
                          covered part D drug dispensed under this part
                          during the applicable period; and
                              ``(ii) the amount (if any) by which--
                                        ``(I) the annual manufacturer price
                                    (as determined in paragraph (2)) paid
                                    for such dosage form and strength with
                                    respect to such part D rebatable drug
                                    for the period; exceeds
                                        ``(II) the inflation-adjusted
                                    payment amount determined under
                                    paragraph (3) for such dosage

    [[Page 136 STAT. 1872]]

                                    form and strength with respect to such
                                    part D rebatable drug for the period.
                        ``(B) <<NOTE: Effective date.>>  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

    [[Page 136 STAT. 1873]]

                        ``(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) <<NOTE: Effective dates. Applicability. Time
                    period.>>  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.

    [[Page 136 STAT. 1874]]

                        ``(C) <<NOTE: Effective date. Applicability.>>
                    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. <<NOTE: Deadline.>>  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 <<NOTE: Applicability.>>  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.

    [[Page 136 STAT. 1875]]

                ``(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) <<NOTE: Determinations. Estimate.>>  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) <<NOTE: Time periods. Effective
                          dates.>>  Increase.--The dollar amount applied
                          under clause (i)--
                                        ``(I) for the applicable period
                                    beginning October 1, 2023, shall be the
                                    dollar amount specified under such
                                    clause for the applicable period
                                    beginning October 1, 2022, increased by
                                    the percentage increase in the consumer
                                    price index for all urban consumers
                                    (United States city average) for the 12-
                                    month period beginning with October of
                                    2023; and
                                        ``(II) for a subsequent applicable
                                    period, shall be the dollar amount
                                    specified in this clause for the
                                    previous applicable period, increased by
                                    the percentage increase in the consumer
                                    price index for all urban consumers
                                    (United States city average) for the 12-
                                    month period beginning with October of
                                    the previous period.
                          Any dollar amount specified under this clause that
                          is not a multiple of $10 shall be rounded to the
                          nearest multiple of $10.
                        ``(C) Drug or biological described.--A drug or
                    biological described in this subparagraph is a drug or
                    biological that, as of the first day of the applicable
                    period involved, is--
                              ``(i) a drug approved under a new drug
                          application under section 505(c) of the Federal
                          Food, Drug, and Cosmetic Act;
                              ``(ii) a drug approved under an abbreviated
                          new drug application under section 505(j) of the
                          Federal Food, Drug, and Cosmetic Act, in the case
                          where--
                                        ``(I) the reference listed drug
                                    approved under section 505(c) of the
                                    Federal Food, Drug, and Cosmetic Act,
                                    including any `authorized generic drug'
                                    (as that term is defined in section
                                    505(t)(3) of the Federal Food, Drug, and
                                    Cosmetic Act), is not being marketed, as
                                    identified in the Food and Drug
                                    Administration's National Drug Code
                                    Directory;

    [[Page 136 STAT. 1876]]

                                        ``(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) <<NOTE: Time period.>>  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''.

    [[Page 136 STAT. 1877]]

                (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) <<NOTE: Time periods.>>  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. <<NOTE: Time periods.>>  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

    [[Page 136 STAT. 1878]]

                              (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)--

    [[Page 136 STAT. 1879]]

                              (i) in clause (i), by striking ``and for
                          amounts'' and inserting ``and, for a year
                          preceding 2025, for amounts''; and
                              (ii) in clause (iii)--
                                        (I) by redesignating subclauses (I)
                                    through (IV) as items (aa) through (dd)
                                    and indenting appropriately;
                                        (II) by striking ``if such costs are
                                    borne or paid'' and inserting ``if such
                                    costs--
                                        ``(I) are borne or paid--''; and
                                        (III) in item (dd), by striking the
                                    period at the end and inserting ``;
                                    or''; and
                                        (IV) by adding at the end the
                                    following new subclause:
                                        ``(II) for 2025 and subsequent
                                    years, are reimbursed through insurance,
                                    a group health plan, or certain other
                                    third party payment arrangements, but
                                    not including the coverage provided by a
                                    prescription drug plan or an MA-PD plan
                                    that is basic prescription drug coverage
                                    (as defined in subsection (a)(3)) or any
                                    payments by a manufacturer under the
                                    manufacturer discount program under
                                    section 1860D-14C.''; and
                        (D) in subparagraph (E), by striking ``In applying''
                    and inserting ``For each of years 2011 through 2024, in
                    applying''.

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

    [[Page 136 STAT. 1880]]

                        ``(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. <<NOTE: Definition.>> --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. <<NOTE: 42 USC 1395w-114c.>>  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) <<NOTE: Effective date.>>  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) <<NOTE: Deadlines.>>  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.

    [[Page 136 STAT. 1881]]

                              ``(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) <<NOTE: Determination.>>  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. <<NOTE: Time period.>>  Such termination
                          shall not be effective earlier than 30 days after
                          the date of notice to the manufacturer of such
                          termination. <<NOTE: Hearings.>>  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. <<NOTE: Effective dates.>>  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:

    [[Page 136 STAT. 1882]]

                ``(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) <<NOTE: Determination.>>  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).

    [[Page 136 STAT. 1883]]

        ``(f) Clarification Regarding Availability of Other Covered Part D
    Drugs.--Nothing in this section shall prevent an applicable beneficiary
    from purchasing a covered part D drug that is not an applicable drug
    (including a generic drug or a drug that is not on the formulary of the
    prescription drug plan or MA-PD plan that the applicable beneficiary is
    enrolled in).
        ``(g) Definitions.--In this section:
                ``(1) Applicable beneficiary.--The term `applicable
            beneficiary' means an individual who, on the date of dispensing
            a covered part D drug--
                        ``(A) is enrolled in a prescription drug plan or an
                    MA-PD plan;
                        ``(B) is not enrolled in a qualified retiree
                    prescription drug plan; and
                        ``(C) has incurred costs, as determined in
                    accordance with section 1860D-2(b)(4)(C), for covered
                    part D drugs in the year that exceed the annual
                    deductible specified in section 1860D-2(b)(1).
                ``(2) Applicable drug.--The term `applicable drug', with
            respect to an applicable beneficiary--
                        ``(A) means a covered part D drug--
                              ``(i) approved under a new drug application
                          under section 505(c) of the Federal Food, Drug,
                          and Cosmetic Act or, in the case of a biologic
                          product, licensed under section 351 of the Public
                          Health Service Act; and
                              ``(ii)(I) if the PDP sponsor of the
                          prescription drug plan or the MA organization
                          offering the MA-PD plan uses a formulary, which is
                          on the formulary of the prescription drug plan or
                          MA-PD plan that the applicable beneficiary is
                          enrolled in;
                              ``(II) if the PDP sponsor of the prescription
                          drug plan or the MA organization offering the MA-
                          PD plan does not use a formulary, for which
                          benefits are available under the prescription drug
                          plan or MA-PD plan that the applicable beneficiary
                          is enrolled in; or
                              ``(III) is provided through an exception or
                          appeal; and
                        ``(B) does not include a selected drug (as referred
                    to under section 1192(c)) during a price applicability
                    period (as defined in section 1191(b)(2)) with respect
                    to such drug.
                ``(3) Applicable number of calendar days.--The term
            `applicable number of calendar days' means--
                        ``(A) with respect to claims for reimbursement
                    submitted electronically, 14 days; and
                        ``(B) with respect to claims for reimbursement
                    submitted otherwise, 30 days.
                ``(4) Discounted price.--
                        ``(A) In general.--The term `discounted price'
                    means, subject to subparagraphs (B) and (C), with
                    respect to an applicable drug of a manufacturer
                    dispensed during a year to an applicable beneficiary--
                              ``(i) who has not incurred costs, as
                          determined in accordance with section 1860D-
                          2(b)(4)(C), for covered part D drugs in the year
                          that are equal to or exceed the annual out-of-
                          pocket threshold specified in section 1860D-
                          2(b)(4)(B)(i) for the year, 90 percent of the
                          negotiated price of such drug; and

    [[Page 136 STAT. 1884]]

                              ``(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. <<NOTE: Determinati
                                            on. Requirement. Attestation.>>
                                            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) <<NOTE: Time
                                    periods. Effective dates.>>
                                    Limitation.--The term `specified
                                    manufacturer' shall not include a
                                    manufacturer

    [[Page 136 STAT. 1885]]

                                    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

    [[Page 136 STAT. 1886]]

                                                ``(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

    [[Page 136 STAT. 1887]]

                                    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-

    [[Page 136 STAT. 1888]]

            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. <<NOTE: 42 USC 1395w-114d.>>  SELECTED DRUG
                                  SUBSIDY PROGRAM.

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

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

        (d) Medicare Part D Premium Stabilization.--
                (1) 2024 through 2029.--Section 1860D-13 of the Social
            Security Act (42 U.S.C. 1395w-113) is amended--
                        (A) in subsection (a)--
                              (i) in paragraph (1)(A), by inserting ``or (8)
                          (as applicable)'' after ``paragraph (2)'';
                              (ii) in paragraph (2), in the matter preceding
                          subparagraph (A), by striking ``The base'' and
                          inserting ``Subject to paragraph (8), the base'';

    [[Page 136 STAT. 1889]]

                              (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) <<NOTE: Time period.>>  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.

    [[Page 136 STAT. 1890]]

                              ``(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) <<NOTE: Time periods.>>  Percent specified.--
                        ``(A) <<NOTE: Determination.>>  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''.

    [[Page 136 STAT. 1891]]

                        (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) <<NOTE: Time periods.>>  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:

    [[Page 136 STAT. 1892]]

                              ``(ii) for 2025 and each subsequent year, any
                          discount provided pursuant to section 1860D-
                          14C.''.
                (6) Section 1860D-41(a)(6) of the Social Security Act (42
            U.S.C. 1395w-151(a)(6)) is amended--
                        (A) by inserting ``for a year before 2025'' after
                    ``1860D-2(b)(3)''; and
                        (B) by inserting ``for such year'' before the
                    period.
                (7) Section 1860D-43 of the Social Security Act (42 U.S.C.
            1395w-153) is amended--
                        (A) in subsection (a)--
                              (i) by striking paragraph (1) and inserting
                          the following:
                ``(1) participate in--
                        ``(A) for 2011 through 2024, the Medicare coverage
                    gap discount program under section 1860D-14A; and
                        ``(B) for 2025 and each subsequent year, the
                    manufacturer discount program under section 1860D-
                    14C;'';
                              (ii) by striking paragraph (2) and inserting
                          the following:
                ``(2) have entered into and have in effect--
                        ``(A) for 2011 through 2024, an agreement described
                    in subsection (b) of section 1860D-14A with the
                    Secretary; and
                        ``(B) for 2025 and each subsequent year, an
                    agreement described in subsection (b) of section 1860D-
                    14C with the Secretary; and''; and
                              (iii) in paragraph (3), by striking ``such
                          section'' and inserting ``section 1860D-14A''; and
                        (B) by striking subsection (b) and inserting the
                    following:

        ``(b) <<NOTE: Applicability.>>  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) <<NOTE: 42 USC 1395w-102 note.>>  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) <<NOTE: Time periods.>>  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.

    [[Page 136 STAT. 1893]]

    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) <<NOTE: Effective date.>>  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.

    [[Page 136 STAT. 1894]]

                              ``(v) <<NOTE: Applicability.>>  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) <<NOTE: Notification.>>
                                            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) <<NOTE: Notification.>>
                                            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

    [[Page 136 STAT. 1895]]

                                                ``(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) <<NOTE: 42 USC 1395w-102 note.>>  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) <<NOTE: Time period.>>  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.

    [[Page 136 STAT. 1896]]

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

    SEC. 11301. <<NOTE: 42 USC 1320a-7b note.>>  EXTENSION OF
                                MORATORIUM ON IMPLEMENTATION OF RULE
                                RELATING TO ELIMINATING THE ANTI-
                                KICKBACK STATUTE SAFE HARBOR
                                PROTECTION FOR PRESCRIPTION DRUG
                                REBATES.

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

                              PART 5--MISCELLANEOUS

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

        (a) Ensuring Treatment of Cost-sharing and Deductible Is Consistent
    With Treatment of Vaccines Under Medicare Part B.--Section 1860D-2 of
    the Social Security Act (42 U.S.C. 1395w-102), as amended by sections
    11201 and 11202, is amended--
                (1) in subsection (b)--
                        (A) in paragraph (1)(A), by striking ``The
                    coverage'' and inserting ``Subject to paragraph (8), the
                    coverage'';
                        (B) in paragraph (2)--
                              (i) in subparagraph (A), by inserting ``and
                          paragraph (8)'' after ``and (E)'';
                              (ii) in subparagraph (C)(i), in the matter
                          preceding subclause (I), by striking ``paragraph
                          (4)'' and inserting ``paragraphs (4) and (8)'';
                          and
                              (iii) in subparagraph (D)(i), in the matter
                          preceding subclause (I), by striking ``paragraph
                          (4)'' and inserting ``paragraphs (4) and (8)'';
                        (C) in paragraph (3)(A), in the matter preceding
                    clause (i), by striking ``and (4)'' and inserting ``(4),
                    and (8)'';
                        (D) in paragraph (4)(A)(i), by striking ``The
                    coverage'' and inserting ``Subject to paragraph (8), the
                    coverage''; and
                        (E) by adding at the end the following new
                    paragraph:
                ``(8) Treatment of cost-sharing for adult vaccines
            recommended by the advisory committee on immunization practices
            consistent with treatment of vaccines under part b.--
                        ``(A) <<NOTE: Effective date.>>  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

    [[Page 136 STAT. 1897]]

                              ``(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. <<NOTE: Definition.>> --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. <<NOTE: Effective date.>> --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

    [[Page 136 STAT. 1898]]

            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) <<NOTE: Deadline.>>  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) <<NOTE: 42 USC 1395w-102 note.>>  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) <<NOTE: 42 USC 1395w-102 note.>>  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. <<NOTE: Effective date.>> --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;

    [[Page 136 STAT. 1899]]

                (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) <<NOTE: Time periods.>>  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) <<NOTE: Effective date.>>  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. <<NOTE: Effective date.>>  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)--

    [[Page 136 STAT. 1900]]

                        (A) by striking the paragraph heading and inserting
                    ``Individuals with certain low incomes''; and
                        (B) in the matter preceding subparagraph (A)--
                              (i) by inserting ``(or, with respect to a plan
                          year beginning on or after January 1, 2024, 150
                          percent)'' after ``135 percent''; and
                              (ii) by inserting ``(or, with respect to a
                          plan year beginning on or after January 1, 2024,
                          paragraph (3)(E))'' after ``the resources
                          requirement described in paragraph (3)(D)''; and
                (3) in paragraph (2)--
                        (A) by striking the paragraph heading and inserting
                    ``Other low-income individuals''; and
                        (B) in the matter preceding subparagraph (A), by
                    striking ``In the case of a subsidy'' and inserting
                    ``With respect to a plan year beginning before January
                    1, 2024, in the case of a subsidy''.
    SEC. 11405. IMPROVING ACCESS TO ADULT VACCINES UNDER MEDICAID AND
                                CHIP.

        (a) Medicaid.--
                (1) Requiring coverage of adult vaccinations.--
                        (A) In general.--Section 1902(a)(10)(A) of the
                    Social Security Act (42 U.S.C. 1396a(a)(10)(A)) is
                    amended in the matter preceding clause (i) by inserting
                    ``(13)(B),'' after ``(5),''.
                        (B) Medically needy.--Section 1902(a)(10)(C)(iv) of
                    such Act (42 U.S.C. 1396a(a)(10)(C)(iv)) is amended by
                    inserting ``, (13)(B),'' after ``(5)''.
                (2) No cost sharing for vaccinations.--
                        (A) General cost-sharing limitations.--Section 1916
                    of the Social Security Act (42 U.S.C. 1396o) is
                    amended--
                              (i) in subsection (a)(2)--
                                        (I) in subparagraph (G), by
                                    inserting a comma after ``State plan'';
                                        (II) in subparagraph (H), by
                                    striking ``; or'' and inserting a comma;
                                        (III) in subparagraph (I), by
                                    striking ``; and'' and inserting ``,
                                    or''; and
                                        (IV) by adding at the end the
                                    following new subparagraph:
                        ``(J) vaccines described in section 1905(a)(13)(B)
                    and the administration of such vaccines; and''; and
                              (ii) in subsection (b)(2)--
                                        (I) in subparagraph (G), by
                                    inserting a comma after ``State plan'';
                                        (II) in subparagraph (H), by
                                    striking ``; or'' and inserting a comma;
                                        (III) in subparagraph (I), by
                                    striking ``; and'' and inserting ``,
                                    or''; and
                                        (IV) by adding at the end the
                                    following new subparagraph:
                        ``(J) vaccines described in section 1905(a)(13)(B)
                    and the administration of such vaccines; and''.
                        (B) Application to alternative cost sharing.--
                    Section 1916A(b)(3)(B) of the Social Security Act (42
                    U.S.C.

    [[Page 136 STAT. 1901]]

                    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) <<NOTE: Time periods.>>  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) <<NOTE: Applicability. 42 USC 1396a note.>>  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.

    [[Page 136 STAT. 1902]]

    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) <<NOTE: Time periods.>>  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) <<NOTE: Definition.>>  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) <<NOTE: Definition.>>  Applicable copayment
                    amount.--In this paragraph, the term `applicable
                    copayment amount' means, with

    [[Page 136 STAT. 1903]]

                    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) <<NOTE: Reimbursement. Deadline.>>  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) <<NOTE: Time periods.>>  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

    [[Page 136 STAT. 1904]]

                    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) <<NOTE: 42 USC 1395w-102 note.>>  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. <<NOTE: Effective dates.>>  LIMITATION ON MONTHLY
                                COINSURANCE AND ADJUSTMENTS TO
                                SUPPLIER PAYMENT UNDER MEDICARE PART B
                                FOR INSULIN FURNISHED THROUGH DURABLE
                                MEDICAL EQUIPMENT.

        (a) Waiver of Deductible.--The first sentence of section 1833(b) of
    the Social Security Act (42 U.S.C. 1395l(b)) is amended--
                (1) by striking ``and (12)'' and inserting ``(12)''; and
                (2) by inserting before the period the following: ``, and
            (13) such deductible shall not apply with respect to insulin
            furnished on or after July 1, 2023, through an item of durable
            medical equipment covered under section 1861(n).''.

        (b) Coinsurance.--
                (1) In general.--Section 1833(a)(1)(S) of the Social
            Security Act (42 U.S.C. 1395l(a)(1)(S)) is amended--
                        (A) by inserting ``(i) except as provided in clause
                    (ii),'' after ``(S)''; and
                        (B) by inserting after ``or 1847B),'' the following:
                    ``and (ii) with respect to insulin furnished on or after
                    July 1, 2023, through an item of durable medical
                    equipment covered under section 1861(n), the amounts
                    paid shall be, subject to the fourth sentence of this
                    subsection, 80 percent of the payment amount established
                    under section 1847A (or section 1847B, if applicable)
                    for such insulin,''.
                (2) Adjustment to supplier payments; limitation on monthly
            coinsurance.--Section 1833(a) of the Social Security Act (42
            U.S.C. 1395l(a)) is amended, in the flush matter at the end, by
            adding at the end the following new sentence: ``The Secretary
            shall make such adjustments as may be necessary to the amounts
            paid as specified under paragraph (1)(S)(ii) for insulin
            furnished on or after July 1, 2023, through

    [[Page 136 STAT. 1905]]

            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) <<NOTE: 42 USC 1395l note.>>  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 <<NOTE: 26 USC 223.>>  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) <<NOTE: Definitions.>>  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) <<NOTE: 26 USC 223 note.>>  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

    [[Page 136 STAT. 1906]]

                (2) by striking ``2021 and 2022'' in the heading and
            inserting ``2021 through 2025''.

        (c) <<NOTE: 26 USC 36B note.>>  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) <<NOTE: 26 USC 45.>>  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.''.

    [[Page 136 STAT. 1907]]

        (f) Wage and Apprenticeship Requirements.--Section 45(b) <<NOTE: 26
    USC 45.>>  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) <<NOTE: Time
                          period. Publication. Guidelines.>>  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) <<NOTE: Determination.>>  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. <<NOTE: Applicability.>>  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--

    [[Page 136 STAT. 1908]]

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

    [[Page 136 STAT. 1909]]

                          with respect to such facility shall, subject to
                          subparagraph (B), be performed by qualified
                          apprentices.
                              ``(ii) <<NOTE: Effective dates.>>  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

    [[Page 136 STAT. 1910]]

                                        ``(II) <<NOTE: Deadline.>>  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) <<NOTE: Determination.>>  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) <<NOTE: Determination.>>  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), <<NOTE: 26 USC 45.>>  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) <<NOTE: Certification.>>  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

    [[Page 136 STAT. 1911]]

                          United States (as determined under section 661 of
                          title 49, Code of Federal Regulations).
                              ``(ii) <<NOTE: Applicability.>>  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) <<NOTE: Effective dates.>>  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

    [[Page 136 STAT. 1912]]

                                        ``(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) <<NOTE: Definition.>>  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) <<NOTE: Determinations.>>  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) <<NOTE: Effective dates.>>  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 <<NOTE: 26 USC
    45.>>  45(b)(3) is amended to read as follows:
                ``(3) Credit reduced for tax-exempt bonds.--The amount of
            the credit determined under subsection (a) with respect to any
            facility for any taxable year (determined after the application
            of paragraphs (1) and (2)) shall be reduced by the amount which
            is the product of the amount so determined for such year and the
            lesser of 15 percent or a fraction--
                        ``(A) the numerator of which is the sum, for the
                    taxable year and all prior taxable years, of proceeds of
                    an issue of any obligations the interest on which is
                    exempt from tax under section 103 and which is used to
                    provide financing for the qualified facility, and

    [[Page 136 STAT. 1913]]

                        ``(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 <<NOTE: Determination.>>  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) <<NOTE: 26 USC 45.>>  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) <<NOTE: Applicability. 26 USC 45 note.>>  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).

    [[Page 136 STAT. 1914]]

                (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) <<NOTE: 26 USC 48.>>  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) <<NOTE: Effective dates.>>  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) <<NOTE: Effective dates. Time periods.>>  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,''.

    [[Page 136 STAT. 1915]]

                (2) Application of 6 percent credit.--Section
            48(a)(2)(A)(i) <<NOTE: 26 USC 48.>>  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. <<NOTE: Applicability.>>  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,

    [[Page 136 STAT. 1916]]

                                        ``(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 <<NOTE: 26 USC 45.>>  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

    [[Page 136 STAT. 1917]]

            credit is allowed under section 48 with respect to such property
            for the taxable year or any prior taxable year.''.
                (5) Public utility property.--Paragraph (2) of section
            50(d) <<NOTE: 26 USC 50.>>  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:

    [[Page 136 STAT. 1918]]

                        ``(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, <<NOTE: 26 USC 48.>>  is amended by
    adding at the end the following new paragraph:
                ``(8) <<NOTE: Definitions.>>  Interconnection property.--
                        ``(A) <<NOTE: Determination.>>  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:

    [[Page 136 STAT. 1919]]

                ``(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) <<NOTE: Time
                          period. Publication. Guidelines.>>  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) <<NOTE: Time period.>>  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) <<NOTE: Applicability.>>  Correction and
                    penalty related to failure to satisfy wage
                    requirements.--Rules similar to the rules of section
                    45(b)(7)(B) shall apply.
                        ``(C) <<NOTE: Regulations. Guidelines.>>
                    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)). <<NOTE: Determination.>>  The period and

    [[Page 136 STAT. 1920]]

                    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, <<NOTE: 26 USC
    48.>>  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) <<NOTE: Applicability.>>  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) <<NOTE: Applicability.>>  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. <<NOTE: Applicability.>> --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) <<NOTE: Definition.>>  Storage facility.--For
                    purposes of subparagraph (A), the term `storage
                    facility' means a facility which uses energy storage
                    technology within the meaning of section 48(c)(6).'',
                    and
                (2) in paragraph (4), by striking ``or water treatment works
            facility'' and inserting ``water treatment works facility, or
            storage facility''.

        (o) Increase in Credit Rate for Energy Communities.--Section 48(a),
    as amended by the preceding provisions of this Act, is amended by adding
    at the end the following new paragraph:
                ``(14) Increase in credit rate for energy communities.--

    [[Page 136 STAT. 1921]]

                        ``(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, <<NOTE: 26 USC 48.>>  is amended by adding at
    the end the following new paragraph:
                ``(15) <<NOTE: Determination. Requirements. Records.>>
            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) <<NOTE: Applicability. 26 USC 45 note.>>  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--

    [[Page 136 STAT. 1922]]

                              ``(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) <<NOTE: Definition.>>  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--

    [[Page 136 STAT. 1923]]

                              ``(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) <<NOTE: Definition.>>  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) <<NOTE: Deadline.>>  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. <<NOTE: Procedures.>>  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) <<NOTE: Definition.>>  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) <<NOTE: Time period.>>  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)

    [[Page 136 STAT. 1924]]

                          for such calendar year, subject to the limitation
                          imposed by the last sentence of such subparagraph.
                ``(5) <<NOTE: Regulations. Guidelines.>>  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)). <<NOTE: Determination. Time period.>>  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) <<NOTE: 26 USC 48 note.>>  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) <<NOTE: 26 USC 45Q.>>  is
            amended to read as follows:

        ``(d) <<NOTE: Definition.>>  Qualified Facility.--For purposes of
    this section, the term `qualified facility' means any industrial
    facility or direct air capture facility--
                ``(1) <<NOTE: Effective date.>>  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:

    [[Page 136 STAT. 1925]]

                ``(1) Applicable electric generating unit.--The term
            `applicable electric generating unit' means the principal
            electric generating unit for which the carbon capture equipment
            is originally planned and designed.
                ``(2) Baseline carbon oxide production.--
                        ``(A) <<NOTE: Time periods.>>  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) <<NOTE: 26 USC 142.>>  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

    [[Page 136 STAT. 1926]]

                        (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) <<NOTE: Effective dates.>>  In general.--Section
            45Q(b)(1), as amended by the preceding provisions of this
            Act, <<NOTE: 26 USC 45Q.>>  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

    [[Page 136 STAT. 1927]]

            subsection (a) shall be equal to such amount (determined without
            regard to this sentence) multiplied by 5.
                ``(2) <<NOTE: Time
            periods. Publication. Guidelines.>> 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) <<NOTE: Applicability.>>  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

    [[Page 136 STAT. 1928]]

                    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) <<NOTE: Applicability.>>  Apprenticeship
            requirements.--Rules similar to the rules of section 45(b)(8)
            shall apply.
                ``(5) <<NOTE: Determination. Requirements. Records.>>
            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) <<NOTE: 26
    USC 45Q.>>  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) <<NOTE: Applicability.>>  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) <<NOTE: Time period.>>  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

    [[Page 136 STAT. 1929]]

                (3) by adding at the end the following new paragraph:
                ``(3) for purposes of subsection (d)(2)(B)(ii), adjust the
            baseline carbon oxide production with respect to any applicable
            electric generating unit at any electricity generating facility
            if, after the date on which the carbon capture equipment is
            placed in service, modifications which are chargeable to capital
            account are made to such unit which result in a significant
            increase or decrease in carbon oxide production.''.

        (i) <<NOTE: Applicability. 26 USC 45Q note.>>  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. <<NOTE: 26 USC 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

    [[Page 136 STAT. 1930]]

                              ``(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 <<NOTE: Determination.>>  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) <<NOTE: Applicability.>>  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.

    [[Page 136 STAT. 1931]]

        ``(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) <<NOTE: Determination.>>  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 <<NOTE: Applicability.>>  to the rules of
                    section 45(b)(7)(B) shall apply.
                ``(3) <<NOTE: Determination. Requirements. Records.>>
            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) <<NOTE: 26 USC 38.>>  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 <<NOTE: 26 USC 38 prec.>>  is amended
            by adding at the end the following new item:

    ``Sec. 45U. Zero-emission nuclear power production credit.''.

        (c) <<NOTE: 26 USC 45U note.>>  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''.

    [[Page 136 STAT. 1932]]

                (2) Fuels not used for taxable purposes.--Section
            6427(e)(6)(B) is amended <<NOTE: 26 USC 6427.>>  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) <<NOTE: 26 USC 40A note.>>  Effective Date.--The amendments made
    by this section shall apply to fuel sold or used after December 31,
    2021.

        (g) <<NOTE: Effective date. Deadlines. Claims. 26 USC 6426 note.>>
    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. <<NOTE: Guidelines.>>  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. <<NOTE: Guidelines.>>  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. <<NOTE: Determination.>>  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) <<NOTE: 26 USC 40 note.>>  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. <<NOTE: Definitions. 26 USC 40B.>>  SUSTAINABLE
                            AVIATION FUEL CREDIT.

        ``(a) In General.--For purposes of section 38, the sustainable
    aviation fuel credit determined under this section for the taxable year
    is, with respect to any sale or use of a qualified mixture which occurs
    during such taxable year, an amount equal to the product of--
                ``(1) the number of gallons of sustainable aviation fuel in
            such mixture, multiplied by
                ``(2) the sum of--
                        ``(A) $1.25, plus

    [[Page 136 STAT. 1933]]

                        ``(B) <<NOTE: Applicability.>>  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.

    [[Page 136 STAT. 1934]]

            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) <<NOTE: Certification. Compliance. Requirements.>>
                     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, <<NOTE: 26 USC 38.>>
    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--

    [[Page 136 STAT. 1935]]

                              ``(i) $1.25, plus
                              ``(ii) <<NOTE: Applicability.>>  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) <<NOTE: Applicability.>>  Registration requirement.--
            For purposes of this subsection, rules similar to the rules of
            section 40B(f) shall apply.''.
                (2) Conforming amendments.--
                        (A) <<NOTE: 26 USC 6426.>>  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 <<NOTE: 26 USC 38 prec.>>
                    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) <<NOTE: 26 USC 40B note.>>  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:

    [[Page 136 STAT. 1936]]

    ``SEC. 45V. <<NOTE: 26 USC 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) <<NOTE: Time period.>>  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) <<NOTE: Determination.>>  Applicable percentage.--For
            purposes of paragraph (1), the applicable percentage shall be
            determined as follows:
                        ``(A) In the case of any qualified clean hydrogen
                    which is produced through a process that results in a
                    lifecycle greenhouse gas emissions rate of--
                              ``(i) not greater than 4 kilograms of CO2e per
                          kilogram of hydrogen, and
                              ``(ii) not less than 2.5 kilograms of CO2e per
                          kilogram of hydrogen,
                    the applicable percentage shall be 20 percent.
                        ``(B) In the case of any qualified clean hydrogen
                    which is produced through a process that results in a
                    lifecycle greenhouse gas emissions rate of--
                              ``(i) less than 2.5 kilograms of CO2e per
                          kilogram of hydrogen, and
                              ``(ii) not less than 1.5 kilograms of CO2e per
                          kilogram of hydrogen,
                    the applicable percentage shall be 25 percent.
                        ``(C) In the case of any qualified clean hydrogen
                    which is produced through a process that results in a
                    lifecycle greenhouse gas emissions rate of--
                              ``(i) less than 1.5 kilograms of CO2e per
                          kilogram of hydrogen, and
                              ``(ii) not less than 0.45 kilograms of CO2e
                          per kilogram of hydrogen,
                    the applicable percentage shall be 33.4 percent.
                        ``(D) In the case of any qualified clean hydrogen
                    which is produced through a process that results in a
                    lifecycle greenhouse gas emissions rate of less than
                    0.45 kilograms of CO2e per kilogram of hydrogen, the
                    applicable percentage shall be 100 percent.
                ``(3) Inflation adjustment.--The $0.60 amount in paragraph
            (1) shall be adjusted by multiplying such amount by the
            inflation adjustment factor (as determined under section
            45(e)(2), determined by substituting `2022' for `1992' in
            subparagraph (B) thereof) for the calendar year in which the
            qualified clean hydrogen is produced. If any amount as increased
            under the preceding sentence is not a multiple of 0.1 cent, such
            amount shall be rounded to the nearest multiple of 0.1 cent.

        ``(c) Definitions.--For purposes of this section--

    [[Page 136 STAT. 1937]]

                ``(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) <<NOTE: Determination.>>  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) <<NOTE: Effective date.>>  the construction of
                    which begins before January 1, 2033.

        ``(d) Special Rules.--
                ``(1) Treatment of facilities owned by more than 1
            taxpayer.--Rules similar <<NOTE: Applicability.>>  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

    [[Page 136 STAT. 1938]]

            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) <<NOTE: Effective date. Time
                          period. Publication. Guidelines.>>  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) <<NOTE: Applicability.>>  Prevailing wage
            requirements.--
                        ``(A) <<NOTE: Determination.>>  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) <<NOTE: Applicability.>>  Apprenticeship
            requirements.--Rules similar to the rules of section 45(b)(8)
            shall apply.
                ``(5) <<NOTE: Determination. Requirements. Records.>>
            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) <<NOTE: Deadline. Guidelines. Determinations.>>
    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, <<NOTE: 26 USC 45V.>>  is amended by
            adding at the end the following new paragraph:

    [[Page 136 STAT. 1939]]

                ``(3) <<NOTE: Applicability.>>  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, <<NOTE: 26 USC 45V.>>  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) <<NOTE: Effective date.>>  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, <<NOTE: 26 USC 38
                    prec.>>  is amended by adding at the end the following
                    new item:

    ``Sec. 45V. Credit for production of clean hydrogen.''.

                (5) <<NOTE: Applicability. 26 USC 45V note.>>  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:

    [[Page 136 STAT. 1940]]

                ``(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, <<NOTE: 26 USC 45U.>>  is amended by striking
            ``and (5)'' and inserting ``(5), and (13)''.
                (3) <<NOTE: 26 USC 45 note.>>  Effective date.--The
            amendments made by this subsection shall apply to electricity
            produced after December 31, 2022.

        (c) Election to Treat Clean Hydrogen Production Facilities as Energy
    Property.--
                (1) In general.--Section 48(a), as amended by the preceding
            provisions of this Act, is amended--
                        (A) by redesignating paragraph (15) as paragraph
                    (16), and
                        (B) by inserting after paragraph (14) the following
                    new paragraph:
                ``(15) Election to treat clean hydrogen production
            facilities as energy property.--
                        ``(A) In general.--In the case of any qualified
                    property (as defined in paragraph (5)(D)) which is part
                    of a specified clean hydrogen production facility--
                              ``(i) such property shall be treated as energy
                          property for purposes of this section, and
                              ``(ii) the energy percentage with respect to
                          such property is--
                                        ``(I) in the case of a facility
                                    which is designed and reasonably
                                    expected to produce qualified clean
                                    hydrogen which is described in a
                                    subparagraph (A) of section 45V(b)(2),
                                    1.2 percent,
                                        ``(II) in the case of a facility
                                    which is designed and reasonably
                                    expected to produce qualified clean
                                    hydrogen which is described in a
                                    subparagraph (B) of such section, 1.5
                                    percent,
                                        ``(III) in the case of a facility
                                    which is designed and reasonably
                                    expected to produce qualified clean
                                    hydrogen which is described in a
                                    subparagraph (C) of such section, 2
                                    percent, and
                                        ``(IV) in the case of a facility
                                    which is designed and reasonably
                                    expected to produce qualified clean
                                    hydrogen which is described in
                                    subparagraph (D) of such section, 6
                                    percent.
                        ``(B) Denial of production credit.--No credit shall
                    be allowed under section 45V or section 45Q for any
                    taxable year with respect to any specified clean
                    hydrogen production facility or any carbon capture
                    equipment included at such facility.

    [[Page 136 STAT. 1941]]

                        ``(C) Specified clean hydrogen production
                    facility.--For purposes <<NOTE: Definition.>>  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) <<NOTE: Effective date.>>  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) <<NOTE: Verification.>>  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) <<NOTE: Definition.>>  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) <<NOTE: Guidelines. Determination.>>
                    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, <<NOTE: 26 USC 48.>>  is
            amended by inserting ``and paragraph (15)'' after ``paragraphs
            (1) through (8)''.
                (3) <<NOTE: Applicability. 26 USC 48 note.>>  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) <<NOTE: 26 USC 6426 note.>>  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''.

    [[Page 136 STAT. 1942]]

        (b) <<NOTE: 26 USC 25C.>>  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) <<NOTE: Effective date.>>  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

    [[Page 136 STAT. 1943]]

            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) <<NOTE: 26 USC 25C.>>
            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) <<NOTE: Definitions.>>  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) <<NOTE: Effective dates.>>  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

    [[Page 136 STAT. 1944]]

                                        ``(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 <<NOTE: 26 USC 25C.>>  by striking ``and'' at
            the end of paragraph (1), by striking the period at the end of
            paragraph (2) and inserting ``, and'', and by adding at the end
            the following new paragraph:
                ``(3) the amount paid or incurred by the taxpayer during the
            taxable year for home energy audits.''.
                (2) Limitation.--Section 25C(b), as amended by subsection
            (c), is amended adding at the end the following new paragraph:
                ``(6) Home energy audits.--
                        ``(A) Dollar limitation.--The amount of the credit
                    allowed under this section by reason of subsection
                    (a)(3) shall not exceed $150.
                        ``(B) Substantiation requirement.--No credit shall
                    be allowed under this section by reason of subsection
                    (a)(3) unless the taxpayer includes with the taxpayer's
                    return of tax such information or documentation as the
                    Secretary may require.''.
                (3) Home energy audits.--
                        (A) In general.--Section 25C is amended by
                    redesignating subsections (e), (f), and (g), as
                    subsections (f), (g), and (h), respectively, and by
                    inserting after subsection (d) the following new
                    subsection:

        ``(e) <<NOTE: Definition.>>  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) <<NOTE: Cost estimates.>>  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

    [[Page 136 STAT. 1945]]

            ``(2) <<NOTE: Requirements. Regulations. Guidelines. Deadline.>>
             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) <<NOTE: 26 USC 1016.>>  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) <<NOTE: Definitions.>>  Product Identification Number
    Requirement.--
                ``(1) <<NOTE: Effective date.>>  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) <<NOTE: Reports.>>  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.

    [[Page 136 STAT. 1946]]

                ``(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 <<NOTE: 26 USC 6213.>>  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 <<NOTE: 26 USC 21
            prec.>>  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) <<NOTE: Applicability. 26 USC 25C note.>>  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:

    [[Page 136 STAT. 1947]]

                ``(6) the qualified battery storage technology
            expenditures,''.
                (2) Definition of qualified battery storage technology
            expenditure.--Paragraph (6) of section 25D(d) <<NOTE: 26 USC
            25D.>>  is amended to read as follows:
                ``(6) Qualified battery storage technology expenditure.--The
            term <<NOTE: Definition.>>  `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 <<NOTE: 26 USC 21 prec.>>  is amended
            by striking the item relating to section 25D and inserting the
            following:

    ``Sec. 25D. Residential clean energy credit.''.

        (d) <<NOTE: Applicability. 26 USC 25D note.>>  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) <<NOTE: Time periods.>>  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.--

    [[Page 136 STAT. 1948]]

                        ``(A) <<NOTE: Applicability.>>  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) <<NOTE: Time
                          period. Publication. Guidelines.>>  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) <<NOTE: Determination.>>  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) <<NOTE: Applicability.>>  Correction and
                    penalty related to failure to satisfy wage
                    requirements.--Rules similar to the rules of section
                    45(b)(7)(B) shall apply.
                ``(5) <<NOTE: Applicability.>>  Apprenticeship
            requirements.--Rules similar to the rules of section 45(b)(8)
            shall apply.

            ``(6) <<NOTE: Guidelines. Determination. Requirements. Records.>>
             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 <<NOTE: 26 USC 179D.>>  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

    [[Page 136 STAT. 1949]]

                        (C) by striking ``that construction of such property
                    begins'' and inserting ``such property is placed in
                    service''.
                (5) Elimination of partial allowance.--
                        (A) <<NOTE: 26 USC 179D.>>  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) <<NOTE: Regulations. Guidelines.>>  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) <<NOTE: Definition.>>  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) <<NOTE: Definitions.>>  Alternative Deduction for Energy
    Efficient Building Retrofit Property.--

    [[Page 136 STAT. 1950]]

                ``(1) <<NOTE: Determinations.>>  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) <<NOTE: Certifications.>>  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) <<NOTE: Time period.>>  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) <<NOTE: Certification.>>  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) <<NOTE: Time period.>>  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,

    [[Page 136 STAT. 1951]]

            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) <<NOTE: Determination.>>  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 <<NOTE: Applicability.>>  to subsection
                          (d)(3) shall apply for purposes of this
                          subsection.''.
                (8) <<NOTE: 26 USC 179D.>>  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).''.

    [[Page 136 STAT. 1952]]

        (c) <<NOTE: Deadlines.>>  Conforming Amendment.--Paragraph (1) of
    section 179D(d), as redesignated by subsection (a)(5)(A), <<NOTE: 26 USC
    179D.>>  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) <<NOTE: Applicability. 26 USC 179D note.>>  Effective Date.--
                (1) In general.--Except as otherwise provided in this
            subsection, the amendments made by this section shall apply to
            taxable years beginning after December 31, 2022.
                (2) Alternative deduction for energy efficient building
            retrofit property.--Subsection (f) of section 179D of the
            Internal Revenue Code of 1986 (as amended by this section), and
            any other provision of such section solely for purposes of
            applying such subsection, shall apply to property placed in
            service after December 31, 2022 (in taxable years ending after
            such date) if such property is placed in service pursuant to
            qualified retrofit plan (within the meaning of such section)
            established after such date.
    SEC. 13304. EXTENSION, INCREASE, AND MODIFICATIONS OF NEW ENERGY
                                EFFICIENT HOME CREDIT.

        (a) Extension of Credit.--Section 45L(g) is amended by striking
    ``December 31, 2021'' and inserting ``December 31, 2032''.
        (b) Increase in Credit Amounts.--Paragraph (2) of section 45L(a) is
    amended to read as follows:
                ``(2) <<NOTE: Requirements.>>  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) <<NOTE: Effective dates. Time periods.>>  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) <<NOTE: Certification.>>  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

    [[Page 136 STAT. 1953]]

                    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) <<NOTE: 26 USC 45L.>>  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) <<NOTE: Determination.>>  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

    [[Page 136 STAT. 1954]]

                    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) <<NOTE: Applicability.>>  Correction and
                    penalty related to failure to satisfy wage
                    requirements.--Rules similar to the rules of section
                    45(b)(7)(B) shall apply.
                ``(3) <<NOTE: Determination. Requirements. Records.>>
            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) <<NOTE: 26 USC 45L.>>  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) <<NOTE: Applicability. 26 USC 45L note.>>  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) <<NOTE: Determinations.>>  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) <<NOTE: Definition.>>  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.''.

    [[Page 136 STAT. 1955]]

        (c) Definition of New Clean Vehicle.--
                (1) In general.--Section 30D(d), as amended by the preceding
            provisions of this section, is amended-- <<NOTE: 26 USC 30D.>>
                        (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--

    [[Page 136 STAT. 1956]]

                        (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 <<NOTE: 26 USC 30D.>>  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) <<NOTE: Effective dates. Time periods.>>  Critical Mineral and
    Battery Component Requirements.--
                ``(1) Critical minerals requirement.--
                        ``(A) In general.--The requirement described in this
                    subparagraph with respect to a vehicle is that, with
                    respect to the battery from which the electric motor of
                    such vehicle draws electricity, the percentage of the
                    value of the applicable critical minerals (as defined in
                    section 45X(c)(6)) contained in such battery that were--
                              ``(i) extracted or processed--
                                        ``(I) in the United States, or
                                        ``(II) in any country with which the
                                    United States has a free trade agreement
                                    in effect, or
                              ``(ii) recycled in North America,
                    is equal to or greater than the applicable percentage
                    (as certified by the qualified manufacturer, in such
                    form or manner as prescribed by the Secretary).
                        ``(B) Applicable percentage.--For purposes of
                    subparagraph (A), the applicable percentage shall be--
                              ``(i) in the case of a vehicle placed in
                          service after the date on which the proposed
                          guidance described in paragraph (3)(B) is issued
                          by the Secretary and before January 1, 2024, 40
                          percent,
                              ``(ii) in the case of a vehicle placed in
                          service during calendar year 2024, 50 percent,
                              ``(iii) in the case of a vehicle placed in
                          service during calendar year 2025, 60 percent,
                              ``(iv) in the case of a vehicle placed in
                          service during calendar year 2026, 70 percent, and
                              ``(v) in the case of a vehicle placed in
                          service after December 31, 2026, 80 percent.
                ``(2) Battery components.--
                        ``(A) In general.--The requirement described in this
                    subparagraph with respect to a vehicle is that, with
                    respect to the battery from which the electric motor of
                    such vehicle draws electricity, the percentage of the
                    value of the components contained in such battery that
                    were manufactured or assembled in North America is equal
                    to or greater than the applicable percentage (as
                    certified by the qualified manufacturer, in such form or
                    manner as prescribed by the Secretary).
                        ``(B) Applicable percentage.--For purposes of
                    subparagraph (A), the applicable percentage shall be--

    [[Page 136 STAT. 1957]]

                              ``(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) <<NOTE: Determination.>> 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, <<NOTE: 26 USC 30D.>>  is
            amended by adding at the end the following:
                ``(7) <<NOTE: Effective dates.>>  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--

    [[Page 136 STAT. 1958]]

                              ``(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) <<NOTE: Definition.>>  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) <<NOTE: Determination.>>  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 <<NOTE: 26 USC 30D.>>  is
            amended by striking subsection (g) and inserting the following:

        ``(g) Transfer of Credit.--
                ``(1) <<NOTE: Determination.>>  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) <<NOTE: Definition.>>  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--

    [[Page 136 STAT. 1959]]

                        ``(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) <<NOTE: Deadline.>>  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) <<NOTE: Determination.>>  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

    [[Page 136 STAT. 1960]]

                    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) <<NOTE: Applicability.>> 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) <<NOTE: Definition.>>  Dealer.--For purposes of this
            subsection, the term `dealer' means a person licensed by a
            State, the District of Columbia, the Commonwealth of Puerto
            Rico, any other territory or possession of the United States, an
            Indian tribal government, or any Alaska Native Corporation (as
            defined in section 3 of the Alaska Native Claims Settlement Act
            (43 U.S.C. 1602(m)) to engage in the sale of vehicles.
                ``(9) <<NOTE: Definition.>>  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, <<NOTE: 26 USC 30D.>> 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

    [[Page 136 STAT. 1961]]

                              (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 <<NOTE: 26 USC 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 <<NOTE: 26 USC 27 prec.>>  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) <<NOTE: Effective dates. Time periods. 26 USC 30D note.>>
    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) <<NOTE: Applicability. 26 USC 30D note.>> 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).

    [[Page 136 STAT. 1962]]

                (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) <<NOTE: Applicability. Effective dates. 26 USC 30D
    note.>> 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. <<NOTE: 26 USC 25E.>>  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) <<NOTE: Definition.>>  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.

    [[Page 136 STAT. 1963]]

        ``(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:

    [[Page 136 STAT. 1964]]

        ``(f) <<NOTE: Applicability.>>  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 <<NOTE: 26 USC 21 prec.>>  is amended by
    inserting after the item relating to section 25D the following new item:

    ``Sec. 25E. Previously-owned clean vehicles.''.

        (e) <<NOTE: Applicability. 26 USC 25E note.>>  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. <<NOTE: 26 USC 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) <<NOTE: Definition.>>  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

    [[Page 136 STAT. 1965]]

                        ``(B) in the case of a vehicle not described in
                    subparagraph (A), $40,000.

        ``(c) <<NOTE: Definition.>>  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) <<NOTE: Applicability.>> 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) <<NOTE: Determination.>>  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, <<NOTE: 26 USC 38.>>  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

    [[Page 136 STAT. 1966]]

                        (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, <<NOTE: 26 USC 6213.>>  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, <<NOTE: 26 USC 38 prec.>>  is amended by
            adding at the end the following new item:

    ``Sec. 45W. Qualified commercial clean vehicle credit.''.

        (c) <<NOTE: 26 USC 45W note.>>  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) <<NOTE: Definition.>> 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--

    [[Page 136 STAT. 1967]]

                                        ``(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 <<NOTE: 26 USC
    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) <<NOTE: Definition.>>  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.-- <<NOTE: Definition.>> 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.

    [[Page 136 STAT. 1968]]

                        ``(C) Project requirements.--A project meets the
                    requirements of this subparagraph if it is one of the
                    following:
                              ``(i) <<NOTE: Time
                          period. Publication. Guidelines.>> A project the
                          construction of which begins prior to the date
                          that is 60 days after the Secretary publishes
                          guidance with respect to the requirements of
                          paragraphs (2)(A) and (3).
                              ``(ii) A project which satisfies the
                          requirements of paragraphs (2)(A) and (3).
                ``(2) Prevailing wage requirements.--
                        ``(A) In general.--The requirements described in
                    this subparagraph with respect to any qualified
                    alternative fuel vehicle refueling project are that the
                    taxpayer shall ensure that any laborers and mechanics
                    employed by the taxpayer or any contractor or
                    subcontractor in the construction of any qualified
                    alternative fuel vehicle refueling property which is
                    part of such project shall be paid wages at rates not
                    less than the prevailing rates for construction,
                    alteration, or repair of a similar character in the
                    locality in which such project is located as most
                    recently determined by the Secretary of Labor, in
                    accordance with subchapter IV of chapter 31 of title 40,
                    United States Code.
                        ``(B) <<NOTE: Applicability.>> Correction and
                    penalty related to failure to satisfy wage
                    requirements.--Rules similar to the rules of section
                    45(b)(7)(B) shall apply.
                ``(3) <<NOTE: Applicability.>>  Apprenticeship
            requirements.--Rules similar to the rules of section 45(b)(8)
            shall apply.

            ``(4) <<NOTE: Determination. Requirements. Records.>> 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), <<NOTE: 26 USC 30C.>>  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) <<NOTE: Definitions.>>  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) <<NOTE: Applicability. 26 USC 30C note.>>  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.

    [[Page 136 STAT. 1969]]

                (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 <<NOTE: 26 USC 48C.>>  is
    amended by redesignating subsection (e) as subsection (f) and by
    inserting after subsection (d) the following new subsection:

        ``(e) Additional Allocations.--
                ``(1) <<NOTE: Deadline.>>  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) <<NOTE: Time period.>>  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) <<NOTE: Notification.>>  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) <<NOTE: Determination.>> 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) <<NOTE: Determination.>>  Base rate.--For
                    purposes of allocations under this subsection, the
                    amount of the credit determined under

    [[Page 136 STAT. 1970]]

                    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.--
                    <<NOTE: Applicability.>> Rules similar to the rules of
                    section 45(b)(7)(B) shall apply.
                ``(6) <<NOTE: Applicability.>>  Apprenticeship
            requirements.--Rules similar to the rules of section 45(b)(8)
            shall apply.
                ``(7) <<NOTE: Certification. Public information.>>
            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) <<NOTE: 26 USC 48C.>>  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:

    [[Page 136 STAT. 1971]]

                                        ``(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) <<NOTE: 26 USC 48C.>>  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) <<NOTE: 26 USC 48C note.>>  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. <<NOTE: 26 USC 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

    [[Page 136 STAT. 1972]]

            determined under subsection (b) with respect to each eligible
            component which is--
                        ``(A) produced by the taxpayer, and
                        ``(B) during the taxable year, sold by such taxpayer
                    to an unrelated person.
                ``(2) Production and sale must be in trade or business.--Any
            eligible component produced and sold by the taxpayer shall be
            taken into account only if the production and sale described in
            paragraph (1) is in a trade or business of the taxpayer.
                ``(3) Unrelated person.--
                        ``(A) In general.--For purposes of this subsection,
                    a taxpayer shall be treated as selling components to an
                    unrelated person if such component is sold to such
                    person by a person related to the taxpayer.
                        ``(B) Election.--
                              ``(i) In general.--At the election of the
                          taxpayer (in such form and manner as the Secretary
                          may prescribe), a sale of components by such
                          taxpayer to a related person shall be deemed to
                          have been made to an unrelated person.
                              ``(ii) Requirement.--As a condition of, and
                          prior to, any election described in clause (i),
                          the Secretary may require such information or
                          registration as the Secretary deems necessary for
                          purposes of preventing duplication, fraud, or any
                          improper or excessive amount determined under
                          paragraph (1).

        ``(b) Credit Amount.--
                ``(1) In general.--Subject to paragraph (3), the amount
            determined under this subsection with respect to any eligible
            component, including any eligible component it incorporates,
            shall be equal to--
                        ``(A) in the case of a thin film photovoltaic cell
                    or a crystalline photovoltaic cell, an amount equal to
                    the product of--
                              ``(i) 4 cents, multiplied by
                              ``(ii) the capacity of such cell (expressed on
                          a per direct current watt basis),
                        ``(B) in the case of a photovoltaic wafer, $12 per
                    square meter,
                        ``(C) in the case of solar grade polysilicon, $3 per
                    kilogram,
                        ``(D) in the case of a polymeric backsheet, 40 cents
                    per square meter,
                        ``(E) in the case of a solar module, an amount equal
                    to the product of--
                              ``(i) 7 cents, multiplied by
                              ``(ii) the capacity of such module (expressed
                          on a per direct current watt basis),
                        ``(F) in the case of a wind energy component--
                              ``(i) if such component is a related offshore
                          wind vessel, an amount equal to 10 percent of the
                          sales price of such vessel, and
                              ``(ii) if such component is not described in
                          clause (i), an amount equal to the product of--

    [[Page 136 STAT. 1973]]

                                        ``(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) <<NOTE: Time periods.>>  Phase out.--
                        ``(A) <<NOTE: Effective date.>> 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

    [[Page 136 STAT. 1974]]

                    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) <<NOTE: Determination.>>  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) <<NOTE: Definition.>> 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

    [[Page 136 STAT. 1975]]

                    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.

    [[Page 136 STAT. 1976]]

                              ``(ii) Photovoltaic cells.
                              ``(iii) Photovoltaic wafers.
                              ``(iv) Solar grade polysilicon.
                              ``(v) Torque tubes or structural fasteners.
                              ``(vi) Polymeric backsheets.
                        ``(B) Associated definitions.--
                              ``(i) Photovoltaic cell.--The term
                          `photovoltaic cell' means the smallest
                          semiconductor element of a solar module which
                          performs the immediate conversion of light into
                          electricity.
                              ``(ii) Photovoltaic wafer.--The term
                          `photovoltaic wafer' means a thin slice, sheet, or
                          layer of semiconductor material of at least 240
                          square centimeters--
                                        ``(I) produced by a single
                                    manufacturer either--
                                                ``(aa) directly from molten
                                            or evaporated solar grade
                                            polysilicon or deposition of
                                            solar grade thin film
                                            semiconductor photon absorber
                                            layer, or
                                                ``(bb) through formation of
                                            an ingot from molten polysilicon
                                            and subsequent slicing, and
                                        ``(II) which comprises the substrate
                                    or absorber layer of one or more
                                    photovoltaic cells.
                              ``(iii) Polymeric backsheet.--The term
                          `polymeric backsheet' means a sheet on the back of
                          a solar module which acts as an electric insulator
                          and protects the inner components of such module
                          from the surrounding environment.
                              ``(iv) Solar grade polysilicon.--The term
                          `solar grade polysilicon' means silicon which is--
                                        ``(I) suitable for use in
                                    photovoltaic manufacturing, and
                                        ``(II) purified to a minimum purity
                                    of 99.999999 percent silicon by mass.
                              ``(v) Solar module.--The term `solar module'
                          means the connection and lamination of
                          photovoltaic cells into an environmentally
                          protected final assembly which is--
                                        ``(I) suitable to generate
                                    electricity when exposed to sunlight,
                                    and
                                        ``(II) ready for installation
                                    without an additional manufacturing
                                    process.
                              ``(vi) Solar tracker.--The term `solar
                          tracker' means a mechanical system that moves
                          solar modules according to the position of the sun
                          and to increase energy output.
                              ``(vii) Solar tracker components.--
                                        ``(I) Torque tube.--The term `torque
                                    tube' means a structural steel support
                                    element (including longitudinal purlins)
                                    which--
                                                ``(aa) is part of a solar
                                            tracker,
                                                ``(bb) is of any cross-
                                            sectional shape,
                                                ``(cc) may be assembled from
                                            individually manufactured
                                            segments,
                                                ``(dd) spans longitudinally
                                            between foundation posts,

    [[Page 136 STAT. 1977]]

                                                ``(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

    [[Page 136 STAT. 1978]]

                          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

    [[Page 136 STAT. 1979]]

                              ``(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,

    [[Page 136 STAT. 1980]]

                              ``(ii) converted to neodymium oxide which is
                          purified to a minimum purity of 99.5 percent
                          neodymium oxide by mass
                              ``(iii) purified to a minimum purity of 99.9
                          percent neodymium by mass.
                        ``(S) Nickel.--Nickel which is--
                              ``(i) converted to nickel sulphate, or
                              ``(ii) purified to a minimum purity of 99
                          percent nickel by mass.
                        ``(T) Niobium.--Niobium which is--
                              ``(i) converted to ferronibium, or
                              ``(ii) purified to a minimum purity of 99
                          percent niobium by mass.
                        ``(U) Tellurium.--Tellurium which is--
                              ``(i) converted to cadmium telluride, or
                              ``(ii) purified to a minimum purity of 99
                          percent tellurium by mass.
                        ``(V) Tin.--Tin which is purified to low alpha
                    emitting tin which--
                              ``(i) has a purity of greater than 99.99
                          percent by mass, and
                              ``(ii) possesses an alpha emission rate of not
                          greater than 0.01 counts per hour per centimeter
                          square.
                        ``(W) Tungsten.--Tungsten which is converted to
                    ammonium paratungstate or ferrotungsten.
                        ``(X) Vanadium.--Vanadium which is converted to
                    ferrovanadium or vanadium pentoxide.
                        ``(Y) Yttrium.--Yttrium which is--
                              ``(i) converted to yttrium oxide which is
                          purified to a minimum purity of 99.999 percent
                          yttrium oxide by mass, or
                              ``(ii) purified to a minimum purity of 99.9
                          percent yttrium by mass.
                        ``(Z) Other minerals.--Any of the following
                    minerals, provided that such mineral is purified to a
                    minimum purity of 99 percent by mass:
                              ``(i) Arsenic.
                              ``(ii) Bismuth.
                              ``(iii) Erbium.
                              ``(iv) Gallium.
                              ``(v) Hafnium.
                              ``(vi) Holmium.
                              ``(vii) Iridium.
                              ``(viii) Lanthanum.
                              ``(ix) Lutetium.
                              ``(x) Magnesium.
                              ``(xi) Palladium.
                              ``(xii) Platinum.
                              ``(xiii) Praseodymium.
                              ``(xiv) Rhodium.
                              ``(xv) Rubidium.
                              ``(xvi) Ruthenium.
                              ``(xvii) Samarium.
                              ``(xviii) Scandium.
                              ``(xix) Tantalum.
                              ``(xx) Terbium.
                              ``(xxi) Thulium.

    [[Page 136 STAT. 1981]]

                              ``(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) <<NOTE: Regulations. Applicability.>>  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 <<NOTE: 26 USC
            38.>> , 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, <<NOTE: 26 USC 38 prec.>>  is amended by
            adding at the end the following new item:

    ``Sec. 45X. Advanced manufacturing production credit.''.

        (c) <<NOTE: 26 USC 45X note.>>  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.--

    [[Page 136 STAT. 1982]]

                        ``(A) <<NOTE: Effective date.>> 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) <<NOTE: 26 USC
    9507.>>  is amended by striking ``December 31, 1995'' and inserting
    ``December 31, 2032''.

        (c) <<NOTE: 26 USC 4611 note.>>  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. <<NOTE: 26 USC 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) <<NOTE: Time
                          period. Publication. Guidelines.>>  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--

    [[Page 136 STAT. 1983]]

                                        ``(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) <<NOTE: Definition. Effective dates.>>
                    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) <<NOTE: Definition.>>  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
                    CO<INF>2</INF>e 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
                    CO<INF>2</INF>e per KWh.
                        ``(C) Establishment of emissions rates for
                    facilities.--

    [[Page 136 STAT. 1984]]

                              ``(i) <<NOTE: Deadline.>> 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) <<NOTE: Petition. Determination.>>
                          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) <<NOTE: Effective date.>> 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) <<NOTE: Deadline. Determination. Federal Register,
            publication.>> 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) <<NOTE: Definitions.>>  Inflation adjustment factor.--
            The term `inflation adjustment factor' means, with respect to a
            calendar year, a fraction the numerator of which is the GDP
            implicit price deflator for the preceding calendar year and the
            denominator of which is the GDP implicit price deflator for the
            calendar year 1992. The term `GDP implicit price deflator' means
            the most recent revision of the implicit price deflator for the
            gross domestic product as computed and published by the
            Department of Commerce before March 15 of the calendar year.

        ``(d) Credit Phase-out.--
                ``(1) In general.--The amount of the clean electricity
            production credit under subsection (a) for any qualified
            facility the construction of which begins during a calendar year
            described in paragraph (2) shall be equal to the product of--
                        ``(A) the amount of the credit determined under
                    subsection (a) without regard to this subsection,
                    multiplied by
                        ``(B) the phase-out percentage under paragraph (2).

    [[Page 136 STAT. 1985]]

                ``(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) <<NOTE: Definition.>>  Applicable year.--For purposes
            of this subsection, the term `applicable year' means the later
            of--
                        ``(A) <<NOTE: Determination.>>  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) CO<INF>2</INF>e per KWh.--The term `CO<INF>2</INF>e
            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) <<NOTE: Deadline. Determination.>>  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)).

    [[Page 136 STAT. 1986]]

                ``(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) <<NOTE: Definition.>>  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) <<NOTE: Definition.>> 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) <<NOTE: Regulations.>>  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) <<NOTE: Regulations. Applicability.>>  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

    [[Page 136 STAT. 1987]]

                          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 <<NOTE: Notice.>>  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) <<NOTE: Determination.>>  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) <<NOTE: Applicability.>>  Credit reduced for tax-
            exempt bonds.--Rules similar to the rules of section 45(b)(3)
            shall apply.

    [[Page 136 STAT. 1988]]

                ``(9) <<NOTE: Applicability.>>  Wage requirements.--Rules
            similar to the rules of section 45(b)(7) shall apply.
                ``(10) <<NOTE: Applicability.>>  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) <<NOTE: Certification.>> 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) <<NOTE: Applicability.>> 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) <<NOTE: Effective dates.>>  Adjusted
                    percentage.--
                              ``(i) In general.--Subject to subclause (ii),
                          for purposes of subparagraph (B)(iii), the
                          adjusted percentage shall be--
                                        ``(I) in the case of a facility the
                                    construction of which begins before
                                    January 1, 2025, 40 percent,
                                        ``(II) in the case of a facility the
                                    construction of which begins after
                                    December 31, 2024, and before January 1,
                                    2026, 45 percent,
                                        ``(III) in the case of a facility
                                    the construction of which begins after
                                    December 31, 2025, and before January 1,
                                    2027, 50 percent, and
                                        ``(IV) in the case of a facility the
                                    construction of which begins after
                                    December 31, 2026, 55 percent.
                              ``(ii) Offshore wind facility.--For purposes
                          of subparagraph (B)(iii), in the case of a
                          qualified facility which is an offshore wind
                          facility, the adjusted percentage shall be--
                                        ``(I) in the case of a facility the
                                    construction of which begins before
                                    January 1, 2025, 20 percent,

    [[Page 136 STAT. 1989]]

                                        ``(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) <<NOTE: Effective dates. Time periods.>>
                    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.''.

    [[Page 136 STAT. 1990]]

        (b) Conforming Amendments.--
                (1) Section 38(b), as amended by the preceding provisions of
            this Act, <<NOTE: 26 USC 38.>>  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, <<NOTE: 26 USC 38 prec.>>  is amended by
            adding at the end the following new item:

    ``Sec. 45Y. Clean electricity production credit.''.

        (c) <<NOTE: 26 USC 45Y note.>> 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. <<NOTE: 26 USC 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) <<NOTE: Time
                                    period. Publication. Guidelines.>>  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)--

    [[Page 136 STAT. 1991]]

                              ``(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) <<NOTE: Time
                                    period. Publication. Guidelines.>>  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) <<NOTE: Applicability.>>  Domestic content.--
                    Rules similar to the rules of section 48(a)(12) shall
                    apply.

        ``(b) <<NOTE: Definitions.>>  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--

    [[Page 136 STAT. 1992]]

                                        ``(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) <<NOTE: Applicability.>>  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.

    [[Page 136 STAT. 1993]]

                ``(4) Qualified interconnection property.--For purposes of
            this paragraph, the term `qualified interconnection property'
            has the meaning given such term in section 48(a)(8)(B).
                ``(5) Coordination with rehabilitation credit.--The
            qualified investment with respect to any qualified facility for
            any taxable year shall not include that portion of the basis of
            any property which is attributable to qualified rehabilitation
            expenditures (as defined in section 47(c)(2)).
                ``(6) Definitions.--For purposes of this subsection, the
            terms `CO2e per KWh' and `greenhouse gas emissions rate' have
            the same meaning given such terms under section 45Y.

        ``(c) Qualified Investment With Respect to Energy Storage
    Technology.--
                ``(1) Qualified investment.--For purposes of subsection (a),
            the qualified investment with respect to energy storage
            technology for any taxable year is the basis of any energy
            storage technology placed in service by the taxpayer during such
            taxable year.
                ``(2) <<NOTE: Definition.>> 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) <<NOTE: Applicability.>> Special Rules.--
                ``(1) Certain progress expenditure rules made applicable.--
            Rules similar to the rules of subsections (c)(4) and (d) of
            section 46 (as in effect on the day before the date of the
            enactment of the Revenue Reconciliation Act of 1990) shall apply
            for purposes of subsection (a).
                ``(2) Special rule for property financed by subsidized
            energy financing or private activity bonds.--Rules similar to
            the rules of section 45(b)(3) shall apply.
                ``(3) Prevailing wage requirements.--Rules similar to the
            rules of section 48(a)(10) shall apply.
                ``(4) Apprenticeship requirements.--Rules similar to the
            rules of section 45(b)(8) shall apply.
                ``(5) Domestic content requirement for elective payment.--In
            the case of a taxpayer making an election under section 6417
            with respect to a credit under this section, rules similar to
            the rules of section 45Y(g)(12) shall apply.

        ``(e) Credit Phase-Out.--
                ``(1) In general.--The amount of the clean electricity
            investment credit under subsection (a) for any qualified
            investment with respect to any qualified facility or energy
            storage technology the construction of which begins during a
            calendar year described in paragraph (2) shall be equal to the
            product of--
                        ``(A) the amount of the credit determined under
                    subsection (a) without regard to this subsection,
                    multiplied by
                        ``(B) the phase-out percentage under paragraph (2).
                ``(2) Phase-out percentage.--The phase-out percentage under
            this paragraph is equal to--
                        ``(A) for any qualified investment with respect to
                    any qualified facility or energy storage technology the
                    construction of which begins during the first calendar
                    year following the applicable year, 100 percent,

    [[Page 136 STAT. 1994]]

                        ``(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) <<NOTE: Definition.>>  Applicable year.--For purposes
            of this subsection, the term `applicable year' has the same
            meaning given such term in section 45Y(d)(3).

        ``(f) <<NOTE: Definition.>>  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 CO<INF>2</INF>e 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) <<NOTE: Definitions.>>  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--

    [[Page 136 STAT. 1995]]

                                        ``(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) <<NOTE: Deadline.>>  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 <<NOTE: Procedures.>>  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.

    [[Page 136 STAT. 1996]]

                        ``(C) <<NOTE: Time period.>>  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) <<NOTE: Regulations. Guidelines.>>  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)). <<NOTE: Determination.>>  The period and percentage of
            such recapture shall be determined under rules similar to the
            rules of section 50(a). To the extent <<NOTE: Time period.>>
            provided by the Secretary, such recapture may not apply with
            respect to any property if, within 12 months after the date the
            taxpayer becomes aware (or reasonably should have become aware)
            of such property ceasing to be property eligible for such
            increase, the eligibility of such property for such increase is
            restored. The preceding sentence shall not apply more than once
            with respect to any facility.

        ``(i) <<NOTE: Deadline.>>  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, <<NOTE: 26 USC 46.>>  is amended--

    [[Page 136 STAT. 1997]]

                        (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, <<NOTE: 26 USC 49.>>  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, <<NOTE: 26 USC 50.>>  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, <<NOTE: 26 USC 46 prec.>>  is amended by
            inserting after the item relating to section 48D the following
            new item:

    ``48E. Clean electricity investment credit.''.

        (c) <<NOTE: 26 USC 48E note.>>  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) <<NOTE: 26 USC 168.>>  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) <<NOTE: 26 USC 168 note.>>  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. <<NOTE: 26 USC 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--

    [[Page 136 STAT. 1998]]

                        ``(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) <<NOTE: Definition.>>  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) <<NOTE: Determinations.>>  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--

    [[Page 136 STAT. 1999]]

                                                ``(aa) 50 kilograms of
                                            CO<INF>2</INF>e per mmBTU, minus
                                                ``(bb) the emissions rate
                                            for such fuel, divided by
                                        ``(II) 50 kilograms of
                                    CO<INF>2</INF>e per mmBTU.
                        ``(B) Establishment of emissions rate.--
                              ``(i) <<NOTE: Publication.>>  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 CO<INF>2</INF>e
                          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 CO<INF>2</INF>e per mmBTU.
                              ``(ii) Exception.--In the case of an emissions
                          rate that is between 2.5 kilograms of
                          CO<INF>2</INF>e per mmBTU and -2.5 kilograms of
                          CO<INF>2</INF>e 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.--

    [[Page 136 STAT. 2000]]

                ``(1) <<NOTE: Effective date.>>  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) <<NOTE: Determination. Publication.>>  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) CO<INF>2</INF>e.--The term `CO<INF>2</INF>e' 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 CO<INF>2</INF>e 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

    [[Page 136 STAT. 2001]]

                                        ``(III) fatty acid esters.
                              ``(ii) Biomass.--The term `biomass' has the
                          same meaning given such term in section 45K(c)(3).

        ``(e) <<NOTE: Deadline. Determination.>>  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) <<NOTE: Applicability.>>  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) <<NOTE: Certification.>>
                                            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) <<NOTE: Definition.>>  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.

    [[Page 136 STAT. 2002]]

                ``(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, <<NOTE: 26 USC 25.>>  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, <<NOTE: 26 USC 38 prec.>>  is amended by
            adding at the end the following new item:

    ``Sec. 45Z. Clean fuel production credit.''.

    [[Page 136 STAT. 2003]]

                (5) Section 4101(a)(1), as amended by the preceding
            provisions of this Act, <<NOTE: 26 USC 4101.>>  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) <<NOTE: 26 USC 45Z note.>>  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. <<NOTE: 26 USC 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) <<NOTE: Definition.>>  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.

    [[Page 136 STAT. 2004]]

                ``(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) <<NOTE: Definition. Effective dates.>>  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,

    [[Page 136 STAT. 2005]]

                    but only with respect to the credit described in
                    subsection (b)(5).
                        ``(C) Election with respect to credit for carbon
                    oxide sequestration.--If a taxpayer other than an entity
                    described in subparagraph (A) makes an election under
                    this subparagraph with respect to any taxable year in
                    which such taxpayer has, after December 31, 2022, placed
                    in service carbon capture equipment at a qualified
                    facility (as defined in section 45Q(d)), such taxpayer
                    shall be treated as an applicable entity for purposes of
                    this section for such taxable year, but only with
                    respect to the credit described in subsection (b)(3).
                        ``(D) Election with respect to advanced
                    manufacturing production credit.--
                              ``(i) In general.--If a taxpayer other than an
                          entity described in subparagraph (A) makes an
                          election under this subparagraph with respect to
                          any taxable year in which such taxpayer has, after
                          December 31, 2022, produced eligible components
                          (as defined in section 45X(c)(1)), such taxpayer
                          shall be treated as an applicable entity for
                          purposes of this section for such taxable year,
                          but only with respect to the credit described in
                          subsection (b)(7).
                              ``(ii) Limitation.--
                                        ``(I) In general.--Except as
                                    provided in subclause (II), if a
                                    taxpayer makes an election under this
                                    subparagraph with respect to any taxable
                                    year, such taxpayer shall be treated as
                                    having made such election for each of
                                    the 4 succeeding taxable years ending
                                    before January 1, 2033.
                                        ``(II) Exception.--A taxpayer may
                                    elect to revoke the application of the
                                    election made under this subparagraph to
                                    any taxable year described in subclause
                                    (I). Any such election, if made, shall
                                    apply to the applicable year specified
                                    in such election and each subsequent
                                    taxable year within the period described
                                    in subclause (I). Any election under
                                    this subclause may not be subsequently
                                    revoked.
                              ``(iii) Prohibition on transfer.--For any
                          taxable year described in clause (ii)(I), no
                          election may be made by the taxpayer under section
                          6418(a) for such taxable year with respect to
                          eligible components for purposes of the credit
                          described in subsection (b)(7).
                        ``(E) Other rules.--
                              ``(i) In general.--An election made under
                          subparagraph (B), (C), or (D) shall be made at
                          such time and in such manner as the Secretary may
                          provide.
                              ``(ii) <<NOTE: Effective date.>>
                          Limitation.--No election may be made under
                          subparagraph (B), (C), or (D) with respect to any
                          taxable year beginning after December 31, 2032.
                ``(2) <<NOTE: Determination.>>  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

    [[Page 136 STAT. 2006]]

                        ``(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) <<NOTE: Applicability.>>  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) <<NOTE: Applicability.>>  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) <<NOTE: Applicability.>>  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) <<NOTE: Time period.>>
                                    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).

    [[Page 136 STAT. 2007]]

                              ``(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. <<NOTE: Applicability.>>  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) <<NOTE: Applicability. Time period.>>  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, <<NOTE: Applicability.>>  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) <<NOTE: Applicability.>>  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

    [[Page 136 STAT. 2008]]

                              ``(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) <<NOTE: Claims.>>  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) <<NOTE: Determination.>>  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) <<NOTE: Determination.>>  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.

    [[Page 136 STAT. 2009]]

        ``(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) <<NOTE: Determination.>>  Mirror Code Possessions.--In the
    case of any possession of the United States with a mirror code tax
    system (as defined in section 24(k)), this section shall not be treated
    as part of the income tax laws of the United States for purposes of
    determining the income tax law of such possession unless such possession
    elects to have this section be so treated.

        ``(g) <<NOTE: Applicability.>>  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) <<NOTE: Guidelines.>>  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. <<NOTE: 26 USC 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) <<NOTE: Requirement.>>  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.

    [[Page 136 STAT. 2010]]

                ``(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) <<NOTE: Deadline. Time period.>>  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--

    [[Page 136 STAT. 2011]]

                              ``(i) separately with respect to each facility
                          for which such credit is determined, and
                              ``(ii) <<NOTE: Time periods. Effective
                          dates.>>  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) <<NOTE: Determination.>>  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) <<NOTE: Determination.>>  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) <<NOTE: Definition.>>  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

    [[Page 136 STAT. 2012]]

            any portion of an eligible credit described in clauses (ix)
            through (xi) of subsection (f)(1)(A)--
                        ``(A) <<NOTE: Applicability.>>  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) <<NOTE: Notices.>>  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) <<NOTE: Guidelines.>>  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) <<NOTE: 26 USC 50.>>  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.''.

    [[Page 136 STAT. 2013]]

        (e) Clerical Amendment.--The table of sections for subchapter B of
    chapter 65 <<NOTE: 26 USC 6411 prec.>>  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) <<NOTE: Effective date. Time periods. 26 USC 6417 note.>>
    Gross-up of Direct Spending.--Beginning in fiscal year 2023 and each
    fiscal year thereafter, the portion of any payment made to a taxpayer
    pursuant to an election under section 6417 of the Internal Revenue Code
    of 1986, or any amount treated as a payment which is made by the
    taxpayer under subsection (a) of such section, that is direct spending
    shall be increased by 6.0445 percent.

        (g) <<NOTE: 26 USC 6417 note.>>  Effective Date.--The amendments
    made by this section shall apply to taxable years beginning after
    December 31, 2022.
    SEC. 13802. <<NOTE: Effective date.>>  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) <<NOTE: 26 USC 4121.>>  In General.--Section 4121 is amended by
    striking subsection (e).

        (b) <<NOTE: 26 USC 4121 note.>>  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) <<NOTE: Effective date.>>
                                    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

    [[Page 136 STAT. 2014]]

                        (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) <<NOTE: 26 USC 3111.>>  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) <<NOTE: 26 USC 41 note.>>  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) <<NOTE: 26 USC 164 note.>>  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) <<NOTE: 26 USC 461 note.>>  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:

    [[Page 136 STAT. 2015]]

                        ``(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) <<NOTE: 26 USC 164 note.>>  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. <<NOTE: 7 USC 6936 note.>>  DEFINITION OF SECRETARY.

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

                            Subtitle B--Conservation

    SEC. 21001. ADDITIONAL AGRICULTURAL CONSERVATION INVESTMENTS.

        (a) <<NOTE: Time periods.>>  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;

    [[Page 136 STAT. 2016]]

                              (ii) <<NOTE: Applicability.>>  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) <<NOTE: Determination.>>  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

    [[Page 136 STAT. 2017]]

                          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) <<NOTE: Time period.>>  under which any payment
                    could be outlaid or funds disbursed after September 30,
                    2031; or
                (2) use any other funds available to the Secretary to
            satisfy obligations initially made under this section.

        (c) Conforming Amendments.--
                (1) Section 1240B of the Food Security Act of 1985 (16
            U.S.C. 3839aa-2) is amended--
                        (A) in subsection (a), by striking ``2023'' and
                    inserting ``2031''; and
                        (B) in subsection (f)(2)(B)--
                              (i) in the subparagraph heading, by striking
                          ``2023'' and inserting ``2031''; and
                              (ii) by striking ``2023'' and inserting
                          ``2031''.
                (2) Section 1240H of the Food Security Act of 1985 (16
            U.S.C. 3839aa-8) is amended by striking ``2023'' each place it
            appears and inserting ``2031''.
                (3) Section 1240J(a) of the Food Security Act of 1985 (16
            U.S.C. 3839aa-22(a)) is amended, in the matter preceding
            paragraph (1), by striking ``2023'' and inserting ``2031''.
                (4) Section 1240L(h)(2)(A) of the Food Security Act of 1985
            (16 U.S.C. 3839aa-24(h)(2)(A)) is amended by striking ``2023''
            and inserting ``2031''.
                (5) Section 1241 of the Food Security Act of 1985 (16 U.S.C.
            3841) is amended--
                        (A) in subsection (a)--
                              (i) in the matter preceding paragraph (1), by
                          striking ``2023'' and inserting ``2031'';
                              (ii) in paragraph (2)(F), by striking ``2023''
                          and inserting ``2031''; and
                              (iii) in paragraph (3), by striking ``fiscal
                          year 2023'' each place it appears and inserting
                          ``each of fiscal years 2023 through 2031'';
                        (B) in subsection (b), by striking ``2023'' and
                    inserting ``2031''; and
                        (C) in subsection (h)--
                              (i) in paragraph (1)(B), in the subparagraph
                          heading, by striking ``2023'' and inserting
                          ``2031''; and
                              (ii) by striking ``2023'' each place it
                          appears and inserting ``2031''.
                (6) Section 1244(n)(3)(A) of the Food Security Act of 1985
            (16 U.S.C. 3844(n)(3)(A)) is amended by striking ``2023'' and
            inserting ``2031''.
                (7) Section 1271D(a) of the Food Security Act of 1985 (16
            U.S.C. 3871d(a)) is amended by striking ``2023'' and inserting
            ``2031''.

    [[Page 136 STAT. 2018]]

    SEC. 21002. <<NOTE: 7 USC 6936 note.>>  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) <<NOTE: Time periods.>>  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,

    [[Page 136 STAT. 2019]]

            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) <<NOTE: Time period.>>  Limitation.--The Secretary
            shall not enter into any loan agreement pursuant this subsection
            that could result in disbursements after September 30, 2031.
                ``(3) <<NOTE: Criteria. Waiver.>>  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) <<NOTE: Time period.>>  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.

    [[Page 136 STAT. 2020]]

    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) <<NOTE: Grants.>>  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) <<NOTE: Determination.>>  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,

    [[Page 136 STAT. 2021]]

            the cost of loans and modifications, and other financial
            assistance to achieve the greatest reduction in carbon dioxide,
            methane, and nitrous oxide emissions associated with rural
            electric systems through the purchase of renewable energy,
            renewable energy systems, zero-emission systems, and carbon
            capture and storage systems, to deploy such systems, or to make
            energy efficiency improvements to electric generation and
            transmission systems of the eligible entity after the date of
            enactment of this subsection.
                ``(2) Limitation.--No eligible entity may receive an amount
            equal to more than 10 percent of the total amount made available
            by this subsection.
                ``(3) Requirement.--The amount of a grant under this
            subsection shall be not more than 25 percent of the total
            project costs of the eligible entity carrying out a project
            using a grant under this subsection.
                ``(4) Prohibition.--Nothing in this subsection shall be
            interpreted to authorize funds of the Commodity Credit
            Corporation for activities under this subsection if such funds
            are not expressly authorized or currently expended for such
            purposes.
                ``(5) <<NOTE: Time period.>>  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). <<NOTE: Determination.>>  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:

    [[Page 136 STAT. 2022]]

    ``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) <<NOTE: Time period.>>  Discrimination Financial Assistance.--
    In addition to amounts otherwise available, there is appropriated to the
    Secretary

    [[Page 136 STAT. 2023]]

    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) <<NOTE: Time period.>>  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.

    [[Page 136 STAT. 2024]]

        (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) <<NOTE: Deadline.>>  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) <<NOTE: Requirement. Contracts.>>  requires a
                    partnership agreement, including a cooperative agreement
                    or mutual interest agreement; and
                        (C) is subject to a non-Federal cost-share
                    requirement.

        (e) Definitions.--In this section:
                (1) Decommission.--The term ``decommission'' means, with
            respect to a road--
                        (A) reestablishing native vegetation on the road;
                        (B) restoring any natural drainage, watershed
                    function, or other ecological processes that were
                    disrupted or adversely impacted by the road by removing
                    or hydrologically disconnecting the road prism and
                    reestablishing stable slope contours; and
                        (C) effectively blocking the road to vehicular
                    traffic, where feasible.
                (2) Ecological integrity.--The term ``ecological integrity''
            has the meaning given the term in section 219.19 of title 36,
            Code of Federal Regulations (as in effect on the date of
            enactment of this Act).
                (3) Hazardous fuels reduction project.--The term ``hazardous
            fuels reduction project'' means an activity, including the use
            of prescribed fire, to protect structures and communities from
            wildfire that is carried out on National Forest System land.

    [[Page 136 STAT. 2025]]

                (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

    [[Page 136 STAT. 2026]]

                (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) <<NOTE: Waiver. Contracts.>>  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) <<NOTE: Time periods.>>  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

    [[Page 136 STAT. 2027]]

                (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

    [[Page 136 STAT. 2028]]

    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) <<NOTE: Notice. Requirements. Determination. Effective date.>>
    Implementation.--The Secretary shall have the authority to establish by
    notice any requirements that the Secretary determines are necessary for
    timely and effective implementation of the program and expenditure of
    funds appropriated, which requirements shall take effect upon issuance.

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

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

        (a) In General.--In addition to amounts otherwise available, there
    is appropriated to the National Oceanic and Atmospheric Administration
    for fiscal year 2022, out of any money in the Treasury not otherwise
    appropriated, $2,600,000,000, to remain available until September 30,
    2026, to provide funding through direct expenditure, contracts, grants,
    cooperative agreements, or technical assistance to coastal states (as
    defined in paragraph (4) of section 304 of the Coastal Zone Management
    Act of 1972 (16 U.S.C. 1453(4))), the District of Columbia, Tribal
    Governments, nonprofit organizations, local governments, and
    institutions of higher education (as defined in subsection (a) of
    section 101 of the Higher Education Act of 1965 (20 U.S.C. 1001(a))),
    for the conservation, restoration, and protection of coastal and marine
    habitats, resources, Pacific salmon and other marine fisheries, to
    enable coastal communities to prepare for extreme storms and other
    changing climate conditions, and for projects that support natural
    resources that sustain coastal and marine resource dependent

    [[Page 136 STAT. 2029]]

    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

    [[Page 136 STAT. 2030]]

    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. <<NOTE: 49 USC 44504 note.>>  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

    [[Page 136 STAT. 2031]]

            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) <<NOTE: Deadline.>>  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

    [[Page 136 STAT. 2032]]

            feedstock, transportation of feedstock to fuel production
            facilities, conversion of feedstock to fuel, transportation and
            distribution of fuel, and fuel combustion in an aircraft engine,
            as well as from induced land-use change values.
                (5) Low-emission aviation technologies.--The term ``low-
            emission aviation technologies'' means technologies, produced in
            the United States, that significantly--
                        (A) improve aircraft fuel efficiency;
                        (B) increase utilization of sustainable aviation
                    fuel; or
                        (C) reduce greenhouse gas emissions produced during
                    operation of civil aircraft.
                (6) Secretary.--The term ``Secretary'' means the Secretary
            of Transportation.
                (7) Sustainable aviation fuel.--The term ``sustainable
            aviation fuel'' means liquid fuel, produced in the United
            States, that--
                        (A) consists of synthesized hydrocarbons;
                        (B) meets the requirements of--
                              (i) ASTM International Standard D7566; or
                              (ii) the co-processing provisions of ASTM
                          International Standard D1655, Annex A1 (or such
                          successor standard);
                        (C) is derived from biomass (in a similar manner as
                    such term is defined in section 45K(c)(3) of the
                    Internal Revenue Code of 1986), waste streams, renewable
                    energy sources, or gaseous carbon oxides;
                        (D) is not derived from palm fatty acid distillates;
                    and
                        (E) <<NOTE: Determinations.>>  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).

    [[Page 136 STAT. 2033]]

               TITLE V--COMMITTEE ON ENERGY AND NATURAL RESOURCES

                               Subtitle A--Energy

                           PART 1--GENERAL PROVISIONS

    SEC. 50111. <<NOTE: 42 USC 17113b note.>>  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. <<NOTE: 42 USC 18795.>>  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) <<NOTE: Effective date.>>  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) <<NOTE: Deadline.>>  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

    [[Page 136 STAT. 2034]]

                    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) <<NOTE: Grants. Plan.>>  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) <<NOTE: Procedures. Determination.>>  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) <<NOTE: Certification.>>  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) <<NOTE: Effective date. Deadline.>>  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--

    [[Page 136 STAT. 2035]]

                              (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

    [[Page 136 STAT. 2036]]

                              (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) <<NOTE: Publication.>>  Data access guidelines.--The
            Secretary shall develop and publish guidelines for States
            relating to residential electric and natural gas energy data
            sharing.
                (6) Exemption.--Activities carried out by a State energy
            office using a grant awarded pursuant to this section shall not
            be subject to the expenditure prohibitions and limitations
            described in section 420.18 of title 10, Code of Federal
            Regulations.
                (7) Prohibition on combining rebates.--A rebate provided by
            a State energy office under a HOMES rebate program may not be
            combined with any other Federal grant or rebate, including a
            rebate provided under a high-efficiency electric home rebate
            program (as defined in section 50122(d)), for the same single
            upgrade.

        (d) Definitions.--In this section:
                (1) Disadvantaged community.--The term ``disadvantaged
            community'' means a community that the Secretary determines,
            based on appropriate data, indices, and screening tools, is
            economically, socially, or environmentally disadvantaged.
                (2) HOMES rebate program.--The term ``HOMES rebate program''
            means a Home Owner Managing Energy Savings rebate program
            established by a State energy office as part of an approved
            State energy conservation plan under the State Energy Program.
                (3) Low- or moderate-income household.--The term ``low- or
            moderate-income household'' means an individual or family the
            total annual income of which is less than 80 percent of the
            median income of the area in which the individual or family
            resides, as reported by the Department of Housing and Urban
            Development, including an individual or family that has
            demonstrated eligibility for another Federal program with income
            restrictions equal to or below 80 percent of area median income.
    SEC. 50122. <<NOTE: 42 USC 18795a.>>  HIGH-EFFICIENCY ELECTRIC
                                HOME REBATE PROGRAM.

        (a) Appropriations.--

    [[Page 136 STAT. 2037]]

                (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) <<NOTE: Effective date.>>  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) <<NOTE: Deadline.>>  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) <<NOTE: Plans.>>  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) <<NOTE: Verification.>>  a plan to verify the income
            eligibility of eligible entities seeking a rebate for a
            qualified electrification project;

    [[Page 136 STAT. 2038]]

                (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) <<NOTE: Grants.>>  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

    [[Page 136 STAT. 2039]]

                          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) <<NOTE: Determination.>>  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.

    [[Page 136 STAT. 2040]]

                (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) <<NOTE: Determination.>>  a governmental,
                    commercial, or nonprofit entity, as determined by the
                    Secretary, carrying out a qualified electrification
                    project on behalf of an entity described in subparagraph
                    (A) or (B).
                (2) High-efficiency electric home rebate program.--The term
            ``high-efficiency electric home rebate program'' means a rebate
            program carried out by a State energy office or Indian Tribe
            pursuant to subsection (c) using a grant received under the
            program.
                (3) Indian tribe.--The term ``Indian Tribe'' has the meaning
            given the term in section 4 of the Indian Self-Determination and
            Education Assistance Act (25 U.S.C. 5304).
                (4) Low- or moderate-income household.--The term ``low- or
            moderate-income household'' means an individual or family the
            total annual income of which is less than 150 percent of the
            median income of the area in which the individual or family
            resides, as reported by the Department of Housing and Urban
            Development, including an individual or family that has
            demonstrated eligibility for another Federal program with income
            restrictions equal to or below 150 percent of area median
            income.
                (5) Program.--The term ``program'' means the program carried
            out by the Secretary under subsection (a)(1).
                (6) Qualified electrification project.--
                        (A) In general.--The term ``qualified
                    electrification project'' means a project that--
                              (i) includes the purchase and installation
                          of--
                                        (I) an electric heat pump water
                                    heater;
                                        (II) an electric heat pump for space
                                    heating and cooling;
                                        (III) an electric stove, cooktop,
                                    range, or oven;
                                        (IV) an electric heat pump clothes
                                    dryer;
                                        (V) an electric load service center;
                                        (VI) insulation;
                                        (VII) air sealing and materials to
                                    improve ventilation; or
                                        (VIII) electric wiring;
                              (ii) with respect to any appliance described
                          in clause (i), the purchase of which is carried
                          out--
                                        (I) as part of new construction;

    [[Page 136 STAT. 2041]]

                                        (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. <<NOTE: 42 USC 18795b.>>  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

    [[Page 136 STAT. 2042]]

                (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) <<NOTE: Grants.>>  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) <<NOTE: Plan.>>  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) <<NOTE: Grants.>>  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) <<NOTE: Plan.>>  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.

    [[Page 136 STAT. 2043]]

    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) <<NOTE: President. Compliance.>>  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

    [[Page 136 STAT. 2044]]

    609.2 of title 10, Code of Federal Regulations)'' before the period at
    the end.
        (f) Source of Payments.--Section 1702(b) of the Energy Policy Act of
    2005 (42 U.S.C. 16512(b)(2)) is amended by adding at the end the
    following:
                ``(3) Source of payments.--The source of a payment received
            from a borrower under subparagraph (A) or (B) of paragraph (2)
            may not be a loan or other debt obligation that is made or
            guaranteed by the Federal Government.''.
    SEC. 50142. ADVANCED TECHNOLOGY VEHICLE MANUFACTURING.

        (a) Appropriation.--In addition to amounts otherwise available,
    there is appropriated to the Secretary for fiscal year 2022, out of any
    money in the Treasury not otherwise appropriated, $3,000,000,000, to
    remain available through September 30, 2028, for the costs of providing
    direct loans under section 136(d) of the Energy Independence and
    Security Act of 2007 (42 U.S.C. 17013(d)):  Provided, That funds
    appropriated by this section may be used for the costs of providing
    direct loans for reequipping, expanding, or establishing a manufacturing
    facility in the United States to produce, or for engineering integration
    performed in the United States of, advanced technology vehicles
    described in subparagraph (C), (D), (E), or (F) of section 136(a)(1) of
    such Act (42 U.S.C. 17013(a)(1)) only if such advanced technology
    vehicles emit, under any possible operational mode or condition, low or
    zero exhaust emissions of greenhouse gases.
        (b) Administrative Costs.--The Secretary shall reserve not more than
    $25,000,000 of amounts made available under subsection (a) for
    administrative costs of providing loans as described in subsection (a).
        (c) Elimination of Loan Program Cap.--Section 136(d)(1) of the
    Energy Independence and Security Act of 2007 (42 U.S.C. 17013(d)(1)) is
    amended by striking ``a total of not more than $25,000,000,000 in''.
    SEC. 50143. DOMESTIC MANUFACTURING CONVERSION GRANTS.

        (a) Appropriation.--In addition to amounts otherwise available,
    there is appropriated to the Secretary for fiscal year 2022, out of any
    money in the Treasury not otherwise appropriated, $2,000,000,000, to
    remain available through September 30, 2031, to provide grants for
    domestic production of efficient hybrid, plug-in electric hybrid, plug-
    in electric drive, and hydrogen fuel cell electric vehicles, in
    accordance with section 712 of the Energy Policy Act of 2005 (42 U.S.C.
    16062).
        (b) <<NOTE: Requirement.>>  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,

    [[Page 136 STAT. 2045]]

    to carry out activities under section 1706 of the Energy Policy Act of
    2005.
        (b) <<NOTE: Time period. Applicability.>>  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. <<NOTE: 42 USC 16517.>>  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) <<NOTE: Plan.>>  a detailed plan describing the
            proposed project;
                ``(2) <<NOTE: Analysis.>>  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) <<NOTE: Requirement. Time period.>>  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,

    [[Page 136 STAT. 2046]]

    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. <<NOTE: 42 USC 18715.>>  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) <<NOTE: Determination.>>  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) <<NOTE: Determination.>>  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. <<NOTE: 42 USC 18715a.>>  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,

    [[Page 136 STAT. 2047]]

    $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) <<NOTE: Requirement. Deadline.>>  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) <<NOTE: Disbursement.>>  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

    [[Page 136 STAT. 2048]]

                    covered transmission project in the area under the
                    jurisdiction of the entity.

        (d) <<NOTE: Deadline.>>  Returning Funds.--If a siting authority
    that receives a grant for an activity described in subsection (b)(1)
    fails to use all grant funds within 2 years of receipt, the siting
    authority shall return to the Secretary any such unused funds.

        (e) Definitions.--In this section:
                (1) Covered transmission project.--The term ``covered
            transmission project'' means a high-voltage interstate or
            offshore electricity transmission line--
                        (A) that is proposed to be constructed and to
                    operate--
                              (i) at a minimum of 275 kilovolts of either
                          alternating-current or direct-current electric
                          energy by an entity; or
                              (ii) offshore and at a minimum of 200
                          kilovolts of either alternating-current or direct-
                          current electric energy by an entity; and
                        (B) for which such entity has applied, or informed a
                    siting authority of such entity's intent to apply, for
                    regulatory approval.
                (2) Siting authority.--The term ``siting authority'' means a
            State, local, or Tribal governmental entity with authority to
            make a final determination regarding the siting, permitting, or
            regulatory status of a covered transmission project that is
            proposed to be located in an area under the jurisdiction of the
            entity.
    SEC. 50153. <<NOTE: 42 USC 18715b.>>  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) <<NOTE: Determination.>>  to conduct planning, modeling,
            and analysis regarding interregional electricity transmission
            and transmission of electricity that is generated by offshore
            wind, taking into account the local, regional, and national
            economic, reliability, resilience, security, public policy, and
            environmental benefits of interregional electricity transmission
            and transmission of electricity that is generated by offshore
            wind, including planning, modeling, and analysis, as the
            Secretary determines appropriate, pertaining to--
                        (A) clean energy integration into the electric grid,
                    including the identification of renewable energy zones;
                        (B) the effects of changes in weather due to climate
                    change on the reliability and resilience of the electric
                    grid;
                        (C) cost allocation methodologies that facilitate
                    the expansion of the bulk power system;

    [[Page 136 STAT. 2049]]

                        (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. <<NOTE: 42 USC 17113a.>>  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) <<NOTE: Determination.>>  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;

    [[Page 136 STAT. 2050]]

                (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) <<NOTE: Requirement.>>  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) <<NOTE: Determination.>>  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;

    [[Page 136 STAT. 2051]]

                (5) $163,791,000 to carry out activities for advanced
            scientific computing research facilities;
                (6) $294,500,000 to carry out activities for basic energy
            sciences projects; and
                (7) $157,813,000 to carry out activities for isotope
            research and development facilities.

        (b) Office of Fossil Energy and Carbon Management.--In addition to
    amounts otherwise available, there is appropriated to the Secretary for
    fiscal year 2022, out of any money in the Treasury not otherwise
    appropriated, $150,000,000, to remain available through September 30,
    2027, to carry out activities for infrastructure and general plant
    projects carried out by the Office of Fossil Energy and Carbon
    Management.
        (c) Office of Nuclear Energy.--In addition to amounts otherwise
    available, there is appropriated to the Secretary for fiscal year 2022,
    out of any money in the Treasury not otherwise appropriated,
    $150,000,000, to remain available through September 30, 2027, to carry
    out activities for infrastructure and general plant projects carried out
    by the Office of Nuclear Energy.
        (d) Office of Energy Efficiency and Renewable Energy.--In addition
    to amounts otherwise available, there is appropriated to the Secretary
    for fiscal year 2022, out of any money in the Treasury not otherwise
    appropriated, $150,000,000, to remain available through September 30,
    2027, to carry out activities for infrastructure and general plant
    projects carried out by the Office of Energy Efficiency and Renewable
    Energy.
    SEC. 50173. AVAILABILITY OF HIGH-ASSAY LOW-ENRICHED URANIUM.

        (a) Appropriations.--In addition to amounts otherwise available,
    there is appropriated to the Secretary of for fiscal year 2022, out of
    any money in the Treasury not otherwise appropriated, to remain
    available through September 30, 2026--
                (1) $100,000,000 to carry out the program elements described
            in subparagraphs (A) through (C) of section 2001(a)(2) of the
            Energy Act of 2020 (42 U.S.C. 16281(a)(2));
                (2) $500,000,000 to carry out the program elements described
            in subparagraphs (D) through (H) of that section; and
                (3) $100,000,000 to carry out activities to support the
            availability of high-assay low-enriched uranium for civilian
            domestic research, development, demonstration, and commercial
            use under section 2001 of the Energy Act of 2020 (42 U.S.C.
            16281).

        (b) Competitive Procedures.--To the maximum extent practicable, the
    Department of Energy shall, in a manner consistent with section 989 of
    the Energy Policy Act of 2005 (42 U.S.C. 16353), use a competitive,
    merit-based review process in carrying out research, development,
    demonstration, and deployment activities under section 2001 of the
    Energy Act of 2020 (42 U.S.C. 16281).
        (c) Administrative Expenses.--The Secretary may use not more than 3
    percent of the amounts appropriated by subsection (a) for administrative
    purposes.

    [[Page 136 STAT. 2052]]

                          Subtitle B--Natural Resources

                           PART 1--GENERAL PROVISIONS

    SEC. 50211. <<NOTE: 43 USC 3006 note.>>  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.

    [[Page 136 STAT. 2053]]

                    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.

    [[Page 136 STAT. 2054]]

                (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:

    [[Page 136 STAT. 2055]]

                ``(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. <<NOTE: 43 USC 1356c.>>  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) <<NOTE: Deadline.>>  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) <<NOTE: Determination.>>  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 136 STAT. 2056]]

                          PART 6--FOSSIL FUEL RESOURCES

    SEC. 50261. <<NOTE: Time period. Effective date.>>  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. <<NOTE: Time periods. Effective dates.>>  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

    [[Page 136 STAT. 2057]]

            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) <<NOTE: Assessment.>>  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) <<NOTE: Regulation.>>  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.--

    [[Page 136 STAT. 2058]]

                ``(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. <<NOTE: 30 USC 1727.>>  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

    [[Page 136 STAT. 2059]]

    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) <<NOTE: Time period.>>  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. <<NOTE: Deadlines.>>  LEASE SALES UNDER THE 2017-2022
                                OUTER CONTINENTAL SHELF LEASING
                                PROGRAM.

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

        (b) Lease Sale 257 Reinstatement.--
                (1) Acceptance of bids.--Not later 30 days after the date of
            enactment of this Act, the Secretary shall, without modification
            or delay--

    [[Page 136 STAT. 2060]]

                        (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. <<NOTE: 43 USC 3006.>>  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

    [[Page 136 STAT. 2061]]

                        (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 <<NOTE: Time periods. Effective dates.>>
    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.

    [[Page 136 STAT. 2062]]

                     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

    [[Page 136 STAT. 2063]]

    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. <<NOTE: 42 USC 7432.>>  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) <<NOTE: Deadline. Grants. Rebates.>>  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) <<NOTE: Determination.>>  the incremental costs of
            replacing an eligible vehicle that is not a zero-emission
            vehicle with a zero-emission vehicle, as determined by the
            Administrator based on the market value of the vehicles;
                ``(2) purchasing, installing, operating, and maintaining
            infrastructure needed to charge, fuel, or maintain zero-emission
            vehicles;
                ``(3) workforce development and training to support the
            maintenance, charging, fueling, and operation of zero-emission
            vehicles; and
                ``(4) planning and technical activities to support the
            adoption and deployment of zero-emission vehicles.

        ``(c) Applications.--To seek an award under this section, an
    eligible recipient or eligible contractor shall submit to the
    Administrator an application at such time, in such manner, and
    containing such information as the Administrator shall prescribe.
        ``(d) Definitions.--For purposes of this section:

    [[Page 136 STAT. 2064]]

                ``(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. <<NOTE: 42 USC 7433.>>  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.

    [[Page 136 STAT. 2065]]

        ``(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:

    [[Page 136 STAT. 2066]]

    ``SEC. 134. <<NOTE: 42 USC 7434.>>  GREENHOUSE GAS REDUCTION FUND.

        ``(a) <<NOTE: Deadlines.>>  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

    [[Page 136 STAT. 2067]]

            support existing public, quasi-public, not-for-profit, or
            nonprofit entities that provide financial assistance to
            qualified projects at the State, local, territorial, or Tribal
            level or in the District of Columbia, including community- and
            low-income-focused lenders and capital providers.

        ``(c) Definitions.--In this section:
                ``(1) Eligible recipient.--The term `eligible recipient'
            means a nonprofit organization that--
                        ``(A) is designed to provide capital, leverage
                    private capital, and provide other forms of financial
                    assistance for the rapid deployment of low- and zero-
                    emission products, technologies, and services;
                        ``(B) does not take deposits other than deposits
                    from repayments and other revenue received from
                    financial assistance provided using grant funds under
                    this section;
                        ``(C) is funded by public or charitable
                    contributions; and
                        ``(D) invests in or finances projects alone or in
                    conjunction with other investors.
                ``(2) Greenhouse gas.--The term `greenhouse gas' means the
            air pollutants carbon dioxide, hydrofluorocarbons, methane,
            nitrous oxide, perfluorocarbons, and sulfur hexafluoride.
                ``(3) Qualified project.--The term `qualified project'
            includes any project, activity, or technology that--
                        ``(A) reduces or avoids greenhouse gas emissions and
                    other forms of air pollution in partnership with, and by
                    leveraging investment from, the private sector; or
                        ``(B) assists communities in the efforts of those
                    communities to reduce or avoid greenhouse gas emissions
                    and other forms of air pollution.
                ``(4) Zero-emission technology.--The term `zero-emission
            technology' means any technology that produces zero emissions
            of--
                        ``(A) any air pollutant that is listed pursuant to
                    section 108(a) (or any precursor to such an air
                    pollutant); and
                        ``(B) any greenhouse gas.''.
    SEC. 60104. DIESEL EMISSIONS REDUCTIONS.

        (a) Goods Movement.--In addition to amounts otherwise available,
    there is appropriated to the Administrator of the Environmental
    Protection Agency for fiscal year 2022, out of any money in the Treasury
    not otherwise appropriated, $60,000,000, to remain available until
    September 30, 2031, for grants, rebates, and loans under section 792 of
    the Energy Policy Act of 2005 (42 U.S.C. 16132) to identify and reduce
    diesel emissions resulting from goods movement facilities, and vehicles
    servicing goods movement facilities, in low-income and disadvantaged
    communities to address the health impacts of such emissions on such
    communities.
        (b) Administrative Costs.--The Administrator of the Environmental
    Protection Agency shall reserve 2 percent of the amounts made available
    under this section for the administrative costs necessary to carry out
    activities pursuant to this section.
    SEC. 60105. FUNDING TO ADDRESS AIR POLLUTION.

        (a) Fenceline Air Monitoring and Screening Air Monitoring.--In
    addition to amounts otherwise available, there is appropriated to the
    Administrator of the Environmental Protection Agency for fiscal year
    2022, out of any money in the Treasury

    [[Page 136 STAT. 2068]]

    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

    [[Page 136 STAT. 2069]]

    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. <<NOTE: 42 USC 7435.>>  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

    [[Page 136 STAT. 2070]]

            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) <<NOTE: Assessment. Deadline.>>  $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.

    [[Page 136 STAT. 2071]]

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

        (a) Appropriations.--
                (1) In general.--In addition to amounts otherwise available,
            there is appropriated to the Administrator of the Environmental
            Protection Agency for fiscal year 2022, out of any money in the
            Treasury not otherwise appropriated, $20,000,000, to remain
            available until September 30, 2026, to carry out subsections (a)
            through (i) and subsection (k) of section 103 of division S of
            Public Law 116-260 (42 U.S.C. 7675).
                (2) Implementation and compliance tools.--In addition to
            amounts otherwise available, there is appropriated to the
            Administrator of the Environmental Protection Agency for fiscal
            year 2022, out of any money in the Treasury not otherwise
            appropriated, $3,500,000, to remain available until September
            30, 2026, to deploy new implementation and compliance tools to
            carry out subsections (a) through (i) and subsection (k) of
            section 103 of division S of Public Law 116-260 (42 U.S.C.
            7675).
                (3) Competitive grants.--In addition to amounts otherwise
            available, there is appropriated to the Administrator of the
            Environmental Protection Agency for fiscal year 2022, out of any
            money in the Treasury not otherwise appropriated, $15,000,000,
            to remain available until September 30, 2026, for competitive
            grants for reclaim and innovative destruction technologies under
            subsections (a) through (i) and subsection (k) of section 103 of
            division S of Public Law 116-260 (42 U.S.C. 7675).

        (b) Administration of Funds.--Of the funds made available pursuant
    to subsection (a)(3), the Administrator of the Environmental Protection
    Agency shall reserve 5 percent for administrative costs necessary to
    carry out activities pursuant to such subsection.
    SEC. 60110. FUNDING FOR ENFORCEMENT TECHNOLOGY AND PUBLIC
                                INFORMATION.

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

    [[Page 136 STAT. 2072]]

    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. <<NOTE: 42 USC 4321 note.>>  ENVIRONMENTAL PRODUCT
                                DECLARATION ASSISTANCE.

        (a) In General.--In addition to amounts otherwise available, there
    is appropriated to the Administrator of the Environmental Protection
    Agency for fiscal year 2022, out of any money in the Treasury not
    otherwise appropriated, $250,000,000, to remain available until
    September 30, 2031, to develop and carry out a program to support the
    development, enhanced standardization and transparency, and reporting
    criteria for environmental product declarations that include
    measurements of the embodied greenhouse gas emissions of the material or
    product associated with all relevant stages of production, use, and
    disposal, and conform with international standards, for construction
    materials and products by--
                (1) providing grants to businesses that manufacture
            construction materials and products for developing and verifying
            environmental product declarations, and to States, Indian
            Tribes, and nonprofit organizations that will support such
            businesses;
                (2) providing technical assistance to businesses that
            manufacture construction materials and products in developing
            and verifying environmental product declarations, and to States,
            Indian Tribes, and nonprofit organizations that will support
            such businesses; and
                (3) carrying out other activities that assist in measuring,
            reporting, and steadily reducing the quantity of embodied carbon
            of construction materials and products.

        (b) Administrative Costs.--Of the amounts made available under this
    section, the Administrator of the Environmental Protection Agency shall
    reserve 5 percent for administrative costs necessary to carry out this
    section.
        (c) Definitions.--In this section:

    [[Page 136 STAT. 2073]]

                (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. <<NOTE: 42 USC 7436.>>  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

    [[Page 136 STAT. 2074]]

    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) <<NOTE: Definition.>>  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) <<NOTE: Time periods.>>  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) <<NOTE: Fees.>>  Waste Emissions Threshold.--
                ``(1) Petroleum and natural gas production.--With respect to
            imposing and collecting the charge under subsection (c) for an
            applicable facility in an industry segment listed in paragraph
            (1) or (2) of subsection (d), the Administrator shall impose and
            collect the charge on the reported metric tons of methane
            emissions from such facility that exceed--
                        ``(A) 0.20 percent of the natural gas sent to sale
                    from such facility; or
                        ``(B) 10 metric tons of methane per million barrels
                    of oil sent to sale from such facility, if such facility
                    sent no natural gas to sale.
                ``(2) Nonproduction petroleum and natural gas systems.--With
            respect to imposing and collecting the charge under subsection
            (c) for an applicable facility in an industry segment listed in
            paragraph (3), (6), (7), or (8) of subsection (d), the
            Administrator shall impose and collect the charge on the
            reported metric tons of methane emissions that exceed 0.05
            percent of the natural gas sent to sale from or through such
            facility.

    [[Page 136 STAT. 2075]]

                ``(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) <<NOTE: Determination.>>  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) <<NOTE: Determination.>>  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) <<NOTE: Time period.>>  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) <<NOTE: Determination.>>  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.

    [[Page 136 STAT. 2076]]

        ``(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. <<NOTE: 42 USC 7437.>>  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 <<NOTE: Deadline. Publication.>>  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).

    [[Page 136 STAT. 2077]]

                ``(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) <<NOTE: Determination.>>  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. <<NOTE: 42 USC 4321 note.>>  LOW-EMBODIED CARBON
                                LABELING FOR CONSTRUCTION MATERIALS.

        (a) <<NOTE: Consultation.>>  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

    [[Page 136 STAT. 2078]]

    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) <<NOTE: Determinations.>>  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. <<NOTE: 42 USC 7438.>>  ENVIRONMENTAL AND CLIMATE
                            JUSTICE BLOCK GRANTS.

        ``(a) Appropriation.--In addition to amounts otherwise available,
    there is appropriated to the Administrator for fiscal year 2022, out of
    any money in the Treasury not otherwise appropriated--
                ``(1) $2,800,000,000 to remain available until September 30,
            2026, to award grants for the activities described in subsection
            (b); and
                ``(2) $200,000,000 to remain available until September 30,
            2026, to provide technical assistance to eligible entities
            related to grants awarded under this section.

        ``(b) Grants.--
                ``(1) In general.--The Administrator shall use amounts made
            available under subsection (a)(1) to award grants for periods of
            up to 3 years to eligible entities to carry out activities
            described in paragraph (2) that benefit disadvantaged
            communities, as defined by the Administrator.
                ``(2) Eligible activities.--An eligible entity may use a
            grant awarded under this subsection for--
                        ``(A) community-led air and other pollution
                    monitoring, prevention, and remediation, and investments
                    in low- and zero-emission and resilient technologies and
                    related infrastructure and workforce development that
                    help reduce greenhouse gas emissions and other air
                    pollutants;
                        ``(B) mitigating climate and health risks from urban
                    heat islands, extreme heat, wood heater emissions, and
                    wildfire events;
                        ``(C) climate resiliency and adaptation;
                        ``(D) reducing indoor toxics and indoor air
                    pollution; or
                        ``(E) facilitating engagement of disadvantaged
                    communities in State and Federal advisory groups,
                    workshops, rulemakings, and other public processes.
                ``(3) <<NOTE: Definition.>>  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

    [[Page 136 STAT. 2079]]

                              ``(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

    [[Page 136 STAT. 2080]]

    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. <<NOTE: 23 USC 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

    [[Page 136 STAT. 2081]]

            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) <<NOTE: Assessment.>>  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) <<NOTE: Assessment.>>  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.

    [[Page 136 STAT. 2082]]

        ``(d) Investment in Economically Disadvantaged Communities.--
                ``(1) In general.--In addition to amounts otherwise
            available, there is appropriated for fiscal year 2022, out of
            any money in the Treasury not otherwise appropriated,
            $1,262,000,000, to remain available until September 30, 2026, to
            the Administrator of the Federal Highway Administration to
            provide grants for projects in communities described in
            paragraph (2) for the same purposes and administered in the same
            manner as described in subsection (a).
                ``(2) Communities described.--A community referred to in
            paragraph (1) is a community that--
                        ``(A) is economically disadvantaged, underserved, or
                    located in an area of persistent poverty;
                        ``(B) has entered or will enter into a community
                    benefits agreement with representatives of the
                    community;
                        ``(C) has an anti-displacement policy, a community
                    land trust, or a community advisory board in effect; or
                        ``(D) has demonstrated a plan for employing local
                    residents in the area impacted by the activity or
                    project proposed under this section.

        ``(e) Administration.--
                ``(1) In general.--A project carried out under subsection
            (a) or (d) shall be treated as a project on a Federal-aid
            highway.
                ``(2) Compliance with existing requirements.--Funds made
            available for a grant under this section and administered by or
            through a State department of transportation shall be expended
            in compliance with the U.S. Department of Transportation's
            Disadvantaged Business Enterprise Program.

        ``(f) Cost Share.--The Federal share of the cost of an activity
    carried out using a grant awarded under this section shall be not more
    than 80 percent, except that the Federal share of the cost of a project
    in a disadvantaged or underserved community may be up to 100 percent.
        ``(g) Technical Assistance.--In addition to amounts otherwise
    available, there is appropriated for fiscal year 2022, out of any money
    in the Treasury not otherwise appropriated, $50,000,000, to remain
    available until September 30, 2026, to the Administrator of the Federal
    Highway Administration for--
                ``(1) guidance, technical assistance, templates, training,
            or tools to facilitate efficient and effective contracting,
            design, and project delivery by units of local government;
                ``(2) subgrants to units of local government to build
            capacity of such units of local government to assume
            responsibilities to deliver surface transportation projects; and
                ``(3) operations and administration of the Federal Highway
            Administration.

        ``(h) Limitations.--Amounts made available under this section shall
    not--
                ``(1) be subject to any restriction or limitation on the
            total amount of funds available for implementation or execution
            of programs authorized for Federal-aid highways; and
                ``(2) be used for a project for additional through travel
            lanes for single-occupant passenger vehicles.''.

    [[Page 136 STAT. 2083]]

        (b) Clerical Amendment.--The analysis for chapter 1 of title 23,
    United States Code, <<NOTE: 23 USC 101 prec.>>  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) <<NOTE: Determination.>>  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. <<NOTE: 23 USC 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--

    [[Page 136 STAT. 2084]]

                ``(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.''.

    [[Page 136 STAT. 2085]]

        (b) Clerical Amendment.--The analysis for chapter 1 of title 23,
    United States Code, <<NOTE: 23 USC 101 prec.>>  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. <<NOTE: 23 USC 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) <<NOTE: Determination. Verification.>>
                    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

    [[Page 136 STAT. 2086]]

                    projects that result in additional through travel lanes
                    for single occupant passenger vehicles.
                ``(5) <<NOTE: Review.>>  Materials identification.--The
            Administrator shall review the low-embodied carbon construction
            materials and products identified by the Administrator of the
            Environmental Protection Agency and shall identify low-embodied
            carbon construction materials and products--
                        ``(A) appropriate for use in projects eligible under
                    this title; and
                        ``(B) eligible for reimbursement or incentives under
                    this section.

        ``(c) Definitions.--In this section:
                ``(1) Administrator.--The term `Administrator' means the
            Administrator of the Federal Highway Administration.
                ``(2) Eligible recipient.--The term `eligible recipient'
            means--
                        ``(A) a State;
                        ``(B) a unit of local government;
                        ``(C) a political subdivision of a State;
                        ``(D) a territory of the United States;
                        ``(E) an entity described in section 207(m)(1)(E);
                        ``(F) a recipient of funds under section 203;
                        ``(G) a metropolitan planning organization (as
                    defined in section 134(b)(2)); or
                        ``(H) a special purpose district or public authority
                    with a transportation function.
                ``(3) Greenhouse gas.--The term `greenhouse gas' means the
            air pollutants carbon dioxide, hydrofluorocarbons, methane,
            nitrous oxide, perfluorocarbons, and sulfur hexafluoride.''.

        (b) Clerical Amendment.--The analysis for chapter 1 of title 23,
    United States Code, <<NOTE: 23 USC 101 prec.>>  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.

    [[Page 136 STAT. 2087]]

                (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, <<NOTE: Time period.>>  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.

    [[Page 136 STAT. 2088]]

                     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.

    [[Page 136 STAT. 2089]]

        (b) Administration.--In addition to amounts otherwise available,
    there is appropriated to the Senior Program Director of the Office of
    Native Hawaiian Relations for fiscal year 2022, out of any money in the
    Treasury not otherwise appropriated, $1,500,000, to remain available
    until September 30, 2031, for the administrative costs of carrying out
    this section.
        (c) Cost-sharing and Matching Requirements.--None of the funds
    provided by this section shall be subject to cost-sharing or matching
    requirements.
    SEC. 80003. TRIBAL ELECTRIFICATION PROGRAM.

        (a) Tribal Electrification Program.--In addition to amounts
    otherwise available, there is appropriated to the Director of the Bureau
    of Indian Affairs for fiscal year 2022, out of any money in the Treasury
    not otherwise appropriated, $145,500,000, to remain available until
    September 30, 2031, for--
                (1) the provision of electricity to unelectrified Tribal
            homes through zero-emissions energy systems;
                (2) transitioning electrified Tribal homes to zero-emissions
            energy systems; and
                (3) associated home repairs and retrofitting necessary to
            install the zero-emissions energy systems authorized under
            paragraphs (1) and (2).

        (b) Administration.--In addition to amounts otherwise available,
    there is appropriated to the Director of the Bureau of Indian Affairs
    for fiscal year 2022, out of any money in the Treasury not otherwise
    appropriated, $4,500,000, to remain available until September 30, 2031,
    for the administrative costs of carrying out this section.
        (c) Cost-sharing and Matching Requirements.--None of the funds
    provided by this section shall be subject to cost-sharing or matching
    requirements.
        (d) Small and Needy Program.--Amounts made available under this
    section shall be excluded from the calculation of funds received by
    those Tribal governments that participate in the ``Small and Needy''
    program.
        (e) Distribution; Use of Funds.--Amounts made available under this
    section that are distributed to Indian Tribes and Tribal organizations
    for services pursuant to a self-determination contract (as defined in
    subsection (j) of section 4 of the Indian Self-Determination and
    Education Assistance Act (25 U.S.C. 5304(j))) or a self-governance
    compact entered into pursuant to subsection (a) of section 404 of the
    Indian Self-Determination and Education Assistance Act (25 U.S.C.
    5364(a))--
                (1) shall be distributed on a 1-time basis;
                (2) shall not be part of the amount required by subsections
            (a) through (b) of section 106 of the Indian Self-Determination
            and Education Assistance Act (25 U.S.C. 5325(a)-(b)); and
                (3) shall only be used for the purposes identified under the
            applicable subsection.
    SEC. 80004. EMERGENCY DROUGHT RELIEF FOR TRIBES.

        (a) Emergency Drought Relief for Tribes.--In addition to amounts
    otherwise available, there is appropriated to the Commissioner of the
    Bureau of Reclamation for fiscal year 2022, out of any money in the
    Treasury not otherwise appropriated, $12,500,000, to remain available
    until September 30, 2026, for near-term drought relief actions to
    mitigate drought impacts for Indian Tribes that

    [[Page 136 STAT. 2090]]

    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.

        Approved August 16, 2022.

    LEGISLATIVE HISTORY--H.R. 5376:
    ---------------------------------------------------------------------------

    HOUSE REPORTS: No. 117-130 (Comm. on the Budget).
    CONGRESSIONAL RECORD:
                                                            Vol. 167 (2021):
                                        Nov. 18, 19, considered and passed
                                            House.
                                                            Vol. 168 (2022):
                                        Aug. 6, considered and passed
                                            Senate, amended.
                                        Aug. 12, House concurred in Senate
                                            amendment.
    DAILY COMPILATION OF PRESIDENTIAL DOCUMENTS (2022):
                Aug. 16, Presidential remarks.

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